Revision

http://www.slideshare.net/geeta_123/foreign-market-entry-strategies


http://www.slideshare.net/vishumaheshwari/indian-economic-liberalisation

http://www.slideshare.net/gurjeit/liberalization-privatization-globalization


http://www.slideshare.net/cwhizkid420/projecttradeblocs


http://www.slideshare.net/Abdullah2012/globalization-trading-blocks

http://www.slideshare.net/Abdullah2012/globalization-trading-blocks

GDP

GDP

The Gross Domestic Product (GDP) in China was worth 5878.63 billion US dollars in 2010, according to a report published by the World Bank. The GDP value of China is roughly equivalent to 9.48 percent of the world economy. Historically, from 1960 until 2010, China GDP averaged 839.3700 billion USD reaching an all time high of 5878.6300 billion USD in December of 2010 and a record low of 46.4600 billion USD in December of 1962. The gross domestic product (GDP) measures of national income and output for a given country's economy. The gross domestic product (GDP) is equal to the total expenditures for all final goods and services produced within the country in a stipulated period of time. This page includes a chart with historical data for China GDP.

Annual Growth Rate

The Gross Domestic Product (GDP) in China expanded 8.10 percent in the first quarter of 2012 over the same quarter of the previous year. Historically, from 1989 until 2012, China GDP Annual Growth Rate averaged 9.3000 Percent reaching an all time high of 14.2000 Percent in December of 1992 and a record low of 3.8000 Percent in December of 1990. The annual growth rate in Gross Domestic Product measures the increase in value of the goods and services produced by an economy over the period of a year. Therefore, unlike the commonly used quarterly GDP growth rate the annual GDP growth rate takes into account a full year of economic activity, thus avoiding the need to make any type of seasonal adjustment. This page includes a chart with historical data for China GDP Annual Growth Rate.

Growth Rate

The Gross Domestic Product (GDP) in China expanded 1.80 percent in the first quarter of 2012 over the previous quarter. Historically, from 2011 until 2012, China GDP Growth Rate averaged 2.1200 Percent reaching an all time high of 2.4000 Percent in September of 2011 and a record low of 1.8000 Percent in March of 2012. The Gross Domestic Product (GDP) growth rate provides an aggregated measure of changes in value of the goods and services produced by an economy. China's economy is the second largest in the world after that of the United States. During the past 30 years China's economy has changed from a centrally planned system that was largely closed to international trade to a more market-oriented that has a rapidly growing private sector. A major component supporting China's rapid economic growth has been exports growth. This page includes a chart with historical data for China GDP Growth Rate.

SHORT, MEDIUM , LONG-TERM FINANCE

• SHORT- 1-3 years e.g trade credit, overdraft, loan
• MEDIUM- 3-10 years e.g leasing, hire purchase, loan
• LONG- over 10 years e.g loan, share capital, mortgages, venture capital, finance from the EU

Different sources of finance avialable to a business start-up

• LOANS-  longer-term kind of finance, fixed period over which the loan is provided (e.g. 5 years), the rate of interest and the timing and amount of repayments.  good for financing investment in fixed assets  and are generally at a lower rate of interest that a bank overdraft.  However, they don’t provide much flexibility.

• SPONSORSHIP hard to get
• GOVERNMENT GRANDS hard to get 
• PERSONAL SAVINGS e.g redundancy money risky This is a cheap form of finance and it is readily available.   Investing personal savings maximises the control the entrepreneur keeps over the business.  It is also a strong signal of commitment to outside investors or providers of finance.
• RE-MORTGAGING- The way this works is simple.  The entrepreneur takes out a second or larger mortgage on a private property and then invests some or all of this money into the business.  The use of mortgaging like this provides access to relatively low-cost finance, although the risk is that, if the business fails, then the property will be lost too. .
•  INVESTORS may decide to pull out, hard to find 
• DEBENTURES 
• FRIEND/FAMILY e.g inheritance -  This can be quicker and cheaper to arrange (certainly compared with a standard bank loan) and the interest and repayment terms may be more flexible than a bank loan.  However, borrowing in this way can add to the stress faced by an entrepreneur, particularly if the business gets into difficulties.
• SALE OF ASSETS 
• SALE AND LEASEBACK 
• OVERDRAFT-is a more short-term kind of finance. An overdraft is really a loan facility – the bank lets the business “owe it money” when the bank balance goes below zero, in return for charging a high rate of interest. As a result, an overdraft is a flexible source of finance, in the sense that it is only used when needed. Bank overdrafts are excellent for helping a business handle seasonal fluctuations in cash flow or when the business runs into short-term cash flow problems (e.g. a major customer fails to pay on time).

What is the difference between Public and Private sector? what is privatisation? give 1 example of business that has been privatased.

PUBLIC SECTOR - The part of national economy providing basic goods / services that are either not, or cannot be, provided by the private sector. It consists of national and local governments, their agencies.

PRIVATE SECTOR- The part of national economy made up of private enterprises. It includes the personal sector (households) and corporate sector (companies), and is responsible for allocating most of the resources within an economy.

privatisation-Sale or return of publicly owned enterprises to private ownership and control.

e.g ROYAL MAIL

Multinational

An enterprise operating in several countries but managed from one (home) country. Generally, any company or group that derives a quarter of its revenue from operations outside of its home country is considered a multinational corporation.

franchise

• A privilege granted to make or market a good or service under a patented process or trademarked name.
• A business operating under such privilege.

Public and Private Limited Companies

• Each company has its own identify in law
• the company employs staff, not the owners
• the company owns assets not the owner
• the company operates until in formally wound up/ liquidation
• the company pays co-operation tax on its profits

PRIVATE

ADVANTAGES

• limited liability
• minimum of 1 director + 1 shareholder
• easy to set up/ affairs still private
• easier to raise capital/ borrow from bank
• death of shareholder has no effect on company

DISADVANTAGES

•  cannot sell shares to public
• more regulations to comply with
• account procedures may be more costly
• death of shareholder has no effect on company
• share transfers need agreement of all

PUBLIC 

ADVANTAGES

• limited liability
• increased capital as public can buy shares
• min of 2 directors + 2 shareholders
• shares increase in value if company sucessful 
• operating large scale can lower cost per unit

DISADVANTAGES

• many regulations to comply with
• accounts (and problems) are public knowledge
• shareholders may sell shares of dividends porr
• original owner may lose overall control