Continents of earth in terms of business

environment

Globalization is a process of interaction and integration among the people, companies,

and governments of different nations, a process driven by international trade and
investment and aided by information technology. This process has effects on the
environment, on culture, on political systems, on economic development and prosperity,
and on human physical well-being in societies around the world.

Globalization is not new, though. For thousands of years, people—and, later,

corporations—have been buying from and selling to each other in lands at great
distances, such as through the famed Silk Road across Central Asia that connected
China and Europe during the Middle Ages. Likewise, for centuries, people and
corporations have invested in enterprises in other countries. In fact, many of the
features of the current wave of globalization are similar to those prevailing before the
outbreak of the First World War in 1914.
But policy and technological developments of the past few decades have spurred
increases in cross-border trade, investment, and migration so large that many observers
believe the world has entered a qualitatively new phase in its economic development.
Since 1950, for example, the volume of world trade has increased by 20 times, and from
just 1997 to 1999 flows of foreign investment nearly doubled, from $468 billion to $827
billion. Distinguishing this current wave of globalization from earlier ones, author
Thomas Friedman has said that today globalization is “farther, faster, cheaper, and
deeper.”

This current wave of globalization has been driven by policies that have opened
economies domestically and internationally. In the years since the Second World War,
and especially during the past two decades, many governments have adopted free-
market economic systems, vastly increasing their own productive potential and creating
myriad new opportunities for international trade and investment. Governments also
have negotiated dramatic reductions in barriers to commerce and have established
international agreements to promote trade in goods, services, and investment. Taking
advantage of new opportunities in foreign markets, corporations have built foreign
factories and established production and marketing arrangements with foreign partners.
A defining feature of globalization, therefore, is an international industrial and financial
business structure.

Technology has been the other principal driver of globalization. Advances in information
technology, in particular, have dramatically transformed economic life. Information
technologies have given all sorts of individual economic actors—consumers, investors,
businesses—valuable new tools for identifying and pursuing economic opportunities,
including faster and more informed analyses of economic trends around the world, easy
transfers of assets, and collaboration with far-flung partners.

Globalization is deeply controversial, however. Proponents of globalization argue that it

allows poor countries and their citizens to develop economically and raise their
standards of living, while opponents of globalization claim that the creation of an
unfettered international free market has benefited multinational corporations in the
Western world at the expense of local enterprises, local cultures, and common people.
Resistance to globalization has therefore taken shape both at a popular and at a
governmental level as people and governments try to manage the flow of capital, labor,
goods, and ideas that constitute the current wave of globalization.

To find the right balance between benefits and costs associated with globalization,
citizens of all nations need to understand how globalization works and the policy
choices facing them and their societies.
THE CONTINENT OF AFRICAN

The AFRICAN conceptual framework is based on the newer theories that see the
evolution of comparative advantage as influenced by the business climate—a key public
good—and by external economies between clusters of firms entering in related sectors.
Macroeconomic data from purchasing power parity (PPP), though imprecisely
measured, estimates confirms that Africa is high-cost relative to its levels of income and
productivity. This finding is compared with firm-level evidence from surveys undertaken
for Investment Climate Assessments in 2000-2004. These confirm a pattern of generally
low productivity, and also suggest the importance of high indirect costs and business-
environment-related losses in depressing the productivity of African firms relative to
those in other countries. There are differences between African countries, however, with
some showing evidence of a stronger business community and better business climate.
Finally, the paper adopts a political-economy perspective on the prospects for reform of
Africa’s business climate, considering African attitudes to business and the fractured
nature of African business sectors as between indigenous, minority and foreign
investors. The latter have far higher productivity and a greater propensity to export;
however, Africa’s difficult business climate and the tendency to overcome this by
working in ethnic networks slows new entry and may decrease the incentives of key
parts of the business community form constituting an aggressive pressure group for
reform. Even though reforms are moving forward in several countries, this slows their
impact and raises the possibility that countries settle into a low-productivity equilibrium.

