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Unit 3 Project: Consumers Goods Industry

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Unit 3 Project: Consumers Good Industry

One of the biggest exporting sectors of the American manufacturing and accounting for a significant 18 percent of global chemical shipments, the chemical industry is simultaneously serving the domestic needs and the global market requirements. Across the globe, United States of America is regarded as a leader in the production of chemicals and their exports.

There are more than 13,000 firms in the chemical industry currently involved in the efficient production of more than 70,000 products. In the fiscal year 2016-17, the statistic regarding net sales of the industry exceeded $766 billion dollars and was the source of income of more than 529,000 workers. If the additional employees which were indirectly hired by the industry suppliers are also considered, then the number surpasses 1.8 million CITATION Gra02 \l 1033 (Grant II). The total foreign direct investments of the industry also transcended $700 billion in the fiscal year 2016-17.

Investments in the research, development and innovation sector of the chemical industry also outdid the prior amount of $99 billion and held records of enforcing intellectual property rights, elucidating a significant chunk of patents which are currently being granted in the United States. There are some characteristics specific to the chemical industry which renders the position of United States as a competitive hub for chemical industries and various firms from far-flung regions of the world. Some of these characteristics are as follows:

Access of industry to the provision of low-cost natural gas.

Highly skilled and educated workforce

Top-notch research and development centers

Protection and guaranteed safety of intellectual rights

Robust identification of products and maintenance of quality

Autonomous regulatory system

The sub-sectors of the U.S. chemical industry are mentioned below:

Agricultural chemicals

Consumer products

Basic chemicals

Pharmaceuticals

Specialty chemicals

US Current GDP: The GDP figure in the second quarter of 2019 was $5,381,455 million. Despite global challenges of the economy, U.S. chemical industry continues to grow in the last quarter of 2019 because of increasing supplies of natural gas and spurring investments in the chemical industry (Product, 2019).

The chemical industry is a valuable source of strength and it is predicted that growth in chemical industry will exceed levels of economic growth in the United States. For investment in the chemical industry, United States is an alluring destination. The last decade has been instrumental in expanding capacity in the chemical industry which has reversed persisting rates of decline.

 In the United States, the chemical industry contributes 5% of GDP and adds 12% of the value to GDP by all U.S. manufacturing industries, and it is also the nation's top exporter (Lenz and Lafrance, 1996).

Agricultural chemicals play a crucial role in the farm economy and the food processing sector. Farmers have doubled the production of world food supplies since 1960’s through the growing chemical industry and tripled the outputs of food like cooking oils and meat. In the developing world, increase in per capita food supplies have increased by 25%.

Pharmaceuticals include diagnostics, prescription drugs, vaccines, vitamins, and over-the-counter drugs for human and veterinary applications. Biotechnology products are also included in this sub-sector. Strategic investments for innovation and research and development of this sector are mandatory. The aforementioned facts speak highly about the importance of chemical industry in the U.S. economy and bringing foreign direct investment in the economy.

Works Cited

BIBLIOGRAPHY Grant II, Don Sherman, Albert J. Bergesen, and Andrew W. Jones. "Organizational size and pollution: The case of the US chemical industry." American Sociological Review (2002): 389.

Lenz, Allen J., and John Lafrance. "Meeting the challenge: US industry faces the 21st century." US Department of Commerce, Office of Technology Policy (1996).

Product, G. (2019). United States (USA) GDP - Gross Domestic Product 2019. [online] countryeconomy.com. Available at: https://countryeconomy.com/gdp/usa [Accessed 6 Nov. 2019].

Subject: Economics

Pages: 2 Words: 600

Unit 4 Project: Solving Worldly Issues With Entrepreneurship

[Name of the Writer]

[Name of Instructor]

[Subject]

[Date]

Unit 4 Project: Solving Worldly Issues with Entrepreneurship

Pollution and climate change is a global issue. Especially underdeveloped nations are facing so many problems due to pollution. Pollution is resulting in climate change that is causing an increase in temperature of the earth ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"mgJFFflx","properties":{"formattedCitation":"(Block et al.)","plainCitation":"(Block et al.)","noteIndex":0},"citationItems":[{"id":1633,"uris":["http://zotero.org/users/local/mlRB1JqV/items/MT3Q26U9"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/MT3Q26U9"],"itemData":{"id":1633,"type":"article-journal","title":"Shaping conditions for entrepreneurship in climate change adaptation: A case study of an emerging governance arrangement in the Netherlands","container-title":"Ecology and Society","volume":"24","issue":"1","source":"library.wur.nl","abstract":"<p>Planning and implementation of regional climate change adaptation requires new, integrated governance arrangements that often involve public and private actors. Although entrepreneurship is widely considered an important part of such arrangements, little is known about the conditions that enable it, and its actual role is under-researched. Through an in-depth case study of an ecosystem-based adaptation project in the Netherlands, we have analyzed how the variegated actors in a governance network shape six conditions for entrepreneurial success, established in the entrepreneurship literature. Through a framing analysis, we found that all six conditions, i.e., prior career experience, altruistic motivations, financial motives, social networks, financial capital availability, and policies and regulations, were the object of constant negotiations. Their salience varied during the project as a result of variegated framing practices. In the early stages, issue, identity, and relationship frames were used to create a network of people with a range of relevant experience, connected by altruistic motivations. However, as the project progressed, distrust frames and different spatial-and temporal-scale frames created tensions between public and private actors. Accordingly, process frames, financial motivations, and capital availability became increasingly salient, reflecting the need to consolidate rules, roles, and responsibilities. The findings suggest that approaches to climate change adaptation imply ongoing struggles over the conditions that enable entrepreneurial success. We thereby add an important new dimension to the study of adaptation governance.</p>","URL":"https://library.wur.nl/WebQuery/wurpubs/551028","DOI":"10.5751/ES-10310-240119","ISSN":"1708-3087","title-short":"Shaping conditions for entrepreneurship in climate change adaptation","language":"eng","author":[{"family":"Block","given":"Debora","dropping-particle":"de"},{"family":"Feindt","given":"Peter H."},{"family":"Slobbe","given":"Erik","dropping-particle":"van"}],"issued":{"date-parts":[["2019"]]},"accessed":{"date-parts":[["2019",11,7]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Block et al.). Entrepreneurship at this point can play a vital role to control the problem and to ensure a positive contribution to a healthy environment. The main purpose of the paper is to discuss the solution of the issue through entrepreneurial approaches.

Since pre-industrial times, the concentration of carbon dioxide has increased up to 380 parts per million from 280 ppm. The temperature of the entire world is increasing at a higher rate due to human-induced changes ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"TAaP3A3d","properties":{"formattedCitation":"(Cohen and Winn)","plainCitation":"(Cohen and Winn)","noteIndex":0},"citationItems":[{"id":1631,"uris":["http://zotero.org/users/local/mlRB1JqV/items/BE37KDRB"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/BE37KDRB"],"itemData":{"id":1631,"type":"article-journal","title":"Market imperfections, opportunity and sustainable entrepreneurship","container-title":"Journal of Business Venturing","page":"29-49","volume":"22","issue":"1","source":"DOI.org (Crossref)","abstract":"This research develops the argument that four types of market imperfections (i.e., inefficient firms, externalities, flawed pricing mechanisms and information asymmetries) at once contribute to environmental degradation and that they also provide significant opportunities for the creation of radical technologies and innovative business models. We show that these opportunities establish the foundations for an emerging model of sustainable entrepreneurship, one which enables founders to obtain entrepreneurial rents while simultaneously improving local and global social and environmental conditions. To advance this new field, we offer suggestions for a research agenda focusing on two areas: the relationship between market imperfections and entrepreneurial opportunities, and the emerging field of sustainable entrepreneurship.","DOI":"10.1016/j.jbusvent.2004.12.001","ISSN":"08839026","journalAbbreviation":"Journal of Business Venturing","language":"en","author":[{"family":"Cohen","given":"Boyd"},{"family":"Winn","given":"Monika I."}],"issued":{"date-parts":[["2007",1]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Cohen and Winn). Climate change has changed ocean currents due to which many regions of the world are facing severe weather conditions. Sea level has been rising at a rate of 2 millimeters per year in the past 100 years. This rate has increased up to 10 millimeters per year in the past 20 years due to human-induced activities ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"JW7HGX8G","properties":{"formattedCitation":"({\\i{}Af75fb524aa042e2a4f795ba6f29196f.Pdf})","plainCitation":"(Af75fb524aa042e2a4f795ba6f29196f.Pdf)","noteIndex":0},"citationItems":[{"id":1630,"uris":["http://zotero.org/users/local/mlRB1JqV/items/XND95CM4"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/XND95CM4"],"itemData":{"id":1630,"type":"article","title":"af75fb524aa042e2a4f795ba6f29196f.pdf","URL":"https://unfccc.int/ttclear/misc_/StaticFiles/gnwoerk_static/brief12/bd80d2dd55e64d8ebdbc07752108c52c/af75fb524aa042e2a4f795ba6f29196f.pdf","accessed":{"date-parts":[["2019",11,7]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Af75fb524aa042e2a4f795ba6f29196f.Pdf). Sustainability is a significant idea to control pollution and climate change. Sustainability entrepreneurship acts will increase the involvement of political, social, and business activities. By encouraging stakeholders at both the national and international levels in policy development, it can be helpful to generate better environmental and social conditions of the firm. Commitment to sustainable enterprises is significant to increase the use of cooperation within the organization as well as with the partners.

Researches indicate that developed nations can find cheap labor in underdeveloped nations which increases the chance of poor ecosystem-based adaption ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"ALOg7XA6","properties":{"formattedCitation":"(\\uc0\\u8220{}How Entrepreneurship Can Solve Social Problems\\uc0\\u8221{})","plainCitation":"(“How Entrepreneurship Can Solve Social Problems”)","noteIndex":0},"citationItems":[{"id":1628,"uris":["http://zotero.org/users/local/mlRB1JqV/items/BVCDZRAP"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/BVCDZRAP"],"itemData":{"id":1628,"type":"post-weblog","title":"How Entrepreneurship Can Solve Social Problems","container-title":"Classy","abstract":"Social entrepreneurship isn't just trendy, it's making a real difference in the world. Learn how incredible innovation is solving social problems.","URL":"https://www.classy.org/blog/5-ways-entrepreneurial-thinking-can-solve-social-problems/","language":"en-US","issued":{"date-parts":[["2015",7,1]]},"accessed":{"date-parts":[["2019",11,7]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“How Entrepreneurship Can Solve Social Problems”). Entrepreneurs focus on their profit and issues like pollution, emission of methane, and waste material result in a harmful impact on the environment as well as for labor. As an entrepreneur, I would prefer to develop a system within the production system which can minimize these issues. Increasing indoor plants, filtering for carbon dioxide, methane, and other harmful gases, and the proper system for transferring of waste material ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"8vqmyFo2","properties":{"formattedCitation":"(\\uc0\\u8220{}Sustainability Entrepreneurship\\uc0\\u8221{})","plainCitation":"(“Sustainability Entrepreneurship”)","noteIndex":0},"citationItems":[{"id":1627,"uris":["http://zotero.org/users/local/mlRB1JqV/items/68R9THRE"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/68R9THRE"],"itemData":{"id":1627,"type":"webpage","title":"Sustainability Entrepreneurship","container-title":"adelphi","abstract":"Green & Inclusive Business, Social & Environmental Entrepreneurship, Social Business, Low Carbon Business Models are key words for new approaches in international development cooperation. They have in common that entrepreneurial approaches are used to solve social and environmental problems and that a positive contribution is made to sustainable development.Goal: Sustainable","URL":"https://www.adelphi.de/en/in-focus/sustainability-entrepreneurship","language":"en","accessed":{"date-parts":[["2019",11,7]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Sustainability Entrepreneurship”) can aid in developing a clean environment. An online portal can be developed in which firms can mention the use of these materials within a month or six months to develop an analysis that how much one firm worked for the reduction of pollution and climate change. Control over this report can be obtained by getting the patent. The annual reports can help not only an entrepreneur but also the government and environmentalists to keep check and balance on pollution and other climate change-related factors.

The bottom line is that sustainability entrepreneurship does not only mean to develop positive changes within the process of development. Its concept can also increase by using strategies to control global issues like pollution and climate change.

Works Cited

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY https://unfccc.int/ttclear/misc_/StaticFiles/gnwoerk_static/brief12/bd80d2dd55e64d8ebdbc07752108c52c/af75fb524aa042e2a4f795ba6f29196f.pdf. Accessed: 7 Nov. 2019.

Block, Debora de, et al. “Shaping Conditions for Entrepreneurship in Climate Change Adaptation: A Case Study of an Emerging Governance Arrangement in the Netherlands.” Ecology and Society, vol. 24, no. 1, 2019. library.wur.nl, doi:10.5751/ES-10310-240119.

Cohen, Boyd, and Monika I. Winn. "Market Imperfections, Opportunity, and Sustainable Entrepreneurship." Journal of Business Venturing, vol. 22, no. 1, Jan. 2007, pp. 29–49. DOI.org (Crossref), doi:10.1016/j.jbusvent.2004.12.001.

“How Entrepreneurship Can Solve Social Problems.” Classy, 1 July 2015, https://www.classy.org/blog/5-ways-entrepreneurial-thinking-can-solve-social-problems/.

