The Global Economic System: How Liquidity Shocks Affect Financial Institutions and Lead to Economic Crises by George Chacko, Carolyn L. Evans, Hans Gunawan and Anders L. Sjoman(2011)

This book examines the different global financial systems; in particular the focus is on liquidity. It not only looks at the way these institutions work but also what causes them to fail. If you want to know how a financial crisis really impacts an economy this will be an indispensable text. It does not cover all the aspects of global economics, but it does provide an insightful look at the liquidity crisis in an international context.

The Travels of a T-Shirt in the Global Economy: An Economist Examines the Markets, Power, and Politics of World Trade by Pietra Rivoli (2009)

This book only focuses on a tiny aspect of the economy – the life of a t-shirt. By looking at just this one product though, the writers are able to delve into many aspects of the global economy. It is a truly fascinating read and you are sure to pick up plenty of new information. This book shows how the different parts of the global economy fit in with each other. It does all this with just a simple t-shirt as a starting point.

The Economics of Global Turbulence by Robert Brenner(2006)

This book offers a unique look at the current global economy. The views reached in the text won’t be shared by everyone, but the arguments provided by the author are compelling and backed with evidence. This is an easy book to read and many readers will find that it is hard to put down.

Managing in a Global Economy: Demystifying International Macroeconomics by John E. Marthinsen (2007)

Although this book is written specifically for MBA students it is suitable for almost anyone with an interest in international macroeconomics. The author does a good job of explaining this topic in simple terms and with plenty of real world examples. By the time the reader has finished a few chapters they should feel that they understand the global economy a lot better. It is also good book to have in your library for reference purposes.

The Complete Idiot’s Guide to Global Economics by Craig Hovey and Gregory Rehmke (2008)

I’m not a huge fan of the Complete Idiot’s Guide series but this book on Global economics is one of the better ones. It covers all the main topics in enough depth to allow the reader to get a good idea about the main issues. This is probably more useful as an introduction from which to explore issues further with more reading. If you just want a basic understanding of global economics it will be perfect.

Price Elasticity in the Real World

Price elasticity is also concerned with the amount people will be willing to pay for a product. If somebody has a low income they may be only willing to pay less for a product than somebody with a higher income. The person with the low income could be described as having low price elasticity because they are limited in the amount of money they can spend. Alternatively the individual can be said to have high price elasticity because they can afford to spend a lot more money on a product.

An understanding of price elasticity can greatly help our understanding of how things happen in the real world. If there are many similar products available then increasing price of one brand will usually lead to a fall in demand. This is because consumers can see that they can get a similar product for a cheaper price. If the item has a unique place in the market then price elasticity can have a different effect. A good example of this is gasoline. Even when prices increase at the pump the demand will stay almost constant. This is because there are no alternatives and people feel that buying this fuel is a necessity. If a unique item isn’t a necessity then people may respond to a price increase by just not using it anymore.

The Importance of Price Elasticity

An understanding of price elasticity can be very important for anyone who intends to sell products. They will want to know what is likely to happen should they decide to increase or decrease the price for their goods. There are complex mathematical formulas that can allow good predictions of price elasticity and these can be very useful. If a manufacturer can see that by raising their prices they will earn more money it will be a good path to follow. So long as the profits from the price increase outweigh any drop in demand it will be a good move. In fact with some products a price increase can actually increase demand because it makes them appear more exclusive.

The manufacturer or seller will also want to know what will happen if they reduce their prices. If this were to lead to an increase in demand then it could be a very shrewd move. If price elasticity is high the company may be able to make a lot more money by reducing the amount they charge for their products. Alternatively if decreasing the price of products is unlikely to have much impact on demand the company will want to know this before they make such a move.

The Need for Data Analysis

There are many organizations and businesses around the world collecting data. If you walk down any street you are almost sure to be stopped by somebody with a clip board wanting to ask you questions. This individual is trying to collect data that can be later be used in any number of ways. As well as the questionnaire survey type of data collection three is also observational, measurement, and many other ways to collect it. Almost anything that can be quantified can be used to produce some type of statistics.

The goal of data analysis is to highlight the important information that exists among the collected numbers. Of course, deciding what is important and what isn’t will always be a value judgment. What is important will usually be decided by whoever is paying for the research.

