| European competitors were not active in product R&D | B. | American firms were able to take advantage of tax credits for product R&D | C. | The wealth and size of the U.S market gave the firms an incentive to develop new products | D. | The low cost of U.S. labor gave U.S. firms an incentive to develop costly process innovations | | | 11. In recent decades, tariff barriers have been _____ while non tariff barriers have been _____. | | | Student Response | A. | Falling, rising | B.
As stated in extract 1, it tells us that the goods we import are not made in the UK and so makes it impossible to replace the imports, therefore meaning that we still have to import goods, despite the high prices due to the low exchange rate of sterling. This is partnered with the fact that some suppliers (shown in extract 1) have agreed long term supply contract with cheaper overseas suppliers before the depreciation of the sterling and so they are now paying high prices. This may mean that these suppliers may have to increase the prices of these goods, therefore leading to cost push inflation due to trying to maintain a decent profit margin in the hope the demand for the good does not drop dramatically. However, it is stated that there still may be a large price differential with countries such as China and India, even after sterling's depreciation. On the other hand however, as stated in extract 1, line 8, volume of good imported has also increased by 16% and inflation has continued well above target.
However, it will increase Johnson's current tax liability. There is usually no advantage to an S-corporation for a wealthy individual who is already in the top tax bracket. S-Corporation income tends to favor start-up businesses and taxpayers with little income, because the corporation is taxed at the individual's lower personal income tax rate. Should Mr. Jones merge Johnson Services with Smithon? What
The net gain for the state was $424.7 million, according to the report. Yet, the same study found the opposite trend for local governments and hospitals, which experienced an estimated net loss of $928.9 million in 2005 due to undocumented immigrants (Evans). Illegals also pay taxes when buying commodities and by taking part in the market place, they are technically increasing the nation’s economic strength, and that their cheap labor leverages the prices for commodities in turn making goods more affordable for most Americans. Also, worth mentioning in regards to any positive element illegal aliens might have to offer is their participation in invention and technological innovations for the
International Trade ECO 372 University of Phoenix There are many contributing factors to the stabilization and prosperity of our global market. We, the United States, are living in a time of severe trade deficit, meaning that we are importing many more goods than we are exporting. While it is nice to be able to buy foreign products at a lower price, there is risk in doing so. When we purchase foreign goods over domestic at lower prices it forces our domestic companies to sell their goods at lower prices to remain competitive. These lower prices may lend to making enough profit to sustain the current workforce.
Task 8 part 1 |Ratio |Calculation |Answer for 2009 |Explain how this can this ratio be used to monitor performance | |Current ratio |Current assets/current |6178/1391=0.44:1 |This ratio shows that they are not in a strong position to pay long term debut because they have | | |liabilities | |got less current assets than current liabilities. Tesco can’t pay short term debut which means it | | | | |has weak liquidity. In order to pay of the short debut they would have to have an increase in | | | | |sales or they would have to take out an additional loan, this would be accessible because the bank| | | | |knows that Tesco is a big store and can afford to pay people back. | |Acid Test |(Current assets – stock)/ |6178-2669=3509/1391=0.25:1 |This shows the ability to pay short term debut without selling stock first. The ideal answer for | | |current liabilities | |this ratio is 1:1, Tesco is way under this ideal ratio which means they’re in a poor position to | | | | |pay short term debuts because they have four times as many debuts than they have current assets.
Because of their consistently low prices on products, their competitors have lowered their prices in order to compete with Wal-Mart. In turn, this has driven overall prices down. Wal-Mart has also created many new jobs and increased tax revenues. Businesses that are located next to Wal-Mart stores have also benefited from them because customers who are shopping at Wal-Mart will stop at other businesses before or after shopping at Wal-Mart ("Walmartstores.com: Economic Opportunity"). Because of the impact Wal-Mart has had not only on the retail industry in the United States, but also globally, I think it is safe to say that Wal-Mart is a very secure company.
Reed’s executives attributed decline in sales in last five years to encroachments by superstores & warehouses. Because of Reed’s emphasis on the quality & service, customers perceive its prices to be high & same was endorsed by a study. Because of higher prices & its full service offerings, Reed’s average value per transaction was higher than the national supermarket average. There are many competitors in the Columbus market which had different positioning as compare to Reed supermarket. The details of major competitors are as follows, a) Delfina was considered high-end & had 9.58% market share b) Galaxy Chain had medium-end products, was poorly located & marginally profitable.
In 2008, the souring economy hit Whole Foods rather hard. Sales increases at Whole Foods stores open at least one year rose only 0.8 percent in 2008 versus 8.2 percent in the previous year. In August of 2008, Whole Foods announced that planned new store openings for 2009 would be reduced. Whole Foods had to back out of signed leases or revise the lease terms of 70 new stores that had been scheduled to open in 2009 and 2010. Whole Foods recently arranges to sell $425 million of preferred stock to private equity investors, which equated to an ownership interest of 17 percent in the event the private equity investors exercised rights to convert their preferred stock into common
dollar relative to other currencies also affect employment levels. According to Economist Christina Romer wrote in May 2011: "A weaker dollar means that our goods are cheaper relative to foreign goods. That stimulates our exports and reduces our imports. Higher net exports raise domestic production and employment. Foreign goods are more expensive, but more Americans are working.