Transnational companies Essay Example for Free

Transnational companies Essay Country H could concentrate completely on production of good X or of good Y, X = f(L + K) Y = g(L + K) but by doing so they would be using resources in production of one good that might be better used in production of the other. Therefore the production possibility frontier is concave. Note also that because country H is well endowed with capital, it can produce more of capital-intensive good Y than labour intensive good X, hence the bias in the curve towards production of Y. Because competitive firms wish to maximise profits, we can assume they will produce at some point along this PPF. The utility maximising consumers decide where. An important assumption made by economists in many trade models is that of community indifference curves (CIC). We can take an aggregate of all individual indifference curves to make a set of CIC. As long as trade is not allowed, production will take place at wherever the PPF is tangent to the CIC that is furthest from the origin. This is our autarkic point. One final point to make is that at this point the price ratio is equal to the slope of the PPF or the marginal rate of transformation (MRT). Mathematically, p = px/py = MRT =Â  Y/? X (where px and py equal the respective prices of X and Y). Thus for given production functions and community preferences in autarky country H will produce and consume at Ah. Similarly with opposite factor endowments but facing the same production functions and community preferences, country F will produce and consume at Af. Allowing free trade means that producers face a new international price ratio as a result of the equalisation of prices. They now have an incentive to produce more of what they can export because the can receive a higher price for it. The Heckscher-Ohlin theorem states that a country will export the good which intensively uses its relatively abundant factor. (Markusen et al 1995, p. 106). So in country H, the price of good Y will rise while that of good X falls, causing consumers to prefer good X. Producers of X however see higher profits can be made by producing good Y and because factors are intersectorally mobile, they can do so. The resulting surplus of Y can be exported at the international price level. Finally, consumption will occur where the international price ratio is tangent to the CIC furthest from the origin. Another consequence of free trade is the equalisation of factor returns. This is the consequence that labour unions in the developed world are concerned about. In our example, country H (we shall now assume to be the U. S. ) experiences an increase in the price of capital-intensive good Y (which might be aeroplanes) and a decrease in price of labour-intensive good X (for example textiles). The important consequence of different factor endowments in the two countries is that the resulting price ratios of goods X and Y are different. Therefore in country H, capital-intensive good Y is relatively cheap and labour-intensive good X is relatively expensive with the opposite being true in country F. Lowering the barriers to trade gives consumers in H access to the markets in country F, where they can buy the labour intensive good X more cheaply. Similarly, consumers in country F can buy good Y cheaply if they import it from country H. Producers in each country are then forced to adjust production to suit the new patterns of demand In questioning globalisation, Hirst and Thompson (1995) investigate the flows of capital around the world and show They suggest that negative consequences of this may include a reduction in the power of governments to control their own affairs. Although this is an important issue, worry from the perspective of an economist is the extreme pursuit of economic development with no consideration of health or ecological issues There are those who assert that globalisation is desirable and use economic theory to show that all countries concerned can benefit from an increase in trade. Alternatively there are those who question whether globalisation is really happening and conclude that there are not as yet trans-national companies who Julius (1990) and Ohmae (1990) claim that numerous TNCs within the developed world go wherever investors see a return on their investments. So during the 1980s a smart TNC would initiate operations in the emerging markets of Korea, Taiwan and Hong Kong. When confidence was broken in the 1990s it would withdraw its assets from East Asia and head for safer shores to take advantage of the new economy in the U. S. This leads many to think that by examining capital flows one can identify transnational companies.

Market Segmentation, Positioning and targeting for BMW :: Business and Management Studies

Market Segmentation, Positioning and targeting for BMW 1.1 Introduction This report aims to examine the market segmentation, positioning and targeting of BMW (automobile company). BMW will be examined giving information about the company and where it is now and any recommendations that we feel are appropriate. 1.2 BMW Company Profile BMW was formed in 1917, from the merger of two small aero engine makers. Their famous blue and white symbol stems from the colours of the Bavarian Luftwaffe and is said to resemble the view of the one of their plane through a propeller. BMW is renowned for its sporty, sophisticated & luxury image which has been built up since the 1970's with many motor sport victories ranging from Touring Car to Formula 1. BMW Group's worldwide mission statement is: "To be the most successful premium manufacturer in the industry."[1] 1.3 BMW's Marketing Mix To examine BMW we must first look at the marketing mix. A company's marketing mix is made up of four main points these are Price, Product, Promotion and Place. Through these points we can examine the specifics of a company to gain an insight into their segmentation, targeting and positioning. 1.4 Product The products produced by BMW are prestigious, high performance, technologically advanced automobiles. These start from mid-range cars up to the most prestigious and luxurious. The present models are: BMW 3 Series - Saloon, Coupe, Convertible, Touring, Compact ----------------------------------------------------------- BMW 5 Series - Saloon, Touring BMW 7 Series – Saloon BMW Z3 - Roadster BMW Z4 - Roadster BMW Z8 - Roadster BMW X5 - 4WD BMW M - M5, M3 Coupe, M3 Convertible, M Roadster, M Coupe Mini Cooper - an independent brand within the BMW Group[2] 1.5 Price BMW price ranges are from $17,000 to $80,000. There are many options that affect their car prices such as engine size, equipment levels and motor sport versions. This means you can purchase a base model (which is the cheapest) and then add options which may cost as much as ?20,000 more per car. Examples of price: Model ----- Lowest Price. Highest Price cc: BMW 3 Series ?16,265 ?32,870 BMW 5 Series. ?23,540 ?42,010 BMW 7 Series ?52,750e ce. ?60,000 BMW Z3 ?

