The economic environment refers to all economic factors that influence business operations. It determines the inputs businesses need and the markets to sell finished goods. Key elements include gross national income, GDP, inflation, unemployment, poverty levels, and the type of economic system - whether it is a market, command, or mixed economy. Managers must assess the economic environment to make investment and strategic decisions that account for local conditions and predict future performance.
Balance of Payment Disequilibrium and CausesNeema Gladys
1.Balance of Payment
The balance of payment of a country is a systematic accounting record of all economic transactions during a given period of time between the residents of the country and residents of foreign countries.
2.Componets of BOP
Current Account
It includes imports and exports of goods and services and unilateral transfer of goods and services.
Capital Account
Under this are grouped transactions leading to changes in foreign assets and liabilities of the country.
3. Accounting Treatment of Items (Debit and Credit Items)
Any item which gives rise to a sale of foreign exchange (an inflow) is recorded as a credit item (+) in the accounts e.g. export of goods and services
Any item which gives rise to the purchase of foreign exchange (an outflow) is recorded as a debit item (-) in the accounts e.g imports of goods and services.
4. BOP Disequilibrium
BOP is a double entry accounting record, then apart from errors and omissions, it must always balance.
The BOP deficit or surplus indicate imbalance in the BOP.
This imbalance is interpreted as BOP Disequilibrium.
A country’s balance of payments is said to be in disequilibrium when its autonomous receipts (credits) are not equal to its autonomous payments (debits).
5.BOP Deficit
A deficit or an unfavorable balance exists when the value of autonomous debit items exceeds the value of autonomous credit items.
6. BOP Surplus
A surplus or a favourable balance exists when the value of autonomous credit items exceeds the value of autonomous debit items.
conomic Environment refers to all those economic factors, which have a bearing on the functioning of a business. Business depends on the economic environment for all the needed inputs. It also depends on the economic environment to sell the finished goods. Naturally, the dependence of business on the economic environment is total and is not surprising because, as it is rightly said, business is one unit of the total economy.
Economic environment influences the business to a great extent. It refers to all those economic factors which affect the functioning of a business unit. Dependence of business on economic environment is total — i.e. for input and also to sell the finished goods. Trained economists supplying the Macro economic forecast and research are found in major companies in manufacturing, commerce and finance which prove the importance of economic environment in business. The following factors constitute economic environment of business:
(a) Economic system
(b) Economic planning
(c) Industry
(d) Agriculture
(e) Infrastructure
(f) Financial & fiscal sectors
(g) Removal of regional imbalances
(h) Price & distribution controls
(i) Economic reforms
(j) Human resource and
(k) Per capita income and national income
Credits : Christ uni.
A fantastic PPT on Business Environment. It gives the complete understanding of the concept of the Business Environment, its features, significance and its impact on the Indian Businesses. It also gives a description of LPG Policy 1991 and its impact. You will also find a concept of Demonetiszation.
This is the one important component of business environment. technological environment is external environment which affects the business. it provides opportunities as well as threats to our business. so understanding of technological environment is important to business man.
international trade theory
,
why is free trade beneficial
,
what role does government have in trade
,
what is mercantilism
,
what is the heckscher-ohlin theory
,
how does the theory of absolute advantage work
,
is a current account deficit bad
,
what is smith’s theory of absolute advantage
,
what is the balance of payments
,
what is new trade theory
,
what is ricardo’s theory of comparative advantage
Balance of Payment Disequilibrium and CausesNeema Gladys
1.Balance of Payment
The balance of payment of a country is a systematic accounting record of all economic transactions during a given period of time between the residents of the country and residents of foreign countries.
2.Componets of BOP
Current Account
It includes imports and exports of goods and services and unilateral transfer of goods and services.
Capital Account
Under this are grouped transactions leading to changes in foreign assets and liabilities of the country.
3. Accounting Treatment of Items (Debit and Credit Items)
Any item which gives rise to a sale of foreign exchange (an inflow) is recorded as a credit item (+) in the accounts e.g. export of goods and services
Any item which gives rise to the purchase of foreign exchange (an outflow) is recorded as a debit item (-) in the accounts e.g imports of goods and services.
4. BOP Disequilibrium
BOP is a double entry accounting record, then apart from errors and omissions, it must always balance.
The BOP deficit or surplus indicate imbalance in the BOP.
This imbalance is interpreted as BOP Disequilibrium.
A country’s balance of payments is said to be in disequilibrium when its autonomous receipts (credits) are not equal to its autonomous payments (debits).
5.BOP Deficit
A deficit or an unfavorable balance exists when the value of autonomous debit items exceeds the value of autonomous credit items.
6. BOP Surplus
A surplus or a favourable balance exists when the value of autonomous credit items exceeds the value of autonomous debit items.
conomic Environment refers to all those economic factors, which have a bearing on the functioning of a business. Business depends on the economic environment for all the needed inputs. It also depends on the economic environment to sell the finished goods. Naturally, the dependence of business on the economic environment is total and is not surprising because, as it is rightly said, business is one unit of the total economy.