“Sustainability Entrepreneurship.” Adelphi, https://www.adelphi.de/en/in-focus/sustainability-entrepreneurship. Accessed 7 Nov. 2019.

Subject: Economics

Pages: 2 Words: 600

Does Medicare Truly Benefit To All Australians? Discuss Whether The Rising Cost Of Health And Medical Providers Would Make Medicare Unsustainable

Medicare in Australia

[Name of the Writer]

[Name of the Institution]

Medicare in Australia

Introduction

In Australia, Medicare is considered to be a publicly funded healthcare system. The matter of fact is that the Department of Human Services tends to operate Medicare. Medicare funds primary health care and for the citizens of Australia. It must be taken into consideration that the residents are entitled to a rebate for treatment from allied health professionals, nurse practitioners, eligible midwives, and medical practitioners (Moon, 2018). It was the year 1975 which led to introducing this plan by the Whitlam Government. The main concern that needs to discuss is whether or not each Australian gets benefitted from Medicare. It is one of the most debated topics, and there must be some reasoning to take each side.

Effectiveness of Medicare in Australia

When it comes to the effectiveness of Medicare in Australia, the main concern would be whether each Australia is getting benefit from Medicare or not. Medicare Ivey tends to fund about 2% to Medicare. There is no doubt that Medicare in Australia is free. Each citizen will have to pay some amount of tax that will come out of his/her wage. An important aspect of Medicare which keeps it different than other healthcare is that it is available for everyone. Medicare aims to serve not just young or disabled, but it serves everyone. In a nutshell, it can be assumed that the majority of the Australians gets benefitted by Medicare.

Although Medicare is free of cost and helps a number of Australians in different ways, there is a high need to understand the fact that it may not cover everything. The perfect example in such a scenario would be that Medicare does not cover private or dental hospital fees or ambulance transport. Still, a large number of Australians gets benefitted from Medicare (Moon, 2018). The reason for that lies in the fact that Medicare tends to cover hospital treatments, doctor appointments, and a number of other services as well. A certain amount is covered by the government for the appointment of a doctor. Apart from this, Medicare covers public hospital fees as well. The outcomes of this result in helping a large number of Australians do not pay anything even for getting an X-Ray.

An increase in the number of Australians has been observed which take out the insurance for avoiding getting charged the extra tax. It can simply be assumed that Medicare is free healthcare which tends to provide facilities to each Australian who is willing to avail them. There is no doubt that Medicare makes healthcare right not a privilege. There is a high need for each Australian to possess the right to basic treatment and healthcare. One thing that must be taken into consideration is that such individuals must not have to be out of pocket as they are are in a need of basic treatment. Medicare tends to ensure that each Australian has access to free or low-cost hospital, optical, and medical care. Although Medicare does not cover all facilities essential for Australians, it plays a vital role in helping each Australian. Therefore, it can simply be said that it medicare tends to benefit not all, but the majority of Australians to a great extent.

Rising Cost and Medicare

The matter of fact is that there is a high certainty to see medical costs having a flat growth by the year 2019. Studies and research show that the steady trend is undoubtedly unsustainable for consumers. Due to a number of factors, an increase in the cost of healthcare has been observed over the past years. The outcomes of this may impact Medicare to a great extent. The increase in the healthcare cost depends on some key factors such as service price, medical service utilization, disease prevalence, population aging, population growth, ageing population, and rural areas. There is no doubt that such factors are paving the way towards making medicare unstable.

One thing that must be taken into consideration is the fact that along with such challenges, there has been seen enforcement of healthcare providers to do more with less cost. The outcomes of this result in threatening medicare towards instability. In the current scenario, there is a high need to opt for a different approach. There is no doubt that traditional methods to deliver healthcare can no longer meet such ever-growing demands. When it comes to Medicare, they are trying to put innovation in technology. By doing this, the threat of Medicare to be unsustainable becomes lower, but still, Medicare needs a lot more effort to put in order to compete with the rising cost of health and medical providers (Hassani et al., 2016).

The trends in technology are helping Medicare in a number of aspects. Therefore, there may be a chance for mediate to sustain the issues that come up due to the increase in the cost. The upgradation in devices can be taken as a great example of how technology is helping to alleviate the increase in the cost of healthcare. The matter of fact is that all of this has been done by reducing the need to visit a hospital or doctor. There is no doubt that technology tends to improve healthcare services in remote areas. The rising trends in technology may have positive as a well negative impact on Medicare. In Australia, an increase in the cost of medical and health providers can emerge negative for the case of Medicare (Moon, 2018).

The matter of fact is that the healthcare organizations that look for capitalizing the new technological innovation are in a need of secure, reliable, and connected data centre (Zhang et al., 2017). The matter of fact is that such sort of facility will ensure healthcare providers can be doing more with less. Apart from this, it must be taken into consideration that a holistic approach to healthcare technology will allow the Australian government to ensure they can retain the ability to delivering quality service to people. There is a high need to understand the fact that the increasing cost of Medicare tends to place a rising burden on current and future taxpayers. It must be considered that the system does not seem to ensure the deliverance of quality care which tends to contribute to unnecessary costs along with higher spendings.

Conclusion

It is concluded that. Medicare aims to serve not just young or disabled, but it serves everyone. It can simply be said that the majority of the Australians gets benefitted by Medicare, but not all. Every citizen will have to pay some amount of tax that will come out of his/her wage. medicare covers public hospital fees as well. The outcomes of this result in helping a large number of Australians do not pay anything even for getting an X-Ray. An important aspect of Medicare which keeps it different than other healthcare is that it is available for everyone. There is a high need for each Australian to possess the right to basic treatment and healthcare. Due to a number of factors, an increase in the cost of healthcare has been observed over the past years. There is no doubt that this increase has a great impact on Medicare. Medicare is trying to put innovation in technology. By doing this, the threat of Medicare to be unsustainable becomes lower.

References

Hassani-Mahmooei, B., Berecki-Gisolf, J., Hahn, Y., & McClure, R. J. (2016). The effect of pre-existing health conditions on the cost of recovery from road traffic injury: insights from data linkage of medicare and compensable injury claims in Victoria, Australia. BMC health services research, 16(1), 162.

Moon, M. (2018). Medicare Now and in the Future. Routledge.

Zhang, A., Brown, L. F., & Monsour, P. A. (2017). Effects from changes to the Medicare Benefits Schedule in 2014 on cone beam computed tomography and panoramic radiography scans across Australia. Journal of medical imaging and radiation oncology, 61(5), 600-606.

Subject: Economics

Pages: 4 Words: 1200

Endogenous Verses Exogenous Growth Theories

Endogenous Versus Exogenous Growth Theories

[Name of the Writer]

[Name of the Institution]

Endogenous Versus Exogenous Growth Theories

Introduction

Endogenous Growth

Endogenous growth refers to internal growth or internal variables that affect economic growth. It is long-run growth concerning the economy at a rate determined by internal factors in the economic system. The endogenous theory describes the long-run growth that originates from financial actions that construct new technological know-how. Economists relating Endogenous growth believe that enhancements in output can be associated directly to rapid innovations plus investments in human resources (Fine, 2000). Economists think that the private and government sector must encourage innovations by providing incentives for businesses and individuals to be creative. For example, investments in biotechnology, software, and telecommunications sectors are becoming massively essential in most of the advanced and emerging nations.

The main points of the endogenous growth theory are as follows:

Government strategies can nurture a nation’s growth rate by allowing and motivating competition and helping people and businesses to innovate.

There are growing returns on investment in education, infrastructure, health, and telecommunications.

Investments in research & development by private segment is a vital source of technical development.

The safety of property rights and copyrights is necessary for providing inducements for companies and entrepreneurs to participate in research and development

Investment in the quality of the workforces is the fundamental constituent of development

Government strategy should motivate entrepreneurship to generate new businesses, offer employment, financess, and innovation.

Exogenous Growth Theory

According to exogenous growth theory, economic prosperity or fiscal growth is mainly determined by factors outside of the given business or economy, in contrast to internal influences. Both the endogenous growth and exogenous growth theories are a fragment of the neo-classical growth models.

The external factors that result in exogenous growth are savings rates, production, technological variables or rate of technological advancement and diminishing returns of capital.

The notion of exogenous growth came out of the neoclassical growth model. This model is different from the endogenous model as the exogenous model entails factors outside of principal investments and a mounting functioning populace to nurture an economy (Zhang, 2018) persistently.

Impact of government policy on the long-term growth rate of an economy

There are definite factors that influence the long-term growth of an economy such as growth of productivity, demographic changes, and labor force participation. The increase in productivity is the proportion of outputs to inputs related to the economy. For example, labor, capital, services, energy, and materials. When the output grows the price of goods is dropped. Lesser costs result in the growth of demand for the service or product, leading to more enormous profits. Demographic changes are those that impact fiscal growth by altering the employment to population relation., for instance, the quality and quantity of accessible natural resources. Also, the age factor of the population impacts jobs and long-term growth. Likewise, labor force contribution to the economy influence fiscal growth. It is the number of workforces available and working.

Growth rate of an economy is mostly dependent on government policies. If the government policies are attractive for investors and enough incentives are provided to businesses and individuals, exonomy will florish. The supportive role of government specifically in the development of entrepreneurship helps greatly in the growth of the economy. Efforts and policies of the state in the form of tax incentives to encourage businesses and individuals to create and expand businesses are in particular helpful. Specific privileges in the form of taxes, investment tax credits, and targeted capital gains can be more appealing. Many Western countries are aware of the significance of providing incentives and rules that are encouraging for entrepreneurs as such policies assist immensely in the growth of an economy.

References

Zhang, W. B. (2018). Economic Growth Theory: Capital, Knowledge, and Economic Structures. Routledge.

Fine, B. (2000). Critical survey. Endogenous growth theory: A critical assessment. Cambridge Journal of Economics, 24(2), 245-265.

Subject: Economics

Pages: 2 Words: 600

(Development Economics)

[Name of the Writer]

[Name of Instructor]

[Subject]

[Date]

Development Economics

Introduction

Development is very crucial to any economy for survival and it takes years to reach a certain stable position in the global economy. There are many economic theories suggested by famous economists which focuses on different areas of development i.e. technological innovation, human capital, inward investment, aggregate demand, increasing returns to scale and high amount of savings etc. (Hoff and Joseph, 2001). But even then, many countries continue to struggle and are left far behind in the economic progress. Therefore, development economics aims at resolving the issues many economies face in economic development and growth and offers the reasons and models through which their underdevelopment can be assessed. This paper focuses on discussing and analyzing the economic data of 145 countries in relation to their GDP, per capita income and population in 1990 and 2015. The positions for 1990 and 2015 were reviewed and the mobility matrix was studied for the respective countries for year 1990 and 2015. The essay aims at exploring the reasons for the lacking behind of some countries in 2015 while other countries improved their economic situation in these years.

Discussion

Mobility matrix is the matrix that is used to observe the changes for two points in time with the objective to find the transitional change a country experienced in the mobility from one category to another in the given time period. 145 countries were taken under study to observe the upward mobility in them for the year 1990 to 2015 and accordingly the mobility matrix was made. Below is the respective mobility matrix for year 1990 and 2015.

Mobility Matrix for 1990 and 2015

Number of countries

0.25

0.5

1

1.5

2

2.5

39

0.25

82

13

3

0

3

0

29

0.5

21

48

31

0

0

0

35

1

0

14

57

26

3

0

8

1.5

0

0

25

50

25

0

7

2

0

0

14

43

29

14

27

2.5

0

0

0

0

15

85

The matrix shows the number of countries in the left most column for the 1990 year where the GDP per capita for 39 countries were at 25%, below the world average GDP per capita. 29 countries were having GDP per capita at 50%, below the world average GDP per capita for 1990. 35 countries had GDP per capita at 100%, 8 countries had 150% percent, 7 had 200% and only 27 countries acquired the GDP per capita at 250% of world average per capita.

While comparing the data of the same countries in 2015, it was seen that the countries which had GDP per capita less than or equal to 25% of world average per capita were 82 in number. The countries that had GDP per capita greater than 25% but less than or equal to 50% of world average GDP per capita were 48 in total count of 145 countries. Similarly, 57 countries were having GDP per capita greater than 50% but less than or equal to 100% of world average per capita. 50 countries had GP per capita greater than 100% but less than or equal to 150% of world’s average per capita. Only 29 countries were falling in the category of countries who had GDP per capita greater than 150% but less than or equal to 200% of the world average GDP per capita. Likewise, 85 countries had GDP per capita more than 200% of world GDP per capita.

Developed Countries

Above is the graphical representation of 23 developed countries whose GDP per capita is equal to the 250% of the world average GDP per capital throughout the time from 1990 to 2015. GDP per capita is the most effective measure to assess the standard of living of a country telling us about the per capita income each citizen has in relation to the GDP of the country. Countries like Germany, Australia, United States, Canada, France and United Kingdom are considered to be the advanced economies of the world due to their heavy investment in technology, MNC’s revenues, high human capital, effective governance and welfare oriented policies (Rostow, 1959). They were never underdeveloped but undeveloped in the World War II. United States immediately helped some of them recover after the World war II with the initiative in the form of Marshall plan. Saudi Arabia and Bahrain are experiencing high GDP per capita than world’s average GDP per capita due to their high dependence on oil and gas resources and high revenues generating from the export of these natural resources to other countries. However, income inequality is much greater in these economies making the gap between rich and poor wider. The reason behind the high GDP per capita of other countries like Singapore, Sweden, Austria, Japan etc. is due to their increasing returns to scale, specialization, high human capital, Foreign direct investment and stable political environment (Sokoloff, Kenneth, and Stanley, 2000).

