Chapter Two Economics: The Framework for Business Review Questions 1. How did the global economic crisis unfold? The economy changed for the worse when the dot.com bubble burst in 2000‚ and 9/11 terrorist attacks happened in 2001. 2. What steps did the Federal government and the Federal Reserve take to mitigate the crisis? They decreased interest rates‚ and subprime mortgage came into play. They seized a few companies that controlled a lot of the mortgage. The congress passed a 700 billion
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Economic systems doesn’t remain static as they are always in transition. They are determined by history and culture of their people. A transition economy is an economy which is changing from a centrally planned economy to a free market. Transition economies undergo economic liberalization‚ where market forces set prices rather than a central planning organization. In addition to this trade barriers are removed‚ there is a push to privatize state-owned businesses and resources‚ and a financial sector
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As the picture given depicts ‚ the socialist market-oriented economy in our country is developing rapidly‚ just like a truck running at a high speed. But the general public is surprised to find that there are more and more fake and inferior products seriously hampering the expansion of our market economy. Consumers have to be very careful in purchasing goods and services they need; otherwise they will fall into the traps set by the illegal manufacturers. There is no doubt that fake and inferior
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Essay Question: What are ideologies and how do they impact upon policy making? Ideologies refer to a set of ideas and values that provides a base for organised political action. They justify and influence the different theories of society and human nature. Ideologies have a big impact on policy making‚ as the government of the day will base their policies around these political ideologies. The two major political parties in New Zealand‚ National and Labour‚ each have different beliefs and values
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Christian perspective. The correct view of things such as what ‘freedom’ is within a free market economy.
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2 Assignments 1. Free market economies stimulate greater economic growth‚ whereas state-directed economies stifle growth. Discuss. In a free market economy‚ individuals/corporations are allowed to own property and other assets. Ownership provides incentive for people to work hard‚ be innovative and creative; all while hoping to attain additional wealth. Sequentially‚ the desire from individuals/corporations to accumulate wealth enhances the whole economy and generates economic growth. In
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international business in Bangladesh. It can be expected that in the near future the country will begin to get the fruits of international business in the new open market economy. PESTAL ANALYSIS 1.1: Economic Environment Bangladesh has suffered the stigma of a disaster -prone drought-ridden country for many years having a developing economy. Since then it has dropped steadily to about 2%. Export earnings have risen by 40 billion in the past three years to US $ 2.7 billion. In the past 20 years Bangladesh’s
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instead they grind people to the ground‚ exploit them‚ steal from them‚ and deny them with decent living standards or health care. The Need for the Rich Others believe that the rich are essential to our economy. The economy needs rich people because they have wealth. As the economy expand‚ the rich needs to save profit to invest on capital goods to adjust to the increase in poverty. Why is the poor and middle class living in subsistence and can’t save? They may have money saved up for retirement
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global business. Factors managers need to consider in general and in the banking industry when offshoring will be analysed through the use of the PESTEL analysis and Geert Hofstede’s approach to assessing national culture. ANZ bank will be used as an example when analysing offshoring factors for the banking industry by examining their policies and response to these factors. Finally the challenges of doing global business for managers in the banking industry will be briefly discussed to identify how managers
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Environmental scan template Table of Contents 1. Introduction 3 2. Filters 3 2.1 Filter example: Type of market 3 2.2 Filter example: Country population 3 3. Template 3 4. Combination of strategy and foreign market conditions 7 5. Further opportunities for action 8 6. Sources 9 Table of Figures Figure 1: Combination of PEST analysis and strategy……………………7 Introduction Scanning the external environment is critically important to ensure the success of firms
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