...chapter 1 Marketing’s Role in the Global Economy When You Finish This Chapter, You Should 1. Know what marketing is and why you should learn about it. 2. Understand the difference between micro-marketing and macro-marketing. 3. Know why and how macromarketing systems develop. 4. Understand why marketing is crucial to economic development and our global economy. 5. Know why marketing special— ists—including middlemen and — facilitators—develop. 6. Know the marketing functions and who performs them. 7. Understand the important new terms (shown in red). www.mhhe. When it’s time to roll out of bed in the morning, does your General Electric alarm wake you with a buzzer—or by playing your favorite radio station? Is the station playing rock, classical, or country music—or perhaps a Red Cross ad asking you to contribute blood? Will you slip into your Levi’s jeans, your shirt from L. L. Bean, and your Reeboks, or does the day call for your Brooks Brothers interviewing suit? Will breakfast be Lender’s Bagels with cream cheese or Kellogg’s Frosted Flakes—made with grain from America’s heartland—or some extra large eggs and Oscar Mayer bacon cooked in a Panasonic microwave oven imported from Japan? Will you drink decaffeinated Maxwell House coffee—grown in Colombia—or some Tang instant juice? Will you eat at home or is this a day to meet a friend at the Marriott-run cafeteria—where you’ll pay someone else to serve your breakfast? After breakfast, will you head off to school...
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...Definition of 'Macroeconomics' The term Macro has been taken from the Latin word Macros which means big. The field of economics that studies the behavior of the aggregate economy. Macroeconomics examines economy-wide phenomena such as changes in unemployment, national income, rate of growth, gross domestic product, inflation and price levels. Macroeconomics Concerns | Production | Prices | Income | Employment | NationalProduction/OutputTotal Industrial OutputGross Domestic ProductGrowth of Output | Aggregate Price LevelConsumer pricesProducer PricesRate of Inflation | National IncomeTotal wages and salariesTotal corporate profits | Employment andUnemployment in theEconomyTotal number of jobsUnemployment rate | Therefore, as is clear from the above, the following issues/subjects define the scope of Macro Economics: 1. Aggregates of national income and its determination 2. Theories of Income and Employment. 3. Theory of Money and Banking. 4. Fiscal Theory. 5. Balance of Payment. Scope and Importance of Macro Economics Macro Economics is of much theoretical and practical importance. Let us see what are the importance and the scope where macro economics are being used. 1. To Understand the working of the Economy The study of macro economics variables is requisite for considerate the operation of the financial system. Our main economic complexities are associated with the performance of total income, irredundant and the normal price scale in the...
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...merely confirms what Economists have known for some time, namely, that the interconnectedness of global economic activity renders macro-management by single governments redundant. Their function is now to regulate markets to ensure economically efficient solutions. Module Leader :Paul McKeown Student Name: Chen JiaHui Student number: G20555142 1.0 Introduction This report argues that the ongoing financial crisis merely confirms the global political consideration what economists have known for some time. Firstly, it briefly explains how the financial crisis spread around the world in such a short time by globalisation. This report points out that the global financial system is inherently flawed, showing how economies go from stability to instability. Subsequently, it focuses on the link between economic globalisation and macro-management by single government, considering whether Macro-management of a country’s economy is redundant, given the global interconnectedness economy’s activity and business. This report shows government policy has reduced the effectiveness of interconnected economies, such as fiscal policy and monetary policy. After that, it emphasizes that it is imperative for governments to regulate financial markets so as to ensure economically efficient solutions. Consequently, this report concludes that although macro-management by single government is less effective, it still has a role of preventing and managing future crises. 2.0 The financial...
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...The Nature and Scope of Macroeconomics by Smriti Chand Macro Economics The Nature and Scope of Macroeconomics! Introduction: The term ‘macro’ was first used in economics by Ragner Frisch in 1933. But as a methodological approach to economic problems, it originated with the Mercantilists in the 16th and 17th centuries. They were concerned with the economic system as a whole. In the 18th century, the Physiocrats adopted it in their Table Economies to show the ‘circulation of wealth’ (i.e., the net product) among the three classes represented by farmers, landowners and the sterile class. Malthus, Sismondi and Marx in the 19th century dealt with macroeconomic problems. Walras, Wicksell and Fisher were the modern contributors to the development of macroeconomic analysis before Keynes. Certain economists, like Cassel, Marshall, Pigou, Robertson, Hayek and Hawtrey, developed a theory of money and general prices in the decade following the First World War. But credit goes to Keynes who finally developed a general theory of income, output and employment in the wake of the Great Depression. Contents: Nature of Macroeconomics Difference between Microeconomics and Macroeconomics Dependence of Microeconomic Theory on Macroeconomics Dependence of Macroeconomics on Microeconomic Theory Macro Statics, Macro Dynamics and Comparative Statics Transition from Microeconomics to Macroeconomics Stock and Flow Concepts 1. Nature of Macroeconomics:________________________________________ ...
