...Running the British Economy (RBE) Evaluation Report of the RBE Real Run that took place on October 14th, 2011 Year 5 Description of the current situation at Year 5 The situation of the economy at year 5, time at which we have undertaken the task to assume the running of the British Economy is best described below: - The economy’s potential output (Q) was at the level of £450bln with the Actual National Output (Y) reaching the level of £447bln, comprising of Consumer Expenditure (C) of £264bln, Investment Expenditure (I) of £92bln and Government expenditure (G) of £89bln. The Exports level (X) was at £126bln while the Import’s level (Z) at £125bln. Considering that the level of X increases the actual national output and the level of Z decreases it, them having a marginal difference amongst them (known as the Balance of Trade), had in this instance a minor effect on Y by £1bln. - The Budgetary condition of the economy at year 5 involved a surplus of £3bln suggesting that the Governments inflows from Taxes [T= (TAX Rate * Y) + (VAT Rate * (C+I))] exceeded the Government’s outflows including the Government expenditure, TransU and TransW (transfers to Unemployment and Welfare respectively). - The real Rates of Interest (Real R), i.e. measuring the price of money and determined by the demand and supply of money were at 6.4% while ForR (Foreign Interest Rates) were at 5%. - Unemployment (U) stood at 6.5% while the natural rate of unemployment (WGR) was 6%. - Inflation (INF)...
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...physical or mental harm to victim directly or indirectly using modern telecommunication networks such as internet (chat rooms, emails, notice boards and groups) and mobile phones (SMS/MMS)”. In 1960s cyber crime involved sabotage and physical destruction of computers to cover up altered data, however in the modern day, cybercrime the computer is used as a tool. In Africa Nigeria is the most fraudulent country on cybercrime and the third in the word. In the United States of America alone cyber crime costs the economy losses worth $100billion dollars. If we are to roll out a similar survey then we could be talking of losses that run into trillions of dollars. These are losses that are incurred by businesses from all sectors: starting from the banking industry, manufacturing industry, the ICT sector transport and nearly all sectors both government and non government run organizations. Running head: The Economic Impact of Cybercrime 3 The internet and computer networks can be looked at as a double edged sword that present a set of lucrative business opportunities for the young and the old alike, and an array of problems whose solutions have overwhelmed...
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...Abstract Few years ago, many manufacturers thought that the entry of China into the world of economy would change the rules, with an effective and infinite reserve army of labor, China would be able to grow and grow without ever running out of workers and so having to upgrade and pay higher wages. This thought is gradually changing as China is facing shortage of laborers making the number of Chinese working-age adults scarce. This will have an economic impact since labor shortage would mean rising wages and then rising prices of goods manufactured in China. Company owners must take into high consideration how they can retain their laborers, which is a vital input in their production function. International Application: Is China Running Out of Workers? The most populous nation on earth will soon have a labor shortage. “It is a serious situation if you are a manufacturer because now, you have got to compete on wages” (Anderson, 2004, para. 2). The available number of rural workers seeking factory work is decreasing and younger and more educated Chinese workers are now pursuing white-collar jobs. The number of young people entering the workforce is smaller than the number of retiring employees. The working age population has plateaued in size and will begin getting smaller sometime in the next five years, according to demographers and recently released census data. What will be the implication of the labor shortage? As workers grow scarce, wages are going up; sharply rising...
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...Running head: UNANTICIPATED OR UNEXPECTED 1 Unanticipated or Unexpected Price Level Changes Shafonia Johnson Grantham University Running head: UNANTICIPATED OR UNEXPECTED 2 Unanticipated or Unexpected Price Level Changes The three reasons a lower price level leads to an increase of goods and services are an increase in the purchasing power of money, reduction in the demand for money and lower real interest rate and the making domestic produced goods less expensive (Gwartney, Stroup, Sobel & Macpherson,, 2013, p. 177). With an unexpected 3 percent fall in the price level in the goods and services market consumers’ money will increase in purchase power. Consumers will have the opportunity to purchase more and be wealthier. This is with the assumption that “the supply of money is fixed” (Gwartney, et al, 2013, p. 177). Therefore, this power will enable the purchase of more goods and services. The lower price level reduces the demand for money and lowers interest rates. Allowing consumers and businesses to have a smaller amount of money in the bank and still have everything they need. In retrospect businesses will need less money to sustain employee wages, pay taxes and any other business needs. This lower price level gives better opportunity to obtain...
