Gold bar that can be broken into pieces???

Many of you might not be familiar with gold bar that can be broken just like chocolates.

This Gold bars {which is also known as "CombiBars"}are about as big as a credit card, can easily be broken into 1gram pieces and used for payment purposes and it is the latest craze across Switzerland, Austria, and Germany. It can be used as money in times of crisis. A Swiss company wants to bring the gold bars to market in America and build up sales in India – the world’s largest consumer of gold, where it has long served as a parallel currency. 

Gold prices have gained almost 500 percent since 2001 – compared to a 12 percent increase in MSCI’s world equity index, a benchmark for the value of the world’s business investments. Sales of gold bars and coins were worth almost $77billion (£48billion) in 2011, up from just $3.5billion (£2.2billion) in 2002, according to data from the World Gold Council. Advantage of the CombiBar or Gold bar is that it is easily carried and also easily broken into small pieces and also is cheaper than buying 50 one gram bars. It can also be used as an alternative method of payment. The CombiBar is particularly popular among grandparents who want to give their grandchildren a strip of gold rather than a coin.
Stephan Mueller, who manages bank Julius Baer's $6 billion gold fund, said one problem with using gold as a method of payment is that people have to take its value on blind trust.
Well its not chocolate, but they sure look tasty!

World's Top 20 Oil Producers

Here are the world's top 20 producing countries in terms of barrels per day (Based on US Central Intelligence Agency's Fact Book):

1) Saudi Arabia
 
Barrels per day (bpd): 10,520,000
Date of Information : 2010 est.

2) Russia
 Barrels per day (bpd): 10,270,000
Date of Information : 2010


3)United States 
Barrels per day (bpd): 9,688,000
Date of Information : 2010 est.
 
4) Iran 
 Barrels per day (bpd): 4,252,000
Date of Information: 2010 est.


5) China 
Barrels per day (bpd): 4,073,000
Date of Information: 2011


6) Canada
Barrels per day (bpd): 3,483,000
Date of Information: 2010 est.


7) Mexico

Barrels per day (bpd): 2,983,000
Date of Information : 2010 est

8) United Arab Emirates

Barrels per day (bpd): 2,813,000
Date of Information: 2010 est


9) Iraq
Barrels per day (bpd): 2,642,000
Date of Information: 2011 est.

10) Nigeria
Barrels per day (bpd): 2,458,000
Date of Information : 2010 est.

11) Kuwait
Barrels per day (bpd): 2,450,000
Date of Information: 2010 est.


12) Venezuela

Barrels per day (bpd): 2,375,000
Date of Information : 2010 est

13) Brazil
Barrels per day (bpd): 2,301,000
Date of Information: December 2011 est.

14) European Union
Barrels per day (bpd): 2,263,000
Date of Information : 2010 est.

15) Norway
Barrels per day (bpd): 2,134,000
Date of Information : 2010 est.

16) Algeria

Barrels per day (bpd): 2,078,000
Date of Information : 2010 est

17) Angola

Barrels per day (bpd): 1,988,000
Date of Information: 2010 est

18) Libya
Barrels per day (bpd): 1,789,000
Date of Information : 2010 est.

19) Kazakhstan

 Barrels per day (bpd): 1,608,000
Date of Information: 2011 est.

20) Qatar
Barrels per day (bpd): 1,437,000
Date of Information : 2010 est.

Sensex to touch 50,000 by 2015!!!! {by Mr.Varun Aggarwal}

 

So are golden days at Indian stock exchanges back again? If we trust industry experts we have reasons to believe them! Flashback to January 8, 2008 when Sensex reached its historical high of 21,073- Investors were betting on 25,000 high by the end of 2008. However, we all know what happened to Sensex within a year- it went down to 10,000!! Did industry experts got it wrong in 2008 but will get it right in 2010? That’s what most of you would be wondering while reading this article!

I believe it is extremely unfair to blame experts or investors to blame for the fiasco because everybody including you and I were busy enjoying see our investment portfolio swell and Sensex going up every day. We chose to ignore all the warnings coming from market, institutions and experts as we were happy in our own fantasy world. We knew that western economies were lending at very low interest rates and thus creating asset bubble which was waiting to bust. Anyway let us move on.

