...indicators of economic performance and are closely monitored by governments, businesses and consumers. Macroeconomic factors are the factors which affect the wider economy. In other words these factors seem to summarize the picture of economy. Macroeconomic variables include economic output, unemployment, inflation, interest rates, money supply, exchange rate, foreign reserves, savings and investment. Variables used in study: • Consumer Price Index (CPI) Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account within the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the CPI) over time. A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households. It captures the retail price movement for different sections of consumers. In India, the Consumer Price Index or CPI measures changes in the prices paid by consumers for a basket of goods and services. It is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as...
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...To what extent has China and India effected Japan`s economy between the years of 2009 -2014? Mejia Restoration. In ancient Japan the Tokugwa Period, commonly known as the Edo Period occurred between1603-1863. During this time economic and political stability was maintained in the country under the rule of the Shogunate (1). The Shogunate refers to a military style dictatorship, in which the Emperor granted high ranking military commanders the ability to control and wield power over Japan. The Tokugawa era, were considered to be the last of the shogun period in Japan To create social stability in Japan, the Shogun implemented a systematic plan, which separated the four main classes. Namely: The samurai (warriors) at the top, followed by farmers, artisans, and lastly peasants. The Shoguns were considered to be the bureaucrats of the country. In comparison the peasant class accounted for 80 % Japan’s population were restricted to engaging activities that were associated with agricultural and farming. The reason for this is that the Shogun wanted to ensure that those with authority and power were able to generate a stable source of income from their land, while leaving the peasants with little to survive on. The political stability of the Tokugawa period was under threat due to the colonial expansions of countries such as Portugal and Spain into Asia, via catholic missionaries (1). The reason why the Towkugwa Shogun`s feared catholic missionaries, was that they believe...
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...Macroeconomics assignment On ANALYSIS OF INDIA CHINA BRAZIL ECONOMIES INTRODUCTION The BIC Countries: Brazil, India, China. The BIC countries are made up of Brazil, India and China - although if we were to categorize them by importance, it would actually be CIB. Why the BIC are Important?? The BIC are both the fastest growing and largest emerging markets economies. They account for almost three billion people, or just under half of the total population of the world. In recent times, the BIC have also contributed to the majority of world GDP growth. According to various economists’ projections, it is only a matter of time before China becomes the biggest economy in the world - sometime between 2030 and 2050 seems the consensus. In fact, Goldman Sachs believes that by 2050 these will be the most important economies, relegating the US to fifth place. By 2020, all of the BIC should be in the top 10 largest economies of the world. The undisputed heavyweight, though, will be China, also the largest the creditor in the world. Apart from their growth characteristics, the BIC countries frankly have little in common. They are primarily an investment category now, although there may some political and economic alliances that develop from that grouping. If they do, it is likely to be temporary - once China has assumed its rightful place, it may have no need for these alliances. A G2 of China and the US may be more important for it unless the 2050 predictions do come true...
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.................................................................................................................................3 Literature Review....................................................................................................................4 Introduction............................................................................................................................6 1) Debt Market.........................................................................................................................6 2) Equity Market......................................................................................................................8 Relation between Debt and Equity Market................................................................................10 Empirical Relation.................................................................................................................12 Limitations of Study................................................................................................................15 Conclusion.............................................................................................................................16 Reference and Bibliography...................................................................................................17 Abstract The purpose of this paper is to empirically analyse the dynamic relationship between stock market and bond market post liberalization. - The research...
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...How do you account for India’s failure to demonstrate Chinese rates of growth? Over the past two decades, one of the most compelling economic stories has been the rise of India and China, two of Jim O’Neill’s “BRIC” countries (FT Magazine, 2010). Despite the implementation of different economic policies (Gupta, 2008) both countries have emerged as major economic forces in the global economy (Bosworth and Collins, 2007), most notably since 1980. Since then, India and China have experienced a significant reduction in poverty with China lifting 500 million out of social deprivation. According to the World Bank (2013), China has had an average GDP of 10% each year while India has seen her GDP double over a similar period. The countries are often compared due to their large population and geographical vastness as well as climbing from third world countries to major economic forces in a relatively short time. However, despite a significant increase in GDP, India has failed to demonstrate the same rates of growth as China. Although both countries were in a similar position during the early nineties, China’s GDP has increased 7 fold since this time; whereas India, although steady, GDP has doubled. The average annual rate is by 10% in China compared to 5-6% in India (see Figure 1). The purpose of this paper is to compare the rates of growth of India and China over the past 30 years and examine possible explanations for this phenomenon. The economies of these countries are...