BEST COMPANIES IN AFRICA

1.Standard Bank Group

Rank in Africa: 1
Forbes Global Rank: 266
Country: South Africa
Industry: Banking
Sales ($Bil): 18.41
Profits ($Bil): 1.54
Assets ($Bil): 137.97
Market Value ($Bil): 17.39
Profile: Founded in South Africa in 1862, Standard Bank Group is Africa’s largest
company and operates in 38 countries around the world, including 18 in Africa. 2007
was a busy year for the company, with the company acquiring controlling interest in
IBTC Chartered Bank in Nigeria in August 2007. This gave subsidiary Stanbic Bank
Nigeria Limited significant presence in the Nigerian market.

In the same month, Standard Bank Group also acquired a 67% share of the Turkish
bank Dundas Ünlü Securities and now operates in Turkey under the name of Standard
Ünlü.

In October 2007 the Industrial and Commercial Bank of China acquired a stake of about
20% in Standard Bank for US$5.5bn. Half the stake will come from ICBC acquiring
existing shares and half from new shares. ICBC will also get two seats on the board of
directors.

2.FirstRand

Rank in Africa: 2
Forbes Global Rank: 308
Country: South Africa
Industry: Banking
Sales ($Bil): 18.41
Profits ($Bil): 1.54
Assets ($Bil): 137.97
Market Value ($Bil): 17.39
Profile: FirstRand was created in April 1998 through the merger of the financial service
interests of Anglo American Corporation of South Africa Limited (AAC) and RMB
Holdings Limited (RMBH).

With International operations on all the continents, FirstRand has a strong presence in
South Africa, where it employs 42 882 people and has a retail franchise footprint of 766
branches and 4997 ATM'S in Southern Africa alone.

3.Sasol

Rank in Africa: 3
Forbes Global Rank: 349
Country: South Africa
Industry: Oil & Gas
Sales ($Bil): 13.91
Profits ($Bil): 2.41
Assets ($Bil): 16.76
Market Value ($Bil): 32.65
Profile: Founded in 1950, Sasol is the largest company on the continent involved in
mining, energy, chemicals and synfuels. In particular, they produce petrol and diesel
profitably from coal and natural gas using Fischer-Tropsch synthesis. The company has
factories at Sasolburg and Secunda and has taken a stake in projects under
construction in Qatar (Oryx GTL), Iran (Arya Polymers) and Nigeria (Escravos GTL).
4.MTN Group

Rank in Africa: 4
Forbes Global Rank: 522
Country: South Africa
Industry: Telecommunications
Sales ($Bil): 7.35
Profits ($Bil): 1.51
Assets ($Bil): 13.44
Market Value ($Bil): 29.72
Profile: Launched in 1994, MTN Group is Africa’s largest telecommunications company
and is active over 21 countries in Africa and the Middle East. As at the end of December
2006, MTN recorded more than 40 million subscribers across its operations.

5.Sanlam

Rank in Africa: 5
Forbes Global Rank: 631
Country: South Africa
Industry: Insurance
Sales ($Bil): 10.29
Profits ($Bil): 1.03
Assets ($Bil): 47.32
Market Value ($Bil): 5.65
Profile: Established in 1918, Sanlam is one of Africa’s leading financial services group
based in South Africa. The company is also involved elsewhere in Africa, Europe and
the United Kingdom.
The Sanlam Group conducts its business through Sanlam Limited, the corporate head
office and four business clusters - Life Insurance cluster consists of Sanlam Personal
Finance (SPF) and Sanlam Employee Benefits (SEB); Short-term Insurance cluster,
Santam; the Investment cluster, driven by Sanlam Investment Management and 11
other businesses; and the Independent Financial Services cluster invests in
independent entities and intermediary business in the financial services industry.
THE CONTINENT OF AUSTRALIA

Strength, stability and open government

Australia is a politically and economically stable democratic nation that provides easy
access to Asia Pacific markets. New South Wales (NSW) has one of the lowest risk
business environments in the Asia Pacific.

