Using real GDP, unemployment rate, consumer price index, foreign exchange rate/auto sales, and oil/gas prices, prepare a 1,000 word paper in which you define each of the indicators as related to the auto sales industry, and describe its current status. If possible, present a separate graph for each indicator illustrating the historic trend for each.
In the paper analyze the relationship among inflation, unemployment, and the business cycle on the auto industry. Then, assess the impact of inflation, unemployment, and the business cycle on the auto industry.© BrainMass Inc. brainmass.com October 24, 2018, 11:40 pm ad1c9bdddf
The response addresses the queries posted in 1312 words with references.
//Before writing about the relation between the several economic indicators, firstly we have to understand about the economic indicators and their importance in the economic environment of a country. So, firstly we will write about the economic indicators of the auto sales industry. //
Impact of Economic Indicators on Auto Sales Industry
The Auto Sales industry is one of the most important industries in the United States of America. The motor vehicle form the second most important possession of a number of Americans after housing. The American automobile industry employs more than one million Americans. The industry has undergone various changes since the days when the three big motor vehicle corporations I.e. Ford, General Motors, and Chrysler dominated the scene in the United States of America. Now most of the cars and light trucks sold in the United States market are either imported or manufactured by foreign-based manufacturers. The dominance of the "Big Three" is now limited to light trucks only which is also under threat by the foreign brands. This paper discuses the impact of various economic indicators in the USA.
//Above we have discussed about the meaning of economic indicator and its importance in the industry. Now moving to the next step of the assignment, we will discuss about the various kinds of economic indicators that shape the economic environment of any industry. I am explaining each indicator in detailed manner so that you can understand them in a profound manner. This section will talk about the real GDP and unemployment rate. //
The real GDP is very important for calculating general trends in the industry. According to the latest tabulation of real GDP, the total output of the auto sales industry is amounted to $386 billion at a seasonally adjusted annual rate. This sector was much bigger twenty years ago. In the mid 1980s it accounted for 4.1 percent of real GDP.
After the advent of imported vehicles in the US market, their share is increasing like anything. In terms of GDP, the motor vehicle ...
The response addresses the queries posted in 1100 Words, APA References.
Economic for Business
I need help with a 1500 word paper on the following, using information from previous assignments which are provided below, however the information needs to be elaborated on further, this is my portion of the assignment. (I am willing to pay up 20 credits if this can be completed in 1 day) with no plagiarism and references.
WK 1 ASSIGNMENT): address the impact of real GDP, the unemployment rate, and the inflation rate as measured by the consumer price index (CPI), Auto Sales, Producer Price Index and Personal Income. (no information provided).
WK 2 Assignment: Define each of the six indicators, and describe its current status. In addition, present a separate graph illustrating the historic trend for each indicator. Post the historical trends graphs using PowerPoint® slides (some info provided)
The Automotive industry can be identified as being one of the most important industries within the United States. According to recent news reports, the automotive industry and its production have been very volatile and the impact of the GDP within the industry has proven difficult to predict. The There are more than one million individuals currently employed by the automotive industry and unfortunately due to the current economic crisis, and the majority of vehicles being sold in the United States are being imported from foreign countries. According to the Labor Department has ascertained that during the month of August 2008, more than 39,000 lost their jobs in the automotive industry (Hamilton, 2008).
Some economic indicators that have the potential to impact the auto industry are identified and defined below:
Real Gross Domestic Product (GDP):
Real GDP can be defined as inflation adjusted measure that reflects the value of all goods and services produced in a given year, expressed in base year prices. GDP is often referred to as "constant price", "inflation corrected" GDP or constant dollar GDP (INVESTOPEDIA, 2008).
In terms of GDP, motor vehicle sales have declined and careful analysis would point to an erratic change in the growth pattern. Motor vehicle production has become very volatile. It can be very difficult to determine how much of an impact real GDP has on the automotive industry.
Producer Price Index:
Investopedia defines producer price index (PPI) as being able to indicate the change in future retail prices, and an index for the change in wholesale prices.
Wikipedia defines PPI as being the first indicator of inflation each month. It is a measure of wholesale prices at the producer level for consumer goods and capital equipment. Unlike the CPI, it does not include services. It compares prices for approximately 3,450 commodities to a base period. Currently, the base period, which equals 100, is the average prices that existed in 1982. PPIs measure price change from the perspective of the seller
Currently, the base period, which equals 100, is the average prices that existed in 1982.
Foreign Exchange Rate:
Defined as the rate in which one country's money can be changed into another. Known also as rate of exchange, or currency exchange rate. There are many factors that can determine the currency foreign exchange rate such as the country's trade policies and that of outside nations. When investors trade or buy foreign stocks they pay special attention to the foreign exchange rate because this is what will determine their rate of return in their own currency (American Heritage Dictionary).
The inflation rate is a measure of inflation, the rate of increase of a price index (for example, a consumer price index). The rate of decrease in the purchasing power of money is approximately equal.
It's used to calculate the real interest rate, as well as real increases in wages, and official measurements of this rate act as input variables to COLA adjustments and inflation derivatives prices
The inflation rate is the increase in prices for a basket of goods and services expressed on a yearly basis (Wikipedia). Rising inflation causes a growth in the price of goods and services purchased by consumers. When this happens, it causes consumers to spend less on big ticket items such as vehicles. Increase in inflation has the potential to impact the sales of motor vehicles which could ultimately have a negative impact on the auto industry (Hamilton, 2008).
The unemployment rate represents the number unemployed as a percent of the labor force. The percentage of employable people actively seeking work, out of the total number of employable people; determined in a monthly survey by the Bureau of Labor Statistics (www.bls.gov).).
An unemployment rate of about 4% - 6% is considered "healthy". Lower rates are seen as inflationary due to the upward pressure on salaries; higher rates threaten a decrease in consumer spending.
The current economic state has cause the American auto industry to spin downward because the demand for less expensive vehicles, inflation, and also environmentally friendly vehicles. Consumer spending has changed as well along with the threat from foreign auto makers and the unemployment rate.
This indicator represents the amount of vehicles sold within a 10 day time frame. The information gathered within this indicator will usually be released three days after it has been compiled after the 10 day period which makes it the most recent economic data. The size of the vehicle and timely release of the information can and will allow automotive sales to be the leading economic indicator of retail sales and personal consumption data.
Consumer Price Index Summary. (2008). Retrieved September 11, 2008 from
Hamilton, J. (2008). How Oil Prices are affecting the Auto Industry. Retrieved September 11, 2008
The American Heritage Dictionary of the English Language, Fourth Edition
WK 3 ASSIGNMENT( No information provided) compare and contrast at least two different 18-month forecasts for the (Gross domestic product). Include in your paper a reconciliation of the differences between the forecasts for each economic indicator and a rationalization for which forecasts you believe are most accurate
WK 5 Assignment: Prepare a 3,500-4,550-word cumulative paper based on prior Learning Team assignments(My Portion is 1500 words). Be sure to include an in-depth analysis on how your forecast will impact your industry. Be sure to include a group of final recommendations and strategic initiatives in your paper. NOTE: This is not simply putting together the previous pieces.View Full Posting Details