...Individual News Article Daniella Baca ECO/372 October 21, 2013 Dr. Darryl Baker Individual News Article A factor that consumers must consider today is the impact that interest rates have on the United States economy. Economists believed that the housing market would begin to heal, auto sales would hit a record high, and the government would begin running a surplus. However, the only correct prediction was the rise in auto sales. Auto sales rose tremendously, and was a good sign of the economy slowly recovering. Even though the government has full control of the economy their actions greatly affect the economy. In this paper I will analyze the effect that interest rates have on the economy and how aggregated supply and demand is affected. The U.S. economy remains weak and the government has considered tapering. Tapering would mean that the government would have to reduce its asset purchase program. This process would have to be slow and gradual so that the markets will not be affected. Economists believe that tapering would result in an increase in interest rates and could have bad effects on the economy. The first part of the economy to be affected would be mortgage rates. The housing market is critical to a thriving economy and higher interest rates would slow it down drastically. For this reason tapering would be risky to the economy. Higher interest rates will hurt everyone except the investors who rely on interest income. Higher interest rates leave...
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...Economic Critique ECO 372 Economic Critique Describing the current state of U.S. economics, we will discuss several factors to include unemployment, future expectations, consumer income, and interest rates. We will identify the existing effect of the economic factors on aggregate demand and supply. In addition, we will identify current recommended fiscal policies by government leadership. With this information, we will then evaluate the effectiveness of the current fiscal policy recommendations from both the Keynesian and Classical model perspectives. To better understand what the state of the unemployment situation is in today’s current economy, it was determined that a good place to start was with the Bureau of Labor Statistics (BLS) or the U.S. Department of Labor. The first quarter tally of 2013 is not available until February 2, 2013. Therefore, we based our calculations on the data from December 2012. According to the BLS, the definition of the unemployed is, “Persons aged 16 years and older who had no employment during the reference week, were available for work, except for temporary illness, and had made specific efforts to find employment sometime during the 4-week period ending with the referenced week. Persons waiting to be recalled to a job from which they were laid off need not have been looking for work to be classified as unemployed” (US Department of Labor, 2012). Currently there are 12.2 million unemployed persons in the United States, with little...
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...CHAPTER 4 RISK ASSESSMENT Answers to Review Questions 1. Audit risk is the risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated. Engagement risk is the risk that the auditor is exposed to financial loss or damage to his or her professional reputation from litigation, adverse publicity, or other events arising in connection with financial statements audited and reported on. In simple terms, audit risk is the risk that an auditor will issue an unqualified opinion on materially misstated financial statements, while engagement risk relates to the auditor's exposure to financial loss and damage to his or her professional reputation. 2. Inherent risk and control risk differ from detection risk in that inherent risk and control risk exist independent of the audit; that is, the levels of inherent risk and control risk are functions of the client and its environment. The auditor has little control over these risks. The auditor can control detection risk through the scope (nature, timing, and extent) of the audit procedures performed. Thus, detection risk has an inverse relationship with inherent risk and control risk. 3. Standard setters developed the audit risk model as a planning and evaluation tool. Therefore, the model is only as good as the judgments and assessments used as inputs. Following are some limitations. First, since the auditor assesses inherent risk and control risk, such assessments...
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...it would be. If the market price was higher, a lower price exporter will allow market price to fall and pose a benefit for consumers, in the sense that everyone gains the most with minimal losses in the short run. Four Key Points Emphasized in the Simulation Within the simulation team b has identified four key points that were underlined. First there is what is called dumping. Dumping is the selling of goods and products in other countries at a cost that is lower than the cost of those goods and products in its own country. Another key point identified in the simulation was consumer surplus. Consumer surplus is the variation between what a consumer would be prepared to pay and what they actually pay for each unit of a product. If the demand for a product is high then the consumer may be willing to pay a higher price that is set by the producer the producer. There was also what is referred to as deadweight loss. Deadweight loss is the loss of...
