Group items tagged

Nokia, a well-known cellphone manufacturer based out of Helsinki, Finland, has been struggling for the past few years to keep its revenue at sufficient level. Last year, the corporation was not able to pull any profit and lost over $1 billion. After many cuts and streamlining procedures, Nokia was able to gain a profit this quarter of $200 million, however, revenue continued to fall by 20%. This is an excellent example of how profit and revenue are truly separate concepts, because although the profit gain gave the impression that Nokia's status is improving, it is still in fact losing income.

This article is interesting because it explores the idea of being able to make a profit from public goods.

This article talks about how lage companies like Starbucks and Google are evading tax in the UK by ensuring mae no profits, thereby avoiding corporate tax. These companiesmake billions in but " they ensured they made no profits through large royalty and other payments to offshore companies" (2012, Telegraph) There are understandaby many peopl who are upset about this and calling it unfair. It also undermines the profits of local companies. A solution thatis beng suggested is a sales tax. However many expertssa tha what te TNC's are doing is perfectly legal and said "corporation tax was a tax on activity."

US Airways Group Inc announced that fourth quarter profits more than doubled as revenue costs increases. The carrier with bankrupts improved on time arrivals and baggage handling and this ties up with revenue of the airways. Because according to the service that airways provide people impress them and make them to fly with the same airways all the time just because of kind and on time services and increase revenues f the airways company.

The article talks about the affect of the imposing tax on medical devise industry, that is not profitable at all. The future of medicine will get worse, because they won't be able to buy advanced technology ect. By imposing tax on medical devise industry may cause a lot of problems, which are mentioned in the article.

Zimbabwe has set extremely low price controls for many primary products, and this has caused many people to go out of business. People are losing a lot of money, but the government is refusing to let the prices go higher. The government is making up for the loss by printing more money, which is causing price inflation. The people are upset, but with the government making sure that the prices are low by threatening to close businesses, there is nothing the people can do about it.

Zimbabwe government is controlling food price by physically forcing merchants and shop keepers to low their price down, other wise will be beaten. It is actually not going to work and can not last for long time. Producers can not supply the goods at a price that allows retailers to make a profit. The inflation of this country also reached the world's highest level. This article showed that price control has to be realistic otherwise will harm the economy.

Due to it's low production rate, Chevron resolved to sell its stocks to save itself.

This article talks about how businesses are failing to take advantage of the aggregate demand. There is available demand (maybe hard to see) and companies, by taking too long to hire, are missing out on the demand and, hence, potential profit. 

This is an extremely interesting article in that it shows a real life situation that is described in our reading, the situation in which massive monopolies may need to be broken up. In this case the reasoning behind the proposal is the fact that these banks are making massive profits, and sparking public outrage, which China's premier hopes to quell by putting forth this proposal.

This article from the economist is actually very interesting, it explains that cargo ships are being redesigned to be able to carry more cargo containers but at the same time burn less fuel or at least the same amount. This means that the ships will spend less time docking as they wont have to make as many trips back in forth. This in return generates more profit and total revenue.

This article talked about eBay increasing their revenue in double digit percentage and brought in 1.8 million$ last quarter. They were able to do so because in the long run they planned ahead and predicted that mobile phones would become a platform for commerce, so eBay used PayPal to make a lead in mobile payment, which gave them more market share. eBay was also experimenting with new app called eBay Now, which allows customers to buy goods from their phones from Macy's Target and Walgreens and have them delivered the same day. So we can see how important it is for a form to plan ahead in the long run: it decides the revenue for the firm in future.

The demand for the product increase by the main factor which is called appearance of the product.The designers by coming up with unique ideas make the products uniqe and highly desitred by making them interesting. The internet is a great access to determine which type of products are in need and highly desired also the eye pleasure of customers take a great role in designing.Therefore, if the designers increase demand of consumers and make more profit they would pay amount of money to make it better and make people to buy the product so the desing of the products in corporation with the internet access increase the competition between firms and they will all consider the appearance of their products that they sell and willn try to get the most of the profit.