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...UNDP HDR-QMMM SYBA 1 Sr. No. 1 2 3 4 5 6 7 8 9 Partuculars Introduction A1)Synopsis of the Report A2)Chapter 3 the Heart of this report A3)HDR 2013 Significance to a Macroeconomics student A4)Findings of the Report with Regards to Venezuela A5)Lessons Learnt From this Assignment Conclusion Appendix 1 Bibliography Page No. 3 3 4 7 8 9 10 11 12 2 Introduction: The report I have studied for this assignment is the Human Development Report of 2013 . It was prepared and published by the United Nation Development Programme. This report’s subject is The Rise of the South:Human Progress in a Diverse World. Human development reports by the UNDP are published annually.They mark the progress of the development of the countries. A1)Synopsis of the report: The HDR 2013 UNDP report discusses various factors and their consequences on the development of the south mainly those which reduced their shortfall with the Northern countries. Southern Countries don’t follow fixed sets of policies but policies according to their priorities for development related to health, education and per capita income, positively impacting national equity. Employment oriented developmental policies lead to income flows into more households making products more poor accessible . The result is overall development of these countries. Importance of ambitious policies, public spending initiatives and people’s participation is emphasised. Globalisation has been growing in the south but unless...
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...Brazil as a BRICS Economy. 4. Market for smart phones in Brazil. 5. Using the porter’s five forces to analyse the market for smart phones in Brazil. 6. Competitors existing in the market. 7. How to enter the market. 8. Constraints to success for the company (using PESTLE model). 9. How to achieve a sustainable competitive advantage. 1. INTRODUCTION The Cost (this involves the legal cost, corruption, lack of infrastructure), Benefits (size of the economy or economy growth),Risk (political-social unrest, economic mis-management) analysis has been used to analyse the favourable emerging market in Latin America which is Brazil. The main reasons for choosing this market will discussed in details. 2. OVERVIEW OF BRAZIL’S ECONOMY The chosen market is BRAZIL which is an emerging market and also the largest of the Latin American nations and the second largest in the western hemisphere with an average annual GDP growth rate of over 5%. In one of my findings, Brazil is expected to become one of the five largest economies in the world in future. As at 2011 according to Forbes, “Brazil was ranked the 8th largest number of billionaires in the world”. Brazil is the sixth largest economy by nominal GDP in the world and also ranked 10th ease of doing business rank, with a population of...
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... Introduction to area of study India has come a long way in terms of economic growth. There is broad consensus that the global centre of economic growth is moving to Asia, and as a large emerging nation with a growing middle class, India has captured the attention of developed economies looking for new investment and trade opportunities. The Softer indicators of economy – aspirations, health, and literacy – are all registering discernible improvements. Over two decades, India has implemented wide-ranging reforms that opened up the economy, dismantled the old licensing system and introduced competition into a number of sectors that had previously been dominated by public monopolies. Now, we live in a generation of relative abundance. While for the Western world it is going to be a demographic winter, we in India with some effort should be reaping a demo- graphic dividend. It is an India full of goodies –better consumption and lifestyle are in attendance all around. From the past two decades, we saw the twists in its growth and also twist in political atmosphere. With 27 per cent of the economy stagnant, it is no surprise that overall growth in India has slipped below 6 per cent. We are referring to the industrial sector, which has recorded an insipid 0.4 per cent growth in the first five months of this fiscal year beginning April 2013. It needs no emphasis that without a turnaround in this sector, a material lift to India's GDP growth is not possible. Industrial growth had slipped during the...
