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Showing posts from December 3, 2009

risk in business environment

Risk in business environment Risk is state that the possible outcomes or future events is larger but the actual outcomes is very low is called risk. The probability of damage or loss is known as risk. The risk can be divided in different parts. These are given below: - Country risk It is state that the performance of economy or the behaviour of government and institution which helps to determine the business environment. A collection of risk associated with investing in foreign

business environment key indicator

Business environment key indicator These indicators are most valuable variable to reflect the business environment. These indicators help to understand the dynamic of business environment. These makor indicators are as follows: - 1. Gross domestic product 2. Sectoral distribution 3. Agriculture production 4. Electricity 5. Economic infrastructure 6. Money supply 7. Rate of inflation 8. Foreign trade 9. Foreign exchange reserve 10. Exchange rate Gross domestic product GDP helps to measure the economic output of a country. Generally GDP defined as market value of goods and services are produced by a nation. One way to calculate the GDP adding all expenditure of nation. GDP= consumption +investment +government purchase +net export Consumption means include all durable and non-durable goods and services produced by a country. Investment includes all investment in fixed assets and increase in inventory. Government purchase includes all welfare funds etc. Net exp