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Using supply and demand analysis, explain and illustrate graphically the effect of the following situations. a. Population growth surges rapidly; b. The prices of resources used in the production of good X increases; c. The government is paying a $1 per unit subsidy for each unit of good Y produced; d. The income of consumers of normal good X increases; e. The income of consumers of inferior good Y decreases.

Population growth An increment in population translates into a rise in demand for various products and services. This arises from the fact that various individuals have diverse products and service requirements. To ensure that an increment in demand is met, the supply of goods and services has to be sufficient....

Suppose the price elasticity of demand for train travel is elastic. If the rail authority wishes to raise revenue from fares, should it raise them or lower them? Explain using a diagram.

According to Pindyck, an increase in prices leads to a decrease in demand for the good. If the rail authority wants to raise, there are two considerations since a change in price has two effects. To start with, there is the price effect. According to the price effect, when the...

During a five-year period, the ticket prices of a city professional soccer club have increased by 30% while at the same time average ticket sales have risen by 50%. Does this change imply an upward sloping demand curve or is there a simpler explanation?

According to Frank, the demand law holds that when the price of a good increases, there is a resultant reduction in the demanded quantity of the good in question. An upward sloping demand curve can be derived from two hypothetical goods, inferior goods, and Veblen goods or luxury goods. The...

Identify whether each of the following would lead to an appreciation or depreciation of the dollar. In each case, explain why the currency either appreciates or depreciates. a. Australian citizens switch from buying stock in US companies to buying stock in Australian companies. b. The inflation rate in Australia decreases relative to the inflation rate in the US. c. The federal government takes a more restrictive view of foreign investment takeovers of Australian enterprises; d. There is an expectation that the central bank in Australia will raise interest rates.

a. More stock bought in Australian companies than US companies makes the value of a dollar appreciate since funds remain within the nation. b. A decrease in the inflation rate in Australia means that more goods in Australia will be demanded as compared to the US. If the dollar can...

Using the AD-AS model show how the Australian economy avoided recession last year when 8 of its trading partners fell into recession due to the GFC. What are the macroeconomic dangers, facing the Federal Treasurer Mr Swan as he prepares this year’s federal budget?

Australian government managed to avoid recession due to its strong export industry. Its debt and deficits are low compared with other nations in the same rank and order. Australian economic recovery program has made it possible for maximum exploitation of skilled manpower. Infrastructural networks (buildings and roads) and efficient use...

Why under flexible exchange rates does a nation not have too worry too much about a balance of payments deficit? What other specific advantages do flexible exchange rates give to the operation of economic policy?

When a country operates under flexible exchange rates, it means that the force of demand and supply takes back the economy to its equilibrium states. An example is where the value of a currency is low due to its minimum demand. The effect of this is that the price of...

Assuming that the money market is initially in equilibrium, trace through the effects of an expansion in the money supply on the money market, on the interest rate and also on output, employment and the price level. Under what circumstances would the central bank undertake this type of policy?

If the money supply in an economy increases, interest rates decrease while demand increases. The increase in demand leads to a subsequent rise in output. Since there is more money chasing the same goods, prices will automatically rise. This monetary policy is undertaken when the economic activity is below its...

State the difference: between inflation and deflation; between the expenditure multiplier and the money multiplier; between the balance of payments deficit and the budget deficit; between the terms of trade and the exchange rate.

Inflation and deflation A general increase in prices gives rise to inflation, while a fall in price amounts to deflation in an economy. With deflation, expenditure cannot equate to income at the present price level, paving the way for depression. Expenditure and money multipliers In a study by Sullivan, ‘expenditure...

How does Keynes’ theory of income determination differ from that of the classical economists? Why did Keynes think that the market system could break down?

Keynes propounded that the market responds to changes in the market situation automatically so as to reach the equilibrium level. In a study by Markwell, ‘some of the theories used by Keynes to justify their view include the labor market, the multiplier effect, and Keynes inflation theory.’ Keynes supports a...

Consider a macroeconomy was initially at equilibrium level of real GDP. Using an aggregate demand and aggregate supply diagram or model of the economy, graphically illustrate and discuss the immediate effects of the following events upon the economy: a. The Central Bank within the economy raises interest rates and tightens credit. b. There is a marked drop in consumer and business confidence in consumption spending. c. An increase in international oil prices. d. An appreciation in the foreign exchange rate value of the economy’s currency.