Flexible, accountable financial practices, open regulation and transparent government

policy make NSW an advantageous base for international companies in the Asia
Pacific.

NSW has a deregulated financial system with no controls on foreign exchange and a
deregulated telecommunications market.

The legal system in Australia is a mixture of common law and statute and both domestic
and foreign companies have the same standing before the law.

Australia has among the world's best competition laws and an independent judiciary.
Australia's intellectual property protection is ranked number two in the Asia Pacific and
number ten globally.

Time zone advantage

Sydney's time zone, ten hours ahead of GMT, spans the closing of the North American
business day and the opening of business in Europe. Sydney's market trades ahead of
Tokyo, Hong Kong and Singapore.

Favourable tax system

The company income tax rate is 30% in Australia. There are no restrictions on capital
flow, profit remittances, capital repatriation, transfers or royalties and trade-related
payments.

Competitive business costs

NSW continues to prove its competitive advantage as an Asia Pacific business base by
offering the threefold benefits of lower salaries for highly skilled labour, economical
operating costs and comprehensive, low-cost infrastructure.

Sydney offers global city status at an affordable price and is a less expensive city than
Seoul, Tokyo, Hong Kong, London, Paris and Singapore.

Outgoings for salaries and office space in Sydney are well below those of other major
international business capitals.
NSW has a highly educated population and almost 25% of NSW residents were born
overseas, with more than 200 languages spoken in the State.

Australia's immigration system may allow entry of specialist staff into Australia on a
temporary or permanent basis where vacancies cannot be filled from the Australian
labour market or through training programs.

World class infrastructure and communications

NSW offers reliable communications, transport, utilities, business support services and
superior commercial property, at more competitive costs than other major Asian
business centres.

In regional NSW, the NSW Government has increased business appeal by cutting
power bills for regional businesses, reforming rail freight, reducing port charges and
streamlining the land-use planning approvals process.

Sydney has a world-class telecommunications infrastructure. Four high-capacity

international fibre-optic cable networks, with 1.2 terabit capacity, link Australia with the
US, Europe and Asia. Sydney is also a major internet exchange point and
telecommunications hub. Competitive pricing and a choice of carriers make international
call costs among the lowest in the region.

Australian domestic networks consist of fibre-optic, wireless, satellite and microwave

systems. Fibre-optic is the predominant technology. Major networks are Dense Wave
Division Multiplexing (DWDM) based, enabling an easy upgrade.

Asymmetric Digital Subscriber Line (ADSL) technology provides data speeds between
256 kbps to more than 2 Mbps, giving companies and homes access to Internet speeds
30 to 50 times faster than standard dial-up service.

The NSW Government is committed to providing an extensive, low cost wireless

broadband network, initially to seven cities surrounding and including Sydney.

Educated workforce
NSW is home to a multilingual and well educated workforce. In 2006, more than two
million employees in NSW or 64% of the total held post-school qualifications.

More languages are spoken in NSW than in any other State, with almost 1.2 million
residents speaking a language other than English at home in their homes as at the
Census in 2001, and 91 per cent of them located in Sydney.

These language skills provide a cultural advantage for export-oriented Australian

companies.
Business and skilled migration
New South Wales welcomes business migrants who plan to set up a business or invest
in New South Wales.

BEST COMPANIES IN AUSTRALIA

1. BHP Billiton

BHP Billiton, which is a result of a merger between BHP and Billiton, is the world’s
largest mining and resources company. Headquartered in Melbourne, the company also
has offices scattered around the world including in London, Perth, Johannesburg,
Singapore, Santiago, Houston, The Hague and Shanghai. More than 38,000 people are
employed with BHP Billiton, spanning across a 25-country operation.

