StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Macro - Assignment Example

Comments (0) Cite this document
Summary
Running Head: ABBREVIATED TITLE OF YOUR CHOICE (all caps) Macro Answer #1 Germany is an open economy, so its economy is affected by international competition and location of its product and factor market…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.4% of users find it useful
Macro
Read TextPreview

Extract of sample "Macro"

Download file to see previous pages (Riecher, 2013) Figure 1: Unemployment Rate in Germany1 Germany has been able to deal with structural changes efficiently as its policy doesn’t include laying off workers rather makes the work shorter hours. So when workers cut off their working hours, the government makes up half of the wages of lost working hours. This is a better alternative than being unemployed. Apart from that there a system known as hour bank where workers put extra hours during good times. So these hours could help to compensate in downturn where less hours is worked. Also the unions and management negotiate together on reducing working hours. (Baker, 2013) According to IMF Inflation in Germany by the end of 2012 was 2.137 percent and is expected by IMF that inflation will average to 1.6 percent in 2013. The economy is growing but is not putting an upward pressure in price. This is because the government is able to control inflation because of its tight monetary policy where it has maintained its currency strong too. (Stefan, 2013) Figure 2: Inflation Rate in Germany2 Answer #2 Germany is a part of European Union so it does not have its own money and can’t use its own monetary policy. It follows the policy that is set by the European Central Bank. Current Interest rate maintained by the European Central Bank is only at 0.5 percent. ...
So it is important for it to maintain balance in interest rate policy. (Stefan, 2013) Germany fiscal policy shows that’s its revenue as by IMF data has over the years accounting to 1201.38 billion expected in 2013 that is 44.372 percentage of the GDP. Its government expenditure as percentage of GDP amounts to 45.005 percent in 2012 and 44.703 percent expected in 2013. Government’s high share in expenditure is having negative effect on growth rate as it is not giving a room for private investments which has been low around 17.219 percent of GDP in 2012 and expected 17.369 percent in 2013. Low investment means low domestic demand for goods and services which needs to be created by the government. Also the tax rate in Germany on individuals income is progressive, higher the income, higher the tax rate which ranges around 14 to 45 percent on individuals income. Effective corporate tax rate is around 30 to 33 percent. It needs to make sure to reduce taxes in order to encourage more growth and investment in the economy. (Randow, 2013) Answer #3 Germany is the power house of industrial base and world’s second largest exporter. One policy Germans adopted was not to borrow money rather they focused to live with their own means as taking debt meant paying back with huge interest costs. They consider taking loan as doing something wrong and feel guilty for it. Germany made its labour market strong in 2003 when it came up with fundamental labour market reform. The government maintained good relations with labour unions in order to easily negotiate on labour wages. At same time workers kept working hours low keeping in mind it was better than to getting unemployed. This helped the economy to flexible in labour ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Macro Assignment Example | Topics and Well Written Essays - 1000 words”, n.d.)
Macro Assignment Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/macro-microeconomics/1477837-macro
(Macro Assignment Example | Topics and Well Written Essays - 1000 Words)
Macro Assignment Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/macro-microeconomics/1477837-macro.
“Macro Assignment Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/macro-microeconomics/1477837-macro.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Macro

Uncontrollable Factors in Macro and Micro Environment and their Impact On Shyamali Exporters Limited

...-environment contains forces such as social, cultural, political, economic, technological, legal, environmental and economic factors (Armstrong & Kotler 2000). Appendix I illustrates the interaction of the Macro Environmental factors with the organisation. Essay aims at analyzing the impact of these environmental factors upon the operations of Shyamali Exports Limited, a well-established Indian manufacturer and exporter of Cushions, Quilts and home deco and accessories to the UK and other European markets. The essay also analyses the importance of market research in operating successfully in a dynamic, globalised market place. Shyamali Exports is a mid scale business operation based in Chennai – India and operates with modern machinery...
9 Pages(2250 words)Case Study

Macro Economic Policies of the French and German Governments

In contrast, the Socialist Partys Ségolène Royal has made large spending promises which would cost, according to estimates by the Economist (2006), €49 billion per year by 2012. That is almost a third more than the expenditure planned by the current government, and there are questions as to whether the faltering French economy will be able to support such levels of expenditure.
In the three months to September 2006, the quarterly GDP growth rate was zero, when the Bank of France had forecast growth of half a percent. Many economists believe that the flat growth in the third quarter of the year was merely a correction from the 1.2% growth in the second quarter, a view that was born out by 0.7% growth in the...
11 Pages(2750 words)Assignment

Analysis of Macro Factors of the Business Processes of Electronic Firm Sonic Divine

... chains, customer relationships, organizational structure, and so forth – are held together by a “glue”, and that glue is essentially information’ (Evans, Wurster, 2000). Looking at the increasing popularity of the internet, using this media in wider interest of business, the company can advertise the microwave oven as the new age revolution in environment preservation and sustainable development. The vast database of internet users would help the company to significantly gain market position. New microwave oven, not only incorporates the latest technology in its operation but the use of cyber technology and e-commerce would penetrate new tech savvy market. 2.6 Political These macro environment elements have direct and indirect impact...
8 Pages(2000 words)Case Study

