BMW - Bavarian Monopolist at Work
BMW have been fined SFr156m ($163m) by Swiss Competition Authorities for restricting the supply of BMW and MINI cars to Swiss purchasers.
read more...»Unit 2 Macro: UK Trade in Services
A revision blog on UK overseas trade in services
read more...»Unit 2 Macro: Migration and the UK Economy
A revision blog on the economic impact of migration on the UK economy
read more...»Unit 2 Macro: The Importance of Productivity
Productivity is a key measure of supply-side economic performance and labour efficiency.
read more...»Unit 3 Micro: The Dawn of a Shareholder Spring?
Here is a pertinent and timely resource from Channel 4 news on overcoming the principle agent-problem. Are shareholders in some of our leading companies becoming more active in holding senior executives to account for poor performance? or more concerned with their own shareholder value at a time when CEO earnings continue to grow well above inflation? I own plenty of shares but have never once been to a company AGM or exercised my right to vote. Could planned legislation further embolden activist shareholders and shake up boardrooms across the UK? More on the debate over the shareholder spring here See also BBC news: FTSE 100 bosses’ pay ‘rose 11% last year’ And: FTSE 100 bosses’ pay unrelated to results, report says (BBC news, May 2012)
read more...»Made in China - but not quite so cheaply…...
How long can China keep its comparative advantage of cheap production for manufacturing goods? We are aware of rising inflation in China which is eroding their advantage, and here is an article about a UK firm which manufactures cushions, some from a factory in Kirkby on Merseyside and some from his factory in the Zhejiang province in China. The story comes from a programme ‘The Town taking on China’ to be shown on BBC2 at 8pm tonight - and subsequently on i-player.
read more...»Competition authorities doing more harm than good?
There have been several examples in the news recently of competition authorities acting in ways which may actually ultimately lead to less competition in several different industries. Read on to find out more.
read more...»Unit 1 Micro: Climate Change Policies - Finding the Right Mix
There are many different market failures when it comes to understanding some of the key environmental problems and challenges of the age. Addressing, attacking and correcting for complex and multiple market failures requires pointing to different policy instruments / interventions. Together can they make a sizeable difference to consumer and business behaviour and lead us away from a “business as usual” approach?
read more...»Unit 1 Micro: End of the Road for the Lada
Boasting a steering wheel that doesn’t steer, an in car radio that is an optional extra and acceleration powers that - on a good day - can take you from 0 to 60 in less than three minutes, the Lada has for a long time been a figure of fun in global motoring circles. But production is coming to an end following a collapse in sales. As is often the case, news of the demise of the Lada has prompted increased interest among younger urban consumers whose DNA is to go against the grain and drive something that is sturdy, mercifully free of corporate design features and most of all, tremendously cheap.
read more...»Unit 1 Micro: Adecco and Monopsony Power
Here is an example of monopsony power in the labour market and the risk of exploitation of employees. Britain’s largest recruitment agency, Adecco, is being accused of short-changing temporary staff by rounding down their holiday pay. Hundreds of thousands of people are employed by contract recruitment businesses - this is a timely reminder of the importance of employment legislation as a means of protecting the pay and conditions of people in vulnerable jobs.
read more...»Unit 3 Micro: The Third Industrial Revolution
This is well worth watching! It is an 8 minute discussion from the Economist which examines what is being called “The Third Industrial Revolution” - based around the digitisation of manufacturing processes. Concepts such as 3d printing and advanced robotics are discussed, as are concepts such as competitiveness, productivity and product personalisation. One possible consequence of these changes might be that high quality manufacturing may begin to move back from lower-wage economies such as China and back to economies like the USA.
read more...»Unit 3 Micro: Key Diagrams for Business Economics
Here is a revision download containing some key theory diagrams and accompanying explanation for topics in business economics / theory of the firm / market structures.
