The recommendations for the Barker Ltd

Overall the farm seems to be in a weak state .Two main options : to sell and moving into the crisp market .There are many factors that success depends on such as the present financial position for the potato farm is weak .The liquidity is low and the profit is low also the shareholders get the dividends at a very low level .Therefore they should think about a new market for the business then it is a reason to going to the crisp market.The second point is current bargaining position for the potato farm is weak as well.Most of their potatoes are going into the leading UK supermarket and in addition with a falling price .That is one reason that they should switch to the crisp market .For expending their business.The third reason for moving into the crisp market is Romily with highly experience and skill for crisps' business .And she spend half of her saving for supporting the business that show her confidence and the loyalty which has a positive effect on the business.Then in Romily's business plan she show the probability of the successful is quite high .Well the brand name is old a strong ,therefore if they move into the crisp market the demand can be inelastic.Anyway in Romily's business plan it says the crisp product will have a USP(which is low fat ,low salt )it fits the needs of the society so the demand will be inelastic .Those all the reason for moving into the crisp market .

However there are also some weaknesses for moving into the crisp market.Which is the other main option to keep the potato farm.The first point is if they move into crisp market they have to recruit new staff but there is no increase in hierarchy in the organisation so the span of control is higher .Which is difficult to organise. And lead an overloading for the workforce.the second point is the current situation of their finance is poor therefore how can they get enough support for the new crisp market . Higher risks are involved in there . And there are 30% probability of failure .So if they fail they are going to lose 50,000 pounds.

According to the discussion above my recommendation is that they should moving into the crisp market.

Price discrimination

The definition is where a monopolist charges different prices for the same product in different market.

It has 3 degree :

1. when each customer is charged a different price for
2. When the same customer is charged different prices depending on volume bought
3. when the market is divided into groups and each group is charged a different prices

The supplier has information showing that different groups of customers have different elasticity they may do the price discrimination .Because different customers are prepared to pay different prices it really depends on customers' income or other factors .By the way the discrimination can only work if the different customers can not exchange the product.For example the flight ticket.

The market can be divided by Ages which is student or elder people can get some discount sometimes E.G. bus tickets . And can be divided by nationality and time for example Rush hour prices for train tickets are higher because demand is inelastic at these time .And the market can divided by income so if people who income is higher is able to pay more the suppliers know that .

Many people think price discrimination is not fair .But there is a argument that say this can help people who have low income .People who has low income can benefit from it .Which means low income people can have some services or products by a lower price .Which is a welfare for the society.But why richer people have to pay more ... so there is a argument .

Talk about Economies of scale

Economies of scale are the cost advantages that a business can exploit by expanding their scale of production in the long- run. The effect is to reduce the long run average cost of production over a range of output .These lower costs are an improvement in productive efficiency and can feed through to consumers in the form of lower market price .But they can also give a business a competitive advantage in the market. They lead to a lower prices but also higher profits,consumers and producers will both benefit. The definition in our text book is a reduction in long run average costs resulting from an increase in the scale of the production.

And economies of scale divide into two types Internal and External economies of scale . And Internal Economies of scale include :

• Technical economies of scale .Means that the business is large enough can afford to invest in expensive and specialist capital machinery.And the specialisation of the workforce (the division of labour)when the business is bigger usually the organisation is better so the efficiency is higher.


• Marketing economies of scale and only buyer power.A large firm can spread its advertising and marketing budget over a large output and it can purchase its factor inputs in bulk at negotiated discounted price if it has buying power in the market.


• Financial economies of scale .Larger firms are usually rated by the financial market to be more credit worthy and have access to credit facilities, with favourable rates of borrowing.

External Economies of scale : They are occur outside of a firm within an industry .Thus when an scope of operations expend due to for example the creation of a better transportation network,resulting in a subsequent decrease in cost for a company working within that industry ,external economies of scale are said to have been achieved. And the other one is research and development facilities in local universities that several business in an area can benefit from .

There are some disadvantages of economies of scale:

• Standardization of products .Limiting the amount of effective consumer choice in the market .
• lack of market demand .Market demand maybe insufficient for economies of scale to be fully exploited .
• Developing monopoly power.it is may lead to a loss of allocate inefficiency.
• Protecting monopoly power .Sets barrier to entry for the new business.

DAILY -- blog !

It is a convenient and the design is special which as I said above .So the stroller has all the function that people usually need .It considered all the situation for the babies .And the material for make the stroller is organic cotton and wool which are really comfortable for babies.But there are too many competitors in the market so it must has it own USP so i think features 360 degree rotation that allows the child to face forward, back or even sideways is quite well design.And it is very easy to use.As the article said :

Priced at USD 900, the Orbit Baby Infant System includes infant car seat, base and rotating stroller that work together in modular fashion. The foldable stroller—priced separately at USD 485—features 360 degree rotation that allows the child to face forward, back or even sideways. An exclusive twist-and-lift mechanism permits one-handed folding, while a patent-pending, removable Cargo Pod makes getting to all of baby's stuff a breeze. The stroller is compatible not just with Orbit Baby's infant car seat, but also with its bassinet, toddler car seat and toddler stroller seat. Perhaps best of all, Orbit Baby uses micro-fiber upholstery fabric certified by the International Oeko-Tex Association, which limits more than 100 potentially harmful substances and chemicals. Its flame retardants, for example, meet all applicable standards without the use of many of the commonly used—and potentially harmful—chemicals. Its rain shields, similarly, are PVC-free, and its Green Edition foot muffs and car seat upholsterers—coming soon, and made of organic cotton and wool—will feature what the company says is the industry’s first fabric to be naturally flame retardant without any harsh chemicals. Orbit Baby is also working on a product recycling program for when families outgrow its products.

Therefore I think this is a good business idea ,And I think the market for product for babies is quite essential .

Interactive piggy bank teaches kids about money

This is a quite smart idea I suppose.The most reason I said that is the product is target children.And it able to teach children some skill about the finance ,money ...Well I can say it just like a toy so it will attract most of children and its can help kids to gain some general knowledge besides playing so the parents will likely to buy it for their children as well .And it can teach kids how to plan for purchases by setting goals, completing tasks and comparing prices.These are all important skill for the future life.So which I think the demand will not be low .It is a good Christmas gift for young children.

But it is really for certain ages of children as well for example 3-12 ,I think should be children before middle school otherwise the piggy bank system will be too easy for them then nothing for them to learn .And the other problem is there will be a comparison between them I mean like if one child has it, he will show it to his friends and his friends are going to want to have it ,then they will ask their parents to buy it, no matter the parents are willing to buy it or not .So what i mean is the children will have comparison with each other.I think anything for playing children will waste time on it .But the good thing for this product is it can provide some skills for children.

So I think it is a good business idea.

Farmers use vending machines to sell local products

The ides is good and very practical.To sell the products like fresh milk,eggs ,butter,cheese, potatoes and sausage in a vending machine is quite interesting and the farmers will feel happy because they don't have to send the products to the retailers instead of that they are able to sell the goods directly to the customers .So the farmers have no cost on delivery.And the customers can easily buy the good that the need . Therefore both customers and farmers will satisfy.
And the advantages of using a vending machine is obvious for example the cost will be lower for farmers the delivery cost and the labour cost must be reduced and for customers the cost of transport to the shops will be reduced.So that's the cost .And the machines is convenient it can be set in everywhere .And people buy fresh products from it the feeling is very natural.(hahaha)And it is easy to manage.So I think it is good . And about finance the cash flow for farmers wont be a problem and the profitability is high

But the drawback of that is people cant know the quality of food in the machine so the demand may suffer.And also using a vending machine the communication between customers and the sellers will be less.

Homework

Watch this and say whether Christian was right to accept the offer.

