...Report On EFFICIENCY ENHANCERS SUB INDEX (Comparison between INDIA and CHINA ) Submitted by P.Anila INTRODUCTION The Global Competitiveness Index (GCI) every year report will published by the World Economic Forum. The first report was released in 1979. The 2009-2010 report covers 133 major and emerging economies, down from 134 considered in the 2008-2009 report as Moldova was excluded due to lack of survey data. Switzerland leads the ranking as the most competitive economy in the world, as the United States, which ranked first for several years, fell to fourth place due to the consequences of the financial crisis of 2007–2010 and its macroeconomic instability. China continues its relative rise in the rankings reaching 27th. The report "assesses the ability of countries to provide high levels of prosperity to their citizens. This in turn depends on how productively a country uses available resources. Therefore, the Global Competitiveness Index measures the set of institutions, policies, and factors that set the sustainable current and medium-term levels of economic prosperity. The WEF defines competitiveness as the set of institutions, policies, and factors that determine the level of productivity of a country. More competitive economies tend to be able to produce higher level of income for their citizens. Global Competitiveness shows the ability of a country to compete...
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...2.1: Country/Economy Profiles Mexico Key indicators, 2010 Population (millions)...............................................110.6 GDP (US$ billions)................................................1,039.1 GDP per capita (US$) .............................................9,566 GDP (PPP) as share (%) of world total..................2.09 GDP (PPP) per capita (int’l $), 1985–2010 15,000 12,000 9,000 6,000 3,000 Mexico Latin America and the Caribbean 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Global Competitiveness Index Rank (out of 142) Score (1–7) Stage of development 1 Factor driven Transition 1–2 GCI 2011–2012 ........................................................ 58......4.3 GCI 2010–2011 (out of 139)..................................................66........ 4.2 GCI 2009–2010 (out of 133)..................................................60........ 4.2 Basic requirements (38.6%)...............................................67........ 4.6 Institutions...........................................................................103........ 3.4 Infrastructure........................................................................66........ 4.0 Macroeconomic environment ...........................................39........ 5.2 Health and primary education...........................................69........ 5.7 2 Efficiency driven Transition 2–3 3 Innovation driven Institutions...
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...Business Proposal Tina Davis ECO/561 Economics Draft Business Proposal In an effort to serve the CVS Pharmacy’s consumer base better, the need to offer a wider variety of prescription medication selections and options system-wide. In this proposal, assumptions about the elasticity of demand and the market structure for these medications and expanded services will be included. Additionally, how the expansion will increase revenues will be explained. Further, a rationale for determining the profit-maximizing quantity will be provided. Decisions will be made by using the concepts of marginal costs and marginal revenue to maximize profit. A mix of pricing and non-pricing strategies will be suggested. This proposal will also explore options of creating or increasing barriers to entry. Further, increased product differentiation will be discussed. Finally, other way to minimize costs will be explored. Market Structure and Elasticity of Demand CVS retail pharmacies operate in a monopolistic competition market structure. According to Investopedia (2012), the monopolistic competition is, “A type of competition within an industry where: 1. Firms produce similar yet not perfectly substitutable products. 2. Firms can enter the industry if the profits are attractive. 3. Firms are profit maximizers. 4. Firms have some market power, which means none are price takers. Firms in a monopolistic competition sell goods that have either actual or perceived non-price differences...
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...Authorized WPS5572 Policy Research Working Paper 5572 Public Disclosure Authorized What Drives the Development of the Insurance Sector? An Empirical Analysis Based on a Panel of Developed and Developing Countries Erik Feyen Rodney Lester Roberto Rocha Public Disclosure Authorized Public Disclosure Authorized The World Bank Financial and Private Sector Development Finance and Policy Units February 2011 Policy Research Working Paper 5572 Abstract The insurance sector can play a critical role in financial and economic development. By reducing uncertainty and the impact of large losses, the sector can encourage new investments, innovation, and competition. As financial intermediaries with long investment horizons, insurance companies can contribute to the provision of long-term instruments to finance corporate investment and housing. There is evidence of a causal relationship between insurance sector development and economic growth. However, there have been few studies examining the factors that drive the development of the insurance industry. This paper contributes to the literature by examining the determinants of insurance premiums (both life and non-life premiums) and total assets for a panel of about 90 countries during the period 2000-08. The results show that life sector premiums are driven by per capita income, population size and density, demographic structures, income distribution, the size of the public pension system, state ownership of insurance...
