Premium Essay

Global Managerial Economics

In: Business and Management

Submitted By olemwaki
Words 4398
Pages 18
Name
Professor
Subject
Date
Global Managerial Economics
The small and medium-sized enterprises (SMEs) form a crucial part of the U.S. economy. The SMEs create the most jobs in the country; they target the ordinary Americans for employment thus making them a very important component of the economy. Without the SMEs, the economy will bleed millions of jobs, adversely affecting the economy. This is the reasoning behind the drive by President Obama to give this sector newly acquired impetus and promote it to create more jobs for Americans and grow the economy. The target of the National Export Initiative (NEI) is to boost the export capacity of the SMEs in the U.S. by supporting them; the administration reasons that this will result in the creation of two million jobs. The intention is good, but the challenge lie in the operationalization of the policy and ensuring it works in the actual market (Audretsch, 100). The international market and the export market is often dominated by the big corporations with many resources to invest; this makes them strong and gives them the ability to compete with the big corporations that are players in the international market. The SMEs form the U.S. lack, the resources, know how, and the experience to compete with the established world trade players form the Europe Union, China, and India. This is where the Export Promotion Cabinet steps in to help the U.S. SMEs succeed in the competitive export market (Audretsch, 101).
The cabinet should take action to remove both foreign and domestic barriers that curtail the SMEs players in the country to participate in the export market. Such barriers give the larger corporations the edge in the market and make it difficult for the SMEs to compete on a level playing field. Some of these barriers include (Mauro and Shah, 23):
Domestic Barriers SMEs have difficulties accessing both trade…...

Similar Documents

Premium Essay

Managerial Economics

....what is meant by managerial economics? Managerial economics is a study of application of managerial skills in economics,more over it help to find problems or obstacles in the business and provide solution for those problems.problems may be relating to costs, prices, forecasting the future market ,human resource management, profits etc. Managerial economics is a study of application of managerial skills in economics, more over it help to find problems or obstacles in the business and provide solution for those problems. Managerial economics (also called business economics), is a branch of economics that applies microeconomic analysis to specific business decisions. As such, it bridges economic theory and economics in practice. it's fields and it's Components? Fields are: Risk analysis, production analysis , price analysis and capital budgeted Components: Consumers * Microeconomics studies the actions of two major components: individual consumers and businesses. As a part of the economy, consumers sell their labor to business firms, in exchange for which they receive wages. Consumers then spend their earnings on goods and services they purchase from businesses, and pay taxes to the government for the services governments provide. Consumer spending is an important component of the economy, because consumers' activity represents such a large part of a nation's gross domestic product (GDP), the sum total of national economic activity. In the U.S., consumer spending......

Words: 499 - Pages: 2

Premium Essay

Managerial Economics

...Managerial Economics MBA First Year Paper No. 2 School of Distance Education Bharathiar University, Coimbatore - 641 046 Author: Atmanand Copyright © 2007, Bharathiar University All Rights Reserved Produced and Printed by EXCEL BOOKS PRIVATE LIMITED A-45, Naraina, Phase-I, New Delhi-110028 for SCHOOL OF DISTANCE EDUCATION Bharathiar University Coimbatore-641046 CONTENTS Page No. UNIT-I ......

Words: 36898 - Pages: 148

Premium Essay

Managerial Economic

...Concepts of Managerial Economics Learning Outcome After going through this unit, you will be able to: • • • • Explain succinctly the meaning and definition of managerial economics Elucidate on the characteristics and scope of managerial economics Describe the techniques of managerial economics Explain the application of managerial economics in various aspects of decision making • Explicate the application of managerial economics in marginal analysis and optimisation Time Required to Complete the unit 1. 2. 1st Reading: It will need 3 Hrs for reading a unit 2nd Reading with understanding: It will need 4 Hrs for reading and understanding a unit 3. 4. 5. Self Assessment: It will need 3 Hrs for reading and understanding a unit Assignment: It will need 2 Hrs for completing an assignment Revision and Further Reading: It is a continuous process Content Map 1.1 1.2 Introduction Concept of Managerial Economics 1.2.1 Meaning of Managerial Economics 1.2.2 Definitions of Managerial Economics Managerial Economics 1 1.2.3 Characteristics of Managerial Economics 1.2.4 Scope of Managerial Economics 1.2.5 Why Managers Need to Know Economics? 1.3 1.4 Techniques of Managerial Economics Managerial Economics - Its application in Marginal Analysis and Optimisation 1.4.1 1.4.2 1.5 1.6 1.7 Application of Managerial Economics Tools of Decision Science and Managerial Economics Summary Self Assessment Test Further Reading 2 Managerial Economics 1.1......

