Econ 401 1b

In: Business and Management

Submitted By jeisons
Words 524
Pages 3
1. Explain what is meant by the globalization of markets and globalization of production. Also, provide and discuss an example of each.

Globalization of Markets, refers to the integration of different and separate markets (offering the same basic product worldwide) into one global market place. Some specific consumer products such as Apple, Pepsi, Nike are a good example of globalization of markets, though we need to clarify that the most global markets currently are not for consumer products; they are for Industrial goods and material, such as traded commodities (oil, gas, corn, steel), industrial machinery, computer software etc.
We also realize that as companies (competitors) follow each other around the world in order to establish themselves in different markets, they bring along many of the assets that served them well in other national markets, such as, product, brands, and marketing strategies.

Globalization of products refers to the sourcing of materials, goods and services from low cost producers around the world to be able to offer equal or better quality product at a more competitive and profitable level. A manufacturer of clothing company is a good example of this, cotton is purchased in Peru, Crocodile skin in Colombia, and is all put together in Montreal to be sold in the USA market. Another advantage of globalizing products or services is to be able to deliver results to the client (depending on the industry) at a much faster pace.

2. What does the Venezuelan economy teach us about appropriate systems needed to develop economically and to enhance future prosperity and standards of living? In your estimation, what is the long run prognosis for the Venezuelan economy? Is this a country that is attractive to international businesses? Currently Venezuela is benefitting from a boom in oil prices. What do you think might happen if oil…...

Similar Documents


...Econ Homework Chapter 3:Problem 2 2. Consider an economy in which taxes, planned investment, government spending on goods and services, and net exports are autonomous, but consumption and planned investment change as the interest rate changes. You are given the following information concerning autonomous consumption, the marginal propensity to consume, planned investment, government purchases of goods and services, and net exports: Ca=1500-10r ,c=0.6 ,T=1800 Ip=2400-50r ,G=2000 ,NX=-200 a. compute the value marginal propensity to save is as follows: 1-C=1-0.6=0.4 b. Autonomous planned spending, Ap, equals Ca − cTa + Ip + G + NX = 1,500 − 10r −.6(1,800) + 2,400 − 50r + 2,000 − 200 = 4,620 − 60r. Therefore, at an interest rate equal to 3, autonomous planned spending equals 4,620 − 60(3) = 4,440. c. Since the marginal propensity to save equals 0.4 and the equilibrium level of income equals Ap /s, the equilibrium level of income equals 4,440/.4 = 11,100, given the interest rate equals 3. d. Since autonomous consumption changes by 4 percent of any change in household wealth and the decline in the housing market in 2006–09 and drop in the stock market of 2007-09 reduces household wealth by 3 trillion dollars, the decrease in autonomous consumption that results from the decline in household wealth equals .04(3) = 120 billion. e. Since the decrease in autonomous consumption that results from the decline in household wealth equals 120 billion, autonomous......

Words: 326 - Pages: 2


...ECON 191, Fall 2012 Guidelines for Writing an Economics Research Paper Writing a good economics paper is both an exciting and a nontrivial task. It requires a sustained effort in identifying an important question and in developing a credible model to think about that question or a testable hypothesis to answer it. In many cases it may require collecting data that gives the opportunity to test the hypothesis that you develop. You are encouraged to structure your paper in four parts: introduction, literature review, body, and conclusion. A brief abstract of no more than 100 words should precede your paper. Introduction Identifying a significant and well formulated question is the single most important part of the research process and the most difficult as well. A good research question has to be concise (remember, you are writing a 15-page paper, not a book), feasible and important. Choosing a research question requires balancing importance and feasibility. Feasibility means tractability for theoretical research and data availability for empirical research. Whenever you come up with an idea for a research question, always try to think about a critic sitting in front of you asking “Why should I care about this?” Consider this question to be a first filter for your research question. Identify a well-defined research question. The introduction is where you (1) present the research question, (2) motivate why it is important and briefly outline (3) how you go about answering it...

