Macroeconomics

Running head: MACROECONOMICS
MACROECONOMICS
Name of Student
Course name
Course ID

Macroeconomics
1
The current macroeconomic phenomenon within China is basically going to help the
study in determining the business environment of China that will help THI to expand their
business of café and fast food centre. The main aim of this study is to deeply analyse the
macroeconomic environment of China by looking deep into certain variables like real &
nominal GDP, unemployment rate present within the country, purchasing power parity and
the adjusted per capita income that are going to have impact on the consumer demand
determination for the products to be launched by THI.
0
5
10
15
20
25
3.7 4.1 4.55 5.1 5.77 6.64 7.71 9.04 10.11
11.15
12.48
13.96
15.34
16.82
18.39
19.87
21.44
23.35
Adjusted GDP, PPP(trillion), China
Adjusted GDP, PPP(trillion)
Figure 1: Adjusted GDP, PPP (Trillion) for China
(Source: Data.worldbank.org, 2019)
The above diagram is showing the fact that the adjusted GDP, PPP is going to
highlight the fact market of China is having high adjusted GDP. The market of china is
mainly booming sectors and 17 years of data is showing the fact that market of china is one
of the profitable for the THM to expand in China. The size of the market is improving and the
adjusted GDP, PPP is showing that the purchasing power parity of the consumers is
increasing along with the growth in the GDP. In 2000, the GDP, PPP was about 3.703 trillion

Macroeconomics
2
and in the year 2017, the adjusted GDP, PPP was about 23.35 trillion (Data.worldbank.org,
2019)
.
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
1.21 1.34 1.47 1.66 1.96 2.29 2.75 3.55
4.6 5.11
6.1
7.57
8.56
9.6110.48
11.0711.19
12.24
Nominal GDP (Current US$)
Figure 2: Nominal GDP of China
(Source: Data.worldbank.org, 2019)
The current GDP condition of the country China is booming and the trend of the
nominal GDP is growing in an increasing manner that is clearly getting reflected from the
above diagram. The high level of growth of the nominal GDP is acting as one of the
profitable market for the THM to expand their business in the market of China. The
impressive growth of the Chinese market is definitely going to bring high revenue growth.

Macroeconomics
3
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
0
2
4
6
8
10
12
14
16
8.498.349.1310.0410.11
11.412.18
14.23
9.659.4
10.64
9.54
7.867.767.3 6.9 6.7 6.9
Real GDP (Current US$)
Figure 3: Real GDP of China
(Source: Data.worldbank.org, 2019)
The real GDP of China is going on increased trend. The above diagram is showing
that the real GDP of China has got the highest point of USD 14.31 in the year 2007 and after
2011, the real GDP started to fall.
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
3.1
3.6
4
4.3 4.2 4.2 4.1 4 4.2 4.3 4.1 4.1 4.1 4.05 4.1
0 0
3.9
Unemployment rate
Figure 4: Unemployment rate in China