• By building economies of scale so that it can lower the fixed cost per unit. • Building capacities and spending money on research and development. New entrants are less likely to enter a dynamic industry where the established players such as Twitter, Inc. keep defining the standards regularly. It significantly reduces the window of extraordinary profits for the new firms thus discourage new players in the industry. Bargaining Power of
Sure, it may cost a little more than some other motorcycle helmets on the market, but for your money you get an almost unrivalled combination of comfort and protection, not to mention durability. The ¾ protection might turn a few people off, but it is nothing that can’t be sorted with a good pair of goggles. The Bell Rogue looks almost like a throwback to the early days of biking, which is ironic because, if you ask me, it is the future of motorcycle
Businesses deliberately condition and convince the American people to want to be someone else, to want more, to want different by any means necessary and sell their product. Consumer trends determine entertainment, advertising, fashion and every form of business available today. Today’s consumers are more highly educated than previous generations, if that’s the case then how do companies go about expanding their reach and growing exponentially? Why can’t a good amount of consumers cry out for change in destructive production methods and company responsibility and ethics? In 2007 Annie Leonard explores the material economy in the video, Story of Stuff, requiring more than asking how the world became the pit it is, it focuses on real solutions to the way the material economy operates from extraction to disposal.
While vehicles are getting safer overall, these cars are getting more expensive to repair; this costs the insurance companies more money. Another reason that insurance rates haven’t dropped is there are more people on the road due to the progressive economy which increases the likelihood of accidents as a whole. In a sense, the advancements in technology have given rise to morale hazards. If you are aware that your vehicle will stop for you when traffic flow slows down, you may be prone to text your
It notes that stiff competition can reduce the potential profit of like companies. Firms must determine the strategy that will be utilized to gain and maintain the upper hand in the industry, as it relates to price, marketing, competition and the introduction of new and innovative products into the market. The more a company senses competition the intensity of its strategy may increase as it does not only respond to other firms, but also to the industry as a whole. It is natural for firms to respond to competitive moves made by its rival as it will have an effect albeit positive or negative on the industry. Firms may be forced to supply the demands for cheaper but more reliable products or to create differentiated products to maintain the competitive
DISADVANTAGES Long term financial development puts an awful effect on the inhabitants of any nation. Long term economic developments may be identified with expansion, as inflations may increase. Inflations usually increase the cost of products on sale, and as the costs are higher, it will be an issue to the nationality in question to be able to buy their needs There is a limited amount of time involved in the growth of an economy as it involves an increase in GDP. The hypothesis and practice are both diverse. The hypothesis is the thing that economists are able to figure out for themselves; however, to be able to use the hypothesis in reality is the main task.
This curve became widely used by policymakers to control unemployment and inflation by manipulating the opposite variable. Acknowledging the inverse relationship between inflation and unemployment shown in the Phillips Curve, Phelps agreed that inflation depends on unemployment and vice-versa, but he challenged the curve's theoretical foundation and argued that the government should not use the curve as a basis for policy. He noted that when the government attempts to lower unemployment below its natural rate through expansionary monetary or fiscal policy, demand increases and firms respond by raising prices faster than anticipated by workers. With higher prices, firms receive a higher revenue and are able to hire more workers. When workers see that their wages have risen, they supply more labor, leading to a lower unemployment rate.
Hence, the firm is a price maker and changes prices quite frequently to maximize profits. In spite of that, barriers to entry in an oligopoly market are high. The prime barriers are economies of scale, access to costly and sophisticated technology, patents and tactical measures by existing dominating firms devised to hinder new firms from entering the market. In addition, other sources of barriers include government regulation favoring incumbent firms making it difficult for nascent firms to
The economic logic behind protectionist immigration agendas is that an increased population increases the labor supply and stops there. In this scenario, the equilibrium wage rate of labor supply and labor demand would be lower than the pre-immigration equilibrium wage rate, and the logic holds. Instead, separating scenario from real-world application would present previously unaccounted for effects. Being so, what actually occurs is as follows. As before, as the population increases with immigration, the labor supply would also increase, but the increased population would also lead to increased consumer spending and demand (i.e.
This upward pressure may be positive for workers initially, but wages have a direct impact on the profitability and competiveness of business, especially in the global economy. Batalova and Lowell (2007), stated to meet the demands of the global economy internationally oriented business depend on a workforce that is highly skilled. In the face of a shrinking workforce, business turn to immigration to satisfy their demand for these highly skilled workers. This places additional demand on these highly skilled workers from less economically developed