...Indian Institute Of Management Lucknow August 2013 A MICROECONOMIC STUDY ON GOLD Submitted to Professor Sanjay K Singh By Section E, Group J Aman Doharey (PGP30244) Mahesh Raja R (ABM11045) Prerna Pal (PGP30265) Rohit Mandappalli (PGP29341) Shradhha MeryllinePanna (PGP30280) Swagata Das Chowdhury (PGP30419) Tanuj Kumar Lodhi (PGP30420) Table of Contents Introduction Background Protection Requirement Elasticity Of Gold Gold Consumption Scenario in India Need and Objective Of Study Research Methodology Tools and Techniques Hypotheses Data Analysis 1. US Dollar 2. Crude Oil 3. Silver 4. Inflation 5. Sensex Values Findings and Conclusions INTRODUCTION This report emphasizes on studying, interpreting and illustrating the various economic factors affecting the consumption and price of the precious metal Gold. We examine the impact of factors that maybe reason for such distortion and also see how the change in gold price impacts other commodities in the open market. Background Used as a sovereign since ages, gold has always been a sought after commodity. The price variation has almost always been upwards and has had a steep rise in this trend. A few pointers about Gold can be inferred as below. Production Gold is majorly obtained through mining, other sources may include recycling, trading etc. Through these sources gold enters the market. Requirement Gold is an essential commodity in any country’s economic...
Words: 3203 - Pages: 13
... | |2 |C | |3 |C | |4 |C | |5 |B | B. English writing test Topic Selected: Scenario 1 Please provide your response below this line. You may extend your writing in the following page(s) where necessary. Mr. John Smith Korean Company 123 Street Seoul city Korea Dear Mr. Smith I appreciate the opportunity to advise you regarding this tax matter. To ensure a complete understanding between us, I am starting the pertinent information about the advice that I will be rendering and the facts I have researched. Responsibilities I use my judgment in considering the potential and value of Vietnamese retail & distribution market. Unless you instruct me otherwise, I resolve such questions in your favor whenever possible. However, I cannot guarantee the outcome in the event of force majeure such as war, political crisis. Facts The following facts are based on my research on the Vietnamese macroeconomics and microeconomics as well as the available forms of legal entity under Vietnamese regulations. To specify, on the Vietnamese macroeconomics aspects: Population : 90,000,000 ( 90 million in 2013, source: generation family planning office for population of Vietnam ) , Vietnam is holding " gold retail...
Words: 1060 - Pages: 5
...BUEC 563 – Energy Industries and Markets: Syllabus Instructor: Richard Dixon Email: rjdixon@ualberta.ca Phone: (780) 248-1650 ------------------------------------------------- Prerequisite: BUEC 502 – Managerial Microeconomics (or equivalent) COURSE OBJECTIVES While part of the Natural Resources, Energy and Environment specialization this introductory course is an overview to the resource and energy industries and markets. Students gain a basic understanding of the evolving nature and structure of energy industries and markets, including market, technological, environmental and other strategic issues. Second, there is a strong emphasis on students' proficiency levels in verbal and written business communication. Of particular interest is the ability to do and convey critical analysis and thinking in a variety of business formats (e.g. briefing note, strategic scenarios, business case, oral presentation, etc.). LEARNING GOALS Critical Thinking Students will be exposed to current issues and ideas concerning energy and its development in the 21st Century and this will help to develop their ability to analyze problems, situations and issues in a clear-minded, rigorous intellectual manner. At the end of the course the student will have more tools to critically think about current energy issues. Energy Fundamentals Students will enhance and develop a better understanding and awareness of the energy sector and its fundamentals from an economics, management and business...
Words: 2945 - Pages: 12
...MANAGERIAL ECONOMICS ASSIGNMENT Table of Contents Assignment Question no: 1 3 Assignment Question no: 2 5 Assignment Question no: 3 7 Assignment Question no: 4 9 Assignment Question no: 5 11 Assignment Question no: 6 13 Assignment Question no: 7 16 Assignment Question no: 8 19 Reference 22 Assignment Question no: 1 a) Explain the concept behind the production possibilities frontier. The production possibilities frontier (PPF) or "production possibilities curve” shows a combination of two goods and services that can be produced with the full available factors of production and technology (Arnold, 2010). The production possibility curve is represented in the below diagram. Figure-1 Production Possibility Frontier * In the above diagram which indicates that at the production at point X the output of Product A is A2 and output of Product B is B2. * If suppose the product B is increased from B2 to B1 the product A will decrease. * In the production possibilities frontier W indicates that the resources are not fully utilized efficiently. * In the production possibilities frontier Z indicates that the additional resources are required to product at a point beyond or outside the curve. b) c) Analyze what it means for the PPF to be bowed out from the origin (curved), and what it means for the PPF to be a straight line According to Riley (2012) Production Possibility Frontier is in a straight line as the opportunity...
