Identify and describe realistic opportunities for the business to buy/sell in the target market.
Business Studies DAR P3 Identify and describe realistic opportunities for the business to buy/sell in the target market There are many opportunities for Peugeot in Argentina to sell cars. This is because Argentina has a large population, up to 37 million and one million are internet users; this would help Peugeot to get the sales required by Advertising and other sources. Also the other point which makes Argentina look attractive to Peugeot is that the high economic (GDP) that has risen over the years. From 1996 to 1973 there was a +4.3% growth average which is higher than the UK's growth average, this is due to the amount of population. But then in 1974 to 1990 it dropped to 0.4% growth average. Then in 1991 to 1993 the growth average shot up to 7.9% which was a very high growth increase, the UK has not match with the growth increase at all with Argentina. Most of the population lives in urban areas. Below is a table of the economic growth rate (GDP) of Argentina. Years Economic Growth (GDP) Growth deal per capita- per person 966 to 1973 4.3% 2.7% - better off 974 to 1990 0.4% .0% - worse off 991 to 1995 7.9% 6.6% - better off 996 to 2002 The main cities in Argentina are Buenos Aires, Posudos, Cordoba, Maron, Rosario and San Miguel De Tecuman. The language spoken in Argentina is Spanish. At the main religion there is Roman Catholic. Argentina has a
world oil market
COURSEWORK ASSIGNMENT ) Describe the world oil market The world oil market structure is quite unique due to the importance of oil to the global economy and its relative scarcity. It is still unclear how much oil there really is left due to differing views amongst geologists. What is agreed is that the scarcity of oil is a major concern for the global economy and its likely the peak in old production will be seen by this generation. All fossil fuels such as oil and gas are slowing running out; renewable sources will be needed in the future to generate all electricity. When it comes to fuel used for transport, all planes and cars are reliant on oil by-products such as petrol and diesel, the technology isn't there yet for electricity to be viably used as a substitute for petrol in cars, with existing technology electric cars can't go very fast which puts off the consumer, also for electric cars to be an option huge investment must be made for installation of car charging stations which will take many years to administer as well as resources. While oil reserves are depleting demand is growing at a phenomenal rate, world population is growing as well as living standards causing oil consumption to rise as there are more people and each of them is using even more electricity. As living standards increase more people are driving which results in greater fuel demands. Furthermore
What do you understand by the term structural change? Examine the contribution that microeconomic policy has made to improving the structure and performance of the Australia economy.
What do you understand by the term structural change? Examine the contribution that microeconomic policy has made to improving the structure and performance of the Australia economy. Structural change is the change in the pattern of production in an economy as certain products, processes of production and industries disappear and are replaced by others. The past century has seen the relative decline of agricultural and manufacturing industries, and the rise of services and new technology sectors. Structural change can be caused by a wide range of economic influences including changes in the pattern of consumer demand and technological change. The speed of structural change depends on the ability of an economy or industry to adjust quickly. People's natural resistance to change and government regulation often impedes the process of structural adjustment. Past Macroeconomic policies have been largely ineffective in bringing about structural change. For example Australia's past trade deficits can be blamed on structural problems that failed to react to government macroeconomic policies. To solve economic problems such as high inflation and high unemployment governments are shifting away from macroeconomic policies to microeconomic policies. Microeconomic policy or Microeconomic reform is action taken by the government to improve resource allocation between industries in
This report is for an M.P. who is about to appear on Question Time, and who is weak on Economics.
This report is for an M.P. who is about to appear on Question Time, and who is weak on Economics. Government Intervention When the supply and demand do not meet a satisfactory outcome for stakeholders in society, this will lead the market to failure. For example, pollution and congestion produced by vehicle, and increased interest rate for house properties, which are affected by mortgages. Market failure may have resulted from the following situations:- * The economy is not well developed to put up changes in demand * Goods or services are not available in enough quantities to match demand * Demand in a particular market may have collapsed unexpectedly * Small or new business struggling to compete because of the dominance of a market by a specific business This is when government becomes involve. The government's duty is to decide what is appropriate and what is not appropriate for the economy. There are numerous of examples of how the government can influence the forces of supply and demand:- . Taxation 2. Interest rates 3. Legalisation 4. Grants 5. Subsides Taxation Fiscal policy is formed by taxation and expenditure. This policy was introduced by the government, to take public spending, taxes, and borrowing into consideration. The government can boost the economy by increasing its public spending. For example, it could increase their spending on schools,
How far do the sources support the idea that an economic crisis was responsible for the outbreak of the French Revolution in 1789?
How far do the sources support the idea that an economic crisis was responsible for the outbreak of the French Revolution in 1789? All the sources carry some opinions on the causes of the French Revolution with many indeed suggesting that the economic crisis was a key factor. However, we must not ignore the other factors suggested and there undoubted contribution the beginnings of the French Revolution. Source one suggests "confusion in the finances great" however this does not necessarily correspond to an economic crisis. There could though be economic reasons for the confusion and certainly this could lead to a crisis if there is little control over spending, inflation and so on. Written by Arthur Young, well known for his negative view on France, the source is based on a conversation over dinner. Young clearly states that the party are sure "they are on the eve of a revolution." Financial problems are greatly discussed yet there is little evidential basis to link this to a full-blown economic crisis. We must also be wary of Young's British affiliation, he is likely to have picked out things that would put France in a bad light compared with that of Britain. Source two is likely to have been written by a member of the Bourgeoisie, an increasing restless sect of society similar to the modern day middle class, and is taken from the "cahier of Pleurs." This document
Define the following terms using economic terminology: monopoly; market power and market structure. Why do developed market economies seek to regulate utilities and industries that exhibit economies of scale?
