Economics Memo

Submitted by: Submitted by

Views: 553

Words: 873

Pages: 4

Category: Business and Industry

Date Submitted: 02/21/2011 07:51 AM

Report This Essay

Using alternative economic possibilities, a business can properly plan to address the changes that may occur. Larson has the opportunity to address three alternative economic futures to achieve the maximum desired results. This memo includes an outline of the possible economic futures and the recommendations to address the variance in economic situations. Comparing the economic situations in both global markets of the United States and Germany, both current and future, can lead Larson to make decisions that may affect the way that Larson conducts business in each market.

Description of Three Alternative Economic Futures

According to McConnell, Brue, & Flynn (2010), corporations in the global market experience four different business cycles that include peak, recession, trough, and expansion, which vary immensely in intensity and duration (p. 521). The impact caused by stages in the business cycle are important to understand because of the influence they have on a country’s gross domestic product (GDP), unemployment rates, and consumer price inflation. Larson’s business team focused on current and projected economic conditions for the United States and Germany to prepare recommendations to strategically position Larson to continue to be a competitive player in the battery manufacturing and sales industry. In addition, the team investigated the economic conditions of countries outside of the corporation’s current operations for expansion alternatives based on projected economic futures.

A close look at recent years in the German and the United States economies indicates that, between 2008 and 2009, both countries have experienced a large decrease in the rate of inflation, a continued increase in unemployment, and a substantial decrease in GDP (Index Mundi, 2010, para. 4). Batteries are increasingly becoming an inelastic product as the dependency on electronic devices increases as developing countries continue to evolve. Even during the trough, or low point of...