...The Australian Industry Group Business prospects in 2013: Australia’s gap year? februAry 2013 national CEo survEy: Principal contact person for this report: Julie Toth Chief Economist THE AUSTRALIAN INDUSTRY GROUP Direct Tel: (03) 9867 0124 Julie.Toth@aigroup.asn.au This report was produced with financial support from the Government of Australia’s Productivity, Education and Training (PET) Fund. © THE AUSTRALIAN INDUSTRY GROUP, 2013 The copyright in this work is owned by the publisher, The Australian Industry Group, 51 Walker Street, North Sydney NSW 2060. All rights reserved. No part of this work covered by copyright may be reproduced or copied in any form or by any means (graphic, electronic or mechanical) without the written permission of the publisher. ISBN 978-1-921768-44-6 2 Ai Group National CEO Survey 2013 Business prospects in 2013 Australian Industry Group National CEO Survey Business prospects in 2013: Australia's gap year? Ai Group National CEO Survey 2013 Business prospects in 2013 3 Key messages Business prospects in 2013: Australia's gap year? The Australian economy is going through significant change, with multiple, long-term forces restructuring our economy (such as global growth shifts and our own demographic changes), and ongoing challenges in our immediate outlook (such as the high Australian dollar and our relatively high business cost base). Recent drivers of growth are waning, with capital investment by the mining industry due to peak soon...
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...Products – Emergence of Global Institutions Definition of Globalisation • The Globalisation of Markets – – The historically distinct and separate national markets are merging into one huge global marketplace in which the tastes and preferences of consumers in different nations are beginning to converge in some global norm. Examples of consumer products: Prada fashions, Sony Playstation video games, McDonald’s hamburgers (US), Nescafe coffee (Switzerland), Nokia mobile phones (Finland), IKEA furniture (Sweden) Definition of Globalisation • Globalisation of Production – Sourcing goods and services from different locations around the globe in an attempt to take advantage of national differences in the cost and quality of factors of production, thereby allowing them to compete more effectively against their rivals – Examples of globalisation of production: Boeing’s 777 and 787 commercial aircrafts Lenovo’s ‘ThinkPad’ laptop Nighthawk Radiology Services Ford’s Global Network to Support the Manufacturing of the Escort Emergence of...
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...is a measure relating a quantity or quality of output to the inputs required to produce it. Often means labor productivity, which is can be measured by quantity of output per time spent or numbers employed. Could be measured in, for example, U.S. dollars per hour.” (Economics) Now coming to the topic of productivity in the context of the topic at hand, it is quite clear that an increase in labor output on an hourly basis is labor productivity. What are the determinants of Labor productivity, they are as follow: * The level of technology that is prevailing in the Company and the industry on relative basis. If the concerned company has a higher level of technology than its competitors. Also the technological level is at par or above industrial standards then obviously labor productivity will increase. * The capital expenditure per capita by the company. If the company’s physical capital, equipment is up to date it is a direct function of labor productivity. However if he equipment is derelict or not up to date then this will have a significant material decline on productivity as a whole, assuming all else equal. * Capacity Utilization, this is also another pertinent determinant of labor productivity as a whole, this is a percentage of how much of the company’s plant, property and equipment is being utilized by the labor. Also what is the capacity of labor and the capital are being utilized for production and manufacturing. The higher this figures the higher the labor productivity...
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...capita (statistics of 2013). It provides the world’s most business-friendly regulatory environment for local entrepreneurs and is ranked among the world’s most competitive economies. In the decades after independence, Singapore rapidly developed from a low income country to a high income country. GDP grew with an average of 7.7% since independence; in the first 25 years growth topped 9.2%. Per capita GDP over the same periods grew by 5.4% and 7.2%. Rapid industrialization took momentum in the 1960s and, by the end of the decade; manufacturing had become the lead sector of the country’s economic growth. By the early 1970s, Singapore had reached full employment. In the 1980s, Singapore had joined the ranks of Hong Kong, South Korea and Taiwan among the newly industrializing countries in Asia. It has been seen positive growth from its independence till now the GDP, CPI and other factor shows positive trend over the last few decade. It has strong manufacturing and services sectors have become the twin pillars of...