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...decline in private investment and formulate a comprehensive strategy to overcome this problem, which is the main cause of deceleration in the growth momentum of Pakistan’s economy. Due to lack of investor confidence, private investment has reached its lowest point in the recent economic history of the private sector led growth phase (1978 to 2002) in Pakistan. This paper argues that economic as well as non-economic factors are responsible for this declining investment. Economic policies are formulated in such a manner that the short-term objectives of lowering the fiscal and trade deficits were to some extent achieved but overall economic performance and investment were ignored. In order to control external trade deficits, a policy of devaluation increased the cost of production through an increase in prices of imported raw material especially of plant and machinery. Higher real interest rates due to excessive public borrowing that were due to the failure in reducing fiscal deficits has resulted in financial crowding out and has corroded the savings that might be used to finance private investment. The unexplained part of private investment that is not determined by economic factors can be attributed to non-economic factors, which include internal and external shocks. These shocks start from the sanctions which were imposed after the nuclear blast. Events following that initial shock like the freezing of foreign currency accounts, the military coup, the harassment of the partially successful...
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...Recent deliberation on whether “Malaysia is a safe haven for travel and investment?” was frequently asked by the international tourists and foreign investors owing to the increasing trend of crime rates in Malaysia. From the visual inspection in Figure 1, both property and violent crime rates in Malaysia has increased quite significantly between 1970 and 2006. Over a decade from 1970 to 1980, both property and violent crime rates in Malaysia increased more than two folds. The property crime rate increased drastically from 25 thousand cases in 1970 to 66 thousand cases in 1980. In the similar vein, violent crime rates increased from approximately 3 thousand cases in 1970 to approximately 8 thousand cases in 1980. During the period of economic recession in the 80s (see Figure 1), the property crime rate dropped about 36 per cent and the violent crime rate reduced about 8 per cent over the period of 1980 to 1989....
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...Decision Support Systems 24 Ž1998. 29–43 An empirical study on consumer acceptance of products in electronic markets: a transaction cost model Ting-Peng Liang ) , Jin-Shiang Huang 1 Department of Information Management, National Sun Yat-sen UniÕersity, Kaohsiung, Taiwan Abstract Electronic commerce is gaining much attention from researchers and practitioners. Although increasing numbers of products are being marketed on the web, little effort has been spent on studying what product is more suitable for marketing electronically and why. In this research, a model based on the transaction cost theory is developed to tackle the problem. It is assumed that customers will go with a channel that has lower transactional costs. In other words, whether a customer would buy a product electronically is determined by the transaction cost of the channel. The transaction cost of a product on the web is determined by the uncertainty and asset specificity. An empirical study involving eight-six Internet users was conducted to test the model. Five products with different characteristics Žbook, shoes, toothpaste, microwave oven, and flower. were used in the study. The results indicate that Ž1. different products do have different customer acceptance on the electronic market, Ž2. the customer acceptance is determined by the transaction cost, which is in turn determined by the uncertainty and asset specificity, and Ž3. experienced shoppers are concerned more about the uncertainty...
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...developed countries is of wage and salary earners. Whereas in the developing countries there is a predominance of self-employment. This non-homogeneous character of labour markets in developing countries also implies that the nature of employment and the manner in which it is created is different in the two world’s. In the developing countries the vast majority of the population is left to fend for itself and create employment out of its own ingenuity, skills and capital. This leads to vast differences in the nature of employment and the creation of dualistic structure of ‘formal’and ‘informal’ components of the labour market. A large proportion of the workforce is in the unorganised or informal sector. These workers are engaged in economic activities with lower productivity resulting in lower incomes. They are also engaged in activities with less stable employment contracts (including the self-employed) and fewer social security benefits. While the wages and salaries of the formal sector workers are periodically revised to counter inflation. No such benefits accrue to the large proportion of workers in the unorganised sector. Inspite of growing literature on the informal sector, there are several gaps not only with respect to the data on the size of the sector, but also with respect to the concept and definition of informal sector, characteristics of the sector, its contribution to the national economy and the areas for...
