Firstly, if consumption falls for foreign goods then this will better the current account deficit or improve the surplus. This is because consumption falling for foreign goods means that less must be imported to the UK which is sending money abroad. Therefore, if the fall in consumption is in just foreign goods and domestic goods remains the same, then imports will reduce and exports will remain the same. As the current account is calculated using the equation ‘exports - imports’ then smaller imports will mean this equals a higher value resulting in a surplus or a reduced current account deficit. On the other hand, the fall in consumption does heavily depend on where the fall is.
Promoting an employee from within the company can benefit the employee and the company. Promoting an employee who has shown superior job performance is a good way to reward a hardworking employee. With internal recruitment, a company does not face the issue of hiring someone that the company knows nothing about. Unfortunately, internal recruitment is limited because there may not be any employees capable of fulfilling the position. External recruitment by means of applications and resumes may increase the chances of hiring an individual who does not perform well at the job.
This will take money out of the circulation. Demand for domestic currency will increase, and lead to an appreciation in value, causing an increase in exchange rate. A higher exchange rate will lead to a fall in the cost of imported goods and services but also a fall in demand for exports, this cools off the markets and brings down overall demand, price goes down. Moreover, a rise in reserve requirement means banks need to devote more reserves to back up deposits; banks make fewer loans with higher interest rates, which discourage people from lending money. Low purchasing power will directly affect the aggregate production, with fewer resources are used, unemployment rate rise, there is less pressure on price, and therefore reducing the inflation rate as the supply is greater than demand.
Q2 What cost savings do you predict from the Charlotte Pilot? The centralization pilot program has advantages over the usual decentralized structure in terms of saving cost. In declining economic environment and increased competition, centralization has the potential to reduce the dormant staff especially the multiple credit managers who are allocated the same branch office. In addition, centralization will ensure that Ferguson rides on the informal performance ranking. Duplication of duties occasioned by decentralization consumes much of Ferguson revenue and thus the intended centralization will eliminate this weakness.
This is because when taxes are increased a smaller amount of income is retained giving people the incentive to declare lower incomes to the HMRC so that they fall into a lower tax bracket. Moreover people may take incomes as a share option. This is because capital gains tax is at a flat rate of 18% therefore much lower that income tax allowing people to retain more of their incomes and enjoy better living standards. This will result in a reduction in the government’s tax revenue as people are paying less tax, which will lead to further increases in the deficits. Secondly high taxes create disincentives to work and this can be analysed through income and substitution effects.
He talks about the behavior of utility maximization, which is about what will provide a person the maximum utility by making rational decision. However, we know that our behavior is irrational and what makes us happy. “So the orthodox economist’s premise that we can figure out what constitutes a good economy by summing the rational individual actions of consumers is suspect.” Mckibben says. He also claims that people do not seem happier even they have more stuffs because they very act of acquiring stuffs has turned us into more individual and less participate in the community, isolating ourselves in a way that runs contrary to our most basic instincts. He uses example of Chinese workers to make a point that China’s economic growth is the fastest in the history and indeed lifting lots of people out of poverty and in the process making their lives happier; but then he proves that his point was wrong by researchers report.
c. Migrants may take jobs of current citizens, putting numerous individuals out of work. d. Immigrants will bring ideas and products to the states, causing a benefit to the nation. e. Cheap labor will be much more easily accessible, but the individuals put out of work will be dissatisfied. f. It should be questioned why local citizens should have the right to jobs and markets before
Co-op, however, can experience disadvantages from being ethical. A main disadvantage is that prices of products and services may have to rise. This is because some ethics have a cost, for example the co-operative bank have had to turn away business worth £1.4bn since they introduced their ethical policy, this means average unit costs will be high as they are receiving less profit. Something else that may cost more for co-op is if they try and reduce green house emissions when they are producing products or delivering services. This can be very expensive and they will have to compensate by increasing the prices of the products.
Market failure can be caused by a.|foreign competition.| b.|externalities.| c.|low consumer demand.| d.|scarcity.| ____ 3. Externalities cause markets to a.|fail to allocate resources efficiently.| b.|cause price to be different than the equilibrium price.| c.|benefit producers at the expense of consumers.| d.|cause markets to operate more equitably.| ____ 4. When externalities are present in a market a.|the established equilibrium maximizes the total benefit to society as a whole.| b.|market participants lose some market benefits to bystanders.| c.|both equity and efficiency are maximized.| d.|the market fails to allocate resources efficiently.| ____ 5. A negative externality a.|is an adverse impact on a bystander.| b.|causes the product in a market to be under-produced.| c.|is an adverse impact on market participants.| d.|is present in markets in which the good or service is undesirable for society.| ____ 6. When negative externalities are present in a market a.|producers will be affected, but not consumers.| b.|overproduction will occur.| c.|demand will be too high.| d.|the market will still maximize total benefits.| ____ 7.
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. This is done in order to pay less tax. One problem with LIFO is that it is not allowed under the IFRS. This can create a problem when comparing a U.S.