...Economics for the Global Manager BUS610 AIU Abstract This paper’s objective is to discuss the differences between microeconomics and macroeconomics and examples of each. It will discuss a personal microeconomic example with the factors that contributed to the decision. It will also discuss an example of a macroeconomic phenomenon and the results of the decision. Economics for the Global Manager Microeconomics is an analysis of how individuals and firms will make themselves as successful as possible in a world of shortages and the penalty of those individual decisions for markets and the entire economy. It will study how individuals and firms make decisions and how the individual decisions will affect markets (Perloff, 2012). Macroeconomic is an analysis of the performance of the whole economic system. It can forecast the national income by studying the major economic factors that have predictable patterns or trends and the influence they have on one another. The factors used are prices, balance of payment positions, gross national product, and employment / unemployment (Macroeconomics, 2013). The difference between microeconomics and macroeconomics is clear. Microeconomics is the study of the individuals / firms markets. It looks at the allocations of resources and the prices of goods. Macroeconomics is a study of the whole economic system. It looks at gross national product and how it affects unemployment. A microeconomic phenomenon example is taking a looks...
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...Economics for the Global Manager BUS610 AIU Economics for the Global Manager 1) $1 US = .80 Euros Won: 1,000,000 Euros $ 800,000.00 Won in US $ If the lotto winnings were exchanged from Euros to US dollars right away, the winner would receive $800,000.00 US. 2) Irish Bank 4% 1 yr CD US Bank 2% 1 yr CD $ 1,040,000.00 After 1 yr in Irish Bank CD $ 832,000.00 Exchanged to US dollars at .80 Euro = $1 US $ 816,000.00 After 1 yr in US Bank CD If the lotto winnings were left in an Irish Bank CD for 1 year with a 4% rate, the winner would receive 1,040,000.00 Euros, and after being exchanges into US dollars at .80 Euro equaling $1 US the winner would receive $832,000.00 US. If the lotto winnings were taken to a US Bank CD for a 1 year with a 2% rate, the winner would receive $816,000.00 US. The winner would do better off in the Ireland Bank CD. 3) $1 US = .85 Euros in Irish Bank 4% 1 yr CD $ 1,040,000.00 After 1 yr in Irish Bank CD $ 850,000.00 US If the exchange rate changed to $1 US = .85 Euros and the lotto winning were left in the Irish Bank CD for 1 year with a 4% rate, the winner would receive $1,040,000.00 in the Irish Bank CD and exchanged to $850,000.00 US. The winner would do better off in the Ireland Bank CD. 4) Banks use “covered interest arbitrage” to protect themselves when they make international financial investments by borrowing currency then converting it to a second currency to invest...
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...Running Head: ECONOMICS FOR THE GLOBAL MANAGER Economics for the Global Manager BUS610 AIU Abstract This paper will discuss a U.S. multinational company named Time Warner that has revenues and cost. It will also discuss two operations under Time Warner operations that contribute to the profits. It will also discuss the means that the company uses to hedge against exchange rate risk. The paper will discuss the effectiveness of increase or decreasing the dollar’s exchange value on the company’s profitability. Economics for the Global Manager Introduction A global leader in media and entertainment, Time Warner Inc. has businesses in television networks, film, and TV entertainment and publishing. Time Warner Inc. uses its industry-leading operating scale and brand to create, package, and deliver high-quality content worldwide through multiple distribution outlets. The operating divisions of Time Warner Inc. are at the top of their categories including Warner Bros. Entertainment and Turner Broadcasting System which are measured by quality, popularity, and financial results. The union on Time Warner Inc. business and employees is based on the passion for storytelling and the commitment to gaining the competitive advantage (About Us, 2013). Revenues The programming services that are provided by Time Warner Inc. are subscription revenues based on contractual programming rates that are negotiated. The advertisements aired in a period are recognized...
