The customers feel good. They spend more because they have jobs and sable income. More money is collected by the government from income taxes and VAT. The last, factor the prices tend to increase because of high demand so the inflation is rising. Recession- The recession is an opposite of boom stage.
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
Another influence is what they hold in a current account could be considered a deficit which means the country is spending more on foreign trade than it is receiving. This creates a supply of their own currency than a demand for its products. According to our text, Mankiw, (2007) 1. Consumers are wealthier, which stimulates the demand for consumption goods. 2.
If their inventory levels are high, it means the cost of holding inventory is going to go up. The reason the inventory levels are high could be that the transit time is too high and they have to retain more safety stock to not run out of stock. They have a problem with reliability which means that they don’t have a consistency in transit-time, this is another reason to having too much safety stock, which results in higher inventory levels, therefor higher costs. Another problem they mention is the transportation costs. Maybe the type of mode they are using is not the most favorable for them.
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.
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.
An increase in wages will increase the average variable cost. The more people required to produce additional units of output will be more expensive due to an increase in wages. A lower material cost will result in a lower average variable cost because more units can produced at a lower cost. If the firm produces the same amount of units the cost will fall. The fixed tax will not change the average variable cost.
Similarly, the transaction cost for stores such as H&M is more than that of the jewelry shops but less than the department stores. Also, it is much harder for a business enterprise to internalize if it has high transaction cost. Thus, jewelry shops can internalize at an easier way as they have comparatively lower transaction costs. Since, jewelry shops can internalize in an easier way, theoretically, they should make more money. And it is only fair that the shop that makes more money has to pay more rent.
While short term projections logically will allow debt to have higher EPS than equity financing (because of equity issuing shares), debt financing experiences lower net income due to increased expenses. Increased debt increases the leverage factor in a company. During normal or boom times, leverage results in exponential profit returns. During recessions, leverage can result in exponential losses, as well. A large debt burden carries risk because of the reaction of leverage to the prevailing economic conditions.2 Increased debt favors ROE during boom times but hurts ROE during
When comparing these aspects from foreign countries to aspects of the United States, one side is clearly more preferable. If one is looking for a prevailing quality of life, the United States is the inferior one choice when compared to other nations. When evaluating quality of life it is difficult to clearly have set criteria to base it off of. If evaluating quality of life, wealth of the nation does not overshadow other aspects for this concept. For example, “The main reason the United States if richer is because...they work about 20% more hours per year than Europeans (newfederalist).” Based off of this study, we see that while Americans are wealthier, they are working a lot more strenuously to make this money.