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Eco Q. Create a list of the legal, cultural, financial, and economic factors that Auto Edge needs to consider about the location of our manufacturing operations. Most
Posted On: Nov. 23, 2017
Author: Shipra


Eco Q. Create a list of the legal, cultural, financial, and economic factors that Auto Edge needs to consider about the location of our manufacturing operations. Most members of the board aren't familiar with this aspect of the business, so we want you to briefly describe the factors you list, rank the factors, and explain your reasoning. Ans: Auto Edge is the service center which is owned by the family for an American cars, trucks and vans. The company takes up various services of the vehicles such as suspension, alignment, brakes, tune ups, routine maintenance. Location of the plant gets affected by various factors which are as follows: • LEGAL • CULTURAL • FINANCIAL • ECONOMIC These factors are further discussed below: • LEGAL FACTORS: These factors are those which a manufacturing plant should consider before setting up. These are needed by the plant necessarily because these only assure proper functioning of the plant in that area. Government intervene is the necessity of the plant. Any plant cannot survive without the support of the government. The parts we manufacture in our plant must be environmental friendly. They have to clear all the safety measures before selling it to the respective customers. Government subsidies and grants help the plant to flourish in the market and to earn more and more profits. Legal factors include policies regarding the entry and exit of foreign direct investors. They also implement policies regarding tax incentives which help the company to spread their network further. Our telecommunication facilities and transport facilities are better than our competitors. This point provides us with good income. The location of the plant should be free from all the restrictions. We have to choose that place which does not have trade barriers. Our industry can achieve a good position in the market if it provides a maximum satisfaction to its customers. • CULTURAL FACTORS: Cultural factors are those factors which are formed from the values, beliefs, laws and languages of a society. An automobile company has to keep following things in mind such as the lifestyle and preferences of the people. The lifestyle of our customer will definitely affect the growth rate of the company. If people have higher status and they believe in living luxurious life then for that they buy good quality cars which ultimately rise in the earnings of automobile service center. As customer is the king of the market so we have to make products according to their needs. It is better to do business in the area where the people of our community live because they belong to our culture and we knew their taste and preferences. • FINANCIAL FACTORS: Financial factor includes all those factors which affect the plant financially. It includes all the costs from the purchasing of raw material to the delivery of the product. We should establish the manufacturing plant at the place which is near to the market so that raw materials can be easily purchased at lower costs. All these costs affect the production cost of the products and then we can easily low down the selling costs of our products. • ECONOMIC FACTORS: These factors can be defined as those factors which affects the business or an investments’ value. The economic factors which affect the growth of the manufacturing unit are interest rates, disposable income, unemployment rates, and retail price index. These factors help the plant in setting up their project at a particular place. While setting up the plant, one should see the buying capacity of the people living in the surroundings so that demand of the product can be calculated. Automobile industry is the major users of steel, iron, copper, lead etc., so it affects the economy very much. (The factors affecting the automotive industry marketing. Retrieved from http://www.ukessays.com/essays/marketing/the-factors-affecting-the-automotive-industry-marketing-essay.php#ixzz3jf4ZS9vT) All the above factors affect the location of the automobile industry. These factors should be studied carefully before setting up of the plant. In the automobile industry, some factors weigh more than the others. According to me the most important of the entire factor is financial factor as well as economical factor because this helps the company to produce products at lower cost and thus raising the demand of the product which ultimately leads to good profits.



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Q. What must Auto Edge do to obtain economies of scale with production? How do we know that it has achieved economies of scale? Conversely, how do we know if it is achieving diseconomies of scale?
Posted On: Nov. 23, 2017
Author: Shipra


Q. What must Auto Edge do to obtain economies of scale with production? How do we know that it has achieved economies of scale? Conversely, how do we know if it is achieving diseconomies of scale? Ans: Economies of Scale: It can be achieved when goods are produced at a large scale to lower the costs of production and then goods can also be sold to the customers at reasonable rates. Economies of scale can be achieved in anything such as cost of raw material, cost of labour, costs of production. In simple words, economies of scale can be defined as the situation when cost of production decreases when volume of output increases. Economies of scale arise because of the inverse relationship between the quantity produced and per unit fixed cost i.e., the greater the quantity of a good produced, the lower the per unit fixed cost because these costs are shared over a large no. of goods. (n.d. 2015). It gives big companies the access to a larger market by providing them greater geographical area to operate. When market share increases, profits of the companies also increases. Economies of scale are beneficial for Auto Edge because it produce auto parts for the automobiles. The manufacturing unit of the Auto Edge is producing products at higher costs. If it uses economies of scale to purchase raw material, then it can cut down its production costs and customer will get the products at a reasonable rate and in this way unit can also maximize its profits. To achieve economies of scale at Auto Edge, we have to produce goods at a large scale. For more production, we need raw material and other inputs such as labor and capital in bulk. When we produce goods in large quantity, it ultimately decreases the production cost and thus increases profits of the business. An economy of scale is beneficial for both customers as well as producers. Economies of scale are beneficial for us in following ways: • It decreases transportation cost as transportation cost would decrease the price for bigger orders. • Work will become more efficient. If we want to check whether Auto Edge has achieved economies of scale or not, then it has to calculate its cost and profits and find out whether situation is of profit or not. • Find out the cost of production and also see the cost of raw materials and other inputs and check out where the cost is more. Then find out all the possible ways to reduce the costs where it is more. Diseconomies of scale: this is the opposite situation of the firm where it produces more goods at higher costs. Check out the company’s average cost, if it is rising in the long run then it has diseconomies of scale. When per unit cost of production increases, the company is having diseconomies of scale. It must be stopped to protect company from losses. (n.d. 2015). In simple words, there arises a situation after a certain point where increase in quantity of goods increases the cost of production. It may takes place due to inefficient managerial or labor policies, over-hiring or deteriorating networks. When a company increases its geographical area, then it has to be more careful about average costs otherwise these costs will increase and thus diseconomies of scale arise. Conclusion: It is better for Auto Edge to apply economies of scale as it will help in reducing the costs of production. Then center can easily capture the more market area, which ultimately leads to increase in demand. This demand increases production and now center has to produce goods at a large scale. REFERENCES • Economies of Scale: definition, benefits and examples. (2015). Retrieved from http://study.com/academy/lesson/economies-of-scale-definition-benefits-examples.html on 27th August • Production: Diseconomies of scale. (2015).Retrieved from http://www.tutor2u.net/business/gcse/production_diseconomies_of_scale.htm on 27th August



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2 2) When the firm produces its profit-maximizing level of output, what are its marginal cost and average total cost? Marginal Cost Average Total Cost
Posted On: Nov. 22, 2017
Author: Shipra


2 2) When the firm produces its profit-maximizing level of output, what are its marginal cost and average total cost? Marginal Cost Average Total Cost a) P3 P3 b) P3 P2 c) P2 P2 d) P1 P4 e) P1 P2 3) If the government regulates a natural monopolist to produce the allocatively efficient level of output, it will require the monopolist to set a price that is A) equal to its marginal cost and grant a subsidy to cover the loss B) equal to its average total cost and levy a tax on the excess profit C) greater than its marginal cost and levy a tax on the excess profit D) greater than its marginal cost but that minimizes the deadweight loss B) greater than its average total cost but that minimizes the deadweight loss 4) For a natural monopoly in which economies of scale are taking place at all output levels, which of the following is true? A) It would need a subsidy, if regulated to follow marginal cost pricing. B) It should be taxed, if regulated to follow average cost pricing C) It would maximize total revenue rather than profits. D) It would produce the allocatively efficient output level, to maximize profit. B) Its marginal cost exceeds its average total cost at all output levels.



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The well-developed, smoothly operating financial markets like in the U.S., play an important role in contributing to the health and efficiency of an economy. There is a
Posted On: Nov. 22, 2017
Author: Shipra


