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Intel Corporation And The Effects Of Economics

explanatory Essay
854 words
854 words
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Intel Corporation and the Effects of Economics

Economics is defined as is the social science that studies the production, distribution, and consumption of goods and services. It primarily deals with the exchange of value and that labor or human effort is the source of all value. The field may be divided in other ways, most commonly microeconomics vs. macroeconomics. Microeconomics examines the economic behavior of individual units, including businesses and households, and their interactions through markets, given scarcity and government regulation. Macroeconomics examines an economy as a whole "top down" with a view to understanding interactions between the broadest aggregates such as national income and output, employment and inflation and broad aggregates like total consumption and investment spending. Econometrics is the application of statistical techniques to measuring economic phenomena.

Scarcity suggests all things in the world are in finite supply. People therefore have to make choices. The concept of value is central to economics. Objective value is the equilibrium free market price. Subjective value arises from individuals' preferences, and so influences economic agents' behaviors. In microeconomic theory supply and demand attempts to describe, explain, and predict the price and quantity of goods sold in perfectly competitive markets. It is one of the most fundamental economic models and it is used as a basic building block in a wide range of more detailed economic models and theories. Price is the going rate of exchange between buyers and sellers in a market. Price theory charts the movement of measurable quantities over time, and the relationship between price and other measurable variables.

Porter 5 forces analysis is a framework for business management developed by Michael Porter in 1979. It uses concepts developed in Industrial Organization economics to derive 5 forces that determine the attractiveness of a market. It is also known as FFF, Fullerton's Five Forces. Porter referred to these forces as the microenvironment, to contrast it with the more general term macro-environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace. The first force is called bargaining power of customers, the second is the bargaining power of suppliers, the third on is the threat of new entrants, the fourth one is the threat of substitute products, all in which influence the fifth force, the level of competition in an industry.

In this essay, the author

  • Explains that economics is the social science that studies the production, distribution, and consumption of goods and services. microeconomics examines the economic behavior of individual units and their interactions through markets.
  • Explains that the concept of value is central to economics. it is the going rate of exchange between buyers and sellers in a market.
  • Explains porter 5 forces analysis, a framework for business management developed by michael porter in 1979.
  • Explains market structure or market form, which describes the state of a market with respect to competition.
  • Explains that intel is the world's largest semiconductor company and the leading manufacturer of the x86 series of microprocessors, the processor found in many personal computers.
  • Explains that intel had competition from big names such as samsung, texas instruments, toshiba, stmicroelectronics and advanced micro devices. intel managed relationships with three classes of players: competitors, buyers and suppliers.
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