The United States economic Essay Example for Free

The United States economic Essay In trying to rescue the United States economic financial system there is a possibility of the economy to be affect by massive hangovers from the effort of the government to prevent the accumulation of debt. The government instead has found a swift way of stimulating the economy through the financial bailout. The government wishes to take a mountain of accumulated debts due to bad loans caused by financial institution as a result of subprime mortgage lending. The debt is worth $700 billion of money. To have this debt clear under the bailout bill so that the economy can be stimulated to grow, the united government had no other option other than borrowing. For the borrowing to be successful, it had be done when the there is soaring of the federal budget deficit. The deficit for the year 2008 was expected to increase by $407 billion which was double the imbalance for year 2007 worth $161. 5 which indicated a slowdown in the economy. However, as from 2008 up to now, $168 billion programs of economic stimulus are already doing in the books of government. The passed congress legislation gave authority to have the Fannie and Freddie be rescued which resulted into the boosting of national debt. The legislation the administration late authorized the bailout financial system (Bernanke, 2008, 1). The implementation of the financial bailout as an economic stimulus has caused a lot of concern on what long term affects it poses to the United States economy. The issue here is, as the government is borrowing to offset the already existing debt, the debt instead is expanding from time to time. To pay the national debt interest the government is spending not less that $400 billion each year. As the debt increases, the cost of government borrowing also goes up and therefore leading to some of the indented programs in settling that existing debt to be awarded less money. Due to financial crises of the year 2008 the Federal Open Market Committee (FOMC) has eased the stance of the monetary policy. The FOMC has consistently relaxed the monetary policy which has stabilized the prices giving hopes to increase of economic slack and flattering-out of the energy prices. FOMC after the implementation of the monetary policy anticipates the economic strengthening over this quarter as the previous lagged monetary policy action effects, amid improvement of the conditions of financial market has starts to provide extra spending and stabilization of the housing activities. Despite the implementation of the monetary policy in the year 2007 and up to the early 2008 the economic growth slowed sharply. In 2007 the restrain on activities concentrated on the housing sector, where as in year 2008 the other sectors of economy began to experience this. The prices of commodities have remained high for the whole year causing consumer price inflation (Bernanke, 2008, 23). The demand on houses, construction of residential home and prices of homes have fallen sharply in the year 2008. In the first few months of 2008 the delinquency rate continued to go down across all mortgage loans. New subprime mortgage loans has been highly unavailable for that year making the borrowers to experience high risk of credit which had to go for the guarantee programs offered by the government. Due to this, the Federal Reserve with the other stakeholders is now committed to come up with a solution that will prevent the foreclosure of the houses. The Federal Reserve is committed to offer an environment that gives support to goals of the homeownership of giving loans to borrowers who are creditworthy with ideal protection of the consumer and responsible practices of lending. On the issue of consumer spending has been going down for the whole of 2008 which is an indication of restrained influence. The real labor income growth rate has gone down ass the prices of energy and food, and conditions of labor market continue to weaken. This has affected the consumer purchasing power. In addition to this, it has been difficult for consumers to borrow as the standards and the terms have been tightened. This has led to deterioration of the quality of the overall credit of consumer loans (Bernanke, 2008, 30). On the side of business sector, the financial and economic conditions that influence spending of capital have appreciably deteriorated. During the months of 2008 the real outlay for business software and equipments were flat. The inventories have decreases irrespective of sluggish final sales making the firms to act promptly to prevent the imbalances of inventory from arising. The United States corporate profit during the same time was very low. The weakening of corporate profit and tight conditions of credit has resulted to slow down of business investment. Loans of Commercial and Industrial at banks in the firs months of 2008 briskly expanded. In the same period the quality of credit in nonfinancial corporations remained solid. As a result of this banks tightened the standards of credit on commercial loans of real estates. To conclude, the economic stimulus act is approximated to result to rebates worth $115 billion which will be sent to the households by the end of 2009 (Bernanke, 2008, 35). Work cited Bernanke Ben. Monetary Policy Report to the Congress. Washington, D. C. , July 15, 2008, pp. 1-42

