Transcript La internacionalización de la empresa

GDP : Total value of final goods and services produced within a
territory during a period of time.
Clarifications:
1. Only final goods and services: No double accounting of intermediate goods
or services.
2. Domestic: produced in the Spanish territory.
Gross National Product: production of the residents in Spain.
3. Two kind of services: a) Market services (no problem)
b) Non-market services or public services (defense, education). There is
no market price. They are included in the GDP by calculating the cost of
production.
4. Activities that are not included in the GDP due to the difficulty to quantify
them: Housewife production (Pigou’s paradox)
5. Secondhand transactions: They are only included if there is a middleman or
intermediary that receives a commission.
There are three ways to calculate the GDP:
Production, Revenue, and Expenditure
Firms and consumers are interrelated in two different ways:
-Firms pay income to consumers because they own the factors of production
- Consumers pay firms for the final goods and services that they provide
2
3
1
Expenditure= Final expenditure of the owners of the factors of production
Private consumption
Public consumption
Final consumption
+
Domestic demand
Gross capital formation (GCF):
+
a) Investment in equipments; b) Building sector.
+ Exports of goods and services.
GDP
Trade balance
- Imports of goods and services.
Value added: Value created through production process
+ VA agriculture
+ VA Construction
+ VA Industry
+ VA Services
GDP
Value added = Production - Intermediate consumption
Revenue = Value distributed among factors of production
+ Compensation of employees (Wages)
+ Gross operating surplus (Capital Profits)
GDP
(Profits, mixed income –self employed-, rental payments, interests, etc.)
Exercise: Calculate the GDP (expenditure, value added, revenue) and labour productivity
(of the total economy and the values for each sector of activity):
• A farmer produces and sells wheat to the industry at a price of 100 MU
(Pays wages: 40 MU, land rental: 30 MU –paid to a Foreigner-, profits: 30 MU;
num. Employees: 10).
The industry sells flour to a bakery at a price of 250 MU (wages: 90, interest: 30 MU,
Profits: 30 MU; num. Employees 3).
•The bakery produces bread that is sold at a price of 450 MU: 400 domestic market, 50 exports;
(wages: 130 MU; profits: 70 MU; Num. Employees: 5).
The European System of Accounts 95 (ESA-95)
•
ESA-95 aims to represent a modern economy, such as the Spanish
economy, in a systematic way. More precisely, it describes
productive capacity (GDP) and expenditure (GNDI).
•
It groups similar economic operations together
•
It is an accounting technique: the accounts have two columns:
resources and uses, and the balances have economic
interpretation
There are two groups of economic agents:
•
Institutional sectors: households, firms, public administration, rest
of the world. The National accounts describe the economic
decisions of the Institutional sectors.
•
Activity branches: each contains units of prodution wich produce a
similar good. The Input-Output tables describe the technological
and productive relations between the Activity branches.
0: Goods and Services Account
Resources
Uses
Total Output
Intermediate consumption
Imports of goods and services
Final consumption
• Households (private)
• Public
Gross capital formation
• Gross fixed capital formation
• Changes in inventories
Exports of goods and services
TO + M + T = IC + FC + GCF + X
Final Consumption: Consumption can be broken down into private and public
consumption
Private consumption: Consumer expenditures on final goods and services
Public consumption: is the sum of government expenditures on public services
(education, security, etc.). It includes salaries of public servants and purchases that
are necessary to produce the services. It does not include any investment
expenditure and transfer payments, such as social security or unemployment
benefits
Intermediate consumption. The value of the goods and services consumed as
inputs by a process of production, excluding fixed assets whose consumption is
recorded as consumption of fixed capital. The goods and services may be either
transformed or used up by the production process.
Gross capital formation: all goods that are used to increase the stock of capital
Gross fixed capital formation: all goods that can be used repeatedly in the
production process. And also the value of the production of the building sector
(including new houses, upgradings and renovations)
Changes in inventories: includes raw materials, products in production line,
products in stock.