Economic environment influences the business to a great extent. It refers to all those economic factors which affect the functioning of a business unit. Dependence of business on economic environment is total — i.e. for input and also to sell the finished goods. Trained economists supplying the Macro economic forecast and research are found in major companies in manufacturing, commerce and finance which prove the importance of economic environment in business. The following factors constitute economic environment of business:
(a) Economic system
(b) Economic planning
(c) Industry
(d) Agriculture
(e) Infrastructure
(f) Financial & fiscal sectors
(g) Removal of regional imbalances
(h) Price & distribution controls
(i) Economic reforms
(j) Human resource and
(k) Per capita income and national income
Credits : Christ uni.
A fantastic PPT on Business Environment. It gives the complete understanding of the concept of the Business Environment, its features, significance and its impact on the Indian Businesses. It also gives a description of LPG Policy 1991 and its impact. You will also find a concept of Demonetiszation.
This is the one important component of business environment. technological environment is external environment which affects the business. it provides opportunities as well as threats to our business. so understanding of technological environment is important to business man.
international trade theory
,
why is free trade beneficial
,
what role does government have in trade
,
what is mercantilism
,
what is the heckscher-ohlin theory
,
how does the theory of absolute advantage work
,
is a current account deficit bad
,
what is smith’s theory of absolute advantage
,
what is the balance of payments
,
what is new trade theory
,
what is ricardo’s theory of comparative advantage
Business environment means all of the internal and external factors that affect how the company functions including employees, customers, management, supply and demand.There are various factors that are included in internal and external environment.
This is the first lecture of 40 lectures planned for Anna University/Anna University of Technology students of 3ed semester MBA. Please provide your comments. The required notes will be uploaded soon.
This is intended to develop uses understanding of the family as an economic unit. It will examine the family’s goal of improving its standard of living and the economic decisions the family makes to improve its well-being.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
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how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Greek trade a pillar of dynamic economic growth - European Business Review
Economic environment ppt
1. ECONOMIC ENVIRONMENT
• Economic Environment refers to all those
economic factors, which have a bearing on the
functioning of a business. Business depends on
the economic environment for all the needed
inputs.
• It also depends on the economic environment to
sell the finished goods. Naturally, the
dependence of business on the economic
environment is total and is not surprising
because, as it is rightly said, business is one unit
of the total economy.
2. IMPORTANCE OF ECONOMIC
ENVIRONMENT
• Managers assess economic environment and
forecast market trends in the effort to make better
investment choices and competitive strategies.
• Economic analysis look at several indicators of an
economic environment with emphasis given to how
local conditions require adjusting analysis and
interpratation.
• The economic environments of foreign companies
and markets can help managers predict events that
might affect the company’s future performance.
3. ELEMENTS OF ECONOMIC
ENVIRONMENT
• GROSS NATIONAL INCOME:
the income generated both by total domestic
production as well as the international
production activities of national companies.
GROSS DOMESTIC PRODUCT:
the total value of all final goods and services
produced in a country in a given year equal to
total consumer, investment, and government
spending, plus the value of exports, minus the
value of imports.
4. • PER CAPITA CONVERSION:
The per capita GNI is taking GNI of a country
and converting it into a standard currency say
at US DOLLARS at prevailing market rates and
then dividing this sum by its population leads
to a Per Capita Conversion estimator.
it helps to explain an economy’s performance
in terms of people who live in that country.
5. 3. Rate Of Change
• GDP growth rate indicates a country’s
economic potential.
• High GDP rate means rising standard of living
• Business opportunites
• Example- China has been one of the fastest
growing economies over the past 2 decades,
which attracted an immense amount of FDI.
• The developing countries like China and India
have a higher growth rate than the US
6. 4. Purchasing Power Parity
• The purchasing power in terms of foreign exchange
• To compare markets, the per capita income is
converted into foreign terms
• Exchange rate tells how many units of currency it takes
to buy one US dollar
• Per capita income does not consider the difference in
cost of living from one country to another. Like, the
cost of living in the US and India differ, but it assumes
that the dollar of income of US and the dollar of
income of India has the same purchasing power
7. • The number of units of a country’s currency
required to buy the same amounts of goods
and services in the domestic market that one
unit of income would buy in the other
country.
• Estimating the value of a universal basket of
good and services that can be purchased with
one unit of a country’s currency
• Per capita income is higher in India than the
US because of the lower cost of living.
8. 5. Human Development Index
• The actual level of development of a country
• How well a country does in terms of social
liberties, life expectancy, and literacy rates.
• 3 dimensions
Longevity : Life expectancy at birth
Knowledge : Adult Literacy Rate; Combined
primary, secondary and tertiary gross
enrollment ratio
9. Standard of Living : Per capita income expressed
in Purchasing Power Parity for US Dollars
Other Indexes
Gender-Related Development : Inequalities
between men and women
Gender Empowerment : Women’s opportunities
in decision making, power over economic
resources
Human Poverty : Denial of choices and
opportunities
10. Features of Economic
Environment
• 1. Inflation
• Rise in price measured
against a standard level of purchasing power
• It results when aggregate demand grows
faster than aggregate supply
• It affects cost of living, exchange rates, interest
rates
11. Implications of Chronic inflation
• It affects the cost of living as the rising prices
makes it more difficult for consumers to buy
products unless their income rises at same
pace.