Pericles Uplifting Speech -- Cultures Athens Public Speaking Soldiers

Pericles Uplifting Speech Works Cited Not Included To stand in front of thousands; to speak the words aimed at persuading a crowd; to believe, and have them as well, a seemingly just cause - this is what a leader must do. Every era has its trouble, its own conflict, and along with it, its own leader who will do what he can to unite his followers. In 431 BC, Athens was in the midst of a war, and from that war came a speech, said by Pericles, that to this day, remains the model for any leader seeking to persuade his citizens and have them believe and act in favor of their land. Throughout United States' history, various leaders have used the format of his speech in efforts to reach their citizens. Many of the values and personal responsibilities that Pericles spoke of remain important in today's American society. Pericles stood in front of hundreds of Athenians the day he made his speech. He initially felt he was not worthy, that "the worth which had displayed itself in deeds would be sufficiently rewarded by honors also by deeds" (28). However, he spoke that day, discussing first the nation's ancestors, paying homage to the forefather's of Athens. Pericles then moved on to speak of the fallen soldiers of the Peloponnesian War. He paid tribute to them, proclaiming their deaths were both purposeful and appreciated by Athens. Pericles finished by discussing the duties a citizen has to his land. This is the general outline of the "Funeral Speech." "I shall begin with our ancestors: it is both just and proper that they have the honor of the first mention on an occasion like the present" (28). Pericles gave the founding fathers of Athens the honor of being mentioned before all in his speech. He spoke of Athens' fa... ...to motivate his people to take an active role in society. Many of the thoughts and ideas stated in this piece have been used by other leaders throughout the world to stimulate interest within their societies as well. The Ancient Greek society, which Pericles was a part of, has had a large impact in the development of the United States. America's values are very similar to that of the Ancient Greece. They believe that freedom is an essential part of society and that the military can be a proper way to enforce this freedom. However, due to advancements within daily life, Americans are less politically active. Pericles would refer to these Americans as "useless," they obviously would not be rewarded in his society. Despite some differences, many of the values and personal responsibilities possessed in Ancient Greek society are similar to those in the US today.

