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The Rise of Institutional Investment in America and Its Adverse Impact on Competition
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[Name of the Institution]
The Rise of Institutional Investment in America and Its Adverse Impact on Competition
As the wages remained stagnant over the years while the corporate profits kept soaring, Mr. Trump capitalized on the ideal opportunity of channeling populist anger against big corporations. He also raised a question against mergers of big businesses such as AT&T and Time Warner, arguing that they resulted in a concentration of power in the hand of too few CITATION Pos16 \l 1033 (Posner, Morton, & Weyl, 2016). Although mergers do pose a threat to competition in markets, it is the lesser known astonishing rise of institutional investors over the years that pose the biggest threat to competitive markets. An institutional investor can be defined as a large company like an insurance company, a mutual fund company or an asset management firm, that purchases stock in very large quantities CITATION Jam19 \l 1033 (Chen, 2019). Institutional investors usually experience fewer protective regulations they are in a much better position to protect themselves. Types of institutional investment include endowment funds, mutual funds, pension funds, commercial banks, and insurance companies. From the 1950s to 2019, institutional investors have raised their share in the stock market from 7 percent to nearly 70 percent CITATION Pos16 \l 1033 (Posner, Morton, & Weyl, 2016). The largest companies who own nearly 88% stocks in the Standard % Poor’s 500 index are BlackRock, Vanguard and State Street. Some economist highlight that never has the US economy concentrated to this extent since the Gilded Age. This growing power has taken its toll on the middle-class living.
The problem with institutional investment is not the mammoth size of their investment only. Part of the problem is also the way they invest. What kills competition is the Institutional investors having stakes in all the competitor companies of a business. For instance, Vanguard alone is either the biggest or the second biggest investor in the banking sector. It owns assets worth $3.5 trillion in JPMorgan, Bank of America, Chase, Wells Fargo, PNC Bank, Citigroup, and U.S. Bancorp. This pattern recurs across the economic landscape of the U.S. Vanguard and BlackRock are not only the largest owners of Microsoft and Apple, but also among the top 3 owners of Rite Aid, and Walgreens. In GE, Whirlpool, and Electrolux, again, Vanguard, State Street and BlackRock are the largest owners. The same patterns appear to recur in all the major industries of the U.S. from airlines to soft drinks, and from insurance to infrastructure.
Economic theory is very clear on the impact of a single investor with substantial shares in competing companies. The investor in such instances can easily keep the prices high and wages low. The result is price-wage competition which lowers both stock values and profits CITATION Pos16 \l 1033 (Posner, Morton, & Weyl, 2016). If the institutional investors hold the stocks passively, they can reduce the competition. In the airline industry, ticket prices saw an increase of 10% in 2014 primarily because of institutional ownership CITATION Aza18 \l 1033 (Azar, 2018). Less competition in the airlines' industry has resulted in higher costs for the public and increased revenues for the airlines CITATION Sol16 \l 1033 (Solomon, Steven Davidoff, 2016). The increases in bank fees and interest rate reductions can also be ascribed to common or institutional ownership of banks. If there is less competition, the net result is higher fares for the consumers and increased profits for the owners of businesses. According to a study conducted by Jose Azar of the firm named Charles River Associates, the cross-ownership of shares in significant amounts by institutional shareholders has raised the fares by decreasing competition from 2001 to 2013. The study attributed 3 to 5 percent increase per annum to institutional investment in airlines industry CITATION Sol16 \l 1033 (Solomon, Steven Davidoff, 2016).
Some institutional investors, rules and investment culture is such that portfolios become dominated by public market investors. For instance, insurance companies and public pension funds are both subjected to state portfolio regulations. They, therefore, are required to have a certain amount of their investment securities publically traded. They may be compelled to limit their investment in illiquid (private) investments.
So far as the legality of such ownership is concerned, according to Section 7 of the Clayton Antitrust Act, they are illegal. The Act categorically makes liable such firms that may substantially lessen the competition or create monopolies. Moreover, the Supreme Court also prohibits purchases solely meant for investment. Since 2016, the Supreme Court has been taking interest in institutional investors to understand how big investors exploit businesses by buying ownership across a particular business. It has become clear after conducting many surveys to the judges that several increases in prices of consumer goods or serves are primarily because of institutional investment.
Laws are in place but unfortunately, these laws are not being enforced in letter and spirit. To do away with monopolies, the government should not only enforce Clayton Anti-trust but also support small stakeholders. There should be diversification across industries to restore and maintain competition. It will ultimately raise the living standards of the working class and provide a healthy environment for competition.
Currently, institutional investment is at its historical high. It is killing competition and cutting the wages of the middle classes. The costs for consumers are constantly increasing. Such problems have also intensified the politics of populism in America. To do away with the monopolies of the Gilded Age, the government of Theodore Roosevelt began a crackdown that ushered in the Progressive Era in the early 1900s. Today, it is high time that a legal campaign on similar lines is launched to deal with the all-time high institutional investment in today's America.
References
BIBLIOGRAPHY Azar, J. (2018). Anticompetitive Effects of Common Ownership. Journal of Finance, 2018.
Chen, J. (2019). What is an Institutional Investor? Retrieved from Investopedia: https://www.investopedia.com/terms/i/institutionalinvestor.asp
Posner, E., Morton, F. S., & Weyl, G. (2016). A Monopoly Donald Trump Can Pop. Retrieved from The New York Times: https://www.nytimes.com/2016/12/07/opinion/a-monopoly-donald-trump-can-pop.html
Solomon, Steven Davidoff. (2016). Rise of Institutional Investors Raises Questions of Collusion. Retrieved from The New York Times: https://www.nytimes.com/2016/04/13/business/dealbook/rise-of-institutional-investors-raisesquestions-of-collusion.html
Subject: Economics
Pages: 3 Words: 900
Comparative advantage of Vietnam in the coffee industry
Student’s name
Institution
Date
Abstract
Over the last decade, the Coffee industry in Vietnam has improved to become the second largest export. This is due to several actions, which the government has initiated in the last years. This study therefore, intends to analyze the comparative advantage of Vietnam Coffee industry. It also lo0ks into other markets based on their performance to establish the competitiveness of the coffee industry in Vietnam compared to other markets. In order to complete the research the qualitative and secondary research methods, will be used to collect the data. The data to be analyzed scientifically using SPSS and Excel to get accurate result.
Introduction
Traditionally, coffee has never been an important agricultural product for the Vietnamese until very recently. It is a new product in the Vietnamese industry and major economic policies have been enacted to streamline its operational. The coffee industry has emerged number two export product after rice and therefore, it contributes highly to the economic development of the country CITATION Mic17 \l 1033 (Leon, 2017). It was introduced in Vietnam when the coffee was flourishing in the world trade and therefore, since 1994, it has become a major export product with an estimated value of US 2 billion annually. According to Tat (2017), coffee has contributed to the industrialization, economic integration and modernization of Vietnam. Studies have also established that Vietnam is the second largest producer of coffee globally after Brazil and therefore, coffee is a significant product to the economic growth of Vietnam. As stated by Best (2014) coffee has brought a great opportunity for the people of Vietnam and over the last year it has brought products closer to the people. However, despite the enormous growth it has brought to the country, coffee industry is also faced with some challenges, which hinder its growth. Some of these challenges are lack of policies to address the coffee challenges being faced by coffee farmers and to stabilize income.
However, the global coffee market has become very competitive and known coffee producers’ nations like Brazil, Columbia and Ethiopia are applying different methods to increase their competitiveness in the market. The global coffee trade has realized a remarkable improvement from 1995, with high level of fluctuation being realized. It is estimated that the production of coffee increased between 1995 and 2015 by 65% from 87 million of bags to 147 million of bags of coffee. This is a remarkable improvement in the industry and therefore, coffee became one of the biggest contributors to the GDPs of several countries in the world. In Vietnam, passes other products to become second after rice and therefore, the economic impact of coffee is huge. Investigating the comparative advantage of the Vietnamese coffee industry is significant. This study therefore, analyzes the competitiveness of Vietnamese coffee to in the EU market and what has been done to achieve the high competitive advantage.
It is also important to point that between 2010 and 2016, known coffee producers like Brazil, Columbia, Indonesia and Ethiopia have increased their production level CITATION Tör17 \l 1033 (Michalel & Patterson, 2017). The global coffee market is therefore, filled with highly produced coffee. In the global coffee trade, the trade has increased significantly from $12 billion to $30 billion worth of trade. However, in 2011 the global trade experienced decline in trade due to challenges being experience by farmers and the market competitiveness. As a result the global market experience decline in export but market has regained its market performance. It is therefore, clear that several challenges exist in the coffee industry and every producer implement unique strategies to maintain competitive advantage in the market. Therefore, this study focuses on the comparative advantage of Vietnamese Coffee industry.
Statement of the problem
Coffee is an essential agricultural product and part of global trade. Even though its production is exceptionally concentrated, it majorly sold to developed markets. This has created lean market for coffee from around the world and this make the market to be very competitive CITATION BBa99 \l 1033 (Balassa, 1999). Most coffee from developing and emerging economies such as Vietnam are sold either in Europe, and the United States and this make the market to be very competitive. The Vietnam coffee industry therefore, must have a better competitive advantage to compete with coffee with Brazil, Ethiopia and other countries. Recent study indicates that Columbia and Brazil are the biggest exporters of coffee and there are also other emerging exporters like Ethiopia, Uganda and Honduras CITATION Ray07 \l 1033 (Raynolds, Murray, & Heller, 2007). With several countries producing coffee for global market, the market competition is therefore, very stiff and this has also surge the prices of coffee as well. There also unreasonable specialization methods or pattern being used by different countries to produce coffee CITATION Wor19 \l 1033 (World Bank, 2019). It is also evident that there are stability and duration tests, which indicate a significant charging trend and this means fierce competition in the coffee market.
Purpose of the study
The main purpose of the study is to examines the actual potential competitive advantage of Vietnam coffee industry. It also look at the performance of the Vietnam coffee in the world coffee market and the reason for its better performance compared to coffee from other countries. Studies have shown that Vietnam is blessed with favorite land and climate for agricultural development CITATION TẮT17 \l 1033 (TẮT, 2017). Most farmers use high technology and this has been essential in making a breakthrough in rural area where coffee is doing better. It is therefore; investigate the competitiveness of the coffee industry with the focus on Vietnam as one of the largest coffee producer CITATION Tho18 \l 1033 (Ho, 2018). This study, test the hypothesis whether the high and quality technology is a competitive advantage in the coffee industry. It is noted that Vietnam coffee farmers have adopted high technology in the production of coffee, the focus of the study is to established what impact it has created to the Vietnam coffee industry in the global market. This research also focuses on the competitiveness of Vietnamese coffee being exported to the European Union market CITATION Tru17 \l 1033 (True Priice, 2017). The span of the research centers on the competitiveness of coffee being exported to the EU market scope and this mainly focus between 2010 and 2016 period. It also narrates the navigation, which provides several solutions for the problem being faced by the industry.