I think he was right .
He asked 80,000 pounds for his manufacturing,marketing and development.And it seems his business is running very well he just wants to expend his business .As he said he has good market and has 2 main retailers WH Smith and the other one(I cant remember) they have ordered his products .And he do imports and exports as well and one factory is in China .Which is in a very good situation. And according his expectation he can get 450,000 turnover in the 1st year and 425,000 profit .The profit is really high and he said the costs is low for each foldio which is just 0.5pound. So we can see there is a high profitability.So I suppose this is a investable business .
And first he wants 80,000 pounds and give 15% shares .So which is more than 5000 pounds for each share.But at the last the offer was 80,000 pounds for 35% shares so one share is equal more than 2000 pounds each .There is more than 3000 's difference.And he said he invested 10,000 pounds already so the share now is 100 pounds for each . So in my own view he really wants to develop his business this is a really good way to do it because the dragon could help him to achieve his goal and to cooperate with famous business person who has many experiences and knowledge is good for his business as well .And the dragon has promised he will put this product in the market very soon .
Well anyway I think 80,000 35% is worth to have this partnership.And it is the way to help his product develop.And I think he actually can accept 35% of shares off.

Practice Exercise 2 on page 26 of the test book

1.Non-current assets(fixed assets): Intangible assets +Vehicles+land and buildings +plant and machinery = 68+11+88+24=191

2.Current assets:(is include cash ,stock ,debtors)4+19+34=57

3.Current liability:(which is creditors)23+3=26

4.Net current assets:(working capital)=Current assets -current liability=57-26=31

5.Non-current liabilities :(over 1 year)So just 16

6.Net assets (total net assets)= non- current assets + current assets-current liabilities -non-current liabilities =191+57-26-16 =206

7.Total equity:(capital)Reserves+share capital= 132+74=206

Group Exercise

The first one - In order to prevent an epidemic ,a drugs company releases a new drug before it has been thoroughly tested.

Is that a ethical behaviour?Well I think this is a real problem may happened around us .So it is necessary to discuss about it . And Ethical behaviour is characterized by honesty, fairness and equity in interpersonal,professional and academic relationships and in research and scholarly activities. So to consider is that a ethical behaviour we should look at if that Honesty ? Fairness?or Equity ?

As we know the aim of the drugs company is to prevent an epidemic which is good for the society but the problem is the drug is new and it has not been thoroughly tested .That may led to some terrible results.Such as the drug may create more epidemic or after people eat this drug may have some bad effects.Therefore the company should not do that ,it is really not a expression of taking the responsibility of there customers and for the society as well.

So my conclusion is although they have a good purpose for doing that (to sell drugs before a thoroughly test) still it is not the ethical behaviour .Because they would not know what is going to happen after people eat the drug which means that they can not make sure the drug can prevent the epidemic.And they not even know is there any bad effects for people ... But just for their to make a profit they are going to sell the drug to people who believe them.So it is not honesty not fairness at all!

Therefore I say this case is not a ethical behaviour~

Dilemma 6 : The toaster

The case is : Sam 's live-partner has a taste in expensive nik-naks-things like toasters which burn an icon of the day's weather on the toast ,or solar-powered fountains for the garden pond.The toaster is in the cupboard as it always burnt the middle of the toast and under-did the rest,whilst the garden fountain clogged up after a day and sank to the bottom of the pond.

unsolicited ,a catalogue drops through the letterbox from a very fancy -and expensive -postal store ,computer-addressed to the partner.

And the question is SHOULD Sam quietly rid of it before they can be misled -or give it to them when they get home and wait for the next disastrous mistake?

If I was Sam I would rid it quietly because nobody wants their lives are be affected by others people.And to do this is good for his partner as well.It can make him do not waste his money to buy those rubbish stuff.Well I don't know if Sam like those things as well ,maybe he wouldn't!But just one thing I want to say nearly everyone is selfish... So...

But at the last I really do not know why is this relevant with business studies?... Well maybe I didn't understand enough .But that is my own view of this story. = =

The law of diminshing return

law of diminishing returns in economics, law stating that if one factor of production is increased while the others remain constant, the overall returns will relatively decrease after a certain point.

Thus, for example, if more and more laborers are added to harvest a wheat field, at some point each additional laborer will add relatively less output than his predecessor did, simply because he has less and less of the fixed amount of land to work with. The principle, first thought to apply only to agriculture, was later accepted as an economic law underlying all productive enterprise. The point at which the law begins to operate is difficult to ascertain, as it varies with improved production technique and other factors. Anticipated by Anne Robert Jacques Turgot and implied by Thomas Malthus in his Essay on the Principle of Population (1798), the law first came under examination during the discussions in England on free trade and the corn laws. It is also called the law of decreasing returns and the law of variable proportions.

About the price of oil

Oil prices slide on demand fears

Check the oil price Oil prices have fallen by almost $3 on fears that energy demand may not have recovered as much as thought. US crude was down $2.78 at $69.26 a barrel before recovering slightly while in London Brent crude went as low as $2.96 to $68.36 a barrel. A report by the Centre for Global Energy Studies said there was unlikely to be a sustained rise in prices until a global recovery was well established. Market participants were also nervous before this week's G20 meeting. The summit in Pittsburgh is likely to address whether further measures are needed to support the world economy, or whether stimulus plans can be withdrawn. "There will be little or no sustained upward pressure on oil prices until global economic recovery is firmly established and reviving oil demand begins to draw down bulging oil inventories," analysts at the Centre for Global Energy Studies said. "Even next year prices are unlikely to rise much unless clear signals emerge that the world is pulling out of recession in a sustainable fashion." Another report from energy information firm Platts also suggested that energy demand in China, the world's second largest consumer of oil, slowed in August.

The costs and benefits of High Speed Rail

A High speed rail is fit our modern lives .

So the benefits of having a high speed rail are obvious:

1. At the least it can helps to reduce the congestion .So for this reason here more benefits will include :

• less pollution -the number of cars emitting pollutants into the atmosphere will be less
• less waste -the petrol being used when cars are at a standstill and engines are being used inefficiently will be reduced
• And it can save time
• reduce the cost to the NHS of having to treat people with respiratory diseases
• Reduce The wear and tear on the road of the number of vehicles using them

2.More convenient for people who doesn't have a car.And it is much faster for a long distance travel then a bus or tube,etc.

3. Increase the productivity

The costs of having a high speed rail are obvious too:

1. A rail way cost huge land and plenty of time and a big amount workers to build and of course lots of money.

2.And it is produce another pollution called noisy pollution.

3.And have to build a station for it as well therefor need more labour so cost will be increase (but the benefit from this is the unemployment will be less which is good for our Economy especially when we have a situation during recession)

How can EF increase profit

When we consider about profit that really make me have to think about the formula : profit = total revenue - total cost .So to help EF to increase their profit we should consider as these two sides either increase total revenue or reduce the total cost .

Firstly let's say how to help EF increase their revenue, well there really are plenty of methods for increasing revenue.But in EF's case to expend the size of the business and the schools is quite important. Because EF is known as an international language school ,But actually it is a business on Education .And it is really a successful business cause it already become the No.1 language school all over the world .So which means the brand is famous enough to attract high quantity of demand .And why I said to expand the size of the schools is very important? Cause according my own experience to study in EF(when am in language cause I think the school is overcrowded especially in the summer time and I do not know others but in Oxford it is really too many people ~ )So I suppose that is really reduce our quality of life here therefore if EF wants a good reputation of this point they have to expand the size of school and it is better for get more students as well .So more space more services .
And the other importance is cause EF is dealing with international students so what they hope is the exchange rate can be cheaper ,therefore more students will come to study~ so their revenue will boom! Also the advertisements are quite significant for EF but I think EF's AD are perfect very attractive ~so which is good .And also I believe that is EF could offer more promotion the situation will be better .For example just say 1 more month course get 10% discounts.That is quite encouraging :P or to say if you study a 3 months course then the school will take you to travel to somewhere ,such as France...etc.. While anyway to increase the total revenue they have to attract more students more demand . And also they should try to find more investment as well.
And one thing I have to say it is now there are many competitors exist.EF should has some USP such as some special services or offer more language courses and more choice of languages Chinese, Japanese Spanish etc.But they already have their chain in nearly every countries which is very advance benifit~

OKAY then let us think about how to reduce the cost as well.First they could to reduce the labour cost I mean the better way to employ people for EF is to employ the students who wants to find a part-time job casue the wages will be much cheaper than the full time workers.And secondly redcue waste and they could buy the mass- products by much cheaper price but for a big amount.That is can help to reduce the cost as well.And dont rent the land in a central area otherwise it will be too expensive!

