...Black Market A market that operates outside of the legal system where either legal or illegal goods are sold at illegal prices or terms is known as the black market. These types of transactions normally occur when people are trying to avoid taxes or government price controls. The black market is also known for the buying and selling of illegal drugs, firearms, and stolen goods. When the demand is strong enough and gains from the trade can be had markets will develop and exchanges will occur in spite of the restrictions (Gwartney, Stroup, Sobel, & Macpherson, 2013). The Prices in the black market are determined by supply and demand just like in other markets. In some cases prices in the black market can be more costly to the consumer than the legal market. This is because the supplier takes on much more of a risk by selling these black market items and could be arrested, pay expensive fines, and even going to prison. On the other hand there are also times when it may be cheaper to purchase items in the black market; this is because the supplier does not have to pay things like taxes or the production costs on items. In August of this year black market distribution of Olympic tickets was shut down. Over 20,000 people would be denied seats into the venue because they had purchased tickets on the black market. The London Olympic tickets were only valid when purchased through authorized outlets. In this situation an unauthorized ticket trader named Euroteam was selling the...
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...Black Markets – Iran’s Smugglers Feel the Squeeze A recent article in the Businessweek August 6 – 12, 2012 spells out an issue that Iranian’s Black Market smugglers are facing; the sanctions on imports and higher fuel prices. This is bad news for smugglers since it will affect their profit. The majority of the Iranian fishermen depend on the small profit from their illegal profession. Most have a dual profession as smugglers by night and fishermen by day. The demand is high for electronic equipment and even food on the Black Market. Items such as cell phones, flat-screen televisions bring in a minimal profit for these smugglers. However, sanctions that are being imposed, and high fuel prices are digging into the little profit that the smugglers are netting. In addition to the sanctions, the smuggled goods are also diminishing the jobs in Iran. According to the Customs and Excise Department every $1 billion in smuggled goods, costs Iran 50K to 60K in jobs (Businessweek, P15). There is an even higher cost to the smugglers; they are risking their lives to bring over these items illegally. Over 80 percent of the electronics in Iran are smuggled into the country. This issue is creating an upward shift, and the cost of basic items is rising due to the lost in value of their currency. Based on the Demand analysis, the increased sanctions are causing a downward shift for the black market to smuggle. Another downward shift is the profit that the smugglers are making...
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...Times are hard and they will only get harder as more and more workers continue losing their jobs after the crash of the stock market, better known as Black Tuesday. With more and more men finding themselves unemployed and not able to put food on the table, countless of food kitchens have begun to pop up around the city to aid these people in times of need. Times are hard and they will only get harder as more and more workers continue losing their jobs after the crash of the stock market, better known as Black Tuesday. With more and more men finding themselves unemployed and not able to put food on the table, countless of food kitchens have begun to pop up around the city to aid these people in times of need. However as the demand for food and...
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...All around the world people have acquired a great desperation that they are willing to be seduced to the exploitation of the black market organ donation system. There have also been reports of children being kidnapped and killed for their organs in South America. All countries should not allow the black markets organs donations because they take advantage of those people who are in desperate need for an organ, they practice surgeries in unsanitary environments with unprofessional doctors, and they sometimes perform surgeries without the consent of the person. First of all, they take advantage of those people who are in desperate need for an organ. The trade has risen to such a level that around 10,000 black market operations take place annually...
