Assignment
Explain in detail with appropriate terminology.
Part I
A. Choose a company that can be a U.S. firm, or a firm from any country that is easily researchable using search engines.
B. Identify the name of the firm, and then provide a brief description of the goods and/or services that the firm sells.
C. Think about the six ways to achieve economies of scale and describe how to apply the following to the company in order to achieve economies of scale:
a. Specialization: How can this be applied to your business specifically to achieve economies of scale?
b. Division of labor: How can this be applied to your business specifically to achieve economies of scale?
c. Advanced technology: How can this be applied to your business specifically to achieve economies of scale?
d. Automation devices: How can this be applied to your business specifically to achieve economies of scale?
e. Quantity discounts: How can this be applied to your business specifically to achieve economies of scale?
f. Financial strength (credit): How can this be applied to your business specifically to achieve economies of scale?
D. Other than the six ways to achieve economies of scale in #3, what other ways could managers of the company increase operational efficiencies? Decrease the law of diminishing returns?
E. Applying what you have learned, if you were the manager of a large business firm that is unable to achieve economies of scale, would you recommend that the firm cease operations and close? Why or why not?
Part II
A. Describe the basic procedure of the Open Market Operations tool when it is used to engage in U.S. expansionary monetary policy.
B. Then, describe the basic procedure of the Open Market Operations tool when it is used to engage in contractionary monetary policy.
C. As a business manager monitoring the actions of the Federal Reserve, you observe that the Fed has been implementing contractionary monetary policy in the use of all of its basic tools, and this policy is likely to continue for the next year or so. Based on this information alone, explain if this would be either a good or a bad time for your firm to engage in additional borrowing to help expand your business operations.
D. International monetary policy: Choose a non-U.S. country and research how that country has recently engaged in expansionary monetary policy. What country did you research? What mechanisms did the nation use? In what year? What was the goal of this policy? What was the impact of this policy?
E. International monetary policy: Choose a non-U.S. country and research how that country has recently engaged in contractionary monetary policy. What country did you research? What mechanisms did the nation use? In what year? What was the goal of this policy? What was the impact of this policy?