13/11/2019 Globalisation 1.0 and 2.0 helped the G7. Globalisation 3.0 helped India and China instead. What will Globalisation 4.0 do? | VOX, …
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Trade globalisation in the last two centuries
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Early globalisation and the law of one price
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Globalisation 1.0 and 2.0 helped the G7.
Globalisation 3.0 helped India and China instead.
What will Globalisation 4.0 do?
Richard Baldwin 21 January 2019
Richard Baldwin describes how digital technology is allowing people and companies to arbitrage large relative
price differences in wages across countries, offering an enormous export opportunity for developing nations.
Globalisation leapt forward in the late 19th century
when steam power slashed the costs of moving goods
internationally. This ‘old globalisation’ came in two
waves. Globalisation 1.0 started in 1820 and ended at
the start of WWI, and Globalisation 2.0 began after
WWII and ended around 1990.1 In between,
globalisation retreated.
Old globalisation was especially beneficial to today’s
rich nations. The G7 (France, Germany, Italy, Britain, US, Japan, and Canada) saw rapid growth of
their exports, incomes, and industry compared to today's poor nations. This led to what Kenneth
Pomeranz, a historian, calls the Great Divergence.
The G7’s share of world GDP soared from one-fifth in 1820 to two-thirds in 1988. Its share of world
trade rose to more than 50% (Figure 1). Enormous differences in income between rich and poor
nations first emerged at this time.
Figure 1 Spot the difference: Globalisations 1.0 and 2.0 (blue) and 3.0 (red)
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1. The Davos 2016 conference focused on the theme of the Fourth Industrial Revolution and the technological changes impacting the global economy.
2. Slowing growth in China and uncertainty around a potential UK exit from the EU were key economic concerns.
3. Growing inequality, concerns over job losses due to automation, and the global migration crisis were discussed as major social issues.
4. Business leaders need to think long-term, embrace collaboration and creativity, focus on trust and authenticity, and commit to personal growth to navigate uncertainty.
The lecture analyzes the phenomenon of Globalization, the technological revolution, the over exploitation of ICTs, and the rise of Information Society.
The Dot-Com boom fueled the 2000 budget surpluses. Will AI help or hinder?Paul H. Carr
The document discusses how the Dot-Com boom of the late 1990s contributed to US budget surpluses from 1998-2001 by fueling economic growth. It also examines how artificial intelligence could both help and hinder the economy in the future. It may increase productivity but displace many workers, potentially exacerbating income inequality. Suggested solutions include developing more creative education to make workers "robot-proof," implementing "trickle up" economic policies, and following Europe's example of higher taxes coupled with greater income equality.
Why the next decade will shape the century!adusault
A position paper on the forces converging into the next decade, which will create more volatility. We constantly underestimate changes and resist new conditions.
The document discusses globalization and its impacts. It begins by defining globalization as the closer integration of countries through reduced trade barriers and costs of transportation and communication. It then outlines some of the major international institutions involved in governing globalization, including the IMF, World Bank, and WTO. The document also discusses some of the opportunities and threats presented by globalization, such as increased inequality, environmental impacts, and threats to cultural diversity. It raises issues about the appropriate level of global regulation and discusses Joseph Stiglitz's critique of how international institutions have pursued globalization.
This document provides an overview and guiding questions for a social studies chapter about economic globalization. It includes key terms like EU, GDP per capita, and TNCs. It also lists multiple questions for students to respond to about charts and graphs in the chapter, including how globalization has impacted trade over time, reasons for protests against trade agreements, potential positive and negative impacts of increased trade on developing countries, and how technologies and containerization have enabled greater economic globalization.
This document discusses how the world is changing and the implications for the future, particularly by 2040. It acknowledges that understanding economic trends is important but not sufficient to achieve resilient and inclusive growth. The main points discussed are major global shifts happening by 2030, including the rise of China and India as economic powers and the impact of digital media. It also outlines some key challenges facing the Western Cape, such as unemployment, the impact of carbon pricing on exports, social issues like crime and violence, and infrastructure constraints.
There was little economic growth for thousands of years until the 18th century. Per capita incomes remained stagnant until the Industrial Revolution between 1760-1820, which saw unprecedented technological innovations and growth. Modern economic growth since then has led to vast increases in global GDP and living standards, but also large inequalities between developed and developing economies. Sustaining long-term growth for all of humanity will require continued innovation as well as ensuring global cooperation and development is environmentally sustainable.
1. The Davos 2016 conference focused on the theme of the Fourth Industrial Revolution and the technological changes impacting the global economy.
2. Slowing growth in China and uncertainty around a potential UK exit from the EU were key economic concerns.
3. Growing inequality, concerns over job losses due to automation, and the global migration crisis were discussed as major social issues.
4. Business leaders need to think long-term, embrace collaboration and creativity, focus on trust and authenticity, and commit to personal growth to navigate uncertainty.
The lecture analyzes the phenomenon of Globalization, the technological revolution, the over exploitation of ICTs, and the rise of Information Society.
The Dot-Com boom fueled the 2000 budget surpluses. Will AI help or hinder?Paul H. Carr
The document discusses how the Dot-Com boom of the late 1990s contributed to US budget surpluses from 1998-2001 by fueling economic growth. It also examines how artificial intelligence could both help and hinder the economy in the future. It may increase productivity but displace many workers, potentially exacerbating income inequality. Suggested solutions include developing more creative education to make workers "robot-proof," implementing "trickle up" economic policies, and following Europe's example of higher taxes coupled with greater income equality.
Why the next decade will shape the century!adusault
A position paper on the forces converging into the next decade, which will create more volatility. We constantly underestimate changes and resist new conditions.
The document discusses globalization and its impacts. It begins by defining globalization as the closer integration of countries through reduced trade barriers and costs of transportation and communication. It then outlines some of the major international institutions involved in governing globalization, including the IMF, World Bank, and WTO. The document also discusses some of the opportunities and threats presented by globalization, such as increased inequality, environmental impacts, and threats to cultural diversity. It raises issues about the appropriate level of global regulation and discusses Joseph Stiglitz's critique of how international institutions have pursued globalization.
This document provides an overview and guiding questions for a social studies chapter about economic globalization. It includes key terms like EU, GDP per capita, and TNCs. It also lists multiple questions for students to respond to about charts and graphs in the chapter, including how globalization has impacted trade over time, reasons for protests against trade agreements, potential positive and negative impacts of increased trade on developing countries, and how technologies and containerization have enabled greater economic globalization.
This document discusses how the world is changing and the implications for the future, particularly by 2040. It acknowledges that understanding economic trends is important but not sufficient to achieve resilient and inclusive growth. The main points discussed are major global shifts happening by 2030, including the rise of China and India as economic powers and the impact of digital media. It also outlines some key challenges facing the Western Cape, such as unemployment, the impact of carbon pricing on exports, social issues like crime and violence, and infrastructure constraints.
There was little economic growth for thousands of years until the 18th century. Per capita incomes remained stagnant until the Industrial Revolution between 1760-1820, which saw unprecedented technological innovations and growth. Modern economic growth since then has led to vast increases in global GDP and living standards, but also large inequalities between developed and developing economies. Sustaining long-term growth for all of humanity will require continued innovation as well as ensuring global cooperation and development is environmentally sustainable.
Intuition forms over time. When McKinsey began publishing t.docxmariuse18nolet
Intuition forms over time. When McKinsey began publishing
the Quarterly, in 1964, a new management environment was just
beginning to take shape. On April 7 of that year, IBM announced the
System/360 mainframe, a product with breakthrough flexibility
and capability. Then on October 10, the opening ceremonies of the
Tokyo Olympic Games, the first in history to be telecast via satellite
around the planet, underscored Japan’s growing economic strength.
Finally, on December 31, the last new member of the baby-boom
generation was born.
Fifty years later, the forces symbolized by these three disconnected
events are almost unrecognizable. Technology and connectivity have
disrupted industries and transformed the lives of billions. The
world’s economic center of gravity has continued shifting from West
to East, with China taking center stage as a growth story. The
baby boomers have begun retiring, and we now talk of a demographic
drag, not a dividend, in much of the developed world and China.
We stand today on the precipice of much bigger shifts in each of these
areas, with extraordinary implications for global leaders. In the
years ahead, acceleration in the scope, scale, and economic impact of
technology will usher in a new age of artificial intelligence, con-
sumer gadgetry, instant communication, and boundless information
while shaking up business in unimaginable ways. At the same time,
the shifting locus of economic activity and dynamism, to emerging
Management intuition
for the next 50 years
The collision of technological disruption, rapid
emerging-markets growth, and widespread
aging is upending long-held assumptions that
underpin strategy setting, decision making,
and management.
Richard Dobbs, Sree Ramaswamy, Elizabeth Stephenson,
and S. Patrick Viguerie
S E P T E M B E R 2 0 1 4
22
markets and to cities within those markets, will give rise to a new
class of global competitors. Growth in emerging markets will occur
in tandem with the rapid aging of the world’s population—first in
the West and later in the emerging markets themselves—that in turn
will create a massive set of economic strains.
Any one of these shifts, on its own, would be among the largest eco-
nomic forces the global economy has ever seen. As they collide,
they will produce change so significant that much of the management
intuition that has served us in the past will become irrelevant. The
formative experiences for many of today’s senior executives came as
these forces were starting to gain steam. The world ahead will be
less benign, with more discontinuity and volatility and with long-term
charts no longer looking like smooth upward curves, long-held
assumptions giving way, and seemingly powerful business models
becoming upended. In this article, which brings together years
of research by the McKinsey Global Institute (MGI) and McKinsey’s
Strategy Practice,1 we strive to paint a picture of the road ahead, .
Latvijas Bankas Starptautisko attiecību un komunikācijas pārvaldes vadītāja Jura Kravaļa lekcija "Globālās ekonomikas tendences" Biznesa augstskolā "Turība" 2019. gada 8. oktobrī.
Globalization has integrated economies and created a unified economic space through reduced trade barriers and increased capital mobility. While this has benefits like access to larger markets, it also shifts power to corporations that can exploit resources across borders. Developing nations must comply with conditions set by organizations like the IMF and World Bank to access loans, prioritizing corporate interests over local needs. Overall globalization has concentrated economic power among a few powerful states and corporations.
1) In 1978, China adopted Den Xiaoping's "Four Modernizations" policies which opened China's economy and contributed greatly to increased globalization and trade.
2) Between 1978 and 2008, global imports and exports grew 800% and China's GDP increased from $148 billion to $8.2 trillion.
3) China's economic reforms and integration into the global economy helped lift over 600 million Chinese people out of poverty and led to unprecedented growth.
Over the past five decades, barriers between national economies have decreased as the world has globalized. Globalization refers to the integration of markets and production internationally. Technological advances in communication, transportation, and trade agreements have driven globalization by lowering costs and connecting markets globally. This has implications for how firms operate and has changed the structure of the global economy.
This document summarizes an IMF report on globalization. It discusses how globalization has led to increasing integration of economies through greater movement of goods, services, capital and people across borders. It provides statistics showing rising global trade, foreign investment, and financial and personal flows between countries. The summary concludes that while globalization has benefits like increased access to goods, jobs and living standards, there are also risks that must be managed through policies promoting strong and stable economies.
Based on Erik Reinert, How Rich Countries Got Rich ... and Why Poor Countries Stay Poor (2007), London: Constable, Chapter 8: “Get the economic activities right”, or, the Lost Art of Creating Middle-Income Countries. Further discussion on how to make upper-middle income county out of middle-income trap. And how to synchronize different aspect on developmental policy in modern era.
Modernization theory posits that countries must undergo scientific and technological advancement to become modernized and increase living standards, with the West's role being to invest in developing countries' factories, education, and media to disseminate modern ideas. It has been criticized for being ethnocentric and for ignoring inequality. Dependency theory argues that the rich world's development was achieved through exploiting the developing world, making them dependent on imports and aid. World systems theory asserts that a global capitalist economy has existed since the 16th century, with some countries forging ahead to form the wealthy core region and the periphery specializing in raw materials.
This document discusses the economic consequences of globalization on the telecommunications industry, using the case of Vodafone. It explains that globalization has allowed telecom companies like Vodafone to operate on a truly global scale, with sourcing and supply chains transferred entirely globally while services remain local. While globalization has benefits like increased opportunities, it can also exacerbate inequality between developed and developing nations. The telecom industry in particular has seen Europe develop a comparative disadvantage relative to other major regions.
[Challenge:Future] Moral underpinnings of capitalism Challenge:Future
The document discusses the history and development of capitalism, including its roots in trade, the industrial revolution, and economic crises of the 20th century. It also examines current issues like wealth polarization, environmental challenges, and the role of technology and influential individuals in shaping the future development of capitalism. The document argues that capitalism must evolve to address these issues through reforms that promote more equal wealth distribution and environmental sustainability.
Locating Oneself in Global Learning- First 4 ReadingsOslo
First 4 Readings of Locating Oneself in Global Learning! I suggest to do all of the readings from the class reading selection list on it'slearning. Here is just a reference so you do not have to open 4 different links in order to remember the content. Will add more as class progresses. We will have a great time learning together. These words are not my own and taken directly from the designated readings.
The document discusses three historical eras since World War II defined by shifts in the global order:
1) The Postwar Boom (1944-1971) saw rapid growth in the US and Europe as the world transitioned to a system divided between Western and Soviet blocs.
2) The Era of Contention (1971-1989) was defined by the oil crisis, stagflation, and the rise of non-Western economies as the Cold War continued.
3) The Era of Markets (1989-2019) featured globalization and the rise of digital technologies as the Cold War ended and billions joined the global economy. The document suggests current events may signal a transition to a new era.
Capitalism and globalization will not solve poverty according to the expert interviewed. Nearly a quarter of the world's population lacks meaningful employment, showing these systems only benefit a powerful few. The future costs of the current global financial crisis are estimated to be over $8 trillion, or 13% of global output, exacerbating poverty. A new universal system is needed that allows all humans to live without want or need, as neither communism nor unregulated capitalism have achieved prosperity and peace for all.
Globalization, ICTs, and the Information SocietyBoutkhil Guemide
In a world characterized by globalization and shaped by information and communication, the ability to act on information flows, and on media messages, becomes an essential tool for fostering a political agenda. With noopolitik, diplomacy will now include not only governments but also the societies they represent.
Globalization, ICTs, and the Information societyBoutkhil Guemide
This document provides an outline for a lecture on globalization, information and communication technologies (ICTs), and the information society. It begins with introductions to globalization, defining it as the flow of goods, services, capital, people, information and ideas across borders. It describes characteristics of globalization like transparency, connectivity, and the role of science and technology. It then discusses impacts of globalization, both positive like economic growth, and negative like increased competition. The document outlines how ICTs like the internet and mobile phones have increased globalization by reducing barriers. It defines the information society and references theorists like Daniel Bell and Manuel Castells who see it as successor to industrial society based on information.
With characteristic perceptiveness, Winston Churchill observed many decades ago: “Dictators ride to and fro on a tiger from which they dare not dismount. And the tiger is getting hungry.”
