Category: economics

The Purpose of RCEP from Singapore’s Perspective and the Benefits of Tariff Reduction

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Case 4 – RCEP Trade Agreement
Businesses to enjoy tariff waivers as world’s largest trade deal RCEP enters into force
The Regional Comprehensive Economic Partnership (RCEP), the world’s largest free trade agreement involving 15 countries including Singapore, entered into force on Saturday (Jan 1). The agreement was signed in November 2020. Countries that have ratified the agreement so far include Singapore, Australia, Brunei, Cambodia, China, Japan, Laos, New Zealand, Thailand and Vietnam. It is the largest free trade deal to date, covering about 30 per cent of global gross domestic product and 30 per cent of the world’s population. The agreement comprises 20 chapters, including new areas such as intellectual
property, competition policy and e-commerce.
From Saturday, businesses will be able to enjoy tariff elimination of about 92 per cent for goods traded amongst signatory parties for which the agreement has entered into force, the Ministry of Trade and Industry (MTI) said. Businesses will also benefit from additional preferential market access for specific products including mineral fuels, plastics, other chemical products, miscellaneous food preparations and beverages in selected RCEP markets such as China and Japan, said MTI. Businesses could also benefit from enhanced commitments above existing ASEAN Plus One free trade agreements in some sectors, it added. Investors may benefit from commitments to prohibit performance requirements and provisions that lock in future relaxation of measures as well.
Source: Adapted and edited from CNA, 1 Jan 2022

i. Discuss the purpose of setting up RCEP from Singapore’s perspective, and explain how the cut in tariffs under the RCEP will benefit Singapore consumers and businesses.
ii. Discuss any TWO (2) reasons why tariffs were originally imposed by other countries.

 

 

The Business Cycle Phase in the USA during 2023

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Case 3 – Federal Reserve Monetary Policy
US rate futures price in 50-basis-point Fed rate hike after Powell testimony
Traders of futures tied to the Federal Reserve’s policy rate have priced in a 50-basis-point hike in interest rates at the US central bank’s Mar 21-22 policy meeting after Fed Chair Jerome Powell said on Tuesday (Mar 7) that continued strong inflation data could require tougher measures.
The price of fed funds futures contracts fell, pointing to a 66 per cent probability that the central bank will lift its benchmark overnight interest rate to the 5.00-5.25 per cent range on Mar 22, from the current 4.50-4.75 per cent range, according to the CME Group’s FedWatch tool. That was up from the 30 per cent chance seen before Powell’s testimony before the Senate Banking Committee. The futures contracts pricing also points to firming expectations for the policy rate to rise to a 5.25-5.50 per cent range by June. The peak funds rate is seen hitting 5.6 per cent in September.
With the next policy meeting two weeks away, Friday’s US employment report for February along with an inflation report next week will be crucial in determining the pace of upcoming rate increases. Powell’s testimony on Tuesday marked a stark acknowledgement that a “disinflationary process” he spoke of repeatedly in a Feb 1 news conference may not be so smooth.
Source: Adapted and edited from CNA, 8 Mar 2023

i. Identify the phase of the business cycle for USA during Year 2023. Support your answers with actual data.
ii. Discuss whether expansionary or contractionary monetary policy was undertaken by the Federal Reserve in 2023, and explain ONE
(1) monetary policy tool that the Federal Reserve can use to address the economic situation.
iii. Explain how the interest rate increases by Federal Reserve would affect USA consumption and investment. Include clearly-labelled consumption function diagram and investment demand diagram to support your explanation.

 

 

