MKT 545 1. Why did the contraction of the U.S and Japanese economies and the rise in the value of the yen hurt Sony’s exports from Japan? The size of the U.S. economy and political stability, even in the face of a presidential election in November 2008, tend to make the United States an attractive place for investment. Thus the fear factor seemed to be a critical vote for the dollar during the crisis. This is a short-term phenomenon, however, and will eventually be replaced by economic fundamentals.
For example the automotive manufacturer General Motors (GM), in 2008 and 2009, received approximately $13.4 billion in bailout money from the Troubled Asset Relief Program (Tarp, 2012). The money from this program was paid for by U.S. taxpayers and was intended to help the automotive industry through some tough financial times while restructuring occurred. Eventually some automotive manufacturers went through bankruptcy to survive (PolitiFact, 2012). This affected the global economy by showing instability within the automotive industry and resulted in the loss of clients throughout the
BUS 245-03 Assignment 1 Fall 2013 Finance/Business in the news Elizabeth Johnson Bailout of the Auto Industry-Toyota There have been so many incidents of large corporations needing bailouts within the auto industry and Toyota is just one of the many that have needed government assistance because of financial troubles. Some people may wonder if it was or is ethically right to do something like this because of all the controversy behind it like the CEO's and the higher ups misusing the money the government gave them to bailout and help their companies. The government can not predict that so in their own way it is justified to keep the economy up and running. With the economic troubles in the US still at a high, the auto industry has taken
Walgreen’s operates their inventory on a last- in, first- out method to measure their inventory and costs of goods sold. This is a conservative accounting choice for management during the current period of rising prices. Even though we are not experiencing as drastic of price increases as in the past because of the economic environment, LIFO will portray a more conservative gross income and balance sheet. It is also beneficial for tax purposes because of the increase of cost of goods sold. As a result of the increase of cost of goods sold, income before taxes declines and Walgreen’s pays less income tax than if they were to use the first-in, first-out method.
Higher commodity imports such as steel affected the economic trend and reduce profitability due to slower economic growth and post financial crisis collapse in 2008. Social trends are people willing the pay for the best product and have a sense of brand awareness. Brand awareness can be displayed through marketing and advertising a product in magazine and even social feeds like Facebook, Twitter, Instagram, etc. Meanwhile, the technological trends are the increasing for better products with new digital climate control
Assignment 4.1 Model T Henry Ford has become an icon of American society. His dream was to build a car for the masses during a time when cars were a luxury only available for the wealthy. Ford created the Model T in 1908, igniting a revolution in America that changed manufacturing, transportation, and everyday life for the common man. When Ford first began producing the Model T, they were individually constructed by hand and took over twelve hours to complete. In order to make automobiles more accessible, Ford developed a way to automate the manufacturing process by using an assembly line to construct parts and assemble the chassis, thus lowering the price and highly increasing the efficiency.
As the UK economy is experiencing a budget deficit, this increase in tax revenue decreases the deficit and the government may then have to borrow less money to finance the difference. Also, decreasing the amount of people using cars momentarily may lead to commuters who previously drove cars to adopt a change in transport choice. This not only increases tax revenue, but also decreases the social environmental costs of people driving cars. This reduces pollution at a lesser cost than large campaigns. The reveal of the plans for the Olympic lanes was controversial and led to protests led by taxi drivers infuriated that they were unable to use the lanes.
Take gasoline for examples as the price goes up people tend to drive less. These laws of supply and demand also affect business decisions; if wages go up employers will hire less people as this increase in average fixed cost would eat into their marginal revenue. Economists estimate that for every 10% increase in wages workforces are cut by 3% (Danzinger 2009) Minimum Wage Merrell
Low income tax payments are why one-third of U.S. companies use LIFO (Harrison, Horgren, & Thomas, 2010). LIFO also gives the company the most realistic net income figure because the recent costs of inventory are expensed. FIFO would use the oldest costs of inventory which is not a realistic measure of the inventory expense. The ending inventory under LIFO would be lower, due to the highest prices being expensed. If the company wants to lower its income at the end of the accounting period, they would buy more inventory and the cost of that inventory could be used for cost of goods sold.
Ford and the world Auto-mobile industry 2012 Ford And the world Auto-mobile industry 2012 Name: Lakna Peththawadu Stage: 2 Date of completion: 30/11/2013 Page 1 Ford and the world Auto-mobile industry 2012 1) The world automobile industry has experienced low profitability during the past two decades. What features of the industry have caused intensify competition and low profitability? The automobile industry was the homeland of major management concepts that made significant changes in the world economy. For an instance Henry Ford’s mass production and later lean production techniques brought to light by Toyota as a means of catering to tremendous changes requiring flexibility and efficiency. Being the guru of the management techniques, the automobile industry yet face declining profitability owing to its own inherited inefficiencies.