Effects of the following adjustments on the equilibrium of a macroeconomy: The graph below clearly shows that demand will decrease if the interest rates and credit facilities by financial institutions tighten. A higher rate of interest acts as a disincentive for people to borrow money from banks. This reduces money...

Draw two diagrams, one depicting the Timbuk2 supply chain for those products sourced in China and the other depicting the bags produced in San Francisco. Show all the major steps, including raw material, manufacturing, finished goods, distribution inventory, and transportation. Other than manufacturing cost, what other costs should Timbuk2 consider when making the sourcing decision?

Apart from manufacturing costs considerations for its assembly plant in China, Timbuk2 should also consider transportation costs for the raw materials into China and finished products to customers, overhead costs, warehousing costs for its raw materials and finished products awaiting onward shipment to customers, and the costs of labor in...

Compare the Timbuk2 assembly line in China to that in San Francisco along the following dimensions; a. volume or rate of production, b. required skill of the workers, c. level of automation, and d. amount of raw materials and finished goods inventory.

The volume or rate of production is used in operations management to denote the number of units produced in a given period of time or the duration of time needed to produce a particular item. The volume of production is dependent on a wide range of factors that include global...

Consider the two categories of products that Timbuk2 makes and sells. For the custom messenger bag, what are the key competitive dimensions that are driving sales? Are their competitive priorities different for the new laptop bags sources in China?

An organization that desires to excel in the competitive business environment of the 21st century must come up with a sound strategy. In equal measure, such an organization must align its operations strategy with the needs and requirements of its customers to maintain a competitive advantage over its competitors. Simply...

Identify whether each of the following would lead to an appreciation or depreciation of the Australian dollar. In each case, explain why the currency either appreciates or depreciates. a. Australian citizens switch from buying stock in US companies to buying stock in Australian companies. b. The inflation rate in Australia increases relative to the inflation rate in the US. c. The federal government takes a more restrictive view of foreign investment takeovers of Australian enterprises. d. There is an expectation that the central bank in Australia will raise interest rates.

a. A switch in the Australian citizens from buying stock in US companies to buying stock in Australian companies will lead to an appreciation of their currency. By purchasing stock in Australian companies, the citizens are improving the performance of the whole economy through increased production and expanded investments, hence...

What are the two types of trade protection that economists do support?

The two types of trade protection supported by the majority of economists are tariffs and import quotas. A tariff is a form of tax levied on imports or exports by the local government. This tax is not applicable to goods produced locally and is usually determined as a percentage of...

Using the AD-AS model show how the Australian economy avoided recession last year when 8 of its trading partners fell into recession due to the GFC. What economic policies were used?

For them to avoid the economic recession that was brought about by the global financial crisis, the Australian government came up with a reaction policy aimed at stimulating the aggregate demand mainly by increasing the levels of expenditure on investment and consumption. This led to an increase in the level...

Why under flexible exchange rates does a nation not have too worry too much about a balance of payments deficit? What other specific advantages do flexible exchange rates give to the operation of economic policy?

Flexible exchange rates are self-regulating hence enabling an economy to adjust to the impacts of foreign business cycles and shocks. This eliminates the possibility of developing the balance of payment deficit. Other advantages of the flexible exchange rates in the operation of the economic policy include “the ease of managing...

Assuming that the money market is initially in equilibrium, trace through the effects of a contraction in the money supply on the money market, on the interest rate and also on output, employment and the price level. Under what circumstances would the central bank undertake this type of policy?

The effects of a contraction in the money supply on the money market, on the interest rate and on output, employment, and the price level is shown in the figure below. Sm in the figure above is the money supply level as determined by the central bank. Dm, on the...

State the difference: between unemployment rate and the participation rate; between the expenditure multiplier and the money multiplier; between the balance of payments deficit and the budget deficit; between the terms of trade and the exchange rate.

Unemployment rate and the participation rate One of the major differences between the unemployment rate and participation rate is in their relation to age. Research shows that the unemployment rate is higher among the young people who have recently qualified to join the labor market. The unemployment rate among men...