Changes in Trend

This part analyzes the changing trends in the positions of different countries from 1990 to 2015. Many countries went through the transition in all these years to build their manpower and to make their industries more competitive with global market. But, some countries also experienced downfall as far as the economic progress is concerned which led to the low GDP per capita from the total output of the country in relation to the per capita income of its citizens. Below are two kinds of situations analyzed, increasing trend and decreasing trend in some countries from 1990 till 2015.

There are 12 countries out of 145 countries list who have witnessed a high mobility in the time period of 1990 to 2015. The reasons of their high mobility may vary from country to country for example China jumped from 0.25 in 1990 to 1 in 2015 by inward investment, making the backward and forward linkages strong for the industries. China has the advantage of largest workforce due to which the labor cost is low there, effective governance and keeping education on priority to enhance the human capital (Sen, 1983). Similar examples are Indonesia, Sri Lanka, Ireland and many other countries that invested more on the profitable sectors of the economy.

As far as the decreasing trend in countries is concerned, many countries also observed declined GDP per capita from 1990 to 2015 which are, Bahamas, Spain, Italy, New Zealand, Gabon, Greece, Portugal and Russia. There are some other factors as well that affects the economic performance of the countries. These factors can be, political, social or global in nature. Russia had financial crisis in the country due to the continuous devaluation of its currency which led to the inflation and hence the per capita income of people declined. There were also international economic sanctions imposed on Russia which adversely affected the whole Russian economy. Italy faced the issue of high unemployment due to underdeveloped agriculture sector and the dominance of private sector in the economy. People didn’t have jobs and they were unemployed which led to fall in per capita income and GDP was affected. As far as the case of New Zealand is concerned, the country is in huge debt as the government debt accounts for 32.5 percent of the overall GDP. Other countries are also facing many external issues due to which their economy affected and the GDP per capita was fallen.

It is not possible for all the countries to show some change in mobility in only few decades. Countries like Cyprus can be static and maintain a stable economy in the world. Theory of convergence might not work for all the countries and the best example is Cyprus (Ray, 2010). Cyprus faced weak growth and entered recession from 2012 onwards leading to high unemployment. Kazakhstan is also having static but strong and stable economy due to its focus on industrialization and making the domestic industries globally competitive to global market (Rosenstein-Rodan, 1943).

Poor countries lacking upward mobility

There is a long list of countries which remained poor from 1990 to 2015 due to limited mobility. Most of these countries belongs to African continent which explains the weak economic growth and poor GDP per capita they have. Countries like Tanzania, Kenya, Uganda, Ethiopia, Zambia etc. which are located in East Africa were the victims of civil war in the past and hence faced major poverty issues due to poor governance. There were ethnic conflicts, political instability, lack of resources, unskilled manpower and no technology which made them extensively poor. There are some Asian countries as well in the list i.e. Bangladesh, Nepal etc. which are having the similar problems in the way of development.

There are five main reasons for the lack of upward mobility in some countries. There are:

Less investment in human capital (quality education)

Unemployment

Lack of technological advancement (agriculture and industry)

Savings

Poor governance (exploitative political environment)

It is understandable that the development problems are contextual and they are not the same for every country. But the above mentioned reasons are the common justifications of all the underdeveloped countries. First reason is the lack of investment in human capital which includes the education as well as the technical knowledge of the field. Looking at the scenario of the developed countries, it can be said that all the developed countries possess highly skilled labor in the workforce which increases the increasing returns to scale (Ray, 2010). Endogenous growth models emphasized on the investment in human capital. The model focused on the fact that spending on education and enhancing knowledge of workers can give rise to technological advancement and innovation like in the case of China. For the development, it is very important to increase the productivity level of the labor which can only be done by working on human capital.

The second main reason is the issue of unemployment in the poor countries. This reason is partially dependent on the first reason. If a country is having a very large workforce and the major ratio is of unemployed people, then the country is wasting its potential to achieve development. According to Karl Marx, huge reserve army of labor is harmful for any economy as it restricts the productivity of the labor and stops the production from expanding. In these countries, the forces for stagnation are very powerful due to ineffective economic policies. This unemployed army can be used for creating forward and backward linkages for the key sectors that can boost the economic growth of the country. But for that, investment is needed first to educate the labor. In the meanwhile, unemployed and underemployed yet productive workers can be employed to the suitable sectors of their fields and it will bring long run effects for the economy.

Third reason is related also related to the concept of endogenous growth which says that technological advancement can lift the economy and can help in achieving the high economic growth. This is why convergence is important. The per capita income of the poor countries can grow at a speed higher than that of developed countries because there is a diminishing returns to scale in technology in those developed countries. Poor countries are far behind in technology and uses traditional methods for production in the industries and agriculture which is time consuming and ineffective. If they focus on bringing technology to their country, then the whole world will converge.

Fourth reason is in line with the harrrod-domar model for development. Harrod-Domar model is a classical Keynesian approach towards increasing the economic growth (Ray, 2010). It is widely used in development economics to offer effective measures to improve the economic growth of the country. The model emphasizes on the idea of increasing savings temporarily to bring about long term changes in the economy. The government might come into play by increasing the level of savings along with the increase in capital-out ratio. This model is very helpful in making favorable economic policies in the poor countries. However, the drawback of this model is that, in the poor countries where the people are facing severe poverty, it becomes hard to increase the savings. Whereas this is not the case with developed countries and hence they increase the savings to achieve more economic stability.

The last reason is not economic but political in nature. Governance plays a crucial role in the economy. The countries which remained poor were facing unstable governance which was not effective either. Excellent governance can help in achieving a higher mobility more easily as compared to bad governance. Prioritizing the economic issues over political issues is the only way out for the poor stagnated countries.

Conclusion

There is no doubt that higher mobility is directly linked with increased public spending and this why some economic policies are suggested. The policy maker must first identify the sectors of the economy that will give a boost to the growth of the country. After exploring those sectors, the money should be spending on the forward and backward linkages. It is not only about the key sectors but the sector which has the maximum number the linkages and the strength those linkages have, are equally important (Rosenstein-Rodan, 1943). The trade policies should not be restricted and limited to any sanctions (Rosenstein-Rodan, 1943). There is no balanced growth but unbalanced growth in the practical world (Ray, 2010). Therefore, the countries should wisely make investment decisions and development. The budgetary policies especially for the poor countries should be progressive that will benefit them in long-run i.e. investment in education. Advanced economies should provide aid and loans for the poor countries for their “big push” investment that will lead the economy in the right direction of development and will increase the mobility.

Works Cited

Hoff, Karla, and Joseph Stiglitz. "Modern economic theory and development." Frontiers of development economics (2001): 389-459.

Ray, Debraj. "Uneven growth: A framework for research in development economics." Journal of Economic Perspectives24.3 (2010): 45-60.

Ray, Debraj. Development economics. Palgrave Macmillan UK, 2008.

Rosenstein-Rodan, Paul N. "Problems of industrialisation of eastern and south-eastern Europe." The economic journal53.210/211 (1943): 202-211.

Rostow, Walt W. "The stages of economic growth." The Economic History Review 12.1 (1959): 1-16.

Sen, Amartya. "Poor, relatively speaking." Oxford economic papers 35.2 (1983): 153-169.

Sokoloff, Kenneth L., and Stanley L. Engerman. "Institutions, factor endowments, and paths of development in the new world." Journal of Economic perspectives 14.3 (2000): 217-232.

Subject: Economics

Pages: 7 Words: 2100

(your Choice)

Phukpunya Kunanantakul

Homework

17th May,2019

Problems of Formation of Civic identity in the conditions of Modern Society

In the works of most researchers, the crisis of civic identity is considered within the framework of the general transformation of modern society. In the modern world, not only civil, but any other identity is problematic. In the context of globalization, the identification space becomes wider than the limits of a separate state. Coleman thus carries out an analysis of social capital from the economic and sociological point of view, in order to transpose the concept of rationality of the economy to sociology. Identity transformation processes are characterized by:

revision of the foundations of national and state identity;

the emergence of new objects of identification;

The emergence of new forms of identity.

The problem is not so much the confusion of a person as the lack of a solid framework for which the content of individual elections could be strengthened. Due to circumstances in the modern world, civic identity is often also not a similar core. The main factors for the formation of civic identity are the active attitude of a person towards the world, political activity associated with the ability to localize and protect their interests by institutional means; the ability to identify their own attitude to the phenomena of social reality and the willingness to make independent decisions.. Social trust associated with the observance by each citizen of rational and ethically based rules, with a belief in the feasibility and effectiveness of these rules, and the expectation from other participants of the fulfillment of mutual obligations.

Under the conditions of an unstable developing society, the quality of a citizen as activity is replaced by social apathy and passivity. A person’s doubts about the strength of the world, uncertainty about the future are associated with a sense of impotence, his own failure, the inability to act rationally, adequately responding to the challenges of time, and frustration with the effectiveness of joint actions. In a situation of instability of social institutions, lack of community of interests and a network of mutual obligations, social trust as a condition for planning and implementing joint actions is impossible. In the absence of solid ground, where trust could take root, the courage needed to assume responsibility and long-term commitments to "their" community also disappears. The crisis of civic identity is associated with the loss, or, rather, the loss of some elements of this complex system of values, feelings and rules, etc. Therefore, the formation of civic identity should be viewed in the plane of its restoration and return. We should be aware that this will in many ways be a new form of identity that does not coincide with the previous one (for example, characteristic of the Soviet era).

Reference

Sammut, Gordon. "Civic solidarity: The negotiation of identity in modern societies." Papers on social representations 20.1 (2011): 4-1.

Subject: Economics

Pages: 1 Words: 300

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Yigit Professors nameEconomics 5th November 2019 Luxottica: A monopoly?

Luxottica Group S.p.A. is an Italian eyewear manufacturing company and the world's largest company in the eyewear industry. It is based in Milan, Italy. Luxottica group controls 80 percent of major eye brands and sells under different names to create diversity and choices for consumers. Luxottica group’s competitors include Specsavers, Pair Eyewear, The TJX Companies, and Warby Parker. However, Luxottica's worldwide presence and brand image gives them strong competition, as it is safe to say that Luxottica has less and weak competitors. Luxottica provides its customers with a variety of choices and differentiated products with a high level of quality. They understand the trends, fashion styles, welcome synergies and encourage cross-functional innovation. The eyewear market doesn’t have any barriers to entry except Luxottica itself, with its brand image and presence which makes it hard for small firms to enter the market and compete. Moreover, if a firm tries to enter the market, Luxottica may start its marketing activities to intimidate the new entries. Luxottica is an international seller with suppliers all over the world in the form of different brands that means that Luxottica covers a lot of geographical differences. Luxottica controls 80 percent of the eyewear market which means that Luxottica sets the bar, and any price set by Luxottica is followed by the rest of the eyewear market. The discussion above shows us that Luxottica is a type of imperfect market structure and can fall into the category of being a near-monopoly.

A monopoly is a firm that dominates the market with the highest concentration ratio and charges high prices to earn obnoxious amount of money. Luxottica is a monopoly as claimed by 60 minutes. Monopolies usually charge high prices for poor quality products that end-up exploiting the consumers. There are some public policies that are used to regulate the power of such monopolies for example, regulation of quality, where regulators examine the product before launching it into the market, and price capping by regulators where regulatory bodies are created to limit the price increase. Merger policy is a policy where the government investigates a merger that would turn into a monopoly if a firm obtains 25% of the market share after a merger, automatically referred to the competition commission. The government can use price capping policy in-order to control Luxottica as they charge high prices for their product on all major brands under their manufacturing. These price hikes, exploit consumers into buying expensive products.

Subject: Economics

Pages: 1 Words: 300

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Discussion post (Diversity )

Diversity symbolizes the existing state of the cultural space of the world. Its safety remains a big question. Many scientists, intellectuals are sounding the alarm about possible cultural losses associated with globalization changes in world civilizations. Losses that may be irreparable, which can be considered a sign of simplification of the cultural life of mankind. The conditional desire of one part of men to rule others, globalization related with the spread of its culture over the rest of the space, aggravates a reply aggression, reluctance to distortion its own cultural individuality. This is the reason for the increase in civilizational friction of the conditional North and South. National cultures, native speakers who are not so many very quickly lose ground, forget their native language.

https://www.morningstar.co.uk/uk/news/196787/gender-diversity-hasnt-improved-says-fca.aspx.

This news is related to gender diversity because it was very common in past and still at many places like workplace, education or in politics ,we found lack of gender diversity.

It is the phenomenon of diversity that needs to be saved; otherwise, it is not the historical content that each historical period has given it and none can go beyond itself. Hence, it is necessary to heed the tipping wheat, encourage the hidden potentials, poke all the tendencies of coexistence that history has kept, and also be prepared to meet all these new forms of social expression that are inevitable to present, without being disgusted, without disgust. Tolerance is not a dreamy state where everything that has happened or is forgiven. Tolerance is a dynamic attitude that is based on foresight, understanding and raising the person to whom he wants. The diversity of cultures is behind us, around us, ahead of us. The only thing we can ask about this is that this diversity is realized in such a way that each form will make a generous contribution to the others. This raises the obligations corresponding to this demand for each individual

References

Esposito, A. (2019). Gender Diversity Hasn't Improved, Says FCA. Retrieved from

https://www.morningstar.co.uk/uk/news/196787/gender-diversity-hasnt-improved-says-fca.aspx.

