Business Articles- Term Paper for Econ 500

PRINCIPLES OF ECONOMICS ECON 5031 Jul/Aug 2007 t individuallyer Dr. Hi? n Van Tr? n, Professor Requirement The study must(prenominal) be between 3 to 5 pages long and double-spaced with the display case size of 12 and 1-inch margin for all four sides. The focus of the paper is on a survey and analysis of macroeconomics and microeconomics-oriented problem clauses that relieve oneself been promulgated within the past two months in non-Vietnamese business magazines/journals/websites concerning a non-Vietnamese event.each of the chosen articles must be 1000 words or much and your paper should c everyplace three articles of non-related events. For each article, your write-up must include the refereeerence point (magazine/journal/website name, publication date, author, and page number), a brief summary of the article, the insert macroeconomic concept(s), and your thoughts on why you chose this article. The goal of this essential course is to earn distinctly events happing all ov er the world with the experimental condition of microeconomics and macroeconomics.Based on this goal, during the course, the courses knowledge helps me clarify the worlds scrimping, the route how firms and households interact together in the competitive market as s headspring up as the ways how the regimen adjusts a countrys economy through governmental policies. In the term papers content, I would standardised to choose three disparate articles which analyze three different events of microeconomics and macroeconomics to have a thorough grasp the economic foundation. Article 1 _ Russias economy Publication date August, 24th, 2007. From the Economist Intelligence social unit Views Wire. character reference http//economist. com/daily/news/displaystory. cfm? story_id=9706752 Summary To curb the fall in the rubles value against the dollar of around half of a percentage point, the Central Bank of Russia sold up to US$4bn on Aug, 21st. Due to the roubles dip, foreign investors ha ve liquidated their rouble positions in the wake of turmoil in the US subprime mortgage market and potentially a change in sentiment towards risk of infection on the fictional character of investors. That the sp rake on the benchmark 2030 Eurobond had been rising since June made the biggest decrease of RTS Index, grand and up-to-dateness reserves during that time.Regardless of the short term movements in notes and bond markets, the Russian government continued to run a level-headed fiscal surplus, which has signifi can buoyt exposure to the US subprime mortgage market. In fact, Russia has to vista the following difficulties. Firstly, although the authorities have tended to favor a competitive exchange-rate over the price stability in recent years, the importance accorded to a stronger rouble as a curb on inflation has increased this year. The decrease or elimination of upwards pressure on the rouble and then it presents a problem for the authorities.Secondly, Russias corpo rations cannot be as sanguine as the government about the rise in spreads and the reduction in risk appetite on part of investors. Last but not least, that legion(predicate) issues were delayed, cancelled or scaled back makes Russian firms eager to pose finance for expansion and raise their profile abroad. If this is the worst of the subprime crisis for Russia, the country will have got off lightly. Embedded economic concepts Central bank A government monetary authority that issues currency and regulates the supply of credit and holds the reserves of other banks and sells new issues of securities for the government. communication channel market An exchange where protection profession is conducted by professional stockbrokers. Financial market financial institutions through which savers can directly provide funds to borrowers. Bond a certificate of indebtedness. Stock a claim to partial ownership in a firm. fill in rate The charge for exchanging currency of one country for currency of other Why am I intrigued by this article? In the macroeconomics, the government policies play a very important role to curb the currencys value and to dominate the inflation as well.In this article, the Russian government had an active policy to curb the fall in the roubles value against the US dollar. so far the global market is commonly changeable, Russia cannot be out of the markets mints and has to face many difficulties as well. To solve the problem, the government must have flexible regulations, rules and laws in the neat time to control the currencys value, inflation and the economys growth rate. In fact, the Russian government has to do to a greater extent things to rotate the subprime crisis.Article 2 _ Chinese seek to buy a U. S. producer of disk fuck offs Publication date August 25th, 2007. By JOHN MARKOFF (New York Times) Source http//www. nytimes. com/2007/08/25/business/worldbusiness/25drive. html? _r=1&038adxnnl=1&038ref=business&038adxnnlx=118803 5759-/R6wMhYdw1xWl4NHKbqKUA&038oref=slogin Summary A Chinese technology company has expressed invade in buying a maker of computer disk drives in the United States, raising concerns among American government officials about the risks to national security in transferring high technology to China.The transfer of advanced disk drive manufacturing technology would give the Chinese a major leg up in competing in information technologies. China, however, still lags in basic manufacturing skills akin semiconductor design and manufacturing. In fact, the Chinese government faces a dilemma how to mend yields on its foreign exchange reserves as well as how to encourage companies and even individuals to invest more overseas, as a way to offset some foreign investment pouring into China.Yet the Chinese companies investment for an American high-tech company is blocked for governmental reasons. Basically, Washington so distrusts China, therefore they are trying to throw roadblocks in the path of its economic developments. Embedded economic concepts Foreign exchange the strategy by which one currency is exchanged for another enables international proceedings to takeplace Import fairs produced abroad and sold domestically exportation goods produced domestically and sold abroad Trade surplus A sum of money that a country gains from trade. Why am I intrigued by this article? In chapter 17, we can see that technologies play an important role to improve a countrys productivity. If China wants to get the trust from Washington, in general, and American high-tech companies, in particular, the Chinese government must have good policies in the information technology anti-piracy and come to terms in a highly national security when receiving the transferring high technology from the US.In addition, the policies which encourage Chinese companies to invest more oversea in golf-club to balance between the inflow and the outflow investments in China is an refined example of reg ulating a countrys macroeconomics. Article 3 _ To Woo Europeans, McDonalds Goes Upscale Publication date August 25, 2007. By JULIA WERDIGIER (New York Times) Source http//www. nytimes. com/2007/08/25/business/worldbusiness/25restaurant. html? _r=1&038adxnnl=1&038oref=slogin&038ref=worldbusiness&038adxnnlx=1188088657-Xu2NFGoMNso7mpC3w6pNjA SummaryWith the innovation aiming to create a more relaxed experience in a sophisticated atmosphere, McDonalds plans to spend hundreds of millions dollars remodeling almost its restaurants and spreading its hegemony in Europe. The changes are paying off when the sales at Europes 6400 restaurants increase 15%, to $4. 1 billion, compared with 6% growth in the US, where McDonalds has 13,800 restaurants and sales totaled $3. 9 billion. Moreover, that McDonald highly adapts its menu to local tastes gives incentives to customers and makes them more enjoyable with its restaurant chain throughout the Europe.It has a broad attach diversification in design and tastes, which are appealing and suited for each locations and clientele. Remodeling is also catching on in the United States in the end two years, though less extensively than in Europe, but it seems to be less efficient in where customers prefer to eat in their cars or take their food home. Embedded economic concepts Total revenue the derive paid by purchasers and received by sellers of a good, computed as the price of the good times the quantity sold. Profit total revenue disconfirming total cost. Incentive something that induces a person to act. Competitive market a market with many buyers and sellers trading identical products so that each buyer and seller is a price taker. Why am I intrigued by this article? Different from the two articles above, this article is about the microeconomics in term of interacting between a global firm and customers. In chapter 4, we study the factors that affect the demand curve, including the price, income, tastes, and expectations.In fact, the most interesting thing when I read this article is that McDonalds has a perfect diversification strategy not only in design but also in tastes and expectations, which is suitable for each appropriate location throughout the Europe. It makes sense when giving incentives to customers to be more enjoyable in common fast food like hamburgers, French fries or caffe lattes. As a result, it makes the increase in McDonalds products demand all over the world. With this innovation, McDonalds is doing a good job in term of luring more customers and raising its revenue in the global competitive market. pic