With China, the tiger in question is very big and very hungry. Per capita income in the PRC is just $11,000 per person, compared to $43,000 in the UK and $65,000 in the US. Stop and consider that statistic for a minute. Imagine that your income was multiplied by a factor of four, or five. Imagine how different your life would look. That’s how the average Chinese worker would regard the disparity between their income and yours.
This puts China smack bang in the centre of the “middle-income trap” - where a growing economy gets stuck, and often fails altogether, to make the transition to a high-income economy. The first part of the journey, from low-income to middle-income, is relatively simple.
You just need strong government oversight, an almost endless stream of obedient and extremely cheap labour, and a world market hungry for products that can be manufactured on a vast scale in labour-intensive industries.
But to take your economy over the next hurdle, from middle income to high income, is far more challenging. It requires a movement away from basic, assembly-line tasks and a leap into the knowledge economy, innovation, and high-tech, high-skill manufacturing.
In other words, it is a movement away from mass-volume industries where the greatest differentiator is price, and into value-added industries where customers are willing to pay a premium for the technology, the prestige, or the originality of the goods
Problem 1
Problem 2 (two screen shots)
Problem 3 (two screen shots)
Problem 4 (three screen shots)
Problem 5 (one screen shot)
Problem 6 (six screenshots plus a data table)
.
Problem 20-1A Production cost flow and measurement; journal entrie.docxChantellPantoja184
Problem 20-1A Production cost flow and measurement; journal entries L.O. P1, P2, P3, P4
[The following information applies to the questions displayed below.]
Edison Company manufactures wool blankets and accounts for product costs using process costing. The following information is available regarding its May inventories.
Beginning
Inventory
Ending
Inventory
Raw materials inventory
$
60,000
$
41,000
Goods in process inventory
449,000
521,500
Finished goods inventory
610,000
342,001
The following additional information describes the company's production activities for May.
Raw materials purchases (on credit)
$
250,000
Factory payroll cost (paid in cash)
1,850,300
Other overhead cost (Other Accounts credited)
82,000
Materials used
Direct
$
200,500
Indirect
50,000
Labor used
Direct
$
1,060,300
Indirect
790,000
Overhead rate as a percent of direct labor
115
%
Sales (on credit)
$
3,000,000
The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost.
\\\\\
rev: 11_02_2011
references
1.
value:
2.00 points
Problem 20-1A Part 1
Required:
1(a)
Compute the cost of products transferred from production to finished goods. (Omit the "$" sign in your response.)
Cost of products transferred
$
1(b)
Compute the cost of goods sold. (Omit the "$" sign in your response.)
Cost of goods sold
$
rev: 10_31_2011
check my workeBook Links (4)references
2.
value:
5.00 points
Problem 20-1A Part 2
2(a)
Prepare journal entry dated May 31 to record the raw materials purchases. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31
2(b)
Prepare journal entry dated May 31 to record the direct materials usage. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31
2(c)
Prepare journal entry dated May 31 to record the indirect materials usage. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31
2(d)
Prepare journal entry dated May 31 to record the payroll costs. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31
2(e)
Prepare journal entry dated May 31 to record the direct labor costs. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31
2(f)
Prepare journal entry dated May 31 to record the indirect labor costs. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31
2(g)
Prepare journal entry dated May 31 to record the other overhead costs. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31
2(h)
Prepare journal entry dated May 31 to record the overhead applied. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31
2(i)
Prepare journal entry dated May 31 to record the goods transferred from production to finished goods.(Omit the "$" sign in yo.
Problem 2 Obtain Io.Let x be the current through j2, ..docxChantellPantoja184
Problem 2: Obtain Io.
Let x be the current through j2, .
Let .
.
.
.
………..1.
…………2.
.
.
…………3.
……………….4.
Solving these 4 equations we can get .
.
Problem 1:Find currents I1, I2, and I3
Problem 2: Obtain Io
Problem 3:Obtain io
.
Problem 1On April 1, 20X4, Rojas purchased land by giving $100,000.docxChantellPantoja184
Problem 1On April 1, 20X4, Rojas purchased land by giving $100,000 in cash and executing a $400,000 note payable to the former owner. The note bears interest at 10% per annum, with interest being payable annually on March 31 of each year. Rojas is also required to make a $100,000 payment toward the note's principal on every March 31.(a)Prepare the appropriate journal entry to record the land purchase on April 1, 20X4.(b)Prepare the appropriate journal entry to record the year-end interest accrual on December 31, 20X4.(c)Prepare the appropriate journal entry to record the payment of interest and principal on March 31, 20X5.(d)Prepare the appropriate journal entry to record the year-end interest accrual on December 31, 20X5.(e)Prepare the appropriate journal entry to record the payment of interest and principal on March 31, 20X6.
&R&"Myriad Web Pro,Bold"&20B-13.01
B-13.01
Worksheet 1(a), (b), (c), (d), (e)GENERAL JOURNALDateAccountsDebitCredit04-01-X412-31-X403-31-X512-31-X503-31-X6
&L&"Myriad Web Pro,Bold"&12Name:
Date: Section: &R&"Myriad Web Pro,Bold"&20B-13.01
B-13.01
Problem 2Ace Brick company issued $100,000 of 5-year bonds. The bonds were issued at par on January 1, 20X1, and bear interest at a rate of 8% per annum, payable semiannually.(a)Prepare the journal entry to record the bond issue on January, 20X1.(b)Prepare the journal entry that Ace would record on each interest date.(c)Prepare the journal entry that Ace would record at maturity of the bonds.
&R&"Myriad Web Pro,Bold"&20B-13.06
B-13.06
Worksheet 2(a)(b)(c)GENERAL JOURNAL DateAccountsDebitCreditIssueInterestMaturity
&L&"Myriad Web Pro,Bold"&12Name:
Date: Section: &R&"Myriad Web Pro,Bold"&20B-13.06
B-13.06
Problem 3Erik Food Supply Company issued $100,000 of face amount of 4-year bonds on January 1, 20X1. The bonds were issued at 98, and bear interest at a stated rate of 8% per annum, payable semiannually. The discount is amortized by the straight-line method.(a)Prepare the journal entry to record the initial issuance on January, 20X1.(b)Prepare the journal entry that Erik would record on each interest date.(c)Prepare the journal entry that Erik would record at maturity of the bonds.
&R&"Myriad Web Pro,Bold"&20B-13.08
B-13.08
Worksheet 3(a)(b)(c)GENERAL JOURNAL DateAccountsDebitCreditIssueInterestMaturity
&L&"Myriad Web Pro,Bold"&12Name:
Date: Section: &R&"Myriad Web Pro,Bold"&20B-13.08
B-13.08
Problem 4Horton Micro Chip Company issued $100,000 of face amount of 6-year bonds on January 1, 20X1. The bonds were issed at 103, and bear interest at a stated rate of 8% per annum, payable semiannually. The premium is amortized by the straight-line method.(a)Prepare the journal entry to record the initial issue on January, 20X1.(b)Prepare the journal entry that Horton would record on each interest date.(c)Prepare the journal entry that Horton would record at maturity of the bonds.
&R&"Myriad We.
Problem 17-1 Dividends and Taxes [LO2]Dark Day, Inc., has declar.docxChantellPantoja184
Problem 17-1 Dividends and Taxes [LO2]
Dark Day, Inc., has declared a $5.60 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 15 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. Dark Day sells for $94.10 per share, and the stock is about to go ex-dividend.
What do you think the ex-dividend price will be? (Round your answer to 2 decimal places. (e.g., 32.16))
Ex-dividend price
$
Problem 17-2 Stock Dividends [LO3]
The owners’ equity accounts for Alexander International are shown here:
Common stock ($0.60 par value)
$
45,000
Capital surplus
340,000
Retained earnings
748,120
Total owners’ equity
$
1,133,120
a-1
If Alexander stock currently sells for $30 per share and a 10 percent stock dividend is declared, how many new shares will be distributed?
New shares issued
a-2
Show how the equity accounts would change.
Common stock
$
Capital surplus
Retained earnings
Total owners’ equity
$
b-1
If instead Alexander declared a 20 percent stock dividend, how many new shares will be distributed?
New shares issued
b-2
Show how the equity accounts would change. (Negative amount should be indicated by a minus sign.)
Common stock
$
Capital surplus
Retained earnings
Total owners’ equity
$
Problem 17-3 Stock Splits [LO3]
The owners' equity accounts for Alexander International are shown here.
Common stock ($0.50 par value)
$
35,000
Capital surplus
320,000
Retained earnings
708,120
Total owners’ equity
$
1,063,120
a-1
If Alexander declares a five-for-one stock split, how many shares are outstanding now?
New shares outstanding
a-2
What is the new par value per share? (Round your answer to 3 decimal places. (e.g., 32.161))
New par value
$ per share
b-1
If Alexander declares a one-for-seven reverse stock split, how many shares are outstanding now?
New shares outstanding
b-2
What is the new par value per share? (Round your answer to 2 decimal places. (e.g., 32.16))
New par value
$ per share
Problem 17-4 Stock Splits and Stock Dividends [LO3]
Red Rocks Corporation (RRC) currently has 485,000 shares of stock outstanding that sell for $40 per share. Assuming no market imperfections or tax effects exist, what will the share price be after:
a.
RRC has a four-for-three stock split? (Round your answer to 2 decimal places. (e.g., 32.16))
New share price
$
b.
RRC has a 15 percent stock dividend? (Round your answer to 2 decimal places. (e.g., 32.16))
New share price
$
c.
RRC has a 54.5 percent stock dividend? (Round your answer to 2 decimal places. (e.g., 32.16))
New share price
$
d.
RRC has a two-for-seven reverse stock split? (Round your answer to 2 decimal places. (e.g., 32.16))
New share price
$
Determine the new number of shares outstanding in parts (a) through (d).
a.
New shares outstanding
b.
New shares o.
Problem 1Problem 1 - Constant-Growth Common StockWhat is the value.docxChantellPantoja184
Problem 1Problem 1 - Constant-Growth Common StockWhat is the value of a common stock if the firm's earnings and dividends are growing annually at 10%, the current dividend is $1.32,and investors require a 15% return on investment?What is the stock's rate of return if the market price of the stock is $35?
Problem 2Problem 2 - Preferred Stock Price and ReturnA firm has preferred stock outstanding with a $1,000 par value and a $40 annual dividend with no maturity. If the required rate of return is 9%, what is the price of the preferred stock?The market price of a firm's preferred stock is $24 and pays an annual dividend of $2.50. If the stock's par value is $1,000 and it has no maturity, what is the return on the preferred stock?
Problem 3Problem 3 - Bond Valuation and YieldA bond has a par value of $1,000, pays $50 semiannually and has a maturity of 10 years.If the bond earns 12% per year, what is the price of the bond?RateNperPMTFVTypePVWhat is the yield to maturity for the bond?NperPMTPVFVTypeRateWhat would be the bond's price if the rate earned declined to 8% per year?RateNperPMTFVTypePVIf the maturity period is reduced to 5 years and the required rate of return is 8%, what would be the price of the bond?RateNperPMTFVTypePVWhat is the yield to maturity for the bond when the maturity is 5 years and the required rate of return is 8%?NperPMTPVFVTypeRateWhat generalizations about bond prices, interest rates and maturity periods can be made based on the calculations made above?
Problem 4Problem 4 - Callable BondsThe following bonds have a par value of $1,000 and the required rate of return is 10%.Bond XY: 5¼ percent coupon, with interest paid annually for 20 yearsBond AB: 14 percent coupon, with interest paid annually for 20 yearsWhat is each bond's current market price?Bond XYBond ABRateNperPMTFVTypePVIf current interest rates are 9%, which bond would you expect to be called? Explain.
Exercise 10-5
During the month of March, Olinger Company’s employees earned wages of $69,500. Withholdings related to these wages were $5,317 for Social Security (FICA), $8,145 for federal income tax, $3,366 for state income tax, and $434 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $760 for state unemployment tax.
Prepare the necessary March 31 journal entry to record salaries and wages expense and salaries and wages payable. Assume that wages earned during March will be paid during April. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Mar. 31
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Prepare the entry to record the company’s payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Mar. 31
===========================================
E.
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.
Problem 20-1A Production cost flow and measurement; journal entrie.docxChantellPantoja184
Problem 20-1A Production cost flow and measurement; journal entries L.O. P1, P2, P3, P4
[The following information applies to the questions displayed below.]
Edison Company manufactures wool blankets and accounts for product costs using process costing. The following information is available regarding its May inventories.
Beginning
Inventory
Ending
Inventory
Raw materials inventory
$
60,000
$
41,000
Goods in process inventory
449,000
521,500
Finished goods inventory
610,000
342,001
The following additional information describes the company's production activities for May.
Raw materials purchases (on credit)
$
250,000
Factory payroll cost (paid in cash)
1,850,300
Other overhead cost (Other Accounts credited)
82,000
Materials used
Direct
$
200,500
Indirect
50,000
Labor used
Direct
$
1,060,300
Indirect
790,000
Overhead rate as a percent of direct labor
115
%
Sales (on credit)
$
3,000,000
The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost.
\\\\\
rev: 11_02_2011
references
1.
value:
2.00 points
Problem 20-1A Part 1
Required:
1(a)
Compute the cost of products transferred from production to finished goods. (Omit the "$" sign in your response.)
Cost of products transferred
$
1(b)
Compute the cost of goods sold. (Omit the "$" sign in your response.)
Cost of goods sold
$
rev: 10_31_2011
check my workeBook Links (4)references
2.
value:
5.00 points
Problem 20-1A Part 2
2(a)
Prepare journal entry dated May 31 to record the raw materials purchases. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31
2(b)
Prepare journal entry dated May 31 to record the direct materials usage. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31
2(c)
Prepare journal entry dated May 31 to record the indirect materials usage. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31
2(d)
Prepare journal entry dated May 31 to record the payroll costs. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31
2(e)
Prepare journal entry dated May 31 to record the direct labor costs. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31
2(f)
Prepare journal entry dated May 31 to record the indirect labor costs. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31
2(g)
Prepare journal entry dated May 31 to record the other overhead costs. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31
2(h)
Prepare journal entry dated May 31 to record the overhead applied. (Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
May 31
2(i)
Prepare journal entry dated May 31 to record the goods transferred from production to finished goods.(Omit the "$" sign in yo.
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Problem 2: Obtain Io.
Let x be the current through j2, .
Let .
.
.
.
………..1.
…………2.
.
.
…………3.
……………….4.
Solving these 4 equations we can get .
.
Problem 1:Find currents I1, I2, and I3
Problem 2: Obtain Io
Problem 3:Obtain io
.
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Problem 1On April 1, 20X4, Rojas purchased land by giving $100,000 in cash and executing a $400,000 note payable to the former owner. The note bears interest at 10% per annum, with interest being payable annually on March 31 of each year. Rojas is also required to make a $100,000 payment toward the note's principal on every March 31.(a)Prepare the appropriate journal entry to record the land purchase on April 1, 20X4.(b)Prepare the appropriate journal entry to record the year-end interest accrual on December 31, 20X4.(c)Prepare the appropriate journal entry to record the payment of interest and principal on March 31, 20X5.(d)Prepare the appropriate journal entry to record the year-end interest accrual on December 31, 20X5.(e)Prepare the appropriate journal entry to record the payment of interest and principal on March 31, 20X6.