Words: 1405 - Pages: 6


...Econ Problem Set #3 1. Suppose that a comic book publisher pays an annual licensing fee of $20,000 for the rights to an artist’s character. Which would have a larger impact on the number of readers of the comic using this character: (i) an increasing in the printing costs associated with publishing the comic, or (ii) an increase in the artist’s licensing fee to $22,000. Please carefully explain your reasoning. The increase in printing cost would have the larger impact on the number of readers of the comic. Because the increase in printing cost could be thought as a variable cost increase. The increase in cost would vary when the quantity increases. The increase costs per book could be easily realized and thus the publisher would choose to increase the price of goods. The number of readers would thus decrease due to increase of selling price. For the increase in license fee, it would be considered as fixed cost, which is more important in the short run business instead of long run businesses. 2. A firm's total cost schedule and the demand for its product are summarized in the table below (a) Complete the table and use the tools discussed in the online lecture and in the book to determine the level of output that maximizes the firm's profit. Costs | Revenues | Quantity Produced | Total Cost | Marginal Cost | Quantity Demanded | Price | Total Revenue | Marginal Revenue | 0 | 0 | - | 0 | 155 | 0 | - | 1 | 70 | 70 |...

Words: 505 - Pages: 3

Econ 401

...The five major characteristics of globalization are their globalization of markets and globalization of production, within these two we have a five major characteristics the one being the merging of national marketplace into one large market these markets include goods and some services. Outsourcing is our second characteristic in which companies can reduce their costs in production and services by finding Nationals where the inputs are cheaper. The two main drivers of globalization are Technological changes and reduced trade and investment barriers. The technological change is response as the world becomes more advanced with the internet and wireless communication it allows smaller companies to search the world for lower cost on items that it needs for manufacturing, and also it allows cheap transportation of items from one place in the world to another with quicker movement. The original exceptions about how globalization would affect global disparities, inequality and poverty 3.What is the basic liberal argument in support of globalization, what are some limitation of this argument? The basic liberal argument in support of globalization is that it is the most efficient way of going about organizing production by producing what the consumer wants. The liberal argument show that openness in trade and capital flows can lead to higher growth and standard living. Thus it should help poorer countries to gain access to markets in developed countries Some of the......

Words: 370 - Pages: 2


... pp. 401–03. Jump up ^ Friedman Milton (1953). "The Methodology of Positive Economics", Essays in Positive Economics, University of Chicago Press, p. 10. Jump up ^ Boland, Lawrence A. (1987). "methodology", The New Palgrave: A Dictionary of Economics, v. 3, pp. 455–58. ^ Jump up to: a b Frey, Bruno S., Werner W. Pommerehne, Friedrich Schneider, and Guy Gilbert. (1984). "Consensus and Dissension Among Economists: An Empirical Inquiry". American Economic Review 74 (5): p p. 986–994. Accessed on 2007-03-17. Jump up ^ Quirk, James (1987). "qualitative economics", The New Palgrave: A Dictionary of Economics, v. 4, pp. 1–3. Jump up ^ Samuelson, Paul A. (1947, 1983). Foundations of Economic Analysis, Enlarged Edition. Boston: Harvard University Press. p. 4. ISBN 978-0-674-31301-9. Jump up ^ Hashem, M. Pesaren (1987). "econometrics", The New Palgrave: A Dictionary of Economics, v. 2, p. 8. Jump up ^ Probability, econometrics and truth: the methodology of econometrics By Hugo A. Keuzenkamp Published by Cambridge University Press, 2000 ISBN 0-521-55359-8, ISBN 978-0-521-55359-9 312 pages, page 13: " economics, controlled experiments are rare and reproducible controlled experiments even more so..." Jump up ^ Blaug, Mark (2007). "The Social Sciences: Economics" ( Methods of inference and Testing theories), The New Encyclopædia Britannica, v. 27, p. 347. Jump up ^ McCullough, B.D. (2007). "Got Replicability? The Journal of Money, Banking and Credit Archive" (PDF). Econ......

