Describe the main aspects of the economic boom in the 1920's.
USA Coursework Essay - Describe the main aspects of the economic boom in the 1920's. During the 1920's the United States of America enjoyed a boom period in it's economy, which heavily altered the lifestyles of Americans and the society that they lived in. There were several main aspects of the boom, including the development of the car industry, Hollywood and the movies, the birth of the Jazz Age, the establishment of new freedoms for women and the surge in the manufacture of consumer goods. This essay explores in detail the main aspects of the economic boom, and makes links between them; also demonstrating how economic factors lead to changes in society, and vice versa. During the twenties factors such as the mass-produced motorcar not only not only altered the ways of daily life but also resulted in an unprecedented growth in business that established the US as predominant in the world. In 1921 the gross national product was $74 billion, which by 1929 had risen to $104.4 billion. The three presidents of the 1920's, Harding (1921-23), Coolidge (1923-29) and Hoover (1929-33), were all Republican who supported business and the stock market. They introduced lower taxes allowing business owners to infest profits in their businesses, but also giving them more money to put back into the economy, e.g. to spend on consumer goods. This also led to increased demand for the cars now
Ethical investment.
Ethical investment Ethical investment can be defined as the integration of personal values with investment decisions1. The principle of shareholders wealth maximization relates, to the role of companies as agents of shareholders to maximize the returns for shareholders, in doing so there are incentives available for some companies to minimize cost (Negative), at the expense of social and ethical considerations. Others will work towards better and newer innovations (Positive), to boost the shareholders wealth in conjunction with an active and ethical role within the community. The principles of ethics can be both in conflict with and not in conflict with profit maximization depending on the viewpoints of the company. This statement can be confirmed through the analysis of issues such as, environment, human rights, workplace practices and animal welfare, through different companies focusing on distinct positive and negative issues aspects. The Body Shop International is a manufacturer and retailer of skin and hair care and cosmetic products. This company is well known for its high level of ethical standards that it sets, on various issues and it's success in maximizing shareholder's wealth: * On Environment the body shop has set as it's mission to act in a way which would protect the environment, both locally and globally. Searching for long term sustainable resources,
In our report we will look into the expansion opportunities of the company aa , a leading India based clothes manufacturer and retailer into the European market.
Executive summary In our report we will look into the expansion opportunities of the company aa , a leading India based clothes manufacturer and retailer into the European market. Based on our research we have pointed out several criteria with regards to the selection of the country to expand our operations in, which are * 1 * 2 * 3 Applying these criteria to Cyprus, we came up to the decision that it was the best possible pathway to follow in entering the EU having in mind our capabilities and constraints discussed in this report. A brief analysis of the macro environment regarding that region which shows the economic growth and political stability, the encouragement of foreign investment by low taxation, its excellent infrastructure (telecommunication and logistics) as well as the cultural of the countries provided us with a platform of selecting a joint venture as the mode of entry. At the very last pat of this report we will be dealing with our selection of our partner in Cyprus. In doing this we have strongly taken into consideration our future partners knowledge of the local and European Market and industry and its ability to contribute and meet the requirements of the investment as well as their reputation in the local market. 01. Introduction AA is an Indian textile manufacturing company with its headquarters in Bombay and about 20 retail outlets scattered
PEST and competitive analysis facing by confectionery organisations
Summary This report defines the PEST and competitive analysis facing by confectionery organisations. The international organisation's Cadbury and Nestle are the organisations where the leaders of confectionery food. This report will discuss the strategy using by these two companies and their mission, what are their objectives and how can they achieve their goal? Introduction The UK confectionery market forms part of the food industry and was valued at £5.54bn 2001. Sales have increased over a number of years. Although not an essential purchase, confectionery is bought by the majority of the population. Changing eating habits have led to increased levels of snacking and grazing and, as a highly accessible and desirable food, confectionery has been able to capitalise on this trend. There are two main sectors in the market - chocolate confectionery and sugar confectionery. The UK market is relatively mature. As a consequence, there is little scope for market growth. The predominant trend among the leading companies is to expand through brand extensions rather than new product offers. Confectionery is an impulse market, which means that strong brand identities are of key importance. Creating new products by extending established brands carries lower risks than launching new ones, because the products have a head start in the market. Limited editions, where items are offered
Sports manufacturers
WEAKNESSES: Labor Practices: Activist groups and student organizations have made Nike a symbol of labor exploitation. These groups blame Nike for poor conditions in its third world factories, under-paying workers, employing children, and ignoring the basic rights of its workers. Nike is often in conflict with labor unions; most recently, Nike bucked heads with a factory workers' union in Mexico. Accordingly, the public associates Nike with sweatshop labor and accuses it of sidestepping human rights in order to secure the greatest profit. Advertising: Nike spent over $1 billion on advertising, sports marketing, and promotional spending in 1999, and, although popular, some of its advertising strategies were considered controversial, according to an article titled "Channel Conflict." Feminist groups accusing Nike of degrading women have attacked Nike commercials that stress winning above everything else and show women submissively. Although the majority of Nike's commercials are cutting edge and creative, those very commercials can be weaknesses in Nike's reputation. Consumer Cost: Nike has been accused of outrageously marking-up prices on many of its products to cover the costs of advertising and sponsoring. The public feels that Nike overcharges its consumers and should lower prices. According to an article from the Graduate School of Business at Stanford University,
Does economic theory suggest that monetary and fiscal policy play different roles in causing big exchange rate movements?