So what has changed now?

I believe world economy and more so financial markets are less risky due to cleansing of high risk derivative products such as Mortgage Backed Securities. Fundamentals of most of economies are strong or getting stronger after the crash. Let’s look at Indian economy- It has grown by over 7.5% in the last financial year and is expected to grow by 8% this year. So if the Indian economy continues to grow at an average of 8.5 per cent per year until December 2015, if there is no double-dip recession in developed countries, if the Indian rupee continues to trade around Rs 46 to the US dollar, then the Sensex should be comfortably placed at 15,622 on March 31, 2010, and around 50,130 in December 2015.

Also, Indian stock market is not overvalued as it was in 2007-08. If a country's market capitalisation as a proportion of global market capitalisation mirrors its share of world GDP, India's stock market seems to be within 15-20 per cent of where it should be. In 2007-08 it was almost 25% overvalued, which was also a sign of pending crash that we chose to ignore.

Even though the Indian stock markets will continue to be fairly volatile for the next few years, an investor who takes a long-term -- a five- to six-year -- view is likely to be rewarded very well, especially after taking dividends into account.

Future of Stock Market

The future of Indian stock market is heavily dependent on the following three parameters:
Future growth of the Indian economy, annual inflation, and productivity related improvements;
The inflow and outflow of foreign institutional investment; and any movement of price-earnings ratios.

Future growth of Indian economy

India' economy grew at an annual rate of 9.4 per cent during the three years -- 2005 to 2008 -- with agriculture averaging around 5 per cent per year. India also survived the global meltdown of 2008-09 due to minimal exposure of the financial sector to the sub-primelending, and domestic demand driven growth. India's average annual growth rate during the two years, 2008-2010, was likely to be around 7 per cent (in real terms), with the current fiscal year outperforming the last one by over one per cent.

Favourable demographics, high savings rate, rising middle class, and underleveraged households suggest that domestic demand, and the economy, will continue to grow strongly.

Taking a long-term view and assuming an exchange rate of Rs 46 to 1 US dollar, an annual growth rate of 7 per cent in 2009-10 and 8.5 per cent during 2010-16, the market sentiment being overly buoyant, an inflation of 6 per cent per year, the size of the Indian economy in nominal terms is likely to be:

• $1.250 trillion in 2009-10, 
• $2.400 trillion in 2014-15, 
• and $4.640 trillion in 2019-20. 

This implies a cumulative nominal annual growth of 14 per cent and an approximate four-fold increase in the coming decade.

During 2009-10:The services sector would account for approximately 56 per cent of the Indian economy;
The manufacturing and industries sector would contribute about 29 per cent; and Agriculture about 15 per cent.

Between 2005 and 2008, both, the services and the industries sectors grew at approximately 14-15 per cent on a nominal basis and 9-11 per cent in real terms. These sectors are likely to grow between 15-16 per cent in the next six years.

ConclusionAll these macro as well as micro economic factors, if sustained for the next five years, may push our growth to over 10.1%. With increasing EPS and revenue of major Indian companies, Sensex is expected to continue its upward rally and touch 50,000 by the end of 2015.

World's Top 10 Alcohol Consuming Countires

According to the Global status report on alcohol and health 2011, World Health Organization, here are the top 10 list of alcoholic countries:

1) Republic of Moldova:

 

The Republic of Moldova  is a landlocked nation in Eastern Europe located between Romania to the west and Ukraine to the north, east, and south and the capital city is Chișinău.The Moldova is known for its wines. For many years viticulture and winemaking in Moldova were the general occupation of the population.

They are the biggest guzzlers of alcohol, gulping exactly 18.22 liters per person every year. They drink nearly three times the global average of 6.1 litres per person per year. 

Most of the country's wine production is made for export. Many families have their own recipes and strands of grapes that have been passed down through the generations. Milestii Mici is regarded as the World's Largest 'Wine Cellars' which is in Moldova.

