The Models Of The Automotive Industry - 1481 Words

As general of a concept the automotive industry is, as time goes, anybody will start to observe the different car platforms and consumer markets that emerge from the growing industry. One of such platforms created was the â€Å"Pony Car† platform, or more colloquially know as just the 2 door sports car platform. And with this new brand of car came a new brand advertising as well as consumer. Consumers will start to familiarize themselves with the various new ways of advertising through the years in this market. The American consumer sports car market had one of the most dynamic advertising markets of the automotive industry, it changed with the decades and contributed to the creation of the sports car enthusiast demographic we know today.†¦show more content†¦These very appeals as well as what Fowles writes about in his article are very relatable to the automotive industry. Cars have been an essential part of living for some time now. Ever since mass-production allowed for the wide-spread distribution of cars, they have been paramount to everything from our economy to our daily commute. Globalization along with the growing market caused competition among manufacturers, and so manufacturers had to find ways to appeal to the new competitive consumer market. Automotive advertising started to take a new form and targeted peoples particular interests, emotions, and desires instead of being strictly informative or utilitarian. Even the car themselves had to change along with the decades to provide luxuries and compete with the market. Although many car manufactures took steps in the right direction, one great example of this changing market is the 1955 Ford Thunderbird. For Ford, the Thunderbird was a luxury consumer family car platform that started in 1955. It featured specifications that fared well in the competitive market. The Thunderbird could have come in either four seats or two seated versions. Ford advertised the car like they would have any other car, however, the advertising ultimately did not fit for the two car version of the car. Because of this, the two door Ford Thunderbird is somewhat of a rarity now due to not having been so successful. For Ford, its advertising

The Law And Civil Law - 1668 Words

The concepts of law and justice are interdependent and deeply intertwined. The relationship between these concepts is able to be perceived through analysis of each independently and then comparatively. One of the primary questions concerning law and justice pertains to the balance and importance of natural law compared to civil law. Problems arise when defining what natural law and civil law are. The identification of natural or civil law as set boundaries provides its own queries. Along with the identity of these types of law, the existence of natural law is brought into question. The purpose of both natural and civil law is defined by the purpose of any law. Natural law may be defined as an unwritten form of rules that dictate man; this†¦show more content†¦Laws may be inviolable; within this instance it is perceived that laws (primarily of nature) exist without exceptions and if an exception is found, that exception is one where the law does not apply rather than an act o f disobedience. Laws may be general or specific to individuals. The conceptualization of some laws is perceived to be a creation of God. A law may be man-made, but not all are. Laws are not always absolute, but they are set to be followed. The kinds of laws are defined differently by different writers. Adler states that the â€Å"division of law into civil law . . . and natural law is not of Greek but Roman in origin.† The definitions of natural and civil law stem from the basic alterations in the explanation of what law is and how laws are created. Natural law, or a law of nature, may be defined as â€Å"a precept or general rule, found out by reason, by which a man is forbidden to do that which is destructive of his life, or taketh away the means of preserving the same.† Natural law is not a law made by man. The purpose of natural law is to endeavor to obtain peace. As discussed by Hobbes, natural law is similar to justice in that it may only be relevant to men in a civil society. Through his viewpoint, natural law does not apply to men outside of a Commonwealth due to the natural tendency for men to live in a state of war and selfish intentions. The idea of natural law only existing amongst a

Economic Condition of Germany-Free-Samples-Myassignmenthelp.com

