Industries · Markets and economies
Markets and economies: the world a case lives in
The outside forces that move every case (inflation, interest rates, exchange rates, commodity prices, tariffs, demographics and government policy), how to tell real growth from price rises, how people and income drive demand, and the three numbers to pull for any country.
Key takeaways
- Every company lives inside an economy. Seven outside forces reach a business: inflation, interest rates, exchange rates, commodity prices, tariffs and trade, demographics, and government policy.
- A number that grew may not have grown. First strip out price rises, which gives real growth.
- For any country in a sizing or market entry case, pull three numbers. How many people are in the target group?
- Explain how inflation, interest rates, exchange rates, commodity prices, tariffs, demographics and government policy reach revenue, cost, demand and valuation
- Work out what a currency move or a tariff does to an importer's margin, step by step
- Turn nominal growth into real growth and spot when a sales increase is only inflation
- Use age structure, cities and income (average, median and spread) as case drivers
- Pull the three numbers for any country in a sizing or market entry case, and name where each comes from
Lessons
Macro forces that move cases
Inflation, interest rates, exchange rates, commodity cycles, tariffs and trade, demographics and government policy. How each reaches revenue, cost, demand and valuation, with small worked examples.
Real growth, people and income
How to strip inflation out of a growth number. And how age structure, cities, average and median income, and inequality decide who can buy what.
How to use a country in a case
The three numbers to pull for any market entry or sizing question: people, spending power and real growth. Where each comes from, and the traps that make a country estimate wrong.
Worked cases in this module
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Key terms
Start with lesson 1
3 lessons, about 52 minutes in all. Each one builds on the one before.