Over all there is just my personal views :P hopes it can help~

NEWS -Growth in UK retail sales stalls

Analysts had been expecting sales to rise
UK retail sales were unchanged in August compared with the previous month, casting doubt on the strength of the recovery in consumer spending.

Sales growth in July was also revised down, from 0.4% to 0.2%, the Office for National Statistics (ONS) said.

Food sales growth was more than offset by falls in clothing and footwear.

To add to the retail gloom, department store John Lewis announced a fall in profits and predicted tough trading conditions in the coming months.

Big falls

Retail sales rose by 1.3% in June, and analysts had been expecting a third straight month of growth to reinforce hopes that the UK was emerging from recession - as hinted by other data.


ANALYSIS

Hugh Pym, BBC chief economics correspondent
The latest news from the High Street suggests that shoppers are not rushing out to celebrate any recovery which may be in the offing.

There has been much talk about the recession ending and growth resuming. If it does, manufacturing will be the engine as exporters benefit from the weaker pound.

The retail sales figures showed no increase in August. The underlying trend - covering the latest three months compared with the previous period - showed only a marginal increase in the growth rate.

Many consumers are using extra cashflow from lower mortage rates to pay off debt.

Yes, the economic recovery may be underway. But you wouldn't necessarily know it from retailers. Growth in the third quarter of this year, if it materialises, may be marginal.

B&Q profits from increase in DIY
French Connection losses double

There were signs of growth in some sectors. August food sales rose by 0.7%, while non-store retailing - which includes internet, telephone and mail order shopping - and repair shops saw sales grow by 1.1%.

But this was not enough to offset bigger falls in other areas.

All non-food sectors, apart from household goods, suffered declines in sales. The worst hit were textile, clothing and footwear shops, where sales dipped 1.3%.

Department store John Lewis added to the downbeat retail outlook when it announced a 20% fall in profits for the first half of the year, and said it expected the coming months to be tough.

"We expect trading conditions for the remainder of 2009 , and into 2010, to continue to be difficult," said chairman Charlie Mayfield.

He forecast a "slow, drawn-out economic recovery."

Reflecting the growth the overall growth in food sales, however, the group did see stronger performance in its supermarket chain Waitrose.

'Cautious spending'

Earlier this month, figures from the British Retail Consortium (BRC) suggested that like-for-like retail sales - which do not include new stores - fell in August, by 0.1%.

"The official data confirms our own findings that the strong retail sales in June and July were not sustained," said BRC director general Stephen Robertson.

"With unemployment rates at 14-year highs and predicted to increase into next year, most people are still very cautious about spending on expensive items - unless there are sufficient discounts."

Separately, a survey from business group, the CBI, found that orders for UK manufactured goods remained weak.

Of the 555 manufacturers surveyed, 8% said orders were above normal levels, while 56% said they were below normal.

Export orders were particularly low, despite the relative weakness of the pound, the CBI said.

Rebooting Britain - 10 solutions

The fourth one -Reduce the national debt

There is always a budget deficit in the United Kingdom's Economy.Which is because the UK usually buy imports more than the exports they sale.And also they have a lot national debts maybe .So the organisation for Economic Co-operation and Development estimates that the UK national deficit will rise to 14 per cent in 2010 and it will become the highest in the western world .

And the UK decide to reduce the national debt.Cause they notice that if the scale of the debt burden will cause interest rates on government bonds to rise and making long-term inflation likely .And that will lead to many problems for example the pensions and savings may suffer unless the government raises taxes and makes big cuts in public spending .

So this is a quite serious problem .Then how can Britain reduce the national debt and to reduce the deficit? Maybe buy less imports and sell more exports is a good way.And they should do a financial plan for the UK.And really try to borrow less debt.But which means that money are there in the economy may be less.So if the government do not have enough money to spend the situation can be worse .SO still they will charge higher taxes and reduce the government spending etc.

Therefore the government really need to consider about how to deal with the national debt.

Question 2 of the case study

The corporate objectives of Sainsbury are try to increase their profit and to have more customers.

So it is clear that great food and fair prices ,growing supermarket space,active property management and so on they all can help .Then let's set the great food at fair prices at an example .People always want to buy high quality goods especially food .So if the food that we sell is very high quality it helps us to improve our reputation .And hopefully the sales will increase as well.And the fair price which means that the price is good for every levels people no matter are they rich or poor they can all have the good quality food .that's really help to improve our living stander and the ranges of customers will be wider .Therefore the amount of customers will increase which helps the Sainsbury achieve their corporate objective to get more customers .

But is that fair price means very cheap? So will us lose our profit in order to keep the price low.And if it is too cheap people (especially rich people )may think the quality is suffer.But still it is a good way to go I suppose .

And the plan of "channel growth through online and convenience expansion" is good as well.Because the market will be expend after that .And people will become more easy to buy things from the Sainsbury.So it Will has much better reputation.So the sales revenue may increase then the profit may also increase.

Another important thing is reduce the cost of course .We can try to reduce cost by reduce the labour cost and choose the good location but cheaper.And try to divide the big supermarket in to several little convenience shops i am not mean all I mean some just divide some big supermarket.Because then we do not need to offer the space for car park.Which could reduce our cost.

The Extra work

Economics is social science ,a study of people in society and how they interact with each other .Is it possible to use a scientific approach effectively in a subject that deals with human beings?


While actually I not very sure what is that asking about.But I think the answer should be "yes it is possible."

HEHEHEHEEEEEE~ someone tell me what should I answer for this question?...

Rebooting Britain - 10 solutions

The third one -End Britain's oil addiction

As we know oil is one of the scarce resource are there in the world .So using more and more oil is already become a serious problem for the world . And there are conflicts happens very often in the Middle East it is always because the oil dependency. So don't need I to say how important oil is cause everyone knows it !

And with our increasingly technologies the amount of oil that be used is also increasing. But we know that use oil too much won't give us any good results .For example cars use the petrol and then produce pollution that's a negative effect in our society .So Some people think about to invent electric cars to save the resource and create a green job .That is the main idea of the solution .

Of course it needs a huge amount money to get this done . Its need thousands millions pounds I suppose .And this is just a part of make a country going without oil.So in my own view it is too difficult to do. And the opportunity cost can be everything for example the government will spend less money on health care . And also now the price of oil already quite high that could reduce some of the demand .And I the other option is use the big amount money to do with the result after using oil.For example try to deal with the pollution.

I am believe that stopping use oil is a good thing .But we cant live without oil .We eat oil and we use it in every where.But the electric cars is a good idea and it is a huge process as well .The government have to spend lots of money .And they may find more problems than now they have .

So I think the best way is we do not waste the scarcity resource ! But really be serious if one day we don't have enough oil to be use that's may be the only option to continue our lives.

Rebooting Britain - 10 solutions

The second one ： revive the export economy


In the economy down turn.the prospects for Britain is to have more injection for the economy~ So what including in injection ? EXPORT ,INVESTMENT and GOVERNMENT SPENDING! So if there are more injection in the economy which is also means there are more money is coming into our economy.Which is a good thing to have .Therefore the idea of Krugman is let Britain to go back to produce manufactured goods and to sale more export to other countries to boost the economy in Britain. Yes this is a good idea actually say if Britain start to do the manufactured good is snot only can help to get more income and more GDP but also will reduce the import from other countries .That's can save a lot of money~

But the problem is,Is Britain really good at producing manufactured goods? For example China must be much cheaper to produce that kind of things because the low labour cost .But not in Britain.And if they start to produce the good now a lots of new firms need to be started up.And of course the government have to give subsidies to the factories .Although it is a injection but it still need to be consider very carefully by the government.And there will be many opportunity cost of doing this .And then continuing saying of the product to be produced in Britain.The price will be expensive to export I suppose ! As I said because the labour land and resource cost is maybe much high .