• Customers cannot effectively
plan long term investments ,
no incentives to save
12. Measure of inflation
• US- Consumer Price Index (CPI)
• Europe- Harmonized index of Consumer
Prices(HICP)
• India- Wholesale Price Index (WPI)
• HICP includes rural population and excludes
occupied housing
13. Employment
•It is number of workers who want to work
but do not have jobs
•Results in low economic
growth, creates social
pressures and provoke
political uncertainty
14. • Misery Index=Inflation + Unemployment rate
• Working age population
o Wealthier countries population will shrink
from 740million to 690mn
o In poorer countries working population will
increase from 3bn to 4bn
• Labor Regulation- Companies think twice
before they hire new employees [Hero Group]
15. DEBT
• Sum of borrowing from it population, foreign
organization and government
• Larger the debt, more uncertain is the
country’s economy
• Debt of US has increased from $1 trillion in
1980 to $9.4 trillion in 2008
• Types- Internal & External
16. • Internal Debt- When government spends
more than it collects
o Imperfect tax system
• External Debt- When government borrows
money from foreign lenders
• Ex- Zambia and Liberia has slow economic
growth rate
17. Income Distribution
• Fractions of population that are at various
levels of incomes
• Ginni Coefficient – assess degree of inequality
in distribution of
income
18. Income Distribution among wealthy
nations
• US has largest inequality gap
• Share of income to top 1% has increased and
decreased for the poorest 40%
• Urban vs Rural Income- In china urban income
is 7times more than rural income
19. POVERTY
Poverty: Condition where a person or
community is deprived of or lacks the
essentials for minimum standard of well being
and life.
Poverty as per World Bank:
– Extreme Poverty: living less than $1 per day(PPP)
– Moderate poverty: living less than $2 per day(PPP)
20. • Poverty and Economic Environment:
Throughout the world people struggle for basic
necessities.
In face of extreme poverty market systems may
not exist, national infrastructures may not work,
criminal behavior may be pervasive and
governments may not be able to regulate society
or adopt prudent policies.
Growth of the economy of business depends on
alleviating poverty.
21. LABOR COST
LABOR COST
– Key element of total cost.
– Companies scan the world to identify the
difference between low cost and high cost
countries.
22. PRODUCTIVITY
• Amount of output created per unit input
used.
• It is the efficiency with which goods and
services are produced.
23. BALANCE OF PAYMENTS
• Statement of country’s trade and financial
transactions created by individuals, business and
government agencies.
– CURRENT ACCOUNT
– CAPITAL ACCOUNT
24. ECONOMIC SYSTEM
• An economic environment is a mechanism
that deals with the production, distribution
and consumption of goods and services.
• It is a set of structures and processes that
guides the allocation of resources and shapes
the conduct of business activities in a country.
• The spectrum of economic analysis is
anchored by ideas of: i) Capitalism
ii) Communism
25. • CAPITALISM
Free market system built on private ownership
and control.
Owners of capital have inalienable property rights
that give them right to earn a profit in return of
their effort, investment and risk.
• COMMUNISM
Centrally planned system built on state ownership
of economic factors of production and control of
all economic activity.
26. TYPES OF ECONOMIC SYSTEM
• MARKET ECONOMY
• COMMAND ECONOMY
• MIXED ECONOMY
27. MARKET ECONOMY
• A system in which individuals, rather than
government make the majority of the
economic decisions.
• Gives individual freedom to decide where to
work doing what, how to spend or save
money and whether to consume now or later.
28. Private Ownership of resources under Market
Economy:
• Individuals make decisions therefore market
economy depends on individuals and companies
owning and controlling resources rather than
government.
• Consumers influence the allocation of resources
through their demand for products.
29. Role of Government Intervention:
• Depends on few government restrictions as
possible.
• Believes that less invisible the “hand” becomes
due to government intervention , less efficiently
the market will run.
• The invisible hand is not infallible, given the needs
for some public goods.
30. COMMAND ECONOMY
• Also known as centrally planned economy.
• Government owns and controls all resources.
• The government commands the authority to
decide what goods and services, the quantity
in which they are produced and the price at
which they are sold.
• Governments owns the means of production
which are managed by employees of state.
• Prices do not change much but quality of
goods dramatically affected.
31. Continued..
• Most Products are short in supply.
• Consumers have few alternatives.
• Not much incentive for companies to innovate
• Little profit to invest in upgrades.
ADVANTAGE: State has ability to mobilize
unemployed or underemployed resources to
generate growth.
32. MIXED ECONOMY
• Fall in middle of Capitalist and communism.
• System in which economic decisions are largely
market driven and ownership is largely private,
but the government intervenes in private
economic decisions,
• Has elements of – market and central planning
economies.
• The government owns key factors of production
yet consumers and private producers influence
price and quantity.
33. • Government Intervention
Central, regional or local government may own
some means of production.
Government can influence private production olor
consumption decisions.
Government can redistribute income and wealth.