Words: 35678 - Pages: 143

Premium Essay

Managerial Economics

...intentionally left blank MANAGERIAL ECONOMICS S E V E N T H E D I T I O N To Our Families W. F. S S. G. M MANAGERIAL ECONOMICS S E V E N T H E D I T I O N W i l l i a m F. S a m u e l s o n Boston University Stephen G. Marks Boston University JOHN WILEY & SONS, INC. VICE PRESIDENT & EXECUTIVE PUBLISHER SENIOR CONTENT EDITOR ASSISTANT EDITOR EDITORIAL ASSISTANT PRODUCT DESIGNER PRODUCTION MANAGER PRODUCTION EDITOR ASSOCIATE DIRECTOR OF MARKETING SENIOR MARKETING MANAGER MARKETING ASSISTANT CREATIVE DIRECTOR SENIOR DESIGNER PRODUCTION MANAGEMENT SERVICES SENIOR ILLUSTRATION EDITOR PHOTO EDITOR COVER PHOTO George Hoffman Jennifer Manias Emily McGee Erica Horowitz Greg Chaput Dorothy Sinclair Erin Bascom Amy Scholz Jesse Cruz Courtney Luzzi Harry Nolan James O’Shea Furino Production Anna Melhorn Sheena Goldstein Henry Georgi/Getty Images, Inc. This book was set in New Baskerville by MPS Limited, and printed and bound by RRD Jefferson City. The cover was printed by RRD Jefferson City. This book is printed on acid-free paper. Founded in 1807, John Wiley & Sons, Inc. has been a valued source of knowledge and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations. Our company is built on a foundation of principles that include responsibility to the communities we serve and where we live and work. In 2008, we launched a Corporate Citizenship Initiative, a global effort to address the......

Words: 329787 - Pages: 1320

Premium Essay

Global Managerial Economics

...Global Managerial Economics By: Starlette Freitas ECON310-1302A-02 May 06, 2013 International Economics and Concepts Governments measure the three most commonly-used concepts based on aggregate markets: the unemployment rate, the rate of inflation, and Gross Domestic Product. These rates and measurements are used to determine the health of an economy. Depending on its rates, it will show the strengths and weaknesses in its economic status of growth or downfall. When the unemployment rate is high, that shows symptoms of malfunctioning in the economic system. This rate is incurred through a random amount of surveys in households and those answers of those surveys each month is how the unemployment rate is determined. This rate is found by dividing the total number unemployed by the labor force. If this rate is so, more than likely there is a lot of financial distress as well, which affects the abilities to make loans, pay debts, and the overall cycle of money that flows within an economy; the ability to purchase goods and services, or even invest and meet aggregate supply and demand. (Editorial Board) If the unemployment rate is high, then businesses are not doing well, and if businesses are not doing well, most likely investments are not doing too great either. The chart below represents what the statistical rates would look like as to what happens when the unemployment rate goes up, how inflation is affected as well as GDP. As it clearly demonstrates, the......

Words: 2456 - Pages: 10

Premium Essay

Managerial Economics

...Macro & Micro Economics By: Managerial Economics Tutor: Ellie Semsar Institution: 13th August 2013 Introduction Early trades were controlled by agricultural products because there was a high difficulty in investing on other trades, therefore market trade was highly vulnerable to price fluctuation and could face a lot of manipulation (Bain 2013). During these times the cost of production was high compared to the market price, this really undermined industrial production. However, during the late 90’s and early 21st century, there was an increase in commodity prices. Other trade development that has since changed is the increase in exchange of commodities, due to this, demand and supply is no longer the only factors that determine the variation of price, the other factors have encroached in, for example the interest rates, exchange rates and global liquidity trends (Bain 2013). Mobile industry is one of the latest profitable investments that have come along with the trend in technology, many countries obtain their revenue through this trade many other advantages due to mobile technology are the rise of many companies that have now come into being and employment has also gone up. Many industries produce different versions of telephone devices all of which are introduced to the market and can clearly be seen that the prices are not the same. Mobile phone markets are one of the robust markets now days as a result of product competition and the good thing is......

Words: 2368 - Pages: 10

Premium Essay

Managerial Economics

... MANAGERIAL ECONOMICS SYNOPSIS DR. S. BISALIAH* * Support for computerising the material by Mrs. R. Kalavathi as well as of Dr. N. S. Viswanath in providing the basic framework for developing this material is hereby acknowledged. Module 1 1. INTRODUCTION: 1. Economics: Science of Scarcity, Choice and Efficiency. • Scarcity of resources ( Choice. • Scarcity of resources ( Efficiency. Question: How to organize the system which promotes the most efficient use of resources? 2. Economics combines the rigour of science and poetry of humanities: Elaborate. 3. Three Fundamental Choice Problems of Economic Systems: • What commodities shall be produced and in what quantities? • How shall these commodities be produced? • For whom shall these commodities be produced? 4. Micro and Macro Economics: • Micro Economics: Concerned with the behaviour of individual economic units and their interactions – consumers and producers/business firms. ← Major type of interactions in the market: Between Buyers and Sellers: ← Three major components of Microeconomics: ← Product pricing ← Input (Factor) pricing ← Welfare economics ← Major uses of Microeconomics: ← Provides basic tools of economic analysis for application in special areas like Managerial Economics, Industrial Economics......

