This article follows on from the previous gains from trade article. People consume goods produced domestically and overseas. Interdependence and trade mean more goods and services are available in increased variety. Differences in costs determines the value of trade. Production costs -> absolute advantage. The producer that requires a smaller quantity of inputs to produce … Continue reading Microeconomics – Comparative & Absolute Advantage
Consider your typical morning… Your bed sheets are made from cotton grown in India and woven in Madeira, your alarm clock was made in China. You pour a glass of orange juice that was made from oranges grown in Spain, the year-round demand for fruits and vegetables are made possible through trade. You watch the … Continue reading Microeconomics – Interdependence & Gains from Trade
♥♥ Customer Satisfaction & Customer Value $$ Marketing is the delivery of customer value at a profit, as trade creates wealth. Exchange is a process by which both parties benefit (company & customers). To distinguish between customer satisfaction and customer value, the concepts of needs, wants and demands are covered, along with the product that has … Continue reading Marketing Creates Customer Value
A textbook definition of macroeconomics says that “[it] is the study of the economy as a whole, including growth in incomes, changes in prices, and the rate of unemployment.” (Mankiw, 2010) Extending over global, regional and national economies. Economists advise on policies for the government regarding important economic indicators. Macroeconomics though can often cause mistakes … Continue reading What is Macroeconomics?
Even though India is a growing export economy, India is held back by the destructive government regulation that eliminated the rule of law. “China and India clearly stand out as the two largest middle-income countries of origin”. (WIPO, Cornell University, & INSEAD, 2014) Encouraging areas of opportunity associate around India’s growing middle class, promoting the … Continue reading Property Rights & Political Stability – India
The Economic Organization of a P.O.W Camp by R. A. Radford in 1945 describes the economy confined within the German prisoner of war camps. “An unusual form of commodity money developed [were cigarettes] in some Nazi prisoner of war (POW) camps during World War II.” (Mankiw, 2010) Commodity money has intrinsic value, in particular cigarettes … Continue reading Commodity Money – P.O.W Camp