Causes and Effects on Global Economy Research Paper

Causes and Effects on Global Economy - Research Paper Example The spate of events undermined the confidence of the investors impacting the global financial markets. With the tightening of the credit norms, there was a slowdown in the economies worldwide. It is argued that the government and Federal banks could have avoided this situation had they acted on time. Critics put the blame on the regulatory practices of the government and credit rating agencies. The latter failed to assess the risk associated with the mortgage-based financial products. As a result of the high ratings given to these securities, they were passed on to the investors easily. A hike in the interest rate led to widespread delinquency on the home loans and early foreclosures. This increased the supply of houses thereby putting a downward pressure on their prices. The rise in the rates of delinquencies due to the steep housing installments eroded the value of the mortgage-based securities. Surplus liquidity and low rates of interest created conditions of easy credit and contributed to a housing boom. There was a considerable increase in the homeownership rates in the country most of which was comprised of the subprime mortgage. During this time credit was extended to the borrowers with a bad credit history. The installments on these loans were low initially but with the rest of the interest rates, the monthly installments of the borrowers also increased substantially. Meanwhile, the steep rise in the house price and credit created a building boom. The rise in the rate of foreclosure together with the surplus unsold houses caused a steep fall in the housing prices in the US. Another reason that contributed to the rise in the home loan delinquency was the quality of credit. Enticed by earning higher transaction fees the lenders failed to check the creditworthiness of the borrower and in the process extended credit to the high-risk segment.

Criminal and civil law Research Paper Example | Topics and Well Written Essays - 1500 words

Criminal and civil law - Research Paper Example In this study, the difference between the civil and criminal court principles, administration, procedures and types of cases in Ontario will be compared and contrast. As part of going through the main discussion, examples of cases that occurred in Ontario since 2005 will be provided in this paper. In principles, criminal law in Ontario includes acts that is proven to cause intentional harm to another person or other people’s property whereas civil law involves either disputes between two people or negligent acts that could end up causing harm to another person (Canadian Superior Courts Judges Association, 2010 a). A good example of criminal law under the classification of burglary is the act of breaking into the home of another person with the intention to commit a felony (Lippman, 2010, p. 420). In line with this, the main purpose of criminal law is to protect the society’s peace and order (Sixth Sense, 2010). Civil law aims to protect the interest of private individuals by upholding the rights of each person (Jenkins, 2011, p. 320; Sixth Sense, 2010). Unlike criminal law which involves the act of causing intentional harm to another person, civil law involves the argument between two people or any form of negligent acts which may end up causing harm to another person. These arguments can arise out of misunderstanding or disagreement over the ownership of land or buildings, dismissal of employee, bounced checks, or unresolved financial debts (FDIC, 2010). Aside from simple family law cases such as divorce, division of conjugal properties, spousal and child support, parental responsibility for a child or the distribution of estates of deceased person; professional negligence and malpractice that could have resulted to physical injury or damages to another person is also categorized under civil court cases (Canadian Superior Courts Judges Association, 2010 a). Since criminal offenses are made against the security and safety of the

