Why would a business firm want to receive reports regarding consumer confidence in the U.S. economy?
Answer:
That's a good point.
Business firm wants to know how's consumer sentiments like to gauge whether it's right time to market a new product, expand business operations, etc. If consumer confidence is great, it would be a predictor that spending will be strong. A business firm selling products would love it.
For a foreign business intending to enter U.S. market, it would be its interest to know how's consumer confidence like? This is market timing. Enter a foreign market when confidence is good. Avoid when confidence is bad (e.g. in a recession) unless you are pretty sure that your product is recession-proof.
obvious... if your firm is selling something - anything - it's vital that you know not just who the market is but how it behaves. If you're selling fashion, for instance, to the US market and there are economic problems in the US, consumers are going to think twice about spending money on clothes. You would need to know about these issues so you can adapt your products, or try different markets and so on.
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