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

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Economics: Downgrading of the US Credit Rating

ECONOMICS: DOWNGRADING OF THE U.S. CREDIT RATING Economics: Downgrading of the US Credit Rating Miranda Noh [University] Economics: Downgrading of the US Credit Rating Financial analyst, investors, bondholders, and the government have used the three major credit ratings. Their ratings are accepted worldwide and they have a large influence on investment decisions. Whenever a prospective investor intends to invest either by additional shares or as new investors the investor consults creditable, reliable, and most current information on the target company or investment security. In addition to such information, the investor who is experienced in the bond market and in the equity market would still add on his/her own assessment either base on the experience or by mere gut feel. The investor who is making a scan on the investment horizon would analyst not only the target company or security but also other potential investment opportunities in the market. This credit rating a companies, however, more often is used on private sector entities that issue debt instruments like bonds and equity shares. The private investors on privately issued debt instruments and equity shares put a heavy weight on the ratings issued by the three credit raters. Seldom if ever do they use the ratings on government bonds, most particularly on the United States bonds issued by the

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  • Subject: Business and Administrative studies
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Chinese investments in Africa

CHINESE INVESTMENTS IN AFRICA China’s growing involvement in Africa has raised concern from western countries for the past decade. China claims to have distinguished itself from western countries with regard to its Africa policy by a great financial involvement based on “political equality and mutual trust, economic win-win cooperation, and cultural exchange”[1]. Indeed, as Hu Jintao says, “China and Africa are good friends, good partners and brothers”[2]. Chinese “investment” in Africa involves political, economic and cultural exchange. Trade, investment and aid are the three main economic components of China’s Africa policy. In order to understand the full scope of Chinese investment in Africa, we first need to define the terms more precisely. Chinese investments in Africa don’t, for example, include Taiwanese investments in the continent even though China imposes the One-China policy. Then, even though Africa is not only a continent but also a full range of countries, we’ll tend to consider Africa as a whole entity (excepted Maghreb) because many of the African countries have similar political and economic characteristics. Trade, investment and aid are the three main components of China’s economic engagement in Africa. These terms are not always distinguished because they are tightly link together: concerning China trade is end to the investments

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  • Subject: Business and Administrative studies
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India: Current Economic Reforms and its impact on Credit ratings.

________________ Indian government is pushed into dark corners from all sides. Policy paralysis, rising food prices and inflation are creating huge unrest among the general public. The corporate sector too is not happy with the way the government is functioning. Global rating agencies like the Standard and Poor’s and the Moody’s have downgraded India’s credit rating from ‘Investment’ grade to ‘Speculative grade’. Also it has come out heavily criticizing on the Congress’ leadership over its inability to convince neither its own allies nor the opposition and push the reforms measures. Also, Congress is widely split within itself on economic policies and there is serious opposition to any kind of attempt towards liberalization of the economy. But things have started rolling recently after the new finance minister has taken charge. A host of new announcements have started coming up to save the sliding economy. This is widely perceived as Reforms 2.0 in continuation to the reform measures which Dr. Manmohan Singh had initiated during 1991. The government has started wooing foreign investments and rationalising subsidies. The cabinet has approved to open up FDI in major sectors like airlines, retail and insurance which have created political heat. Some key allies have seriously condemned the move and left the coalition, creating serious threat to the smooth passage

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Economic Indicator Project - analysis of the US Economy and Advice to the Fed.

Economic Indicator Project Brian Tessler AP Economics Mrs. Fischer 7 December 2012 The current condition of the economy can be described as stagnant recovery. Although the economy has been recovering, it is doing so at a slower pace than people had hoped and expected. These trends can be seen in many of the major economic indicators, including Consumer price index, Gross Domestic Product, industrial production, and retail sales. As a result, the U.S. economy has still not fully rebounded from the recession. Consumer price index is extremely important to the total economy because it is a measure of the change in the average price level of a fixed basket of goods and services purchased by consumers. CPI is the most widely followed monthly indicator of inflation. The CPI is considered a cost-of-living measure since it is used to adjust contracts of all types that are tied to inflation. Labor contracts are tied to changes in the CPI; Social Security payments are tied to the CPI; and even tax brackets are tied to the consumer price index. As for the current condition, consumer price inflation dropped in November on lower energy costs and the core rate softened. The consumer price index in November fell 0.3 percent, following a 0.1 percent increase the month before. The latest number posted lower than the consensus forecast for down 0.2 percent. Over the last year, CPI

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  • Level: University Degree
  • Subject: Business and Administrative studies
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How did Japan perform until 1991? How do you explain this performance?