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...Running Head: FISCAL POLICY Fiscal Policy Paper ECO/372 September 1, 2012 The team has learned that deficits, debts, and surpluses are accounting measures. There are many things to consider as important whether a budget is in surplus or deficit. The true importance is the health of the economy. The state of the economy needs to consider when to make a decision about whether deficits or surpluses are beneficial for the United States. Taxpayers have implemented how their money is in use when paying off deficits and how surpluses are in use to give back to the country. Debates of how taxpayers should use their money extremely important on how it affects deficits, debts, and surpluses. One debate is about how concerned an individual should be about deficits involves the future of the Social Security System and Medicare users. Unemployed individuals depend on these types of benefits and the number of users affects the accounting measures. To discuss the United States deficit, here are some examples of opinion from a University of Phoenix student. In addition, part of our discussion will illustrate the United States financial reputation on an international level. This will include an example of importer and exporter. Our team will give an example of an (importer) an Italian clothing company and for an (exporter) a domestic automotive manufacturing. Understanding accounting measures involves the health of the economy, which can be...
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...Fallon Barker MGT / 350 December 22, 2012 Decisions in Paradise Part 1 Karen Allen Development of business processes in new locations can often be time consuming; this is due to the need for defining and identifying any short term or long term issues that may arise in the course of starting up the business and keeping it running. A thorough evaluation of the local economy, location, population, cultures, language, and threat assessments is paramount to ensuring that a business is successful, while bringing a welcome addition to the local economy and culture. Kava is located in the South Pacific; this location is excellent for agriculture and tourism. The issues any businesses expecting to develop and become successful have to identify on Kava are natural disasters, such as tsunami, floods, typhoons, and volcano eruptions. Others are terrorism and health issues such as HIV and avian flu. These issues are all factors when developing mission goals, human resources, building permanent structures and developing a business plan for the new operation. Along with natural and man-made disasters the understanding of local customs and cultures and positive interaction with the government are also of importance. Any decisions made entails taking into account all of the above issues. Natural disasters affect the importing and exporting of goods that a business manufactures or buys to build or make their products. These disasters also affect timelines due to work stoppage, the...
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...involved in a market economy, the government influences four main areas in the economy which are; enforcing antitrust laws, preserving property rights, providing a stable fiscal and monetary environment and preserving political stability. Also the report will cover why there can never be a truly ‘free market’ economy, where there is absolutely no government intervention. Market Economy In a market economy, the majority of a nation’s land, factories, and other economic resources are privately owned, either by individuals or businesses (Wild, Wild & Han 2010:151). It is also an economy in which prices of goods and services are freely set based on the laws of supply and demand which are unfettered by interference from a government or other outside bodies. A market economy at its basic is an economy run entirely by the market itself (McGuigan 2003:1). In contrast to a market economy is one which follows the Keynesian principals which is an economic theory which advocates government intervention, or demand side management of economy by increasing money supply or by actually buying things on the market itself, they believe that this will achieve full employment and stable prices (Web finance 2010:1). Market economy has come to be accepted as a norm across the world with many developing countries like India and China moving towards a full market oriented economy (economy watch 2010:1). The social democratic government of Australia adopted the principals of market economy after the financial...
