Hi Friends!!The relevance of economics to financial management can be described in the light of the two broad areas of economics namely macro economics and micro economics. Macro economics is concerned with the over all institution environment in which the firm operates. It looks at the economy as a whole.
Macro economics is concerned with the institutional structure of the banking system, money and capital markets, financial intermediaries, monetary, credit and fiscal policies and economic policies dealing with and controlling level of activity within an economy. Since business firms operate in the macro economics environment it is important for financial managers to understand the broad economic environment. Specifically, home and office electronics they should recognize and understand how monetary policy affects the cost and the availability of funds, be versed in fiscal policy and its effects on the economy and be aware of the various levels of economic activity and changes in economic policy for their decision environment and so on.The company offering these valuable products should be customer-oriented and service-oriented so that the entire transaction would be safe and secure.In much the same way, China has a lot to offer to its visitors in terms of culture, architecture, art and a lot more to add with.Further the approaches of finance are also divided as traditional and modern.
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