...power as well as people. The available purchasing power in an economy depends on current income, prices, savings, debt, and credit availability. Marketers must pay close attention to major trends in income and consumer-spending patterns. Marketers often distinguish countries with five different income-distribution patterns: (1) very low incomes; (2) mostly low incomes; (3) very low, very high incomes; (4) low, medium, high incomes; and (5) mostly medium incomes. Marketers must pay careful attention to major changes in incomes, cost of living, interest rates, savings, and borrowing patterns because they have a strong impact on business and PepsiCo is always aware of economic environment for Pepsi. Natural Environment: In the natural environment, marketers need to be aware of raw materials shortages, increased energy costs and pollution levels, and the changing role...
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...| Essay, Custom Research Paper: Argumentative Essay on Child Labor Laws and Regulations | | | | Child labor occurs along a continuum, with harmful and exploitative work that endangers the welfare and potential of the child at one end of the spectrum and light work and often beneficial training and apprenticeship at the other. National and international labor standard regulations with respect to what constitutes a legally permissible minimum age of employment accordingly depend typically on a range of criteria including (a) the type of work, as distinguished by the degree of hazard a child faces, or whether the child is subject to exploitation, or the worst forms of child labor; (b) the sector of employment, whether in agriculture, manufacturing, or family businesses or the household; and (c) the degree to which child labor work interferes with schooling, depending on the number of hours a child is put to work, say, per week.Though child labor statistics inevitably paint an aggregate picture, the coverage of national and international statistics has improved, reflecting a diversity of activities that come under the umbrella of child labor work. International Labour Organization (ILO) statistics treat any child as economically active with performance of at least 1 hour of work during the week prior to asurvey. The ILO also defines a child laborer as synonymous with (a) an economically active person between the ages of 5 and 11, and (b) an individual between the ages of 12...
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...Dr. Magadalena Cutler October 24, 2011 Introduction Consumer Behavior is how consumers allocate their money incomes among goods and services. Each consumer has preferences for certain of the goods and services that are available in the market. Buyers also have a good idea of how much marginal utility they will get from successive units of the various products they might purchase. However, the amount of marginal & total utility that the people will get will be different for every individual in the group because all individuals have different taste and preferences. According to Maurice & Thomas (2011) “marginal utility is an additional or incremental utility. Marginal utility is defined as the change in the total utility that results from unit one unit change in consumption of the commodity within a given period of time”(p. 169). There is an assumption that consumers engage in rational behavior. Therefore one can define a consumer as a rational person, who tries to use his or her money income to derive the greatest amount of satisfaction, or utility, from it. Consumers want to get the most for their money or, to maximize their total utility. Rational behavior also requires that a consumer not spend too much money irrationally by buying tons of items and stock piling them for the future, or starve themselves by buying no food at all. Substitution and Income The income effect describes how consumers react to an increase in purchasing power. For example, if the...
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...A recap of the events building up to The Real Estate Bubble, the causing factors of The Financial Crisis of 2008 and the likelihood and implications of an Economic Recession in 2016 Karan Sharat Nath Pace University, Lubin School of Business Kn31474n@pace.edu ------------------------------------------------- Table of Contents 1. Abstract 2. Introduction 3. The Real Estate Bubble and Great Recession 4. Signs that point towards a Global Economic Downturn 5. Conclusion: Consequences of a recession in 2016 6. Work Citied ------------------------------------------------- Abstract This research paper aims to briefly recap the events that led to the real estate bubble and global financial crisis of 2008, collect data that could indicate a financial downturn that could lead to a recession that is sparked in 2016 and understand the implications that a recession in 2016 would have upon the Global Financial System. The recession that ensued in 2008/2009 was the worst widespread downturn witnessed since the Great Depression of the 1920’s and 1930’s. Since the peak of the downturn the S&P has almost doubled and unemployment has dropped by nearly half. But at present many vital indicators that monitor US growth and economic activity are displaying so very troubling signs. With the majority of this growth over the last decade being enabled by central bank support and cheap money, expansion is not sustainable. Eventually the...