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...J. of the Acad. Mark. Sci. (2014) 42:361–379 DOI 10.1007/s11747-013-0364-3 ORIGINAL EMPIRICAL RESEARCH When do incentives work in channels of distribution? David I. Gilliland & Stephen K. Kim Received: 31 December 2012 / Accepted: 1 November 2013 / Published online: 7 December 2013 # Academy of Marketing Science 2013 D. I. Gilliland Aston University, Birmingham, UK B47ET incentive offers because monetary rewards offset the agent’s risk and unpredictability of its income stream (Jensen and Meckling 1976). Despite general support for this logic, researchers have been puzzled by a substantive dilemma: Incentives often do not work. Benabou and Tirole (2003); Bouillon et al. (2006), and others have found that agents do not always respond positively as incentives increase. Other findings indicate that monetary incentives are sometimes demotivational (Ryan and Deci 2000), lead to dysfunctional activities by rewarding the wrong behavior (Baker 2002; Oyer 1998), are an inefficient control mechanism (Akerlof and Kranton 2005), promote shirking rather than compliance (Gibbons 1998), and are unpredictable under turbulent industry conditions (Prendergast 1999). The idea that incentives often do not work has been substantiated in the practitioner literature as well. Kesmodel (2008) reports in the Wall Street Journal that even dominant firms find it difficult to structure effective incentive portfolios with the resellers of their products. These and other findings...
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...Economic and Financial Outlook in 2015 External Shocks Creating New Opportunities FSDH Research January 2015 Economic and Financial Outlook: 2015-2019 1.0 Global Economic Growth: According to the World Economic Outlook (WEO) Update of the International Monetary Fund (IMF), January 2015 Edition, the global economic growth is forecast at 3.5% and 3.7%, for 2015 and 2016 respectively. The forecasts were reviewed downward by 0.3% The IMF forecasts a global economic growth of 3.5% and 3.7% for 2015 and 2016 respectively. relative to the October 2014 WEO. The revisions reflect a reassessment of prospects in China, Russia, the Euro-area, and Japan as well as the weaker activity in some major oil exporters because of the sharp drop in oil prices. The United States (U.S.) is the only major economy for which growth projections have been raised upward. The IMF added that the global growth will receive a boost from the lower oil prices. However, this boost is projected to be more than offset by the negative factors, including investment weakness as adjustment to diminished expectations about medium-term growth continues in many advanced and emerging market economies. The U.S. is expected to grow by 3.6% in 2015 and slow down to 3.3% in 2016, supported by domestic demand due to lower oil prices, more moderate fiscal adjustment, and The U.S. is expected to grow by 3.6% in 2015 and slow down to 3.3% in 2016. continued support from an accommodative monetary policy stance...
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...2013 Shared Services Centers Investment Potential of Macedonia, Serbia and Albania Apostoloski Nenad EMBA 2013 3/28/2013 Contents EXECUTIVE SUMMARY .................................................................................................................................. 3 INTRODUCTION ............................................................................................................................................. 4 METHODOLOGY ............................................................................................................................................ 5 CURRENT LEVEL OF DEVELOPMENT ............................................................................................................. 6 MACEDONIA .............................................................................................................................................. 7 SERBIA ....................................................................................................................................................... 7 ALBANIA .................................................................................................................................................... 8 MARKET POTENTIAL ................................................................................................................................... 10 . FACTORS OF COMPETITIVENESS ........................................................................................
