...“With reference to organisations or industries that you know, to what extent do you think that recent changes in the UK economy will have inevitably damaged the long-term profits of businesses that operate in this country?” (40 marks) Long term profit is the financial return or reward that entrepreneurs aim to achieve to reflect the risk that they take. Generally, the capital leftover after costs have been subtracted from revenue. The UK economy is an entire network of producers, distributors and consumers of goods and services in a national community. The economy in the UK is in recovery after a recession in 2008-2009, and therefore it is strengthening and past the pre-slump peak. Gross Domestic Product (GDP) is a measure of a country’s economic activity, including all goods and services produced in a year; economic growth shows the increase in output of goods and services compared with the year before. In the second quarter of 2015, the United Kingdom’s economy has grown 0.7% (Office of National Statistics) and was worth approximately £1.51 million back in 2013, when annual growth was 3.2%. Due to the UK economy recovering, the country’s GDP is also growing positively, this growth creates more opportunities, as consumer tastes change because it becomes easier to setup or expand a business in a rapidly growing economy. In addition, new gaps emerge in the market, establishing more opportunity for promising entrepreneurs, as well as returning consumer confidence to spending...
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...Question 1 Provide short answers to the following: (a) Explain in detail the process whereby banks create money. 1. Banks have excess reserves 2. Banks lend excess reserves 3. The quantity of money increases. 4. New money is used to make payments. 5. Some of the new money remains on deposit. 6. Some of the new money is a currency drain 7. Desired reserves increase because deposits have increased 8. Excess reserves decrease. (b) What factors constrain the ability of banks to create money? There are 3 factors constrain the ability of banks to create money: 1. The monetary base 2. Desired reserves 3. Desired currency holding Question 2 Provide short answers to the following: (a) Explain how the money market determines the nominal interest rate. The nominal interest rate on other assets minus the nominal interest rate on money is the opportunity cost of holding money. (b) Discuss in detail how an open market purchase of securities by the Reserve Bank impacts the money market in the short run. Starting from a short-run equilibrium, if the Reserve Bank increases the quantity of money, people find themselves holding more money than the quantity demanded. With a surplus of money holding, people enter the loanable funds market and buy bonds. (c) Explain how the money market then moves back to equilibrium in the long run. What has happened to the interest rate and price level in the long run? First, the nominal interest...
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...Free Trade Free trade may also be called International Trade. Free Trade occurs when goods and services are traded between countries without the use of import controls. For most of the late twentieth century, the prevailing wisdom has been that free trade can lead to improvements in economic welfare in the global economy. However this has not prevented regular trade disputes between countries - often when one country feels that unfair trade practices have caused the benefits from trade to become distorted. Free trade is very important to all developed countries as there are likely to be economies of scale - when producing for larger markets (foreign markets), average costs of production will be lower. There is likely to be a wider choice of products for consumers to buy and prices are likely to be lower because of lower costs. There is likely to be more efficient use of resources because countries will specialise in producing goods and services where opportunity cost is lowest, i.e. countries will produce goods and services that they can make more efficiently. There is likely to be an increased global output of goods and services without using more inputs. Another reason for importance is there is likely to be a higher standard of living for consumers. There may be political benefits because dealing with other countries will improve relationships. Maquiladoras (Mexican factories which take in imported raw materials and produce goods for export) have become the landmark...
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...Essay – Low Carbon Economy The world population is said to be about 7.2 billion people at present time. The estimated increase by the end of the twenty first century is expected to be about 9 billion people. Therefore, this increase is expected to have a strain on the world’s economy (Turn down the Heat: Why a 4°C Warmer World Must Be Avoided pg44). Because more will need to be produce in terms of energy, food, health care, education and also to maintain the general wellbeing of the world’s population. So it can be seem that if the world continue on its current path there will need to be a greater need for fossil fuel use. Fossil fuel, the main source of energy that runs the world’s economy. But the burning of fossil fuel is being said by...
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...1. What are the primary differences between subsistence, capitalistic, and centrally planned economies? Subsistence economies are the place where individual lives are dependent on what can be gained from their property or land that our family owned and the land is worked or farmed by one’s self or family. Subsistence economies are different and rely on what is gained from the farmland and items that is self-produced or produced by the family. Subsistence does not use any resources that are non-renewable Capitalistic Societies is where companies of individuals produce goods or a product which provide services that are sold based on supply and demand. Centrally planned economies are resources that are used in distribution, enforced and decision made by the U.S. Government. The central planned and capitalistic societies will put a strain on the environment at an increasing rate, as the overall wealth of society increases and the population numbers rise and both rely on the government’s response. The United States is a much wealthier country and will use far more resources than a poorer country with a much larger population. Capitalistic and centrally planned societies tend to approach resource...