Questions: Discuss about the Economic Condition of Germany. Answers: Introduction The economy of Germany has continued to be one of the leading and powerful economies despite a number of economic headwinds within the European Union. Since the Global Financial Crisis of 2008, the German economy has come a long way forward supported by long-term investment freedom and entrepreneurial growth (Maitah, Toth Kuzmenko, 2015). In the meanwhile, Germany has been ranked nineteenth richest country of the world economy based on the GDP per capita of US$ 45551.51 in 2016 (Worldbank.org, 2017). Currently, the financial, as well as political challenges with the eurozone, have taken a toll on the economic growth of the nation. In this particular study, the current economic condition of Germany has been elaborated describing the Gross Domestic Product, GDP growth rate, and GDP per capita. Evidently, the existing economic condition in Germany has seemed to be stabilised due to a decline in unemployment rate to 3.8 percent in the last quarter. Notably, the FDI inflow of US$ 31.7 billion has contributed the growth sustainability, to say the least (Worldbank.org, 2017). Production Output Performance Analysis The analysis of the production output performance can identify the current status of the German economy in terms of GDP, GDP annual growth rate, and GDP per capita. Interestingly, in the late 1990s and early phase of 2000s, the economic growth of Germany was relatively slower than most other eurozone countries. Also, the fundamentals of the economy were inflexible to some extent. Coming back to the present state of affairs, the German economy can be recognised as the fourth-largest GDP in the global stage worth US$ 3466.76 billion in 2016 (Worldbank.org, 2017). In the underlying figure, Germanys GDP data of last 10 years has been charted. Figure: Germany Gross Domestic Product (in USD billion) Source: (Worldbank.org, 2017) In the meanwhile, the current GDP of the German economy has represented 5.59 percent of the entire world economy. However, the trend of GDP has not evidently upward. Over the last decade, in 2014, the GDP of the economy was valued worth US$ 3879.28 billion highest in the last 10 years. In terms of economic growth, the pullback of the economy has been remarkable. In the first quarter of 2017, the economy of Germany has expanded at a rate of 1.7 percent (Worldbank.org, 2017). In the first quarter of 2009, due to the impact of GFC, the GDP annual rate of the German economy was contracted by 6.8 percent. Since then, the recovery stage of the German economy was staged by the government as well as the Central Bank of the nation. Figure: Germany GDP Annual Growth Rate Source: (Worldbank.org, 2017) As illustrated in the above figure, in 2011, the economy has registered a yearly growth of 5.9 percent which is the highest in the last decade. Precisely, the yearly growth rate of the German economy is hovering around 1 to 2 percent since the third quarter of 2014 showing the steady economic status of the nation. On the other hand, the exiting GDP trend of the economy has continuously supported the GDP per capita of the country. Since 2009, the German GDP per capita has improved at a significant rate. As shown in the figure below, the GDP per capita has been recorded at US$ 45551.51in 2016 from 40086.1 in 2009 (Worldbank.org, 2017). The steady growth in the GDP per capita has pointed towards the economic stability as well as income status of the citizens of Germany. Figure: Germany GDP Per Capita (in USD) Source: (Worldbank.org, 2017) Through the identification of the economic performance trends, it is quite clear that the German economy has outperformed over the last decade. According to the reports of Deutsche Bank, the central bank of Germany, most of the economic indicators are showing sustainable growth patterns. The largest economy of the eurozone is also supported by the fiscal policy. The economic policy reforms such as modern tax policies have been effective to draw improved government revenue. Currently, the government runs a budget surplus that is expected to reach US$ 25 billion in the recent year (Spitz-Oener, 2017). Invariably, the tight monetary policy of Deutsche Bank has contributed towards money inflow to attain long-term public as well as private sector growth. Evidently, the German government has worried about the financial situation among the other eurozone economies that have added significant pressure on the economy. On the other hand, the German government is thinking about declining the regulatory costs so that unproductive expenditure can be controlled. However, improved consumer demand and expenditure have largely