Subject: Economics

Pages: 1 Words: 300

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Organ Donation

Name

Institution

Organ Donation

Q. 1: Currently, government does not legalize the sale of organs hence their legal price is $0. The problem in the market originating due to this price is the creation of unlawful organ donation specifically the kidney because people need substantial financial remittance in exchange of their organs. This is because nearly 400,000 men, women and children are waiting for the organs to be donated. Kidneys can successfully be donated by living donor because of secure medical ramifications hence their illegal donations create various ethical and medical considerations.

Q. 2: People donate organs due to two factors; to nurture their financial condition and to foster their sense of productivity and altruism. The number of individuals donating organs due to financial considerations is prevalent and a very limited section of society intends to donate its organs due to ethical reasons. Hence, it is very hard to attain organs from living donors when the legalized price is $0.

Q. 3: If government amends its policies regarding legalized price of organ donation, there would be an imminent spell of lopsided distribution of organs in the market. Majority of the donors will intend to increase the price of their organs and suppliers will find it hard to buy such organs; there is an equal opportunity that no receiver would be willing to pay the desired price for donation. It will affect their business to a greater degree.

Q. 4: legalizing organ donation at desired prices will not maximize social welfare because those who are willing to pay the demanded amounts would find it easy to receive the organs whereas those who possess insufficient resources will stay unprivileged. Free sale of organs will create immense inequality in the society, widening the gaps between rich and poor.

Q. 5: I favor the current stance of government about pricing the donation of organs at $0 because all that one needs is to find a suitable donor, where there would not be any requirement of super- colossal amount of money to save lives.

Subject: Economics

Pages: 1 Words: 300

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Your Name

Instructor Name

Course Number

Date

Types of Costs in a Business

Managing a business is not an easy task; it requires a lot of effort with knowledge and insight into various business strategies. A person should be well-adapt in analyzing and judging various kinds of situations and market conditions and then make an expert decision that would best suit his or her business. Not only there are profits and benefits involved in business, but there are a number of other factors that need to regulate in order to make a business successful. One of the most crucial factors out of these is costs.

The literal meaning of the word “Cost” is the value of something or some product, but in economical books, the term refers to price of or an amount that has to be paid against some activity related to finance. In the world of business, cost of anything means the amount that is going to incur on the production of a specific number of units. Cost of production on economics refers to the price that the company or the business owner will have to bear in order to earn profits. These costs incur during the production or acquisition of goods and are directly associated with the generation of revenues.

Costs of production are also known as costs of doing business. These are all the expenses that a company, organization, or business has to bear in order to produce or sell their products and keep their business running. There are multiple types of costs that are incurred in business, for example, fixed cost, which are the costs that a business has to bear irrespective of the number of goods produced or sold. Examples of such costs are rent, salaries of the employees and electricity bills, etc. other types of costs include short-run and long-run costs.

Subject: Economics

Pages: 1 Words: 300

..

Economics

[Enter your name here]

[Enter the name of institution here]

There is a continuous increase in gas prices in Australia and the sector is experiencing a period of heavy growth CITATION Jer141 \l 1033 (Ford, Steen, & Verreynne, 2014). An amount of $ 350 billion has been spent on various gas projects which are at various stages of planning. Like all gas related projects, these projects are creating environmental concerns for the society as a whole e.g. coal seam gas project will require installation of long pipelines from wells to central production and distribution place. Presently, Australian oil and gas sector provides a unique opportunity to assess the impact of environmental regulations. Adhering to these environmental regulations will result in an increase in prices of the final product. Government intervention should be continued in form of price control and environmental regulations so that people get gas at reasonable price and there is least danger to the environment.

Gas comes into natural resources under the head land which has been defined by Adam smith as a combination of natural resources which can be used to produce goods. Demand is defined as the willingness and ability to purchase a product. Ability relates to purchasing power whereas willingness means that person does have a desire to use that product. Another concept that is closely related to this scenario is the price elasticity of demand which is the ratio of percentage change in quantity demanded to percentage change in price CITATION ALa19 \l 1033 (Layton & I.Tucker, 2019). If we talk about gas, it is a product that has an inelastic demand because its use cannot be abandoned or postponed. In other words, it is a necessity of life that cannot be quit. Inelastic demand means that consumers cannot change quantity demanded in response to change in price. Income elasticity of demand is also associated to this scenario and gas is a product which is income elastic which means that people with higher income will use more gas and vice versa. For most industrial units, gas is a variable cost i.e. it varies with increase or decrease of production.

Large industrial customers purchase gas directly from wholesale gas market and there are general sales agreements between parties. Smaller industrial units purchase their required products from retailers who provide a wide variety of offerings ranging from formal general sales agreements to standard retail contracts. 1 P j/a threshold also provides a differentiation for type of connection. High pressure transmission or sub-transmission pipelines are used to deliver gas to large industrial customers whereas smaller customers are provided the product from low pressure distribution network. A government intervention in form of compulsory environmental regulation will affect both large and small industrial units simultaneously but increase in costs will affect smaller firms more as compared to larger firms.

Load factor is considered important when analysis of gas prices is undertaken and it is calculated as a ratio between actual used quantity of gas and maximum allowed usage level of gas by any customer. Both large and small scale users of gas are affected by load factor considerations because more load factor will mean higher prices for customers. There is a high load factor for households because ratio of actual consumption and maximum allowed consumption is high which will mean that there will be more effect of change in prices. The load factor for larger units is generally a flat one because both average and maximum consumptions are high whereas smaller units will have more variability in load factor figures because of their working hours.

Take or pay level is another factor that shows variability along with load factor. The reference quantity in case of this measure is the minimum level of gas that a user has to purchase from a gas company, if users do not purchase the minimum amount, payment has to be made for it to gas company. Large industrial units use take or pay levels set at 80% of their average usage because any level below 80% will affect pricing levels.

Time span of general sales agreement will also define how change in price will affect a consumer. A short-term agreement has less than three years of life while more than three years’ contracts are considered long-term. In short-term contracts, any price increase in gas cannot be transferred to retailers unless there is a specific clause for transferring this increase in the contract. Large industrial set ups have long-term contracts with upstream producers but more recently, retailers have also entered into contracts with large scale producers. The environmental regulations are expected to affect companies in the longer run because these regulations take time to be effective that is generally more than three years. In long-term contracts, there is a provision that allows for transfer of price hike to the customer. With more hikes in prices of gas, customers prefer to have short-term contracts so that there is no risk of changes in prices. In case of a price fall as it has done in WA, it will be a disadvantage to the customer and advantage to the seller CITATION Oak17 \l 1033 (Greenwood, 2017).

Gas prices have stabilised but they are still on a higher side for C & I gas users. Export parity prices affect gas prices in country which are calculated as LNG netback price and is defined as the maximum price that a customer should expect to pay for gas in a properly functioning market. Many customers in the east coast have been paying prices for gas which are much higher than LNG netback prices which showed that market is inefficient. Australian government undertook an agreement with LNG companies. Competitive terms were settled with these companies to provide LNG to consumers. There was a significant decrease in prices of gas products in the end of 2017 and in 2018, these prices were connected to LNG payback values. An increase in demand of gas meant that there is an increase in prices as well. The factories working in the East coast areas have decided to relocate their businesses or close operations altogether. One particular example of a company that has exited East coast is RemaPak which experienced 400% increase in gas prices. If there is no relief in wholesale gas prices, many other companies will exit the east coast area. Most of these companies will have bigger problems when their capital expenditures become due. LNG netback prices are available on websites of some government agencies so that businesses can use them as a benchmark for assessment. Some criticism has been received by these agencies that publishing such prices is similar to setting prices of gas however agencies say that their major aim is to improve transparency in stetting gas prices. Prices of LNG show that it will remain at $ 9.2/G.J till 2020.

The LNG netback prices are significantly lower as compared to prices offered to customers prior to this intervention. In short term, there is considerable variability in these prices especially in the short term. Companies have to keep a balance between taking advantage from short term price hike and planning for long term future growth at the same time.

In the medium to long term time span, an acceleration in investment in gas exploration and development. Key infrastructure should also be continued to develop. Government should encourage further development of infrastructure. Most companies are not well prepared to take advantage of opportunities available for developing infrastructure. The government agencies have important role to play in this while scenario. An increase of transparency in price setting is one of the major aims pursued by government agencies. Another improvement in whole scenario is that information asymmetry is minimized across all gas users. There are certain areas of concern which have to be looked into. One specific area of concern is the poor transparency in East coast gas market CITATION Rod19 \l 1033 (Sims, 2019).

There is a rise expected in Gas and LNG demand till 2035 with China emerging as world’s biggest importer of gas and LNG. China, ASEAN and south East Asia will account for 95% of total growth in demand. Europe and rest of Asia’s gas supply is going to decline over this period of time. There will be Asian economies in front seats of development till 2035 led by China with USA also showing growing demand. World gas demand is expected to rise by 0.9% while the same figure for Asia is expected to be 2.1% per year. On the supply side, US will lead as top supplier with almost 60 % of total supply CITATION McK19 \l 1033 (McKinsey energy, 2019).

Keeping in view, all the above discussion, the discussion can be concluded with two or three points, there should be transparency in setting prices of gas, demand for gas is on an increase and supply is controlled by a small number of countries and finally with a considerable difference between demand and supply, it is compulsory for governments to keep interfering in gas sector. In order to properly implement environmental regulations, government has to make sure that there is a balance in demand and supply of gas.

References

BIBLIOGRAPHY Ford, J. A., Steen, J., & Verreynne, M.-L. (2014). How environmental regulations affect innovation in the Australian oil and gas industry: going beyond the Porter Hypothesis. Journal of Cleaner Production, 1-10.

Greenwood, O. (2017, March). https://www.energy.gov.au/sites/default/files/gas-price-trends-review-report-revision2-mar-2017_pdf_5913_kb.pdf. Retrieved from https://www.energy.gov.au: https://www.energy.gov.au/sites/default/files/gas-price-trends-review-report-revision2-mar-2017_pdf_5913_kb.pdf

Layton, A., & I.Tucker, T. R. (2019). Economics for today. Melbourne: Cengage Learning.

McKinsey energy. (2019, September 11). https://petroleumaustralia.com.au/news_article/gas-the-only-fossil-fuel-to-rise-in-demand-through-to-2035-new-mckinsey-report-forecasts/. Retrieved from https://petroleumaustralia.com.au: https://petroleumaustralia.com.au/news_article/gas-the-only-fossil-fuel-to-rise-in-demand-through-to-2035-new-mckinsey-report-forecasts/

Sims, R. (2019). Future of gas market regulation. 7th Australian domestic Gas Outlook. ACCC.

Subject: Economics

Pages: 5 Words: 1500

...

Binishia Malla

Business Cycles and Economic structures

28th Oct, 2019

In the long run, the tendency of constant economic growth is clearly manifested. However, in the short term, its development is characterized by waves of ups and downs in the economic environment. The patterns of the wave-like nature of macroeconomic dynamics are considered as a problem of the economic business cycle.

     “Changes in interest rates can reduce or induce economic activity by making borrowing by households, businesses, and the government is more or less expensive. Adding to the complexity of interpreting business cycles, famed economist and proto-monetarist Irving Fisher argued that there no such thing as equilibrium and therefore, cycles exist because the economy naturally shifts across a range of disequilibrium as producers constantly over- or under-invest and over- or under-produce as they try to match ever-changing consumer demands”.

Economic (business) cycle is the fluctuation of the level of economic activity of actual GDP, at which periods of recovery are replaced by periods of economic decline; the process of passing a market economy from one phase to the next is the same, for example, from crisis to crisis.

In this scenario, the interest rate will low. This cycle of expansion is known as the prosperity phase. It is characterized by the increase of production and demand over a short or medium period, followed by a solid economic framework, then a relatively low unemployment rate and finally the increase of the GDP growth rate. In other words, the cycle of expansion is the time when there are the most employees and the investments will also very high. This phase of the business cycle is usually accompanied by inflation. Inflation means the increase in prices, including that of raw materials. The potential of the expansion phase can only be exploited in the short term. As the economy grows and GDP grows, the production of goods and services will grow. An economy, however, has only a limited number of resources (including labor and raw materials), which means that the increasing demand for these resources ends up increasing their prices. The process is repeated as diminished prices increase demand. Usually, the expansion is longer than the contraction, because growth is the expected and normal phase of a prosperous economy (Layton et al., 2011).

The Central Bank of Australia cut its key interest rate for the third time this year and pointed to the possibility of further reductions. As reported by Vesti. Ekonomika, Australia's economic growth in the second quarter slowed to a ten-year low amid weak consumer spending and a sharp decline in housing construction. GDP increased by 1.4% compared to the same period last year.  Low sees a “smooth reversal” of the economy after a slowdown in the second quarter. Nevertheless, the regulator is ready to lower interest rates again, if necessary. Record-low interest rates supported house prices, helping to put an end to the two-year continuous decline that affected household welfare and consumption. Housing prices in Australia in September rose by 0.9%, at the fastest rate since March 2019 (Layton et al., 2019).

