).
Basket of Goods the PPP exchange rate calculations are also controversial because of the difficulties involved in finding comparable 'baskets of goods' to compare purchasing power across countries. People in different countries typically consume different baskets of goods; assign varying priorities to different goods; and even the goods available for purchase may differ across countries. Moreover, what is considered a luxury in one culture could be considered a necessity in another. The PPP exchange rate would consequently vary greatly depending on the choice of goods used for the index and makes it vulnerable to errors due to a deliberate or accidental bias in calculations by the choice of a differing bundle.

Quality of Goods: While comparing the prices of goods in different countries for the purpose of calculating PPP, the quality of goods is not taken into account. For instance, a hat is considered to be just a hat although the…...

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References

Neary, J.P. (2004). "Purchasing Power Parity." Prepared for Encyclopedia of World Trade Since 1450, ed. J.J. McCusker et al., New York: Macmillan Reference. Retrieved on February 29, 2008 at  http://www.ucd.ie/economics/staff/pneary/pdf/ppp.pdf 

Purchasing Power Parity" (n.d.) the University of British Columbia. Retrieved on February 29, 2008 at  http://fx.sauder.ubc.ca/PPP.html 

Purchasing Power Parities (PPP): Frequently Asked Questions." (2007). OECD: Statistics Directorate. Retrieved on February 29, 2008 at  http://www.oecd.org/faq/0,3433,en_2649_34357_1799281_1_1_1_1,00.html 

Reddy, S.G. And Pogge, T.W (2005). "How not to Count the Poor." Columbia University. Retrieved on February 29, 2008 at http://www.columbia.edu/~sr793/count.pdf

If the average person has two sets of clothes in one society and thirty in another, then the parity of price of clothes is hard to assess. It certainly cannot be assessed in terms of the cost alone or the number of outfits that a person "should" have (Taylor & Taylor, 2004). It might be set at the percentage of annual wages that a person spends on clothing, but even this can be very approximate because of different ideas of what constitutes a sufficient amount of a particular type of good needed for a satisfactory life.
To compensate for the fact that goods can and usually do have different values even when they have the same costs in different countries, economists can use a "relative" version of purchasing power parity in which no absolute value is attempted between certain goods or groups of goods and the only thing that is…...

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References

Burdett, K. & Judd, K. (1983). Equilibrium price dispersion. Econometrica 51(4): 955-69.

Country statistical profiles. Retrieved from  http://stats.oecd.org/Index.aspx?DatasetCode=CSP2010 .

Lamont, O.A. & Thaler, R.H. (2003), Anomalies: The Law of One Price in Financial Markets. Journal of Economic Perspectives 17: 191 -- 202.

Taylor, a. & Taylor, M. (2004) the Purchasing Power Parity Debate. NBER Working Paper No. 10607.

The policy prescription for the classical economist will not be to adjust inflation in order to deal with unemployment. In the short run, the classical economist may view that the Phillips Curve holds, but only until the point where workers become informed, at which point they would demand an increase in real wages. In today's information-rich economy, this time lag would be small to the point where a classical economist would not view inflation as a means to dealing with unemployment.
Keynesians believe that the Phillips Curve does hold and therefore government can trade inflation for unemployment. Setting interest rates low for high inflation will create economic expansion which in turn will reduce unemployment. The Keynesian would therefore adjust interest rates in order to deal with unemployment.

10. The real interest rate is 25% at equilibrium. The real exchange rate is 170. Consumption will be 700. Investment will be 125. Net…...

purchasing power parity (PPP) states that the exchange rate between two currencies is related to the relative prices in the two countries so that exchange rate-adjusted prices will be equal between the two countries (Norrbin, and Conover).
(Dryden, Reut, and Slater) further stated that, as purchasing power parities (PPP's) are nothing more than interspatial price indexes (by analogy with the inter-temporal price indexes such as consumer price indexes), the methodology, and theory underlying their calculation are identical to those of index numbers that are more familiar. Just as consumer price indexes can be used to compare purchasing power in the same place at different times, PPP's compare purchasing power in different places at the same time.

Consequently, a system of purchasing power parities was developed to reflect the rate at which one currency could be converted to another to purchase equivalent goods and services in both countries. This system not only…...

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Works Cited

Dryden, John, Katrina Reut, and Barbara Slater. "Comparison of Purchasing Power Parity between the United States and Canada." Monthly Labor Review 110.12 (1987): 7+. Questia. 3 Nov. 2005 .

