商務(wù)英語ch03 updated

1、整理課件整理課件41Chapter 3 Assessing Economic Conditions管理學(xué)院市場學(xué)系吳德亮42整理課件整理課件43Identify macroeconomic factors that affect business performance.Explain how market prices are determined.Explain how the government influences economic conditions.44整理課件整理課件45Reflect the level of production and consumption for a

2、 particular country, area, or industry Macroeconomic conditionsOverall economic state of a country Microeconomic conditionsFocus on conditions in a particular business or industry整理課件整理課件46Economic conditions can affect: Revenues of a business Expenses of a business Total value of a business整理課件整理課件

3、47Some firms are more sensitive to changes in economic conditions than others: Demand for fast food demand is not very sensitive to declining economic conditions. Demand for new automobiles is more sensitive to weak economic conditions than food products.整理課件整理課件48Demand for motorcycles is stronger

4、when: The economy is strong. Customers have more income to buy motorcycles.High demand for Harley Davidsons motorcycles: Generates greater revenue. Improves company performance.整理課件整理課件49Demand for motorcycles is weaker when: The economy is weak. Customers have less income to buy motorcycles.Lower d

5、emand for Harley Davidsons motorcycles: Generates less revenue. Weakens company performance.整理課件整理課件410Harley Davidson tries to predict demand so it will have a sufficient supply of motorcycles to meet future demand. Demand for motorcycles depends on economic conditions. Number of motorcycles produc

6、ed also depends on economic conditions.Government policies also affect economic conditions.整理課件整理課件411Harley Davidson must determine: How prevailing economic conditions will affect the demand for the motorcycles it produces. How prevailing government policies will affect the demand for its motorcycl

7、es.整理課件整理課件412The performance of most firms depends on three macroeconomic factors: Economic growthChanges in the general level of economic activity InflationIncreases in general level of prices over specific period of time Interest ratesChanges in the cost of borrowed money整理課件整理課件413When the chang

8、e in the general level of economic activity is higher than normal: Total income level of all U.S. workers is relatively high. There is a higher volume of spending on products and services. Firms that sell products and services should generate higher revenues.整理課件整理課件414Occurs when economic growth is

9、 negative for two consecutive quartersLowers demand for products and services Reduces the revenue of firms that sell products and services. Can cause firms to shut down factories in response to low economic growth.General MotorsFord整理課件整理課件415Gross Domestic Product (GDP) The level of total productio

10、n of products and services in the economy Total market value of all final products and services produced in the U.S.Aggregate Expenditures Total amount of expenditures整理課件整理課件416In the U.S., these indicators are closely related: High level of consumer spending reflects a large demand for products an

11、d services. Total production level depends on total demand for products and services.整理課件整理課件417Unemployment levelIndustrial production levelNew housing startsPersonal income level整理課件整理課件418Frictional unemployment People who are between jobs.Seasonal unemployment People whose services are not neede

12、d during some seasons.Cyclical unemployment People unemployed due to poor economic conditions. Best indicator of economic conditions.Structural unemployment People who do not have adequate skills.整理課件整理課件419An increase in the general level of prices of products and services over a specified period o

13、f time. Estimated by measuring percentage changes in the consumer price index (CPI). CPI is a market basket of prices on a wide variety of consumer products:Grocery products, housing, gasoline, medical services, electricity, etc.整理課件整理課件420Can affect a companys operating expenses Can increase cost o

14、f supplies and materials. Can impact indexed wages (labor cost). Higher inflation can cause large increases in operating expenses.Can affect a companys revenues Companies may charge higher prices to compensate for their higher expenses.整理課件整理課件421Occurs when firms must charge higher prices because t

15、heir production (input) costs are higher. Change in price of oil impacts gasoline prices and transportation costs. Change in aluminum prices impacts packaging cost of beer production. Change in pulp prices impacts the cost of paper towel production.整理課件整理課件422Occurs when product and services prices

16、are pulled up by consumer demand. Strong consumer demand can cause shortages in the production of products.Firms that anticipate shortages may increase prices for their products. Strong consumer demand may put pressure on wages and reduce unemployment.Firms may increase prices to recover higher oper

17、ating expenses.整理課件整理課件423Represent the cost of borrowing money Firms interest expense is based on market interest rates and can have significant impact on a firms profitability.Firms may postpone expansion and other projects when interest rates are too high. Interest rates also impact a firms reven