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...1. Introduction India is located in Southern Asia, bordering the Arabian Sea and the Bay of Bengal. It is the seventh largest country in the world with a population of 1,189,172,906 (CIA, 2011), making it the second largest populous country with only China having a greater population (Burrows, 2005). India is part of the BRIC countries, meaning that it is seen as a major developing economy in the world as well as contributing towards 40% of the world’s population in which the BRIC countries formulate (Rosenberg, 2009) however, although India is seen as having a major developing economy, it is poverty stricken (CIA, 2011). A survey conducted by NSSO in 2004/05 concluded that 22.15% of Indian residents are living below the poverty line, with the main factor contributing towards poverty being the high population growth rate (Facts about India: Poverty, 2011) which is expected to lead the way at 7.9% per annum (The Soft Drinks Industry of India, 2009). 2. Extended Version of Porter’s National Diamond Figure 1: Porter’s National Diamond Source: Rugman and Collinson (2009, p.148) 1 Porter’s National Diamond Framework is used to assess the competitive advantage of nations and allows you to understand the comparative position of a nation in global competition. 2.1 Factor Conditions The Indian climate is very hot (CIA, 2011) which means that the demand for soft drinks may increase due to residents needs to keep hydrated throughout the day. Although very high...
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...Economics Economies of Scale Reduction in cost per unit resulting from increased production, realized through operational efficiencies. Economies of scale can be accomplished because as production increases, the cost of producing each additional unit falls. Diseconomies of Scale “Economies of scale” is a simple concept that can be demonstrated through an example. Assume you are a small business owner and are considering printing a marketing brochure. The printer quotes a price of $5,000 for 500 brochures, and $10,000 for 2,500 copies. While 500 brochures will cost you $10 per brochure, 2,500 will only cost you $4 per brochure. In this case, the printer is passing on part of the cost advantage of printing a larger number of brochures to you. This cost advantage arises because the printer has the same initial set-up cost regardless of whether the number of brochures printed is 500 or 2,500. Once these costs are covered, there is only a marginal extra cost for printing each additional brochure. Economies of scale can arise in several areas within a large enterprise. While the benefits of this concept in areas such as production and purchasing are obvious, economies of scale can also impact areas like finance. For example, the largest companies often have a lower cost of capital than small firms because they can borrow at lower interest rates. As a result, economies of scale are often cited as a major rationale when two companies announce a merger or takeover. However...
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...Best Buy enters India by Francisco Polo Professor Hamid Assar International Finance – FIN535 May 22, 2012 Summary Best Buy Co., Inc. is an American specialty retailer of consumer electronics in the United States, accounting for 19% of the market. It also operates in Puerto Rico, Mexico, Canada and China. The company's subsidiaries include Geek Squad, CinemaNow, Magnolia Audio Video, Pacific Sales, and, in Canada operates under both the Best Buy and Future Shop label. Together these operate more than 1,150 stores domestically and internationally. In addition, the company operates over 100 Best Buy Express Automated Retail stores or "ZoomShops", operated by Zoom Systems, in airports and malls around the U.S. The company is headquartered in Richfield, Minnesota, United States. On March 9, 2009, Best Buy became the largest electronics retail store (online and bricks and mortar) in the eastern United States, after smaller rival Circuit City went out of business. Fry's Electronics remains a major competitor in the western United States, while Hhgregg remains competitive in the eastern United States. Many locations feature in-store pickup, which can be arranged through the company's website. As of December 28, 2008, the company operated 1,010 Best Buy Stores, 13 Magnolia Audio Video Stores (specializing in high-end electronics), 7 stand-alone Geek Squad stores, 3 Audio Visions Stores, 13 Best Buy Mobile Stores (standalone) and...
