Krugman Book response paper (2 pages) Essay Example | Topics and Well Written Essays - 1000 words

Krugman Book response paper (2 pages) - Essay Example However, this paper attempts to show that Krugman’s ideas are somewhat simplistic and cannot be applied in the modern economies. First, Krugman argues that in order to recover from the effects of inflation and ensure sustainable growth, it is important to aim for â€Å"moderately higher inflation† of around 4 percent (Krugman, 219). According to him, inflation helps to lower the value of debts such as mortgages which cause depression. This will in turn cause the economy to recover. One factor overlooked by Krugman is that inflation in itself will cause other problems that will significantly affect the growth of the economy. For example, higher inflation rates would mean that the price of domestic products will be high, and this will make the US unattractive to other countries in doing business. The total value of exports will be reduced. Considering the US and most of European countries rely on exports, inflation will simply lead to slow growth. The real problem is not in the lack of demand but the lack of adequate production. Unfortunately, this cannot be addressed by increasing the money in the econo my. This approach as proposed by Krugman will lead to trade deficits. Secondly, the author also focuses on the issue of debt, and argues that the effect of deficits for the American economy is â€Å"for the most part, hypothetical†. He argues that the burden caused by debt is less compared to that caused by unemployment. He does not believe in the idea of a debt crisis. However, it can be argued that an increase in debt does not help to increase the quantity of productive capital. Increased debt will in fact lead to some â€Å"fictitious capital†, and this can only address the problems in the short term. In the long term, the amount available for the private sector to save is greatly reduced, and this will lead to slower economic growth. As a result, few job opportunities will be created, and the same problems will resurface. It is no doubt that US

Formal Business Report Essay Example | Topics and Well Written Essays - 1500 words

Formal Business Report - Essay Example imarily taken as benchmark because it is one of the biggest success stories within the fashion industries that have been able to retain its competitive edge even in the tough economic conditions. The firm, ABCD Fashions is recommended to follow the model of Zara and expand its operations globally, especially in emerging economies like India, China. The consultancy report is prepared by the Marketing Manager for the Board members of UK based fashion retailer, ABCD, on the potential of expanding the business across the globe. The major purpose is to recommend the best way to proceed over the next three years in the current competitive business environment. ABCD Fashion is a high-end UK garment retailer which is facing huge competition from domestic and foreign apparel houses. While Primark and Tesco attract customers with their low cost fashion garments, Mark & Spencer, Zara etc. offer a wide range of high-end garments which become very attractive for customers during discount seasons. Today, contemporary fashion is more influenced by the changing socio-cultural paradigms of rapid globalisation and the myriad channels of communication such as the Internet, international magazines, TV etc. have evolved as crucial tools that facilitate greater awareness regarding the changing fashion trend across the customers. Moreover, lack of variety in fashion clothing, problems of cultural biases faced by retailers and the recessive trend in the economy have significantly impacted the performance of the firm and the industry in general. The company therefore, needs to evolve innovative strategy and creative input within its operations to identify a nd exploit new opportunities of growth. Another similar business, Zara, a member of the Inditex group of Spain, was studied and used to compare and contrast the business imperatives vis-Ã  -vis Strategic orientation towards product-market development; competitive strategy pursued; product innovation; technological innovation; and