商學導論PPT課件

1、,Introduction to Business Jeff Madura,3,Assessing Economic Conditions,Part I Business Environment,42,Learning Goals,Explain how economic growth affects business performance. Explain how inflation affects business performance. Explain how interest rates affect business performance. Explain how market

2、 prices are determined. Explain how the government influences economic conditions.,43,Key Terms,aggregate expenditure 總支出 cost-push inflation 成本推進式通貨膨脹 cyclical unemployment 周期性失業(yè) demand schedule 需求表 demand-pull inflation需求拉動式通貨膨脹 economic growth 經(jīng)濟增長 equilibrium price平衡價格 excise taxes 消費稅,44,Key Te

3、rms,federal budget deficit 聯(lián)邦預算赤字 federal reserve system 聯(lián)邦儲備系統(tǒng) fiscal policy 財政政策 frictional unemployment 摩擦性失業(yè) gross domestic product (GDP) 國內(nèi)生產(chǎn)總值 inflation 通貨膨脹 monetary policy 貨幣政策 money supply 貨幣供應量,45,Key Terms,recession (經(jīng)濟)衰退 seasonal unemployment 季節(jié)性失業(yè) shortage 短缺 structural unemployment 結(jié)構(gòu)

4、性失業(yè) supply schedule 供給表 surplus 過剩,46,Economic Conditions,Macroeconomic conditions Overall economic state of a country Microeconomic conditions Focus on conditions in a particular business or industry,47,Macroeconomic Effects,The performance of most firms depends on three macroeconomic factors: Econ

5、omic growth (employment rate) Inflation Interest rates,48,Strong Economic Growth,general level of economic activity is higher than normal: Total income level is relatively high. higher volume of spending higher revenues,49,How the Impact of a Strong Economy Spreads,410,Weak Economic Growth,Weak econ

6、omic growth results in: low demand for products and services lower revenues Recession: Occurs when economic growth is negative for two consecutive quarters,411,How the Impact of a Weak Economy Spreads,412,Indicators of Economic Growth,Gross Domestic Product (GDP) - the total market value of all fina

7、l products and services produced in a country. - Economic growth is interpreted as the percentage of change in the GDP Aggregate Expenditures - total amount of expenditures in the economy,413,Trend of Gross Domestic Product (GDP),Exhibit 3.1,414,Indicators of Economic Growth,An alternative indicator

8、 is unemployment level. Frictional Unemployment people who are between jobs Seasonal Unemployment people whose jobs are not needed during some seasons （For example, most road construction projects take place in the summer. Can also occur in tourist industries and resort towns; the hotels and other t

9、ourist-related services may lay off employees during the off season. ） Cyclical Unemployment people who are unemployed because of poor economic conditions (best indicator) Structural Unemployment people who are unemployed because they dont have adequate skills,415,Trend of U.S. Unemployment,416,Vari

10、ation in the Sensitivity to Economic Growth,Which are more sensitive?,McDonalds Food,Starbucks Coffee,New Cars,417,Inflation,An increase in the general level of prices of products and services over a specified period of time. Estimated by the consumer price index (CPI). CPI is a market basket of pri

11、ces,418,U.S. Inflation Rates over Time,Exhibit 4.3,419,Impact of Inflation,Can affect a companys operating expenses. Can affect a companys revenues,420,Types of Inflation,Cost-Push Inflation - the situations when higher prices charged by firms are caused by higher costs - consumers pay higher prices

12、 for products they are forced to reduce spending on other products demand for those products declines,421,100塊錢能買什么？ 豬肉雞蛋價格上漲 省錢攻略 CPI增幅減緩 ,422,Types of Inflation,Demand-Pull Inflation - the situations when prices of products and services are pulled up because of strong consumer demand - strong cons

13、umer demand production shortages higher prices,423,strong economic growth fewer unemployed people workers negotiate for higher wages production costs rise higher prices to recover higher expenses,424,Variation in the Sensitivity to Inflation,Which firms are more sensitive to the changes in oil price

14、s?,?,Delivery Service Firm,Dental Office,Travel Agency,Real Estate Agency,425,Impact of Interest Rates,Impact on a Firms Expenses - Interest rates determine cost of borrowing money. - Interest rates influence a firms profit. (Exhibit 3.3) Firms may postpone expansion if interest rates are high. Impa

15、ct on a Firms Revenue - High interest rates lead to reduced demand for products purchased with credit, with results in lower sales.,426,2012年6月首次降息 7月二次降息 ,427,428,Which are more sensitive?,Variation in Sensitivity to Interest Rates,Travel Agencies,Construction Firms,Car Manufacturers,429,Market Pri

16、ce Determination,Market price of a product is influenced by: The total demand for that product by all customers Supply of that product produced by firms The interaction between demand and supply determines the market price The “Invisible Hand” Adam Smith,430,How the Equilibrium Price is Determined b

17、y Supply and Demand,A demand schedule indicates the quantity of a product demanded at each possible price . A supply schedule indicates the quantity of a product supplied (produced) at each possible price. Equilibrium price -is the price at which the quantity supplied equals the quantity demanded; -

18、is the price at which firms attempt to sell products.,431,How the Equilibrium Price is Determined by Supply and Demand,Exhibit 3.4,432,Interaction of Demand and Supply,At any price above the equilibrium price, firms are unable to sell all the products, resulting in a surplus. Prices should be reduce

19、d to eliminate the surplus. At any price below the equilibrium price, the firms will not produce a sufficient quantity to satisfy all the demand, resulting in a shortage. Prices can be raised to correct the shortage.,433,Effect of a Change in Demand Schedule,Assuming the supply schedule remains unch

20、anged, if demand curve shifts outward, the equilibrium price will rise. Simple Logic: demand increases shortage firms can sell at a higher price the equilibrium price rises,434,Effect of a Change in Demand Schedule,Assuming the supply schedule remains unchanged, if demand curve shifts outward, the e

21、quilibrium price will rise. Simple Logic: demand increases shortage firms can sell at a higher price the equilibrium price rises,435,Effect of a Change in Supply Schedule,Assuming the demand schedule remains unchanged, if supply curve shifts outward, the equilibrium price will fall. Simple Logic: su

22、pply increases surplus firms should lower the price the equilibrium price falls,436,Factors Influencing Market Prices,Consumer Income higher consumer income demand curve shifts out higher prices Consumer Preferences a product becomes less popular demand declines lower prices Production Expenses lowe

23、r production expenses higher supply surplus lower prices,437,Government Influence on Economic Conditions,438,Monetary Policy Impacts Economic Conditions,Monetary policy Made by the Federal Reserve System “Fed” is the central bank of the U.S. (Greenspan) Decisions by Fed about the money supply: Impac

24、t interest rates (expense and product demand),439,Feds Impact on Interest Rates,How the Feds Reduces Interest Rates Assuming that demand for loanable funds remains unchanged, increased money supply will decrease interest rates and stimulate economic growth. How the Feds Increases Interest Rates Assu

25、ming that demand for loanable funds remains unchanged, decreased money supply will increase interest rates and discourage consumers and firms from borrowing. Reduced spending leads to lower profit for firms.,440,Fiscal Policy,How the federal government sets tax rates and spends money: Personal income tax rates Corporate taxes Excise taxes,441,Fiscal Policy,Revision of Personal Income Tax Rates lower personal income taxes higher after-tax incomes higher aggregate demand Revision of Corporate Taxes lower corporate taxes higher after-tax earnings Revisio