The well-developed, smoothly operating financial markets like in the U.S., play an important role in contributing to the health and efficiency of an economy. There is a strong positive relationship between financial market development and economic growth. Financial markets help to efficiently direct the flow of savings and investment in the economy in ways that facilitate the accumulation of capital and the production of goods and services. The combination of well-developed financial markets and institutions, as well as a diverse array of financial products and instruments, suits the needs of borrowers and lenders and therefore the overall economy. What are financial markets and institutions? Financial markets (such as those that trade stocks or bonds), instruments (from bank CDs to futures and derivatives), and institutions (from banks to insurance companies to mutual funds and pension funds) provide opportunities for investors to specialize in particular markets or services, diversify risks, or both. As noted by Demirgüç-Kunt and Levine, together financial markets and financial institutions contribute to economic growth; the relative mix of the two does not appear to be an important factor in growth. Large financial markets with lots of trading activity provide more liquidity for market participants than thinner markets with few available securities and participants and thus limited trading opportunities. The U.S. financial system is generally considered to be the most well developed in the world. Daily transactions in the financial markets—both the money (short term, a year or less) and capital (over a year) markets—are huge. Many financial assets are liquid; some may have secondary markets to facilitate the transfer of existing financial assets at a low cost. Table I provides a list of several well-known U.S. financial markets, ranked by outstanding assets or liabilities as of 2004. The Federal Reserve sets monetary policy by influencing the Federal funds rate, which is the rate of interbank lending of excess reserves. The rate that banks charge each other for these loans is determined in the interbank market The monthly changes in the currency component of the U.S. money supply show currency being added into (% change greater than zero) and removed from circulation (% change less than zero). The most noticeable changes occur around the Christmas holiday shopping season as new currency is created so people can make withdrawals at banks, and then removed from circulation afterwards, when less cash is demanded. One way to lessen the likelihood and the effect of bank runs is to have a money supply that can expand when money is needed. The use of the term "elastic currency" in the Federal Reserve Act does not imply only the ability to expand the money supply, but also the ability to contract the money supply. Some economic theories have been developed that support the idea of expanding or shrinking a money supply as economic conditions warrant. Elastic currency is defined by the Federal Reserve as: Currency that can, by the actions of the central monetary authority, expand or contract in amount warranted by economic conditions. Monetary policy of the Federal Reserve System is based partially on the theory that it is best overall to expand or contract the money supply as economic conditions change. Effects of monetary and price inflation includes: • Price inflation makes workers worse off if their incomes don't rise as rapidly as prices. • Pensioners living on a fixed income are worse off if their savings do not increase more rapidly than prices. • Lenders lose because they will be repaid with dollars that aren't worth as much. • Savers lose because the dollar they save today will not buy as much when they are ready to spend it. • Debtors win because the dollar they borrow today will be repaid with dollars that aren't worth as much. • Businesses and people will find it harder to plan and therefore may decrease investment in future projects. • Owners of financial assets suffer. • Interest rate-sensitive industries, like mortgage companies, suffer as monetary inflation drives up long-term interest rates and Federal Reserve tightening raises short-term rates. • Developed-market currencies become weaker against emerging markets. The Board of Governors in the Federal Reserve System has a number of supervisory and regulatory responsibilities in the U.S. banking system, but not complete responsibility. The Board also plays a major role in the supervision and regulation of the U.S. banking system. It has supervisory responsibilities for state-chartered banks that are members of the Federal Reserve System, bank holding companies (companies that control banks), the foreign activities of member banks, the U.S. activities of foreign banks,. They frequently testify before congressional committees on the economy, monetary policy, banking supervision and regulation, consumer credit protection, financial markets, and other matters. There are three main tools of monetary policy that the Federal Reserve uses to influence the amount of reserves in private banks: Tool Description Open market operations Purchases and sales of U.S. Treasury and federal agency securities – the Federal Reserve's principal tool for implementing monetary policy. The Federal Reserve's objective for open market operations has varied over the years. During the 1980s, the focus gradually shifted toward attaining a specified level of the federal funds rate (the rate that banks charge each other for overnight loans of federal funds, which are the reserves held by banks at the Fed), a process that was largely complete by the end of the decade.[96] Discount rate The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility – the discount window.[97] Reserve requirements The amount of funds that a depository institution must hold in reserve against specified deposit liabilities.[98] The bursting of the United States housing bubble prompted the Fed to buy mortgage-backed securities for the first time in November 2008. Over six weeks, a total of $1.25 trillion were purchased in order stabilize the housing market, about one-fifth of all U.S. government-backed mortgages. There are two types of inflation that are closely tied to each other. Monetary inflation is an increase in the money supply. Price inflation is a sustained increase in the general level of prices, which is equivalent to a decline in the value or purchasing power of money. If the supply of money and credit increases too rapidly over many months (monetary inflation), the result will usually be price inflation. Price inflation does not always increase in direct proportion to monetary inflation; it is also affected by the velocity of money and other factors. With price inflation, a dollar buys less and less over time. Adherents of the Austrian School of economic theory blame the economic crisis in the late 2000s on the Federal Reserve's policy, particularly under the leadership of Alan Greenspan, of credit expansion through historically low interest rates starting in 2001, which they claim enabled the United States housing bubble. Most mainstream economists favor a low, steady rate of inflation. Low (as opposed to zero or negative) inflation may reduce the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reduce the risk that a liquidity trap prevents monetary policy from stabilizing the economy.The task of keeping the rate of inflation low and stable is usually given to monetary authorities. Large financial markets with lots of trading activity provide more liquidity for market participants than thinner markets with few available securities and participants and thus limited trading opportunities. The U.S. financial system is generally considered to be the most well developed in the world. Daily transactions in the financial markets—both the money (short term, a year or less) and capital (over a year) markets—are huge. Many financial assets are liquid; some may have secondary markets to facilitate the transfer of existing financial assets at a low cost. Table I provides a list of several well-known U.S. financial markets, ranked by outstanding assets or liabilities as of 2004. The In June 1998, the U.S. stepped into the foreign currency market, using billions of U.S. dollars to buy Japanese yen in an attempt to stabilize its value. Mexico faced a currency crisis in 1994. Argentina faced such a crisis in 2002. The reason we should care about currency values of other nations? When people in one country demand products from firms in another country, they must enter into another market first, to buy that nation’s currency. In the same way that supply and demand for products shift to change the prices of those products, the constant shifts in the supply and demand for foreign currency result in changing prices of currency. As a result, the “price” of money changes as demand for foreign currencies changes. This “price” of foreign currency, in terms of U.S. currency, is known as the foreign exchange rate. It simply tells you how many American dollars it will cost you to purchase a unit of foreign currency. This “floating” foreign exchange rate changes daily with the international supply and demand for currency. When consumers import more products from a country or invest in that country’s securities, their demand for that currency increases. This increase in demand pushes the price of the currency higher, so their currency appreciates (rises in value). An important negative effect of the strong dollar, however, exists for American exporters. When we have a strong dollar, buyers from other countries see our currency as being very expensive; they must give up more of their currency to buy dollars. As a result, the prices of our products appear more expensive to them. Therefore, the quantity demanded of our exports falls. This harms U.S. exporters, such as computer companies, auto manufacturers, and farmers, because they must lower their prices to try to attract demand for their products, resulting in lower profits and possibly forcing some firms out of business completely. The resulting impact of a strong dollar is a trade deficit. Imports rise, while exports fall. ________________________________________ References Beck, Thorsten, Asli Demirgüç-Kunt, and Ross Levine. 2004. “Finance, Inequality, and Poverty: Cross-Country Evidence.” NBER Working Paper No. 10979, December 2004.



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1 D Employees at a telecommunications company are encouraged 2 E there must be a way to independently verify the accuracy 3 E a move that signal to other firms
Posted On: Nov. 22, 2017
Author: Shipra


1 D Employees at a telecommunications company are encouraged 2 E there must be a way to independently verify the accuracy 3 E a move that signal to other firms 4 C a long term effects cannot be predicted 5 C They are fundamentally connected by an economic relationship that often leads to deeper attachment 6 E Amount of stakeholders 7 B right for fair treatment 8 D To assess the quality, accuracy, and completeness of the social report 9 A Bureau of consumer protection 10 D cloning is unethical because it involves humans medding with nature 11 B Employer took steps to cut cost 12 B alligned with the values core competencies 13 E Internal and external generated documnetare usually equally relaible 14 C Erosion 15 D discharging a pollutant from a point source 16 A consumer 17 D cause related marketing originated in japan 18 D Having employees valunteer at a youth shelter and delivering 19 E Satellite offices of a large company are opened 20 D Interviewing stakholders 21 E Whistle blower 22 A Level of wages designed to help individuals live comfortably 23 E People argue that human beings are more important than any one species 24 E norishing retention to keep the best employees 25 C Bioethics 26 A there are no possible cost benefits associated with 27 C Product liability 28 D Collect 29 A do report the results on a formal basis only both publically and privately 30 A rto oversea the regulations intended to improve and maintain the health and safety of all employees 31 C All formal and informal documents of the firm policiesconcerning areas are covered by the audit 32 E EPA Environmental protection agency 33 D 1970s 34 A 2% 35 A draw some conclusions about the information obtained in the previous stages. 36 D Although some exaggeration is tolerated, deceptive claims or claims that cannot be 37 B Many companies are now monitoring employee communications 38 C Determining weathewr they are tax incentives for corporate giving 39 A Classifying funding opportunities according to the level of 40 C Community relation 41 B Credit card fraud is a major issue for business and consumenrs 42 B technology act as a catalyst to spur even faster development 43 A Match internet addresses with specific geographical locations 44 A The auditing process ensures that a firm will not face challenges related to its social 45 A Information technology and services 46 E Other companies in the area qucikly hire the employees laid offfrom the sownsizing companies 47 D Tie an organization product or service directly to a social concern 48 A Stratetic philathropy should ease government regulations on the company 49 C Send volunteers to rebuild homes that were destroyed in the natural disaster 50 E Provide up to 12 weeks of unpaid, job-protected leave to eligible employees for certain



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ECO 221 Dr. Sattler Homework # 2 Spring 2014 1. a) Calculate the following elasticity coefficient. Interpret the coefficient fully.
Posted On: Nov. 22, 2017
Author: Shipra


ECO 221 Dr. Sattler Homework # 2 Spring 2014 1. a) Calculate the following elasticity coefficient. Interpret the coefficient fully. Next, graph this price and quantity combination using your own demand curve and using the appropriate technique find the elasticity segments and the marginal revenue. P QD $90 9000 $110 7000 b) Assume constant total costs. Recommend a price change to maximize profits. Explain using the elasticity concept. 2. Using a graph, fully explain the importance of the market equilibrium by using the consumer and producer surpluses. i. 3.. Using a graph, show and explain the impact of a tax on a commodity and identify the impacts on consumers, producers, government, and society. 4.. Using graphs and the areas approach show and explain the winners and losers for imposing a tariff on a product. Include consumers, producers and society. Using this analysis explain why we, as a society, tend to impose tariffs on products. 5. Draw the average total cost, average variable cost, and marginal cost curves in one diagram and explain the following: point of diminishing returns, maximum efficiency point of the variable input, and the maximum efficiency point of all inputs both fixed and variable.