So what am I trying to say is if Britain start to produce the manufacture things it certainly could reduce the amount of the import but is not means that the export will increase as well.

marketing plan about the lapdesk

Because of Wendy drop business studies . So I have to do her job now !! Thanks Wendy~!!! Okay anyway~

The marketing plan :

If we have 25ooo pounds ,Firstly we should spend a lot about marketing for advertise our proudcts such as TV advertisement or....Though by segmenting the market in lifestyle ,it is believed that the students would be our main group of consumer since there are always not really enough writing space in the lecture and they are only ones who need to take notes everyday .However I don't really think most of them are willing to purchase the lapdesk according to their income but it will be totally different if we sell to their schools it will become an USP.so this is a good way make our price cheaper and sale more products.And in addition we could try to re-design our product maybe to combine the product to one for laptop .That may be a good idea and it will expand our market.So obviously that need some cost.

To sum up a big proportion of the 25000pounds will be used to identify anticipate and satisfy our targeted customers .

uhhhhhhhhhh... that is enough I think .

The works about lapdesk

My part of work was to analyse the competitors of this product.

So as I researched there are plenty of products named "lapdesk" exist in the market.Therefore if we consider the development of this product we have to think about the competitors are there in the market .To see if our product is unique or not .So let me just give an example of a product to compare with this "unique lapdesk business & leisure folder".

First i will tell the advantages of this lapdesk ,it is easy to use and can easy to provide a right angle to write that is really a good idea and also as folder some paper and pens can be put in of course .And I don't think it is heavy. That's the function of this product it is simple but quite useful for a lot situations .Then I want to talk about the design of this product, as we see the picture we could know it is all blank ,I mean if a group of people use it and give some label on it(for example EF School)is also a good way to advertise.And about the pricing of it ,if you buy more the price will be cheaper.
And some disadvantages here as well. I think the price for it is really high and it may update by high technology soon I mean people will use laptop maybe instead of handwriting.

So let's see another product which called lapdesk but it is do with the laptop .may be more people will think it is more useful for us .Anyway there are the advantages of them. Laptop is very widely used in our lives.So the product about laptop may have more market.This product I'm going to introduce is made by plastic so it is very light to carry and it is not big .As we know the laptop always provide heat so this product it is to help about reduce the heat. That is a quite useful function.And it has many angles as well which means can make people comfortable as well .And the price is much cheaper than that one .
But the disadvantages are it is just can be used for laptop .we can not use it to write .And the design of it is not as nice as the last one .

While ~ actualy I think they all have the same idea but may be different purpose.So which product is better that is really depends on who will use it! But if ask me to choose one I will think about the one for laptop using~

Announcement ! ~

Hey~ I am coming back to do this D-A-I-L-Y blog right now .I decide To do this not only for helping me to improve my poor English but also for my poor business studies .

I know I didn't get a good result for last exam but I believe that I will get a good result for the next exam . Which means of course I have to work harder on business studies and do a daily blog ~ hahaha~

okay~ then I will start my work today ! :)

Rebooting Britain - Analyse 10 solutions

The first one -Break up the banking system

The debate is about how long some of the banks such as RBS and Lloyds should remain nationalised? The idea for some people is,they want to sell off those national banks They look at the experience of other countries such as Japan ,Sweden...they think they will sell it eventually after a long time .
But others think that if the bank are controlled by the government the government will distribute the money,so the bank won't become too big to fail .

There are the ideas over all. But I suppose that may links to the credit crunch because some of the banks were use too much money that makes people lose their confidence then everyone starts to think to take their money out of the bank but what if the bank haven't got enough money the reason is they spent a big part of the money on somewhere ~ and many banks in different countries are also have no matter loans or debt so that makes credit crunch happens in ever where .

So that really is a bad example . So my view is to remain the national banks for keeping the stable of economic in own country.Especially after the credit crunch.And also controlling by the government is a good way to try to try to make the right decisions.But it also make our economic or business becomes narrowly. much money that makes people lose their confidence then everyone starts to think to take their money out of the bank but what if the bank haven't got enough money ~ and many banks in different countries are also have no matter loans or debt so that makes credit crunch happens in ever where .

So that really is a bad example . So my view is to remain the national banks for keeping the stable of economic in own country.Especially after the credit crunch.And also controlling by the government is a good way to try to try to make the right decisions.But it also make our economic or business becomes narrowly.

May 3rd ~~ HAPPY HAPPY HAPPY BRITHDAY

Happy birthday to me ~

Ohhhhhh~~ as well as to Mr.Chris !!!

I am so surprised that Mr.Chris and me were born on the same day ~~( but not in the same year hehehehehehe~~~~~ )

I wanna say to you that your kindness couldn't be appreciated more...Thank you very much on your auspicious birthday!

Enjoy your day:)

Anyway ~ happy birthday to us ~~

Watch out !!

What a serious SWINE INFLUENZA there is !!!!

So for everyone take care your body,please ~~

Mark the past paper

For the first one I couldn't read it clearly. So skip to the other one .Nara's!!!

Question One:

Let's see Part A, I gave her 1 mark.because she didn't tell us what is secondary research.

Part B, I gave her 1 mark because she didn't say it is a planning of income for a business .

Part C, no mark for this one I think, because what did she write is not the answer to this question ,the question is asking the characteristics of a entrepreneur as Paul Stamp.So will should answer the characteristics of a entrepreneur .That should be something like innovation, risk taking ,determination, relevant skill and expertise....but what she write is nothing close I think... So in my opinion no mark for this question

Then Part D, 2 mark she talked about why Paul should have the secondary research .

Part E 10 mark there is no calculate wrong.

Question two:

Part A,I gave her 2 mark.Because she had mentioned the cost of the cost of buy a new premise and also she said about the population is important but both of them she didn't talk much . She also need to say something like the fund for purchase and also should say something about the customs . And the competitors ...

Part B ,3 mark She had mentioned there will be a limited liabilities if he become a partnership company .And also she said Paul can get more ideas and she has mentioned about the finance but nothing else . So she didn't say the conclusion and advantages and disadvantages which is poor.

Part C,2 mark because she didn't answer about how the primary research and secondary research helps the business.
There fore totally she has 21 mark for this past paper. Just in my opinion.

Evaluate costs and benefits of indirect taxes

There are two types of taxation one is direct tax the other one is indirect tax .Direct tax is the tax on income of people or firms and it cannot be avoided .Indirect tax is the tax levied on goods and services .For example VAT is a kind of indirect tax.

The benefits of indirect tax are : To levied tax on goods and services is a good way to control the demand and supply.For example tax on cigarette or on alcohol such as these de-merit goods the consumption of them will certainly fall but because the price of demand elasticity of them is inelastic so the demand won't fall much. people will still but it.But can reduce a Small amount and also the tax revenue will be more for government . And also except the tax on de-merit goods also will have tax on merit good so if it is a merit good the most tax will pay by consumers but if it is a de-merit goods the most cost will pay by suppliers. (the tax diagram)

The costs of indirect tax Will be : If the government charge a highly indirect tax people do not want to pay high price for the goods which is them want to buy ,so they will go the black market
into the informal economy to purchase so that will make a market failure.We will turn to a even worse situation.

Discuss the costs and benefits of government subsidies

Government subsidies is a payment given by the government to encourage production or consumption of a product. So it is a part of government budget and it is government spending.

So let's say some benefits of government subsidies : Government subsidies is a kind of government spending so which means it is a injections for the economy.And also is the government give subsidies for firms they will have more money to produce for example they could buy more machinery or recruit more labour which is also helps the unemployment .Anyway firms will be able to have more capital. Which means will have more investment for businesses.And also if the firm are able to produce more and recruit more labour there will be less unemployment so more and more people will able to spend so the consumption also goes up.And if there are more employment will be more income tax and less job seeker allowance .so also good for the government budget. So as we know government spending , Investment and Consumption are components of aggregate demand (AD=C+I+G+(X-M))so if any of these has increased the aggregate demand will also increased (the multiplier effect) so on a AS,AD diagram AD should shift to the right.which is a short run economic growth real GDP has gone up.

And then let us look at some costs of give subsidies by government:If the government give subsidies to firms the government will increase so there will be a bigger budget deficit.And also Subsidies as a government spending there is a opportunity cost of it .For example if the government give the subsidies to some businesses then there will be less money spend on the health and education etc. And also if government give some subsidies to a firm which needs imports for their material .They will purchase more import goods which is going to make a current account deficit .