Fixed Capital Consumption. Loss of value of the stock of capital due to its use
Net value always means: Gross value – estimated Fixed Capital
Consumption
i.e. Net Fixed Capital Formation = Gross Fixed Capital Formation – Fixed
Capital Consumption
Exports= The value fob* of all goods that
• Leave the boundaries of the country and
• the goods and services that non-residents get from residents
Imports= The value fob of all goods that
• Come into the boundaries of the country and
• the goods and services that residents get from non-residents
* Free on board = transport costs from port to port are not included
GDP market prices = GDP factor cost (compensation employees + gross
operating surplus) + Net taxes on products
1: Production Account
Resources
Uses
Intermediate consumption
Total Output
Taxes on products less subsidies
Balance: GDP at market prices
since TO + M + T = IC + FC + GCF + X
TO – IC + T = FC + GCF + X – M
GDP (expenditure)
The following accounts deal with distribution operations.
Distribution operations:
•Primary Allocation of Income: they involve the distribution of income
between Capital (Gross Operating Surplus), Labour and Mixed Income (self
employed)
•Secondary Allocation of Income: they entail further distribution of income
among economic agents outside the production process (without
counterpart) which lead to a change in the agents’ purchasing power
(taxes, transfers)
Transfers: one-way transfers of assets, without counterpart:
• Capital transfer: increase the stock of capital
• Current transfer: employed in current expenses: pension, dole.
• National transfer: among national agents
• International transfer: with nonresidents
Summary
Production Accounts:
• Goods and services Account (No balance)
• Production Account (Balance: GDP)
Distribution and use of income accounts:
• Generation of Income Account (Gross Operating Surplus)
• Allocation of Primary Income Account (Gross National Income)
• Distribution of Income Account (Gross National Disposable Income)
• Use of Disposable Income Account (Gross Savings)
• Capital Account (Net Lending / Net Borrowing)
Rest of the World:
• Current Account (Balance of Current Operations with RW)
• Capital Account (Net Lending / Net Borrowing)
Classify the following transactions into Intermediate consumption, Private
Consumption, Gross Fixed Capital Formation, or Exports:
. A family buys shoes
· Purchase of gasoline by a taxi driver
· Purchase of a washing machine by a family
· Purchase of a washing machine by a laundry company.
· Purchase of a washing machine by a foreigner.
· Purchase of crude oil to use in a refinery.
· Purchase of an automobile by a driving school.
· Providing dental services to individuals.
· Renting of a car by foreign tourists.
· Acquisition of a new home by a family
Classify the following distribution operations into: Compensation of
employees, Gross Operating Surplus, Taxes on production and imports,
Production Subsidies, Current Transfers:
•Payments to workers for overtime
•State payments to pensioners
•Payment of a fee of 7 per 100 on the value of an imported commodity
•Sending of money by Spanish emigrants living abroad
•Payment of VAT by employers
•Public Administration Grants to cover operating costs
•Productivity bonus payments to workers
•Corporations earnings
•Payments of unemployment insurance by the Public Administration
Identify the impact on GDP and GNDI of the following:
• The company X produces 100 um of corn, with the GVA
generated of 40 um
• Mr. X sells to Mr. B a used vehicle worth 30 um
• A family purchases stocks worth 50 um through a middleman who
charges a fee of 2 um
• The municipality X increases spending on the police service in 30 um
• The Social Security pays unemployment benefits totalling 70 um
• The Ministry of Public Works invests in Barajas Airport 80 um
· 200 Spanish laborers receive in France 80 um as workers in the
Bordeaux grape harvest.
· 200 Algerians laborers in Spain receive 80 um as workers in the La Rioja
grape harvest
Problem 1: Obtain the value for “Final
consumption expenditure” and “Gross fixed capital
formation” from the following data:
National Accounting for Spain
Goods and services account
Unit: millions of euros
Transactions
1995
Output
798.614
Intermediate consumption
395.098
Taxes on products
Subsidies on products
Final consumption expenditure /
Individual consumption expenditure /
Collective consumption expenditure /
Gross fixed capital formation
Changes in inventories
41.906
-7.635
???
