PREPARED FOR :
PUAN NORSALIZA BINTI ABU BAKAR
PREPARED BY :
KHAIRIL AZMAN BIN RADZALI 2010459076
DHARWIS BIN HASNIM 2010699142
MUHAMMAD FAIDI BIN SAFARRUDIN 2010408132
ELMIRUSHUDA BINTI AMERUDIN 2010248112
FAZLIAH NOOR BINTI MOHD FOUZI 2010834506
DUE DATE : 21st DECEMBER 2012
1.0 WORLD ECONOMY
The world economy can be evaluated in various ways, depending on the model used, and this valuation can then be represented in various ways. It is inseparable from the geography and ecology of Earth, and is therefore somewhat of a misnomer, since, while definitions and representations of ...view middle of the document...
Most commonly the criteria for evaluating the degree of economic development is gross domestic product GDP), the per capita income, amount of widespread infrastructure and general standard of living. The United States of America, United Kingdom and Australia are chosen to be analysed in order to determine the economic performance. They are directly and indirectly related to investments in our country in terms of labor, import, export, currency and joint venture with local company.
2.1 UNITED STATES OF AMERICA
The United States of America comprises mainly the North American continent between Canada and Mexico. Since the end of Second World War, the economy has achieved relatively steady growth, low unemployment and inflation, and most technologically powerful economy in the world.
Economy indicator/ year | 2008 | 2009 | 2010 | 2011 | 2012 |
GDP (%) | 1.1 | -2.6 | 2.8 | 1.7 | 2.37 |
Unemployment (%) | 7.2 | 9.3 | 9.7 | 9 | 8.11 |
Inflation (%) | 3.8 | -0.3 | 1.4 | 3.1 | 2.12 |
Table 1: The Economy Performance of United State Of America (Sources Index Mundi)
Bar Chart 1: The Economy Performance of United State Of America (Sources Index Mundi)
From the bar chart above, the Gross Domestic Product (GDP) is declined to -2.6% in 2009 from 1.1% for the year of 2008. For the year 2009, the GDP keep decreasing to negative rate from the previous year and it shows that the economic crisis facing inflationary pressure and the price of food, oil and commodity increase sharply in 2008 influence the global performance in 2009. There is a positive sign in United State economic performance in 2010 because the GDP increase to 2.8% because of national growth in durable-goods manufacturing, trade and financial activities. However, the GDP of the country is lower compared to previous year and decrease again to 1.7% in 2011, this is because the federal budget deficit, public debt and also revenues from taxes and other sources are lower. Until the third quarter of 2012, the GDP keep increasing to 2.37% and it shows that the positive contribution from personal consumption expenditure and export for the country.
The unemployment rate also will give a bad impact to a country. In 2008, the unemployment rate is 7% and after that the rate keeps increase in 2009 and 2010 to 9.3% and 9.7% respectively. The unemployment rate is higher compared to the previous year because in this current year, the job growth dropped and the wages is low occurred because of recession. According to Bureau of Labor Statistics (BLS), employment fell in construction, manufacturing, and wholesale trade. However, the unemployment rate begin to decrease to 9% in 2011 and edged down to 8.11% in November 2012. According to Bureau of Labor Statistics, employment increased in retail trade, professional business services and health care.
For the year 2008, it shows that the higher rate of inflation in this country at 3.8% because of the global economic experience economic crisis and...