2. National Australia Bank (NAB)

NAB is presently the number one banking and financial institution in Australia, and is the
largest bank both by net worth and customer base. Apart from its native country,
National Australia Bank also operates in 10 other countries, providing services to over 8
million customers. The growth of NAB from a small outfit to the huge size today is
mainly driven by merger and acquisition exercises.

3.Commonwealth Bank

First established in early 20th century by the Australian government, the

Commonwealth Bank rose steadily to become one of the ‘big four’ banks in the country.
The bank has major presence in Australia, New Zealand, United Kingdom as well as the
rest of Asia continent. For many years, the bank has been named the Best Bank in the
annual Australia Banking and Finance Award.
4. Rio Tinto

Rio Tinto is an international corporation with core business in mining and resources, just
like BHP Billiton. It is also one of the largest coal mining companies in the world. The
company’s original name came from a Spanish mining avenue, which was acquired by
a British corporation, who then eventually made its way to the world down under.
Among of the commodities produced by Rio Tinto are iron ore, copper, industrial
minerals, diamonds and so on.

5. ANZ Banking

Commonly called ANZ, the bank stands for Australia and New Zealand Banking Group
Limited and is a premier player in the commercial and retail banking. As the name
stands, it is only natural to know that the bank has the biggest operations in Australia
and New Zealand. In addition to the two countries, ANZ also has market presence in 25
other countries, with particular to the South Pacific and Asia region.
THE CONTINENT OF EUROPE

In the run-up to the completion of the single market the Community has endeavoured in
particular to remove any obstacles to cross-border business activity, so as to help
companies take advantage of new commercial opportunities on partner countries
markets and, in general, to improve the environment in which Union business operates.
Nevertheless, because of the complex nature of certain European provisions and
inadequate knowledge of the European legislation concerned [see section 3.3],
businessmen often regard that legislation as an impediment to the entrepreneurial spirit.
The European Union should therefore ensure that the impact of its legislation on
enterprises, in particular SMEs, is not in conflict with the common objective of seeing
enterprises reach their full development in the single market.

The European institutions try, indeed, to take into account the problems and conditions
which are specific to SMEs when drawing up and implementing common policies
(regional, social, research, environment, etc.). All proposals presented by the
Commission to the Council and the Parliament are accompanied by an impact
assessment describing their likely effects on businesses, in particular small and
medium-sized enterprises, and on job creation. Through the "impact assessment
method", the Commission analyses the direct and indirect implications of a proposed
measure (e.g. concerning businesses, trade, employment, the environment and health).
The results of each assessment are made public [COM/2002/276]. The impact
assessment also gives details of the consultations that have taken place with the trade
organisations concerned by the proposal [Council Resolution]. The Community's
legislative authorities are thus kept fully informed of the implications of a proposal on
business and employment [see section 4.3].

It is advisable, however, to ensure that Member States do not complicate matters when
transposing Community legislation into national law. Therefore, the Council
recommended to the Member States to implement programmes of administrative
simplification covering both new legislative proposals and existing legislation and to
examine the impact of all proposed legislation or rules on the administrative burden on
enterprises [Council Recommendation]. In a resolution on realising the full potential of
SMEs, the Council called on the Member States and the Commission to examine how
the business environment for SMEs could be improved by removing the structural
impediments resulting from the legal, financial and administrative framework [Council
Resolution].

In order to improve the European business environment, a directive aims at combating

late payment in commercial transactions in the public as well as the private sector
[Directive 2000/35]. This directive obliged the Member States to limit the deadline for
payment at thirty days from the invoice date, unless otherwise specified in the contract
and it harmonised the interest on late payments at seven percentage points above the
European Central Bank rate. It also provided for retention of title by the seller until the
time of payment of the purchase price and accelerated recovery procedures for
undisputed debts with a maximum 90 days between the lodging of the creditor's action
and the time when the writ of execution becomes enforceable.