Discuss the benefits of having a high employment rate.

Having a high employment rate means that have a low unemployment rate.Unemployment which is the people who doesn't have a job but able and willing to have a job.And we know that unemployment is one of the macroeconomic performances.We want to achieve low unemployment in our economy .Which is also means we want to achieve a high employment . So let's discuss the benefits of having high employment.

Firstly a high employment could helps the government budget .Because if the employment is high means less unemployment so less job seeker allowance the government have to give.So that make government spending less and also a lot of people have a job and the will able to pay tax So the government also can get more tax revenue so that may leads to a government budget surplus and government will have more money are able to spending on the right place for example the NHS ,schools or to give some subsidy to business companies to encourage them to produce.So the second on is because if the employment rate is high more people will more likely to spend so consumption will be high .And also because the reason government subsity and consumption are high firms get more invertment and prouduce.So we know the formula AD=C+I+G+(X-M) so that if the Consumption goes up the Government spending goes up the investment also goes up aggergate demand will also increase ( a graph should be show which is the AD shift to the right).And if the AD increase real GDP will increase as well.And then will have a short run economic growth and will created more jobs and more people will get a job~ And the third one I want to say about is if the a high employment rate may cause a high inflation .( demand pull inflation)...

A high employment rate means that the economy is strong !

I must know these

Account for
Asks students to explain a particular situation or a particular outcome. Students are expected to present a reasoned case for the existence of something. For example: Account for the rise in unemployment shown in the table of data.

Analyse
Here you are being asked to provide a comparison in detail of the causes and any possible effects of how the thing under consideration has developed or happened. Wherever it is possible ,try to give examples, this is especially true if the material offered has examples within it. If the term “critically" is prior to the term analyse. This is telling you that you need to make suggestions as to possibly why or why not something may or may not, in your own opinion, be appropriate considering the issue or event being analysed. Always try to offer support to your findings and/or opinions. For example: Analyse the extent to which foreign aid promotes economic development.

Apply
This as the word suggests is asking you to apply your knowledge of a particular thing, say the monetary or fiscal policy, to a given situation. It is asking you to relate your own specific knowledge of the issue from the syllabus area to the particular situation that has been given to you.

Assess
Asks students to measure and judge the magnitude or quality of something. Students may offer differing assessments as they present the reasoning for their conclusion. For example: Assess the economic implications of the movement of many eastern and central European countries from planned economies to market economies.

Calculate
This type of question is normally asking you to use specific knowledge' that you should have i.e. a formula. When doing a question like this it is important to show each step or stage of an calculation used. For example: Calculate the PED for a price change of $4.00 to $4.40.

Comment
A comment question requires you to draw some conclusions about the issue under consideration. This is often from the result of your considerations, workings and/or calculations have told you about the problem that you have been given.
Compare/Compare and contrast
Asks students to describe two situations and present the similarities and differences between them. A description of the two situations does not on its own meet the requirements of this key term. For example: Compare the effectiveness of demand-side policies to supply-side policies in reducing the level of unemployment.

Consider
A consider question is asking for reflections on the different options/alternatives that may exist to resolve / solve / defeat or possibly correct the problem that has been posed.

Define
When asked to define it is essential that a very clear and correct definition is given of a specific word or concept. For example: Define what is meant by a free-trade area.

Describe
Asks students to provide a description of a given situation. It is a neutral request to present a detailed picture. For example: Describe the main roles of the IMF and the World Bank.

Discuss
Asks students to consider a statement or to offer a considered review of or balanced argument about a particular topic. For example: Discus the view that trade is more effective than aid in promoting economic development.

Distinguish
Asks students to make clear their understanding of similar terms. For example: Distinguish between normal and supernormal profit.

Evaluate
Invites students to make an appraisal of a situation. Students should weigh the nature of the evidence available and discuss the convincing aspects of an argument as well as its implications and limitations, and the less convincing elements within an argument. For example: Evaluate alternative policies designed to reduce inflation.
Evaluation occurs when a judgment is made. It is the weighing or measuring of factors followed by an attempt to give relative weight to those factors. Questions that begin "evaluate", "assess", "critically assess", "discuss" or "to what extent" require students to show their skills of evaluation in order to reach the highest achievement levels.
There are many ways that students can be encouraged to improve their skills of evaluation.
When factors such as causes, consequences or remedies are asked for, students should attempt to identify the most important ones and then to justify the reason for the choice.
When advantages and disadvantages are asked for, students should attempt to identify the most important advantage (or disadvantage) and then justify the reason for the choice.
When strategies are asked for, students should attempt to assess the short term and long term implications.
When data is offered, students may question its validity, in terms of whether it is appropriate, whether it is reliable, or whether it is still relevant
When summarizing a theory, students may question its validity, in terms of whether it is appropriate, whether it is reliable, or whether it is still relevant.

Explain
Directs students to describe clearly, make intelligible and give reasons for a concept or idea. For example: Explain why a monopolist may charge different prices to different customers for the same service.

How
A how question requires the details be explained about how something is achieved or has been stopped or whatever other exercise the question is asking you to perform.

Justify
A justify question is asking a student to explain the reasons why or for what reason something is happening or maybe not happening.

Outline
Outline really only requires the main features relating to the issue to be given. Try to say the reason why a thing may or may not happen.

To what extent
Asks students to evaluate the success or otherwise of one argument or concept over another. Students should present a conclusion, supported by arguments. For example: To what extent should LDCs adopt outward-oriented strategies rather than inward-oriented strategies to promote economic development?

What
Asks students to clarify the nature of something, in contrast to either a temporal dimension (when?) or a spatial dimension (where?) For example: What is the difference between a tariff and a quota? .

What is
This question calls for the student to give an explanation about something. It should be fairly obvious as to what is the central theme or part of a question and the topic you are being asked to address.

Which
This question is asking you to make a decision from the range of choices, decisions or methods etc. You must offer reasons as to why you chose to support the decision that you did.

Why
Invites students to present reasons for the existence of something. This command word implies a powerful requirement to present a judgment. It is similar to the Invitation "account for". For example: Why do prices tend to be stable in an oligopolistic industry?
Source: http://www.tuition.com.hk/dictionary/essay.htm
41 tips and strategies to get an A grade

Case study

The question was : All Hoggard Organics' shop managers in the UK will be expected to draw up cash flow forecasts and budgets for their individual shops.To what extent might the use of these techniques increase the company's chance of success?

My answer is:

Cash flow forecast is detailed estimate of a firm's future cash inflows and outflows per month. And a budget is a forward financial plan usually involving a cash flow forecast ,forecast sales and forecast costs. So in this case we have "Hoggard Organics "is a multiple shop which has a chain of 100 shops across Canada and the USA.Now it also want to develop in the UK. First let talk about cash flow we all know that cash flow is very important for a business .You can know how much the money coming in and going out of the business. Because you have to keep enough cash in your business otherwise when you want to improve your business then you cannot.So it is necessary to do a cash flow forecast.Cash flow forecast can help the business attract more invest to make more confidence in a business .Because they need enough cash to run the business well and to dealing with the possible problems during running the business .And then about the budget I think to run a business at least you have to have a budget for your business ,to make you think how much are you going to cost and how mush are you going to sale also how much profit are you going to make etc.Then you will like have a target and you will try to achieve the biggest profit. After all no matter is the cash flow forecast or the budget ,they are all very important and necessarily in a business .
So the question said they need to draw up the cash flow forecast and the budget for their individual shops .Yes I think they should be do that because each shops indifferent area may have a different situation.So The better thing for them is each shops can have their own plan.that will be more concentration on the particular problem for each shop.
To do a cash flow forecast and a budget helps them to know their business and more confident for running the business and the will able to face the risk in the future . Sounds very good .But there also are so problems with this if the calculate the cash flow wrongly they will get everything wrong about the cash spending which will affect a lot in the business for example they thought if they buy some new equipments they still have enough cash for something else but actually they don't ... It may be make a fail in the business so the same in budget For instance if the actual figure are smaller then what they thought it will be demotivating for the labour.... So something like those about if they made a mistake...
At the last I should say do a cash flow forecast and a budget could increase the changes of success if they do it correctly.



