Macro Economics

Macroeconomics has profound strategic and tactical implications for Business decision making across all functional areas of the firm.

1)

Banks stop lending to Oil Companies: Business Standard 10th October 2008.

2) Government rules out FDI in general retail: Business Standard 10th October 2008.

3) Advance Tax shows banking slowdown: Business Standard 10th October 2008 4) More measures in works to infuse liquidity: FM–Economic Times 14th October.

Each event some thousands of miles away, will have an impact first on global economic environment, and ultimately on the course of business cycle and thousands of corporations around the globe:

Global economic and political environment.  Global social and cultural environment  Global technological environment  Global regulatory, Tax & Legal environment. 



The proactive management of business cycle movements and turning points to build competitive advantage.



The more timely and tactical application of various instruments to hedge macroeconomic risk associated with changes in exchange rates, interest rate, Oil price shocks etc.



Crafting appropriate strategic and tactical responses to random macro economic shocks associated with phenomena ranging from war and terrorism to currency crises, drought, and so on.

Macro Economics deals with aggregate economic activity. Total volume of output Employment levels Saving Investment General price level

What is true of the part is not necessarily true of the whole Society

Income=Exp

Individual Income = Exp Saving = Investment

Saving=Investment