Background of the study
Studies have indicated that Vietnam has a competitive advantage in the coffee industry CITATION Gio04 \l 1033 (Giovannucci, Lewin, Varangis, & Swinkels, 2004). Vietnamese farmers have introduced innovative techniques to ensure that they produce high quality of coffee, which can compete with the coffees in the global market. It also has favorite land and climate, which have facilitated the growth of coffee industry in the country CITATION VyP17 \l 1033 (Phuong, 2017). Despite other challenges which the coffee industry has faced in the past, Vietnamese coffee industry still remains competitive due to policies, which the government has implemented to stabilize the coffee industry and to ensure that its coffee can compete in the global market CITATION Tra14 \l 1033 (Juong, 2014). The question is what has the Vietnamese done to make its coffee more competitive? Studies have established that the government provides incentives to farmers and loans and therefore, this improved coffee production hence high market competitiveness CITATION Lin15 \l 1033 (Stockman, 2015). This therefore, has made the coffee industry to thrive. It is pointed by Stockman (2015) that coffee has started to replace rice in most part of rural areas and this is because of the support it gets from the government. It is therefore, means that many farmers produce high quality of coffee hence it gives Vietnam an edge in production. Researched has indicated that Vietnam is the third largest producer of coffee and this gives it an advantage in the market. CITATION Ibr10 \l 1033 (Ibrahim, 2010)
This study therefore, focuses in testing the hypothesis whether government incentives and high quality of technologies applied by farmers is a key to comparative advantage. Based on the previous research, coffee farmers receive 60% support from the government and this has become an important factor in the growth of coffee in Vietnam CITATION NPT14 \l 1033 (Truong, 2014). It is therefore evident that the government of Vietnam has played a critical role in ensuring that the industry grows to compete in the global market. Research shows that Vietnam has shifted from being a known rice producer to a coffee producer within a span of two decades CITATION Boa13 \l 1033 (Boansi & Crentsil, 2013). The study therefore, established the impact of such shift in production of rice to coffee and what made such action among the farmers as some of the comparative advantage Vietnam has over the rest of coffee producer.
Objective and Aim of the study
The main aim of the study is to establish the performance of Vietnam coffee industry and its competitive advantage over the rest of the coffee producers.
Research Question
The research question of the study focuses on the competitive advantage of the Vietnam coffee industry. The study will therefore, test whether the high and quality technology applied by coffee farmers in Vietnam has impact in the global coffee market. “Does the high and quality technology being used by farmers have impacted the position Vietnam Coffee in the global market?”
Methodology
The research will be conducted using qualitative and quantitative research method. In order to achieve the objective of the study, secondary research method will also be used. According to Pavlov (2015), qualitative research method is the scientific method of collecting opinions, and views of people using a scientific method. It can be done through groups or individual interview. In this research, the questionnaires or survey will be used to collect the views of various stakeholders in the coffee industry. The questionnaire with research questions will be sent through an email to selected participants. The selection of participants will be based on age, gender, profession and years of experience in the coffee industry. The research will be completed using 150 participants drawn from different companies, farmers and even the government officials. The data obtained from would be analyzed using scientific techniques and applications. It will be analyzed using SPSS and excel and the result obtained would be articulate for future use.
The Secondary research method will also be used to complete the study. This will involve the use of different databases to obtain appropriate and relevant journals for the research. The Google Scholar, Pre-Quest and other relevant databases to be used. In order to get relevant information various subjects or topic such as comparative advantage of coffee industry in Vietnam to used to conduct search. The data obtain will be analyzed and few shall be used to complete the research.
Limitation of the study
The research was encountered some challenges and some of these challenges delayed the completion of the study. The time frame and finances required for the research to be completed was limited. This provided limited time and resources and therefore, it took much time to complete the research. The funds were required to facilitate transport, collection of the data, and analysis.
Ethical Consideration
The study intends to respect the privacy and secrecy of information obtained from participant for the purpose of this study.
Conclusion
It is therefore, essential to point that Vietnam coffee industry has received support from the government, and policies realignment. This paper, therefore, intends to investigate the comparative advantage of Vietnamese coffee industry. It also intends to test the hypothesis whether high quality technologies being applied by farmers give the Vietnamese coffee more advantage in global market. It investigates impact of these competitive advantages in the coffee market. The study to be conducted using qualitative and the secondary research method in order to answer the research question and the hypothesis of the study.
References
BIBLIOGRAPHY Balassa, B. (1999). Trade Liberalization and Revealed Comparative Advantage. The Manchester . The Manchester School , 2-15.
Best, N. T. (2014). Vietnam’s Coffee Export Industry: An Analysis of the Potential Long-term Macroeconomic Impacts. Coffee Industry Performance in the global market , 12-35.
Boansi, D., & Crentsil, C. (2013). Competitiveness and determinants of coffee exports, producer price and production for Ethiopia. In: Munich Personal RePEc Archive , 2-15.
Francic, M. M. (2018). Assessment of performance of Coffee in the market. Global Information Network , 2-45.
Giovannucci, D., Lewin, B., Varangis, P., & Swinkels, R. (2004). The Socialist Republic of Vietnam Coffee Sector Report. SSRN Electronic Journal , 2-38.
Ho, T. Q. (2018). Economic Analysis of Sustainable Coffee Production in Vietnam . Performance of Coffee in Vietnam , 12-38.
Ibrahim, H. W. (2010). A Review on the Competitiveness of Global Supply Chain in a Coffee Industry in Indonesia. International Business Management. , 2-14.
Juong, T. T. (2014). Comparative and competitive advantages of the coffee industry in the Central highlands of Vietnam under trade liberalization . Food and Agriculture organization of the United States , 2-15.
Leon, M. (2017). Vietnam Coffee Market - Growth, Trends and Forecasts (2018 - 2023). MArket performance of Coffee in globally , 2-31.
Michalel, J., & Patterson, P. (2017). Comparative advantages in the global coffee Industry. Jorunal of Economic and Business in export , 2-18.
Nhien, N. T. (2016). The competitiveness of Vietnamese coffee into the EU market. Internationa Journal of Business and Economic Studies , 2-18.
Pavlov, I. (2015). Differences Between Qualitative and Quantitative Research Methods. Research and Research Methods , 2-34.
Phuong, V. (2017). Research Report on Coffee Industry in Vietnam, 2017-2021. https://www.researchandmarkets.com/reports/4226185/research-report-on-coffee-industry-in-vietnam , 2-31.
Raynolds, L., Murray, D., & Heller, A. (2007). Regulating sustainability in the coffee . sector: A comparative analysis of third-party environmental and social certification initiatives. Agriculture and Human Values, 24, pp.147-163. , 3-15.
Stockman, L. G. (2015). Causality and Comparative Advantage. Vietnam’s Role in the Post-ICA International Coffee Market , 2-15.
TẮT, T. (2017). THE COMPARATIVE ADVANTAGE OF COFFEE PRODUCTION IN LAM HA DISTRICT, LAM DONG PROVINCE, VIETNAM: A DOMESTIC RESOURCE COST APPROACH. VAN HIEN UNIVERSITY JOURNAL OF SCIENCE , 8 (2), 82-96.
Török, Á., Jámbor, A., & Mizik, T. (2016). Comparative advantages in the global coffee trade. http://unipub.lib.uni-corvinus.hu/3153/1/Torok_Aron_IFAMA%20_coffee_Miami.pdf , 2-15.
True Priice. (2017). The True Price of Coffee. https://trueprice.org/wp-content/uploads/2016/04/TP-Coffee.pdf , 2-15.
Truong, N. (2014). The comparative advantage of rubber production industry a. Gia Lai Province, Economics Faculty , 2-15.
World Bank. (2019). Vietnam - Coffee sector report. http://documents.worldbank.org/curated/en/458011468172449689/Vietnam-Coffee-sector-report , 2-14.
Subject: Economics
Pages: 6 Words: 1800
Name of Student
Name of Professor
Name of Class
Day Month Year
Comparison of the Economic
Introduction:
Every country possesses uniqueness, strengths, and weaknesses. Various economic elements and factors determine its reputation and the overall reputation in front of the international community. Australia and Canada are developed countries. Both the nations are progressing with growing GDP. There are various indicators which can be used to compare both the countries. The main purpose of the paper is to analyse the economies of Australia and Canada. Being a developed nation does not imply the country acquires all the potential resources or outcome. Several grave challenges are also faced problems similar to a developing country or other developed countries. The problem behind the growing pattern of the economy relies on the number of economic factors like trade, trade pattern, fiscal and monetary policy, inflation, and unemployment rate.
Discussion:
Canada and Australia have their own uniqueness and problems which determine their economic growth. Canada is the country with the population of 36.7 million people while Australia has lower population than Canada. The total population of Canada is 24.8 million. Similar to the phenomenon of population increase, economy size is also different. Canada’s economy is larger than the economy size of Australia. The total GDP of Canada is 1.76 trillion dollars while GDP per capita is $48,256. The total GDP of Australia is 1.2 trillion dollars and GDP per capita is $50,334 ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"WGYNiUi4","properties":{"formattedCitation":"({\\i{}Canada Economy})","plainCitation":"(Canada Economy)","noteIndex":0},"citationItems":[{"id":236,"uris":["http://zotero.org/users/local/mlRB1JqV/items/HQ76C5IX"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/HQ76C5IX"],"itemData":{"id":236,"type":"webpage","title":"Canada Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption","abstract":"Learn more about the Canada economy, including the population of Canada, GDP, facts, trade, business, inflation and other data and analysis on its economy from the Index of Economic Freedom published by The Heritage Foundation.","URL":"//www.heritage.org/index/country/canada","shortTitle":"Canada Economy","language":"en","accessed":{"date-parts":[["2019",4,11]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Canada Economy). Therefore, it can be observed that the total GDP of Canada is higher in comparison to Australia but the GDP per capita of Australia is higher. The primary factor causing the presence of this high per capita GDP of Australia is the policy for healthcare. Australia is more concerned toward healthcare therefore, the standard of living is much improved there. However, the overall growth rate is higher in Canada with 3.0% while Australia has a 2.3% growth rate.
There are some specific and unique features about both countries which somehow determine the economic activities including, trade, fiscal and monetary policy, and international relations. The economy of Australia is unique due to its dominance over the service sector. The service sector of Australia comprises seventy percent of GDP and employs about seventy-nine percent of the labor force. Canada is unique from other developed countries due to its dominance over the primary sector where the oil industry is the most powerful. The main industry sectors of Australia are perceptibly the sectors that comprise the 70% of GDP followed by tourism, healthcare, media, and entertainment. Australia is home to breathtaking landscapes that attracts thousands of tourists every year. Australia comprehends the significance of tourism and making the best use of the resource to increase economic growth. Healthcare is also one of the priorities of Australia where the sector is not only used for the improvement of the living standards but also to enhance the trade. For Canada, the service sector is diverse, comprises seventy percent of total GDP and provides a large amount of employment. Other main industries of Canada are energy, manufacturing, and agriculture sector. In most of the countries, agriculture becomes the main source of economic growth especially in developing countries but in the case of Canada and Australia, agricultural sector is not even listed in the top five industries.
