Question: How do companies impact the economy?

Sample Answer (The AREA technique):

Answer: Companies impact the economy in various ways, including job creation, wealth generation, and innovation.

Reason: Companies play a critical role in economic growth by providing employment opportunities, investing in research and development, and contributing to the overall GDP through their business activities.

Example: For instance, large multinational corporations like Apple, Amazon, and Toyota have created thousands of jobs, both directly and indirectly, while also stimulating innovation and technological advancements through their investments in R&D.

Alternative: Some may argue that companies can also have negative impacts on the economy, such as contributing to income inequality or environmental degradation, depending on their business practices and the industries in which they operate.