Business Economics : An Important Effect On Business

1595 Words Nov 16th, 2014 7 Pages
In recent years, the globalization has faced with a multitude of economic, social and environmental crises which these situations have had profound impact on business by threatening the well-being of present and future business economics. For example, business economics are an important effect to enterprises or companies’ strategies especially the factors which influence on their decisions, there are considering the acquisitions of productive materials and the transformation of these materials into products and services for satisfying customer needs and wants. On the other hand, business economics are considered with the processes of production and consumption which consist of profits, incomes and costs. However, business decision making not only concern the effect of internal environment, but also consider the external environment such as the importance of relationships with suppliers, consumers and governments. Moreover, consideration of a company’s external environment which comprises of political, legal, social, technological and economic could incline to have more influence on the day-to-day firm’s operation (Worthington, Britton, & Rees 2005).
Therefore, macroeconomic environment has become a significant factor which affects individual organisations, industries and markets. Montiel (2009) defines “Macroeconomics” as a field of economics which studies an economy’s aggregate performance, behaviour, structure and decision-making for whole economy rather than individual…
Open Document