Economics and Economic Methodologies
Question:
Discuss about the Economics for Micro and Macro Price.
The essay is prepared in relation with providing the information related with understanding the basic methodologies attached with economic analysis. For company example Apple is chosen in which a trial will be made that appropriate set of support could be provided to the company. Apple is the most renowned name in the market for which it is required that the company should indulge in the economic analysis practices and should gather relevant set of information related with the macro economic factors which will provide support to the company and some of them will affect the market of the same. Economic analysis provides a set direction to the organization, gathering relevant set of information related with Australian intervention on the system will help in the decision making aspects of the company.
The knowledge which is related with the production, consumption and transfer of the wealth of the organization as well as the individual is known as economics. Economics provides the information related with the wealth of the company with the help of which company makes the decisions of processing the further work and ensuring that where it should invest the money and where it should not (Uslaner, 2007). Economic methodologies provide the information related with the methods especially the scientific methods in relation with the economics which includes the principles of the underlying economic methods. It is the method help of which Iphone will get appropriate set of information regarding the methods related with the scientific aspects of the economics with the help of which Iphone will be able to develop effective set of strategies (Temel, 2014).
Economic analysis are the analysis which are performed with the help various tools, these tools helps in providing effective set of direction to the organizations. Hence, the tools which help in providing effective set of support in the economic analysis are:
Economic analysis helps in the identification of the nature of the economic variables and determining the levels of the relationship between two or more economic variable (Libich and Nguyen, 2014). It is the aspect which is refers to the economic quantity the value of whose changes with the change in the determinants attached with it or in the changes in the economic activities.
For example: Price of the Iphone is being determined by the company by evaluating the demand, cost that would incur in the supply and production of the product. Such type of activities helps in determining the price of the phones of Apple (Hubbard, O’Brien and Sharma, 2013).
Demography plays an important role in the making the investment decisions. Demographic changes have a great impact on the market like low birth rates; changing family structures and migration have a direct impact on the organization (Heaton and Oslington, 2010). In present scenario it could be seen that family structures in Australia are changing people are getting more attracted towards the new gadgets and technologies and prefer to choose the quality products. In this situation it is necessary that apple should develop the strategy which could attract the families because it will help the company to enhance its sales in the market (Blackstone, 2009).
Tools Used for Economic Analysis
Optimization Techniques and the linear programming are the two other aspects which help in the economic analysis of the market as well as requirements of the organization with the help of which organization in making appropriate set of decisions (Francois and Wooton, 2010).
Australian government has a great impact on the economic system because there are various economic aspects and decisions which are being taken by the government (Dick and Wang, 2010). Government takes the view which is best suited to the market and helps in allocating the scarce resources which helps in allowing the market forces of demand and supply with the effect of which prices are certain. There are certain decisions of the prices which are taken by the government so as to ensure that the fair deals could take place and decorum of the market could remain maintained (Chen, 2016).
Fiscal policies are the policies which are used by the government interventions which uses the spending and the taxes powers so as to have an impact on the economy. Fiscal policies are applied by the government so as to keep the balance in the economy (Yang and Liu, 2009). Fiscal policies are directly linked with the Keynesian economic theories which are based on the belief that the government should take proactive actions so as to steer the economy. Fiscal policies are developed by the government so as to ensure that spending made by the companies could be controlled. This aspect has a direct impact on the processing of Apple because due to fiscal policies company will not be able to invest effective set of amount in the market which will have an impact on the sale of the products and services of the same (Abe and Tonogi, 2010).
Monetary policies are the policies which are kept by the government so as to keep the control over inflation rate. Monetary policies have a direct impact on the interest rates, this will again have a direct impact on the process of Apple because the money which is being borrowed by Apple will get affected in this organization will have to make higher payments for the money borrowed by the same (Blackstone, 2009).
Apple should ensure that it should develop the understanding with the macroeconomics because it helps in forecasting the economic conditions with the help of which company will be able to make appropriate decision. Indulging in the stock market is a very typical task which requires that the organization should undertake the information of macro environment and should work according to the condition of the market (Wiley, 2016). There are various aspects attached with the progress of the business in the macro economy these aspects are:
Gaining information related with the GDP of the country will help Apple in making appropriate set of decision related with the investment (Uslaner, 2007). Economic growth is being taken into consideration in relation with the gross domestic product in which provides a set direction to the organization to make the decision of whether it should invest in particular economy of not. It is necessary that the economic growth rates should be analyzed in an appropriate manner. Such type of information will help in making effective investment decisions for Apple. Economic growth shows the positive indication for the businesses in the same manner it will also provide a better set of support to Apple with the effect of which it will be able to increase its sale and will ensure its success in the market (Abe and Tonogi, 2010).