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...profession.” John Papworth Economist– the one profession where you can gain great eminence without ever being right.” George Meany While these views / opinions of economics / economists contain some element of truth, they hardly give a meaningful insight into the nature of the subject and the work of economists. What is Economics? Many definitions have been offered for Economics. Mostly, they focus on two inter-related approaches to the above question: 1. 2 the problems that Economics deals with; and the methods that economists use in dealing with these problems. An example of the ‘problem’ type of definition is given below: “Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses.” Lord Robbins 1929 Simply put, Economics can be defined as the social science which studies how human beings use what is available to get what is wanted. An example of the ‘methods’ type of definition comes from a famous economist: MDIS 1–1 Introduction to Economics BASIC ECONOMIC CONCEPTS “It (Economics) is a method rather than a doctrine, an apparatus of the mind. A technique of thinking which helps its possessor to draw correct conclusions. Lord Keynes, Cambridge Economic...
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...Britain has the most complex tax system in the world, which is largely believed that is roughly five times as long as the German tax code (Geraint Jones, 2011) Currently, governments request to use taxation in some situations for purposes which is different than raising funds to cover up its expenditure. To begin with, the economic resources, which are accessible for the nation are limited, thus a raise in government spending usually leads to a decrease in private expenditure. In addition to this, one technique of transferring recourses from the private to the public sector is the use of taxation, but there are also further methods. One of these alternative methods is the degradation of the currency through the creation of additional money, but the main problem of this method is that it leads to inflation. Moreover, an additional alternative option is for the government to charge the goods and services it offers. However, it is not possible to charge individuals directly on the basis of their utilization of many government services (James and Nobes, 2011). According to Musgrave (1959), the economic function of government may be separated into three major categories. First, is to overcome...
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...MARKET LIBERALIZATION: THE REDISTRIBUTIVE EFFECT OF PETROLEUM PRICE LIB. THE ROLE OF PETROLEUM PRICE LIVERALIZATION IN THE PROCESS OF FINANCIAL AND ECONOMIC DEVELOPMENT OF NIGERIA PETROLEUM PRICE DEREGULATION IN NIGERIA: AN INTRODUCTION TO THEORETICAL, INSTITUTIONAL AND POLICY ISSUES. Nigeria once flush with oil boom revenues, is now a country of unfinished petrol station construction sites, ghost refinery depots, abandoned petrol stations, an unintended monuments to unrealized expectations. It is therefore not a surprise that in such an environment the appetites for risk should naturally abate often such catastrophic losses and situation. ORIGIN OF FREE MARKET IDEOLOGY IN NIGERIA Overview/introduction A careful study of Nigeria’s economic… reveals that… Economic policies in Nigeria have in the last two decades reflected a drive for accelerated economic development through economic and financial liberalizations. The outcomes have been largely disappointing, even in the honest estimates of their designers. Both urban and rural livelihood has become more insecure, and the expected economic development and growth has rarely materialized. Social and political insecurity are etched into the growth pattern. Ironically, the same liberalization policy that has been so deeply adverse to many sectors of the economy, somehow provided new opportunities to some individuals and groups that have the absorptive capacity to embrace, absorb and integrate both the policy and transfer...
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...“True enjoyment comes from activity of the mind and exercise of the body; the two are ever united.” (von Humboldt, n.d.). As the public becomes more health-conscious and the aging population places greater emphasis on remaining healthy and fit, the fitness industry is maintaining steady growth because of better dietary practices and a resurgence to play and become more active. It is no surprise the demand for gyms and health and fitness clubs will continue to rise. Therefore, my paper will cover the critical concepts as it relates to Bally Total Fitness Case Study. I will highlight Bally’s history, macro environment, SWOT analysis, corporate-level strategy, business-level strategy, and my recommendation for Bally Total Fitness. History, Development, and Growth Dave “Wild man” Wildman is said to be the founder of Bally Fitness, but it was Raymond T. (Ray) Moloney back in the early 1930’s who decided to create an affordable past time of pinball. Anyone could play pinball at the price of seven balls for one cent or 10 balls for a nickel. In January of 1932, Ray founded the popular past time while working under Lion Manufacturing in Chicago. The Ballyhoo pinball game was easy to make and very profitable. With the creation of the “Goofy,” the “Airway,” the “Rocket,” and the “Bumper” pinball machines, Bally Manufacturing, under Moloney’s leadership, took off. Bally Manufacturing headquarters remained in Chicago at the same address for almost 50 years. In 1936, Bally Manufacturing...
