Key Indicators in Macroeconomics
Before ,I wrote the importance of Macroeconomics for managers and MBA Students , you can check it
Microeconomic and macroeconomic Study in MBA and we discussed What is Macroeconomics and
Circulation .
Now , we go in depth with Macroeconomics factors or Indicators .In order to understand the dynamics of business environment it is essential to understand the nature of key indicators of macroeconomic environment .
Effect of Macroeconomics in Business
Actually , managers are related to these impacts and they need to know how one indicator effected the economy or what is the result on the business . May be you ask , some parts of business are microeconomics, but I will say these factors have roots in macroeconomics .
Internal factors for a business at first are micro size but in a duration there are external impacts of environment on them . For example , the consumption and market behavior for goods and commodities , there are two analysis tools are called the Cross elasticity and Income elasticity .
Cross elasticity shows the substitution of a good for related good and Income elasticity shows the relation of income and demand for a good . In another hand these two factors show the consumption behavior for different levels of income . High level income then low demands for inferior goods and higher demands for a normal good.
A market manager wants to make decisions in different market segments and one important feature is income level .What is the major parameter for income level in economy ? The answer is GDP .
The key indicators of macroeconomics
Before ,I wrote the importance of Macroeconomics for managers and MBA Students , you can check it
Microeconomic and macroeconomic Study in MBA and we discussed What is Macroeconomics and
Circulation .
Now , we go in depth with Macroeconomics factors or Indicators .In order to understand the dynamics of business environment it is essential to understand the nature of key indicators of macroeconomic environment .
Effect of Macroeconomics in Business
Actually , managers are related to these impacts and they need to know how one indicator effected the economy or what is the result on the business . May be you ask , some parts of business are microeconomics, but I will say these factors have roots in macroeconomics .
Internal factors for a business at first are micro size but in a duration there are external impacts of environment on them . For example , the consumption and market behavior for goods and commodities , there are two analysis tools are called the Cross elasticity and Income elasticity .
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| Macroeconomic key indicators in relation to Microeconomic factors |
A market manager wants to make decisions in different market segments and one important feature is income level .What is the major parameter for income level in economy ? The answer is GDP .
In detail GDP has details in production , income , .... .
Another factors that effect the income , Inflation and Growth , and Employment .
Another factors that effect the income , Inflation and Growth , and Employment .
Indicators: they are important variables , which show and reflect the state of economy . In another hand , they show how economy works healthy or sick . The impacts of Economy as the Environment for each business is clear . The simple evidence is " Business is an open system " .
Macroeconomics key indicators :
- GDP or Gross Domestic Product
- Rate of Inflation
- Growth
- Employment and Unemployment
- Foreign Trade
- Exchange Rate
- Forex Reserve
- Money Supply
- Sectoral Share
- Agricultural Output
- Electricity Generation
- Economic Infrastructure
- Social Indicators
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| Comparison in key indicators US, Euro, Japan ,China |
You can see also this book : Macroeconomics for MBA 's and Masters of Finance
In fact a business is an open system and will be affected with national and world economy . The GDP in simple way shows the 1.income level in country (purchase power) , 2. Economy power and trend( for investment) , 3.Government regulation and Investment and so many other macroeconomics analysis.
In fact a business is an open system and will be affected with national and world economy . The GDP in simple way shows the 1.income level in country (purchase power) , 2. Economy power and trend( for investment) , 3.Government regulation and Investment and so many other macroeconomics analysis.
Understanding the relation between micro and macro factors related to business is a powerful skill that some of managers have and some of them do not . In recent complicated condition of world economy and Globalization effect on the world and country level economy , there is an innovation of managers to directly use the macro factors .
It means for decision regulation or evaluation of alternative in decision , and monitoring the result it is good to uses the macro factor with micro factors .
It means for decision regulation or evaluation of alternative in decision , and monitoring the result it is good to uses the macro factor with micro factors .
informative
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