The Progressive Nature of GST and Its Suitability for Singapore

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Case 2 – Singapore GST Increase
Singaporeans pay much less in taxes compared to citizens elsewhere:
Lawrence Wong
Singaporeans pay much less in taxes compared to citizens elsewhere, but still “enjoy high quality public services”, said Deputy Prime Minister Lawrence Wong in Parliament on Friday (Feb 24). In his closing speech on the debate on Budget 2023, he also described Singapore’s tight fiscal position as “very much a reality” over the medium term – hence the need for Singapore to proceed with a second raise of the Goods and Services Tax (GST) in 2024. “Deferring this will only store up more problems for the future and will leave us with less resources to take care of our growing number of seniors,” said Mr Wong, who is also Finance Minister.
Mr Wong noted that Singapore’s tax to GDP ratio was, at 14 per cent, “considerably lower” than most other advanced economies. “This low tax burden rewards hard work and enterprise, and allows our people and businesses to keep most of what they earn,” he said.
Source: Adapted and edited from CNA, 24 Feb 2023
i. Explain whether GST is a progressive, regressive or proportional tax, and why GST is an appropriate measure for Singapore.
ii. Explain the impacts of the increase in GST on real GDP. Include a clearly-labelled aggregate expenditure diagram to support your explanation.
iii. Discuss any TWO (2) alternatives (other than GST) to raise government revenue.

The Impact of Macroeconomic Changes on U.S. Commercial Banks

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” One of the factors contributing to a shift away from the ‘boring banking’ model were macroeconomic changes, both in the U.S. and globally, beginning in the late 1960s and continuing through the following decades. For example, inflation increased, interest rates rose, and international exchange rate systems fundamentally changed. What problems did this cause for U.S. commercial banks? Why? In what ways did they try to overcome these challenges?
”

 

The Long-Run Average Cost Curve Derived from the Short-Run Average Total Cost Curve

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Prior to beginning work on this discussion forum, review Chapter 8 of your textbook, Principles of Microeconomics, the materials on the “Weekly Lecture” page and pick any one business in your area. Based on the readings for the week and the business you chose, answer the following questions in a minimum of 300 words:

Describe how the long-run average cost (LRAC) curve can be derived from the short-run average total cost (SRATC) curve.
Discuss if the business you chose enjoys economies of scale. Be sure to provide reasons why the business may or may not have economies of scale.
Explain how economies of scale help your business compete in its industry.

The company that I chose is McDonald’s

Analysis of New Product Launch: Cost, Revenue, and Profit

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Take on the role of a business leader who wishes to analyze if a new product their company has introduced is meeting the expectations. Imagine that you would like to create a post in the company intranet that summarizes your findings in an easy-to-read format for your team. Pay special attention to creating meaningful data visualizations. You should use techniques that make content easy to follow but that also display charts accurately without distorting or skewing data. Your company’s profit goal is 25% of the cost of goods sold (COGS). Remember, COGS is the cost of manufacturing the product, including labor, materials, and overhead. You will need to build trust and an open channel of communication with other leaders on your team. Pay close attention to the story that data visualizations tell you and others reviewing your post.

The purpose of this analysis is to better understand the cost, revenue, and profit associated with the new product launch. Review the Cost, Revenue, and Profit Spreadsheet retrieved from the company’s data center and consider the following while developing your ideas in this assignment.

What is the importance of data analysis?
What are the results of your analysis?
Think about your analysis and its findings, including visuals. Use visuals and text to re-state the purpose of your analysis and summarize your most important findings.
What are you trying to represent with this data?
What kind of graphic have you selected and why?
How did adding visual representations of the data change your analysis?
Does the target audience influence the way you display information?

Developing an Integrated Response Plan for Medical Providers and Public Health Agencies in Natural Disasters and Public Health Emergencies

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Develop an operations plan that is 1-2 pages in length and includes at least two quality academic resources in which you:

Propose a strategy that medical providers and public health agencies should include in a response plan that combines the efforts of both groups.
Outline a strategy for the practice that demonstrates how communication with employees and patients will be maintained, how to secure patient and financial records and ensure resources are available to care for patients before, during, and after a natural disaster or public health emergency.

 

Application of Porter’s Five Force Strategy to the U.S. Auto Industry

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Application of Porter’s Five Force Strategy to the U.S. Auto Industry

Porter’s five force strategy is a framework for making a qualitative evaluation of a firm’s strategic position which according to Porter should be used at the industry level, a marketplace in which closely related substitutable products or services are sold. Porter’s analytical framework consists of those forces that affect a producer’s ability to serve its customers and its profitability. A change in any of these five forces requires a re-assessment of the marketplace.

According to this model, success in a business is primary based on managers knowledge of competition in the industry, customers, suppliers, potential entrants, and substitute products. The extended rivalry that results from all five forces defines an industry’s structure and shapes the nature of competitive interaction within an industry.