...and interpretation of a nation’s economic, social and political environment. The analysis offers a comprehensive overview of a country Objectives To identify the common factors used by MNCs to measure a country’s political risk and financial risk; To explain the techniques used to measure country risk; and To explain how MNCs use the assessment of country risk when making financial decisions Country analysis is useful for: * Investors in the financial market * Companies intending to set up a subsidiary * Companies wishing to enter a new market * People wishing to reside in the country Factors Considered in a Country Analysis A country analysis is often conducted through country reports researched by professional government or independent firms, such as the Economist Intelligence Unit, World Bank and Organization for Economic Cooperation and Development (OECD). Some of the data points considered in a country analysis are: Economic Indicators: Indicators such as gross domestic product (GDP), consumer price index (CPI), inflation rate and producer price index (PPI) help in gauging a country’s economic health. High GDP growth, low inflation and high CPI are favorable for companies and investors. These indicators also reflect job availability and standard of living in the country. Government Policy: Governments often introduce policies and programs to promote the growth of certain industries. Favorable government policies (such as subsidies and tax rebates)...
Words: 9826 - Pages: 40
...same currency. As foreign exchange rates are affected by a number of factors, the equilibrium exchange rate in turn, are also influenced by its supply and demand. Hence equilibrium is achieved when a currency's demand is equal to its supply. Analysing the equilibrium levels of the exchange rates plays a crucial role in the policy making decisions of the policymakers. Exchange rates have a major influence on the prices faced by the consumers and producers throughout the world and the consequences of misalignments can be extremely costly to the nations involved. Therefore economists have developed number of methodologies for calculating the exchange rates. Each methodology involves conceptual explanations and/or imprecise estimates of key parameters and different methodologies which generate different calculated values for equilibrium exchange rates. This makes it difficult to have much confidence in estimates derived from any single methodology on its own. By the same token, it suggests that, ideally, policymakers should inform their judgments through the application of several different methodologies. Various long run models like PEER, APEER, Natrex and short run models like BEER and CHEER are used to calculate the equilibrium exchange rate. The overshooting model is used to explain why the exchange rates with huge variance. The paper explains the basic concept of equilibrium exchange rate in international foreign currency exchange...
Words: 7425 - Pages: 30
...International Macroeconomics1 Stephanie Schmitt-Groh´2 e April 26, 2013 Mart´ Uribe3 ın 1 The seeds for this manuscript were lecture notes taken by Alberto Ramos in a course on International Finance that Mike Woodford taught at the University of Chicago in the Winter of 1994. 2 Columbia University. E-mail: stephanie.schmittgrohe@columbia.edu. 3 Columbia University. E-mail: martin.uribe@columbia.edu. ii Contents 1 Global Imbalances 1.1 Balance-of-Payments Accounting . . . . . . . . . . . . . . . . 1.2 The Current Account . . . . . . . . . . . . . . . . . . . . . . 1 1 5 1.3 The Current Account and the Net International Investment Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 1.4 Valuation Changes and the Net International Investment Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 1.5 The Negative-NIIP-Positive-NII Paradox: Dark Matter? 1.5.1 1.5.2 . . 20 Dark Matter . . . . . . . . . . . . . . . . . . . . . . . 22 Return Differentials . . . . . . . . . . . . . . . . . . . 23 1.6 Who Lends and Who Borrows Around the World? . . . . . . 26 1.7 Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 35 2 Current Account Sustainability 2.1 Can a Country Run a Perpetual Trade Balance Deficit? . . . 35 2.2 Can a Country Run a Perpetual Current Account Deficit? . 39 2.3 Savings, Investment, and the Current Account . . . . . . . . 41 iii iv 2.3.1 CONTENTS Current Account Deficits...
Words: 77395 - Pages: 310
...Company Analysis The Walt Disney Company has been in the entertainment business for more than 80 years and is well recognized around the world as one that delivers an exceptional entertainment experience. Walt Disney Company strengths can be grouped in three main categories: 1) diversified distribution channels, 2) strong brand portfolio, and 3) financial strength. Despite Walt Disney’s success, the company has some declining segments in their domestic business. In addition, Disney’s biggest challenge in creating theme parks and resorts abroad is their inability to tailor the attractions to the local market while maintaining Disney’s brand image. In the past, international theme park implementations, Disney had failed to adapt their strategies to the local market. Therefore, Disney’s weaknesses can also be also grouped in three categories: 1) declining segments, 2) difficulty adapting to other cultures, and 3) weak managerial skills in terms of international operations. Diversified Distribution Channels Disney has a strong diversified distribution channel. The company operates by four strategic business units (SBU): 1) Media Networks and Broadcasting, 2) Parks and Resorts, 3) Studio Entertainment, and 4) Disney Consumer Products (Banton, 2007, p.31). The Media Network segment comprises of all broadcast television network, television production and distribution operations, television stations, cable networks, broadcast radio, publishing and digital operations (“Fiscal Year...
