Maybe the type of mode they are using is not the most favorable for them. And because demand for transportation is sensitive to price changes we have to see further in to this problem. Canadians have a favorable advantage over the Clearfield Company because by being subsided by their government they could improve in a much rapid way and having a good exchange rate makes their costs to be less that the Clearfield Company. Because the cut in costs, the Canadian company has a much broader amount of choices of transportation to choose from because they have more money to spend in transportation, contrary to Clearfield that have more costs in the inventory and transportation costs. This permits Canadians to choose a more efficient and effective mode, because they have more money to spend, therefore more options to choose from than Clearfield.
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.
Economic Growth- And since ethanol is home grown in the United States it means more and more job creation. There will be a big need for blue color workers in rural areas, a job market that has been seriously struggling lately. Cons- At present, demand for natural gas, especially from the industrial and electric power generation sectors, is growing at a faster rate than that which supply can meet. Price- When used near the site of its production, natural gas is inexpensive to produce, but the process needed to compress and liquefy it is costly and energy-inefficient, and natural gas cannot easily and efficiently travel or overseas without being compressed or liquefied. It is said that in areas were ethanol is produced people will save up to 20-30 percent each gallon.
First, cars should be more efficient because the cost to the consumer may decrease. Although consumers may pay much more for an efficient car, “the total cost to the consumer over the life of the vehicle, which includes the purchase price plus fuel, might actually decrease”(Turk & Bensel, 2011, I-5). Indeed, the total cost to the consumer may decrease the amount of money spent on the vehicle. These savings would come from the purchase of gas, as you can cut fuel consumption in half with an efficient car as compared to a conventional car. With gas prices soaring all the time, the less gas a car needs, the better for the driver.
However, due to the higher prices, there is a certain segment to which these brands can appeal to – this strengthens the power of the buyers. Because of the high competition and many brands within the industry – there are low switching costs for the buyer. This is complemented by online shopping, which means that the retailers do not even need to be physically in the same place. This lowers the switching costs for the buyer and increases their power. The rise of the ethical social consumer and the information availability that came with the internet made the buyer demanding and less likely to develop loyalty towards a brand – this increases their power.
Economic recession has some impact on the drop in sales. With less disposable money, the consumers not only tend to spend less money in purchasing goods, but also become more economical in using cleaning products, replenishing those products at a slower rate than they did before the recession. Besides the economic downturn, the competitive environment provides another impact on the sales. Since more and more private-label products are penetrating the cleaning market with a lower price, the branded products are losing their market share. What’s more, even among the branded products, CleanSpitze has a relatively high price, which makes situation worse.
The price of fuel does influence them though, the biggest benefit is the effect on the customers, the lowering of the price of fuel means that people will, in effect, have a small pay rise, this will help KI as this will increase their customer’s disposable income and increase their consumer confidence. KI will always have oil related costs linked to their business as they use energy that is produced from oil and resources that wouldn’t be possible without oil e.g. polymers. The lowering of the oil price will help KI to maximise profits as they will be spending less on things that are oil based. KI may see people coming from further afield as the customers may thing that this drop in fuel price will allow them to live further away from their jobs or travel further to work.
As a firm grows the average cost of advertising per unit will fall, leading to lower average costs. e.g., small firms are unable to afford large scale advertising campaigns, while their larger competitors are able to finance television and radio campaigns. b) Explain two reasons why McDonald’s will be able to achieve more marketing economies of scale than GBK. McDonald’s is the market leader in the UK; the company is a much bigger firm than GBK with 1,225 UK outlets. A large firm can spread its advertising and marketing budget over a large output and it can purchase its inputs in bulk at negotiated discounted prices if it has sufficient
Hybrid Vehicles Are hybrid cars worth buying? As gas fluctuates, it’s fair for us to think that the price is slowly going to go up for the time being. Whether we drive a gas-gulping SUV or even a hybrid car, the concern for gas consumption remains constant. I think with the gas prices being so high, many people will start buying hybrid vehicles, and will not make any effort to research the facts that come with owning one. Some may say that hybrids are beneficial to the economy but they leave out the high costs, safety issues, and difficulties that come with buying a hybrid vehicle.
Switching to alternative sources such as electric cars can help pull this number down significantly. Electric cars are more affordable as Electricity is cheaper than gas, and can come from renewable resources such as solar and wind power. Electric cars pollute less than gas-powered cars, which makes them better for our environment. Electric cars are much more reliable and require less maintenance than gas-powered cars. By using domestically generated electricity rather than relying on foreign oil, we can achieve energy independence and will no longer need to engage in costly wars in the Middle East to secure an energy supply.