...Chapter Three The World Marketplace: Business without Borders Review Questions 1. What countries represent the largest global business opportunities for the next decade? What factors determine the size of the opportunity? China, India and Brazil are some of the largest growing global businesses. These comes from many different factors; GDP growth and population are two major causes. China has the largest populations in the world along with the fastest growing GDP percentages. Brazil’s population is not as large but does has a high GDP percentage, and also a high Dollar Pre Capital GDP. 2. Why do companies tend to thrive in global markets when their country of origin enjoys a comparative advantage in their industry? When their country of origin has naturally cheap raw materials or if their currency has been undervalued, they are naturally cheaper than their competitors from other countries. This gives them better margins and they thrive. 3. Explain how to calculate the balance of trade. How does the growing United States trade deficit impact the economy? Why? The money being spent to buy things from other countries is much larger than the amount of money where other countries are buying from the U.S. The deficit means we are buying more than we sell. To make up for the difference people and governments from other countries buy U.S. investments assets. 4. Explain the meaning of “strong”...
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...become one of the world’s most significant concerns because of how the markets interact with one another. Both are able to affect millions of lives around the world. Free trade plays a critical part to boosting the global welfare and employment sectors of the world. Some economists have finally realized that free trade leads to numerous advantages in the labor sector for everyone involved. Unfortunately, free trade can impact the domestic job market; first of all, production on the domestic market will be replaced by imports; second, economic activity restructuring, and third, loss of revenue from tariffs in place (Jansen, & Lee, 2007). For example, trading can trigger several business closures and job losses; simply put, free trade can have significant impact on job creation and job destruction and can be positive or negative on the labor market and policy creation for employment in the domestic environment. The overall point is to have a positive impact on the employment in terms of the number of jobs created, the salary or wages paid to workers, and it can also be a combination of both (Jansen, et al., 2007). Two other impacts that free trade has on job creation policy is the changes in the distribution, and efficiency of the nation (McConnell, Brue, & Flynn, 2015). To some extent the labor market will shrink while the skill and/or capital industries will increase to a larger size; but all in the countries that have the capacity to sustain economic problems. On the other...
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...Samantha Langford December 19, 2013 Assignment 3.1 ENG 115 2013 Cause and Effects Samantha Langford December 19, 2013 Assignment 3.1 Importing most materials for automobiles from foreign manufacturers can hurt the economy. Importing materials for automobiles from foreign manufacturers has many pros and cons. Some of the pros of importing materials are that it improves the trade relationship between importing and exporting countries. Also, capitalizing on the competitive advantage of exporting countries to get cheaper raw materials for production. The cost of buying cars reduces as imported automotive parts improve the current supply and production of value added automotives. Some of the cons are that importing more than the required or stipulated volume of automotive parts may add up to the reasons why an economy may suffer a trade deficit. In this case it means that the country's importation value far exceeds its exportation values. In countries where the same automotive parts that are imported are also manufactured locally, stiff competition from the uncontrolled importation of these materials may put the indigenes out of business. This immediately affects domestic production and employment. The effects of importing automotive materials depend on the current situation of the particular country. The overall effect may be positive for some while it is negative for others. The effects of importing automotive materials depend on the current situation of the particular...
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...law of thermodynamics. What this means is that since you cannot destroy energy but you can transform it into another form of energy. By using energy efficient appliances doesn’t mean you don’t use energy it just means that that energy is being converted into a different form of energy within your home. There are many forms of energy: Fossil Fuels, Nuclear Energy, Solar Energy, Wind Power, Water (hydro) Power, and Bioconversion (biofuel). Fossil Fuels: In 2007, “The U.S Energy Information Administration (EIA)” has determined that 86.4% of the main energy depletion that can be traced back to non-renewable sources. Pros: Well Developed: the reason fossil fuels is used is because it is the one that is well developed and has been used all around the world Cheap and Reliable: this is cheapest source of energy and the most reliable to use for the base-load. Cons: Contribute to Global Warming: this source of energy is not “green” and contains high amount of carbon Non-Renewable: Fossil fuels are a non-renewable energy source. What this means is that there is a limited quantity of fossil fuels that is offered and the energy are not replaced logically; and that fossil fuels are products of masses of years of the regular process like anaerobic breakdown of the carbon-based substance. As divergent to renewable energy foundations such as wind and solar, it can take many existences previously...
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...think it is taking sufficient measures toward developing new forms of fuel as they have the capability to manufacture solar cells, assemble solar modules and balance solar power systems. 2- India is a good location for developing solar power products due to several reasons, First it has the suitable weather that is needed for producing such energy in an effective way , Also the availability of the skilled work force and the Engineers as there are over 600 workers who are employed at three manufacturing centers and eight offices that the BP company owns in India, it provides its products for all of India. Another good country is Sri lanka, it is rich with the sources needed for producing solar power products, also there are high skilled workers with low wages and suitable regulations and rules. 3- I think the pros are motivating the economic activities and increasing the flow of money, reducing the unemployment and encouraging domestic companies to be more efficient. And the cons are having an inflation and some domestic companies may suffer from the competition. They might only perform in their home country, yes I think it is a wise to allow them to operate independently because they may have good strategies and management plans that help in increasing the profit as each branch is related to different cultures and can deal with their customers better than others. 4- I think it is a good decision when BP company allow the foreign companies to keep their names as some companies...