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...as a factory. Technological advancement can be classified into two categories: macro-inventions and micro-inventions. Macro-inventions are technological advancements of sufficient importance that dramatically change the production process. Micro-inventions are minute alterations to preexisting forms of capital that serve to enhance or improve its performance. There is a great debate, specifically concerning the British Industrial Revolution, over whether successful technological change is based on breakthrough inventions or small, incremental improvements to known techniques. With changes in technology and the workforce came the centralization of employees. Centralizing the workforce dramatically changed the basic functions of a family and the household. Families adopted a new specialized lifestyle in which they had to adhere to the schedule of the factory. The in industrial revolution can be defined through a three pronged sequence of change: a small sector economy that underwent drastic technological change, as a consequence this sector grew exponentially, and this growing and advancing economy spread to surrounding sectors allowing for trade to occur. Technological change has helped provide the necessary stepping stone to further develop the workplace and by extension expedite the emergence of factories. The obvious connection between technological advances and the emergence of the factory system can best be exemplified through the relationship between Newcomen’s and Watt’s...
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...應 用 經 濟 論 叢 ， 89 期 ， 民 國 100 年 6 月 −153− The Dynamics Analysis and Simulation of the Macro Economic Behavior of Taiwan’s Invigorating Economy Consumption Voucher Wen-Chin Wei∗ Abstract Given the severe global economic downturn, countries are using a variety of possible economic policies to try to help their economies recover. This study adopts system dynamics from the dynamic perspective to investigate how Taiwan’s decision to issue time-limited consumption vouchers will influence macro economical behaviors. The simulation led to following primary results. First, in regard to the highest marginal propensity to consume (MPC = 0.3) and the lowest substitution rate of consumption (SR = 0.6741), the distribution of the consumption voucher will generate the biggest multiplier coefficient (0.6830) and Y (GDP). Second, as SR increases by 1%, the multiplier effect decreases by 0.44%. Third, the contribution percentages of consumption vouchers on the first, second, third, and the accumulated total of these three quarters of private consumption in 2009 ranged from 2.13-2.55, 0.25-0.30, 0.19-0.22, and 0.86-1.02 of a percentage, respectively. Meanwhile, the contribution percentage of consumption vouchers in the first, second, third and the accumulated total of these three quarters of GDP in 2009 ranged from 1.36-1.63, 0.15-0.18, 0.11-0.13, and ∗ Assistant Professor, Department of Public Finance & Taxation in National Kaohsiung University of Applied Sciences, Taiwan, Republic...
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...George Marrero Poli Sci 101-51 April 6, 2015 During the later half of the 20th century U.S economy was the most powerful economy in the world, they set the rules for rest of the world. They established multinational corporations all over the world, which was indeed the heart of world economy. (Davis, 2009) When the U.S economy was rising, all the other countries’ economies were also growing, at the same time when their economy went down it affected almost all the other importing and exporting countries in the world because of the recent crises which was named as “GLOBAL FINANCIAL CRISIS”. This was meant to be the biggest crises after “THE GREAT DEPRESSION 1930” (Cambridge Journal of Economics, 2009). The crises have already recorded loss of over $150 billion and large numbers of banking institutions have declared bankruptcy or being sold. (Kregel, 2008) One among the banks filed for bankruptcy was Lehman Brothers, which was Fourth largest investment bank in U.S. (BBC, 2009). Therefore it is important to identify causes of current financial crises and resolution measures. Secondly, UK government should take effective steps in order to reduce danger of further crises. (Turner, 2009) During the later part of the 20th century, that is 1973, Daniel bell published a book titled “THE COMING OF POST INDUSTRIAL SOCIETY”. The book was about forecasting to find the changes in economy and society in the United States. One of the most visible changes according to him was the work force...