The Community legislation and programs as well as business opportunities on the large
European market are still not well known by businesses. This is why, the Enterprise
Europe Network , which is a part of the EU's Competitiveness and Innovation
Framework Programme (CIP) [see section 17.1.3] offers support and advice to
businesses across Europe and helps them make the most of the opportunities in the
European Union. The Network is made up of 600 local contact points employing a total
of nearly 3 000 experienced staff in more than 40 countries. Most partners in the
Network are operated by consortia of qualified regional organisations such as chambers
of commerce, regional development agencies and university technology centres. The
services of the Network are specifically designed for small and medium enterprises
(SMEs) but are also available to all businesses, research centres and Universities
across Europe. These services include information on EU legislation, finding a business
partner, benefit from innovation networks in a region and, last but not least, funding
opportunities for businesses.

By their nature it is generally more difficult for smaller enterprises to participate in

research and development programmes (R & D). Firstly, the administrative costs of
applying to participate and organising the required cooperation are relatively high for
SMEs and, secondly, they do not have the same facility of access to long-term finance
as larger companies. On the other hand, small businesses often have greater flexibility,
creativity and dynamism, characteristics which qualify them well to contribute to the
innovative process. Therefore the seventh Community R & D programme encourages
research activities involving SMEs [Decision 1982/2006, see section 18.4]. Specific
schemes for SMEs exist in the form of actions on collective and cooperative research.
In addition, SMEs participate, for the most part, in the activities implemented under the
priority thematic areas of research within networks of excellence, integrated projects
and specific targeted research projects. Joint actions for innovation and SMEs aim
notably: at the rationalisation and coordination of networks providing information and
assistance on the Community's research and innovation activities such as the CORDIS
information service; provision of information and advice; access to private finance; the
creation of innovative start-ups, principally via European organisations and funds.
BEST COMPANIES IN EUROPE

1.ROYAL DUTCH SHELL PLC

(LONDON, UNITED KINGDOM)

Operating revenue/Turnover (2009, mil USD)

Net Income (2009, mil USD) : 12,754

Date of incorporation : 5/02/2002

Employees (2009) : 101,000

Trade description :
Group are engaged in all principal aspects of the oil and natural gas industry, along with interests in
chemicals, power generation and renewable energy..

BP P.L.C. (BP)
(LONDON, UNITED KINGDOM)

Operating revenue/Turnover (2009, mil USD) : 246,839

Net Income (2009, mil USD) : 16,807

Date of incorporation: 14/04/1909

Employees (2009) : 80,300

Trade description :
Exploration and production of crude oil and natural gas; refining, marketing, supply and transportatio
and manufacturing and marketing of petrochemicals. Also active in gas power and solar power
generation.
VOLKSWAGEN AKTIENGESELLSCHAFT
(WOLFSBURG, GERMANY)

Operating revenue/Turnover (2009, mil USD) : 162,919 38440

Net Income (2009, mil USD) : 1,312

Date of incorporation : 28/05/1937

Employees (2009) : 329,423

Trade description :
Germany's largest manufacturer of motor vehicles, engines and accessories as well as of technical
systems,
tools and machinery. There are factories in Wolfsburg, Hannover, Braunschweig, Kassel, Emden,
Salzgitter, Zwickau and abroad.
THE CONTINENT OF NORTH AMERICA

The economy of the NORTH AMERICA is the world's largest national economy. Its
nominal GDP was estimated to be $14.3 trillion in 2009, almost three times the size of
the economy of China, the world's second largest national economy.[12] By purchasing
power parity, the economy of the U.S. is also larger than the national economy of
second-ranked China. The U.S. economy also maintains a very high level of output per
capita. In 2009, it was estimated to have a per capita GDP (PPP) of $46,381, the 6th
highest in the world.

