...With the introduction of currency, cultures began to implement negative-reciprocity into their economic systems and social organizations. Instead of bartering and creating social bonds, people try to get the most out of a trade/social interaction, while giving up the least of their possessions/money. Different cultures have developed means of using negative reciprocity to their benefit. Many societies have used negative reciprocity in their trade and sharing systems to both strengthen and fight existing relationships as well as ward off foreigners. Negative reciprocity is apparent in the fraternal polyandry that is practiced in Tibetan societies of North Nepal. Lee Cronk’s Reciprocity and the Power of Giving and Melvyn C. Goldstein’s Polyandry: When Brothers Take a Wife support the argument that the different tribes’ methods of integrating negative reciprocity into their everyday lives is both practical and beneficial to the preservation of their cultures. Negative reciprocity is evident in Cronk’s passage when he initially describes that there are “strings attached” (this specific example is about the !Kung people, but is applicable to the other tribes) to exchanges when they take place (140). The ‘strings’ are the very essence of the trade between Indians and Indians as well as Indians and colonists, and upon learning this, the colonists understood the deeper meaning of trade amongst other cultures. The ‘strings’ in other cultures go further than those of our own. One may use...
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...POLITECNICO DI MILANO Master of Science in Management, Economics and Industrial Engineering [pic] Management Control Systems Prof. Paolo Maccarrone Second Assignment: Superior Manufacturing Company Analysis Group Ferrario Andrea 709407 Rognoni Susanna 720851 Taiana Marco 672497 Trifonov Angel 720619 A.Y. 2007/2008 Contents Q1.Do you agree with Water’s decision to keep product 103? 3 Analysis of the P&L statement of 31 December 2004 3 Sensitivity analysis 5 Strategic scenarios 9 Q2. Should Superior lower as of January 1, 2006 its price of product 101? To what price? 11 Q3. Why did Superior improve profitability during the period January 1 to June 30, 2005? How useful was the data in exhibit 4 for the purpose of this analysis? 14 Revenues 15 Costs 15 Q4. Why is it important that Superior has an effective cost system? What is your overall appraisal of the company’s cost system … 19 Why is it important that Superior has an effective cost system? 19 What is your overall appraisal of the company’s cost system and its use in report to management? 19 List the strengths and weaknesses...
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...reports? 19 Initial Analysis of Superior Manufacturing Company Case :- 1) After death of Richard Harvey (2004), founder and president of Superior Manufacturing Company (SMC), Paul Harvey took over. Paul Harvey had only 4 years of experience. Soon followed serious management problems because of some bad decisions made by Paul Harvey. The income statement of 2004 reflected net loss of $0.68million in a good business year. To solve this problem Herbert Waters was brought over as General Manager of SMC. 2) SMC manufactured 3 different products namely 101, 102, 103 and was among the top 8 companies in the industry. Samra Company was market leader and announced price annually and other follow. Due to no product differentiation price cut was not an option. The June 2004 market share of SMC product wise is given below; Products 101 102 103 Market share 12% 8% 10% Price per 100lbs 24.5 25.8 27.5 3) SMC had a dedicated factory concept, where each factory produces only one product. Each product factory was fully horizontally integrated. SMC all plants operated below...
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...Analysis Group Ferrario Andrea Rognoni Susanna Taiana Marco Trifonov Angel A.Y. 2007/2008 Q1.Based on the 2004 statement of profit and loss data (Exhibits 1 and 2), do you agree with Water’s decision to keep product 103? In order to support an opinion on the side we decided to analyze all the probable scenarios. If the company management decided that it is better to stop the production of product 103, they could do this in one of the following manners: 1. Stop production and any business related to product 103. 2. Stop production but outsource it to another company and continue the distribution. 3. Stop production and use the available production capacity in order to produce product 101 or 102. If the company management decided that it is better to continue the production of product 103, they could do this in one of the following manners: 1. Maintain the same volume of production. 2. Increase the volume of production. 3. Lower the volume of production. 4. Substitute 102 production capacity with 103 if the 103 facility has not sufficient capacity to exploit economies of scale Analysis of the P&L statement of 31 December 2004 If we have a look at the P&L statement for the 2004 it is obvious that product 103 is bringing substantial losses. The calculations show that there is a loss of 2.16$ per unit sold which overall totals for the amount sold to at about 2.209 million $. A closer look...