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...Economics for the Global Manager BUS610 AIU Abstract An economic company has contracted out to establish the financial structure and potential actions of the Organization of Petroleum Exporting Countries, or OPEC. The purpose of this paper is to discuss the difference between a monopoly, an oligopoly, and a cartel along with examples of each. It will discuss the welfare effects of monopolies and oligopolies. It will discuss how game theory explains the relations of firms within oligopolies and cartels and the financial purpose of OPEC and the past five years of the oil prices. Economics for the Global Manager The Organization of Petroleum Exporting Countries, or OPEC, economic structure and future actions are predicated on a contract from an economic firm. The difference between a monopoly, an oligopoly, and a cartel are simple and examples of each will be given. The welfare effects of monopolies and oligopolies will be discussed. Game theory explains the relations of firms within oligopolies and cartels. The economic purpose of OPEC and what has happened to oil prices over the past five year will be discussed. Differences /Examples One seller of a good or service which has no close substitute and has substantial control over the price and protection from rivalry through a barrier to entry is a monopoly. An industry that has moderately diminutive number of firms, barriers to access, price searching behavior and mutual interdependence is an oligopoly. A cartel...
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...BUS610-1005A-01 - Economics for the Global Manager 13 November 2010 Introduction In economics, there are many things which take places. They include performance, organization, activities and decision making. Economics, like many other subjects in life, can be studied at different levels. These things can be conducted at individual level, or at a common level. What we mean by individual level is they may be by individual company, firm or an entity business person. The way the different entities behave may differ due to their different demands and supply. What we mean by decision made at a common level is that it looks at the entire activities and behavior of the entire economy. This may be at national level, regional level or even global level. Difference between microeconomics and macroeconomics Economics is primarily split into two major sections, this are the macroeconomics and the microeconomics. The two are so much connected. Adjustment in one affects the other. Both of them work together in the world of economy. The macroeconomics can be considered to be the summation of microeconomics. However there exists a difference in the two. We shall be discussing on the distinction between the two in the subsequent few paragraphs. To begin with, the naming denotes that there is a difference between macro and microeconomics.’ macro’ stands for large in Greek, while 'micro’ stands for small in Greek. This is to explain that microeconomics covers the...
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...Economics for the Global Manager BUS610 AIU Economics for the Global Manager The Heckscher-Ohlin theory explains that countries trade goods and services with each other because the countries vary in the accessibility of the factors of production such as more machines than workers or more workers than machines. A country will specialize in the production of goods for which it is fitting to produce. According to the theory, a higher standard-of-living will occur in the countries who participate (Why Trade, 2013). The Ricardian Theory, also known as the theory of comparative advantage, dominates the theory of international trade. The theory forms the basis of the claim that free trade operates to the advantage of every nation. It was built on the basis of the concept of labor value (Ricardo’s Theory, 2013). While the Ricardian model is simple, it assumes labor as a factor to production. The Heckscher-Olin model is more realistic because it considers two factors of production—capital and labor. Capital cannot move from country to country but is mobile across national borders, according to the Heckscher-Olin model, which is key to many results. With a world that has significant capital mobility, the Ricardian theory of trade is more useful than Hackscher-Olin (Mankiw, 2007). Despite that the US has an great quantity of capital, the exports are labor intensive while imports were capital intensive, according to Leontief. America has a superior economic organization and...
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...Evolving Corporate Culture Report Evolving Corporate Culture Report Diversification of environment is the key to the growth in today's competitive global marketplace. No longer can America's organizations and corporations hide behind their lack of cultural intelligence. All organizations that seek global market relevancy means embracing diversity in elements such as how they perceive, think, act and innovate. Thus, they take into consideration all the factors that affect strategic planning and management. Corporate management is the process of leading, administrating and directing a company. Business tasks often performed by corporate management might include strategic planning, and managing company resources and applying them with a focus on attaining the company’s objectives. Expansion of global business space of an organization or a company can lead to amid challenges in its operations hence the need for change in corporate strategic management. For instance, the Equity Bank in Kenya was a local corporation initially but in the recent years, it has expanded its scope to other countries and states e.g. Uganda, Tanzania, Rwanda and Democratic Republic of Congo (DRC). This has led to the need for changes in its corporate operations due to large scope. Thus, it is true that its expansion has resulted in various changes; these include; change in strategic management, change in business planning, change in controlling and financial management, change in marketing management...