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...General Certificate of Education Advanced Subsidiary Examination June 2014 Economics Unit 2 ECON2 The National Economy Wednesday 21 May 2014 1.30 pm to 2.45 pm For this paper you must have: an objective test answer sheet a black ball-point pen an AQA 12-page answer book. You may use a calculator. Time allowed 1 hour 15 minutes Section A (ECON2/1) Answer all questions on your objective test answer sheet. Use a black ball-point pen. Do not use pencil. Do all rough work in this question paper, not on your objective test answer sheet. Section B (ECON2/2) Answer EITHER Context 1 OR Context 2. Use black ink or black ball-point pen. Pencil should only be used for drawing. Write the information required on the front of your answer book. The Paper Reference is ECON2/2. Information The maximum mark for this paper is 75. There are 25 marks for Section A. Each question carries one mark. No deductions will be made for wrong answers. There are 50 marks for Section B. The marks for questions are shown in brackets. You will be marked on your ability to: – use good English – organise information clearly – use specialist vocabulary where appropriate. Advice You are advised to spend no more than 25 minutes on Section A and at least 50 minutes on Section B. G/TI/100665/Jun14/E3 ECON2 2 Section A: Objective Test Answer all questions in Section A. Each question carries 1 mark. No deductions will be made...
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...Why has world trade grown faster than world output? By Mark Dean of the Bank’s International Economic Analysis Division and Maria Sebastia-Barriel of the Bank’s Structural Economic Analysis Division. Between 1980 and 2002, world trade has more than tripled while world output has ‘only’ doubled. The rise in trade relative to output is common across countries and regions, although the relative growth in trade and output varies greatly. This article attempts to explain why the ratio of world trade to output has increased over recent decades. It provides a brief review of the key determinants of trade growth and identifies proxies that will enable us to quantify the relative importance of the different channels. We estimate this across a panel of ten developed countries. This will allow us to understand better the path of world trade and thus the demand for UK exports. Furthermore this approach will help us to distinguish between long-run trends in trade growth and cyclical movements around it. Introduction In the past few decades there has been an increasing integration of the world economy through the increase of international trade. The volume of world trade(1) has increased significantly relative to world output between 1980 and 2002 (see Chart 1). Some of this increase can be accounted for by the fact that traded goods have become cheaper over time relative to those goods that are not traded. However, even in nominal terms the trade to GDP ratio has increased over this...
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...Paper 99 JOBLESS GROWTH IN INDIAN MANUFACTURING: A KALDORIAN APPROACH Michele Alessandrini* November 2009 Abstract Despite the remarkable economic performance in the last twenty-five years, India maintains a high discrepancy between the rate of growth of the economy and the rate of growth of employment. Labour elasticity to output has decreased over time and the capability of the Indian economy to generate employment seems to be limited. As a result, more than 60 percent of Indian workers are still employed in agriculture and 94 percent of total labour force can be found in the unregistered segment of the economy. This paper analyzes the jobless growth problem in India in terms of a Kaldorian framework where the linkages between agriculture and industry enter the labour demand through the changes in the terms of trade between the two sectors. Moreover, we investigate the role of the unorganized sector in influencing the growth of the registered employment. Using a dynamic panel dataset on registered manufacturing from the 15 major Indian states over the period 1980-2004, our System-GMM estimates show that states with a higher growth of demand for industrial goods originating from agriculture also exhibit a higher growth of employment. In addition, in those states where the weight of the unregistered manufacturing has risen over time, the jobless growth problem has worsened. Keywords: India, jobless growth, manufacturing, intersectoral terms of trade, Kaldor ...
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...Recently consumers are increasingly demanding the UK clothing firm Primark to produce goods in an ethical manner, turning the spotlight on workers wages and working conditions. Primark currently has more than 170 stores and made a £200m profit last year on total sales of more than £1.6bn. The leading European and US retailers have come under growing pressure to ensure that workers in their supply chain - particularly in labor-intensive markets such as India and China - are not exploited. The BBC's Panorama programme, which carried out a six-month investigation, alerted Primark to the problems that their suppliers are sub-contracted smaller firms, which were using child labor to carry out embroidery and sequin work. Under the terms of its code of practice for suppliers, Primark prohibits the use of child labor in its manufacturing chain. Equilibrium Price: This is the price at the quantity of goods demanded is equal to the amount supplied. Let us take an example, say when the price of a tin of sugar is $1 there was a demand of 100 boxes of sugar and 100 boxes were supplied to the market at that particular time. Then we say that $1 is the equilibrium price at that point. Considering consumers as stakeholders, the intense pressure cause the demand of the Primark’s products to decrease. A decrease in the demand of their product leads to excess supply of their products. Since supply is excess, equilibrium price will fall. A case may also arise where there will be a change in both...
