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CIMA Study Systems 2006: Economics for Business (CIMA Study by Steve Adams

By Steve Adams

The 2006 variation of CIMA's professional examine platforms are released via Elsevier on behalf of CIMA. Key sections of the 2006 research platforms are back written through examiners so every one textual content absolutely displays what may be confirmed within the examination. up-to-date to include legislative and syllabus alterations, the 2006 research structures supply whole research fabric for the may possibly and November 2006 checks. the recent version keeps the preferred loose-leaf layout and includes: * perform questions all through * whole revision part * subject summaries * suggested analyzing articles from a number of journals * CBA variety mock examination * The reputable learn platforms are the one examine fabrics recommended by means of CIMA * Key sections written by means of examiners for the main exact, up to date counsel in the direction of examination luck * entire built-in package deal incorporating syllabus assistance, complete textual content, suggested articles, revision publications and broad query perform

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Example text

Public policy in respect of competition and regulation is considered. On completion of this chapter students should be able to: " explain the function of a market economy; " explain how the price system works by applying appropriate economic concepts; " explain and illustrate how product and factor markets operate; " apply basic economic analysis to explain economic and business issues; " explain the behaviour of business costs in both the short and long run; " explain the economic factors which affect the structure, behaviour and performance of individual businesses and industries; " analyse the process of competition in different market structures; " identify the public issues that are raised by business activity; " explain how government might respond to the effects of business and the environment.

The Cantonese work ethic that built Hong Kong has created a culture where overtime is endemic and the sound of construction can be heard throughout the night. The catalyst for the delta’s explosive export growth is globalisation. China joined the World Trade Organisation last year. Increasing competition, falling transport costs and flagging consumer demand are forcing multinational manufacturing companies to flock to the region with the lowest production costs. In Dr Martens’ case, fierce price competition from rival US brands already produced in China forced the company’s hand.

The roles of the consumer and the firm are examined. The impact of consumer behaviour, both individually and collectively, on demand allows the introduction of concepts such as utility, substitution and elasticity. The idea of time periods is featured as the theory of supply is developed. The derivation of supply by both firms and an industry is demonstrated. Demand and supply are then put together to show how market prices are determined. The concept of market equilibrium is developed. The theory of the firm is developed.

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