&R&"Myriad Web Pro,Bold"&20B-13.01
B-13.01
Worksheet 1(a), (b), (c), (d), (e)GENERAL JOURNALDateAccountsDebitCredit04-01-X412-31-X403-31-X512-31-X503-31-X6
&L&"Myriad Web Pro,Bold"&12Name:
Date: Section: &R&"Myriad Web Pro,Bold"&20B-13.01
B-13.01
Problem 2Ace Brick company issued $100,000 of 5-year bonds. The bonds were issued at par on January 1, 20X1, and bear interest at a rate of 8% per annum, payable semiannually.(a)Prepare the journal entry to record the bond issue on January, 20X1.(b)Prepare the journal entry that Ace would record on each interest date.(c)Prepare the journal entry that Ace would record at maturity of the bonds.
&R&"Myriad Web Pro,Bold"&20B-13.06
B-13.06
Worksheet 2(a)(b)(c)GENERAL JOURNAL DateAccountsDebitCreditIssueInterestMaturity
&L&"Myriad Web Pro,Bold"&12Name:
Date: Section: &R&"Myriad Web Pro,Bold"&20B-13.06
B-13.06
Problem 3Erik Food Supply Company issued $100,000 of face amount of 4-year bonds on January 1, 20X1. The bonds were issued at 98, and bear interest at a stated rate of 8% per annum, payable semiannually. The discount is amortized by the straight-line method.(a)Prepare the journal entry to record the initial issuance on January, 20X1.(b)Prepare the journal entry that Erik would record on each interest date.(c)Prepare the journal entry that Erik would record at maturity of the bonds.
&R&"Myriad Web Pro,Bold"&20B-13.08
B-13.08
Worksheet 3(a)(b)(c)GENERAL JOURNAL DateAccountsDebitCreditIssueInterestMaturity
&L&"Myriad Web Pro,Bold"&12Name:
Date: Section: &R&"Myriad Web Pro,Bold"&20B-13.08
B-13.08
Problem 4Horton Micro Chip Company issued $100,000 of face amount of 6-year bonds on January 1, 20X1. The bonds were issed at 103, and bear interest at a stated rate of 8% per annum, payable semiannually. The premium is amortized by the straight-line method.(a)Prepare the journal entry to record the initial issue on January, 20X1.(b)Prepare the journal entry that Horton would record on each interest date.(c)Prepare the journal entry that Horton would record at maturity of the bonds.
&R&"Myriad We.
Problem 17-1 Dividends and Taxes [LO2]Dark Day, Inc., has declar.docxChantellPantoja184
Problem 17-1 Dividends and Taxes [LO2]
Dark Day, Inc., has declared a $5.60 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 15 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. Dark Day sells for $94.10 per share, and the stock is about to go ex-dividend.
What do you think the ex-dividend price will be? (Round your answer to 2 decimal places. (e.g., 32.16))
Ex-dividend price
$
Problem 17-2 Stock Dividends [LO3]
The owners’ equity accounts for Alexander International are shown here:
Common stock ($0.60 par value)
$
45,000
Capital surplus
340,000
Retained earnings
748,120
Total owners’ equity
$
1,133,120
a-1
If Alexander stock currently sells for $30 per share and a 10 percent stock dividend is declared, how many new shares will be distributed?
New shares issued
a-2
Show how the equity accounts would change.
Common stock
$
Capital surplus
Retained earnings
Total owners’ equity
$
b-1
If instead Alexander declared a 20 percent stock dividend, how many new shares will be distributed?
New shares issued
b-2
Show how the equity accounts would change. (Negative amount should be indicated by a minus sign.)
Common stock
$
Capital surplus
Retained earnings
Total owners’ equity
$
Problem 17-3 Stock Splits [LO3]
The owners' equity accounts for Alexander International are shown here.
Common stock ($0.50 par value)
$
35,000
Capital surplus
320,000
Retained earnings
708,120
Total owners’ equity
$
1,063,120
a-1
If Alexander declares a five-for-one stock split, how many shares are outstanding now?
New shares outstanding
a-2
What is the new par value per share? (Round your answer to 3 decimal places. (e.g., 32.161))
New par value
$ per share
b-1
If Alexander declares a one-for-seven reverse stock split, how many shares are outstanding now?
New shares outstanding
b-2
What is the new par value per share? (Round your answer to 2 decimal places. (e.g., 32.16))
New par value
$ per share
Problem 17-4 Stock Splits and Stock Dividends [LO3]
Red Rocks Corporation (RRC) currently has 485,000 shares of stock outstanding that sell for $40 per share. Assuming no market imperfections or tax effects exist, what will the share price be after:
a.
RRC has a four-for-three stock split? (Round your answer to 2 decimal places. (e.g., 32.16))
New share price
$
b.
RRC has a 15 percent stock dividend? (Round your answer to 2 decimal places. (e.g., 32.16))
New share price
$
c.
RRC has a 54.5 percent stock dividend? (Round your answer to 2 decimal places. (e.g., 32.16))
New share price
$
d.
RRC has a two-for-seven reverse stock split? (Round your answer to 2 decimal places. (e.g., 32.16))
New share price
$
Determine the new number of shares outstanding in parts (a) through (d).
a.
New shares outstanding
b.
New shares o.
Problem 1Problem 1 - Constant-Growth Common StockWhat is the value.docxChantellPantoja184
Problem 1Problem 1 - Constant-Growth Common StockWhat is the value of a common stock if the firm's earnings and dividends are growing annually at 10%, the current dividend is $1.32,and investors require a 15% return on investment?What is the stock's rate of return if the market price of the stock is $35?
Problem 2Problem 2 - Preferred Stock Price and ReturnA firm has preferred stock outstanding with a $1,000 par value and a $40 annual dividend with no maturity. If the required rate of return is 9%, what is the price of the preferred stock?The market price of a firm's preferred stock is $24 and pays an annual dividend of $2.50. If the stock's par value is $1,000 and it has no maturity, what is the return on the preferred stock?
Problem 3Problem 3 - Bond Valuation and YieldA bond has a par value of $1,000, pays $50 semiannually and has a maturity of 10 years.If the bond earns 12% per year, what is the price of the bond?RateNperPMTFVTypePVWhat is the yield to maturity for the bond?NperPMTPVFVTypeRateWhat would be the bond's price if the rate earned declined to 8% per year?RateNperPMTFVTypePVIf the maturity period is reduced to 5 years and the required rate of return is 8%, what would be the price of the bond?RateNperPMTFVTypePVWhat is the yield to maturity for the bond when the maturity is 5 years and the required rate of return is 8%?NperPMTPVFVTypeRateWhat generalizations about bond prices, interest rates and maturity periods can be made based on the calculations made above?
Problem 4Problem 4 - Callable BondsThe following bonds have a par value of $1,000 and the required rate of return is 10%.Bond XY: 5¼ percent coupon, with interest paid annually for 20 yearsBond AB: 14 percent coupon, with interest paid annually for 20 yearsWhat is each bond's current market price?Bond XYBond ABRateNperPMTFVTypePVIf current interest rates are 9%, which bond would you expect to be called? Explain.
Exercise 10-5
During the month of March, Olinger Company’s employees earned wages of $69,500. Withholdings related to these wages were $5,317 for Social Security (FICA), $8,145 for federal income tax, $3,366 for state income tax, and $434 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $760 for state unemployment tax.
Prepare the necessary March 31 journal entry to record salaries and wages expense and salaries and wages payable. Assume that wages earned during March will be paid during April. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Mar. 31
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Prepare the entry to record the company’s payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Mar. 31
===========================================
E.
Problem 1Prescott, Inc., manufactures bookcases and uses an activi.docxChantellPantoja184
Problem 1Prescott, Inc., manufactures bookcases and uses an activity-based costing system. Prescott's activity areas and related data follows:ActivityBudgeted Cost
of ActivityAllocation BaseCost Allocation
RateMaterials handling$230,000Number of parts$0.50Assembly3,200,000Direct labor hours16.00Finishing180,000Number of finished
units4.50Prescott produced two styles of bookcases in October: the standard bookcase and an unfinished bookcase, which has fewer parts and requires no finishing. The totals for quantities, direct
materials costs, and other data follow:ProductTotal Units
ProducedTotal Direct
Materials CostsTotal Direct
Labor CostsTotal Number
of PartsTotal Assembling
Direct Labor HoursStandard bookcase3,000$36,000$45,0009,0004,500Unfinished bookcase3,50035,00035,0007,0003,500Requirements:1. Compute the manufacturing product cost per unit of each type of bookcase.2. Suppose that pre-manufacturing activities, such as product design, were assigned to the standard bookcases at $7 each, and to the unfinished bookcases at $2 each. Similar analyses
were conducted of post-manufacturing activities such as distribution, marketing, and customer service. The post-manufacturing costs were $22 per standard bookcase and $14 per
unfinished bookcase. Compute the full product costs per unit.3. Which product costs are reported in the external financial statements? Which costs are used for management decision making? Explain the difference.4. What price should Prescott's managers set for unfinished bookcases to earn $15 per bookcase?
Problem 2Corbertt Pharmaceuticals manufactures an over-the-counter allergy medication. The company sells both large commercial containers of 1,000 capsules to health-care facilities
and travel packs of 20 capsules to shops in airports, train stations, and hotels. The following information has been developed to determine if an activity-based costing system
would be beneficial:ActivityEstimated Indirect Activity
CostsAllocation BaseEstimated Quantity of
Allocation BaseMaterials handling$95,000Kilos19,000 kilosPackaging219,000Machine hours5,475 hoursQuality assurance124,500Samples2,075 samplesTotal indirect costs$438,500Other production information includes the following:Commercial ContainersTravel PacksUnits produced3,500 containers57,000 packsWeight in kilos14,0005,700Machine hours2,625570Number of samples700855Requirements:1. Compute the cost allocation rate for each activity.2. Use the activity-based cost allocation rates to compute the activity costs per unit of the commercial containers and the travel packs. (Hint: First compute the total activity
cost allocated to each product line, and then compute the cost per unit.)3. Corbertt's original single-allocation-base costing system allocated indirect costs to produce at $157 per machine hour. Compute the total indirect costs allocated to the
commercial containers and to the travel packs under the original system. Then compute the indirect cost per unit for ea.
Problem 1Preston Recliners manufactures leather recliners and uses.docxChantellPantoja184
Problem 1Preston Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Preston allocates overhead based on yards of direct materials. The company's performance report includes the following selected data:Static Budget
(1,000 recliners)Actual Results
(980 recliners)Sales (1,000 recliners X $495)$495,000 (980 recliners X $475)$465,500Variable manufacturing costs: Direct materials (6,000 yds @ $8.80/yard)52,800 (6,150 yds @ $8.60/yard)52,890 Direct labor (10,000 hrs @ $9.20/hour)92,000 (9,600 hrs @ $9.30/hour)89,280Variable overhead (6,000 yds @ $5.00/yard)30,000 (6,510 yds @ $6.40/yard)39,360Fixed manufacturing costs: Fixed overhead60,00062,000Total cost of goods sold$234,800$243,530Gross profit$260,200$221,970Requirements:1. Prepare a flexible budget based on the actual number of recliners sold.2. Compute the price variance and the efficiency variance for direct materials and for direct labor. For manufacturing overhead, compute the variable overhead spending, variable overhead efficiency, fixed overhead spending, and fixed overhead volume variances.3. Have Preston's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why?4. Describe how Preston's managers can benefit from the standard costing system.
Problem 2AllTalk Technologies manufactures capacitors for cellular base stations and other communications applications. The company's January 2012 flexible budget income statement shows output levels of 6,500, 8,000, and 10,000 units. The static budget was based on expected sales of 8,000 units.ALLTALK TECHNOLOGIES
Flexible Budget Income Statement
Month Ended January 31, 2012Per UnitBy Units (Capacitors)6,5008,00010,000Sales revenue$24$156,000$192,000$240,000Variable expenses$1065,00080,000100,000Contribution margin$91,000$112,000$140,000Fixed expenses53,00053,00053,000Operating income$38,000$59,000$87,000The company sold 10,000 units during January, and its actual operating income was as follows:ALLTALK TECHNOLOGIES
Income Statement
Month Ended January 31, 2012Sales revenue$246,000Variable expenses104,500Contribution margin$141,500Fixed expenses54,000Operating income$87,500Requirements:1. Prepare an income statement performance report for January.2. What was the effect on AllTalk's operating income of selling 2,000 units more than the static budget level of sales?3. What is AllTalk's static budget variance? Explain why the income statement performance report provides more useful information to AllTalk's managers than the simple static budget variance. What insights can AllTalk's managers draw from this performance report?
Problem 3Java manufacturers coffee mugs that it sells to other companies for customizing with their own logos. Java prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit.
Problem 1Pro Forma Income Statement and Balance SheetBelow is the .docxChantellPantoja184
Problem 1Pro Forma Income Statement and Balance SheetBelow is the income statement and balance sheet for Blue Bill Corporation for 2013. Based on the historical statements and theadditional information provided, construct the firm's pro forma income statement and balance sheet for 2014.Blue Bill CorporationIncome StatementFor the year ended 2013Projected201220132014Revenue$60,000$63,000Cost of goods sold42,00044,100Gross margin18,00018,900SG&A expense6,0006,300Depreciation expense1,8002,000Earnings Before Interest and Taxes (EBIT)10,20010,600Interest expense1,5001,800Taxable income8,7008,800Income Tax Expense3,0453,080Net income5,6555,720Dividends750800To retained earnings$4,905$4,920Additional income statement information:Sales will increase by 5% in 2014 from 2013 levels.COGS and SG&A will be the average percent of sales for the last 2 years.Depreciation expense will increase to $2,200.Interest expense will be $1,900.The tax rate is 35%.Dividend payout will increase to $850.Blue Bill CorporationBalance SheetDecember 31, 2013Projected20132014Current assetsCash$8,000Accounts receivable3,150Inventory9,450Total current assets20,600Property, plant, and equipment (PP&E)28,500Accumulated depreciation16,400Net PP&E12,100Total assets$32,700Current liabilitesAccounts payable$3,780Bank loan (10%)3,200Other current liabilities1,250Total current liabilities8,230Long-term debt (12%)4,800Common stock1,250Retained earnings18,420Total liabilities and equity$32,700Additional balance sheet information:The minimum cash balance is 12% of sales.Working capital accounts (accounts receivable, accounts payable, and inventory) will be the same percent of sales in 2014 as they were in 2013.$8,350 of new PP&E will be purchased in 2014.Other current liabilities will be 3% of sales in 2014.There will be no changes in the common stock or long-term debt accounts.The plug figure (the last number entered that makes the balance sheet balance) is bank loan.
1
Rough Draft
Rough Draft
Rasmussen College
Metro Dental Care is a dental office that provides affordable, convenient, and high quality of care to patients. As a patient at Metro, I personally believe that Metro Dental Care is one of the best dental clinics around, and that’s why I have chosen this company. Metro Dental Care measures their results by recording patient satisfaction.
