Given an economy that is operating at less than the full employment level, analyze the effects of an increase in consumer confidence on the following markets. Start with an initial equilibrium in each market.
1. The market for goods and services and the relevant variables in the market.
2. The money market and the relevant variables in the market.
3. The foreign exchange market and the relevant variables in the market.
4. The market for single family homes and the relevant variables in the market.
5. The market for household furniture and the relevant variables in the market.
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First, let us try to understand what happens when there is an increase in consumer confidence. Clearly, the immediate effect is that consumers believe that the economy is growing strong, and believe that they are not going to lose their jobs (or they will quickly find a job in the case of unemployed consumers). Thus consumers purchase more goods when their confidence is high.
i) When consumers buy more goods (or services), the aggregate demand for goods increases. Firms will soon realize that inventory level has dropped, and need to increase production in order to meet this increase in demand. Since the labour market isn't at full ...
Economy markets goods and services for relevant variables are provided.
Overview of the Chinese Market
If I were to transition a medical manufacturing company that focused on medical equipment for treatment of medical refractory epilepsy and treatment resistant depression such as Cyberonics to China what key economic indicators would either refute or support my argument for company expansion. I understand that we as a company would need to determine if there is a need for the products in the company and to date there is a need as "A recent epidemic survey done by the Ministry of Health shows that China has about nine million epileptics, 5-6 million of whom being active epilepsy sufferers. Every year, 400,000 new epilepsy cases emerge in China. The survey also shows that two-thirds of the epileptics in China's rural areas have not received sufficient medical treatment." http://www.chinanews.cn/news/2005/2006-06-26/24390.html So from what I have read on the country there is the need/desire for the product and market. But what key economic indicators should be researched? Possibly current sales of similar products that are selling in the country but am unsure if such products exist within this market and unsure what other indicators would be needed. Also do you see any economic, social, legal, political, technological or cultural factors that might have an impact on business operations as well as any product changes that might be required by cultural factors. What I see is that they have high values on family, respect and cultural values. This can either help or hurt the transition or expansion. As they value family members, their health system from what I have read however is inadequate, lacks modern equipment and is somewhat nonexistent in areas affected by extreme poverty. This can either increase the need for the product or hinder its ability to progress/prosper throughout the nation. Am looking for an overview on the Chinese market and what key economic indicators would either refute or support my argument for my company expansion.View Full Posting Details