State of the economy - Essay Example

Approached within the paper will be the global macroeconomic issues surrounding Gross Domestic Product, unemployment, inflation and interest rates. Specific geographical areas of interest are the United States, Brazil, Germany and Japan. The current global economic outlook is important to understand when looking to expansion of current a current business. Currently the in the United States, “Current-dollar GDP -- the market value of the nation's output of goods and services – increased 3.

5 percent, or $126.3 billion, in the fourth quarter to a level of $14,871.4 billion. In the third quarter, current-dollar GDP increased 4.6 percent, or $166.4 billion.” (Gross national product, 2011)The rate of unemployment currently in the United States has increased to a reported 9.2% in March of 2011 which is substantially higher than prior years. Inflation as reported in “The inflation rate in United States was last reported at 2.1 percent in February of 2011” (United States Inflation Rate, 2011) Currently the interests rates are being artificially depressed thanks to massive infusions of new money as a result of the Quantum Easing plan.

In comparison Brazil in 2010 had a GDP of 2.194 trillion dollars with 7% unemployment. (Brazil, 2011) Germany had a GDP of 2.96 trillion dollars in 2010 with 7.4% unemployment. (Germany, 2011) Japan on the other hand had a GDP of 4.338 trillion dollars in 2010 with unemployment under all of the above at 5.1%. (Japan, 2011) When compared to the United States there is a very definite fiscal possibility available for global expansion. To retain market share at this point it would be necessary to increase our geographical market nationally at the very least.

When compared to the United States there is several obvious discrepancies, more importantly the lower levels of unemployment make it easy to see that there is possibly more available income. In looking at the economic indicators such as the GDP, unemployment, interest rates and inflation it becomes clear that one of the prime indicators that should be addressed that would affect a portion of our customer base is inflation. The rate of inflation will most affect those consumers on a fixed income as they have the most to lose based on individual buying power.

Japan for instance has maintained a low rate of inflation with a zero being reported in February of 2011. (Statistics Japan, 2011) This allows for a much higher purchasing power for consumers of our Shades of Youth line which directly caters to older individuals, these same individuals may be retired and on a fixed income. Germany is another nation with low rates of inflation and as a result this would be a good line in these locations as there is available purchasing income in the baby boomers market in these nations.

Brazil on the other hand currently has over 6% inflation which would make it more difficult, though not impossible to sell a luxury like Shades of Youth. Super Clean and Super White are both more necessary items than Shades of Youth and as a result we would want to market these in all three global areas as well as nationally. Because the global economy is suffering in many areas there will be a drive to consolidate business’s and promote stronger globalization pushes from current conglomerates. By taking