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...Extracts: Normal hair needs wholesome nourishment. New Sunsilk with Bio Protein extracted from Vegetable milk has nutrients that deeply penetrate each hair strand, to nourish it leaving hair strong and beautiful. ¨ Black Sunsilk with Melanin from Plant Extracts: oleObject2 Dull hair needs a rich black shine. New Sunsilk with Melanin extracted from plants serves this purpose very effectively. It helps in the growth and retention of the black color of hair, giving it a rich black shine. . ¨ Green Sunsilk with Fruitamins Vitamins from fruit Extracts: Thin and limp hair needs extra body and volume. New sunsilk with Fruitamins has natural extracts from fruit that contains Vitamins. These vitamins help in giving extra body, shine and amazing manageability to the thinning and lifeless hair. ¨ Pink Sunsilk with yoghurt proteins : Dry hair needs wholesome conditioning, extra shine and style. New Sunsilk with yoghurt proteins makes the dry hair full of life. Its especial ingredients moisturize each hair right to its tips leaving it shiny and beautiful. Sunsilk is distributed in different countries including Philippines and Brazil. It started in one country until the company decided to reach other countries to penetrate big market. They first do the market segmentation which knowing and dividing the right segments or target place where the products put into. The company Unilever uses this step to know where they can place their products because it is very costly if they...
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...Black Market The black market is not a physical place, but rather an economic activity in which merchandise and/or services are bought and sold illegally. Also called the “underground market,” this market gets its name from the activity it conducts out of sight and often outside the sight of law enforcement. The black market or buying and selling of products and services take place often in plain sight. A black economy is a highly organized and a vast market where the regular taxation rules and norms of trade are not adhered to. The variety of goods traded in the black market is enormous and the most commonly traded black market items are weapons, drugs and alcohol at the least. Many factors can make a transaction illegal, thus qualifying it as a black market transaction. The good or service itself may be illegal, such as human trafficking, alcohol, illicit drugs, weapons, or prostitution. One prime example of an illegal market created because of an illegal product was the result of prohibition. After alcohol was outlawed in the U.S. in 1919, it was smuggled into the country and sold at speakeasies and private bars. The result was an era of organized crime and an estimated 500 million US dollars (USD) in lost tax revenues annually. When the demand is strong and gains from trade can be had, markets will develop and exchanges will occur in spite of the restrictions (pg.77). The price of certain goods sold in a black market could be lower than the legal market price. This...
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... The consumer market is really a complex area. I was surprised to learn that the tradesmen segment for Black and Decker is solely lacking. Whatever steps the company will take to offset the consumer market, it should be effective and done with careful consideration. It is almost impossible for me to imagine just the organization can continually sell tradesmen products. The competition appears to be gaining in the marketplace. I see less of Black and Decker products in the store than in recent years. Do you believe that the company is thinking about discontinuation of consumer products because of the fierce competition? According to Kohler and Keller (2012), understanding customer needs in new ways is the life blood of most manufacturing organizations. Since businesses use teams of people and analytical tools when procuring items for business applications, would to say that most business acquisitions take longer (Perkins, 2014)? In the case of acquisition of farm equipment would this be the case? Black and Decker manufactures a large number of heavy duty products made just for farming. Dump carts, spreaders, blade aerators, tine dethatchers, tow rollers, cultivators, tillers and soil sharks are products which are costly. Is it possible that a farmer would pay cash for any of these products? According to Echambadi (2014), it is not wise to strategy for an organization to attempt to satisfy every segment of the marketplace. Do you believe that Black and Decker should...
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...a. What will happen to existing supply avenues? Marijuana is mostly sold on the black market, except in states that have legalized the drug. In those states most have stores with specialized licenses, much like a permit to sell alcohol. The supply avenues will change from secret black markets to a farm economy trade system. b. Will legalization significantly change demand? How? Since marijuana use has yet to recede under prohibition, like alcohol did, you can expect a slight change in demand but not a huge jump. 7.6 million frequent users will not have to rely on black market trade and will be able to purchase legally. The 23.9 regular users will also have a place of business to buy. Marijuana market watchers expect there to be an uptick as states legalize but then a slight decline as the novelty will wear off. c. Would one expect prices to change significantly? How? Prices may changes slightly. At this time it costs approximately $15 a gram and $2500 for a pound of marijuana, according the Dan Schneider’s article Pot Economics. If the United States were to open the market for export they could expect a price drop due to competing markets that are already wide open in Uruguay and Mexico. Uruguay has an $1 per gram price. Exporting costs would have to include packaging and freight costs. d. What would be the costs and benefits to governments, both in changes in enforcement requirements and in potential tax revenue? There is a potential taxes revenue base of $500...