Price Competition Versus Non Price Competition Economics Essay

Price Competition Versus Non Price Competition Economics Essay When there is competition in firms on the basis of change in price, it is known as price competition. Price competition can involve discounting the price of a product (or range of products) to increase its demand. Various forms of market indulge in price wars in order to earn a large market share and a profit margin. As price of a product increases or decreases, it leads to fluctuations in the demand of the product of particular firms. So all the firms always keep a watch on the market forces of demand and supply, the derived equilibrium price, competition etc. in order to skim the market. Non price competition When there is competition in firms on the basis of factors other than price such as advertising, sales promotion, product differentiation, branding etc., it is known as non-price competition. Price competition vs. non-price competition Price Competition Non Price Competition Competition between the firms based on price where one firm tries to beat or match the price of the other. Firm tries to be the lowest cost giver for the product in the market. The firm must have the vision to respond to the strategy of other firm very quickly. High cross price elasticity must see more of price competition. Here the firms compete with each other with the strong factors like product differentiation, quality of the product etc. The firm tries to build consumer loyalty so that it can sell its product to the maximum number of consumers and increase its market share. They promote awareness in the consumer for the differentiation of their product. High own price elasticity must see more non price competition. Effect of price on Quantity Demanded Quantity Supplied An increase in price has an inverse relationship with the quantity demanded and a positive relationship with the quantity supplied i.e. an increase in price decreased the demand and increases the quantity supplied and vice versa. Determination of Equilibrium price The market forces of demand and supply determine the equilibrium price. This equilibrium price becomes the basis for firms in perfect or imperfect competition to charge a price for their product. Thus the firms make a cost minimising production function Figure 2: Equilibrium price: Supply and Demand forces Supply_curve_shift In the figure, equilibrium price is p0 and equilibrium quantity is QO i.e. when quantity demanded is equal to quantity supplied equilibrium is achieved. These points only show the equilibrium state but do not show the response of the change of quantity demanded and supplied with respect to price. Here comes the importance of elasticity of demand and supply. ANALYSIS OF DIFFERENT MARKET SITUATIONS WHICH GIVE RISE TO PRICE AND NON-PRICE COMPETITION Elasticity and price and non-price competition play a vital role in determining various forms of market structure, their price, demand and supply, total revenue, shape of the demand curve etc. the market structure can be delineated as follows: MARKET Market Structure Imperfect competition Monopoly Perfect Competition Monopolistic Oligopoly Market is not merely a geographical expression but it can be any place where buyers and sellers are in regular contact and they have a perfect knowledge of price. BASIC FEATURES OF MARKET Very large number of buyers and sellers exist in a market. Both homogeneous as well as heterogeneous products are available in a market. Free mobility (movement) of and services goods in a market area. Firms are free to enter and exit. FORMS OF MARKET Perfect competition Monopoly Monopolistic Oligopoly PERFECT COMPETITION Perfect competition is a market situation where large number of buyers and sellers exist. In this market, firm is a price taker whereas Industry is the price maker. FEATURES OF PERFECT COMPETITION Large number of sellers and buyers exist in perfect competition. Homogeneous products are sold in this market where the price may increase or decrease but for the whole industry otherwise it will be a given price. In this market, price remains uniform for two reasons Homogeneous products Perfect competition Firms are free to enter and exit. Price = average revenue = marginal revenue because of price uniformity. Price has no role to play due to homogeneous goods. Price remains uniform but not constant. Example stock market. Non-price competition is not possible as the products are homogeneous, advertising, promotion and branding help the firms to differentiate and create niche in the market. D S P=AR=MR=D S D INDUSTRY FIRM Figure 1.1-Price determination under perfect competition MONOPOLY MARKET It is a market situation where a single seller exists with a large number of buyers and no close substitute is available of monopoly product. FEATURES OF MONOPOLY MARKET Single seller exists in monopoly market with large number of buyers. Close substitutes are not available of the monopoly products as it may work as an obstacle for the growth of the monopoly product. Entry of new firm is very difficult in monopoly market. The existing monopoly power will take all legal as well as illegal concepts to stop the entry of new firms. Price discrimination is one of the most striking features of a monopoly market. It may be defined as charging different price from different customers for the same product on the basis of segments of consumer, quantity to be purchased and degrees of elasticity of demand. Selling cost or cost of advertisement is negligible. Demand curve facing a monopoly firm is downward sloping but less elastic and MR is always less than AR. PRICE MR AR=D QUANTITY Figure 1.2-Demand curve under monopoly market Price leadership is present in monopoly as