Words: 10501 - Pages: 43
...of time it has adopted a wide variety of economic policies, many of which had long term effects (both positive and negative impacts) on the lives of its people. The crucial policies that the government of the country adopted over time are – Fiscal policy, Monetary policy, Income distribution strategy, Government policy, Tax policy, Trade policy, etc. The impacts of these policies have had widespread effects on various macroeconomic variables of the country. Various surveys and reports show that the economic growth has not been as expected. Growth of the variables has gone at a slow pace. GDP increases over time but with a high fluctuating rate. Rate of educated people, standard of health care, standard of living have improved but it is still poor in comparison with other countries of the region. It is one of the countries whose economy is based on agriculture. A huge portion of the country’s GDP comes from agriculture. But yet it has some major constraints due to what it is still facing some problems and fails to have that much development. Natural calamities are a fact to mention as one of the major constraints in way of agricultural development. It is natural that limitations or constraints appear in the way of development. But achieving success needs to address these constraints properly and the way of their elimination. The main constraints...
Words: 23470 - Pages: 94
...NBER WORKING PAPER SERIES ACCOUNTING FOR GROWTH: COMPARING CHINA AND INDIA Barry Bosworth Susan M. Collins Working Paper 12943 http://www.nber.org/papers/w12943 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 February 2007 We are very indebted to Anthony Liu and Gabriel Chodorow-Reich for extensive assistance in understanding the data and constructing the growth accounts. This paper was presented at the annual conference of the Tokyo Club Foundation for Global Studies, December 6-7, 2006. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research. © 2007 by Barry Bosworth and Susan M. Collins. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Accounting for Growth: Comparing China and India Barry Bosworth and Susan M. Collins NBER Working Paper No. 12943 February 2007 JEL No. F43,O1,O4 ABSTRACT We compare the recent economic performances of China and India using a simple growth accounting framework that produces estimates of the contribution of labor, capital, education, and total factor productivity for the three sectors of agriculture, industry, and services as well as for the aggregate economy. Our analysis incorporates recent data revisions in both countries and includes extensive discussion of the underlying data...
Words: 9427 - Pages: 38
...Economic Outlook, Prospects, and Policy Challenges 01 CHAPTER This year’s Economic Survey comes at a time of unusual volatility in the international economic environment. Markets have begun to swing on fears that the global recovery may be faltering, while risks of extreme events are rising. Amidst this gloomy landscape, India stands out as a haven of stability and an outpost of opportunity. Its macro-economy is stable, founded on the government’s commitment to fiscal consolidation and low inflation. Its economic growth is amongst the highest in the world, helped by a reorientation of government spending toward needed public infrastructure. These achievements are remarkable not least because they have been accomplished in the face of global headwinds and a second successive season of poor rainfall. The task now is to sustain them in an even more difficult global environment. This will require careful economic management. As regards monetary and liquidity policy, the benign outlook for inflation, widening output gaps, the uncertainty about the growth outlook and the over-indebtedness of the corporate sector all imply that there is room for easing. Fiscal consolidation continues to be vital, and will need to maintain credibility and reduce debt, in an uncertain global environment, while sustaining growth. On the government’s “reformto-transform” agenda, a series of measures, each incremental but collectively meaningful have been enacted. There have also...
Words: 64752 - Pages: 260
...China’s Economic Growth 1978-2025: What We Know Today about China’s Economic Growth Tomorrow Views of the future China vary widely. While some believe that the collapse of China is inevitable, others see the emergence of a new economic superpower that increasingly poses a threat to the U.S. This paper examines the economic growth prospects of China over the next two decades. Extrapolating past real GDP growth rates into the future, the size of the Chinese economy surpasses that of the U.S. in purchasing power terms around 2010. Such extrapolations can be supported by standard growth patterns identified in economic development and trade theories (structural change, catching up, and factor price equalization). They can also be supported by an explanation of China’s past GDP growth through growth of various labor variables, with a subsequent derivation of future GDP growth based on reliable information about future labor quantity and quality. China’s demographic changes and economic growth have a number of implications for China and the world. JEL codes: O1 (O10, O11), O4 (O40, O47), O53, J11, O3, I21 Keywords: economic growth, growth accounting, growth forecasts, development theories, human capital formation, education (all: China) Carsten A. Holz Social Science Division Hong Kong University of Science & Technology Clear Water Bay Kowloon Hong Kong E-mail: socholz@ust.hk Tel/Fax: +852 2719-8557 26 December 2006 (Incorporates minor revisions of the 3 July 2005 and 2 November...
