Category: Economics 2707
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Financial Institutions: Policies and Regulations
How can policies and regulations impact financial institutions? Whenever regulations are lifted, some financial institutions may most likely run into financial losses. In most cases, earnings are increased through protected monopolies. However, the introduction of policies and regulations often break this link and hence, financial institutions end up losing greatly (Bismuth, 2010). However, when costs…
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Chavezs Nationalization of the Cargill Factory
Why did Chavez decide to nationalize Cargill? Do you think he was justified? Though hardly anyone could expect the nationalization of Cargill to occur, the reasons behind the decision taken by Chavez are quite obvious. Seeing that the president has been known for his enmity towards foreign companies within the state, the nationalization of the…
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Rising Grain Prices and Global Economy Response
Reasons why Prices of Food Such as Rice and Grain are on the Rise The United Kingdom is one of the developed nations in the world. It has been able to ensure that food security for its citizens is guaranteed. The agricultural sector of this country is quite advanced, and many players in this industry…
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Financial Institutions and Fiscal Instruments
Demand and supply are obviously affected by the monetary tools of Fed Monetary supply is affected by Fed using three main tools. These tools include the rate target for the federal funds, lending practices carried out through discounts and finally, the reserve regulation as stipulated by fiscal laws. To begin with, the supply of reserves…
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Buying a Single-Property House in Los Angeles
Information about the house and neighborhood The single-property house which I have selected is located in Los Angeles at 1274 South Camden Drive. It has four bedrooms, three bathrooms. Its exterior design strongly resembles the Spanish architectural style. This house has a very spacious living room with beamed ceilings and a fireplace. The size of…
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Managerial Economics: Supply, Demand and Firms Profits
Over the last 30 years in the US, the real price of a college education has increased by almost 70 percent. Over the same period, an increasing number of high school graduates have sought a college education. While faculty salaries have barely kept pace with inflation, administrative staffing (and expenditures) and capital costs have increased…
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Market Indicators for Entry Decision-Making
Companies refer to several market potential indicators in making market entry decisions. Michigan State Universitys School of Business has developed eight indicators to help companies to make such decisions when considering entry into emerging markets. Emerging markets are quite critical as they form majority of the worlds population and account for more than half of…
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South Asian Association for Regional Cooperation
Business Indicators for (Foreign) Investors Foreign Exchange Stability Chowdhury & Haque (2008) pointed out that the foreign exchange stability and virtual exchange rates of currencies in SAARC nations were more stable on average throughout the past decade than the US Dollars, Euro, and Yen, which prevail in the Special Drawing Rights. SAARC countries pursue stable…
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Consumer and Firm Theories and Competitive Behaviour
Consideration of a simple economy in which two output goods are produced using only labor, yielding three markets Simple economy Chinas agricultural sector is a simple yet labor-intensive economy. In the simple economy which is the agricultural sector, the cost of production and the prices of goods produced are mainly determined through the use of…
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Competitive Advantage and Related Misunderstanding
Competitive advantage is the ability one country has over another to produce a particular commodity with a comparatively lower opportunity cost. For example, Kenya has the necessary climatic conditions for the production of coffee. On the other hand, Switzerland has an advantage in the technology to manufacture refined coffee for sale in the world market.…