2) Czech Republic:

After Moldova, the Czech Republic are next with a consumption of 16.45 litres per person every year. The Czech Republic is a landlocked country in Central Europe.Three months back( around September 2012), however, the country enforced a ban on sales of hard liquor, as deaths and injuries from methanol-laced bootleg alcohol rose. Around 20 people died and 36 people were in critical condition since the outbreak. The country consumes more beer (around 8.5L) than any other alcoholic beverage.

3) Hungary:

Today, Hungary is a high-income economy. Apparently, drinking alcohol is engrained in Hungary's working culture. In eastern Hungary, a rural people often have a shot of “palinka,''a spirit made of fruits, for breakfast and make a living growing and distilling plums and peaches for the drink. Hungarians consume 16.27 litres per person every year and it is roughly an even mix of beer, wine and spirits

4) Russia:

Russia has a market economy with enormous natural resources, particularly oil and natural gas. It has the 10th largest economy in the world by nominal GDP and the 6th largest by purchasing power parity (PPP) and also ranked 4th in alcohol consuming countries. Russians consume 15.76 litres per person every year. Drinking as a part of Russian culture has deep roots, dating back to at least the tenth century AD and by 1860, vodka, the national drink, was the source of 40 percent of the government's revenue. The country consumes more spirits (around 7L) than wine (0.10L), notably.

5) Ukraine:

In 2009 Russia's neighbour Ukraine was the World's most Alcohol Consuming country, but this time Ukraine is 5th ranked in Consuming Alcohol with a consumption of 15.60 litres per person per year. Illegal production of alcohol is a cause for worry in the country with 35 percent of the vodka sold in the country being produced illegally. In 2011, 36,680 poisoning cases were registered in Ukraine, of which 5,300 resulted in fatalities. The country consumes spirits (around 5L) more than any other alcoholic beverage.

6) Estonia:

Many of you might not have heard about Estonia. It is a state in the Baltic region of Northern Europe. Estonians are said to be true beer lovers as the country’s alcoholic consumption is 15.57 litres per person per year. The country has seen an increase in spirits (around 9L) consumption than beer (around 5L), recently. However, local producers claim that the most significant problem within alcoholic drinks in Estonia is increasing input prices, which are resulting in declining profits and reducing the number of investment opportunities.

7) Andorra:

 

Andorra also called the Principality of the Valleys of Andorra, is a landlocked state in Southwestern Europe, bordered by Spain and France and it is the sixth smallest nation in Europe. In case of alcohol consuming, Andorra seems like a drinker’s paradise since the country has no sales tax and alcohol products are probably the cheapest in Europe. The country consumes 15.48 litres of alcohol per person every year and more wine (around 6L) than beer or spirits. The most popular drinks are Orxata, Granizado, Acqua D'Or.

8) Romania:

Romania is a country located at the intersection of Central and Southeastern Europe, bordering on the Black Sea. While in alcohol consuming, beer in Romania often costs less than the bottled water at restaurants and bars. People consume 15.30 litres of alcohol every year and it is no surprise that beer is consumed the most (around 4L) with spirits catching up (also around 4L). It is also considered okay to have a drink during the work day or for business men and politicians to keep bottles of alcohol in their desks.

9) Slovenia:

Slovenia, officially the Republic of Slovenia, is a nation state situated in Central Europe. Surprise to see that the legal drinking age in Slovenia is 18 but it is illegal to sell or offer alcohol of any kind to minors. It is also illegal to sell alcohol in stores from 9 p.m. to 7 a.m., and 10 a.m. in bars and restaurants. The law also prohibits serving alcohol to obviously intoxicated customers as well as less than 1 hour before and during sport events. Slovenians consume 15.19 litres of alcohol every year and more wine (around 5L) and beer (around 4L) than spirits.

10) Belarus:

Belarus is a landlocked country in Eastern Europe. Belarus, the last country in the top ten consumes 15.13 litres per person every year and spirits (around 4L) is the most preferred. Like all other alcohol-loving countries, a bottle of vodka costs less than a packet of orange juice, it is reported. However, alcohol abuse is widespread and is a problem to worry about.

It looks like the world’s highest alcohol consumption levels are found in the developed world, including western and Eastern Europe. High-income countries generally have the highest alcohol consumption.

