Business Articles- Term Paper for Econ 500

PRINCIPLES OF ECONOMICS ECON 5031 Jul/Aug 2007 Instructor Dr. Hi? n Van Tr? n, prof Requirement The paper must be between 3 to 5 pages long and double-spaced with the font size of 12 and 1-inch margin for both four sides. The focus of the paper is on a survey and analysis of macro scotchs and micro sparings-oriented business articles that have a bun in the oven been published within the past two months in non-Vietnamese business magazines/journals/websites concerning a non-Vietnamese event.Each of the chosen articles must be meter words or much and your paper should c everywhere three articles of non-related events. For to each single article, your write-up must include the source (magazine/journal/website name, publication succession, author, and page number), a brief summary of the article, the embedded macrostinting concept(s), and your thoughts on why you chose this article. The end of this essential course is to understand distinctly events happing all over the creat ive activity with the circumstance of microeconomics and macroeconomics.Based on this goal, during the course, the courses knowledge helps me crystalise the worlds economy, the way how sign of the zodiacs and households interact together in the combative commercializeplace as well as the ways how the giving medication adjusts a inelegants economy through governanceal policies. In the term papers content, I would like to choose three various articles which analyze three different events of microeconomics and macroeconomics to have a thorough hold the economic foundation. Article 1 _ Russias economy way out date stately, 24th, 2007. From the Economist Intelligence Unit Views Wire.Source http//economist. com/daily/news/dis revivestory. cfm? story_id=9706752 heavyset To throttle the fall in the roubles value against the dollar of around half of a percentage point, the Central Bank of Russia sell up to US$4bn on Aug, 21st. Due to the roubles dip, impertinent appargonlor s have liquidated their rouble positions in the wake of turmoil in the US subprime mortgage market and potentially a change in image towards risk on the part of investors. That the spread on the benchmark 2030 Eurobond had been insurrection since June made the biggest decrease of RTS Index, gold and notes reserves during that time.Regardless of the footling term movements in currency and bond markets, the Russian government keep to run a healthy fiscal surplus, which has significant exposure to the US subprime mortgage market. In fact, Russia has to face the following difficulties. Firstly, although the authorities have tended to respect a competitive convert-rate over the price stability in late(a) years, the importance accorded to a stronger rouble as a curb on pompousness has increased this year. The reduction or elimination of upwards ram on the rouble therefore it presents a problem for the authorities.Secondly, Russias corporations cannot be as sanguine as the governm ent about the rise in spreads and the reduction in risk appetite on part of investors. stomach nevertheless not least, that numerous issues were delayed, cancelled or scaled rearwards makes Russian firms eager to generate finance for expansion and raise their indite oversea. If this is the worst of the subprime crisis for Russia, the country will have got off lightly. Embedded economic concepts Central bank A government monetary authority that issues currency and regulates the supply of credit and holds the reserves of other banks and sells new issues of securities for the government. Stock market An exchange where auspices trading is conducted by professional stockbrokers. Financial market financial institutions through which savers can directly provide funds to borrowers. shackle a certificate of indebtedness. Stock a claim to partial possession in a firm. Exchange rate The charge for exchanging currency of one country for currency of another wherefore am I intrigued b y this article? In the macroeconomics, the government policies play a very authoritative role to curb the currencys value and to dominate the inflation as well.In this article, the Russian government had an active policy to curb the fall in the roubles value against the US dollar. even the global market is usually changeable, Russia cannot be out of the markets affects and has to face many difficulties as well. To solve the problem, the government must have flexible regulations, rules and laws in the proper time to control the currencys value, inflation and the economys growth rate. In fact, the Russian government has to do much things to bypass the subprime crisis.Article 2 _ Chinese try to buy a U. S. shaping machine of disk drives Publication date August 25th, 2007. By JOHN MARKOFF (New York Times) Source http//www. nytimes. com/2007/08/25/business/worldbusiness/25drive. hypertext markup language? _r=1&adxnnl=1&ref=business&adxnnlx=1188035759-/R6wMhYdw1xWl4NHKbqKUA&oref=slogin Summary A Chinese engineering company has expressed interest in buying a maker of computer disk drives in the United States, raising concerns among American government officials about the risks to national security in stirring high technology to china.The transfer of advanced disk drive manufacturing technology would give the Chinese a major leg up in competing in information technologies. China, however, unperturbed lags in basic manufacturing skills like semiconductor design and manufacturing. In fact, the Chinese government faces a quandary how to improve yields on its contrasted exchange reserves as well as how to encourage companies and even individuals to invest more overseas, as a way to offset some foreign investment pouring into China.Yet the Chinese companies investment for an American sophisticated company is blocked for political reasons. Basically, Washington so distrusts China, therefore they be trying to throw roadblocks in the path of its economic development s. Embedded economic concepts Foreign exchange the system by which one currency is transfer for another enables international transactions to takeplace Import goods produced abroad and sold domestically Export goods produced domestically and sold abroad shell out surplus A quantity that a country gains from trade. Why am I intrigued by this article? In chapter 17, we can see that technologies play an important role to improve a countrys productivity. If China wants to get the trust from Washington, in general, and American high-tech companies, in particular, the Chinese government must have good policies in the information technology anti-piracy and come to terms in a extremely national security when receiving the transferring high technology from the US.In addition, the policies which encourage Chinese companies to invest more oversea in order to balance between the inflow and the bounce investments in China is an excellent example of regulating a countrys macroeconomics. Ar ticle 3 _ To Woo Europeans, McDonalds Goes Upscale Publication date August 25, 2007. By JULIA WERDIGIER (New York Times) Source http//www. nytimes. com/2007/08/25/business/worldbusiness/25restaurant. html? _r=1&adxnnl=1&oref=slogin&ref=worldbusiness&adxnnlx=1188088657-Xu2NFGoMNso7mpC3w6pNjA SummaryWith the innovation aiming to create a more relaxed experience in a sophisticated atmosphere, McDonalds plans to discharge hundreds of millions dollars remodeling almost its restaurants and spreading its hegemony in Europe. The changes are paying off when the gross revenue at Europes 6400 restaurants increase 15%, to $4. 1 billion, compared with 6% growth in the US, where McDonalds has 13,800 restaurants and sales totaled $3. 9 billion. Moreover, that McDonald highly adapts its menu to local tastes gives incentives to customers and makes them more enjoyable with its restaurant chain passim the Europe.It has a broad appropriate diversification in design and tastes, which are appealing and suitable for each locations and clientele. Remodeling is also catching on in the United States in the last two years, though less extensively than in Europe, but it seems to be less efficient in where customers choose to eat in their cars or take their food home. Embedded economic concepts Total revenue the amount paid by buyers and received by sellers of a good, computed as the price of the good times the quantity sold. meshwork total revenue minus total cost. Incentive something that induces a mortal to act. Competitive market a market with many buyers and sellers trading selfsame(a) products so that each buyer and seller is a price taker. Why am I intrigued by this article? Different from the two articles above, this article is about the microeconomics in term of interacting between a global firm and customers. In chapter 4, we study the factors that affect the demand curve, including the price, income, tastes, and expectations.In fact, the most arouse thing when I read t his article is that McDonalds has a spotless diversification strategy not only in design but also in tastes and expectations, which is suitable for each appropriate location passim the Europe. It makes sense when giving incentives to customers to be more enjoyable in special K fast food like hamburgers, French fries or caffe lattes. As a result, it makes the increase in McDonalds products demand all over the world. With this innovation, McDonalds is doing a good job in term of luring more customers and raising its revenue in the global competitive market. pic