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Annabelle b

New watchdog aims to prevent finance companies making 'excessive' profits - 0 views

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    This article talks about how the FCA plans to make the competition a little more intense. By doing this, they plan to have companies sell more of the products in demand and less of the ones that are less likely to sell, thus creating more profit for a company. This causes other companies to try to challenge them, growing the market/economy. The FCA is also not allowing companies to hurt a person financial, trying to grow the market.
Joana c

UK needs to 'beef up' action against tax avoidance, says Cable - UK Politics - UK - The... - 0 views

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    tax 'dodging' has been happening withing big companies in the UK due to the low economy progress. However, Cable says that the UK's tax claimers should be more strict about this as medium and small companies are paying their taxes and loosing profit to paying tax as their demand is low and therefore it cannot be only payed by the costumers but mostly by the companies themselves.
Roman p

Car sales - 0 views

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    This article discusses how the car sales have been hurt in the past due to the recession. The article talks about how the private sector has become a bigger target for the car companies. The elasticity of supply has grown to fit this curve, causing the car companies to gain some more profit that they had in the past. The companies also began to target people that care more about the environment, selling many more low emission type cars. They had to adapt to what the demand was, causing their elasticity of supply to grow to fit many wants.
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    The article says that the number of cars sold in the past has decreased. However the market for cars has recovered. The articled shows how companies adapted to the changing needs of customers. Customers now want more fuel efficient cars and often buy them on the private market. This causes the elasticity of supply of these companies to increase because they quickly had to adapt to the new situation.
Liselotte r

Excise Tax Remains for Medical Device Makers - 1 views

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    This article describes the new tax on various medical wares such as replacement hips and defibrillators. The new excise tax is within the US, and the prediction is that it will raise $20 billion by 2019. The tax will affect smaller companies the most, and as much as 10% of small companies earnings per share may be paid in tax.
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    This article talks of the excise tax placed on replacement hips, implantable defibrillators and other FDA-approved wares. This was originally done to help fund the health laws expansion of insurance coverage. However, this tax is starting to hurt companies producing these goods as they are having to introduce cost cutting plans. "Stryker Corp. said in a statement Thursday that the $130 to $150 million in will owe next year could consume one-third of of its research and development budget." The tax is becoming a burden on companies as they must give the money to the government instead of their research funds.
Stephen b

Aggregate effect benefits Breedon - 0 views

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    Quarrying and aggregate supply firm Breedon believes profits will "significantly exceed expectations" after margins continued to improve in the final few weeks of last year. The company, which has its Scottish headquarters at Ethiebeaton in Angus, said market forecasts for the year look set to be significantly surpassed during a finish which escaped the disruptive influence of winter weather. We don't often think about how macro- and micro-economics can come together, but, for big companies, one is no more important than the other. Not only do you have to think about the margins and competition of your own market, but how your market is doing in general. It doesn't matter if your beating the other guys with a better price and more demand if that price is barely enough to cover what your supplying. On the flipside, your countries economy could be doing great and your factors of production most favorable but, if everyone's getting more benefit from those advantages than you are, it's only a matter of time before get too far a head. This article is a perfect example of where a European company has become enthusiastic about future profit predictions based not only on competition and margin but just on the welfare of the whole country in general
Maya m

Cold Weather, Little Oil - 1 views

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    This article talks about how a few larger electricity and gas companies have increased their prices after the news about a cold and bitter winter in the UK. If we apply this to what we have read about this week, they know that the demand for fuel in houses will increase, but with a increased price they can avoid shortage during this period of time, hopefully. At leas this is what they try to do. They also know it is profitable for them, since people will still need the fuel due to the cold, so the income for the company gets higher.
Andreas k

Gov't Gas Taxes Exceed Oil Company Profits - 0 views

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    The oil company ExxonMobil announced profits of 36 biollion us dollars, however according to the tax foundation the government had a income on this by 54 billion.
Sebastian a

Oil platform explosion in Gulf of Mexico, 11 injured, 2 missing. - 0 views

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    The article talks about how an oil platform in the Gulf of Mexico exploded and caused 11 injuries and 2 people missing. This is an expample of a negative externality, because now the company will have to pay for any health treatment the workers will have to take, and they will also have to use their time trying to find the 2 people missing. The company will lose money.
Maya m

Japanese companys down - 0 views

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    Because of the decreased amount of work opportunities the unemployment rates go higher. That is bad enough for any country, and even worse for a country like China who are dependent on their production and export. The scarcity of work opportunities get bigger, and creates competition on the market. This will contribute to a poorer population since the competition gets higher and people then work for less money.
David s

Medical giant Stryker cuts 1,170 jobs - 0 views

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    This article shows an example of an excise tax that has been damaged firms. A new 2.3% ad valorem US excise tax on medical devices, is, in my opinion, a mistake. 1,170 jobs were cut from one company as a result, and production will be down. This means that fewer devices will be made at a higher price, and furthermore means that fewer of those who need the devices will be able to purchase them, and they will get them at a higher price.
Stephen b

Venezuelan Government to Control Rent Prices | venezuelanalysis.com - 1 views

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    Punto Fijo, November 22nd, 2012 (Venezuelanalysis.com) - The Venezuelan government has announced new controls on the prices of housing rents, while prices of medicines are also currently under review. Many basic goods in Venezuela are subject to price controls, including some food items and domestic goods, and the government has now added housing rents to the list of products subject to regulated pricing. In taking some pointers from "The Rent Is Too D*** High" party, Venezuela has decided to set a case to case price ceiling for the housing rental market. Most landlords will set the price based on construction costs, which tends to put tenants in a tight situation when looking for a somewhat temporary residence. Because of this, the government of Venezuela has forced landlords into setting prices only as high as what the Housing Ministry determines to be the true value product. Venezuela has also started doing this with medication, since medicine should be made available to all who are in need of it, although there has been backlash from pharmaceutical companies. They argument is that the artificial lowering of prices in the pharmaceutical industry will cause suppliers to produce less of the medicine than what the population needs.
Andreas k

