Macroceconmics
By: Max • Research Paper • 468 Words • May 8, 2010 • 792 Views
Macroceconmics
As with any company many macroeconomic variables that affect all industries.
Currently, I am employed at AAI Corporation which is operates as a defense contractor
through not only the governmental customers but commercially as well. AAI Corporation is a
global engineering and manufacturing company, providing a diversified range of products and
services. AAI Corporation operates in the US but does business within the US and
internationally. One macro economical variable that affects defense industries is that of supply
and demand. , supply and demand in a market in which a company is operating determine the
price of each firms stock (McConnel & Brue, 2004, p 149). Supply and demand in the stock
market determines the price of each firm's stock, with individual stock prices generally rising
and falling in concert with the collective expectations for each firm's profits. Greater profits
normally result in higher dividends to the stock owners, and in anticipation of higher dividends,
people are willing to pay a higher price for the stock. If a company is growing and the supply and
demand is doing well the price per share continues to increase making the company more a
profitable. To give one an example, AAI Corporation when I started with the company was at
about 29.00 per share. Presently, AAI Corporation stock per share is currently trading at 83.00
per share. There were many reports written about how well the company was doing and because
of this, the company was acquired as of December by Textron. This said
AAI Corporation is an operating system of Textron Inc, also known as Textron Defense Systems.
Like AAI Corporation, Textron provides advanced technology solutions to meet the needs of the
global defense and aerospace industries. Collectively, with its various operating units, including
Textron Defense Systems (AAI Corporation), HR Textron, Lycoming Engines, Textron Marine