Macroeconomic factors are events or situations that affect the economy on a broader level, influencing the economic outcome of large groups of people on a national or regional level. Some macroeconomic factors include unemployment, savings, inflation and investments.
Macroeconomics is important because it allows the public to understand the economy as a whole, facilitating decisions relating to firms, fiscal policy and global economic policy. Macroeconomics gives academics, policy makers and other interested individuals a view into the relationship between facto
The study of macroeconomics helps create an overall idea of the state of a nation's economy. As the world is shifting toward a global economy, this could be very beneficial in devising ways for stabilizing troubled economies.
Macroeconomic variables, or MVs, are indicators of the overall state of a country's economy. In the United States, they include the Consumer Price Index, average prime rate, Dow Jones Average and inflation rate. The government studies MVs and attempts to keep them at certain levels in order for the
Using GDP in macroeconomics gives the advantage of easy calculation, because most GDP calculations use the same methodology and it correlates with development measures such as literacy levels. Disadvantages of using GDP include that it excludes the underground economy and ignores the value of househ
Many political factors have an influence on the business community, ranging from the philosophy of the governing party to political responses to economic trends. When government leaders and agencies set policies, they start trends that often have a powerful influence on the legal structure within wh
According to the Houston Chronicle, the biggest internal factors that affect a business are organizational structure and communication within the organization. These factors lead to motivated employees who feel they have defined roles in the organization and contribute to its overall success.
According to Investopedia, microeconomics is the study of decisions made by people and businesses regarding the allocation of resources and prices of goods and services, while macroeconomics is the study of the behavior of the economy as a whole. Microeconomics focuses on individual companies, and m
Politics can affect businesses both negatively and positively through changes made to tax, labor and national security laws, notes David Ingram of the Houston Chronicle. For example, politicians can raise taxes directly on businesses or on individuals, which ends up costing companies in the long run
Internal factors are those issues that affect the business's performance either negatively or positively and originate from within the business. These factors may increase profitability or cause loss depending on how they are handled.