Understanding GDP of India (by Be Money Aware Blog)

This is an excellent article written by Be Money Aware Blog on the basics of GDP interpretation and the mechanics behind that number. Here is the link to the original article. Overview of GDP GDP, or Gross Domestic Product, is the value of all goods and services produced in the economy over a period of …

Continue reading Understanding GDP of India (by Be Money Aware Blog)

Cap and trade policy

Governments cannot leave it to the companies to control their emissions as companies don't have incentives to control their pollutants. Cap and trade is a regulatory system that is meant to reduce certain kinds of emissions and pollution and to provide companies with a profit incentive to reduce their pollution levels faster than their peers. …

Continue reading Cap and trade policy

Why do competitors open their stores next to one another? – Jac de Haan

Gross vs. Net

Gross: The term gross refers to the total amount made as a result of some activity. It can refer to things such as total profit or total sales. Net: Net (or Nett) refers to the amount left over after all deductions are made. Once the net value is attained, nothing further is subtracted. The net …

Continue reading Gross vs. Net

Impact of FSA on the FMCG companies

The new flagship programme from the UPA government is the Food Security Act (FSA). The scheme proposes to provide BPL families with 25kgs of grain (Rice & Wheat) per month at Rs. 3 per kg. This is a bold step towards right to food for the poor. Two major problems with this act now are: …

Continue reading Impact of FSA on the FMCG companies

FMCG Distribution Network

The typical chain for a grocer store FMCG product will be: Manufacturing plant -> Company Ware House -> Regional Ware House -> Regional Stockist or Depot -> Super Stockist or Depot -> Stockist/Depot -> Distributor -> Retailer Main Godown -> C&F Agents/Super Stockists -> Distributors as per the territories -> Wholesalers/Retailers So, the retailers either …

Continue reading FMCG Distribution Network

Big Mac Index

The Big Mac Index is published by The Economist as an informal way of measuring the purchasing power parity (PPP) between two currencies and provides a test of the extent to which market exchange rates result in goods costing the same in different countries. It "seeks to make exchange-rate theory a bit more digestible". The …

Continue reading Big Mac Index