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Report on Globalization Effect on Consumers and Firm

   

Added on  2019-12-18

12 Pages3383 Words194 Views
ECONOMY LITERACY1

Table of ContentsINTRODUCTION................................................................................................................................3TASK 1.................................................................................................................................................3TASK 2.................................................................................................................................................5TASK 3.................................................................................................................................................7TASK 4.................................................................................................................................................8CONCLUSION..................................................................................................................................10REFERENCES...................................................................................................................................112

INTRODUCTIONEconomy literacy is a very effective tool for the growth of the company, basic economyconcepts are apply to save, spend and share the money. Financial economy states the idea of earnthe money and make it profitable for the firm(Almenberg and Dreber, 2015). This report includesthe globalization effect on consumers and firm and also the movement of demand curves. Moreover,it includes the market structure competition and the circular flow of income as well. In addition tothis, examine the financial statements and the concept of capital structure or analyse the four phasesof management accounting.of capital structure or analyse the four phases of managementaccounting.TASK 11. Examine the globalization affects the consumers and firmGlobalization has the great impact on the consumers and the firm in the way of positivitylike improvement of production rate, increasing the product variety and quality for the consumers,low price rates and many more(Babiarz and Robb, 2014). These factors has the great impact on thedemand of the consumers and growth rate of the Tesco. Internet is the very effective source toimprove the customer's rate towards the firm and increase their growth rate and also the desire rateof the products. Globalization affects the firm in the form of rapidly changes the technology and theinformation transfer and these factors are also affect the consumer rate of the organization(Wiseand Nutbeam, 2015).2. Movement and shifting of the demand curveDemand curve mainly describe the graph between the relationship of the price of the productand the amount of the consumers who are willing to buy that product on given price. Increasing theprice rates and the decrease the demand and vice versa, this consider as a shifting of the demandcurve. If demand is decrease the demand curve is shifted left and vice versa, there are severalfactors that affect the demand of the customer's like decreasing the quality rate of the product andmainly the price increment. An increasing the demand rate is caused the curve to be shift right andthe factors are good is a normal good and fall in the price rates and more.3

3. Compare the economies of scale and diseconomies of scaleThese both factors referred as the changes in the price of output and result in the levels ofoutputs. Tesco would have achieve the economy of scale when the cost of products will decreaseand the demand from the customer is increases accordingly. Economy of the scale mainly consistthe two type of cost like fixed cost and variable cost, variable cost vary according to the productrate changes and the fixed rate is not changed(Prete, 2013).Diseconomies of the scale mainly consist the point at which Tesco increase their productionrate and cost as well. For this factor number of inefficiencies of the scale factor in extended. Asmuch more the product units rises that results in the cost per units also rises(Choi and et.al., 2014).4. Analyse the determinant of supply in TescoTesco change their prices of the products and for that the quantity supply of the product alsochanged gradually. Retail sectors can directly affected by the determinants of supply, There aresome determinant which affect the supply and these are given below:Production cost: Factors affect the production rate which are; government rules andregulation, taxes, input prices and wage rate. Higher production cost and gain the lowerprofit so this is the main determinant that affect the supply.Technology: For the higher supply rate, technology has the great and major role to reduce4

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