Using the simple Keynesian model and the savings and investment diagram show the full meaning of the paradox of thrift? What would happen to equilibrium income if there is a sustained rise in private investment spending? What causes the rise in income or output to come to a stop?

When people become more inclined to save, their level of consumption goes down in all the income levels. This will lead to a reduction in the equilibrium level of income, as shown below. The paradox thrift implies that a great willingness to save may actually lead to fewer savings. From...

What were the key differences between Keynes’s theory of income determination and that of the classical economists? Why did Keynes think that the market system could break down?

Keynes’s theory of income determination is different from the classical theory in that Keynes believed that the economy’s equilibrium is independent of employment level. Keynes further argued that the negotiations in income between the employers and the employees are usually based on the nominal income rather than real income. This...

Consider a macroeconomy was initially at equilibrium level of real GDP. Using an aggregate demand and aggregate supply diagram or model of the economy, graphically illustrate and discuss the immediate effects of the following events upon the economy: a. The federal government increases pensions and welfare spending. b. There is a marked drop in consumer and business confidence within the economy. c. A mineral export boom. d. An appreciation in the foreign exchange rate value of the economy’s currency.

a. When the federal government increases the pensions and welfare spending, the aggregate demand function will shift to the right, as shown by AD1 hence increasing the price levels to P1.b. When the consumers and investors lack confidence in the economy, this leads to reduced consumption and investment hence a...

What is the most important part of the planning process?

Planning refers to the process of fulfilling a given task, goal, or objective. Various organizations always come up with different models of planning depending on their objectives. The process of planning is very vital. This is because it is what determines the success or failure of a given business or...

What are the advantages of privatization?

Basically, privatization is selling government properties to private owners; this reduces or finishes the control of government to the affairs of the company or organization privatized. There are different advantages of privatization which include; There is improved efficiency as the organization competes freely in the market The organization lacks political...

Name some socioeconomic forces.

Socioeconomic forces are factors that affect the operation of the economy. They are factors that arise due to different human beings’ actions which in turn affect their lives. These factors include; population increase economic policies health policies social welfare systems household income income distribution infant mortality rate education level living...

What are the three types of intangible assets?

There are three types of intangible assets in terms of impairment and amortizations. The first type comprises intangible assets that are amortized, and the method of amortization involves a two-step impairment method same as that used for tangible assets. Intangible assets that have indefinite lives are not amortized and are...

How is the depreciation charge calculated?

The depreciation charge is calculated on the estimated useful economic life of the assets at the time of acquisition. If there is a change in the estimated economic life during a period when the asset is under use by the businesses, then there is a need to amend the depreciation...

How do the terms depreciation, depletion, and amortization differ?

All three terms, including depreciation, depletion, and amortization, are used to refer to the process of allocation of costs of assets over their useful economic life. However, the types of assets that they are used to refer to are different. The term depreciation is used to refer to the process...

What do we need to consider when we try to select a test?

There are different types of research, and the choice of proper tools and tests can be listed among the key components of success. Taking into account that the reliability of study results strictly depends on methodological decisions, significance tests can never be selected without preliminary research. In order to choose...

a. What makes the likely head of the sources higher? b. Why do we need to know stages of cycle? c. Similarity/ difference in product/business/service? d. Critical success factor? e. What is importance of understanding which stage your business at/in ? f. Importance od exist strategy? Ways to exist? g. Why success company shutdown?

a. Slack resources get higher when additional personnel and tools are added to business operations in order to make owners’ lives easier. They are beneficial for rechanneling available resources into different aspects of business when needed. b. Knowing the stages of a product cycle is necessary for understanding relevant processes...

a. Factors to consider in selecting location? b. What value can intermediaries add and how? c. Pros/cons of direct marketing distribution? d. Compare between the process of the choices utilizing intermediary or during everything by your own.

a. When selecting a location for a company, several aspects should be considered. Businesses should identify the extent of their contact with customers because such issues as traffic, parking, and convenience will influence clients’ decisions in terms of visiting a location of a high customer contact company or not. On...

a. What is the importance of the executive summary? b. What are the steps of starting a business? c. How to pitch present your business idea? d. Compare a business plan and strategic plan? e. Analysis risks factors of and in a business?

