Economic issues must also be considered. Companies must realize that basic macro data, i.e. GDP/GNP, should be weighed lightly as most of this data will be government controlled and fails to accurately evaluate the market. This means that in order to get a true evaluation of the economy the company is going to have to visit the marketplace for themselves. Key issues should include: ownership of natural resources, food production, workforce skills, unemployment rate, amount of foreign debt, stability of the currency, trade policy and associations, ease of acquiring capital, tax laws, and repatriation laws. Particularly companies must realize that capitalism exists in a different capacity outside of the US, and that the state will play a much larger role in the economy of the country than most executives will be accustomed to. Another concern to take note of is that many foreign economies are driven by powerful families which dominate the country both economically and politically. These risks should the organized into a risk factor matrix. This matrix will include a list of risk factors which are evaluated on a scale of 1-5 on two different criteria: the degree of risk, and its relative importance. This risk matrix gives companies a tool by which to evaluate countries as a whole, which can be used to evaluate each country in a side by side comparison and allows a detailed compare and contrast. By comparing each suspect country in this manner a company can see exactly how the countries rate against each other and gives an idea of which countries will be the most feasible to enter. In order to…
article titled, “Why Investors Can't Get More Cash Out of U.S. Companies,” shares some interesting facts about current US companies. It states that some of the most successful companies in the US have been and are continuing to borrow funds to support their operations. In particular, Microsoft, one the most well known companies are also included in the list; just this year alone, the report is that they’ve borrowed $2.25 billion to run the company. What’s puzzling about this fact is that Microsoft has $40…
performed well in 2009 despite tough global economic conditions and an increasingly competitive market at home. It returned to double digit growth and its key financial performance indicators were positive: operating revenues increased by 12% to IDR2 41.58 trillion (~ USD 4.4 billion), EBITDA grew by 14%, and net profits saw a 15% increase. Its total debt balance at end of 2009 was somewhat high at IDR 11.38 trillion (almost 25% of total revenues). The company intends to continue its performance and…
Macroeconomics Data Report - Part I
Entering into 2015, the United States has experienced a positive economic upswing after its last recession which took place during the housing bubble and endured from 2008 to 2009. Economic indicators compliment on proof that the U.S. economic has shown growth in 2013 and 2014. Economic gauges such as Index of Leading Economic Indicators (LEI Index), Real Gross Domestic Product (Real GDP), Consumers Price Index (CPI), the unemployment rate, and other supplementary…
Product (RGDP) expenditure approach by province and territory. The purpose of this question is to become familiar with the format and location of data you may need to find in later in your studies or at work.
a. Copy down, export or print of the table so that you may use the information to create a graph – you chose the type. Compare the data for BC to Canada for the five years available. You need to choose the type of graph you wish to present. (7 marks)
b. You may use the graphing…
stock market. The factors can have a negative or positive affect on the stock market. If
Changing interest rates, or specific news pertaining to one company
news influences the price of all shares traded in the stock market.
The basic economic concepts of supply and demand affects the stock market. If more people are wanting to buy shares the company, the demand of the share increases. Therefore, this will increase the share price as there is only a limited supply of stock available. On the other…
PRINCIPLES OF ECONOMICS: MACRO
Program Learning Objectives: The learning goals of the Bachelor of Commerce program are communication, information literacy, critical thinking, team work, and ethics and social responsibility. These are explained in detail on our website (http://www.sobey.smu.ca/programs/bcomm/program.html). The learning objectives for this course are:
Prepare professional written reports/assignments
Prepare and deliver professional…
central bank (Bank of England here, the Federal Reserve Bank in the USA)
Essentially, this is the use of Interest Rates to either encourage a bit more Economic Growth (GDP) or to slow it down. The central bank sets SHORT TERM Interest Rates – raising them to make credit dearer and slow down the economy; cutting them to make credit easier and encourage economic growth.
The central banks do not control ALL interest rates – only short term rates. The “Markets” determine longer term interest rates – if…
“Economics has never been a science - and it is even less now than a few years ago.”…Paul Samuelson
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. A focus of the subject is how economic agents behave or interact and how economies work. A given economy is the result of a process that involves its technological evolution, history and social organization, as well as its geography, natural resource endowment, and ecology…
Research Paper on Coca Cola
Research Paper on Coca Cola Company
The Coca-Cola Company Limited is the world's largest beverage company and is the leading producer and marketer of soft drinks. Due to the facing of highly competition in the market, the Company used more than million dollars in the R& D, marketing and production, in order to design a new product to gain a higher margin. This report is mainly focusing on how Coca-Cola Company Limited uses strategies in order to competitive in…
more efficiently than another nation.
I and III only.
II and III only.
I, II, and III.
Question 26 (Multiple Choice Worth 2 points)
If a clothing manufacturer purchased a computerized sewing machine from an American company, then
consumer spending and GDP both increase.
investment and GDP both increase.
consumer spending increases and GDP decreases.
investment increases and GDP decreases.
consumer spending and investment both increase.
Question 27 (Multiple…