Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Global Economics - Essay Example

Comments (0) Cite this document
This essay focuses on two major concepts of the Global Economics - Inflation and Economies of Scale. Inflation is the rise in the general price levels of commodities in an economy when Economies of scale refer to cost benefits realized through long run expansion of the scale of production…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.7% of users find it useful
Global Economics
Read Text Preview

Extract of sample "Global Economics"

Download file to see previous pages This paper talks about two big concepts of the global economics which are Inflation and Economy of Scales. There are various reasons which may lead to increase in costs.
The first reason includes the rising costs of imported raw materials possibly caused by inflation in nations that heavily rely on exports of these products. Also, a fall in value of a country’s currency in the foreign exchange markets increases the price of imported inputs of that country. The second is the rising costs of labor; this is caused by an increase in wages which exceed and enhancement in productivity. Labor intensive firms are largely affected by this cause. Firms may not be able to absorb higher wage expenditures; thus, they pass the costs to customers. As a result, the wage inflation increases the price inflation.
Thirdly, the imposition of higher indirect taxes by the government. An example is the increase in the excise duty rate, VAT, standard rate or fuel duties. These taxes are charged on manufacturers who, depending on the supply for their commodities and price elasticity of demand, may decide to pass on the tax burden onto consumers.
In marketing economies of scale, a bigger firm may spread its marketing and advertising budget over a great output. It may also buy its raw materials in bulk at discounted prices. In financial economies of scale, financial markets frequently consider bigger firms to be more creditworthy than smaller firms. This enables these firms to access credit facilities at favorable rates.

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
(“Global Economics Essay Example | Topics and Well Written Essays - 1000 words - 2”, n.d.)
Global Economics Essay Example | Topics and Well Written Essays - 1000 words - 2. Retrieved from
(Global Economics Essay Example | Topics and Well Written Essays - 1000 Words - 2)
Global Economics Essay Example | Topics and Well Written Essays - 1000 Words - 2.
“Global Economics Essay Example | Topics and Well Written Essays - 1000 Words - 2”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document



...? Economics for Global Business Table of Contents Gauging the Success of the Irish Government and the European Central Bank With Regard to Their Running of the Irish Economy Over the Past Two Years 3 References 9 Gauging the Success of the Irish Government and the European Central Bank With Regard to Their Running of the Irish Economy Over the Past Two Years There are various indicators that point to mixed assessments of the Irish government and the European Central Bank as far as their handling of the Irish economy over the past two years. First there is merit in surveying just how the economy is faring and has fared over that period of time. In an index for 2012 relating to economic freedom, the Irish economy has been rated well, at 9th...
5 Pages (1250 words) Essay

Global Economics

The recent fascination appears to have been inspired by their success in dealing with hyperinflation in several countries such as Argentina and Bulgaria. Argentina did in fact abandon its currency board sometimes back in 2002 after it experienced one of it's worst recession. Lithuania and Estonia also turned to currency boards to obtain credibility for their newly established countries. The renewed appetite for fixed exchange rate regime justifies a closer look at ideal conditions for their establishment, with particular interest to the Argentina's experience.
A currency board combines three aspects; one, the exchange rate is fixed to an anchor currency. Secondly, there must be automatic convertibility- it should be always po...
3 Pages (750 words) Essay

Global Economics: Trade, Cost and Pricing

...Global Economics: Trade, Cost and Pricing The US tobacco Companies will subsidize farmers so as to get cheap supply of raw materials from these countries. This is also evident in that in developing countries labour intensive forms of production are cheap. In this developing countries labour is cheap, therefore developed countries prefer to get their raw materials whose production is labour intensive from the developing countries. Therefore, the US tobacco companies will subsidize tobacco farmers in developing countries in order to tap the comparative advantage. David Ricardo came up with the theory of comparative advantage that can be defined as the ability of a country to produce a specific good at a lower opportunity cost than its...
2 Pages (500 words) Essay

Global Economics

... developing countries to the universal path of free trade and private property as the motivator of economic life. (Shahin & Dibeh, p. 111) The end result is that the benefits of Western capitalism were transmitted with the opening of these economies. As we have learned, globalization and all the terms that come with it encouraged the integration of the global market, the increase in capital dynamism as well as the growth in production output. Indeed, there is a wealth of literature criticizing the IMF and its failures but we cannot really downplay its importance in the world economic stage. I would like to endorse a school of thought, which seeks to curb the IMF’s power in order to balance its excesses with its significance in the world...
2 Pages (500 words) Essay

