Business Expectations

Guys, we all know that every business is affected by the micro and the macro environment. We also know that the macro-environment includes the economic environment. Business expectations affect the economy profoundly. If business owners think that the future is bright for the economy, they will invest more in order to reap the gains of the future. This increase in the current investment automatically improves the economy. On the other hand, if the business owners think that the future is gloomy, they will reduce their current investments which will automatically affect the economy adversely and will create those gloomy conditions predicted by thr business owners.

Nowadays, in America expectations for the future have become quite positive which will lead to an improvement in the economy. Thus, expectations is an extremely powerful force in an economy. Kraft’s agreed £11.9 billion ($19.7 billion) bid for Cadbury, thrashed out in the early hours of January 19th may therefore mark the start of a trend which may lead to the improvement of the global economy. Guys, check out this article on how these positive expectations will affect the American economy in the future.

http://www.economist.com/businessfinance/displayStory.cfm?story_id=15323694