Importance of Economics - 553 Words

Economics plays an important role in firm decision-making. Macroeconomic conditions affect the firm in a number of different ways, including demand, taxation, competition, hiring and borrowing rates. Considering these in turn, demand for toothbrushes and other consumer staples is not cyclical with the health of the economy. While the macroeconomic health of the country is important, demand should not fall much when the economy stumbles. The business cycle is particularly important because right now we are in a state of slow recovery from recession. If this recovery picks up, our expansion will see strong gains, part of which will simply come from the economic expansion (Simpson, 2012). Taxation is an element of fiscal policy, and we should ensure that the strategies we undertake will minimize the tax burden placed upon the company. Competition is encouraged by trade policy. Americas commitment to free trade means that we could potentially face a number of international competitors but more importantly that we are likely to have easy access to any number of foreign countries. Hiring is something that is affected by macroeconomic conditions and is directly relevant to our current expansion plans. Our ability to find quality people is one of the things that will influence our success in the marketplace. In a down economy, with a higher unemployment rate, it is more likely that we will be able to find good people. We can have an easier time hiring sales reps fresh out ofShow MoreRelatedThe Importance of Islamic Economic1933 Words   |  8 Pagesknow what is Islamic economic before we carry on discussing the importance of Islamic economic. There are two main categories of definition of Islamic economic are ventured by Muslim economists. The first categories consist of definitions that concentrate on the principles of Shari’ah that make up the framework or the milieu of the behavior of economics agents. While the second categories focuses on the behavior of the agents themselves. Hasanuz Zaman defines Islamic economics as â€Å"the knowledge andRead M oreThe Importance Of Economic Globalization704 Words   |  3 Pagesmarkets to the maximum extent under the current conditions. Economic globalization can bring about the most advantageous conditions for production, sell in the most favorable market, achieve the optimal monetary development in the world, improve economic efficiency and make the commodities more in line with consumers needs. Second, to promote and strengthen the development and competitiveness of the international division of labor. Economic globalization has promoted the continuous expansion of theRead MoreThe Importance Of Financial Economics960 Words   |  4 PagesAs such, it is paramount to channel most of the expenditure on items that are deemed primary in life. Although the view of what falls into the primary and secondary category is subjective and depends on ones level of life, from the financial and economic sense, we shall take the item Car as secondary. From this, it can be seen that four types of expenses are spent on this single item, totaling $270 monthly yet it is secondary. Insurance is a bold step in hedging and cushioning oneselfRead MoreThe Importance Of Economic Globalization1583 Words   |  7 Pagesconsumers contribute to economic globalization by purchasing products from transnational corporations, every single day. The source takes an opinion against globalization, specifically economic globalization. Which is the interdependence that economies across the world rely on each other to continue and prosper. These economies rely on each other, because countries buy, and trade products that they can not produce, with those that can. The sources main point against economic globalization is thatRead MoreThe Importance Of The Economic Crisis1171 Words   |  5 PagesDuring the first couple of years following the economic crisis of 2008, the media was full of stories featuring Americans nearing retiremen t age whose 401(k) accounts had lost a significant amount of money. For example, in 2009, (-- removed HTML --) CBS (-- removed HTML --) interviewed several people in their 50s and 60s who had seen their life savings reduced by 50 percent or more. 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Each time someone buys a chocolate bar from a newsagentRead MoreImportance Of Economic Market Structures1406 Words   |  6 PagesImportance of Economic Market Structures Before an organization or investor makes a strategic decision to enter a product in today’s economy, a thorough market analysis is vital to fully comprehend the domestic and international demand, current suppliers, entry and exit barriers present, and cost of production for the product or service being provided. The culmination of this investigation identifies the market structure the product resides in, associated potential long-run profitability, costRead MoreThe Economic Importance of Cultural Diversity1135 Words   |  5 Pagesis cheaper for any organization. Then after a few years, he or she can get tired of that job, and get something of their own, like for example, a restaurant. This restaurant then would turn out into a franchise that would give the country a better economic stance. Many Americans believe that immigrants are a burden to the economy, because they get free medical or they do not pay taxes. All immigrant students go to school for free. They do not have to pay money. I can say for experience that this isRead MoreThe Importance Of Tourism For Economic Growth Essay1740 Words   |  7 Pagesgovernment began to recognize importance of tourism for economic growth. They initiated reform of Cancun city (Visitmexico,2012). The government constructed travel zone, residence zone and an international airport as a master plan (Cancuntravel, n.d). Cancun seems to be quite young place. However; it has contributed large percentage of Mexico’s tourism-related revenue. And according covey (2015) stated 4.8 million visitors have come in Cancun compared to 4.6 million in 2013. Martà ­nez, Nechar, andRead MoreImportance Of Economic Market Structure3664 Words   |  15 Pages Importance of Economic Market Structures Kevin Green Economics 204 Principles of Microeconomics Charles Fanning 8-3-14 Importance of Economic Market Structure In today’s economy, before an investor or any organization makes a strategic decision to begin production of a product, a market analysis is done to get vital information and to thoroughly understand the domestic or international demand, current suppliers, entry and exit barriers into a market, and the cost of producing a product