International Business Management

Written Assignment Format

Name: SAGAR PANJWANI

Due Date / Day: 28/08/2010

Class: IBM(B)

Roll No: 2702158

Subject: IBM

Assignment No: 1

Topic: MICRO/MACRO ECONOMIC PARAMETERS AFFECTING GLOBAL BUSINESS

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What Does Macroeconomics Mean?

The field of economics that studies the behavior of the aggregate economy. Macroeconomics examines economy-wide phenomena such as changes in unemployment, national income, rate of growth, gross domestic product, inflation and price levels.

Macroeconomics is focused on the movement and trends in the economy as a whole, while in microeconomics the focus is placed on factors that affect the decisions made by firms and individuals. The factors that are studied by macro and micro will often influence each other, such as the current level of unemployment in the economy as a whole will affect the supply of workers which an oil company can hire from

Macroeconomists try to forecast economic conditions to help consumers, firms and governments make better decisions. 

* Consumers want to know how easy it will be to find work, how much it will cost to buy goods and services in the market, or how much it may cost to borrow money.

* Businesses use macroeconomic analysis to determine whether expanding production will be welcomed by the market. Will consumers have enough money to buy the products, or will the products sit on shelves and collect dust?

* Governments turn to the macroeconomy when budgeting spending, creating taxes, deciding on interest rates and making policy decisions.

The performance of the...