Economics Business Proposal

Global Economic Conditions and Local Macroeconomic Indicators

The global economy has yet to fully recover from the crisis of 2008-2009 (The Conference Board, 2013). The global economic conditions are growing, but at a reserved pace. Europe remains in recession, United States growth remains mediocre, and the major emerging markets face slower growth (Buckley, 2013). The disappointing growth experienced in the first half of the year is partly attributed to the increase in payroll tax and the tax increase for high income earners (Buckley, 2013). The United States will likely experience slow-to-moderate economic growth for the rest of the year. Consumers have increased spending on goods, while the service industry experienced decreases, especially in legal services, personal care services, and health care spending (Buckley, 2013). The year can end with a boost if consumer spending caution eases and spending picks up. The increase in consumer goods spending should set the stage for stronger performance in 2014. “Overall the global growth rate will end up at a disappointingly low 2.9 percent for the year, about 0.3 percentage points below the global growth performance in 2012” (The Conference Board, 2013, para 5).

According to a survey completed by the Consumer Electronics Association, 41% of consumers who currently own digital cameras will purchase a new camera with the latest technology and features; with 34% of consumers looking to purchase DLSRs, along with 70% of consumers looking for a device to upload pictures with a push of a button (CEA, 2013). Canon strategically planned the release of their new camera based on economic conditions and before the holiday season.

Local Economy’s Business Cycle Stage

There are four phases in a business cycle.  If gross domestic product (GDP) has been going up but is no longer rising, the economy is at the peak of the business cycle, if GDP starts to shrink, the economy is in a recession.  If the economy has been in a...