306.037
34.818
???
1.499
Exports of goods and services
Exports of goods
Exports of services
98.958
Imports of goods and services
Imports of goods
Imports of services
99.775
69.886
29.072
83.608
16.167
Problem 2: Calculate the national accounts (ESA-95) with
the following information
External trade Information:
Agricultural Exports: 20 mu;
Industrial Exports: 7 mu;
Imports of equipments (invested in the economy -GCF-): 10
mu;
Raw materials Imports: 6 mu
Consumption:
Food: 25 um;
Industrial products: 30 mu;
Private services: 20 mu;
Agriculture:
Farmers’ Sales : 60 mu; Purchases of agricultural raw
materials: 5 mu; Purchases of industrial raw materials: 5 mu;
Industry:
Sales: 54 mu; Purchases of agricultural raw materials: 9 mu;
Purchases of industrial raw materials: 6 mu;
Private services:
Sales: 20 mu; Purchases of industrial products: 8 mu;
Public sector:
Purchases of agricultural products: 1 mu; Purchases of
industrial products: 4 mu; Wages paid to civil servants: 10
mu;
International Transfers:
International aid given by the country 1 mu.
Problem 3: Obtain the value of the “Gross Domestic
Product”, the “Intermediate Consumption” and the
“Gross National Disposable Income” from the following
information:
Output 85000
Final Consumption 40000
Private consuption 32700
Gross Fixed Capital Formation 12300
Changes in Inventories 500
Fixed Capital Consumption 5500
Imports of goods and services 11000
Exports of goods and services 6600
Transfers payable RW 100
Problem 4: Obtain “Net Lending/ Net Borrowing”
with the following information:
Output 85000
Intermediate Consumption 35400
Final Consumption
- Individual 32700
- Collective 7800
Gross Fixed Capital Formation 12300
Imports of goods and services 9800
Exports of goods and services 6600
Compensations of employees by domestic
employers:
- Of domestic employees 23090
- Of rest of the world employees 10
Compensations of domestic employees by rest of
the world employers 30
Property income
- payable to the rest of the world 1300
- received from the rest of the world 800
Other current transfers
- payable to the rest of the world 270
- received from the rest of the world 530
Capital Transfers
- payable to the rest of the world 20
- received from the rest of the world 160
Expenditure= Final expenditure of the owners of the factors of production
+ Private consumption
+ Public consumption
+ Gross capital formation (GCF):
1. Gross fixed capital formation
Domestic demand
a) Investment in equipment
b) Building sector.
2. Changes in inventories.
GDP
+ Exports of goods and services.
- Imports of goods and services.
Trade balance
Input-output table
inter-industrial
Uses
transactions
Branch 1 Branch 2
Branch 1
Branch 2
Branch 3
1
Total intermediate C.
2
3
Compensation to Emp.
Gross operating S.
