Month: August 2017

Chap12 Ais

Chap12 Ais

Chapter 12 test bank TRUE OR FALSE. 1. Private industrial networks are the largest form of B2B e-commerce. ANS. TRUE 2. EDI systems are seller-side solutions. ANS. FALSE 3. Net market places are growing at a faster rate than private industrial networks. ANS. TRUE 4. E-distributors typically operate in vertical markets. ANS. FALSE 5. Exchanges tend to be biased toward the seller even though they are independently owned and presumably neutral. ANS. FALSE 6. Industry consortia are typically buyer-biased. ANS. TRUE 7.

Net marketplaces focus on continuous business process coordination between companies while private industrial networks are primarily transaction-based. ANS. FALSE 8. Industry consortia are usually owned collectively by the major firms participating in the consortia while private industrial networks usually created by a single sponsoring company. ANS. TRUE 9. Demand chain visibility is an element of collaborative commerce. ANS. TRUE 10. The term B2B commerce refers to all types of computer-enabled inter-firm trade. ANS. TRUE 11. Convist is an example of an: a. E-distributor b. E-procurement company c. Exchange d. Consortia

ANS. D 12. An ________ provides electronic catalogs that represent the products of thousands of direct manufacturers a. E-distributor b. E-procurement company c. Exchange d. Consortia ANS. A 13. An ________ is an independently owned intermediary connecting hundreds of online suppliers offering millions of maintenance and repair products to business firms who pay fees to join the market. a. E-distributor b. E-procurement company c. Exchange d. Consortia ANS. B 14. An ________ is an independently owned online marketplace that connects hundreds of supplier to potentially thousands of buyers in a dynamic, real-time environment. . E-distributor b. E-procurement company c. Exchange d. Consortia ANS. C 15. Which of the following was the first step in the development of B2B commerce? a. EDI b. Automated order entry systems c. Electronic storefronts d. Private industrial networks ANS. B 16. In 2001, all forms of B2B commerce generated approximately $____ in revenues. a. $12. 1 trillion b. $11. 6 trillion c. $466 billion d. $466 million ANS. C 17. The greatest increase in B2B e-commerce is expected to occur in the: a. Chemicals industry b. Metals and mining industry c. Motor vehicles and parts industry d.

Computer and telecommunications equipment industry ANS. D 18. Sheet metal purchased by an automobile manufacture for auto body production pursuant to a long-term written agreement is an example of: a. Direct goods b. Indirect goods c. MRO goods d. Spot purchasing ANS. A 19. A ________ continuously links the activities of buying, making and moving products from suppliers to purchasing firms, as well as order entry systems. a. MRP system b. ERP system c. VCM system d. SCM system ANS. D 20. An E-procurement net marketplace is sometimes referred to as a/an: a. One-to-many market b. Many-to-many market . Many-to-few market d. One-to-one market ANS. B 21. The market mechanism most commonly used by industrial consortia is: a. Auctions b. RFPs/RFQs c. Exchanges d. Catalog aggregation ANS. D 22. ________ is another name for trans-organizational business process. a. Supply chain management b. Collaborative commerce c. B2B e-commerce d. Value chain management ANS. B 23. All of the following statements about EDI are true except: a. EDI is a communication standard for sharing business documents b. Virtually all large firms have EDI systems c. EDI systems generally have horizontal markets d.

EDI system are owned by buyers ANS. C 24. The second step in procurement process is to: a. Negotiate price, credit terms, etc. b. Qualify the seller and its products c. Issue a purchase order d. Ship the goods ANS. B 25. The majority of inter-firm trade involves: a. Spot purchasing of direct goods b. Contract purchasing of indirect goods c. Contract purchasing of direct goods d. Spot purchasing of indirect goods ANS. B 26. The key players in the procurement process are the: a. Adjusters and investigators b. Administrative personnel c. Material recording and scheduling personnel d. Purchasing managers ANS. D 27.

All of the following are major developments in supply chain management except: a. Supply chain simplification b. EDI c. Collaborative commerce d. Materials requirement planning ANS. D 28. All of the following reasons why the demand and supply chain management system that i2 installed for Nike failed except: a. Nike choose a “Big Bang” conversion process b. Too many senior managers left the project during the implemention period c. The system was not set up to handle a global supply and distribution network d. Nike management decided not to follow a standard implementation of the i2 Technology supply chain template ANS.

