Finance Essay Example | Topics and Well Written Essays - 1000 words - 9

Finance - Essay Example (as to differentiate it to Private Finance), Housing and construction (availability of infrastructures), Output, capacity, and capacity utilization of existing and planned infrastructures, Merchandise trade, National accounts, Labor market, Population, Prices and Wholesale and Retail trade Some specific items under the broad categories mentioned includes the amount of potential customers and their preference, trends in economic growth and operating expenses such as wages, costs of local supplies, taxes and other expenditures, operations and profitability of competitors, planned economic ventures and differences in currency denominations. Also included is the determination of availability of resources, inflation rates, external debt payments as a measure of the credibility and involvement of the governing institutions of the country. Equally important issues that must be considered are risks such as insolvency of the buyer, risk of protracted default or the failure of the buyer to pay the amount due within six months after the due date, risk of non-acceptance and surrendering economic sovereignty. There are also political risks (which would influence economic conditions) that must be taken into consideration such as the risk of cancellation or non-renewal of export or import licenses, conflict risks, risk of expropriation or confiscation of the importers company, risk of the imposition of an import ban after the shipment of the goods, transfer risk or the imposition of exchange controls by the importers country or foreign currency shortages. The World Bank currently has a numerical measure/ ratings in determining the ‘business friendliness’ of countries. It would seem that forecasting would require voluminous data. This would indeed be the case for some forecasting projects. However, some ventures would only require some data depending on the forecast models and equations they are using. There are many reasons why business firms are going global foremost