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...4 | INFLATION CAUSES | 4 | * DEMAND PULL INFLATION | 5 | * COST PUSH INFLATION | 5 | * BUILD-IN INFLATION | 5 | * FORMULA | 5 | INFLATION EFFECTS | 6 | * EXPECTED INFLATION | 6 | * UNEXPECTED INFLATION | 6 | HOW TO STOP INFLATION? | 7 | INFLATION IN DIFFERENT COUNTRIES | 8 | * GERMANY | 8 | * FRANCE | 9 | * MEXICO | 10 | * USA | 11 | * GREECE | 12 | CONCLUSION | 13 | REFERENCES | 14 | INTRODUCTION The main objective of this paper is to explain the behavior and the effects of the inflation from the financial crisis in several countries talking about inflation and the causes and effects and later comparing different significant countries. The economic crisis from 2008 to 2011 is known as the world economic crisis that began that year, originates in the United States. Among the main factors causing the crisis would be high raw material prices, the overvaluation of the products, a global food and energy crisis, high world inflation and global threat of a worldwide recession, also a credit, and trust and mortgage crises on the markets. The root cause of all crises according to Austrian business cycle theory is an artificial expansion of credit. The origin of the crisis comes from the strong expansion on the mortgage credit in the United States, in a low interest rate in nominal terms and negative rate in real terms. Mortgage credit expansion required and increase in demand which mean lowering the terms of loans...
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...Journal of Operations & Production Management Does ICT influence supply chain management and performance?: A review of surveybased research Xuan Zhang Dirk Pieter van Donk Taco van der Vaart Article information: To cite this document: Xuan Zhang Dirk Pieter van Donk Taco van der Vaart, (2011),"Does ICT influence supply chain management and performance?", International Journal of Operations & Production Management, Vol. 31 Iss 11 pp. 1215 - 1247 Permanent link to this document: http://dx.doi.org/10.1108/01443571111178501 Downloaded on: 17 March 2015, At: 16:56 (PT) References: this document contains references to 123 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 3145 times since 2011* Downloaded by AFRICA UNIVERSITY At 16:56 17 March 2015 (PT) Users who downloaded this article also downloaded: Pietro Evangelista, Edward Sweeney, (2006),"Technology usage in the supply chain: the case of small 3PLs", The International Journal of Logistics Management, Vol. 17 Iss 1 pp. 55-74 http:// dx.doi.org/10.1108/09574090610663437 Dirk Pieter van Donk, (2008),"Challenges in relating supply chain management and information and communication technology: An introduction", International Journal of Operations & Production Management, Vol. 28 Iss 4 pp. 308-312 http://dx.doi.org/10.1108/01443570810861534 Benita M. Beamon, (1999),"Measuring supply chain performance", International Journal of Operations & Production...
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...of the term ‘derived demand’ as it applies to Strategic Human Resources Planning. (5 marks) Derived demand is defined as a requirement for one product that is created due to the purchase of another product. It occurs for consumers who purchase goods for further production, because their purchases are based on the demand for their final product.[1] For example, when the demand for automobiles is high, the derived demand for steel, and all other products used to make automobiles, is also high. Should the demand for automobiles drop, so will the demand for the products used to make the automobiles. Derived demand applies particularly to strategic human resources planning in relation to labour. Demand and supply of labour interact to determine the wages and affects the allocation of labour resources in ta corporation. It involves anticipating both the need for labor and the labor supply while planning programs necessary to ensure the organization will have the right mix of employees. The demand for labour is derived form the demand for the goods and services that labour is used to produce. Additionally the demand for labour is influenced by the level of economic activity, the productivity of labour and relative cost of labour compared to capital.[2] The demand and supply of labour are influenced by both macroeconomic and microeconomic factors. Macroeconomics refer to conditions in the whole economy affecting the general labour market. Microeconomic factors include specific industry...
