The article which I have chosen "Corporate Japan Says Consumers Will Drive Economic Recovery," manifests an improvement in consumer spending levels in Japan. In my analysis, I will make an attempt to identify the causes for a boost in consumer confidence levels, and how it affects the national income of Japan, thus revealing an overall effect on the economy. Corporations in Japan have started to breathe easier due to a higher demand for their products by Japanese consumers. In this view, economists and corporate executives are reckoning that this is an indication of economic recovery, also doubling their forecasts to 3.5%. Bigger pay bonuses and improved capital spending is spurring demand for air conditioners, beer, flat panel televisions sets, and many other consumer electronics. Capital spending is the non-residential fixed investment in the Gross National Product (GNP); consists of business outlays on fixed assets like office buildings, as well as purchase of long lived items as trucks, office and farm equipment. Capital spending is one of the major components of economics growth, the other being consumer spending. An economic model of the flow of money in the economy becomes significant when such a situation is being analyzed. A simplified version of the flow of money is shown below: From the above mentioned situation we can tell that as households start to spend
"Labour market inflexibility in Europe is the main reason why Europe is not as dynamic an economy as the United States" Critically discuss
"Labour market inflexibility in Europe is the main reason why Europe is not as dynamic an economy as the United States" In not more than 2500 words and not less than 1500, critically discuss the above statement. Introduction Today labour markets in Europe and the USA are often compared and discussed. The general view seems to be that the US has a more dynamic economy, people tend to believe Europeans are worse off than Americans. The main reason given for Europe lagging behind the USA economically is "Labour market inflexibility" other reasons why the European Economy is not as dynamic, include labour rigidities, high taxes, and too big an emphasis on the welfare system. This essay will discuss why US labour markets are considered dynamic and superior, in doing this unemployment, employment and wages. A Historic Explanation Historically the USA and Europe are very different. The USA is a relatively modern country and Europe consists of many countries each with its own individual past. Differences within Europe are a major factor when critically discussing why Europe is behind the USA on an Economic basis. The EU is a group of countries with very diverse countries. Each has varied economic, and to an extent political circumstances. Historically, the Second World War changed the countries in Europe a great deal the effect on the USA was little in comparison. European
"The British Government made a major mistake in not joining the Euro at its outset" Do you agree? With the beginning of the EMU project in 1999, the British government decided it best for the country to remain outside this controversial and arguably risk bearing project. Many have criticised this decision as part of the ongoing saga whereby the UK remains outside a European project and eventually seeing the benefits decides to join. This was the case with both the economic community and the ERM and when we did join the structure of the project had already been established. However the clear failure of the ERM on white Wednesday, reflecting in essence the failed preparation for monetary union, illustrates how volatile such a project can be. The UK government lost billions of pounds worth of foreign currency reserves in the ERM project and it should never make the same mistake again. Furthermore, the economic community project has not been anywhere near as successful as predicted. With the loss of our free trade with our Commonwealth partners, the UK effectively sacrificed the last remaining threads of not only our cultural history with those nations but our sense of dignity in supporting those nations economically that once made the UK a great power of the world. Now we are effectively stuck inside the European project with a common external barrier to all imports from the
"A manufacturer has discovered that a major component supplier is in danger of going into liquidation. Discuss the ways in which the manufacturer might respond to this news."
"A manufacturer has discovered that a major component supplier is in danger of going into liquidation. Discuss the ways in which the manufacturer might respond to this news." Possible solutions As one of the major component suppliers is under threat of going into liquidation there are a few options available to the manufacturer; the first option I will examine is the possibility of the manufacturer expanding to supply the component themselves. This might seem like a simple solution as it would mean that the manufacturer will now have control over the supply of this component and will also be able to control its production more flexibly. The downside of expanding the company though would be that it could lead to diseconomies of scale as the manufacturer would no longer be specialising in just the assembly of the finished article but would now be involved further down the production line. This move away from the businesses core objectives could lead to poor communication within the firm and a loss of corporate awareness which could see productive efficiency decline so as to make this option not worthwhile. Another option available to the company would be to source the production of this major component to another supplier. The manufacturer would have to research potential new suppliers to see if the operate a just-in-time production method, which would be ideal for a
"At the heart of New Right thought sits the paradox of authoritarian and libertarian." To what extent would you support this?