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...Comment on the relative performance of the UK, France, Germany and the USA since 1997. Over the last 10 years the economic performance of the European countries and the US has varied a lot, due to the external shocks (terrorist attacks) and economic policies. While France and Germany do not have control over their monetary policy, the UK and the US do. Therefore the rest of this essay will analyse the difference in the economic performance of those countries over the last 10 year and provide some explanations for the difference that occurred. Graph 1. Relative GDP Performance Source: Euro State, 2007 From Graph 1, it can be seen that the UK has the most stable growth over the last 10 years, while Germany had the highest variation in its GDP performance. All of the countries saw a sharp decline in their GDP growth after the 9th September 2001, with the USA worst affected. However, such a sharp decline has also allowed the US to reshape its GDP the most by 2004. In comparison, Germany’s sharp decline in 2001 has led to a further GDP decline in 2002 and in 2003 the country saw negative economic growth. Over the last 10 years the US saw the highest overall growth in its GDP (28.9%), closely followed by the UK (28.5%) and France (22.8%). Germany struggled with only a 15.5% increase. Graph 2. Relative GDP performance of Germany and France against EU15 Source: Euro State, 2007 Graph 2 shows the performance of France and Germany relative...
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...MGMT 002 Technology and World Change Topical Written Report Term 1, AY 2011-2012 G22, Project Group 4 Word Count: 1000 1 Table of Contents I. Synopsis ............................................................................................. 3 II. Relationship between technological and economic developments ............................................................................................................... 3 A. How technological developments fuel economic developments........................................................................................ 3 B. How economic developments fuel technological developments........................................................................................ 3 C. How sustainable are these developments? ............................. 4 III. Impact of economic and technological developments ................. 4 A. On Asia ........................................................................................ 4 B. On the world now ........................................................................ 4 C. On the world in the future .......................................................... 5 IV. Conclusion ....................................................................................... 5 2 I. Synopsis Will China and India be the world’s next superpowers? Perhaps history has its answers. Mankind has always been in search of for greener pastures, and there has always been powerful of empires that have...
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...CENTRAL BANK OF EGYPT ECONOMIC REVIEW Vol. 51 No. 1 2010/2011 Research, Development and Publishing Sector The Economic Review is issued by the Research, Development and Publishing Sector at the Central Bank of Egypt (CBE) on a quarterly basis. It aims to make available to a broad readership of specialists and nonspecialists a wide range of information on the performance of the Egyptian economy during the reporting period. The CBE posts the Review on its website: www.cbe.org.eg. Contents Page Main Monetary and Financial Indicators The Leading Article - Output Gap and Its Determinants: The Experience of Egypt ………………………………………… 1- Macroeconomic Performance 1/1 1/2 1/3 1/4 Gross Domestic Product (GDP)……………………………... Employment and Unemployment……………………………. Inflation……………………………………………………… Tourism………………………………………………………. 21 27 28 33 1 2- Monetary and Banking Developments 2/1 2/1/12/1/22/1/32/1/42/1/52/2 2/2/12/2/22/2/32/2/42/2/52/2/6Monetary and Banking Policy and Monetary Aggregates…… Monetary Policy……………………………………………... Reserve Money (M0)………………………………………… Domestic Liquidity (M2) and Counterpart Assets…………... Payment Systems and Information Technology (IT)………... RTGS and SWIFT Local Services…………………………… Banking and Credit Developments…………………………... Banking Reform……………………………………………... Supervision Sector…………………………………………… Overview of Banks' Aggregate Financial Position………….. Interbank Transactions in Egypt……………………………... Deposits……………………………………………………… Lending Activity……………………………………………...