C 29. An exchange is sometimes referred to as a: a. One-to-many market b. Many-to-many market c. Many-to-few market d. One-to-one market ANS. C 30. FreeMarkets is an example of an: a. Exchange b. E-procurement company c. E-destributor d. Industry consortia ANS. A 31. Siemens wanted its system of have all of the following characteristics except: a. Global reach b. Integration with legacy system c. Web-based search engines d. cLocalized control of purchases ANS. D 32. Which firm provided the software upon which click2procure is based? a. Ariba b. CommerceOne c. FreeMarkets d. i2 Technologies ANS. B 33.

Which of the following is not a typical barrier to the implementation of a private industrial network? a. It requires participating firms to share sensitive data b. It requires a significant investment of time and money c. It requires a change of mind-set and behavior of employees d. It requires the network owner to give up some of its independence ANS. D 34. Nistevo is an example of a/an: a. Exchange b. Industry consortia c. Trans-industry private industrial network d. Industry-wide private industrial network ANS. C 35. All of the following are forms of collaborations among businesses except: a. CPRF b.

Demand chain visibility c. Supply chain visibility d. RFQs ANS. D 36. Grainger. com is an example of an: a. E-procurement company b. E-distributor c. Exchange d. Industry consortia ANS. B 37. Industry consortia are sometimes referred to as: a. Many-to-many markets b. Many-to-few markets c. One-to-one markets d. One-to-many markets ANS. B 38. By 2006, analysts predict that all forms of B2B commerce will grow to approximately: a. $16 trillion b. $10. 5 trillion c. $5. 4 trillion d. $3. 5 trillion ANS. C 39. All of the following are potential benefits of B2B e-commerce except: a. Lower administrative costs . Lower search costs c. Lower price transparency d. Lower transaction cost ANS. C 40. EDI began as a/an ________ system: a. Document elimination b. Document automation c. Continuous replenishment d. HTML-based ANS. B 41. A/an ________ primarily serves businesses that primarily buy indirect goods on a spot purchasing basis: a. E-distributor b. E-procurement company c. Exchange d. Industry consortia ANS. A 42. A/an ________ primarily serves businesses that primarily buy indirect goods on a contract purchasing basis: a. E-distributor b. E-procurement company c. Exchange d. Industry consortia ANS. B 43.

A/an ________ primarily serves businesses that primarily buy direct goods on a spot purchasing basis: a. E-distributor b. E-procurement company c. Exchange d. Industry consortia ANS. C 44. A/an ________ primarily serves businesses that primarily buy indirect goods on a contract purchasing basis: a. E-distributor b. E-procurement company c. Exchange d. Industry consortia ANS. D 45. The most common reason given by purchasing agents as to why they do not use exchanges is that: a. They are too expensive b. They are too confusing to use c. Their traditional suppliers are not part of the exchange d. They are too biased toward the sellers ANS. C

The Life of Susan Yen Liang

The Life of Susan Yen Liang

The Life Of Susan Yen Liang I was born on November 25th, 1941 in Tian Jin, China. I was the last child to be born to the Yen family and the second to be born to Jeanne Prosperi and Joseph Yen. I had one brother, Franklin, three half-brothers, Gregory, James, and Edgar, and two half-sisters, Adeline and Lydia. I loved being the youngest in the family, adored by everyone. When I was about three months old, Father and Mother, along with my other siblings, moved to Shanghai. Aunt Baba and I stayed behind. Without Mother around, the atmosphere was peaceful. I didn’t miss her at all; instead, I enjoyed all the attention Aunt Baba gave me.

When we finally had to pack up and leave, I felt as if Aunt Baba had become my mother. I hadn’t seen Mother for ages and I hardly even remembered her. The day we arrived in Shanghai was the day I first hated my mother. Since I had last seen everyone, I had grown into a cute toddler with black hair and large eyes. When Aunt Baba and I arrived in our Shanghai home, I rushed around the living room, very excited. The reunion went quite well until Mother attempted to pick me up. The way her hands felt around me was shockingly hostile and I was scared, it felt as if a stranger was picking me up.