Words: 3551 - Pages: 15
...Economics-I Trends in the Market for Silver Submitted by: Chhavi Singhal I.D. No. 2131 I Year B.A. LL.B. (Hons) Submitted on: 7th August, 2014 Table of Contents INTRODUCTION 3 Chapter 1 – THE SILVER MARKET: GLOBAL DEMAND AND SUPPLY 4 A) GLOBAL DEMAND FOR SILVER 4 B) GLOBAL SUPPLY FOR SILVER 8 Chapter 2 – Indian silver market on the globe 10 Chapter 3: PRICE TRENDS 12 2005-2009: An overview 14 2010-11: The Highs 15 2012-13: The Lows 16 The Future 17 Conclusion 18 Bibliography 19 Books 19 Articles 19 Websites 19 INTRODUCTION Silver is one of the most versatile metals available. In historical times it was used as a currency. Used as both an industrial metal and a hard asset, it plays double duty in the commodities market. It has also become an investment vehicle which provides a safe haven from the unpredictable stocks and bonds. Trading it and predicting its price is a careful balancing act between what consumers need and what the currency market demands. The objective of the paper is to study the demand and supply mechanism for the silver market. Due to the dynamic nature of the market, the demand and supply forces keep changing due to various reasons; the author has tried to find the same. The author has further tried to study the implications of the demand and supply on the price trends. The research and analysis primarily gives a broad description of the current trends in the market for silver. The paper examines only the...
Words: 4147 - Pages: 17
...Test Bank to Accompany Microeconomics Seventh Edition by Pindyck / Rubinfeld Pearson Education © 2009 8/12/2008 Contents Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Preliminaries ........................................................................................................................1 The Basics of Supply and Demand..................................................................................16 Consumer Behavior...........................................................................................................55 Individual and Market Demand...................................................................................125 Uncertainty and Consumer Behavior ...........................................................................179 Production ........................................................................................................................236 The Cost of Production ...................................................................................................273 Profit Maximization and Competitive Supply ............................................................327 The Analysis of Competitive Markets ..........................................................................375 Chapter 10 Market Power: Monopoly and Monopsony.................................................................438 Chapter 11 Pricing with Market Power .....
Words: 48589 - Pages: 195
...STRATEGIC ANALYSIS OF AIRASIA THE BEST LOW-COST CARRIER AIRLINES IN THE WORLD ASSIGNMENT FOR MICROECONOMICS FACULTY OF ECONOMICS AND BUSINESS NATIONAL UNIVERSITY OF MALAYSIA BY: IWAN BUDHIARTA P-46048 MALAYSIA – 2009 I. INTRODUCTION A low-cost carrier (also known as a no-frills or discount carrier) is an airline that offers low fares but eliminates all “non-essential” services. The typical low-cost carrier business model is based on: * a single passenger class * a single type of airplane (reducing training and servicing costs) * a simple fare scheme (typically fares increase as the plane fills up, which rewards early reservations) * free seating (which encourages passengers to board early) * direct, point to point flights with no transfers * flying to cheaper, less congested secondary airports * short flights and fast turnaround times (allowing maximum utilization of planes) * "Free" in-flight catering and other "complimentary" services are eliminated, and replaced by optional paid-for in-flight food and drink. Simple Product A typical low cost airline product is extremely basic. It focuses on getting passengers from point A to B, cutting out all the “extras”. This means there are no meals, drinks or snacks served free on board. In certain airlines, these may be purchased on request. The aircraft have Narrow seating to permit greater capacity. Low cost airlines offer all-economy flights, with no additional space requirements...
Words: 7295 - Pages: 30
...3.1 Financing the Plan with Macroeconomic Balance Given the grim looking macroeconomic scenario which is further marred by global slowdown, it seems unlikely for India to be able to cut down its fiscal deficit by a whopping 2.2 % as being forecasted. Moreover high inflation, even higher interest rates makes the need for lowering the fiscal deficit even more difficult one to achieve. Measures taken to curb inflation have not borne fruits till now, and some policy implementation is required in this direction. The target figure of fiscal deficit is 4.6 % during 2011-12. It is further targeted to reach 4.1% and 3.5% in FY13 and FY14 respectively. These estimates are majorly based upon two factors * An optimistic growth in tax Revenues * A substantial decline in the subsidy expenditure. We would analyze the feasibility of the aforementioned assumptions and would argue the difficulties that lie ahead in the realization of the two factors. GOI has assumed a growth in tax collections of 18% with a real economic growth of 9%, which seems highly optimistic given the poor implementation of tax reforms and seemingly unstable global macroeconomic environment. Budget at a Glance Rs. Bn | 2009-2010 A | 2010-2011 BE | 2010-2011 RE | 2011-2012 BE | 1. Revenue Receipts | 5,728 | 6,822 | 7,838 | 7,899 | 2. Tax Revenue (net to Centre) | 4,565 | 5,341 | 5,637 | 6,645 | 3. Non-tax Revenue | 1,163 | 1,481 | 2,201 | 1,254 | 4. Capital Receipts $ | 4,517 | 4,265 |...