OOO~ my answer is over . Is the answer any good ? Please give me some comments on it . I still not sure how should I consider about question like that still don't know how to discuss and how to evaluate questions ... Because I am just start thinking of business....Actually It is difficult T_T... So please give me more help about my poor business... Thanks a lots!!!

"K9 Kalmer" dog quieter

Do you sometime found dogs are very noisy?No matter yours or your neighbour's'.Especially when you have to work or you need a quiet environment they are really bored~

This k9 kalmer can plays an irresistible, proprietary composition of music, which your dog can hear but is otherwise inaudible to humans. This melody will lure attention away from anxiety producing stimuli and result in a dog's version of tranquility. When used in a systematic way, the K9 Kalmer will make this Easy installationbehavior a permanent part of a dog's life. And also it 's completely pain free. It will reduce And this not only can use on your dog but also can use to your neighbour's dog! So that can solve real problem~ The music can go through a 100 yard range and travels through fences and over walls.

The unit is easily mounted to walls, or may sit on any flat surface. The unit may also be mounted under outside eaves, virtually hidden, due to its water resistant casing. The K9 Kalmer is easy to use and has simple one button operation.

And I think theadvantages are:

1. Can avoid the noisy from dogs totally when you do not want to hear it
2. Good design and using new technology rational design
3. Easy to control and Easy to installation
4. And it is a market nichine because there is no pain free quiteter of dogs

Disadvantages:

1. It makes dog quiet forever because The K9 Kalmer will make the tranquil behavior become a permanent part of a dog's life. So there is something loss I think. maybe dogs' nature should not be
2. It's not respect others when you use The K9 Kalmer to others dogs before you get their agree So the aim of the business in some way is not so good
3. you can't exactly shut the dog up which you want you will affect many dogs around even though they are quitet
4. And one of the aims to have a dog is to keep save , like avoid thieves .But after use The K9 Kalmer I believe that the dogs will lost this function.
5. Can be harmful no matter for dogs or for people.

Using Break-Even analysis to make decision

Break-Even shows the minimum level of sales needed to cover costs by comparing the sales revenue with the fixed and variable costs of a business .



Break-Even point = Fixed cost / Unit contribution

Unit contribution = Selling price - Variable costs

Total contribution = unit contribution times Quantity



The benefits to use a Break-Even point :

• Enable the business to forecast the costs ,output,and profits.


• Helps the business persuade the bank to lend them money


• Knowing the break- even point and margin of safety allow manager to make business decision more accurately

But Still there are also some problems to use Break -even :

• It cannot prevent the sudden change in market
• if the data is wrong the result will be totally wrong then will affect you business
• It always assumes that variable costs rise constantly-if the business bulk purchasing the goods with discount the cost won't go up

So when start a business you need to consider carefully! Do you really need it !

My answer

The question was" To what extent does the experience of Nick Hess and Foodeaze show that break-even analysis is of little value to an entrepreneur starting a new business? "

So my answer is :

Break-even means no profit and no loss .So to have the break-even can help you to do the budget, you can know how many products you have to sell to cover your total cost. So good for a start business to make a business plan .And for a starting business they want to have a break-even .Because if they have a break-even at the least they are not losing.

But still break-even not always can be analysed and considered because the break-even is considered as everyting are not change it just needs to think about the cost and the revenue so sometimes it is not a real figure ,sometimes are inaccurate.

So I think for a starting business break-even is helpful but the business can't compelly believe in break-even.

New starting...

Today is the first school day for us .I think everything isn't change just like before . And we will continue our normal lives.Day after day.

I feel a little disappointed about the situation now.I found I have lost the direction of my life.Even at the last I don't know what do I want to do ... That's really sad! I just know that I have to work hard if not I will achieve nothing.I clearly know that.But still I think no matter how hard am I there also are still have a big difference between me and a good university.Then don't say I haven't even start to work hard... So I feel bad about the future , sometime I can't really control myself.one of my disadvantages is I can't keep to do things. But really I had tried to work hard and I could see I was really improved because of that... But now I am lazy again...T.T... Poor me...

So now I have to try to control myself again ,put myself into study again,and try to do my best to work hard again. And get away from lazy and sad. I should be optimistic about my future ,now try to start to design my own life in the future,because I have to take charge for myself, because I am getting older... I have the responsibility to make me better and better.

So with the start of a new term I will start to be a new me. Of course I will be a good ,working hard and try to be a top student. Find my confidence back ,find my determination back. From now on. Come on ,I believe I can figure that out.

Anyway no matter what do I decide and what do I do now ,I hope I will not to repent !! So just to do what should I do! I know I can ,I know I will...!

The video of EF School

EF International language school has a lots of videos about it ,Let's choose the city which you and me are familiar and living in by now So yes it is OXFORD. It is a old city and with history also it is a university city.That's why it is small but it is famous. Actually yes it is a good places for study maybe....??!!!!
And let's concentrate on Ef of Oxford.The video for Ef of Oxford.

I think the video was made pretty nice.First the landscapes were very nice in it, and they all choose sunny day big sun and the big place of grass ,and also they added some thing about history in it that's fine,and the music it ok,also when the school was taken ,everything was very nice for example all the table were clean,looks like a very good enviorment ,and also they found some students to speak and to how good is the students in the school.that's a good idea because if a student say this is good is better than any advertise.And the accommodation looks were really good sun can come into the room and looks bigger than real I think.

So the video was emphasize oxford is close to London so good location ,so people may consider come to here. And for London the took some view at night and with beautiful light.

I think it is a good video for EF's image..!

National Income

National Income is income for a country. It is the money value of the flow of output of goods and services produced within an economy over a period of time.About national income I think we could know the living standard of the country.It can reflect the economy of the country.So let's seewhat can affect national income in our economy.

First of all I think a big part of national income is real GDP .So to make more national income one way is to increase real GDP ,and to increase GDP as we know we need to increase Aggregate demand So as we all know AD= C+I+G+(X-M) So we can increase real GDP by increasing each of them.

Measuring the level and rate of growth of national income (Y) is important to economists when they are considering:
The rate of economic growth
Changes over time to the average living standards of the population
Changes over time to the distribution of income between different groups within the population (i.e. measuring the scale of income and wealth inequalities within society)

National Output = National Expenditure (Aggregate Demand) = National Income
So if we could increase Aggregate demand then the national income will also increase and our economy will growth .The standard of living will be better.

Balance of trade deficit

Balance of trade is the relationship between export and import ,export minus import .So if export more than import it is a balance of trade surplus ,if the import is more the export there is a balance of trade deficit. Of course we know that a balance of trade deficit is not a good thing so we have to think about something to solve it.So then let's discuss about it .

There are several things we can do to reduce balance of trade deficit:

1. Increase interest rate ,If we increase interest rate people will save more and the consumption will fall So the aggregate demand of import will fall,So that's can help to solve the deficit.But there is also a negative thing it's the unemployment will rise.
2. Or what we could do is to decrease the interest rate to make the currency depreciate then the export will be more and the import will be less.But also if we do that we may also lose our revenue because the price of the important import will be increase.
3. And the last one is we should make our export more competitive : for example encourage investment , and increasing productivity , education /training,... So if our products are competitive the export will increase and the import will decrease. But still there also have a disadvantage it is those things will happen too slow to affect the economy.

Anyway we know we don't want a deficit in balance of trade ,if we have a surplus our aggregate demand will be more and our real GDP will increase and also our Economy will be healthier...

Aggregate Demand

Aggregate Demand is the total demand for a country's goods and services at a given price level and in a given time period.

The components of aggregate demand are :

C: consumption
I:investment
G:government spending
(X-M): Export - import

So there is a formula AD= C+I+G+(X-M) Okay let's have a look how do those factors affect the Aggregate demand and how does aggregate demand affect the real GDP.
If a increase in aggregate demand the real GDP will also increase.

Consumption-- spend by consumers.If the consumption is high means people spend a lot.If people spend more the demand of people will be bigger so the AD cure will shift to the right then the real GDP will increase .And what will affect people to spend?