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Economics Chapter 19 Use the following hypothetical demand schedule for movies to do exercises 1–4. Quantity Demanded Price Elasticity 100 $ 5
Posted On: Nov. 21, 2017
Author: Shipra


Economics Chapter 19 Use the following hypothetical demand schedule for movies to do exercises 1–4. Quantity Demanded Price Elasticity 100 $ 5 80 $10 60 $15 40 $20 20 $25 10 $30 1. a. Determine the price elasticity of demand at each quantity demanded using the arc or midpoint formula: Percentage change in quantity demanded¼ (Q 2 _ Q 1)/Q 1 divided by percentage change in price ¼ (P2 _ P1)/P1. b. Redo exercise 1a using price changes of $10 rather than $5. 2. Plot the price and quantity data given in the demand schedule of exercise 1. Put price on the vertical axis and quantity on the horizontal axis. Indicate the price elasticity value at each quantity demanded. Explain why the elasticity value gets smaller as you move down the demand curve. 3. What would a 10 percent increase in the price of movie tickets mean for the quantity demanded of a movie theater if the price elasticity of demand was 0.1, 0.5, 1.0, and 5.0? 4. Using the demand curve plotted in exercise 1, illustrate what would occur if the income elasticity of demand was 0.05 and income rose by 10 percent. If the income elasticity of demand was 3.0dramatic savings. CAHPTER 20 8. To increase marginal utility, you must decrease consumption (everything else held constant). This statement is correct, even though it sounds strange. Explain why. 9. Suppose that the marginal utility of good A is 4 times the marginal utility of good B, but the price of good A is only 2 times the price of good B. Is this point consumer equilibrium? If not, what will occur? 13. What is the purpose of the two fields of study, neuroeconomics and behavioral economics? Why might people tend to be overconfident? CHAPTER 21 1. Use the following information to determine the total fixed costs, total variable costs, average fixed costs, average variable costs, average total costs, and marginal costs. Total Output Costs TFC TVC AFC AVC ATC MC 0 $100 1 $150 2 $225 3 $230 4 $300 5 $400 2. Use the following table to answer the questions listed below. Total Output Cost TFC TVC AFC AVC ATC MC 0 $20 10 $ 40 20 $ 60 30 $ 90 40 $120 50 $180 60 $280 a. Calculate the total fixed costs, total variable costs, average fixed costs, average variable costs, average total costs, and marginal costs. b. Plot each of the cost curves. c. At what quantity of output does marginal cost equal average total cost and average variable cost? 3. Using the table in exercise 1, explain what happens toATC when MC >ATC, MC <ATC, and MC ¼ ATC. 4. Using the table in exercise 2, find the quantity whereMC ¼ ATC. Find the quantity where ATC is at its minimum. Find the quantity that is the most efficient operating point for the firm. 11. Consider a firm with a fixed-size production facility as described by its existing cost curves. a. Explain what would happen to those cost curves if a mandatory health insurance program is imposed on all firms. b. What would happen to the cost curves if the plan required the firm to provide a health insurance program for each employee worth 10 percent of the employee’s salary? c. How would that plan compare to one that requires each firm to provide a $100,000 group program that would cover all employees in the firm, no matter what the number of employees was?



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Please make the answers totally differentthan what’s in here and short, give an example if you can. So the teacher won’t notice that I have the original answers of the book.
Posted On: Nov. 21, 2017
Author: Shipra


Please make the answers totally differentthan what’s in here and short, give an example if you can. So the teacher won’t notice that I have the original answers of the book. If a problem instructs you to "illustrate," please use a graph to explain the results. Place each problem into a separate tab or sheet in an Excel file. Here is the book, you will find the questions in there: Boyes, W., &amp; Melvin, M. (2011). Economics (9th ed.). Boston, MA: Houghton-Mifflin Company. http://books.google.com/books?id=mcwJAAAAQBAJ&printsec=frontcover&dq=Boyes,+W.,+%26;+Melvin,+M.+(2011).+Economics+(9th+ed.).+Boston,+MA:+Houghton-Mifflin+Company.&hl=en&sa=X&ei=k98cVOCkMsOHjAKH84GACA&ved=0CD8Q6AEwAg#v=onepage&q&f=false Complete chapter 19, exercises 1-4 in the textbook. Complete chapter 20, exercises 8, 9, and 13 in the textbook. Complete chapter 21, exercises 1-4 and 11 in the textbook. If a problem instructs you to "illustrate," please use a graph to explain the results. Place each problem into a separate tab or sheet in an Excel file. CHAPTER 19 1. a. Quantity Demanded Price Elasticity 100 $ 5 - 80 $10 .2 60 $15 .5 40 $20 1.0 20 $25 2.0 10 $30 2.5 b. Quantity Demanded Price Elasticity 100 $10 - 80 $20 -.2 60 $30 -.5 40 $40 -1.0 20 $50 -2.0 10 $60 -2.5 2. Elasticity falls as one moves down the demand curve because P/Q declines in value; that is, a price falls while quantity increases. 3. If the price elasticity of demand is -.1, then a 10 percent increase in the price results in an approximately 1 percent decrease in quantity demanded. If the price elasticity of demand is - .5, then a 10 percent increase in the price results in an approximately 5 percent decrease in quantity demanded. If the price elasticity of demand is 1, then a 10 percent increase in the price results in an approximately 10 percent decrease in quantity demanded. If the price elasticity of demand is -5, then a 10 percent increase in the price results in an approximately 50 percent decline in quantity demanded. Note that price elasticity of demand is negative. 4. If there is a 10 percent increase in income and the income elasticity of demand is .05, then the demand schedule will shift out such that for any given price, the quantity demanded will increase by .5 percent. If there is a 10 percent increase in income and the income elasticity of demand is 3.0, then the demand schedule will shift out such that for any given price, the quantity demanded will increase by 30 percent. CHAPTER 20 8. The law of diminishing marginal utility is the reason the statement is correct. As you acquire less of a good, the marginal utility of the last unit acquired rises. 9. According to the problem, , or the ratio of MU/P for good A is twice the ratio of MU/P for good B. Consumer equilibrium requires that the ratio of MU/P be reduced for good A and increased for good B. This can occur by purchasing more of good A and less of good B. 13. These fields of study attempt to explain why people make decisions that might look irrational, but in reality are the rational results of a brain that is economizing. People tend to think they are better and do things better than is really the case. The typical view is that successes are due to one’s own wisdom and ability, while failures are due to forces beyond one’s control. CHAPTER 21 ANSWERS TO EXERCISES 1. Output Costs 0 100 100 000 1 150 100 050 100.00 50.00 150.00 050.00 2 225 100 125 050.00 62.50 112.50 075.00 3 230 100 130 033.33 43.33 076.67 005.00 4 300 100 200 025.00 50.00 075.00 070.00 5 400 100 300 020.00 60.00 080.00 100.00 2. a. Output Costs 00 020 20 000 10 040 20 020 2.00 2.00 4.00 02.00 20 060 20 040 1.00 2.00 3.00 02.00 30 090 20 070 0.67 2.33 3.00 03.00 40 120 20 100 0.50 2.50 3.00 03.00 50 180 20 160 0.40 3.20 3.60 06.00 60 280 20 260 0.33 4.33 4.67 10.00 b. c. Between 30 and 40 units, MC = ATC, and between 10 and 20 units, MC = AVC. 3. When MC>ATC, ATC rises. When MC<ATC, ATC falls. MC = ATC at the minimum point of ATC. 4. Between 30 and 40 units, MC = ATC. ATC is at its minimum between 20 and 40 units. The firm’s most efficient point is where MC = ATC, which is between 30 and 40 units. 11. a. A mandatory health insurance program would increase the costs of production. The cost curves would shift up. b. A program based on number of employees would increase the costs of all sizes of firms proportionately. c. A program of lump-sum insurance costs would increase the costs of the small firms much more, in percentage terms, than of the large firms.



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Week 5 Due Date: Oct 01, 2014 23:59:59 Max Points: 50 Details: Complete chapter 28, exercise 11 in the textbook.
Posted On: Nov. 21, 2017
Author: Shipra


Week 5 Due Date: Oct 01, 2014 23:59:59 Max Points: 50 Details: Complete chapter 28, exercise 11 in the textbook. Complete chapter 29, exercises 8 and 15 in the textbook. Complete chapter 30, exercises 8 and 15 in the textbook. If a problem instructs you to "illustrate," please use a graph to explain the results. Place each problem into a separate tab or sheet in an Excel file. Week 6 Due Date: Oct 08, 2014 23:59:59 Max Points: 50 Details: Complete chapter 5, exercises 3 and 13 in the textbook. Complete chapter 6, exercises 3, 8, and 15 in the textbook. Complete chapter 7, exercises 12-13 in the textbook. Complete chapter 11, exercise 7 in the textbook. If a problem instructs you to "illustrate," please use a graph to explain the results. Place each problem into a separate tab or sheet in an Excel file. Week 8 Due Date: Oct 22, 2014 23:59:59 Max Points: 50 Details: Complete chapter 34, exercises 2-6 in the textbook. Complete chapter 35, exercises 3 and 9 in the textbook. Complete chapter 36, exercises 13-15 in the textbook. If a problem instructs you to "illustrate," please use a graph to explain the results. Place each problem into a separate tab or sheet in an Excel file.



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In Metropolis City the demand for rental housing is given by the demand equation P=1000-0.1Qd, while the supply of rental housing is given by the equation
Posted On: Nov. 20, 2017
Author: Shipra


P=200+.3Qs. Use this basic information to answer the questions below. 1. What is the equilibrium price for rental housing in Metropolis City? 2. What is the equilibrium quantity of rental housing in Metropolis City? 3. If the government sets the price for rental housing in Metropolis City at $500.00, what problem or issue of concern is likely to arise in the rental housing market in Metropolis City? 4. As an expert in demand and supply analysis, what basic information or facts would you need in order to explain your concern about the government’s pricing policy for rental housing to the government officials in Metropolis City? 5. Fill in the following demand and supply schedules for the rental housing market given the above equations: PRICE QUANTITY DEMANDED (Qd) QUANTITY SUPPLIED (Qs) $200 400 600 800 1,000 6. When the price for rental housing is set at $500.00, how many rental units will be demanded and supplied, according to the above equations? (Quantity demanded (Qd) ________; Quantity Supplied (Qs) ________). 7. What assumptions are made in analyzing this model of the rental housing market in Metropolis City? 8. What are the implications, consequences, or limitations arising from the government’s imposition of a price of $500.00 on rental housing units in Metropolis City? 9. Given the consequences and implications of the government’s pricing policy with regard to rental housing, what recommendations, conclusions or suggestions would you make to the government officials in Metropolis City?



