EC202 SLP Essay Example | Topics and Well Written Essays - 500 words

EC202 SLP - Essay Example In the event that a nation has a high GDP, it implies it is sound and has low joblessness, higher wages and thus higher spending power. Thus, Novartis would be progressively beneficial in nations with higher GDPs where it can sell its items at a more significant expense. ii. Parity of Payments: Since Novartis is in an exceptionally directed industry (pharmaceuticals) Balance of Payments pointer turns out to be significant full scale financial marker for Novartis. In the event that a nation is in monetary deficiency, all things considered, the legislature will prompt a spending cut on its medicinal services financial plan, and consequently the administration would push Novartis to bring down its drugs’ costs. iii. Loan costs: Novartis being a worldwide pharmaceutical organization participates in various outside trade exchanges/streams over the globe. Henceforth, contrasts in loan fees would influence the general worth of monetary forms corresponding to each other (esp. forex ch anges between euro, CHF and USD). 2. What do these pointers propose about the present or future state of your association? With respect to the current monetary emergency in the US, the full scale financial elements would negatively affect the state of Novartis Pharmaceuticals Corporation. The US Congress as of late passed a $38 billion spending cut bill (Reuters) that is foreseen to cut financial plans of different government run medicinal services and social projects.