Economics Commentary Essay

The article concerns the price war in the airline business in China. Air companies sell tickets at lower than cost price to drive out competitors. The Civil Aviation Administration of China (CAAC) wants to prevent this and will set a price floor for seats on 699 flights. In this commentary I will explain the situation and discuss the consequences of this issue. Air companies try to attract the necessary numbers of passengers to stop their routes from being canceled by the CAAC. Offering discounts is one of the ways to attract people to buy air tickets. In this case, discounts of 70 to 80 percents had been offered to consumers over the last few months, while a regulation made by the NDRC and CAAC in 2004 states that airlines should not sell tickets at less than 45 percent of the nominal price. Although this regulation, China Eastern continued the price war by still giving these huge discounts which were meant to provoke counterattacks from other airlines. Firms usually want to determine prices to maximize profits and one option is predatory pricing. Predatory pricing means that firms cut prices below costs to drive out competitors. As soon as firms have driven out competitors, obtained a bigger market share, they raise the prices again. Predatory pricing makes the industry more concentrated, because there a fewer firms in the market. With other words, the market becomes less competitive and more monopolistic. The CAAC tries to prevent this in order to keep the air business competitive. Options are price floors, as will be explained later. However, travelers are against the idea, as price wars are profitable for them in the short run. They can buy relatively cheap tickets now. Though the tickets will be more expensive in future, in the long run. This happens when the firms have driven out their competitors and have raised their prices again. Then producers will charge higher prices than the normal price and the consumers would therefore be worse off. Although this predatory pricing , also rumors about government intervention made consumers already unhappy. Some insiders have implied that China Eastern used funds injected by the government to subsidize its losses on ticket sales. The reaction of the CAAC was that the government had injected several billion yuan into China Eastern to maintain its daily operations, but not so it could cut ticket prices. The reaction from the travelers on the implementation of a price floor was also negative. A price floor means that a government introduce a minimum price that can be charged for a product. With an implementation of a price floor, the demand will decrease from Q0 to Qd and the price will increase from P0 to Pmin. The firms which are still in the industry will now charge higher prices at lower outputs. They pay more and get less. If the CAAC decides to implement this price floor it causes that there will be a excess supply, the area Pmin-(Qd-Qs) . The costs can be higher than the profits and therefore producers will leave the industry. This will lead to a shift in supply and to less excess supply in the long run as shown in figure 2. Secondly there is a problem with unemployment. By implementing a price floor, unemployment will occur. This is because the supply will shift to left in the long run. There are fewer suppliers and therefore people will get unemployed. People who were working in the area Qd-Q0 will lose their jobs. On the other hand, people who are working in the area 0-Qd will keep their jobs and will gain more. Consumers are obviously not happy with this and some people reacted with statements as, ‘We don’t want to pay extra just to fund some senior manager’s salary’, as mentioned in the article. Predatory pricing is a difficult task to prevent, since price floors do not benefit consumers neither in the short run nor in the long run. The CAAC probably needs to find other regulations and restrictions manners to prevent this ‘malicious competition’.

Wage Determination in the UAE Essay Example | Topics and Well Written Essays - 750 words