World Trade - Global Economics in the 21st Century

...World Trade: Global Economics in the 21st Century Globalization has brought more nations together to engage in trade and commerce, the most universalof all activities. In the arena of world trade, some countries have flourished, while others have been left to develop on their own. Trade agreements with Mexico, that lead to the construction of factories that built televisions in the 1990s, have been idled as manufacturers moved to cheaper markets as the communications and infrastructure were improved in developing nations. Developing nations have been utilized for their cheap labor as multi-national corporations seek to maximize profits. In the United States, trade deficits with China have soared as American products are unable to compete...
5 Pages (1250 words) Essay

The Development of the New Media Economics under influence of global economics crises

...Global recession: Resistant New Media Economics (Research Proposal) Faculty ment of Research Problem Global economic crisis have hit almost all the sectors of world economy, in such scenario whether media industry across the world is able to sustain through new media economic activities. Research Question Following are the research questions for the proposed research: How media industry is affected or unaffected with global recession when it has hit all the economic activities and sectors of the world economy? Global economic recession has influenced the job markets and different economic sectors. It has influenced the production and consumption patterns for different markets and different economies. It raises a question on how it would...
4 Pages (1000 words) Research Proposal

Global Economics and the Energy Policies in the US

...Economics Inserts His/Her Inserts Grade Inserts 15th November, Overview The global economy has undergone hard times in recent times and the United States of America has not been spared. However, good news is coming out of the region after it was recently discovered that the country could become the largest oil producer by the year 2020. This is optimistic news as seen by a recent article titled, ‘Saudi America’, where oil production in the US was discussed. Oil and gas production in the US has been on the increase and this has been attributed to the technological development and funding through private capital. The use of horizontal drilling and fracking has helped the US produce energy from shale deposits that were once considered...
2 Pages (500 words) Essay

3 global economics online reasarch questions

...1. The World Bank is a development bank which provides financial and technical assistance to developing countries around the world. It coordinates with the governments, multilateral institutions, banks, and investors of developing countries throughout the world with the aim to eradicate poverty and facilitate development there. It offers financial assistance in the form of low-interest loans, interest-free credits, grants, and through trust fund partnerships with bilateral and multilateral donors to fund areas such as education, health, infrastructure, private sector development, agriculture, and environmental management. It offers technical and knowledge assistance through policy analysis and research. 2. Three of the MDGs... The World Bank ...
1 Pages (250 words) Assignment

Influence of Global Economics at Micro and Macro Levels

...Global Economics on International Trade Free trade theory and the protectionist theory Back in the 1840s, Britain having innovated the industrial revolution and acquired absolute cost advantages, decided that policies of free, not protection, would better serve national interests. This is because Britain enjoyed broad industrial supremacy, and hence there was no longer the need to protect the economy from foreign manufacturing, but to rather open more global markets for expanding British industrial production. This was much of the beginnings of the practice of free trade where Adam Smith was widely credited with pioneering economic trade in support of the free trade, as well as his documentation of free trade policies (Lovett, Brinkman...
9 Pages (2250 words) Assignment

Global economics

...Question Economic globalization supports the process of outsourcing on the global market and makes it more beneficial for the company who outsource in the developing world. Primarily, the company earns cost advantage in both raw material and labor. Moving operations in the developing countries such as China and India, will provide their specialized pool of the work force at cost effective prices, and contribute in enhancing the productivity of the company. Also, the efficient use of time zone differences makes the company earn greater profits. Outsourcing also facilitates the quick deliveries of the work and save precious time. Company obtains specialized services at low cost, which gives a competitive edge, and sufficient time to focus...
2 Pages (500 words) Research Paper

Global Culture on Fast Track

Lifestyles are changing fast to invite international practices. Youths in large numbers are instrumental to change to live in a free environment. They are resisting ‘no change’ attitude and fighting for the new environment where they can express freely what think right to make a modern culture. The change is undergoing automatically and being accepted by most of the resistant quarters.

Globalization does not create a common culture, values, attitude or beliefs as mentioned above. It gives way to a single arena in which people of different cultures interact and present their values for comparisons, analysis, acceptance or rejection on certain standard yardsticks. This is the internationalist version of global...
6 Pages (1500 words) Essay

The Importance of Employee Empowerment in the Global World

Empowerment is the authority to make decisions within one’s area of operation without having to get approval; from anyone else. Here the operatives are encouraged to use their initiative to do things the way they like. To this end, the employees are given not just authority but resources as well so that they not only take decisions but implement them quickly. This empowerment means giving the employees the authority to make decisions and providing them with financial resources to implement these decisions (Koch & Godden, 1997 11).
Employee participation and empowerment participation means sharing the decision making power with the lower ranks of an organization in an appropriate manner (Lashley & McGoldrick, 199...
9 Pages (2250 words) Assignment