Pinyada Khaochan 504 32655 26 .How did Japan perform until 1991? How do you explain this performance? The stimulus of Japanese economic miracle was the sorrow and revenge of the Japanese after surrender in World War II that had severely affected Japanese way of living. Likewise, it pushed the Japanese together to work harder for economic reform. Japan experienced tremendous economic growth and becomes the second largest economy in the world in 1968[1]. There are several underlying mechanisms behind the success of economic and social recovery. First, Japan was strategic and competitive in terms of trading. This includes the concept of Neo-mercantilist[2]; in other words, it encourages exports and discourages imports both physical goods and capital where it had advantage over America in terms of balance of trade. Another example is “Keiretsu”[3]- a grouping of enterprises with the same core business. This integration allows them to be more industrial efficient resulting in economies of scale. Second, Japan’s labor force was growing in number as well as productivity. People worked long hours and were dedicated to the company because of permanent employment policies with attractive wage. They also placed importance on bank savings, which enable banks to give loans for further investments, creating more jobs and raising the standard of living for the Japanese. Third

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  • Subject: Business and Administrative studies
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Perfect competition versus Monopolistic competition

Introduction There are a lot of chicken meat producers in the market. There is a significant increase for chicken meat producers time by time. All the typical chicken meat producers are earning zero economics profit. This scenario happened can interpret with the economics model, perfect competition. In perfect competition, all the typical competitors are earning the normal profit and there are few repeating steps in the process. There are several ways to escape from this. One of the methods is by applying the theories of monopolistic competition model in the market. Under monopolistic competition, non-price competition is the marketing technique which helps those typical producers to escape from perfect competition. Perfect competition In perfect competition, there are 4 main assumptions in the market: Price taker, freedom of entry, identical product and perfect knowledge. There are a lot of firms competing in the chicken meat market. These firms are known as the price takers. Due to the large amount of firms, each firm is producing an insignificant small amount of the chicken meats in the entire market. They cannot control the price of the chicken meats in market. Another aspect would be the freedom of entry and exit, the existing chicken meat producer cannot stop new firms coming in. In addition, all firms selling identical or homogeneous products, in perfect

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  • Subject: Business and Administrative studies
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Causes and Effects of the Global Financial Crisis

U.S. & Eurozone Financial Crisis ________________ Uzma Altaf ERP # 04128 ________________ Table of Contents Causes contributing to the development of financial crisis in the US & the Eurozone Greed! The Housing Bubble in the U.S. & Eurozone NINJA Loans & Speculative Purchases Chinese mercantilism And Then the Bubble Burst! Role of Credit Rating Agencies Role of Regulators Net Capital Rule Relaxed No Regulation of Shadow Banking System Allowance to meddle with accounting rules Self-regulation of derivatives Removal of the Glass Steagall Act Corporate risk-taking and leverage Different names, one purpose (of investment portfolios) Mark-to-Market Accounting Challenges facing economic managers of US and Eurozone today The Federal Budget Deficit Lengthy Recession Risk of a country exiting EU Stimulus Programs The Housing Market Remains a Challenge Dodd Frank Act Position of the banking system in the U.S. Limited ability of Germany in EU’s bailout plan Austerity or no austerity Pressure on fulfilling promises on Hollande Effect of people’s perception of Mario Draghi Domino effect Bibliography Causes

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  • Subject: Business and Administrative studies
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European Business Environment. In this portfolio I will cover the topics regarding how and why the EU was formed along with the EUs environmental policy.

European Business Environment Assignment Contents Page ________________ Introduction………………………………………………………………………………………………………………page 3 How and why the EU was formed? ...............................................................................page 3 The European Union’s environmental policy…………………………………………………………….page 9 References……………………………………………………………………………………………………………….page 12 Introduction ________________ In this portfolio I will cover the topics regarding how and why the EU was formed along with the EU’s environmental policy. The information provided will be in a guide format, using articles and diagrams to enhance the points being made. The guide will include the history behind both subjects, discussions regarding their prerogatives and where these subjects currently stand in society. How and why the EU was formed? ________________ In order to understand how and why the EU was formed, we have to go back nearly 150 years in history and look at what was happening within Europe at that time.1870 was the year the Franco-Prussian war started between the second French empire and the kingdom of Prussia. The cause behind this war was mainly to do

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  • Subject: Business and Administrative studies
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Economics Questions on National Income, Aggregate Demand and Business Cycles.

F101ECO – Assignment 2 Calum Stringer 0600532 Q1A When determining National incomes there are three methods: There is the expenditure method: This is when all the spending in the economy is totaled up using this formula: C + I + G + X - M. This represents Gross Domestic Product (GDP) at market prices, it includes: . C = Consumption. 2. I = Investment this includes: Unplanned increases in inventories or stocks and planned investment in capital. 3. G = Government spending on services and goods. 4. X = Exports that the economy receives. 5. M = Imports this must be deducted because of the spending on services and goods from external economies. The income method takes into consideration the sources of income in the economy. Transfer payments (unemployment, welfare benefits and pensions) are not included: no service or good is created for income. Income includes: . Salaries and wages. 2. Self-employed income. 3. Profits that have been split into dividends with undistributed or remunerations retained. 4. Rent that includes costs of any raw materials, any intermediate inputs and attributed rent on owner-occupied housing. 5. Interest. The output method which adds up the value added by a business’s production: . The value of the business’s output less the value of inputs 2. Instead this method totals the output of final services and

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  • Level: University Degree
  • Subject: Business and Administrative studies
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