Wage Determination in the UAE - Essay Example If the job is of private sector, foreign applicants would be preferred (Abdalla et al., 2010, p. 165). The difference in the access to job opportunities for the national and foreign applicants can fundamentally be attributed to the high level of segregation in the labor market. The public and private sectors in the UAE are completely independent with their own characteristics, criteria, and culture. The public sector is almost entirely meant for the national applicants whereas the private sector almost entirely accommodates the foreign workers. This is because of the fact that companies in the public sector are government-owned and thus can accommodate the high expectations of the national workers with respect to wage and benefits. Foreign workers in the public sector are vulnerable to discrimination and stereotyping because of their rarity amidst the abundance of national workers of the UAE. On the other hand, companies operating in the private sector place emphasis on maximizing th eir profits. So hiring national workers of the UAE does not prove a cost effective option. Besides, the national workers of the UAE are also less equipped with the talents and competences required by the companies operating in the private sector. ... While mentioning experience, it is important to note that companies both in the public and the private sector mostly value experience that is gained within the UAE rather than elsewhere. So a worker with ten years of experience in India or Pakistan might be considered equivalent to a college freshman in the UAE. Conditions of job in the private sector in the UAE are tougher as compared to those in the public sector. An example of this is more number of working hours in the private sector than those in the public sector (Abdalla et al., 2010, p. 171). Therefore, as an individual gets more experienced within the UAE, he/she prefers to work in the public sector rather than the private sector, though the basic factors of nationality and gender are still considered. The segregation of labor market in the UAE can be attributed to the fact that the UAE wants to protect the rights of its national workers and considers their employment more important than those of the foreign workers. Educati onal level of a worker plays a significant role in his/her productivity. The more educated the worker, the more productive he/she is because of the added knowledge he/she has as compared to a less educated worker. Citizenship of the employee generally does not have any impact on the employee’s productivity because irrespective of citizenship, all employees have to work in the culture of the UAE industry following the norms and rules of the UAE. Working hours per week do have a connection with productivity. There is an optimal number of working hours that promise maximal productivity. Working hours above or below them reduce the productivity.

Lab 4 Report Example | Topics and Well Written Essays - 750 words

4 - Lab Report Example In other words the more yeast put in the Hydrogen Peroxide the more violent the reaction; therefore, giving off more oxygen. This is because of the reaction theory (the rate of a reaction depends on how often and how hard the reacting particles collide with each other) Response to Question 3 As the concentration f the enzymes decreases, so does the speed and vigor of the reaction. This is evidenced from the low volume of oxygen produced in tube 3 with less enzyme concentration. As the enzyme concentration decreases, the rate of reaction also decreases because there are fewer enzymes present to break down the substrate. Response to Question 4 More enzyme activity is expected if the substrate concentration is decreased. When there are low concentrations of substrate there is a linear relationship between the reaction rate and substrate concentration. In these conditions the relation of catalase enzyme to hydrogen peroxide substrate molecules is high. Experiment 2: Effect of temperature on enzyme activity. Data Table 2: Effect of temperature on the production of gas Tube Temperature ?C Balloon diameter (cm) Refrigerator 6 5.0 Room temperature 23 12.5 Hot water 90 1.0 Response to Question 1 The enzyme in this experiment is catalase enzyme and hydrogen peroxide is the substrate. Response to Question 2 The rate of enzyme catalyzed reaction tends to  increase with the increasing temperature of reaction medium. Enzymes are known to be proteins, they are gradually denatured thus lose their activity at the temperatures beyond their optimum temperature. In this case, catalase enzyme’s maximum activity is around 37? degrees Celsius. At extremely low temperatures, the reactants move around slower because of having less kinetic energy. This means that collisions occurring between the substrate and catalase enzyme active site happen less resulting in reduced enzyme-substrate complexes, therefore, slow down the reaction. An increase in temperature causes the reactants to have more kinetic energy. They, therefore, end up moving around faster and the movements cause more collisions between the substrate and active site of the enzyme. Therefore, there shall be more enzyme-substrate complexes taking place hence speeding up the reaction. Temperatures above the optimum alter the shape of the active site of enzymes. This  causes the temperature to denature the enzyme. In effect, enzyme-substrates would not be created due to the substrate not fitting in the active site. Denaturing the enzyme would mean that the tertiary structure is altered, which would end up causing the reaction process to stop completely. Response to Question 3. Yes plants and animals have the enzymes that breakdown hydrogen peroxide. Response to Question 4 Maintaining an optimum temperature of about 37 degrees Celsius increases the enzyme activity. Response to Question 5. The presence of catalase enzyme in cells catalyses the toxic hydrogen peroxide to non toxic products that incl ude, water and Oxygen. Hydrogen Peroxide ----–catalase enzyme---- Water + Oxygen. Response to Question 6 Experiment to determine the optimal temperature for enzyme function The experiment would be set up as below. First, set up the water bath; secondly, place a thermometer in the water bath so that the proper temperature is maintained. 0-5degrees Celsius: 400mL beaker to be filled with water and ice 20-25 degrees Celsius: No water bath is required to maintain the room

