logo

Managerial Economics in a Global Environment Assignment

   

Added on  2021-04-21

10 Pages1979 Words47 Views
Calculus and AnalysisEconomics
 | 
 | 
 | 
Running head: MANAGERIAL ECONOMICS IN A GLOBAL ENVIRONMENTManagerial economics in a global environmentName of the studentName of the UniversityAuthor note
Managerial Economics in a Global Environment Assignment_1

1MANAGERIAL ECONOMICS IN A GLOBAL ENVIRONMENTTable of ContentsIntroduction:....................................................................................................................................2Critical analysis of the article:.........................................................................................................2Theoretical economic concepts according to the article:.................................................................3Governmental policy issue to gauge the situation:..........................................................................4Economic discrepancies of the article:............................................................................................5Conclusion:......................................................................................................................................6Reference:........................................................................................................................................8
Managerial Economics in a Global Environment Assignment_2

2MANAGERIAL ECONOMICS IN A GLOBAL ENVIRONMENTIntroduction: US housing sector crisis is one of the most dared crisis that the world economy has everfaced since the great depression of 1929 (Kumhof et al. 2015). Due to the subprime mortgagecrisis, record reduction in the housing price has been prevailed in the US economy for almost 6years (Summers 2015). With successive stimulus package and through policy reforms, USgovernment has gauged the situation largely; however, according to the purview of theeconomists, the country is yet to face another GFC like situation. Through this report, aneconomic article “Are we heading toward another subprime mortgage crisis?” published in CNNwill be discussed from the perspective of various economic tools like supply and demand,scarcity, elasticity and comparative advantage. The report is meant analyse and understand thelanguage and tools of economic analysis of a contemporary economic news article and find outhow economic tools are used in economic news reports. Critical analysis of the article:The selected article highlights the US subprime mortgage situation, where it hasportrayed the pre 2006 and present situation with through the analysis of difference in keyeconomic factors. The report has pointed that the US economy is presently facing gap in thedemand and supply due to rise in price and substantially ineffective demand (Poole, 2018). Inaddition to this, the report highlights that though there is governmental presence to support anymarket failure in present day, lack of principal in the market economy is yet to bring in cripplingblow to the economy. This would not only affect the comparative advantage that the US housingenjoys at present days, moreover hamper the US insurance sector too. Lastly, it is important tohighlight that the report argues lack of active participation of the Fed and rise in rate of interestin successive quarters is aimed to encourage foreign investment, however volatility is
Managerial Economics in a Global Environment Assignment_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Sample Assignment on Economics (pdf)
|11
|2433
|727

Advance Issues In Accounting
|8
|1974
|76

Global Financial Crisis and Dotcom Bubble
|6
|961
|300

Global Financial Crisis of 2008: Impact on International Financial Institutions
|7
|2179
|104

Analysis of Housing Market in Australia: Demand-Supply Dynamics
|8
|1512
|242

Analyzing the Housing Market of Australia with Demand and Supply Concepts
|16
|3089
|462