Define the following terms using economic terminology: monopoly; market power and market structure. Why do developed market economies seek to regulate utilities and industries that exhibit economies of scale? Using the case study material supplied plus textbook knowledge, show how the working of competition policy is guided by theories of monopoly and monopoly like market structures. A monopoly is defined as follows: In a monopolised industry, there is only one firm present or the firm holds 25% or more of the single market share. The firm and the industry are therefore synonymous. As a monopoly, there are little or no rivals for a firm. The firm could be defined as a single seller as there are little or no close substitutes for the product a firm provides, meaning the firm holds the market power. A good example of a monopoly would be The Post Office. They are the only firm that provides the service or product that they do. The monopolist does not need to consider the reactions of any rivals when setting the price of its outputs therefore making it a price-setter. Typically, a monopoly will produce less, at a higher price. It decides its price by calculating the quantity of output at which its marginal revenue would equal its marginal cost, and then sets whatever price would enable it to sell exactly the chosen quantity. In practice, few monopolies are perfect,
Industrial slowdown: causes and remedies.
Industrial slowdown: causes and remedies By Sartaj Aziz The World Bank President, Mr. James Wolfuson, when he met the Finance Minister, Mr. Shaukat Aziz, in Washington last week, expressed two major concerns, according to the official announcement: the slow growth rate and rising level of poverty. Both are interrelated and both need deeper analysis. One of the most important factors in the disappointing performance of the Pakistan economy in the 1990s has been the industrial slowdown. The rate of growth in the manufacturing sector in the preceding three decades from 1960 to 1990, was 9.9 per cent, 5.5 per cent and 8.8 per cent respectively or an average of 8.1 per cent. As a result, the average GDP growth also slowed down from 6.1 per cent in 1960-90 to an average of 4.6 per cent in the decade of the 1990s. The agriculture sector, on the other hand, has maintained its impressive growth rate- 5.4 per cent per annum in the 1980s and 4.2 per cent in the 1990s. There are at least four main causes of the industrial slowdown in the 1990s: reduction in protection as a result of the economic reform programme initiated in the early 1990s; higher cost of production in the industrial sector combined with low labour productivity; weaker demand for industrial products following overemphasis on the IMF-supported stabilization policies in the past 10 years; and declining investor
Aggregate Demand and Aggregate Supply.
AGGREGATE DEMAND AND AGGREGATE SUPPLY a. What are the determinants of Aggregate Demand and Aggregate Supply? Aggregate Demand: Aggregate demand is the total of all expenditures made within a country at an average price level. There are four main factors that influence the aggregate demand and can cause a shift in an aggregate demand curve. This are: consumer spending, investment expenditure, government spending and net export expenditure. They can be represented through this formula: AD = C+I+G+NX Consumer spending makes up the larges part of aggregate demand, which is between 60% and 70%. These include private spending on: durable goods such as cars and electronic goods, non-durable goods such as provisions, clothes, and literature, and services such as education, insurance, healthcare and entertainment. Consumer spending is strongly influence by the amount of disposable income, household wealth, interest rates and the expected future of the economy. Investment Expenditure makes up a smaller portion of the total aggregate demand. It is easily influence by interest rates which cause higher borrowing costs and thereby lower profit. Government expenditure is affected by the demand of public goods and services by the private sector through voting or other political activities. Net export expenditure is the exports (expenditure of other countries on the country's goods and
Critically consider the legal issues that must be taken into account when an exporter is attempting to penetrate a new foreign market
International Trade and Finance Law 4FBL602 Critically consider the legal issues that must be taken into account when an exporter is attempting to penetrate a new foreign market. Seminar Tutor: Philip Williams Student: Kevin K Y Cheung Student Number: 01084944B Submission Deadline: 06/11/2003 Word Count: 1835 words Legal issues that an exporter must consider when they try to penetrate a new foreign market are issues of the contraction of legal contracts which constructs safeguards for the exporter and avoid any pitfalls that may occur and also issues of legal juridical laws such as the different types of laws that exist such as common law, civil law, Islamic law. The exporter needs to consider the different juridical systems due to they may be similar in contents and context but the fundamental differences in business forms has a strong impact on all types of transactions and trade methods used. These business structures, although not mutually exclusive, can be strategically aligned to best suite the exporters needs. The exporter must also consider the contents of the Statutes of the International Court of Justice. The exporter must when considering the penetration of an international market the legal risks. Such as the exporters own legal approach may not be found in the importers country so the level of safety for the two companies may weaken. The exporter may find
How is GDP measured and what are its limitations as a measure of the quality of life?
Gideon Krotosky Macroeconomics coursework Spring 2004 EC1001 Lecturer- John Heaman Tutorial - Peter Wilks BSc Economics and Accountancy Q. How is GDP measured and what are its limitations as a measure of the quality of life? A. Gross Domestic Product (GDP) can be defined as the annual value of output produced by factors of production within a nation's border. In other words, it is the sum of all incomes earned by the country's residents when producing goods and services with resources located inside that country. GDP is not to be confused with Gross National Product (GNP), which measures the flow of output produced with resources, which are owned by the nation wherever they might be located. The difference between GDP and GNP is net property income from abroad. The word "gross" in both of these measures of national income, indicates that no account has been taken of depreciation. There are 3 methods of calculating GDP: the product/output method, the income method and the expenditure method. In theory, because they all claim to measure the same aggregate, they should all give the same total. This is shown below in the circular flow of income: However, in practice, this is unlikely to be the case. This is because extremely large sums arising out of millions of transactions paid over different time periods are being dealt with and it would therefore be very unlikely if
