Being reactive or proactive is not just a mind-frame, it is also a potential business strategy depending on what the situation calls for. Reactive is when you react to situations affecting your business. For instance, say your competitor lowers the price of their goods. Your natural reaction is to cut down on prices too. This may seem like a viable solution at first, but reacting to situations the same way at all times may not the best solution for your business.
Exports of mining, petroleum, and infrastructure equipment may help multinational corporations and developed countries access cheaper raw materials, with few benefits for the residents of developing countries. Changes will help increase imports, but in return will drain the treasuries and currency reserves of developing countries and create heavy debt burdens. Question #2: The Ex-Im Bank will provide innumerable federal programs for the subsidized U.S. companies which will include financing and insurance (Ball, Geringer, McNett, and Minor, (2013), pg. 351). Many U.S. companies claim to oppose foreign assistance linked to
It is also necessary to allow foreign products to come in so competition will increase. Basic ally, the underlying flaw under foreign product taxes is that it cuts off greater innovations and negatively affects our economy. -Even if we wanted to improve, remove taxes b/c by imposing taxes we don’t accept new ideas into our companies and nothing is innovative anymore. We are promoting isolationism -By allowing foreign products to come in, competition is brought about and we work to improve upon it. Each side improves the product and it continues in a circle.
Mandatory standards are needed because companies might want to make the accounts appear unrealistically favourable. If this were to happen then shareholders would not be obtaining an accurate view of the business. For example, if discretionary expenditure were deferred, such as spending on research and training, then earnings would be artificially improved. There is a need to make it more difficult to manipulate accounts such as by deferring expenditure. 2: The background in the United Kingdom In the 1960’s confidence was lost in accounting procedures.
Corporations make profit off the products they sell to the consumer.The products they sell provide the consumer with a desired form of relief he or she wants.No corportion would sell a product that would harm the consumer ,however some products sold harm the environment and in turn affect the consumer. Therefore it is up to Large corporations to minimize the amount of damage their products inflict on the environment. Corportions could produce products with materials that release less toxins and harmful agents into the environment when disposed of.If the product cannot be created from 100% bio-degradable and non-toxic materials, corporations should find alteranative measures for limiting the damages caused by the harmful byproducts of the products they sell. Example, corporations could develop stations in which consumers could bring in their used up products for safe disposal at little to no cost. Every corporation is created in order to make profit and provide a service or a product to the consumer.Most consumers do not understand the complexity of the products they buy and the possible harm they could cause.Since large corporations created such a product, they alone have the knowledge of how to safely dispose of their product.Therefore corporations should provide information on their products to aid the consumer to understand the possible dangers of the products they purchase and how to dispose of them safely.
A high stock price decline after an earnings announcement can often be a reason for investors to accuse a company for having withheld important information. In order to avoid these legal costs a manager can preempt the disclosure of a large negative earnings surprise. Such voluntary disclosure makes it harder for plaintiffs to claim a manager withheld information as the plaintiff cannot know exactly when the manager obtained the bad news. It also limits the time period of nondisclosure and thereby the possible damages which can be claimed.51 The voluntary release of earnings forecasts can also be beneficial for a company. When there are changes in the environment of a company and managers release an adapted earnings forecast, they demonstrate their ability to anticipate future changes.
This is unlikely to be the case in the UK at the moment as low interest rates and a large budget deficit has not cause significant inflation. A further conflict with loose demand side policies might the effect on the current account. With higher economic growth and consumption, we might expect an increase in the demand for imports and a worsening of the current account. This is likely to be a fairly significant effect for the UK because it has a high marginal propensity to import – especially for manufactured goods. Furthermore, if there is inflation from the demand side policies then there will be a fall in UK competitiveness and a
Cigarettes and alcohol are inelastic products because they can be said to be ‘necessities’ for some people. Those people may be addicted to those demerit goods, so even if the price is highly raised those people will still purchase those goods. The governments impose indirect tax on to those goods because they are aware of the consequences of those demerit goods. When the tax is imposed, the price of those goods will rise, which means that the quantity demanded may fall (though it might not be a large fall). However, the government prefers to impose tax on inelastic products like cigarettes and alcohol because this will not lead to the consequence of unemployment, which is caused by the large fall in demand for production.
So just as profits reward producers for making things people want to buy at prices they are willing to pay, losses punish producers for wasting resources and producing things people don’t want at a cost consumers are not willing to cover. Negative profits and business failures serve a productive function in the process of business growth and development. When one business enterprise in a market economy finds a way to lower its costs, competing enterprises have no choice but to scramble to try and do the same. Any change in the economy, such as an increase in demand for a product, requires further changes and adjustments in many aspects. Any kind of change in the output of one product will most likely require changes in other markets, as well, and will start a chain of adjustments.
An increase in the price of raw materials against a depreciating US dollar will severely cause costs to become inflated leaving less room for profit margins. Despite all these, the external markets did play a biggest major role in influencing the decision to restructure, and it turned