Although both the countries are developed countries and reflect positive growth however, they both are in different phases of the business cycle. Canada is in the phase of expansion. The low rate of dollar is beneficial for the exporters of Canada. Besides the exchange rate, the trade agreement of NAFTA is beneficial for the expansion of trade in various European countries. However, due to the increase in the interest rate of America borrowing becomes difficult for Canada. On the other hand, Australia is in the recovery phase because of the high unemployment rate ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"OL0RFQ56","properties":{"formattedCitation":"({\\i{}Christopher Kent: The Business Cycle in Australia})","plainCitation":"(Christopher Kent: The Business Cycle in Australia)","noteIndex":0},"citationItems":[{"id":237,"uris":["http://zotero.org/users/local/mlRB1JqV/items/437WFLN6"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/437WFLN6"],"itemData":{"id":237,"type":"article-journal","title":"Christopher Kent: The business cycle in Australia","page":"11","source":"Zotero","language":"en"}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Christopher Kent: The Business Cycle in Australia). The other reason that can lead to the crisis is the use of spare capacity. An important situation arises by comparing both the countries that Australia is in the recovery phase because of the unemployment rate while Canada has a higher unemployment rate than Australia. One of the crucial factors behind this situation is the inflation rate. In Canada, the unemployment rate is 6.3% with the inflation rate of 1.6% while Australia has a 5.6% unemployment rate with 2.0% inflation. Philips curve indicates that with the higher inflation rate, unemployment decreases but this model does not seem to be working while making a comparison between Australia and Canada ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"JUVJMQSE","properties":{"formattedCitation":"({\\i{}Australia Economy})","plainCitation":"(Australia Economy)","noteIndex":0},"citationItems":[{"id":238,"uris":["http://zotero.org/users/local/mlRB1JqV/items/MAH5D69Z"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/MAH5D69Z"],"itemData":{"id":238,"type":"webpage","title":"Australia Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption","abstract":"Learn more about the Australia economy, including the population of Australia, GDP, facts, trade, business, inflation and other data and analysis on its economy from the Index of Economic Freedom published by The Heritage Foundation.","URL":"//www.heritage.org/index/country/australia","shortTitle":"Australia Economy","language":"en","accessed":{"date-parts":[["2019",4,11]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Australia Economy).
To control the unemployment and inflation both the nations have systematic government structure along with the useful fiscal and monetary policy. Australia consists of the House of Representatives, Senate, and queen where parliament passes the laws. Parliament develops different policies that redirect the spending of the administration towards growth and jobs. The monetary policy focuses on the problems including price stability, employment rate, welfare and prosperity of the economy. Canada has both the constitutional monarchy and queen as the head of the state. Prime minister is the ruling body of the government. He ensures the establishment of policies to enhance the growth and living standards of the people. Canada’s monetary policy has two main objectives to achieve. There are more concerned about the flexible exchange rate and maintaining the inflation rate. Both countries understand their problems and economic factors behind these problems. Therefore, both are trying to harness maximum potential from both the fiscal and monetary policy.
The analysis of international relation indicates that both countries have a strong trade relationship with other nations and free trade is an effective factor for the economic growth of the nation. The main exports of Australia are BHP Billiton (diversified metals), Fortescue Metals Group (iron, steel), oil, and gas. While the primary imports include car, computer, broadcasting equipment, and delivery trucks. China, Japan, South Korea, and India are the topmost trade partners. As Australia has a strong relationship with Asian countries, the country is negotiating with these countries and encouraging FTA to increase free trade ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"vvlco0uQ","properties":{"formattedCitation":"(\\uc0\\u8220{}Australia\\uc0\\u8217{}s Trade Balance\\uc0\\u8221{})","plainCitation":"(“Australia’s Trade Balance”)","noteIndex":0},"citationItems":[{"id":239,"uris":["http://zotero.org/users/local/mlRB1JqV/items/RMPAGVLG"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/RMPAGVLG"],"itemData":{"id":239,"type":"webpage","title":"Australia’s trade balance","container-title":"Department of Foreign Affairs and Trade","abstract":"Australia's trade balance is the difference between what we export and what we import.","URL":"http://dfat.gov.au/trade/resources/trade-statistics/pages/australias-trade-balance.aspx","language":"en-us","accessed":{"date-parts":[["2019",4,11]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Australia’s Trade Balance”). Canada imports vehicles, machinery, electrical equipment, and mineral fuel. Famous exports include crude oil, petroleum gas, and coal. Main trade partners of Canada are the United States, China, and the United Kingdom. Canada is the largest exporter of crude oil to America therefore free trade policy as NAFTA is beneficial for the country. However, Canada is also trying to negotiate with China on FTA which can create difficulties for the country because of the trade war between America and China. The currency of Canada and Australia is Canadian dollars and Australian dollars. Canadian dollar is stronger than the Australian dollar. The fundamental factor contributing to the difference is the relationship between Canada and America in terms of trade.
Conclusion:
Australia and Canada are both developed countries with their own unique features and economic problems. Canada is better in terms of GDP, growth rate, trade, exchange rate, and pursues the expansion phase of the business cycle. Besides, Australia has stable economic growth. Its economy is improved in the framework of GDP per capita, unemployment rate, inflation, living of standards but somehow it is facing the recovery phase of the business cycle. Both the countries have effective fiscal and monetary policy and trade relationship is also positive. It cannot be concluded which country is better but it is obvious that they are looking forward to utilizing all the best opportunities to increase economic growth.
Works Cited
ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Australia Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. //www.heritage.org/index/country/australia. Accessed 11 Apr. 2019.
“Australia’s Trade Balance.” Department of Foreign Affairs and Trade, http://dfat.gov.au/trade/resources/trade-statistics/pages/australias-trade-balance.aspx. Accessed 11 Apr. 2019.
Canada Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. //www.heritage.org/index/country/canada. Accessed 11 Apr. 2019.
Christopher Kent: The Business Cycle in Australia. p. 11.
Subject: Economics
Pages: 4 Words: 1200
Jessica Shaffer
Case Study
3rd June, 2019
Introduction
Price discrimination is the practice of setting more than one price for the same product (service) when these price differences are not justified by differences in costs. The usual practice of price differentiation depending on the quality of a product or service should be distinguished from price discrimination. It should also be noted that price discrimination is possible only in the markets of imperfect competition when the manufacturer (seller) has monopoly power (in one degree or another controls pricing and production). Perfect competition inevitably leads to the establishment of a single price for the same product. In practice, the model of perfect price discrimination is somewhat utopian, since for this the seller must know the subjective price of each particular buyer. However, examples of the application of this pricing model can be found in individual business activities. For example, a private psychologist (or a lawyer, designer, tutor , etc. ), having information about the incomes of his clients, may assign different tariff plans for the services provided to them (Maxwell, 2007).
Examples of price discrimination
One of the world's most famous lingerie selling companies, Victoria's Secret, has turned out to be an occasional pioneer in the field of dynamic prices. In 1996, a marketing campaign was created on the occasion of the release of a new collection of linen, while different segments of consumers received in the mail catalogs with different prices for the same goods (Armstrong and Vickers, 2001).
One very attentive client, who considered the company's actions illegal, accused Victoria's Secret of fraud, but, to her great regret, lost the legal process with a bang, as "the use of flexible pricing strategy in retail is completely legal." Moreover, the lawsuit against the plaintiff was sanctioned for filing a “frivolous lawsuit”. Especially popular among retailers is the second-degree price discrimination model. For example, in stores Men's Wear house, a leader in the specialized retail of men's clothing, you can find the following proposal: one suit for $ 299, two suits for $ 500.The pharmaceutical company GOLDPHARMA also practices this approach: 24 tablets are sold for $ 29.08, and 96 - for only $ 60.15.
When it comes to price discrimination of the third degree, most often I recall special discounts for pensioners and students. :) In fact, there are much more examples of using this strategy:
Customers of the online store of medical cosmetics Drugstore.com have the opportunity to purchase a GOLD CARD discount card on all products of GNC, the world's largest manufacturer of natural dietary supplements;
Pharmaceutical company Fraser uses geographic price discrimination: for example, Canadians can buy 10 tablets of Viagra at a price of $ 69.95, while on the websites of American online stores the company has a completely different price - $ 103.99.
“The Museum of Modern Art in New York City announced that it will raise ticket prices for adults from $20 to $25, beginning September 1st, making it the most expensive museum in the city. While the Metropolitan Museum of Art also hiked suggested admission fees to $25 earlier this summer, museum-goers could conceivably pay less if they wished — the price is suggested, but not required. The hike will make the entrance to MoMA seven dollars more expensive than the next priciest museums in NYC — the Whitney, which asks $18 dollars for entrance, and on the Upper East Side, both the Neue Gallerie and the Guggenheim charge $18. Further downtown, the New Museum asks for $12, while the Brooklyn Museum’s tickets go for $10”.
This group includes those museums that announce a certain price, but it is not obligatory to pay. For example, a ticket to the Metropolitan Museum of Art (The Metropolitan Museum of Art) costs $ 25, but you can pay much less. The same applies to the American Museum of Natural History, the same one where the film “Night at the Museum” was shot (2006). Not only have the museums of Manhattan fallen into this category. For example, (Brooklyn Museum), (The Queens Museum), the Staten Island Museum (Staten Island Museum) can be visited by paying as much as you see fit. If you like modern art, visit the New Museum on Thursday from 19:00 to 21:00, and the Museum of Modern Art on Friday after 16:00, which will save you $ 25. If the Museum of Modern Art is not enough for you, go to the Whitney Museum of American Art on Friday after 18:00. If you agree that “the most important art is cinema,” then your path lies in Astoria, a region of Queens. There is the Museum of the Moving Image, where you will see costumes from the movie “Moulin Rouge!” And others, make-up, scenery, cameras, you can try yourself as a sound engineer or animator. If you want to save $ 12, visit the museum on Friday after 16:00 (Varian, 1989).
Consumer surplus
“Second-degree price discrimination” is the sale of products in separate batches with the establishment of different prices on them. “In real life, price discrimination” of the second degree is most often used in wholesale trade. The lowest price is set for goods purchased by large wholesale. When purchasing the same product in medium and small lots, the price increases. As a result, the relationship between sales and the monopolist’s total revenues is non-linear. In this case, the monopolist selects only part of the consumer surplus.
Producer surplus
“The producer surplus is the difference between the market price and the lowest price a producer would be willing to accept. For producers, a surplus can be thought of as profit, because producers usually don't want to produce at a loss”. The two together create an economic surplus”. The ideal for the monopoly is to be able to charge everyone the highest price they are willing to accept, with marginal cost as the lower threshold. In this extreme case of "perfect discrimination", the producer can appropriate the entire surplus of the consumer. The profit of the monopolist is then equal to the total surplus. This result is only possible if the monopolist is able to find the appropriate means to discriminate between requests without being justified by a cost discrepancy. Its problem is knowing how to practice differentiated prices according to the customers, the quantities bought or the markets, whereas the good or the service remain the same.
Perfect price discrimination is an idealized concept, as the word "perfect" speaks about, but it is of theoretical interest because it gives an example of a mechanism for placing resources that ensures the achievement of efficiency according to Pareto, other than a competitive market. There are very few examples of perfect price discrimination in life. The most appropriate would be, say, this: a doctor who practices in a small town and assigns different prices to his patients depending on their ability to pay (Phlips, 1983).
