A. Project question
A major multinational corporation has appointed you as an economic advisor. You are requested to compile a report regarding the macroeconomic environment in two countries where the firm operates and explain how it might affect the company’s economic activity.
B. Project specifications
1. You may choose to focus your analysis on any existing firm with international activity that can be of different types in the two countries.
2. The two countries must be chosen from section C below as follows: one country from List 1 and one country from List 2.
3. Your report must include:
a. A brief description of the company and the product/market it operates in for both countries.
b. An anlysis of the market structure in which your company operates for the two countries.
c. A comparative analysis of all major macroeconomic indicators (see section D) below, excluding 5 and 8) for the two countries and their overall impact on firm’s economic activity.
d. An analysis of the monetary and fiscal policy (instruments) for the two countries and their impact on the firm’s economic activity. YOu must include here an analysis of the interest rates (Section D, indicator 5).
e. An analysis of the foreign trade policy instruments (international trade agreements) for the two countries and their impact on firm’s economic activity. You should include here an analysis ofthe exchange rates (Section D, indicator 8).
C. Country Lists
List 1. List 2.
Germany China
France India
United Kingdom Brazil
United States Russia
Japan Mexico
D. Macroeconomic indicators to be analysed (the last available 10 years):
1. GDP Growth Rate
2. GDP per capita at constant prices
3. Inflation rate (CPI)
4. Unemployment rate (ILO measure)
5. Interest rate (Monetary Policy Rate)
6. General government balances (% of GDP)
7. Balance of Payments (1% of GDP)
8. Exchange rates (National Currency/USD or National Currency/Euro)
E. Project 1 Submission Guidelines
* We recommend that you use the IMF database to collect your data for most of these macroeconomic indicators.
*Use data from the relevant Central Bank websites.
*Include tables and graphs
Length: 2,500 words
Presentation: Arial 12 fonts, 1 1/2 spacing, justified text
F. Marking criteria and weights
Criteria
Brief description of the company and analysis of the market structure in which the company operates for the two countries = 20% (weight)
Data collection, comparative analysis of major macroeconomic indicators and impact on firm’s economic activity = 25% (weight)
Analysis of the monetary, fiscal and foreign trade policy for the two countries and their impact on firm’s economic activity = 40% (weight)
Report structure, presentation and references = 15% (weight)