contributed towards the growth of the economy. Also, the export of the country has reached to a whooping figure of $1.3 trillion that values half of the GDP of the nation (Spitz-Oener, 2017). In this way, the long-term policy benefits of the government have fuelled the economic growth. Labour Market Analysis The existing labour market analysis of Germany is pointing towards a significant improvement in unemployment rate since 2010. By considering the economic uncertainties with the eurozone and high rate of unemployment in the most of the eurozone economies, the jobless rate of Germany can be termed as an exception (Juessen, 2016). Over the last decade or so, the number of jobless people has been reduced by as much as 50 percent. Remarkably, the jobless number in Germany has come down to 2.6 million as the seasonally adjusted unemployment rate has recorded at 3.8 percent in the recent June quarter. Instrumentally, the services and industrial sector in Germany have contributed the most in adding employments over the last decade (Pollmann-Schult Bchel, 2015). Figure: Germany Unemployment Rate Source: (Worldbank.org, 2017) As shown in the above presented chart, in 2007, the unemployment rate was recorded at more than 9 percent. Effectively, the fiscal policy of the German Government has supported the long-term growth structure to create more jobs (Fitzenberger Wilke, 2010). As a sign of recovery, the unemployment rate in Germany has continuously maintained a downward curve although Germany has provided suitable accommodation for more than1 million refugees since 2015. Notably, positive economic outlook and industrial growth opportunities in the private as well as public sector have emerged new competition in the job markets (Fendel, 2014). Slowly but steadily, the government policy and government expenditure have transformed the job market of the country adding significant number of jobs each year. Clearly, the federal labour market reforms initiated way back in 2003 has shown its long-term effect in case of Germany (Klemmer Wink, 2016). By considering the last ten years statistics of the labour market in Germany, it can be seen that three different types of unemployment can be evident in the economy. Firstly, the adverse impact of cyclical unemployment can be seen in the nation during and after the Global Financial Crisis. It can be seen that the downfall in the global economy directly impacted several industries of Germany leading to a fall in the demand for labour. Hence, a rise in the unemployment rate from 7 percent to 8 percent can be seen during that phase (Ilmakunnas Pesola, 2013). Alternatively, another type of unemployment that occurs in an economy is known as structural unemployment. The structural unemployment occurs due to the lack of technical skills and knowledge among the younger generation people that are required by the multinational companies to hire an employee (Mclaughlin, 2013). According to the statistical figures, it can be seen that the youth unemployment rate of Germany is considerably high er than the total unemployment rate due to the lack of skills that leads to structural unemployment. However, the Government of Germany has been quite effective in reducing the youth unemployment rate from around 12.5 percent to around 6.75 percent between 2009 and 2016 (Flrez, 2017). Furthermore, the third type of unemployment that occurs in the nation is known as frictional unemployment. This type of unemployment occurs due to the voluntary retirement of the workers in search of a new well paid job. Frictional unemployment is a type of unemployment that cannot be avoided in an economy due to the job changing behaviour of the employees. Hence, a minimum level of unemployment cannot be avoided in a well developed nation like Germany. The German Government has introduced an explicit policy to shorten the work hours in place of laying-off the workers. The shorting of work hours policy has helped the government to increase the number of job and provide employment to more number of people. Moreover, the Government of Germany has increased the minimum hourly wage rate by 4 percent from 8.50 per hour to 8.84 per hour and a special wage commission has been announced in order to minimise the frictional unemployment in the nation (Lange Georgellis, 2017). Additionally, the Government has used its tax rate policy in order to attract foreign investment and promote business in the nation to increase job opportunities in the Germany (Geest, Siegers Bergh, 2009). Hence, it can be seen that the German Government has worked effectively in order to control the unemployment