Looking for more Options to Offset Your Risk....??? {by Mr.Varun Aggarwal}

Exotic Options

An exotic option is a kind of derivative which has features making it more complex than commonly traded products which are known as vanilla options. These products are usually traded over-the-counter (OTC), or are embedded in structured notes. Before learning about exotic options, we should have a good understanding of regular options. Both type of options the right to buy or sell an asset in the future, however the way investors realize profits using these options differs dramatically.

 

Difference between Exotic Option & Regular option

An exotic option is a type of option other than the standard calls and puts found on major exchanges. An investor who buys a call option has actually bought a standardized right to purchase a specific amount of an underlying asset at the agreed upon strike price, while a put option gives the investor the right to sell the specific asset at the strike when the price of the underlying decreases. These regular options are also known as plain vanilla options. Exotic options can be quite different, as the below examples show:

Chooser option: It gives the investor the right to choose whether the option is a put or a call at a certain point during the option's life. Unlike regular options that are purchased as a call or a put at initiation, these exotic options can change during the life of the option.

 

Barrier option: An option whose payoff depends on whether or not the underlying asset has reached or exceeded a predetermined price is known a barrier option. The right to purchase the underlying at an agreed strike price only realizes when the price hits the agreed upon 'barrier'. This is unlike a regular option because the holder of a vanilla (regular) option can buy the underlying at the strike price at any time after inception.

 

Asian option: Anyone who invests in regular options will prove to their volatility. An Asian option provides a good way to reduce this volatility. These exotic options have a payoff which depends on the average price of the underlying asset over a certain period of time as opposed to at maturity.

 

Note: However the types of exotic option are explained below.

 

The final difference between exotic options and regular options has to do with how they trade. Regular options consist of calls and puts and can be found on major exchanges such as the Chicago Board Options Exchange. Exotic options are mainly traded over the counter, which means they are not listed on a formal exchange, and the terms of the options are generally negotiated by brokers/dealers and are not normally standardized as they are with regular options.   

 

Features of exotic Option  

An exotic product could have one or more of the following features:

 

·         The payoff at maturity depends not just on the value of the underlying index at maturity, but at its value at several times during the contract's life (it could be an Asian option depending on some average, a look back option depending on the maximum or minimum, a barrier option which ceases to exist if a certain level is reached or not reached by the underlying, a digital option, peroni options, range options, etc.)

·         It usually depends on more than one index (as in a basket options, Himalaya options, Peroni options, or other mountain range options, outperformance options, etc.)

·         There could be callability and putability rights which form the types of basic option.

·       It involves foreign exchange rates in various ways, such as a quanto or composite option.

 Types of Exotic Options:

·         One-touch options

·         No-touch option

·         Double one-touch

·         Double no-touch

·         Digital options

·         Asian options

·         Balloon options

·         Basket option

·         Digital Option

·         Barrier options

·         Embedded Option

·         Lock-out option

·         Look-back option

·         Single-barrier options

·         Double-trigger option

·         Weather options

 

One-touch options

A one-touch option is one of the most popular exotics that are profitable if the price of the currency pair touches a specified price within a certain period of time. Timing is especially significant with exotic options. Each broker may have different cut-off conventions but exotic options are timed against the New York cut-off, which is 10 a.m. ET. However, some brokers will set the cut-off time at 24:00 GMT (4 a.m. ET), so it is necessary to confirm the time before making a trade.

 

One-touch options are usually used for conditions when there is a strong opinion about the direction of a currency pair and you are convinced the move will happen soon. A one-touch option with a far-away target (perhaps 200 pips away) and a very short time span (24 to 48 hours) will have a very high reward-risk ratio (typically 3:1 or less) precisely because there is seldom any payout for such trade.

 

No-touch option

No-touch options are profitable only when the price of a currency pair does not reach the target by a specified time. A no-touch option offers better payout odds when the strike price is closer to the market price but the expiration date is farther away because the chances the currency will not touch the strike price diminish considerably the longer the trader has to wait. One interesting factor of the no-touch is the fact the underlying currency pair does not have to move away from the strike price in order to produce a profit. The currency pair simply has to stay relatively stagnant for the trader to collect a payout.

