Global Business Economics and Finance - AmRest Holding SE

Charles W.

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Global Business Economics and Finance - AmRest Holding SE

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Global business, economics, finance, AmRest Holding SE, foreign trade policy, economic performance, Germany, China, tax rate, cost of finance, economic activity, report, Eastern Europe, Central Europe, Spain, monetary policy, interest rate, fiscal policy, BoP Balance of Payment, economic growth, government balances, unemployment rate, fluctuation, inflation rate, currency, purchasing power, trade

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Abstract

AmRest Holdings SE is a public limited company with operations in the global bar and restaurant industry. The firm's headquarters are in Madrid, Spain. AmRest enjoys market dominance in Eastern and Central Europe. It operates several subsidiary firms, including Burger King, Pizza Hut, Starbucks, and Kentucky Fried Chicken. AmRest's capability to operate the subsidiary firms is because of the adoption of effective strategic management practices such as acquisition. The firm's success has further arisen from integration of the internationalization strategy. Since its inception in 1993, the firm has established business operations in 2211 locations in 15 countries. The firm has established business operations in China and Germany as well.
This report analyzes the potential impact of the macroeconomic environment prevailing in China and Germany on AmRest Holdings SE's economic activities because of operating in the two countries.

Market Structure
Major Macroeconomic Indicators and their Major Impact on the Firm's Economic Activity
GDP Growth Rate
GDP Per Capita
Inflation Rate
Unemployment Rate
General Government Balances
Balance of Payment
Monetary and Fiscal Policies
Foreign Trade Policy

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[...] Retrieved from https://tradingeconomics.com/china/inflation-cpi Trading Economics. (2020f). Rate of inflation in Germany. Retrieved from https://tradingeconomics.com/germany/inflation-cpi Trading Economics. (2020g). China unemployment rate. Retrieved from https://tradingeconomics.com/china/unemployment-rate Trading Economics. (2020h). China unemployment rate. Retrieved from https://tradingeconomics.com/germany/unemployment-rate Trading Economics. (2020i). China rate of interest. Retrieved from https://tradingeconomics.com/china/interest-rate Trading Economics. (2020j). Germany rate of interest. [...]

[...] Knowledge of the prevailing macroeconomic indicators can provide AmRest Holdings SE insight on how issues formulate their strategies and policies (Mugge, 2015). This report undertakes a comparative analysis of the identified macroeconomic indicators between China and Germany is provided herein. GDP Growth Rate According to Kresl (2015), the GDP growth rate shows the rate at which an economy is growing. Germany and China have experienced varying GDP growth rates over the past 10 years. According to graph Germany has experienced a relatively strong GDP growth rate compared to China. [...]

[...] Global Business Economics and Finance - AmRest Holding SE Name: Institution Affiliation: Date: Introduction AmRest Holdings SE is a public limited company with operations in the global bar and restaurant industry. The firm's headquarters are in Madrid, Spain. AmRest enjoys market dominance in Eastern and Central Europe. It operates several subsidiary firms, including Burger King, Pizza Hut, Starbucks, and Kentucky Fried Chicken. AmRest's capability to operate the subsidiary firms is because of the adoption of effective strategic management practices such as acquisition. [...]

[...] This will subsequently translate into increased earnings for AmRest Holdings. On the other hand, the Chinese Yuan has lost its value to the US dollar as illustrated by graph 14. As a result, AmRest Holdings might experience a challenge, for example, in the course of importing its supplies. The firm will be required to pay a lot of dollars for its imports. This might affect the firm's cost of operation in China and hence its profits. Graph 13; Euro-US dollar exchange rate Source: (Macrotrend, 2020) Graph 14: US-China's Yuan rate of exchangeSource: (Macrotrends, 2020)Conclusion China and Germany have a varying economic performance, as indicated by the respective macroeconomic indicators. [...]

[...] Macrotrends. (2020). Exchange rates. Retrieved from https://www.macrotrends.net/2575/us-dollar-yuan-exchange-rate-historical-chart Mokyr, J. (2003). The Oxford encyclopedia of economic history. Oxford: Oxford University Press. Mugge, D. (2015). Studying macroeconomics indicators as powerful ideas. Journal of European Public Policy, 23(3). Porter, T. (2016). States, markets and regimes in global finance. New York: Springer. [...]

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