Managing financial reports, and the quality of service they provide to their customers. Furthermore, the dentists and staff at Metro Dental Care know how important your smile is. Their mission statement states “We pride ourselves in making your smile look great so you not only look good, but feel confident with your smile.”
Metro Dental Care offers convenience for their patients with more than 40 offices throughout the Minneapolis and St. Paul metro area offering flexible hours including early morning, evening and Saturday appointments. Whether you work or live Metro Dental Care has a location near you. Metro Dental .
Problem 2-1PROBLEM 2-1Solution Legend= Value given in problemGiven.docxChantellPantoja184
This document provides a solution to Problem 2-1. It begins by listing the values given in the problem statement. The document then likely shows the step-by-step work and calculations to arrive at the solution for Problem 2-1, ending with the final answer.
PROBLEM 14-6AProblem 14-6A Norwoods Borrowings1. Total amount of .docxChantellPantoja184
PROBLEM 14-6AProblem 14-6A: Norwoods Borrowings1. Total amount of each installment payment.Present value of an ordinary annuity$200,000Interest per period(i)0.08Number of periods(n)5Total amount of each installment payment($50,091.29)Therefore the total amount of each installment payment is $ 50,091.292.Norwoods Amortization TablePeriod Ending DateBeginning balance Interest expenseNotes PayableCash paymentEnding Balance10/31/15$200,000.00$16,000.00$34,091.29$50,091.29$165,908.7110/31/16$165,909.00$13,272.72$36,818.57$50,091.29$129,090.4310/31/17$129,090.43$10,327.23$39,764.06$50,091.29$89,326.3710/31/18$89,326.37$7,146.11$42,945.18$50,091.29$46,381.1910/31/19$46,381.19$3,710.50$46,380.79$50,091.29$0.403.a) Accrued interest as December 31st 2015Accrued interest expense = $200,000*8%*2/12= $2,666.67. Thus the journal entry is as shown below:DescriptionDr($)Cr($)interest expense $2,666.67 Interest payable $2,666.67b) The first annual payment on the note.Ten more months of interest has accrued $200,000*8%*10/12 =$13,333.33 accrued interest .Therefore the journal entry is as shown below:DescriptionDr($)Cr($)Notes payable$34,091.29interest expense$13,333.33interest payable$2,666.67 Cash$50,091.29
PROBLEM 14-7AProblem 14-7AQuestion 1a) Debt to equity ratiosPulaski CompanyScott Company Total liabilities$360,000.00$240,000.00Total Equity$500,000.00$200,000.00Debt-Equity Ratio0.721.2Question 2The debt to equity ratio measures the amount of debt a company uses has to finance its business for every dollar of equity it has. A higher debt to equity ratio implies that a company uses more debt than equity for financing. In this case, the debt to equity ratio for Pulaski Company is 0.72 which is less than 1 implying that the stockholder's equity exceeds the amount of debt borrowed. Thus Pulaski Company may not likely suffer from risks brought about by huge amount of debts in the capital structure. On the other hand, the debt to equity ratio of Scott Company is 1.2 which is greater than 1 implying that the debt exceeds the totalamount stockholders equity. Huge debts is associated with a lot of risks. First, there is the risk of defaulting whereby the company may be unable to repay its debt and therefore leading to bankruptcy. Second, a company may find it difficult to obtain additional funding from creditors.This is because the creditors prefer companies with low debt to equity ratio. Finally, there is the risks of violating the debt covenants. A covenant is an agreement that requires a company to maintain adequate financial ratio levels. Too much borrowings may violate this covenant. Since ScottCompany has a higher debt to equity ratio, it may experience these risks which may eventually lead to the company being declared bankrupt .
PROBLEM 14-6BProblem 14-6B: Gordon Enterprises Borrowings1. Total amount of each installment payment.Present value of an ordi.
Problem 13-3AThe stockholders’ equity accounts of Ashley Corpo.docxChantellPantoja184
Problem 13-3A
The stockholders’ equity accounts of Ashley Corporation on January 1, 2012, were as follows.
Preferred Stock (8%, $49 par, cumulative, 10,200 shares authorized)
$ 387,100
Common Stock ($1 stated value, 1,937,100 shares authorized)
1,408,700
Paid-in Capital in Excess of Par—Preferred Stock
123,200
Paid-in Capital in Excess of Stated Value—Common Stock
1,496,800
Retained Earnings
1,814,400
Treasury Stock (10,300 common shares)
51,500
During 2012, the corporation had the following transactions and events pertaining to its stockholders’ equity.
Feb. 1
Issued 24,100 shares of common stock for $123,900.
Apr. 14
Sold 6,000 shares of treasury stock—common for $33,800.
Sept. 3
Issued 5,100 shares of common stock for a patent valued at $35,700.
Nov. 10
Purchased 1,100 shares of common stock for the treasury at a cost of $5,700.
Dec. 31
Determined that net income for the year was $456,600.
No dividends were declared during the year.
(a)
Journalize the transactions and the closing entry for net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Feb. 1
Apr. 14
Sept. 3
Nov. 10
Dec. 31
Click if you would like to Show Work for this question:
Open Show Work
LINK TO TEXT
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.
Problem 12-9AYour answer is partially correct. Try again..docxChantellPantoja184
Problem 12-9A
Your answer is partially correct. Try again.
Condensed financial data of Odgers Inc. follow.
ODGERS INC.Comparative Balance Sheets
December 31
Assets
2014
2013
Cash
$ 131,704
$ 78,892
Accounts receivable
143,114
61,940
Inventory
183,375
167,646
Prepaid expenses
46,292
42,380
Long-term investments
224,940
177,670
Plant assets
464,550
395,275
Accumulated depreciation
(81,500
)
(84,760
)
Total
$1,112,475
$839,043
Liabilities and Stockholders’ Equity
Accounts payable
$ 166,260
$ 109,699
Accrued expenses payable
26,895
34,230
Bonds payable
179,300
237,980
Common stock
358,600
285,250
Retained earnings
381,420
171,884
Total
$1,112,475
$839,043
ODGERS INC.Income Statement Data
For the Year Ended December 31, 2014
Sales revenue
$633,190
Less:
Cost of goods sold
$220,800
Operating expenses, excluding depreciation
20,228
Depreciation expense
75,795
Income tax expense
44,466
Interest expense
7,710
Loss on disposal of plant assets
12,225
381,224
Net income
$ 251,966
Additional information:
1.
New plant assets costing $163,000 were purchased for cash during the year.
2.
Old plant assets having an original cost of $93,725 and accumulated depreciation of $79,055 were sold for $2,445 cash.
3.
Bonds payable matured and were paid off at face value for cash.
4.
A cash dividend of $42,430 was declared and paid during the year.
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
ODGERS INC.Statement of Cash Flows
For the Year Ended December 31, 2014
$
Adjustments to reconcile net income to
$
$
Problem 12-10A
Condensed financial data of Odgers Inc. follow.
ODGERS INC.Comparative Balance Sheets
December 31
Assets
2014
2013
Cash
$ 151,904
$ 90,992
Accounts receivable
165,064
71,440
Inventory
211,500
193,358
Prepaid expenses
53,392
48,880
Long-term investments
259,440
204,920
Plant assets
535,800
455,900
Accumulated depreciation
(94,000
)
(97,760
)
Total
$1,283,100
$967,730
Liabilities and Stockholders’ Equity
Accounts payable
$ 191,760
$ 126,524
Accrued expenses payable
31,020
39,480
Bonds payable
206,800
274,480
Common stock
413,600
329,000
Retained earnings
439,920
198,246
Total
$1,283,100
$967,730
ODGERS INC.Income Statement Data
For the Year Ended December 31, 2014
Sales revenue
$730,305
Less:
Cost of goods sold
$254,665
Operating expenses, excluding depreciation
23,331
Depreciation expense
87,420
Income taxes
51,286
Interest expense
8,892
Loss on disposal of plant assets
14,100
439,694
Net income
$ 290,611
Additional information:
1.
New plant assets costing $188,000 were purchased for c.
Problem 1123456Xf122437455763715813910106Name DateTopic.docxChantellPantoja184
Problem 1123456Xf122437455763715813910106
Name: Date:
Topic One: Mean, Variance, and Standard Deviation
Please type your answer in the cell beside the question.
5. The following is the heart rate for 10 randomly selected patients on the unit. Find the mean, variance, and standard deviation of the data using the descriptive statistics option in the data analysis toolpak.
75, 80, 62, 97, 107, 59, 76, 83, 84, 69
6. The following is a frequency distribution fo the number of times patience use the call light in a days time. X is the number of times the call light is used and f is the frequency (meaning the number of patients). Create a histogram of the data.
Sheet2
Sheet3
EXERCISE 11 USING STATISTICS TO DESCRIBE A STUDY SAMPLE
STATISTICAL TECHNIQUE IN REVIEW
Most studies describe the subjects that comprise the study sample. This description of the sample is called the sample characteristics which may be presented in a table or the narrative of the article. The sample characteristics are often presented for each of the groups in a study (i.e. experimental and control groups). Descriptive statistics are used to generate sample characteristics, and the type of statistic used depends on the level of measurement of the demographic variables included in a study (Burns & Grove, 2007). For example, measuring gender produces nominal level data that can be described using frequencies, percentages, and mode. Measuring educational level usually produces ordinal data that can be described using frequencies, percentages, mode, median, and range. Obtaining each subject's specific age is an example of ratio data that can be described using mean, range, and standard deviation. Interval and ratio data are analyzed with the same type of statistics and are usually referred to as interval/ratio level data in this text.
RESEARCH ARTICLE
Source: Troy, N. W., & Dalgas-Pelish, P. (2003). The effectiveness of a self-care intervention for the management of postpartum fatigue. Applied Nursing Research, 16 (1), 38–45.
Introduction
Troy and Dalgas-Pelish (2003) conducted a quasi-experimental study to determine the effectiveness of a self-care intervention (Tiredness Management Guide [TMG]) on postpartum fatigue. The study subjects included 68 primiparous mothers, who were randomly assigned to either the experimental group (32 subjects) or the control group (36 subjects) using a computer program. The results of the study indicated that the TMG was effective in reducing levels of morning postpartum fatigue from the 2nd to 4th weeks postpartum. These researchers recommend that “mothers need to be informed that they will probably experience postpartum fatigue and be taught to assess and manage this phenomenon” (Troy & Dalgas-Pelish, 2003, pp. 44-5).
Relevant Study Results
“A total of 80 women were initially enrolled [in the study] … twelve of these women dropped out of the study resulting in a final sample of 68.” (Troy & Dalgas-Pelish, 2003, p. 39). The researchers presen.
Problem 1. For the truss and loading shown below, calculate th.docxChantellPantoja184
Problem 1. For the truss and loading shown below, calculate the horizontal
displacement of point "D" using the method of virtual work. Show ALL your work!
HW No. 8 - Part 1
Solution
HW FA15 2 Page 1
Problem 1 Continued
Member L (in.) N (lb) N (in) NnL
HW No. 8 - Part 1
.
Problem 1 (30 marks)Review enough information about .docxChantellPantoja184
Problem 1 (30 marks)
Review enough information about Trinidad Drilling Ltd. to propose a vision and strategic objectives for the company. Develop a balanced scorecard that will help the company achieve this vision and monitor how well it is accomplishing its strategic objectives. Include a strategy map in table format that shows objectives and performance measures, with arrows illustrating hypothesized cause-and -effect relationships. Provide rationale for your strategy map. The body of your report should not exceed 1,000 words. Cite material you used to prepare the response and provide references in an appendix.
Problem 2 (20 marks)
Ajax Auto Upholstery Ltd. manufactures upholstered products for automobiles, vans, and trucks. Among the various Ajax plants around Canada is the Owlseye plant located in rural Alberta.
The chief financial officer has just received a report indicating that Ajax could purchase the entire annual output of the Owlseye plant from a foreign supplier for $37 million per year.
The budgeted operating costs (in thousands) for the Owlseye plant’s for the coming year is as follows:
Materials $15,000
Labor
Direct $12,000
Supervision 4,000
Indirect plant 5,000 19,000
Overhead
Depreciation – plant 6,000
Utilities, property tax, maintenance 2,000
Pension expense 4,500
Plant manager and staff 2,500
Corporate headquarters overhead allocation 3,000 18,000
Total budgeted costs $52,000
If material purchase orders are cancelled as a consequence of the plant closing, termination charges would amount to 10 percent of the annual cost of direct materials in the first year (zero thereafter).
A clause in the Ajax union contract requires the company to provide employment assistance to its former employees for 12 months after a plant closes. The estimated cost to administer this service if the Owlseye plant closes would be $2 million. $3.6 million of next year’s pension expense would continue indefinitely whether or not the plant remains open. About $900,000 of labour would still be required in the first year after closure to decommission the plant. After that, the plant would be sold for an estimated $1 million. Utilities, property taxes, and maintenance costs would remain unchanged in the first year after closure, but disappear when the plant is sold.
The plant manager and her staff would be somewhat affected by the closing of the Owlseye plant. Some managers would still be responsible for managing three other plants. As a result, total management salaries would be about 50% of the current level, starting at closure and remaining into the future.
Required:
Assume you are the company’s chief financial officer. Perform a five-year financial analysis and make a recommendation whether to close the Owlseye plant on this basis. Provide support for and cautions about your recommendation with organized, clearly-labeled data. Use bullet points where appropriate.
Problem 3 (16 marks)
Br.
Problem 1 (10 points) Note that an eigenvector cannot be zero.docxChantellPantoja184
Problem 1 (10 points): Note that an eigenvector cannot be zero, but an eigenvalue can
be 0. Suppose that 0 is an eigenvalue of A. What does it say about A? (Hint: One of the
most important properties of a matrix is whether or not it is invertible. Think about the
Invertible Matrix Theorem and all the ‘good things’ of dealing with invertible matrices)
Problem 5: (20 points): The figure below shows a network of one-way streets with
traffic flowing in the directions indicated. The flow rate along the streets are measured
as the average number of vehicles per hour.
a) Set up a mathematical model whose solution provides the unknown flow rates
b) Solve the model for the unknown flow rates
c) If the flow rates along the road A to B must be reduced for construction, what is
the minimum flow that is required to keep traffic flowing on all roads?
Problem 6 (20 points): Problem 7 (9 points): Prove that if A and B are matrices of the same
size, then tr(A+B)=tr(A)+tr(B)
Given:
Goal:
Proof:
Problem 7 (20 points)*: In the 1990, the northern spotted owl became the center of a
nationwide controversy over the use and misuse of the majestic forests in the Pacific
Northwest. Environmentalists convinced the federal government that the owl was
threatened with extinction if logging continued in the old-growth forests (with trees over
200 years old), where the owls prefer to live. The timber industry, anticipating the loss of
30,000 to 100,000 jobs as a result of new government restrictions on logging, argued that
the owl should not be classified as a “threatened species” and cited a number of published
scientific reports to support its case.
Caught in the crossfire of the two lobbying groups, mathematical ecologists
intensified their drive to understand the population dynamics of the spotted owl. The life
cycle of a spotted owl divides naturally into three stages: juvenile (up to 1 year old),
subadult (1 to 2 years), and adult (over 2 years). The owls mate for life during the subadult
and adult stages, begin to breed as adults, and live for up to 20 years. Each owl pair
requires about 1,000 hectares (4 square miles) for its own home territory. A critical time in
the life cycle is when the juveniles leave the nest. To survive and become a subadult, a
juvenile must successfully find a new home range (and usually a mate).