Historically, the U.S. economy has maintained a stable overall GDP growth rate, a low
unemployment rate, and high levels of research and capital investment funded by both
national and, because of decreasing saving rates, increasingly by foreign investors. It
has been the world's largest national economy since 1870 and remains the world's
largest manufacturer, representing 19% of the world's manufacturing output. In 2009,
consumer spending, coupled with government health care spending constituted 70% of
the American economy.[13] About 50% of the entire world's millionaire population reside
in the United States.[14] Furthermore, 40% of the world's billionaires are American.[15] The
US is also home to the world's largest stock exchange, the New York Stock Exchange.
It also boosts the world's largest gold reserves and the world's largest gold depository,
the New York Federal Reserve Bank. The United States is also home to 139 of the
world's 500 largest companies, which is almost twice that of any other country.[16] A
large contributor to the country's success has also been a very strong and stable
currency. The US Dollar holds about 60% of world reserves, as compared to its top
competitor, the Euro, which controls only about 24%.

Since the 1960's, the United States economy absorbed savings from the rest of the
world. The phenomenon is subject to discussion among economists. Like other
developed countries, the United States faces retiring baby boomers who have already
begun withdrawing from their Social Security accounts; however, the American
population is young and growing when compared to Europe or Japan. The United
States public debt is in excess of $13 trillion and continues to grow at a rate of about
$3.83 billion each day.[17] Total public and private debt was $50.2 trillion at the end of
the first quarter of 2010, or 3.5 times GDP.[18] Domestic financial assets totaled $131
trillion and domestic financial liabilities totaled $106 trillion.[19]

The American labor market has attracted immigrants from all over the world and has
one of the world's highest migration rates. The United States is ranked second, down
from first in 2008-2009 due to the economic crisis, in the Global Competitiveness
Report.[20] The country is one of the world's largest and most influential financial
markets, home to major stock and commodities exchanges like NASDAQ, NYSE,
AMEX and CME.
BEST COMPANIES IN NORTH AMERICA

1. Wal-Mart

Revenue: US$378.8 billion

Industry: Retail/Merchandise

Previous ranking: 1

Founded by the legendary Sam Walton in 1962, Wal-Mart is currently the largest private
employer in the world. The company contributes up to 20% of the overall retail market in
the United States. Apart from its native country, Wal-Mart also has respectable
presence in a number of foreign countries including Japan, Mexico, United Kingdom,
Argentina, Brazil, Puerto Rico and Canada.

2. Exxon Mobil

Revenue: US$372.8 billion

Industry: Oil and Gas/Petroleum

Previous ranking: 2

Ranked second last year, ExxonMobil, which is part of a legacy of John D. Rockefeller,
retains its place. Apart from maintaining its position, the company also recorded the
highest profit among the companies in the list for its 5th year in a row. Exxon and Mobil,
which used to be two separate companies, merged in 1999 to become the world’s
largest oil and gas company. The company markets its products under the brands of
Exxon, Mobil and Esso.

3. Chevron

Revenue: US$210.8 billion

Industry: Oil and Gas/Petroleum

Previous ranking: 4
Established more than one hundred years ago, Chevron Corporation is headquartered
in California and operates in more than 150 countries worldwide, employing close to
60,000 employees. The company has major engagement in exploration and production,
refining, marketing, transportation, as well as power generation. The company is
presently in an interesting phase of developing advanced energy technology which
include photovoltaics, fuel cells, hydrogen fuel and so on.

4. General Motors

Revenue: US$182.3 billion

Industry: Automotive/Parts

Previous ranking: 3

While dropping one position does not sound like a big deal, the company is in some sort
of financial turmoil, as far as the profit is concerned. In fact, there was no profit recorded
for last year’s ending, with a poor loss of close to US40 billion. Still, the company
remains as one of the largest automakers, despite being chased by Japanese rival
Toyota. GM employs more than 200,000 people worldwide, and market a range of well-
known brands including Buick, Cadillac, GM Daewoo, Chevrolet, Opel, Pontiac and
Saab.