EC201 Assessment Two Question: Does economic theory suggest that monetary and fiscal policy play different roles in causing big exchange rate movements? Discuss the extent to which examples of big exchange rate movements in recent history can be attributed to monetary and fiscal policy changes. In 1950s proponents of flexible exchange rates had assumed that flexible exchange rates would move relatively slowly and smoothly. But within a few years of the disintegration of the Bretton Woods arrangements, that assumption had been shown to be misplaced: there were large and sometimes rapid changes in exchange rates. Are there any suggestive theories behind the observed large fluctuations? The aim of this essay is to demonstrate the different roles that monetary and fiscal policy has played in causing big exchange rates movements and the empirical evidence in recent currency experience. The basic Mundell-Fleming model in 1960s is essentially intact as a way of understanding policy effects to exchange rates. The key assumption in this model is perfect capital mobility which indicates a horizontal BP curve. Firstly, let us discuss the fiscal policy under flexible exchange rate. If the government increases expenditures the IS curve shifts to the right in Figure 1. The domestic interest rate increases and as a result financial investors will want to hold domestic bonds. This causes
Why has the relative pay of more qualified workers risen more strongly in the UK and the US than in other advanced economies during the past two decades?
Why has the relative pay of more qualified workers risen more strongly in the UK and the US than in other advanced economies during the past two decades? During the 1980's and continuing in the 90's, the US and the UK had exceptional increases in earnings inequality and in wage differentials by skill category. The rise in inequality in the US was associated with large declines in real wages for low-paid workers. Most other developed countries had moderate increases or in some cases effectively no rise in wage inequality. So how do we explain the different paths of the U.S. and the U.K.? The key forces behind the rise in inequality appear to be the demand for and supply of skills i.e. a secular shift in relative labour demand favouring more educated workers and workers with problem solving skills compared to a slowdown in the growth rate of the supply of highly educated workers relative to less educated workers. The role of labour institutions is also a very important component of the explanation and the move to decentralisation of bargaining in the UK and the decline in Trade Unionism in the US are key factors that we will explore. Let us first look at the empirical findings for the US and UK, compared to the rest of the advanced economies. IN the US, from the late 70's to the early 90's wage dispersion increased dramatically for both men and women. The hourly earnings
What is "real" GDP? Explain the view that, other things being equal, a larger real GDP means greater social welfare. Under what circumstances might real GDP and social welfare change in opposite directions?
What is "real" GDP? Explain the view that, other things being equal, a larger real GDP means greater social welfare. Under what circumstances might real GDP and social welfare change in opposite directions? Word Count: 826 In hope to monitor changes in social welfare and well-being of the population, Macroeconomics officially measures a country's economic activity through real Gross Domestic Product, or real GDP.1 It is a common view that, ceteris paribus, a larger real GDP per capita reflects greater social welfare2, but due to unequal distribution of resources, social costs of production, poor accuracy of measurement and unofficial market transactions that real GDP per capita fails to take into account, there are obvious limitations to this assumption and its reliability as a welfare measure. Calculated as the sum of consumer spending, investment, government purchases, and net exports within a specific time period, GDP describes the size and growth of a country's economy.3 Thus, increases in price and quantity of goods produced leads to increases in GDP. From this calculation, it is difficult to determine whether an increase in GDP is due to growing prices or whether the volume output of the economy has increased. As a result, economists define nominal GDP as the sum of the values of produced goods and services at current prices and real GDP as the sum of all the
Competition leads to a more efficient use of resources. Discuss.
Competition leads to a more efficient use of resources. Discuss. The word "efficiency", in economists' dictionary, is often interpreted into the degree of an economy allocates scarce resources to meet the needs and wants of consumers. As we can see that a free market economy is the one in which resources are allocated based on the principle of self-interests. Where there are profits, there are firms, and where there are firms to produce identical goods and services, inevitably, there is competition. The degree of competition determines the market structure which is the main determinant of the behaviour or conduct of firms. This in turn determines the efficiency in the use of scarce resources. It is often argued that competition leads to a more efficient use of resources. I agree with the statement, but not totally. In my opinion, competition would lead to efficiency and best use of resource by encouraging firms to improve productivity, to reduce price and to innovate, but in certain industries, particularly industries where the impact of economies of scale is distinctive, for example industries with great indivisibilities, monopoly is more favourable. Economic efficiency can be seen to maximizing total utility from a given amount of scarce resources. There are two types of economic efficiency-allocative efficiency and productive efficiency. According to their definitions,
Explain what is meant by allocative and productive efficiency and briefly comment on whether these efficiencies can be achieved in the real world.
Explain what is meant by allocative and productive efficiency and briefly comment on whether these efficiencies can be achieved in the real world. The three questions that have to be answered when trying to measure the efficiency of an economy are 'what?', 'how?', and 'for whom?'. The first question relates to the production of goods. We have scarce resources so to achieve maximum efficiency we must make sure those resources are being used to make things that people want. Otherwise, precious resources are being mis-allocated. The second factor of efficiency is the competence of the production method itself. Is output being maximised? The third question is 'for whom?'. This relates to financial inequalities which exist in our society. If everyone earned the same, then output could not be maximised because there would be no incentives to work hard. I will be discussing the first two factors above. The first question links with allocative efficiency and the second one is associated with productive efficiency. Allocative efficiency can only be achieved if goods supplied match exactly with the wants and needs of society. For example, an economy that produces fruit and vegetables exists, and the population prefer fruit to vegetables, then for allocative efficiency to occur , more fruit must be produced than vegetables. This idea can be expressed on a PPC: In the diagram above,
