MAE102 Assignment Global Economy

Added on - 03 Dec 2019

  • MAE102

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  • 6

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Gone shopping _ TheEconomist
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................11. Forces that have contributed to the development of the global economy..........................12. Analysing the impact that global forces have on the activities of CNCC..........................23. Model that have been developed to analyse and interpret deepening trade relations........2CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................4
INTRODUCTIONFor any organisation, ultimate aim is to gain maximum profit. In this context, companiesmake business expansions through which customer base gets stronger (Reuben and Tinetti,2012). Further, it also helps the country in which firm operates. Present report covers variousforces which contribute to the development of global economy. Further, it covers the analysis ofimpact that global forces have on the activities of specific organisation. Lastly, it also includesmodel which enable to deepen the trade relation of the organisation.1. Forces contributed to the development of the global economyThere are many forces which contribute to the development of global economy, amongwhich few of the forces are as follows:Demand and supply:When business is expanded in a new market then, it focuses ofraising consumption and production. Firms get to attract new customers for the product orservice which they want to deliver (Hong, Hwang and Tai, 2013). When business is expanded,economies expect to have a quarter or more revenue according to their five year plan. It provideshuge opportunity for the organisation as they get to target new customers and this will increasetheir market share and productivity.Technology:In different countries, diverse technology is used in order to provide betterservices to customers. When the business is expanded, the firm which enters into market bringsthe technology which may be new for the country. On the other hand, there are cases in whichthe organisation gets to know about the technology which are adopted by the companies of thatcountry in which expansion has to be made. In both cases, new technology is formed whichenable to expand the business effectively and efficiently.Positive effect on currency:When the business is expanded in a new market, itcontributes effectively towards the growth of GDP (Gross Domestic Product) and GNP (GrossNational Product) of the country, this happens because the financial condition of the market getsimproved (Ioannou, Singh and Couzin, 2015). With this respect, government of the country ishighly supported by the foreign companies. In addition to this, it also helps in raising the value ofcurrency.1
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