Question

Select a macro economic indicator and at least two micro, which may result in business opportunities in the coming days. Explain, two pages.

Answer 1

One of the macro indicator that would lead to a lot of opportunities in upcoming years would be lower interest rates. This macro opportunity would help various type of small firms to get the loans at very low interest of rate and then it can also help them to maximize overall rate of return, if their overall rate of return is greater than overall cost of capital, then it would help them to regain the growth and retain the market share.

This kind of economic environment which is led by fears due to Corona virus concern in which the central bank has cut their rates to a very large extent can help all such firms if they survive, to get the loan cheaper and make maximum of it.

Micro factors which can help them in upcoming years would be-

1. Digital technology-since there would be a change in the lifestyle due to this coronavirus concern, people will have to adopt to new ways of living, through digital economy and companies who will adopt the digitalization first, would gain most of the market share in their respective sectors so it would be highly important to be the leader in adaptation of various technologies into the business.

2. Health specific industries would be getting a lot of traction in coming years because there would be high health-consciousness among a lot of people because of this fear and it will prevail for a few more years, because there is no invention of any vaccine yet and there is no probability of invention of any vaccine soon so health companies would be in demand for producing different type of sanitization facilities as well as various types of tablets and vaccines that would help through covid-19 .