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...Factors affecting on stock price 1. Introduction The stock market has become an essential market playing a vital role in economic prosperity that fostering capital formation and sustaining economic growth. Stock markets are more than a place to trade securities; they operate as a facilitator between savers and users of capital by means of pooling of funds, sharing risk, and transferring wealth. Stock markets are essential for economic growth as they insure the flow of resources to the most productive investment opportunities. In essence, a large number of economic variables like gross domestic product, interest rates, current account, monthly supply, employment, their information etc. have an impact on daily stock prices (Kurihara, 2006). This paper reflects how stock price is determined by considering the effect of different factors and outlines whether the internal, external and economic factors have impact on stock pricing. This study is about to know whether Dividends, paid up capital, market capital, corporate social responsibility, lawsuits, Retained Earnings, AGM, EGM, Earning Per Share, Rumors, Margin Loan, Net Income, Face Value, Return on Investment, Goodwill of the firm, Company News, Analysts Report, Sentiment, Rumors, etc. depends on stock price or merely some special factors like stock dividend, P/E ratio, government policy, macroeconomics fundamental, investors sentiment...
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...Introduction Topic – Elasticity of Demand Demand for Cars based on the Fuel Type and the Interest Rates offered by Financial Institutions. Under Professor Pratap Mohanty By Group 4 EPGDIM (2012-14) Nupur Kinger (41) Rachit Luthra (46) Ravi Mohan Dabral (50) Rohit Jaswal (54) Udai (62) Table of Contents Page No. 1. | Executive Summary | 3 | 2. | Objectives | 4 | 3. | Methodology | 5 | 4. | Analysis of Objectives | 8 | 5. | Conclusions and Assumptions | 19 | 6. | References | 20 | Executive Summary OVERVIEW The new car market abounds with choice. A myriad of models, fuel type and financing options available face the new car purchaser; each different vehicle type carefully designed so as to display a combination that differentiates it from the competition. From a consumer’s point of view, of course, the ‘attributes’ of a vehicle include...
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...people’s wants rather than their needs we provide the motive for economic activity. The economic resources that are available to satisfy our wants are limited. These resources are called factors of production which are : Land (Natural Resources) Land refer to natural resources over which people have power of disposal and of which may be used to yield income/money e.g. farming and building land, forests, mineral deposits, air, seas, oceans, vegetation, fisheries. The reward for land is rent. Labour Labour is human effort – physical or mental which is directed to the product of goods and services. Reward for labour is wages/salary. Capital Is money and all man-made assets used in the production of goods and services e.g. money, machinery, factories, delivery vans etc. Reward for capital is interest. Enterprise Land, labour and capital on their own will not produce anything. There must be a person or people who will organise the 3 factors of production so that production can take place. Whoever takes these decisions and consequent risks is known as the entrepreneur. Reward for enterprise is profit. The basic economic problem It is about unlimited wants versus limited resources. Our wants seem to be never ending because if we satisfy one another develops. The resources are limited in supply – scarce. The basic economic problem is of scarcity. Economists try to explain how this basic economic problem is solved by different economic systems....
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...Operational Research 163 (2005) 784–801 www.elsevier.com/locate/dsw Production, Manufacturing and Logistics Factors which influence decision making in new product evaluation q Muammer Ozer * Department of Management, City University of Hong Kong, 83 Tat Chee Avenue, Kowloon, Hong Kong Received 16 October 2001; accepted 7 November 2003 Available online 31 December 2003 Abstract New product development is indeed very important for companies. However, developing new products is a risky and uncertain process. In order to reduce the risks and uncertainties, companies need to evaluate their new product initiatives carefully and make accurate decisions. Although the outcome of a new product evaluation decision can be influenced by the environmental uncertainties that are beyond a companyÕs control, companies can successfully improve the accuracy of their new product evaluation decisions. This article presents an integrated framework for understanding how various factors affect decision making in new product evaluation and provides guidelines for reducing their negative impacts on new product decisions. The results indicate that the quality of new product evaluation decisions is affected by four major sets of factors, namely the nature of the task, the type of individuals who are involved in the decisions, the way the individualsÕ opinions are elicited and the way the opinions are aggregated. Ó 2003 Elsevier B.V. All rights reserved. Keywords: New product evaluation; Research and development;...
