BAfter 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.
Rebecca Mould 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. The toppling of the Berlin Wall began on November 9th 1989; after the East German Government announced that citizens were allowed to cross to Western Germany. However the wall wasn’t fully demolished until June 1990 and in October 1990 East and West Germany were reunified into a single German State. After the collapse of the wall, movement between East and West Germany became possible, and led to a free-market economy on both sides. I will look at how the income of taxi drivers has changed as a result, given that West Berlin has a higher standard of living than East Berlin. Standard of living is the level of wealth, comfort, necessities and luxuries available to a certain socioeconomic class or nation. As the living standards were higher in West Berlin, the same amount of work buys an increased quantity of goods, and items that may be seen as luxuries in East Berlin; such as cars, computers, mobile phones etc. are more common in the West. When the unification happened, East Berlin’s
Business Environment
Contents Page 3 - Appendix Page 10 - Issues Currently Affecting the Business Page 16 - Bibliography Page 17 - End Notes a) Appendix This paper will analyse the current issues and trends in the external business environment. An online business dictionary defines the business environment as: "Conditions, entities, events, and factors surrounding an organization which influence its activities and choices, and determine its opportunities and risks, also called operating environment." i In any organization, manager's decisions will be affected by the current issues and trends in the business environment. It is crucial for manager's to consider these issues and trends in order to make successful choices for their organization. The business environment of the United Kingdom can change in many instances. Change can take place in competition laws, global warming, taxation and inflation for example. These changes can be analysed and classified using the PESTEL framework which differentiate between political, environmental, social, technological and legal topics. The external environment also includes possible competitors to the business. (OUP, 2008). In order to produce a report that will analyse the current external business environment, the PESTEL framework shall be followed in order to visualise any issues that may affect the hypothetical firm of choice producing a
The Economics Of Smoking.
The Economics Of Smoking Word count: 1515 Part A There are many determinants of demand, however, only certain factors of demand will be relevant to cigarettes and I will explain why this is so. One of the most important factors of demand is 'price'. Price in fact is a fundamental law of economics that embodied the downward sloping demand curve. In relation to cigarettes it can be said that as the price of cigarettes increases the demand for them decreases, however the change in demand will be less than the change in price as cigarettes are price inelastic due to their addictive nature. The reason why demand may fall even if by a small amount could be due to the fact of "higher tobacco taxes reduce smoking and smoking related sickness as people cut down, stop smoking, or never start because of the high cost" (ASH (undated) basic facts no.3: smoking and economics). The price of cigarettes can be interlinked with another determinant of demand, which is the price of substitutes and supplements. As the price of cigarettes increases (this means the price of all brands of cigarettes generally increase) the demand for substitute goods will increase, however there are not many substitute goods for cigarettes other than cigars, but cigars are generally more expensive than cigarettes. Thus as price of cigarettes increases the change in demand will fall but less than the change in
Transport Economics
Applied Economics and Marketing for Managers Assignment Part B 07235569 0/6/2008 Table of Contents Table of Contents 2 Abstract 3 Comparison of Financial Appraisal and Cost Benefit Analysis 3 Application of Cost Benefit Analysis on Metro Rail System set up in New Delhi 5 Financial Costs and Benefits of the Metro 7 Identification of Economic Benefits and Costs of Metro 10 Reference 12 Appendix 13 Stakeholder Analysis 13 Abstract Governments and private business houses have different objectives to achieve. Hence the approach to appraise the expenditure is different. Financial Appraisal and Cost Benefit Analysis are few techniques used by governments and private sector companies. Private sector companies look at the financial aspect of business, which are the profit, return on investment, net present value etc. State owned enterprise will also look at the society as well, along with the financial aspects. There are many projects that are done in public-private sector partnerships. The rationale behind any project could depend on many factors such as political, social, economic, environmental, technological etc. Transport is one such area where both private and public sector companies are interested. To identify the difference between the approaches that governments and private sectors companies we need to define Cost Benefit Analysis and Financial appraisal.