This assignment is aligned to this course outcome: • Apply macroeconomic concepts to current and personal economic events and decisions. In addition to writing about macroeconomic concepts, it's...

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This assignment is aligned to this course outcome: • Apply macroeconomic concepts to current and personal economic events and decisions. In addition to writing about macroeconomic concepts, it's equally important to be able to convey your understanding of these concepts by communicating them to others. In the workplace you might do this by writing briefs (like you did for Assignment 1), creating presentations, or writing reports for your manager or team. This Final Report assignment will be a Word document (2-3 pages) that builds off your previous Economic Brief and selected industry. For this assignment, you'll examine at least one of the macroeconomic indicators or policies below within the context of the industry you have previously selected. • GDP growth • Unemployment rates • Inflation rates • Interest rates • International trade policy and issues related to trade balances, trade restrictions, etc. • Government fiscal policy and issues related to taxation, government spending, and budget deficits • FED (central bank) monetary policy and issues related to the FED’s mission to stabilize the economy Macroeconomic Resources for Industry and Economy These resources are available to help you find the size and growth rate of your industry in the U.S. economy and/or relative to GDP: • Real GDP – Click on Section 1, then table 1.1.6, (click on MODIFY to change the year range and frequency). Data is from Bureau of Economic Analysis (bea.gov). • % change in Real GDP – Click on Section 1, then table 1.1.1, (click on MODIFY to change the year range and frequency). Data is from Bureau of Economic Analysis (bea.gov). • GDP by Industry – Scroll down and click on “GDP by Industry”, then Click on “GDP by Industry (Q) (A)”. Select (Q) for Quarterly Data or (A) for Annual Data and then click on “Next Step”. This will provide data for 2008 to 2017. To change the year range, click on MODIFY and type in desired start and end years. Data is from Bureau of Economic Analysis (bea.gov). • % change in GDP by industry - Scroll down and Click on “Value Added by Industry”, then Click on “Percent Change in Chain-Type Quantity Indexes for GDP by Industry (Q) (A)”. Select (Q) for Quarterly Data or (A) for Annual Data and then Click on “Next Step”. This will provide data for 2008 to 2017. To change the year range, click on MODIFY and type in desired start and end years. Data is from Bureau of Economic Analysis (bea.gov). ECO100 – Principles of Economics © 2018 Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed in whole or in part, without the expressed written permission of Strayer University. Page 2 of 4 These resources are available to help you measure and track macroeconomic indicators and outcomes of macroeconomic policies: • Unemployment rates – Data is from Bureau of Labor Statistics (bls.gov). • Inflation rates as measured by the Consumer Price Index (CPI). Data is from Bureau of Labor Statistics (bls.gov). • % Change in Real Exports and Imports - Click on Section 4, then table 4.2.1. (Click on MODIFY to change the year range and frequency.) Data is from Bureau of Economic Analysis (bea.gov). • Government receipts, expenditures, and savings – Click on Section 3, then table 3.1 for total government and table for 3.2 for federal government. (Click on MODIFY to change the year range and frequency.) Data is from the Bureau of Economic Analysis (bea.gov). • FED Funds Interest Rates. Data is from Trading Economics (tradingeconomics.com). Preparation 1. To begin this assignment, recall the industry you selected in Assignment 1. 2. Use the industry GDP resources above to assess the size and growth rate of this industry. 3. Next, identify a newsworthy macroeconomic indicator or policy that may impact your selected industry. Use the macroeconomic resources above to find patterns and trends. 4. It will also be important to review relevant chapters from The Little Book of Economics, the Principles of Economics readings, and your prior discussion board questions and responses. Instructions Prepare a Final Report that is approximately two to three (2-3) pages long in which you: 1. Assess your selected industry’s relative size and growth rate in the economy. 2. Identify at least one newsworthy macroeconomic indicator or policy that is important for the industry to monitor, e.g., GDP, unemployment, inflation rates, interest rates, trade policy, government taxation and spending decisions, and/or FED decisions. 3. Explain why this macroeconomic indicator or policy is important and how it may impact your selected industry. 4. Describe a recent trend in the macroeconomic indicator or policy. Include a graph, chart, or table that illustrates the observed trend. 5. Conclude with a forecast for the industry based on whether the trend identified in part 4 is expected to continue. Provide support for your conclusion. 6. This course requires use of Strayer Writing Standards (SWS). The format is different compared to other Strayer University courses. Please take a moment to review the SWS documentation for details. (Note: You’ll be prompted to enter your Blackboard login credentials to view these standards.) o Your brief should include a cover page. o Your brief should be two to three (2-3) pages in length (not including the cover page), double-spaced, 12-point font. o Your report should include a minimum of two (2) references/citations in the text.
Answered Same DayDec 08, 2020

Answer To: This assignment is aligned to this course outcome: • Apply macroeconomic concepts to current and...

Soma answered on Dec 09 2020
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I. Introduction: an overview of non -alcoholic Beverage Industry
Non-alcoholic beverage industry in United States is characterized by oligopoly market structure. Coke and Pepsi are the key dominant players in the market that jointly constitute 75% of market share. According to 2016 estimate, the value of
global beverage industry was estimated as 967.3 billion. The beverage giants Coca Cola and Pepsi Co have massive economic contribution to US economy. According to recent available data, it has been estimated that the beverage industry contributes 252, 974 jobs in America.
It offers well-paying jobs, generate substantial tax revenue for the State and the Federal government and make important charitable contribution around the globe. Coke and Pepsi produced some of the world’s most popular beverages and sell across the world. Due to growing public health legislation and soda regulations, both the giants have launched new non-carbonated drinks and other beverages to remain competitive and retain the market share. The direct economic impact to the domestic economy is estimated as $182.6 billion whereas the charitable contribution is valued as $1.5 billion. (AmercianBeverageAssociation, 2018)
The key objective of this report is to apply the macroeconomic concepts in the real business world scenario. The current study addresses one key macroeconomic indicator namely GDP and examine how it affects the business outcome of non-alcoholic beverage industry in United States.
II. GDP growth rate: a key indicator that affects beverage industry
GDP Growth rate is one of the primary economic indicators to assess the economic health of any country. (Mankiw, 2009)A sound economic health is the key for any industry to grow. When the economy grows at a rapid pace, people are likely to have a positive economic outlook and increase the consumption expenditure. During the period of economic boom, the sales, revenue and the profit of the soft drink beverage industry will increase. On the contrary, the economic contraction creates a stressful environment for doing the business. Thus, GDP growth rate has an important implication on the profitability of the business. Both Coke and Pepsi closely monitor the trends of GDP growth rate before taking any important and expensive business decisions.
III. GDP growth rate: recent trend
The study has collected the data for GDP and the real GDP growth rate since 2008 for our analysis. The data has collected from BEA website and shown in the following table and chart. The negative growth rate data during 2008-2009 suggest that US was worst hit during the global recession. The economic contraction was reflected in the downfall in its GDP and negative growth rate. But with the help of effective monetary policy by FED as well as the fiscal stimulus, the economy has gained a robust recovery. The current expansion of US is even more than expectations that has led the Fed to move for rate hike. As the economy has currently witnessed a steady economic expansion, it would facilitate the beverage giants to grow further. (BEA,...
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