Basically, business owners should be aware that they can take advantage to increase the market prices of their goods and services in case demand exceeds supply. On the other hand, business owners should lower down the…
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With this in mind, business owners need to know that having a pure monopoly right in the market means that price elasticity is not present (Mankiw).
When the business owner has a monopolistic right over his business, the business owner has the advantage to increase the market price of goods and services they are selling (Blinder, Baumol and Gale: 212; Binger and Hoffman: 391). However, monopoly is often characterized by a demand curve that is slowing downwards (Mankiw). Therefore, for a monopolistic company to increase its sales, the business owner should still decrease the market price of goods and services up to such point wherein the company’s target market is willing to spend. In case of perfect competition, the business owners are being challenged to keep the market prices of their goods and services more affordable (Mankiw: 313).
Macroeconomic theories are important to business owners as it gives them a better insight and understanding about the external factors that may occur in international markets which may eventually affect the domestic market. Aside from discussing aggregate demand and aggregate supply (Dornbusch, Fischer and Startz: 79), macroeconomics is not limited in examining a country’s import and export but also other economic concepts related to trade balance, capital inflows and outflows, trade balance, and foreign investment among others. Since we are in the era of globalization, macroeconomic theories help business owners who are into import and export make important business
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Therefore, if the price of the shirt is 220 francs, the price of the shirt in dollars is calculated as follows. 1 dollar = 5.5 francs Dollar price of shirt = 220 francs Using the principle of cross-multiplication, Price of shirt in dollars = (220 francs x 1dollar)/5.5 francs = 40 dollars Question two Supposing that a Frenchman wants to import a new Chrysler Neon costing 14,300 dollars and the prevailing exchange rate is 5.5 francs/dollar, the franc price of the car can be determined.
There are certain ratios that are more appropriate for analysis of large corporations and others that can be used to analyze small businesses. Three ratios that are appropriate for analyzing the financial statements of a small business are the net margin, current ratio, and inventory turnover.
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The international experiences of the group can be utilized to make in-roads into the multinational corporations that are already using the company's products for global operations.
The company should concentrate on development of cordless tools and market them using its effective advertising strategy.
However, you do not have any background in business management. The only other downside I see is your lack of personal assets.
To overcome your weaknesses, you have several options. There really is not much
wealth during twentieth century has been created by new businesses since 1980.Due to opposing views of management theorists, the association and differences between entrepreneurship and creation of new business is far from clear. This essay will discuss what