Words: 7857 - Pages: 32
...Chapter 1—The Role and Method of Economics MULTIPLE CHOICE 1. What is economics most concerned with? a.|how to reduce inflation| b.|how to profit from trading in the stock market| c.|studying how we allocate scarce resources to satisfy unlimited wants| d.|government taxation and spending| ANS: C PTS: 1 DIF: Easy REF: p. 1 BLM: Knowledge 2. What is the central concern of economics? a.|how to regulate the supply of money| b.|how to reduce the wants of individuals, businesses, and government| c.|how to find more resources to satisfy everyone's wants| d.|how to make the best use of scarce resources to satisfy our unlimited wants| ANS: D PTS: 1 DIF: Easy REF: p. 1 BLM: Knowledge 3. Why is there scarcity? a.|because average costs may exceed average benefits| b.|because human wants are limited| c.|because theory dictates it| d.|because our unlimited wants exceed our limited resources| ANS: D PTS: 1 DIF: Easy REF: p. 1 BLM: Knowledge 4. Why does the problem of scarcity exist? a.|because resources are limited relative to wants| b.|because governments fail to intervene in the market place| c.|because resources are unlimited relative to wants| d.|because the world has many poor people| ANS: A PTS: 1 DIF: Easy REF: p. 1 BLM: Knowledge 5. What does scarcity result from? a.|government decision making| b.|positive economics| c.|wants that exceed the resources necessary to provide them| d.|inappropriate normative judgments| ...
Words: 19348 - Pages: 78
...commodity markets has always been there among policymakers in developing nations like India, it has become more widespread since 2008 in the wake of worldwide inflationary pressures on food and energy. The sudden deflation in the value of various assets underlying different derivatives, which includes commodity derivatives, in the wake of the global meltdown has provoked greater apprehension about the economic utility of futures markets. The suspicion has reached such a high that even the U.S., the biggest proponent of market forces with the most active commodity exchanges in the world, is considering new modes of regulation, and is also investigating the role of commodity derivative trading in the steep rise in prices of wheat, rice, and crude oil. On the other hand, ever since commodity derivative trading was allowed in India in the new millennium, there has always been a hue and cry against such markets, with the alleged notion of excessive “speculation”, though there has rarely been any evidence for it. Rather than recognizing the potential economic utility of commodity derivative markets in price discovery and risk management, the government has been more apprehensive about its alleged ill-effects. As a result, over time, futures trading has been subjected to strict regulations, and certain commodities have been inflicted with occasional bans. Thus, while the “disutility” of the market is yet...
Words: 6878 - Pages: 28
...in the commercial, public, and social sectors with the facts and insights on which to base management and policy decisions. MGI research combines the disciplines of economics and management, employing the analytical tools of economics with the insights of business leaders. Our “micro-to-macro” methodology examines microeconomic industry trends to better understand the broad macroeconomic forces affecting business strategy and public policy. MGI’s in-depth reports have covered more than 20 countries and 30 industries. Current research focuses on four themes: productivity and growth, the evolution of global financial markets, the economic impact of technology and innovation, and urbanization. Recent reports have assessed job creation, resource productivity, cities of the future, and the impact of the Internet. MGI is led by McKinsey & Company directors Richard Dobbs and James Manyika. Yougang Chen, Michael Chui, Susan Lund, and Jaana Remes serve as MGI principals. Project teams are led by a group of senior fellows and include consultants from McKinsey’s offices around the world. These teams draw on McKinsey’s global network of partners and industry and management experts. In addition, leading economists, including Nobel laureates, act as research advisers. The partners of McKinsey & Company fund MGI’s research; it is not commissioned by any business, government, or other institution. For further information about MGI and to download reports, please visit...