Product Life Cycle Concept Essay

Michael Porter’s framework of competitive analysis is applicable to our business organization known as D.T.DOBIE TANZANIA LTD which falls under the automobile industry in Tanzania and worldwide in the following ways: A.Barriers to entry/threat of new entrants. It’s true that the average person can’t come along and start selling brand new cars. The emergence of foreign competitors with the capital, required technologies and management skills began to undermine the market share of brand new car sellers. The following factors are barriers to automobile seller’s new entrants: * Knowledge and Technology Ideas and knowledge of servicing its supplied products is the one that provides competitive advantage to D.T Dobie over others. D.T Dobie uses machines of highest technology on checking and servicing its cars in which, gives them power to provide guarantee of up to one year service to its product since they are assured of what they are doing. The machines used by the skilled labor of D.T Dobie to service and check the product are of high quality and they are very expensive in such a way that for new entrants firm in that business its an ownership barrier. * Access to distribution The demand for brand new cars in Tanzania is very low since they are sold at price that individual can’t afford. D.T Dobie is a greater supplier of brand new cars to Tanzania government institution, most United Nations (UN) organizations such as UNICEF, ILO, UNESCO, representative’s offices in Tanzania and embassies offices. Since these agencies are the most buyers of brand new cars, it has made D.T Dobie to have almost the access to distribution channel of selling brand new cars in which this act as barrier to new entrants since the buyers are few. * Cost of entry Initial capital required to set up a new firm is very high, it makes the chances of new entrants to be very less. * Product differentiation and cost advantage The product has to be different and attractive to be accepted by the customers. D.T Dobie is the greater seller of brand new NISSAN, MITSUBISHI, MERCEDES BENZ, HONDA and HYUNDAI in which made them different from its competitor since it sells many brands than others. By being supplier of government cars has made them to be exempted when importing cars for government institution uses. B. Bargaining power of suppliers: The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm, when there are few substitutes. Suppliers may refuse to work with the firm and also may charge excessively high prices for unique resources. For organization of our choice i.e. D.T Dobie its suppliers for motor vehicles are TOYOTA, NISSAN, MITSUBISHI and MERCEDES BENZ. D.T Dobie is the seller of brand new car in Tanzania where by its inputs i.e. imported new cars from great multinational companies are so important for its survival, this leads the suppliers having great power over D.T Dobie since it’s not manufacturer but the buyer of finished product. Increase in production cost to one of suppliers on specified product may lead to switching cost which will be relative to D.T Dobie switching cost. Degree of differentiation of inputs: D.T Dobie supplier’s supply different brands in which is difficult for them to switch from one supplier to another. For example if they are required by its customers i.e. government to supply cars that’s engine capacity is V8 that pushes them to deal with TOYOTA since other suppliers are not producing cars with that engine capacity. For parts suppliers, the life span of an automobile is very important. The longer a car stays operational, the greater the need for replacement parts. On the other hand, new parts are lasting longer, which is great for consumers, but is not such good news for parts makers. C. Bargaining power of customers: Buyers refer to the customers who finally consume the product or the firms who distribute the industry’s product to the final consumers. Bargaining power of buyers refer to the potential of buyers to bargain down the prices charged by the firms in the industry or to increase the firms cost in the industry by demanding better quality and service of product. Since our organization of our choice D.T Dobie supplies and sell brand new cars in Tanzania, its customers are few since who can afford to buy brand new cars are government institution, most united nations (UN) organizations such as UNICEF, ILO, UNESCO, representatives offices in Tanzania, embassies offices and individuals who can afford to do so. Since its customers only want quality and guaranteed products this act as driving force to D.T Dobie to supply not only quality products but also quality parts and servicing those cars for the whole year as guarantee after being sold out. Since D.T Dobie is greater supplier of brand new NISSAN, MITSUBISHI, MERCEDES BENZ etc. cars in Tanzania availability of substitute products such as FORD, RANGE ROVER, LAND ROVER which are supplied by its competitors like CMC motors and sold at same or at lower price than D.T Dobie’s have made some of its customers to shift to those brands as it’s known customers are very sensitive to price. Most of those mentioned above customers purchase in large quantities. They have full information about the product and the market. They emphasize upon quality products. They pose credible threat of backward integration. In this way, they are regarded as a threat. D. Threat of Substitute Products: Substitute products are goods or services from outside a given industry that perform similar or the same functions as a product that the industry produces. Rather than looking at the threat of someone buying a different car, there is also a need to also look at the likelihood of people taking the bus, train or airplane to their destination. When determining the availability of substitute’s time, money invested, personal preferences and convenience in the auto travel industry should be considered. D.T.Dobie should consider the following factors when analyzing this force: * Price Band The threat that consumer will switch to a substitute product if there has been an increase in price of the product or there has been a decrease in price of the substitute product. If the price of the cars sold by D.T.Dobie will increase the main expected customers i.e. the one switching from bike to car will not move to car and will remain in the bike only. Thus the price is kept checked in this manner. * Substitutes performance The performance of the substitute sector also plays an important role in the success of the business. If the price of other dealers such as Africariers increases or the price band of the small segment falls, it will have effect on the quantity required in the market. It’s just on the price but also the features and the other services associated or it may be the status symbol story. * Buyers willingness Products with improving price/performance tradeoffs relative to present industry products. It will determine the willingness of the buyer to buy from D.T.Dobie.The willingness of the customers to go forward to try the new product in the market such as Mercedes Benz reduces the threat from substitute products. E. Competitive Rivalry: This force analyses the level of competition between existing players in the industry. Because an industry’s firms are mutually dependent, actions taken by one company usually invite competitive responses. Thus in many industries firms actively compete against one another. Highly Competitive industries generally earn low returns because the cost of competition is high. The auto industry is considered to be an oligopoly (a market condition in which sellers are so few that actions of any one of them will materially affect price) which helps to minimize the price-based competition. Below are factors which are seen in this force: * Price Competition Advertising battles may increase total industry demand, but may be costly to smaller competitors. Products with similar function limit the prices firms can charge. Price competition often leaves the entire industry worse off.. * Product Quality Increasing consumer warranties or service is very common these days. To maintain low cost, companies consistently has to make manufacturing improvements to keep the business competitive. This requires additional capital expenditure which tends to eat up company’s earning. On the other hand if no one else can provide products/ services the way you do you have a monopoly. D.T.Dobie enjoys the monopoly of selling new cars are there are no competitors in this segment. * Unique Selling Point Also D.T. Dobie has advantage over its rivals because it represents a premium brand which is recognized over the world, they found a niche in the market where have a leading brand like Mercedes-Benzes a and a brand which people aspire to own .Also they are lucky to have Nissan one of the most renowned Japanese brands which is an equal pillar of their business. * Expansion DT Dobie is looking to grow and move forward, both in its native Tanzania and in surroundings regions. By building strong relationships and working closely with strategic partners, DT Dobie’s footprint keeps on growing. Also they are expanding by appointing more dealers around the country. * Investment In terms of investing in our own equipment, this takes priority; they put all eyes on technology so they are not behind the rest of the world. Even if the latest technical advancement s are available to the company, DT Dobie makes sure any investment is benefiting to the organization as a whole .Every five years D.T. Dobie has an equipment review which makes sure the company is on right track, ensures investments have been successful and assesses whether upgrades need to be made in order to reach the next level, they are absolutely up to date. Also ensures that its vehicle testing equipment has modern standards which outnumber it from its rivals. CONCLUSION: In general, any CEO or a strategic business manager is trying to steer his or her business in a direction where the business will develop an edge over rival firms. Michael Porter’s model of Five Forces can be used to better understand the industry context in which the firm operates. Porter’s Five Forces model is a strategy tool that is used to analyze attractiveness of an industry structure. Porter’s Five Forces model views the business from inside and outside. It focuses on assessing competitive position within the industry.

