Macroeconomic Analysis of Countries Selected for Tesla Model 3 Global Expansion

The purpose of this analysis is to leverage the macroeconomic indicator extract from public data source that impact countries that can help inform decisions on choosing final candidate for Tesla Model 3 global expansion and investment project.
Nội dung trích xuất từ tài liệu:
Macroeconomic Analysis of Countries Selected for Tesla Model 3 Global Expansion Macroeconomic Analysis of Countries Selected for Tesla Model 3 Global ExpansionBackgroundDeveloping countries depend heavily on imports of foreign oil and heavy oil consumption is widelyunregulated that cause extreme air pollution. Electric cars can reduce dependency on oil fuelconsumption and greenhouse gas emission. Despite higher initial costs, electric vehicles have thepotential to save money and help communities become healthier and more energy independent.Electric vehicles are making much more economic sense, and their environmental benefits will soon seethem become widely adopted. Forward thinking governments started to provide additional incentivesat the time of purchase,Although initially electric vehicles by Tesla were very expensive and targeted for customers less sensitiveto price , the company business strategy more recently has also been focused on bringing down the costof battery, which in turn allow them to offer cheaper and higher volume cars. The most recent Model 3and the Model Y, are priced much lower, and aimed at a higher volume market, selling over 100,000vehicles each quarter. Tesla continuously updates the hardware of its cars rather than waiting for a newmodel year, as opposed to nearly every other car manufacturer. Outside United States, Tesla opened itsfirst Gigafactory in China and Germany between 2019- 2020 and aim to expand market share in Asia,Mideast and Europe.PurposeThe purpose of this analysis is to leverage the macroeconomic indicator extract from public data sourcethat impact countries that can help inform decisions on choosing final candidate for Tesla Model 3global expansion and investment project.The analysis compares top 2 countries selected in previous assignment based on indexing and ranking.Looking at both dynamic economic indicators trend over past 5 years as well as static indicator of mostrecent year will help decide which one is best fit for investment project.Data SourceGDP per capita, Inflation and unemployment, trade openness were extracted from The World Bank. TheWorld BankCorruption was extracted from Transparency International, Corruption Perceptions Index 2018 (CPI-2018. Transparency International CPIDynamic Variables Analysis1. GDP per Capita Trend over 5 years Gross Domestic Product (GDP) per capita shows a countrys GDP divided by its total population. Global analysis of per capita GDP helps provide comparable insight on economic prosperity and economic developments across the globe. Malaysia had higher GDP per capita than China (9,818 vs. 8,148) back to 2016. After 2016, Malaysia growth started to slow down, plateau at ~11K in 2019 and dropped to ~10K in 2020. China however, is shown to be continuously growing and reached similar level ~10K as Malaysia in 2020. If the historical trend continues, we would expect to see more growth in China and exceed Malaysia in next a few years. With fast growth in GDP per capita, China consumer purchasing power will likely surplus Malaysia and generates more demand for goods in near future. GDP per Capita Trend over 5 Years 12000 11500 GDP per capita (current US$) 11,378 11,414 11000 10500 10,500 10,402 10,259 10,217 10000 9,977 9,818 9500 9000 8,879 China 8500 Malaysia 8,148 8000 2016 2017 2018 2019 2020 Year2. Inflation, GDP deflator (annual %)The GDP price deflator, also known as the GDP deflator or the implicit price deflator, measures thechanges in prices for all of the goods and services produced in an economy. Using the GDP price deflatorhelps economists compare the levels of real economic activity from one year to another. When lookingat inflation trend of ...