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Select and briefly describe a human services organization that has transitioned from a provider – based model to a consumer- based model.
Posted On: Nov. 18, 2017
Author: Shipra


Select and briefly describe a human services organization that has transitioned from a provider – based model to a consumer- based model. Analyze the impact of the organization’s evolution, as well as historical, political, social and economic factors on the provider-base model to the consumer-based model Organizations invariably take shape as a provider-based service model in charity or religious foundations and move on to a consumer – based model to better fit the needs of their clients. This transition is due to the evolution of the organization and also as a combined effect of historical, political, social and economic factors. It is important to first understand the difference between the two models. Provider –based models are small, community focused organizations. Their requirements of funds are mostly met from community members they serve in. however since the funds are provided by them, they often tend to dictate terms and conditions on what type of services will be offered and to whom. Consumer –based models are funded by both private and public money. Consumers invariably dictate the type of services they need. Accesses to a range of services are available and consumers can chose amongst the same, as per their choice. AmeriCares is one such organization with a mission “A passion to help. The ability to deliver”. Robert C. “Bob” Macauley is founder and chairman of AmeriCares, the nonprofit global health and disaster relief organization headquartered in Stamford, CT. He had a lifelong passion to provide aid to people in need. He founded AmeriCares in 1982. His vision and leadership led the company to grow and become the leading non- governmental organization that helped in delivering medicines, medical supplies and humanitarian aid around the world and across the United States. The formation of the organization was carried out with abundant compassion and sheer courage. The mission was achieved in a short span of time and it set the stage for setting up more such units at other places. According to the founder, human lives are more important and one should act without any delay or botheration about the bureaucratic interruptions. Macauley’s efforts in Vietnam were praised by Pope John Paul II. In 1981, Pope asked him a favor to extend help to people in Poland, where citizens had virtually no medical supplies at all. Macauley immediately complied with the request (even though he is not Catholic). Initially, the goal was set up after mutual discussion with the Pope, for sending $ 50,000 worth of medical supplies. This goal was quickly exceeded when AmeriCares airlifted more than $ 3.2 million worth of aid to Poland. Such is the nature of commitment of a Not-For- Profit Company. Once the Poland mission achieved overwhelming success, Macauley realized that the same model could be used to help those suffering in other countries around the world. The foundation stone of AmeriCares was laid one year later in the year 1982. AmeriCares is a nonprofit global health and disaster relief organization. It is engaged in the business of delivering medicines, medical supplies and aid to people in need around the globe as well within United States. Since its establishment, AmeriCares has distributed more than $ 10 billion in humanitarian aid to 164 countries. The operation of the company started with a mission to help out people in need. Today the company delivers medical aid and supports ongoing health programs, for example, bringing nutritional supplements to hungry children or providing crucial aid to fight deadly diseases, such as cholera. Within United States, it supplies aid to 400 clinics thus providing service to uninsured and underinsured personnel. It also operates three free clinics in Connecticut. In emergencies, its teams are the first to respond and delivery medicines and medical assistance. Even in the case of major disasters, AmeriCares stays in touch with people and helps in rebuilding communities and restore health services. No organization can work smoothly in absence of funds. AmeriCares is privately funded through the kindness of donors and also receives support in kind from various pharmaceutical and health care companies. AmeriCares works in several countries around the world, improving health care in areas of desperate need. It also helps those who have no access to health care at home. AmeriCares has offices in El Salvador, Haiti, India, Sri Lanka and Japan in addition to its global headquarters in Stamford, Connecticut. What sets AmeriCares apart is its transparency of operations. It is an efficient, accountable and highly respected global health organization. It has earned laurels for transparency from nonprofit rating site Charity Navigator and receives donations from many of the largest and most respected health care organizations in the world. The company uses contributions along with high-value donated pharmaceuticals, so each donation gets leveraged many times over. AmeriCares maintains high degree of professional standards, as per norms set up by different institutions. It is an I.R.S. registered 501(c) (3) tax-exempt organization. It is also registered with the United States Agency for International Development (USAID). It is a licensed drug wholesaler with the State of Connecticut Department of Consumer Protection. It has also obtained necessary permission and is a licensed DEA Exporter registered to handle Schedule II-V narcotic and non-narcotic controlled substances. AmeriCares abides by all Food and Drug Administration (FDA) guidelines. In fact its lot numbers for all products are tracked from receipt to distribution. AmeriCares was one of the first non-governmental organizations to endorse the World Health Organization (WHO) Guidelines for drugs and donations. As part of the fraternity of pharmaceuticals, it is affiliated with the Healthcare Distribution Management Association (HDMA). It also abides by Prescription Drug Marketing Act (PDMA) standards. It is a founding member of the Partnership for Quality Medical Donations (PQMD), an alliance of relief agencies and healthcare firms dedicated to advancing quality medical product donations worldwide. AmeriCares has not neglected its responsibility towards environmental balance. It is HAZMAT certified to ship hazardous materials by air, rail, highway and water. It also operates in compliance with Environmental Protection Agency (EPA) and Occupational Safety and Health Administration (OSHA) guidelines. It has maintained contacts with several esteemed medical institutions whose faculty and staff support AmeriCares' programs around the world. The institution with which it has established partnership are well known and established names such as ,Yale University School of Medicine (New Haven, Connecticut) ,The Mayo Clinic (Rochester, Minnesota),Dartmouth Medical School (Hanover, New Hampshire) ,Bridgeport Hospital (Bridgeport, Connecticut) ,Danbury Hospital (Danbury, Connecticut),Norwalk Hospital (Norwalk, Connecticut).



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Homework help with economics The subject of economics is quite vast and requires some understanding of numbers
Posted On: Nov. 13, 2017
Author: Shipra


Homework help with economics The subject of economics is quite vast and requires some understanding of numbers and accounting. Many students find it boring and uninteresting. However, those who like to play with numbers simply love this subject. In economics, we learn about the accounting procedures and also about how the economy operates. The understanding of economy also helps us in dealing with our daily activities. It is a well known fact that we can not survive without accounts. In our day to day life, we have to deal with numbers, whether we are doing transactions at stores, shopping malls, paying our taxes, calculating our liabilities etc. Homework help in accounts can take the shape of solving various problems of accounting such as • Preparing balance sheet • Calculating break even point • Preparing different types of accounts statements • Calculation of profit and loss etc The work of accounts is spread in all areas of business and one can just not get away from it. In every walk of life, one has to face these problems and come up with solutions. For example preparing balance sheet would give an idea as to where the company stands Vis –a Vis its liabilities and assets. It also gives at a glance, information about the financial status of the company. By knowing the financial status of the company, the investors can take a decision about investing in the company. Similarly, vendors who are associated with the company can also decide if it is worthwhile dealing with the company Thus homework in economics has several uses and one should concentrate on learning the subject =========================== Homework helps with business management Management is a subject, which has vast applications. In a traditional way, management is defined as the art of getting the work done. It is a subject of interest to all the managers of a company, who have to deal with subordinates. Business management, as the name suggests, deals with managing the business. The subject being vast, it requires tremendous amount of help from tutors. The student would need to know about basic aspects / functions of management such as • Planning • Staffing • Organizing • Leading and • Controlling Each of these functions has their importance. While planning deals with preparing goals and objectives (both short term and long term) and also exploring various ways of achieving them, organizing deals with arranging of personnel to do the task. The people of a company are its resources and it is imperative to make sure that you get the right type of people to do the task. Prior to organizing, tasks of similar nature need to be defined and grouped together. This makes the job of organizing simpler. Staffing deals with selection and recruitment of people as well as providing them training to do their jobs effectively. Leading means providing direction and directing people to do the work. Controlling and planning go hand in hand as after planning, the managers have to monitor the performance and also take corrective actions accordingly. The need for corrective action can appear if the measured performance is deficient. In that case, the manager needs to know what went wrong with the process and devise methods in such a way that the processes are streamlined.



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Economics Assignment
Posted On: Nov. 13, 2017
Author: Shipra


Economics Assignment Q9 ANS PART B Q10 ANS PART B Q11 ANS PART A Q12 ANS PART C Q13 ANS PART A Q14 ANS PART C Q15 ANS PART C Q16 ANS PART A Q17 ANS PART B Q18 ANS PART B Q19 ANS PART A Q20 ANS PART A Q21 ANS PART B Q22 ANS PART C Q23 ANS PART B Q24 ANS PART B Q25 ANS PART B



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Economics Assignment
Posted On: Nov. 11, 2017
Author: Shipra


Economics Assignment Q9 ANS PART B Q10 ANS PART B Q11 ANS PART A Q12 ANS PART C Q13 ANS PART A Q14 ANS PART C Q15 ANS PART C Q16 ANS PART A Q17 ANS PART B Q18 ANS PART B Q19 ANS PART A Q20 ANS PART A Q21 ANS PART B Q22 ANS PART C Q23 ANS PART B Q24 ANS PART B Q25 ANS PART B



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Wal-Mart: Its Internal & External Environment and Corporate Social Responsibility
Posted On: Nov. 9, 2017
Author: Shipra


