CHAPTER Introduction to International Macroeconomics Copyright© 2008 South-Western, a part of Cengage Learning All rights reserved Exhibit 1-1 Companies and Industries within a Country and Global Setting Copyright© 2008 South-Western, a part of Cengage Learning All rights reserved Exhibit 1-2 Short-Term versus Long-Term Macroeconomic Analysis Copyright© 2008 South-Western, a part of Cengage Learning All rights reserved Exhibit 1-3 The Three Key Sectors of the Three-Sector Model Copyright© 2008 South-Western, a part of Cengage Learning All rights reserved Exhibit 1-4 Human Development Index: 1975 versus 2003 Source: United Nations, Human Development Report 2005, http://hdr.undp.org/reports/view_reports cfm? type=1 (accessed March 25, 2006) Copyright© 2008 South-Western, a part of Cengage Learning All rights reserved Exhibit 1-5 Real GDP and Population as a Percentage of the World Total: Five Largest Developed Nations versus Five Largest Developing Nations Note: No real GDP statistic was available in 1975 for the Russian Federation Therefore, the Russian Federation’s real GDP was assumed to be 9% of the BCIMR–developing nations’ total, which is approximately what it was in 2004 Source (population and real GDP statistics): World Bank Group, ‘‘World Development Indicators Online,’’ http://publications.worldbank.org/ecommerce/catalog/product?item_id=631625 (accessed March 25, 2006) Copyright© 2008 South-Western, a part of Cengage Learning All rights reserved Exhibit 1-6 Inflation-Adjusted, Per Capita Income: 1975 versus 2004* * To make the comparisons more realistic, these figures are stated on a purchasing-power-parity (PPP) basis PPP is fully explained in the chapter ‘‘Long-Term Exchange Rate Movements and Comparative Advantage.’’ ‘‘PPP-adjusted figures’’ correct for inflation rate and living cost differences among countries Note: No data were available for the Russian Federation for 1975 Source: World Bank Group, ‘‘World Development Indicators Online,’’ http://publications.worldbank.org/ ecommerce/catalog/product?item_id=631625 (accessed March 25, 2006) Copyright© 2008 South-Western, a part of Cengage Learning All rights reserved Exhibit 1-7 Average (Unweighted) Inflation Rates FGJUU–Developed Nations versus BCIMR–Developing Nations Source: World Bank Group, ‘‘World Development Indicators Online,’’ http://publications.worldbank.org/ ecommerce/catalog/product?item_id=631625 (accessed March 25, 2006) Copyright© 2008 South-Western, a part of Cengage Learning All rights reserved Exhibit 1-8 Vital Information for Country Analyses Demographic Characteristics • Geography • Population • Health/Illiteracy • Technology • Important home pages Loanable Funds Market (Interest Rates) • Central bank name • Money supply • Gross saving/GDP • General budget deficit or surplus/GDP • Interest rates Real Goods Market and Labor Market Foreign Exchange Market • GDP/Income distribution • Currency: Code • Labor force • Exchange rate • Inflation rate • Exchange rate system • Leading economic indicators • Balance of payments Copyright© 2008 South-Western, a part of Cengage Learning All rights reserved Exhibit 1-9 Country Analysis Information Provided in Appendix 1-1 Africa South Africa Middle East Saudi Arabia Eurasia India Japan People’s Republic of China Russian Federation Turkey North America Mexico United States Europe France Germany Poland United Kingdom South America Argentina Brazil Copyright© 2008 South-Western, a part of Cengage Learning All rights reserved Exhibit A1-1 Macroeconomic and Demographic Information for 15 Countries Africa • South Africa Eurasia • • • • • India Japan People’s Republic of China Russian Federation Turkey Europe • • • • Middle East • Saudi Arabia North America • Mexico • United States South America • Argentina • Brazil France Germany Poland United Kingdom Copyright© 2008 South-Western, a part of Cengage Learning All rights reserved ... Country Analysis Information Provided in Appendix 1-1 Africa South Africa Middle East Saudi Arabia Eurasia India Japan People’s Republic of China Russian Federation Turkey North America Mexico... Demographic Information for 15 Countries Africa • South Africa Eurasia • • • • • India Japan People’s Republic of China Russian Federation Turkey Europe • • • • Middle East • Saudi Arabia North America... Exchange Rate Movements and Comparative Advantage.’’ ‘‘PPP-adjusted figures’’ correct for inflation rate and living cost differences among countries Note: No data were available for the Russian