Words: 22245 - Pages: 89
...countries to interconnected counties 2. Status ( where we are + measurements) Wave of globalization after WOII * 50 – 60 domination of the US (“free market wave”) The trade rules are set by the US * Now domination China, Asia US domination is gone, different countries dominate the world The demographics of the world economy has changed How do you measure globalization? * University of zurich * http://globalization.kof.ethz.ch/ The KOF Index of Globalization measures the three main dimensions of globalization: 1. Economic globalization * Actual flows (37%) * Trade (percentage of GDP) * Foreign direct investement, flows (percentage of GDP) * Portfolio investement (percentage of GDP) * Income payments of foreign nationals (percentage of GDP) * Restrictions * Hidden import barriers * Mean tariff rate * Taxes on international trade (percentage of current revenue) 2. Social (39%) * Data on personal contact * Data on information flows 3. political. (25%) * Embassieses 3. Types of globalization 1. Globalization of products 2. Globalization of markets Active vs passive globalization Globalization can also be passive. Companies that do not want to globalize could also be affected by globalization. Companies might lose everything if they do not globalize 4. What are the drivers of globalization *...
Words: 10538 - Pages: 43
...Macroeconomic Theory Macroeconomic Theory A Dynamic General Equilibrium Approach Michael Wickens Princeton University Press Princeton and Oxford Copyright © 2008 by Princeton University Press Published by Princeton University Press, 41 William Street, Princeton, New Jersey 08540 In the United Kingdom: Princeton University Press, 3 Market Place, Woodstock, Oxfordshire OX20 1SY All Rights Reserved ? A catalogue record for this book is available from the British Library This book has been composed in Times and typeset by T&T Productions Ltd, London Printed on acid-free paper press.princeton.edu Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 ∞ Contents Preface 1 Introduction 1.1 Dynamic General Equilibrium versus Traditional Macroeconomics 1.2 Traditional Macroeconomics 1.3 Dynamic General Equilibrium Macroeconomics 1.4 This Book The Centralized Economy 2.1 Introduction 2.2 The Basic Dynamic General Equilibrium Closed Economy 2.3 Golden Rule Solution 2.3.1 The Steady State 2.3.2 The Dynamics of the Golden Rule 2.4 Optimal Solution 2.4.1 Derivation of the Fundamental Euler Equation 2.4.2 Interpretation of the Euler Equation 2.4.3 Intertemporal Production Possibility Frontier 2.4.4 Graphical Representation of the Solution 2.4.5 Static Equilibrium Solution 2.4.6 Dynamics of the Optimal Solution 2.4.7 Algebraic Analysis of the Saddlepath Dynamics 2.5 Real-Business-Cycle Dynamics 2.5.1 The Business Cycle 2.5.2 Permanent Technology Shocks 2.5.3 Temporary...
Words: 188884 - Pages: 756
...and assets could escape Japan’s fate but warn that Euro area stagnation would have a greater impact on the global economy than did Japan’s. Inside Interview with Masaaki Shirakawa Former Governor of the Bank of Japan 4 Headed for Japanese-style deflation? Silvia Ardagna, GS Rates Strategy 6 Interview with Huw Pill GS Chief European Economist 8 Euro area stagnation and its discontents Jose Ursua, GS Global Economics Research 10 Interview with Paul De Grauwe Professor, London School of Economics 14 European equities: a different story Sharon Bell, GS Portfolio Strategy 16 A look back at Japan’s deflation drivers Naohiko Baba, GS Japan Economics 18 Source: www.istockphoto.com I don’t see why [sovereign QE] couldn’t be as effective [in the Euro area] as in the US and in the UK. But even full-blown QE would lose full effectiveness if fiscal policies don’t...