I screamed for my aunt. I could see Mother’s face turn red with anger. She dropped me on the couch and started to beat me. I cried and screamed but she didn’t stop. Suddenly, I heard, “Don’t beat her anymore! She’s only a baby. ” Mother turned around fiercely and glared at the timid little girl standing in the corner. Through my teary eyes, I recognized Adeline. Mother stared hard at Adeline, preparing to yell. Aunt Baba lifted me up and took me away. Although that day was many years ago, I still remember it very well. That was the day the bridge of hate between my mother and I emerged.

Mother openly adored Franklin. As I grew older and older, this became more obvious. Although both Franklin and I were her blood-related children, we were treated very differently. Whenever Franklin needed something, he would order me to get it. The first few times he did this, I felt happy that my older brother needed me. However, soon I grew tired of this. I complained to Mother, but she only yelled at me and told me that Franklin was older and therefore I must obey. This made me loathe her even more. How could she not love me as much as him? One day, Franklin came home in a bad mood and went straight to bed.

That night was stressful. I remember lying on my pillow next to the door, listening to Franklin groaning. The next morning Franklin was gone. He never came home. I never truly understood why until Adeline explained it to me. Mother soon became depressed and would constantly neglect me. The bridge between us continued piling up with hate and anger. When I needed her, she was never there. Because of this, Father and I grew closer. He loved showing me off to his colleagues, his beautiful girl with thick black hair, large eyes and exquisite features.

After graduating from college in the US in 1964, I returned to China. I got a job as a schoolteacher and lived at home with my parents. I started dating a dentist and soon three months zoomed by. Mother started to bother me about marrying him. Once she intercepted my call and I became livid. All my anger boiled up inside of me and I exploded. After our horrendous argument, I ignored Mother. Father pleaded with me to apologize. Upon looking at his anxiety-ridden face, I gave in. The next day everything was fine again. Soon I was engaged. Not to the dentist, but to a wonderful man named Tony Liang.

He had graduated from the Massachusetts Institute of Technology and was the son of a prominent Shanghai businessman. We got married in Honolulu as per Mother’s request. It was a beautiful wedding. Afterwards, I rarely visited home, and because of Tony’s prominence in Hong Kong, I was constantly featured in newspapers and magazines. I was upstaging my mother and I loved it, every last bit of it. One day, my friend Shirley came to visit. I had to cancel my dinner with Mother. She became furious, so I decided to treat Shirley to lunch instead. That night’s dinner was awful.

She kept insulting me, saying I was unworthy and unfilial. She even accused me of being conceit and shallow. When she started crying over the death of Franklin, I couldn’t stand it any longer. I said to her, “ Franklin was a sadistic, Mother and I’m glad he’s dead. Even though you’re my mother, I think you are vicious and vindictive. You love no one but yourself. You certainly don’t care for me, and you never have. ” After I said this, she became hysterical. She slapped me across the face and starting blabbing about how I was so ungrateful and how I was a waste of her money.

I calmly drew out my purse and said, “ How much do I owe you? I’ll write you a check. ” At this she screamed, “ GET OUT! Get out now! Don’t ever come back! As far as I’m concerned, you are dead! DEAD! ” That was the day, I, Susan Yen, was disowned from the Yen family. However, that day was also the day my father ‘died’. His body remained, but his soul was gone. He was lifeless on the inside. Father was never the same after that. Every time we had lunch together, he would stare off into the distance as if he were already gone, his soul floating in space.

Soon later, he passed away. Looking back at all those years, I regret the relationship of hatred between my mother and I. The bridge we built between us carried so much resentment and anger from over the years that eventually it collapsed under all that weight. Every time I walk down a street and see a girl and her mother enjoying their time together, sadness engulfs me. However, after being disowned, I feel as if life has come a full circle. I feel at peace again like when I was merely a child. I have finally returned to where I had begun. ????.

“the Academic Performance of Working Students in Colegio de Dagupan, Dagupan City, School Year 2011-2012”

“the Academic Performance of Working Students in Colegio de Dagupan, Dagupan City, School Year 2011-2012”

Chapter 1 The Problem A. Introduction “Patience and perseverance have a magical effect before which difficulties disappear and obstacles Vanish. Motivation is what gets you Started; Habit is what keeps you going”. – John Quincy Adams What is Academic Performance? Academic Performance refers on how student deal with their studies, it is on how they do the entire task that they assign to. Base on how they will cope up or communicate in their studies. So what it means to become a working student? A working student is an individual who works while studying.

