...Economics AS Jake Taylor Study of the price Elasticity of Holidays and petrol over the short and long term Terminology I shall be using throughout this essay: * Opportunity cost – The value or opportunity’s that you will not receive if another option is selected, this can be affected by a number of factors such as more of a selected item increasing its value. Another way to describe it would be loss of potential gain. * Supply and demand (Theory) – This theory relies on key aspects to operated, these reside around the fact that, if demand increases but supply remains unchanged there will be a shortage in the amount of the product available, thus leading to a higher Equilibrium price point. Similarly, as demand decreases but supply remains the same there becomes an excess supply of the product in the example, this leads to a lower Equilibrium price point due to compensation and countering the surplus that has occurred. * Price Elasticity – The labelling of a good or service in whether it is elastic or inelastic. The price elasticity of a good is determined by how the demand is affected in response to a change in price (increase). If a demand for a good changes very little in response to a change in price then the product is elastic, these types of goods are usually a necessity such as water. If the demand for a good changes dramatically (decrease/contracts) in response to a change...
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...Egypt’s Pharmaceutical Market Overview Egypt’s market is improving in terms of total pharmaceutical sales, although massive growth will continue to be hindered by high unemployment and the consequent low purchasing power. Egypt is the largest producer and consumer of pharmaceuticals in the Middle East and North Africa, with sales of US$4.2bn in 2010. The total drug market was worth US$2.69bn in 2010, while prescription sales reached US$2.22bn – 83% of all medicine sales. Patented products were valued at US$1.51bn and generics at US$717mn. Patented products were valued at US$1.51bn & generics at US$717mn. Type of Market market is moving towards Perfect Competition. However, it should be underlined that this is not due to the forces of supply and demand, but rather due to governmental regulations, which impose a certain ceiling price that all players must abide. Therefore, in our case, all market players are price takers, but because of governmental rules rather than actual market conditions. Market Overview Egypt is the largest producer and consumer of pharmaceuticals in the Middle East and North Africa, with sales of US$4.2bn in 2010. Company Overview- Sigma Sigma Pharmaceutical Industries is a joint stock Co. incorporated in 1998. S.P.I is engaged in the field of Manufacturing pharmaceuticals formulas, the Co’s started its actual operations in 2000 through its plant located at Mubarak Industrial City, 1ST Zone which is very well...
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...stagnated due to Japanese banks. The banks over lent, made it easy to borrow and in turn created bad debt, it make it difficult to replace the money borrowed and cause a deficit causing the deflation in the country. “The Nikkei average plunged from nearly 39,000 points in December 1989 to about 14,300 points in August 1992, thereby losing about 60% of its value. As a result, investors lost the equivalent of (U.S.) $2 trillion and property values plummeted by about $10 trillion. Property values in certain parts of the country declined by 70% and plunged Japan into a deep recession for 10-years.” (Alston, 2013) To summarize the stock market collapsed, property prices dropped, banks curtailed the easy lending practices the created the economic boom, consumer spending halted- recession created, deflation, and the Japanese government was unsuccessful 2. What lessons does the history of Japan over the past 20 years hold for other nations? What can countries do to avoid the kind of deflationary spiral that has gripped Japan? Other nations can learn from what happened with Japan. Strict lending practices should have been in place to begin with, this would help decrease the amount of bad debt. The Government need to watch its spending. Japan is stuck because its debt is so high, it is extremely difficult to become strong again. 3. What do you think would be required to get the Japanese economy moving again? In order to get the Japanese economy moving again, the Japanese...