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...THE CRUDE OIL INDUSTRY Crude oil industry is the largest industry in the world in terms of dollar value. Crude oil or petroleum satisfies almost 33.6% of the world energy needs. It is also the most traded energy resource in the world. The demand side factors are guided by the energy needs of the world which is still dependent on non-renewable sources, while supply is determined by oil rich countries. The prices are fluctuating owing to influence of the spot market. Trends in Demand An above average GDP growth in non OECD countries has significantly pushed the demand for all types of energy in an upward direction. Where the consumption of energy by OECD countries has remained steady with the growth rate of 0.9%, the non-OECD nation’s growth rate reached 5.5% in 2010. Even though there has been a significant upsurge in all types of energy, oil still remains the world’s leading fuel. In the current scenario, where the global oil consumption is surging, the production is unable to match such high growth. In the year 2011, the demand grew by 3.1% whereas the increase in supply was only for 2.1%, attributing to the implementation of OPEC production interruptions since late 2008. Therefore the unmatched demand and supply resulted into a consequent decrease in inventories. Demand for oil is relatively inelastic with respect to income in the advanced, OECD economies. However, income elasticity of demand (YED) in developing economies like China and India is likely to be higher...
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...Max Havelaar France www.maxhavelaarfrance.org The Fairtrade certification impact on small producers: Conclusions of the first studies, April 2009 Synthèse Max Havelaar France : Karine Laroche & Barbara Guittard. From studies carried out by : OREADE BRECHE (République Dominicaine : Conacado et Banelino ; Pérou : Cocla), AVSF (Equateur : Fapecafes ; Pérou : Apromalpi ; Bolivie : Coopératives des Yungas). Synthèse on the impact of Fairtrade Certification FLO PREAMBULE A reflective work around the impact of FTC (Fairtrade Certification)’s activities, on the main group of beneficiaries, has been initiated in 2005 by Max Havelaar France and its federation FLO. Indeed, the substantial work done until now around guarantee (referring to the guarantee of the means (standards, prices, etc.) and the direct results of those means (verified through certification, ie: whether volumes sold have been paid at the defined levels, to democratic organisations, etc.)) only gave an incomplete overview of the sustainable and substantial changes brought by the FTC to organisations and its members. The action taken of measuring the FTC’s impact is thus aiming at better understanding the mechanisms and the reality of the FTC’s impact, in order to 1/ being able to explain it and to have more solid information, and 2/ being able to improve its tools and interventions. Several studies have been carried out in parallel to the elaboration and to the improvement of a common methodological frame...
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...decide to get into organic farming for personal health related reasons. For example, if the farmer is on a strict organic diet, he or she may prefer to enter the organic market in order to share the benefits with their consumers. An economic reason why a farmer may choose to enter the organic farming market is for the supplier surplus. Organic farmers tend to follow a differentiation market strategy rather than a cost leadership strategy. Therefore, their products usually warrant a higher price point. Consumers tend to pay more for a good that they perceive is higher in quality. Although the higher price point is an incentive to enter the organic market, higher profits are not guaranteed. The cost of transitioning from conventional farming to organic farming could be rough for a smaller firm. When a farmer leaves the conventional market to enter the organic market he gives up the opportunity to sell a higher volume of products at a lower price point. The trade-off is whether to sell a higher volume at a lower price or to sell to a specific market for a higher price. Organic farmers also spend more time on hand weeding crops than non-organic farmers; this time could be spent elsewhere in the firm’s value chain. Production cost—including the cost of the organic certification fee—is slightly higher compared to non-organic farms. Therefore, profit margins may take a hit in the short-term. Organic farmers can combine resources to create wealth is two ways. One way is through community...