The article focuses on the cost of subsidies for wind farms by stating it is expected to top a billion pounds this year. the government wants to provide subsidies to wind farms mainly because it wants to promote a cleaner energy and sell it for cheaper. However, from the article, it is said that the government does not want to grant that large of an amount because the energy companies make more profit and add on to the household electricity bills.

The article is talking about the subsidy that companies get and make profit but later on these subsidies turn into household electricity bills and it will affect people s ability and willingness of purchasing a product. For the first time the wind farm subsidies hit to the top which is 1£ billion. The biggest earner is Vattenfall which earned 128£ million.

This article is interesting because it is quite important in terms of the impact it could have on the U.S. India is one of very few countries near the Middle East that is "stable" at the moment, and the U.S. as a country imports quite a bit of its oil from the Middle East. This is very closely related to what we have been studying this week, in that when something is scarce, or demand is high, prices elevate. Not only is it a good decision on India's part to raise prices because it will help their own national fiscal rating, but it will also take advantage of the fact that many countries will begin turning to them as a primary source of oil / diesel until the situations in the arab spring are resolved. India is doing a smart thing fiscally, while capitalizing on unrest in the arab spring and maximizing their profit during this time of high interest in the good that they have to offer.

The Congress is preparing to cancel subsidy for corn ethanol and the tax break for oil companies. The tax credit deepened the budget deficit. It also raised corn price and food price as farmers started to replace other crops with corn. However the House of Representatives won't pass any law that would end the subsidy because their paymasters want the subsidy to keep the demand up.

This article discusses the new Chevy volt hybrid and debates it's future. it can be said that the company, in regards to this car, is going to start benefiting from economies of scale as in the article it states that the production cost will become cheaper however it is obvious that the company is not producing at the minimum efficient scale as allegedly for each volt it sells, the company loses $49,000

Currently, the Chevy Volt costs $89,000 per car to produce. However, GM is selling the car at about $40,000, offering even more discounts in certain places to reel in customers. GM argues that in the long run, the production cost will decrease and begin to bring in profit.

This article is an excellent example of the concept of long term vs. short term decision making by a company. Right now, GM is losing massive amounts of money whenever they make and sell another Chevy Volt, but they hope the investment will pay off in the long run.

Apple is still one of the strong players in the race with Samsung and Google, but lately their profit didn't meet the expected. Their revenue was $41 billion to $43 billion, but they were expected to reach $45 billion. Meanwhile, Android is still growing rapidly.

The Russian government is holding debates on whether to allow private oil companies to begin exploring for oil in the oil rich arctic shelf. Russia is holding these debates because it does not have the resources to properly explore and drill at the rate that it wants to. Donsky warms that only in 2030 will Russia see any profit if they continue at the same tempo.

The article is talking about the federal government which has shut down today because of an impasse over the budge and in two weeks, the nation is set to hit its borrowing limit.The major problem in the articles is that there is an oversupply of global labor, an oversupply of global productive capacity and an oversupply of global capital. The jobs created low wages and part time. Growth in domestic manufacturing is still slow which will prevent the development of a country in their own production and prevent the large amount of profit they will get as a result of the domestic production.Business spending has fallen, rents of the houses falling where home prices have increased. The reason why its hard to get out from the rut is because they are no longer faced with a world in which supply-side economic remedies, easy money, reduced taxation, fiscal belt-tightening and deregulation can spur new capacity and the creation of well-paying private sector jobs.Countries that were recently poor find themselves with huge surpluses and sovereign wealth funds. The rich countries of the world, while still rich, struggle with monumental levels of debt, both private and public, and unsettling questions about whether they can compete globally.Also to clear this mess,developed nations need to put the huge surplus of underemployed workers back to work by any means, including big public sector investments to improve infrastructure and competitiveness.Moreover, a new economic multilateral ism with the developing world, to encourage them to re balance their economics away from savings and toward consumption, while we in the West must curb our addiction to credit and consumption is necessary.