Macro Economic

Macro Economic
Environment Of Global
Environment Of Global
Business
Business
The New World Order
The New World Order

Economic groupings replace military

Economic groupings replace military
groupings
groupings

Business leads the politics

Business leads the politics

Enter the globalization and WTO regime

Enter the globalization and WTO regime

Size of economy matters over military

Size of economy matters over military
might
might
The Ranking of the Big Economies
The Ranking of the Big Economies
GDP Basis GDP Basis
1. 1. USA USA
2. 2. J APAN J APAN
3. 3. GERMANY GERMANY
4. 4. UK UK
5. 5. FRANCE FRANCE
6. 6. ITALY ITALY
7. 7. CHINA CHINA
8. 8. SPAIN SPAIN
9. 9. CANADA CANADA
10. 10. INDIA INDIA
GDP on PPP basis GDP on PPP basis
1. 1. USA USA
2. 2. CHINA CHINA
3. 3. J APAN J APAN
4. 4. INDIA INDIA
5. 5. GERMANY GERMANY
6. 6. FRANCE FRANCE
7. 7. UK UK
8. 8. ITALY ITALY
9. 9. BRAZIL BRAZIL
10. 10. RUSSIA RUSSIA
Size of An Economy
Size of An Economy
How do we measure the size of an economy? How do we measure the size of an economy?
GDP GDP
What is GDP? What is GDP?
Flow of goods and services produced in a country in one Flow of goods and services produced in a country in one
year. year.
Other related terms Other related terms-- --
NDP= GDP NDP= GDP - - Depreciation Depreciation
GNP= GDP + Income from abroad GNP= GDP + Income from abroad
NNP= GNP NNP= GNP - - Depreciation Depreciation
Indicators of Economic Health
Indicators of Economic Health

GDP on PPP basis

GDP on PPP basis

Per Capita Income

Per Capita Income

Human Development Index

Human Development Index

Level of Employment
Level of Employment

B.P.L. Population
B.P.L. Population
Risk In International Business
Risk In International Business

Regressive vs. Progressive policies

Regressive vs. Progressive policies

Political stability
Political stability

Confiscation
Confiscation

Domestication
Domestication
Ratings
Ratings

What is Rating?
What is Rating?
Comparative ranking of countries, companies by
Comparative ranking of countries, companies by
independent 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.

TYPES
TYPES
----
----
1
1
-
-
Sovereign Ratings
Sovereign Ratings
2
2
-
-
Economic Ratings
Economic Ratings
RATINGS
RATINGS

contd.
contd.
KEY PARAMETERS
KEY PARAMETERS
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---

Size of economy
Size of economy

Growth Rate
Growth Rate

Current Account Deficit

Current Account Deficit

Debt Service Ratio

Debt Service Ratio

Balance of trade
Balance of trade

GDP/ Fiscal Deficit Ratio

GDP/ Fiscal Deficit Ratio
Ratings Of Companies
Ratings Of Companies

Size of the company

Size of the company

Top line growth rate

Top line growth rate

Bottom line / Top line Ratio

Bottom line / Top line Ratio

Industry
Industry

s life cycle
s life cycle

Company
Company

s goodwill
s goodwill

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

R.O.C.
R.O.C.
Monetory
Monetory
Policy
Policy

Who decides this ?

Who decides this ?

Central Bank Of a Country

Central Bank Of a Country

What it aims to achieve?

What it aims to achieve?

Monetory
Monetory
policy regulates the money
policy regulates the money
supply in an economy.
supply in an economy.