Medical Technology Assessment Research Paper Example | Topics and Well Written Essays - 1500 words

Medical Technology Assessment - Research Paper Example From this paper it is clear that technology assessment is the evaluation of emerging and existing technology trends to substantiate their existence in the world today. It seeks to identify the relevance of these technologies, and the role they play in the economic stability of organisations and the world at large. Furthermore, it is widely believed that scientists are not trained ethics as such whatever innovation they create should be assessed for any ethical concern. Technology assessment is viewed as interdisciplinary and capable of identifying and solving a wide range of technology based problems. An important concern, addressed by technology assessment is the collingridge dilemma. This is the situation where impacts of a new technology cannot be easily predicted unless the technology is fully developed and used. Yet on the other hand, it is absolutely difficult to change or control technology once it is widely used.This report stresses that  the Cleveland clinic is an academic medical centre that has seen a tremendous growth over the years since its inception. It has a designated research laboratory, the Cleveland Clinic Lerner Research institute that is characterised by high technological advancements.  A quick look at the operations within and without this medical facility reveals a heavy reliance on technology and information systems.  This is a specialised type of technology assessment that informs management and relevant medical policy makers of the efficacy of medical systems.   The main purpose of health technology assessment is to obtain ground for decision making with regards to application of technology within the healthcare system (Healthcare, 2009). These decisions should be made systematically with adequate and well documented information so as to leave little or no margin for error. Laboratory metal on metal hip resurfacing technology This medical procedure involves the replacement of the surface of the femoral head with an artificially made metal hemisphere that fits into a metal acetabula cup (Healthcare, 2009). This technology initially designed by an orthopaedic surgeon in Birmingham conserves and maintains most parts

Candleford Conservatories Ltd Assignment Example | Topics and Well Written Essays - 2000 words

Candleford Conservatories Ltd - Assignment Example A rise in foreclosures will hurt businesses in that those who can be potential customers will not be in that they are now not concerned about doing business with companies to obtain the things they want, they now have to be careful with their spending, purchasing only what they need and not what they want. Sometimes, they may not even be able to purchase the things that they need. Almost everyone in some way shape or form will feel the effects of the damage that an eight percent unemployment rate to have on the national economy. If there are problems in the UK, as far as the economy is concerned, there will also be problems with UK international trade in that there will be less goods to export, being that the workforce who will contribute to producing such goods will have dropped due to lack of employment that has resulted from the fall in the economy. Not to mention, inflation will also affect the international trading in that other countries will have to pay more for goods, which in the long run will hurt profits. This will hurt the economy considerably in that the UK will not be able to make money from outside sources as easily as before. The significant unemployment rate will cause there to be a lack of demand for conservatories, which will cause the customer base for Candleford LTD to be significantly less. Unemployment means that there will be a number of foreclosures. The more foreclosures there are, the less that will have homes, and if people cannot hold onto their homes, then conservatories cannot be installed and purchased. When the demand for conservatories drops, this effects everyone at Candleford Conservatories LTD, as the lack of demand can effect whether or not some will continue to have jobs, since the profits that the company brings in supplies workers with their salaries. 12) Illustrating your answer with examples related to the case study; explain the difference between strategic and tactical business decisions. (6) The differences between strategic and tactical business decisions are that strategic business decisions would use the company's history to make future business decisions, carefully strategizing what moves will be made next, as it pertains to the success of the business, and tactical business decisions are methods that the company will be able to employ in order to be successful, such as what tactics that will utilize to target their client base and improve their operations. An example of a strategic business decision is when Paul analyzed the company's history before he made any decisions about the company's operation. For instance, he paid attention to what his father did. He took not of what worked and what did not and carefully considered all factors before taking a first step. A tactical business decision was made when Candleford had to figure out how they would function in a down turning economy where not only did the industries that they so heavily depended upon were drasticall y effected, they had to be creative in getting customers to purchase conservatories. 13) Giving reasons to support your opinion, explain: a) Which industries or sectors of the economy are likely to suffer less