Words: 17785 - Pages: 72

H-1b Visas

...H-1B Visas: Necessary for Growth H-1B Visas grant foreign immigrants the opportunity to be hired by US employers for their specialized skills. In 2012, the United States granted 136,000 H-1B Visas to foreign immigrants, over 50,000 more than the numerical cap. Recently, the Senate passed a bill to increase the amount of H-1B Visas. This has caused increased notoriety in the media and public and has led to a continuous hot bed of controversy. Opponents of H-1B Visas claim domestic jobs are in jeopardy and this government program is a way of depressing wages. These assertions could be no farther from the truth. Advocates of additional H-1B visas are the major high tech companies in Silicon Valley such as Facebook, Microsoft, Google, and Oracle. These companies are all in favor of raising the current yearly cap and have been publicly lobbying for this. These tech companies have highly specialized jobs that domestic workers are not fit for. By bringing in foreign immigrants with these specialized skills allows these Facebook, Google, etc. to continue their innovation and growth. The tech titans of Silicon Valley are growing at such a rapid pace, the domestic job market is unable to catch up. According to Brad Smith, Microsoft’s Chief Counselor, the economy produces 120,000 new jobs per year that require STEM (Science, Technology, Engineer, & Math) skills, but colleges are only producing 40,000 STEM graduates a year.* The shortage could cause economic slowdown for these......

Words: 492 - Pages: 2


...40 $2.50 $2.60 $2.70 $2.80 $2.90 $3.00 $3.10 $3.20 $3.30 $3.40 $3.50 Demanded (Qd) 60,000 58,000 56,000 54,000 52,000 50,000 48,000 46,000 44,000 42,000 40,000 38,000 36,000 34,000 32,000 30,000 28,000 26,000 24,000 22,000 20,000 18,000 16,000 14,000 12,000 10,000 Supplied (Qs) 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000 28,000 30,000 32,000 34,000 36,000 38,000 40,000 42,000 44,000 46,000 48,000 50,000 Surplus (+) / Shortage (-) -60,000 -56,000 -52,000 -48,000 -44,000 -40,000 -36,000 -32,000 -28,000 -24,000 -20,000 -16,000 -12,000 -8,000 -4,000 0 4,000 8,000 12,000 16,000 20,000 24,000 28,000 32,000 36,000 40,000 [Type text] [Type text] [Type text] [Type text] Question 1b Below are the demand and supply curves for the lumber/forest products industry over the range of prices indicated previously. Price Quantity [Type text] [Type text] [Type text] [Type text] Question 2a AVC = a + bQ + cQ^2 Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Q 70 58 160 120 130 120 10 35 80 110 100 190 AVC 375 540 450 255 138 150 450 350 60 70 90 153 [Type text] [Type text] [Type text] [Type text] Question 2b Regression Analysis as shown below: SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0.56239384 0.316286831 0.164350571 154.7560266 12 ANOVA df Regression Residual Total 2 9 11 SS 99711.4002 215544.8498......

Words: 660 - Pages: 3


...ECON 2113 Homework 2 L4 Hu Weiwei 20268464 Xu Lili L4 Hu Weiwei 20268464 Xu Lili 1a. The demand curve is estimated as Qd = 1600-2400P and the supply curve for pay telephone service is Qs = 200+3200P. When equilibrium is reached, the quantity demanded is equal to the quantity supplied. Thus, we can solve 1600-2400P = 200+3200P to find out the equilibrium price. By calculation, the equilibrium price P = $0.25. Substitute P = $0.25 into the demand curve equation, Q = 1600-2400(0.25), the equilibrium quantity Q = 1000. Therefore, the equilibrium price is $0.25 and the equilibrium quantity is 1000 pay telephone calls per month. 1b. With the effective price ceiling at $0.10 on local pay phone service in long run, it is below the equilibrium. Since the quantity demanded is larger than the quantity supplied after the price ceiling is imposed, shortage is resulted. As the price is restricted at $0.1, though Qd = 1600-2400(0.1) = 1360, Qs = 200+3200(0.1) = 520 < Qd = 1360. The quantity supplied is not enough to satisfy the quantity demanded. It results in a shortage of 1360-520 = 840 pay telephone calls per month.Therefore, the maximum......