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...The Outlook for the US Chemical Industry kpmg.com Chemicals and Performance Technologies KPMG’s Chemicals and Performance Technologies Practice • Honest, independent advice • Built on deep sector knowledge • Delivered by an integrated global team © 2010 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved. Executive Summary Is the worst over? A cautious but growing consensus among economists and industry analysts suggests that after more than two years of turbulence, the global economy in general and the chemical industry, in particular, are entering calmer waters.1 While a full recovery for chemical companies is not expected this year, certainly, the earnings releases across the industry for the first half of 2010 suggest that growth is returning at a faster rate than many had expected.2 Increased production in the domestic auto industry is supporting new demand for US chemical products, but the construction sector – another major market for US chemicals – is recovering more slowly. However, after massive layoffs, improvements in cash management and operational belttightening, the US chemical industry is expected to realize a year-over-year increase of around 7 percent in 2010, according to the American Chemistry Council (ACC).3 At the same time, this recovery presents its own set of challenges...
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...1. Why did the contraction of the U.S. And Japanese economies and the rise in the value of Yen hurt Sony's exports from Japan ? The strong rise in the value of Yen and the contraction of US economy resulted in a sharp drop in exports from Japan. The decline in exports was primarily due to a lower demand for consumer electronic products in US due to the slowing US economy, as well as the strong rise in the value of Yen relative to US dollars or Euros making the exports more expensive or less affordable for foreign countries. As exporters saw their sales and profits declining, they started cutting operating costs and slashing orders from their suppliers thus creating a ripple effect in the Japanese economy affecting both production and employment. These events and deflation caused a sharp contraction in the Japanese economy where consumers were delaying purchases in hopes that prices would continue to fall. Sony as well as other local companies were hesitant to invest more in technology and or R&D due to these uncertain conditions thus making their exports less competitive relative to competiton. 2. In what other ways has the strong yen affected Sony's bottom line ? What would be effect of a weak Yen? Exchange rate fluctuations affect Sony’s operating profitability because many of Sony’s products are sold in countries other than the ones in which they were manufactured. The strong appreciation of Yen created a negative impact on Sony's financial results as exports were...
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...edu/~metin 1 Learning Objectives Operations Management Introduction. Manufacturing and Service Operations. How can Operations Management help? utdallas.edu/~metin 2 OM = Operations Management Management of ANY activities/process that create goods and provide services » Exemplary Activities: Forecasting Scheduling, Quality management Profit 10% OM Cost 20% Marketing Cost 25% Why to study OM » Cost and profit breakdown at a typical manufacturing company » How to make more profit? Cost cutting. Which costs affect the revenue? » Management of operations is critical to create and maintain competitive advantages utdallas.edu/~metin Manufacturing Cost 45% 3 Operations Management Operations management: The management of the efficient transformation of inputs into outputs to effectively satisfy customers. The active role of operations: – Inputs become Outputs after some Transformation (Process or Operation) – Food processing example: Inputs Energy, Raw vegetables Energy, Metal sheets Energy, Vegetables Energy, Water, Vegetables Energy, Cans, Boiled vegetables utdallas.edu/~metin Transformation Cleaning Cutting/Rolling/Welding Cutting/Chopping Cooking Placing Outputs Clean vegetables Cans Cut vegetables Boiled vegetables Can food 4 Operations in services: Health care Inputs Doctors, nurses Hospital Medical Supplies Equipment Laboratories Processes Examination Surgery Monitoring Medication Therapy Outputs Healthy patients SOM offers medical management MBA and Master of Science...
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...Introduction: An economic indicator is simply any economic statistic, such as the unemployment rate, GDP, or the inflation rate, which indicate how well the economy is doing and how well the economy is going to do in the future. If a set of economic indicators suggest that the economy is going to do better or worse in the future than they had previously expected, they may decide to change their investing strategy. Economic indicators include various indices, earnings reports, and economic summaries. Examples: unemployment rate, quits rate, housing starts, Consumer Price Index (a measure for inflation), Consumer Leverage Ratio, industrial production, bankruptcies, Gross Domestic Product, broadband internet penetration, retail sales, stock market prices, money supply changes. Three Attributes of Economic Indicators 1. Relation to the Business Cycle / Economy Economic Indicators can have one of three different relationships to the economy: 1. Procyclic: A procyclic (or procyclical) economic indicator is one that moves in the same direction as the economy. So if the economy is doing well, this number is usually increasing, whereas if we're in a recession this indicator is decreasing. The Gross Domestic Product (GDP) is an example of a procyclic economic indicator. 2. Countercyclic: A countercyclic (or countercyclical) economic indicator is one that moves in the opposite direction as the economy. The unemployment rate gets larger as the economy gets worse so...
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