It is probably easier to describe how all this works by way of an example. If a business decides that it wants to market its products to teenagers they will usually spend some time doing research. They might decide to use surveys as a way to find out what this group likes and doesn’t like. Interviewers might then stop X number of young people in a popular part of town and ask them predetermined questions. This will produce a mass of data which can then be analyzed for the relevant information – what the group likes and doesn’t like. This information will then be presented in such a way that it is easy to digest; probably using bar graphs and pie charts. This data will also show trends and allow for predictions.

The Dangers of Data Analysis

If any group wishes to produce data that supports their views or proposals they can mess around with the data. To do this they only have to look for anything that supports their position and ignore anything that doesn’t. By doing this they can create a persuasive argument that may fool a lot of people. The data they are using isn’t telling lies, but it just isn’t telling the full story and so is misleading. There can also be tricks used in how the data is collected in the first place. If you only sample people who are sympathetic to your ideas then this can lead to very biased statistics.

Cartoon Guide to Statistics by Larry Gonick and Woollcott Smith

This book is perfect for people who want a simple introduction to statistics. The cartoons make the subject easy to comprehend and are actually quite fun. Even some very complex statistical ideas are made easy through the use of cartoons. If you want to learn all about basic statistics without putting in a lot of effort then this might be the best book to choose.

Essentials of Statistics for Business and Economics by David R. Anderson, Dennis J. Sweeney and Thomas A. Williams (2008)

This is one of the easier textbooks that will be of value to anyone who is interested in learning a bit more about economic statistics. It is used in many university courses; both undergraduate and graduate. The focus is on core topics but the book does do a good job of covering most of the topics that people will want to learn about this subject.

MBA Fundamentals Statistics by Paul W. Thurman (2008)

This book is aimed at MBA students but may be of benefit to practically anyone. It is a simple introduction to statistics that provides all the important statistical information that students will need to pass their MBA course. This is a Kaplan book so you know that the material is going to be high quality.

Introductory Statistics for Business and Economics – 4th Edition – by Thomas H. Wonnacott and Ronald J. Wonnacott (1990)

This is another introduction text that will be useful for people who are new to economic statistics. The authors have made sure to keep the text clear and have avoided any unnecessary confusing material. Those who read this book should walk away with a good basic understanding of the subject. Introductory Statistics for Business and Economics is now frequently used in academic courses to introduce students to the topic. It is also going to be equally useful to people outside an academic setting. This is a good book to have in your library and you are sure to want to go back to it again and again in the future.

Business Statistics – 5th Edition- by Douglas Downing Ph.D. and Jeffrey Clark Ph.D.(2010)

This book goes into great detail about how statistics can be actually applied in a business setting. It provides plenty of good examples that highlight how these numbers are used in reality. This text tends to get referenced a lot because it is well respected for providing clear explanations of complex statistical ideas. This book is perfect for business people as well as students. It is commonly required reading on MBA courses.

There are both similarities and differences between NAFTA and the European Union. The main similarity is that both of these agreements involve a single approach to trade between the countries. The way that the agreements differ is that most of the European Union now has a single currency.

How NAFTA Works

The North America Free Trade Agreement has been in place since 1994. It was a controversial idea, but the plan was that such a move would not only promote prosperity but also bring the countries closer together. Since the time of its introduction there has been an additional two agreements added to it; the North American Agreement for Economic Cooperation (NAAEC) and the North American Agreement for Labor Cooperation (NAALC). All these different agreements share the same basic motive which is to make it easier for business to flourish within North America.

Before NAFTA there were many complaints about the rate of tariffs between different countries in North America. This made moving products from one country to another less attractive because there would be less profit to be made. By removing many of these tariffs it encouraged businesses to sell their goods and services across the whole of North America. This is good news because it greatly increases the number of potential customers that any business will have.

The Impact of NAFTA

Even those people who were initially critical of the North America Free Trade Agreement have needed to admit that it has been successful. The increase in trade between the US and Mexico has risen dramatically in recent years as a result of this legislation. By removing high costs associated with moving products between countries a lot of businesses have been able to expand their operations. It is great for the consumer because it means that they now have access to a lot more products that are available at reasonable prices. As part of the NAFTA agreement it is now necessary to provide labels on ship goods that appear in English, Spanish, and French. This makes it a lot easier for those people dealing with the goods who don’t have English as their first language.

As well of the great successes of NAFTA there have also been some less welcome results. The rise in the number of illegal immigrants coming to the US from Mexico has been blamed on this legislation. This sudden influx of undocumented workers has led to raising concerns in some parts of the US. It has become a highly politicized topic and emotions can run high about what should be done about it.