Generally Accepted Accounting Principles Essay

Although dropping slightly the second year they have managed to improve this in their third year increasing their overall profitability Safety Styles has also increased both its Return on Assets and Return on Equity, this demonstrates the ability of the company to efficiently make use of its assets and equity which ultimately reduces requirements for more funding and reduces cost making better use of what they currently have. Efficiency: Safety Styles Pty Ltd appears on average over the last three years to be improving its efficiency to make better use of their assets and turning over their inventory. Safety should also focus on this area and strive to improve their efficiency. Whilst the values may seem quiet higher their total sales amount has raised which may not be taken into account with averages. Safety Styles may need to revisit their inventory strategy as their turn over period is quite high; this would be a benefit for them in the long term by having quicker access to cash for investment in other assets. They should also pay attention to their Accounts Receivable Turnover and aim to reduce this. Liquidity: Whilst Safety Styles Current ratio and Quick asset ratio is declined they are both still very healthy numbers. Safety Styles non-current assets have been increasing annually. They may want to pay attention to reducing their inventory levels and accounts receivable to give them more cash and the opportunity to invest into non-current assets or reduce their liabilities as they currently has a low level of cash compared to inventory and accounts receivable. This will make the company more â€Å"liquid† in the short term. Safety Styles also has a very healthy quick asset ratio compared to the industry standard of 2. It should be noted that Safety Styles currently do not have a high level of liabilities and seem to be maintaining their levels of dent in relation to their assets Capital Structure: Safety Styles currently have a very low gearing ratio and are using retained earnings for most of their financing. External sources of financing will be a benefit to Safety Styles to help them grow and invest in additional non-current assets.

20 Ethical Argument Essay Topics for an Aspiring Student

Aspiring students who want to make an impression on their professors should choose their ideas for an argumentative essay carefully. If you want to make an impression and stand out from your colleagues, you might want to find a topic that’s both ethical and attention-grabbing. Make sure to adhere to the guidelines provided by your teachers before getting started. In the meantime, we’ve prepared a list with 20 ethical argument essay topics that might pique your interest. Potential Causes of Breast Cancer from Soaps and Deodorants Adopting a Child of a Different Ethnicity Pros and Cons of Vitamin Supplements and Whether They Do More Harm than Good to the Health The Potential Consequences of Plastic Surgery in the Long Term Human Cloning – A Far-Fetched Idea or Just a Genetic Disaster? Adopting the Death Penalty in All the States Around the US Should Teens Consider Abortion without Their Parents’ Approval? Reasons for Parents to Choose Homeschooling and Not Public Schooling for their Kids To Vote or Not to Vote on Election Day: Can Your Vote Make a Difference? Driving an Electric Car Can Help Save the Planet Social Media and Its Effects on Human Perception Bullying in Schools and the Effects of Bullying on a Child’s Personality Social Media and Its Effects on Human Socialization Reading Paper Books vs. Reading eBooks Combating Music Piracy: Can We Put an End to Music Piracy and Compel People to Buy Rather than â€Å"Steal†? The Benefits of Eating Organic Food Reasons Why Going Bio Is Healthier Advanced Car Technologies Can Completely Change the Way People Drive Their Cars How Global Warming Is Affecting the World’s Fauna and Flora Alzheimer’s Potential Treatment that Might Prevent the Materialization of the Disease Reasons Why Fad Diets Don’t Work What Can You Do to Lose Weight the Healthy Way There are hundreds of other topics you can pick for your college essay; however this depends on the subject assigned by your teacher. The 20 ethical argument essay topics mentioned above should serve you as inspiration! Choose the one that appeals to you most and make an impression on your professors with the coolest argumentative paper!