Global Challenges for Business Management and Leadership

This section aims at understanding the challenges faced by the United Nations due to political conflicts. In the summer of 2007, an issue in the Politically Speaking, the DPA had highlighted the increased focus on the conflict meditation. This report had also highlighted the interview with the Under-Secretary-General for political affairs. In the interview, he defended the UN against all the criticism and he also highlighted the need for finding political solutions for issues around the world. The interview also highlighted the importance of results to show the effective working of the UN. This interview also highlighted and urged critics to look at the positive along with the negatives of the UN. “The UN has knowledgeable a...
7 Pages (1750 words) Research Proposal

Marketing on a Global Scale

The evaluation of production, including techniques, material selection, and inventories, must be based on a cold look at market potential, for management faces the decision of making a considerable investment.
By assessing new or modified products that can be added by acquisition and internal development, product development becomes the lifeblood of global business. Decisions in the global area determine the products to be produced and stocked, as well as details concerning their appearance, form, size, package, quantities, the timing of production, price lines, and anticipated market segments. Product development on the global scale combines the scientists function of analyzing, classifying, and organizing information into c...
9 Pages (2250 words) Research Paper

Global Strategy for Crappy Shades

The company increased its workforce from 150 to 450 workers. The increased personnel was necessary to cater to a wider market but it also brought with it a variety of other problems like increased input cost and problem in labor management. Crappy shades are suffering from high costs which is clear from the financial data which says that out of a revenue of 35 million pounds a profit of 2.5 million pounds generated. The Net profit ratio is 7% which is far below the industry standard and does not maximize the value of shareholders. It is clear that the company is suffering from high direct costs, as the marketing activities comprise only 15% of the total sales. The company was also affected by the global economic downturn as well a...
7 Pages (1750 words) Case Study

Global Employee Information and Consultation: Replicating the European Model

A significant step to enhancing the employees’ right to information and consultation is the establishment of the European Works Council (EWC). The EWC Directive (94/45/EC) aims to improve cooperation in transnational companies and to allow trade unions to influence, at least indirectly, the decision-making of corporations (Lockwood and Williams). It requires community-scale undertakings and community-scale groups of undertaking to create this mechanism for regular consultation of the workforce. A ‘community-scale undertaking’ is one with at least 1,000 employees within the Member States and at least 150 employees in each of at least two Member States (Lewis and Sargeant).

An EWC is a forum that would a...
9 Pages (2250 words) Coursework

Introductory Economics and Finance: Why Governments Regulate Firms and Markets

By government regulation, it is meant by the rules administered by a government or government agency to influence any economic activity which determines the price, types, and standards of products, and most importantly the conditions under which the entry and exit of the firms are possible.

Like death, it is impossible to keep away from regulation in about every aspect of daily life. The business regulation may be classified into two- economic and social (Litan). The economic regulation deals with price controls and the entry limits of the firms into markets. The second type regulation mostly deals with externalities (the outside influences of the company or firm which may or may not be decided by them)

6 Pages (1500 words) Assignment

How Developing Economies Are Impacted by the Global Financial Crisis

The global financial crisis which started from the United States emerged
because of the diversified risk, in which the supply of capital to real economies is reduced as a result of freezing up of capital markets and the collapse of financial institutions.
Before coming to the current financial global crisis, knowing how a crisis occurs is also important. An economic crisis is simply known as the decline in economic activity for a few months in an economy. The typical measure which shows the decline in the activity of the economy is the decline in Gross Domestic Product or a negative real economic growth rate. When a recession remains for a longer period, it is known as economic depressio...
20 Pages (5000 words) Research Proposal

Can One Size Fit All When It Comes to Global Accounting Standards

The practice of reporting accounting techniques and a company’s accounts has therefore to be the most homogeneous for a series of reasons, but mostly to facilitate and improve the transparency of markets. These are two main issues in what relates the international financial reporting practices: the homogeneity of these practices and the key actors to which this convergence matters most; the international users of accounting reports. One can argue that the more transparent and homogeneous these international reporting systems are, the more transparent markets become and the process of investment internationally is eased.

Despite the necessity of a highly integrated and converged international reporting system, it s...
15 Pages (3750 words) Research Proposal

Economics: Public Utilities

The degree of capital intensity simply put is the ratio of the total money value of the equipment as compared to the total production output potential. Generally, capital intensive industries give a very high rate of return which in turn generates very high profits. The higher rate of return and profits leads to very high re-investment into these industries. The benefit of higher capital investment is that the industry can equip itself with better and more hi-tech equipment and essential tools and this use of advanced technology, in turn, leads to higher productivity. These industries possess the power to generate much higher profits which leads to a higher standard of living.

On the other hand capital, intensive indust...
7 Pages (1750 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Global Economics for FREE!

Contact Us