22-02-2013, 03:47 PM
Industry Analysis: Indian FMCG Sector
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Introduction
An economy consists of the economic system of a country or other area, the labor, capital and
land resources, and the economic agents that socially participate in the production, exchange,
distribution, and consumption of goods and services of that area. A given economy is the end
result of a process that involves its technological evolution, history and social organization, as
well as its geography, natural resource endowment, and ecology, as main factors. These
factors give context, content, and set the conditions and parameters in which an economy
functions. As long as someone has been making and distributing goods or services, there has
been some sort of economy; economies grew larger as societies grew and became more
complex Global economy generally refers to the economy, which is based on economies of all
of the world's countries, national economies. Also global economy can be seen as the
economy of global society and national economies - as economies of local societies, making
the global one. It can be evaluated in various kind of ways. For instance, depending on the
model used, the valuation that is arrived at can be represented in a certain currency, such as
2006 US dollars.
It is inseparable from the geography and ecology of Earth, and is therefore somewhat of a
misnomer, since, while definitions and representations of the "world economy" vary widely,
they must at a minimum exclude any consideration of resources or value based outside of the
Earth. For example, while attempts could be made to calculate the value of currently
unexploited mining opportunities in unclaimed territory in Antarctica, the same opportunities
on Mars would not be considered a part of the world economy—even if currently exploited in
some way—and could be considered of latent value only in the same way as uncreated
intellectual property, such as a previously unconceived invention. Beyond the minimum
standard of concerning value in production, use, and exchange on the planet Earth,
definitions, representations, models, and valuations of the world economy vary widely.
Ancient Time
Several centuries after the invention of cuneiform, the use of writing expanded beyond
debt/payment certificates and inventory lists to be applied for the first time, about 2600 BC, to
messages and mail delivery, history, legend, mathematics, astronomical records and other
pursuits. Ways to divide private property, when it is contended amounts of interest on debt.
rules as to property and monetary compensation concerning property damage or physical
damage to a person... fines for 'wrong doing'... and compensation in money for various
infractions of formalized law were standardized for the first time in history. The ancient
economy was mainly based on subsistence farming. The Shekel referred to an ancient unit of
weight and currency. The first usage of the term came from Mesopotamia circa 3000 BC.
Medieval Times
In Medieval times, what we now call economy was not far from the subsistence level. Most
exchange occurred within social groups. On top of this, the great conquerors raised venture
capital (from ventura, ital.; risk) to finance their captures. The capital should be refunded by
the goods they would bring up in the New World. Merchants such as Jakob Fugger (1459–
1525) and Giovanni di Bicci de' Medici (1360–1428) founded the first banks. The discoveries
of Marco Polo (1254–1324), Christopher Columbus (1451–1506) and Vasco da Gama (1469–
1524) led to a first global economy. The first enterprises were trading establishments. In 1513
the first stock exchange was founded in Antwerpen. Economy at the time meant primarily
trade
Early Modern Times
The European captures became branches of the European states, the so-called colonies. The
rising nation-states Spain, Portugal, France, Great Britain and the Netherlands tried to control
the trade through custom duties and taxes in order to protect their national economy. The socalled
mercantilism (from mercator, was a first approach to intermediate between private
wealth and public interest. The secularization in Europe allowed states to use the immense
property of the church for the development of towns. The influence of the nobles decreased.
The first Secretaries of State for economy started their work.
The Industrial Revolution
The first economist in the true meaning of the word was the Scotsman Adam Smith (1723–
1790). He defined the elements of a national economy: products are offered at a natural price
generated by the use of competition - supply and demand - and the division of labour. He
maintained that the basic motive for free trade is human self interest. The so-called self
interest hypothesis became the anthropological basis for economics. Thomas Malthus (1766–
1834) transferred the idea of supply and demand to the problem of overpopulation. The
United States of America became the place where millions of expatriates from all European
countries were searching for free economic evolvement.
World Economies
The world- or global economy generally refers to the economy, which is based on economies
of all of the world's countries, national economies. Also global economy can be seen as the
economy of global society and national economies - as economies of local societies, making
the global one. It can be evaluated in various kind of ways. For instance, depending on the
model used, the valuation that is arrived at can be represented in a certain currency, such as
2006 US dollars.
It is inseparable from the geography and ecology of Earth, and is therefore somewhat of a
misnomer, since, while definitions and representations of the "world economy" vary widely,
they must at a minimum exclude any consideration of resources or value based outside of the
Earth. For example, while attempts could be made to calculate the value of currently
unexploited mining opportunities in unclaimed territory in Antarctica, the same opportunities
on Mars would not be considered a part of the world economy—even if currently exploited in
some way—and could be considered of latent value only in the same way as uncreated
intellectual property, such as a previously unconceived invention.