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.
Innovation impacts the cost of production as well. Even the innovation helps in lowering the cost of production and making economies more efficient – producing more outputs with the same number of inputs. Technology affects market structure. In today’s market world, technology advances more rapidly because individuals gain incentives, in the form of profits, to discover new and cheaper ways of doing things. Even the dynamic efficiency refers to a market’s ability to promote cost-reducing or product-enhancing technological change.
However, pensioners will be hit hard because the extra income they earn from saving will have dramatically reduced, making them worse off. On the other hand, savers may leave the pound for better interest rates in other countries (hot money), causing a fall in the demand for the pound. As a result the value of the pound will fall, making exports cheaper and there will be an injection of net exports. In conclusion, the impact of loose monetary policy will be beneficial to the economy because extra consumption and investment will cause AD to increase which will increase economic growth. However, it takes a long time for changes in interest rates to feed through to consumption and investment and by then the economy may have gotten worse.
Explain the unique features of Benihana and discuss how these impact the financial performance of the company. Your answer should be brief (one page or less) and be submitted as an ATTACHMENT Key unique features of Benihana 1. The Optimal Space Utilization: The restaurants have about 8% more than average productive dinning space. 2. Location Advantage: The restaurants are located in heavily populated areas so as to attract clientele for lunch and dinner.
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.
The swipe machines can be bought online for around $25.00. The restaurants would pay the equipment costs to the University. The university will pay their current cots for the current meal plan so the only extra costs would be the costs for advertising to let the students become aware of which restaurants participate in the program. The break-even point could be reached within the
Suggest why some people and not others benefit from the growth of Transnational Corporations (TNCs) Some people benefit from the growth of Transnational Corporations than others. MEDC’s benefit from the growth of transnational corporation because of cheaper imports from LEDC’s which benefit the consumers in MEDC’s as the prices will be cheaper, resulting in high produce, cheap price and ability to appeal to its market and compete with other companies. Another benefit of TNCS is that the loss of industry to LEDC’s can improve the environmental quality in MEDC’s, therefore reducing their CO2 emission and helping combat climate change. LEDC’s do to some extent benefit, as the workers has access to employment and the development of new skills. This will mean the population will have more money which will go into the economy, this will mean more income for improving infrastructure and services.
Academic Summary: Brownlee In the editorial, “It’s Portion Distortion That Makes America Fat”, economist Shannon Brownlee discusses the topic of obesity in America. She claims that fast-food restaurants do well economically when we gain weight. She begins by introducing information about different cases where fast-food restaurants have been the cause of the obesity in persons. She provides previous background about the topic referring to how people used to eat back in time. In addition, Brownlee claims that the reason of fast-food restaurants work is by marketing.
5.0 points) Working for someone else I could develop good communication skills and become an effective leader by observing the good and bad points of another business owner. Having good communication skills would probably help me be more persuasive with employees and have a happy customer base. This would lead to a good reputation and having repeat business and also of becoming more of an
In general, this indicates that investors are expecting higher earnings in the future. Compared to the industry WFM P/E ratio is above the industry average. Whole Food Market liquidity is higher than its competitors. Whole Foods Market’s quick ratio is 0.81, Kroger’s quick ratio is 0.23 and Safeway Inc. has a quick ratio is 0.23. A ratio of 1.5 or greater is considered adequate to cover short term debts, and a ratio of less than one is a clear warning signal that a company may not be able to pay its short-term debts.