A first step in studying the population dynamics is to model the population at yearly
intervals, at times denoted by 𝑘𝑘 = 0,1,2, …. Usually, one assumes that there is a 1:1 ratio of
males to females in each life stage and counts only the females. The population at year 𝑘𝑘
can be described by a vector 𝒙𝒙𝒌𝒌 = (𝑗𝑗𝑘𝑘 , 𝑠𝑠𝑘𝑘 , 𝑎𝑎𝑘𝑘 ), where 𝑗𝑗𝑘𝑘 , 𝑠𝑠𝑘𝑘 , and 𝑎𝑎𝑘𝑘 are the numbers of
females in the juvenile, subadult, and adult stages, respectively. Using actual field data from
demographic studies, a rese
Probation and Parole 3Running head Probation and Parole.docxChantellPantoja184
Probation and Parole 3
Running head: Probation and Parole
Probation and Parole
Student Name
Allied American University
Author Note
This paper was prepared for Probation and Parole, Module 8 Check Your Understanding taught by [INSERT INSTRUCTOR’S NAME].
Directions: Respond to the following questions using complete sentences. Your answer should be at least 1 paragraph in length, which must be composed of three to five sentences.
1. What is meant by intermediate punishments and what programs are included in this category?
2. How do intermediate punishments serve to keep down prison populations?
3. Why has electronic monitoring proven so popular?
4. What is meant by shock probation/parole?
5. What are the essential features of the boot camp program?
6. Why has intensive supervision been a public relations success?
7. What are the criticisms of boot camp programs?
8. What has research revealed with respect to intensive supervision?
9. What are the criticisms of electronic monitoring in probation and parole?
10. What are the criticisms leveled at intensive supervision?
11. What are the purposes of and services offered by a day reporting center?
12. Why would heroin addicts who have no intention of giving up drug use voluntarily enter a drug treatment program? What are the advantages of using methadone to treat heroin addicts?
13. Why is behavior modification difficult to use in treating drug abusers?
14. What are the characteristics of chemical dependency (CD) programs?
15. What are the primary characteristics of the therapeutic community (TC) approach for treating drug abusers?
16. What are criticisms of the Alcoholics Anonymous approach?
17. What are the problems inherent in drug testing?
18. What are the typical characteristics of sex offenders? How have sex offender laws affected P/P supervision?
19. What are the pros and cons of restitution and charging offenders fees in probation or parole?
20. What are the problems encountered in using the interstate compact?
.
Problem 1(a) Complete the following ANOVA table based on 20 obs.docxChantellPantoja184
Problem 1:
(a) Complete the following ANOVA table based on 20 observations for the regression equation
(a) Is the overall regression significant? Fill in the missing values in the table.
Source DF SS MS F
Regression ___ 350 ____ ____
Error ___ _____
Total 500
(b) Suppose that you have computed the following sequential sums of squares due to regression:
Regressor Variables in Model SS Regression
………………………………………. 300
……………………………………… 250
…………………………………….. 340
……………………………………. 325
Fill in the missing values in the following “computer output”:
Source DF Partial SS F-value Pr>F
……………………………………………………………………………………….. 0.1245
………………………………………………………………………………………. 0.3841
………………………………………………………………………………………. 0.0042
………………………………………………………………………………………. 0.0401
Problem 2:
The time required for a merchandise to stock a grocery store shelf with a soft drink product as well as the number of cases of product stocked are given below. Consider a linear regression of delivery time against number of cases.
X=number of cases
Y=delivery time
Delivery time number of cases Hat diagonals
1.41 4 0.5077
2.96 6 0.3907
6.04 14 0.2013
7.57 19 0.3092
9.38 24 0.5912
Observations used L.S. Model
4,6,14,19,24
6,14,19,24
4,14,19,24
4,14,19,24
4,6,14,24
4,6,14,19
(a)
Calculate the PRESS statistic for the model .
(b) Calculate the regular residual for the model above. Then, compare these residuals with the PRESS residuals for this model.
Exercises from the Text
Use SAS whenever possible to do these exercises:
# 3.4 on p 122
# 3.5
# 3.8
# 3.15
# 3.21
# 3.27
# 3.28
# 3.31
# 3.38
# 3.39
Example with SAS on Sequential and Partial Sum of Squares
Data Weather;
Title 'Lows and Highs from N&O Jan 28,29,30 1992';
Title2 'using actual numbers (yesterday values)';
input city $ hi2 lo2 yhi ylo thi tlo;
* Mon Tues Wed ;
cards;
seattle 51 44 52 44 59 47
.
.
.
;
proc reg; model thi = yhi hi2 tlo ylo lo2/ss1 ss2;
test tlo=0, ylo=0, lo2=0;
/*-----------------------------------------------
| Showing sequential and partial sums of squares|
| Note t**2 = F relationship for partial F. By |
| hand, construct F to leave out .
Probe 140 SPrecipitation in inchesTemperature in F.docxChantellPantoja184
Probe 1
40 S
Precipitation in inches
Temperature in F
J F M A M J J A S O N D
2
4
6
8
10
12
0
10
20
30
40
50
60
70
80
90
POTET 26.8
Precip 27.1
MAT(F) 59.8
Probe 2
6 S
Precipitation in inches
Temperature in F
J F M A M J J A S O N D
2
4
6
8
10
12
0
10
20
30
40
50
60
70
80
90
POTET 69.2
Precip 124.6
MAT(F) 77.9
Probe 3
57 S
Precipitation in inches
Temperature in F
J F M A M J J A S O N D
2
4
6
8
10
12
0
10
20
30
40
50
60
70
80
90
POTET 21.5
Precip 38.7
MAT(F) 43.5
Probe 4
38 N
Precipitation in inches
Temperature in F
J F M A M J J A S O N D
2
4
6
8
10
12
0
10
20
30
40
50
60
70
80
90
POTET 30.3
Precip 16.5
MAT(F) 53.6
Probe 5
55 N
Precipitation in inches
Temperature in F
J F M A M J J A S O N D
2
4
6
8
10
12
0
10
20
30
40
50
60
70
80
90
POTET 21.3
Precip 28.1
MAT(F) 40.6
Probe 6
43 N
Precipitation in inches
Temperature in F
J F M A M J J A S O N D
2
4
6
8
10
12
0
10
20
30
40
50
60
70
80
90
POTET 25.4
Precip 14.4
MAT(F) 47.2
Probe 7
42 N
Precipitation in inches
Temperature in F
J F M A M J J A S O N D
2
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0
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POTET 17.3
Precip 31.2
MAT(F) 26.0
Probe 8
42 N
Precipitation in inches
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J F M A M J J A S O N D
2
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POTET 29.6
Precip 38.8
MAT(F) 51.6
Probe 9
18 S
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J F M A M J J A S O N D
2
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12
0
10
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POTET 66.1
Precip 74.8
MAT(F) 77.7
Probe 10
58 N
Precipitation in inches
Temperature in F
J F M A M J J A S O N D
2
4
6
8
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12
0
10
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90
POTET 16.5
Precip 24.8
MAT(F) 36.9
Probe 11
26 N
Precipitation in inches
Temperature in F
J F M A M J J A S O N D
2
4
6
8
10
12
0
10
20
30
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90
POTET 47.6
Precip 3.8
MAT(F) 70.1
Probe 12
29 N
Precipitation in inches
Temperature in F
J F M A M J J A S O N D
2
4
6
8
10
12
0
10
20
30
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90
POTET 44.0
Precip 47.3
MAT(F) 63.2
Probe 4
Probe 2
Probe 10
Probe 5
Probe 6
Probe 7
Probe 11
Probe 12
Probe 8
Probe 9
Probe 3
Probe 1
Map 1
20 N
40 N
60 N
80 N
0
20 S
40 S
60 S
0
1000
miles
Geography 204
Koppen Climate Classification Guidelines
If POTET exceeds Precip then B
BW = POTET more than 2x Precip
(desert)
h = mean annual temp > 18 C (64.4 F)
k = mean annual temp < 18 C (64.4 F)
BS = POTET less than 2x Precip
(steppe)
h = mean annual t.
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13112019 Globalisation 1.0 and 2.0 helped the G7. Globalisat
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126 A A
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Richard Baldwin 21 January 2019
Richard Baldwin describes how digital technology is allowing
people and companies to arbitrage large relative
price differences in wages across countries, offering an
enormous export opportunity for developing nations.
Globalisation leapt forward in the late 19th century
when steam power slashed the costs of moving goods
internationally. This ‘old globalisation’ came in two
waves. Globalisation 1.0 started in 1820 and ended at
the start of WWI, and Globalisation 2.0 began after
WWII and ended around 1990.1 In between,
globalisation retreated.
Old globalisation was especially beneficial to today’s
rich nations. The G7 (France, Germany, Italy, Britain, US,
Japan, and Canada) saw rapid growth of
their exports, incomes, and industry compared to today's poor
nations. This led to what Kenneth
Pomeranz, a historian, calls the Great Divergence.
The G7’s share of world GDP soared from one-fifth in 1820 to
two-thirds in 1988. Its share of world
trade rose to more than 50% (Figure 1). Enormous differences
in income between rich and poor
nations first emerged at this time.
Figure 1 Spot the difference: Globalisations 1.0 and 2.0 (blue)
and 3.0 (red)
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7. nations de-industrialised.
Figure 2 Per capita industrialisation levels, 1750 to 1913
Source: Author’s elaboration of data from Bairoch (1982, Table
9).
Globalisation 1.0 drove northern industrialisation and southern
de-industrialisation. This is not as
widely known as it should be, but it has long been recognised.
As Simon Kuznets wrote in 1965:
“Before the 19th century and perhaps not much before it, some
presently underdeveloped
countries, notably China and parts of India, were believed by
Europeans to be more highly
developed than Europe” (Kuznets 1965:20, cited in Baldwin and
Martin 1999).2
The new globalisation: Globalisation 3.0
Globalisation leaped forward again in the late 20th century
when information and communication
technologies (ICT) radically lowered the cost of movi ng ideas
internationally. This ‘new
globalisation’, or Globalisation 3.0, had dramatically different
effects on world income (GDP) shares,
as can be seen from Figure 1. In just 20 years, the G7 share of
world GDP plummeted to 50%, and
its share of trade to 32%. This trend, which might be called the
'Great Convergence', is surely the
dominant economic fact of the last 20 or 30 years.
What happened to the landscape of global manufacturing?
Figure 3 shows that the G7 nations lost
share gradually between 1970 and 1990, followed by an
8. accelerated decline from 1990. To where
did manufacturing go? Just six developing nations – which we
might call the ‘Rapidly Industrialising
6’, or I6 for short – accounted for almost all of it. The I6 are
China, Korea, India, Poland, Indonesia
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10. 13/11/2019 Globalisation 1.0 and 2.0 helped the G7.
Globalisation 3.0 helped India and China instead. What will
Globalisation 4.0 do? | VOX, …
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globalisation-30-helped-india-and-china-instead-what-will-
globalisation-40-do 3/7
and Thailand. China stands out. It gained almost 16 percentage
points of world manufacturing in
just 20 years.
Figure 3 Most of the G7’s share loss in manufacturing went to
just seven rapidly industrialising
nations
Source: UNSTAT.org.
To understand why globalisation today acts differently to its
effect in the 20th century, we need a
broader framework for thinking about globalisation and the
things that drive it. This was the theme of
my 2016 book, The Great Convergence: Information
Technology and the New Globalisation.
This framework also helps us think about the effect that
Globalisation 4.0 will have.
Three cascading constraints of globalisation
Economic globalisation can be defined as all the things that
happen when:
goods,
11. ideas,
people,
services, and
capital
move from one nation to another. Globalisation matters because
these flows affect our jobs,
salaries, income distributions, and so on. (Many more things
cross borders, but these are the main
flows we are interested in when we analyse economic
globalisation.)
But this list is too long. We should simplify to clarify. As Karl
Popper said: “Science may be
described as the art of systematic over-simplification.” So if we
want to understand how the flows
affect economies and people, it is useful to narrow the list.
Capital is quite different from the other flows and so we set it
aside. When services cross borders,
they are either ideas (say, architectural plans) or embedded in
goods (say, diamonds that have
been skilfully cut in India). This means we can lump services in
with either ideas and goods. this
leaves us with three flows: goods, ideas, and people.
The next natural question is, what drives globalisation? The
answer is equally simple. Globalisation
is driven by arbitrage.
Arbitrage drives globalisation
When a good is relatively cheap in Germany compared to China,
then other goods are relatively
cheap in China compared to Germany. It's a logical
inevitability. For example, if good 1 is relatively
12. cheap compared to good 2 in Germany, then good 2 must be
relatively cheap compared to good 1
in China.
When companies exploit price differences – buying low and
selling high – we get international trade.
Companies buy what is relatively cheap in Germany and sell it
in China and buy what is relatively
cheap in China and sell it in Germany. Trade is driven by a two-
way buy-low, sell-high arbitrage.
This is not a new idea – David Ricardo was writing about it in
1817. There is also arbitrage in ideas
and people. As we saw, arbitrage of knowhow was particularly
important in Globalisation 3.0.
The arbitrage of the three flows is limited by three costs.
13/11/2019 Globalisation 1.0 and 2.0 helped the G7.
Globalisation 3.0 helped India and China instead. What will
Globalisation 4.0 do? | VOX, …
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globalisation-30-helped-india-and-china-instead-what-will-
globalisation-40-do 4/7
Globalisation has been driven by reductions in the costs of
moving goods, ideas and people,
because when these costs fall, so does the cost of separating
production and consumption
geographically. But, to understand globalisation, we need to
distinguish the costs of separation for
each. Since the early 19th century, all three have fallen, but not
at the same time. Shipping costs fell
dramatically 150 years before communication costs did. Face-
13. to-face interactions remain costly,
even today. This shaped how globalisation evolved.
To understand this, we can be guided in a gallop through the
history of trade by a thought
framework that I call the 'three cascading constraints' (3CC)
view of globalisation.
The 3CC history of globalisation
When transportation involved wind power by sea, and animal
power by land, almost nothing could
be shipped at a profit over a long distance. The high cost of
moving goods, people and ideas
created three constraints that bound together the production and
consumption of goods. Therefore,
apart from elite goods and essential raw materials, most things
that people consumed were made
within walking distance of their homes. We know from books
and paintings that royalty and the rich
could enjoy goods made far away, but most people lived in
villages. For the rest, consumption
meant locally made food, shelter, and clothing.
This isolation meant that the world economy was little more
than a patchwork of village-level
economies. The extreme separation of production hindered
innovation, because small-scale
production meant innovation was worth little to the innovator,
and their dispersion meant that it was
difficult for innovation to spread quickly. Modern growth, in
other words, was stymied until
Globalisation 1.0 took off.
The cost of moving goods was the first of the three to fall
dramatically. From the early 19th century,
14. steam power and transport technologies improved in a process
that helped create, and was helped
by, the Industrial Revolution.
