Devaluation By Rughoobar Chidanand
Devaluation I. Introduction Devaluation, in economics, official act reducing the exchange rate at which one currency is exchanged for another in international currency markets. A government may choose to devalue its currency when a chronic imbalance exists in its balance of trade or overall balance of payments, which weakens the international acceptance of the currency as legal tender. The lowering of a currency value by devaluation occurs when a country has been maintaining a fixed exchange rate relative to other major foreign currencies. When a flexible exchange rate is maintained-that is, currency values are not fixed but are set by market forces-a decline in a currency's value is known as a depreciation. II. Causes The free-market value of a national currency is determined by the interaction of supply and demand. If the quantity of the currency demanded is greater than the quantity supplied, a nation will experience a balance of payments surplus. A balance of payments deficit exists when the quantity of currency supplied is greater than that in demand. The demand for a nation's currency depends on the amount of its exports, domestic investments, and assets held in domestic currency. A nation's currency supply on world markets depends partly on the amount of imports, investments abroad, and assets held in foreign countries. Ultimately, the supply of a currency
Birmingham International Airport - Environmental Contraints
Environmental Constraints During the past decade or so, people have been made more aware of the effects of flying, basically what it does to the environment when you use your car, TV computers etc. As a result, the public have demanded, along with the government, that we rapidly cut down the emissions that are provided by the airports in a bid to save the Earth. The government introduced a new set of rules and regulations that every business has o abide by, and there are in place no only to help the businesses help the World, but to make sure that waste is not the irrelevantly dumped and ignored. As time goes on, the public are becoming more and more aware of the effects of Global Climate Change, and understand what will be of the planet over the next few decades. As a proof, over the last 5 years of so, recycling has increased dramatically, compared to what is has been, and there have been numerous protests about animal testing, which although a different matter, proves the fact that the public are indeed become more aware of the effects of the climate change and what they can do about it personally. Businesses are always trying to make it look like they are supporting the environment, and they will usually include references to something like, "we only use environmentally friendly fuel to power our businesses" to it places trust within them to the customers so they believe
Cigarettes are demerit goods which cause negative externalities. B
COMMENTARY COVERSHEET Economics commentary number: SL Number 4 Title of extract: K.C. to vote on smoke-free law Source of extract: http://www.ljworld.com/section/smoking/story/187733 Date of extract: Monday, November 15, 2004 Word count: 727 words Date the commentary was written: 22 Dec 2004 Sections of the syllabus to which the commentary relates: Section 2 Candidate name: Chen Xi Candidate number: Commentary Number 4 A market represents the private forces of demand and supply. Consumers aim to consume goods and services with lower prices and greater quantities while producers want to maximize their profits. A market diagram uses demand and supply curves to show the relationship between market demand and supply. These demand and supply curves are labeled as "private demand" and "private supply", that is, the private benefits and the private costs. But those private activities always affect others, both positively and negatively. Those positive and negative effects are not represented in the market model; they are external to the market, known as externalities1. There are two kinds of externalities: positive externalities and negative externalities.
What happened to the income of taxi drivers, and fares paid by consumers in East and West Berlinafter unification, given that living standards are much higher in West than in East Berlin. Assume the market for taxi cabs is competitive.
Essay Title: Before the collapse of communism, Berlin was a divided city. After the Berlin wall came down, movement between East and West became possible. What happened to the income of taxi drivers, and fares paid by consumers in East and West Berlin after unification, given that living standards are much higher in West than in East Berlin. Assume the market for taxi cabs is competitive. Before the collapse of communism, Berlin was a divided city. After the Berlin wall came down, Germany got reunited and the fall of the Berlin Wall leads to the absorption of a command economy by a free-market one, In this essay, I will analyse how the competitive market for taxi cabs and the income of taxi drivers has changed, given that living standards are much higher in west Berlin than in East Berlin. Perfect competition is a market structure where firms have no power to affect the price of the product. The price they face is determined by the interaction of demand and supply in the whole market. That is what we call 'price mechanism'. There are a lot of transactions between buyers and sellers in the market, individuals pursuing their own self-interest and aim to maximize utility; companies provide goods and services by the aim to make profits, each seeking their own interest. Price mechanism coordinate these transactions and in such a way to make everyone better off. Market
Measuring National Income
Measuring National Income Circular Flow of Income Model In the circular flow of income model there are two sectors: households and firms. Households are the ones who buy the country's output of both goods and services and own all of the economy's factors of production. They are the suppliers of these factors of productions and receive payment for supplying these factors to firms. Firms hire factors of production from households and use these factors to produce the country's output of goods and services. A table of the factors of production and the income received can be seen below. Factor of production (provided by households) Payment to the factor (provided by firms) Labour Wage Land Rent Capital Interest Entrepreneurship Profits This is the basis for the circular flow of income two-sector model. Households provide factors of production and in turn, receive income. They then buy these goods and services which have been produced by the firms. These products have been produced using the income received and in this way the income is circulating throughout the economy. Leakages and Injections However, households do not spend all of the income that they receive, as illustrated by the above diagram, which is simply a simplified model of an economy. Households are also able to save part of their income. Saving is the foregoing of current consumption to allow for