It’s a matter of time management. In order to support their needs, they need to work for themselves. Being a working student is kind of tough for us ordinary students. Value of Study? So when we say the value of study, it is the importance of studying for us student. Why studying is acquire? Because without it we can’t communicate with others, we can’t land a better job. Studying is simply a key for success. That’s why we are entering school because all of us believe that through knowledge we can achieve everything in life. Overview at Working Student

The Researchers topic The Academic Performance of Working Students in Colegio De Dagupan tells about the conduct of those students who are working at the same studying. We choose this matter for us to better understand on how they manage their time and what its effects to their studies. The Researchers have chosen the topic to satisfy their curiosity. As for us student whose only supported by their parents can’t encounter these way of life. So we settle this issue to be familiarize with their community. As a matter of fact they’re highly regarded since they supervise their time in working and tudying. We the researchers know how life hard is. Because of poor economy the youth supported themselves to be able to attend school. That is another bases why they’re some students are working due to the fact of insufficiency when it come to financial problem. They the working students take responsibility for themselves to support their needs. According to (D. T. Smart, C. A. Kelley, J. S. Conant, 1999) they believe that most of working students are having tough point organizing their studies while working.

For us researchers it isn’t affecting the performance of every individual. It depends upon the student who is working on how they classify their time. Every student has their own potential it is on how they manipulate and employ it. The matter Academic Performance of working Student centralizes about the act of those students depending in their studies. If they excel more in class or they perform less. What marks do they have? What subject they perform well? Are they coping up in their subjects? That is the main goal of the researchers. B.

Statement of the Problem 1. What are the factors that affect the academic performance of working students? ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____ 2. In which subject areas do working students excel in? in which subject do they perform less? a) English b) Programming c) Discrete d) Filipino e) Code of ethics f) Quality Consciousness g) Intro to Internet ) P. E 3. How do working students maintain their grades despite having a job? ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ___ C. Significance of the Study The researchers believes that working students, particularly Colegio De Dagupan will be benefited from the findings of this study since the study provides basis for awareness and better understanding of how working student’s study affected their academic performance.

Students will be given information on how study affects their academic performance. The result of the study will make them aware of the common study of Working Students among their co- education students. The worth of Working Student for ordinary Students, base on our survey some says that they gain more marks because they have inspiration. They can support themselves in their own way not relying in others. Unbelievable and inflexible is the right word to portray them because they motive every student. Parents will increase their motivation and improves their self esteem for their children.

Once they have can understand the importance of parent involvement they can begin to change the way they are living and truly get involved with the life of their child. Teachers will also be help in understanding better the diversity of learning of their students specially for working students and as understanding they will motivate them to get more effort for their study to get a good academic performance. As such, it is hoped that they could develop more effective methodologies in teaching their subject matter.

Community may be able to use the result of the study in farther research similar to what the study is. D. Scope and Limitation of the Study The scope of this research is the Academic Performance of Working Students here in Colegio De Dagupan of all year levels. The limitations of this research are only those working students that are currently enrolled at CDD and is having the prescribe study load for a given semester of year 2011-2012. Only those undergraduate working students are allowed to participate in the research. Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES According to Michelle Bell-In educational institutions, success is measured by academic performance, or how well a student meets standards set out by local government and the institution itself. As career competition grows ever fiercer in the working world, the importance of students doing well in school has caught the attention of parents, legislators and government education departments alike. Most likely, every student exceeds their limitations nowadays. They manage time in working, education, and social life.

For what reason that is, well, they do this in order to be able to pay up for education expenses. Some others just do this to earn a little extra spending money, for them to be able to buy something which they want to avail without them begging their parents for it. Basically, part time work is their only choice to get that money they need if they do not have student loans offered at their university. Some students need to pay up for rent, tuition, and etc. Working part time gives them the money and the thought of realizing how important it is.