 

Double one-touch

In double one-touch option you can select two strike-price barriers that provides a payout if either one is touched. The double one-touch is similar to a standard long strangle or straddle option trade and it is a good tool to use when you have no strong opinion about direction of the price movements but you expect volatility to explode.

 

Double no-touch

The double no-touch option is just the opposite of the double one-touch. It is appropriate for situations in which you anticipate a range-bound market where there is no clear indication about the direction and expect volatility to be low.

 

One-touch and no-touch options are precisely time sensitive. A one-touch will be significantly cheaper the less time there is to expiration because the odds of reaching the target is greatly reduced, while a no-touch will be priced opposite to one-touch because the chances of not touching the target will diminish the more time is left on the contract.

 

However, the double one-touch and double no-touch options will have the same pricing parameters in terms of time but will vary greatly with respect to the volatility. Double one-touch options, for example, will become progressively more expensive as the barriers narrow.

 

Digital options

Digital options produce a payout only if the spot price meets or exceeds the selected barrier price at expiration. Digital options are less expensive than one-touch options with the same strike and expiration date whereas Digital premiums can be half the price of no-touch options premiums with the exact same strike price and expiration dates, but the trader has to weigh the advantage of lower cost against the risk price will settle even 1 pip below the target at expiration.

 

Asian options

Asian options are options in which the average price over a period of time is the underlying variable. Because of this, Asian options have a lower volatility and hence are rendered at cheaper relative to their European counterparts. They are commonly traded on currencies and commodity products having low trading volumes.

 

They are divided into three categories; arithmetic average Asians, geometric average Asians and both these forms can be averaged on a weighted average basis, whereby a given weight is applied to each stock that is being averaged. This is used for attaining an average on a sample with a highly skewed sample population.

 

Balloon options

An option whose notional payments increase significantly only after a set threshold is broken. It is commonly used in foreign exchange markets and these options provide greater leverage to the holder. The main idea behind the balloon option is that after the threshold is exceeded, there is an increase in regular payout.

 

Barrier options

Barrier options are path-dependent options which appear in many flavours and forms, but their key characteristic is that these types of options are either initiated or exterminated upon reaching a certain barrier level; they are either knocked in or knocked out.

 

Basket option

A basket option has all the characteristics of a standard option, except that the strike price is based on the weighted value of the component currencies which is calculated in the buyer's base currency. The buyers order the maturity of the option, the foreign currency amounts which make up the basket, and the strike price is expressed in units of the base currency.

 

At expiry, if the total value of the component currencies in the spot market is less favourable than that of the strike price of the basket option the buyer would let the option lapse. If it is more favourable, the buyer would exercise the option and exchange all of the component currencies for the pre-specified amount of the base currency (i.e. the strike price of the option).

 

Digital Option

An option whose payout is fixed only after the underlying stock exceeds the predetermined threshold or strike price is known as Digital option. It is also known as "binary" or "all-or-nothing option."

 

Embedded Option

An option which is an inseparable part of another instrument is known as embedded option. A common embedded option is usually the call provision in most corporate bonds.

 

Lock-out option

A lock-out option pays only if the value of the underlying does not go beyond a specified value whereas a double-lockout option pays if the value of the underlying asset remains confined within a specified range.

Look back option

A look back option pays depending on the highest value reached by the underlying during the contract period. Some of the look back options use the highest value reached by the underlying during the contract period to determine the amount of settlement. One formula for the lookback is:

 

Look back = Maximum (Spot Price at Expiration – Minimum Spot Price over Term of Contract, or 0)

 

Single-barrier options

Single-barrier options are options which have a single trigger price that is either above or below the strike price whereas double-barrier options have trigger prices that are above and below the strike price. Because the option may either not come into existence or pass out of existence, barrier options are generally cheaper than the standard options but the double-barrier options are the cheapest.

 

Double-trigger option

A double-trigger option, often used for insurance purposes, pays off when 2 events occur. A company or an insurance company will buy this option to limit losses that are unlikely, and it would be very expensive if they both occur. An example would be if a company had a large property loss in a foreign country due to changes in the foreign exchange rate made the loss much more expensive.