Report On Wal-Mart: Its Internal & External Environment and Corporate Social Responsibility I. INTRODUCTION: Wal-Mart Stores, Inc. is an American public corporation that runs a chain of large, discount department stores. It is the world's largest public corporation by revenue, according to the 2008 Fortune Global 500. Founded by Sam Walton in 1962, it was incorporated on October 31, 1969, and listed on the New York Stock Exchange in 1972. Wal-Mart is the largest grocery retailer in the United States, with an estimated 20% of the retail grocery and consumables business. It also owns and operates the North American company, Sam's Club. Today, 7,390 Wal-Mart stores and Sam’s Club locations in 14 markets employ more than 2 million associates, serving more than 200 million customers per year. Their logo is: “we save people money, so that they can live better. The philosophy of Wal-Mart is “the bigger the better”. It has strong financials and steady stock prices. Wal-Mart is also known to be the cost leader among its peers and has set the foundation stone of the retail business in US. II. ECONOMICS AND THE GLOBAL ENVIORNMENT PESTLE ANALYSIS 1 Political factors The political factors point out to the fact that the company has to take notice of this. There are restrictions , as imposed by political parties and unions on the number of hours a worker can work and also the places where Wal Mart should open its stores. This needs to be taken into consideration by the company while discharging its CSR Economic factors The current economic scenario is not conducive to growth, Savings are down to minimal and there are plenty of job losses. There is a general slow down of economy and the future looks quite gloomy . Even though several measures are being adapted by the government to boost the economy ,it is still quite sluggish with the result that future is not so rosy. With the recession all over the world, the company has to find out new ways of attracting customers. Socio-cultural factors There is a rise in world population and in the emerging markets such as China, India , Brazil etc, there is going to be increasing demand for products. Thus there appears to be good scope for expansion in such countries Culturally the emerging markets need to be examined from this angle and a proper strategy should be adopted keeping in mind the local tastes and preferences Technological factors Technologies are changing on a continuous basis in this field. There is always a demand for new way of delivering and satisfying customers. Wal Mart should take care of these changes and adapt the same accordingly. The company should invest in proper equipment and devise methods to keep abreast of latest in goods offered and also trends Legal factors The emerging markets have a lot of restrictions as far investments are concerned . For example , in India , there is still opposition to investment by foreign companies for entering the market of retail as there people fear that it would “ eat up “ the smaller traders. Hence the local laws , rules and regulations can not be ignored and the company has to take this into consideration. Environmental factors Lastly , environmental issues have become a cause of grave concern for companies , individuals as well as governments across the world. With the growth of information technology, people are becoming more aware of their rights and take active interest in environmental matters. There are laws on pollution control and there is concern on environmental damage caused by wasteful expenditure and throwing away of litter as well disposal of used or unused material / goods . The company has to follow these norms strictly and lead from the front and set an example for others to follow. Several factors affect the economy and are indicators of how the economy is doing. Among the factors are disposable income levels, unemployment rates, inflation, CPI, consumption, capital formation, investment in production and the GDP. The Federal Reserve has reported that it expects the U.S. economy to keep growing at a good rate and inflation expectations seem to be well contained. They expect the economy to continue to expand at a solid rate. Consumer spending, house purchasing, and business fixed investments have been strong and are expected to remain that way. More proof that the economy is powering ahead is that employers added twice the average amount of workers to their payrolls in the month of February than in the previous three months. The following data will show that the economy is beginning to turn around, but the state of the economy doesn’t necessarily affect a company such as Wal-Mart whose main customers are very price elastic and do take the changes in economic conditions seriously. A. Personal Incomes and Outlays: Personal income increased $32.2 billion, or 0.3 percent, and disposable personal income (DPI) increased $46.6 billion, or 0.4 percent, in January, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $39.9 billion, or 0.4 percent. In December, personal income increased $54.0 billion, or 0.5 percent, DPI increased $46.0 billion, or 0.4 percent, and PCE increased $32.0 billion, or 0.3 percent, based on revised estimates. 20072008Sep.Oct.Nov.Dec.Jan.(percent change from preceding month)Personal Income Current Dollars0.40.20.30.50.3Disposable personal Income: Current Dollars0.40.20.30.40.4 Chained (2000) Dollars0.1-0.1-0.40.10.1Personal Consumption expenditure: Current Dollars0.50.30.90.30.4 Chained (2000) Dollars0.200.200source: www.bea.gov B. Real Household Income in United States and its Pattern: In 2007, the median annual household income rose 1.3% to $50,233.00 according to the Census Bureau.The real median earnings of men who worked full time, year-round climbed between 2006 and 2007, from $43,460 to $45,113. For women, the corresponding increase was from $33,437 to $35,102. The median income per household member (including all working and non-working members above the age of 14) was $26,036 in 2006. In 2006, there were approximately 116,011,000 households in the United States. 19.26% of all households had annual incomes exceeding $100,000, 12.3% fell below the federal poverty threshold and the bottom 20% earned less than $19,178. The aggregate income distribution is highly concentrated towards the top, with the top 6.37% earning roughly one third of all income. Even then the Wal-Mart customers are not going to decline as they are into the necessity business. C. Real Gross Domestic Product: The output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 2.8 percent in the second quarter of 2008, (that is, from the first quarter to the second quarter), according to final estimates released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 0.9 percent. D. Unemployment Rate: Both nonfarm payroll employment, at 138.1 million, and the unemployment rate, at 4.9 percent, were essentially unchanged in January, the Bureau of Labor Sta- tistics of the U.S. Department of Labor reported today. The small January movement in nonfarm payroll employment (-17,000) reflected declines in construction and manufacturing and job growth in health care. Average hourly earnings rose by 4 cents, or 0.2 percent, over the month. E. Consumer Price Index (CPI): The Consumer Price Indexes (CPI) program produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. According to the Bureau of Labor Statistics, the Consumer price Index for all urban consumers has increased 4.3% in last one year from Jan’07 to Jan’08. F. Consumption: Is the selection, adoption, use, disposal and recycling of goods and services. With the development of a consumer society and the ever-increasing consumer power in the marketplace, the growth in marketing, advertising and sophisticated consumers, consumption becomes an important indicator of how the economy is doing. As long as the economy produces jobs at a decent rate, growing wages and salaries should provide for growth in consumption. If the monthly employment growth stays at its recent levels, this should provide some assurance of continued consumer strength. G. Capital Formation: Capital formation is a term used in national accounts statistics and macroeconomics. It basically refers to the net additions to the (physical) capital stock in an accounting period, or, to the value of the increase of the capital stock; though it may occasionally also refer to the total stock of capital formed. Capital is said to be "formed" when savings are used for investment purposes, often investment in production. III. INDUSTRY ANALYSIS A. Competitive Position and Industry Review: Wal-Mart is undoubtedly the world’s largest chain of large discounted departmental stores. It is largest private employer in the world and employs around 2.1 million employees across the globe. Wal-Mart is the largest grocery retailer in the United States and holds 20% of the retails and the grocery and consumable business. Today Wal-Mart has 7390 stores across the globe, in 14 markets and serving 200 million customers everyday and it is still growing. It’s punch line is : “Save People Money so that they can Live Better”. The nearest competitor is Target Corporation who is into large format general merchandise and food discount stores under the brand names of Target and Super Target. Founded in 1902, Target operates 1648 stores. The other competitor is Costco Wholesale Corporation operates membership warehouses, which offer a selection of branded and private label products in a range of merchandise categories in no-frills, self-service warehouse facilities. Costco was founded in 1976 and operates 488 warehouses, giving a strong competition to Wal-Mart. Though the number of stores in the field of warehousing is more of Wal-Mart than Costco, the revenues are more generated by Costco. Another strong competitor for Wal-Mart is Family Dollar Stores, Inc. which operates a chain of neighborhood retail discount stores in the United States. It offers general merchandise in four categories: consumables, home products, apparel and accessories, and seasonal and electronics. The company was founded in 1959 and operates 6500 general merchandise stores in 44 states. Although the size of family dollar is far less than the Wal-Mart but the rate of growth of family dollar is quite good. B. Comparison with Peers Wal-Mart operates in the industry of Discount, Variety Stores and the industry is quite crowded with the presence of 12 major players and other than Wal-Mart, the other high five are: Target Corporation, Costco, Family Dollar Stores, Dollar Tree and BJ’s Wholesale Club. In terms of sales revenue, Wal-Mart is the leader all round with a sales of 397.4 billion as against 70.3 billion of Costco and 65 billion by Target Corporation. In terms of market capitalization also, there is no match for Wal-Mart. While it has market capitalization of 235 billion dollars, the nearest is Target Corporation with only 32.9 billion dollars. Some of the important ratios are summarized and displayed as below: WMT VS. INDUSTRY LEADERS Statistic Industry Leader WMT WMT Rank Market Capitalization WMT 234.98B - 1 / 12 P/E Ratio (ttm) FRED 59.67 17.77 5 / 12 PEG Ratio (ttm, 5 yr expected) NDN 7.07 1.48 5 / 12 Revenue Growth (Qtrly YoY) TUES 75.10% 10.40% 6 / 12 EPS Growth (Qtrly YoY) PSMT 102.80% 21.30% 6 / 12 Long-Term Growth Rate (5 yr) BIG 15.5% 11.55% 8 / 12 Return on Equity (ttm) WMT 20.75% - 1 / 12 Long-Term Debt/Equity (mrq) TGT 1.461 0.667 2 / 12 Dividend Yield (annual) FDO 2.10% 1.60% 3 / 12 Another way of industry analysis is by Porter’s 5 forces model Industry Analysis (Porter’s 5 forces) “A well-known model that helps managers focus on the five most important competitive forces, or potential threats, in the external environment is Michael Porter’s five forces model.” (Jones & George, p.276) i) Degree of Rivalry (competition environment) Domestic market In the domestic market, Wal Mart the threat is not so significant , especially from the segment in which it is operating. However there is a chance that other players may enter the market and in that case the company will have to design strategies to counter his threat Global market In the other countries, the threat is from smaller , local players who are already established and have a following of their own. Perception of people is very difficult to change and Wal Mart will have to do some additional work in the form of sales promotion . publicity etc, so that the mind set of people in such countries gets accustomed to this change and they start adopting the products offered by the company. ii) Supplier Power Supplier power is definitely weak. The suppliers are scattered all over and have to conform to the terms and conditions of the company. Wal Mart is one of the biggest buyers and is known to “squeeze “ the suppliers for price and delivery. iii) Buyer Power Buyer power is quite strong. Customers have a variety of choices and Wal Mart has to make sure that the come up with innovative ideas and schemes to attract them to the stores. They are ,at present adopting all measures to do so e.g. EDLP (Every Day Low Prices and such schemes iv) The barriers to entry into market The barrier to entry in the market is quite simple. However, the segment to which Wal Mart caters to has its own specific features as such the entry to this type of market is difficult. The format of the store, the variety of goods being offered etc are at a large scale and require huge investment. So not every company will be able to enter the market segment . v) Threat of substitutes There are several stores offering these kind of services and there is a big threat to the store. Smaller traders, medium size operators all have their eyes on this lucrative market and thus their action plans have to be watched carefully by the company. IV. COMPANY ANALYSIS A. Stock Price Analysis: There have been quite ups and downs in the stock price of Wal-Mart. From $46.57 in January 2008, it has moved marginally to $50.09 in January 2008. This can be attributed to many factors like the growing competition, price sensitive customers, rising food prices and changing employment levels in the economy. B. Analysis of Financial Statements • Analysis of Liquidity Position The current ratio of the company has slipped down from 0.90 in 2006 as well as 2007 to 0.81 in 2008. This proves that the current liabilities are in excessive of the current assets which might worry the creditors and the banker who extend the cash credit limits against inventories and receivables. The Quick Ratio has also slipped from last year’s 0.25 to this year 0.21. It means that the company is holding excessive stocks than it should. Also, the increase in payables and other current liabilities have also contributed in the same. • Analysis of Profitability Over the past three years, Wal-Mart has been able to increase its Gross Margin ratio which means that it has been able to contain the cost of goods sold drastically over the years. If we look at the detailed Du-Pont ratios, the assets turnover ratio has increased from 3.54 in 2006 to 3.61 in 2008. The financial leverage and the Net Asset to Equity ratio are pretty much the same in last three