CORPORATE DECISION-MAKING WITH MACROECONOMIC UNCERTAINTY

03 febrero, 2010 en 11:32 a. m.

The last few decades have confronted managers with major changes in the macroeconomic environment of the fi rm and the conditions for doing business. The removal of the Iron Curtain had an immediate and strong impact on many Western European countries. The macroeconomic environment has changed permanently as a result of events in Eastern Europe, the formation of the European Economic and Monetary Union (EMU) on Jan. 1, 1999 (with the introduction of the euro) and the (re)appearance of China and India as important players on the global market. Increased openness to international trade and a higher degree of capital mobility between countries have made individual national economies more vulnerable to real and monetary shocks occurring in global markets. At the corporate level this can only trigger increased concern about Exchange rates, interest rates, infl ation, demand conditions, and competition