Key_Diagrams_A2_Business_Economics.pdf
Unit 3 Micro: Revision Game on the A-Z of Micro
Here is an A-Z quiz where you type in the answer to 26 concepts on the A2 micro course. Created using Zondle this game uses the Bubble Shooter game. Details below
read more...»Royal Mail’s refusal to supply
Here is the sub-heading from the report in today’s Daily Telegraph: “Royal Mail is limiting the number of stamps it supplies to retailers now to ensure it profits from record price rises later this month.” The report goes on “Royal Mail confirmed on Thursday that it had imposed a cap on the number of stamps every shop could buy. Retailers said it was refusing to restock them when they exceeded their allocation.” Ian Murray, the shadow postal affairs minister, says that he will be writing to regulator Ofcom about this rationing of supplies.
read more...»Unit 3 Micro: Revision on Nationalisation
Here is a revision presentation for A2 microeconomics on the economics of nationalisation. This is the process of taking an industry or assets into public sector ownership by a national government it raises important issues concerning economic efficiency and welfare in different markets.
read more...»Unit 1 Micro: Ban on cigarette display advertising
In a fresh move to reduce consumption of cigarettes, legislation has come in force banning the displays of cigarettes for sale in large retail stores. The display ban will apply to shops of more than 280 sq m (3,014 sq ft). Newsagents and small stores can display cigarettes until 2015, giving them time to refit shelves and cabinets.. It is part of the armoury of interventions that have been tried over the years to change consumer behavioural - from real terms increases in cigarette taxes to bans on advertising and ever-stronger advertising and health campaigns. The focus of the ban is to influence younger smokers by removing cigarettes from point of sale display - will it be effective?
This news report below from Al Zajeerah looks at the new measure
read more...»Unit 2 Macro: Skills Shortages Hold Back Recovery
Here is a superb news report from Channel 4 news about the shortage of skilled workers in the North East of England (an area of high unemployment). Nissan this week announced a big new investment in car making at their ultra-high productivity plant in Washington, Tyne and Wear. But many of the manufacturers along Nissan’s supply chain are finding it tough to get enough skilled people coming througth to make realistic bid for the orders that will come from Nissa. Some businesses are having to turn down contracts because they dont have the extra workforce to cope with the higher volumes of businesses.
Skills shortages are restricting the growth of many small and medium sized businesses especially in manufacturing. Little wonder that Nissan is working very closely with Gateshead College to run an apprenticeship scheme - an example of external economies of scale in action.
read more...»Unit 3 Micro: Quiz on Business Costs and Profits
Here is a twelve question quiz on business costs, revenues and profits. In the quiz simply type in the answer - correct answers take you straight into a Zondle game!
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Unit 3 Micro: Quiz on Market Structures
Here is a 12 question quiz on aspects of market structures such as monopoly created using Zondle - type in the answer to a selection of key terms
read more...»Unit 3 Micro: Evaluation Question on Supermarkets
Here is a presentation focusing on an evaluation question on supermarkets. The question is “Evaluate the factors that affect the profitability of the major food retailers in the UK.”
read more...»Unit 2 Macro: Globalisation and the Growth of Ports
Ports are a key part of the critical infrastructure of a country engaged in trade with the rest of the world. This BBC news video looks at the rapid expansion of container ports in the Gulf - facilities that offer a vital link between Europe to the west and China and India to the east.
read more...»Unit 3 Micro: Revision on Entry Barriers
Here is a revision presentation focusing on different entry and exit barriers in imperfectly competitive markets.
Entry barriers:
* Block potential entrants from making a profit
* Protect the monopoly power of existing firms
* Maintain supernormal profits in the long run
* Barriers to entry make a market less contestable
Unit 3 Micro: Revision on Price Discrimination
This is an updated revision presentation on price discrimination in markets designed for A2 micro students.
read more...»Unit 3 Micro: Revision on Business Objectives and Pricing
This blog links to a revised A2 micro revision presentation on business objectives and pricing.
read more...»Unit 3 Micro: Revision on Contestable Markets
This blog links to an updated revision presentation on the economics of contestable markets.
read more...»Unit 3 Micro: Revision on Monopoly Price and Output
Show and explain how a monopolist maximises profit in a market
read more...»Unit 3 Micro: Monopoly and Economic Welfare
Analyse the equilibrium price and output equilibrium under monopoly and perfect competition. Show and explain the deadweight welfare loss under monopoly and consider when a monopoly might be more productively efficient than a competitive market.
read more...»Unit 2 Macro: Inflation and the Business Environment
This is a new revision presentation which provides an overview of inflation and the business environment. The measurement and causes of inflation are outlined together with notes on the potential impact of inflation on business.
read more...»Unit 2 Macro: How the Economic Cycle affects Businesses
This updated revision presentation guides students through the topic of business cycles and economic growth. It looks at issues such as:
- How economic growth is defined and measured
- The nature of the business cycle
- How different kinds of businesses are affected by the economic cycle
- The Credit Crunch
Unit 3 Micro: Revision on Scale Economies and MES
What is the connection between economies of scale and the minimum efficient scale?
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