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...Jenell Obie Nov. 9, 2014 Professor Daryl Fields Homework Assignment #2 Sports are very important part of the culture of the United States. When planning to expend a U.S franchise overseas, you need to think of all the factors of local cultures and have a plan to be able to overcome those factors to increase popularity abroad. To be able to attract new athletes, you must understand the cultural differences of their countries. So when taking sport franchises overseas is to make sure we understand the social structures, religion, manners, customs, values, attitudes, language, and personal communication. Just because it’s popular here in America doesn’t mean it will be a hit in other countries. There are many cultures abroad, and it’s nearly impossible to predict what all those cultures will enjoy. Market research comes into play heavily when deciding to take our sports overseas. Now, as the U.S. sport franchises try and go global they are scouting and recruiting foreign athletes, which makes not only that team but also it might make that sport popular with that country of which these foreign players come from. Just like with any business wanting to go global they have to be willing to adapt to that countries customs and rules, for sports it might mean how they play the sport or the rules of the sport and the overall sportsmanship. The most important thing I believe franchises should do to ensure their product is appropriate is to first see if their product is adaptable and...
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...METHOD FOR SUCCESS: MARKETING BEYOND GREEN Submitted By: the DL's Submitted To: Prof. DA June 24, 2015 I. BACKGROUND OF THE PROBLEM This study focuses on Method, a US-based household product company, founded by former roommates Eric Ryan and Adam Lowry. They say they seek not only to clean our homes and bodies, but to remove harmful chemicals from our lives as well. Method has achieved significant success through its strategy of developing green products in chic packaging. They attracted customers with hip, eye-catching packaging and edgy marketing communications in an online and traditional media. The marketing strategies of Method has successfully built its brand up despite of the stagnant household cleaning sector, developing products that stand out from their blandly rivals like their visually appealing or stylish packaging that attracts buyers or customers. The success of method prompted the company to expand and taking interest in green issues abroad. People Against Dirty, highlights the company's position as a producer of cleaning products that do not contain 'dirty' toxic chemicals. The founders are dedicated to creating products that adhere to strict green standards; they agreed from the beginning that taking green slant would not be the best way to sell their products. With their rivals, the fight to notice on shelf is fierce. This is why packaging has always been a major marketing emphasis for Method. Via its packaging, the...
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...as a tool to stimulate an economy while detractors see it as a policy which exacerbates poverty, causes dependency and reduces economic stability. In general, there is no consensus on free trade. Economists see free trade as the devil that we know. While imperfect, it is the best we have to work with. Popular opinion sees free trade as a cause of inequality. Even though it alleviates poverty and causes economic stimulation in the long-run, it can cause the exact opposite in the short run. The pros and the cons of free trade must then be weighed, which will then allow us to determine if free trade is truly a beneficial trade policy. Therefore, this discussion will weigh the benefits and harms of free trade and will prove that although imperfect, free trade is the best trade policy we have to work with. While free trade can cause some harm, adopting economies would overall be worse off had they not adopted free trade. Furthermore, it will be shown that most domestic distortions can be solved by a surgical policy aimed directly at the source of the market failure rather than a change in trade policy (Krugman, 1993)....
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...Medicare taxes, which just keep adding to the money the filer has to pay and the costs that it takes to have an individual calculate everything to get to the gross income. One may ask how do we get rid of the headaches while still maintaining the income level for the United States government? One idea is establishing a flat tax rate for everyone. A flat tax is an income tax rate that everyone pays the same tax percentage across the board. With our current system, the tax rates are applied to different individuals and corporations to a certain degree. With high marginal tax rates and other excess taxes, it discourages working and productivity. It becomes a struggle for workers knowing that they can get taxed for this, this and this and they become disgruntled and unproductive. With a flat tax rate, workers know that...
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...also suffers one of the lowest birthrates in the developed world. * A culture of Gender discrimination which results in many women remaining at home. * Women quit their jobs, they are not career oriented * Major Objective: According to this article the ultimate goal is to enhance Japan robust economy through economic-growth policy known as "Abenomics," proclaiming a goal to fill 30% of leadership positions in Japan with women by 2020 and increases the number of womens in Japanese work force. Or Enhance Japanese economy through employing more women and alleviating them to leadership positions as well. (sir ne kaha tha short hona chaye objective) Minor Objectives: * The idea of making Japan more accessible to foreign workers. * To make equal salary wages for women’s because women’s earn low as compared to men’s * To make proper policies for women’s in Japan so that they boost Japans economy and reform corporate culture....
