Ecoproject3 - Essay Example

Download file to see previous pages... Gross domestic is one of the leading predictor of the economic size of the country and his significantly influence the financial market and economic cycles which would be useful in formulating business plan and target projections (Madura,2008,99). Good GDP figures indicate positive performance of the overall economy and vice versa. Inflation rate is a factor in price and cost of input factors and therefore significantly influences investment decision. It would therefore be imperative for the trader from Japan to analyze this factor in the context of US economy. Unemployment rate reflects the consumption level and living standard in general. In the event that unemployment in US is relatively high then this would send wrong signals for a better business future in the country. Considering the trend of the above mentioned factors in the past 12 months in the US, it would be easier to make informed decision in respect of viable engagement. ...
Positive GDP predicts better market response for any potential investor and it would therefore important for the Japanese investor to consider starting the venture. Nonfarm payroll employment over-the-month change, seasonally adjusted, April 2012–April 2013Month Data retrieved on May 10, 2013 from: http://www.bls.gov/opub/ted/2013/ted_20130506.htm Month Employment change Apr 2012 112,000 May 2012 125,000 Jun 2012 87,000 Jul 2012 153,000 Aug 2012 165,000 Sep 2012 138,000 Oct 2012 160,000 Nov 2012 247,000 Dec 2012 219,000 Jan 2013 148,000 Feb 2013 332,000 Mar 2013 138,000(p) Apr 2013 165,000(p) From the change of employment rate that can be observed above, it is important to note that the trend in unemployment has been steady and changes very insignificantly. However, the latest period running through March and April 2013 there is slight fall in this change and this means that level of income is still in the right track. It would therefore be viable for the Japanese lady to kick-start the business as the US future is bright except for small disturbances that are likely to arise from economic cycles. Unemployment is one of the most important indicators of the overall economic progress and this is clear from the socio-economic and political concepts that surround employment in the society (Madura, 2008, 99). When the rate of unemployment is fairly down, there is better business prospects in the country and this can be predicted to be working out for US from the data provided by the Federal bureau of statistics. Inflation data for Jan 2012 to March 2013 Retrieved on May 10, 2013: http://inflationdata.com/Inflation/Inflation_Rate/CurrentInflation.asp Year Jan Feb Mar ...Download file to see next pagesRead More