1 / 13

The Global Economic Environment

The Global Economic Environment. The Coming Boom. 1974- 1993. 1994- 2003. Wealthy Industrial Countries 2.9 2.7 Developing Countries 3.0 4.8 East Asia 7.5 7.6 South Asia 4.8 5.3 Latin America 2.6 3.4 Eastern Europe* 1.0 2.7 Sub-Saharan Africa 2.0 3.9

kylie-bauer
Download Presentation

The Global Economic Environment

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Global Economic Environment The Coming Boom 1974- 1993 1994- 2003 Wealthy Industrial Countries 2.9 2.7 Developing Countries 3.0 4.8 East Asia 7.5 7.6 South Asia 4.8 5.3 Latin America 2.6 3.4 Eastern Europe* 1.0 2.7 Sub-Saharan Africa 2.0 3.9 Middle East & North Africa 1.2 3.8 *Includes former Soviet Union Real GDP growth, annual average % Source: World Bank, The Economist

  2. Economic Systems • Capitalist Market allocation of resources • Socialist Command allocation of resources • Mixed Reality-a variation in between.

  3. Economic Freedom An index with consideration of: • trade policy • taxation policy • government consumption of economic output • monetary policy • capital flows and foreign investment • banking policy • wage and price controls • property rights • regulations • the black market.

  4. Country Income Segmentation High Income (Advanced Countries) - Triad - Others Upper Middle Income (NIC's) Lower Middle Income (DC's) Low Income (LDC's) + $9,385 + $3,036 + $765 < $765

  5. National Production Gross National Product (GNP) Gross Domestic Product (GDP)

  6. Drawbacks of GNP and GDP Uncounted Transactions Question of Growth Problem of Averages Pitfalls of Comparison

  7. Purchasing Power Parity Estimate of GNP Per Capita at PPP (Selected Countries) PPP Estimate of GNP Per Capita (U.S. = 100) Selected Country GNP Per Capita United States Switzerland Japan Canada Russia Mexico Nigeria India 26,980 40,630 39,640 19,380 2,240 3,320 260 340 26,980 25,860 22,110 21,130 4,480 6,400 1,220 1,400

  8. The Expanding Triad GNP Per Capita GNP (billion) Population (million) 1997 figures N. American Free Trade Area $ 8,354 393 $ 21,248 30% 7% U.S., Canada, Mexico % of World: Japan and the Tigers $ 5,638 $ 19,831 284 21% 5% Hong Kong, Japan, Malaysia, Singapore, South Korea, Taiwan, Thailand % of World: European Economic Area $ 8,293 $ 22,134 374 30% 7% % of World: EU: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, U.K. EFTA: Iceland, Switzerland

  9. Big Emerging Markets: 1997 % of World Population % of World GNP % of World PPP Market GNP (billion) GNP Per Capita BEM (Total) $4,248 $1,388 15 29 52 CEA (Total) 1,318 1,046 5 12 22 China 890 723 3 11 21 Taiwan 268 12,263 1 1 <1 Hong Kong 160 25,225 1 <1 <1 Brazil 590 3,591 2 3 3 Korea, Rep. 512 11,218 2 2 1 India 352 365 1 4 17 Mexico 318 3,323 1 2 2 Russian Federation 301 2,018 1 2 3 Argentina 297 8,336 1 1 1 Turkey 184 2,896 1 1 1 South Africa 134 3,096 1 1 1 Indonesia 133 667 1 2 3 Poland 108 2,770 <1 1 1

  10. Big Emerging Markets: 2010 % of World Population % of World GNP % of World PPP Market GNP (billion) GNP Per Capita BEM (Total) $7,673 $2,082 19 35 51 CEA (Total) 2,724 1,853 7 17 21 China 1,952 1,357 5 15 20 Taiwan 512 21,115 1 1 <1 Hong Kong 259 34,837 1 <1 <1 Korea 925 18,212 2 2 1 Brazil 877 4,384 2 3 3 India 665 544 1 5 17 Mexico 545 4,389 1 2 2 Argentina 501 12,023 1 2 1 Russian Federation 466 2,976 1 2 2 Turkey 330 4,117 1 1 1 Indonesia 230 948 1 3 3 South Africa 208 3,679 1 1 1 Poland 201 4,864 1 1 1

  11. BOP (Balance of Payments) 1. Definition • Financial transaction statements between its residents and those of the rest of the world. 2. Double entry system + (inflow) • (outflow) Qs: What are the sources of inflow and outflow of income?

  12. BOP (cont’) • 3. Current Account vs. Capital Account • all international export and imports of goods and services, private gifts and public aid transactions between countries • A record of all long-term and short-term capital flows • 4. Trade Balance • The balance on current account

  13. Ex: U.S. BOP, 1994-1997 (US$B) Trade Deficit Reserve

More Related