Question

Macroeconomics & microeconomics: What are the strengths, weaknesses, opportunities and threats

Answer 1

Macroeconomics:

Strength:

a. Helps to understand the performance of the country in terms of economic growth, employment, inflation, exports, imports, investments etc
b. The exchange rate or valuation of currency depends on the economic growth of nation

Weakness: Would not provide information on increase in wellbeing of individual or by firm

Opportunity: Helps to initiate actions on fiscal and monetary policies so that the economic growth and inflation can be controlled

Threats: If transactions are not accounted properly it would lead to misinterpretation of economic situation of the nation

Microeconomics:

Strength:

a. Helps to understand the performance of the firm or individual in terms of growth, salary etc
b. Help to increase market capitalization, brand reputation
c. Helps to focus on increasing sales, profit per unit and other operational issues

Weakness: Would not provide information on overall wellbeing of nation

Opportunity: Helps to concentrate on market development, scope of new avenues, development of new product etc

Threats: Mismanagement of firms or lack of proper knowledge on cost concepts like fixed cost, variable cost would to lead to loses