Economy, asked by laksanyasenthil7095, 1 year ago

Describe macroeconomic policies critical for business environment

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Answered by saswatpatra
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Macroeconomic policy is usually implemented through two sets of tools: fiscal and monetary policy. Both forms of policy are used to stabilize the economy, which can mean boosting the economy to the level of GDP consistent with full employment.

Fiscal Policy 2. Monetary Policy 3. Supply-side Policies! The three main types of government macroeconomic policies are fiscal policy, monetary policy and supply-side policies.

The Macro Environment consists of 6 different forces. These are: Demographic, Economic, Political, Ecological, Socio-Cultural, and Technological forces.



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Answered by lakshyasingh1491
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Senior High School

Economics

5 points

What is the difference between macro and micro environment?

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 by Marianita16.01.2017

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Macro (External) Environment are the conditions existing in an economy as a whole rather than in a single sector or region. The macro environment is linked to the business cycle which includes gross domestic products, spending and monetary fiscal policy, inflation, and employment. Businesses cannot control the macro environment but rather it is the macro environment that can influence how the business functions depending on how much they rely on the economy. Macro environment factors can also determine the fate of companies and industries.

Micro (Internal) Environment refers to the forces that are very close to the company and affect its ability to do routine functions. It includes the company or industry itself, its suppliers, marketing intermediaries, customer markets and competitors. Before and upon deciding corporate strategy, businesses must carry out a full analysis of their micro environment.

Difference:

In a brief elaboration, micro (internal) environment is defined as the nearby environment, under which the firm operates while macro (external) environment refers to the general environment, that can affect the working of all business enterprises. The elements of micro environment is COSMIC which stands for Competitors, Organization (itself), Suppliers, Marketing Intermediaries, and Customers. On the other hand, for macro environment, there we have PESTLE which stands for Population and Demographics, Economics, Socio-Cultural, Technological, Legal and Political, and Environmental.

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