Words: 10687 - Pages: 43
...DETERMINANTS OF TRADE BALANCE OF BANGLADESH by Mohammad Habib Hossain A project submitted in partial fulfillment of the requirements for the degree of Professional Master in Banking and Finance Examination Committee: Dr. Donyaprueth Krairit (Chairperson) Dr. Sundar Venkatesh Dr. W.A. Wijewardena Nationality: Previous Degree: Bangladeshi Bachelor of Business Administration Khulna University Khulna, Bangladesh Scholarship Donor: Bangladesh Bank Asian Institute of Technology School of Management Thailand February 2015 Acknowledgement I would like to express my gratitude to my advisor Dr. Sundar Venkatesh, who supported and guided me throughout my research with much patience and empathy. I am thankful to the Asian Institute of Technology for arranging a professional master’s program for the working executives. I am much obliged to Bangladesh Bank (Central Bank of Bangladesh) for granting me the scholarship for the entire period of my study. I am also thankful to my colleagues and classmates at PMBF, AIT, especially to Mr. Obaydullah Al Masud and Mr. Golam Rabby Masud, for their support, interest and valuable comments. ii ABSTRACT The balance of trade or net exports is rather an interesting issue because of its perplexing relationship and impacts on economies. Bangladesh is a rapidly growing market-based economy in the South Asian region. It has a long history of sustaining a negative trade balance, importing more goods...
Words: 8001 - Pages: 33
...1. Introduction/overview 1.1 Scope of the plan • Nature of the product/company • Timeframe of the plan • Geographies/markets/segments covered by the plan • Any limitations to resources or key assumptions on which the plan is based 1.2 Objectives • What are the objectives you hope to reach by actioning this plan (remember: these need to be S.M.A.R.T.) • How do these objectives support overall corporate strategy and objectives 2. Background 2.1 History, company/product profile 2.2 Environment • Macro • Micro 2.3 The Market (remember to clearly identify the market/markets in terms of the job the customers are trying to get done, rather than in terms of industry/product); include: Competitors Existing segments 2.4 Main strategic issues • Detailed SWOT MA 3.Objectives 3.1 Statement of Objectives Note how these objectives support broader corporate objectives (e.g.: profit growth/maintenance, diversification of geography/product, rationalisation/consolidation, risk minimisation, etc). Include: • starting Canvas and future/intended Canvas • description of current positioning and future/intended positioning (on the Pine and Gilmore map) • current and future "brand pantheon" (if applicable) 4. Strategic Initiatives 4.1 Strategic overview Description of the market, segments and targeted segments (including why these segments have been chosen), i.e who/what is the focus of the strategic initiatives and why 4.2 Key strategic...
Words: 4974 - Pages: 20
...ATPC African Trade Policy Centre Work in Progress No. 77 ATPC Economic Commission for Africa The Impact of Chinese Investment and Trade on Nigeria Economic Growth 2009 Djeri-wake Nabine Abstract This paper examines the impact of Chinese foreign direct investment and bilateral trade with Nigeria economic growth. The study use an augmented aggregate production function (APF) growth model, three methods are performed to test the hypothesis that there is no causal relationship between foreign direct investment, exports, imports and economic growth. The statistical methods used are: the Ordinary Least Squares Method (OLS) and the Granger causality test. Using time-series and panel data from 1990 to 2007, The estimated both short and long-run analysis for Nigeria-China relationship shows that in short term the bilateral trade doesn’t contribute to Nigeria economic growth but the long term relationship can enhance Nigeria economic growth; it should then be the policy priority for Nigeria to make sure that FDI inflows from China and its trade relationship with China exert the reinforcing and beneficial effects on GDP and exports through active acquisition of advanced technology and open trade regime. A - CEA EC E ATPC is a project of the Economic Commission for Africa with financial support of the Canadian International Development Agency (CIDA) Material from this publication may be freely quoted or reprinted. Acknowledgement is requested...
Words: 9274 - Pages: 38
...“ Investigate the extent of competition in the natural gas industry in the European Union. Assess the impact of EU and national regulations on the prices of natural gas across the EU”. Abstract: European natural gas market currently has a decline of indigenous resources that is, at the same time, combined with the growing dependence of gas supplies coming from a few foreign exporters. As a result of this, new EU regulations and polices are proposed. This paper will analyze the past gas reforms and will try to assess the impact of those regulations on prices for natural gas and also investigate the competition of the EU natural gas market. The empirical analysis will focus on reform indicators such as vertical integration and market structure of the natural gas market, in order to show how these indicators are related to prices. By Kirill Osaulenko Content 1.0 Introduction ……………………………………………………..3 2.0 Literature Review ……………………………………………….3 2.1 The Structure Of the Gas Market in Europe ………………...3 2.2 How competitive is the natural gas market in Europe ……....4 2.3 Liberalization process across Europe………………………..5 2.4 Existing Empirical Evidence in the Academic Literature …..7 2.5 Summary of the review……………………………………...9 3.0 Competition in the EU gas Market …………………………….10 3.1 Wholesale Market ………………………………………….11 3.2 Production Market …………………………………………12 ...
Words: 9150 - Pages: 37
