The Economic Environment Facing Global Business KEY MACROECONOMIC INDICATORS • Economic Growth • Inflation • Surpluses & Deficit KEY MACROECONOMIC INDICATORS : ECONOMIC GROWTH • GDP and GNI (or GNP) – High or Low – total amount of goods and services produced in a year within the domestic territory) or GNI (GDP + net income) – Per capita GNI (total GNI divided by total population) – PPP GNI (unmber of units of a country’s currency required to buy the same goods and services in the domestic
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important role inthe growth process of an economy. Various FDI theories provide the motivations and determinants ofFDI. Economists broadly classified the FDI theories into macro-level and micro-level FDI theories. Themacro-level FDI theories give the macroeconomic factors that determine the FDI and micro-leveltheories discuss the motivation of FDI associated with the firm level. Besides these two categories,the development theories of FDI also discussed the motivation of FDI flows. JEL Classification :
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been shown that the investors need to predict the stock prices based on the macro factors to get an abnormal return from stock market There were a lot of researches to study the relationship between macroeconomics variables and stock returns. It is important to study the interaction of macroeconomics factor and stock return. Based on the study, the public can identify which factors can influence the stock market and use the knowledge to predict movement of stock price. According to Wongbangpo & Sharma
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These factors include the economic, demographics, legal, political, social conditions, technological changes, and natural forces are known as the macro environment. (Johnston, 2014) Macroeconomics is intertwined with business because it is affected by all of the factors that constitutes macroeconomics. Macroeconomic is a branch of the economy that deals with certain issues that are relating to factors that affect the economy of the country as a whole. These factors include areas like the rate of
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Chapter 1 What is Macroeconomics? ( Chapter Outline 1. How Macroeconomics Affects Our Everyday Lives (a) The “Big Three” Concepts of Macroeconomics 2. Defining Macroeconomics (a) How Macroeconomics Differs from Microeconomics (b) Economic Theory: A Process of Simplification 3. Actual and Natural Real GDP (a) Unemployment: Actual and Natural (b) Real GDP and the Three Macro Concepts 4. Macroeconomics in the Short Run and Long Run (a) The Short Run: Business Cycles
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1. Critically examine the effectiveness of various approaches that may be used to reduce macroeconomic instability. According to Mc Vaish (Macroeconomics theory, p123) Macroeconomics can be defined as the analysis of the economy wide aggregates such as the analysis of the total output and employment, total consumption, total investment, total saving and national product. Macroeconomic theory employs technique of general equilibrium in order to study the determination of the general price level
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purchase additional cars to boost the country’s economy. This process can be worked in reverse in time of excess demand to slow down the economy. PART 2 According to the latest release from the U S Department of commerce Bureau of Economic Analysis, the United States GDP is rising and the country’s Gross Domestic Income (GDI) is rising. This indicates that the current business cycle is in an expansion phase. The real GDP today is $16800 billion and the largest component is consumption. The
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these macroeconomic factors, not realizing that this type of high demand was not sustainable. Also, the company was recording profits at an all-time but failed to take into consideration that many of its competitors in the same industry were projecting a slow growth period. Many salespeople continued to project high sales which led to overproduction in inventory. Cisco’s Information Analysis Failure The information analysis at Cisco failed because it did place emphasis on macroeconomic conditions
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Galen University – BKFN 315 – Intermediate Macroeconomics – Test # 1 Friday April 4, 2014. This test contributes 15% towards your semester grade. 1. Macroeconomic statistics include GDP, the inflation rate, the unemployment rate, retail sales, and the trade deficit. TRUE 2. Macroeconomic statistics tell us about a particular household, firm, or market. FALSE 3. Macroeconomics is the study of the economy as a whole. TRUE 4. The goal of macroeconomics is to explain the economic changes that affect
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AN ANALYSIS OF THE EFFECTS OF INTEREST RATE AND EXCHANGE RATE CHANGES ON STOCK MARKET RETURNS: EMPIRICAL EVIDENCE OF GHANA STOCK EXCHANGE A thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirement for the degree of COMMONWEALTH EXECUTIVE MASTERS OF BUSINESS ADMINISTRATION Institute of Distance Learning, KNUST JUNE, 2011 DECLARATION I hereby declare that this submission is my own work toward
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