Impact of Demography and Macroeconomic Factors on Apple
Inflation is another macroeconomic aspect which should be taken into consideration by Apple as it is another aspect which helps in the decision making of the company (Temel, 2014). It is the increase in the overall level of the prices which are measured by the consumer price index. This is the index which shows the value of the money which changes over the time. Inflation rate helps the organization in deciding whether to make the investment into the market or whether the organization should wait before investing in the same (Libich and Nguyen, 2014).
International trade is one of the most important aspects attached with Apple. It is a well known thing that apple is one of the most known brand in the market. People in the market are crazy for the product of apple i.e. Iphones. Hence, it becomes important for such type of company to focus on the international trade and gather appropriate set of information related with international market so that company could make effective set of investments and could ensure to provide a better set of support to the people available in the international market (Hubbard, O’Brien and Sharma, 2013).
Coming to different market structures, market structures have a great impact on the businesses. It is required that Apple should make appropriate set of decisions related with various market structures (Heaton and Oslington, 2010). This will help Apple in making effective decision to invest in the market with the help of which company will be able to grow and develop its business in different market structures. There are various market structures which should be taken into consideration and appropriate set of knowledge regarding the same should be gained by apple so as to ensure that it could make the decision to enter into the right market (Francois and Wooton, 2010).
There are various market structures like perfect competition, oligopoly market, monopoly market, and contestable market (Dick and Wang, 2010). With the help of the information gather in relation with the market structures it could be analyzed that Apple is dealing in the perfect competition in which there are large number of sellers selling the products and services and huge number of consumers available to purchase those products and services. In this price is the main factor which could affect the sale of products and services. Apple should ensure that it should avail the competitive prices so that it could beat the competitors and could attain competitive advantage (Chen, 2016).
Conclusion
At the end it could be said that economics is a very broad concept which is required to be focused upon as it is the aspect which helps in the decision making process of the organization. Both micro and macro economics are required to be understood by the organizations before making any type of investment. It is required that government interventions should be followed in an appropriate manner so that organist ion could manage its smooth functioning and effective set of understanding should be developed in relation with various market structures with the help of which effective decision could be made by the organization to make the investment in the right direction.
References
Abe, N. and Tonogi, A. (2010). Micro and macro price dynamics in daily data. Journal of Monetary Economics, 57(6), pp.716-728.
Blackstone, W. (2009). Commentaries on the Laws of England. Adelaide: The University of Adelaide Library.
Chen, C. (2016). Endogenous Market Structure and Technology Licensing. The Japanese Economic Review, 68(1), pp.115-130.
Dick, W. and Wang, W. (2010). Government Interventions in Agricultural Insurance. Agriculture and Agricultural Science Procedia, 1, pp.4-12.
Francois, J. and Wooton, I. (2010). Market Structure and Market Access. World Economy, 33(7), pp.873-893.
Heaton, C. and Oslington, P. (2010). Micro vs macro explanations of post-war US unemployment movements. Economics Letters, 106(2), pp.87-91.
Hubbard, R., O’Brien, A. and Sharma, A. (2013). Economics. Harlow, Essex, England: Pearson Education.
Libich, J. and Nguyen, D. (2014). Macro Meets Micro: Stochastic (Calvo) Revisions in Games. The B.E. Journal of Theoretical Economics, 14(1), pp.132-133.
Temel, B. (2014). Book Review: The Oxford handbook of sports economics: The economics of sports and The Oxford handbook of sports economics: Economics through sports. Journal of Sports Economics, 15(6), pp.650-653.
Uslaner, E. (2007). The foundations of trust: macro and micro. Cambridge Journal of Economics, 32(2), pp.289-294.
Wiley, J. (2016). Measures for the Administration of Cultural Heritage Conservation Interventions. Chinese Law & Government, 48(3), pp.184-189.
Yang, X. and Liu, W. (2009). Inframarginal economics. Singapore: World Scientific Pub., Co.
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