References
Phlips, L. (1983). The economics of price discrimination. Cambridge University Press.
Maxwell, S. (2007). The price is wrong: Understanding what makes a price seem fair and the true cost of unfair pricing. John Wiley & Sons.
Varian, H. R. (1989). Price discrimination. Handbook of industrial organization, 1, 597-654.
Rojas, M. (2009). Price discrimination by pharmaceutical companies across Central American countries. International Journal of Pharmaceutical and Healthcare Marketing, 3(2), 118-136.
Armstrong, M., & Vickers, J. (2001). Competitive price discrimination. rand Journal of economics, 579-605.
Subject: Economics
Pages: 3 Words: 900
Comprehensive learning assignment 2
Student’s Name
Institution
Date
Introduction
Over the last decades, the overall inequalities in both wealth and income has increased highly in the United States and other developed countries. Studies have indicated that there is big gap in income and wealth accumulation and the gap continues to experience growth despite several attempts by the government to bridge the gap. It is also noted that only 1% of people controls the economy and their income has grown steadily by almost 5.9% since 1979 CITATION Dav12 \l 1033 (Rosnick, 2012). A study also shows that majority of Americans, which is the 90% of the people have been experiencing constant decline in wealth growth and therefore, it has contributed highly to the level of inequalities in the United States. As the growth domestic products (GDP) increases the many people do not feel the impact mobility. The huge economic growth being experienced are felt by only 1% of people and mostly corporate and the rich. This is a trend which has existed for decades without sufficient reasons despite the rising of economy. A literature published by “Divided We Stand: Why Inequality Keeps Rising” the increase in economic growth has little impact on the lives of many people. As stated by Rosnick (2012) it is because the economic growth is not shared equally with every citizen and therefore, as other 1% of the population continue to enjoy the benefit of a growing economy, the 99% of the Americans experience economic difficulties.
The causes of the high level of inequality in the United States can be traced to the underlying factors in the global economy. First the rise of inequality could be a result of technology, institution and trade, which has resulted to the fall in wages and rise in income inequality. The technology has replaced manpower and resulting to high rate of unemployment in the country. During the 1990s, most jobs were done by people before technology took over. The increased unemployment rate is a major factor inequality in the country. The labor market inequality has always been imbalance for decades and therefore, this has contributed to an increased inequality. According to Burns (2015), the rate of wages has been issued based on race and gender since 1900s and this created inequality in the country. Many companies used pay minorities and women less compared to whites male. This created a huge economic and financial status between whites and African Americans and women in the country. It is established that the increase of compensation from the financial institutions is an essential contributor of the inequality. It is important to state that education and technology determine the wages being paid to workers and workers with high skills and experience usually get a high paycheck. According to a Professor from Massachusetts Institute of Technology, demand for skilled workers or employees has been in consistent increase across developed nations CITATION Olg15 \l 1033 (Baranoff, 2015). Workers with less skills and education are paid less compared to highly skilled and education workers and therefore, education and skills have been major contributors to the inequalities in income and wealth in the country.
However, these inequalities could be addressed systematically through policy intervention. Ths study established that the main causes of inequalities are the current trends in the market which exist worldwide. Therefore, intervention should reflect the current change for it to be effective. And therefore, the proposed solution to address the inequality should be the provision of eductaion and job nurturing or training to realign the skills and the market demands. Research indicates that companies demands highly skilled and educated employees and therefore, with adcanced training and better educatioin many peopole would be observed in the job market with high return or wages hence decline in inequality in the country. This can be provided by both the private sector and the government but it is important for the government to initiate education policies which can streamline the sector to produce highly qualified graduates not half baked graduates. High level of ecuctaion and training would esnure that eductaion and training are matched with the jobs in the market so that they can get a better paying employment.
The U.S. government has also been working to reduce the inequality in the country and several measures have been initiated. Some of these measures include intorduction of limiting the wages paid per hour. It is also important to limit the importion of Americans jobs to foreigh nations. Over the last twenty years several Americans companies have moved to offshore and established plants in countries like China, Mexico and Bangladesh. This resulted to increased unemployment rate in the country and therefore, it is essential for the government to lure companies to move back their plants or factories to nthe United States. It would create more jobs to many Americans and therefore, it would help in reduding the gaps between the rich and poor the country CITATION KIM18 \l 1033 (AMADEO, 2018).
In conclusion, the inequalities in the United States has been high and since 1900s, it has been rising fropm 5% to 15.3% by 2016. This is surpising trend due to the fact that the economy of the United States has been growing since 1970s. It therefore, means that there is a huige gaps which need need to be addressed. The problem could be addressed through policy initiative by the goevrnment which could include trianing and ecuation and employment and strick labor policies.
References
BIBLIOGRAPHY AMADEO, K. (2018). Income Inequality in America. https://www.thebalance.com/income-inequality-in-america-3306190 , 2-34.
Baranoff, O. (2015). What’s caused the rise in income inequality in the US? https://www.weforum.org/agenda/2015/05/whats-caused-the-rise-in-income-inequality-in-the-us/ , 2-34.
Burns, J. K. (2015). Poverty, inequality and a political economy of mental health. https://www.cambridge.org/core/journals/epidemiology-and-psychiatric-sciences/article/poverty-inequality-and-a-political-economy-of-mental-health/F00963B427E906505713B63317CBD6F8 , 12-35.
Rosnick, D. (2012). Breaking Down the Causes of Income Inequality. https://www.usnews.com/opinion/blogs/economic-intelligence/2012/07/16/breaking-down-the-causes-of-income-inequality , 2-34.
Subject: Economics
Pages: 3 Words: 900
Concepts of cost
In a perfectly competitive market structure, the buyers are free to sell to any person. There are no monopolies that mean firms are free to enter or exit the markets. a large number of firms are producing and selling products that indicate they enjoy small suppliers power. There is a large number of buyers so they cannot influence the market price.
The profit-maximizing level of the output is determined by balancing marginal revenue and marginal costs. The perfectly competitive firms also equate marginal revenue and marginal costs for profit maximization.
As a CFO the cost-cutting measures that I would propose for addressing the excessive costs of operating include lowering financial expenses. Consolidating health insurance policies is an effective method for minimizing costs. Efficient time strategies can also be adopted that will minimize waste of time CITATION Ire13 \l 1033 (Papanicolas, Woskie, & Jha, 2013). Reducing salaries of the doctors and administration staff can be another measure for managing costs.
Health spending in the United States is large than in other high-income countries. This is the high salaries paid to the doctors, nurses and the administration staff compared to the other countries. The prices of medicines and goods also contribute to high healthcare spending in America. In US spending is 108 per cent higher compared to Canada. The central reason is that the US pays for health services. Programs like Medicaid and Medicare have also contributed to high spending. The high reimbursements demanded by specialists also leads to high costs. The specialists demand high fees that directly impacts the overall healthcare spending CITATION Yon181 \l 1033 (Blumberg, 2018). Drug costs used for different diseases are significantly high in America compared to other high-income countries. Administrative costs including facilities and insurance are also high.
References
BIBLIOGRAPHY Blumberg, Y. (2018). Here's the real reason health care costs so much more in the US. Retrieved 05 26, 2019, from https://www.cnbc.com/2018/03/22/the-real-reason-medical-care-costs-so-much-more-in-the-us.html
Papanicolas, I., Woskie, L. R., & Jha, A. K. (2013). Health Care Spending in the United States and Other High-Income Countries. JAMA , 39 (1), 1024-1039.
Subject: Economics
Pages: 1 Words: 300
Title page
Economics
Short-term analysis
Short-term analysis emphasize on pricing strategy for the solution of meeting costs of asset management, condition-based maintenance and predictive maintenance. The solutions will focus on cutting staffing costs, vehicle expenses, supply costs, insurance costs and switching to cloud for computing needs. Giving unpaid time off to the senior employees will be used as an effective strategy for managing costs. Vehicle costs can impact the bottom line. By reducing capital costs of IT expenses the company will manage to minimize computing expenses CITATION Luk17 \l 1033 (Froeb, McCann, & Ward, 2017). The short-term strategy emphasize on earning above average profits by cutting insurance costs such as by performing annual review of insurance requirements. Premiums will be reduced by cutting deductibles. The coverage provided by different insurers differ so the best strategy is to choose the affordable one.
Long-term analysis
Direct price discrimination is an effective measure used for controlling costs by selling product at different prices to the customers. This will require that the firm identify demand of customers and use first-degree discrimination. The firm will examine the characteristics of the consumers and find producer surplus. This situation is known as perfect price discrimination in which seller will charge different prices depending on the characteristics of customers CITATION Luk17 \l 1033 (Froeb, McCann, & Ward, 2017). If the consumer surplus market power is $100, producer surplus is $100 and deadweight loss from market power is $10 the consumer surplus (competition) is $210. The firm will focus on driving consumer surplus to zero under perfection price discrimination. The strategy focused on reducing monthly fee from $500 to $300. If the costs of materials is $4000 and overhead charges are $3000 the company must be able to generate revenue of at least $7500. The theory suggests keeping profits more than the costs.
References
BIBLIOGRAPHY Froeb, L., Mccann, B. T., & Ward, M. R. (2017). Managerial Economics, 5th Edition. Cengage Learning.
Raju, K., Dr., & Gupta, S. (2018, June). Transforming Railroad Asset Management: Going Smart with Predictive Maintenance. Retrieved June 22, 2019, from https://www.tcs.com/content/dam/tcs/pdf/Industries/travel-and-hospitality/Transforming-Railroad-Asset-Management.pdf
Eisenschmidt, E., Reimig, S., Schirmers, L., & Stern, S. (2017, December). The Rail sector’s changing Maintenance Game. Retrieved June 22, 2019, from https://www.mckinsey.com/industries/travel-transport-and-logistics/our-insights/the-rail-sectors-changing-maintenance-game
Scully, P. (2017, March 21). New Report Indicates US$11 Billion Predictive Maintenance Market By 2022, Driven By IoT Technology And New Services. Retrieved June 23, 2019, from https://iot-analytics.com/report-us11-billion-predictive-maintenance-market-by-2022/
Tuzik, J. (2017, March 03). Big Data in Railroad Maintenance Planning: Evolving Science, Evolving Applications. Retrieved June 23, 2019, from http://interfacejournal.com/archives/1904
Subject: Economics
Pages: 3 Words: 900
Consulting Memo
Student’s name
Institutional affiliation
Consulting memo
Every business tries to keep their clients in the best of their interest as a way of ensuring that they do not go against the expectations of the clients. When businesses do wrong, they deliver messages that aim to convince the clients that they are still working on improving the quality of their services. Without such messages, it is likely that companies can end up losing a lot of clients which can have a negative impact on their income. Uber is one of the businesses that depend on the quality of service delivery to retain and win more clients. In their response to the previous problems that have affected the company over the years. To better understand the quality of response provided, one needs to understand whether it addressed the different aspects of a good ‘Bad News Messaging.’