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...to remix their businesses in order to move to the emerging higher-value spaces, in Macro and Micro environment level 3. IBM strategy PESTEL analysis in Macro level Five forces analysis in Micro level Recommendation Conclusion SOWT analysis Complexity analysis 4. o IBM understood Value was shifting in the IT industry, driven by the rising tide of global integration, a new computing paradigm and new client needs. o Economies of developing nations were growing rapidly, driven by historic investments in fundamental business infrastructure. Enterprises were looking to tap skills and expertise available all over the world and to integrate their operations globally. o Change in computing architecture was rippling across the data center and the network, along with a proliferation of technology infused into all aspects of work and life. Companies were seeking to integrate advanced technology with their business processes and operations, not only to reduce costs, but to enable innovation and growth. o IBM remixed their businesses in order to move to the emerging higher- value spaces by focusing on software and IT industry. IBM Strategies 5. IBM Strategies Hardware And Services Software IBM sold the personal computing department To Lenovo 6. PESTEL Analysis for Macro environment factors Social Political Technological Environmental Economic Legislative 7. Iraq War in 2003, affected world economy, and IBM stock fell down. Technology affects directly to computer technology industry...
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...Industry Forecasting An organizational environment is composed of “the actors and forces” outside marketing that affect marketing management’s power to develop and sustain successful transactions with its target consumers. Macro-forecasting in industrial settings is basically concerned with the forecasting of markets in total. This concerns the existing level of market demand, while also considering the market’s future. New homes are a product offered within an industry (construction), in which macro-trends could have a major impact over the next five (5) years. An organization’s macro-environment relates to the larger forces having a direct impression on society as a whole. An organization has little, if any ability to sway these said forces, and thus can only adapt its marketing mix to provide a reason for the resulting opportunities and threats. (Weigand, Robert A. 2012) There are many features of an industry that may determine the degree of competition, as well as the relative position of profitability in an organization. Several macro-trends encompass industry forecasting and can impact either negatively or positively within an organization. The macro-trends include: Economic trends: In this particular macro-trend the macro environment analysis identifies trends such as changes in personal disposable income, interest rates, inflation, employment ratings, and cost of living. The economic environment ascertains the strength and size of a market. (www...
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...Industry Forecasting An organizational environment is composed of “the actors and forces” outside marketing that affect marketing management’s power to develop and sustain successful transactions with its target consumers. Macro-forecasting in industrial settings is basically concerned with the forecasting of markets in total. This concerns the existing level of market demand, while also considering the market’s future. New homes are a product offered within an industry (construction), in which macro-trends could have a major impact over the next five (5) years. An organization’s macro-environment relates to the larger forces having a direct impression on society as a whole. An organization has little, if any ability to sway these said forces, and thus can only adapt its marketing mix to provide a reason for the resulting opportunities and threats. (Weigand, Robert A. 2012) There are many features of an industry that may determine the degree of competition, as well as the relative position of profitability in an organization. Several macro-trends encompass industry forecasting and can impact either negatively or positively within an organization. The macro-trends include: Economic trends: In this particular macro-trend the macro environment analysis identifies trends such as changes in personal disposable income, interest rates, inflation, employment ratings, and cost of living. The economic environment ascertains the strength and size of a market. (www...
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...Demand Marishallian Approach : Equi-marginal utility, Law of demand – Determinants of demand. Elasticity of demand and its measurement. Price – Income – Cross and Promotional elasticity of demand. Consumer’s Surplus. Hicksian Approach : Indifference curves – properties of Indifference Curve, Consumer’s Equilibrium, Price effect, Income effect and substitution effect – Derivation of demand from Price Consumption Curve (PCC) – Giffen’s paradox. Samuelson Approach : Revealed Preference Theory. Module 3 : Production and Cost Analysis Concept of production function : short run and long run – Cobb – Douglass production function. isoquants – iso-cost line – producer’s equilibrium. Law of variable proportion and Law of returns to scale – Economies of scale – Economies of scope. Concepts of costs : Money and real cost, Opportunity cost, Social cost, Private cost – Derivation of short run and long run cost curves– Learning curve. SECTION –II Module 4 : Theory of Firm : Concepts of revenue : Total Revenue, Average Revenue and Marginal Revenue – Relationship between TR, AR and MR under perfect and imperfect competition – AR, MR and elasticity. Objectives of a Firm – Analysis of Equilibrium of a firm : TC-TR Approach – MC-MR Approach – Break-Even Analysis. 2 Module 5 : Market Structure : Perfect...