5. ConocoPhillips

Revenue: US$178.6

Industry: Oil and Gas/Petroleum

Previous ranking: 5

ConocoPhillips was created out of merger between Conoco and Phillips in 2002, with
the current headquarter located in Houston, Texas, United States. The company
operates in more than 40 countries employing close to 40,000 employees worldwide.
ConocoPhillips is also one of the companies in the oil and gas industry with biggest
investment in the production of alternative energy, after the company was announced
as one of the biggest polluters in the United States.
THE CONTINENT OF SOUTH AMERICA

The economy of South America comprises around 382 million people living in twelve
nations and three territories. It contributes 6% of the world's population.

As of early 2007, South America is experiencing great economic development, with

Venezuela, Colombia, Argentina, Uruguay and Peru growing their economies by over
8% per annum. Brazil's economy, on the other hand, is expected to grow by a more
sluggish pace during the year.

South America relies heavily on the exporting of goods. On an exchange rate basis
Brazil (the seventh largest economy in the world and the second largest in the
Americas) leads the way in total amount of exports at $137.8 billion dollars followed by
Chile at 58.12 billion and Argentina with 46.46 billion.[1]

Economic sectors

Agriculture

Main products include: Coffee, soybeans, wheat, rice, corn, sugarcane, cocoa, citrus,
beef. Bananas and shrimp are also important agricultural products for many countries
(like Ecuador).

Manufacturing

Industries are also important to South America’s economy. Most South American
factories produce food items, consumer goods, or building materials. Larger countries
also produce cars, trucks, and airplanes. Some of these companies import all the parts
and raw materials needed for manufacturing which limits the amount of profits they can
receive for the item. An important factor that is crucial to the success of industries is
importing and exporting. An organization called Mercosur helps to expand trade,
improve transportation, and reduce tariffs among member

Transport

At the beginning of August 2008, Venezuelan president Hugo Chavez and his
colleagues from Argentina and Brazil spoke about Latin American integration and
Chavez threw an ambitious idea out: a train that would connect Venezuela's capital
(Caracas) with Argentina's (Buenos Aires), and cities in between.
BEST COMPANIES OF SOUTH AMERICA

1 Petroleos Mexicanos Mexico Oil, gas

2 Petroleos de Venezuela Venezuela Oil, gas

3 Pemex Exploracion y
Produccion Mexico Oil, gas

4 Petrobras Brazil Oil, gas

5 Pemex Refinacion Mexico Oil, gas

6 Pemex Gas y Petroquimica Mexico Chem., gas

7 Comision Federal de
Electricidad Mexico Electricity
THE CONTINENT OF ASIA

The economy of Asia comprises more than 4 billion people (60% of the world
population) living in 46 different states. Six further states lie partly in Asia, but are
considered to belong to another region economically and politically.

As in all world regions, the wealth of Asia differs widely between, and within, states.
This is due to its vast size, meaning a huge range of differing cultures, environments,
historical ties and government systems. The largest economies in Asia in terms of
nominal GDP are Japan, China, India, South Korea, Indonesia and Iran. Economies
range from Japan, as the world's second largest economy by nominal GDP, to
Cambodia as one of the poorest. In terms of GDP by purchasing power parity, China
has the largest economy in Asia and the second largest economy in the world, followed
by Japan and India as the world's third and fourth largest economies respectively.

Wealth (if measured by GDP per capita) is mostly concentrated in east Asian territories
such as Hong Kong, Japan, South Korea, and Taiwan, as well in oil rich Middle Eastern
countries such as Iran, Saudi Arabia, Qatar, United Arab Emirates. Asia, with the
exception of Japan and South Korea, is currently undergoing rapid growth and
industrialization spearheaded by China and India - the two fastest growing major
economies in the world. While east Asian and southeast Asian countries generally rely
on manufacturing and trade for growth, countries in the Middle East depend more on
the production of commodities, principally oil, for economic growth. Over the years, with
rapid economic growth and large trade surplus with the rest of the world, Asia has
accumulated over US$4 trillion of foreign exchange reserves - more than half of the
world's total.