2. In this scenario, the economy is in the expansion phase. The economic cycle is a special type of periodic fluctuations in economic activity, consisting in the repeated expansion and contraction of the economy, which is accompanied by fluctuations in the level of business activity, production, employment, price levels, and other macroeconomic indicators

In this phase, there comes a moment when the entire produced output cannot be sold, i.e. total costs less than output. Overstock occurs, and at first, firms is forced to increase inventory. The growth of stocks leads to the curtailment of production. Reducing production leads to the fact that firms lay off workers, i.e. unemployment is rising. As a result, total incomes fall (consumer - due to unemployment, investment - due to the senselessness of expanding production amid falling total demand), and, consequently, total expenses. Households primarily reduce the demand for durable goods. The long-term interest rate, as a rule, grows (in the face of declining incomes and a shortage of cash, people start selling bonds, the offer of bonds increases, their price falls, and the lower the price of the bond, the higher the interest rate). Due to a decrease in total income (tax base), tax revenues to the state budget are reduced. The size of government transfer payments is increasing (unemployment benefits, poverty benefits). The state budget deficit is growing.

The Australian economy's growth slowed in the first quarter at its weakest pace in a decade, underscoring the need for strong monetary and fiscal stimulus to keep the country from falling into recession. after 28 consecutive years of expansion. Official Gross Domestic Product (GDP) figures released Wednesday show the economy grew 0.4% in the January-March period, twice as fast as its 0.2% pace in the fourth quarter of 2018 but lower than the 0.5% expected by economists. Annual growth fell to 1.8%, the lowest since the global financial crisis and well below its long-term average of 3.5%. "The Australian economy has lost momentum, and the main culprit has been weak consumer spending," said (Craig James Miranda‐Pinto, J. and Shen, Y., 2019).

Despite the positive aspects and advantages of doing business in Australia, not all entrepreneurs manage to succeed and make a profit in this country. In addition to the enormous competition and the need for substantial investment, in most cases, foreigners are faced with additional requirements that are very difficult to fulfill. The competent choice of a business structure (a form of ownership) for a company is considered one of the most important stages for the launch and subsequent successful implementation of entrepreneurial activity in Australia.

3. It is difficult to attribute Australia to advanced economies. Unlike other countries, in Australia, large business is rather poorly developed. Australia's economy relies more on agriculture and small enterprises processing its products. In many ways, this contributes to the geography of the country. Large cities are located on the coast. And the main territory of the country is a network of agricultural farms (Miranda‐Pinto, J. and Shen, Y., 2019).

Therefore, a small business in Australia occupies the bulk of the country's economy.

Small businesses account for up to 95% of Australian businesses.

Small businesses employ more than 50% of employees employed in the non-state sphere.     

Small businesses in Australia include businesses of up to 20 people. There are 1,116,000 small businesses in Australia today.

·         Small business occupies a leading position in the construction industry, in the service sector, in retail trade, and in the processing of agricultural products. Businessmen of this level need to formulate the idea of ​​innovative business, which he intends to implement in the country. An entrepreneur’s proposal requires approval from one of Australia’s six states. The Australian government paid due attention to inexperienced but ambitious entrepreneurs. For them, there are a number of budgetary immigration programs (Morley, J. and Panovska, I.B., 2019). For example, through a full or partial purchase of an existing business, or through opening a business from scratch that does not require significant investments and assets. It's important to know! Also in Australia, there are business visas for investors who want to invest an amount of $ 1.5 million or more in the development of projects approved by the authorities.

References

Layton, A.P., Robinson, T.J. and Tucker, I.B., 2011. Economics for today. Cengage Learning.

Layton, A.P., Robinson, T.J. and Tucker, I.B., 2019. Economics for today. Cengage Learning.

Miranda‐Pinto, J. and Shen, Y., 2019. A Granular View of the Australian Business Cycle. Economic Record.

Morley, J. and Panovska, I.B., 2019. Is Business Cycle Asymmetry Intrinsic in Industrialized Economies?. Macroeconomic Dynamics, pp.1-34.

Subject: Economics

Pages: 4 Words: 1200

A Comparative Analysis Of Economic Growth Between Nigeria And Ghana.

A Comparative Analysis of Economic Growth between Nigeria and Ghana.

[Name of the Writer]

[Name of the Institution]

Introduction

Ghana and Nigeria are two of the major African countries. When economies of both of the countries are discussed, Ghana’s economy is developed through proper management providing competitive environment and poverty reduction in the country. This country is blessed with natural resources and strong agricultural sector. On the other side, Nigeria is the oil-rich country. However, the political instability of the country, high-level corruption, improper infrastructure and very poor macroeconomic policies. The country official was working on economic reforms since 2008 but the Military rule of that time could not properly manage the economic policies at country level. However, this paper aims to study the economies of both of the countries comparatively through the evidences from different sources. Total five sources are chosen for this study. A short summary for every article is provided and there is comparative analysis on the basis of those articles.

Discussion

Likewise, Francah (2017) comparatively study the economic growth in few of the African states. According to his observation, Nigeria has been the biggest economy in the whole continent to move out the recession which hit the African countries in 2017. At the same time, he thoroughly observes the economic growth over the study period. The researcher also focuses different business treaties and regional trades with in the region. He uses Variance technique to examine the variations of the selected countries and the time period in rows. At last, the results show that economic variables were changed from each other for the selected countries in the same year period. The article also finds out that the economic growth for those countries has been stopped for specific time period (Francah, 2017). Although, the GDP of selected countries show variation but no growth in GDP is observed for each country for few years. However, there is economic integration among those countries, the can achieve economic growth by the existence of some common policies.

On the other side, three of the researchers; Nchor, Adamec and Kolman (2015) compared three countries including Ghana, UK and Nigeria to see the Economic shadows. The researchers have explained the under shadow economic activities like unofficial and under-reported economic activities which are taking place in different countries. However, the used a different model for their studies. They have used the multiple indicator and multiple causes model (MIMIC) to analysis the data. There two significances of the model; structural equation aspect and the measurement aspect. The structural equation can be used to find out the impact of the variables under observation during the level of shadow economic activities (Nchor, Adamec and Kolman, 2015). However, the measurement model finds out the coefficients of the effecting variables. The results from the study found out the size of shadow economy of Ghana is 36.73% and Nigeria at 47.75% in 2012.

However, the third source is from old literature but it is related to the topic. It might help find out so many things regarding the economic trends in both of the countries. The groups of researchers; Taaffe, Morrill and Gould (1963) talk about the transportation expansion in under developed countries and give it a comparative analysis in an economic term. According to the researchers, transportation system is one of the key factors of economic growth. After observing the geographical conditions of Ghana and Nigeria by using regression as a tool, come up with few results. The population of both of the countries is increasing, therefore the demand for transportation will also increase. Using the two models, the researchers try to identify whether transportation expansion depends on population or not. However, the ideal typical sequence model says that transportation expansion is independent of population growth. However, the regressions found that population increase makes the transport expansion. Different cities of Ghana and Nigeria were studied for this.

In the other paper, Benzing and Chu (2009) study the small businesses of Kenya, Ghana and Nigeria. The main objective of the paper is to compare the start-ups in three countries on the basis of gender. The Likert-scale questions were prepared to find out the motivation among those entrepreneurs. However, the collected data is compared by testing for significant differences. However, the findings show that the strongest motivation among all the starters in three countries was to earn money. Other factors were like family factor, an external validation factor and self-growth factor. However, people from Ghana mostly preferred family factor to get motivated to start a small business.

On the basis of the gender, female entrepreneurs seemed less motivated. Moreover, this article also recommends few things for the countries that gender specific programs should be started in all three countries. It will be beneficial for developing countries to encourage small businesses. However, Nigeria and Kenya need to develop some stronger laws for inheritance of business in a family.

The fifth which is chosen to study the economic activities of Ghana and Nigeria, is about energy consumption. Akinlo (2008) compares the energy consumption and economic growth of few African countries. Total 11 countries were selected for the study. Moreover, the autoregressive distributed lag test is used to find the relationship between energy consumption and economic growth. When results are found, it is indicated that energy consumption give a significant positive value for economic growth of Ghana along with other countries. It shows that the more energy consumption for Ghana, the more is economic growth. However, the other test i.e. vector error correction model also gives relationship of energy consumption and economic growth Ghana, Gambia, and Sengal (Akinlo, 2009). For some countries results were different. According granger test economic growth causes energy consumption in Sudan. Moreover, there was no any relationship between energy consumption and economic growth in Nigeria. On the basis of results each country needs an efficient energy conversation policy.

All of the above articles are summarized to provide some evidences regarding the economic progresses in both of the countries. The different elements of economy were discussed from literature to support the arguments.

Conclusion

In conclusion, Ghana and Nigeria are two of the developing countries from Africa. They faced different challenges regarding economy time to time. However, both of the countries have different resources, which give the opportunity to develop their economy. However, in order to check the economies of both countries different articles are discussed comparatively. Some of the articles suggest there has been no economic growth for few years in Africa. Now, Ghana and Nigeria can go for some mutual policies, in order to increase their economic growth. At the same time, other article gives the percentage for under shadow level business both in Ghana and Nigeria. More percent of Nigeria reflect on the weak laws regarding economic growth. In addition, transportation system is one of the key factors of economic growth. It is related growth in population for few countries. Another article shows that the more energy consumption for Ghana, the more is economic growth whereas there was no any relationship between energy consumption and economic growth in Nigeria. Still both of the countries need strong policies for energy conversation. At the same time, countries can give a chance to small businesses for their economic development. It will be beneficial for developing countries to encourage small businesses. However, Nigeria and Kenya need to develop some stronger laws for inheritance of business in a family.

References

Akinlo, A. E. (2008). Energy consumption and economic growth: Evidence from 11 Sub-Sahara African countries. Energy economics, 30(5), 2391-2400.

Benzing, C., & Chu, H. M. (2009). A comparison of the motivations of small business owners in Africa. Journal of Small Business and Enterprise Development, 16(1), 60–77. doi:10.1108/14626000910932881

Francah, N C. (2018). A Comparative Study of Economic Growth in the West African States. Journal of World Economic Research.Vol. 6, pp. 75-79. doi: 10.11648/j.jwer.20170606.12

Nchor, D., Adamec, V., & Kolman, P. (2015). Comparison of Shadow Economies: The Case of Ghana, Nigeria and UK. Mediterranean Journal of Social Sciences. doi:10.5901/mjss.2016.v7n1p248

Taaffe, E. J., Morrill, R. L., & Gould, P. R. (1963). Transport Expansion in Underdeveloped Countries: A Comparative Analysis. Geographical Review, 53(4), 503. doi:10.2307/212383

Subject: Economics

Pages: 4 Words: 1200

A Comparative Analysis Of Economic Growth Between Nigeria And Ghana.

Nigeria vs Ghana Economy

[Name of the Writer]

[Name of the Institution]

Nigeria vs Ghana Economy

Nigeria and Ghana are some of the more stable economies in the African region, and both the economies have adopted different approach when it comes finding the right balance between sustained growth and making sure that they keep the inflation in check at the given point of time. for instance, when one talks about Ghana, this is an economy that has been strengthened by the sound management and efficient allocation of the resources. With the help of the fiscal management and poverty alleviation strategy, they have made sure that they have kept poverty level in check. On the other hand, Nigerian economy is fortunate in a sense that it is an economy that is relatively rich in resources specially when one compares them with some of the other economies in the African region. The instability, corruption and the lack of infrastructure are some of the major reasons behind the lack of sustained economic success by these economies. The economic and political structure in both the countries is quite different as Ghana is known to be more democratic republic while on the other hand, Nigeria has been controlled by military regimes during the course of its history. Thus, it is going to be interesting when the comparison and the contrast of both these economies is going to be carried out.

Business Prospect in Ghana and Nigeria

It has to be noted that due to the much larger population as well as the greater pool of resources, the market size of the Nigeria is quite on the higher side. On the other hand, effective policy making, and the stable economy of the region is one of the prime reasons due to which Ghana has been able emerge as one of the biggest economies of the African region. There is also difference in terms of the areas in which work is being carried out. White Ghana is an economy that is more focused on the natural resources and the agriculture, industrial manufacturing and the export-oriented industry is one of the keys defining feature of the Nigeria. The market size of the Nigeria is one of the thing that makes it much better economy as compared to the Ghana but that one thing is offset by the fact that how the performance of the long term indictors, law and order situation and the stable political regime of the country means that the scope of expansion is on the higher side in Ghana.

Performance of the Macroeconomic Indicators

The performance of the macroeconomic indicators is one of the things that has to be kept in mind when looking at the broader trends among both these economies. It has to be noted that the different macroeconomics landscape means that there is going to be much more pressure on the Nigeria to make sure that they are able to sustain the production that is not only going to be able to meet the external demand, but also make sure that the external disturbances are supposed taken care off. On the other hand, the unemployment rate that has been witnessed in the Nigeria is one major economic indicator that is needed to be sorted out. The huge population pool has made it one of the largest economics in the region but on the downside, it is quite hard to make sure that the economic and employment opportunities are there among the stakeholders at the given point of time.