rate in the last ten years. Price Level Analysis Inflation rate presents the rise of average price level in an economy for a particular time period. It can be seen through the statistical report of the World Bank that the inflation rate in Germany has always remained under 4 percent throughout the last 10 years. During the Global Financial Crisis, the supply of money reduced in the market due to the downfall in the global economy and high interest rate (around 4 percent) that led to a rise in the aggregate price level to around 3.25 percent (Worldbank.org, 2017). However, the economy has faced a small rate of deflation after the end of the GFC in 2009 and during 2015. The German Government has effectively controlled the flow of money using its monetary policy and supply of products and services in the market using its fiscal policy to manage a balanced inflation rate in the nation. Currently, the inflation rate of Germany is around 1.75 percent (Worldbank.org, 2017). A figure has been given below to present the last ten years infla tion rate of Germany: Figure: Inflation rate of Germany Source: (Worldbank.org, 2017) There are two major reasons for the occurrence of inflation in an economy, which are known as cost push inflation and demand pull inflation. The two types of inflation that have occurred in the German economy have been explained in details in the section given below. Figure: Cost Push Inflation Source: (Sanner Bussmann, 2013) During the GFC, the aggregate supply of products and services decreased leading to a shift in the aggregate supply curve from AS to AS. On the other hand, the aggregate demand remained constant at AD. Hence, an increase in the aggregate price level can be evident during the GFC in 2008 (Forstater, 2017). However, an increase in the aggregate supply can be evident after the GFC and in the year 2015-16 that resulted in deflation in the nation. The second reason for inflation is the demand pull factors. A figurer has been presented below for better understanding: Figure: Demand Pull Inflation Source: (Sanner Bussmann, 2013) For example, during the GFC and few years after GFC, an increase in the aggregate demand can be evident in the German economy resulting in a rightward shift in the aggregate demand curve from AD1 to AD2. On the other hand, the aggregate supply curve remains constant at AS. Hence, a rise in the average price level can be evident from PL1 to PL2 resulting in an inflation in the economy. The German Government has effectively controlled the aggregate price level of products and services in the nation using its price flooring policy and low interest rate strategy. For instance, in order to control the high inflation rate in the market during the global financial crisis, the government reduced the interest rate to around 1 percent from 4 percent (McCallum Nelson, 2016). Additionally, the government used to price flooring strategy to set a minimum and maximum price for a product and service in the nation to control the growth of aggregate price level. Hence, it can be clearly seen that the Government of Germany has effectively controlled the price level or inflation rate in the last ten years. Conclusion By considering the above analysis, Germany is one of the leading economies of the world with an annual GDP growth rate of around 2 percent. Moreover, the German Government has effective made changes in its economic policies in order to control the unemployment rate in the nation. The increase in the minimum wage rate and promotion of business in the country has helped the economy to minimise its unemployment rate from around 9 percent to 4 percent in the last ten years. Additionally, the low interest rate policy of the government has helped the economy to control the aggregate price level and maintain economic balance in the German market. References Fendel, T. (2014). Work-related Migration and Unemployment.Journal For Labour Market Research,47(3), 233-243. Fitzenberger, B., Wilke, R. (2010). New Insights into Unemployment Duration and Post Unemployment Earnings in Germany.Oxford Bulletin Of Economics And Statistics,72(6), 794-826. Flrez, L. (2017). Informal sector under saving: A positive analysis of labour market policies.Labour Economics,44, 13-26. Forstater, M. (2017).Economics(4th ed.). London: A. C. Black. Geest, G., Siegers, J., Bergh, R. (2009).Law and economics and the labour market(4th ed.). Cheltenham [England]: Edward Elgar Pub. Germany. (2017).Worldbank.org. Retrieved August 2017, from https://www.worldbank.org/en/country/germany Ilmakunnas, P., Pesola, H. (2013). Regional Labour Market Matching