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...The world as a whole is known for it’s climatic, regular recessions, impacting millions of people in the domino effect; one economy crashes, then they all do. This is very closely linked to the creation of the baby boomer economy, possibly the most brittle of economies that the world has ever seen. Housing prices are sky rocketing, houses are left empty, yet homeless still exists, and people are evicted everyday from their homes. This is the reality of the baby boomer economy Canada is in now, which is effected economically, socially, and politically to be, historically, one of the hardest times to be alive. The economic changes in the past 40 years have not been for the better, as the previous times had been. The baby boomer generation managed to change the cost of living expontentially, from being able to feed a family of 7 for under five dollars, per meal, in the 60-70s, to not even being able to feed one person for under five dollars a meal in 2015. As a concequence, a lot of millenials have began living at their...
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...Money lending in one form or the other has evolved along with the history of the mankind. Even in the ancient times there are references to the moneylenders. Shakespeare also referred to ‘Shylocks’ who made unreasonable demands in case the loans were not repaid in time along with interest. Indian history is also replete with the instances referring to indigenous money lenders, Sahukars and Zamindars involved in the business of money lending by mortgaging the landed property of the borrowers. Towards the beginning of the twentieth century, with the onset of modern industry in the country, the need for government regulated banking system was felt. The British government began to pay attention towards the need for an organised banking sector in the country and Reserve Bank of India was set up to regulate the formal banking sector in the country. But the growth of modern banking remained slow mainly due to lack of surplus capital in the Indian economic system at that point of time. Modern banking institutions came up only in big cities and industrial centres. The rural areas, representing vast majority of Indian society, remained dependent on the indigenous money lenders for their credit needs. source: http://www.competitionmaster.com/ArticleDetail.aspx?ID=41e9ef66-3271-418d-b344-09f76d6f59a1 Independence of the country heralded a new era in the growth of modern banking. Many new commercial banks came up in various parts of the country. As the modern banking network grew...
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...My first topic I will be discussing is World War One. This war changed the economy of the world.it also left many countries all over the world in great amounts of debt. During this war, over 1 million people in both sides died. It also affected many countries including America in very high inflation. Because of the war and our troops traveling all over influenza then affected a lot of people, 25 million around the world to be exact. This affected us because so many people died. Our next topic is the Great Depression. America’s economy fell down in shambles. The rate of unemployment rose to 25 % of all the Americans. This left so many people and families homeless and no way to have food or water. The price of homes plummeted to 30% down then it was before. Along with hear terrible things it...
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...Essay in Political Economy of Work Do Taylor’s ideas on scientific management have any application in the contemporary workplace? Discuss with reference to evidence and alternative insights. Why for example do so many banks, health providers, and other companies ask you to key in your account number “for faster service,” when you will be asked to repeat it twice more to the people who are serving you? That is a symptom of Taylorism run rampant, a misplaced faith in technology unjustified by human experience. (Weisbord 2011: 12) The nature of work and its organization has interested managers, economists and social scientists for as long as people have been employed by others to engage in productive activity. Indeed, managers have largely been interested in maximizing output from available resources. Economists and social scientists have raised questions about the organization of work in relation to issues of the individual and society in general. Historically, the emphasis was on finding the best way in which to manage the human resource through scientific and mechanical means. Frederick Taylor (“Taylorism”) and Henry Ford (“Fordism”) were both looking to make labour more efficient by fitting workers to jobs. To counteract the some of the worst features of Taylorism, the job redesign and human relations movements stressed the importance of an understanding of employees’ social, rather than simply economic, needs. ...
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...to find out. Chandler argued that large managerial enterprises have managed to prosper through the years due to a basic economic logic, which he named ‘three-pronged strategy’ [2] (Chandler, 1995). According to this concept, firms should invest heavily in both their production and distribution functions in order to fully exploit economies of scale and scope at a national and international level (Chandler, 1990; 1995). This can only happen when the firm relies on the accurate judgment of skilful professional management. The aim was to create organisational capabilities and benefit from first-mover advantages via ‘related diversification’ (Chandler, 1995; Whittington et al., 1999). The implemented structure can best be described, using the author’s own words, as ‘centralised and functionally-departmentalised’ (Lash and Urry, 1987: 43). Countries that ignored the logic [3] were doomed to moderate performance and low competitiveness (Chandler, 1995). Hence, Chandler’s thesis was twofold: first, he stressed the relative economic consequences of the multi-divisional structure and second, he argued that the strategies and thus structures of advanced economies are converging towards those adopted in...
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...After gaining independence, Ghana’s economy had reached a state of crisis and therefore, certain International Financial Institutions (International Monetary Fund and World Bank) had intervened. The goal for Ghana was to pursue economic growth at all costs and seek to achieve through the increase of the Growth Domestic Product and the Growth National Product. Structural adjustment programs (SAP) (designed by the World Bank and IMF) had begun being implemented by the Provisional National Defense Council (PNDC) and National Democratic Congress (NDC). SAPs can be defined as “the process by which key institutions and policies are reconstructed with the intent on advancing economic growth”. This involves increasing economic dependency and diversifying economic resources. While looking at Peter Arthur’s opposing argument that the IFIs and their strategies were detrimental to Ghana’s economy - Kwadwo Kanadu-Agyemang and Darko Kwabena Opoku believe that these strategies and SAPs were beneficial to Ghana’s economy, only to a certain extent. This essay will aim to identify certain criticisms of Ghana undergoing the SAP as well as which sectors of the SAP were beneficial to Ghana. Furthermore, this essay will identify that the ‘imposition’ of the SAPs was indeed necessary and less destructive than its critics state. Colonial rule ended for Ghana in 1957 and they became politically independent and they were “the first country in sub-Saharan Africa to do so”. Ghana had ebeen the world’s...