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...communication strategy, which is what conveys the promotional theme to consumers abroad, allowing them to form perceptions about the product, spelling out, in turn, the quantitative and qualitative sales for the manufacturers. Keegan has identified five major product communication strategies, international marketers can chose from to convey the message to customers in different foreign markets. Companies can pursue three strategies to penetrate foreign markets. Some firms will simply adopt the same product or communication strategy used in their home market. This is extension. Other companies prefer to adapt their strategy to the local marketplace. This strategy of adaptation enables the firm to cater to the needs and wants of its foreign customers. A third alternative is to adopt an invention strategy, where products are designed from scratch for the international marketplace. These three basic strategies can be extended into five strategic options which are as follows: Strategic Option 1: Product and Communications Extension – Dual Extension: At one extreme, a company might choose to market a standardized product using a uniform communications strategy. Early entrants in the international arena will often opt for this approach. Also, small companies with few resources typically prefer it. For them, the potential pay-offs of customized products or advertising campaigns usually do not justify the costs of adaptation. Dual extension might also work when the company targets...
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...producer and supplier in 1990s. In 1984, there was nearly 300 local producers in China market, most of which were producing poor quality goods. However, customers were willing to pay more for higher-quality products and reliable service. This need created an advantage for differentiation. In Chinese market, demand was high. Haier being able to read customer need properly, focused on Product Quality, After-Sale Services and Brand Building. While there was oversupply in the market, with product differentiation Haier was able to raise its prices. Their target was to be a first-class brand. In early 1990s, while the demand was exceeding the supply, they decided to set up a large scale production. In 1991, they focused on Diversification on product range. They acquired an AC and a Freezer company, which were performing poor and turned around these companies into profitability quite soon with the right restructuring and strategy. There was a government pressure on Haier to take over poor performing firms ( i.e. in 1993, acquisition of Red Star). In 1992 the Company needed additional capital to invest in land and construction, but did not get subsidied due to government restrictions.As an alternative solution the Company undertook an IPO and went public with its 43.7% refrigerators division on Shangai Stock ExChange in 1993. In 1997, the Company added TV and telecommunication equipment (“black goods”) into its product mix, with the acquisition of Yellow Mountain electronics. By...
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...ASSESSMENT 7 “…the division between the ‘haves’, who own houses, and the ‘have-nots’, who do not, has been one of the most prominent market failures in the UK housing market” (Extract C, lines 10 –12). In the light of this statement, evaluate the case for and the case against government intervention in the housing market in order to correct or to reduce market failures in such a market. (25) Market failure occurs whenever the market mechanism or price mechanism performs badly or unsatisfactorily, or fails to perform at all. This is causing an inequality within the distribution of wealth within the UK and therefore the consumers on higher income are buying more extravagant housing causing a higher market price for housing. One way in which the government could intervene is through subsidies from the government. The government can provide subsidies to the suppliers of the housing market to increase the output produced. As shown on the diagram a subsidy will shift the supply curve to the left. This is because the quantity of houses supplied will increase from Q1 to Q2 and then price would also decrease from P1 to P2. This will make it more affordable for the have not’s to purchase homes. The disadvantage of subsidies is the opportunity cost; the money provided by the government for housing could be spent elsewhere for example on the NHS in the UK as this causes billions of pounds a year. Another strategy the government could use is to have a maximum price on rented accommodation...
