Global Businessd

8/13/2019 Global Businessd

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Macro EconomicMacro Economic

Environment Of GlobalEnvironment Of GlobalBusinessBusiness


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The New World OrderThe New World Order

Economic groupings replace militaryEconomic groupings replace military

groupingsgroupings

Business leads the politicsBusiness leads the politics

Enter the globalization and WTO regimeEnter the globalization and WTO regime Size of economy matters over militarySize of economy matters over military

mightmight


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The Ranking of the Big EconomiesThe Ranking of the Big Economies

GDP BasisGDP Basis

1.1. USAUSA2.2. JAPANJAPAN

3.3. GERMANYGERMANY

4.4. UKUK

5.5. FRANCEFRANCE

6.6. ITALYITALY

7.7. CHINACHINA

8.8. SPAINSPAIN9.9. CANADACANADA

10.10. INDIAINDIA

GDP on PPP basisGDP on PPP basis

1.1. USAUSA2.2. CHINACHINA

3.3. JAPANJAPAN

4.4. INDIAINDIA

5.5. GERMANYGERMANY

6.6. FRANCEFRANCE

7.7. UKUK

8.8. ITALYITALY9.9. BRAZILBRAZIL

10.10. RUSSIARUSSIA


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Size of An EconomySize of An Economy How do we measure the size of an economy?How do we measure the size of an economy?

GDPGDP

What is GDP?What is GDP?

Flow of goods and services produced in a country in oneFlow of goods and services produced in a country in oneyear.year.

Other related termsOther related terms----

NDP= GDPNDP= GDP -- DepreciationDepreciation GNP= GDP + Income from abroadGNP= GDP + Income from abroad

NNP= GNPNNP= GNP -- DepreciationDepreciation


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Indicators of Economic HealthIndicators of Economic Health

GDP on PPP basisGDP on PPP basis

Per Capita IncomePer Capita Income

Human Development IndexHuman Development Index

Level of EmploymentLevel of Employment B.P.L. PopulationB.P.L. Population


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Risk In International BusinessRisk In International Business

Regressive vs. Progressive policiesRegressive vs. Progressive policies

Political stabilityPolitical stability

ConfiscationConfiscation

DomesticationDomestication


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RatingsRatings What is Rating?What is Rating?

Comparative ranking of countries, companies byComparative ranking of countries, companies byindependent agencies that reflects the promise/independent agencies that reflects the promise/risk involved in doing business with them.risk involved in doing business with them.

TYPESTYPES--------

11-- Sovereign RatingsSovereign Ratings

22-- Economic RatingsEconomic Ratings


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RATINGSRATINGS contd.contd.KEY PARAMETERSKEY PARAMETERS------

Size of economySize of economy

Growth RateGrowth Rate Current Account DeficitCurrent Account Deficit

Debt Service RatioDebt Service Ratio

Balance of tradeBalance of trade GDP/ Fiscal Deficit RatioGDP/ Fiscal Deficit Ratio


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Ratings Of CompaniesRatings Of Companies

Size of the companySize of the company

Top line growth rateTop line growth rate

Bottom line / Top line RatioBottom line / Top line Ratio

IndustryIndustrys life cycles life cycle CompanyCompanys goodwills goodwill

R.O.N.A.R.O.N.A. R.O.C.R.O.C.


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MonetoryMonetory PolicyPolicy

Who decides this ?Who decides this ?

Central Bank Of a CountryCentral Bank Of a Country

What it aims to achieve?What it aims to achieve? MonetoryMonetory policy regulates the moneypolicy regulates the money

supply in an economy.supply in an economy.

Documents

Global Businessd