Words: 13634 - Pages: 55

Premium Essay

Managerial Economics

...KAZIAN GLOBAL SCHOOL OF BUSINESS MANAGEMENT MARKS: 80 COURSE: DBM SUBJECT: Managerial Economics N.B: 1} Attempt all the questions Name: Collan Shasmin Cotty Reference Number: KP00110-20830 ____________________________________________________________________________ Case 1: Where is the Fair Play? (Marks-16) In most countries in Europe, and primarily America, they don’t prefer the leg meat – it is waste matter for them so they look for nations where they can dump this meat. They did in the Philippines, Sri Lanka and Russia. They might deny it in the US but everybody knows that they are sitting on stocks for at least 2-3 years. They have succeeded in doing that because of their good freezing techniques. Now it’s becoming a major problem for them. They’re not used to eating leg meat and are in a fix. In the US they actually load the price of the entire chicken on the breast meat, and the rest of the bird is like a carcass to them. Due to environmental reasons they can’t dump it in the sea so they have to dump it somewhere. It can be any underdeveloped country, may be India! It’s wrong notion that supply of this meat to underdeveloped countries will be good for the consumers there. It is not. Can the Americans guarantee anything – how long will they be able to supply the chicken? How long will they supply subsidized eggs to such a large country? We could end up destroying our industry base and that will be very sad. As far as chicken is concerned, they can only supply the......

Words: 3747 - Pages: 15

Premium Essay

Managerial Economics

...NATIONAL OPEN UNIVERSITY OF NIGERIA COURSE CODE : BHM 303 COURSE TITLE: MANAGERIAL ECONOMICS 1 MANAGERIAL ECONOMICS (THE COURSE GUIDE) THE NEED Managerial Economics as a course required for effective resource management was put in place due to the following developments in the global business environment: (a) Growing complexity of business decision-making processes. (b) Increasing need for the use of economic logic, concept, theories, and tools of economic analysis in the process of decision-making. (c) Rapid increases in the demand for professionally trained managerial manpower. These developments have made it necessary that every manager aspiring for good leadership and achievement of organizational objectives be equipped with relevant economic principles and applications. Unfortunately, a gap has been observed in this respect among today’s managers. It is therefore the aim of this course to bridge such gap. THE COURSE OBJECTIVES On completion of the requirements of this course, students and managers alike will be expected to: 1. Understand the relative importance of Managerial Economics; 2. Know how the application of the principles of managerial economics can aid in the achievement of business objectives; 3. Understand the modern managerial decision rules and optimization techniques; 4. Be equipped with tools necessary in the analysis of consumer behaviours, as well as in forecasting product demand; 5. Be equipped with the tools for analyzing production and......

Words: 40300 - Pages: 162

Free Essay

Phase 1 Ip Global Managerial Economics

...Phase 1 Individual Project Global Managerial Economics Professor Art Vaughn Colorado Technical University Online 25 August 2014 The World Bank and the International Monetary Fund were brought into existence at a formal meeting in Bretton Woods, New Hampshire in 1944. The World Bank and the IMF is a group of companies that can assist countries with the means of advancement in the form of a loan, guidance and exploration into a better, more successful economy after World War II this was a big help with capital. Supply and Demand drives the cost of goods lower as countries make more products thus the regional businesses lose money, assuring a supply of cheaper products to overseas markets. Expanding internationally may also drive other companies out of business. Gross Domestic Product (GDP) means the monetary value of all finished goods and services created inside the country's confines in a given time period even though GDP is almost always determined once a year. This is the government spending, exports minus imports transpire inside a distinct area and investments, utilization both public and private. Net exports that can be either negative or positive will change the Gross Domestic Product, by showing an increase in GDP if net exports are positive and shows a decrease in the GDP net exports are negative. The higher the Gross Domestic Product the better. A business owner knows that the Gross Domestic Product is going the biggest part of the......