Explain the main features of the behaviour of firms which operate in an oligopolistic market (10)
Explain the main features of the behaviour of firms which operate in an oligopolistic market (10) An oligopolistic market is one which has several main firms that dominate the market and the labour supply is concentrated around them. All firms are interdependent and the actions of one firm will directly affect another, all products are differentiated but there are close substitutes to them. Within the market there are high barriers to entry and exit and collusion may occur. A firms behaviour in an oligoplistic market is much dependant on that of the other firms. As there is no competition on price they must compete on other aspects of the marketing mix such as place and promotions, this means that firms will have to invest into Research and Development in order to improve their product and make it seem more attractive to consumers. In an oligoplistic market there are no diseconomies of scale due to the L shaped average cost curve as firms cannot compensate for them because of the kinked demand curve. Firms have to behave in this way as there is no room for price reductions as soon as one firm puts its prices down the other firms will lower their prices and this can lead to a price war. The kinked demand curve model assumes that a business might face a dual demand curve for its product based on the likely reactions of other firms in the market to a change in its price or
Business Costs
Business Costs In a business there are three different types of business costs these costs are: Direct & Indirect Direct costs are expenses that can be attributed making a particular product such costs include factory labour, raw materials and operating machinery. Indirect costs are the general overheads of running a business for example; salaries, telephone bills and rent. Firms that make more than one product will want each one to earn enough sales revenue to cover its direct costs and make a contribution to indirect costs. If all the products together make enough contribution then the business will make a profit. Fixed & Variable Fixed costs are costs which do not vary. They are mostly indirect costs - Management salaries, telephone bills and office rent. They have to be paid even if the firm produces nothing. Variable costs are costs that cab change every time a bill etc... must be paid, these are mostly direct costs such as factory labour, raw material etc...Some costs are semi variable, they only vary slightly because they have a large fixed element, for example workers wages - most people receive a basic salaries and only part of their pay is linked to output. Fixed costs are usually only fixed over a short period of time, if a firm is expanding, it will take on more managers and rent more offices so the fixed cost will increase. A firm can work out their
Business Activity & PLC
Business Activity Tesco specialises in food and drink as their core product and this helps them to concentrate in one major area. This also helps them purchase a large number of products in bulk and therefore gain huge discounts as they are benefiting from economies of scale. Tesco sells other types of products apart from breakfast cereals, toiletries and snacks. They do this because over the years they have realised that their customers want to do all their shopping under 1 roof rather than in 10 different shops. A few years ago Tesco decided to start selling other type of goods like foreign food, halal food, low G.I, organic and low fat food. Selling different types of products will benefit customers because they will be getting what they have in their normal diet but at cheaper prices. This shows that Tesco responds to the latest trends in the U.K., and thus satisfies everyone. The reason Tesco sells their products so cheap is because they buy them in bulk and gain low prices. Also selling products at low prices helps to gain customer loyalty which has helped the store a great deal, and helped them to gain huge profits. Tesco's main income is through food and drink but they sell other products as well. This diversification has helped the firm to raise £280 billion. Some of the items that are sold are clothes, household goods and electronics etc. Tesco aim their
Mcdonalds Training
McDonalds Training and Development Training and recruitment is one of the most important actions that must be performed by a business because they would always need employees and they must train them so that they should know what has to be done at work. If the employee recruited is not trained to use particular equipment it might result in minor or severe injuries or there might not be any work done at all. In McDonalds there are several training. Some of the main reasons why training is given to the employees is to ensure that they follow the health and safety rules, the work is efficient and fast and that the employees can carry out the tasks confidently. One of the purpose for training such as burger training would be that the employee learns how to make the burgers clean because if the employee doesn't wash his hands and touches those burgers then this might spread infection and the customer might sue the company. There are different types of training given to the employees at McDonalds. * Induction Training * On-Job Training * Off-Job Training * Job Rotation All these trainings take place at the workplace. Induction training is given when an employee starts to work at the workplace, this would include a tour of the work place so that the employee knows what is kept where. He/she would also be given training on how to use the equipments he has to work with.
What is positioning?
Introduction Positioning is one of the major steps in target marketing, the other two being market segmentation and targeting. Effective positioning is a must for clothing retailers to distinguish themselves from other competitors and to appeal to potential customers as well as maintaining brand loyalty, especially in the fashion industry where branding and perception of a company in the eyes of consumers calls the shots. This essay will explain what is positioning, followed by an overview of how positioning is applied in the high street fashion industry, using the example of international top market leader in high street clothing, Topshop. What is positioning? Positioning is the process of creating a certain perception, image, reputation, messages and offers of a company in the mind of customers or user groups (Gabbot, et.al., 2004). Consumers hold a set of feelings and impressions about a product and compare them with competing products (Kotter, et. al., 2007). These perceptions play a strong influence in the buyer decision-making process and have a direct impact on the companies involved. For example, consumers who are brand and image-conscious will avoid a store if they perceive it to only cater to the lower-end market. Therefore, marketers should ensure that the right marketing positioning strategies are applied to set a desirable image of the company in the minds of