Norrbin, Stefan C., and C. Mitchell Conover. "How Much Is Purchasing Power Parity Worth?." Quarterly Journal of Business and Economics 37.2 (1998): 49+. Questia. 3 Nov. 2005 .

International Finance
Purchasing Power Parity

Purchasing Power Parity (PPP), also known as the law of one price, operates under the assumption that product prices in one country translate into an equal price in another country. The price similarity assumption is used to gauge currency exchange rate pressures. If the law of one price is assumed, then the premise establishes that the relational value of currencies must converge to equilibrium. The equation expresses that any inequality creates an arbitrage opportunity until equilibrium returns.

At best, the PPP is a rudimentary tool for long-term pricing pressures, however the simplicity of the equation is part of its shortcoming. Annual price level comparisons by The Economist illustrate that even the most uniform of products, for example the McDonald's Big Mac, provides little proof for the reliability of the PPP. Comparing the 2010 to 2012 Big Mac Index illustrates that none of the countries compared demonstrated price parity…...

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Works Cited

Abdulnasser, H.J. (2009). The International Fisher Effect: theory and application. Investment Management and Financial Innovations, 6 (1), 117-121.

Chinn, M., & Frankel, J. (2005, Jan. 4). The Euro Area and World Interest Rates. Retrieved Aug. 23, 2012, from University of Wisconsin Web Site:  http://www.ssc.wisc.edu/~mchinn/intratepap7.pdf 

Pakko, M.R., & Pollard, P.S. (2003). Burgernomics: A Big MacTM Guide to Purchasing Power Parity . Retrieved Aug. 22, 2012, from The Federal Reserve Bank of St. Louis.:  http://research.stlouisfed.org/publications/review/03/11/pakko.pdf 

The Economist. (2010, Oct. 10). The Big Mac index An indigestible problem. Retrieved Aug. 23, 2012, from The Economist Web site:  http://www.economist.com/node/17257797

Global Imbalances in Trade and Purchasing Price Parity: Evidence From esearch and Current Trends
The recent global economic collapse threw into sharp relief the degree to which the world's economies are inextricably linked and co-dependent. A failure in one major economy will automatically and almost instantly have a negative effect on the other major economies of the world, and these effects trickle down in a substantial stream to all but the most isolated nations, and some shocks are even felt here (North Korea is an excellent example). One of the features of the current global economic situation that was arguably a prime contributor to the widespread and extreme nature of the recent recession is the imbalance that exists in trade relationships. These imbalances will be identified and further explored herein.

Global Imbalances: Current Trends and Potentials

One of the trade relationships most often cited in analyses of global imbalances is that which exists…...

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References

Antweiler, W. (2011). Purchasing Power Parity. Accessed 27 February 2011.  http://fx.sauder.ubc.ca/PPP.html 

CoinMill. (2011). Currency Converter: GBP to SEK. Accessed 27 February 2011.  http://coinmill.com/GBP_SEK.html#SEK=1 

Edwards, S. (2007) On Current Account Surpluses and the Correction of Global Imbalances. Accessed 27 February 2011.  http://papers.ssrn.com/sol3/papers.cfm?abstract_id=963737 

IIWMH. (2011). United Kingdom / Sweden. Accessed 27 February 2011.  http://www.ifitweremyhome.com/compare/GB/SE

Consumer surplus can be defined as the difference between what the consumers are willing to pay for the consumption of a commodity and the actual price of that particular commodity. In any given market, there are acceptable prices for each and every item and the acceptable quantities. Consumers in certain situations tend to drive the price of the commodities high by creating the imprecation that they are willing to pay more above the competitive equilibrium. Traders have made use of this concept by either segmenting the markets in terms of the purchasing power and practice price discrimination where the consumers are charged differently. In a monopolistic market, the traders capitalize on reducing the consumer surplus to maximize their profits. For instance, consumers can be willing to pay $120 for a commodity valued at $100 thus the consumers surplus is $20 (Tajvan Pettinger, 2008).
Consumer surplus as a concept can be used…...

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References

Tajvan Pettinger, (2008). Definition of Consumer Surplus. Retrieved July 30, 2012 from  http://www.economicshelp.org/blog/188/concepts/definition-of-consumer-surplus/

The important point is that there are various processes necessary to creating the product or service, but that not all of them add value. In the case of the piano manufacturer, the raw materials are a significant part of what creates value for the organization, since the quality of the raw materials determines the quality of the final product. In the case of the house-washing service, the materials needed are consumables and while they are necessary, they are not critical in creating value for the organization. These differences mean that purchasing is more important to the piano manufacturer than to the house-washing service. A difference in purchasing will also occur because the quality of the raw materials is significant for the piano manufacturer. Schermerhorn (1989, p. 498) notes that "quality comes from defect prevention, not defect correction." For the piano manufacturer, purchasing would be likely to involve demanding a…...