There are various strengths that can be noted from the message. The first one is that it makes use of various delivery platforms which ensures that it reaches most of the clients. Not all the clients make use of visual or written platforms. The use of both platforms to deliver the message ensures that it reaches a maximum number of clients which in turn makes the clients to be sure that the company has their interest as a priority. He fact that the message started by acknowledging the fact that there is a problem with their services makes the clients to want to know what will be done to correct the situation. In the message, CEO shows that the company is aware of the problem currently. He also goes ahead to list some of the problems that the company has experienced in the past and how they have effectively come up with solutions to do away with them. This kind of awareness makes the clients to feel that their concerns are always taken seriously. The CEO of Uber confirms that there are problems both at the professional level and their daily level of interactions.
Strength of this message is that the author seems to understand the audience well. The author addresses them directly by referring to the problems they already talked about. The video does not consume a lot of time like the written content that one has to take some time to understand. The fact that they are provided in both written and video format means that one can easily get the message and even document it for further use. This is in a case where the client wishes to remind the company that they promised to make changes in the past but they have not yet done so. Clients can also see the emotional attachment to the message from the CEO.
The fact that the CEO of Uber talks about the specific problems that they have encountered in the past means that they want the best for the clients. Sexism is one of the problems that have been listed by clients for a long duration. The message states that Uber is committed to doing away with such vices and that they also welcome recommendations from clients on how they can best improve their services. While in court with the London local authorities, the company won the case citing that they have been working daily to improve their services. From their response and the take of different clients, they were granted the go-ahead to continue with business because they were just like any other challenges that any company would encounter. The company promised to ensure that the people who are allowed to conduct the business use their code of conduct so that they can do away with such cases in future.
The company also empathizes with the clients and shows that they wish to move forward with them to the next chapter. While talking about the quality of pick-ups and rides, the company promises to improve the experience for both riders and the drivers. This shows that they are not only focused on improving the state of the clients but also the employees. The drivers also have complaints that need to be addressed if the business is to go on well. If the company only addresses clients, it means that drivers can opt for competitors who listen to the drivers ad this can possible lead to the downfall of the company.
There weakness of this message is that it does not focus on providing the practical strategies that will be applied to improve the business. In the message, they only state that they are doing their best to ensure that the business grows. There are various issues affecting the company that should be addressed specifically without generalizing all of them. Not all the clients have one problem. They want to see whether the real problem they experience has been covered by the company.
There are various things that the company can do to improve on the quality of message that they relay to their clients. They include the following;
Acknowledge each of the problems that both riders and drivers face. This should be specific so that every stakeholder feels that they are included.
Address each of the problems. Addressing them in this manner implies that every stakeholder will know what they should expect in future.
Give timelines. The company stated that they will be doing all they can to improve the quality of services but did not give timelines. They need to state what they will do within a specific time.
References
https://www.youtube.com/watch?v=WMZyw5lPKgE#action=share
https://www.businessinsider.com/uber-scandal-crisis-complete-timeline-2017-6
https://www.chicagotribune.com/business/blue-sky/ct-uber-london-apology-20170925-story.html
Subject: Economics
Pages: 3 Words: 900
Consumer Demand Analysis
Your Name (First M. Last)
School or Institution Name (University at Place or Town, State)
Consumer Demand Analysis
Introduction:
In any economy, gross output is the measure of the total production of new goods and services in a given period of time. In this assignment, total economic output of iPhone 6 plus will be studied. The iPhone 6 plus is a smartphone designed by the famous brand "Apple". Apple is an American multinational company whose headquarter is located in California. iPhone 6 plus was released on September 2014. It received a positive review initially, but it got affected by economic fluctuations. Recession and inflation became the main reason for iPhone 6 plus negative response ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"a461lrgclr","properties":{"formattedCitation":"{\\rtf (\\uc0\\u8220{}The Economic Impact of Apple\\uc0\\u8217{}s iPhone 6,\\uc0\\u8221{} n.d.)}","plainCitation":"(“The Economic Impact of Apple’s iPhone 6,” n.d.)"},"citationItems":[{"id":1254,"uris":["http://zotero.org/users/local/ccgWoSRn/items/VNZ22PGE"],"uri":["http://zotero.org/users/local/ccgWoSRn/items/VNZ22PGE"],"itemData":{"id":1254,"type":"webpage","title":"The Economic Impact of Apple's iPhone 6","URL":"https://insights.dice.com/2014/10/29/economic-impact-apple-iphone-6/","accessed":{"date-parts":[["2019",1,31]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“The Economic Impact of Apple’s iPhone 6,” n.d.). The economic fluctuations lead to the unemployment that also results in fall of iPhone 6 plus sales.
Economic Fluctuation and iPhone 6 plus:
Economic fluctuations are the variations in the level of national income that represent the growth or contraction of the country. The market of every nation is dynamic rather than static. Increase in national income leads to the growth of the economy, while fall in national income means there will be a decrease in the growth level. The economic fluctuation was one of the crucial factors that affect the iPhone 6 plus market. Exchange rate, recession, and inflation. During the recession, the economy of America falls which took a while to recover. This time gap in declining and recovery had a negative impact on iPhone 6 plus. The recession leads to an increase in interest rate while results in low currency value. The sales-output decline due to the currency issue. During the inflation period, prices of the goods increased which results in the decrease in purchasing power of iPhone 6 plus ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"a1d9r6v84fn","properties":{"formattedCitation":"{\\rtf (\\uc0\\u8220{}Section 4,\\uc0\\u8221{} n.d.)}","plainCitation":"(“Section 4,” n.d.)"},"citationItems":[{"id":1248,"uris":["http://zotero.org/users/local/ccgWoSRn/items/QM8TZJWE"],"uri":["http://zotero.org/users/local/ccgWoSRn/items/QM8TZJWE"],"itemData":{"id":1248,"type":"post-weblog","title":"Section 4: Types of Unemployment and the Definition and Significance of Full Employment | Inflate Your Mind","URL":"https://inflateyourmind.com/macroeconomics/unit-4/section-4-types-of-unemployment-and-the-definition-and-significance-of-full-employment/","shortTitle":"Section 4","language":"en-US"}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Section 4,” n.d.).
Unemployment and US-China relation:
Apple is an American company, but a large amount of its products are manufacturing in China. This is because labour in China is much cheaper and efficient than the labour in America. If the economy of both the country start contracting that is happening due to the trade war between the two nations, then cyclical unemployment will increase for the Apple Company. As the trade between two company will decrease, it will decline the production and supply of iPhone 6 plus ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"ac8g1vg3ut","properties":{"formattedCitation":"{\\rtf (\\uc0\\u8220{}Hearing on U.S.\\uc0\\u8211{}China Economic Challenges,\\uc0\\u8221{} n.d.)}","plainCitation":"(“Hearing on U.S.–China Economic Challenges,” n.d.)"},"citationItems":[{"id":1251,"uris":["http://zotero.org/users/local/ccgWoSRn/items/AUZ8ZII7"],"uri":["http://zotero.org/users/local/ccgWoSRn/items/AUZ8ZII7"],"itemData":{"id":1251,"type":"post-weblog","title":"Hearing on U.S.–China Economic Challenges: The impact of U.S.–China trade","container-title":"Economic Policy Institute","abstract":"Does U.S.-China trade have an impact on U.S. jobs, wages and benefits?","URL":"https://www.epi.org/publication/hearing-us-china-economic-challenges-trade/","shortTitle":"Hearing on U.S.–China Economic Challenges","language":"en-US"}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Hearing on U.S.–China Economic Challenges,” n.d.). Due to the decrease in the production of iPhone 6 plus, employees of the company will start losing their jobs, and cyclical unemployment will increase.
Causes of Unemployment:
The four main causes of unemployment are low consumer demand, inflation, interest rate, and recession. The fall in iPhone sales can cause cyclical unemployment, and cyclical unemployment is affected by these four factors. During recession government increase interest rate to control the national debt which can cause inflation in the economy thus unemployment increases. In the case of iPhone 6 plus these factors become the reason of decline in the total outcome of the product. Sales of iPhone decreased with the increase in inflation and a decrease in productivity ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"a2aimemf7ip","properties":{"formattedCitation":"(Reddy, 2016)","plainCitation":"(Reddy, 2016)"},"citationItems":[{"id":1250,"uris":["http://zotero.org/users/local/ccgWoSRn/items/93CVESP4"],"uri":["http://zotero.org/users/local/ccgWoSRn/items/93CVESP4"],"itemData":{"id":1250,"type":"post-weblog","title":"What is Unemployment? Its Main Causes, Effects and Solutions","container-title":"WiseStep","abstract":"The issue of unemployment is a very serious one indeed, which cannot be tackled easily. For your help mentioned here are few unemployment causes and effects","URL":"https://content.wisestep.com/unemployment-causes-effects-solutions/","shortTitle":"What is Unemployment?","language":"en-US","author":[{"family":"Reddy","given":"Chitra"}],"issued":{"date-parts":[["2016",9,21]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Reddy, 2016).
US Inflation and iPhone 6 plus:
The increase in consumer spending is great for iPhone 6 plus. This means that consumers have more money to spend on their favourite products. Inflation and consumer spending has positive relation. With the increase in inflation, people get more money to spend therefore demand iPhone 6 plus can be increased. To control the inflation rate government increase interest rate which leads to an increase in the price of goods and services. In the case of iPhone 6 plus, the company works in the monopolistic competitive market which means they cannot increase the price that results in low revenue.
Conclusion:
iPhone 6 plus is the smartphone product of Apple Company. Apple is an American multinational company. iPhone 6 plus was ranked one of the bestselling product in 2016. The product affected by the economic condition of the country. The main factors that affected the product include recession, currency, inflation, and unemployment in America.