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...Doing business in Singapore Table 1. Profile of Singapore Name Singapore Geographic location East Asia Current form of state City state with parliamentary democracy Previous form of state British colony (1819±1959) Member of Malaysia (1959±1965) Land area 647.5 sq. km Population 3.04 million (mid-1996 estimate) Population growth (1993±1997) 2% per year Population make-up Chinese (77.3%) (Singapore, as of June 1996) Malay (14.1%) Languages English, Chinese, Malay and Tamil GDP (US$) $94.1 billion (1996) GDP per head (US$) $30 900 (1996) GDP growth (1988±1997) 2.67 times Economic status Newly industrialized economy Type of industrialization Export-oriented Major industries by % of GDP Finance...
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...Learning Objectives Chapter 1 Distinguish between microeconomics and macroeconomics. Explain the factors that drive demand and supply. 2 Describe each of the four different types of market structures in a private enterprise system, and compare the three major types of economic systems. 3 3 Identify and describe the four stages of the business cycle. Explain how productivity, price level changes, and employment levels affect the stability of a nation’s economy. 4 Discuss how monetary policy and fiscal policy are used to manage an economy’s performance. 5 Describe the major global economic challenges of the 21st century. Economic Challenges Facing Contemporary Business Rudyanto Wijaya/iStockphoto Copyright ©2012 John Wiley & Sons, Inc. NASCAR Tries to Restart Its Engine ASCAR is widely known as the most popular spectator sport in the United States. Yet even its most diehard fans are tapping the brakes when it comes to buying tickets to their favorite speedway. Tracks in cities such as Phoenix and Talladega have reported double-digit percent declines in attendance. Just as worrisome is the fact that, instead of watching races at home, fans are changing the channel. Some critics of NASCAR blame a drop in dramatic action and a mandated car chassis design that leaves car models undifferentiated. Others say that the races are just too long and the broadcast commentary is boring. But NASCAR defenders argue that there’s another huge obstacle: the...
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...Microeconomics: Prin., Apps, & Tools, 8e (O'Sullivan) TB1 Chapter 1 Introduction: What Is Economics? 1.1 What Is Economics? 1) Economics is best defined as the study of: A) financial decision-making. B) how consumers make purchasing decisions. C) the choices made by people faced with scarcity. D) inflation, unemployment, and economic growth. Answer: C Diff: 1 Topic: What Is Economics? Skill: Definition AACSB: Reflective Thinking Learning Outcome: Micro-1 2) Economics is the study of: A) how to invest in the stock market. B) how society uses limited resources. C) the role of money in markets. D) how government officials decide which goods and services are produced. Answer: B Diff: 1 Topic: What Is Economics? Skill: Conceptual AACSB: Reflective Thinking Learning Outcome: Micro-1 3) Scarcity can best be defined as a situation in which: A) there are no buyers willing to purchase what sellers have produced. B) there are not enough goods to satisfy all of the buyers' demand. C) the resources we use to produce goods and services are limited. D) there is more than enough money to satisfy consumers' wants. Answer: C Diff: 1 Topic: What Is Economics? Skill: Definition AACSB: Reflective Thinking Learning Outcome: Micro-1 4) An arrangement that allows buyers and sellers to exchange things is called: A) a contract. B) a market. C) money. D) efficient. Answer: B Diff: 1 Topic: What Is Economics? Skill: Definition AACSB:...
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...229 Study Unit 13 Monetary Policy Contents A. Options for Holding Wealth Physical Assets Financial Securities Liquid Money – Cash Page 230 230 231 231 B. Liquidity Preference and the Demand for Money 232 C. Implications of the Interest Sensitivity of the Demand for Money Interest Rates and Demand for Goods and Services Classical and Monetarist View The Keynesian View of Interest Rates and Expenditure Implications of the Differences 234 234 235 235 235 D. Changes in Liquidity Preference 237 E. The Quantity Theory of Money and the Importance of Money Supply The Money Equation Diagrammatic Representation of the Quantity Theory of Money 238 238 238 F. Methods of Controlling the Supply of Money Interest Rate Control Control over Banking Ratios Direct Controls over Banks Control of Government Borrowing 240 240 240 240 241 G. Monetary Policy and the Control of Inflation 241 © ABE and RRC 230 Monetary Policy Objectives The aim of this unit, in conjunction with Study Unit 12, is to explain and evaluate the effectiveness of monetary policy in a closed and open economy and discuss the possible impact of monetary policy on business decision-making. When you have completed this study unit and Study Unit 12 you will be able to: demonstrate an understanding of the relationship between the banking system and the creation of money identify the components of the high-powered money stock and explain why these...
