ECONOMIC RESEARCH / ANALYSIS GLOBAL ECONOMY DOMESTIC ECONOMY ECONOMIC SECTOR INDUSTRY COMPANY

Economic Sector: consists of group of industries that are engaged in related activities. For example consumer goods define an electronic sector consisting of firms those manufacture goods for consumers. Within each sector there are many industries. Industries are defined by the nature of the goods or services that is provided by the businesses. They all affect each other. Moving down in the order, almost all businesses have a direct exposure to the national economy. You should be aware of the expected economic growth, political risks and currency risks in the economy in which the company is operating. To understand overall state of the domestic economy and its future prospects, it is necessary to understand and review following economic information: a. Gross domestic product: it measures the market value of final goods and services produced domestically. b. National income. c. Economic growth rate. d. Stock market performance both in general and specific to industry in which business competes. e. Interest rates: it reflects cost of borrowing money. f. Inflation: it can be defined as general risk in the price level. g. Foreign exchange rates: it describes how many units of a currency can be bought with a unit of another currency. h. Oil prices. i. Other key commodity prices like Gold, Silver, food grains etc. j. Hedging. k. Change in government fiscal policy. l. Change in import/export tariffs and foreign trade relations with respect to the products of the business. Ministry of statistics and program implementation: the website of ministry of statistics and program implementation (MOSPI) is excellent starting point for collection of relevant economic data.