Oil spill causes global warming and negative externalities - 1 views

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    This article describes negative externalities in the oil business. This is a global problem and definitely one of the most debated topics in environmental contexts. 'The climate changes are harming the earth, a lot of it is claimed to be caused by burning of fossil fuels. The Gulf of Mexico oil spill is a great example of the creation of a negative externality. The goal of getting more oil to fuel our lifestyle and make a profit for BP trumped any recognition of the massive economic and environmental damage that flowed from their blown out well. Is the cost of this mess going to turn up in the price of gasoline in the US? Probably not. Will it turn up in our tax bills? Probably yes.'
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    I found this article quite interesting as it explains negative externalities very well and gives examples to better understand it. It also goes on to state that one of negative externality that is very relevant to the article is the negative effects a product may have on the environment. It shows the reader that many gas companies are able to cut corners to make the product cheap and more desirable, but in the process it makes a mess of the environment. A popular example that they use to prove their point was the Gulf of Mexico Oil spill.
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    I bumped into this article as I was searching for negative externalities.The article describes negative externalities as general and in terms of oil spilling. As for that it also described the environmental issues and gaves examples from the Gulf of Mexico.
Stephen b

Why Can't Walmart Be More Like Costco? - 1 views

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    Ok, this one may be a bit of stretch this week but it flows more into "margin" than "negative externality", but stick with me. What I really like about this article was that it could have focused on the Chinese sweat shops or the lack of parking lot security, which, admittedly, are negative externalities, but it went in depth on the differences between the externalities of Costo's labor force as opposed to Wal-Mart's. You see, people really like Costco because it pays it's workers between $11-19 an hour while Wal-Mart only pays $11-12. Many would like to say this is because Wal-Mart is the child of Satan brought to Earth to annihilate humanity and do battle with the son of God... who is also God... And to that I say, "corporations aren't people", but that's besides the point. Wal-Mart doesn't just do this because they want more money and because Costco is socially conscious, it's because the margins are much different between both companies. You may not think about it, but all that organizing and "everything you need is here" costs a lot more than what twice as customers can suffice. A lot of that low paid wage goes towards menial tasks like waiting at a cash register for a half hour before the rush of customers arrive or going from aisle to aisle putting the cereal back on the correct shelf because you're just too lazy to do it yourself. What we don't realize is that, sometimes, the negative externalities that we see are a product of our own self-entitled sentiment.
Valentin a

Clinton Cards says outlook worse than expected - 0 views

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    Clinton Cards has warned that the outlook for its full-year results is worse than it had previously expected. The company has lost money and had to close 34 stores to start recovery.
Maya m

Hidden corruption in Spain - 0 views

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    This article is a perfect example of economics and corruption. Corruption if when money within governmental lines is distributed "off the chart", something citizens don't like since it could have ben used for their benefit. In this case, the money came from donations from companies and individuals. If we apply this to the flow chart of a macroeconomy, there is negatives from both households and fabrics, but no input. Though, the input gets there by the government employees spending more. So there is a hidden extra flow that should not be there.
Stephen b

Hills Industries makes $73.6m H1 net loss, will update on March 27 - 0 views

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    The part which I believe is most important about this article is its demonstration of a business strategizing around macroeconomic change and not just microeconomic change. We mostly only think of this stuff on the small scale, pretending like we live in a global community in which a company can survive purely by being better than its competitors and not by having a stronger sub economy. The fact is, even in our growingly international market, that just isn't the case. Countries are like microeconomic ecosystems inside of one big habitat. Just because one has food in it and the other doesn't won't mean that the inhabitants of second ecosystem can just move to the first.
Liselotte r

Inflation unchanged for fourth month in a row - 0 views

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    This article is about the current inflation rate in Great Britain and its unchanging status in the past four years. Jeremy Cook, chief economist at the World First foreign exchange company said, "Home-grown price pressures are also increasing with transport, food and utilities boosting upwards in the latter part of 2012; this will continue to erode wage value through 2013, hurting consumer confidence and limiting spending."
Valentin a

Deforestation in Africa - 0 views

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    The article states that less than 2% of the African forests are commonly accessible.The deforestation rate is 4 times higher than any other in the world. The resources of the land are not allocated very well. Most of the forests were privatized by big intercontinetal companies, and were cut down by them. Common access resources are becoming rare, especially forests.
Liselotte r

Power Hungry Russian Economy Fuels Demand for Gensets, Finds Frost & Sullivan Read mor... - 0 views

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    This article demonstrates demand well, simply because it shows how the demand for a certain product is growing and companies in Russia are racing to have the better product on the market. "Cost, reliability, service contracts, after-sales support, and customer relationships will be key competitive factors," concluded Tohani.
Martina d

A Top Satellite Provider Cuts Off Iran State Broadcaster - 0 views

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    Europe cut the channels that were made in Iran, therefore all of the people that were connected to the Eutelsat Communications won't be able to view channels made by the IRIB. The consequence of this will be an excess in demand, since all of the Iranian people that lived in Europe will demand channels broadcasted in Iran but there is not going to be supply for it. In addition to this, there is going to be less demand for the European satellite since the Iranians will search for other company that broadcast Iranian channels.
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