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...QUESTION: Market economy is the one in which decisions about the allocation and use of resources by producers and consumers are primarily through a system of markets and prices (Hodgetts, R and Smart, T.L.). According to O’Connor (1988) a market economy is an economic system where resources are largely owned by private individuals and firms who seek to make profits. In a market economy there is operation of free markets of demand and supply to determine the market equilibrium. Also there is very little or no government intervention in the economy. It is also called the Laissez faire. McConnell, Brue and Flynn define a command economy as the one in which government owns most property resources and economic decisions occurs through the central economic plan. In a command economy there is no private participation in economic activities meaning that the government solves the basic economic problems of scarcity. The basic economic questions are; how to produce, what to produce, in what quantities and for whom to produce. In a market economy, these questions are answered by certain individuals who own the factors of production that is land, labour and capital in the private sector. The question of what to produce is answered by demand in this economy (market economy) since the individuals have the objective of profit maximisation, hence they will produce the commodity that consumers are willing and able to buy. After deciding on what to produce, there is need for knowing the quantities...
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...are oil futures and options. The price of oil can be significantly affected by political factors, as well as environmental factors such as natural disasters. Other influencing factors include demand such as that driven by modernizing populations in India and China, as well as supply - that is, production rates in oil producing countries. In addition, technological advances in alternative energies may also affect the price of oil. In short, oil trading can involve significant price fluctuations making it an exciting and potentially profitable market. Oil prices also affect currency trading. Sometimes, a weakened US dollar may cause a rise in the price of oil. Other currencies that rely on commodity prices, such as CAD can also be affected by changes in oil prices. In this report we are analyzing the demand and supply , price factors of crude oil. INTRODUCTION: Until as recently as the early 1970s, the main channel for oil supply was the integrated system of the major oil companies. Each company had its own source of crude oil supply as well as the capacity to refine it. Petroleum products outside this closed system, either released from it due to imbalances between refinery output and market demand, or refined independently of it, constituted the basis for spot trading. The volume of spot trading was limited to around5 % of the total oil trade, while the remaining 95% was based on contracts specifying prices...
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...Important Terms & Definitions | H2 Economics IMPORTANT TERMS & DEFINITIONS [ECONOMICS] Microeconomics 1. Introduction to Economics Scarcity Situation where limited resources available unable to satisfy unlimited human wants Opportunity Cost (OC) Cost of any activity measured in terms of next best alternative forgone Production Possibility Curve (PPC) Shows all different maximum attainable combinations of goods & services produced when all available resources are used efficiently at given state of technology Law of Increasing Opportunity Cost As more of a good is produced, more of another good has to be sacrificed in production Comparative Advantage When one can perform an activity at a lower opportunity cost than anyone else Law of Comparative Advantage Trade can benefit countries if they specialize in goods in which they have a comparative advantage 2. Demand & Supply Law of Demand Inverse relationship exists between price of good and quantity demanded of good, ceteris paribus Law of Supply Direct relationship exists between price of good and quantity supplied of good, ceteris paribus Price Elasticity of Demand (PED) Degree of responsiveness of quantity demanded of good to a change in its own price, ceteris paribus Income Elasticity of Demand (YED) Degree of responsiveness of demand to a change in income of consumers, ceteris paribus Cross Elasticity of Demand (XED) Degree of responsiveness...
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...Question Compare & contrast a market economy and a planned economy in terms of the following; provision of public goods, production and consumption of merit and demerit goods, consumer sovereignty and equity in income distribution. (30marks). A market economy is an economic system where the factors of production, are privately owned, consumers and producers are motivated by self interest, the level of competition in the markets is very high and resources are allocated through the price mechanism. The definition is supported by Lipsey (1992) who also state that decisions about resources allocation are made without any central direction but instead as a result of innumerable independent decision taken by individual producers & consumers hence in the market economy the individuals or market makes the ultimate decision in allocation of resources. Whereas the planned economy is one in which the coordination of economic activity so essential to the viability and functioning of a complex social economy is undertaken through administrative means commands, directives, targets and regulations rather than by market mechanism. The dictionary.com defined this economic system as a socialist economic system in which production and distribution of goods and services are controlled by the government and industry is mostly publicly owned. Provision of public goods These are goods that are non rivalry in consumption and non excludability as alluded by Stanlake (2000) He also added...
