economic environment (macro) fundamental learning objectives identify the macroeconomic factors...
Post on 21-Dec-2015
219 views
TRANSCRIPT
![Page 1: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/1.jpg)
Economic Environment (Macro)
Fundamental Learning Objectives
Identify the macroeconomic factors that affect business performance
Explain how market prices are determined Explain how the government influences
economic conditions
![Page 2: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/2.jpg)
Economic GrowthThe change in the general level of economic activity
![Page 3: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/3.jpg)
Inflationthe increase in the general level of prices of products and
services over a specified period of time
Measured by the
Cost-Push Inflation
•
•
•
Demand-Pull Inflation
•
•
•
![Page 4: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/4.jpg)
Interest Ratesthe cost of borrowing money
Affect a firm’s Expenses:
Affect a firm’s Revenue:
![Page 5: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/5.jpg)
Demand and SupplyWhat is demanded by customers or supplied by producers
based on PRICE
• Demand:
•
•
• Supply:
•
•
• CHANGE in S or D Determination of MARKET PRICE:
![Page 6: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/6.jpg)
Market Price Influences
![Page 7: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/7.jpg)
Government Influence: Monetary Policy
What is Monetary Policy?
Interest Rates
Interest Rates
![Page 8: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/8.jpg)
Government Influence: Fiscal Policy
What is Fiscal Policy?
![Page 9: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/9.jpg)
Economic Environment
Macroeconomic factors that affect business performance include:
Market prices are determined by:
The government influences economic conditions through:
![Page 10: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/10.jpg)
Industry Environment (Micro)
Identify the industry characteristics that influence business performance
Explain why some firms are more exposed to industry conditions
Explain how a firm can compete within its industry
![Page 11: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/11.jpg)
Business Performance is dependent upon industry characteristics
![Page 12: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/12.jpg)
Industry Exposure
Reducing Exposure -
![Page 13: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/13.jpg)
Competing Within an Industry
![Page 14: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/14.jpg)
Industry Environment (Micro)
Industry characteristics that influence business performance include:
Some firms are more exposed to industry conditions because of their:
Firms can compete within their industry by:
![Page 15: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/15.jpg)
Global Environment (Global)
Explain why US firms engage in international business
Describe how firms conduct international business Explain how foreign characteristics can influence a
firm’s international business Explain how exchange rate movements can affect a
firm’s performance
![Page 16: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/16.jpg)
Why Engage in Int’l Business?
![Page 17: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/17.jpg)
Conducting International Business
![Page 18: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/18.jpg)
Foreign Characteristics that Influence International Business
![Page 19: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/19.jpg)
Exchange Rate Movements Affect Business Performance
![Page 20: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/20.jpg)
Global Environment (Global)
US firms may engage in international business to:
Firms conduct international business through:
![Page 21: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/21.jpg)
Global Environment (Global)
Foreign characteristics that can influence a firm’s international business include:
Exchange rate movements can affect performance
![Page 22: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/22.jpg)
Forms of Business Ownership
New business owners choose from the following general forms of business ownership:
Existing businesses can be owned by:
Business Performance is measured by:
![Page 23: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/23.jpg)
Planning a Business
The Primary Stakeholders are:
![Page 24: Economic Environment (Macro) Fundamental Learning Objectives Identify the macroeconomic factors that affect business performance Explain how market](https://reader036.vdocuments.mx/reader036/viewer/2022062516/56649d6a5503460f94a4939d/html5/thumbnails/24.jpg)
Planning a Business
The Key Functions of a Business include:
To Develop a Business Plan include: