Explain Macroeconomic And Microeconomic Concepts And How They Relate To The Management Of A Global Organization.


4 Answers

amber Jhon Profile
amber Jhon answered
Macroeconomics is the one of the branches of Economics. It deals with the structure, behavior and performance of an economy as a whole. It also deals with the study of the economy with the macroeconomic indicators like GDP, price indices, economic growth, literacy, unemployment and inflation. On the other hand, Microeconomics deals with the impact of the decisions made by the individuals, households and firms for the allocation of the limited resources.

Macroeconomics is very important because it can help the economists in understanding the stability of the economy. The decisions of the monetary and fiscal policies are based on the study of macroeconomics. Similarly, microeconomics is very important for studying the market functions and how to set the prices in consideration to the demand and supply. Both macroeconomics and microeconomics provide in-depth analysis about the economy and there are very few limitations of both. For example, I think behavior of the consumers are studied in both of the branches but cultural factors are totally ignored.
Rajesh Shri Profile
Rajesh Shri answered
Microeconomics and Macroeconomics are two main branches of economics. Microeconomics is the branch which focuses on how individuals, households, and organizations make their decisions to distribute resources that are limited, typically in a market which sees trade of goods or services. Microeconomics studies how these decisions influence the general the supply and demand for commodities and services. Again the supply is what determines the prices, which in turn, determine the supply and demand of goods and services. Microeconomics has been called "the bottom-up view of the economy" [1] , or "how people deal with money, time, and resources." [2]

Macroeconomics studies the "sum total of economic activity, dealing with the issues of growth, inflation, and unemployment and with national economic policies relating to these issues" [3] and the effects of government actions (e.g., changing taxation levels) on them. [4]
It is quite evident that a management of a global organization will have to take both microeconomic and macroeconomic aspects into consideration before they decide on their management policies. Macroeconomics will pretty much be dependent on the regional government which will differ from one country to another and in some cases even one state to another. This is due to different forms of government and policies in different parts of the world. Hence this will be a main area of focus for the smooth running of a global organization. Microeconomics on the other hand, depends on mainly the behavior of people in various parts of the world. Hence for a global organization, it is imperative to do a thorough study of both taking into consideration the regional aspects before implementing any management policies.
dimpal babu Profile
dimpal babu answered
Under the macroeconomics it is the bigger concept of economics whole sale price,national income etc.

Microeconomics is a smaller concept of economics such as individul price of product.
Anonymous Profile
Anonymous answered
Macroeconomic deals with the whole; it includes, inflation, depressions, recessions, and how it affects a particular industry.

Microeconomics deals with the decisions businesses and people make regarding allocation of resources and price.

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