the firm can charge a high price and take the advantage of being a sole seller but they can charge a reasonable price because it helps in long run growth. In the long run, new firms may enter the market and the existing firms market share may fluctuate. So in their own interest monopoly firm charge a reasonable price. MONOPOLISTIC COMPETITION It is a market situation where elements of both monopoly as well as competition coexist together and differentiated products are sold in the market. FEATURES OF MONOPOLISTIC COMPETITION MARKET Very large number of buyers and sellers exist. This is a virtual market which exists in reality. Differentiated or heterogeneous products are available in this market. Each seller is selling different products from others creating a monopolist tendency. In this market, price always remains in a very close range as the commodities are perfect substitutes of each other. The demand curve facing the monopolistic competition market is again downward sloping but more elastic. In this market MR curve is always less than AR i.e. the additional revenue earned is always less than the average revenue. Firms are free to enter and exit. Price competition is there in monopolistic competition market. Because of the availability of close substitutes, a change in price of one product affects the demand of other product. Price AR=D MR Quantity Figure 1.3-Demand curve under monopolistic competition Non-price competition under this form of market is possible due to availability of close substitutes of the product. The firm in order to attract more customers and retain them would compete with each other on the basis of non-price factors on promotional front i.e. advertisement etc. However, the elements of price competition are also present in this form of market but the price always keeps in a very close range. Example, Once Coke increased its price from Rs.20 to Rs.22 in order to compete with Pepsi. OLIGOPOLY MARKET It is a market situation where few sellers exist with large number of buyers and both homogeneous as well as heterogeneous products are available. There is intense competition among them as far as price and output policy is concerned. FEATURES OF OLIGOPOLY MARKET The number of sellers are more than 2 and less than or equal to 10. Both homogeneous and heterogeneous products are sold. Both collusive as well as non-collusive form of oligopoly market exists. The demand curve in oligopoly market is very difficult to determine (Indeterminate demand curve). There is non-price competition in collusive oligopoly and price competition in non-collusive oligopoly. The demand of other firms is determined by the price variation of any of the existing firms. Until and unless the rivals reaction is not known when there is a change in price, the demand curve cannot be determined. Lets discuss the concept of elasticity so that we can know about the different degrees of elasticity in various forms of market. ELASTICITY Elasticity is the degree of responsiveness for a commodity to a change in its price. Elasticity measures the sensitivity of one variable to another. When a consumer is giving response to the price change he is more elastic whereas if a consumer is not giving response to the price change, he is less elastic. DIFFERENT TYPES OF ELASTICITY Price Elasticity of Demand Price elasticity of Supply Income elasticity of Demand Cross Elasticity MEASUREMENT Elasticity can be measured by following three methods Proportion method/percentage method Geometric method/point elasticity method Expenditure or total outlay method Terminology of elasticity Term Numerical measure of elasticity Verbal Description Price elasticity of demand(supply) Perfectly or completely inelastic Zero Quantity Dd(supplied) does not changes as price changes Inelastic Greater than zero, less than one Quantity Dd(supplied) changes by a smaller % as does price Unit Elasticity One Quantity Dd(supplied) changes by exactly the same % as does price Elastic Greater than one, but less than infinity Quantity Dd(supplied) changes by a larger % as does price Perfectly, completely, or infinitely elastic Infinity Purchasers(sellers) are prepared to buy(sell) all they can at some price and none at all at an even higher(lower) price. Income Elasticity of Demand Inferior good Negative Qty dd decreases as income increases Normal good Positive Qty dd increases as income increases Income-inelastic Less than one Less than in proportion to income increase Income-elastic Greater than one More than in proportion to income increase Cross Elasticity of Demand Substitute Positive Qd of some good and price of a substitute are positively related Complement Negative Qd of some good and price of a complement are negatively related COMPARISON OF MARKETS ON THE BASIS OF ELASTICITY Market forms Price elasticity of demand Perfect competition The demand in perfect competition is perfectly elastic which means with or without change in price, quantity demanded may increase or decreases to any extent. Monopoly The demand in monopoly market is less elastic. A change in price will not affect the demand by much. As there is only single seller in monopoly market, buyers do not have much options in front of them therefore the demand is less elastic. Monopolistic The demand is more elastic in monopolistic competition. It simply means that as soon as there is a change in price, there will be a greater change in quantity demanded. The demand curve facing a monopolistic competition is downward sloping but MORE ELASTIC. Oligopoly In oligopoly market, the demand curve can be both more elastic and less elastic depending upon the rivals reaction to change in price. CONCLUSION In current market scenario, most firms compete on the basis of non-price