With cheaper international shipping, more people bought goods
from far away. Kevin O’Rourke and
Jeff Williamson, two economists of the history of trade, date
this to 1820. But while shipping got
cheaper, the cost of moving ideas and people fell much less.
This unbalanced reduction in arbitrage
costs triggered a sequence of changes that had a huge effect on
the global economy:
As markets expanded globally, industry clustered locally. These
clusters were in today’s
developed nations. Today’s developing nations de-
industrialised.
Northern industrialisation triggered northern innovation, which
stimulated northern growth. But
ideas were costly to move, and so northern innovations stayed
in the north. The result was a
vast imbalance in knowledge-per-worker ratios between the
global north and the global south.
The localisation of innovation also meant that growth took-off
later in today’s poor nations, and
was slower afterwards.
The growth differences between north and south generated the
colossal, north-south income
asymmetry that we still see today.
Globalisation accelerated again around 1990, when the ICT
revolution radically lowered the cost of
moving ideas. Globalisation’s second unbundling – the
geographic separation of each
manufacturing stage, organised in 'global value chains' (GVCs)
– became feasible when the ICT
15. revolution made it possible to organise complex activities at
distance. The north-south wage gap
inherited from the first unbundling made this offshoring
profitable.
Nature abhors a vacuum, economies abhor imbalances. It
became cheaper to move ideas, and so
this inevitably triggered massive north-to-south flows of
knowhow, which reconfigured the world
economy as shown by the red lines in Figure 1. This new -style
globalisation – where high-tech
moved to places where there was low-wage labour – turned the
first unbundling on its head. It de-
industrialised the north and industrialised the south. Growth
slowed in the north and accelerated in
the south.
In short, it produced the Great Convergence.
The knowledge that is moving north to south mostly belongs to
firms based in the G7. Firms in the
G7 have invested in GVCs to ensure that they profit from the
new ICT-enabled possibilities. The
21st-century contours of knowledge are increasingly defined by
the geography of the GVCs, rather
than the geography of nations.
The 3CC view of globalisation argues that this outcome depends
on the cost of moving people, not
goods or ideas. Aeroplane fares have fallen, but the time-cost of
travel has continued to rise
because we need to factor in the salaries of managers and
technicians. Since it is still expensive to
move people around – and international production networks
still need people to move among
16. 13/11/2019 Globalisation 1.0 and 2.0 helped the G7.
Globalisation 3.0 helped India and China instead. What will
Globalisation 4.0 do? | VOX, …
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globalisation-30-helped-india-and-china-instead-what-will-
globalisation-40-do 5/7
facilities – most advanced manufacturing still occurs in nations
that are close to the G7 industrial
powerhouses, especially Germany, Japan and the US. India is an
exception, but this is because
India has engaged in international production networks for
which face-to-face contact is less
important.
The industrialisation impact of the second unbundling was
hyper-concentrated, but the Great
Convergence is much broader because of the knock-on effects
of the rapid industrialisation of the
I6. About half of the world's population lives in the I6, so rapid
income growth has triggered a boom
in demand for raw materials. This, in turn, triggered the
‘commodity super-cycle’ that led to growth
take-offs in commodity-exporting nations. In other words, the
second unbundling (Globalisation 3.0)
drove growth in many developing nations that were untouched
directly by GVCs.
I have summarised the 3CC narrative in Figure 4. It's clear that
a third unbundling becomes
possible if face-to-face costs plummet. And that, in my view, is
what Globalisation 4.0 is all about.
17. Figure 4 The 3CC view of globalisation
Future globalisation will be in things that we do
Globalisation is, I believe, in for a radical new transformation.
This will happen if the cost of face-to-
face interaction falls as much as the cost of moving ideas has in
the recent past. This will allow a
third unbundling. This will be the unbundling of service
workers and service work, or to put it
differently, it makes it possible to separate labour services
geographically from the labourers.
Arbitrage of goods and ideas will continue, but there will be a
new, disruptive aspect called 'tele-
migration'. People will sit in one nation, while working in
offices in another nation.
There is a simple driving force for this arbitrage. Salaries and
wages for this type of work are much
higher in rich nations. Hundreds of millions, maybe billions, of
people in poor nations would like to
earn those wages. Today that is not technically possible,
because there is a high face-to-face cost,
and we still need in-person interactions in many service and
professional jobs. If digital technology
relaxes this third constraint on the global arbitrage of wage-rate
differences, as I think this will, it
would be a big change.
If digital technology allows people in poor nations to offer their
labour services in advanced
economies without actually having to be there, a lot of people in
advanced economies could lose
their jobs. The necessary technology is already on the way. This
is the topic of my new book, The
18. Globotics Upheaval: Globalisation, Robotics and the Future of
Work.
A third unbundling
The service sector in G7 nations has been shielded from
globalisation because most services
require face-to-face contact. Times are changing.
The third unbundling is unfolding before our eyes. It is all
about processing and transmitting
information. Laws of physics governing goods do not govern
data. The explosive growth of digital
technology creates the possibility of remote intelligence (RI).
Digital technology is tearing down the
barriers to arbitrage in labour services.
Firms already hire remote knowledge workers abroad at lower
wages. As more companies in rich
nations source labour this way, the matchmaking network will
grow. Many companies in the US and
Europe seem unaware of the possibilities, or maybe they are
hesitant to explore what the
consequences may be. But once a firm’s competitors start using
low-cost foreign labour,
competition will accelerate the process.
13/11/2019 Globalisation 1.0 and 2.0 helped the G7.
Globalisation 3.0 helped India and China instead. What will
Globalisation 4.0 do? | VOX, …
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globalisation-30-helped-india-and-china-instead-what-will-
globalisation-40-do 6/7
19. Talented foreign workers will increasingly use digital platforms
like Upwork.com, looking for work,
and companies that use them will join the platforms, looking for
remote workers. My guess is that
tipping-point economics will define the progress of global
outsourcing of services. Once people
begin to trust these platforms – as they have rapidly come to
trust internet services like Airbnb and
Uber – it will snowball into something very big, very fast.
Impact on developing nations
The comparative advantage of most developing nations comes
from labour that is, quality-adjusted,
still cheap. Mostly, the only way they exploit it is to use their
labour to make a thing, and then ship
that thing across borders. Since manufacturing is subject to
large agglomeration economies, and
requires that manufacturers get many things right, only a
handful of developing nations can really
transform their economies based on manufactured exports alone.
Most that have succeeded have
done so by joining the supply chains that were clustered in G7
nations.
Tele-migration will allow people with skills in developing
nations to export their services directly. This
may allow the emerging market miracle to continue, but also to
spread to many nations that until
now have only been able to export commodities.
An accelerating process
The first two globalisations helped the G7 nations and hindered
the developing nations – at least in
20. a relative sense. Until 1990, most rich nations grew faster than
most poor nations. This is because it
was easy to ship goods, but difficult to ship knowhow.
Offshoring manufacturing fostered innovation and rising
competitiveness in the G7 nations, but the
opposite in developing nations. Coordinating complex activities
was too expensive, and so the
knowledge stayed in the G7, despite the very large imbalances.
The ICT revolution opened a way
for G7 firms to arbitrage the big differences in knowhow -to-
labour ratios that were responsible for
wage differences.
Now digital technology is allowing people and companies to
arbitrage large relative price differences
in wages. This will be an enormous export opportunity for
developing nations – especially ones, like
India and China, that have fast internet in urban areas and
millions of workers with recognisable
skills that companies and people in rich countries would like to
buy. Tele-migration will also be an
export opportunity for many in the rich nations since
competition in services is not always won by
the cheapest. Quality and reliability still matter.
Will the Great Convergence continue? Will the G7’s share of
world GDP continue to decline, and
India’s and China’s continue to rise? The answer to both
questions is yes. The nature of future
globalisation will great accelerate the process.
References
Baldwin, R (2016), The Great Convergence: Information
Technology and the New Globalization,
21. Belknap Press of Harvard University Press.
Baldwin, R (2019), The Globotics Upheaval: Globalisation,
Robotics and the Future of Work, Oxford
University Press.
Baldwin, R, P Martin and G Ottaviano (2001), "Global Income
Divergence, Trade, and
Industrialization: The Geography of Growth Take-Offs", Journal
of Economic Growth 6(1): 5-37.
Braudel, F (1984), Civilisation and Capitalism, 15th-18th
Century: The Perspective of the World. vol
3, Harper and Row.
Chaudhuri, K N (1966), "India’s Foreign Trade and the
Cessation of the East India Company’s
Trading Activities, 1828-40", Economic History Review 19(2):
345-63.
Kuznets, S (1965), Economic Growth and Structure, Selected
Essays, Heinemann.
Endnotes
[1] We could probably describe pre-modern globalisation – the
opening of the Silk Road in 200
BCE, the golden age of Islam (8th to 14th centuries), or the
European age of discovery (15th to 17th
centuries) – as beta globalisation, or maybe Globalisation 0.0. It
was very different, because it had a
negligible impact on the living standards of the masses.
[2] Braudel (1984) and Chaudhuri (1966) show that, during the
18th century, the Indian cotton textile
industry was the global leader in terms of quality, production
22. and exports. 18th-century India and
13/11/2019 Globalisation 1.0 and 2.0 helped the G7.
Globalisation 3.0 helped India and China instead. What will
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globalisation-40-do 7/7
126 A A
China also produced the world’s highest-quality silk and
porcelain. Before the 18th century, these
manufactured goods were exported to Europe in exchange for
silver, as European manufactures
were uncompetitive in the East (Barraclough 1978). Clearly, the
civilisations that invented
gunpowder, paper and aids for oceanic navigation were by no
means primitive societies, waiting for
Europe to industrialise.
Related
Trade globalisation in the last two centuries
Michel Fouquin, Jules Hugot
Early globalisation and the law of one price
Mario Crucini, Gregor Smith
Challenges in the coming phase of globalisation: A sense of
déjà vu
Otaviano Canuto, José Manuel Salazar
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globalisation-sense-d-j-vu
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Chapter 25: Theory Testing and Theory Evaluation*
Jacqueline Fawcett
INTRODUCTION
The focus of this chapter is the science and art of theory
development and evaluation. The
chapter begins with a definition of theory and a description of
the process of theory
development and continues with a discussion of the critical
thinking that is required for the
evaluation of theories. The emphasis in this chapter is theory
development and evaluation
activities that are required for advanced practice nursing. The
content of this chapter is
especially relevant to two of the American Association of
Colleges of Nursing’s Essentials of
DoctoralColleges of Nursing’s Essentials of Doctoral Education
for Advanced Nursing
Practice: Essential I, Scientific Underpinnings for Practice , and
Essential III, Clinical
Scholarship and Analytical Methods for Evidence-Based
Practice.
THE SCIENCE AND ART OF THEORY DEVELOPMENT
24. The term theory is used to refer to diverse works, ranging from
very abstract and general
conceptual models to less abstract and general grand theories, to
relatively concrete and
specific middle-range theories, to very concrete and specific
narrow-range situation-specific
theories. Despite the lack of consensus about the meaning of
theory, King and Fawcett
(1997) found considerable agreement about the existence of
levels of abstraction for
theoretical work. In this chapter, the term refers to middle-range
theories and
situation-specific theories. The term conceptual model refers to
the very abstract and
general work from which theories are derived.
Theories
A theory is made up of concepts and propositions about a
phenomenon. A concept is a word
or phrase that captures the essence of something, such as
adjustment or distress. It may
have one or more dimensions. An example of a single-
dimensional concept is resiliency. An
example of aa multidimensional concept is perceived stigma,
the six dimensions of which
are fear of contagion, healthcare neglect, negative self-
perception, social isolation, verbal
abuse, and workplace stigma (Mwangi, 2013).
A proposition is a statement about one or more concepts. A
proposition about one concept is
a definition or a description of the concept; resiliency, for
example, is defined as “The
capacity to return to a restorative level of functioning using
compensatory/coping
mechanisms; the ability to bounce back quickly after an insult”
25. (American Association of
Critical Care Nurses, 2014, p. 1). A proposition about two or
more concepts states an
association between the concepts, including the relation
between the concepts or the effect
of one concept on one or more other concepts. An example of a
statement of the relation
between two concepts is, “Socio-demographic characteristics
are related to perceived
stigma” (Mwangi, 2013). An example of a statement about the
effect of a concept on other
concepts, which typically involves the effect of some
intervention on some outcomes, is,
“Information about walking exercise has a positive effect on
symptoms, fatigue, emotional
distress, and physical function” (Mock et al., 2007)Nursing
theories usually focus on
experiences of health conditions and health-related events.
Examples of health conditions
include such medical diagnoses as congestive heart failure
cancer, and diabetes. Examples
of health-related events include pregnancy, childbirth, the
postpartum period, and aging. The
health condition or health event of interest provides a context
for a theory. For example, the
concepts of exercise intervention, fatigue, and emotional
distress and the propositions about
those concepts could make up a theory about the effects of an
exercise intervention on
fatigue and emotional distress experienced by men with colon
cancer. Alternatively, the
concepts of fatigue and emotional distress might make up a
theory about the relation
26. between fatigue and emotional distress during the postpartum
period.
Types of Theories
Three types of theories are descriptive, explanatory, and
predictive. Descriptive theories
simply describe some phenomenon. They typically comprise one
concept and one
proposition that is a definition or description of the concept. An
example of a descriptive
theory is the theory of fatigue. In this ccase, the theory concept
is fatigue. The theory
proposition asserts that fatigue is a multidimensional concept
defined as behavioral, sensory,
and affective experiences (Piper et al., 1998).
Explanatory theories specify how concepts are related to each
other and, therefore, provide
explanations for phenomena. They consist of two or more
concepts, the propositions that are
definitions or descriptions of each concept, and the propositions
that specify the relation(s)
between the concepts. An example is the theory of chronic pain
(Tsai, Tak, Moore, &
Palencia, 2003). The theory concepts are chronic pain, physical
disability, social support,
age, gender, perceived daily stress, and depression. The
propositions that are definitions of
each concept are as follows:
Chronic pain is defined as the frequency and severity of pain
(Tsai et al., 2003).Physical
disability is defined as the frequency and extent of mobility,
walking, bending, and hand and
finger function (Tsai et al., 2003).
Social support is defined as “perceived levels of social support .
27. . . [including] (a) provision of
attachment/intimacy, (b) social integration, (c) opportunity for
nurturant behavior, (d)
reassurance of worth, and (e) availability of informational,
emotional, and material help” (Tsai
et al., 2003, p. 162).
Age is defined as age in years (Tsai et al., 2003).
Gender is defined as male or female (Tsai et al., 2003).
Perceived daily stress is defined as “the degree to which older
persons experience daily
stress from irritating, frustrating, or repeated occurrences in
their lives” (Tsai et al., 2003, p.
162).
Depression is defined as the frequency of depressed mood
symptoms within the past week
(Tsai et al., 2003).
The following theory proposition specifies the relations between
the concepts: Chronic pain,
physical disability, social support, age, and gender are related
to perceived daily stress,
which is related to depression.