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...Week1. Introducing Economic Development: A Global Perspective & Comparative Economic Development Absolute Poverty: a situation of being unable to meet the minimum levels of income, food, clothing, healthcare, shelter and other essentials. (over 40% of the world’s population lives on less than 2 dollar per day). Subsistence Economy: an economy in which production is mainly for personal consumption and the standard of living yields little more than basic necessities of life—food, shelter and clothing. (A subsistence economy is a non-monetary economy which relies on natural resources to provide for basic needs, through hunting, gathering, and subsistence agriculture. "Subsistence" means supporting oneself at a minimum level; in a subsistence economy, economic surplus is minimal and only used to trade for basic goods, and there is no industrialization.) Development：The process of improving the quality of all human lives and capabilities by raising people’s levels of living, self-esteem, and freedom. Developing countries: Countries of Asia, Africa, the Middle East, Latin America, eastern Europe, and the former Soviet Union, that are presently characterized by low levels of living and other development deficits. Used in the development literature as a synonym for less developed countries. Traditional economics: An approach to economics that emphasize utility, profit maximization, market efficiency, and determination of equilibrium. Political economy:...
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...stall in domestic industrial production. * Inflationary rate was negatively affected. In 2007 China’s inflation rate was 4.7%, in 2008 it grew to 6%, and when the GFC hit, the impact was clear when inflation had dropped down to negative 0.6% in 2009. * China’s unemployment rate had increased from 4% in 2008 to 4.3% in 2009. * China’s government debt as a % of GDP rose from 16% in 2007 to 19.5% in 2008 In November 2008 the Chinese government introduced a stimulus package worth $586 billion, which was aimed at encouraging growth and domestic consumption. After 2009 China experienced gradual increases in GDP growth, 9% in 2010 and 10% in 2011. Strategies to promote economic growth and development There are many strategies that the Chinese economy is using to promote their economic growth...
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...Question 1 1.1 The three basic purposes of macroeconomic theories are: • To explain how different items are associated in the complex real economic world. In the economic environment there are unlimited wants, but the means of getting those wants are limited due to insufficient resources to satisfy all possible uses. Therefore some resources must be given priority over others. Example: Gold has a higher value than quartz in the economic world. Gold is scarcer than quartz, so gold is a higher priority resource than quartz. • To predict what will happen if something were altered. The economic environment is always changing, so it can be hard to distinguish between the cause and effect on certain relationships. The theory extracts important...
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...I developed interest in studying Economics the very day I was introduced to the subject in my first year in the secondary school. Although I had the penchant to become a Financial Management Specialist, I realized that I could hardly become a successful one without studying Economics. This underpinned my resolve to combine Economics with Accounting during my undergraduate studies. My exposure to the intermediate level of Economics broadened my reasoning and decision-making skills which further deepened my interest in Economics. I have realized that Economics is important in every aspect of human life and that the study Economics offers a plethora of Vista. As Finance Manager, I employ both micro and macro economic data in taking financial decisions that will be in the best interest of my employers and stakeholders of the firm. For example, I consider economic factors such as inflation, interest and exchange rates and the principle of opportunity cost when performing my financial planning and treasury management functions. Apart from helping an individual to make rational choices, decisions or maximize any resources no matter how small, the study of Economics enables one to evaluate the effect of economic policies on the welfare of citizens. It also helps to evaluate government policies on...
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...An Emperical Study of Export ,Import And Economic Growth in Malaysia Meloney Antong & Kartini Binti Kapin Department of Economics, Faculty Economics and Business Universiti Malaysia Sarawak ------------------------------------------------- Abstract This paper investigates the relationship between export and import to economic growth. This paper is an attempt to carry out an empirical examination of the hypothesis on export-led growth. It also determines the direction of causality between exports, import and output, and investigates short and long-run dynamic impact of exports, imports on GDP growth in case of Malaysia. ------------------------------------------------- Keywords : Economic Growth, GDP, Export and Import. 1. Introduction Development is the main aim of any economy. The basic of economic development is economic growth. In order to promote economic growth, export-led growth is considered as the key to accelerate the rewards of all factors of production. Economic growth can related to many various factor. The main aim for any economy is development and economic growth is the basic of economic development. Export can be define as the goods and services that produce in the country and sold to the other countries. While, import is the goods and services that bought into other country for trade purpose. But, its depend to the import quotas, tariffs and agreement between the country. Export will represent the important sources of foreign exchange...
