On the night before the firm announces the expansion plan at a press conference, you are sitting in your home office reflecting on what you have learned about the process over the last several weeks. Articulate how macro- and microeconomics come into play in the context of firm decision-making in a global business.
- Explain the macroeconomic and microeconomic concepts and how they relate to the management of a global organization.
- Critically analyze and evaluate real-life economic problems and opportunities by applying economic concepts, principles, and theory.
When the business enters global business, there are several issues of concern that arise. The first factor is that the company will now be exposed to global competition. Competition will need to be encountered in the form of lower prices as well as superior products. Decisions have to be made about the manner in which competition has to be tackled. Second, the firm must make decision regarding the production changes that need to be made so that the products are acceptable under local condition. Third, when there is global expansion, it becomes necessary to get the supply of raw materials globally. My company must be able to get supplies that are lowest priced and have the best quality. Fourth, the company should make decisions about the counties where the firm should operate. Finally, the company should decide the manner in which its goods and services are placed in the global market.
There are several macroeconomic concepts that are important when expanding to global markets. The first concept is unemployment. This is measured by the Bureau of Labor Statistics but in the context of global business, the firm must taken into consideration the employment in different countries. The next concept is inflation; ...
The solution is given as a discussion of the importance of certain economic concepts like unemployment and demand and supply when considering the management of a large-scale organisation. 825 words.