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Global business decision making

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Articulate how macro- and microeconomics come into play in the context of company decision-making in a global business.

***Length= 5-6 paragraphs, and please list any and ALL references used along with websites where info. was found, for proper citation*

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Economic considerations involved in global decision making

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Microeconomics is concerned with the concepts of marginal productivity and utility. Macroeconomics deals with the economy as a whole and issues such as inflation and unemployment. Globalization is the increasing integration of economies around the world, particularly through trade and financial flows. Globalization is generally divided into three "waves." During the first, the advent of the railroad allowed land-rich nations to exports goods to those with high population densities. During the second wave, trade barriers between developed nations were lowered. During the final stage, developing countries are becoming major players. Their lower costs of living have made them ideal locations for many companies in need of labor which is very expensive in developed countries. For more on this, see
http://www.businessweek.com/magazine/content/03_05/b3818001.htm
For more about the significance of globalization, see
http://yaleglobal.yale.edu/about/waves.jsp

As a company, you will be concerned with what your competitors are doing. If they are relocating ...

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