Economics is about supply and demand, trade, production, consumption of goods and service.
Microeconomics deals with individuals, companies or industries. For instance, it talks about costs, revenue, pricing, supply and demand. How the company use the market structure and right price to meet demand at an equilibrium point to make profit.
Macroeconomics is to understand the whole economy functions such as GDP, unemployment rate, investment of the nations. Keynes thought that government intervention can help economic growth and reach full employment. Monetarists believe that free market economics are best in the long run even the unemployment rate is high.
Balance of payments is the nations keep on track with their international transactions. And it shows the changes of foreign exchange for a period of time. To predict world currencies and see which country's currency is worth than another. There are four factors: paying goods and services--trading demands for currency, higher interest rates for investors to purchase of bonds, political situation, and economic reasons.
Country analysis can predict a country's future. There are some steps to follow such as a country's trade and low unemployment rate, increase GNP, steady interest rate and consumption, birth rate and population growth, country's productivity, policies of monetary, and leader's vision.
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