a. An executive summary is an essential component of any business plan because it is the element that almost everyone interested in the project will read when receiving a complete business plan. Because of this, executive summaries need to be brief, concise and include the most vital and enticing information...

a. Technologies shape society. In what ways can we see this in terms of public budgeting? b. How do the American ideologies significantly shape the public budgeting process? c. Explain the federal context of American budgeting and the significance of that context on managing public programs. d. Discuss the general relations between the various branches of government in the budgeting process. e. Discuss how the general characteristics of the legislatures and factors affecting the legislative decision-making process place constraints on the legislature.

a. Technologies affect people’s life significantly, but many individuals fail to understand that they are used even in terms of budgeting. For instance, they affect the allocation of funds due to the aid to calculation. They allow analyzing information and coordinating human resources and equipment needed to reach desired goals....

If you were assigned to prepare a capital expenditure budget request, what two people would you most want to have on your team? Why? How would you expect to use them?

When preparing a capital budget, I would want to work with people who have experience in financing and a holistic picture of the hospital’s operations and needs. The knowledge of such professionals is essential to calculate costs and revenues flawlessly and to align the project benefits with the major hospital...

Have you ever been involved in helping to create any part of a capital expenditure budget? Do you recall whether any of the four cash flow reporting methods were used? If so, which one? Do you now think that was the best choice for the particular proposal?

The department likely utilized the net present value (NPV) method for cash flow reporting. It is valid to say that NPV is advantageous for distinct types of projects since it allows predicting costs and profitability, while also taking into account the time value of money. However, it may be difficult...

Have you ever been involved in helping to create any part of a capital expenditure budget? If so, which type of proposal was it? Was the proposal successful?

The types of proposals submitted by my department to the hospital manager often fall under the following categories: acquisition of new equipment and funding of new programs. The latter ones may frequently be devoted to either staff training or improvement of services targeted as specific patient groups. As validly noted...

Have you ever been involved in helping to create any part of a capital expenditure budget?

I never was involved in the creation of a capital expenditure budget personally. However, the process of capital expenditure budget development in my organization involves the submission of various project proposals by different departments and their consequent evaluation by the management. In accordance with the selection method described by Baker,...

Do some research on Mac sales vs Windows PC sales over the last few years. What numbers and trends did you see?

Over the past few decades, personal computers have significantly broken away from Mac computers in terms of sales. When Microsoft introduced Windows 95, personal computer sales increased significantly, and sales discrepancies between the two platforms became even more apparent. According to analysts, the peak was 2004, when PC sales surpassed...

Prepare two financial ratios for each stock, using the 2016&2017 financial statements of Arch Capital Group and Microsoft Corporation, to include: liquidity ratios, asset management ratios, and profitability ratios. You should have a total of six ratios for each stock per year. What challenges, strengths, or weaknesses do you see?

By analyzing Arch Capital Group’s “As reported financials” and Microsoft Corporation’s “Annual report 2018,” an analyst can calculate the following ratios: – Arch Capital Group Microsoft Corporation Current Liquidity Ratio 2017 1.47 2.92 Quick Ratio 2017 1.25 2.80 Total Asset Turnover Ratio 2017 2.37 0.39 Net Working Capital Turnover Ratio...

Identify one stock from each of the two major stock exchanges in the United States. Using the two stocks you identified, determine the free cash flow from 2013 & 2014. What inference can you draw from the companies’ free cash flow?

I have chosen to investigate the Arch Capital Group, which is represented on NYSE, and the Microsoft Corporation, which has stocks trading on NASDAQ. Unfortunately, the NYSE’s electronic tools do not provide sufficient means for the analysis of a firm’s free cash flow. As such, I have had to rely...

In your own words, please identify two different stock exchanges in the United States. Describe the similarities and differences between the two stock exchanges. Identify one stock from each of the two stock exchanges.

Most stock exchanges in the United States currently belong to one of two entities: Intercontinental Exchange, which owns the New York Stock Exchange, and the NASDAQ Foundation, with its eponymous structure. The NYSE is the world’s largest stock exchange, and NASDAQ is second on the list. Both are similar in...

