Question

For the publicly traded U.S. company Apple (AAPL), explain how macroeconomic principles, theories, policies, and tools affected strategy development within the organization. o In other words, what macroeconomic principles, theories, policies, and tools do you see at work within the company, driving the economic decisions and strategy development?

Answer 1

Macroeconomis comprises of aggregate indications such as GDP,unemployment rates,national income ,price indices.Macroeconomics develops models which shows relationship between factors such as national income,output ,consumption,unemployment ,inflation etc .The main macroeconomic policy are 1)Fiscal policy 2) monetary policy .

Fiscal policy is the use of government revenue and expenditure as an instrument effect the economy with tax and public debt.If the economy is at recession that is producing less than potential output than government can increase its spending to increase its output hence it will boost up the consumption and increase demand of products of Apple .If the income is declining the tax rate is lower so as to increase the real income of consumer.2) Monetary policies : Central bank controls the money supply .Central banks take action by issuing money to buy bonds which boost money supply and reduce interest rate on the other hand higher interest rate will make cost of raw material high and affect the pricing policy