On the other hand, Ghana has its own share of issues. The problem for them is that how the current account deficit is going to be taken care off, The lack of trade, the weak currency and the closed economic system means that they have a hard time making sure that they bring about greeter number of people to their economic landscape. So, both these economies have their own set of challenges that they have to look after to make sure that they are able to sustain greater economic growth with the passage of time. The positive thing for them is that they have made sure that the employment conditions are always ideal among the populace. One of the reasons is that how the structure of both these economies tend to pan out. White Nigerian economy is more inclined towards the capital-intensive system, the labour market system that prevails in Ghana along with the much-limited population pool means that they are able to take care of their economy in a much more appropriate manner to say the least.

Social and Human Development

At times it is quite important to make sure that some insight is being developed about the development index as well as the human development to ensure much greater insight is developed about the economy at the particular point of time. Looking closely at some of the numbers in this regard, it becomes clear that Ghana is much better in this regard as well.

Looking at these numbers, one of the reasons that Ghana has been able to perform well six dues to the fact is that they are the economy that have developed much greater control as far as the way allocation of the resources is supposed to be controlled. There is greater degree of stability in terms of how the government and regimes have changed during the course of the last decade along with the fact that the again much lower population pool implies that it is much easier for them to work towards human development.

Investment Opportunities

The great measure of the success of the economy is that what sort of investment opportunities are located over there and what are some of the ways through which it can be made sure. Both these countries have relatively same investment environment in a sense that the product development is there and the emphasis of both the countries is towards making sure that how the foreign investment is increased in the country.

Nigeria has certain degree of edge when such decisions are being made due to the fact that they have much greater capital structure that makes them much more prone to heavy investment.

Conclusion

In the hindsight, it can be said that both the countries have considerably different economic environment. Whereas Nigeria is more inclined towards making sure that how they develop more capital structure in the country, the focus of Ghana is to make sure that how work is supposed to be done in the field of the human development. The other major challenge for both the economies though is that how the allocation of the resources is going to be done. Nigeria does better because of short-term advantages such as its current market size and appeal. Ghana fares better in long-term pillars such as business ease, social development, and most especially in good governance. Lack of infrastructure and slow implementation of reforms are key impediments to growth. The government is working toward developing stronger public-private partnerships for roads, agriculture, and power. Nigeria's financial sector was hurt by the global financial and economic crises, but the Central Bank governor has taken measures to restructure and strengthen the sector to include imposing mandatory higher minim um capital requirements. On the other hand, Ghana had Sound macro-economic management along with higher prices for oil, gold and, cocoa helped sustain high GDP growth in 2008-12, despite the general slowdown in the global economy during that same time period.

References

Kraus, J. (2016). Capital, power and business associations in the African political economy: a tale of two countries, Ghana and Nigeria. The Journal of Modern African Studies, 40(3), 395-436.

Hawkins, E. K. (2018). The growth of a money economy in Nigeria and Ghana. Oxford Economic Papers, 10(3), 339-354.

Decker, S. (2018). Building up goodwill: British business, development and economic nationalism in Ghana and Nigeria, 1945–1977. Enterprise & Society, 9(4), 602-613.

Hackett, R. I. (2017). Charismatic/Pentecostal appropriation of media technologies in Nigeria and Ghana. Journal of Religion in Africa/Religion en Afrique, 28(3), 258.

Aliyu, S. U. R. (2017). Does inflation have an impact on stock returns and volatility? Evidence from Nigeria and Ghana. Applied financial economics, 22(6), 427-435.

Subject: Economics

Pages: 4 Words: 1200

Amazon

ECONOMIC ANALYSIS OF AMAZON

Name of Student

Name of Institution

Abstract

This analysis tries to capture the various aspects of the market in which Amazon is participating. The company is dominating the market with huge market share and even increasing revenues. The company has no threat from competition as it follows an aggressive approach of acquiring the other companies in the foreign markets. The Company has an inelastic demand for the products which ensures that the revenue increase with an increase in prices. This will also make sure that the customers will have lesser substitutes against the company.

Amazon Analysis

The company was formed in 1993 by Jeff Benzos as online bookstore. The company did not turn up to profits for the first 7 years of operations. The company applied the merger and acquisition strategy as its corporate strategy and did it with great success. The company today shows itself as the online seller that can provide each and everything required by the customers. The company has been converted to a huge retail machine from a garage-based book shop. The company has improved the various processes over time and so has the process of the customer need satisfaction. Today the company has been playing multiple roles from an online bookstore to the grocery store that can sell electronics as well. Now a days the company competes in all kinds of online sales.

Demand and Supply Analysis

0127000The above picture shows that there is a constant increase in the revenues of the company. This revenue is a function of the prices of the products and their quantities demanded and supplied. Thus, the increase in revenue has shown that the quantities demanded and supplied have increased over time. The demand is the amount of goods that people are willing and able to buy at a given price. This depends mainly on the price. The changes in the price affect the demand but on the same demand curve. The extension in demand occurs as a result of the decrease in prices and a contraction in demand occurs as a result of increase in price. Other factors like the income of the consumers affect the demand in a way that the demand curve shifts to the right or left. The rightward movement is called the rise in demand and the leftward movement is called the fall in demand. Other than these factors, there are certain risks associated with the company that will define the demand and supply aspects for the company. One of the risks that the company is prone to is the risk of non-payment by some of the customers. The company receives the payments in a large variety of ways. Different forms of receipts have different charges or fees associated to them CITATION Ama18 \l 1033 (Amazon, 2018). These costs may increase over a period of time and will result in the increased expenses for the company. There are certain programs that require us to collaborate with other companies for the credit card payments, if these are abolished, our operations will be affected badly. The changes in the procurement rules and regulations set by the governments will also affect the ability of the company to earn more revenues.

Price and Price Elasticity of Demand

Elasticity of demand refers to the responsiveness of the change in demand to a change in price. In order to assess the price elasticity of demand, we will again refer to the revenues section of the above table. The inelastic demand is when the increase in quantity demanded is less than the increase in price. The demand for the products of the company is inelastic CITATION Sam16 \l 1033 (Senthilnathan, 2016) CITATION Rec19 \l 1033 (Recode, 2019). The major indication for this conclusion is the increase in the revenue and the fact that the cost of production has also increased over time. The characteristic of inelastic demand is that the total revenue in case of inelastic demand will increase in the increase in price.

Analysis of Costs

The online sales model of the company has very little fixed costs which means that the company has to increase the sales by a reasonable amount and the fixed costs for the company will be covered. These fixed costs may be considered as the fees and other expenses that are to be made after a period of time irrespective of the fact that sales happen or not. Similarly, the company increases the revenues to such an extent that these revenues exceed the variable costs as well. The variable costs are kept lower by customizing the huge number of goods for a large number of customers. The company has higher fixed costs as compared to the variable costs that are minimal as compared to the fixed costs. The operational levels of the company are so high that the company is able to lower the per unit fixed costs associated with the production.

0-444500In the above picture, we can see that the overall cost of sales has increased over time. We further analyze that the costs titled fulfilment has increased the most rapidly. From the years 2016 to 2017, we can see that the general and administrative expenses have increased by the highest percentage. The fulfillment costs also shown an increase that is high in percentage. The total operating costs have increased over the period of three years.

The competitive advantage of the company

The competitive advantage of the company is the successful expansion strategy that is accompanied by the takeovers and mergers of certain companies. The company has successfully competed with the giants like Wal-Mart and other grocery stores. The other competitive advantage is the amount of sales that is generated by the company.

Porter’s 5 forces model

This model analyzes the various aspects that can affect an organization in different ways. The model identifies the aspects of the market that measure the power of various players in the markets to affect the company. The power of customers, suppliers bargaining powers are assessed. The competitive rivalry among the competitors is measured. Another aspect is the barrier to entry and exit in the market CITATION Rob19 \l 1033 (Greenspan, 2019).

If we see the market in which the company is working, there are almost no barriers on the entry and exit from the market. Any company can start this business with the help of the online system. The most important aspect that is related to the company under consideration is the competitive rivalry that is very strong. This affects the company as the available opportunities are taken up very quickly by the companies. The Amazon Company has developed a competitive advantage with the help of the huge level of operations attained. This huge competitive advantage also helps the company to successfully implement expansion strategies in the foreign markets through mergers and acquisitions.

Market Share of the company

right28638500The following picture depicts the market share of all the players in the market.

The above picture shows that Amazon had the largest market share in 2016 and 2017 CITATION Rec19 \l 1033 (Recode, 2019).

The market Structure

The current market structure is monopoly that is created by Amazon. This is characterized by one firm dominating the whole market through its decisions. This impacts the decision making in a way that the company becomes more independent in making the decisions and the other firms have to follow the footsteps of the company CITATION Hal99 \l 1033 (Varian, 1999).

Suggestions

The company should come up with some substantial set up to cover the risks associated with the payments. This will further improve the financial aspects of the company.

The monopoly will be affected very much by the steps taken by the government to regularize it. These steps can be hazardous to the company. Thus, it is recommended that the company voluntarily helps to improve the competition aspects of the market.

The company should come out of the number game and think about any external costs associated with the business activities undertaken by the company.

References

BIBLIOGRAPHY Amazon. (2018, December). https://ir.aboutamazon.com/static-files/0f9e36b1-7e1e-4b52-be17-145dc9d8b5ec. Retrieved from https://ir.aboutamazon.com/static-files/0f9e36b1-7e1e-4b52-be17-145dc9d8b5ec: https://ir.aboutamazon.com/static-files/0f9e36b1-7e1e-4b52-be17-145dc9d8b5ec

Budzinski, O. (2015). Is Amazon the next Google. DE GRUYTER.

Greenspan, R. (2019, February 24). http://panmore.com/amazon-com-inc-five-forces-analysis-recommendations-porters-model. Retrieved from http://panmore.com: http://panmore.com/amazon-com-inc-five-forces-analysis-recommendations-porters-model

Heimeshoff, J. H. (2014). Google, Facebook, Amazon, eBay: Is the internet driving competitionor market monopolization. International economics and economic policy, 49-61.

Recode. (2019). https://www.google.com/search?q=market+share+for+amazon&tbm=isch&source=iu&ictx=1&fir=P5WJ6CfvhJEUAM%253A%252CyHcSWrmntJfWHM%252C_&vet=1&usg=AI4_-kQrhdLxftldsP3tdZVnAohEdRsyRA&sa=X&ved=2ahUKEwjEjv2y9fbhAhWFyYUKHRirDMsQ9QEwAHoECAwQBg#imgrc=P5WJ6CfvhJEUAM:. Retrieved from https://www.google.com: https://www.google.com/search?q=market+share+for+amazon&tbm=isch&source=iu&ictx=1&fir=P5WJ6CfvhJEUAM%253A%252CyHcSWrmntJfWHM%252C_&vet=1&usg=AI4_-kQrhdLxftldsP3tdZVnAohEdRsyRA&sa=X&ved=2ahUKEwjEjv2y9fbhAhWFyYUKHRirDMsQ9QEwAHoECAwQBg#imgrc=P5WJ6CfvhJEUAM:

Senthilnathan, S. (2016). The imopact of elasticity on firm's revenue. international journal of science and research, 1728-1731.

Varian, H. R. (1999, August 30). http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.68.1683&rep=rep1&type=pdf. Retrieved from http://citeseerx.ist.psu.edu: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.68.1683&rep=rep1&type=pdf

Subject: Economics

Pages: 4 Words: 1200

American Entrepreneur Research

Your Name

Instructor Name

Course Number

Date

American Entrepreneur Research

Micheal Kors- Fashion Designer

Micheal Kors, one of the remaining American fashion designers who does not look for inspiration in others’ works, was born on August 9, 1959, in Long Island, New York. His birth name was Karl Anderson Junior but when his mother, a former model, remarried, she offered him to choose a new forename as well. In the wake of World War II, America had endless opportunities for its citizens and new arenas were being explored in the retail and fashion industry. Kors started early in the world of fashion and TV. He appeared in toilet paper and cereal ads as a toddler. As an adolescent, he had a deep love for the latest fashion trends and used to collect all the issues of Vogue magazine.

Having a suburban home in New York, Micheal Kors’ social, cultural and ethnic background helped to instill all the bits of fashion intelligence in him CITATION REN11 \l 1033 (Lafaille). His mother was a strong influence in his life choices and gave him abundant exposure to the fashion world. In the 1970s, he moved to the city and got enrolled in the Fashion Institute of Technology but shortly dropped out of it being gifted an opportunity to exhibit and sell his fashion designs at the store where he temporarily worked. As a teenager, he started designing for small boutiques in Manhattan which filled the lack of his formal college education and added to his experience.

The best-known achievement of Micheal Kors is serving in the capacity of a judge on the widely acclaimed, popular TV show, ‘Project Runway'. Besides this, he is also known for designing the dress of Michelle Obama for her first official portrait CITATION LiC18 \l 1033 (Li).

In re-shaping the concept of self-expression and a distinctive individual style, Micheal Kors has transformed many American lives and won millions of hearts. The designs of the brand are an epitome of elegance, luxury, and affordability. A large portion of his profits goes to help needy children and to charity. Michael never had to change his ambitions, instead, his surroundings fortified his passion for fashion designing.

Learning about this person has made me more driven about my aims in life and empathy for the unfortunate.

Micheal Kors followed HUNT as follows:

H: Dropping out of the college and starting his designing and sales, helped him harness his vision

U: Kors showcased his work throughout New York in small boutiques and also worked for long hours, learning and re-imagining American style.