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References

Porter, M. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. New York: The Free Press.

Schermerhorn, J.R. (1989). Management for Productivity. New York: John Wiley & Sons.

Purchasing and Supply Chain Management: Apple
Apple Inc. (previously Apple Computer, Inc.) is one of the largest American multinational companies that designs and markets consumer electronics, computer software and personal computers. The company began in the business of personal computers but has expanded into a giant of global reach (lLinzmayer 1999). Currently, they are best known for McIntosh computers, the iPod, iPhone, and iPad. They are the proprietors of the Mac OS X operating system and the iTunes media browser. They offer the iLife suite of multimedia and creativity software, iWork productivity software, and Aperture for professional photographers. Their current list of offerings is extensive and includes other applications for specific industries or uses.

Apple's current distribution system includes a chain of their own retail stores in ten different countries around the globe. They also have an online store where they hardware and software products are sold. Apple's major competition is Microsoft.…...

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References

Apple Inc. 2009. Suppler Responsibility. 2010 Progress Report. Available at: <   > [Accessed May 18, 2011.}http://images.apple.com/supplierresponsibility/pdf/L418102A_SR_2010Report_FF.pdf .

Frommer, D. 2011. Gene Munster: Apple Supply Chain Temporarily Affected By Japan Earthquake, But "Demand Stronger Than Ever" (AAPL). March 17, 2011. SF Gate. Available at: <   >. [Accessed May 18, 2011].http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/03/17/businessinsider-gene-munster-apple-supply-demand-2011-3.DTL 

Linzmayer, Ronald W. 1999. Apple Confidential: The Real Story of Apple Computer, Inc.. No Starch Press. Available at: <   > [Accessed May 18, 2011]http://extras.denverpost.com/books/chap0411h.htm .

Rassweiler, A. 2011. iSuppli press release: Japanese Earthquake Poses Potential Supply Problems for iPad 2, March 17th 2011. iSupply. Available at: <   >. [Accessed May 18, 2011]http://www.isuppli.com/Teardowns/News/Pages/Japanese-Earthquake-Poses-Potential-Supply-Problems-for-iPad-2.aspx 

The crux of this challenge however is the distribution and fulfillment system, an area Amazon.com for example had streamlined for low-quantity orders before ever launching their website and online store. This equates to what Elberse and Oberholzer-Gee (2006) mention as the ability of online retailers to in effect feed the creation of long-tail markets by representing thousands of products online and fulfilling them through synchronized order management and supply chain systems.
According to Newman (2005) the network centricity of the Power Law is a contributing factor to its efficiency. From the standpoint of online retailers, this network effect is illustrated by the level of supply chain integration, synchronization, and the use of real-time shared data to create stronger hub-like efficiencies within a Power Law-dominated industry. One assumption and area of future research is in the definition of velocities of information throughout a Power Law network. Figure 2 shows a graphical…...

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References

Columbus (2001) - Defining Your Direction in Guided Selling. AMR Research. November 1, 2001. Louis Columbus. Accessed from the Internet on September 24, 2006 at http://lwcresearch.com/filesfordownloads/DefiningYourDirectioninGuidedSellin.pdf

Elberse and Oberholzer-Gee (2006) - Superstars and Underdogs: An Examination of the Long Tail Phenomenon in Video Sales. Harvard Business School Working Paper Series No. 07-015. September 5, 2006

Newman (2005) - Power laws, Pareto distributions and Zipf's law. Contemporary Physics. Volume 46, Number 5, September 2005. Pages 323-351.

eviromental analysis, Porters powers SWOT analysis sbout a project . My project open a retailing medical company buys locally import medical surgical consumables . The company manufacture prodect, copmany import consumables saudi arabia resell local market, Also company buy medical surgical items local market bulk quantities factories resell .
Medic etailers is intended to be a large organization that will deal in the sale of medical supplies to consumers in Saudi Arabia. Indeed, doing business in the medical field is usually intensely involving given that the area is extremely regulated in order to ensure that standards are kept high. Similarly, the regulatory authorities are generally ultra-fast in closing down any businesses. Nevertheless, Medic etailers intend to come up with a precise elucidative process that will ensure high levels of hygiene and efficiency in its operations. The business will be about the importation of medical and surgical equipment from foreign countries…...

