The two main divisions of economics are micro and macroeconomics. Microeconomics as a division is about how people, households, and associations make their choices to supply capital that is limited. This happens practically in a market that perceives trade of merchandise and services. In addition, microeconomics investigates how the choices manipulate the general distribution and demand for merchandise and services (Mankiw, 2014). The provision of merchandise determines the costs that in turn determine the distribution and order of merchandise and amenities. Therefore, microeconomics is termed as the ‘bottom-up’ outlook of the financial structure and how individuals handle money, time, and capital. Macroeconomics investigates the entire economic engagements associated with the matters of advancement, price rises, and redundancy. It deals with domestic financial structure strategies associated with such issues, and the impacts of administrative involvement (altering of taxation levels). It is clear that an administration of a worldwide association will have to take microeconomics as well as macroeconomics features into thought before making of any choice on their administration strategies (Mankiw, 2014). Macroeconomics will be reliant on the provincial administration that vary from one nation to the other, and in some instances even one State to another. This is founded on diverse sorts of administration in addition to strategies in diverse global regions. Therefore, this will be a core zone of concentration for the silky administration of a worldwide company. Microeconomics on the other hand relies on the conduct of the populace in diverse regions of the globe. In essence, for a worldwide company, it is important to do a thorough investigation of taking into account the provincial features prior to implementing any administrative strategies.
Applying Economic Concepts
The first thing is that principles of economics and theory can be applied in situations that relate with the opportunity cost. As such, when a person considers the notion of scarcity, choice arises. Thus, when an individual spends money on health care, the opportunity cost will be less expenditure on learning. The other issue concerns free market, which has numerous benefits. Private organizations tend to be more effective, inventive, and react to customer first choices. On the contrary, many goods and services would be under supplied in a free market (Harteis, 2014). Thus, civic services, for instance, health care and learning would be offered in inadequate amounts. In essence, to optimize communal wellbeing, there is a need for administrative involvement through taxation and direct civil stipulation. Concerning the marginal utility hypothesis, the notion is that a cogent individual will be examining how much satisfaction merchandise and services offer him/her in relation to the price. Thus, to maximize a person`s overall well being, he/she will need to consume an amount of merchandise where the overall satisfaction is maximized based on the budget.
Technology for commerce
First, the advent of technology, particularly the internet has transformed the nature of commerce. As such, PCs can be used to easily recognize the abundance of advertisements on an individual and organizational website. Technology has overhauled the way businesses promote and market their merchandise (Westerman, 2014). This offers an organization the opportunity to reach targeted clients twenty-four seven globally, hence engaging clients more interactively. Technology is also important in the sense that technology founded communication structures have liberated offices by replacing physical call centers with virtual linkages that are cost effective (Westerman, 2014). Importantly, expertise has vastly improved commercial relations with numerous enthusiastic benefits enjoyed by commerce shareholders, employees, and clients.
Harteis, C. (2014). International Handbook of Research in Professional and Practice-based Learning. Boston: Springer.
Mankiw, N. (2014). Principles of Macroeconomics. New York, NY: Cengage Learning.
Westerman, G. (2014). Leading Digital: Turning Technology into Business Transformation. Harvard: Harvard Business Press.