18、ueThe increased cost of financing new homes reduces demand for new homes.Revenues for construction firms and equipment manufacturers also decline.424e e- -businessbusiness整理課件整理課件425Market price of a product is influenced by: The total demand for that product by all customers Supply of that product

19、produced by firmsThe interaction between demand and supply determines the market price.整理課件整理課件426Demand schedule 需求曲線 Indicates the quantity of the product that would be demanded by customers at each possible price. Quantity demanded is higher when the price is lower._ Quantity Demanded（Qd: 有效需求） 4

20、27428整理課件整理課件429Supply schedule 供給曲線 Indicates the quantity of the product that would be supplied (produced) by manufacturers at each possible price. Quantity supplied (produced) is higher when the price is higher. Quantity supplied （Qs: 有效供給）整理課件整理課件430Interaction of demand and supply schedules det

21、ermines the market price Surplus（過剩）（過剩）: the quantity supplied by firms is more than the quantity demanded by customers. Shortage（短缺）（短缺）: the quantity supplied by firms is less than the quantity demanded by customers. Equilibrium price（均衡價(jià)格）（均衡價(jià)格）: occurs when quantities supplied and demanded are

22、equal.整理課件整理課件431Changing conditions can cause a demand schedule or supply schedule for a specific product to change. Changes the equilibrium price of a product.Increased product popularity (demand) results in a shortage of the product.The shortage is corrected when the price is increased to the lev

23、el at which the quantity supplied equals the quantity demanded.432433整理課件整理課件434Change in supply can impact the equilibrium price of the product. Technological improvements can lead to reduced production costs causing firms to produce a larger supply at any given price.The supply schedule changes an

24、d yields a surplus which can be sold only by lowering the price.The surplus is eliminated when the price decreases to a level at which the quantity supplied equals the quantity demanded.435436整理課件整理課件437Consumer income Determines the amount of products and services individuals can purchaseHigh level

25、s of economic growth result in more income for consumers.Increased demand causes demand schedule shifts and price increases. When consumer income declines:Demand decreases and creates a surplus as the demand schedule shifts and prices decrease.整理課件整理課件438Changes in consumer tastes and preferences: I

26、mpact the quantity of products and services demanded by consumersIncreased demand leads to price increase.Decreased demand leads to price decrease.整理課件整理課件439Change in production expenses A decrease in expenses can lead to increase in quantity supplied and create a surplus.Firms must lower prices in

27、 order to eliminate the surplus. An increase in expenses can lead to decrease in quantity supplied and create a shortage.Firms can increase prices until shortage is corrected.整理課件整理課件440，Monetary policy Made by the Federal Reserve System“Fed” is the central bank of the U.S. Decisions by Fed about th

28、e money supply:Impact interest rates.Impact firms interest expenses.Impact demand for products purchased with borrowed funds.整理課件整理課件441Maintains funds outside the banking system that are not loanable to firms or individualsUsed to buy Treasury securities held by individuals and companiesProvide ind

29、ividuals and firms with new funds for deposit in commercial banksDeposits increase the money supply and the supply of loanable funds.Should result in decreased interest rates and stimulate economic growth.整理課件整理課件442Fed can pull funds out of commercial banks and other financial institutions to reduc

30、e the money supply. Reduces the supply of funds available to lend to borrowers (shortage) causing:Interest rates to increase.Individuals and companies to borrow less.Spending levels to decrease.The level of inflation to decline.整理課件整理課件443How the federal government sets tax rates and spends money: P

31、ersonal income tax ratesReduced tax rates produce higher after-tax incomes that stimulate spending and increase demand for products and services. Corporate taxesImpacts after-tax earnings Excise taxesTaxes on particular products that increase prices consumers pay for these products.整理課件整理課件444Sets t

32、he amounts of federal tax revenue government and federal spending Federal budget deficitOccurs when federal spending exceeds federal taxes and other revenue collected by the federal government.Government borrowing to make up the difference creates higher demand for loanable funds and can drive up in

33、terest rates.445446整理課件整理課件447A restrictive monetary or fiscal policy can be used to: Maintain low rate of economic growthPrevent inflationary pressure caused by excessive demandCan also create unemployment Also requires a trade-off整理課件整理課件448Firm performance depends on three macroeconomic factors: economic growth, inflation, and interest rates.Demand and supply conditions determine market prices.Federal government uses monetary and fiscal policies to influence macroeconomic conditions.整理課件整理課件4491，Macroeconomic environmentDemographic environment -the size and growth r