"At the heart of New Right thought sits the paradox of authoritarian and libertarian." To what extent would you support this? Conservatism is the doctrine which opposes radical social change, especially when that change is enacted by government force wielded by others. As such, it means different specific things, depending upon what conservatives wish to "conserve" at a given point in time. In the 19th century, conservatives thus aligned themselves with the "Right" - i.e., with the state's authority, tradition, the established political order, and the status quo, and in opposition to individual rights. Liberalism, by its original definition, is the doctrine which seeks to promote liberty. This term, like conservatism, is ambiguous, because different people at different times have meant different things by the term "liberty." In the 19th century, liberals favored individual rights (to life, liberty, and property), political freedom (via a Bill of Rights, against the constraints of the state), and laissez-faire capitalism (with no government interference in the economy. They opposed the authoritarian state, wanting instead a minimal government, one limited strictly to defending individual rights. This may seem a totally contradiction, as it would seem barely possible to be an advocator for one and a follower of the other, so differing are both aspects. But it is possible, as
"Australia is a limited market. Businesses in such markets seek global remedies." In a speech made by the Hon. Alexander Downer MP, Minister for Foreign Affairs, to the Asia Society and AUSTCHAM in Hong Kong, 15 October 1997, he stated "There can be no question that globalisation offers huge opportunities for internationally competitive economies. But it also brings in its wake challenges for political and economic management. No economy stands - or prospers - alone. Globalisation brings with it increased competitive pressures in markets, and makes globally-based trade rules and disciplines even more important." In essence, he is saying that globalisation can help to open up new markets for countries that embrace it. As Australia is a limited market, its businesses seek global remedies, or globalisation, to help them expand outside Australia. Globalisation is one of the 'buzz words' of the 1990's: we live in a 'global' village, we consume 'global' brands, corporations have to be competitive in a 'global' market place and governments have to be responsive to the needs of the 'global' economy. Companies are expected to achieve overall worldwide objectives by adapting to local conditions in several countries. In some cases this may mean tailoring products for national markets, in others paying exceptionally low rates for labour because it
Name: Marissa Sim (23) Class: S2/08 Teacher: Mrs. Louisa Yue Personal Exposition - Draft 2 "Do you think the annual 'Great Singapore Sale' should be retained or done away with?" Walk down Orchard Road any time from May till early July this year, and people lugging numerous hefty parcels around will not be an uncommon sight. Most shops and department stores would have posters and signs hanging prominently from the shop windows, announcing large discounts and amazing offers. From teenagers to the elderly, majority would welcome the annual Great Singapore Sale (GSS) and look forward to snapping up huge bargains from this long-anticipated event. With so many people awaiting this event, the GSS should definitely not be done away with. The GSS is something many people anticipate, as it benefits them. However, the largest group of people that look forward to it, are the consumers. The GSS is a good chance for consumers to grab the opportunity to save a significant amount of money, as they can chalk up huge savings by buying discounted items. This can certainly benefit them when purchasing more expensive products such as household items, as they get better prices and bigger savings, as the amount saved tends to be higher. For example, a 15% discount on a washing machine, costing about $2000 would mean a $300 saving, which is a significant amount of money, especially to the
The Causes and Consequences of Economic Growth (a) Why do some countries grow faster than others? (20 Marks) In order to analyse why countries grow at different rates, we must be aware of the determinants of growth. Short run growth is determined by cyclical changes in both aggregate demand, AD, and short run aggregate supply, SRAS. The makeup of AD is of the factors: consumption, investment, fiscal changes, and overseas trade. These can therefore be changed by fiscal and monetary policy changes. The changes in AD therefore result from the governing economic policy makers of that specific economy, and so will not have a huge overall effect on the differing rates of growth. SRAS is altered by fluctuations in raw material cost, labour costs, and government intervention using taxes and subsidies. These however are likely to affect most economies, albeit that some countries are more industrial than others are and so will be more affected by fluctuations in raw material costs. SRAS is therefore unlikely to be a major cause of the differing growth rates. We must therefore look to the long run aggregate supply, LRAS as the major factor affecting growth rates. As highlighted The Causes of Economic Growth1, economic growth is determined by changes in land, labour, capital and innovation. These of course will vary from country to country. One of the biggest causes of global divide
Individual Assignment Workshop 2 By: Gerard Bergsma Instructor: Jan Henk van der Werff Money or your Life Due to the ever-accelerating progress in medical science and especially the possibility of human organ transplants a demand in human organs has been created. In 1968 all U.S. States had accepted a variation of the Uniform Anatomical Gift Act of 1968. This law allowed individuals to donate part or all of their body after they died. This Act did not allow nor prohibited the sale of human organs. In the early 1980's it appeared that organs where collected in return for a fee. Most of these transactions concerned poor people selling their kidney while alive in order to make an extra buck. Then restrictions followed dominated by the National Organ Transplant Act of 1984. This Act was initially designed to prevent the sale of organs from living donors but it also prevented selling of the rights on ones organs after the individuals' death. This law exists in the US but similar laws apply to most countries in the world. In the US alone some 75.000 patients are waiting for an organ transplant. Every year 4000 people are dying because the necessary organs cannot be found in time. Institutes around the world are doing their utmost best to get people signed up as donors, but the demand for organs is still much larger then the current supply. So that means that something has to
City speed - There are 2 options that are currently available to you, the Board of Directors, the first is to purchase more vehicles in addition to the current fleet and the other is to expand to a new location from which to run the company.
CitySpeed Brief Introduction There are 2 options that are currently available to you, the Board of Directors, the first is to purchase more vehicles in addition to the current fleet and the other is to expand to a new location from which to run the company. New Vehicles Advantages The advantages of purchasing 15 low-floor easy-access buses are that it leads to a growth in the size of the current operating fleet. As can be seen from the benchmarking data although the current fleet size is bigger than our rivals, Destina, the average age of the fleet is double theirs. The introduction of new buses to the fleet will allow the customers to travel in more luxurious surroundings and so will increase the overall pleasure of the journey which is likely to lead to more people wanting to use our company's buses on a regular basis. The fact that these new low-floor easy-access buses operate as a fifth of Destina's fleet shows that they are a forward thinking company who are looking towards maintaining a greater market share by improving the level of customer satisfaction. By looking at our maintenance record over the previous years it can be ascertained that as the fleet has grown in age the amount of breakdowns and the cost of maintaining the fleet are beginning to rise. This can lead to unreliability in the transport network as buses may fail to arrive on time due to breakdowns.