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

EC202 SLP - Essay Example On the off chance that a nation has a high GDP, it implies it is sound and has low joblessness, higher wages and consequently higher spending power. Henceforth, Novartis would be increasingly 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 a profoundly controlled 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 financial shortfall, all things considered, the administration will instigate a spending cut on its medicinal services spending plan, and in this manner the legislature would push Novartis to bring down its drugs’ costs. iii. Loan costs: Novartis being a worldwide pharmaceutical organization participates in various remote trade exchanges/streams over the globe. Thus, contrasts in financing costs would influence the overall worth of monetary standards corresponding to ea ch other (esp. forex changes 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 financial emergency in the US, the large scale monetary 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 human services and social projects.