Professional Documents
Culture Documents
Principal Factors
Government: Level of governance Law and order situation Monetary factors Fiscal factors Social factors
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Government
Perception of people at large about the law and order situation How the authority is handling the law and order situation Level of efficiency in government level The prevalence of corruption
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Monetary policy
The growth of money supply in economy The level of inflation overall Sectoral inflation The interest rate factor The structure of the money markets
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However, the status quo has been maintained on the back of higher future inflationary expectations (WPI inflation) by the RBI by raising its inflationary projection at the end of the year to 6.5% from the earlier 5%.
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Fiscal policy
Position of the government budget___ how is budget deficit Whether budget deficit is monetized Taxation policy_ direct and indirect taxes
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Macroeconomic factors
How open is the economy Attitude of the government towards business Overall GDP growth Employment situation Balance of payments situation
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Countries in transition
Regulatory and legal frameworks are major constraints on growth in transition countries In these countries, the domestic policy environment is hostile to private sector start-ups, investment, and innovation.
Structural and economic policy reforms have accelerated in most countries. But reforms to date have barely changed most legal and regulatory constraints affecting private sector activity
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Market Characteristic of a Country Population - Households - Urbanization Income - Per capita GDP - Per capita Income - Per capita Discretionary Income - Purchasing power parity (PPP) Consumption Patterns - Per capita expenditures on basic needs, Transportation, Health, Education and leisure - Households owing of appliances, Autos, Computers,TVs - Household debt Infrastructure - Roadways, Railways, Airways, Water ways - Tele Communications - Internet Foreign Direct Investment in the economy
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How does India stand vis--vis some prominent nations regarding business environment
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80%
76%
60%
45% 34% 29% 24% 22% 18%
42%
40%
20%
14%
11%
0%
Ch
In
Mx
Pl
Br
Ru
Ch
In
Mx
Pl
Br
Ru
Favorable
Unfavorable
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India
100%
87%
China Brazil
80%
80%
60%
44%
40%
27% 28%
40%
40%
20%
14% 9%
0%
Ch
In
Mx
Pl
Br
Ru
4%
Ch
In
5%
Mx
Pl
Br Ru
Favorable
Unfavorable
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Media are MORE Optimistic About India Than Any Other Country
China
Optimistic
Brazil 19%
Russia 4%
Poland 9%
India 31%
Mexico 7%
30%
Pessimistic
0%
0%
83%
17%
0%
0%
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India
China
Mexico
Brazil
Russia
Poland
Democracy
Economy
Trade
Democracy
English Language
Economy
Innovation
Democracy
Huge Population
Trade
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India
China
IT
Mexico
Tobacco/ Alcohol
Textiles
Brazil
Coffee
Russia
Oil/gas
Poland
Shipbuilding
IT
Manufacture
Manufacture
Agriculture
IT
Auto
Auto
Auto
Telecomm
Manufacture
Aeronautics
Shipbuilding
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Excels
High Tech
Software Textile Pharmaceutical sector Call centers Automotive
Lags
96%
44% 40% 32% 17% 16%
Infrastructure
Transportation Financial Services Pharmaceuticals Manufacturing Automobiles Heavy Industry Poverty
35%
35% 30% 20% 20% 15% 15% 14%
Consumer Products
Computers Outsourcing
16%
16% 16%
Consumer electronics
12%
8/7/2012 Economic Environment of business Source: Edelmans India Media Audit, 2004 - SN
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