IB Econ HL Section B

The EEF manufacture organization in UK announced that public finances are needed to restore the stability of the Uk's productive sector or else firms are going to drop out of the industry. This is relevant to the concept of effeciency because if these firms cannot either reach the allocative or productive effeciency, they will have to exit from the industry due to tremendous loss.

This article is about the need for Industrialization in African states. Industrialization would improve the productive efficiency in these countries by lowering the average costs of production. Secretary-General Ban Ki-moon believes that increased industrialization in Africa will increase competition and allow integration into the global economy.

Russian steelmaker, Severstal, has posted a net profit of $66 million. The article says this was partly due to the reduction in production costs, thus improving the productive effciency.

This article is about the increasing manufacturing in the U.S. Mid-Atlantic region. The trend in jobless aid claims continued to go downwards. This represents an increase in output, and thus a possible increase in productive efficiency.

Chocolate makers Hershey Co and Ferrero are considering a joint bid for Cadbury Plc that could help the British confectioner fend off a hostile takeover by Kraft Foods Inc. Cadbury had not been contacted by Ferrero but would consider any attractive offer.

This article is about a pending deal to stop "banana" wars. This is a dispute over the policy enacted in 1993 to give preferential treatment to bananas from former British colonies, and to put tariffs on other bananas. This distorted the market and created barriers to entry and exit. It also meant that firms in former colonies were making supernormal profit in the European banana market. This deal will put an end to this policy and make move the market for bananas closer to one of pure competition.

India is a highly competitive market with some of the lowest rates in the world, and penetration of all market sectors is growing. This sector is considered to be the closest to achieving 'perfect competition' in an economy. This article expresses doubts about the opportunities for mobile virtual network operators in such a market.

Japal Airline is experiencing a massive loss of revenue. The theory of pure competition is relevant to thsi article because if JAL continues to fail to maximize profit and reduce its loss, there are possibilities of the firm to withdraw from the industry.

Air India has lost over a billion dollars in the past year because the current recession has reduced air traffic, and thus profits. This is an example of a market without pure competition, because the firm and others in the industry are losing so much money.

This article relates to the great competitivity which is undoubtedly present in the Canadian music market, "with 11 times the music businesses expected for its size."

Rostelecom, a Russian firm, suffered 85 percent profit loss, falling from 9.8 roubles to 1.4 roubles. This was due to a foreign exchange loss.

This article is about an large increase in profit of Warren Buffet's investment firm. Revenue increased by two billion dollars in the course on one year.

Along with the many countries throughout the world experienced harship over the economic recession, Canada was also one of them. Despite this crucial damage, Canada is starting to show some improvements from the damage. A Vancouver-based company, Telus Corp. annouced that there had been a weak eocnomic growth in the industry.

Chrysler looks to decrease costs by improving efficiency and productivity. They planned to reduce costs by making the type of car they created variable in the long run. The new short run as a result of this new, cheaper car has the cost of production of the new Chrysler at a lower fixed cost.

This article is about the declining revenues and profits at Time Warner, one of the world's largest media firms. Time Warner owns news corporations such as CNN, TNT and HBO. The main reason for this is declining DVD sales, but the loss in profits also reflects the change in the way people are viewing and consuming television and movies.

This article is about the profit the insurance, private pension and savings bond businesses of Brazilian banking group Itaú Unibanco had in the third quarter. Business by business, life and private pension plans contributed to this gain. Total profit was $216 million USD.

This article examines profits, production, and also the costs of necessary expenses. It looks at the changes that have occurred in the Devon Energy Corporation since last year. It also looks at how lower product costs affect production of the corporation.

This Articel from the Wall Street Journal explains how The Price is Chrysler's fell by 30% and would hope to raise demand in the brand of cars, and get people to Buy.

This article from BBC NEWS - WORLD ECONMY to alert bankers that they must realise that world has changed. Alistair Darling said that the party has got to be over for bankers; he wants to use some regulations to force banks to limit the proportion of their profits that they can give out in bonuses and make sure there are no rewards for failure. Mr. darling wants the bankers to behave sensibly at some situations. Mr. Darling's idea is to also have blacklist of countries that are regulatory havens where the rules and regulations companies have to follow are less onerous. In conclusion we could say that this article relates to scarcity because bankers wants to get more and more profits without thinking sensibly, that is why Mr. Darling needs to limit them.

This article describes the slow recovery Citigroup is going through after the "recent near-death experience" it suffered; this was due to the increasing costs of production which brought negative returns and started to create debts, almost deleting all budget. It is rising again thanks to a subsidy offered by the government.