competition. Though there are some discrepancies in the prices charged by different firms, firms most often prefer and follow non-price competition because it leads to consumer welfare as well as firms profit in long run. PART II I visited Reliance Fresh (a departmental store) in order to conduct a research on floor cleaning detergents. As I entered the store I observed that on the left hand side there is a rack with five shelves on which all the toiletries items are displayed. Floor cleaning detergents are kept on three upper shelves of the rack. Adequate space is provided for the floor cleaning detergents and they can be seen easily from both sides of the rack. Glass cleaning detergents are also put along with floor cleaning detergents. On the topmost shelf, DOWSIL which is the in house brand of reliance chemicals is putted. The store is promoting DOWSIL because the profit margin is high as compared to other brands as it is a product of reliance chemicals. And they are giving a complementary floor cleaning brush with DOWSIL in order to attract larger number of customers. It is priced lower than other brands available. BRANDS I saw six floor cleaning detergent brands that were available. They are: LIZOL DOMEX CIF Easy off bang Mr Muscle DOWSIL perfumed floor cleaner(phenyl) COMPANY FLOOR CLEANERS VARIANT QUANTITY AMOUNT (Rupees) RECKITT BENCKISER LIZOL BLUE 975ML 99.00 BLUE 500ML 52.00 PINK FRAGRANCE 500ML 54.00 LEMON EXPLOSION 500ML 54.00 BEACHPOWDER (LIQUID) 500ML 50.00 HINDUSTAN UNILEVER CIF 500ML 78.00 250 ML 53.00 120ML 27.00 HINDUSTAN UNILEVER DOMEX WHITE 500ML 54.00 WHITE 1 LTR 108.00 HINDUSTAN UNILEVER DOMEX 2IN 1 BLACK 500ML 50.00 SC JOHNSON MR. MUSCLE (floor cleaner) 500ML 50.00 RECKITT BENCKISER EASY OF BANG 400ML 65.00 RELIANCE CHEMICALS DOWSIL PERFUMED 1LTR 66 2LTR 149 3LTR 250 I asked consumers some questions such as How do you choose your floor cleaning detergent? Do you go by advertisement, if yes what are the features that attract you the most? This helped me to come to these inferences: People go by experimental ads i.e. the ads which actually show how their product is different from others and the offers that they are getting such as buy 2 and get 1 free. Price, packaging and product quality matters for them but they dont know much about the ingredients. Here the demand of floor cleaners goes on increasing with the cost, packaging changes and the attractiveness of the advertisement. In my observation I can say that the floor cleaning detergent market is an oligopoly market structure because there are only 6-7 main players present in the market while considered individually. Entry is relatively easy but each brand is a different product in itself, hence even though firms are competing with each other each one is a monopoly by itself. ECONOMIC CONCEPTS BASED ON OBSERVATION Price and non-price competition All the brands compete with each other. The competition is price and non-price depending upon the elasticity. The brands mainly compete with brand differentiation. The different brands fight with packaging, new innovation and advertisements. So here we can say the floor cleaning market is having mainly non price competition as the prices are relatively same. On the other hand, local in-house brands are competing on price; they are placing themselves relatively cheaper than others in order to increase their sales The competition here determines the place and position of the firm which is named as producer. Elasticity of demand The demand in floor cleaning detergents market is more elastic i.e. if one brand increases its price, demand for other brand increases as it is consumers behaviour to shift to substitutes when price of a particular product increases. Packaging and product quality The market share depends upon the amount of work the firm puts on in differentiating its product from the other ones. For example when seen the differentiation LIZOL and DOMEX are coming in many variants which gives consumers a wide choice of variants according to their need. They are focusing more on packaging and product quality. This helps in increasing the demand of a particular brand. So we can say that here DOMEX has created its monopoly in the market till the time another firm gets into this very idea i.e. responds to it with its product with some new innovation in this segment of the consumer to challenge its monopoly When this happens the players in the market get into competition again introducing new product with some new difference. Pricing strategy Big brands such as DOMEX and LIZOL are following price skimming policy as they are relatively charging high prices than other brands in order to skim the market. On the other hand, there are some local brands such as DOWSIL which are competing with other brands on price. They are following price penetration policy. As compared to other brands, these brands are relatively cheaper. CONCLUSION This floor cleaning detergents market actually is a good field to study the economic concepts like market structure, elasticity and competition, and cost factor. According to me, this segment of the market is catering to the high income consumers, there is non-price competition. Since here consumers are less-price sensitive and are affected by the advertisements or product development undertaken by the firm. Hence, we do not see much price competition in this segment. But there are some local players who are competing with other brands on the basis of price. Instead firms catering to this segment only try to price themselves as cheaply as possible to attract the maximum number of consumers. In this survey, I have tried my level best to touch up on the different economic aspects that are prevailing in the floor cleaning detergent market.