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...The Effects of Running a Surplus or Deficit Budget | ECO 372 | The current state of America’s fiscal policy is of major concern for the majority of the populace with the constantly increase of health care, gas, home interest rates, and staggering unemployment number, some are wondering if this nation will survive. Even many fiscal experts are forecasting that The United States is on road to fiscal disaster which seems to confirm the fears of the nation. Compounding the problems is an elderly populace and increasing deficit problem, a growing segment of government spending apportioned to interest expenditures and entitlements for the upcoming years resulting in plunging government's prolific investments and pushing out private shares. The deliberation of this paper is centered on how and why the U.S.’s deficit, surplus, and debt influences on the taxpayers, impending social security and Medicare users, the unemployed, University of Phoenix students, America’s financial reputation on a global scale, national (export) automotive manufacturer, Import of Italian clothing company, and gross domestic product (GDP). The near term objectives of the paper to convey information as complete glaze of US fiscal policy and how the current fiscal policy influences the nation. American taxpayers play a major role in the economy; this is why there is so much commotion about the millions of immigrants who do not pay taxes. The role of a taxpayer and the role of the economy go hand in hand...
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...funds for working capital will increase overall sales. Expanding the business translates into increased production and bigger foot print in the market. At the end the company will be able to take advantage of economics-of-scale, which will improve its bottom line. Ajax has a good product - The sensors are fine, however company's focus should be geared towards defibrillators. Reasons: 1) the plant has excess capacity (40%) and can reach economies-of-scale, while improving on its gross profit margins from 25%; 2) defibrillators are easier and faster to manufacture compared to sensors: 8 –10 weeks vs. approx. 3 months for sensors; 3) Ajax must take advantage of the void that is left by PhysioControl. Ajax Electronics is a manufacturing company owned and operated by Mr. Bob Roberts. The company manufactures industrial grade sensors, and defibrillators used by hospitals and emergency vehicles. The company's sales have been growing steadily. However, because of a tight working capital, the manufacturing plant has only been running at 60% capacity. Mr. Roberts is looking to change his banking relationship from Webster Bank to SaveMe Bank. This case analysis will discuss why SaveMe Bank should seriously consider taking Mr. Roberts as a client, followed by business recommendations. CASE TO LEND MONEY Ajax is a slow payer, but pays eventually per references - If the company is provided with enough working capital, then more likely than not to pay on-time. Improved...
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...Running head: ASSIGNMENT 2: FACTORS AFFECTING MARKETING STRATEGY Assignment 2: Factors Affecting Marketing Strategy BUS 510 – Consumer Behavior February 23, 2014 Running head: ASSIGNMENT 2: FACTORS AFFECTING MARKETING STRATEGY Factors Affecting Marketing Strategy While at a local women’s retail store, came across an interesting leather necklace that caught my attention. As I moved closer to view the item, I was sure the accessory belonged to one of the popular designers and was quite expensive. Once I reached the shelf were the item was display; I saw the designer name “Heaven’s Creations”; an unknown product designer. The necklace was quite a show stopper, extraordinary looking and not to mention affordable. The off-brand’ designer’s line is unique because the pieces are all “one of a kind”--no replicas However, I was informed that the designer does design commission jewelry. I most say that if all future accessory ornaments of the unknown designer’s are as exquisite and show stopping as this leather necklace, the designer will not be off-brand for long. Jewelry, Apparel and Accessories products fall into the category of high involvement/emotions. These are products for which the buyer is prepared to spend considerable time and effort in searching. When marketing this jewelry line, I am going mimic existing campaigns as jewelry is a billion-dollar industry employing millions of people around the world, and costume jewelry has a large piece of this pie...
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...the inflation. Inflation is a sustained increase in price levels of an economy. As mentioned in the article, the Central Bank predicted that they could ease the current account deficit to $8.4 billion in the third quarter, from $10 billion in the second quarter by raising the interest rate. Raising the interest rate is a deflationary monetary policy that is aimed to reduce the Aggregate Demand in the economy. This can be depicted through figure 1.0. The Central Bank raised the interest rate to correct the current account deficit. With higher interest rates, consumers are encouraged to save money instead of spending money, thus the Aggregate Demand would decrease. This also means that the consumption of imports would significantly drop to some extent, which helps to correct the current account deficit. The decision made by the Central Bank to run an expenditure-reducing policy by raising the interest rate of Indonesia has its advantageous and disadvantages. Recently in June the government cut its subsidies on fuel, which caused a hike in inflation rate. Raising interest rate would lead to a lower inflation rate would lead to greater competitiveness of export products because the average price level would be relatively less expensive. With more exports revenue, this would help to correct the current account deficit. The advantage of this is that domestic exporting firms are able to grow in their economies of scale in this period when exports are more attractive. For example...