List and describe four of the challenges involved with international networks.

The four challenges involved with international networks are service quality, security, costs, and regulatory constraints. Firstly, regarding the service quality, one should note that aspects such as speed and reliability of network access provided by public organisations are questionable. Hence, organisations should be cautious of the regional differences that limit...

You work for a business consulting firm, and you have been asked to advise a home furniture retailer on implementing a global information system. What general benefits can the retailer expect from a globalized system?

A home furniture retailer can benefit from a global information system because such technology will help enhance the operations and align the information sharing processes with the strategy of the firm. The general benefits include improved management and coordination. In essence, the Internet use allows global branches of the retailer...

List at least four general cultural factors and four specific business factors driving global business. Which two factors (one of each) do you feel are most problematic at the current moment? Why?

The general cultural factors that drive the global business are the state of the global communication technology, the emergence of global culture, social norms and political stability, and knowledge base. In addition, one should consider the four business-specific factors that affect the global environment, which are the state of global...

Describe at least two benefits of using enterprise systems.

An enterprise system is a software that allows companies to manage their operations across different departments using a single program as opposed to having a separate program for each department. This software benefits from the specifics of the database systems and similarly to the latter, allows multiple users to manage...

Why has the Internet made competitive rivalry more intense?

The Internet and its widespread application have changed many industries, most notably commerce since it allowed customers and sellers to interact more easily using websites. Most notably, it affected the rivalry between companies because nowadays, customers can gather information about brands and receive offers from organisations worldwide. This is especially...

Describe the use of personalization and customization in e-commerce. What business value do these techniques have?

In the domain of e-commerce, the notions of customisation and personalisation are two distinct entities that refer to different approaches for customer interaction. Davis states that personalisation targets the user experience with the aim to improve it based on previous activity and increase the likelihood of subsequent website visits and...

What three lessons did you learn about conducting business in an Asian country?

After analyzing the features of Asian culture, one can note that the mission of the group is more important than the mission of an individual employee. The pursuit of goals is one of the most important professional qualities, and the role of personal profit is minimized. It is also essential...

What three lessons did you learn about conducting business in an Asian country?

When conducting business in an Asian country, it is essential to take into account its unique culture and social organization. For instance, one cannot start open conflicts with competitors since this contradicts the code of ethics and serves as an indicator of poor upbringing. It is also important to take...

What product pricing method do you support to be used in the construction industry and why?

For contracting companies, I would recommend using a competition-based approach. A contracting company’s stability depends on its ability to find new contracts. Therefore, if a company realizes what services, and at what prices are on the market, it will be able to position itself appropriately. By utilizing a flexible pricing...

Explain the main common product pricing methods, their advantages and disadvantages.

There are three basic pricing strategies, including cost-based pricing, value-based pricing, and competition-based practice. The primary benefit of a cost-based pricing strategy is simple calculations involved in determining the final price per unit. Additionally, the method ensures the profits for the business since the minimum price is the marginal cost....

The effect of joint product cost on the control and decision-making process in terms of pricing based on further production costs.

Further production costs may help to determine a price. Considering the example in Table 1, if the price per unit is unknown, it can be easily calculated. Incremental Revenue ($4*3,500) $14,000 Incremental Cost $10,000 Incremental Profit $4,000 Table 1. Incremental Analysis 3,500x = $10,000 (incremental cost)x=$2.86where x – incremental cost...

The effect of joint product cost on the control and decision making in terms of output decisions.

Joint product cost implies significant complications for output decisions and controls. When considering joint product costs, it becomes unclear how a decision affects total cost and profit if an entrepreneur decides to increase or decrease the output. Therefore, Riahi-Belkaoui offers methods for making output decisions depending on the proportion of...

Uber is currently going through some rough times within the UAE. Explain why Uber is losing money and provide recommendations on what the company can do going forward.

Uber may seem like an attractive business to invest in as its business model is simple, understandable, and beneficial for both riders and passengers. However, the reality is that since the company does not generate enough profit, investors are less eager to believe in its future. Uber has been on...

What are some of the key concerns with the Uber business model?

Uber’s business model seemed like a simple and innovative strategy to make money by just creating an app to match demand and proposition in the car-driving sphere, and making money out of commissions. However, the model has its drawbacks, and “denying its drivers the basic protections afforded to legal employees”...