Foreign Investment In Brazil :: essays research papers

INTRODUCTION   Ã‚  Ã‚  Ã‚  Ã‚  Ã¢â‚¬Å"For those who believed that Brazil would forever be the country of the future, I have a piece of bad news. The future has finally arrived.† For years, the largest and most industrialized nation in Latin America has been known as the country of tomorrow. That slogan may soon be out of date. Under the guidance of former finance minister and current president, Fernando Henrique Cardoso, this tenth largest economy in the world, once known for its high tariffs and even higher inflation, has entered a period of steady growth, the fruit of a newly-stable political and commercial environment. In combination with the upturn in its economy, Brazil’s demonstrated preference for foreign products and strong direct investment presence bode well for expanded sales of equipment and services in future years. EMERGING SECTORS   Ã‚  Ã‚  Ã‚  Ã‚  Access to Brazilian markets in most sectors is generally favorable, and competition and participation characterize most markets by foreign firms through imports, local production and joint ventures. Many sectors such as healthcare, the environment, transportation, telecommunications and financial services, have been growing at a phenomenal rate and opportunities to further expand trade and investment are highly encouraged. Healthcare Technology   Ã‚  Ã‚  Ã‚  Ã‚  Brazil is an excellent market for U.S. manufacturers of health technology products and services. In the medical device sector, the products that should have the best long-term prospects in Brazil are medical imagining equipment, electro-diagnostic apparatus and technologically advanced disposable medical products. In the pharmaceutical sector, long-term prospects for over-the-counter drugs and vitamins are excellent because of the high cost of private medical assistance and a growing trend towards home treatment. In the healthcare services sector, the best market opportunities include the following areas:  hospital management and consulting services  training for allied health-care personnel  hospital renovation  health maintenance organizations In order to provide more efficient health care, the Brazilian government has begun to reform the country’s entire medical care delivery system. It has decentralized the system, giving more autonomy to the states and cities in the planning and controlling of local health care programs. Overall, improvements in Brazils public healthcare sector, coupled with its trade liberalization measures, should improve the prospects for U.S. technology firms in the Brazilian market. Environmental Technology   Ã‚  Ã‚  Ã‚  Ã‚  The Brazilian market for environmental technology had an estimated value of over $1 billion in 1994. However, the National Department of Sanitation and Environmental Equipment estimates that the total investments needed to equip Brazil with necessary pollution control supplies and services amounts to over $19 billion.