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...Samoa is a small country in the Pacific Ocean. It consists of two main islands Savaii and Upolu with several smaller surrounding islands. It is a tropical island with two distinct seasons, the wet and the dry (peak) season. Until 2009 Samoa had enjoyed strong and steady growth in visitor arrivals. From data collected it can be analysed that between 1998 and 2008 total visitor arrivals had increased by nearly 80 percent to 122,163 (Figure 1) (IMF, 2010). Visiting friends and relatives (VFR) is one of the most prominent segments, comprising 37.3 percent of all visitors in 2009 (Figure 2) (IMF, 2010). The number of holiday tourists have also increased from 30.4 percent in 1997 to 39.8 percent in 2009, with the remainder being business visitors whose numbers have remained fairly stable (IMF, 2010). Prior to 2009, Samoa had been relatively competitive as a tourist destination in comparison to other Pacific Islands. Samoa has found its niche market with the fale (traditional beach hut) experience as a distinctive selling point. Furthermore, strong family links with Samoans living in neighbouring countries have significantly contributed to the growing strength of its tourism industry. As a result, tourism has become a key source of income and economic growth. Earnings in the tourism sector increased by 191 percent with growth particularly evident in the three years 2005-2008. Tourism receipts are approximately equivalent to 20 percent of GDP, making the sector by far the single largest...
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...MIcroeconomics: Markets, Methods & Models Douglas Curtis and Ian Irvine | Version 2014/2015 $ ADAPTED OPEN TEXT FORMATIVE ONLINE ASSESSMENT COURSE SUPPLEMENTS COURSE LOGISTICS & SUPPORT a d v a n c i n g l e a r n i n g www.lyryx.com Copyright This work is licensed under a Creative Commons AttributionNonCommercial-NoDerivs 3.0 Unported License. http://creativecommons.org/licenses/by-nc-nd/3.0/deed.en_GB Douglas Curtis and Ian Irvine Edition 1.11 This edition is differentiated from the first edition solely by minor editorial adjustments. Content has not been altered. Microeconomics: Markets, Methods and Models About the Authors Doug Curtis is a specialist in macroeconomics. He is the author of twenty research papers on fiscal policy, monetary policy, and economic growth and structural change. He has also prepared research reports for Canadian industry and government agencies and authored numerous working papers. He completed his PhD at McGill University, and has held visiting appointments at the University of Cambridge and the University of York in the United Kingdom. His current research interests are monetary and fiscal policy rules, and the relationship between economic growth and structural change. He is Professor Emeritus of Economics at Trent University in Peterborough, Ontario, and Sessional Adjunct Professor at Queen’s University in Kingston, Ontario Ian Irvine is a specialist in microeconomics, public economics, economic inequality...
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...as one of the problems militating against the development of SMEs in Nigeria and elsewhere. This study is built on the argument that, unlike larger businesses, the establishment and operation of SMEs promotes economic development which by extension, boosts a country’s GDP number [6] (see Fig. 1). A separate study identifies this link (between SMEs and GDP) but could not establish if it is actually responsible for economic growth [7] while another study presents a decreasing link of 51%, 39% and 16% of GDP being produced by SMEs in high-income, medium income and low-income countries respectively [8]. Elsewhere, it has been confirmed that SMEs were responsible for pulling the US out of economic slump and can therefore, serve as any other economy’s talisman to economic growth [9], [10]. This study is also important because Nigerian SMEs account for some 95 per cent of formal manufacturing activity and 70 per cent of industrial jobs [11]. # UB Akuru# and OI Okoro+ + ABSTRACT This paper is concerned with the unabated epileptic power (electric) delivery which is seen to be periodic with a struggling...
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