How does Uber capture value in exchange for the service they provide? What do you think could be Uber’s ultimate goal in terms of scaling their profits from the Uber App?

Admired by entrepreneurs and innovators, Uber has become one of the most remarkable platform businesses. In essence, it is a ride-sharing service that is based on a mobile app “to match passengers and drivers,” and it provides unprecedented competition in the taxi industry. However, one may ask how Uber can...

How does the Business of Sports impact players’ careers (outside their sports activities)?

The business of sports plays an important role in the advancement of players’ careers, especially outside their sports activities. The sports business is a multibillion industry and the colossal amounts of revenues generated function both directly and indirectly to further a player’s career. According to Elberse and Golod, in 2003,...

What can be the potential risks if the family business owners think that the HubSpot services are too costly to buy and the so-called “hypercompetition” is a fad?

The potential risks would be losing customers to brands that have built stronger online followership. Local businesses can no longer rely on word-of-mouth and traditional marketing media. It would only be rational to enter the competition having the same weapons as the other contenders, i.e., web pages and social media...

What is the difference between strategic planning and tactical planning?

Strategic planning is a core element of any organization’s development. It defines the vision, missions, goals, and values of a company, and it reflects the organization’s initiatives and strategies to “move in its desired direction.” Tactical planning is the practical realization of a developed strategic plan through budgets, detailed project...

What role should government play in social responsibility? Do you think the government should create more regulations to encourage companies to uphold their responsibilities to their stakeholders? Or government shouldn’t intervene and allow companies to choose if they want to be socially responsible or not? Why do you think this way?

Today, governments play various roles in the social responsibility of businesses in different countries, some being highly regulative and others letting most of the decision-making being made by companies themselves. This suggests that their aims depend on “the needs and structure of predominant sectors in the economy, as well as...

Identify three local Saudi companies that are socially responsible towards the environment? And how? (What do they do?)

Although Saudi Arabia is not among the top environment-activist countries, it has shown a shift in perceiving environmental challenges in recent years. For example, the state-owned oil company Saudi Aramco “has taken the lead in contributing to environmental protection through project environmental assessments, air and water quality standards, and occupational...

Define business ethics. What are the advantages of business ethics? Give two examples of ethical dilemmas in business.

Nowadays, entrepreneurs have to pay growing attention to the economic dimension of their enterprises and social, environmental, and ethical aspects. Business ethics (or corporate ethics) is a set of moral principles of a company determining its functions. It refers to organizational values, standards, and norms governing how individuals in the...

Find global or domestic operating system market share information, that shows the market share of Windows 7, 8, and 10. Using that information, answer this question: How successful is Windows 7 compared with other versions of Windows?

Microsoft is constantly trying to reach the maximum potential user audience to make it for everyone and everyone. Obviously, at the same time, it will not work for everyone. There will always be those dissatisfied with this or that. However, the company is doing everything so that both an experienced...

What are the goals of Airborne? Would you recommend any change to their goals?

The UPS strike made Airborne’s executives review the situation and think about the future of the company. The primary goal of the company was to develop a suitable strategy to avoid losing the market share to its rivals, which were starting to offer similar services. Dissecting the goals into more...

Analyze the scope of Airborne’s strategy. Assess if any changes are needed.

Airborne primarily targeted business customers that had regular large-volume delivery orders. Such a strategy allowed Airborne to concentrate on corporate clients and use the spared resources to deliver tailored services. An instance of a unique service is 8 AM deliveries for Xerox, which Airborne started offering in 1988. Other customers,...

Analyze Airborne’s competitive advantage.

Airborne was created when two specialist airfreight carriers merged in 1968. They had already had experience in large-volume deliveries, so they decided to continue this tradition. While Federal Express and UPS were attractive to individual consumers and customers with seasonal deliveries, Airborne offered significant value to those who needed to...

What do you recommend with respect to the key issues facing Airborne?

Make more substantial investments in international services.Increase the number of customers by offering new services even if it means penetrating someone else’s customer base.Strengthen the RPS partnership to compete with UPS and Federal Express directly.Switch to a distance-based pricing strategy. Give discounts for short-distance shipments and have higher prices for...