years. This has resulted its affect on the Net ROI which has declined from 21.12% in 2006 to 19.70% in 2008. Wal-Mart is adequately financed by debt and this shows the result on the profitability as the interest burden increases from year to year. • Analysis of Market Value Performance There is always a positive link between the sustained growth, profitability of the firm and its prices. The good financial results do have an impact on the stock prices of the firm. Wal-Mart is way ahead of its competitors in terms of volume and profitability but it is not like that it does not have to face the competiiton. The rivals are now becoming the potential threats and Wal-Mart has to fight every time to counter them. Let us look at some the comparison charts of Wal-Marts stock prices which shows that the prices have been very turbulant in thelast one year. The Wal-Mart’s prices were almost parallel to S&P500 till the first quarter but after that it deeclined sharply. And in the year end, it just managed to finish little above the S&P500. Out of the past 52 weeks from 02/01/2007 to 01/31/2008, the stocks of Wal-Mart has fallen in 29 weeks and the prices have changed from $41.66 (lowest) to $50.09 (highest) C. Policy Observations • Investment Policy As per the annual report published for the year ended 31 January 2008, the company expects to invest $13.2 billion to $15.2 billion in the year 2009. This can be financed by any other acquisitions or and primarily out of cash from operations. With the above said expansion plan next year, the company expects to open 620 new stores 170 Supercenteres and 25 neighbourhood stores in Wal-Mart Stores segment. There is also plan to open other 25 Sam’s Club stores. The overseas expenditure shall be made on opening of 400 stores. • Financial Policy Net Interest as a percentage of net sales increased slightly from fiscal 2006 to fiscal 2008. The increase in interest, net, of $269 million and $351 millionb in fiscal 2008 and fiscal 2006, respectively, primarily resulted from increased borrowing levels and interest rates on floating rate debt. The effective income tax rates for the fiscal 2006, 2007 and 2008 are 33.1%, 33.6% and 34.2% respectively. The expected tax rate for fiscal 2009 is between 34 and 35 percent. During the fiscal 2008, the company issued $11.2 billion of long term debt. The proceeds of such long term debt were used to repay outstanding commercial papers and indebtedness and for other general corporate purposes. • Dividend Policy: The company paid a dividend of $0.88 per share in fiscal 2008, representing an increase over fiscal 2007. The fiscal 2007 dividend of $0.67 per share represented an 11.7% increase over fiscal 2006. Although the company’s rate of dividend payout has been increasing in thelast three years, the P?E ratio is not reflective as such as it has detoriated from 1.69 in fiscal 2007 to 1.56 for fiscal 2008. • Working Capital Policies: Starbucks’ daily sales have increased 20% in three years. The majority of the company’s transactions are immediate cash payments from consumers. Consequently, the cash cycle time and receivable cycle time are between 4 and 41 days respectively, rather than the typical 30+ days seen in other industries. These fast turnaround times could be one reason for low volume of debt carried by the company. All of the turnover ratios are well below that of other businesses in the market. V. CORPORATE SOCIAL RESPONSIBILITY We often discuss about the most complex business environment and always talk in terms of the performance, productivity and profitability of the businesses around us. In this rate race, we often forget that the companies and business exist in the society and are inseparable part of the society. The business units have gained their current status and profits from the society and they need to give it back to the society and do every thing that does value addition to the society and do not deplete or detoriates its resources excessively. Corporate Social Responsibility is a very vast term and includes a lot of issues like environment sustainability, labor issues, Ethics, corporate governance, philanthropy, diversity, crisis management, patriotism, and respect for the law of land, profit, customer relations and shareholder’s relation. This list is not exhaustive and may include many more other things as well. CSR at Wal-Mart Wal-Mart is the biggest company in the world and it perhaps caters to the maximum people through its chain of stores worldwide. It offers thousands of products under hundreds of category from food items to clothes to furniture to good living products to electronics to medical to FMCG to any other thing that is worth consuming. Being the world’s biggest company and biggest retail store chains, it has even more responsibility towards society. We have analyzed its latest Sustainability Report in which Wal-Mart has touched the following aspects: Mission Statement: The mission statement of Wal-Mart is “Saving people money so that they can live better”. For over 40 years Wal-Mart has offered the cheapest available best products to their consumers so that they can lead a better life through their daily savings. Customer Service: Approximately 180 million customers across the world visit Wal-Mart stores and here are the highlights of their service to the customers: • Wal-Mart help saves $3100 every year to an average American consumer • In the FY 2008, Wal-Mart has generated $13.2 billion state and local tax revenues. • In FY 2008 also, it has generated 30,000 more jobs. Environmental Sustainability: Since 2005, Wal-Mart is biggest sustainable responsible organization. It has taken the following steps which are as follows: • Wal-Mart is committed to have every product on its shelf as GREEN as possible like energy efficient electronic products, organic food etc. • Introduction of reusable bags and elimination of more than 33% of its plastic bags usage. • Wal-Mart is committed to purchase the renewable energy like wind energy in 2009. The company also projects that in the coming years it will use 100% renewable energy, create zero waste and sell products that sustain resources and environment. Responsible Sourcing at Wal-Mart Wal-Mart believes in procuring the products from the suppliers who are also focused towards sustainability and fair practices. For example – Wal-Mart never buys the garments from suppliers who employ child labor. During 2008, Wal-Mart focused its energies in three areas: • Advocating for one set of social and environmental standards, and one third-party auditing system, to be used by all global retailers and brands. • Strengthening compliance requirements, supplier standards and developing a more comprehensive audit and supplier development program. • Partnering with suppliers on reducing their environmental impact and on improving efficiency and product quality.” Ethical standard Programs at Wal-Mart: The following global results say it all for Wal-Mart: Rating 2007 Percentage Total 2008 Percentage Total 2007-2008 Observations Green 4.2% 7.1% Improving Yellow 50.8% 51% Stable Orange 40.7% 39.0% Improving Orange – Age 0.9% 0.5% Stable Red 2.4% 1.6% Stable Disapproved 1.1% 0.7% Stable Social: Diversity: The company is quite focused and serious about the diversity issues and sees that there are no gender discriminations in their organization. Some of the main developments in this regard as follows: • Wal-Mart has issued instructions for their officers and management staff to follow diversity goals otherwise 15% of their bonuses would be reduced. This resulted in 100% officers meeting their targets. • It spends $6 billion to procure raw material from women suppliers. • Wal-Mart also takes care of providing employment to all the ethnic groups like Afro-American, Asian-American, Hawaiian, American Indian, Hispanic associates, women and person having age of more than 50 years. RECOMMENDATIONS Based on the analysis, it is recommended that Wal Mart should adopt some programs which are employee friendly. As of now, the company is known to take advantage of its employees and vendors, It is a well known fact that the company is the biggest employer and is also dong a great service by serving customers in the middle and lower middle class category, by offering them cheap products , i.e. products at a very reasonable price. However, this is seen to be done at the cost of vendors, who are literally taken for a ride and “ squeezed “ to give rock bottom prices and best delivery. The vendors. Suppliers are not able to make sufficient profits for themselves but since they find in Wal Mart a captive market, they have no other option but to comply with their demand. This in turn, has left a feeling of negativity and antagonism. It is suggested that Wal Mart should give due consideration to the requirements of their suppliers and also give them a chance to earn profit. Employees of Wal Mart are very well looked after but then their working hours are long and strenuous, More and more facilities should be provide to them to make their tasks easier and simpler. Corporate Governance: 1. Chief Executive Officer: The CEO of a company is most important person as he is responsible for taking and shaping the future of the company. He is like the captain of the ship and his direction and decisions can really make the difference. No doubt, they also take the highest salaries on the planet and due to this expectations and pressure; the average life of a CEO in USA is not more than 3 years. That is why; it becomes more relevant to know more about the person holding this position. Coming to the case of Wal-Mart, the current CEO is Mr.H.Lee Scott Jr., who has been CEO for almost 9 years and is scheduled to retire on 1st February, 2009. Scott joined Wal-Mart in 1979 as an assistant director in the Logistics division, rising through the ranks to executive vice president of Logistics in 1993 and executive vice president of Merchandise in 1995. He became president and chief executive officer of the Wal-Mart Stores U.S. division in 1998, chief operating officer and vice chairman for the corporation in 1999, and president and CEO in 2000. For the year 2007 – 08, the following is the structure of Scott’s total compensation plan: Total salary : $1,400,000 Total Compensation : $31,597,424 The further breakup of the compensation is as follows: Salary Component Amount ($) Salary 1,400,000 Stock Rewards 14,075468 Option Awards 6,839,918 Non-Equity Incentive Plan – Compensation 8,400,000 Change in Pension Value and Non qualified deferred compensation earnings 450,592 All other compensation 431,446 Grand Total 31,597,424 As far as Scott’s ownership in respect of stocks owned is summarized below. Also is attached the Excel sheet named “Inside Trading – Wal-Mart” to show Scott’s most recent trading in stocks in the last two years. Quantity Amount (at Market Value) Exercisable 1,728,037 2,380,583 Unexercisable 1,607,718 174,563 Exercised 74,318 2,016,998 2. Board of Directors (BoD): The Board of Directors is the group of persons which is responsible for the legal functioning of the company and vests all the rights and powers to run the company in the best possible manner. This might constitute of the major stakeholders, promoters and fonder members or the independent persons who are expert in various fields to suggest the best course of action for the company. Likewise, the Board of Directors of Wal-Mart also constitutes of members from various walks of life having a rich and vibrant legacy of the expertise and the profound professional knowledge in their respective fields – be it finance, logistics, academics, consumer behavior, FMCG, bankers or various other capacities. There are 24 members on the board and their average length of service is 3.875 years. The list is enclosed here as under: Name Age Since Current Position Castro-Wright, Eduardo 53 2008 Vice Chairman of the Board Whaley, Steven 48 2007 Senior Vice President, Controller Duke, Michael 58 2009 President, Chief Executive Officer, Director Fanderl, Stephan -- 2008 President of Wal-Mart Emerging Markets - East Wolf, Linda 60 2005 Independent Director McMillon, C. Douglas 42 2009 Executive Vice President; President and Chief Executive Officer of Wal-Mart International Ford, Rollin 45 2006 Executive Vice President, Chief Information Officer Hyde, Thomas 59 2005 Executive Vice President and Corporate Secretary Chambers, Susan 51 2006 Executive Vice President - People Division Dach, Leslie 53 2006 Executive Vice President - Corporate Affairs and Government Relations Glass, David 72 2006 Director Scott, H. Lee 59 2009 Director Breyer, James 46 2001 Director Burns, M. Michele 50 2003 Director Williams, Christopher 50 2004 Director Daft, Douglas 65 2005 Director Walton, Jim 59 2005 Director Alvarez, Aida 58 2006 Director Cash, James 60 2006 Director Corbett, Roger 65 2006 Director Questrom, Allen 68 2007 Director Penner, Gregory -- 2008 Director Schoewe, Thomas 55 2000 Chief Financial Officer, Executive Vice President Walton, S. Robson 63 1992 Chairman of the Board 3. Shareholder Voting Structure and Shareholder voting powers: There are no differences in the voting rights across the shares. Likewise the board elections are not staggered. 4. Stock holdings in the Company: It is quite difficult to enumerate the stockholders as they keep on changing hands very frequently but as per the latest 10-Q published on 12/09/2008, the number of common stock outstanding are 3.92 billion of par value $0.10 each There is approximately 38.30% of institutional ownership. Apart from the institutional investors, the list of stocks held by the directors or other members of the Board or other than Board members is listed below: Name of Beneficial Owner Direct or Indirect with Sole Voting and Investment Power (1) Indirect with Shared Voting and Investment Power Total Percent of Class Aida M. Alvarez 5,792 150 5,942 * James W. Breyer 112,007 0 112,007 * M. Michele Burns 13,772 0 13,772 * James I. Cash, Jr. 7,992 0 7,992 * Eduardo Castro-Wright (2) 419,264 0 419,264 * Roger C. Corbett 3,084 0 3,084 * Douglas N. Daft 16,676 0 16,676 * Michael T. Duke 1,235,055 0 1,235,055 * David D. Glass 608,890 500,000 1,108,890 * Roland A. Hernandez 43,159 0 43,159 * John B. Menzer 1,317,905 0 1,317,905 * Gregory B. Penner 0 1,840,852 1,840,852 * Allen I. Questrom 3,907 0 3,907 * Thomas M. Schoewe 980,664 0 980,664 * H. Lee Scott, Jr. 4,260,444 3,148 4,263,592 * Jack C. Shewmaker 3,194,354 1,992 3,196,346 * Arne M. Sorenson 0 0 0 * Jim C. Walton 10,484,183 1,682,585,830 1,693,070,013 42.84 % S. Robson Walton 2,877,804 1,684,945,230 1,687,823,034 42.71 % Christopher J. Williams 16,411 0 16,411 * Linda S. Wolf 11,210 290 11,500 * Directors and Executive Officers as a Group (27 persons) 26,738,992 1,687,299,179 1,714,038,171 43.37 % References: • ‘A Guide to Corporate Social Responsibility’, viewed 25 June 2009 < http://www6.miami.edu/ethics/pdf_files/csr_guide.pdf> • Global Sustainability Report, viewed 25 June 2009 < http://walmartstores.com/Sustainability/7951.aspx> • Official Website of Wal-Mart Stores, viewed 25 June 2009 < http://walmartstores.com/> • www.bea.gov