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...Inflation, Types, Causes, Impacts and Remedies Inflation In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the Consumer Price Index) over time. Types of Inflation 1. Moderate inflation It is a mild and tolerable form of inflation. It occurs when prices are rising slowly When the rate of inflation is less than 10 per cent annually, or it is a single digit int1ation rate, it is considered to be a moderate inflation in the present the economy. 2. Galloping Inflation When the movement of price accelerates rapidly, running inflation emerges. Running inflation may record more than 100 per cent rise in prices over a decade. Thus, when prices rise by more than 10 per cent a year, running inflation occurs. Economists have not described the range of running inflation. But, we may say that a double digit inflation of 10-20 per cent per annum is a running inflation. If it exceeds that figure, it may be called ‘galloping’ inflation. 3. Hyperinflation In the case of hyperinflation, prices rise every movement, and...
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...Global Marketing Assignment Individual Q1 Assess the market opportunities and threats for the sport-shoe manufacturer, Asics which is planning to enter the ASEAN market? Ascis today is the forefront business and world wide performance in sports market industry and its currently the leading the running shoe brand athletes. The choice for providing comfort,support, and supirior rides. Ascis has made further developments in its products for both men and women.It has also reached the core of sports industry and sponsership like football and rubgy. Ascis has been in the asian market for many years markets mostly in Japan and well recognised in American continent,In some asian countries like Indonesia,Thailand, Singapore and Malaysia it is well knwon and still developling its brand name in some coutires. Ascis has not only focused on Sports wear but also concentrate on Apperals and expanded its sports shoe products from Running shoes to walking shoes, and football shoes. It is known in Singapore and Thailand the market share of ascis is low but still one of the leading brands. This paper mainly focuses on Ascis and Asean countries development and growth and how it impacts the buiness by entering their market. But this paper mainly focuses on major countries like Singapore and Thailandas they are the emerging market and high business prospects PEST analysis is used for understanding the growth or decline of the market this paper focus on PEST analysis of Singapore,and...
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...The Running Man and The Handmaid’s Tale offer perspective on dystopian societies. The Running Man, by Stephen King, is set in 2025 where society crumbles economically and TV networks now run society. They show sadistic game shows that are popular with the masses. The most popular is The Running Man, a show where a contestant is hunted by Hunters and the entire population for the grand prize of a billion dollars. The Handmaid’s Tale explores a dystopian society through the eyes of a woman who has to adapt to her new way of life. Both these novels have universal praise. Their innovation, thematic concepts, and perspective will be analyzed thoroughly. Observing both their protagonists and societies they live in. Both authors explored the themes of their respective novels mostly differently. The Handmaid’s Tale sees resistance against their oppressive society more internally than externally. Offred constantly battles internal...
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...of evidence Huawei spying for China ET SPECIAL: Checkout Luxury Home Trends By Paul Krugman All economic data are best viewed as a peculiarly boring genre of science fiction, but Chinese data are even more fictional than most. Add a secretive government, a controlled press and the sheer size of the country, and it's harder to figure out what's really happening in China than it is in any other major economy. Yet the signs are now unmistakable: China is in big trouble. We're not talking about some minor setback along the way, but something more fundamental. The country's whole way of doing business, the economic system that has driven three decades of incredible growth, has reached its limits. You could say that the Chinese model is about to hit its Great Wall, and the only question now is just how bad the crash will be. Start with the data, unreliable as they may be. What immediately jumps out at you when you compare China with almost any other economy, aside from its rapid growth, is the lopsided balance between consumption and investment. All successful economies devote part of their current income to investment rather than consumption, so as to expand their future ability to consume. China, however, seems to invest only to expand its future ability to invest even more. America, admittedly on the high side, devotes 70 percent of its gross domestic product to consumption; for China, the number is only half that high, while almost half of GDP is invested. How is that...
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