Internet And Culture

Discoveries and innovations in technology have directly and indirectly brought about profound changes in most basic institutions, social groups, worldviews and human values, ethical issues, the character of everyday life, and ways and means of satisfying human needs and international relations in modern society. Yet, the technological element which could be said that has deeply penetrated both the developed and developing nations of the world is the internet, bringing with it changes towards a more fluid flow of different cultures.The accessibility of the internet enables the differences and complexities mongo cultures to be presented to the world and be understood. If long ago, traditions of some ethnic minorities and far-flung societies were unknown, people nowadays could have a glimpse of what is happening at the other side Of the globe. This proliferation Of information and knowledge is one of the benefits of the internet phenomenon since people are no longer ignorant of the intr icacies among cultures.Moreover, biases and prejudice are reduced because people can have the chance to comprehend the rationales behind some traditions and rituals that they might find strange and disturbing. Other than this, the internet also made way for the fusion of cultures as one internet user may acquire the habits, literature, and entertainment of other countries. Transferring of cultures is not actually rare in mankind's history. A civilization adapts to the culture of its predecessor, and a group of people borrows some elements from another race, at the same, combining it with their existing culture.The Romans had done this with the Hellenic culture, and colonized countries gained the influences from their colonial masters while retaining their indigenous culture. Hence, it is not only technological knowledge itself that is being transferred and exchanged in the internet but also cultures, traditions, and ideas. In line with this is the advent of popular culture that seem s to transgress every culture and race in the world. Popular culture is a micro-culture that exists within the spheres of the World Wide Web.It is no question that popular music, movies, fashion and literature are consumed more by the youth than any other age group. The young people appear to agree on what is â€Å"in†, who is to follow and what will be the next â€Å"it† thing. Moreover, Hough culture has long been thought as heterogeneous, encompassing various races and groups, the internet made the world to look like just one big community of people hooked on the wires of social en;irking, files sharing and online gaming.There has indeed emerged a new culture entirely different from the previous cultures created before the invention of the internet. The World Wide is actually a huge community, bigger than any other existing or past communities in human history, which has developed its own culture, language and identities. Only entities would understand what â€Å"1 01† means, how to â€Å"tweet', or what makes Faceable so popular. Furthermore, the internet community acquired a voice that is able to spread information and news so quick that a world leader would resign from just a clamor from the internet users.However, as much as the internet culture has become a good vehicle for change, it has also become a mode for destroying one's life by just one click. No other culture could be as unforgiving and as offensive as the culture in the internet. Internet culture also does not respect privacy and intellectual property. Music and videos are illegally downloaded and private pictures loud be shared to almost anyone.Actions allowed by technology precipitate conflicts in values, yet these values seem to be disregarded on the internet, whatever culture one may belong. Technology, specifically the internet, has contributed largely not only to the shaping of the world in which we live but also to the modification, creation and transfer of culture s. Its influences and impacts are all pervasive. Therefore, the intimacy with and the dependence on this technology in our lifestyles and culture are expected to become stronger in the future.

Revenge Tragedy: Hamlet Essay

For a play to be considered a revenge tragedy, revenge has to be a prevalent theme throughout. Revenge needs to be intertwined in character interactions, and have a strong hold on the driving force of the plot. The desires of Hamlet, Laertes, and young Fortinbras each exhibit how the plot of Hamlet, by William Shakespeare revolves entirely around theories of revenge. The theme of revenge starts off very early in the play, when Hamlet speaks with the ghost of his deceased father. When the ghost tells Hamlet how Claudius murdered him, Hamlet is infuriated and overtaken with feelings of responsibility to right the wrong that has been done; to murder Claudius. The effects of this experience on Hamlet are portrayed clearly in the following quote, â€Å"And so I am revenged. That would be scanned: A villain kills my father, and for that, I, his sole son, d this same villain send to heaven;† (p. 161, 3.4). This quote clearly exemplifies Hamlets feeling toward this event. Being his fa thers only son, he feels completely responsible for his fathers vengeance. Revenge has caused the downfall of many a person. Its consuming nature causes one to act recklessly through anger rather than reason. Revenge is an emotion easily rationalized; one turn deserves another. However, this is a very dangerous theory to live by. Throughout Hamlet, revenge is a dominant theme. Fortinbras, Laertes, and Hamlet all seek to avenge the deaths of their fathers. But in so doing, all three rely more on emotion than thought, and take a very big gamble, a gamble which eventually leads to the downfall and death of all but one of them. King Fortinbras was slain by King Hamlet in a sword battle. This entitled King Hamlet to the land that was possessed by Fortinbras because it was written in a seal’d compact. â€Å"†¦our valiant Hamlet-for so this side of our known world esteem’d him-did slay this Fortinbras.† Young Fortinbras was enraged by his father’s murder and sought revenge against Denmark. He wanted to reclaim the land that had been lost to Denmark when his father was†Ã¢â‚¬ ¦Now sir, young Fortinbras†¦as it doth well appear unto our state-†¦Ã¢â‚¬ ¦. †¦ †¦to exact revenge for his father’s death. Revenge can be an invaluable tool to amass success and wealth, or it can be a fatal flaw that guarantees immanent death. It is a dangerous emotion, which can easily consume, however it can be used to great satisfaction. Perhaps it is these qualities that lead us to allow ourselves to act on its impulses. The lessons learned by both Hamlet and Laertes are something that should be remembered. Revenge is not to be taken lightly. When acted on this is one emotion that can definitely come back to haunt you.