Economic Growth
Periods of economic expansion, recession and depression.Inflation & Deflation
Changes in general price levels such as wages.Interest Rates
Baseline interest rates often impact a firm's cost of capital.Financial Markets
Capital markets go through periods where it is difficult or easy to raise money by issuing stocks and bonds.Business Cycles
Business cycles such as periods of high commodity prices followed by periods of low prices.Political Stability
Periods of political instability such as government shutdowns or major protests.Trade Barriers
Trade barriers such as tariffs can impact costs and sales.Employment
In periods of low unemployment, employees are more likely to leave for salary increases and it can be more difficult to recruit skilled resources.Demographics
Demographics such as an aging population.Consumer Confidence
How optimistic customers are about the future.Social Values
Shifting social values such as growing concerns over environmental and social issues.Technological Change
Technological change can cause vast shifts in the economy that impact large numbers of firms. For example, an innovation can replace an entire industry over a relatively short time period.Regulations
New laws and regulations or elimination of regulations. For example, reduced regulations may result in more competition as regulations can represent a barrier to entry.Taxation
Tax rules, rates and interpretations.| Overview: Macro Environment | ||
Type | ||
Definition (1) | Broad economic, social and technological factors that impact a firm. | |
Definition (2) | Factors that impact a firm that the firm has no significant influence over. | |
Related Concepts | ||
