- A. Project question
A major multinational corporation has appointed you as an economic advisor. You
are requested to compile a report regarding the macroeconomic environment in two
countries where the firm operates and explain how it might affect the company’s
economic activity.
B. Project specifications
1. You may choose to focus your analysis on any existing firm with
international activity that can be of different types in the two countries.
2. The two countries must be chosen from section C below as follows: one
country from List 1 and one country from List 2.
3. Your report must include:
a. A brief description of the company and the product/market it operates
in for both countries.
b. An analysis of the market structure in which your company operates for
the two countries.
c. A comparative analysis of all major macroeconomic indicators (see
section D below, excluding 5 and 8) for the two countries and their
overall impact on firm’s economic activity.
d. An analysis of the monetary and fiscal policy (instruments) for the two
countries and their impact on the firm’s economic activity. You must
include here an analysis of the interest rates (Section D, indicator 5).
e. An analysis of the foreign trade policy instruments (international trade
agreements) for the two countries and their impact on firm’s economic
activity. You should include here an analysis of the exchange rates
(Section D, indicator 8).
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C. Country Lists
List 1 List 2
Germany China
France India
United Kingdom Brazil
United States Russia
Japan Mexico
D. Macroeconomic indicators1 to be analysed (the last available 10 years):
1. GDP growth rate
2. GDP per capita at constant prices
3. Inflation rate (CPI)
4. Unemployment rate (ILO measure)
5. Interest rate (Monetary Policy Rate)2
6. General government balances (% of GDP)
7. Balance of Payments (% of GDP)
8. Exchange rates (National Currency/USD OR National Currency/Euro)3