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...Written Assignment 1 India’s Emergence as a Global Economic Leader Drivers of India’s Emergence in Globalization The most interesting part of India’s rise as an economic leader is that India was regarded to many countries as a weak regional power that held little potential for becoming a global leader. Global economic powers such as such as Japan, Germany, and the United States ignored India’s slow market and foreign policies that caused tensions in regards to negotiating trade until the late 1990’s. In 1991, India pursued to employ policies that would liberalize the country and open the door to foreign investment in an attempt to increase the country’s economic development (Feigenbaum, E.). Since the late 1990’s India has attracted a significant amount of foreign investment form other countries for its 1.) agricultural production 2.) industrial output and 3.) service output. Today India has succeeded in improving the country’s economic growth and is on track to become a top-five global economy by 2030 (Feigenbaum, E.). The Globalization of Markets influence on India’s Economy According to McGraw-Hill, “It has been argued for some time that the tastes and preferences of consumers in different nations are beginning to converge on some global norm, thereby helping to create a global market (McGraw-Hill, pg 8). This increase in global norms has played a significant key in the increased agricultural production in India. This global norm of similar tastes and preferences has led...
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...Topic 4 Managing The Environment What’s Your Global Perspective? • Parochialism - viewing the world solely through your own perspectives, leading to an inability to recognize differences between people. • Ethnocentric Attitude - the parochialistic belief that the best work approaches and practices are those of the home country. Other Global Perspectives • Polycentric Attitude - the view that the managers in the host country know the best work approaches and practices for running their business. • Geocentric Attitude - a world-oriented view that focuses on using the best approaches and people from around the globe. Understanding the Global Environment – Trading Alliances • European Union (EU) - a union of 27 European nations created as a unified economic and trade entity with the Euro as a single common currency. Exhibit 4-1 European Union Map Trading Alliances (cont.) • North American Free Trade Agreement (NAFTA) - an agreement among the Mexican, Canadian, and U.S. governments in which certain barriers to trade have been eliminated. Trading Allowances (cont.) • Association of Southeast Asian Nations (ASEAN) - A trading alliance of 10 Southeast Asian nations Exhibit 4-2 ASEAN Map Global Trade Mechanisms • World Trade Organization (WTO) - a global organization of 153 countries that deals with the rules of trade among nations. • International Monetary Fund (IMF) - an organization of 185 countries that promotes international monetary cooperation...
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...Subsidiary Emerging Economies Developed Economies Universalizers versus Particularists World-systems Diversity of Cultures Global Mindset III. HYPERGLOBALIZATION Conflicting Goals Environmental Consequences Social Consequences Extended Product Responsibility Subsidies and Preferential Treatment of the Corporation Lack of Accountability Misaligned Incentives Short-term Profits Money versus Spirituality Borderless Economy Liberalization Conflicting Goals Misaligned Incentives Short-term Solutions versus Long-Term Growth Protection of Natural Resources Lies, Damn Lies, & Statistics Standardization versus Adaptation Regional Focus New Paradigm IV. GLOBALIZATION AND STRATEGY Global versus Multidomestic Strategies Service Industry Common Global Misunderstandings Developing and Implementing a Global Strategy Organizational Culture V. GLOBALIZATION AND PUBLIC POLICY Approaches to Economic Organization Historical Review Determinants of Economic Organization Corporate Political Strategy International Environmental Policy Performance Requirements Global Political Economy International Financial Markets International Relations VI. Globalization as a Discourse Capitalist Globalization Democracy...
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... Chapter 1 Assessing the Environment—Political, Economic, Legal, Technological Chapter 2 Managing Interdependence: Social Responsibility and Ethics Assessing the Environment Political, Economic, Legal, Technological Outline Opening Profile: Economic Crisis Spreads Through Financial Globalization The Global Business Environment Globalization Globality and Emerging Markets Effects of Institutions on Global Trade Effects of Globalization on Corporations Regional Trading Blocs The European Union (EU) Asia Comparative Management in Focus: China's Economy Keeps on Chugging. The Americas Other Regions in the World The Russian Federation The Middle East Developing Economies The African Union The Globalization of Human Capital The Global Manager's Role The Political and Economic Environment Political Risk Political Risk Assessment Managing Political Risk Managing Terrorism Risk Economic Risk The Legal Environment Contract Law Other Regulatory Issues The Technological Environment Global E-Business Conclusion Summary of Key Points Discussion Questions Application Exercises Experiential Exercise Internet Resources Case Study: Indian BPOs Waking Up to the Philippines Opportunity? Management Focus: Intel Brings Changes to Vietnam's Economy and Culture Information Technology OBJECTIVES: 1. To understand the global business environment and how it affects the strategic and operational decisions which managers must...