Words: 1306 - Pages: 6

Premium Essay

Econ310-1404b-06 Global Managerial Economics

...ECON310-1404B-06: Global Managerial Economics Phase: 1 Individual Project The World Bank and International Monetary Fund The World Bank is one of the world’s largest sources of funding and knowledge to support governments of member countries in their efforts to invest in schools and health centers, provide water and electricity, fight disease and protect the environment. This support is provided through project or policy-based loans and grants as well as technical assistance such as advice and studies (www.worldbank.org, n.d.). The International Monetary Fund works to foster global growth and economic stability. It provides policy advice and financing to members in economic difficulties and also works with developing nations to help them achieve macroeconomic stability and reduce poverty (www.Imf.org,n.d.). The goal of both organizations is to increase the standard of living and the reductions of poverty globally. Imports and exports International finance defines the term in the expression (Exports – Imports) equals net exports, which may be either positive or negative. If net exports are positive, the nation's G.D.P. increases, if they are negative, the G.D.P. will decrease. Exportation of goods to your own country, and abroad are essential for a robust bullish economic gain or an added source of income to a company’s short and long term objectives. Multinational corporations According to......

Words: 1297 - Pages: 6

Premium Essay

Managerial Economics

...Assignment no: 509 Answer Managerial economics refers to the application of economic theory and the tools of analysis of decision science to examine how an organization can achieve it aims or objectives most efficiently. Importance of managerial economics Managerial Decision Problems Economic theory Microeconomics Macroeconomics Decision Sciences Mathematical Economics Econometrics MANAGERIAL ECONOMICS Application of economic theory and decision science tools to solve managerial decision problems OPTIMAL SOLUTIONS TO MANAGERIAL DECISION PROBLEMS Managerial Decision Problems Economic theory Microeconomics Macroeconomics Decision Sciences Mathematical Economics Econometrics MANAGERIAL ECONOMICS Application of economic theory and decision science tools to solve managerial decision problems OPTIMAL SOLUTIONS TO MANAGERIAL DECISION PROBLEMS Managerial enables the use of economic logic and principles to aid management decision-making. Managers are decision-makers and economics should be relevant to give practical guidance in arriving at right decisions. Every manager has to take important decisions about using his limited resources like land, capital, labour, finance etc. to get the maximum returns, therefore, managerial economics, concentrates on those practical aspects of micro-economics which help in decision-making. Managerial economics focuses on the most profitable use of scarce resources rather than on the achievement of equilibrium......

Words: 3719 - Pages: 15

Premium Essay

Managerial Economics & Global

...rightward shift of demand. However, a decrease in consumer income can cause a leftward shift of the demand curve but an increase in price of a complementary product could cause the identical leftward shift of demand curve. Price elasticity varies according to where the product is in its life cycle (Berman, 2013). When new products are launched, there are often very few competitors and price of demand is inelastic (Berman, 2013). References Berman, Craig. (2014). Price elasticity of demand (PED) Retrieved from http://www.economicsonline.co.uk/Competitive_markets/Price_elasticity_of _demand.html Tucker, Irvin (2008) Survey of Economics Cengage Learning, Edition 6 Published 2008 Hirschey, Mark (2008) Fundamentals of Managerial Economics Cengage Learning Published 2008...

Words: 957 - Pages: 4

Premium Essay

Managerial Economics

...MANAGERIAL ECONOMICS ASSIGNMENT 1A & 1B RUCHIKA SHINGNE 201600225 SEC C 1a. Scope of Economic Analysis Introduction Economics is the science of making decisions in the presence of scarce resources. Economics is the study of the production and consumption of goods and the transfer of wealth to produce and obtain those goods. Economics explains how people interact within markets to get what they want or accomplish certain goals. There are mainly two key ideas in economics; that goods are scares and society must use its resources efficiently. Managerial economics is the study of how to direct scares resources in the way that most efficiently achieves a managerial goal. Managerial economics is the application of microeconomic theory and methodology to decisionmaking problems faced by private, public and non-profit institutions. It assists decision-makers i.e. managers in efficiently allocating scarce resources, planning corporate strategy, and executing effective tactics. Managerial economics to a certain degree is prescriptive in nature as it suggests course of action to a managerial problem. Problems can be related to various departments in a firm like production, accounts, sales, etc. Managerial economics or economics is categorized in two types; microeconomics and macroeconomics. Microeconomics is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of limited......

Words: 2163 - Pages: 9

Premium Essay

Managerial Economics

...[pic] MZUMBE UNIVERSITY DAR ES SALAAM BUSINESS SCHOOL COURSE TITLE: MBA CM SUBJECT CODE: ECO 5011 SUBJECT NAME: MANAGERIAL ECONOMICS NAME: MICHAEL KISAKA TASK: TERM PAPER REGISTRATION No. MBA/CM/DCC/412/T.11 SMEs IN TANZANIA, THEIR IMPORTANCE AND CHALLENGES TOWARDS NATIONAL ECONOMIC GROWTH. Lecturer: Dr. G. Kinyondo December, 2011 | | |TABLE OF CONTENTS |PAGE NO. | | | | |Acknowledgement |1 | | | | |Abstract |2 | | | | |Structure of the Report ...

Words: 4465 - Pages: 18