N: Providing his services as a judge on the popular TV show ‘Project Runaway' secured Kors' network CITATION JUL18 \l 1033 (Emmanuele)

T: Launching his first clothing line and keeping all the clothes underpriced was his first step towards a globally recognized brand with more than 550 stores in various countries.

Works Cited

BIBLIOGRAPHY Emmanuele, Julia. https://www.bustle.com/p/former-project-runway-judge-michael-kors-is-just-as-excited-for-the-new-cast-as-you-are-12248144. 12 October 2018. Report. 26 October 2019.

Lafaille, Rena. https://abcnews.go.com/Entertainment/michael-kors-surprising-facts-superstar-designer/story?id=13733549. 2 June 2011. Facts. 26 October 2019.

Li, Cai. "Consumer-brand relationship of American luxury brands in the Finnish market–A case study of Michael Kors." (2018).

Subject: Economics

Pages: 1 Words: 300

Analysis Of “the Big Short:inside The Doomsday Machine By Michael Lewis” While Explaining How Marxism Relates To The Financial Crisis Of 2008

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Subject

Date

Analysis of “the Big Short: Inside the Doomsday Machine by Michael Lewis” While Explaining How Marxism Relates to the Financial Crisis of 2008

The financial crisis of 2007-2008 brought severe crises to the American economy after the Great Depression of the 1930s and this is the reason economists call it the Great Recession. The Great Recession started in 2007 after the crisis happened in the banking and subprime mortgage. The recession brought crisis not only to the American economy but soon its impact reached other Asian economies like China, Hong Kong, and India. Michael Lewis wrote a book in which he discussed the Great Recession and its impact. On the other hand, Karl Marx criticized capitalism from different aspects and claimed that it will bring a recession in the future. The main purpose of the research is to analyze the work of Michael Lewis and critique by Marx to understand the fact that even today, Marxism is efficient to understand the process of capitalism and its impact on the economy as well as society.

The Great Depression resulted in a vast change in economic activities as well as the pattern of society. The behavior of society and decision making changed after the Great Depression and various economic theories failed to understand the reason for the crisis. The same thing happened with the Great Recession where financial, as well as economic policies, failed and the condition of banking and subprime mortgage market became worst. Economists compare this crisis with the Great Recession while this research paper will analyze the main factors contributing to the recession and criticism of Marx towards capitalism which can be observed in the crisis. It has been decades when Marxism presented its arguments against religion and capitalism but it seems that those statements and criticism are still working in the society as well as economy somewhere. Before analyzing the book and Marx's view, the background of both is important to understand.

Background of the Book:

The book, "The Big Short" written by Michael Lewis highlights the factors that resulted in the financial crisis of 2007-2008. The author not only discussed the factors but also highlighted the impact of the crisis on the banking system, investment, economy, and a common civilian who became unable to pay his loan. Men who became the reason for the financial crisis were portrayed as main characters to indicate how self-interest of a few people can be dangerous for the whole nation. The book is based on ten chapters in which the author explains the various situations that happened with the characters due to the crisis. The author Michael Lewis also shows interest in elements like finance and money and this is what can be observed in this book. He set the plot of the story around the financial activities of the people and the game of money that changed the life of the people ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"tnnUmsms","properties":{"formattedCitation":"(Lewis)","plainCitation":"(Lewis)","noteIndex":0},"citationItems":[{"id":942,"uris":["http://zotero.org/users/local/rVaVAHaF/items/S5DH4ZPK"],"uri":["http://zotero.org/users/local/rVaVAHaF/items/S5DH4ZPK"],"itemData":{"id":942,"type":"book","title":"The big short: inside the doomsday machine","publisher":"W.W. Norton","publisher-place":"New York","number-of-pages":"266","edition":"1st ed","source":"Library of Congress ISBN","event-place":"New York","ISBN":"978-0-393-07223-5","call-number":"HC106.83 .L5 2010","shortTitle":"The big short","language":"en","author":[{"family":"Lewis","given":"Michael"}],"issued":{"date-parts":[["2010"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Lewis).

Karl Marx and Capital:

Karl Marx is considered an atheist by the people who tried to show the bad side of the religion. However, his work about capitalism indicates that Marx was not against religion as he discussed about philosophy, religion, sociology and economics to criticize the change that occurred due to capitalism. He highlights the ideology of the people that helps them to make the decision in a different situation in which religion, ideology, and stereotypes play an important role. For instance, Marx relates capital with labor force. The choices of labor and purchasing of labor by the producer can impact the capital and within capitalism, such elements pay an important role as the producer can exploit the labor to increase their profits. Let us now analyze the book, "The Big Short" and compare it with the critique of Marx regarding the capital to understand the reason for the financial crisis of 2007 and 2008 ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"SelrTvXt","properties":{"formattedCitation":"(Tucker et al.)","plainCitation":"(Tucker et al.)","noteIndex":0},"citationItems":[{"id":944,"uris":["http://zotero.org/users/local/rVaVAHaF/items/3YGJDQJI"],"uri":["http://zotero.org/users/local/rVaVAHaF/items/3YGJDQJI"],"itemData":{"id":944,"type":"book","title":"The Marx-Engels reader","publisher":"Norton","publisher-place":"New York","number-of-pages":"788","edition":"2d ed","source":"Library of Congress ISBN","event-place":"New York","ISBN":"978-0-393-05684-6","call-number":"HX39.5 .M374 1978","language":"en","editor":[{"family":"Tucker","given":"Robert C."},{"family":"Marx","given":"Karl"},{"family":"Engels","given":"Friedrich"}],"issued":{"date-parts":[["1978"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Tucker et al.).

Analysis:

In the first chapter of the book, the author puts the main focus on the character "Steve Eisman". He got a job with the help of parents and served as an investment banker in the book. He remained the central character throughout the book due to the decision making that had a great impact on his and others' life during the crisis. The decision was to bet against the subprime mortgage, "Most people didn't understand how what amounted to a two-decade boom in the bond market had overwhelmed everything else. Eisman certainly hadn't. Now he did. He needed to learn everything he could about the fixed-income world. He had plans for the bond market. What he didn't know was that the bond market also had plans for him. It was about to create an Eisman-shaped hole,” ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"tnnUmsms","properties":{"formattedCitation":"(Lewis)","plainCitation":"(Lewis)","noteIndex":0},"citationItems":[{"id":942,"uris":["http://zotero.org/users/local/rVaVAHaF/items/S5DH4ZPK"],"uri":["http://zotero.org/users/local/rVaVAHaF/items/S5DH4ZPK"],"itemData":{"id":942,"type":"book","title":"The big short: inside the doomsday machine","publisher":"W.W. Norton","publisher-place":"New York","number-of-pages":"266","edition":"1st ed","source":"Library of Congress ISBN","event-place":"New York","ISBN":"978-0-393-07223-5","call-number":"HC106.83 .L5 2010","shortTitle":"The big short","language":"en","author":[{"family":"Lewis","given":"Michael"}],"issued":{"date-parts":[["2010"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Lewis). When investors were interested to spend their investment in the subprime mortgage, Steve was one of the investors who believed that subprime mortgages will result in loss or crisis in the future. The first chapter indicates the lots of details regarding the financial activities between Steve Eisman and his accountant Vincent Daniel. Steve used the credit default swaps during the crisis which gave him lots of money which means lots of profit at the time of crisis. These elements can be observed in the Karl Marx explanation of the commodity where he explained that, “Exchange-value, at first sight, presents itself as a quantitative relation, as the proportion in which values in use of one sort are exchanged for those of another sort a relation constantly changing with time and place,” ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"SelrTvXt","properties":{"formattedCitation":"(Tucker et al.)","plainCitation":"(Tucker et al.)","noteIndex":0},"citationItems":[{"id":944,"uris":["http://zotero.org/users/local/rVaVAHaF/items/3YGJDQJI"],"uri":["http://zotero.org/users/local/rVaVAHaF/items/3YGJDQJI"],"itemData":{"id":944,"type":"book","title":"The Marx-Engels reader","publisher":"Norton","publisher-place":"New York","number-of-pages":"788","edition":"2d ed","source":"Library of Congress ISBN","event-place":"New York","ISBN":"978-0-393-05684-6","call-number":"HX39.5 .M374 1978","language":"en","editor":[{"family":"Tucker","given":"Robert C."},{"family":"Marx","given":"Karl"},{"family":"Engels","given":"Friedrich"}],"issued":{"date-parts":[["1978"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Tucker et al.). These lines indicate that whenever a person makes the decision for the financial activity, its result may vary. For instance, Steve was against subprime mortgage while at the same time other investors were in favor of a subprime mortgage. In 2005, the investment was profitable and helpful for increasing the profit but over time, negative consequences appeared. However, it is not easy to say which party is right because the exchange-value of both shows positive results. The people who invested put their focus on the exchange value of the present time. On the other hand, Steve was more focused on the future exchange value. The investment and fraud started in subprime mortgages did not happen in the same year when the crisis started. It was the impact of the financial activities that started a few years back. As written in the book, bankers started making strategies to get profit through investing in the subprime mortgage market. Marx identified such capitalists who work for their self-interest and revenue rather than the overall growth of the economy.

In the second chapter of the book, Michael Burry was the character that was discussed in detail. He was also an investor like Steve but Lewis portrayed him linked with the stock market. Burry acquired interest and knowledge of the stock market and therefore, his financial activities were related to the stock, bonds, and people related to the stock market. This chapter discussed the various dark humor related to the financial crisis of 2007 and 2008. Being an investment banker, Burry decided to invest his money in bonds. In addition, his interaction with the customer was shown as non-verbal communication. Most of his discussions with the customer were made through the internet rather than face to face interaction. He decided for subprime mortgage bonds through the credit default swaps. However, before the implementation of his decision, Lewis portrayed him as a responsible and a person who does a lot of research to avoid loss. After researching and investigating various companies and their stock values, he finally developed a hedge fund company scion capital. The chapter gave deep details of Burry's financial activities and his interaction with the client. Lewis also clearly explained his goal to wait for the time when he can sell his bonds to get maximum profit. However, the future was opposite to his expectation which can be observed through the lines, “The loans suddenly were going bad at an alarming rate. Back in May, Mike Burry was betting on his theory of human behavior: The loans were structured to go bad. Now, in November, they were actually going bad,” ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"tnnUmsms","properties":{"formattedCitation":"(Lewis)","plainCitation":"(Lewis)","noteIndex":0},"citationItems":[{"id":942,"uris":["http://zotero.org/users/local/rVaVAHaF/items/S5DH4ZPK"],"uri":["http://zotero.org/users/local/rVaVAHaF/items/S5DH4ZPK"],"itemData":{"id":942,"type":"book","title":"The big short: inside the doomsday machine","publisher":"W.W. Norton","publisher-place":"New York","number-of-pages":"266","edition":"1st ed","source":"Library of Congress ISBN","event-place":"New York","ISBN":"978-0-393-07223-5","call-number":"HC106.83 .L5 2010","shortTitle":"The big short","language":"en","author":[{"family":"Lewis","given":"Michael"}],"issued":{"date-parts":[["2010"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Lewis). This unexpected change can be observed, "The simplest value-relation is evidently that of one commodity to someone other commodity of a different kind. Hence the relation between the values of two commodities supplies us with the simplest expression of the value of a single commodity,” ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"SelrTvXt","properties":{"formattedCitation":"(Tucker et al.)","plainCitation":"(Tucker et al.)","noteIndex":0},"citationItems":[{"id":944,"uris":["http://zotero.org/users/local/rVaVAHaF/items/3YGJDQJI"],"uri":["http://zotero.org/users/local/rVaVAHaF/items/3YGJDQJI"],"itemData":{"id":944,"type":"book","title":"The Marx-Engels reader","publisher":"Norton","publisher-place":"New York","number-of-pages":"788","edition":"2d ed","source":"Library of Congress ISBN","event-place":"New York","ISBN":"978-0-393-05684-6","call-number":"HX39.5 .M374 1978","language":"en","editor":[{"family":"Tucker","given":"Robert C."},{"family":"Marx","given":"Karl"},{"family":"Engels","given":"Friedrich"}],"issued":{"date-parts":[["1978"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Tucker et al.). It implies that the value of one commodity can impact the value of the other commodity. For instance, the stock market and banking system faced a crisis in the Great Recession side by side. The factors like low investment and selling of stock in the fear of more loss resulted in a loss for two different financial sectors. Subprime mortgage market values affected the stock market and people who were in any of the market faced loss or some got extraordinary profit. Marx's critique of capital, therefore, seems accurate where two commodities show a correlation with each other and can affect the economy at an extreme level. Marx claimed that, "The relative form and the equivalent form are two intimately connected, mutually dependent and inseparable elements of. the expression of value; but, at the same time, are m usually exclusive, antagonistic extremes-i.e., poles of the same expression,” ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"SelrTvXt","properties":{"formattedCitation":"(Tucker et al.)","plainCitation":"(Tucker et al.)","noteIndex":0},"citationItems":[{"id":944,"uris":["http://zotero.org/users/local/rVaVAHaF/items/3YGJDQJI"],"uri":["http://zotero.org/users/local/rVaVAHaF/items/3YGJDQJI"],"itemData":{"id":944,"type":"book","title":"The Marx-Engels reader","publisher":"Norton","publisher-place":"New York","number-of-pages":"788","edition":"2d ed","source":"Library of Congress ISBN","event-place":"New York","ISBN":"978-0-393-05684-6","call-number":"HX39.5 .M374 1978","language":"en","editor":[{"family":"Tucker","given":"Robert C."},{"family":"Marx","given":"Karl"},{"family":"Engels","given":"Friedrich"}],"issued":{"date-parts":[["1978"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Tucker et al.) It can be considered as true by analyzing the lines of the book above where subprime mortgage market and stock market were mutually dependent during the recession. This indicates the situation of America when the stock market was used to invest money in such a way that the impact of baking and subprime mortgage market results in the profit of the investor. Economic models indicate that various variables show correlation and fluctuation in one variable results in the fluctuation of other variables. The same happened in the financial crisis of 2007-2008 when people became unable to pay back the loan, it increased the burden on the bank to circulate the required amount of money in the market. It affects the investment level, therefore, the stock market also faced a problem. The problem started with the subprime mortgage and reached the overall growth of the economy and the nation had to face the serious issue of the Great Recession.