Functions and Efficiency Analysis.Labour,17(3), 413-437. Juessen, F. (2016). A distribution dynamics approach to regional GDP convergence in unified Germany.Empirical Economics,37(3), 627-652. Klemmer, P., Wink, R. (2016).Preventing unemployment in Europe(3rd ed.). Cheltenham, UK: E. Elgar. Lange, T., Georgellis, Y. (2017).Active labour market policies and unemployment(3rd ed.). Bradford, England: Emerald Group Pub. Maitah, M., Toth, D., Kuzmenko, E. (2015). The Effect of GDP per Capita on Employment Growth in Germany, Austria and the Czech Republic: Macroeconomic Analysis.Review Of European Studies,7(11). McCallum, B., Nelson, E. (2016).Monetary and fiscal theories of the price level(3rd ed.). Cambridge, Mass.: National Bureau of Economic Research. Mclaughlin, E. (2013).Understanding Unemployment(2nd ed.). Hoboken: Taylor and Francis. Pollmann-Schult, M., Bchel, F. (2015). Unemployment Benefits, Unemployment Duration and Subsequent Job Quality.Acta Sociologica,48(1), 21-39. Sanner, B., Bussmann, W. (2013). Current status, prospects and economic framework of geothermal power production in Germany.Geothermics,32(4-6), 429-438. Spitz-Oener, A. (2017).The Real Reason the German Labor Market Is Booming.Harvard Business Review. Retrieved August 2017, from https://hbr.org/2017/03/the-real-reason-the-german-labor-market-is-booming

The Impact of Sin Tax on the Consumer’s Demand for Cigarettes Essay Example

The Impact of Sin Tax on the Consumer’s Demand for Cigarettes Paper Marlene B. Escamillan 4E1 The impact of sin tax on the consumer’s demand for cigarettes Introduction The raise in tax is one of the most valuable gauges to lessen the utilization of a good. Just the same as other taxes, a sin tax is charged to lift up proceeds for government expenditures. Different from other taxes, a sin tax is often imposed with an intention of reducing the public’s consumption of a good. On the other hand, when you articulate about taxing cigars and alcoholic beverages, consumption emerge to be unpredictable especially to the mass. The policymakers’ main concern is that an increase in cigars and alcoholic beverages taxes could have an inconsistent impact on the underprivileged (Jose Julian Escario, Jose Alberto Molina, 2004). Escario, et al. also found that the increase in the actual worth of taxation on cigarettes  has had slight effect on demand  from smokers for the reason that demand has been inelastic. But there are signs that a tipping point may have been reached. Sin taxes are also the most effective way to influence adolescent people to refrain from smoking. On the other hand, an increase in the price on cigarettes  has had slight effect on demand  from smokers since demand has been inelastic. Thus, what really is the elasticity of the demand for cigarettes to the mass? The purpose of this paper is to stimulate the impact of sin tax on the consumption of cigarettes of regular smokers. Point of view From an economic perspective, the researcher finds it more sensible to consume the standard cigarette because of the satisfaction it yields to the consumers. It is also efficient for the societal well being of the country because the tax charged will still be returned to us eventually. We will write a custom essay sample on The Impact of Sin Tax on the Consumer’s Demand for Cigarettes specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on The Impact of Sin Tax on the Consumer’s Demand for Cigarettes specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on The Impact of Sin Tax on the Consumer’s Demand for Cigarettes specifically for you FOR ONLY $16.38 $13.9/page Hire Writer In addition, based from the study, the researcher would rather utilize the standard good at a lesser demand rate rather than substituting the good in view of the fact that substituting the good would not be as satisfying from what you have been used to smoke. If the taxing of cigarettes will be put into practice, there is an option for smokers to trim down their consumption. Method 50 surveys were dispersed randomly to gather the data needed for prices, and demand for cigarettes. The survey was developed by the researcher. The prices of the usual brand, the substitute brand, and the demand for cigarettes were all answered in the form of a probit model. The price of the standard cigarette brand, and quantity demanded of the substitute cigarette brand are the explanatory variables, while demand for the standard cigarettes is the exogenous variable. Allowance was employed to determine on which income group the student belongs to. Prices were varied through its increase due to tax implemented. Meanwhile, the demand for cigarettes was gauged by the quantity consumed by the buyers. Equation 1: QDstandard = [pic] + [pic] Pstandard + [pic]QDsub + e The regression model is made known above. QDstandard stands for the quantity demanded for the standard cigarette brand; Pstandard corresponds to the price of the standard cigarette brand with tax implemented; QdSub embodies the quantity demanded of the substitute good which is inexpensive than the other good. Results Regression results of QDstandard on Pstandard, and QDsub |Dependent Variable: QDstandard | |Included observations: 50 | |Variable |Coefficient |Std. Error |t-Statistic |Prob. | |C |13. 