Macroenvironmental analysis of Computer industry :: essays research papers

The national/international deliveranceOpportunities*upswing of national economy* The Tax Relief Reconciliation human action of 2001 has begun a decline in the revenuees on American households, and will continue to do so until they reach the final goal of a total of 3% drop in 2006. In addition, the Working Families Tax Relief Act of 2004, which is a supplement to the 2001 act, has increased the dollar amount for child tax credit. Therefore, American households now, more than ever, have large amounts of disposable income.* Recent jurisprudence has reduced the amount of taxes for which petty(a) businesses are responsible. As a matter of this recent legislation, there are three major areas of opportunity for small business owners to experience tax relief (1) individual income tax returns, (2) maturation incentives for small businesses, and (3) a reduction of taxes on dividends and slap-up gains. Therefore, this allows for more capital expenditures for small businesses.*mergers with overseas companiesThreats*international economy in recession*earlier this year, the World Trade Organization ruled the U.S exporting-tax provision, which was intended to boost U.S. exports, illegal. after the ruling, the EU imposed punitive tariffs, now at 12% and locomote 1% each month, on about 1,600 U.S. exports. If these high tariffs are left wing in place it will hurt the U.S by reducing export opportunities. In addition, many of our trading partners tax income earned within their borders only, small-arm we tax the income of U.S. taxpayers regardless of where it is earned, so U.S. companies doing business overseas are oftentimes subject to a double tax on foreign earnings.* In the recently released World Economic Outlook for 2004, the International Monetary stock has projected inflation in 2004 to be higher than that witnessed in the previous(prenominal) few years. For instance, inflation in the US is likely to touch a level of 2.1 per cent, larger than 1.6 per cen t of 2003 and the past 3-year average of 1.7 per cent. This is seen as a threat because inflation has the ability to impact price levels in the country, which could potentially slowdown economic growth. * Despite the massive growth of the third accommodate of last year, capacity utilization in the U.S. barely nudged up, from 72.4 percent to 72.6 percent. Capitalists therefore have little reason to build new factories and expand the governing body for years, keeping job growth substandard for a long time. throughout this cycle, there will be the continuing shift of high-wage jobs in manufacturing to china and in services to India and elsewhere.