1. Bennett distribution company, a subsidiary of a major cosmetics manufacturer Bavlon, is forecasting the zonal sales for the next year. Zone I with current yearly sales of Rs. 193.8 lakh is expected to achieve a sales growth of 7.25%; Zone II with current sales of Rs. 79.3 lakh is expected to grow by 8.2%; and Zone III with sales of Rs. 57.5 lakh is expected to increase sales by 7.15%. What is the Bennett’s expected sales growth for the next year?





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  • By: anil on 05 May 2019 02.40 am
    zone 1 will grow to become 193.8*1.0725= 207.85 zone 2 will grow to become 79.3*1.082=85.8
    zone 3 will grow to become 57.5*1.0715=61.61
    Total sales this year = 355.26 Total sales last year = 330.6
    Growth = $$frac{355}{330}$$ = 1.0746 i.e. growth of 7.46%
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Second, the idea that emerging-market economies could fully decouple from economic weakness in advanced economies was farfetched : recession in the eurozone, near-recession in the United Kingdom and Japan in 2011-2012, and slow economic growth in the United States were always likely to affect emerging market performance negatively – via trade, financial links, and investor confidence. For example, the ongoing euro zone downturn has hurt Turkey and emergingmarket economies in Central and Eastern Europe, owing to trade links. Third, most BRICS and a few other emerging markets have moved toward a variant of state capitalism. This implies a slowdown in reforms that increase the private sector’s productivity and economic share, together with a greater economic role for state-owned enterprises (and for state-owned banks in the allocation of credit and savings), as well as resource nationalism, trade protectionism, import substitution industrialization policies, and imposition of capital controls. This approach may have worked at earlier stages of development and when the global financial crisis caused private spending to fall; but it is now distorting economic activity and depressing potential growth. Indeed, China’s slowdown reflects an economic model that is, as former Premier Wen Jiabao put it, “unstable, unbalanced, uncoordinated, and unsustainable,” and that now is adversely affecting growth in emerging Asia and in commodity-exporting emerging markets from Asia to Latin America and Africa. The risk that China will experience a hard landing in the next two years may further hurt many emerging economies. 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