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Managing Global Expansion Essay

1984 words - 8 pages

This paper examines some of the economic and legal factors that can affect a company as it transitions from a private to a publically owned company. This paper, consisting of four sections; describes, discusses, and analyzes the major concerns that the owners of XYZ Construction, Incorporated have on expansion and economics. Section one covers the macroeconomic factors that influence the operations of the company. Section two focuses on the microeconomic factors that XYZ Construction, Inc. should consider in the domestic and global markets. Section three dissects the legal considerations that are relative to equipment leases and electronic contracts. Finally, section four will examine the employment and labor considerations that XYZ Construction, Inc. must consider as the company grows both domestically and internationally.
Section One - Operational Macroeconomic Factors
Economics is a multifaceted topic, which is integrated into businesses in different ways, while this is a large topic it can be dissected into two categories macroeconomics and microeconomics (Executive, 2011). Executive (2011) defines macroeconomics as the study of the overall economy which covers topics such as inflation, employment rates, and economic expansion. Macroeconomics examines multiple factors, which can affect multiple markets simultaneously (Executive, 2011). For example, the business cycle is a dynamic topic that can affect multiple economies thus making it a huge macroeconomic topic of concern. Executive (2011) defines the business cycle as period of expansions and recessions in which the United States has experienced since the nineteenth century. An expansion period is defined as a time when the production and employment totals are growing, year-over-year (Executive, 2011). Conversely, a recession period is defined as a time when the production and employment totals are decreasing (Executive, 2011).
When studying macroeconomics it is important to understand the relative economic growth. Economic growth is defined as the ability for a given economy to produce a high-volume of goods and services for a given period (Executive, 2011). The reason economic growth is so important to understand is because when an economy fails to expand quickly the living standards for citizens of that economy will be reduced (Executive, 2011). Equally, important as economic growth is the topic of inflation rates. Executive (2011) defines the inflation rate as the increase in the average price level from year-to-year expressed as a percentage. As previously discussed, the business cycle along with the employment rates can heavily affect the inflation rates in conjunction with several other long-run factors (Executive, 2011). In fact, interest rates have received so much attention and support in recent years that both die empirical and the theoretical parties have concerted goals to determine positive ways to influence interest rates (Odhiambo, 2011). In any...

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