Analyze the economic and sociological forces that drove the market equilibrium to unsustainable heights

1) As a manager, it is important to understand how the business cycle affects supply and demand, prices, and how economic shocks will impact your company’s markets, supply chain, and financing. The recent collapse of the housing market, the near failure of our financial system, the wild swings in commodity and stock prices, and the deep recession of 2007-2009 provide a virtual laboratory for the study of the economic shocks and stabilization measures taken to restore equilibrium.

Create a 1,400-word analysis based on the team’s assigned market in which you include the following:

  • Analyze the economic and sociological forces that drove the market equilibrium to unsustainable heights and the shocks that brought the markets back down. What might be done to moderate the effects of these economic swings?
  • Discuss specific changes in supply and demand.
  • Examine prior government policies and legislation that exacerbated the impact of the shocks.
  • Evaluate the actions of the federal government and the Federal Reserve to restore equilibrium. How effective were these counter-cyclical policies?

Cite a minimum of three peer reviewed sources not including the text.

2) Develop a 1,750-word analysis of the international economy in which you do the following:

  • Analyze measures of economic growth, and comparative and absolute advantage in international trade for the following countries:
    • USA
    • China
    • Saudi Arabia
    • Democratic Republic of Congo
  • Research each country, using such resources as the CIA World Fact Book, World Bank data, and World Trade Organization. Research its economic, political, and cultural development.
  • Compare the following using tables or graphs, for most recent year available and for 2009 (the trough of the last economic cycle):
    • Country GDP per Capita
    • Country GDP as a % of World GDP
    • Country exports per capita
    • Country exports as a % of GDP
    • Country exports as a % of World exports.
    • Country imports per capita
    • Country imports as a % of GDP
    • Country imports as a % of World imports (world imports = world exports)
  • Discuss reasons why the economic growth of the four countries varies so markedly. How does trade influence the strength of the economy worldwide?
  • Determine the stage in the lifecycle for each country’s economy.
  • Discuss the following for each country:
    • At least two products that have provided the country an absolute advantage in trade (if any)
    • At least two products that have provided the country a comparative advantage in trade
    • Factors that have prevented a country from achieving either

Cite a minimum of three peer reviewed sources.

 
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