They are also provided with the thought of handling their responsibilities very well if they work part time during college days. Indeed, working while studying can be tough to handle. It forces you to manage your time and your responsibilities. Sometimes, it makes you choose between the two. Students today tend to sacrifice their time for social life to earn some extra spending cash. They end up being way too busy to have a social life. They don’t even have enough time to sleep which affects their daily performance at school. They organize these responsibilities for a few income or profit. They do all of that for money.

Monopolistic Competition

Monopolistic Competition

Contents Question 1. 1 – Monopolistic Competitors3 Question 1. 2 Non-price competitors5 Question 1. 3 – Substitutes & Compliments6 Perfect substitutes as in the Chocolate Industry:7 Perfect complement8 Question 2. 1 – Structuralist model of the inflation process9 Question 2. 2 – Inflation targeting approach9 References9 Question 1. 1 – Monopolistic Competitors Monopolistic competition is a market situation in which there is a large number of sellers and large number of buyers whereas monopoly means a market situation in which there is only a single seller or supplier of goods and services in the entire market and large number of buyers.

South Africa’s chocolate market is a monopolistic market situation since it has got more than one supplier, the major ones being Cadbury and Nestle, and a rapidly growing large market – buyers, being “more than R3-billion, and growing at an estimated 3% per annum” according to Angela Zachariasen and Lorna Schofield, 31 July 2008. In monopolistic competition, there are close substitutes in the sense that products are different in terms of size, colour, packaging, brand, price, shape and so on as in case of chocolates, soap, toothpaste et cetra but in monopoly, there is no close substitute of the good.

Thus in monopolistic competition, products and services are not homogeneous but they are slightly differentiated from those of competitors. For example, Cadbury’s chocolate slabs, Dairy Milk, Top Deck, Wholenut, Mint Crisp Fruit & Nut or Lunch Bar can be easily substituted for Nestle`s brands that include Bar-One, KitKat, Smarties, Tex, Crisp, Rolo, Quality Street and Passions. Another feature of monopolistic competition is that firms engage in other forms of competition such as aggressive advertising but in monopoly, there is hardly ever any advertising.

This is mainly due to the fact that where there are many sellers each and every player would like to get a fair share of the market since it is impossible to get the whole market share, thus the need to advertise and do promotions. This closely identifies with the chocolate companies in South Africa, Cadbury and Nestle, that normally carry out vigorous advertising campaigns, in-store and outdoor promotions.

On the other hand, where there is only one market player, monopoly, there is no need for aggressive advertising campaigns rather the advertising in this situation serves to inform the public about certain organizational or operational changes and developments rather than to out compete rivalries. Another distinct feature of a monopolistic competition is that firms are free to enter or exit the industry.

As the market becomes lucrative, any firm can enter the market as there are no barriers to entry and when competition intensifies and becomes unbearable the same firm is free to exit the industry. The history of Cadbury and Nestle in South Africa goes back to the early 1900s, when both first established their factories in the Eastern Cape. On the other hand, a monopoly operates with no threat from other entries and can not freely exit the industry due to regulatory rules, nature of business and so on.

In monopolistic competition, demand curve faced by the firm is more elastic because of availability of close substitutes. It means if a firm raises its price, it will lose its large market share as customers in large will shift to close substitutes available in the market whilst in monopoly, the demand curve faced by the firm is less elastic because there are no close substitutes. The later implies that if the firm raises its price, quantity demanded will not drastically fall quantity as there is only one player in the market.

Unlike the monopolistic market in South African chocolate industry with 2 dominant players, Cadbury and Nestle, in a monopoly market situation entry is restricted and there are no close substitutes for that particular product and the later exists in some cases like where; 1. there are patent rights conferred upon a single firm for a product, 2. there is a limited strategic resource, 3. economies of scale are required in order to be profitable or 4. extensive financial resources or expertise is required to enter a market. MANCOSA, Economics Study Guide, 2010) The impact of monopolistic competition upon the chocolate industry in South Africa is that; there may be flooding of companies into the market and the firms’ individual share of the market may be drastically reduced resulting in lower profits or economic profits instead of the supernormal profits that firms so much desire in order to expand or grow. On the other hand, monopolistic competition compels firms to invest in research and development in order to increase production and operational efficiency a factor which support economic growth in the country.