 

Weather options

Weather options pay off only for unusual weather. Many businesses that are affected by the weather, such as utilities and ski resorts, use these options to keep cash flow more consistent.

 

Exotic options are frequently used to make the price of options (and hedging) cheaper, by excluding some opportunities for exercise but one must notice to beware as Exotics can be complex, expensive and hard to understand (i.e. involve high gearing).

Which MBA? Subject matters: Marketing(by Mr.Varun Aggarwal)

The great Peter Drucker once said: "There is only one valid definition of business purpose: to create a customer." Central to understanding marketing is learning about the complex relationships between the customer and the organisation and the many actors engaged in between. Because understanding customers is pivotal to any organisation's success, marketing focuses on how to build closer and more natural relationships with them, understanding their motivations and behaviours. After all, without customers businesses founder and ultimately fail. 

Strategic marketing is built around the core concepts of customer centricism and customer value. This entails understanding what we mean by value from the customer's viewpoint: how we explore it, create it, deliver it and finally enhance and evaluate it. Subjects covered include the marketing concept; market orientation; segmentation, targeting and positioning; the marketing mix; relationship marketing; and marketing metrics. 

Because of the natural fluidity and immediacy of marketing, we are constantly building new areas of knowledge. For example, we continue to learn about customer relationships and customer-management processes—especially about how to create the perfect customer experience. Branding is also at the core of our skills and we dig into brand equity and customer-driven brand equity. 

Marketing as a philosophy and a concept must keep up to date with technological trends. As the media drives a brand's strategy the internet is becoming ever more important, particularly through social media—from both a consumer and a business-to-business perspective. Building on the ubiquity of social media, we now also work hard on the ways in which individuals build personal brands and personal marketing plans, something which students find really helpful when it comes to exploring career options.

Finance: Why and What in Finance?(by Mr.Varun Aggarwal)

The finance course examines the ways that individuals and companies raise and spend money—both how they do and how they should—so as to produce the highest expected value from investments in assets. 

An asset is an object into which an investment is made with the expectation of uncertain future cash flows. Assets can be "real" (for example, plant and equipment, new products and markets or companies) or "financial" (stocks and bonds). The study of investments in real assets falls under the rubric of corporate finance, while that of financial assets comes under capital markets. 

Corporate finance addresses how managers of companies make real investments, raise capital, control risks and return money to investors. Topics of study include cash flows, capital budgeting, capital structure and cost of capital, business valuation, mergers and acquisitions, risk management and payout policies. 

The course on capital markets examines how financial securities are priced by markets, and how to make decisions concerning investments in portfolios of different types of financial assets. Topics of study include the relation between risk and return, pricing of bonds, stocks and derivatives, term structure of interest rates, allocation of wealth among different types of securities, and institutional frictions that prevent the attainment of optimal prices. 

A few simple assumptions about investor behaviour underlie much of finance: that, all else being equal, investors prefer more wealth to less, less risk to more, and want their cash flows sooner rather than later. This leads to the idea of a discount rate, the notion that future cash flows are discounted in value to equate to the present, using a factor that reflects a risk-adjusted cost of capital relevant to the asset. 

These ideas combine to establish a key rule: we should invest in an asset only if it is expected to generate a return greater than its cost of capital, in other words, if it has positive expected value today ("positive net present value"). Since that judgment requires assessing an asset's intrinsic value, tools and methods to assess such value are central to finance. Intrinsic value, in turn, is determined by the sum of all expected future cash flows from the asset, discounted back to the present at its cost of capital. 

In its theories and practice, the core ideas in finance are founded on a set of logically cogent ideas. There are few disciplines in business schools where academic research and the real world come together as remarkably well as in finance. The ideas that underpin the field not only win Nobel prizes regularly, but they also form the basis upon which billions of dollars change hands every day. 

That said, there are many questions that finance still continues to grapple with. What causes recurrent financial crises? What is the role of "long tail" risks, and how can they be understood and analysed better? Why do we witness apparently predictable irrational investment decision-making by investors and managers? Why do markets and companies seem prone to herd behaviours? How can corporate governance and incentives be structured so as to produce value-creating outcomes for the long run as opposed to the short run? What is the right balance between free markets and regulation in enabling the best outcomes for society? 