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...Market Income, Actual Income and Income Distribution in Indonesia 1 Kunta W.D. Nugraha PhD Candidate in Economics, Faculty of Business and Government, University of Canberra, Australia (Kunta.Nugraha@canberra.edu.au) Phil Lewis Professor of Economics, Centre for Labour Market Research, University of Canberra, Australia (Phil.Lewis@canberra.edu.au) ABSTRACT Even though Indonesia has experienced high economic growth around 5 percent since 2000, many people are still living in poverty. To be able to effectively use taxes as a redistribution tool, it is important to understand which segments of the population are most affected by government taxation. This paper evaluates household income, income tax and income distribution in Indonesia. Income distribution is measured by both the Gini coefficient and dispersion of household income groups. A broad definition of household income, including both cash and non-cash income is used to obtain more an accurate measure of actual income affecting living standards. Household income is defined as market income, net income and actual income. Transfer in-kind and consumption of own production are added on household income to obtain actual income. We find that income distribution improves after accounting for income tax and after addition of transfer in-kind and consumption of own production in household income. The results suggest that using only market income to measure income distribution in Indonesia is misleading. The results are...
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...INDIVIDUAL ASSIGNMENT Q1. What is meant by the term resources? What are the four factors of production and explain the factors incomes associated with each factor of production (20 marks) a) Resources means being able to produce something that can be a good or service. For e.g. the sun, trees, natural gas, materials, staff. b) The four factors of production are land, labor, capital and entrepreneurship. (i) Land- is considered the natural resources or raw materials we find on the earths surface to produce a good or service. Such as forest, coal, copper, oil. The reward earned b land resources is rent. (ii) Labor- is the time and effort contributed by employees to the production of goods and services. For e.g. the waitress who brings your food...
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...outflows make up for the consumption variable (Folbre, 2009). In today’s world, living standards are assessed by looking at either of the two measures; however, most people agree that looking at living standards from the consumption angle gives us a better, more accurate feel for disparities. That being said, we recognize that these two measures do not provide a full picture: we look at resource inflows and outflows to and from households; however, we do not take into account what actually happens within the household. In recent years, more and more economists have shifted their attention to those non-market factors that directly impact standard of living among the population. In the following paragraphs, we will first examine how economic inequality is currently measured and the limitations underlying those methods. We will then elaborate on the additional parameters (household production and leisure) and their importance in better accounting for household wealth. Last, we will discuss the differences between cross-country and within-country inequalities and the role of globalization on economic inequality. When trying to assess household living standards and subsequent utility, economists currently look at what goes into the household or what goes out of it in order to carry their economic distribution...
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...firm’s coal interests include the Curragh mine in Queensland’s Bowen Basin, the Premier Coal mine at Collie in Western Australia’s south west, and a 40 per cent interest in the Bengalla mine in the Hunter Valley of New South Wales. Before analysing the challenges, it is beneficial to examine the market Wesfarmers operates in. The marketplace for coal is domestic, with the majority exported on the global market. The coal industry can be described by the classic perfect competition model via the following characteristics (Earl & Wakeley, 2005: 226-227): • Large number of potential buyers (global market) • Large number of potential competitors. World Coal Institute estimates that recoverable coal reserves are in more than 70 countries and supply will last approximately 155 years (World Coal Institute: 2007). • Large number of current competitors. Each competitor sells a perfect substitute for Wesfarmers coal. • There is no price regulation in the coal industry. According to Earl and Wakeley (2005: 227), these characteristics would make Wesfarmers a price-taking firm which has no control of the price it charges for coal. It has to accept the price determined by market forces. This report will address the challenges facing Wesfarmers from the perspective of growth and diversity and implementation of clean coal technology. The report will also attempt to provide potential solutions. Figure A: Wesfarmers coal interests and overall coal type distribution. Source:...
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