A major multinational corporation has appointed you as an economic advisor. You are requested to compile a report
regarding the macroeconomic environment in two countries where the firm operates and explain how it might affect the
company’s economic activity.
B. Project specifications
1. You may choose to focus your analysis on any existing firm with international activity that can be of different types in the two
countries.
2. The two countries must be chosen from section C below as follows: one country from List 1 and one country from List 2.
3. Your report must include:
a. A brief description of the company and the product/market it operates in for both countries.
b. Ananalysisofthemarketstructureinwhichyourcompanyoperatesfor the two countries.
c. A comparative analysis of all major macroeconomic indicators (see section D below, excluding 5 and 8) for the two
countries and their overall impact on firm’s economic activity.
d. An analysis of the monetary and fiscal policy (instruments) for the two countries and their impact on the firm’s economic
activity. You must include here an analysis of the interest rates (Section D, indicator 5).
e. An analysis of the foreign trade policy instruments (international trade agreements) for the two countries and their impact on
firm’s economic activity. You should include here an analysis of the exchange rates (Section D, indicator 8).
Countries chosen Italy and Russia
D. Macroeconomic indicators1 to be analysed (the last available 10 years):
1. GDPgrowthrate
2. GDP per capita at constant prices
3. Inflationrate(CPI)
4. Unemploymentrate(ILOmeasure)
5. Interest rate (Monetary Policy Rate)2
6. General government balances (% of GDP)
7. BalanceofPayment