Words: 18121 - Pages: 73
...University Sciences-Po/Columbia University Princeton University Princeton University University of Warwick Harvard University London School of Economics University of Chicago Sciences Po Rapporteurs Jean-Etienne CHAPRON General Rapporteur Didier BLANCHET Jacques LE CACHEUX Marco MIRA D’ERCOLE Pierre-Alain PIONNIER Laurence RIOUX Paul SCHREYER Xavier TIMBEAU Vincent MARCUS INSEE INSEE OFCE OCDE INSEE INSEE/CREST OCDE OFCE INSEE Table of contents EXECUTIVE SUMMARY I. SHORT NARRATIVE ON THE CONTENT OF THE REPORT Chapter 1: Classical GDP Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Chapter 2: Quality of Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Chapter 3: Sustainable Development and Environment . . . . . . . . . . . . . . . . . . . . . 61 II. SUBSTANTIAL ARGUMENTS PRESENTED IN THE REPORT Chapter 1: Classical GDP Issues . . . . . . . . . . . . . . . . . . . . . . ....
Words: 147885 - Pages: 592
...UNITED NATIONS ENVIRONMENT PROGRAMME UNITED NATIONS ENVIRONMENT PROGRAMME DECOUPLING NATURAL RESOURCE USE AND ENVIRONMENTAL IMPACTS FROM ECONOMIC GROWTH Acknowledgements Editor: International Resource Panel Working Group on Decoupling Lead authors: Marina Fischer-Kowalski, Institute of Social Ecology Vienna, Alpen-Adria University, Austria, with the support of the Lebensministerium, Austria and Mark Swilling, Sustainability Institute, School of Public Leadership, University of Stellenbosch, South Africa Contributing authors: Ernst Ulrich von Weizsäcker (Chairperson of the Decoupling Working Group), Yong Ren, Yuichi Moriguchi, Wendy Crane, Fridolin Krausmann, Nina Eisenmenger, Stefan Giljum, Peter Hennicke, Rene Kemp, Paty Romero Lankao, Anna Bella Siriban Manalang, Sebastian Sewerin Jeff McNeely provided editorial support for the full report and summary brochure. The report went through several rounds of peer-review coordinated in an efficient and constructive way by Jeff McNeely together with the International Resource Panel Secretariat. Valuable comments were received from several anonymous reviewers in this process. The preparation of this report also benefited from discussions with many colleagues at various meetings. Special thanks go to Ernst Ulrich von Weizsäcker and Ashok Khosla as Co-Chairs of the International Resource Panel, the members of the International Resource Panel and its Steering Committee for their dedication and commitment. Janet...
Words: 54615 - Pages: 219
...BANGLADESH TRADE POLICY SUPPORT PROGRAMME Comprehensive Trade Policy Of Bangladesh - Draft Final, 15.09.14 - Trade Policy Support Programme (TPSP) Project Task Force – HAK Tower (2nd floor) 3/C-1 Karwan Bazar, Dhaka 1215, Bangladesh 0 BANGLADESH TRADE POLICY SUPPORT PROGRAMME TABLE OF CONTENTS List of Abbreviations ........................................................................................................................ 6 Preamble ....................................................................................................................................... 10 Chapter 1: Rationale, Objectives and Constituents ..................................................................... 11 1.1 Rationale .............................................................................................................................. 11 1.2 Objectives ............................................................................................................................ 14 1.3 Constituents............................................................................................................... 16 1.3.1 Trade in Goods....................................................................................................... 16 1.3.2 Trade in Services and Investment.......................................................................... 17 1.3.3 Behind the Border Policies ....................................................................................
Words: 87571 - Pages: 351
...Salvatore fdedi.tex V2 - 11/10/2012 9:37 A.M. Page iv International Economics Eleventh Edition Dominick Salvatore Fordham University VICE PRESIDENT & EXECUTIVE PUBLISHER EXECUTIVE EDITOR OPERATIONS MANAGER CONTENT EDITOR SENIOR EDITORIAL ASSISTANT CONTENT MANAGER SENIOR PRODUCTION EDITOR ASSOCIATE DIRECTOR OF MARKETING MARKETING MANAGER LEAD PRODUCT DESIGNER SENIOR MEDIA SPECIALIST DESIGN DIRECTOR SENIOR DESIGNER COVER PHOTO CREDIT George Hoffman Joel Hollenbeck Yana Mermel Jennifer Manias Erica Horowitz Lucille Buonocore Sujin Hong Amy Scholz Jesse Cruz Allison Morris Elena Santa Maria Harry Nolan Madelyn Lesure ©lightkey/iStockphoto This book was set in 10/12 Times Roman by Laserwords and printed and bound by R. R. Donnelley-JC. The cover was printed by R. R. Donnelley-JC. Copyright © 2013, 2010, 2007, 2004 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc. 222 Rosewood Drive, Danvers, MA 01923, website www.copyright.com. Requests to the Publisher for permission should be addressed to...
Words: 236413 - Pages: 946