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...differences. 4- A reexamination of motivation relative to Hofstede’s dimensions of power distance, uncertainty avoidance, individualism, and masculinity provides another perspective on the cultural contexts that can influence motivational structures. 5- Incentives and reward systems must be designed to reflect the motivational structure and relative cultural emphasis on five categories of rewards: financial, social status, job content, career, and professional. S9: HRM focus on international – Chap 10: Developing a Global Management Cadre Key points 1- Expatriate career management necessitates plans for retention of expatriates during and after their assignments. Support programs for expatriates should include information from and contact with the home organization, as well as career guidance and support after the overseas assignment. 2- The expatriate ‘spouse plays a crucial role in the potential retention and effectiveness of the manager in host...
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...In times of economic crisis, managers are continuously looking for ways to improve their productivity and organizational environment in order to sustain the business or company. Retention, however, has become a major obstruction facing the leadership. What exactly is causing this sudden changes are a number of issues contributing to this movement, namely the global trends.According to Macmillan( 2011) he says Global trends are changes that takes place world over that affect businesses and are beyond the control of managers. The existence of macroeconomics factors in the economy has caused inequality in the way the businesses are run. Macroeconomics factors are factors that have logical relevance to an economy at regional or national level and affects a large population rather than a few individuals. Macroeconomic factors such as economic output, unemployment, inflation, savings and investment are key indicators of economic performance and are closely monitored by governments, businesses and managers. These factors can be best summarized with PESTLES Analysis that is technological, political, social, economical, environmental and legal policies governing each country. Conklin (2011) says Forces outside the firm’s traditional boundaries are of great importance in determining the firm’s success as these forces of the environment of business are different world over and over time.He also states that these factors will continuosly confron the firms with new issues that require...
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...SUMMARY CHAPTER 4 MANAGING IN GLOBAL ENVIRONMENT WHAT IS THE GLOBAL ENVIRONMENT? • Global organizations • Organizations that operate and compete in more than one country • Operating in the global environment is uncertain and unpredictable • Global environment • Set of global forces and conditions that operate beyond an organization’s boundaries but affect a manager’s ability to acquire and utilize resources • Task environment: Set of forces and conditions that originate with suppliers, distributors, customers, and competitors and affect an organization’s ability to obtain inputs and dispose of its outputs because they influence managers daily • General environment: Wide-ranging global, economic, technological, sociocultural, demographic, political, and legal forces that affect an organization and its task environment The Task Environment • Actions of suppliers, distributors, customers, and competitors: • Affect a manager’s ability to obtain resources and dispose of outputs • Have a significant impact on short-term decision making • Suppliers: Individuals and organizations that provide an organization with the input resources that it needs to produce goods and services • Raw materials, component parts, labor (employees) • Relationships with suppliers can be difficult due to materials shortages, unions, and lack of substitutes • Suppliers that are the sole source of a...
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...Sustainable Business Tammy T. Maden BA 317 International Management 21 April 2013 Instructor Lee Abstract Sustainability combines the principles of economic growth, environmental stewardship, governance, and social accountability. This Compare and Contrast analysis will introduce Managing Partner, David Blood's views on The Case of Sustainable Business. This review will include a brief description of what an International Manager may face in the business world and the duties of a successful International Manager. You will gain the knowledge of David's view, the International Manager, and how they relate. While corporate sustainability is not new, companies still fail to apply sustainability principals at the heart of the business. It should become part of the company's fabric and later an essential support for growth. David Blood, Managing Partner of Generation Investment Management, believes that putting together fundamental equity analysis and sustainability research throughout the process is a reasonable way to invest and provide superior returns to clients (Gresham College Lecture, 2008). He defines sustainability in both investing and business. I chose this video because it is about our future and how businesses could save the quality of life; this is what matters right now. It is very important in today's world because according to the United States Census Bureau, the population of the world as of this second is 7,080,247,340, in which one birth takes place...
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