International Paper Essay Example | Topics and Well Written Essays - 1000 words

International Paper - Essay ExampleIn economic terms the gross domestic product is defined as the, total market value of all the goods and services produced in a earth in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports. In a laymans terms the gross domestic product is the sum total of all the goods and services produced in a ground in a given year. Its relevance to the business planning of the Big motorcar pose is that, it will give the society an idea on how it faired in comparison to the other equal companies and what kind of a role did it play in contributing to the GDP of the country. Another significance of the GDP is that it shows the position of the sellers and their products. rising prices is the, persistent increase in the level of consumer prices or a persistent filiation in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of ava ilable goods and services. (Robinson K., April 2007) In simple terms inflation is the rise in the value of goodness and fall in the value of money. The selection of Inflation as one of the macroeconomic measure of proceeds and prices for the planning of the Big Auto Drive can be justified in many ways. Inflation has a direct impact on variables like consumption, savings and investment. Inflation affects the economic growth of the country and is the cause of higher levels of inequity in income.Relationship between macroeconomic variables and Big Auto DriveThe sales data of the different commodities of Big Drive Auto shows a kind of uniform trend. The valuation reserve of disparity in sales from 98 to 07 is pretty much on an average level. For instance, table one illustrating the vehicle sales unit, shows that in the year 1998 the company sold 139 units followed by 160 in 99 then one hundred forty-five in 00 and 133 in 01. The highest repress of unit sales achieved by the company was in the year 2003, the number of sold units accounting to 167. 2001 was the year the company sold the lowest number of units, 133. This shows that the difference between the uttermost and the minimum number of sales in the span of 8 years from 98 to 07 is not very much. plainly one thing to be noted here is that from the year 03 on the sales have been on the higher side, in the 160s line. So the relevance of this data to the U.S GDP is that, the highest contribution made by the company to the countrys economy in terms of vehicles sale was in the year 2003. The data of an organization also helps to make up the growth rate of the GDP of a country.The fact that inflation leads to the rise in prices of goods and commodities is known to everyone. that the core knowledge of the effect of inflation on