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Macro & Micro Indicators of Business Environment

Macro & Micro Indicators of Business Environment

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Published by Ravi Mishra

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Published by: Ravi Mishra on Nov 08, 2010
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04/02/2013

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Macro & Micro Indicators of Business Environment

GROWTH INDICATORS      National income Sector wise share Industrial production Agriculture production Inflation rate .

.       Capital Investment Retail trade turnover Industrial producers price index Exchange rate Employment Foreign trade .GROWTH INDICATORS.

NATIONAL INCOME Versions of national income:  GDP  GNP  NDP  NNP .Growth indicators..

. irrespective of the ownership of resources. (National income) GDP (Gross Domestic Product): Value of all the final goods & services produced within the country’s geographical territory.Growth Indicators..

Growth Indicators cont... irrespective of the place of production. . (National income) GNP (Gross National Product) Income produced through the country’s owned resources.

NFIA (Net Factor Income from Abroad) .Growth Indicators cont.. (National income) GNP= GDP.

(National income) NDP (Net domestic product) Total value of production minus the value of amount of capital used in producing that output. .Growth Indicators...

(National income) NDP = GDP .Growth Indicators..Depreciation .

.Growth Indicators cont. (National income) NNP (Net National Product) It is the total income produced through the country’s owned resources minus the value of capital consumed in generating that income .

(National income) NNP = GNP ..Depreciation .Growth Indicators cont.

Growth indicators. Sector wise Shares In Industrialized countries service sector makes the maximum contribution... (generally exceeding 60%) .

.. Agricultural output The level of agricultural output is a key indicator of macro economic analysis. . Industrial Production Contribution by different industries in total industrial production..Growth indicators.

. Inflation A process in which the general price index records a sustained & appreciable increase over a period of time..Growth indicators.

.Inflation. Type of inflation CREEPING WALKING RUNNING GALLOPING HYPER Inflation rate (%) 2-5 5-10 10-20 20-50 50 & Above .

Growth indicators.. .. Retail trade turnover: Revenue of retail trade.. Capital investment: Domestic & foreign investment.

roads. Infrastructure Power.. Exchange rate The price of one unit of a currency in terms of the number of units of another currency. telecommunications.. railways.Growth indicators. . cargo handling etc.

Growth indicators.. . Employment Rate of employment & quality of human resources Foreign trade Foreign trade as a percentage of national income is commonly used as a measure of a country’s openness to globalization.

FOREX RESERVES Consists of foreign currency assets..Growth indicators. gold holdings of central banks & SDR’s. Forex reserves indicate the ability of a country to:  Pay of imports  Discharge external liabilities  Raise fresh borrowings ..

Measuring Development. . HDI (Human Development Index): Devised by the UNDP to measure the economic achievements of the nation in combining economic growth & social welfare..

. Based on 3 major factors: 1) Life expectancy at birth 2) Levels of educational attainment 3) Gross domestic product per capita HDI is essentially a score between 0 & 1. .Human development index.

. GDI (Gender development index) GEM (Gender empowerment measure) HPI (Human poverty index) .Development indicators.

Indicators of globalization      Foreign Direct Investment Foreign portfolio investment Trade Global governance by international organizations like WTO Business restructuring    Flexibility Closeness to markets Diversification .

Germany. Japan. the BRICs ( Brazil. (U.Goldman Sachs Economic Research Report  By 2050. France and Italy) . India.S. U. Russia. dollar terms than the G-6.. China) economies together could be larger in U.K.S.

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