Macroeconomics is the field of economics that studies trends in the overall economy, whether at the level of a state, a country, or the entire world. In contrast to microeconomics, which studies the economic decision-making of individuals, macroeconomics examines how the aggregated decisions of all the individuals in an economy are shaped by large-scale factors such as interest rates, inflation, productivity, and tax and trade policies.
The importance of macroeconomics to understanding the business landscape has only grown in recent decades, as the march of globalization has made international economies ever more interdependent. Macroeconomic conditions within and between countries can create opportunities as well as challenges; for example, differences in labor costs or tariffs may enable a company to lower production costs with international supply chains.
Similarly, understanding macroeconomics is an important part of understanding national and international politics. Gross domestic product (GDP) growth is a core goal of any government, and economists play a central role in determining the macroeconomic policies needed to achieve this. Macroeconomic conditions in a country can also influence its positions in international trade negotiations as well as its motivations in cross-border conflicts or alliances.‎