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...always wanted and would not have to work to get the money. Everyone would have billion dollar homes and the nicest cars in the world. Unfortunately, we do have a limited amount of money, so the economists find ways to get around that. There are two types of economics, there is macro-economics and micro-economics. Macro-economics studies the economy as a whole, while micro-economics studies the smaller aspects of the economy. In the automotive world, the macro-economics part would evaluate how automobiles are selling, and micro-economics would evaluate how each vehicle is selling. Macro would see how a jump in gasoline prices would effect the economy, but micro would see how it would effect the consumers in general. Economics is very important to all of us for many reasons. One reason is because unfortunately we don't all have all the money in the world, so we have to learn how to deal with what we do have. Another reason is because all of us have an unlimited amount of wants, but do not have the resources to take care of those wants. We all have to work to cope with the fact that we do not have an unlimited amount of resources. The combination of the two problems is what makes up our economic system. Economics plays a great role in my personal life right now. If I had an unlimited amount of money, then I would be driving a different Ferrari each day of the year, but instead I'm driving a Cavalier. I would also have a billion dollar home in each state, but instead I'm living...
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...develop learners’ ability to evaluate the elements of the macro environment and its relation to an organisation. Select an organisation which you are familiar with. Explain the elements of its macro environment and discuss how these element(s) affect your selected organisation. Recommend improvements that can be made by the organisation in managing the macro environment effectively. Criteria Description on the selected organisation Description on the general macro environment elements Identification and discussion on element(s) of macro environment that affects the selected organisation Recommendations to improve management of the macro environment in the selected organization 1.0 Introduction A macro environment comprises the external factors that can significantly impact its performance and ability to compete in its marketplace. These factors are often out of the control or management ability of a company. Factors typically include economic, demographic, political, and technological forces in business. Business owners and managers often spend copious amount of time and effort to assess the overall economic environment in order to determine the number and strength of each factor. Strategies and performance reviews can help owners and managers use the macro environment factors to create a competitive advantage for their respective companies. For companies with a global foot-print, their exposure to macro environment elements is magnified. The Coca-Cola...
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...Microeconomics Paper: Economic systems Yang Cong Professor Memmos Aug 1st, 2012 Table of Contents 1, Introduction of economic systems 2, the analysis of capitalism 3, Example of capitalism: the U.S. 4, the analysis of socialism 5, Example of socialism: China 6, the analysis of communism 7, Example of communism: North Korea 8, my favorite one is socialism 9, Conclusion There are three main economic systems in the world which are capitalism, socialism and communism. Nowadays, most developed countries are capitalism and they have certified that capitalism is better; the greatest developing country which owns the second high GDP in the world, China, is socialism, it seems that socialism is not bad; only a few countries are still communism like North Korea which has a low economic increment speed. Different systems have their own advantages and disadvantages, so it is necessary for the government to figure out which one is suitable for their countries. “Capitalism is an economic system that is based on private ownership of the means of production and the creation of goods or services for profit. Competitive markets, wage labor, capital accumulation, voluntary exchange, and personal finance are also considered capitalistic (Wikipedia).” Capitalism can greatly promote economic development, this is the main feature of capitalism. The necessary material of human is produced by human labor, the purpose of economic activity is to save labor time which is also the greatest...
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...is for the two forms of an open system and the closed system in macro-economics. The definition and how the flow chart help keep the flow of cash in the nation and international. There are macro-economic models in the world today. Two forms of systems to keep track of the flow of money. The first is a closed system, which basically trades the domestic’s cash flow, plus the mechanism which is used by the nation. The second method is called open system; the open system is used mostly to trade all forms of cash flow also international purchases and sales. The closed system form is for any economy it focuses on keeping cash flow in one nation. The flow goes from corporation that hires to raw resources to produce goods and services. The goods and services, then sold back to nations with a steady cash flow maintain in the nation. However, the closed system is not perfect, but known for an ideal method of economics. In some cases, a closed system shows a number of leakages that occur from money traveling out of the economy, but not coming back into the right hands, businesses or individuals. For instance, the government taxes are spent for protection against crime and fires and not given back to the community, which then is lost in the system. Now not only leaks occur, business and Americans also buy products from nations that can make goods and services for a cheaper price. In 2010, 500 billion dollars was lost in the economy because having more imports than...
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