Microeconomics and Macroeconomics Study in MBA

USE STUDY OF MACROECONOMICS IN MBA

Economics is the social science that analyzes the production, distribution, and consumption of goods and services. Common distinctions are drawn between various dimensions of economics. The primary textbook distinction is between microeconomics, which examines the behavior of basic elements in the economy, including individual markets and agents (such as consumers and firms, buyers and sellers), and macroeconomics, which addresses issues affecting an entire economy, including unemployment, inflation, economic growth, and monetary and fiscal policy.


WHAT IS MACROECONOMICS ? 

Macroeconomics is the study of the national economy viewed as a single interactive system. It is concerned, not with individual transactions, but with economy aggregates, including national income, the rate of inflation and the unemployment rate , growth , business cycle , etc . 
At the theoretical level it seeks to explain how national income grows, how it fluctuates and what then happens to prices and unemployment. At the positive level it tests competing theories against the evidence provided by economic statistics, and it estimates the numerical relationships required to construct forecasting models. At the application level it considers what policies would serve to promote economic stability and growth and full employment.

Macroeconomics Circulation

You can see also this book : Macroeconomics for MBA 's and Masters of Finance

HOW USE STUDY OF MACROECONOMIC IN MBA

Macroeconomics is a subject that provide strategic and tactical tools for manager in various situation and condition in globe economy . As managerial roles decision making is basic role and everyday managers are trying to find best alternative between conditions and course of actions. MBA students are prepared to play management roles or advising top management as CEO teams .During the MBA courses in universities the students try to improve some skills and one of the key feature is economics skill . 
Today in MBA curriculum , managerial economic is covering the economic analysis skills but the majority focus is on microeconomics topics and on small parts concentrates on macro topic in economic. 

Business is an open system and macroeconomics nature is the environment role for any business activities today. With globalization variety changes happened in nature of business and any small effect on oil price may be effected the labor price in China. In the recent years the US economic problem causes some unfavorable results in world economy and most of countries  , also multinational companies , and at least some small scale businesses was affected direct and indirect by US economy .

You can see also this book : Macroeconomics for MBA 's and Masters of Finance

Example of  Macroeconomics skills for Managers :

Macroeconomics literacy and Managerial Decision Making 

Macroeconomics literacy refers to the ability of an executive team to correctly read and interpret all of these many and varied macroeconomic signals . In an applied management context , the careful cultivation of such macroeconomics literacy in the MBA course can assist executive in three important areas (1) the proactive management of business cycle movements and tuning point to build competitive advantage;(2) the more timely and tactical application of various instruments to hedge macroeconomic risks associated with change in exchange rates, interest rate ,stock and bond prices ,commodity prices ,geo-political risk , and oil price shocks ; and (3) crafting appropriate strategic and tactical response to random macroeconomic shock associated with phenomena ranging from war terrorism to currency  crises , drought , and disease.

Business cycle and Managerial Decision Making

Today , as a result of some efforts in macroeconomics studies and research , there is a growing consensus that at least some economic indicators can be used alone or in combination to forecast the business cycle in timely and accurate enough manner as to be relevant in a business planning context.
From a managerial perspective , the  recent research  is of great importance because so many management decisions are business cycle-sensitive . Business cycle-sensitive advertising , marketing , and pricing provide some richest and most textured of strategic and tactical .The manager may also want to counter-cyclically trim inventories and  begin to prepare for layoffs well before a recession actually hits- even as rivals continue to hire sooner than competitors in anticipation of upturn. At this time of cycle , a company may want to select higher quality employees from the relatively larger pool of unemployed labor while looking for in lower labor cost.

Macroeconomically Risk and Managerial Decision Making

One of important role that macroeconomics can assist executive decision making involve the timely hedging of specific macroeconomics risks associated with the movement in such key financial variables as example rates , interest rates , stock prices , and commodity prices.
Consider , for example , exchange rate risk . This highly significant , particularly for companies that produce , market ,or buy their products in foreign exchange . For  better understand the nature of such risk , an MBA student must learn about the complex inter-relationships between budget deficits and trade deficits , the impact of discretionary policies of central bank across the globe on trade and capital flow ,… etc. MBA student must understand not just how a central bank like U.S Federal Reserve seeks to control short run interest rates using tools like open market operation . Also the effects of long run and relationship with inflation is important on this way .
MBA as managers  , students  or CEO need  to learn how, when ,why  apply various tools of macroeconomics  and it is possible with understanding of the globe macroeconomic environment and essential.As discussion on macroeconomics , it is clear that macroeconomics has several tools for analysis and large hidden potential to be useful for management , and management context decision making . These tools provide great benefits to MBA students that are seeking to improve their decision making skills.

You can see also this book : Macroeconomics for MBA 's and Masters of Finance

This blog is a summary  of my research and my article in college about the : USE STUDY OF MACROECONOMIC IN MBA. 

For more information see:

Key Indicators of Macroeconomics or Important Macroeconomics Factors 

SWOT Sample in Macroeconomics for MBA 

MBA Curriculum or Syllabus 
 5 Things You Should Know About Sustainability in Macroeconomics