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10) it is the case that Starbucks was founded in the 1970’s in Seattle with just a single store which operated as an independent coffee retailer, wholesaler, and vendor. The company kept a focus on regular American style coffee. It was not until the 1982 that Howard Schultz joined the company and introduced specialty coffees (Cappuccino, mocha etc) after a trip to Milan. With this business model in place the company began a massive expansion across the United States and internationally however it is important to not that the company kept this success without resorting to franchising their business model. A Starbucks location is still centrally run from corporate.
In regards to how the company is affected by Federal tax policy presents a tricky distinction for the company. Firstly it is the case that the company is truly global, with operations located across the entire globe and supplied by a vertically integrated supply and distribution network, it becomes difficult to place specifically how each federal tax policy affects the company in each country that it operates. In the American context it is the case that the company is most definitely affected by Federal tax policy. According to Warnka (2009) it is the case that the tax measure 67 which affect businesses with operations in Oregon. Measure 67 places an additional tax rate amounting to 1/10 of 1% with a cap of $100,000. What this could translate to is a disproportionately higher tax increase on small businesses but a larger corporation such as Starbucks sees a negligible increase in their tax rate which ultimately would be capped at the $100,000 mark, whereas their smaller, independent competitors are likely to see this affect their bottom line. What this translates to is a clear policy that ultimately has a negative effect on the bottom line of Starbucks however will ultimately negatively affect their smaller competitors more significantly. In regards to upcoming plans for the company, according to a 2008
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However, there is a line drawn somewhere to the length to which GDP can be measured as an indicator for the well being of a nation or the kind of happiness that is contained within the nation. The reasons for the same have been discussed in the paper to great length, the ultimate answer to the question being that GDP is not the only key aspect that helps in measuring the welfare or happiness of a nation and that there is more to that.
Economic indicators are the most closely observed parts of news within the investment world. Most important indicators are those that are supposed to modify ahead of alterations in the economy, providing a quick look of what is going to take place earlier than the actual change.
In this era of competition where economic supremacy can impact various other aspects of a given nation, the need of monitoring economic performance has gained a special attention among the nations. In this regard the economists worldwide has suggested various measures amongst which Gross Domestic Product commonly known by its abbreviation of GDP has become the most popular indicator that measures the health of the nation’s economy which in turn impact the standards of living of the nation.
US Unemployment Problem
Over the years, unemployment problem has been an issue not only in the United States economy but also in the entire world. According to the united state bureau of labour statistics, para1, unemployment involves all those people without jobs but have actively looking for a job for the past four months without a success.
The Phillip curve was first coined by William Phillip in 1958, the curve depicts the relationship between inflation and unemployment, according to the Phillips curve unemployment and inflation are inversely related whereby high inflation will result into lower unemployment levels while low inflation results into high unemployment levels, therefore the cost of reducing inflation is unemployment, therefore the curve can be used in decision making whereby policies can be used to increase or reduce inflation in order to adjust unemployment, the following diagram shows the Phillips curve:
One distinguished attribute of the economy is how manufacturers, dealers, and distributors work mutually in strongly-weaved clusters called keiretsu. A second essential aspect has been the assurance of life span employment for a significant segment of the urban labor strength.
Management of corporations focused more on corporate governance and formulation of policies free of government interference. The focus on the traditional industry also changed. China’s economy was traditionally dependent on agriculture, but
High-income countries continue to invent new technology that low-income countries apply when already easy to comprehend. With an already built technology, coming up with innovations to improve the technology is simplified. Low-income countries
The focus in the paper is on the GDP indicator that assists the economists and the policy makers to analyze the impact of the fiscal and monetary policy, economic shocks which include rise in oil prices, the spending plans and tax on the overall economy. It measures the confidence of the government, people and companies.
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