Final exam Essay Example | Topics and Well Written Essays - 2000 words

Final exam - Essay Example These Asian economies enjoy a number of natural and artificial factors. These factors have positioned both China and India at a far much better place to benefit from the idea of globalization. The goodwill portrayed by the political leadership has threefold accentuated the embrace and utilization of globalization to its best. Cummings Inc, being company based in Columbus and majoring in production of world class engines that enable power and run world economies, stand a chance to feel, in full force, the impact of Indian and Chinese presence in the American Market. Cummings Inc is global and this directly translates that it is competing for the same resources and same market which India and china are trying to venture in. It is noted with a lot of concern that China and India have penetrated nearly in all parts which were predominantly American markets and hence companies in America, including Cummings Inc has to review its strategies for it to compete effectively in the 21st century market. Opportunities presented by Influx of Indian and Chinese Activities to Cummings Inc Outsourcing China and India account for approximated two billion of the world’s population. Outsourcing has been very common of late. Many USA companies are finding it far much cheaper to get work done in India and china than in USA. This is business and Cummings Inc has to adapt to these radical changes. ... These governments are doing anything possible to see increase of job opportunities. As mentioned in the earlier, they hold a large population and this population need food, shelter and clothing. Life standards need not only to be achieved but also guaranteed and of quality. The political leadership in these two countries knows that it’s only through a better life that stability can be maintained. For this reason, they endeavor to welcome any investor to invest in their labor affordable market. Cummings hence has an opportunity to save a lot if at all it opts to shift some of its operations in China or India. In fact, it is very viable. These countries are considerably technologically sound and as one of the business activities of Cummings Inc is to design, then the designs can be taken to china or India for production. Market Cummings makes products which drive economies. China and India presents the largest market for any product. They are growing economies and definitely nee d these products from Cummings. The international agreements signed for doing business will enable Cummings to export its products with a lot of ease to China and India. It presents a rare opportunity for exponential kid of growth. Recommendations to the Company Firstly, I recommend that Cummings Inc to outsource in India or China. The standard of living in these countries is relatively low and hence Cummings will benefit from a reduced cost of production. A low cost of production directly translates to a stiff competition of the Cummings’ products in the global market. Cummings Inc ought to open up more dealer outlets of its products in China and India. This is beneficial in a way that the large population provides a ready market. The industrial growing state of these two countries

Explain the difference between macroeconomics and microeconomics. How Essay

Explain the difference between macroeconomics and microeconomics. How are these two fields related - Essay Example In contrast, Macroeconomics is concerned with the national economy as a whole and provides a basic understanding of how things work in the economy. Microeconomics can be defined as the branch of economics in which we study about individual aspects like a firm or household. It is concerned with individuals making their choice about what is to be produced, how and for whom it is to be produced, and what price should be charged for it. Micro economics deals with the economic action and behavior of individual units and small groups of an economy (Sloman and Garratt, 2010). It covers the following fields of the study: Price Theory Theory of Consumer Behavior Theory of Behavior of Firms Theory of Production Microeconomics has many theoretical as well as practical advantages. Few of them are: It helps in understanding the working of a free market economy It provides us a way for efficient employment of resources It covers some of the problems of taxation. It guides Business Executives in at taining maximum productivity Macro economics deals with the behavior or working of the whole economic system. It is the study of aggregates or averages covering the entire economy. In contrast to microeconomics, macroeconomics is concerned with the conduct, arrangement decision-making performance of the entire economy. Macroeconomists studies the relationship between the following: National income National Output Total Savings Total Investment Total Consumption Total Unemployment International trade International finance By definition, Macroeconomics is very wide in its scope and study as it deals with the problems of unemployment, economic fluctuations, inflation, and deflation. It is concerned with the effects of investment on total output, total income, and aggregate employment. The monetary discipline of the macroeconomics examines and analyzes the effect of the total quantity of money on the general price level. In the international trade sphere, it deals with the problems of b alance of payments and foreign aid. The field of macroeconomics provides us fundamental theories which can help us in preventing depressions and recessions by allowing governments to formulate adjustments through changes within the macroeconomic policies (McConnel and Brue, 1997). These policies are in general the monetary policy and fiscal policy of the state. The major differences that exist between micro and macro-economics are discussed briefly as follows (Mbaknol, 2011): S. No. Micro-economics Macro-economics 1. Aggregation Level Economy’s individual units are studied, like a particular product, a particular firm, etc. Problems of the economy are studied as a whole. The aggregates are studied, like national income, aggregate savings, etc. 2. Objectives Principles, problems and policies that are related to the best distribution of resources are studied in it. In it the principles, policies and problems relating to the full employment of the resources and the development o f those resources are covered. 3. Focus Price determination, Equilibrium of Consumer, Welfare and allocation of resources is dealt. National income, full employment, trade cycles, general price-level, economic growth, etc are dealt here. 4. Assumptions Ways for allocation of production and factors of production