In the next two chapters, Lewis's narration was clear and detailed about the situation during the crisis. He discussed the new character; one of the key people in the story who was working in the Deutche Bank named Gary Lippmann. Gary made a deal with Steve's company front point. The first chapter was based on 2005 when investors were so positive about the subprime mortgage market while these two chapters were portraying the situation of 2006 when few of the crucial aspects became the worry of the investors. On 700 million dollars’ worth loan, Burry owned credit default swaps. He was also involved in reinsuring and defaulting loans. The relationship between characters started from these chapters and therefore the impact of one's financial situation started to affect the situation of the other character. The financial activities like targeted AIG and the deal between Gary and Steve was based on self-interest. Both men were in search of big shots where they can get a good opportunity to get millions by using a subprime crisis in their favor. This part shows the real world factor where people use the customers and exploit them by giving them high amounts of loans. Such people became the reason for the condition known as a recession. For instance, “The beauty of the credit default swap, or CDS, was that it solved the timing problem. Eisman no longer needed to guess exactly when the subprime mortgage market would crash. It also allowed him to make the bet without laying down cash upfront, and put him in a position to win many times the sums he could possibly lose,” ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"tnnUmsms","properties":{"formattedCitation":"(Lewis)","plainCitation":"(Lewis)","noteIndex":0},"citationItems":[{"id":942,"uris":["http://zotero.org/users/local/rVaVAHaF/items/S5DH4ZPK"],"uri":["http://zotero.org/users/local/rVaVAHaF/items/S5DH4ZPK"],"itemData":{"id":942,"type":"book","title":"The big short: inside the doomsday machine","publisher":"W.W. Norton","publisher-place":"New York","number-of-pages":"266","edition":"1st ed","source":"Library of Congress ISBN","event-place":"New York","ISBN":"978-0-393-07223-5","call-number":"HC106.83 .L5 2010","shortTitle":"The big short","language":"en","author":[{"family":"Lewis","given":"Michael"}],"issued":{"date-parts":[["2010"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Lewis) shows how Garry and Steve set their net on customers and start waiting for the crisis so they can earn money and become millionaires. Marx also believed that producers or capitalists spend their money in such a way that they can earn more money from it. The main purpose to increase transaction is the revenue. For instance, Marx’s explanation that, “The capitalist knows that all commodities, however scurvy they may look, or however badly they may smell, are in faith and truth money, inwardly circumcised Jews, and what is more, a wonderful means whereby out of money to make more money,” ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"SelrTvXt","properties":{"formattedCitation":"(Tucker et al.)","plainCitation":"(Tucker et al.)","noteIndex":0},"citationItems":[{"id":944,"uris":["http://zotero.org/users/local/rVaVAHaF/items/3YGJDQJI"],"uri":["http://zotero.org/users/local/rVaVAHaF/items/3YGJDQJI"],"itemData":{"id":944,"type":"book","title":"The Marx-Engels reader","publisher":"Norton","publisher-place":"New York","number-of-pages":"788","edition":"2d ed","source":"Library of Congress ISBN","event-place":"New York","ISBN":"978-0-393-05684-6","call-number":"HX39.5 .M374 1978","language":"en","editor":[{"family":"Tucker","given":"Robert C."},{"family":"Marx","given":"Karl"},{"family":"Engels","given":"Friedrich"}],"issued":{"date-parts":[["1978"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Tucker et al.) It depicts the situation of Garry and Steve who used their money in such a way so that they can get more money. During the financial crisis, various bankers gave loans to the people without telling them complete information regarding the payment of the loan. When the crisis began, people were unable to pay the loan as the amount was higher than their expectations. Bank started to face a crisis that resulted in the Great Recession. Marx was true to understand the fact that capitalists understand when to play which card to acquire wealth and revenue. Capitalism brought the need for power and success rather than equality and a balanced economy. People spent their money in such a way that even during the crisis they can be safe. The concept of mutual interest as Marx discussed disappeared from the economic activities.

In the next few chapters of the story, various characters including Jamie Mai, Charlie Ledley, and John Paulson were introduced who were linked with Garry and Steve and their financial activities were correlated. During the financial crisis, banks and common people were high on risk while the people who gave huge loans got the profit. It resulted in the unequal distribution of wealth in the economy where the banking system, stock market, and subprime mortgage were about to fail. People lost their trust and held their spending on banking and stock market, "A tiny handful of investors perceived what was happening not just to the financial system but to the larger society it was meant to serve, and made investments against that system that were so large, in relation to their capital, that they effectively gave up being conventional money managers and became something else,” ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"tnnUmsms","properties":{"formattedCitation":"(Lewis)","plainCitation":"(Lewis)","noteIndex":0},"citationItems":[{"id":942,"uris":["http://zotero.org/users/local/rVaVAHaF/items/S5DH4ZPK"],"uri":["http://zotero.org/users/local/rVaVAHaF/items/S5DH4ZPK"],"itemData":{"id":942,"type":"book","title":"The big short: inside the doomsday machine","publisher":"W.W. Norton","publisher-place":"New York","number-of-pages":"266","edition":"1st ed","source":"Library of Congress ISBN","event-place":"New York","ISBN":"978-0-393-07223-5","call-number":"HC106.83 .L5 2010","shortTitle":"The big short","language":"en","author":[{"family":"Lewis","given":"Michael"}],"issued":{"date-parts":[["2010"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Lewis) these all were because of the people like Steve and Garry discussed in the story. For instance, Marx explained that, "It is under the form of money that value begins and ends, and begins again, every act of its own. “Spontaneous generation” ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"SelrTvXt","properties":{"formattedCitation":"(Tucker et al.)","plainCitation":"(Tucker et al.)","noteIndex":0},"citationItems":[{"id":944,"uris":["http://zotero.org/users/local/rVaVAHaF/items/3YGJDQJI"],"uri":["http://zotero.org/users/local/rVaVAHaF/items/3YGJDQJI"],"itemData":{"id":944,"type":"book","title":"The Marx-Engels reader","publisher":"Norton","publisher-place":"New York","number-of-pages":"788","edition":"2d ed","source":"Library of Congress ISBN","event-place":"New York","ISBN":"978-0-393-05684-6","call-number":"HX39.5 .M374 1978","language":"en","editor":[{"family":"Tucker","given":"Robert C."},{"family":"Marx","given":"Karl"},{"family":"Engels","given":"Friedrich"}],"issued":{"date-parts":[["1978"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Tucker et al.) , shows the strategy of people who invest their money in such a way that any negative impact on the subprime mortgage gives is treated in the form of money. People who invest in self-interest rather than mutual interest often exploit a particular group of the population. In the case of the Great Recession, exploited people were the civilians who got a loan for the mortgage and became unable to return the loan. This was the time when the financial crisis became the biggest worry for the subprime mortgage market, stock market, and the people who had to pay the loans. On the other hand, people who gave high loans by hiding the actual price and other policies enjoyed the high profit.

In the last few chapters, author brought various other faces as influential players in finance that make billions of money through credit default swap like Howie Hubler. The last chapter of the book indicates the downfall of the hedge funds. The ending portrays the time of the year 2008 when there was a complete recession. Banks were trying to stay while the stock market was trying to control the investment for further crisis. In this situation, the leading character of the story sold their Front point bonds to become the big shot. The typical story ending in which a liar or the bad person loses their battle is not portrayed instead Lewis showed the real image of the financial crisis. The situation which brought loss in people life from which they were unable to come out. He also showed the profit of the specific group who earns millions of dollars and tried to maintain their business, "It was like last on the list of the things we needed to do to keep our business running. Morgan Stanley had seventy billion dollars in capital. We knew the money was there." Exact behavior was discussed by Marx years ago, “The repetition or renewal of the act of selling to buy, is kept within bounds by the very object it aims at, namely, consumption or the satisfaction of definite wants, an aim that lies altogether outside the sphere of circulation. But when we buy to sell, we, on the contrary, begin and end with the same thing, money, and exchange-value; and thereby the movement becomes interminable." It indicates how accurate Marx's critique was for capitalism. He analyzed the behavior and financial activities of the capitalists through the perspective of religion, self-interest, sociology, economy, and as a philosopher. His critique no doubt reflects the situation of the Great Recession years ago. The evidence indicates that Marx understood the factors affecting capitalism and its impact on society and the economy of the nation. This is why he was against capitalism and believed that it can kill the positive pattern of the society. Issues like unemployment, exploitation, dominance, and inequality can be the result of capitalism. He discussed the correlation between capital and labor in detail to indicate how the lives of labors are in the hand of the capitalists. The main agenda of the capitalist is to earn money. Capitalists are least interested in the condition of the labor and society. Therefore, a crisis like a Great Recession can be the result of capitalism. When the recession began to resolve, people who had bought bonds and shares started to worry because the time for their profit came to an end. Various factors helped the banking system and other markets to handle the situation and people who were involved in fraud became worried to reinvest their money to maintain the profit.

Conclusion:

The analysis of the movie, "The Big Shorts" written by Michael Lewis depicts the real image of the situation of the financial crisis of 2007- 2008. The characters portrayed in the book were linked to the financial activities and their decision making was based on the profit acquired at the time of crisis. The book is meaningful to understand the factors and elements that played an important role in the Great Recession. Markets started to shrink and lost investment. Investors hold their investment and tried to get their money back due to the fear of the future. People who took loans were also worried as they were unaware of the actual amount of the loan and were unable to pay it back. Lewis showed various bankers who invest their money and adopt different strategies to earn the profit. They wait for the crisis so that they can sell their shares or bonds to get millions of money. The same concept was given by Marx years back. Marx identified the capitalists as a group of people who think for their profit only and exploit the labor and other capital of the economy. He explained that capitalists spend their money in the market and make more money from it. The process of spending money keeps on going until they get high revenue in return. Factors like self-interest and exploitation of labor can result in the failure of the economy of recession. His critique seems true after analyzing the Great Recession with the help of the book. The bottom line is that various people lost their money in the Great Recession while some got a high return through the crisis. These uncertainties increased the inequality of wealth in the economy.

Work Cited:

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Lewis, Michael. The Big Short: Inside the Doomsday Machine. 1st ed, W.W. Norton, 2010.

Tucker, Robert C., et al., editors. The Marx-Engels Reader. 2d ed, Norton, 1978.

Subject: Economics

Pages: 11 Words: 3300

Analyzing Companies Based On The Statement Of Cash Flows

The Company 1 has the least cash in change and the beginning cash. However, by the end of the same year, the ending cash had increased from $17275 to $97265. This is an extremely good and promising growth. Therefore, it can be stated that the company 1 has sustained the survival stage and is now on the path of the rapid growth stage. Company 1 also shows promising market prospect in coming years as they have a positive growth value. The health status of the company is also very stable and promising. Considering this, company 1 holds a better prospect of being an ideal choice amongst the three companies.

The Company 2 has good cash generated from operating activities, investing activities and financing activities. However, the company appears to be in loss as its ending cash had declined from $1403445 to $ 1289145. This shows that the company has probably crossed the expansion and market growth stage and is now at the maturity stage. Therefore, it is recommended that the company must make itself capable of dealing with challenges such as increased market competition, moving on to new markets, developing a sustainability plan and having an exit plan as well. The company 2, however, is not an ideal choice for the investment as it will be exposed to multiple challenges and threats in the current market.

Th company 3 has the best level of revenue generated from operating, investing and financial activities. Its Net change in cash is also of the greatest value of all three. Also, the company appears to be in a stable but matured stage as its ending cash has increased from $1639000 to $2080300. However, the difference between the beginning and ending cash is not much. Therefore, it can be stated that the company does has a stable position, but it can soon end up in maturity stage from where it will have to face more challenges to generate greater revenue.

Considering the cash flow statement of the three company, I would rank Company 1 as first, Company 3 as second and Company 2 as third. The reason is that the Company 1 is a budding company with potential to survive in market and generate greater revenues. The Company 3 is still in a stable position while the Company 2 is going in loss and probably facing more market challenges.

References

Dugan, M. T., Gup, B. E., & Samson, W. D. (1991). Teaching the statement of cash flows. Journal of Accounting Education, 9(1), 33-52.

Wallace, R. O., Choudhury, M. S., & Pendlebury, M. (1997). Cash flow statements: An international comparison of regulatory positions. The International Journal of Accounting, 32(1), 1-22.

Subject: Economics

Pages: 2 Words: 600

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