The quality of service within the industry will be generally increased not mentioning the lower prices that firms will have to charge on the chocolates in order to remain in business. The lower prices will then imply that a firm has to come up with other non-price competing strategies such as product differentiation, advertising, promotions and so on. Question 1. 2 Non-price competitors Non-price competition is a marketing strategy “in which one firm tries to distinguish its product or service from competing products on the basis of attributes like design and workmanship” (McConnell-Brue, 2002, p. 3. 7-43. 8). The firm can also distinguish its product offering through quality of service, extensive distribution, customer focus, or any other sustainable competitive advantage other than price. It can be contrasted with price competition, which is where a company tries to distinguish its product or service from competing products on the basis of low price. Non-price competition typically involves promotional expenditures, such as advertising, selling staff, sales promotions, coupons, special orders, or free gifts, marketing research, new product development, and brand management costs.

Firms will engage in non-price competition, in spite of the additional costs involved, because it is usually more profitable than selling for a lower price, and avoids the risk of a price war. Although any firm can use non-price competition, it is most common among monopolistically competitive firms. The reason for this is that firms which operate in the monopolistically competitive market are price takers, that is, they simply do not have enough market power to influence or change the price of their good.

Consequently, in order to distinguish themselves, they must use non-price means. Monopolistic competitors are also known as non-price competitors as can be illustrated by wide product range competition by Nestle and Cadbury. Both companies have a got a very wide product range and are vigorously growing the product range with Nestle investing heavily in the East London plant increasing its chocolate-producing lines from six to eleven in 2007 while Cadbury chocolate manufacturer continue to invest significantly in its Port Elizabeth, Nelson Mandela Bay manufacturing plant.

In a monopolistic market situation, competition ceases to be based upon prices since there are many buyers and sellers of the same product. A slight increase in the price results in reduced quantity demanded whereas a cutting on the price results in a firm making losses. To this end, the only logical way to compete in such an industry will be to concentrate on other strategies such as baring, advertising, quality service, differentiation and promotions.

Differentiation: Here the business concentrates on achieving superior performance in an important customer benefit area, such as being the leader in service, quality, style, or technology—but not leading in all of these things. For instance Cadbury differentiates itself through leadership in manufacturing plant by having a world-class chocolate manufacturing plant, situated in Port Elizabeth, Nelson Mandela Bay. . Question 1. 3 – Substitutes & Compliments A substitute good, in contrast to a complementary good, is a good with a positive demand.

This means a good’s demand is increased when the price of another good is increased. Conversely, the demand for a good is decreased when the price of another good is decreased. If goods A and B are substitutes, an increase in the price of A will result in a leftward movement along the demand curve of A and cause the demand curve for B to shift out. A decrease in the price of A will result in a rightward movement along the demand curve of A and cause the demand curve for B to shift in. Classic examples of substitute goods include margarine and butter, or petroleum and natural gas.

The fact that one good is substitutable for another has immediate economic consequences: insofar as one good can be substituted for another, the demand for the two kinds of goods will be bound together by the fact that customers can trade off one good for the other if it becomes advantageous to do so for example in the case of the chocolate industry where one can easily trade off one brand chocolate for another. An increase in price (ceteris paribus) will result in an increase in demand for its substitute goods. For example if Cadbury increase prices for its chocolate slabs, then demand for Nestle chocolates will increase as ustomers respond to the price increase. The extend of the demand for substitutes then depends on the price sensitivity of the market. If the buyers are very sensitive then demand for substitutes increases sharply but if customers are not so much price sensitive then there will be only a slight increase in demand for substitute chocolates from Nestle or other brands. It is important to note that when speaking about substitute goods we are referring to about two different kinds of goods; so the “substitutability” of one good for another is always a matter of degree.

One good is a perfect substitute for another only if it can be used in exactly the same way for in the Chocolate Industry. In that case the utility of a combination is an increasing function of the sum of the two amounts, and theoretically, in the case of a price difference, there would be no demand for the more expensive good. Below is a diagram illustrating Perfect substitutes as in the Chocolate Industry: Indifference curve for perfect substitutes Perfect substitutes may alternatively be characterized as goods having a constant marginal rate of substitution.

