Category: Economics 2707

Heuristics can be described as mental shortcuts that are used to solve problems or make probability judgments. They are generalizations aimed at reducing the effort required to think critically about a situation. They can either be effective or irrational when making judgments or coming to conclusions. There are three types of heuristics which include availability…

In my vision, protectionism cannot be undertaken in all cases; however, there might be a situation when I would be in favor of adding tariffs to imports. At times, foreign production starts permanently substituting domestic supply and hindering the distribution and development of internal products. It usually happens due to the high quality of import…

Background of the Case Earning per share (EPS) is known to be a key metric used to determine a shareholder’s portion of the company’s profit. It is widely used to assess a company’s performance, and high values of these indicators usually make a stock more attractive to potential investors (Earnings Per Share (EPS)). In this…

Background John Maynard Keynes is referred as to one founder of the present-day macroeconomics theory. He analyses the relationship between the government’s spending habits to the government’s income in the form of taxes (Wernicke, 2018). Deficit spending refers to a situation where the government expenditure rates are more than the government’s revenues during a fiscal…

The U.S. housing bubble burst was a famous economic event that affected more than half of the states in the country during the beginning of the 2000s. It was characterized by housing prices being considerably changed in several years: an evident peak in 2006, a sudden decline in 2007, and a financial crisis in 2008…

Table of Contents Introduction Differences Between Emerging and Developed Markets Essential Factors to be Considered Conclusion References Introduction Improved productivity and changing consumer needs have motivated many company owners to globalize. Top executives of large firms, particularly in North America and Europe, recognize that internationalization is the most significant challenge they confront today. Nonetheless, most…

Executive Summary A large Canadian company is considering expanding its foreign operations to include Taiwan. It has an approximate size of 36,200 square kilometers. As a result, this country is an attractive market due to its large population of 23.5 million people. In this market, the Canadian company is expected to face fewer challenges because…

Recent economic analysis of real wages in the United States over the past four decades shows that there has not been a meaningful growth in income despite the yearly adjustments of salaries and wages (Tyler, 2018). The annual increase in wages of American workers does not demonstrate an actual improvement in the purchasing power. Inflation…

The purpose of the capital market is the efficient reallocation of funds between investors and borrowers. Individuals and firms may have excess capacity to invest in production but do not have sufficient funds to use them all for their purposes (Renshaw, 1984). If the capital market exists, they can borrow the money they need(Renshaw, 1984).…

Executive Summary Two mobile phone customers are analyzed in this report. One consumer A, purchased Samsung Galaxy S21 5G to replace Samsung S7 after losing his previous phone. Customer B purchased iPhone 12 Max as an upgrade from iPhone 11. Customer B has a habit of upgrading to the newest iPhone upon its launch. The…