What are the key issues facing Airborne?

Federal Express and UPS, the key market players in the same industry as Airborne, had been looking for ways to increase their marginal revenues. As part of the developments, they were coming up with new services and pricing strategies. For instance, both UPS and Federal Express switched to distance-based pricing...

Analyze the role of mechanization and communication in the American System.

Henry Clay believed that implementing the American system, developing economic relations between states, expanding transport communications, and promoting mechanization could help strengthen the country. These initiatives were natural for the transition to a new market system with the value of domestic resources and opportunities. According to Kaminski, “transportation, infrastructure, and...

Why do you think governments regulate retailing practices?

It is essential for a government to regulate the retail sector because it has a significant impact on the overall economy of a country. The aim of any government representative in the economic sphere is to protect and ensure the growth perspectives for local businesses. In a search for benefits...

What are some possible competitive advantages of local retailers? Are those advantages transferable to other Asian countries?

Similar to foreign businesses, local entities have some potential advantages from the presence of retail giants in Asia. Locally based companies might benefit from the entrance of international companies by becoming their partners or suppliers. In such a manner, they might obtain reliable long-term cooperation that is capable of increasing...

What competitive advantages do foreign retailers such as Wal-Mart and Carrefour enjoy when they enter Asian markets?

Such foreign retailers as Carrefour and Wal-Mart obtain several advantages when entering the Asian market. Firstly, in most cases, local governments welcome such entities to their economies to stimulate the development of their home retail industries. For example, as Gillespie and Hennessey state, China has “credited Wal-Mart with revitalizing the...

Why do you think hypermarkets are more common in some countries than in others?

The case on the entrance of Wal-Mart and Carrefour into the Asian retailing market shows some tendencies in the role of foreign vendors in the economies of a country. To answer the question concerning the reason why hypermarkets are more prevalent in some countries more than in others, I think...

What advice would you give Coca-Cola concerning its handling of government relations?

It is obvious that Coca-Cola tries to conduct its business uniformly across all countries, operating as though it is in amicable relations with all governments. As the recent events have shown, that is not the case – in fact, many governments are apprehensive of Coca-Cola’s approach and apparent disregard for...

What are the government motivations behind Coca-Cola’s problems concerning the new soda tax in Mexico and China’s reaction to the company’s use of GPS?

The governments of Mexico and China have different reasons for reacting towards Coca-Cola’s practices in their countries. Mexico has been notorious for its obesity problems, with over 36% of all adult population is either obese or overweight. It is a significant national healthcare risk that causes billions of dollars in...

How did the market do in August 2019? Mention at least two events that may explain why the market return makes sense. Did any of your stocks have higher returns than the market index?

The market experienced considerable growth, with an average HPR being 0.17%, buy and hold the value of $37.91, and absolute volatility of 34.58. NVidia, Electronics Arts, and Delta Airlines had a higher HPR than the market index. There are different opinions about what influences the fluctuation of the prices. CNN...

Pick ten stocks. The stocks must all be part of the S&P 500 index. Make sure the stocks have at least five years of pricing data. How did your ten stocks perform in the last month (August 2019)? Calculate both the average daily returns and the buy and hold return. How volatile were each of your ten stocks?

The selected stocks are well-known companies that are parts of the S&P 500 for more than five years. These companies are Amazon Inc. (AMZN), Facebook (FB), Ebay Inc. (EBAY), General Motors (GM), Electronic Arts (EA), Hasbro Inc. (HAS), Delta Airlines (DAL), Macy’s (M), Ford Motor Company (F), NVidia Corporation (NVDA)....

Why has eBay performed so well? Perform a seven C’s analysis of eBay.

eBay has performed well due to its successful strategy of involving consumers in its operations. They also performed well due to cutting advertisement costs and personalizing advertisements, which aided in expanding their market. Through a program that allowed for customer’s giving their feedback and being rewarded for feedback, the organization...

Why is it bad for a company to carry too much debt?

It’s very dangerous for a company to operate on too much debt because debts can easily lead to the death of a company. In case of a challenge in repaying the debts, the company goes under receivership or is taken over by the creditors. Secondly, debt capital is normally very...