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...Question 5: Critically evaluate the impact of globalisation on domestic business environment of India By Kru Question 5: Critically evaluate the impact of globalisation on domestic business environment of India Abstract This report will discuss the impact that India has had through globalisation, and how it has affected domestic business environment of India. The report will also include theories on globalisation and a PEST analysis showing the factors affecting economic growth on domestic business environments. And how the economy have been structured and adjustments for essential for growth of the economy. To improve India’s economy they would need to improve vastly on health care, because it is one of the main issues that are bring the economy down, as poverty is rising. They can do this by creating more jobs in the healthcare and working alongside with the government, to help with funding more. Another way is by investing money to improve water supplies. This can have a positive impact on India, as it would provide citizen with better living standards and therefore would have a positive effect on business and globally. By letting other nations to help with the water system, can have a long term impact on globalisation on domestic business environment of India, because there would have built a positive relationship with other nation. 1. Introduction In today’s tuff economical crisis...
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...001 Economic Liberalization, the Changing Role of the State and ‘‘Wagner’s Law’’: China’s Development Experience since 1978 DAMIAN TOBIN * CeFiMS, SOAS, University of London, UK Summary. — The paper applies Wagner’s Law of increasing state activity to illustrate the changing function of the state in China as a consequence of economic liberalization. Wagner’s Law describes the association between increasing national wealth in progressive states and the rise in state activity and expenditure. This indicates that the causes of bureaucratic expansion are to be sought, not just in terms of political pressures, but the interplay between political considerations and the economic necessities, resulting from the emergence of new property rights. A simple illustrative model is developed to measure the effects of increasing national wealth and the growth of the public sector. This suggests that the patterns of economic development observed by Wagner in 19th century Europe are not unlike those observed in China today. Ó 2005 Elsevier Ltd. All rights reserved. Key words — Asia, China, economic growth, public sector 1. INTRODUCTION The relationship between economic growth and the size of the state sector has long been a topic of interest for public policy practitioners and academics alike. Throughout history, the role of the state has been critical in determining particular economic outcomes. Research in this area has in general focused on how economic policies impact upon economic growth...
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...MRC 1513 ECONOMIC ANALYSIS WORKSHOP 1A Question 1: Although managerial economics is based primarily on microeconomics, explain why it is also important for managers to understand macroeconomics. Answer: Felda Technoplant Sdn Bhd is a subsidiary of Felda Holdings Berhad and was established on 22 June 2005 as a management agency for FELDA settler plantations. Among its main activities is replanting estates, managing immature and mature plantations as well as providing oil palm planting materials for estate replanting purposes. Almost 90% of the replanting area is planted with oil palm and the remaining planted with rubber. Thus we are subject to risks inherent to the plantation industry. These include damage from pests, outbreak of diseases such as ganoderma, fire or natural disasters, unscheduled interruption in palm oil milling and rubber tapping operation, climate condition, downturns in the global, regional and national economies, changes in law and tax regulations affecting palm oil and rubber and the competitive needs of labour with other industry. Movement of commodity price in local and international market influence the price of Fresh Fruit Bunch (FFB) and rubber. This will affect managerial decision whether continuing the normal field operations or take certain mitigation action focusing only to harvesting work while other work activities such weeding and fertilizing being stop until the operational cost becomes more viable. As an example, in 2008 the FFB selling...
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...Set 105 Environmental Scanning/Industry Analysis – 1 1. What external environmental variables should be scanned? In conducting an external environmental scan, focus should be drawn to two environmental variables: • Societal environment (macro-environment) – This is the general environment in which the business organization operates. It is characterized by those variables on which the business has no control. It does not directly touch on the short run activities of the firm but can, and often do influence its long-run decisions. • Task environment (micro-environment) – This is the industry within which the business organization operates. This environment is characterized by various players and stakeholders who affect a business enterprise, and are also affected by it. 2. According to Porter, what determines the level of competitive intensity in an industry? According to Porter, the level of competitive intensity is determined by 5 basic competitive forces namely: (1) Threat of new entrants to a market (2) Bargaining power of suppliers (3) Bargaining power of customers or buyers (4) Threat of substitute products and (5) Degree of competitive rivalry 3. What should be scanned in the task environment? There should be an analysis of relevant elements in the task environment such as: (1) Competitors (2) Suppliers (3) Regulators (4) Strategic Partners (5) Labor and (6) Customers. 4. Discuss how a development in a corporation’s societal environment can...
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