4=2+3
Value added
5=1+4
Production
B
Total
Final uses
Intermediate
uses
3
Consumption GCF
a11 a12 a13
a21 a22 a23
a31 a32 a33
a11 a12 a13
c1
CO 1
FBC 1 X 1
U1
c2
CO 2
FBC 2 X 2
U2
c3
CO 3
FBC 3 X 3
U3
C
RA 1
RA 2
RA 3
C.E
EBE 1
EBE
2
EBE 3
GOS
Final demand
VAB 1 VAB 2 VAB 3
GVA (GDP)
P1
Producción total
Value added
P2
P3
X
Total
Uses
Liberalization of external trade and macroeconomic equilibrium:
If a country liberalizes imports, often an external sector deficit arises. Solutions: a) rise protection against imports
b) Manage sound macroeconomic policies
^ ^
GNDI = Final consumption + G. Capital Formation + X – M
^ ^
Gross savings + Final consumtion = Final consumption + G. Capital Formation + X – M
^ ^
Gross savings = G. Capital Formation + X – M
^
Gross savings - G. Capital Formation = X^ – M
If G. Capital Formation > Gross Savings
Negative effects: a) Dependance on foreign capital
Positive effects: a) rises economic growth
b) increases productivity
c) promote technological readiness
b) Need to borrow, more debt
c) interests to pay or returns to foreign investors
d) reduction of reserves (at the limit: default! )
Policies to equilibrate: G. Capital Formation (private + public) > Gross Savings (private+ public) : Net
borrowing
Can be viewed as: Total Net borrowing necessity = borrowing necessity public sector (Gcapital Formation –
GSavings) + borrowing necessity private sector (Gcapital Formation –Gsavings)
Reduce G. Capital formation: a) direct: decrease public investment
b) indirect: rise interest rates – reduce credit
moderate private investment
Rise Savings: a) direct: rise public savings (taxes, public spending)
b) reduce private consumption (fiscal or monetary
policies)
Exercise:
Consider the following macroeconomic tables and for each country and:
a)
asses whether monetary and fiscal policies are in the right way
b)
set up public deficit and interest rates goals for year n+2
Count
ry
Inflation
%
external sector
(current
account )
% GDP
Unemploym
ent
% active
population
Public deficit
% GDP
Year
n
Year
n+1
Year
n
Year
n+1
Year
n
Year
n+1
Year
n
Year
n+1
A
3%
5%
-2%
-6%
5%
4%
-2%
B
3%
2%
0%
1%
6%
6,5%
C
4%
6%
-6%
-8%
5%
D
15%
17%
-7%
-6%
4%
Year
n+2
Short term
interest rates
%
Year
n
Year
n+1
-5%
4%
6%
-1%
-1,5%
4%
3%
4%
-7%
-4%
4%
7%
4%
0%
0%
12%
14%
Year
n+2
Exercise:
Consider the following macroeconomic tables and for each country and:
a)
Asses whether monetary and fiscal policies are in the right way
b)
Identify the effects of the exchange rate variation on: a) inflation b) external balance
c)
Set up public deficit,, interest rates and exchange rate goals for year n+2
C
o
u
nt
ry
Inflation
%
external
sector
(current
account )
% GDP
Unemploy
ment
% active
population
Public deficit
% GDP
Yn
Y
n+1
Yn
Y
n+1
Yn
Y
n+1
Yn
Y
n+1
A
3%
5%
-2%
-6%
5%
4%
-2%
B
3%
2%
0%
1%
6%
6,5%
C
4%
6%
-6%
-8%
5%
D
15%
17%
-7%
-6%
4%
Y
n+2
Short term
interest rates
%
Y
n+2
Exchange rate
% appreciation (+)
or
depreciation (-) vs
OECD currencies
Yn
Y
n+1
Y n+1
-5%
4%
6%
+5%
-1%
1,5%
4%
3%
+1%
4%
-7%
-4%
4%
7%
-8%
4%
0%
0%
12%
14%
-20%
Y n+2
Circle “True” or “False” in the following statements.
“Purchase of an automobile by a driving school” is an “intermediate True
consumption” transaction
False
“Acquisition of a new home by a family” is a “private consumption” operation
True
False
“State payments to pensioners” is a “capital transfer”
True
False
“Corporations earnings” are included in the Gross Operating Surplus
True
False
“Sending of money by Spanish emigrants living abroad” is a compensation of True
employees operation
False
GDP is the difference between Total output and Gross Operating Surplus
True
False
GNDI includes transfers received from the rest of the world
True
False
Gross Savings is the difference between GNDI and Private Consumption
True
False
Net Borrowing/lending capacity is the difference between Gross Savings and True
Gross Capital Formation
True
False
Net Borrowing/lending capacity equals the Current Account Balance
False