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
To what extent will does correlation and extrapolation assist Nintendo in forecasting sales?
To what extent will does correlation and extrapolation assist Nintendo in forecasting sales? (34 marks) Correlation is the relationship between two variables. Extrapolation is related to correlation, as it involves plotting a linear regression curve (also known as a line of best fit) which is based upon how two variables are correlated, and extending the line to predict future values. For Nintendo, a computer game and console manufacturing company, a common example would be the relationship between the level of advertising expenditure and the effect of this on sales of its products. The graph to the left shows a strong positive correlation between sales and advertising, meaning if Nintendo increases its advertising, they can expect to see an increase in sales. Because all values are close to the line, as advertising expenditure increases on the x-axis, sales on the y-axis increase proportionately. The regression line can be extended past the '80' figure (meaning £80million) to predict what sales will be like if they spend £100million or even £900million. The uses of such analysis to Nintendo are to an extent very valuable. By creating a scatter graph like the one above, Nintendo can spot trends and forecast future events. For example, they could estimate demand at a certain point in the coming year. One would expect demand to surge at Christmas time when people are
Birmingham International Airport - Competitors
Like any other airport, Birmingham International has enough competitors that want their own share of its market. The theory is the bigger the better, and better = more profit. This means that BIA will keep having to continually renew their prices so that they stay ahead of the market, and cause their opposition to loose out. I will now discover how BIA keeps ahead of their game, consistently from year to year. One way that BIA keeps ahead is making sure that the facilities that they offer are up to scratch at all times, and they constantly update them to meet demand, and maintain them if necessary (such as toilets etc). BIA have also displayed instances where they care for the customer, one by investing in the EuroHub tunnel, and the other by adding an 'Air-Rail' link to the airport, one of this have decreased the flight transfer times dramatically, and the other has made the travelling times lower than they were before. By creating and maintaining these type of facilities, they do not award their competitors the opportunity to beat them at their own game, and therefore will always stay on top, which has been proven in my other parts of work (how big they are). Referencing to the 'Master Plan' again, they are going to develop the airport fore dramatically which shows again they are always growing bigger, and reducing the opportunity for any other airports to get in edgeways.
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
Birmingham International Airport - Location
There are a lot factors that need to be taken into consideration where you are choosing an appropriate location for a business, and BIA is no exception. Competitors: Don't go and pick somewhere where you competitors are based, because the chances are they are already established and they will just beat you into the ground. Its like if you got a choice, race a cheetah or a snail, you'd be picky the cheetah, not impossible to beat, but required a lot of work, which is what would be needed for anyone who opens up a business next to a rival; BIA must be made accessible to everyone who wants to use it. I am not just talking about (potential) customers; you also have to note there must be easy access from BIA to their local suppliers. As long as the there are sufficient links to get to and from the airport, and generally any time of day, for example BIA's current location, anywhere that fits this description and the ones below are okay. Surrounding population. BIA will generally by targeting the population around the airport for the most potential customers, so if there aren't any or there are very little, this is a bad start. Cost of buildings / work. If the building is already built, BIA won't pay over the odds for it, and the cost of the building are usually affected by the cost of land, if that is too high, then this is not suitable place. The reason any business won't
Customer needs - Sainsbury.