References
ADDIN ZOTERO_BIBL {"custom":[]} CSL_BIBLIOGRAPHY Hearing on U.S.–China Economic Challenges: The impact of U.S.–China trade. (n.d.). Retrieved from https://www.epi.org/publication/hearing-us-china-economic-challenges-trade/
Reddy, C. (2016, September 21). What is Unemployment? Its Main Causes, Effects and Solutions. Retrieved from https://content.wisestep.com/unemployment-causes-effects-solutions/
Section 4: Types of Unemployment and the Definition and Significance of Full Employment | Inflate Your Mind. (n.d.). Retrieved from https://inflateyourmind.com/macroeconomics/unit-4/section-4-types-of-unemployment-and-the-definition-and-significance-of-full-employment/
The Economic Impact of Apple’s iPhone 6. (n.d.). Retrieved January 31, 2019, from https://insights.dice.com/2014/10/29/economic-impact-apple-iphone-6/
Subject: Economics
Pages: 2 Words: 600
[Name of the Writer]
[Name of Instructor]
[Subject]
[Date]
Could You Be an Entrepreneur
Michael Kors is the fashion designer born on August 9, 1959. His full name is Michael David Kors, and his place of birth is Long Island, New York, United States. He is famous for the sportswear for women and serving his brand as the chief creative officer and honorary chairman. Father of kors was of Swedish descent while his mother was Jewish, so he had mixed ethnic and cultural background ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"gfYTepJx","properties":{"formattedCitation":"(\\uc0\\u8220{}Michael Kors\\uc0\\u8221{})","plainCitation":"(“Michael Kors”)","noteIndex":0},"citationItems":[{"id":1579,"uris":["http://zotero.org/users/local/mlRB1JqV/items/B3VFQ259"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/B3VFQ259"],"itemData":{"id":1579,"type":"webpage","title":"Michael Kors","container-title":"British Vogue","abstract":"Read the biography of Michael Kors","URL":"https://www.vogue.co.uk/article/michael-kors","language":"en-GB","accessed":{"date-parts":[["2019",10,30]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Michael Kors”). Kors grew up with efficient opportunities for higher education. He acquired a graduation degree in Bell more from the institute' "John F Kennedy High School." He also attended the fashion institute of technology in New York. He also worked as a model in national campaigns for the product in childhood. These opportunities helped him to grow. His struggle, opportunities, and hard work turned into positive outcomes as he presented his every collection with the thought that it can be presented to his mother and sister ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"kxCW02Wr","properties":{"formattedCitation":"(\\uc0\\u8220{}Michael Kors | Fashion Designer Biography\\uc0\\u8221{})","plainCitation":"(“Michael Kors | Fashion Designer Biography”)","noteIndex":0},"citationItems":[{"id":1578,"uris":["http://zotero.org/users/local/mlRB1JqV/items/MZXZYFV6"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/MZXZYFV6"],"itemData":{"id":1578,"type":"webpage","title":"Michael Kors | Fashion Designer Biography","container-title":"FAMOUS FASHION DESIGNERS","abstract":"Michael Kors Biography - Born on 9th August 1959, Michael Kors is a fashion designer from New York. He is recognized for making women sportswear. Moreover, he is the Chief","URL":"http://www.famousfashiondesigners.org/michael-kors","language":"en-US","accessed":{"date-parts":[["2019",10,30]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Michael Kors | Fashion Designer Biography”).
The memorable event of Michael Kors was his contribution during the time of hurricane sandy donation. He donated about 1 million dollars for disaster relief ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"HwSvkrHz","properties":{"formattedCitation":"(\\uc0\\u8220{}Michael Kors\\uc0\\u8221{})","plainCitation":"(“Michael Kors”)","noteIndex":0},"citationItems":[{"id":1580,"uris":["http://zotero.org/users/local/mlRB1JqV/items/KL6KUTKH"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/KL6KUTKH"],"itemData":{"id":1580,"type":"webpage","title":"Michael Kors: Charity Work & Causes","container-title":"Look to the Stars","abstract":"Profile of Michael Kors's support for charities including American Foundation for AIDS Research, World Food Programme, and New York Restoration Project. We have 40 articles about Michael Kors's philanthropy.","URL":"https://www.looktothestars.org/celebrity/michael-kors","title-short":"Michael Kors","language":"en","accessed":{"date-parts":[["2019",10,30]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Michael Kors”). Michael Kors is a person who played a role in the economic contribution that shaped American society. He presents collections that can make American women comfortable and confident. Michael Kors was lucky enough that he did not experience as such that can alter his plans along the way because he was linked to the fashion industry since childhood.
After reading about Michael Kors, it seems that the key to success continues hard work, and secondly, there is another thing that you need in the career that is the opportunity. Michael Kors effectively used his idea and took the fashion industry to the next level. U-underestimate: He faced a tough time when he got dropped out of fashion institute, but it did not stop him from achieving his vision. N-Network: he developed a sense of fashion not only for American women but also for other nation's women that they can use proudly. T-Take; his company was reorganized forcefully, and then he launched KORS with a lower-priced line.
Work Cited
ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY “Michael Kors.” British Vogue, https://www.vogue.co.uk/article/michael-kors. Accessed 30 Oct. 2019.
“Michael Kors | Fashion Designer Biography.” FAMOUS FASHION DESIGNERS, http://www.famousfashiondesigners.org/michael-kors. Accessed 30 Oct. 2019.
“Michael Kors: Charity Work & Causes.” Look to the Stars, https://www.looktothestars.org/celebrity/michael-kors. Accessed 30 Oct. 2019.
Subject: Economics
Pages: 1 Words: 300
Your Name
Instructor Name
Course Number
Date
Assignment 1
The paper analyzes macroeconomic data from 1960-2018 to see why economic crisis occured in Italy. Post 1992, Italy outperformed most European countries to make sure that EU conditions are met resulting in decreasing inflation, stabilising wages, decreasing unemployment and raising profit shares. Satisfying all conditions of EMU rulebook has resulted in the production being slowed down and there is a constant decline in all the economic indicators. The decline in demand had come from a lack of competitiveness on technological scenario. The common currency in form of the Euro is overvalued resulting in a failure of Italian firms to compete. The firms have not been able to utilize their capacity to the maximum and their profitability is reduced. EMU rulebook has locked the Italian economy in terms of economic decline. Analysis shows that sternness has to be ended and technological competitiveness has to be improved. The solution must result in long run growth which will be initiated by investment and innovation CITATION Sto19 \l 1033 (Storm).
The economic growth has declined in Italy from the mid-1990s. Long term data analysis has indicated that this decline cannot be blamed on the simple business cycle fluctuations. Many countries using Euro have shown much better economic performance over the same period of time. The sources of economic decline have been investigated by applying business cycle accounting procedure. The relative importance of efficiency, labour, investment and government wedges in business cycle in Italy from 1982 to 2008. Efficiency is the main factor which has affected Italian economy and it also initiated the stagnation phase in 1995. Findings show that decline in labour market disturbances that occurred during the 1990s controlled the stagnation effect to a certain extent and did not allow an even more slowdown in per capita output growth CITATION Ren14 \l 1033 (Orsi and Turino).
GDP
CITATION CEI17 \l 1033 (CEIC)
The lowest point is 2009 which has been inflicted by the economic recession that hit the whole world. There is no evident pattern in the gross domestic product for Italy in the last ten years. There has been negative growth in GDP over the ten year period considered. The economy has been stagnant to say the least. The highest point of this graph is at 2011 which is due to the funding made by some other countries because Italy could not handle interest payments on debt. This settlement was also short term as shown by the graph going towards the negatives. Number of cars has been selected as a non-economic indicator to be discussed. There has been an increase in the number of cars in terms of passenger cars as well as private cars. This increase shows that people are getting affluent with the passage of time despite lower demand shown by the economy as a whole. Most recently, there has been a considerable increase in the number of cars registered by Italian people. Car may be considered necessity but keeping car is not at all cheap for the people because of the rising petrol prices.
GDP per Capita for Italy
There are some similar trends in the GDP data and per capita GDP over a period of ten years. The highest points of both graphs coincide with the year 2011. There is a clear difference in lowest points of both measures. The graph does not match with the living standard of Italians because number of cars owned by them has been on an increase there is a considerable decrease in per capita GDP for people.
Inflation rate
The above data shows fluctuation in inflation rates from the year 2007 to 2017. This trend in inflation is manageable for the country because it has not risen to a higher level in any year. In the year 2014, there was zero inflation which would also result in stagnant prices. The country is experiencing creeping inflation over a period of ten years because inflation figure has not gone beyond the 3 percent mark at any point in time during the analysis period.
Analysis
There has been low inflation in the country over the ten year period under consideration. There has been no significant impact of the world economic crisis on per capita GDP and inflation. In the year 2011, all the measures showed high values with inflation being the highest among ten year period. Higher inflation with higher per capita income will mean that people are having better living standards than the past. Yes the analysis does match the evidence provided by the two articles in a way that there has been a stagnant economic performance shown by the country over the past ten years. A fluctuating rate of real GDP growth and a similarly fluctuating per capita income for people of country do not show a positive trend. A low rate of inflation should see more investment coming in but the economy does not offer as many projects to attract new investors. As discussed earlier, the hike shown in real GDP in 2011 was short term and was supported by organizations like EU. The country should try and be competitive in terms of technological advancements and include it as an integral part of its economy. The major problem faced during this study was that the 10 year data was not available in form of excel tables and I had to take full pictures of graphs instead of making them by gathering data in excel. Yes I was surprised to see the facts about Italian economy because being a part of EU, I thought that Italy would have a strong economy.
Works Cited
BIBLIOGRAPHY CEIC. "https://www.ceicdata.com/en/indicator/italy/real-gdp-growth." 1 October 2017. https://www.ceicdata.com. 4 November 2019.
Orsi, Renzo and Francesco Turino. "The last fifteen years of stagnation in Italy: a business cycle accounting perspective." Emprical Economics (2014): 469-494.
Storm, Servaas. "Lost in deflation: Why Italy’s woes are a warning to the whole Eurozone." Working Paper. 2019.
Subject: Economics
Pages: 3 Words: 900
[Name of the Writer]
[Name of Instructor]
[Subject]
[Date]
Economics
The employment rate is the crucial aspect of any economy it determines the growth rate of the nation. When the employment opportunities increase the chances for the people to get the dream job also increases. However, there are a numbers of factors that determine the opportunities level to introduce new jobs in the nation. America has shown an increase in employment levels in the market which is a good sign for the citizen. There is a strong correlation between the inflation level and employment. Any country with high inflation faces different problems. It is because inflation has an adverse impact on the growth of the economy. It affects the exchange rate, cost of borrowing, prices, and overall economy of the country. Besides, inflation has negative over the growth of the economy however it leaves a positive impact on the employment level. In the article, explanation for weak wage growth is discussed that affects the conditions of the employment level. Author claimed that central bank should look inti the matter and control the wage growth to control the unemployment level ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"64Aqi7Yc","properties":{"formattedCitation":"(Fairless)","plainCitation":"(Fairless)","noteIndex":0},"citationItems":[{"id":1028,"uris":["http://zotero.org/users/local/rVaVAHaF/items/FR9BJN7U"],"uri":["http://zotero.org/users/local/rVaVAHaF/items/FR9BJN7U"],"itemData":{"id":1028,"type":"article-newspaper","title":"One Explanation for Weak Wage Growth: Workers’ Reluctance to Switch Jobs","container-title":"Wall Street Journal","section":"Economy","source":"www.wsj.com","abstract":"Fewer workers switching jobs may explain why wages have been rising only slowly and inflation staying low, despite low unemployment, some economists say.","URL":"https://www.wsj.com/articles/one-explanation-for-weak-wage-growth-workers-reluctance-to-switch-jobs-11573999201","ISSN":"0099-9660","shortTitle":"One Explanation for Weak Wage Growth","language":"en-US","author":[{"family":"Fairless","given":"Tom"}],"issued":{"date-parts":[["2019",11,17]]},"accessed":{"date-parts":[["2019",12,16]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Fairless).
The primary concept that has been discussed is the relationship between unemployment level and wage growth with the help of the Philips curve. These are the economic concept from the course and important to understand. Inflation leads to a change in various economic factors that result in lowering the unemployment level. Philips curve is the curve that indicates the negative correlation between inflation and unemployment level. For instance, whenever inflation increases it leads to a decrease in the unemployment level and when the inflation rate decreases it results in an increase in the unemployment level. Economists and the government always try to maintain or decrease the inflation rate because it has a negative impact on the economy. When the inflation rate increases it results in an excessive amount of money in the hand of consumers. When consumers get more money to spend, they demand more goods and services. To control the high demand for goods and services producers, stakeholders either increase the price of the existing supply of goods or services or increase production. It is difficult to increase the production level in the short run therefore increase in the price becomes an easy way to control the supply and it increases the profit of the producers. With an increase in production, demand for more labor increases. In other words, producers get the opportunity to expand their production and provide more jobs. This is how inflation leads to an increase in the employment level.