Words: 2075 - Pages: 9

History Question 1b

...1b) Write a detailed account of the Black Tuesday events of 1965 in The Bahamas. Black Tuesday was an incredible turning point in the Bahamas and will always be remembered in Bahamian history. The events of that fateful day, coined Black Tuesday by Arthur Foulkes, a borrow expression from the American name of the day Wall Street Crashed. Black Tuesday will forever be considered the most significant event in the struggle for majority rule. On that day ,27th April,1967. Sir Lynden Pindling, then leader of the Opposition, during a heated debate over boundaries threw the mace out the window. It all started with the formation of the first political party, Progressive Liberal Party (P.L.P) by the late Sir Henry Taylor, Cyril St. John Stevenson, M.V.D and William Cartwright in 1953.The General Strike of 1958 showed Bahamians what power they had in numbers following this, the British government made changes to the electoral system. The land qualifications were abolished. Women also pushed for the right to vote. In 1961 this was granted and in the 1962 General Elections women voted for the first time. Though the P.L.P expected to win now that women voted they did not. Instead they only won 8 of the 29 seats. In an effort to change the electoral system the P.L.P called for change in the constituency boundaries. The principle of majority rule had been one for which the P.L.P fought long and hard for in the early years of the party, one of its objectives was to......

Words: 657 - Pages: 3

Econ 401 Assignment 1

...5 Is there a way forward? A Cease-fire Now The dry season is arriving in South Sudan, and with it, fears of renewed ground fighting. Every effort should be made to achieve a cease-fire right now in Western Upper Nile. It would bring respite to thousands of people if a component of any such cease-fire was a removal of the iniquitous Flight Bans which just deprive hungry people of the food they need. Operation Lifeline Sudan is ready to assume the risks of operating when conditions are less than optimal;the GOS is wrong to hide behind concerns for their safety in applying these bans,and not only Canada but also Talisman and its oil partners should now put their influence behind efforts to have the bans removed, but it is best that this be done in the context of the needed cease-fire in Western Upper Nile/Unity State. And this cease-fire should be monitored by the international community through the use of monitors on the ground, among other means, particularly at the airstrips used by the oil companies, at Heglig, Rubkona, and Bentiu. A cease-fire which Talisman, either witnessing or acquiescing in the use of Heglig airstrip for military purposes, should be very firm in advocating and ready to pay a price for,perhaps in the form of foregone revenues. The gunships and Antonovs have taken off from Heglig with their payloads of death and displacement. That this never again occur should be the goal of all concerned; but why not seek to have the gunships and......

Words: 448 - Pages: 2


...Economic Times, 2014.) Fig 1a depicts that China has been facing much fluctuation in her annual GDP growth, from year to year. The most significant drop was during 2007 to late 2008 of an estimated 1% per quarter annual. For the year 2012 and 2014, the country has been maintaining a GDP of 7.6% which is lower than the past decades of average 9.6%. GDP per Capita Analysis The GDP per Capita is obtained by dividing the country’s gross domestic product, adjusted by inflation, by the total population. Fig 1b) China’s GDP per capita against USA’s GDP per capita 2004 – 2014 (, 2014). Sourced from Being the 2nd largest economy in the world, economist would expect China to have a high real GDP per Capita, however as shown in Fig. 1b), it is low as compared to the first world countries, ranked only in the low-middle range of the world. This saliently explains that there exist a problem of inequality in China. As shown in Fig. 1b), the highest recorded GDP per capita comparison between China and US is 3583.83 USD against 45863.02 USD respectively, being almost 13 times. This might be caused by China’s massive population (1.397 billion est.). However, one cannot deny that if we were to consider China’s GDP Purchasing Power Parity (PPP), the country has proven that the strong purchasing power per income earner, being 11524.27 USD has proven otherwise to the aforementioned claim. 3 Types of unemployment Frictional......

Words: 1600 - Pages: 7


...25 markers Econ The term inflation means a persistent increase in the level of prices. The question believer that an increase in aggregate demand can cause inflation, however there can also be other factors that can cause inflation. The term aggregate demand is that total planed expenditure in the economy. Known by the identity C+I+G+(X-m). In macroeconomics there are 2 types of inflation, demand-pull inflation and cost-push inflation. The demand-pull inflation is caused by an increase in total spending (aggregate demand), the economy is producing beyond the economy’s ability. The aggregate demand in an economy strongly outweighs the aggregate supply, which cause the price to increase. As the economy reaches full capacity, firms will be struggling to produce enough to meet the rising demand. As you can see from the figure, AS is slow curving up and becoming inelastic because of full capacity. The demand curve then shifts to the right because of a high demand, from AD1 to AD2. This causes involuntary stock depletion due to a low supply. When this happens, firms will choose to increase price to widen the profit margins. So price level increase from P1 to P2. Furthermore, as employment in an economy increase, the demand in goods and services will be much more inelastic. This allows firm to increase the price more without any significant fall in demand. There are various reasons that can cause an increase in aggregate demand. First of all, a decrease in exchange rate......