Frictional Unemployment Defined

Almost everyone will go through at least one period of frictional unemployment during their work career. Those people who leave school will generally have to spend a bit of time searching for suitable work. If people work on a contract basis they will tend to have gaps in-between contracts that could also fall into this category of unemployment. Those who have a gap in-between one job and starting the next one can also be described in this way. In many instances people like contract workers will be prepared for this period with no work so it will be no great hardship.

The Benefits of Frictional Unemployment

It is normal for us to consider any period without work to be a bad thing, but frictional unemployment can actually be a good thing. It encourages the individual to find work that is going to be best suited to their needs and skills. This not only benefits them but also benefits society as a whole as it is a mechanism that encourages the best people to end up in the most suitable jobs. It is also good for the employers as it means there is a constant flow of people who are looking for new opportunities. So far from it being a bad thing these periods where people are without work might be crucial for a successful economy.

What Influences Frictional Unemployment?

This type of unemployment is influenced by a number of different factors. The time of year can have a huge impact on the number of people seeking work for the first time. After graduation there will be a whole new cohort of young adults looking for their first opportunities in the business world. The rate of this type of unemployment can also go up depending on location. For example, in rural areas there can be a surge in the number of people looking for work during the winter; this is when there is less to do on the land.

Frictional unemployment is also influenced by structural unemployment. There can often be a difference in the number of people who want to work in a certain industry and the number of job opportunities available. A good example of this is the construction industry where a slowdown can leave a lot of people desperate to find any type of work. Structural unemployment can be particularly hard to deal with and it may force people to retrain so as to get work in a completely different industry.

Leading Issues in Economic Development by Gerald M. Meier and James E. Rauch

Leading Issues in Economic Development is a much praised book that is used in universities around the world. It is also a book that will appeal to almost anyone who is interested in finding out more about economic development. The authors are experts in the field and this book is jam packed with knowledge. It is suitable for the complete newcomer as well as the individual who already feels that they know a lot. Anyone who reads this text is sure to benefit from it.

Issues in Economics Today – 5th Edition- by Robert C. Guell (2009)

This book by Robert C. Guell aims to offer insight into all the modern issues in economics. It delves into 8 core issues as well as discussing many more issues in briefer terms. This book is in its fifth edition and has been updated to keep it relevant. It is a well respected text that is commonly used on academic courses.

Taking Sides: Clashing Views on Economic Issues- 15th Edition- by Frank Bonello and Isobel Lobo (2011)

There are always different views and opinions on all economic issues. This book offers different opinions on each of these issues in the hope that it will stimulate critical thinking. This book is now in its 15th edition but it remains a very important text. After reading this book you will have a much better understanding of how economic theory actually works in the real world. You will also be able to better appreciate opposing views on economic issues.

Economic Issues Today: Alternate Approaches by Robert B. Carson, Wade L. Thomas and Jason Hecht (2005)

There are some economic issues that are of importance to almost everyone on the planet. This book offers alternate approaches to these big issues so that readers can be in a better position to develop a more informed view point. Although this book was written six years ago it remains highly relevant and continues to receive praise.

Economic Issues for Consumers by Roger LeRoy Miller and Alan D. Stafford (2003)

It isn’t just academics that have an interest in economic issues; it impacts the rest of us as well. This book looks at how economic issues are relevant to consumers. It looks at some of the most important issues for consumers and digs deeply into each topic. This book is now to be found in most university libraries but it can be of use to anyone who is interested in these topics. By the end of this book the reader should really feel they have a firm grasp of economic issues for consumers.

This is the time that you need to step back and start thinking about ways of minimizing the competition that you’re facing and maximizing your profit with the least amount of expense and effort. When you’re considering this, the selective distribution strategy can be one of your options.

Definition

In short, selective distribution is about hand-picking the retailers who are going to sell your products. You ‘select’ them and make them the only places where your goods can be found. By making this selection, you’re adding exclusivity value to the product and that makes it more desirable to have. You then only distribute your goods to the selected retailers and ensure that only these retailers can sell your products. That, in a nutshell, is what selective distribution is about.

Examples

Selective distribution is employed as a strategy by many companies. Brand names are well-known for the fact that they can only be purchased from certain stores. Designer goods like clothes and shoes can also only be found in selected stores/boutiques. This means that the producers of the merchandise is creating a greater demand for the product in question by only distributing to certain markets through hand-picked retailers. If you consider how much designer clothes and other goods cost, it is still amazing that there is a demand for them. The added value is of course the exclusivity afforded to the brands through selective distribution.