Predictive theories specify how a concept affects one or more
other concepts. They are
made up of two or more concepts, the propositions that are
definitions or descriptions of
each concept, and the propositions that specify the effect(s) of
one concept on one or more
other concepts. An example is the theory of the effects of
simulated conflict management
training (Pines et al., 2014). The theory concepts aresimulated
conflict management training
exercises, stress resiliency, psychological empowerment, and
28. conflict management style.
The propositions that are definitions of each concept are as
follows:
Simulated conflict management training exercises are defined as
“didactic and simulated
training using a variety of scenarios for learning resiliency
skills, enhancing perceptions of
empowerment and increasing knowledge of personal styles of
conflict management” (Pines
et al., 2014, p. 87).
Stressr resiliency is defined as “the ability of an individual to
adjust to adversity, maintain
equilibrium, retain some control over the environment, and
move in a positive direction”
(Pines et al., 2014, p. 86).
Psychological empowerment is defined as “the individual’s
perceived sense of meaning and
purpose, competence, self-determination, and impact on the
work role” (Pines et al., 2014, p.
86).
Conflict management style is defined as “[depending] on the
situation and the parties
involved and [involving] a choice of methods to manage a
situation. . . . [The five]
conflictmanagement styles [are] accommodating, avoiding,
collaborating, competing, and
compromising. Accommodating is unassertive and cooperative
and allows the other person
to dominate. Avoiding is both uncooperative and unassertive
and is characterized by the
individual’s avoidance of taking any action. Collaborating is
assertive and cooperative and
represents an attempt to find a solution to the conflict.
Competing is assertive and
uncooperative. Finally, compromising is intermediate in both
29. assertiveness and
cooperativeness and partially satisfies the needs of each party.
With competing, [an
individual] assertively pursues personal concerns at the expense
of the concerns of another.
In compromising, the object is to find a mutually agreeable
solution that partially satisfies
both parties. Resiliency and empowerment reflect application of
the appropriate
strategy/style in response to the situation” (Thomas & Kilmann,
as cited in Pines et al., 2014,
p. 86).
The following theory proposition specifies effects: Simulated
conflict management training
exercises have a positive effect on stress resiliency,
psychological empowerment, and
conflictmanagement style (Pines et al., 2014).
Empirical Indicators and Other Empirical Methods
Most theory concepts and propositions cannot be directly
observed or measured. Instead,
each concept must be connected to an empirical indicator, which
serves as a real-world
proxy—or substitute—for a concept. Empirical indicators that
are particularly useful for
advanced practice nurses are assessment tools and intervention
protocols. Assessment
tools include various types of questionnaires, such as checklists
and rating scales, which
contain one or more items. For example, postpartum mood
disorder is assessed by the
21-item Neuman Postpartum Mood Questionnaire (Fashinpaur,
2002), or as a one-item
rating scale that asks the woman to indicate, on a scale of 0 to
10, the extent to which she
feels depressed. One-item assessment tools are particularly
30. useful in advanced practice
nursing because they do not impose a burden on patients, which
may occur when a tool with
many items is used. One-item assessment tools also are useful
because they do not impose
an undue burden on the advanced practice nurse, which may
occur with use of a multi-item
tool that requires calculation of a score.
Conceptual Models
Theories are developed through a melding of science and art in
the form of creative
conversion of ideas stemming from provocative facts (Levine,
1966; 1991) observed in
practice and in the literature. These facts are noticed because
they fit with the observer’s
frame of reference about nursing, which also is called a
conceptual model of nursing. Among
the best-known conceptual models are Levine’s Conservation
Model, Neuman’s Systems
Model, Orem’s Self-Care Framework, and Roy’s Adaptation
Model. Overviews of these and
other conceptual models of nursing are found in Appendix N-1
of Taber’s Cyclopedic Medical
Dictionary (Fawcett, 2013). A comprehensive analysis and
evaluation of each of these and
other conceptual models of nursing is given in Fawcett and
DeSanto-Madeya’s (2013) book
Contemporary Nursing Knowledge: Analysis and Evaluation of
Nursing Models and
Theories.
Each conceptual model of nursing is made up of concepts and
31. propositions that are more
abstract and general than those of a theory. Examples of
concepts from Roy’s adaptation
model include stimuli andgeneral than those of a theory.
Examples of concepts from Roy’s
adaptation model include stimuli and adaptation. For example,
the following proposition
defines a conceptual model concept: Adaptation is defined as
“the process and outcome
whereby thinking and feeling people, as individuals and in
groups, use conscious awareness
and choice to create human and environment integration” (Roy,
2009, p. 26). An example of
a proposition that links the concepts of stimuli and adaptation is
as follows: Stimuli are
related to the physiological, self-concept, role function, and
interdependence modes of
adaptation (Fawcett, 2003).
Conceptual–Theoretical–Empirical Structures for Theory
Development
Theory development involves specification of a conceptual –
theoretical–empirical (C-T-E)
structure made up of three components:
A conceptual model
A theory
Empirical indicators and other empirical methodsTheory
development is the product of
research, which is a systematic process of inquiry (Fawcett &
Garity, 2009). Thus, every
study is explicitly or implicitly designed to develop a theory by
means of generation of new
theory or testing of an existing theory. Theory-generating
research is descriptive research,
the findings of which are new descriptive theories. Theory
32. testing research can be
descriptive, correlational, or experimental research. The
findings of descriptive theory-testing
research determine the empirical adequacy of an existing
descriptive theory. The findings of
correlational theory-testing research determine the empirical
adequacy of an existing
explanatory theory. The findings of experimental theory-testing
research determine the
empirical adequacy of an existing predictive theory. Although
the conduct of research
typically is thought of as a rigorous scientific process, it is also
a creative endeavor involving
an appreciation of the beauty of logical reasoning and the “aha”
moments that come when
developing elegant C-T-E structures, designing studies, and
interpreting data.
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33. 28 A A
Related
Can FDI help developing countries upgrade
export quality?
Torfinn Harding, Beata Javorcik
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Trade and investment in the global economy
James Anderson, Mario Larch, Yoto Yotov 30 July 2019
Foreign direct investment has traditionally been viewed as a key
driver of prosperity, and modern FDI has also
become a vehicle for transferring intangible assets. This column
uses a counterfactual experiment based on a
hypothetical world with no outward or inward FDI to and from
low-income and lower-middle-income countries to
examine the effects of FDI on trade, domestic investment, and
welfare. World welfare falls by about 6% and all
countries lose out, with some poorer countries losing over 50%.
World trade falls by 7%, with the losses again
unevenly distributed.
Foreign direct investment (FDI) is traditionally viewed
as a key driver of prosperity in policy circles.
According to the OECD (2002), “FDI is an integral part
of an open and effective international economic
system and a major catalyst to development. [...] With
most FDI flows originating from OECD countries,
developed countries can contribute to advancing this
34. agenda. They can facilitate developing countries'
access to international markets and technology.” In
addition, modern FDI has become a vehicle for
transferring intangible assets. According to the World Bank
(2015), “[t]oday, FDI is not only about
capital, but also – and more important – about technology and
know-how, [...] International patterns
of production are leading to new forms of cross-border
investment, in which foreign investors share
their intangible assets such as know-how or brands in
conjunction with local capital or tangible
assets of domestic investors.” Academics share the hopes of
policymakers for a positive economic
impact of FDI, which plays central role in recent integration
efforts. Slaughter (2013: 3) argues that
“[i]f successfully negotiated, [TTIP and TPP] would deepen and
strengthen ties with many of the
most significant U.S. economic partners. A large majority of
inward FDI in the United States already
originates from TTIP and TPP countries, making these deals
particularly important in the broader
effort to recruit global business investment.”
Policymakers' enthusiasm is based on the obvious partial
equilibrium evidence of FDI impacts on
sectoral output, employment, and capital returns. In contrast,
there is relatively little structural
evidence for the economy-wide importance of FDI as a vehicle
for knowledge transfer and the
effects on trade, domestic investment, and welfare. The lack of
a unified multi-country framework of
the global economy impact of FDI is, at least in part, because
the relationship between FDI and
various economic outcomes is intrinsically dynamic. However,
as noted by Desmet and Rossi-
Hansberg (2014), introducing dynamics to static multi-country
35. trade models is hard, typically making
“spatial dynamic models intractable, both analytically and
numerically.” (p. 1212).
To gain traction with spatial dynamics in the case of FDI, in a
recent paper (Anderson et al. 2019b)
we build a framework that characterises the impact of FDI
through interactions with trade and
domestic investment in physical capital. On the trade side, the
model is a member of the wide
structural gravity class of new quantitative general equilibrium
trade models described in detail by
Arkolakis et al. (2012). Domestic investment in physical capital
is modelled following Anderson et al.
(2019a). The main novelty is the introduction of FDI on the
supply side, where, in the spirit of
McGrattan and Prescott (2009) and Markusen (2002),
production uses FDI in the form of non-rival
(or joint) technology capital along with labour and physical
capital stocks. Thus, countries can use
their technology capital in potentially all countries while using
at home the technology capital from
potentially all countries.
FDI liberalisation increases FDI, with general equilibrium
implications for trade, income, and
expenditure. An increase in bilateral FDI directly leads to
higher income and to higher expenditure
in the liberalising countries. Since higher expenditure leads to
more accumulation of technology
Banking, FinTech, Big Tech:
Emerging challenges for
financial policymakers
Challenges in the digital age
36. The parliamentary Brexit
endgame
James Anderson
William B. Neenan Millenium
Professor of Economics, Boston
College
Mario Larch
Professor for Empirical Economics
(Chair) at the University of
Bayreuth
Yoto Yotov
Professor, LeBow College of
Business, Drexel University
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39. producer prices in any other country in the
model.
Motivated by one of the opening quotes, which depicts FDI as a
key driver of development, we
quantify the importance of the novel FDI channel with a
counterfactual experiment that describes a
hypothetical world without outward and inward FDI from and to
low- and lower-middle-income
countries. The calibration is based on a balanced data set for 89
countries, which account for more
than 96% of world GDP and for more than 94% of FDI in 2011.
Of the 89 countries, 21 are classified
as low- or lower-middle-income countries according to The
World Bank's Country and Lending
Groups classification.
The impact from the elimination of FDI in the low- and lower-
middle-income countries on trade and
welfare in the world is depicted in Figures 1 and 2. Figure 1
reports the effects on trade, measured
by the percentage change in total exports. Three main findings
stand out. First, FDI is indeed an
important driver of trade. On average, the gains from FDI in the
poorer countries in the world
amount to 7% of world's trade in 2011, the year of our
counterfactual analysis. Second, all countries
lose from the counterfactual elimination of FDI in the poorer
countries. Third, the impact is
heterogeneous. Poorer countries lose the most, but the impact
varies widely even within this group
– some lose over 50% and some very little. The impact on
countries in the rest of the world is
significant as well. Some countries lose a lot (e.g. Luxembourg,
Singapore, and Ireland) while
others (such as India, Ecuador, and Dominican Republic) lose
40. less. Pakistan and Sri Lanka actually
see an increase in their total exports due to the elimination of
FDI.
Figure 1 Percentage change in total exports from eliminating
outward and inward FDI to and from
low- and lower-middle-income countries
Figure 2 reports impact of the elimination of FDI in the poorer
countries on welfare, measured by
properly discounted consumption. Overall, in terms of direction,
the welfare indexes in Figure 2 are
consistent with the trade indexes that we present in Figure 1. On
average, the gains from FDI
amount to 6% of world's welfare in 2011. Further, all countries
in the world have benefited from FDI,
but the effects are very heterogeneous. The directly affected
low- and lower-middle-income
countries see welfare changes up to over 50% (Morocco and
Nigeria), while some of the remaining
68 countries, such as Ecuador, Turkmenistan, and Dominican
Republic are hardly affected. A higher
country-specific production share of FDI leads to larger welfare
losses, all else equal. Intuitively, a
larger importance of FDI in production leads to larger welfare
losses when restricting FDI. A larger
net log FDI position leads to larger welfare losses. Intuitively,
if a country has more inward than
outward FDI, restricting FDI will lead to larger welfare losses,
as FDI is complementary to other
production factors and therefore overall income increases more
than FDI payments.
The results suggest that FDI has acted to reduce cross-country
income inequality. In particular, the
results suggest that FDI has led to significant increases in the
41. welfare of some of the poorer
economies in the EU. Given the renewed interest in the
determinants of inequality (European
Commission 2010), our results have potentially important
implications for regional policy.
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Homeownership of
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selection effects related to
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Hypothesis in Europe
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Kingdom
Butt, Churm, McMahon,
Morotz, Schanz
44. Figure 2 Welfare effects of eliminating outward and inward FDI
to and from low- and lower-middle-
income countries (%)
Overall, the analysis reveals that FDI is indeed an important
component of the modern world
economic system. The results suggest positive payoffs to
policies designed to facilitate FDI,
particularly those concerning protection of intellectual property.
In addition, our structural approach
opens new opportunities for further empirical and policy
research. For example, the model delivers
a structural FDI gravity system that resembles the traditional
gravity system of the trade literature
and lends itself to estimation with the most recent econometric
techniques from the gravity
literature. Another structural implication of the model is on the
relationship between FDI and
income/growth, which can be tested in the spirit of Frankel and
Romer (1999). Yet another
structurally motivated relationship that can be tested is the one
between FDI and domestic
investment.
References
Anderson, J E, M Larch, and Y V Yotov (2019a), “Growth and
Trade with Frictions: A Structural
Estimation Framework”, Economic Journal, forthcoming.
Anderson, J E, M Larch, and Y V Yotov (2019b), “Trade and
Investment in the Global Economy: A
Multi-country Dynamic Analysis”, working paper.
Arkolakis, C, A Costinot, and A Rodríguez-Clare (2012), “New
45. Trade Models, Same Old Gains?,”
American Economic Review 102(1): 94–130.
Desmet, K and E Rossi-Hansberg (2014), “Spatial
Development”, American Economic Review
104(4): 1211–1243.
European Commission (2010), Investing in Europe's Future.
Frankel, J A and D H Romer (1999), “Does Trade Cause
Growth?”, American Economic Review
89(3): 379–399.
Markusen, J R and K E Maskus (2002), “Discriminating Among
Alternative Theories of the
Multinational Enterprise,” Review of International Economics
10(4): 694–707.
McGrattan, E R and E C Prescott (2009), “Openness,
Technology Capital, and Development,”
Journal of Economic Theory 144(6): 2454–2476.
OECD (2002), Foreign Direct Investment for Development:
Maximising Benefits, Minimising Costs.
Slaughter, M J (2013), Attracting Foreign Direct Investment
through an Ambitious Trade Agenda,
Organization for International Investment Research Report.
Qiang, C, R Echandi and J Krajcovicova (2015), “Foreign
Direct Investment and Development:
Insights from Literature and Ideas for Research”, World Bank
Private Sector Development Blog, 24
November.