Words: 626 - Pages: 3


...ECON Project I. Introduction The efficient market hypothesis says that these returns should not be systematically related to the information known in 1990. We have the data of the return of the stock prices from various firms over the four-year period between the end of 1990 and the end of 1994. If the characteristics of a firm reflected the return of the stock, this could help with predicting the stock price in the future. We hypothesize that the return of the stock are related to debt capital ratio, earnings per share, salary of the CEO, net income, logarithm of net income and salary, and the stock price at the end of 1990 and 1994. II. Literature Review We are formulating how the CEOs compensation can affect the stock prices within a four-year period between the end of 1990 and 1994.An investigation based on the use of individual evaluation in CEO’s incentive plans that contrasts with objective stock price based measures may involve. Using complementary data evidence can be shown that individual performance evaluation increases growth opportunities (Bushman p. 161-193). An examination of the executive compensation structure of 153 randomly-selected manufacturing firms in 1979–1980 provides evidence supporting advocates of incentive compensation, and also suggests that the form rather than the level of compensation is what motivates managers and CEOs to increase firm value (Hamid p. 163-184). III. Data and Methodology Our data is a list of observations from 142......

Words: 1407 - Pages: 6

Assignment 1b - Written Response

...Assignment 1B – Written Response 5/4/2016 As an online learner, aiming to be a professional in the field of logistics, I have learned the following: The skills and attributes I need in order to be successful include higher level thinking skills, or “sense-making” (Davies, Fidler & Gorbis 2011, p. 12), and these are critical for decision making to create unique insights. The is because in the logistics industry, smart machines are quickly taking over rote and routine jobs. Another attribute I would need to possess is “cross-cultural competency” (Davies, Fidler & Gorbis 2011, p. 13). This is due to the logistics industry being quite diverse. Being able to adapt and respond to new circumstances is important as what makes a group truly innovative is the combination of different ages, skills, disciplines, etc. Organisational forms and skill requirements are rapidly changing, and I understand that I need to put the right resources together to learn and adapt. Learning online is different because I require a different way of thinking and discipline towards my studies. I am used to learning through the theory “transmissionist model of education” (Murphy 2000) where we may be in a classroom or lecture environment and the teacher at the front of the class is conveying his/her wisdom, known as interpersonal. Initially, I thought studying online would be done in isolation, but that has since changed. Using the......

Words: 901 - Pages: 4

Econ 401 Assignment 2

...ECON 401 Assignment 2, version E 1. (a) Explain the new trade theory. What is the role of economies of scale in this theory?  The new trade theory specialize in the production and export of particular products not because of underlying differences in factor endowments, but because in certain industries the world market can support only a limited number of firms. So a country’s pattern of trade may be a reflection of the ability of firms in that nation to capture first-mover advantages. Two important points: • Impact on economies of scale, trade can increase the variety of good available to consumers and decrease the average cost of those goods. • When output required attaining economies of scale representing a huge portion of the world demand, world trade in certain products may be dominated by countries whose firms were first movers in their production. i.e. Boeing The role of economies of scale is the ability to spread fixed costs over a large volume and the ability to high-volume producers to utilize specialized employees and equipment that are more productive than less specialized employees and equipment. Economies of scale are a major source of cost reduction in many industries. (b) Discuss the implications of the new trade theory.  The new trade theory was designed to account for the ratio of trade to GDP has increased, trade has become more concentrated among industrialized......

Words: 739 - Pages: 3

La amenaza invisible – Stealth (2005) 1 LINK HD Latino | The Long Road Home | 10Pcs Usd Dental Orthodontic Super Elastic Nitinol Square Round Arch Wires Funny