>> September 5, 2010
Economic planning is made for reducing economic risks. Under this planning, we can select best alternative for increasing the economic strength of company. Economic planning's other name is central planning and central economic planning.
In economic planning, we have to make plan regarding optimum use of our resources in producing of goods. We also have to make plan to produce optimum quantity of output. We can use economic planning at small level and at large level like investment decisions of Govt.
MNC uses economic planning for effective division of their resources in their different departments and branches. They also uses statistical techniques for calculating correlation of company's sale and other sale and one this basis, they make plan to increase sale.