Global Business Economics and Finance
A. Project question
A major multinational corporation has appointed you as an economic advisor. You are requested to compile a report regarding the macroeconomic environment in two countries where the firm operates and explain how it might affect the company’s economic activity.
B. Project specifications
1. You may choose to focus your analysis on any existing firm with international activity that can be of different types in the two countries.
one country from List 1 and one country from List 2.
List 1 List 2
Germany China
United States Brazil
United Kingdom Russia
Japan Mexico
France India
2. Your report must include:
- A brief description of the company and the product/market it operates in for both countries.
- An analysis of the market structure in which your company operates for the two countries.
- A comparative analysis of all major macroeconomic indicators (see below, excluding 5 and 8) for the two countries and their overall impact on firm’s economic activity.
Macroeconomic indicators (recommend that you use the IMF database to collect your data for most of these macroeconomic indicators.) to be analysed (the last available 10 years):
1. GDP growth rate
2. GDP per capita at constant prices
3. Inflation rate (CPI)
4. Unemployment rate (ILO measure)
5. Interest rate (Monetary Policy Rate)
6. General government balances (% of GDP)
7. Balance of Payments (% of GDP)
8. Exchange rates (National Currency/USD OR National Currency/Euro)
- An analysis of the monetary and fiscal policy (instruments) for the two countries and their impact on the firm’s economic activity. You must include here an analysis of the interest rates (Data available from the relevant Central Banks websites)
- An analysis of the foreign trade policy instruments (international trade agreements) for the two countries and their impact on firm’s economic activity. You should include here an analysis of the exchange rates.