Companies hope to keep their price elasticity of supply high to remain nimble should the price of their products shift. That is, they want to be able to capture more profit should prices rise or trim production should prices fall. To help boost PES, companies can do several things. These i...
The law of supply and demand is also reflected in how changes in the money supply affect asset prices. Cutting interest rates increases the money supply; however, the amount of assets in the economy remains the same but demand for these assets increases, driving up prices. More dollars are c...
Kitamura, Hiroshi, Noriaki Matsushima, and Misato Sato (2013), "How Does Downstream Firms' Efficiency Affect Exclusive Supply Agree- ments?," Institute of Social and Economic Research, Osaka University.Kitamura, H., Matsushima, N., and Sato, M., 2016a. How Does Downstream Firms' Ef- ...
It is an economic state where prices of goods and services decrease over time. When the supply of money is fixed, deflation is the natural state of the economy. It’s caused by factors like technological progress, globalization, and falling business operating costs. However, as deflation might...
Shipping delays can have significant repercussions for businesses, potentially driving customers to seek alternatives if their orders are consistently late. While certain aspects of the supply chain are beyond your control, you can implement strategic measures to both prevent delays and minimize their imp...
B. The money supply will not change Why do bonds decrease in value when interest rates rise? How does fixed interest rate work? How do Interest rates affect international business? Explain how the prices of bonds were affected by a change in the risk-free rate during the credit crisis. ...
How are risks spread across the supply chain? While not being able to put a number on fair prices is frustrating for buyers, direct trade creates the opportunity they need to assess their sourcing practices. This is the foundation of a solid sourcing strategy with real impact. Want...
This paper examines how supply chain networks affected the resilience of firms to the Great East Japan Earthquake, particularly looking at the effects on the time period before resuming operations after the earthquake and sales growth from the pre- to the post-earthquake period. The results indicate...
When the economy heads toward a recession, it's natural for investors to worry about falling stock prices andthe impact on their portfolios. At the same time, you may hear reports ofdropping housing starts, increased jobless claims, and shrinking economic output. But what do house building and...
When Changes in Money Supply Do Not Cause Inflation There are several situations that occur where increases in the money supply do not cause inflation. Economic growth may match money supply growth.If the level of economic growth is equal to the level of money supply growth, prices traditionally...