1. real disposable income
2. Consumer expenditure and confidence
3. interest rate
4. wealth
5. inflation

Inveatment--spending on captial goods . There are more investment will have more aggregate demand .Because if the Aggregate demand is bigger will have more and more investment so obvious if more investment also will have more aggregate demand.

Government spending --spending by central government on goods and services. If the government spend more will help people a lot maybe less unemployment so people will spend more so the AD will increase and the real GDP will increase too.

(X export-M import ) ---Net export IF the export more than import called a trade surplus and the real GDP will increase if it is a trade deficit the AD will be smaller.

ALL in all if the AD cure shift to the right the real GDP will increase ...

BioKnob - Biometric Door Lock

certainly it is a new technology product .New design new idea...But still anyway let's look at the strength and weakness about it.

Strength: Making the security level higher and more convenient.Because it can identify the fingerprint and then you can open the door.So more security.And because you use the fingerprint to open the door so you do not need to have the keys.So if you don't have the keys you won't lost them and also you don't need to worry about someone will steal them ... And you can avoid a lot of troubles ,like if you lost the keys or the keys are stole you do not have to change the doors .And also you can use it to show off I think it is a new technology product so like a luxury :).

Weakness: Firstly it need your fingerprint for enter the door so may be it is easy to broken.And secondly I think this lock just can use in private place ,such as your own home or your room or the offices... because the maximum number of people is 100 .So if it is a door in some public place you can use the lock because more than 100 people need to use the door so ...And also you need to count who may need use the door... or something very bother...And still if the thieves want to go inside the door the can break the lock anyway.Because they have their own ways.

So I don't think it is a really good and useful product,because I think open the doors with the keys is a good way.

Taxes

About the taxation .

A wide range of taxes is levied by central and local government on firms and consumers... There are two main types of tax: One is direct tax the other is indirect tax.The definition of direct tax:one that taxes the income of people and firms and that cannot be avoided.Such as the income tax ,the corporation tax. And the definition of indirect tax :A tax levied on goods and services.For example VAT.

Let 's see what might affected by taxation. Firstly tax is in the budget of government it is a kind of government revenue.so I think if the government want to have more revenue they need to levy more tax.And if the tax more than the government spending it will be a government budget surplus.And make government richer.But you know taxation is a leakage,so in this situation it is not help to increase the real GDP.

But still it could affect our real GDP.For instance in the fiscal policies if we reduce the income tax people will have more disposable income so people will spend more.So that's will shift the AD cure to the right and it can reduce unemployment but increase the inflation.And tax is good for government to control something for example for the alcohol and the cigarette it's bad for our health so government decide put tax on those products like that ,and make the price of those products much higher,to contral the demand of the products.But we all know they are addict goods so the demand is inelastic but still put a tax may be can reduce some demand. And it is a indirect tax also ablout the VAT is almost the same thing...

And the tax on our income is called direct tax.If the income tax is higher our disposable income will be less so we will also spend less... So I already said that above... So a taxation sometime is a good thing sometime it a bad thing.Government have to consider about it very carefully.

Evaluate a product ------- TO DO TATTOO

" The perfect solution for your shoddy short-term memory!" This is what does the advertisement says for this product.Really I think so, I think maybe all of us had that experience which is for avert us do not to forget something and write the things down in our hands or somewhere else.And after that although we can remember that thing but we can't wash the notes completely.It is really awful...because the notes make you look dirty.But if we use this product called -- TO DO Tattoo ,we won't need to worry about this problem anymore.So let evaluate it:

Advantages of to do tattoo:

• It is a useful and Small product and it is very helpful for our lives.Really convenient and it looks very clean.And special,interesting.
• Also because it write with a special pen so easy to wash
• And it has many function -we can use it to make notes and make notes about our homework and for remember some important thing and also can do just as the picture before we go to the supermarket we can make a list of what do we want to buy.It very good isn't it? we won't forget things because of this tattoo.
• And it is looks much better than you write in your hands with a normal pen not looks mixed and dirty...
• And the pen is a skin-safe, washable-ink gel pen.

Disadvantage of to do tattoo:

• you have to take those two things with you wherever you go.If you don't you can just use the normal pen and write in the normal way.
• And I think you can't write something in very fast speed because it has grids so I think you need to keep that tidy.
• Instead of this way we can just go to find a small note book to remember everything.

But still I think it is a really good and useful product,maybe I would like to have one anyway it just cost 3.99 pounds. oo...

Today in our business lesson MR.Chris asked us to evaluate the BOSTON MATRIX ,I didn't even how to evaluate and what should I wrote... = ='' That's made me feel real unhappy... e...

So I think I need to practise more in the future and before the exam.I have to able solve all problems I wish~ So now I am trying to evaluate the product above,, I am not sure it is the way to evaluate it...but still I am trying... hehe hehe... ^_^ So please comment my post let me know how should I evaluate something... thanks...

Interest rate

Interest rate is decided by the bank of England .It is a very important rate in our Economic.It can affect many things.For instance it can determine people's choice which is save the money or not.And that can affect the consumption and then will affect the aggregate demand.--"A multiplier."So let's discuss more about interest rate.

In the monetary policy the main idea is decrease the interest rate to increase aggregate demand and to solve many problems.Let's see why interest can solve those problems.SO first let's think if we reduce the interest rate what will happen ? People will saving less because if the rate of interest is so low( for example if people save that money for a year then at the end of the year people like get nothing ,So why does people need to save their money? They will more likely to choose to spend them.That's why the consumption will goes up.And also if the inflation is high after one year the value of the money will be less so for these reasons people will spend more.So if the consumption goes up the aggregate will also goes up (because of AD=C+I+G+(X-M) ).So the real GDP will also goes up.And unemployment will be less. And Also if the rate of interest goes down it will be easier for people to borrow money so the investment will also increase... This is also a very good thing for our Economy.

On the other hand if we increase the interest rate people will save more so the bank will more money ... will be able to lent.But if people borrow money they also need pay the interest so people won't borrow much money anymore.

So now the interest rate is very low only a half percent.So obviously they want people to spend more and investment more but the problem is the bank do not have enough money to lent to people.So they had to print money,and then the value of money will lower.Is that a good way to solve the problems that now we have?... Maybe ...

OKAY ! That's all...

Exchange Rate

The definition of exchange rate: The price of one currency in terms of another currency or currencies.The exchange rate is very important for a country,it affect the trade in the country,for example import and export even the GDP of the country...

So let's have a look what may influence EXCHANGE RATE .

• Interest rate : because in a country if the interest rate is high more people will save their money also people from abroad will likely to save money in your bank because if they do they can get more interest( money) in the same period of time compare with if they save the money in another banks.So because of that the value of the currency of the country will increase because the demand of this currency increase.

So that's why interest can influence exchange rate.So after we know these we can try to analyse about some situations.If the exchange rate goes up the import will be cheaper and maybe will be more .export will be more expensive so maybe the buyers will be less.And if the exchange goes down import more expensive export will be cheaper.

So because of that, exchange rate also influence the trade balance.It can help to decide how many import should we buy and how many export we have to sell therefore we can have a balance surplus.

Okay that's almost all what I know about exchange rate . And I wanna say I did my work everyday.Except the blog because Just like unemployment I had done one blog about Inflation.So I didn't do it....So Mr,chris, Please don't say you will not do anything any more... = =

I have a question . ...

The question is if we are in a situation which is deflation ,So the value of our money will decrease right? And what about our export it will cheaper or more expensive? I thought about this question when I was doing the practise paper are given by MR.Chris and I am not sure about the answer so I need ask for help ... See I am working really hard now ... hahaha : ) 嘿嘿!

Supply-side policy

Supply-side policies are the policies designed to increase aggregate supply by improving the efficiency of labour and product market.I have motioned about supply-side policy yesterday I said it can solve both of inflation problem and unemployment problem in a long run.Now let's discuss more about it.