Scholarship in finance continues to make exciting progress on all of these important questions. 

World's 15 Best Countries for Business

According to the "Forbes" here are the World's 15 Best Countries for Business:

 1) New Zealand:

New Zealand is an island country in the southwestern Pacific Ocean. The currency in here is the New Zealand dollar, informally known as the "Kiwi dollar". New Zealand was ranked 5th in the 2011 Human Development Index, 4th in the The Heritage Foundation's 2012 Index of Economic Freedom, and 13th in INSEAD's 2012 Global Innovation Index.  

The island country, New Zealand has a modern, prosperous and developed market economy. Historically, extractive industries have contributed strongly to its economy. The country is heavily dependent on international trade and has a high demand for agricultural products.

GDP: GDP: $162 billion

GDP per capita: $39,300 

Public debt as % of GDP: 36%

2) Denmark:

Denmark is a sovereign state in Northern Europe. Denmark has a modern, prosperous and developed mixed market economy. Denmark's economy stands out as one of the most free in the Index of Economic Freedom and the Economic Freedom of the World. The economy has high levels of international trade and Denmark is known as a free trade advocate in the European Union.

It has a large labour force and Employers can hire and fire whenever they want (flexibility), and between jobs, unemployment compensation is very high (security). The World Bank ranks Denmark as the easiest place in Europe to do business. Establishing a business can be done in a matter of hours and at very low costs.Denmark has a competitive company tax rate of 25%

GDP: $333 billion

GDP per capita: $59,684 

Public debt as % of GDP: 44%

3) Hong Kong:

Hong Kong is a special administrative region and is considered to be one of the world’s leading financial centers. It is known for its expansive skyline and deep natural harbour and also one of the most densely populated areas in the world with the population of seven million people. As one of the world's leading international financial centres, Hong Kong has a major capitalist service economy characterised by low taxation and free trade, and the currency, Hong Kong dollar, is the eighth most traded currency in the world as on 2010.

GDP: $244 billion

GDP per capita: $34,457

Public debt as % of GDP: 30%

4) Singapore:

Singapore, officially the Republic of Singapore, is a southeast Asian city-state off the southern tip of the Malay Peninsula. Today, Singapore has a highly developed market-based economy.

The Singaporean economy is known as one of the freest, most innovative, most competitive, and most business-friendly. The 2011 Index of Economic Freedom ranks Singapore as the second freest economy in the world, behind Hong Kong. According to the Corruption Perceptions Index, Singapore is consistently ranked as one of the least corrupt countries in the world, along with New Zealand and the Scandinavian countries. The economy depends heavily on exports and refining imported goods, especially in manufacturing.

GDP: $240 billion

GDP per capita: $46,241

Public debt as % of GDP: 118%

5) Canada:  

Located in the northern part of the continent, it extends from the Atlantic to the Pacific and northward into the Arctic Ocean. Canada is the world's second-largest country by total area, and its common border with the United States is the world's longest land border. It is a member of the Organisation for Economic Co-operation and Development (OECD) and the G8, and is one of the world's top ten trading nations, with a highly globalized economy. Canada has a mixed economy and manufacturing, mining and service sectors have transformed the nation from a rural economy to an industrialized one. The country is one of the world's largest suppliers of agricultural products.

GDP: $1.7 trillion

GDP per capita: $50,345

Public debt as % of GDP: 87%

6) Ireland:

The economy of Ireland mainly focuses on services and high-tech industries. Exports play a very important role and Ireland is considered to be one of the world’s most profitable countries.

GDP: $217 billion

GDP per capita: $48,423 

Public debt as % of GDP: 105%

7) Sweden:

Sweden is an export-oriented mixed economy. Timber, hydropower and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. The country ranks among the highest in telephone and Internet access penetration. The country’s engineering, telecommunications, automotive and pharmaceutical industries are of great importance.