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The economic developments of the nineteenth century pushed the West to the
Posted On: Nov. 9, 2017
Author: Shipra


The economic developments of the nineteenth century pushed the West to the forefront of the world’s economics. “The heart of this new global economy lay in western Europe, particularly in Great Britain and Germany, and in the United States” (Goff, 2014, p. 24). This was possible through many avenues. The West took over many countries including Asia to benefit from the raw material developed in it Asia as well as Africa and Latin America. The resurgence of imperialism was primarily due to economic consideration (Goff, 2014, p. 32). In their quest for economic growth and wealth, Western capitalists were continuously searching for new places to invest in or on a conquest for cheap labor (Goff, 2014, p. 32). I personally cannot think of one instance in history where a stronger country has been able to trade with a weaker country without using force especially as long as there where there is a financial gain. Weaker countries will always susceptible to being taken advantage of or even invaded by a stronger country. However, there is one possible way a stronger country could trade with a weaker country without controlling it as we have seen in recent news with the Ex-Im Bank who makes loans available to foreign countries in an effort to support and possibly assist American businesses using American taxpayers money. For instance, Asia Broadcast Satellite (ABS) received $471 million in loans from the Export-Import Bank of the United States (Ex-Im Bank) to assist ABS with the purchase of three geostationary satellites built by Space Systems/Loral (SS/L) and Boeing Satellite Systems (Export-Import Bank of the United States, 2014, par. 1). I don’t think any nation has the ‘right’ to take over any other nation for the reasons mentioned. However, many countries have done it and will continue to do it. Egypt took over Sudan for the sake of obtaining water rights over the Nile River. “Egypt claimed authority over the Sudan, which controlled the water supply of the Nile River” (Goff, 2014, p. 56). Export-Import Bank of the United States. (2014, April 14). Asia Broadcast Satellite Wins Ex-Im Bank 2014 Deal of the Year. Retrieved July 17, 2014, from http://www.exim.gov/newsandevents/releases/ 2014/Asia-Broadcast-Satellite-Wins-Ex-Im-Bank-2014-Deal-of-the-Year.cfm Goff, R. (2014). The Twentieth Century and Beyond: A Global History, 7th Edition [VitalSouce bookshelf version]. Retrieved from http://online.vitalsource.com/books/0390249289 National Review. (2014, July 17). Hensarling's Intro to Ex-Im Hearing [Video file]. Retrieved from http://www.youtube.com/watch?v=rSXNuoPkqv4 Economic development was one of the main reasons for advancement of economy of the western world. Britain, Germany and United States were pioneer in this field and commanded a great respect by being strong and powerful. To have economic growth, capitalist of western nations were always in search of new places to expand and earn more profit for themselves. Weaker countries were obviously at a disadvantage of being invaded and poor trade. Desire to have control on supply of resources, is one of the factors that pushes a country to acquire rights over other countries. This could be water, oil or any other, which is necessary for keeping the industry alive. This is also one of reasons for continuing conflicts.



