Managerial Economics PowerPoint No Plagarism and APA format

The economy of South Korea:

The economy of South Korea is considered the fourth largest economy of Asia and eleventh largest economy of the world. Its economy is continuously growing and named as a mixed economy. In the current era, the gross domestic product (GDP) of South Korea is $1.6555 trillion while its per capita income is $32,774. Its economy is famous for doing the new business that’s the reason; its economy lies in the 4th position on ease-of-doing-business rank. Its major industries are based on electronics, chemical, telecommunication, steel, automobile and shipbuilding. The export rate of South Korea is more than its import like the country earns $577.4 billion from export and spends all-around $457.5 billion. Its major exports partners are China, Japan, United States, Hong Kong and Vietnam, while its import partners are Germany, China, Saudi Arabia, United States and Japan (Fine, 2018).

In the current scenario, the government of South Korea makes different tight rules in their monetary policies that will directly impact on the business investments and the global market. In 3rd January 2019, its exchange rate is 1,128 that is increased by 0.21%, and bond yield is 1.96 that is enhanced by 1.55% from the previous date. The inflation rate is decreased by 0.7% in Dec 2018 (South Korea Inflation Rate, 2018). Its growth rate is continuously growing that directly impact the interest rate in the global trading and the investment market. The unemployment rate of South Korea is 3.7% that will be decreased to 3.2% in 2020 and further 3.1% in 2021 (South Korea: Unemployment rate from 2012 to 2022, 2019). The interest rate of South Korea is in a stable position of 1.5% while its inflation rate is decreased from 2% to 1.3% on 30 December 2018 (South Korea Interest Rate, 2019).

The economy of USA:

The economy of US is a highly developed mixed economy whose GDP is increased to $20.66 trillion on Dec 30, 2018, and gain a first grade in the GDP rank. Its GDP growth rate is increased by 3.5%, and per capita income is increased to $62517. Its export partners are the European Union, Japan, Canada, China and Mexico, while its import partners are China, Mexico, Japan, Canada and the European Union. The USA is famous for the business point of view because its economy is quite stable, while its expenses are $4.1 trillion and revenue are $3.3 trillion due to the increase in the public debt by 130%. But the country has the foreign reserves that are having $121587 billion in Dec 2018 that stabilizes its position in the foreign market (Interest rate in USA, 2019).

In the current year, there is the estimation that the labour market will grow that raises the interest rate of US trading. There is also the estimation that the GDP of this United States in 2019 will be increased by 2.5% and 1.75 in 2020. In the current era, Jan 3, 2019, the exchange rate value of the US economy is 1.14 that is increased by 0.65% and the stock market value is $22686 that is increased by 0.02% than the previous year. While on the other hand, the value of bond yield is $2,56 that is decreased by 0.43% due to the application of tariff in international trading. Its economy is dominated due to its service-oriented companies like financial service, technology, healthcare and retail and this sector increased its GDP by 80% growth rate. There are many opportunities for employment in the United States. The inflation rate is 2.2% in Dec 2018 (United States Inflation rate, 2019). The unemployment rate of the United States is 3.9% in Dec 2018, and their wages growth rate is 4.6% on an annual basis. The US has the strong economies because the securities value of its listed companies in the New York Exchange is more than three times of any other stock exchanger of the world (Cheng, 2019).

Comparison between the economies:

The macroeconomic condition of these countries is quite stable and favourable for the new business opportunities. Because their growth rate is increased with a certain percentage that enhanced the confidence level of the investors. The unemployment rate in South Korea is continuously decreasing while in the US the unemployment rate is increased by 2% due to increased its population. There is a large number of foreigners are entered in their economy for a job and business purposes. In the US economy, the inflation rate is continuous decreases by 0.1% while in South Korea their inflation rate also decreases by 0.7% that creates a new opportunity for the economic development in future. When we consider the interest rate of both these countries than we come to know that its interest rate of South Korea is increased by 0.25% and 1.15% in the United States. In the comparison of both macroeconomic conditions, the economic condition of South Korea is more favourable for the new business activities as compared to the united states because there is no tariff in the trading, the unemployment rate is low, the inflation continuously decreases and its interest rate increases more effectively than the United States.

Both the United States and South Korea have distinct economic factors that impact the long-term financial performance of the Auto-Edge. Both these economies are favourable for the Auto-Edge manufacturing companies operation because their economies are quite stable and continuously growing. So, there is no risk factor for the long-term profit.

Conclusion:

Thus it is concluded that the macroeconomic condition of the United States and South Korea is the most favourable for the new business opportunities because their GDP is continuously increasing. The unemployment rate of both the countries in the minimum position which shows they're there is the circulation of money in their economies that is controlled by the South Korean financial institution in a more effective way. This is the reason that its inflation rate is in a more stable position as compared to the United States. While the interest rate of both countries are increasing in a regular pattern that creates a profit for the global trading. Both economies are performing well, so there is a good opportunity for new business in these economies. There is also the risk factor that their labour market are costly than the other Asian countries that may be one of the challenging situations for the entrepreneur, but there is the surety of long-term financial growth of the businesses due to their strong economic conditions.

References: Cheng, J. (2019). Federalism and the Rise of the Corporate Economy in the Nineteenth-Century United States. In States, Intergovernmental Relations, and Market Development (pp. (pp. 63-111)). Palgrave Macmillan, New York. Fine, B. (2018). The political economy of South Africa: From minerals-energy complex to industrialisation. Routledge. Interest rate in USA. (2019, Jan 6). Interest rate in USA. Retrieved from Focus Economics: https://www.focus-economics.com/country-indicator/united-states/interest-rate South Korea Inflation Rate. (2018, Jan 1). South Korea Inflation Rate. Retrieved from Trade Economies: https://tradingeconomics.com/south-korea/inflation-cpi South Korea Interest Rate. (2019, Jan 2). South Korea Interest Rate. Retrieved from Trade economies: https://tradingeconomics.com/south-korea/interest-rate South Korea: Unemployment rate from 2012 to 2022. (2019, Jan 6). South Korea: Unemployment rate from 2012 to 2022. Retrieved from Statista: https://www.statista.com/statistics/263701/unemployment-rate-in-south-korea/ United States Inflation rate. (2019, Jan 1). United States Inflation rate. Retrieved from Trade Economies: https://tradingeconomics.com/united-states/inflation-cpi