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...Abstract This paper would discuss the effect of external debt on economic growth with four areas, the effect on private local investment, foreign direct investment, government expenditure and export growth. Three theoretical models are adopted, namely Debt Overhang Theory, Liquidity Constraint Hypothesis and Crowding-out Effect respectively. Two policy implications on debt relief and debt restructuring are analyzed. And finally, the paper will include the discussion on the necessary tradeoff with inflation and contractionary fiscal budgeting after debt servicing. KEY Words: Heavily In-debt Poor Countries (HIPC), External Debt/Foreign Debt) Sustainability, Debt-GNI Ratio, Debt-Export Ratio, Debt Service Ratio Word count (excluding table of content, tables and reference): 2974 Topic: The Effect of External Public Debt in Developing Countries on Economic Growth - An Empirical Study on Argentina Abstract P.1 1. Introduction P.3 1.1 Literature Review P.4 1.2 Structure and Magnitude of External Debt of Argentina P.4 1.3 Theoretical Relationship between External Debt and Economic Growth P.6 1.4 Research Question(s) and Framework P.7 2. Data Collection and Empirical Analysis P.7 2.1 The effect of external public debt on:...
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...INTRODUCTION Most developing countries in the Sub-Saharan Africa, on average witnessed significant and consistent economic growth in their early years of independence (World Bank, 2004). Although majority of these countries succeeded in expanding their basic infrastructure and social services among others. It was therefore anticipated that much progress will be achieved in terms of raising the average income per head and improving on the general welfare of Africa following the average growth in real per capita income of about 3.8 % per annum between 1967 and 1970 (Mbanga, 2008). In the early 1970s, developing countries borrowed to finance their current account deficit. Such borrowing was geared towards boosting the level of economic growth and development. By 1980s, the developing countries’ debt had accumulated and the international financial institutions from this period started to provide both technical and financial debt-management assistance to debtor countries. However, this effort still aimed at fostering economic growth, was also equally meant to reduce both debt burdens and poverty level of these...
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...Section A (20 Marks) Write short notes on any four of the following 1. Marginal Utility 2. Income Elasticity of Demand 3. Role of Managerial Economics 4. Trend Projection Method 5. Economies of Scale Section B (30 marks) (Attempt any three) 1. Discuss the approaches to consumer demand analysis. 2. Describe the various methods for surveying the consumer. 3. Make a list of differences in complimentary goods and substitutes goods. 4. “Elasticity of supply is the degree of responsiveness of quantity supplied to a given change in price”. Explain this definition. Section C (50 marks) (Attempt all questions. Every question carries 10 marks) Read the case “Apple Inc.” and answer the following questions: Case Study: Apple Inc. In 2010, Apple had to delay the international launch of its iPad computer for a month, blaming ‘surprisingly strong US demand’ that was higher than the company’s ability to produce them. More than 500,000 were delivered to retailers and customers in its first week on sale, but these soon sold out. The company had planned to launch the touch-screen device internationally at the end of April, after beginning sales in the USA on 3 April. But the strong demand meant that it could not hit that date. The company said in a statement: ‘We will announce international pricing and begin taking online preorders on Monday, May 10. We know that many international customers waiting to buy an iPad will...
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...The Economic Malaise Case Study 1. In the 1980s Japan was viewed as one of the world’s most dynamic economies. Today it is viewed as one of its most stagnant. Why has the Japanese economy stagnated? The Japanese has stagnated due to Japanese banks. The banks over lent, made it easy to borrow and in turn created bad debt, it make it difficult to replace the money borrowed and cause a deficit causing the deflation in the country. “The Nikkei average plunged from nearly 39,000 points in December 1989 to about 14,300 points in August 1992, thereby losing about 60% of its value. As a result, investors lost the equivalent of (U.S.) $2 trillion and property values plummeted by about $10 trillion. Property values in certain parts of the country declined by 70% and plunged Japan into a deep recession for 10-years.” (Alston, 2013) To summarize the stock market collapsed, property prices dropped, banks curtailed the easy lending practices the created the economic boom, consumer spending halted- recession created, deflation, and the Japanese government was unsuccessful 2. What lessons does the history of Japan over the past 20 years hold for other nations? What can countries do to avoid the kind of deflationary spiral that has gripped Japan? Other nations can learn from what happened with Japan. Strict lending practices should have been in place to begin with, this would help decrease the amount of bad debt. The Government need to watch its spending. Japan is stuck because...
