5 Characteristics of Paul's Missionary Methods
Northcentral University
Assignment Cover Sheet
Felix Rogombe
SKS5000-8 Comprehensive Strategic Knowledge Studies
5 Paper–Business Economics
Dr. Jaime Klein
Date: February 12, 2012
To: ABC Complete Kitchens, Inc.
From: Felix Rogombe
Attn.: ABC Complete Kitchens, Inc. President and CEO
RE: Economic factors that may influence the plant’s operations and legal considerations.
On a macroeconomic level, according to a United Nations’ study, “The recovery of the global economy continues, with strong output growth in developing countries and weaker economic performance in developed countries.” (UN, 2011)Even so higher energy and food cost are contributing to rising inflation rates. These indicators are mitigated by a stronger world trade of goods and services in 2010 compared to the year of 2009, it should be noted that Asian countries account for most of this growth. According to the above cited UN report, some of the risks witch may hamper the growth that is currently taking place may be the problem regarding the sustainability of public finance of developed countries, including the collapse of the dollar due to continued volatility of commodity prices. This doesn’t take in consideration the unpredictable area of policy making which outcomes cannot be accurately predicted.
Because the financial situation is more favorable internationally ABC Complete Kitchens, Inc. should consider capitalizing on the international market while at the same time mitigating its production costs in the United States by outsourcing a larger part of part of products. These will naturally lower overheads, labor and any other cost associated with production, so that in the eventuality of a double deep recession the company will still be able to compete based on the price affordability of its products as well as the flexibility of not having to carry the load of overheads and all other cost associated with running a factory of this magnitude. Concerning microeconomic, given
Assignment Cover Sheet
Felix Rogombe
SKS5000-8 Comprehensive Strategic Knowledge Studies
5 Paper–Business Economics
Dr. Jaime Klein
Date: February 12, 2012
To: ABC Complete Kitchens, Inc.
From: Felix Rogombe
Attn.: ABC Complete Kitchens, Inc. President and CEO
RE: Economic factors that may influence the plant’s operations and legal considerations.
On a macroeconomic level, according to a United Nations’ study, “The recovery of the global economy continues, with strong output growth in developing countries and weaker economic performance in developed countries.” (UN, 2011)Even so higher energy and food cost are contributing to rising inflation rates. These indicators are mitigated by a stronger world trade of goods and services in 2010 compared to the year of 2009, it should be noted that Asian countries account for most of this growth. According to the above cited UN report, some of the risks witch may hamper the growth that is currently taking place may be the problem regarding the sustainability of public finance of developed countries, including the collapse of the dollar due to continued volatility of commodity prices. This doesn’t take in consideration the unpredictable area of policy making which outcomes cannot be accurately predicted.
Because the financial situation is more favorable internationally ABC Complete Kitchens, Inc. should consider capitalizing on the international market while at the same time mitigating its production costs in the United States by outsourcing a larger part of part of products. These will naturally lower overheads, labor and any other cost associated with production, so that in the eventuality of a double deep recession the company will still be able to compete based on the price affordability of its products as well as the flexibility of not having to carry the load of overheads and all other cost associated with running a factory of this magnitude. Concerning microeconomic, given
References: Hormats, R. D. (2011, September 13). U.S. Economic Policy and the Asia Pacific. Retrieved March 4, 2012, from US Department of States: http://www.state.gov/e/rls/rmk/2011/172307.htm Investopedia. (2012). Tutorial: Microeconomics. Retrieved February 4, 2012, from Microeconomics: http://www.investopedia.com/university/microeconomics/microeconomics3.asp#axzz1nytPphcJ UN. (2011). World Economic Situation. Retrieved March 3, 2012, from ADVANCE UNTED VERSION: http://www.un.org/en/development/desa/policy/wesp/wesp_current/2011wespupdate.pdf