The aim of this essay is to consider the behaviour of major economic variables constituting the GDP, study the projected context for movement for 2011, the impact of existing tendencies on profits and profits share, and define the impact of the studied trends on Wal-Mart.

The aim of this essay is to consider the behaviour of major economic variables constituting the GDP, study the projected context for movement for 2011, the impact of existing tendencies on profits and profits share, and define the impact of the studied trends on Wal-Mart.
Part 1. List the leading and lagging SECTORS of the economy.
GDP components by expenditure are: consumption, investment, government spending, and the balance of exports and imports, i.e. trade balance. Consumption is an indicator which positively correlates with GDP, and coincides with GDP. Usually it is a leading sector. Investment usually moves similarly with GDP, and is a slightly lagging sector. Government spending is a leading sector, and trade balance tends to be a lagging one. In 2011, it is likely that consumer spending will become a lagging sector (Government Printing Office, 2010), and the lag of trade balance is likely to increase. Investment might shift to the leading sectors, due to its projected growth in major areas.
Part 2. Context for movement.
In 2010 the predicted growth of GDP and economical recovery appears to proceed more slowly than experts have projected. The decreased pace of recovery and several recent changes like the dropping exports, and the continuing increase of imports are the background for rather pessimistic than optimistic forecasts. Though investments have the tendency to increase, the growth of consumption and weak employment are likely to result in decrease of savings. Weak European economies and trade restrictions imposed by China are likely to cause further trade deficit (Government Printing Office, 2010), so it is also likely add up to economical slowdown in 2011.
Part 3. What does composition of outlook mean for profits and profit share in the economy? Risks?
On the threshold of another slowdown risks are likely to increase. Inflation rate is also expected to rise due to increased consumption and external debts. However, slight economic growth can be predicted in 2011 on conditions that international relations and trade agreements do not change significantly during 2010. Investments and consumption are still growing, so short-time profits can rise, while long-term perspectives are tending towards possible losses.
Part 4. Where does your company fit in the spectrum? Wal-Mart.
Concerning Wal-Mart position in current economic situation, it is possible to forecast the increase of profits and new space for development in the end of 2010 – the beginning of 2011. Short-term profits can be increased, however, for the long-term perspective the increase in sales and revenue should be projected. Thus, the best strategy for Wal-Mart currently is to plan short-time actions that will allow to generate profit and to use these profits as a safety reserve for future slowdown. Also, certain restructuring should be planned on the threshold of the decrease of revenues. Also, one of the most important tasks for 2010-2011 will be to retain existing customers and loyal clients.

Reference
Government Printing Office. (2010). Analytical Perspectives: Budget of the U.S. Government, Fiscal Year 2011.