Customer needs A range of different products and services Products: - Sainsbury has many ranges of products from groceries to toiletries. Sainsbury always try and make there products value for money. Check out queues: - Sainsbury always aim to minimise waiting time at the checkouts. Colleges of Sainsbury are multi skilled at busy times they are able to call on more colleagues to operate tills. Elderly people: Sainsbury realise that elderly people like to retain their independence by doing their own shopping. Sainsbury always put chairs for their older customers to rest. Employees at Sainsbury help elderly people pack their purchases and help them take them to their cars. Facilities for disabled people: - Sainsbury ensure that disabled customers are not offered a low standard of service. > They have disability parking spaces > Wheelchairs and specially adapted trolleys are available in every store and electric scooters in some. > They carry out disability audits and are currently installing hearing loops in stores. > They support the Shop Mobility scheme, where disabled people travel to a shopping centre by bus where they borrow wheelchairs for the day, giving them independence. > They were voted the best corporate chain store for their commitment to providing better service to our deaf blind customers at the Deaf blind Friendly Corporate Awards 2001. > They won
Demand and Supply for housing
Demand and Supply for housing The determination of prices in local and regional housing markets is a classic example of microeconomics in action! We are seeing the interaction between buyer and seller with prices being offered and agreed before a final transaction is made. In this section we focus on the demand and supply side factors that determine the value of properties in a market. Each housing transaction in the UK depends on (a) The price that the seller is willing to agree for their property with the prospective buyer (b) The actual price that the buyer is willing and able to pay. Buyers place offers for a property that the seller can either accept or reject A Sellers Market When the market demand for properties in a particular area is high and when there is a shortage of good quality properties (i.e. supply is scarce) then the balance of power in the market shifts towards the seller. This is because there is likely to be excess demand in the market for good properties. Sellers can wait for offers on their property to reach (or exceed) their minimum selling price. A Buyers Market Conversely when demand both for new and older housing is weak and when there is a glut of properties available on the market, then the power switches to potential buyers. They have a much wider choice of housing available and they should be able to negotiate a price that is
location of tesco
Location of Tesco Location is a key factor for every business including Tesco and many aspects of a location must be analysed before it can be chosen. This includes the competition in the area, the reputation and the population of the area. Finding an ideal location is a decision that requires a lot of reconsideration and investigation particularly as Tesco is such a huge company with such big stores. Firstly all Tesco stores require a large area for the stores, as they will be accommodating such a huge variety of products. Secondly they will need a huge car park space for their customers, as the store can have hundreds of customers at any given time as well as providing disabled parking and family car parks. They also require a substantial area for a warehouse to stock their goods as well as loading bays where they receive their deliveries of stock. Some Tesco stores are situated in town centres however this is only if they are able to find such amounts of land they normally tend to locate in other places where they are able to build bigger stores. However building stores in town centres also means high interest rates so Tesco must be wary of this. I will discuss the location of my local Tesco store in Slough. Tesco found a big area of land available in the town centre of Slough and through Market Research and Investigation they were able to conclude that Slough is a
T-Mobile Marketing strategy suggestion
A marketing strategy suggestion for T-Mobile Marketing strategy section Lewis Cuddy My marketing strategy suggestion To account for the modern necessity of e-commerce I would improve the T-Mobile website. The T-Mobile website is already very effective and offers almost everything available in a shop therefore there are only two ways in which I feel improvements can be made; Offering a phone comparison feature would be very useful. This feature would allow customers to compare the functions, specifications and prices of several products at once. When loading one of the 'shop' pages such as pay as you go deals I found the initial page very overpowering. There is a lot of information and graphics on a single page and therefore I would recommend simplifying these pages. I would recommend two new sponsorship deals, one with Manchester United FC and the second with X-Factor. Manchester United FC is not only regarded as the best British football club but they also have the largest fanbase in the world. This would increase sales with Man United fans and the publicity would be immense considering T-Mobile would be branded on every football kit and across the stadium. The Manchester United stadium alone supports over 76,000 people and this combined with viewers of TV coverage add up to an average of 8million viewers. Manchester United is renowned for reaching finals and in most
State the assumptions of perfect competition. How does a perfectly competitive industry work in the short run and the long run? What makes perfect competition efficient?
State the assumptions of perfect competition. How does a perfectly competitive industry work in the short run and the long run? What makes perfect competition efficient? Assumptions behind a Perfectly Competitive Market In a perfectly competitive market it is assumes that there is a large number of small firms that all produce a homogeneous product. Firms in this market are all price-takers, where they use the selling price that it set by the price equilibrium. A perfectly competitive market also has no barriers to entry or exit; there is also perfect knowledge within the market. A perfectly competitive market must contain four characteristics in order to be perfectly competitive. These four are better described as: * There must be many buyers and sellers in the market however none of these should be able to influence the price. A perfectly competitive market usually has a small number of firms that supply to a small number of buyers. The buyers and sellers in this market are also price takers set by the price equilibrium. * All firms in a perfect market should have an identical output, where all the firms produce a homogeneous product (where one good is as good as another) and these goods should be perfect substitutes for one another, in order for the consumers to view the products as identical as each other. * A perfect competition is assumed to have no barriers to the
