Global Business Essay

[Writer’s Name]

[Professor’s Name]

Global Business

12 March 2015

Conclusions about Kingdom of Armorika:

The following four conclusions can be drawn from the data given:

Total Export & Import Volume

As the kingdom has more exports i.e. $98 billion as compared to its imports i.e. $91 billion. This shows that the country’s balance of trade is in surplus. The country rely more on its own resources and products. People are willing to buy the products that are produced in their own country rather than buying imported products. Therefore it is facilitative for the company to start its business in this kingdom as people will buy more of their home country products. The international competition is reduced. This shows that government also appreciates the home production. Therefore if the company requires any finance or other resources the government will support it.

GDP

The GDP rate is an indicator of measuring the health of the economy. It indicates that either the economy is flourishing or going in recession. High GDP will lead to high profits for organizations and also create job opportunities and reduces unemployment in the economy. Therefore for an organization to start its business in Kingdom of Armorika, it is very important to analyze the GDP of the Kingdom. If its growth rate is satisfactory then it should start its business.  The GDP of $ 350 billion is a supportive gesture for the organization to start its business in that Kingdom of Armorika.

Gini Coefficient

The Gini coefficient also known as Gini index is defined as a tool for measuring the statistical dispersion which is considered to represent the income distribution of people of the country. In other words it measures the income dispersion of population of the country and usually applied to measure inequality of income. To start a business the organization must know how disperse the income of its target market is.  If this coefficient is very high then the organization should not launch its business as for selling the goods a middle class income group is required. The Gini coefficient is 28%, which shows Armorika income dispersion is less than 50% which is a good indicator for the business deciding to start up its function in kingdom of Armorika. As people have less inequality in their incomes therefore they have more purchasing power.