In recent years a trend has emerged where certain foods can only be bought from exclusive stores. The quality and availability of the food is guaranteed, so the value-adding exclusivity has another benefit: quality food. These stores will also only stock brand name produce that will only be found in their stores and nowhere else. So, although you’re buying lettuce (which you can get from almost any other grocer), the brand name lettuce is guaranteed to be fresher, tastier and better packaged to ensure long-lasting freshness. This is what the shopper for exclusive goods is looking for.

Conclusion

Selective distribution is a very successful method of selling your goods and services. It does however have some disadvantages. Selling to a smaller market segment means that your sales are smaller. To make enough profit, your price will therefore have to go up. Unless you have a really good product, you may find yourself out in the cold – exclusive or not.

The whole strategy revolves around what your customers want and, most importantly, how much they are prepared to pay for something only found in certain stores – the exclusivity.

Sustainability means to keep something going or alive. When you’re sustaining something, you’re making sure that it has a future and that is able to function in that future. Just as people eat food, exercise and sleep in order to keep healthy and fit (sustain themselves) countries have to take care of themselves too. They need to have the ability to sustain themselves.

Economic

In order to understand what economic is, the concept of wealth and resources needs to be examined. Every country has resources (e.g. gold, oil, diamonds, tourism etc.) to help it make money. The more money the country (and its people) makes, the wealthier the country becomes.

Economy is therefore the use of the resources of a country in order to create wealth and well-being.

Economic Sustainability

If you consider the two brief explanations above, it becomes clear that there is more to economic sustainability than meets the eye. In order for a country to make itself economically sustainable, it should be able to use its resources. If the country is at war or there are any other negative factors threatening the country, it will be unable to fully utilize its resources. In fact, its resources may have to be used to counter the threat instead of creating wealth.

It is therefore important that countries have a plan for the use of resources, as well as a contingency plan for the possibility of a threat to the country. However, not all threats are necessarily a disaster. Some countries make a lot of money out of wars (for instance) by supplying the warring countries with weapons. There are other disasters that can also create wealth for a country e.g. famine, hurricane disasters etc. Remember, there is always money to be made when there is a demand for and a supply of a certain resource.

In short, economic sustainability means that a country has to look at its resources. The government and citizens of that country have to decide how and when to use these resources and what they want to achieve by using the resources. Then they have to think about ways of making the resources produce wealth and prosperity to the country and its citizens on an ongoing basis. If they can achieve a healthy balance between usage and money creation, the use of those resources can be described as sustainable. If the resource also produces wealth and prosperity and can continue doing so for the foreseeable future, the resource/development/project that the country has embarked on can be called economically sustainable. This is the desired state that all countries and developments aim to achieve.

When writing a white paper, the consultants for the organization or government should consult widely and not take any of the issues or proposed solutions at face value. Part of the reason for a white paper is to state the issues and elaborate on where they come from. Then solutions to the problem can be proposed with detailed explanations of why these solutions would be effective and how they should be implemented.

The Implementation of a White Paper

The implementation of a white paper is also quite complex. Should the proposals in the white paper be accepted, there also has to be an investigation into the possible impact and repercussions these solutions would have on the various stakeholders. If you’ve written a white paper on an environmental issue, you might have to consider the impact your proposed solution could have on development work already underway, or proposed development work. There are far-reaching repercussions if development work is halted. That’s just one example of a topic for a white paper.

It is because the stakeholders could be affected severely by the suggestions made in a white paper that they should all be consulted in the formulation of a solution to the issue under discussion. Stakeholders should be given time to read the white paper and make comments on the discussion, as well as contribute their views of the issue and how it should be dealt with. Only when all the stakeholders have given their input can the author(s) of the white paper confidently present their report to the client/government.

Not Just Governments and Organizations

White papers are not always commissioned by an organization or government. Many activist groups write white papers in order to bring the issues that they are lobbying for to the fore and to make people take notice and think of not only the issues, but also the proposed solutions. These white papers are presented at Congressional meetings or any other forum where it would be appropriate to discuss the matters raised in the white paper.

Often white papers are used as the foundation for new legislation or regulations that benefit the community and the country as a whole. These white papers then become a definitive resource for students, academics and stakeholders in that industry to refer to when needed. Although the solutions are not always implemented exactly as proposed, the majority of the issue(s) could have been addressed and the implementation is sufficient at the level where it is needed.

White papers are very useful and influential tools to use in order to sway political opinion, or to get large corporations to change their practices for the greater good of all the stakeholders. If written with careful consideration the white paper can be a powerful tool of change and development.