66452 |0. 595734 |22. 93727 |0. 0000 | |Pstandard |-0. 176294 |0. 066267 |2. 660363 |0. 0145 | |QdSub |-0. 126506 |0. 043445 |-2. 911854 |0. 0086 | | | | | | | |R-squared |0. 905023 | Mean dependent var |14. 2297 | |Adjusted R-squared |0. 893151 | S. D. dependent var |0. 265487 | |S. E. of regression |0. 086782 | Akaike info criterion |-1. 919279 | |Sum squared resid |0. 180745 | Schwarz criterion |-1. 728964 | |Log likelihood |30. 86991 | F-statistic |76. 23089 | |Durbin-Watson stat |1. 193801 | Prob(F-statistic) |0. 000000 | Regressing prices of standard cigarette brand with tax implemented (Pstandard), and quantity demanded the of substitute good (QdSUB) shows all explanatory variables are statistically significant at 95% confidence level. If the price of the standard good increases by 1 unit then quantity demanded for the standard cigarette good decreases by 1. 76 The results explains that if sin tax is implemented, the demand for cigarettes in the middle class will decrease. Furthermore, if the quantity demanded of the substitute good increases by 1 unit, the quantity demanded of the standard good decreases by 1. 27. Based on the survey, middle class consumers will still buy their standard cigarette even if the price increases, while not as much as they used to when the price was lower. Never the less, low-middle class respondents would locate an alternative good if the price of their standard good will increase. When substitution takes place the tax turns into a distortion. To supplementary prove the study, the graph below gives an idea about the effects if tax is implemented. In graph 1, point U1 shows that those who give importance to the standard good more, thru the satisfaction they have for their product, have a steeper demand curve (D1). In this case, a price increase won’t distort their consumption for the standard good. Although loyal consumers’ quantity demanded will decrease, they will still pay out the same amount of money only receiving less amount of that product. In addition, point U2 demonstrates those who will be more satisfied of the substitute which is inexpensive than the standard good. Substitution effect takes place in point U2. Graph 1 Moreover, to further provide evidence for the analysis of the survey regarding consumers’ demand on standard cigarettes, D1 clearly reveals how consumers respond with tax added to the real price. Even with the increase in price, consumers will not be affected that much for the reason that of the inelasticity of its demand curve. In this situation, producers surpass the entire tax burden to the consumers. Nonetheless, D2 shows the analysis of consumers who would find a substitute good if tax is implemented. As illustrated, D2 is less steep compared with D1 which means that those consumers who have a demand curve as of D2 will be highly affected if price increases. When consumers have a demand curve as d2, they are more likely to be avoiding tax and go for the substitute good which creates distortion in the economy. Conclusion From the study conducted, results clearly show that as price of cigarette increases, the quantity demanded vary depending on the type of consumer. On one hand, if the consumer belongs to the middle class, they are more likely to consume the standard brand of cigarette regardless of the price increase but with a lesser amount of quantity. On the other hand, if the consumer is rice elastic, the consumer will more likely consume the substitute good. The demand elasticity for cigars clearly depends on the type of consumers. Source: www. econpapers. repec. org http://tutor2u. net/economics/revision-notes/as-markets-price-elasticity-of-demand. html http://www. tobaccoinabgnustralia. org. au/13-1-price-elasticity-of-demand-for-tobacco-produc Modelling the optimal fiscal policy on tobacco consumption: by Julian Escario, Jose Albe rto Molina 2004. Journal of Policy Modeling Volume 26, Issue 1, January 2004, Pages 81-93 Price U2 U1 D2 D1 Quantity