The above graph indicates the relationship between unemployment and inflation with the help of the Phillips curve. At the point, The unemployment rate is 6% with only 2% of inflation. When inflation rises to five percent at point B, the unemployment rate decreased to only 3%. However, the author discussed that the Phillips curve does not seem to be operated in the real world but somehow it is working in the US economy as it had been developed. The reason behind the unrealistic framework of the Philips curve is that inflation not always hit the unemployment level; there are various factors that eliminate the impact of inflation from the unemployment level. For instance, when inflation leads to an increase in aggregate demand it results in an increase in real GDP. Therefore, the producer hires more labor to meet the aggregate demand by providing a sufficient supply of goods and services ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"zQagGJ2l","properties":{"formattedCitation":"(\\uc0\\u8220{}Phillips Curve - Economics Help\\uc0\\u8221{})","plainCitation":"(“Phillips Curve - Economics Help”)","noteIndex":0},"citationItems":[{"id":480,"uris":["http://zotero.org/users/local/rVaVAHaF/items/EWSQAMLY"],"uri":["http://zotero.org/users/local/rVaVAHaF/items/EWSQAMLY"],"itemData":{"id":480,"type":"webpage","title":"Phillips Curve - Economics Help","container-title":"Economics Help","abstract":"Definition of Phillips Curve (trade off between inflation and unemployment). Graphs to show how and why it can occur. real life data. Also different views on Phillips Curve Keynesian vs Monetarist. - short-term and long-term.","URL":"https://www.economicshelp.org/blog/1364/economics/phillips-curve-explained/","language":"en-GB","accessed":{"date-parts":[["2019",4,10]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Phillips Curve - Economics Help”). However, at a particular point, the economy reaches the full capacity, where no labor can be hired anymore. At this stage, producers increase the wages of the labor which results in wage inflation. In addition, they increase the prices of goods and services which leads to a constant rate of unemployment. Economists believe this phenomenon more realistic as producers prefer to increase prices first then increasing the number of labor. However, the report shared in the article indicates that the Philips curve is working in the economy to lower the unemployment rate. The government is trying to maintain the inflation rate by increasing the interest rate.
As the report has been discussed regarding the employment rate fluctuation in America. The major reason for the wage rises is the increase in the competition that is developing the condition of do or die for the producers. Data indicates that 6.5% fall in the unemployment rate is recorded that reached to 3.6% previous month ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"64Aqi7Yc","properties":{"formattedCitation":"(Fairless)","plainCitation":"(Fairless)","noteIndex":0},"citationItems":[{"id":1028,"uris":["http://zotero.org/users/local/rVaVAHaF/items/FR9BJN7U"],"uri":["http://zotero.org/users/local/rVaVAHaF/items/FR9BJN7U"],"itemData":{"id":1028,"type":"article-newspaper","title":"One Explanation for Weak Wage Growth: Workers’ Reluctance to Switch Jobs","container-title":"Wall Street Journal","section":"Economy","source":"www.wsj.com","abstract":"Fewer workers switching jobs may explain why wages have been rising only slowly and inflation staying low, despite low unemployment, some economists say.","URL":"https://www.wsj.com/articles/one-explanation-for-weak-wage-growth-workers-reluctance-to-switch-jobs-11573999201","ISSN":"0099-9660","shortTitle":"One Explanation for Weak Wage Growth","language":"en-US","author":[{"family":"Fairless","given":"Tom"}],"issued":{"date-parts":[["2019",11,17]]},"accessed":{"date-parts":[["2019",12,16]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Fairless). The author explained that the above factors can lead to a change in the employment ratio. Various economics terms like interest rate, inflation, recession, the great depression, investment, and Philips curve are being discussed to figure out the actual reason for the significant increase in employment level. The author argued that inflation is the main factor that is a disturbing investment, interest rate, and somehow employment level by increasing the supply of money in the economy.
The article is important to understand the pattern of economic growth especially the fluctuation in the unemployment level but authors have ignored the one important aspect which shows that inflation is not the only element that impacts the employment level. The element is the investment level. Therefore, it is concluded that the employment level is higher in America and the author thinks that its inflation playing its role. The author discussed other economic factors like great recession, interest rate, investment, and wage rate. However, he focused on the inflation rate and discussed the Phillips curve that is resulting in lowering the unemployment level. The author created a strong argument where the inflation rate affects the number of economic indicators including employment level. There is an inverse relationship between inflation and unemployment. However, the author did not highlight the importance of investment level which also provides opportunities to develop a new job. Also, it stabilizes the inflation rate and economic growth becomes sustainable.
Work Cited
ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Fairless, Tom. “One Explanation for Weak Wage Growth: Workers’ Reluctance to Switch Jobs.” Wall Street Journal, 17 Nov. 2019. www.wsj.com, https://www.wsj.com/articles/one-explanation-for-weak-wage-growth-workers-reluctance-to-switch-jobs-11573999201.
ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Jayaraman, T. K., and Baljeet Singh. Foreign Direct Investment and Employment Creation in Pacific Island Countries: An Empirical Study of Fiji. p. 18.
“Phillips Curve - Economics Help.” Economics Help, https://www.economicshelp.org/blog/1364/economics/phillips-curve-explained/. Accessed 10 Apr. 2019.
Subject: Economics
Pages: 3 Words: 900
DB 10: Mergers and antitrust laws
[Name of the Writer]
[Name of the Institution]
DB 10: Mergers and antitrust laws
T-Mobile is a mobile company which broke the barriers of competitive markets and introduced its own rules and regulations. T-mobile decided to eliminate unfriendly practices, abandoned termination fees, and overage charges ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"cXt4FJdF","properties":{"formattedCitation":"\\super 1\\nosupersub{}","plainCitation":"1","noteIndex":0},"citationItems":[{"id":311,"uris":["http://zotero.org/users/local/mlRB1JqV/items/2RCW6DV2"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/2RCW6DV2"],"itemData":{"id":311,"type":"article-magazine","title":"The Oligopoly Problem","source":"www.newyorker.com","abstract":"The real problem in America isn't monopolies, it's oligopolies. Here's how the F.C.C. and other government agencies should fight them.","URL":"https://www.newyorker.com/tech/annals-of-technology/the-oligopoly-problem","ISSN":"0028-792X","language":"en","author":[{"family":"Wu","given":"Tim"}],"issued":{"date-parts":[["2013",4,15]]},"accessed":{"date-parts":[["2019",4,25]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} 1. The new strategies were in favor of consumers, they were helpful for them to acquire the service with least contracts. Americans are stuck in the contracts with Sprint, AT&T, and Verizon. Still, any merger that tries to introduce strategy which can lead to anti-competition is not acceptable by the government. The main reason for rejection is the concept of a competitive market. The competitive market works on the objective with almost the same policies and price to maintain the competition. On the other hand, monopoly and oligopolies always try to increase their profit even by doing antitrust violation. In addition, they are not questioned by the government most of the time on violations.
The strategies introduced by the T-Mobile were not against the consumers and it could not result in the violation of consumers’ right, although it was opposed by the government with the claim that these strategies were anticompetitive practice. It means if the same strategies were introduced by the monopolist or oligopolist firm, no issue would be raised by the government. Therefore, it will be fair to say that the government is concerned with strategies which have an impact on consumers or competition.
History presents seevral cases of oligopoly firms where they were not punished for antitrust violation with the justification that a firm does not lie in the case of violation if the practices are not harmful to consumers and are not presented for the sake of price control. However, T-Mobile practices were considered as antitrust violations as the justification is no more justifying the law of caring both the competition and consumers in the market.
End Notes
ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY 1. Wu T. The Oligopoly Problem. April 2013. https://www.newyorker.com/tech/annals-of-technology/the-oligopoly-problem. Accessed April 25, 2019.
Subject: Economics
Pages: 1 Words: 300
Name:
Instructor:
Course:
Date:
DB 3: Demand Supply and Market Equilibrium
Briefly explain the situation
According to Hollander, (par. 1), the demand for refurbished phones continues to increase, while that of the new phones decrease. The refurbished mobile phone represents 1 out of every 10 gadgets sold accounting for the fastest developing segment of the international market for smartphones.
1 determinant of demand (supply) and direction demand (supply) will shift
Eastin and Arbogast (10), there exist various determinants of demand, including expectations, customer preferences, prices of complementary products, the income of the purchasers and the price of the products. From the articles, one of the determinants of demand includes the price of complementary products (phones). Hollander, (par. 2) highlights that the selling price of smartphones has risen and most consumers prefer to buy the refurbished smartphones, which cost less and possess most of the features that meet their mobile phone needs.
Therefore, the demand for the refurbished mobile phone will shift to the right because the refurbished phones act as a compliment for the new smartphones and cost less. However, the demand for the new smartphones will shift to the left because the demand will decrease due to the high cost associated with them. In contrast, the supply for the refurbished devices will increase shifting the supply to the right, while the supply of the new devices will decrease shifting the supply to the left as discussed by Eastin and Arbogast (10-11).
As an economist, what impact do you predict this change will have on equilibrium price and quantity?
Due to the increasing demand in refurbished mobile phones, the supply may be more leading to an increase in both equilibrium prices and equilibrium quantity. More so, the demand for the new gadgets decrease and the supply may be more. Therefore, the equilibrium quantity will increase and the equilibrium price may fall as noted by (Golsbee, Levitt and Syberson, 90-110).
Works Cited
BIBLIOGRAPHY \l 1033 Eastin, R and G Arbogast. "Demand and Supply Analysis: Introduction." CFA Institute. 2011. Web Accessed: 2 March 2019.
Golsbee, A, S Levitt, and C Syberson. "Microeconomics." Worth Publishers. 2013. Web Accessed: 2 March 2019.
Hollander, R. "Demand for Older-generation Phones is Spiking." Business Insider. 2018. Web Accessed: 2 March 2019 <https://www.businessinsider.com/demand-for-older-phones-spikes-2018-3?IR=T>.
Subject: Economics
Pages: 1 Words: 300
Summarizes the step-by-step decision-making process the rational consumer will pursue to reach the utility-maximizing combination of goods and services attainable.
A rational decision-making process of a consumer comprises of following steps:
Need
Information gathering
Evaluation of alternatives
Purchase of product
Post purchase evaluation
According to researches and observations by Psychologists it has been deduced that human beings have the tendency of making biased decisions in which rationality is combined with personal opinions to reach a conclusion. These are the factors and influences that increases irrationality within the decision making processes. Human decisions are not calculative and mathematical such as in case of computers. They are bound to be irrational and biased at any level. In order to reduce this irrationality and enable more precise and accurate decisions, it is recommended that evidence based decision making approach is adopted by individuals and organizations.