Micro and Macro Carbon Audit

...target. As these objectives require significant participation of the general population, a significant level of higher participation is required. It is desirable to increase awareness efforts among the population. Recommendations have been included in the following sections to improve awareness and adopt measures that could lead to accomplishment of set objectives. 5.0 Macro Audit There were 468,070 people in Edinburgh in 2007. The number of households in Edinburgh was 216,524, and the average household size was 2.2. 3.37 M tonnes of CO2 were produced annually by Edinburgh residents and businesses, the third highest in Scotland. CO2 sources from businesses were 44%, which was higher than 40% at the UK level. Production of CO2 per...
14 Pages(3500 words)Research Paper

Macro and Competitive Environment of the Non-Alcoholic Redbull Cola in the UK Market

.... The impact of major macro factors vis-à-vis economic; demographic; socio-cultural; new environmental compulsion and nature; and technology on the market strategy of Redbull Cola drink. Identify major competitors. Identify segment that would help create market position for the UK market. Most effective means of creating awareness of the soft drink in new market and popularizing it amongst the people. Findings Red Bull cola faces stiff competition from the already established brands like Pepsi and Cola Cola. Since Red Bull has already a dominant market position in the energy drinks, launching of its Cola version would become easier within this particular market segment as it has many differentiating elements in its cola product which can...
6 Pages(1500 words)Case Study

Macro and Micro Environmental Factors in the Organization of Tesco

...”. Environment Analysis The environment may be divided into three layers: the macro environment; industry or sector; competitors and markets. All these layers interact with each other within themselves. When considering the macro-environment factors for TESCO the basis of analysis to be used is the PESTEL analysis. This model uses broad headings such as: Political, Economic, Social, Technological, Environmental and Legal; to analyze an organization’s macro-environment. Macro-Environmental Analysis Political Each and every company in which TESCO operates has a different political risk because of the fact that different countries have different political policies which...
10 Pages(2500 words)Case Study

The Key Macro Factors that Have Influenced the UK Grocery Retailing Industry since the Early 1960s

... accounting for macro economic factors in strategy development and management, a business will fail (Johnson et al, 2008, p.3). If we consider this contextually with regard to the UK grocery market; the move demise of the local high street store to the dominance of supermarkets in the past 20 years has radically transformed the grocery market ( Henry, 2008, p.77). For example, the DEFRA Economic Note on UK Grocery Retailing (2006) indicates that in addition to continued growth in the UK Grocery Retail sector; approximately “3/4 sales are made in supermarkets and superstores… with traditional small retailers now accounting for only 7% of sales” (DEFRA, 2006). It is submitted that a key element of this is effective interrelationship between...
13 Pages(3250 words)Assignment

Macro Issues That Affect Airlines Industry

...1. Macro Issues That Affect Airlines Industry The airline industry is also affected by macro issues taking into account the following: The current world financial crisis negatively affects the demand of the airline industry and customers’ disposable income as they becoming more price conscious. Market deregulation and liberalization in the airline industry had increased competition. The emergence of low-cost carriers (LCC) has exceeded the high performance and profitability of legacy carriers. The impact of terrorism and contagious diseases had also decreased the demand for air travel, because customers are more conscious on their safeness (Beamish & Ashford, 2005, p. 352). The airline industry is gravely affected by the rising fuel...
10 Pages(2500 words)Case Study

Macro and Microeconomics Factors in the UK Housing Market

The housing industry is divided into residential, commercial and industrial segments. Economists define supply in terms of service units, that is, a physical unit can be deconstructed into the services that it helps provide. These housing unit services are considered as an unobservable theoretical construct. Housing stock depreciates making it qualitatively different from a brand new constructed building.
The owner, user/owner and renter comprise the demand side of the housing market while the renovators and developers comprise the supply side of the market. In order to implement the simple demand and supply analysis to the housing markets, several modifications have to be made to the standard microeconomic procedures and ass...
8 Pages(2000 words)Research Paper

(1) Select a specific firm in business markets you are familiar with and (2) analyse market segmentation strategy of the firm in business markets. (3) Some firms follow a single-stage segmentation approach using macro dimensions; others use both macro-dim

...Market Segmentation Strategy of Nokia Company Contents Executive Summary 2 Introduction 3 Central Concepts Defining Market Segmentation 4 Description of Nokia’s Market Segments Based on Psychographic 9 The Segmentation of Nokia Conducted on the Basis of Price 10 Conclusion and Recommendations 11 Bibliography 12 Executive Summary The Nokia Company is one of the leading entities in the mobile phone industry. The company has exhibited a proper understanding of the dimension used in market segmentation. This is evident in the company’s efforts to identify numerous market segments and design products that suit the needs of these customers. The first section of the paper presents the central aspects defining market segmentation... Segmentation...
10 Pages(2500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic Macro for FREE!

Contact Us