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Summarize and response (Corporate Economists Are Hot Again) - Essay Example

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However, since the US economy stabilized, most private firms dropped them as in-house employees as they argued that anyone could interpret data and draw conclusions. However, this has not been…
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Summarize and response (Corporate Economists Are Hot Again)
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Summarize and response (Corporate Economists Are Hot Again)

Download file to see previous pages... This is because the economy of the country at time the year is always verge and anything could hit. According to a report issued by the department of labor economics, where a lot of data is available in the market, it makes it harder to predict future occurrences (Tita, 2014).
Even when programmers have all the data that is needed, it requires someone with an economic background to analyze the information. When the economy of the US stabilized in the 1970’s, most firms dropped their in-house economists. They argued that they could get any GDP forecast from any person.
The primary role of economists in a firm is to digest data and information provided and come up into conclusions. The analysis helps firms to determine the number of opportunities as well as risks in the business world. Economics background is essential in order to achieve this. They also serve as gatekeepers in firms to ensure that forecasts are made from a similar set of data. This aims at ensuring uniformity of the statistics provided and accuracy of the information given to all stakeholders involved.
This is important in making financial decisions even in the future. Their knowledge and expertise are crucial in measuring business risks. They also offer consultancy services for new firms entering the market or even to existing ones. This may sometimes involve large business acquisitions. In such cases, market research on various key segments enables the economists to forecast on the future.
However, like anyone one else in the business world, economists are prone to missing the mark. For instance, they forecasted that the economy in Asia will increase to 6.5%. Rather, this was not the case as it only rose to 3.5%. This was caused by China’s economy which grew slightly that expected.
However, it is more difficult to make forecasts in the developing countries especially in Africa. This is because it is always difficult to quantify the level of demand at ...Download file to see next pagesRead More
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