A higher sales revenue will occur for etisalat which means the income the company receives from business activities, usually happen from sale of goods and services to customers. Etisalat will also have more opportunities to invest in upcoming projects. If the opposite occurs and etisalat has low availability and higher costs it would mean, people spend less on their goods/services which would mean there’s a low
This occurs with first degree price discrimination as consumers must pay the maximum that they were willing/able to pay, which may lower their real income. Moreover, the consumer surplus that they would have obtained at a lower price is transferred to the producers meaning that the producers gain at the expense of the consumer, which is definitely undesirable. On the other hand, although the consumer may be disadvantaged, the producer is likely to benefit from the price discrimination in this way, especially if the firm is a dominant or monopoly firm, as it has the ability to set prices higher than they would be in a perfect competition model. Higher prices means that the firm’s revenue will increase, and it is likely that their profit will too, as monopolies are able to extract consumer surplus and transfer it into supernormal profits. Consequently, these profits can be reinvested into the
However, because foreigners are willing to work for less money, it gives them a more adept position in the American economy and working force, regardless of their education. Therefore, the abundance of labor creates a shortage of jobs which in turn leads to a “rough estimate that suggested that as many as 42 million jobs, or nearly one-third of the nation's total, were susceptible to offshoring” (Gosselin, pg 2). In essence, it doesn’t matter how much you know, but rather how little you will work for. The Social Problems textbook states that “the globalization of the economy is not a neutral process. Decisions are based on what will maximize profits, thus serving the owners of capital, and not necessarily workers or the communities where factories are located” (Social Problems, pg 427).
This would increase the costs and result in the firms passing on the costs to the consumers, this would increase the prices of the goods causing negative externalities and discourage them from being bought. If there is an over production in the goods due to negative externalities, it means (s) has shifted to (s1). Which results in too many goods being supplied out to the public. The prices are also very low which makes it easier for them to buy goods, especially those with lower income. At the point the social cost [s1] is not taken into account only the private cost is.
Raising the Price of Minimum Wage I personally think that it would be a good idea to raise minimum wage. One of the reasons why I believe this is because of the fact that the cost of living has escalated so high to the point where people aren’t making enough money to pay for their basic necessities anymore, and it is causing our nation’s debt to continue to grow higher. Another reason why I believe it would be beneficial to raise the minimum wage is because of the fact that it would help our economy in the long run by increasing consumer spending. If minimum wage was to be raised, then people would earn more money to the point where they are able to pay for their basic necessities and still have money left over; this would cause to a increase in consumer spending, and that would not only be beneficial to businesses, but also to the economic growth in local and national economies. The author of the article titled Arguments for Raising Minimum wage, Sue-Lynn Cathy, addresses poverty and how to fight it.
The most profound argument in favor of raising the minimum wage circles around the economic stimulus. Raising the minimum wage would not only help thousands of workers out of government assistance programs, but would also boost spending in the local economy on services and goods. While the strongest argument against raising the minimum wage is the uncertainty of the current job market and how it will affect entry-level and new job positions not opening in the economy. When we start looking at how a change like this would help the vast majority of today’s workers, versus the uncertainty of what may or may not help the few, this poses for a weak argument. Assist with the greater good.
3. People often feel that tariffs, quotas, and other import restrictions will save jobs and promote a higher level of employment. But trade restrictions that reduce the volume of imports will also reduce exports. Question 4: What do researchers have to say about the relationship between firm’s productivity and exposure to global competition? Answer: Question No.5: When is international trade an opportunity for workers?
In my opinion, Kauffman’s hourly compensation rate can be lower. Mainly because of the larger inventory which can be selected to a lower cost. Kauffman targeting the middle class would lead to more customers meaning more profit. While at Parkleigh’s the employees discount is
Even though union members—those who keep their jobs--- get their wages increased and enjoy improved working conditions and benefits, the economic issues that most unions brings to the United States outbalance the positive effects. As the United States competes with the rest of the world, firms struggle when one of their highest costs is directly related to labor. In the article Labor Unions by Morgan Reynolds, the author accurately explains this phenomenon: while higher wages are successfully achieved, they simultaneously reduce the number of jobs available in unionized firms. This occurs because of the basic law of demand: once prices of labor rise, then employers will purchase less of it. Hence such members’ benefits are achieved at the expense of consumers, nonunion workers, already unemployed people, taxpayers, and corporation owners (Reynolds,
With the increase of wages will have tremendous effects on economy because there would be no jobs available left for those who are looking for a job, According to Minimum wages don’t help the poor, “… These jobs enable workers to develop skills and gain experience that ultimately lead to higher productivity and wages.” That is why business is against on increasing the minimum wages and if they did increase it we the customers have to pay higher prices for the services and goods order for the business to make up for the profit they are