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...cheaper due to the deals that are offered through doing online shopping and also no travel is usually a perk that goes with this method of shopping. What is better than being able to shop in your PJ’s? In order to reach their consumers, businesses are either extending their products to the online world with specially developed websites advertisements; or they are cutting costs by switching from the traditional brick and mortar business to the technological based business. Business owners need to enter these decisions by airing on the side of caution, doing so by outweighing the pros and cons of entering into the online world. Th pros include a wider consumer base on a potential global recognition, the flexibility in working hours that are better, and lastly it can be cheaper to conducting business online (SEO Experts, 2013). However, taking on the adventure of an online business has its cons as well. These cons include that an online business has the potential of being a flooded market, depending on the type of market that is...
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...Atherley Furniture By Kathy Tran, Emmanuel Sabu, Jashandeep Singh, Arjun Singh, Harpreet Singh Case Synopsis Mr. John Atherley owns Atherley Furniture Company. His company has a good reputation and good retailer relations. His company manufactures chairs - the Atherley, Caledonia and Parkdale for the average consumers and retailers. Over the years, while there is no “official” market share statistics, Atherley’s sales representatives report that the company seems to be holding onto its share of this market. The Atherley has been a reliable model, bringing in steadily growing sales. Parkdale is another tradition model, a stuffed armchair product that has been getting less popular. On other hand, Caledonia was a modern model and is the most popular chair model in the recent years. By the end of 1998, John was concern about declining sells of the company. Problem Statement The problem that Mr. Atherley is struggling with is how to manage their chair division of the company. Each of the chair models have issues that impact the overall profitability of his company going forward. The Atherley model is selling well but production requires high labour costs. The Caledonia’s sales is doing better than expected but is not able to meet the demands of the retailers because the company lacks the profit and has declining costs affecting its ability to buy the equipment to produce more of this model. The Parkdale model seems to be still in production based on sentimental value...
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...Outsourcing Jobs I think it is interesting to know the positive and negative arguments about outsourcing. On one hand, there is the current uproar about illegal immigrants swarming in to the U.S. to do the jobs that Americans don’t want to do. And on the other hand, there is the continuing outcry about jobs going overseas. This would be the outsourcing of jobs that Americans would be willing to accept if the corporations were not so adamant about improving their bottom line for their stockholders. So, what is outsourcing and offshore outsourcing? By definition, “outsourcing (or contracting out) is often defined as the delegation of non-core operations or jobs from internal production within a business to an external entity (such as a subcontractor) that specialized in that operation. Outsourcing is a business decision that is often made to lower costs or focus on competencies” (Miller, 2010). A good example of outsourcing is janitorial services. Instead of a company training several people for the position, they can outsource these tasks to another organization that specializes in recruitment services. This way they can save the time from hiring and training, and the work output should be of the highest quality. Offshore outsourcing is referred to as, “work done for a company by people in another country that is typically done at a much cheaper cost” (Miller, 2010). These services are outsourced elsewhere to countries other than where the goods and services are actually...
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...GDP per capita (US$) GDP per capita (PPP$) Growth of GDP per capita (1975-2008, % pa) Human Development Index Gini index (%) Life expectancy at birth (years) Mean years of schooling Mean expected years of schooling % of population below UNDP poverty line Gross Domestic Investment (% of GDP) Gross Domestic Savings (% of GDP) Exports of goods and services (% of GDP) Population (millions) Annual population growth rate 1980-90 (% p.a.) Projected population growth rate 2008 -15 (% p.a.) Urban population (% of total) Projected urban population 2015 (% of total) Doctors per 100,000 population (urban) Doctors per 100,000 population (rural) Open unemployment rate (%) Rural wage as % of urban wage % of GDP from agriculture % of GDP from industry % of labour force in agriculture % of labour force in industry Informal sector as % of urban labour force Foreign direct investment (inflow, % GDP) Value added per agricultural worker (as % of value added per agricultural worker in USA) Tractors per 1000 population Commercial bank deposit rate (%) Average interest rate, informal sector (%) Imports of goods and services (% of GDP) Best Answer - Chosen by Voters MDC - "More Developed Country" -- a "rich", "developed" country of "the North." Specifically, a country with a GDP per capita of greater than $4000, a strong infrastructure, adequate health care, education, water, food and technology... LDC - "Less (Least) Developed Country" -- a "poor", undeveloped or...
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...A barter system is an old method of exchange. 2. What is the principle of supply and demand? Demand refers to how much of a product or service is desired by buyers and supply represents how much the market can offer. 3. What are tariffs? How do they impact the economy? Tariffs are taxes on imports. They impact the economy by raising money for the government and to suppress competition with domestic/ internal industry. 4. What are the characteristics of a socialist economy? What are the pros and cons of this type of economy? The characteristics of a socialist economy is the means of production are owned by public enterprises or cooperatives, and the individuals are compensated based on the principle of individual contribution, and there is equal opportunity for all....
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