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...Quazi Tasnim Hasan ID # 112 111 051 Assignment No. 4 What is economic integration? For the Last 65 years, the world has undergone significant changes. The decade of the 1970s was dominated by the two energy crises. Industrial economies were faced with a new “enemy”: stagflation—a combination of high inflation and unemployment. Developing countries were increasingly becoming more dependent on foreign borrowing and centrally planned economies were unable to secure economic growth. Furthermore, the world witnessed a radical transformation during the past two decades. The greatest economic experiment of the twentieth century was the movement from communism to a market economy, which began in Mikhail Gorbachev’s Russia in the mid-1980s, and then spread to Eastern Europe at the beginning of the 1990s and to China later on during the same decade. Although the transition to a free market has led to disappointing outcomes, most Eastern Europe countries have concentrated on integrating their economies with Europe and on becoming part of the EU. All these events led to the world becoming more and more global in nature and to defining globalization as a closer economic integration among nations through increased trade and capital flows. It also refers to labor movement and technology transfer across international borders as well as cultural and political issues, which are beyond the scope of this chapter. Globalization is the result of technological processes occurring mainly in the...
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...countries and another two with considerable populations. China alone holds a fifth of the world’s population, and is closely followed by India (17.5%) and, by a larger gap Brazil (2.9%) and Russia (2.2%). Despite their large territories – Russia’s 17 million km2, India’s 3.2 million km2, China’s 9.3 million km2 and Brazil’s 8.5 million km2 –, the Brics differ from each other in terms of natural resources, level of industrialization and impact on the global economy. It is important to point out these differences, as definition as a bloc might lead to wrongful assumptions about the four countries’ individual current and future roles in the global economy. In order to be accurate about each country’s actual weight in the world, we should perhaps change the acronym to CIRB (but without the glamour of the name). Let us begin with China, which is the most continuous civilization in history – not strictly in terms of political linearity but rather in terms of cultural continuity. The country has a tragic contemporary history, marked by economic decadence, political instability, military humiliation and social regression caused by a deep degradation of the social fabric after Mao Zedong’s economic follies created a human hecatomb and a demographic “gap” of tens of millions of people. India is the world’s second oldest “continuous” civilization – the inverted commas are to highlight the country’s cultural and ethnic diversity. India has no cultural unity as such, and its political history...
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...occur on an international scale which is known as globalisation. Transnational co-operations (TNCs) and Newly Industrialized Country (NICs) play a fundamental role in the interaction of economies worldwide (global economy). A TNC is a very large company that has offices and factories in many different countries, for example Nike. On the other hand, a NIC is a newly industrialized country such as Singapore, South Korea and Hong Kong (discovered in the 1970s/80s) and more recent NICs (discovered in the late 2000s) include China, India, Malaysia and Thailand. NICs are usually LEDCs that have undergone recent, rapid industrialisation and experience rising incomes, high growth rates and international involvement. Governments of these NICs kept close control over industrial development, and encouraged industries to export manufactured products to the more developed and richer countries abroad. The percentage of people working in the primary sector has declined as people move from jobs in rural areas to urban areas so that they can work in factories as the industrial base continues to develop. A ‘TNC’ is a company that operates in at least two countries. They often have management headquarters in their home country and operate in host countries alongside; examples would include GlaxoSmithKline, BP, Wal-Mart and Coca-Cola. TNCs have a powerful influence on both local economies and international relations, they play and important role in globalisation as they are easily able to approach...
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...the year ahead: America’s presidential election and the summer Olympic games in Beijing. The race for the White House will be a marathon, from the front-loaded primary season in January and February to the general election in November. The betting is that the winner will be a Democrat—with a strong chance that a Clinton will again be set to succeed a Bush as leader of the free world. China, meanwhile, will hope to use the Olympics to show the world what a splendid giant it has become. It will win the most gold medals, and bask in national pride and the global limelight. But it will also face awkward questions on its repressive politics. America and China will be prime players in the matters that will concentrate minds around the world in 2008. One of these is the world economy, which can no longer depend on America, with its housing and credit woes, to drive growth. America should—just—avoid recession, but it will be China (for the first time the biggest contributor to global growth) along with India and other emerging markets that will shine. Another focus of attention will be climate change. As China replaces America as the world’s biggest producer of greenhouse gases, serious efforts on global warming depend on the serious involvement of those two countries. If 2007 was the year when this rose to the top of the global agenda, in 2008 people will expect action. It is striking that green is a theme that links all the contributions from political leaders in this volume, whether at...
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