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References

Drucker, P.F. (1999). Management: tasks, responsibilities, practices (1st ed). New York: Harper & Row.

Freeman, R.E. (2007). Strategic management: a stakeholder approach. Boston: Pitman.

Huggins, R. (2011). Competition, competitive advantage, and clusters: the ideas of Michael Porter. Oxford: Oxford University Press.

Owens, R.N. (2004). Introduction to business policy. Homewood, Ill: R.D. Irwin.

Unfortunately many aspects of modern American society threaten individual liberties. For example, the disparity between the rich and the poor in American society impacts the level of freedom enjoyed by certain segments of the population. The "freedom" to pay workers a pittance in order to increase profits in a large corporation is therefore not really a "freedom" at all. Therefore, it is up to the government and to the people who support it to ensure that the rights and freedoms of all persons are preserved. Similarly, when religious institutions hope to influence public policy, they inadvertently infringe on the rights and freedoms of the American people. Even if well-meaning, religious institutions cannot bind people in a free society to do what they do or believe what they believe. Morals are a reflection of common sense and education, not of specific religious values. Therefore, the government cannot bend its legislation…...

How Has Globalization Changed International Politics?IntroductionGlobalization is defined as an intensification of cross-border interactions and interdependence between countries (Oldemeinen, 2011). In other words, it is a process by which the social, political, and economic world order depends upon integration of states around the world. It is not, however, viewed as a positive development by all. As odrik (1998) points out, the process that has come to be called globalization is exposing a deep fault line between groups who have the skills and mobility to flourish in global markets and those who either dont have these advantages or perceive the expansion of unregulated markets as inimical to social stability and deeply held norms (p. 2). Globalization, therefore, is not necessarily viewed as a win-win for all by all. Indeed, the Brexit vote in the UK to leave the EU has been described as a referendum against globalization (Colantone & Stanig, 2016).Yet,…...

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ReferencesBaars, G. (2019). The Corporation, Law and Capitalism: A Radical Perspective on the Role of Law in the Global Political Economy. Brill.Bakan, J. (2003). The Corporation. NY: Free Press.Colantone, I. & Stanig, P. (2016). The real reason the UK voted for Brexit? Jobs lost to Chinese competition. Retrieved from   S. (1993). The clash of civilizations? Foreign Affairs, 72(3), 22-49.Mukwarami, S., Mukwarami, J., & Tengeh, R. K. (2020). Local economic development and small business failure: the case of a local municipality in South Africa. International Journal of Business and Globalisation, 25(4), 489-502.Oldemeinen, M. (2011). How has globalization changed the international system? Retrieved from  https://www.e-ir.info/2011/07/27/how-has-globalisation-changed-the-international-system/#_ftn1 Rodrik, D. (1998). Has globalization gone too far?. Challenge, 41(2), 81-94.Science Direct. (2004). International politics. Retrieved from https://www.sciencedirect.com/topics/social-sciences/international-politicsSeren. (2019). Recycling rare earth metals is key to sustaining direct drive turbinesRetrieved from  https://www.windpowerengineering.com/recycling-rare-earth-metals-is-key-to-sustaining-direct-drive-turbines/ Sorkin, A. et al. (2022). Wall Street warns about the end of globalization. Retrieved from  https://www.nytimes.com/2022/03/24/business/dealbook/globalization-fink-marks.html Vietor, R. H., Rivkin, J. W., & Seminerio, J. (2008). The offshoring of America. Harvard Business Review, 9-708-030.https://www.washingtonpost.com/news/monkey-cage/wp/2016/07/07/the-real-reason-the-u-k-voted-for-brexit-economics-not-identity/ Huntington,

Power critical understanding difficulties managers confront seeking manage change'. Discuss. This undergraduate Essay (Level III) If resources reading list I
Power is critical to understanding the difficulties managers confront when seeking to manage change

Long gone are the times when firms would operate solely to generate profits and this represented their stated mission. Today, economic agents across the globe peg their success not only to financial results, but also to their ability to serve the various needs of the multiple stakeholder categories. In other words, while the final objective is that of registering profits, the aim is attained through a combination of strategic efforts targeted at serving the stakeholders.

For instance, the employees are the most valuable organizational assets and they are treated as such. The customers are not the forces purchasing whatever the company produces, but they represent the force telling the company what to produce. The technologic community is adding…...