Alternative brands of chocolates may be used as an example of perfect substitutes. As the price of Cadbury chocolates rises, consumers would be expected to substitute these for example, Lunch Bar, in equal quantities by another brand such as Nestle’s Bar One or Kit Kat, thus total chocolate consumption would remain constant. Thus if one manufacturer raises the price of its chocolates, consumers would be expected to switch to a lower cost manufacturer. A complementary good, in contrast to a substitute good, is a good with a negative cross elasticity of demand.

This means a good’s demand is increased when the price of another good is decreased. Conversely, the demand for a good is decreased when the price of another good is increased. If goods A and B are complements, an increase in the price of A will result in a leftward movement along the demand curve of A and cause the demand curve for B to shift in; less of each good will be demanded. A decrease in price of A will result in a rightward movement along the demand curve of A and cause the demand curve B to shift outward; more of each good will thus be demanded.

Examples of complementary goods include: Peanut butter and jelly, Printers and ink cartridges, DVD players and DVDs, Computer hardware and computer software. Below is the diagram of complementary goods: Perfect complement Indifference curve for perfect complements A perfect complement is a good that has to be consumed with another good. The indifference curve of a perfect complement will exhibit a right angle, as illustrated by the figure at the right. Few goods in the real world will behave as perfect complements.

One example is a left shoe and a right; shoes are naturally sold in pairs, and the ratio between sales of left and right shoes will never shift noticeably from 1:1 – even if, for example, someone is missing a leg and buys just one shoe. In marketing, complementary goods give additional market power to the company. It allows vendor lock-in as it increases the switching cost. However, complementary goods have got minimal or no effect at all on chocolate companies such as Cadbury and Nestle. Question 2. 1 – Structuralist model of the inflation process Structural models carry positive connotations in economics.

The usefulness of any model is related to the purpose of analysis. One of the main concerns of Central Banks around the world is to understand the dynamics of the inflation process and to forecast as accurately as possible the future path of this variable. With respect to the former objective, New Keynesian Dynamic Stochastic General Equilibrium (DSGE) models have recently been the more popular choice. These provide a more structuralist approach to the inflation process. A structural model is synonymous with a model which is made up of equations that are derived from (or at least consistent with) modern macroeconomic economic theory, i. . , each equation has a structural interpretation. Accusations from COSATU and SACP of narrowed scope of policy changes effects indicate that there was a perception that there was no structural interpretation to inflation targeting. It would appear that when it comes to forecasting, on the whole DSGE models appear to do better in explaining the longer-term evolution of variables while atheoretical time-series approaches have been shown to forecast better in the short-term. The reasons for using the structural frame of the New

Keynesian Phillips Curves (NKPC) within models are twofold: (i) to afford a role for inflation expectations in forecasting models (ii) There is some evidence that the present-value form of the NKPC equation, in conjunction with forecasts for future marginal costs, is somewhat successful at forecasting inflation. Question 2. 2 – Inflation targeting approach Inflation targeting is an economic policy in which a central bank estimates and makes public a projected, or “target”, inflation rate and then attempts to steer actual inflation towards the target through the use of interest rate changes and other monetary tools.

Because interest rates and the inflation rate tend to be inversely related, the likely moves of the central bank to raise or lower interest rates become more transparent under the policy of inflation targeting. Examples: •if inflation appears to be above the target, the bank is likely to raise interest rates. This usually (but not always) has the effect over time of cooling the economy and bringing down inflation. •if inflation appears to be below the target, the bank is likely to lower interest rates. This usually (again, not always) has the effect over time of accelerating the economy and raising inflation.

Under the policy, investors know what the central bank considers the target inflation rate to be and therefore may more easily factor in likely interest rate changes in their investment choices. This is viewed by inflation targeters as leading to increased economic stability. As an example, since 2006 South Africa increased interest rates by five percentage points to track a rise in inflation (based on CPIX) even though the rise in CPIX was due to the supply shocks of worldwide fuel and food price increases. Following the global financial crisis of 2007–2010 the prime lending rate was decreased to 2006 levels, but it still remained high at 7. %. The reduction also came too late for the housing market and motor manufacturer and retail industry all of which suffered heavy losses due to the pressure on consumer borrowing. This in turn led to job losses in these sectors. According to a speech made by the then Governor of the Reserve Bank of South Africa, Mr T T Mboweni on the 2nd of September 2003 at a Management dinner advantages of inflation targeting outweigh the disadvantages. Although Mr Mboweni did mention that inflation targeting, if pursued at any costs, ran the risk of inefficient output stabilisation.