For instance, when going to a restaurant and being given a menu, you are more likely to place an order for the meal that you personally like, instead of the ones that may be lesser is price or appear healthier. The reason for such decision making is that human beings are likely to amalgamate their ideas, perceptions and rationality during their decision making process. The restraint menu choice may not have any serious consequences, but in case of an organizational decision, consequences can be dangerous. In sensitive and critical decisions, there is no chance of irrationality and biasness.
Explain the water-diamond paradox in your own words
The diamond-water paradox is also known as paradox of value. This can be described as an apparent contradiction according to which the water is considered more useful for the survival instead of diamonds even though the diamonds have a higher market value.
References
Postmes, T; Spears, Russell; Cihangir, Sezgin (2001)."Quality of decision making and group norms". Journal of Personality and Social Psychology 80 (6): 918–930.
Subject: Economics
Pages: 1 Words: 300
DB 9: Monopoly Options Menu: Forum
[Name of the Writer]
[Name of the Institution]
DB 9: Monopoly Options Menu: Forum
Monopoly is the biggest challenge for society as the provider rules the whole market in product or service provision. All the power lies to the firm that stands alone in the market and it has the authority to set the price. At the same time, none of the company can compete against the monopolist company. A monopoly can bring a lot of problems in the market. It raises the prices for the goods and reduces the quality of the product or services. Consumers are the first to directly suffer from monopoly. Likewise, it is happening in the United States. Although monopolies are not illegal in the United States, it is a burden for the economy (Buchanan, 1974). Monopolies can play with the market by decreasing the supply in the market while keeping the prices higher. Sometimes, monopolies take advantage of it in an unethical manner.
In a conference, Elizabeth Warren highlights the monopolist companies in the United States. She warns about the consequences that these big companies are causing problems for the general public. The monopoly of the market in a country can also cause inflation. As the provider can set prices, it causes cost-push inflation. At the same time, monopolies do not see any profit in producing new and latest products. Therefore, these companies do not focus on enhancing the quality of a product. In comparison to the monopoly, the competitive market is highly preferred. The competitive market helps to flourish the economy of the country. It provides a platform for the firms to improve the quality of their product. Moreover, it also offers affordable prices. Consumers feel more satisfied because they have more options to buy a product. According to the price and quality, a consumer is open to choose the product in a competitive market.
References
Buchanan, J. M. (1974). Good Economics--Bad Law. Va. L. Rev., 60, 483.
Senator Elizabeth Warren Keynote. (2016). |America's Monopoly Problems.YouTube. Retrieved 18 April 2019, from https://www.youtube.com/watch?v=M7KZ0M0gc18
Subject: Economics
Pages: 1 Words: 300
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Course ID
Submitted to
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Subject
Discussion
Today no one doubts that China is a great world economic power, but, although it seems somewhat recent, the Asian country already dominated much of the world until the nineteenth century, when the Western powers advanced it, especially in technology. Since 2015, China has more billionaires than the United States: 596 against 537. Ultimate questioning of Maoist egalitarianism, this record is to be understood in the light of the double movement of internal liberalization and openness to the global market imposed by the Chinese leaders since the 1980s. It is true that the flight of capitalist China is recent and that its foundations have their weaknesses, which encourages the prudence of judgment (Chow, Gregory and Kui-Wai Li). Debt, the housing bubble, corruption and many other internal and external factors can plunge the country into crisis. But if there is a crisis, it will be that of a great power with major international repercussions.
From 1100 to 1800, approximately, the Imperio del Medio did not stop innovating in agricultural techniques and manufacturing of textiles and in the production of paper or firearms, so it would be the benchmark for the future powers of the Industrial Revolution. Global markets trembled, because we must not forget that the Chinese economy represents a third of global economic growth, despite the gradual slowdown that has been experienced in recent years. But it is also true that a year ago that there are notices of the financial bubble that was growing at a forced pace, with a growth in that same time of 150% due to margin operations (the practice of using borrowed money for the purchase of shares) and an overvaluation of the shares recognized by many analysts.
But to understand this whole situation (and bring it down to earth, and therefore, how does this condition the life of the Chinese proletariat), we need to look back a few years. In addition to the changes in economic policy, what was it that allowed China to maintain its growth until it established itself as the second world power, behind the United States?
It is the world 's most populous country ⎯ 1,398 million in 2018 ⎯, which translates into a virtually unlimited labour sufficiently low wages, hard -working and increased productivity. Likewise, exports and foreign investments are essential to maintain production and employment levels in manufacturing industries - China is the world's largest exporter of products since 2008- For its part, foreign investment since the beginning of the millennium facilitated learning in the field of technology so that Chinese products can be very competitive today and enlarged the official foreign exchange reserves.
Works cited
Chow, Gregory C., and Kui-Wai Li. "China’s economic growth: 1952–2010." Economic Development and Cultural Change 51.1 (2002): 247-256.
Subject: Economics
Pages: 1 Words: 300
Hussein
16th march, 2019
The World Health Organization reports more than 25 diseases that worsen under the influence of smoking (cardiovascular, pulmonary and ontological diseases). Every year, more than “5 million people die from smoking, which is more than HIV / AIDS, tuberculosis and malaria combined”. According to government forecasts, these new measures could decrease adolescence smoking by 11% and adults by 2% over the next decade. This new legislation is indeed the first major step in tobacco control policies in the United States since 1971, and the ban on advertising on television and radio, and 1988, the ban on smoking by plane
According to GAO, Congress has inadequate the use of some funds allocated to support smoke exports and the “State Department (Trade) and (USDA)” have published an inter-agency cable system guide on which they rely to apply these restrictions. If we take an overall average, chronic smokers are expected to die approximately 10 years before other non - smokers with similar life patterns. The US Health Agency (FDA) announced Thursday, November 15, that it wanted to ban sales of e-flavored cigarettes on the internet. These will only be available in stores, closed spaces inaccessible to minors. The FDA also plans to impose a sales ban on menthol cigarettes and cigars, noting that "menthol serves to mask the repulsive aspects of smoke that discourage a child from smoking."
The United States was lagging behind in the fight against smoking. The treaty commits member countries to ban or restrict tobacco advertising, to fight against second-hand smoke or to increase tobacco prices. The United States has not signed this treaty, but "for some time they have adopted an attitude that is in line with the WHO Framework Convention", notes Bertrand Dautzenberg, President of the Office Français de prevention of smoking.
The GAO recommends (1) the State and the USDA to include funding limitations and help in the instruction resources for the staff concerned, and (2) the State, in discussion with the Department of Finance. Commerce and the USDA, as the case may be, updated inter-agency guidelines on tobacco promotion in light of issues raised by officials in posts abroad. The state and the US Department of Agriculture have accepted the recommendations.
Bibliography
Gao, “Agencies Have Implemented Restrictions on Promoting Tobacco Overseas but Additional Actions Could Strengthen Their Efforts” United States Government Accountability Office 19-124 (2018).
Subject: Economics
Pages: 1 Words: 300
DB7: Economies and diseconomies of scale Options Menu: Forum
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Economies have an impact on overall business irrespective of their size. However larger business gets affected less than the small business. When the economy works firmly then business also expand while with the fall in the economy, the business also faces crisis. This indicates the direct relationship between business and economy.
Economies and Diseconomies of Scale:
The situation where the cost of product per unit of production decreases with the increase in the output is known as economies of scale. In other words, economies of the scale represent the inverse relationship between fixed price and produced quantity. For instance, when the labor of the firm is efficient or gets specialized in a specific task then the productivity of the firm increases with the increase in efficiency of the labor. It can be caused by the increase in specialization with the increase in firm size ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"T1W7FIKa","properties":{"formattedCitation":"\\super 1\\nosupersub{}","plainCitation":"1","noteIndex":0},"citationItems":[{"id":164,"uris":["http://zotero.org/users/local/mlRB1JqV/items/HCJ5UBWD"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/HCJ5UBWD"],"itemData":{"id":164,"type":"post-weblog","title":"Economies and Diseconomies of Scale | Production","container-title":"Economics Discussion","abstract":"ADVERTISEMENTS: In this article we will discuss about the reasons leading to economies and diseconomies of scale. Economies of Scale: Various factors may give rise to economies of scale, that is, to decreasing long-run average costs of production: 1. Greater Specialisation of Resources: With an expansion of a firm’s scale of operation, its opportunities for …","URL":"http://www.economicsdiscussion.net/production/economies-and-diseconomies-of-scale-production/25507","language":"en-US","issued":{"date-parts":[["2017",1,13]]},"accessed":{"date-parts":[["2019",3,30]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} 1. The main factors which increase economies of scales include; efficient use of equipment, specialization of resources, maximum use of by-products, the decrease in unit cost of inputs, an increase in auxiliary facilities.
The situation where the cost of product per unit of production increases with the increase in output is known as diseconomies of scale. For instance, when labor or worker of the firm does not get motivation or face any other issue it leads to the diseconomy of the scale. It results in the low productivity of the firms which is measured through output per labor. The main factors causing diseconomies of scale includes resources competition and the role of management for decision making.
Auto industry:
In an auto industry the best example to explain the diseconomies of scale is the production of vehicles for every region. It means that manufacturing a huge amount of vehicle which can add cost without necessarily subsidizing much profit.
Automobile industry required the companies to afford all the equipment and its maximum use to produce a sufficient amount of product. Firms who successfully spread the cost per unit over a large amount of vehicle face economies of scale.
References
ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY 1. Economies and Diseconomies of Scale | Production. Econ Discuss. January 2017. http://www.economicsdiscussion.net/production/economies-and-diseconomies-of-scale-production/25507. Accessed March 30, 2019.
Subject: Economics
Pages: 1 Words: 300
Economics
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Pure Competition
A perfectly competitive market is one which has homogeneous products, has a multitude of sellers and buyers and in which the buyers have perfect knowledge of the products. Another major element of a perfectly competitive market is that there are no barriers to entry for new competitors. The industry of grocery stores is an example of a perfectly competitive market because it fulfils all of the aforementioned requirements. The products being sold are homogenous in nature. This means that completely similar products are being sold by different sellers. Since, these sellers are not producers of these products, the product supplied to them is by the same producers, hence the homogeneity of the products. Moreover, there are a multitude of sellers and buyers in the market, implying that one player cannot alter the prices through manipulation. This condition also applies to grocery stores as there are many grocery stores in America and the number of buyers is in the millions. Furthermore, buyers have perfect knowledge of products in grocery stores which means that the specifications of products are not hidden from anyone. The perfectly competitive model also entails that there are no barriers to entry on new competitors so any new sellers can arrive in the market. This is true for grocery stores as well as new grocery stores can be opened freely, with no external intervention.
Industries dealing in finite resources are known as increasing cost industries. An example will be the oil and gas industry which is running on fossil fuels that are limited in supply. On the other hand, decreasing cost industries are those whose average prices decrease as more vendors arrive in the market. Economies of scale is the major element that allows companies to reduce prices. An example is the manufacturing of car parts as more vendors drive the cost down. Whereas, a constant cost industry is one in which the number of new entrants does not affect prices as the production costs remain constant. Vegetables are an example of an industry which is constant cost.
Subject: Economics
Pages: 1 Words: 300
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