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Identify and explain one factor other than nationalism that led to the rise of identity in
Posted On: Nov. 9, 2017
Author: Shipra


Identify and explain one factor other than nationalism that led to the rise of identity in the Asian nations discussed. Richard Goff (2010) wrote, “They also exposed Asians to Western science, technology, political philosophy, and cultural norms, much of which could also be turned against the conquerors” (p. 71). Asian countries used the tools and knowledge provided by Western nations to build their economic and military might that would eventually aid them in their revolts and conquest for independence. Does a country need nationalism in order to be powerful? As we look at imperialism we should remember that as Western nations stretched out across the globe they did so to feed their massive industrial complexes from the natural resources farmed/mined from their colonies. These colonies maintained the parental identity of their Imperialist nation until independence. Until then, the host country’s raw materials fueled Western Empires and defined their role in the forging global society. Richard Goff (2010) writes, “By 1900 they had organized many areas of the world into large plantations, “agricultural factories” that poured out enormous quantities of foodstuffs. As a result, citizens in western Europe and the United States could sit at their dinner tables and enjoy Honduran bananas, Brazilian coffee, East Indian spices, Cuban sugar, Hawaiian pineapple, Ceylonese tea, and many other products from around the globe” (p. 24). Each of these resources had a huge impact on the world market and made each country a powerful asset in the global economy. Natural resources and as I mentioned earlier the tools and knowledge acquired from Western nations made these former colonies a powerful adversary and at times allies. What nationalist factors are most important to a county? This is a particularly hard question to ask, because each nation has a unique blend of cultures and peoples that have their own understanding of what they believe is important. You can look at the United States over the past few Presidential elections as social issues change. Since the recession in the mid 2000’s economics has been the dominating factor in almost all political battles. Another note that Goff (2010) made is, "Indian Buddhism was accepted enthusiastically by the Chinese in the early centuries of the Christian era" (p. 73). As in the Middle East, religion and cultural identities were dominating factors in that united Asian nations. This is evident in the Opium wars between China and Britain in 1839–1842 and again in 1858–1860 as the Chinese attempted to ban the use of opium in their culture, but the British had too much wealth tied into the trade of the drug (Goff, 2010, p. 73). Another key factor that links a nation is the strong desire for national security and self preservation from outside influences as we read about Japan’s military reforms during the Meiji Restoration. The expansion of western nations took place due the necessity of availing resources for their expanding industrial complexes and rising population. This is one of the reasons why western nations tried to colonize countries so that they could have control of supply or resources to feed their own people and industries. The knowledge transferred to colonies by western nations, in turn made them powerful in terms of technology and well being of their society. There are no common factors that define nationalism as each country has different culture of its own. Sometimes it is the religion, or common language or common habits that bond people of one country to another. The desire to have national security and self preservation is one of the most common factors for nationalism.



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Discuss how dominance from imperialist powers contributed to the rise of Asian
Posted On: Nov. 9, 2017
Author: Shipra


Week 1 discussion 1 Nationalism Discuss how dominance from imperialist powers contributed to the rise of Asian nations with reference to the readings for this week. Please identify and explain one factor other than nationalism that led to the rise of identity in the Asian nations discussed. Does country need nationalism in order to be powerful? What nationalist factors are most important to a country? The term nationalism normally refers to the outlook of members of a nation that they have when they are concerned about their national identity. For this, they take strong actions to achieve self determination and make sincere efforts to sustain it. The concept of national identity is defined in terms of common origin, ethnicity or cultural ties that they have. An individual involuntarily regards himself as a member of a nation he is associated with in terms of commonality of these factors. Nationalism is basically a shared state of mind or consciousness in which people of a particular nation believe that their primary duty and loyalty is towards the nation- state. Quite often, nationalism implies glorifies several national virtues and love of nation may be over emphasized and this may lead to international conflict. Nationalism is extremely important in forming bonds that hold modern nations together. It provides a lot of cohesiveness and order that is necessary for the existence of the modern nation-state. Asians revolted against the dominance of imperialist powers. Intellectuals and reformers like Mahatma Gandhi used non- violence as a tool for gaining freedom from the British. Nationalist factors such as religion or common language and some such bond are necessary to bring people together and make them unified. Many westerners believed that Christian duty was to be set as an example for education. With this intention, British educated Indians and Asians where they ruled with English language. The idea was accepted initially but later on people realized that it broke their bonds with native nationalism. This was one of the factors that bonded them. Week 1 discussion 2 Imperial economies How did imperialism in Asia affect the economies of Western countries? Is it possible for a strong country to trade with a weaker country without being in control of that weaker entity? What are some benefits for the strong country if it does not use force to control the economies of its weaker trading partners? If a nation’s population increases, needs natural resources, or outgrows its boundaries, does it have the right to acquire resources through imperialism? Why or why not? It is widely believed that western colonialism and imperialism greatly contributed to the civilizing of the backward people and also contributed to their living standards. This is especially true for Asian and African countries. These colonial powers set up schools and colleges, constructed roads and railways ,built canals and bridges ; provided law and order , improved sanitation and health , promoted trade and commerce and thus contributed to the welfare of the native people . However, in many scholars associate imperialism with exploitation, misery, poverty, cruelty, forced conversion, degradation and racial segregation of the native people. Imperialism is also considered as immoral and predatory. A strong country can definitely trade with a weaker country but in all probability, it would try to gain control of the weaker country. But if it does not use force to control the economies of its weaker trading partner, then a feeling of trust will be developed and the trade relations would flourish. When a nation’s population increases, its requirement would also increase. History has proved that countries have exploited weaker nations and made use of their resources for home country without contributing much to the progress of the weaker country. However such actions have proved to be counterproductive and resulted in revolt against them. It is a question of survival for the country that needs additional resources to take care of its growing population. The ideal situation would be to strike a deal with the nations that have these resources and take care of their needs. By adopting this approach, one would end up in a Win- Win situation that would prove to be beneficial for all. Reference Hobson J.A. (2011) Imperialism Cambridge University Press,



Homework help with economics The subject of economics is quite vast and requires some understanding of numbers
Posted On: Nov. 9, 2017
Author: Shipra


Homework help with economics The subject of economics is quite vast and requires some understanding of numbers and accounting. Many students find it boring and uninteresting. However, those who like to play with numbers simply love this subject. In economics, we learn about the accounting procedures and also about how the economy operates. The understanding of economy also helps us in dealing with our daily activities. It is a well known fact that we can not survive without accounts. In our day to day life, we have to deal with numbers, whether we are doing transactions at stores, shopping malls, paying our taxes, calculating our liabilities etc. Homework help in accounts can take the shape of solving various problems of accounting such as • Preparing balance sheet • Calculating break even point • Preparing different types of accounts statements • Calculation of profit and loss etc The work of accounts is spread in all areas of business and one can just not get away from it. In every walk of life, one has to face these problems and come up with solutions. For example preparing balance sheet would give an idea as to where the company stands Vis –a Vis its liabilities and assets. It also gives at a glance, information about the financial status of the company. By knowing the financial status of the company, the investors can take a decision about investing in the company. Similarly, vendors who are associated with the company can also decide if it is worthwhile dealing with the company Thus homework in economics has several uses and one should concentrate on learning the subject =========================== Homework helps with business management Management is a subject, which has vast applications. In a traditional way, management is defined as the art of getting the work done. It is a subject of interest to all the managers of a company, who have to deal with subordinates. Business management, as the name suggests, deals with managing the business. The subject being vast, it requires tremendous amount of help from tutors. The student would need to know about basic aspects / functions of management such as • Planning • Staffing • Organizing • Leading and • Controlling Each of these functions has their importance. While planning deals with preparing goals and objectives (both short term and long term) and also exploring various ways of achieving them, organizing deals with arranging of personnel to do the task. The people of a company are its resources and it is imperative to make sure that you get the right type of people to do the task. Prior to organizing, tasks of similar nature need to be defined and grouped together. This makes the job of organizing simpler. Staffing deals with selection and recruitment of people as well as providing them training to do their jobs effectively. Leading means providing direction and directing people to do the work. Controlling and planning go hand in hand as after planning, the managers have to monitor the performance and also take corrective actions accordingly. The need for corrective action can appear if the measured performance is deficient. In that case, the manager needs to know what went wrong with the process and devise methods in such a way that the processes are streamlined.



VIEW FILE
The economic developments of the nineteenth century pushed the West to the
Posted On: Nov. 8, 2017
Author: Shipra


The economic developments of the nineteenth century pushed the West to the forefront of the world’s economics. “The heart of this new global economy lay in western Europe, particularly in Great Britain and Germany, and in the United States” (Goff, 2014, p. 24). This was possible through many avenues. The West took over many countries including Asia to benefit from the raw material developed in it Asia as well as Africa and Latin America. The resurgence of imperialism was primarily due to economic consideration (Goff, 2014, p. 32). In their quest for economic growth and wealth, Western capitalists were continuously searching for new places to invest in or on a conquest for cheap labor (Goff, 2014, p. 32). I personally cannot think of one instance in history where a stronger country has been able to trade with a weaker country without using force especially as long as there where there is a financial gain. Weaker countries will always susceptible to being taken advantage of or even invaded by a stronger country. However, there is one possible way a stronger country could trade with a weaker country without controlling it as we have seen in recent news with the Ex-Im Bank who makes loans available to foreign countries in an effort to support and possibly assist American businesses using American taxpayers money. For instance, Asia Broadcast Satellite (ABS) received $471 million in loans from the Export-Import Bank of the United States (Ex-Im Bank) to assist ABS with the purchase of three geostationary satellites built by Space Systems/Loral (SS/L) and Boeing Satellite Systems (Export-Import Bank of the United States, 2014, par. 1). I don’t think any nation has the ‘right’ to take over any other nation for the reasons mentioned. However, many countries have done it and will continue to do it. Egypt took over Sudan for the sake of obtaining water rights over the Nile River. “Egypt claimed authority over the Sudan, which controlled the water supply of the Nile River” (Goff, 2014, p. 56). Export-Import Bank of the United States. (2014, April 14). Asia Broadcast Satellite Wins Ex-Im Bank 2014 Deal of the Year. Retrieved July 17, 2014, from http://www.exim.gov/newsandevents/releases/ 2014/Asia-Broadcast-Satellite-Wins-Ex-Im-Bank-2014-Deal-of-the-Year.cfm Goff, R. (2014). The Twentieth Century and Beyond: A Global History, 7th Edition [VitalSouce bookshelf version]. Retrieved from http://online.vitalsource.com/books/0390249289 National Review. (2014, July 17). Hensarling's Intro to Ex-Im Hearing [Video file]. Retrieved from http://www.youtube.com/watch?v=rSXNuoPkqv4 Economic development was one of the main reasons for advancement of economy of the western world. Britain, Germany and United States were pioneer in this field and commanded a great respect by being strong and powerful. To have economic growth, capitalist of western nations were always in search of new places to expand and earn more profit for themselves. Weaker countries were obviously at a disadvantage of being invaded and poor trade. Desire to have control on supply of resources, is one of the factors that pushes a country to acquire rights over other countries. This could be water, oil or any other, which is necessary for keeping the industry alive. This is also one of reasons for continuing conflicts.



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