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...marketing strategy be simultaneously standardized and adapted to export markets. Moreover, it reveals that this strategy is more appropriate than the contingency approach, considering the case of a firm with very little expression in the global marketplace. A single case-study based on the export venture of Renova Black toilet paper was developed. In addition to the analysis of secondary data, interviews were conducted with 3 Renova managers, 3 trade customers and 10 consumers. Findings suggest that an international marketing strategy simultaneously standardized and adapted to new export markets forms a good fit with the existence of limited resources, light structure and centralized decision making possible due to firms’ reduced size. This study presents important insights for managers of small players in the global marketplace attempting to boost the internationalization process. It also broadens our understanding on the standardization versus adaptation debate using a fresh perspective. Keywords: International Marketing Strategy, Exports, Standardization, Adaptation. 1. Introduction The concept of Blue Ocean Strategy (Kim and Mauborgne, 2005) refers to value innovation as the solution for creating new market space through the simultaneous pursuit of differentiation and low cost strategies. However, a Blue Ocean Strategy implies assuming high risks as the size of the new market demand cannot be predicted (Lages, 2012). In order to mitigate this risk...
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...A complete understanding of mental models is essential in comprehending the concepts and ideas discussed in Krietner chapters 3 and 4. Mental models help individuals have a specific understanding of reality in relation to specific situations. With the different social, political and economic situations that dominate the world of management it is easy for individuals to develop their own mental models to help them cope with different situations. For example, when discussing political situations one individual may think of the election as a race between a tortoise and a hare or a clash of titans. Whatever the perception is the individual has made his or her own interpretation of the situation as to come to a complete understanding of the course of events that our taking place. As the world continues to advance in different areas individuals will continue to develop specific mental models to help them deal with different subjects. For example, as the world moves toward more globalization individuals will have to put aside most of their mental models in an attempt to move rapidly forward. Mental Models are of inherent value in understanding the way some individuals may think about developing third world cultures. Mental models may also be of significant value when major corporations send executives to foreign countries to set up new businesses. These executives must adapt to the culture and the language in order to promote their products and services. At times...
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...base. The goal is to reach a broader customer base which will include urban wear, young adults and full figured women. As a small business we may face many issues and challenges as we move forward towards our goals. Being able to penetrate several markets will be difficult however, it will be possible. The success of the Unique Boutique will require growth in customer value as well as spike the interest of the younger market with high fashion designs at a great price. Being a small fish in a big ocean requires reaching a market that has not shown prior interest. New York City is the center of the fashion industry with more competition than we can imagine. The Unique Boutique will have to live up to its name and penetrate these markets with attitude. Proactivity and creativity will have to be the initial steps in the strategy. Being a small business has its benefits and being creative is one of those benefits. A creative mind will strive in the world of uniqueness resulting is growth and sales. A competitive edge over the current market is required to grab the new targeted audience. Competition is good and provides information on what to do as well as what not to do in the market place. Management will need to explore the market and analyze the competition performance from the last few years. Finding the companies that are not meeting customer needs and desires will give a customer base and...
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...Apple Lisa which was released in 1983 and was the first computer to have a mouse and a graphical user interface (Apple Inc…, 2015). The first Macintosh computer came in 1984 however it was not successful due to the lack of market share to compete with IBM (Apple Inc…, 2015). After several years of financial losses, Steve Jobs launched a product redesign in 1997 that led to the iMac in 1998 (Apple Inc…, 2015). During the 2000s, Apple began to focus on portal MP3 devices such as the iPod and mobile phones like the iPhone. Then Apple began a new line of business in the music industry with iTunes. Today, Apple Inc. is a major competitor within the computer and consumer electronics industry. Apple Inc. is headquartered in Cupertino, California and has 76,000 employee based in the United States. Apple Inc. has directly and indirectly created and supported 1.9 million jobs in the United States (Israel & Johnson, 2016). Apple Inc. has stores located in 18 countries including the United States (Apple Inc., 2016). After a brief overview and history of Apple Inc., this critical analysis will take a look at the industry in which it operates, apply economic theories to create profit maximization, analyze the economic implications of operating in global markets, assess the impact of ethical and regulatory considerations, analyze the macroeconomic environment, analyze the microeconomic environment, and finally address recommendations for the long-term output of the firm. Apple Inc...
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