Trade blocs

Asia-Pacific Economic Cooperation

The Asia-Pacific Economic Cooperation (APEC) is a group of Pacific Rim countries who
meet with the purpose of improving economic and political ties

Association of Southeast Asian Nations

The Association of Southeast Asian Nations (ASEAN) is a political, economic, and

cultural organization of countries located in Southeast Asia. Founded in 1967, its aim is
to foster cooperation and mutual assistance among members. The countries meet
annually every November in summits.

The current member countries of ASEAN are Myanmar (Burma), Laos, Thailand,
Cambodia, Vietnam, Philippines, Malaysia, Brunei Darussalam, Singapore and
Indonesia. Papua New Guinea is given an observer status.

In 2005 ASEAN was instrumental in establishing the East Asia Summit (involving all
ASEAN members plus China, Japan, South Korea, India, Australia and New Zealand)
which some have proposed may become in the future a trade bloc, the arrangements
for which are far from certain and not yet clear.

The Asian Currency Unit (ACU) is a proposed currency unit for the ASEAN "10+3"
economic circle. (ASEAN, the mainland of the People's Republic of China, Japan, and
the Republic of Korea).

Closer Economic Partnership Arrangement

The Closer Economic Partnership Arrangement (CEPA) is an economic agreement

between the People's Republic of China and both the Hong Kong SAR government
(signed on 29 June 2003), and the Macau SAR government (signed on 18 October
2003), in order to promote trade and investment facilitation.

The main aims of CEPA are to eliminate tariffs and non-tariff barrier on substantially all
the trade in goods between the three, and achieve liberalization of trade in services
through reduction or elimination of substantially all discriminatory measures.

Arab League

The Arab League is an association of Arab countries in Africa and Asia. The Arab
League facilitates political, economic, cultural, scientific and social programs designed
to promote the interests of its member states.

Commonwealth of Independent States

Flag of the Commonwealth of Independent States

The Commonwealth of Independent States (CIS) is a confederation consisting of 12 of

the 15 states of the former Soviet Union, both Asian and European, (the exceptions
being the three Baltic states). Although the CIS has few supranational powers, it is more
than a purely symbolic organization and possesses coordinating powers in the realm of
trade, finance, lawmaking and security. The most significant issue for the CIS is the
establishment of a full-fledged free trade zone / economic union between the member
states, to be launched in 2005. It has also promoted cooperation on democratisation
and cross-border crime prevention.

South Asian Association for Regional Cooperation

The South Asian Association for Regional Cooperation (SAARC) is an association of 8

countries of South Asia, namely Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan,
Sri Lanka and Afghanistan. These countries comprise an area of 5 130 746 km² and a
fifth of the population of the world.

SAARC encourages cooperation in agriculture, rural development, science and

technology, culture, health, population control, narcotics control and anti-terrorism.

South Asia Free Trade Agreement (proposed)

The South Asia Free Trade Agreement is an agreement reached at the 12th South
Asian Association for Regional Cooperation summit. It creates a framework for the
creation of a free trade zone covering 1.6 billion people in India, Pakistan, Nepal, Sri
Lanka, Bangladesh, Bhutan and the Maldives.
BEST COMPANIES IN ASIA

MARKET
VALUE SALES
COMPANY COUNTRY ($BIL) ($BIL) INDUSTRY

China Mobile China 257.0 47.1 Telecommunications

Services

China Construction Bank China 199.9 43.0 Banking

BHP Billiton Australia 174.9 59.5 Materials

Rio Tinto Australia 136.7 29.7 Materials

Sinopec-China Petroleum & Chemical China 133.0 160.7 Oil & Gas
Operations

China Shenhua Energy China 77.7 11.2 Materials

Reliance Industries-RIL India 77.7 34.1 Oil & Gas

Operations

Nintendo Japan 68.9 16.8 Technology

Hardware &
Equipment

Bharti Airtel India 37.9 6.7 Telecommunications

Services