Macro Factors That Affect Business

Name: Macro Factors That Affect Business
Author: Dr. Michael Aubry

This course explores the macro-economic factors that affect businesses. It discusses macro-environments, or larger factors or societal forces that can impact a…

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(upbeat music) There're several economic factors that can affect a business. In these lessons, we will explore some of the macro-environments that you may encounter. Macro-environments are larger factors or societal forces that affect a company. These include demographic, economic, political, ecological, socio-cultural, and technological forces. An important aspect of economics is employment. Without a labor force, jobs, consumption, and demand for goods and services would diminish. In the United States, the Bureau of Labor Statistics counts an individual as being employed if they're 16 and over, and have worked one hour as a paid employee, 15 hours as an unpaid employee, such as in a family business, or not working because of vacation, illness, bad weather, childcare problems, maternity or paternity leave, labor disputes or job training. An individual in the United States is not counted in the labor force if they are in the armed forces, incarcerated, or in a mental institution. (air whooshing) The employment situation has been changing throughout the world. One of the biggest worries for those entering the workforce in the future is whether jobs will be available as changes in globalization, technology, and the COVID-19 pandemic have reduced the labor that is needed. (air whooshing) Since the 1940s the American economy has seen significant improvements in productivity while income inequality has worsened. Looking towards the future this will have a dramatic impact on businesses throughout the world. It is estimated that 47% of jobs could be automated in the next two decades. According to researchers at Oxford University, structural unemployment, meaning that employers can't find employees who match their needs will continue to grow with the rapid advances in technology. It is likely that most office jobs will cease to exist as new technologies and robots will fulfill the role of human beings. (air whooshing) An example of this is Pepper. The humanoid robot manufactured by SoftBank Robotics. Pepper can answer phones, give directions, dance, play or even interact in a different language. Pepper can also mimic human emotions and can adapt behavior that is situation specific. (air whooshing) Automation will also have an impact on the field of medicine. IBM has developed artificial intelligence, AI that can be used for a multitude of functions with immediate access to journal articles, books, and electronically tabulated data. Watson the AI, will be able to directly assist doctors in medical decision-making. The next components driving changes in the employment market are outsourcing and reshoring. Outsourcing has come under considerable fire in the United States. (air whooshing) Many jobs have been outsourced to China, India, Thailand, Vietnam, Indonesia, Mexico, and the Philippines. Many of these jobs have been driven to these countries because of oversight on environmental regulations, reduced wages, and diminished labor laws. (air whooshing) Many companies have explored the possibility of reshoring some of their operations to see if they can produce their products in the United States at a comparable cost. Because of the impact on the bottom line companies who had difficulties outsourcing customer service to India and the Philippines have already moved many of these positions back to the United States. Consumer spending is 70% of the U.S. economy. The emergence of outsourcing has allowed Indian and Chinese economies to flourish. It will remain to be seen if countries around the world can maintain strong growth and employment as the labor market changes.

Advanced Provider : Dr. Michael Aubry 6 Lessons · 23m in Arabic, German, English, Spanish, French, Portuguese, Chinese

Course Description

This course explores the macro-economic factors that affect businesses. It discusses macro-environments, or larger factors or societal forces that can impact a company, including interest rates and inflation, monetary policy, and economic growth. It also explores the financial system and how it works, particularly in the light of the Great Recession of 2007. After completing this module, you will be able to apply its lessons to make better business decisions.

What You'll Learn

Identify macro-environments and the larger societal forces that can impact a company
Understand monetary policy and how it affects businesses
Explore the financial system and how it works
Examine interest rates, inflation, and economic growth as macro-economic factors
Analyze the Great Recession of 2007 and the lessons learned from it
Apply these lessons to make better business decisions

Key Takeaways

Macro-environments are the larger factors or societal forces that can impact a company, including interest rates, inflation, monetary policy, and economic growth.
The course examines how the financial system works, particularly in light of the Great Recession of 2007.
Understanding macro-economic factors such as monetary policy and economic growth supports better business decision-making.
The course covers employment as one of the macro-economic factors affecting businesses.
Lessons from the Great Recession of 2007 are used to illustrate how the financial system functions.

Frequently Asked Questions

What does this course cover?

This course explores the macro-economic factors that affect businesses, including macro-environments, interest rates and inflation, monetary policy, and economic growth, as well as how the financial system works in light of the Great Recession of 2007.

What will I be able to do after completing this course?

After completing this module, you will be able to apply its lessons to make better business decisions.

What topics are included in the lessons?

The lessons cover Employment, Interest Rates and Inflation, Monetary Policy, Economic Growth, The Financial System, and The Great Recession and Lessons Learned.

What are the learning objectives of this course?

The learning objectives are to identify macro-environments, understand monetary policy, and learn about the financial system.