American History 1946-2012 Essay Example | Topics and Well Written Essays - 1000 words

American History 1946-2012 - Essay Example Primarily two objectives, that is, supporting democracy and containment of communism, shaped the US policy for the Cold War. In his â€Å"Joint Address before Congress†, President Truman clearly asserts, â€Å"Greece must have assistance if it is to become a self-supporting and self-respecting democracy.† (Truman, 1947, p. 3) The US policy of containment was fundamentally the outcome of President Truman’s reaction to the Soviet leaders’ expansionist tendency. This policy of containing the expansionist Soviet leaders remains the baseline of the US policy during the whole period of the Cold War. Indeed, almost all of Truman’s descendants, more or less, had attempted to put this policy of containment into operation in different contexts with different measures (Nigel, 2006, pp. 45-49). The Cold War can be considered as a clash of interests between the Soviet Union and the United States of America, the superpowers of the world during the post Second-Wor ld-War era. The war continued from 1947 to 1991. After the World War II, the US foreign policymakers did not need Soviet support any more to defeat the Axis Powers; therefore, they refused to acknowledge the Soviets’ security concern in Europe. ... Indeed, these distrusts and strife between the two superpowers subsequently the 50 years long Cold War ensued. In February 1945, the failure of the Yalta Conference in the Crimea was essentially one of the events which forecasted the Cold War (â€Å"The Cold War†, 2003, pars. 1). Though during the Cold War, ideological, political, economic and military tensions existed at an extreme level, the superpowers did not become involved in any direct war. Rather their military involvements were confined to proxy wars in various geographical regions of interests. Nuclear arm race between the two main parties of the war, the USA and the Soviet Union, began as a response to the superpowers’ desire to overpower each other. (Schweizer, 1994, pp. 69-74) During the Cold War, Kennedy Administration’s cold-war policies diverged a bit from the baseline of the traditional US foreign policy. During the most critical period of the War in the 1960s, President Kennedy adopted a policy, variedly known as â€Å"Flexible Response†, â€Å"Containment of Communism† and â€Å"Reversal of Soviet Progress†, etc, which was more tactful than his predecessor, Dwight Eisenhower’s militarily staunch response to the Soviet Forces (Schweizer, 1994, p. 209). In fact, this diplomatic stance of the Kennedy Administration critically shaped the premises of future American foreign policy. Truman’s policy was to restore economy in the war-affect European countries, since he believed that â€Å"The seeds of totalitarian regimes are nurtured by misery and want†¦They spread and grow in the evil soil of poverty and strife† (Truman, 1947, p. 6). The main goal of his policy was to ensure

Business Strategy and Development - Company Report Assignment

Business Strategy and Development - Company Report - Assignment Example GoPro is the world’s leading activity image capture currently the highest selling wearable HD camera. Political instability in America has encouraged GoPro to carry out its operations smoothly through formulation of liberal laws and policies that do not affect prices and labor. Following recovery from financial crisis, American economy is currently stabilizing thus forming a good environment for operations of GoPro. Most athletes’ sound financial capabilities in extreme sports also enable them to acquire GoPro products so easily. Moreover, social factors that entails belief in new technology and love of capturing experiences has hugely boost the relationship between GoPro and the society. GoPro boasts of faster technological advancement that saw them beating the likes of Smartphones and therefore the significance of their advancement in their technology cannot be assumed (Mac 2013, n.p). It has embraced intense marketing in the social media which has been key in catapulting their sales. GoPro develops highly innovative cameras that are consistent with the customers’ needs of capturing videos and sharing online. The company focusses on the needs of the customer and satisfies them instead of just advancing the technology. Having mix of features is integral for the company especially those features valued by customers at an affordable price and great solution (One Network Enterprises 2013, n.p). Gopro is known to building products that concentrates on the needs of the customers such as ease of use, robustness and footage quality. Gopro targets specific market instead of broad mass market by targeting passionate performers of many sport genres (Barca et al. 2012. P.21).This is because the company believes that target group is more willing to adapt to new technology within capturing hence making it easy to address their needs and satisfy them. Additionally, GoPro encourages closeness to their lead users and this