TBS 920 International Business Strategy Nokia India...

Prepared by: Manoj Gulati - 4130157 TBS 920 – International Business Strategy 1 Curriculum and Business Profile †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Company profile Guest country profile Economic, Cultural and Political Analysis Technological Analysis Entering and functional strategies Marketing Strategy of Nokia in India SWOT PESTEL analysis Recommendations References 2 Company profile †¢ Formed in 1865 by mining engineer Fredrik Idestam in a village named Nokia in Southwestern Finland †¢ First business was in wood pulp mill †¢ In 1920, Finnish Rubber Works was acquired by Nokia †¢ 1922, Finnish cable works merged in Nokia and Nokia was know as footwear (galoshes) and tyres, went on to manufacture rubber bands,†¦show more content†¦Ã¢â‚¬Å"India is now Nokias second-largest market, displacing the U.S. and behind only China† Olli-Pekka Kallasvuo, the president and chief executive Nokia in 1996 12 Entering and functional strategies There are various types of strategies to enter a market. †¢ Joint ventures †¢ Franchising †¢ Licensing †¢ Exporting †¢ Foreign Direct Investment †¢ Wholly owned subsidiaries †¢ Turnkey project †¢ Alliances Nokia decided to enter India as FDI and with 100% branch mode stup 13 Marketing Strategy of Nokia in India Product (customization) †¢ In 1998 for republic day , Nokia came out with patriotic Indian tunes based ring tone phones . †¢ Nokia introduced inter-changeable covers offer for 5110 model †¢ In 1999, Nokia came out with Hindi user interface in its phones hence adapting to the local language. †¢ Nokia partnership with Sony music for top 20 hit songs as ring tones. Nokia 3210, †¢ The model 3610 was launched with an enhancing Hindi text messaging facility in 2001. †¢ In 2003 when Nokia came with 1100 and 1108 specifically designed features