Non-market economics

External Factors and Internal Factors The 2008 great recession had caused several economic downturns to many financial institutions, which forced to go out of business or filed a bankruptcy protection. This financial crisis had caught many economists off-guarded the severity of financial damages that the crisis created. There were numerous factors that caused the financial collapse included the over-heat real estate market, the mortgage-back security products, the loose monetary policy, the…

report is aimed at focusing on the International Market Evaluation with a global perspective which helps in understanding the global economy and the economic, political, technological and socio- cultural environment within which the business organisation operates. PESTLE analysis is a tool used to determine various external opportunities and threats affecting business operating in the macro environment. This report also provides a detailed market evaluation of MC Donald’s, which is one of the…

Milton Friedman argues that the correlation between general price level and money supply is captured using the economic equation of exchange. MV=PY where Money supply/Quantity of money. On the other hand, V=Velocity of money circulation, while P and Y represent General Price and Real national income respectively. The according to Milton Friedman, the equation means that the total value of the quantity of money multiplied by velocity equals the money value acquired at the output. Regarding the…

period of time, until present where it only forms 8% of Australia’s GDP (as of 2010-11) . This decline can be seen as the result of structural changes mainly economic liberalisation, or the lessening of government intervention in the economy, since the 1980s under Prime Minister Bob Hawke and continuing into the present . The result of this economic liberalisation has been the most profound on the car manufacturing and the textiles, clothing and footwear (TCF) industries which had previously…

Discussion Questions: Discussion: Why would government need to interfere? Government will interfere for political, economic, and cultural reasons. In the economic sense, the government might intervene to protect, regulate and control the resources. Some political motives involve securing jobs, national security, responding to unfair trade, and gaining a bigger influence in the market. For instance, in order to secure jobs, the government might enforce local content requirements. These…

up the largest market share, thus at their peak they controlled up to 80% of the worlds rough diamond supply. Through their tactic of restricting the supply of diamonds, the De Beer Corporation has made diamonds, into a luxury good. Over the past 100 years they have consolidated their vast share of the market through essentially buying out all opposition they faced. Monopolies are illegal because they give a lot of power to an individual supplier giving them an unfair share of market power and…

1) Market based transfer prices Market based transfer prices occur where a perfectly competitive market exist for intermediate products which makes it optimal for both decision making and performance evaluation to set transfer prices at competitive market prices. A perfectly competitive market exist when products sold are all the same and no individual buyer or seller can affect market prices. Transfer prices are recorded at market prices therefore divisional performance is likely to represent…

essay intends to analyse the impact of branding and innovation in a monopolistic coffee market with an analysis of its effects on short and long-run profits. This essay will then discuss how applicable theory is to the real-world with a focus on the competitive advantage gained from instruments such as branding and innovation strategies which aid profits to persist in the long-run. Firms in a monopolistic market structure can break even, make losses, or achieve supernormal profits in the…

At the beginning of the period, the price of Computers, Inc. divided by the industry index was 0.39; by the end of the period, the ratio had increased to 0.50. As the ratio increased over the period, it appears that Computers, Inc. outperformed other firms in its industry. The overall trend, therefore, indicates relative strength, although some fluctuation existed during the period, with the ratio falling to a low point of 0.33 on day 19. 18. Five day moving averages: Days 1 – 5: (19.63 + 20 +…

Together, they built up a successful partnership. After the successful run with Cerberus, BAWAG’s struggle seemed to be finally drawing to a close. The new ownership brought about a fresh start and BAWAG invested about 250 million in Austria’s retail market. But the main factor in restoring its reputation was that of flawless customer service along with strong focus on product development for the satisfaction of customers. By offering support to the customer and putting their best foot forward,…