GDP: $538 billion

GDP per capita: $56,927

Public debt as % of GDP: 38%

8) Norway:

Today, Norway ranks as the second wealthiest country in the world in monetary value, with the largest capital reserve per capita of any nation. According to the CIA World Factbook, Norway is a net external creditor of debt. Norway maintained first place in the world in the UNDP Human Development Index (HDI) for six consecutive years (2001–2006), and then reclaimed this position in 2009 and 2010. The standard of living in Norway is among the highest in the world. Norway is a mixed economy. It features a combination of free market activity and large state ownership in certain key sectors. It is also one of the largest oil exporters in the world.

GDP: $486 billion

GDP per capita: $98,102

Public debt as % of GDP: 58%

9) Finland:

Finland has a highly industrialized mixed economy with a per capita output equal to that of other European economies such as France, Germany, Belgium or the UK. The largest sector of the economy is services at 66%, followed by manufacturing and refining at 31%. Although Finland was relatively late for industrialization, the country’s economy grows rapidly. The country is highly integrated in the global economy, and international trade.

GDP: $266 billion

GDP per capita: $49,391

Public debt as % of GDP: 49%

10) United Kingdom:

The UK has a partially regulated market economy. Based on market exchange rates the UK is today the sixth-largest economy in the world and the third-largest in Europe after Germany and France, having fallen behind France for the first time in over a decade in 2008. United Kingdom was the world’s first industrialized countries and is a now considered as one of the great powers in with its economic influence. The country has a partially regulated market economy.

GDP: $2.4 trillion

GDP per capita: $38,818

Public debt as % of GDP: 86%

11) Australia:

Australia is a wealthy country with a market economy with high GDP per capita and a low rate of poverty. The Australian dollar is the currency for the nation. The country was ranked second in the United Nations 2011 Human Development Index and first in Legatum's 2008 Prosperity Index. All of Australia's major cities fare well in global comparative livability surveys; Melbourne reached first place on The Economist's 2011 and 2012 world's most livable cities lists, followed by Sydney, Perth, and Adelaide in sixth, eighth, and ninth place respectively. The country is a major exporter of agricultural products.

GDP: $1.4 trillion

GDP per capita: $60,642

Public debt as % of GDP: 27%

12) United States:

The United States has a capitalist mixed economy, which is fueled by abundant natural resources, a well-developed infrastructure, and high productivity. The United States is the largest importer of goods and second largest exporter, though exports per capita are relatively low. China is the largest foreign holder of U.S. public debt.Apart from being known for its large exports the country is also one of the largest importers of goods.

GDP: $15.1 trillion

GDP per capita: $48,442

Public debt as % of GDP: 68%

13) Belgium:

Belgium's strongly globalized economy and its transport infrastructure are integrated with the rest of Europe. Its location at the heart of a highly industrialized region helped make it the world's 15th largest trading nation in 2007. The economy is characterized by a highly productive work force, high GNP and high exports per capita. It is characterized by high productive work force. The country is heavily is service-oriented and has an integrated transport infrastructure.

GDP: $512 billion

GDP per capita: $46,469

Public debt as % of GDP: 100%

14) Netherlands:

The Netherlands has a developed economy and has been playing a special role in the European economy for many centuries. Since the 16th century, shipping, fishing, trade, and banking have been leading sectors of the Dutch economy. The Netherlands is one of the world's 10 leading exporting countries. Foodstuffs form the largest industrial sector. Other major industries include chemicals, metallurgy, machinery, electrical goods, and tourism. The Netherlands has the 17th largest economy in the world, and ranks 10th in GDP (nominal) per capita.The Netherlands has a market-based mixed economy that is well known for its liberal stance.

GDP: $836 billion

GDP per capita: $50,087

Public debt as % of GDP: 65%

15) Switzerland:

Switzerland has a stable, prosperous and high-tech economy. In 2011, it was ranked as being the wealthiest country in the world in per capita terms (with 'wealth' being defined to include both financial and non-financial assets). Switzerland has the highest European rating in the Index of Economic Freedom 2010, while also providing large coverage through public services. The World Economic Forum's Global Competitiveness Report currently ranks Switzerland's economy as the most competitive in the world. Switzerland is known as one of the most stable, prosperous and wealthiest economy. The high tech economy’s main sector is manufacturing and the Switzerland’s largest exported goods are chemicals.
GDP: $636 billion
GDP per capita: $80,391
Public debt as % of GDP: 52%