Supply-side policies aim to shift aggregate supply to the right and should :

• increase real GDP
• Reduce unemployment
• Also reduce inflation

Firstly we can think about some method about supply-side policies .For example :

1. To improve productivity like training and education .If the productivity ( output per worker in a period of time ) is increased the potential output of the Economy will rise which means it is a Economy growth so that's lead to a increase in real GDP.
2. To reduce in Job seeker allowance .This one is for reduce unemployment .Because there is a type of unemployment called "voluntary"(They are people who don't want to do a job they think the benefit is given by government is higher then the wage) So that why government should reduce the benefit to help to reduce the rate of unemployment and that's will also help us to increase our supply,because of more people are working.
3. To make the national minimum wage higher ,it is the same thing as reduce the allowance I think.Because of this more people will go to work. And there still have 6 more I won't explain each one...there are
4. Government assistance to a new firms
5. Reduction in direct taxes
6. Reduction in other benefits
7. Reduction in trade union power
8. Privatisation
9. Deregulation

So all in all the supply-side policy can help us to reduce unemployment and increase real GDP although I haven't got an example for reduce inflation but it is a true .Because if the the AS cure shift right the price level will lower... I think these are really good policies but they are long run policies to see the result we need time ...But they can solve our real problem and dispose unemployment and inflation these two negative correlation very well.

So I think supply-side policies are really useful!

Monetary Policy

Monetary policy is the policy that announced by central bank or government and make a decisions on the rate of interest ,the money supply and the exchange rate.It is as same as Fiscal policy they are all demand-side policies.So let's talk about it ,to see how it can affect our economic.

Now unemployment is a big problem for economic over the world so we should try to solve this problem first.What can we do ? Except what I have mentioned yesterday like increase government spending and reduce taxation we can also consider about the interest rate and the exchange rate .And monetary policies are include interest rate and exchange rate .So about the interest rate in monetary policies we can reduce the interest rate,because if the interest rate lower people will more likely to spend.So the consume will increase , also if the interest rate decrease it will be easier to borrow money from bank and hopefully the investment will also increase.Those two can send AD curve shift to the right . And the real GDP will increase.The most important is the unemployment will be less.

And for the exchange rate it is the same , because exchange rate and interest rate they have directly relationship,If the interest rate goes down the exchange rate will also decrease.Because if the interest rate is high in your bank people will save more so people from aboard will also save money in your bank, so the value of pound will increase ... if the interest rate goes down just the opposite way.

These policies are useful to reduce unemployment and increase the real GDP, but at the same time the inflation will be higher.This is a big problem we are facing.Because Inflation and unemployment have negative correlation ... So the government must think how to deal with these two problems.I think the supply-side policies can solve both two problems.So about the supply-side policies we are going to talk about them tomorrow.

Fiscal policies

Fiscal policy is the taxation and spending decisions of a government.And the key aim of Fiscal Policy is is to influence aggregate demand.Also there are two way can make the AD curve shift to the right , one is reduce tax .Because If government reduce tax people will have more disposable income so people will have more money to spend that mean the consume will be more then AD will increase.And the other one is increasing government spending .And we all know that AD= C+I + G+( X-M), so government spending is a component of aggregate demand .So if G increase so AD will increase too.

So is If the government's spending more then the taxation.AD shift to the right our Economy is growing and less unemployed people are there.But also the inflation will be higher and it is a budget deficit for a government.But still it is a injection .It's good for our Economic.

Until now In our Economic we just have learned that much And I know there still are a lot of thing maybe I haven't mention yet because I haven't read through that yet... so ~~ But today I have done a lot of things already... And what am I feeling now ? I feel not to bad even this is tired but I can feel achievable compare with I sit in front of the computer and play computer games.That's good enough for me because at the least I am giving a big challenge to myself .And I will keep doing this every evening.And at the last I will be successful I believe that. But what I am really want to say is to be a very good student is really hard. But still keep trying ....

And and by the way I had posted a comment in that blog called Economics and Business First-timer but I just can't see the comment.. = =..I don't know why , but really I did it ...

I find I like studying Economic

I think I am going to study Economic in the university . Not only because it is a good and useful subject but also because I am interested in it.I would like to think about the question with my brain.I am not always use my brain to think somethings.Not because I am stupid , because I am very lazy to do my works. And I also think to think about how to solve Economic problems is very interesting. So that's why I decide to study this subject in the future.

So could you suggest me some good universities for study Economic ? No matter in the UK or not.As long as it is a good and famous university. I will make a target to encourage my study.And don't worry about my English now , because I know I will continue improving! I will practise it everyday ,for example do a daily blog... and speak English with Mica. HAHA~ And I will concentrate on study Economic work harder then before on Economic.Because before I am just settle for finish all Economic homework,but now I can't just do that I must to do some extra things on Economic. Learn more , remember more and do more. And I will start to do one thing everyday just like I do blog everyday, It is start to read Economic text book.Step by step...Because except in the class when teacher ask us to read the book then I will read ,If not I will not read it . So you can also say I nearly don't read that book. So now a lots of definition that I do not know . But I will know soon~~ 吼吼...

Anyway all in all is I need a target... So please help... ^.^

^_^ Well done!

Say well done to myself because I did those five question all correct! HAHA~ surprising ...^ _^ I thought I did wrong some of them... But I didn't! Because when I did those questions I was very concentrated on them. hahaha...~~ Not happy but it is a good feeling than always make mistakes... So I think if I try to work harder I could make everything done.

And today is Friday, so just relax. : P

5 Economic question with perfect answer about Demand pull or Cost push Inflation.

Analyse the situation is Demand pull Inflation or Cost push Inflation?

1. Oil prices increase as OPEC (It is an organization of countries sell oil) cuts it's supply. It is a cost push Inflation.Because the price of oil is increase and as OPEC cuts it's supply So the supply shit left so it is a cost push.
2. Skills shortages in engineering industries lead to higher wages. This one is also a Cost push Inflation.Because the skills shortages so the company need to spend more money to engage people who have those skills.Which mean is the company have to give more wages for those people who have skills, so the cost of production rise.So the price of the products will increase .... Then we can know this is a cost push Inflation. Because it is not about the Aggregate Demand increase.
3. A wet summer raises the price of vegetables in the supermarket. This is a Cost push Inflation. A raises price of vegetables may because the demand is too high or the supply is too low .And in the question it mention it is a wet summer, I think probably means the supply affect by the weather and decrease.So I think this one is a cost push but I am not sure.
4. A rise in the world price of copper used in the telecommunications industry. It is a Cost push Inflation. Because the price of the world of copper used is increase .So because of that the supply will decrease .So it is a cost push.
5. The government announces a rise in the standard rate of Value Added Tax (VAT) from 17.5% to 20%. This is a Cost push Inflation. VAT it is a tax on production .So will cause the supply decrease so it is a cost push.

I thouhht I understood very well after the lessons this afternoon but when I come back home and think about them again I feel very confusing like now.... @_@....So that why I need to do lots of exercises... And I should not afraid to make mistakes ,I must learn from my mistake and then I will make a even bigger progress. ^_^...

something about the price of houses

We all know now we are in a recession a whole world recession.And the basically reason is the credit crunch.And it affective a lot of things.The housing market was the first area to be affected by the credit crunch as banks curtailed their lending, making it more difficult for buyers to get a mortgage.

So the price of houses will influence a lot of our economy.There is a graph can show us what the situation is now .WE can see it is falling now.So is that a good thing or bad thing?Because of the houses price is cheaper and cheaper people who do not have a house now may can buy one it is much cheaper now .It's that a true ? Actually not.Because houses are the things called wealth of course if people have more wealth they will feel more confidence.So if the price of the houses are high people will think they have a lot of wealth. So they will spend more .Therefore the consumption will increase,So the Aggregate Demand will also increase,therefore the GDP maybe also increase.But now our situation is completely opposite way.The price of houses lower and people become less confidence and people less likely to spend.Also the government want to encourage people to spend more they make the interest rate lower and lower.Now it is only 1%.So because of the recession there are more and more unemployment.And the price goes down and down , but people still not buy a lot.Cause they think the best thing they can do is keep the money in self's hand.So the problems will be bigger and bigger... worse and worse...

Anyway now we can not give any help to the government to solve those problems.Only thing we can do it is work hard in studying Economic,and may be we will help in the future. : )