Macroeconomic Performance and Strategic Decisions Essay - 1

Macroeconomic Performance and Strategic Decisions - Essay ExampleKazakhstan is an emerging economy in Central Asia and is genius of the former Soviet republics. Each of these countries would be analysed on four main areas. The analysis would outline the four parts of this paper. interrupt one is a compendium of the macroeconomic performance of each country over the last three years (2004-2006). Part two is a critical evaluation of the economy as a target market for exports. Part three is a critical examination of advantages and disadvantages of the economy as a potential source of inputs into a manufacturing company. Part four is an analysis of the strengths and weaknesses of the economy as a location for foreign direct investment or FDI. Table 1 summarises key economic indicators for these countries. The police detective acknowledges the sources in the Bibliography.The UK, with a total GDP of $1.8 trillion growing 3.1% annually is the worlds fourth largest economy and has a pop ulation of 59 million with high fluid incomes, making it one of the best gateways to penetrate European markets with a per capita income of $30,447 at purchasing power parity.This former world superpower is the worlds 6th freest (of 155) economy (Heritage, 2007, p. 381), the tenth (of 125 countries) most competitive nation on earth (World Economic Forum, 2006, p. xvii), and the worlds 21st most competitive economy, which includes sub-economies that are not states or countries like Catalonia in Spain (IMD, 2006, p. 7).The Monetary Policy Committee (MPC) of the Bank of England (BOE) keeps a close look at the inflation rate that is only slightly rising between 2 and 3% annually by monitoring interest rates (BOE, 2007). The U.K. uses two inflation measures the Retail Price Index (RPI) and the Consumer Price Index (CPI). Both are similar but with minor differences in composition, coverage, and weighting of prices in the superpower. Since December 2003, the CPI has been used for monetar y policy with a target of 2.0% on number over time (BOE, 2007).The sterling exchange rate remains strong against the U.S. dollar and stayed within the range of 0.58 to 0.53 by end-2006. The sterling weakened against the Euro as judge from 0.69 to 0.72 by end-2006, a trend expected to last until end-2007 depending on Eurozone interest rates changes. These currency movements were affected by the weakening of the U.S. economy and a alter Eurozone with respect to the UK, signifying low currency volatility due to sterlings lack of attractiveness as a medium for short-term capital flows in currency markets caused by the UKs flat interest rate curve (BOE, 2007, p. 2).The UK stock market continued to rise, returning 22.0% up to December 2006, continuing a two-year trend, with the FTSE 100 index closing higher by end-2006. The UK equities market is expected to follow its upward trajectory in 2007 on the back of stable prices and renewed business and consumer confidence. Hong Kong picky A dministrative surface area (HK SAR)The HKSAR celebrated last July 1, 2007 its tenth anniversary since its handover by the UK to the Peoples Republic of China. HKSAR retains its unique status as a Special Administrative Region until 2047 and hopes to remain as the worlds most liberal capitalist economy whilst at the same time being a part of the largest and most progressive communist nation with