Ford Motor Co. Essay

1543 WordsMay 15, 20157 Pages
Ford Motor Economic Indicators Jennifer Jones GB540 Unit 5 Assignment 10/21/2014 Economic Indicators The relation to the business cycle contains three separate relationships to the economy that each indicator may have. Each indicator can be procyclic, countercyclic, or acyclic. A procyclic or procyclical economic indicator is one that moves in the same direction as the economy. A countercyclic or countercyclical economic indicator is one that moves in the opposite direction as the economy. The last economic indicator is an acyclic that has no relation to the health of the economy and is generally of little use. The timing of economic indicators relate to when their changes occur compared to the economy. There are three types of timing economic indicators and they can be leading economic indicators, lagged economic indicators, or coincident economic indicators. Leading economic indicators help attempt or predict the economy’s future direction by changing before the economy. Lagged economic indicators become apparent only after the occurrence of associated economic activity and do not change before or with the economy. Instead, lagged economic indicators wait a short period before changing with the economy. The last economic timing indicator is coincident. This indicator usually changes the same time as the economy. Although, there are several economic indicators available to use while conducting research on the general economic health of an industry. These are the major economic indicators that affect Ford Motor: Gross Domestic Product, United States International Transaction, Durable Goods, Consumer Price Index, Unemployment, and retail sales. GROSS DOMESTIC PRODUCT (GDP) Gross domestic product (GDP) is the value of all finished goods and services produced in a country within a specific time frame. The GDP is considered the broadest indicator of economic

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