| | | the per-worker production function shifts to the left. | | | the per-worker production function shifts to the right. | 10 points Question 4 Creative destruction means that Answer | | firms develop new products that replace old products in the economy, thereby encouraging economic growth. | | | research and development should only be financed if research and development is incremental (a result of making small changes to existing products). | | | knowledge capital can be created through a system of government subsidies for education and research and development.
GDP composite of china 2009 Physical capital accounted for almost 50% of total growth and labour for only a little over 10% over recent. Total factor productivity contributed the remaining growth, partly driven by the reallocation of labour from the rural sector to manufacturing. China’s savings are high but it is not the household saving, it is unchanged since 1990's, therefore the consumption is 35%. The corporate savings have increased due to the firm tendency to retain earnings. According to World scope data, over half of listed Chinese industrial firms did not pay a dividend over the past decade.
These reforms led to China’s integration into the global economy, which promoted growth and development. Since the integration of China to the global economy, its annual growth of real GDP has averaged 10% between 2004 and 2008, which is very high. However, due to the Global Financial Crisis (GFC), this rate of growth in real GDP slowed down to 8.7% in 2009. China’s government, suspecting this, implemented a US$586b fiscal stimulus package in November 2008 to maintain a growth of 8% between 2009 and 2012. This stimulus package did greatly for China’s growth as its real GDP was at 10% in 2010 and 9.2% in 2011.
Assignment: #4 Case #10 Nucor Corporation BUS 599 Discuss the trends in the steel industry and how it may impact Nucor’s strategy. After the 2008 financial and economic crisis, the world steel industry’s recovery has been uneven, but it is recovering faster than expected. The global steel production declined from 129 million metric tons (mmt) in March 2011 to 127 million metric tons in April 2011. However, production increased 5 percent from April 2010. As of the April 2011 first quarter reporting, the United States has produced 28.3 mmt, which is up 6.8% from the same period last year [ (Leybovich, 2011) ].
Paul Geary 10109099 Project A: Okun’s Law United States 4th March 2011 Above we see the Business Cycle for the United States displaying both the Unemployment rates and the Real Growth GDP in percentage change over the last 30 years. There are clear indicators that the US economy has had clear stages of economic over-cooling and over-heating during the last 30 years. Between 1981-1985 the US economy expanded greatly except for a 4% drop in 1983. This rapid expansion was clearly unsustainable, as we see with the gradual contraction in the size of the economy from 1986 to1992 where GDP was barely 1% and unemployment reached 7%. We see this again from 2004 all the way to 2010 with unemployment increasing to 10%.
The 2012 net income of $44.88B reported showed a 9.30% growth of $3.82B compared to the $41.06B in net income reported in 2011 (ExxonMobil Corporation, 2013). While the amount of growth is substantial when standing alone, it was modest when comparing the 2010 and 2011 reporting periods. That time frame saw a 34.80% growth which equaled $10.60B (ExxonMobil Corporation, 2012). When considering ExxonMobil’s cash flow, one finds that cash flow for 2012 was a negative $3.08B. The company’s cash and cash equivalents started the year with $12.66B and ended with $9.58B, a 24.83% drop during the year.
When the taxes for the corporate were cut this should have led to the corporations cutting the cost of their produces’ but this does not happen. When Ronald Reagan won the presidency in 1980 President Reagan started to implement economic policies; and after his first term President Reagan had cut the top tax rate from 70% down to 50% and when he left the office in 1989 it was down to just 28%. The federal government revenue was cut very significantly that funding for basic programs went away. With the lack of money the country had to spend President Reagan still increased military spending to $456.5 Billion by 1987. With Reaganomics at full steam ahead the wealth and posterity did not “trickle-down” as
Checkpoint: Reagan's Economics Kurtis Saal HISTORY Checkpoint: Reagan's Economics Reaganomics was a term used during Reagan’s term in office when referring to Reagan’s Economic policies. The main hypothesis of the Reaganomics was to change the course of the United States economic policy. The plan of Reaganomics was to reduce income, reduce capital gain marginal tax rates as well as the spending, and wanted to reduce the regulations such a way to control the money to reduce inflation. Reagan’s world class objective was to weaken the big Government during his term as President. He wanted to return the Nations Government to what and how it was as well as what it possessed in the 1950’s, this was before the Kennedy and Johnson Reforms.
Operating income moved along the same path for the period albeit at a lower rate. The company’s invest ment in its self-insurance fund and interest income contributed significantly to the difference between operating income and net income. Revenue fell off by 12% in 2009 however; it increased by 22% in 2010. The company was able to increase it domestic and commercial rate after an application was made to the Fair Trading Commission. Fuel expenses grew at a faster rate than sales, fuel costs although seeing a fall off in 2009 by 20.52% rose by 29% in 2010.
1.What is the impact of the December 1993 shipments of conventional lenses to Bausch and Lomb 1993 financial statements? Is the impact significant? The impact was:- i)Increased revenue by $22M ii)Reduced inventory by 1.8 million pair. Based on the COGS of 45%, this could mean a reduction in inventory of close to $10M. iii)There is very little increase in SG&A as not much was spend in terms of sales effort.