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...Case study of the Economic Problem The basic economic problem Economists distinguish between wants and needs; needs are those things which people require to survive. These comprise food, water and protection from the elements in the form of shelter and clothing. Nestlé products fall into two of these categories (food and water). However they can only be described as wants because it is possible to survive without consuming any Nestlé products at all. All resources are considered scarce because the wants for them (the demand) outstrip the various uses for them (the supply). This means that they have to be shared out (distributed) by a mechanism such as price. There are numerous ways in which a resource may be used, an opportunity cost is therefore created whenever one use is preferred over another. If water is used for industrial production, it is not available for agriculture or domestic consumption. Water is a classic example of the distribution problem of scarce resources. There is actually enough water in the world for everyone's needs, and it is not a resource that is ever 'used up' in the way that other resources can be consumed. The amount of water in the earth's water cycle - evaporating from the sea, then falling as precipitation over land - is constant, the problem is one of distribution - it is not always located where it is needed. Read more: http://businesscasestudies.co.uk/nestle/sustainability-and-water/the-basic-economic-problem.html#ixzz1oPYHca55 Case...
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...TIMBERLAND THE SOCIALLY RESPONSIBLE MNE TABLE OF CONTENTS ABSTRACT 3 INTRODUCTION 3 1 A THEORETICAL FRAMEWORK ON CSR 4 1.1 Changing perceptions, CSR as a must 4 1.2 Stakeholders’ Theory and Social Contract 5 1.3 Carroll Theory 6 1.4 Positive and negative light of CSR 6 1.5 How to implement Corporate Social Responsibility in a MNE ....................................7 2 TIMBERLAND AND CSR 7 2.1 Brief history of Timberland 8 2.2 The path towards CSR at Timberland: “Commerce and Justice” 8 2.3 CSR at Timberland today: the 4 Pillars 9 2.4 Timberland CSR practices: two cases in evidence 10 Case 1: Timberland entering India 10 Case 2: Timberland in China and Vietnam 11 3 TIMBERLAND’S INTERNATIONALIZATION STRATEGY 11 3.1 Timberland’s internationalization process: an overview 11 3.2 Historical context fostering or hampering Timberland’s internationalization 13 3.3 An internationalization theory applied: The Uppsala model 14 4 ROLE OF CSR IN TIMBERLAND’S INTERNATIONALIZATION STRATEGY 15 4.1 Boosting company efficiency by educating workforce 16 4.2 Improving local performances by assessing Code of Conduct compliance 16 4.3 Strengthening international relationships by supporting local development 17 4.4 Spreading global image by involving communities 17 4.5 Financing international expansion by boosting shareholders’ endorsement 18 5 TIMBERLAND VS. COMPETITORS: CSR NURTURING COMPETITIVE ADVANTAGE 19 5.1 OLI theory: an application of Timberland’s...
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...Name Instructor Course Date Case Study In the case study provided, Westport Electric Company seems to be having serious budgetary problems. The selection, planning and implementation of various projects seem to be faulty. In this particular case, King who is the supervisor of the administrative staff budget staff section has raised a red alarm with regard to two recent budget approvals (Kieso 161). Background Information: Origin and Magnitude of the Problem The operating activities of Westport Electric Company are categorized in four main groups: “the electrical and transmission group, the Military and Space group, the Home Appliances group, and the Electronics group” (Kieso 161). These groups have various operational divisions. These administrative offices vary in nature and categories. The administrative offices offer top management advice in area of specialty. The vice presidents of these departments constitute the policy committee which takes part in the decision-making. These administrative offices “offer advice to operating divisions and other staff offices and coordinating among divisions” (Kieso 161). Generally, before a project is approved it undergoes a series of checkpoints. “At the beginning of the year, the budgeting department provides timetables and instructions required for the preparation, submission and approval of budgets for the forthcoming year” (Kieso 162). During budget preparation, a number of elements are considered. They...
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