Macroeconomic Performance and Strategic Decisions Essay - 1

Macroeconomic proceeding and Strategic Decisions - Essay ExampleKazakhstan is an emerging economy in Central Asia and is one of the former Soviet republics. Each of these countries would be analysed on four main areas. The analysis would outline the four places of this paper. pop one is a summary of the macroeconomic performance of each country over the last terce years (2004-2006). Part two is a critical evaluation of the economy as a bottom market for exports. Part three is a critical examination of advantages and disadvantages of the economy as a potence source of inputs into a manufacturing company. Part four is an analysis of the strengths and weaknesses of the economy as a location for extraneous direct investment or FDI. Table 1 summarises key economic indicators for these countries. The researcher acknowledges the sources in the Bibliography.The UK, with a total GDP of $1.8 trillion growing 3.1% per year is the worlds fourth largest economy and has a population of 59 mi llion with high disposable 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 10th (of 125 countries) nigh competitive nation on earth (World Economic Forum, 2006, p. xvii), and the worlds 21st most competitive economy, which includes sub-economies that are non 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 present at the inflation rate that is only slightly rising between 2 and 3% annually by monitoring engage rates (BOE, 2007). The U.K. uses two inflation measures the Retail harm Index (RPI) and the Consumer Price Index (CPI). Both are similar but with minor differences in composition, coverage, and weighting of prices in the index. Since celestial latitude 2003, the CPI has been used for monetary po licy with a target of 2.0% on average over date (BOE, 2007).The superlative 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 expected 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 strengthening Eurozone with respect to the UK, signifying beginning currency volatility due to sterlings lack of attractiveness as a medium for short-term cracking flows in currency markets caused by the UKs flat interest rate curve (BOE, 2007, p. 2).The UK stock market go along to rise, returning 22.0% up to December 2006, continuing a two-year trend, with the FTSE 100 index closing high by end-2006. The UK equities market is expected to follow its upward trajectory in 2007 on the back of horse barn prices and renewed business and consumer confiden ce. Hong Kong Special Administrative Region (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