Macroeconomics Managers Internal and External Restraints, Essay Example

The macroeconomics manager should not ignore the objectives while concentrating on the money. This theory would different send the manager to the unemployment line. Macroeconomics is a balancing of objectives and economic variables. The manager looks at the entire economy analyzing the levels of growth, national income, the current employee rates, amount of government spending, and the market investing. It appears that the macroeconomics manager has difficult job trying to juggle all these variables. However, these managers will become successful if they balance the economy. The macroeconomics manager will fact internal and external barriers to balancing the budget. The internal factors are the labor, cost, processes, and procedures. The external factors are the issues that affect the business such as political social, economic and technological.

Macroeconomics is an area of research dedicated to comprehending the conduct of economies on a significant scale and using that knowledge to educate budgetary guidelines. The principles of macroeconomics are diverse, however they generally include deciding just how best to motivate financial development while avoiding economic deterioration. Many people who research macroeconomics attempt to build methods to emerge from recessions or depressions while some concentrate on sustaining continuously development while discouraging dramatic crises. The practical goals of macroeconomics entail making choices and enacting guidelines that have optimistic influence on an overall economy, which can be tough provided the often-unpredictable answers of economies to change. Many others study macroeconomics with the purpose of forecasting the tendencies of economies to be able to make high-quality business or financial choices. No matter the result, maneuvering of the economy is the central and practically valuable of the numerous goals of macroeconomics. Developing the philosophy essential to predictably change the economy can cause substantial economic well-being and durability, and can actually be an effective resource. For instance, macroeconomic policy may be used to significantly prevent a target nation’s capability to locate selected assets in order to stay in a financially healthy situation.

Political Environment

The best example of the political environment affecting the fertilizer industry. The cost of fertilizer has a special red dye ingredient that the government says it too toxic. The legislation that pushes for the change is pressured by constitutions at the corporate level that want this particular product off the market in the United States. The government sends out a mandated change to all farmers in the United States. The must abandoned the cheapest ingredient and replacing it with a much more organic solutions. As the result the alternative solution for the fertilizer company is use the organic ingredient but it cost over 1000.00 more per pound to produce. In addition, the impose regulations restricts them from using any other alternative but the organic ingredients. The makers of the organic ingredients raise the price by double because the fertilizer farmers are mandated.

The fertilizer company passes the higher prices on to the customer with higher prices. The customer will make a decision to continue buying the product or change brands. The political influence can impact regulations for groceries on which foods can be released to the public. The moral of the story the change in an economic condition can be manufactured by external sources such as politics. The political environment can affect the business economic markets. The government passes a new insurance initiative that requires any business small or large with at least 3 people on the payroll must pay for full benefits packages for the employees. The employer premiums for the each employee has tripled according to the new laws that says the insurance premiums can be raised by the Senate. The Senate signs the bills and the ripples began. The cost for running a business for large and small companies just got expensive. In addition, if the businesses fail to carry adequate insurance for a certain number of employees they get fined 500,000 per day they are not in compliance. The primary reason for the change is the President is coming up for reelection to ensure he gets the votes of the insurance companies. A political move that will benefit the President’s reelection. In the end, it will case business to lay off employees. The political issues with the President and constituents is not a new phenomenon. However, the political arena can dictate and control the economy by making financial decisions that only benefit a few people.

Social Environment

The social environment can have an impact on the macroeconomics based on the performance of the social sector. The best example is the poverty level which by measuring the behavior and performance of this sector can determine the health of the entire budget. The entire welfare of the poor is an indicator of the macroeconomic environment. The social climate can dictated economic changes such as the social issue today with Medicaid cut-backs that are causing the hospitals and physicians to have poor financial performances because of the cuts. In addition, society is getting less benefits which in turn forces over budget to become unstable. There are government agencies that protect wildlife and animals. The manufactures has damage the land to the point they are regulated on where they can operate which is a social answer to saving the land. These ever-changing factors from factories to protection laws that affects production of goods.

Technology

The innovation of technology can affect the economy because the technology can slowed down or increase the financial pace. The economic barometer today is the use of new technology life that can turn the market in a days’ notice. The economic impact of technology is best seen with the Apple organization allowing Microsoft to see their products on an Apple store or platform which has given a boost to the economic promoting healthy competition. The opposite can happen when Microsoft refused to make their software compatible to any other software. The technology impact to the economy can come from the consumer as well. The trend for using cable in the home is slowing because the past with the advent of the new technologies that allow the individual to use other options with paying for cable. The cable depends on advertisings so the market suffers because of the shifting technology market. The technology can impact the economy in a moment’s notice of the event such as the NASA announcing how many years it would before sending out another mission or when in the past Greenspan made a comment about the economy.

Macroeconomics Managers

The business managers that understand concentrating on the money is not balancing all the financial duties. The manager must be adapt at changes in fiscal and monetary policy that affects the economy. To always limit the forecasting of the future however, be prepared to make changes or adjustments as the market goes up or down. The goals of the macroeconomics manager would be everyone would be employed along with low stable inflation. The best policy or principle is based the expecting the producer to gain value and not expect the rising high prices. In addition to keeping a close look at the economics growth spurts and if the standard of living is changing. The manager should have a thorough knowledge about different types of policies that can control the economy. The analysis of monetary policy is important area because any shifts that effect the cost and availability of credit is a down economy. The management must have a solid background in fiscal policy that tracks government spending programs and the increase or decrease of tax rates.