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...Hilliard doesn't interact with a huge amount of characters very deeply, but often has overviews of their personalities and is very judgemental in assessing different aspects of them. He comes across as quite cold and unforgiving with other people and aspects of this are shown in his relationship with the major. He doesn't give the major much time and is short in his responses “I’ve been in France.” The major asking a simple question and Hilliard is almost sarcastic in his response. This could be because Hilliard is tired of the home fronts view of war and that he doesn't want to continue what feels is a discounted view of what war is. However the Major is an old man and perhaps he is a little out of touch but this may be because people don't update him on how war changes. This shows a hypocritical nature within Hilliard as he is angered by the home front’s naivety but doesn't elect to tell them how its changed. It creates a relationship between the characters of discontent in Hilliard’s view of him within their relationship. Also this use of short, sharp and blunt sentences in common within Hill’s writing style which usually represents annoyance when used in speech. This quote is representative of this. Another aspect of the Major and Hilliard’s relationship is the idea that they don’t really have conversation they just talk at each other, without really listening on responding. “you weren't a cavalryman”… “oh, i do,” especially when the major talks back to Hilliard, he...
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...order to understand business and the economy one need to know the meaning of business and its purpose within society. Business can be viewed as a legal entity to sell goods, make goods or provide a service to individuals. It’s an economic system where a for-profit and a non-profit company can exist in providing goods and services. Businesses operate within a network of distributors and producers of goods, consumers’ who purchase goods, within a demographic area based on their needs and wants. Within this network how a business is structured and form can affect the profitability of that business; also, how businesses perform can affect the overall performance of a country’s economy. Describe the role of business in the economy Being part of a capitalistic economy businesses are the main and most important component of it. Businesses play a role in every section of an economy, such as; manufacturing, healthcare, retail and service are examples of what involves businesses. Without a network of producers and distributors there will be no economy, if businesses do not exist then consumers will have to produce, create, store, and sell items themselves, basically everyone would be fending for themselves for every need and want. (Kelly, M., & McGowen, J. (2012) In today’s global businesses environment the economic impact can be felt internationally. As businesses go through cycles of growth and peaks, contractions and recovery, the economy will either grow or decline based on...
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...(Ukessays.com, 2015). A major strength of the company is its international presence. With sales in 166 markets worldwide, Red Bull is dominate in the United States and North America (Ukessays.com, 2015). Within the last 5 years the company has seen major international growth. Each country that Red Bull takes on as a possible new market presents their own individual challenges with individual economies to enter into. President and Congress Stimulation and Contraction of the Economy On September 8, 2011 U.S. President Barack Obama proposed the American Jobs Act on a nationally televised address to a joint session of Congress. This act is a measured approach that will boost job creation (Boushey, 2011). Inside the act includes a number of key proposals that in 2011 had bipartisan support, including infrastructure investments, putting teachers back in school, tax cuts for small businesses, and help for the unemployed (Boushey, 2011). While this may not directly impact Red Bull as a company initially, what this will do in turn is provide jobs and thus more money into the U.S. economy. The more jobs, the more money in workers pockets, and therefore the more money to spend. It is more likely that with this growth in the economic stability in the U.S. household the more likely that the individuals are to purchase products such as Red Bull. Another way in which Congress,...
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...Form * UK Essays * Services * Instant Price * Order Now * Essays * Dissertations * Guarantees * Contact * ECONOMICS The economics essay below has been submitted to us by a student in order to help you with your studies. ------------------------------------------------- Top of Form Bottom of Form Back to Subject Index 1. UKEssays 2. Essays 3. Economics 4. Analysis Of The Emerging Country South Africa Economics Essay Print Reference This Reddit This Tweet Analysis Of The Emerging Country South Africa Economics Essay In the following pages we will analyze the place of South Africa in International Trade. In order to do so we will analyze the background of the country, develop PESTLE analysis, look at the balance of payments as well as trade balance, examine exchange trade policy and growth rate of the economy. In conclusion we will provide forecast for country's development. Today South Africa's trade and industrial policy is moving away from a highly protected, inward looking economy towards an internationally competitive economy, capitalizing on its competitive and comparative advantages. From the period of apartheid, it has made great progress in dismantling its old economic system, which was based on import substitution, high tariffs and subsidies, anticompetitive behavior, and extensive government intervention in the economy. The leadership has moved to reduce the government's role in the economy and to promote...
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