Significant supply shocks to the economy such as sharp oil price movements, can require very large monetary-policy adjustments to bring inflation back inside the target range within the stated time horizon. For such exceptional events, some discretion and patience in re-achieving the target range should therefore be allowed for. Herein is a quote of his speech “The advantages of inflation targeting are also worth highlighting. Firstly, transparency – the concept is easily understandable, with the ultimate policy objective translated into an explicit target value.

Secondly, inflation targeting provides enhanced clarity about the objective of monetary policy, which is conducive to sound planning in both private and public sectors. Thirdly, the framework provides for improved accountability of the Reserve Bank. It eliminates the need to rely on a stable relationship between the money stock and inflation, which has become increasingly difficult to identify; inflation targeting enhances economic policy co-ordination with government and the central bank both publicly committed to the same inflation target.

And lastly inflation targeting provides an anchor for inflation expectations and price and wage setting, thus reducing the friction which arises from widely divergent inflation expectations. ” References 1. Carbaugh, Robert (2006). Contemporary Economics: An Applications Approach. Cengage Learning. 2. Mankiw, Gregory (2008). Principle of Economics. Cengage Learning. 3. Steven M. Sheffrin (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. 4. MANCOSA Economics Module, 2010

Styles of Love

Styles of Love

There are several different styles of love, many of which people go through before they actually may reach a point of commitment. Some people never reach the point of commitment and continue through their life in cycles of different love styles. Here are a couple of different scenarios that show different styles of love: Mary and John are in college together, but they have known each other for several years now. They have always turned to each other when their relationships go bad. But recently Mary has started developed feelings for John, she feels as though they could have a great intimate relationship.

They always communicate well. John is just afraid that if something does not work out, their friendship may be at risk. This scenario would be based on Hendricks style of love known as friendship. This theory basically states that, “The best love grows out of an enduring friendship” (Rathus, Nevid, & Fichner-Rathus, 220). Sternberg would refer to this relationship as a intimate one, meaning true friendship without passion or long-term commitment. Angie and Chuck are also in college together, but they have a different kind of relationship.

Angie seems to be head over heels for Chuck, she would do anything for him. She even thinks that she would give up things for herself to make him happy. Chuck does not quite feel the same way though, he will not commit totally to Angie and because he feels that it is easy come, easy go. If he loses her, he can just pick up another girl next week. There are two different styles of love here; one is what Hendricks would classify as selfless love and the other is game-playing love. Chuck is playing games with Angie; he keeps stringing her along but does not feel that he would be at a loss if she left.

Angie, on the other hand, is thinking that she would do anything for him just to help him (Rathus, Nevid, & Fichner-Rathus, 220). These styles of love are similar because they are just that, different styles of love. However, all of them are different because I believe they are different stages that we go through in life. The friendship love is one that they do already have the communication in line. The game-playing love is one that I am not sure people are really even serious about the person but it keeps them company for the time being that is why they will not commit.

The selfless love is different because the person is forgetting about themselves and their needs. I believe all three of these styles need other styles of love to be complete in a fulfilling relationship. In my life right now, I have a consummate love. I believe that my husband and I have a complete love consisting of passion, intimacy, and commitment. We have closeness and a bond that lets each of us know that we are there for one another through good or bad times. We have a passion that continues to burn for one another in our marriage.

I have been through several of Hendricks’ styles of love through my life especially when I was younger. I have played the game-playing love, when I went through my divorce. I wanted someone but I did not want to commit to that person. I have had that logical love even with my current husband where I looked at him and wondered what kind of father he would be to our children. My first marriage was more of what Sternberg would refer to as a companionate love. We were committed to one another but the passion faded over time and we could not seem to get it back.

I believe that we were in love but we grew up and when we did, we both realized we wanted different things in life. Everyone feels love in different degrees and ways, some for short periods and some for long periods. Some people never want commitments because of fear of being hurt, others spend their whole life trying to find someone that will commit to them. References Rathus, S. A. , Nevid, J. S. , and Fincher-Rathus, L. (2005). Human sexuality in a world of diversity. (6th ed. ) Boston, MA: Allyn and Bacon.