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...Directorate-General for Employment, Social Affairs and Equal Opportunities. Its content reflects the opinions of its authors only and does not necessarily represent the official position of the European Commission. Contents 1.0 2.0 2.1 2.1.1 2.1.2 2.1.3 2.1.4 2.2 2.2.1 2.2.2 2.2.3 2.2.4 2.2.5 2.2.6 2.2.7 2.2.8 PAGE INTRODUCTION ...................................................................................... 3 KEY ENERGY MARKET FACTS............................................................. 4 Status and impact of gas market liberalisation .......................................................4 Market structure ...........................................................................................................5 Gas supply and demand ..............................................................................................6 Gas prices ....................................................................................................................7 Investment....................................................................................................................7 Status and impact of electricity market liberalisation.............................................7 Regulator......................................................................................................................8 Market...
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...As in all other advanced Western economies, the Italian industrial sector is declining, decreasing the level of employment in industry and affecting the sector's contribution to the GDP. Industry employed 32.6 percent of the workforce in 1999, while contributing 30.4 percent to the GDP in 2000. However, manufacturing was the key to Italy's post-World War II economic boom and remains important. The steel industry in particular allowed the country to become one of the strongest economies in the world. All branches of the industrial sector grew very quickly, and Italian exports soared. Then, in the second half of the 1980s, the industrial sector went though a crisis, while the service sector expanded. With the onset of the second millennium, the loss of jobs in the industrial sector seems to have stabilized, and although facing tough international competition, Italian companies appear ready for the challenge. HISTORY OF CERAMIC TILES: Rumors have it that the first clay tiles were produced seven to eight thousand years ago in the area now known as the Holy Land. Many sources independently verify that the actual known history of Tiles, (and the known usage of wall and floor tile coverings) can be traced back as far as the fourth millennium BC (4000 BC) to Egypt. In those days, in Egypt, tiles were used to decorate various houses. Clay bricks were dried beneath the sun or baked, and the first glazes were blue in color and were made from copper, very exquisite! During that...
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...Paper accepted for presentation at 2009 IEEE Bucharest Power Tech Conference, June 28th - July 2nd, Bucharest, Romania 1 New participants in SmartGrids and associated challenges in the transition towards the grid of the future P. Favre-Perrod, Member, IEEE, R. Critchley, E. Catz & M. Bazargan electricity networks. Abstract – Different concepts for the long term evolution of electricity networks have been proposed. Visions of large scale, continent-wide interconnections, local scale independent distribution network cells and networks integrating other forms of energy have emerged. The inclusion of new classes of network participants, e.g. prosumers, services providers, transportation applications, regulators and the increase of the number of distributed generators is a common feature of all these frameworks. A series of challenges result from this evolution: the need to coordinate distributed participants, the need to harmonize standards and procedures, as well as the need to overcome a series of obstacles to change. This contribution reviews emerging network concepts and the associated challenges. Series compensation, reconfigurable power electronic systems and wide-scale use of phasor measurement units are early examples for these emerging solutions. Index terms – Power transmission, Power transmission planning II. CONCEPTS FOR FUTURE ELECTRICITY NETWORKS A. Microgrids In a system comprising distributed electricity generation, consumers and producers may be located...
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...A Study of Apparel Supply Chain Risks Srikanta Routroy* and Arjun Shankar** Today, apparel supply chains are becoming more prone to both controllable and uncontrollable risks. This phenomenon may be attributed to many causes but not limited to less vertical integration, fragmentation of supply chain ownership, short product life cycle, ever-changing customer expectations, increasing level of competition, environmental regulations, rapid technology obsolescence, etc. These risks deteriorate directly the apparel supply chain performance in terms of both efficiency and responsiveness. Therefore, the Apparel Supply Chain (ASC) managers should identify and analyze the risks related to their supply chains so that appropriate mitigation strategies can be developed to enhance the supply chain performance. An attempt is made to study the ASC and identify the related risks in general. This will provide a platform to identify the risks for an apparel supply chain in particular. Introduction A Supply Chain (SC) may be defined as a network of organizations that are involved in a set of linkages, either upstream or downstream, in different processes and activities with the primary aim of providing value to the end customer (Chen et al., 2013). In this context, SC Management (SCM) is the management of material, information and funds through this network of organizations, which includes suppliers, manufacturers, wholesalers, distributors, etc., thereby providing the required value to the...
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