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MGMT1101

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by

Darius Lui

on 25 August 2011

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Transcript of MGMT1101

GDP, GNI, inflation, balance of payment are some measures which could be used to assess the economic environment. How useful are they in giving a comprehensive picture of the economic environment when making decisions about international business?

By Darius Lui and Sharon Lee Inflation Gross Domestic Product Gross National Income Refers to the market value of all final goods and services produced in a country in a given period Comprises the value of all products and services generated within a country in one year (GDP), together with its net income received from other countries is important How is it calculated? Consumption
+
Investment
+
Government Spending
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(Export – Import) Which 3 countries had the highest GDP? It is calculated by:

GDP
+
Income received from other countries
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Payments made to other countries Balance of Payments Highest GDP Per Capita (USD) in 2009
1. Liechtenstein 122,100
2. Qatar 121,600
3. Luxembourg 79,500
4. Bermuda 69,900
5. Norway 57,600

Source: Information Please Database, 2011 Pearson Education, Inc. All rights reserved Lowest GDP per Capita (USD) in 2009
1. Congo 300
Burundi 300
3. Liberia 500
4. Somalia 600
5. Niger 700

Source: Information Please Database, 2011 Pearson Education, Inc. All rights reserved 2010 Top 5 Countries by GNI (nominal, Atlas method) in US$

1 United States 14,600,828
2 China 5,700,018
3 Japan 5,369,116
4 Germany 3,537,180
5 France 2,749,821

Source: World Bank 2009 Top 5 GNI per capita countries

1 Monaco 197,460
2 Liechtenstein 136,540
3 Norway 84,590
4 Luxembourg 76,880
5 Switzerland 65,380

Source: World Bank 2009 Bottom 5 GNI per capita countries

1 Burundi 150
2 Congo 160
3 Liberia 190
4 Eritrea 300
5 Malawi 310

Source: World Bank
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