lesson 6 discussion 2 Putting it all Together

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Putting it all together

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Gross Domestic Product is important in Microsoft company because it shows the final worth of the products and services in a certain limited geographical area. It serves the purpose of estimating Microsoft’s output or production of the economy. It enables Microsoft to know the actual size of the economy. Gross domestic product growth rate enables Microsoft to identify their growth in the economy. Gross domestic product per capita has a close connection with the change in living standards in due time (Coyle, 2015).

Gross domestic product is important in Microsoft because it gives the company’s policy makers the opportunity to identify whether the economy is growing and expanding or diminishing. As shared by (Coyle, 2015), it gives the company an opportunity to identify whether it should put in more money or hold it back and if there are threats that associate with inflation, Microsoft is prepared. It also allows the policy makers the ability to analyze some impacts that affect Microsoft directly such as fiscal policy. It also enables Microsoft have detailed information on possible threat the company might face. (Microsoft 2016 Annual Report)

Prime rate is important in Microsoft company because it will help them analyze and determine whether they are worthy of getting credit from commercial banks at a favorable low interest rate. Microsoft is a big company and its success over the years has proved that it would not default loans. Microsoft would also require some credit for purposes of improving the company or producing more innovative products. Prime rate will thus be helpful when they invest in Bing or Xbox or other plans Microsoft has for the company (Feenstra, 2015).

Gross national product shades some light on Microsoft concerning the progress of other areas in the economy. It helps Microsoft have an oversight of the state of the economy. It shows Microsoft how the economy of the nation has been progressing. Whether it was doing well or performing poorly. This would help the company make wise decisions concerning the future of the company and the directions it would take (Cohn, 2015).

Gross national product is relevant in Microsoft because it helps in comparing the Economy of other countries. It also provides Microsoft with information on how they would save, invest or consume. It thus helps the policy makers by guiding them through with the policies they should implement concerning investments or saving. Gross national product is relevant in Microsoft because it would assist in providing information concerning wealth distribution. (Feenstra, 2015) also shares that it gathers information by checking the income of the other sectors of production and the total output in a nation. It would also shed light on whether the wealth distributed is equal or unequal.

Microsoft would have its economic problems solved with the use of gross national products especially with challenges like inflation, poverty or deflation. Gross national products would also help Microsoft have the know concerning the rate it has with the economic growth. It provides Microsoft with the current rates of growth with those of the past. It identifies whether there is an increase or decrease in the rates. Gross national product will assist Microsoft in sharing information concerning employment. It identifies the areas that are mostly occupied and vacant.

Gross national product is relevant in Microsoft because it would highlight the source and the money spent by the company in a certain country and if any help regarding that is needed, foreign aid will be given to them. According to (Valdez & Molyneux, 2015), It guides the economic planners in order to come up with policies that well framed and thought out. It also gives Microsoft information on how the government can support their production (Valdez & Molyneux, 2015).

Reference

Microsoft 2016 Annual Report. (n.d.). Retrieved April 07, 2017, from https://www.microsoft.com/investor/reports/ar16/index.html

Cohn, T. (2015). Global political economy. Routledge.

Valdez, S., & Molyneux, P. (2015). An introduction to global financial markets. Palgrave

Macmillan.

Coyle, D. (2015). GDP: A Brief but Affectionate History (Revised and Expanded

Edition). Economics Books1.

Feenstra, R. C. (2015). Advanced international trade: theory and evidence. Princeton

university press.




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