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References:

Clegg, S., 1989, Frameworks of power, SAGE

Foucault, M., 1982, Afterword: the subject and power, University of Chicago Press

Heathfield, S.M., Resistance to change definition, About,   last accessed on February 14, 2012http://humanresources.about.com/od/glossaryr/g/Resistance-To-Change-Definition.htm 

Jermier, J.M., Knights, D., Nord, W.R., 1994, Resistance and power in organizations, 1994, Routledge

Golden Arches
Materials Cost Policy and eduction of Materials Costs

McDonalds seeks to improve the cost of its materials through two different means. The first is that the company uses its bargaining power to get the best prices of suppliers Typically, this means that the suppliers are very large scale operations and provide goods for a large region. Switching from buns to baguettes for the French market would jeopardize some of that scale, because the baguettes would only be produced for the French market, whereas buns might be produced from half of Europe. Where the company can drive down food costs, this can affect the bottom line (Baertlein & Klayman, 2009).

McDonalds also controls materials costs by managing its inventories carefully. The company seeks to minimize waste while maintaining adequate supplies to meet customer needs. Goods are only delivered 3-5 times per week, and this includes bread products. There is no just-in-time or…...

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References:

Baertlein, L. & Klayman, B. (2009). Cost controls boost McDonalds' profit. Reuters. Retrieved November 14, 2013 from  http://www.reuters.com/article/2009/10/22/us-mcdonalds-idUSTRE59L2UK20091022 

Gale, S. (2006). McDonald's USA: A golden arch of supply chain food safety. Food Safety Magazine. Retrieved November 15, 2013 from  http://www.foodsafetymagazine.com/magazine-archive1/februarymarch-2006/mcdonalds-usa-a-golden-arch-of-supply-chain-food-safety/ 

McDonalds. (2008). Stock control at McDonalds. McDonalds Corporation Retrieved November 14, 2013 from  http://www.mcdonalds.co.uk/content/dam/McDonaldsUK/People/Schools-and-students/mcd_stock_control.pdf 

Reuters. (2013). McDonald's may raise price of $1 McDouble due to rising beef costs. Huffington Post. Retrieved November 15, 2013 from  http://www.huffingtonpost.com/2013/02/01/mcdouble-price-mcdonalds-beef-costs_n_2595696.html

There have been many studies that have looked at the impact of popular media on children’s behavior.  The general consensus is that children are significantly impacted by media exposure.  Of course, this impact increases when the media in question is an advertisement; the whole purpose of advertising is to bring about a targeted change in the audience.  The goal of advertising is to inspire the target audience to want to purchase the goods or supplies.  Children’s advertising appears to successfully accomplish that goal; studies reveal that after being exposed to advertising children....

1. The Impact of Inflation on the Economy

2. Causes and Consequences of Inflation

3. Controlling Inflation: Policy Options

4. Understanding the Relationship Between Inflation and Unemployment

5. Inflation and Its Effects on Different Socioeconomic Groups

6. The Role of Central Banks in Managing Inflation

7. Inflation and Interest Rates: A Complex Relationship

8. Inflation and the Purchasing Power of Currency

9. Globalization and Inflation: How are they Related?

10. Inflation in Developing Countries: Challenges and Solutions
11. Hyperinflation: When Prices Spiral Out of Control

12. Inflationary Expectations: How Public Perception Influences Economic Trends

13. The Psychology of Inflation: Why Do People React the Way They Do?

14. The Politics of Inflation: How....

1. The Importance of Understanding the Value of Money
2. Money: More Than Just a Currency
3. Unveiling the True Worth of Money in Today's Society
4. How the Value of Money Shapes Our Perspectives
5. The Impact of Money on Our Daily Lives
6. Exploring the Relationship Between Money and Happiness
7. The Influence of Money on Decision Making
8. Money Management: Key to Financial Success
9. Leveraging the Value of Money for a Brighter Future
10. The Significance of Teaching Children About the Value of Money
11. As inflation erodes the purchasing power of money, individuals may find that....

Impact of Inflation on the Purchasing Power of Money
Inflation is a sustained increase in the general price level of goods and services in an economy over time. It erodes the purchasing power of money, which is the amount of goods and services that can be purchased with a given amount of money.
How Inflation Impacts Purchasing Power
Inflation reduces the purchasing power of money by increasing the prices of goods and services. As prices rise, the same amount of money can buy fewer goods or services. For example, if the inflation rate is 3%, a loaf of bread that cost $1 last....