Topics: Global economy Industrial organisation International
46. trade
Tags: FDI, welfare, knowledge transfer, investment
https://www.oecd.org/investment/investmentfordevelopment/19
59815.pdf
http://blogs.worldbank.org/psd/foreign-direct-investment-and-
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Roger Smeets, Albert de Vaal
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9 A A
The contribution of Chinese FDI to Africa’s pre-crisis
growth surge
John Whalley, Aaron Weisbrod 21 December 2011
In the three years before the global crisis, the average GDP
growth in sub-Saharan Africa was around 6%. This
period also saw significant Chinese foreign direct investment
flowing into the continent. This column uses
growth-accounting methods to assess what portion of this
growth can be attributed to Chinese FDI. Although
for some countries and years the effects were negligible, some
48. countries saw total GDP growth from 2002 to
2009 increase by 0.5 percentage points due to Chinese FDI
alone.
In the three years before the 2008 financial crisis, GDP growth
in sub-Saharan Africa (averaged
over individual economies) was around 6%, 2 percentage points
above the mean growth in the
preceding ten years. This period also coincided with significant
Chinese foreign direct investment
(FDI) flows into these countries, accounting for as much as 10%
of total inward FDI for some
countries. In our research (Weisbrod and Whalley 2011) we use
growth-accounting methods to
assess what portion of this elevated growth can be attributed to
Chinese inward FDI.
Chinese FDI flows to Africa
Chinese FDI over this period was uneven in both country and
sectoral coverage. It was heavily
concentrated in a relatively small number of countries and in
natural resources. The majority of this
FDI was new investment, with the notable exception of the
purchase of a significant position in a
major South African bank in 2008. Given the large number of
African countries, we focus on the
largest economies and the largest recipients of Chinese inward
FDI. We consider 13 economies
(Angola, Botswana, the Democratic Republic of the Congo
(DRC), Ethiopia, Ghana, Kenya,
Madagascar, Niger, Nigeria, South Africa, Sudan, Tanzania, and
Zambia) accounting for 78% of
sub-Saharan African GDP, and 92% of Chinese FDI flows
between 2003 and 2009.
49. Growth accounting and the contribution of Chinese FDI to
African
growth
We follow Solow (1957), Dennison (1962), and others and use
data for individual economies
between 1990 and 2009 to first calculate Solow residuals. We
use capital stock, workforce, and
factor-share data by country. Capital stock data is unavailable
directly, so we use perpetual-
inventory methods to construct the data. Factor shares come
from the UN National Accounts data
or the World Bank World Development Indicators, depending on
the calculation method (this is
further addressed in our paper).
We use data on Chinese FDI inflows by country to decompose
capital stock estimates by country
for the years 2003-91 into a portion due to Chinese inflows, and
a remaining non-Chinese FDI
portion. Removing Chinese FDI-driven capital stock data in the
growth accounting enables us to
assess what growth would have been without Chinese FDI.
We run counterfactual growth-accounting experiments for 13
sub-Saharan African countries, both
for the three years 2005-7 and for the longer period 2003-9. Our
estimates of Chinese FDI’s
contribution to the GDP growth vary by nation and by year.
There are years where GDP growth was
elevated by one half of a percentage point (most notably Zambia
from 2006-8 with 0.44-0.67% per
annum, Niger in 2007 at 0.38%, and the DRC in 2009 at 0.65%).
Although for some countries and
years, the effects were smaller or even negligible, some
countries saw total GDP growth over the
50. total period (i.e. the growth in GDP from 2002-9) increase by
0.5 percentage points or more due to
inward Chinese FDI alone. The contribution of Chinese FDI to
sub-Saharan African growth also
expanded from having significant growth effects in a relatively
small group of core countries
(Nigeria, Niger, Sudan, Zambia and, to a lesser extent, the
DRC) in the years preceding the world
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54. are largely expensed, which tends
to understate the investment estimates used to construct capital
stock data in some key countries.
Another is that factor-share data in African national accounts
are typically based on wages paid,
and so returns to smallholders fully show as capital in use. This
use of share data biases the
contribution of investment to growth rates upward. Finally,
ideally a clear separation is needed
between greenfield Chinese investment and purchase of exi sting
assets when using Chinese FDI
data for our purposes, and we make some modifications to FDI
data for this. Despite these caveats,
our results are suggestive of a significant, even if in some cases
small, contribution of Chinese FDI
to elevated African growth, a feature which is likely even more
pronounced post-crisis since
Chinese FDI into Africa has increased further.
References
Solow, Robert M. (1957) “Technical Change and the Aggregate
Production Function.” The Review
for Economics and Statistics 39, No.3, 312-320.
Denison, Edward (1962). The Sources of Economic Growth in
the United States and the
Alternatives Before Us. New York, NY: Committee for
Economic Development.
Weisbrod, Aaron & John Whalley (2011). "The Contribution of
Chinese FDI to Africa’s Pre Crisis
Growth Surge," NBER Working Paper 17544.
1 Although data for Chinese inward outward FDI is available
for 2010, country-level data for our
recipient countries only go up to 2009 so it is currently not
possible for our experiments to include
55. 2010.
Topics: Development
Tags: growth, China, Africa, FDI
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The knock-on consequences of the US-China
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Yuqing Xing
How the iPhone widens the US trade deficit with
58. China: The case of the iPhone X
Yuqing Xing 11 November 2019
In order to pursue ‘fair trade’, the Trump administration has
imposed a punitive 25% tariff on $250 billion’s
worth of Chinese goods. However, conventional trade statistics
greatly exaggerate the US trade deficit with
China. This column uses the iPhone as an example to
demonstrate how the trade deficit is inflated and why
value-added should be used to assess the bilateral trade balance.
If multinational enterprises, including Apple,
shift part of their value chains out of China, China may no
longer play a central role in global value chains
targeting the US market. Depreciation of the yuan will be
insufficient to counter the effect.
Editor’s note: This is an update of a column first
published in April 2011.
In 2018, the US trade deficit with China in goods
surged to $420 billion. The huge trade deficit triggered
the on-going US-China trade war. In order to pursue
so-called fair trade, the Trump administration has
imposed a punitive 25% tariff on $250 billion’s worth of
Chinese goods. Since the start of the trade war, the
Chinese yuan has been depreciating against the US
dollar. Alleging that the Chinese government used depreciation
as a trade-war weapon, the Trump
administration has designated China a ‘currency manipulator’.
There has been a consensus among economists that conventional
trade statistics greatly
exaggerate the US trade deficit with China (Johnson and
Noguera 2012, OECD and WTO 2013,
Koopman, Wang and Wei 2014). Xing and Detert (2010) use the
iPhone 3G as a case and explain
59. how the US trade deficit with China was inflated and why
value-added should be used to assess the
bilateral trade balance.
Since the 2007 release of the first-generation iPhone, China has
been the exclusive base for iPhone
assembly. With the launch of the iPhone X, the iPhone has
evolved into a luxury high-tech gadget.
In this column, I use the iPhone X as a case to discuss three
questions. (1) Have the Chinese firms
involved in the iPhone production moved up in the value-chain
ladder? (2) Does the iPhone remain
a significant source of the trade imbalance between the US and
China? (3) Could the yuan
depreciation hedge the risk of Trump’s tariffs?
Moving up the iPhone value chain
For an understanding of Chinese firms’ upward progress in the
iPhone value chain, I examine the
iPhone teardown data to assess Chinese-firm involvement in the
production of the iPhone X. The
teardown data identifies 10 domestic Chinese companies
involved in iPhone X production. Their
tasks go beyond simple assembly to include roles in relatively
sophisticated segments. Table 1 lists
the tasks performed by Chinese firms for the iPhone X in
comparison with that for the iPhone 3G.
Table 1 Tasks performed by Chinese firms in iPhone 3G and
iPhone X production
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64. the iPhone value-chain ladder.
The bill of materials of the iPhone X is estimated at $409.25, of
which the Chinese firms jointly
contribute $104, about 25.4%. Chinese value-added in the
iPhone X is dramatically higher than the
$6.5 captured in the iPhone 3G. The retail price of the iPhone X
is $1,000; the Chinese firms
together gain 10.4% of the total value added of every iPhone X
sold on the global market.
Figure 1 compares the Chinese value-added of the iPhone X
with that of the iPhone 3G. It clearly
demonstrates that the Chinese value-added embedded in iPhones
increased substantially from the
first generation to the iPhone X.
Figure 1 Chinese value-added embedded in the iPhone 3G and
iPhone X
Source: Xing (2019).
The iPhone remains a significant source of the Sino-US trade
imbalance
To date, trade statistics are still compiled using the gross value
of exports, implicitly assuming that
all gross value is generated by the exporting nation. According
to that principle, whenever China
ships one iPhone X to the US, the current system of trade
statistics calculates it as a $409.25 export
to the US.
The teardown data reveals that the total value of the parts
imported from the US for assembly of the
iPhone X is $76.5. Hence, importing one iPhone X from China
65. generates a $332.75 ($409.25–
$76.5) trade deficit for the US. That is the conventional
approach to calculating bilateral trade
balances.
However, Korea, Japan, and other countries are also involved in
the production of the iPhone X and
supply more than 45% of the parts and components. In other
words, the $332.75 consists of not
only value-added originating in China but also that contributed
by Korea, Japan, and other non-US
countries. It should be considered as a trade deficit between the
US and all other countries involved
in manufacturing the iPhone X, not just China.
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In terms of value-added, the US deficit with China for the
import of one iPhone X is only $104, less
than one-third of the figure based on gross value (Figure 2). For
every iPhone X imported by the
US, current trade statistics mistakenly add $228.75 to its trade
deficit with China. In 2017, American
consumers bought 42.2 million iPhones units (Finder 2019).
Using that figure as a reference, the
67. iPhone trade alone exaggerated US trade deficit with China in
2018 by $9.65 billion, about 2.3% of
its total deficit with China.
Figure 2 US trade deficit with China for one imported iPhone X
($)
Source: Xing (2019).
The iPhone case unambiguously demonstrates that conventional
trade statistics significantly inflate
China’s trade imbalance with the US. The iPhone, a product of
an iconic American company Apple,
remains a significant source of the Sino-US trade imbalance.
Reducing the US trade deficit with
China requires not only fair trade but, more importantly,
unbiased trade statistics consistent with
value chain trade.
Hedging Trump’s tariffs by yuan depreciation: Mission
impossible
Xing and Detert (2010) argue that, because of the foreign value-
added embedded in the iPhone 3G,
appreciation of the yuan would have little impact on iPhone
exports to the US. The same logic
applies to the depreciation of the yuan. The large portion of the
foreign value-added embedded in
the iPhone X greatly weakens the effectiveness of yuan
depreciation in counterbalancing Trump’s
tariffs.
When the Chinese yuan depreciates against the US dollar, only
the $104 Chinese value-added of
the iPhone X will be affected. The rest of the iPhone X’s
production cost—$305.25, the sum of all
68. parts and components imported for assembling the iPhone X—
will remain constant and not be
affected whatsoever.
However, if President Trump decides to levy a 25% tariff on the
iPhone X, the tax base will be
$409.25, i.e. the sum of both Chinese and foreign value-added.
To offset the tariff burden due to the
foreign value-added, the yuan should depreciate much more
than 25%.
The level of yuan depreciation needed to completely offset the
negative impact of a tariff can be
calculated for any given foreign value-added. Figure 3 reports
the computation results for two tariffs:
10% and 25%, where the horizontal axis denotes the percentage
of foreign value-added embedded
in Chinese exports.
Figure 3 Yuan depreciation required to offset US tariff effects
(%)
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22 A A
Source: Xing (2019).
With a 10% tariff, an 11.2% depreciation of the yuan can
counterbalance the tariff if foreign value
69. added is 10%; for exports with 75% foreign value-added, the
required depreciation surges to
57.1%.
If the tariff rises to 25%, the required depreciation increases
substantially in all scenarios. The yuan
would have to depreciate 28.6% in order to cancel the tariff’s
negative impact if foreign value added
is 10%, and 100% depreciation is required for Chinese exports
with 60% of foreign value-added.
On average, foreign value-added accounts for 33.9% of Chinese
exports to the US. This implies
that a 43.4% depreciation of the yuan is required to completely
cancel the negative impact of a 25%
punitive tariff on all Chinese exports to the US, while an
unthinkable 400% depreciation of the yuan
is necessary to eliminate the negative impact of the same tariff
levied on the iPhone X. The
depreciation rates required to compensate for a 25% tariff are
generally too high to be realised. It is
‘mission impossible’ to use yuan depreciation to hedge the risk
of Trump’s tariffs.
Since conventional approaches cannot eliminate tariff burdens,
for multinational enterprises using
China to assemble products catering to the US market, one
feasible option is to shift part of their
value chains out of China. Apple has asked its major suppliers
to evaluate the cost implications of
shifting 15-30% of their production capacity from China to
Southeast Asia (Li and Cheng 2019).
The trade war is reshaping China-centred value chains. The
redeployment of the China-centred
global value chains will permanently damage China’s export
70. capacity and China will no longer play
a central role in the global value chains targeting the US
market.
Reference
Finder (2019), “iPhone sales statistics: Just how popular is
Apple’s smartphone in the US?”,
Finder.com.
Johnson, R C, and G Noguera (2012), “Accounting for
intermediates: Production sharing and trade
in value added”, Journal of International Economics 86: 224–
236.
Koopman, R, Z Wang and S Wei (2014), “Tracing value-added
and double counting in gross
exports”, American Economic Review 104(2): 459–94.
Li, K, and T Cheng (2019), “Apple weighs 15%-30% capacity
shift out of China amid trade war”,
Nikkei Asian Review, 19 June.
OECD and WTO (2013), “Trade in value-added: Concepts,
methodologies and challenges”, Joint
OECD-WTO Note.
Xing, Y (2019), “How the iPhone widens the US trade deficit
with China: The case of the iPhone X”,
GRIPS Discussion Papers 19-21.
Xing, Y, and N Detert (2010), “How the iPhone widens the US
trade deficit with PRC”, ADB Institute
Working Paper 257.
Topics: Exchange rates International trade
71. Tags: value-added, GVCs, global value chain, China, US, trade
war, tariffs, currency depreciation, exports,
US-China trade war
Related
The knock-on consequences of the US-China trade tariffs on
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Welfare effects of Trump's China tariffs
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Yuqing Xing
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72. Global Economic and Business Operations
Assessment Document 2020-21
Module Code:
BIN3022
Module Title:
Global Economics and Business operations
Submission Date:
Module Aim
This module examines business operations in the context of
the global economy. One part investigates the operation of the
global economy, looking particularly at international trade, the
importance of multinational enterprises and foreign investment,
and the growth and development of economics, especially the
emerging economies of the BRIC group, among others. Other
internationally important global economic issues are also
examined, such as globalisation and environmental policy. In
the business operations part of the module, the emphasis is on
the management methods used to aid resource allocation and
decision making in organisations. The nature of the operational
process is examined and techniques are developed and applied
in practical settings.
Module Learning Outcomes
Module learning outcomes detail the specific knowledge and
understanding, cognitive and intellectual skills, practical and
professional skills, and the key transferable skills that you will
develop during this module. The learning outcomes for this
module are detailed below. These learning outcomes will be
assessed when marking your assignment.
73. Personal & Transferable Skills
1. Engage effectively in debate and present arguments in a
professional manner.
2. Select and justify approaches to the analysis of organisational
dynamics and apply them to produce practical improvements.
3. Develop reflective practice skills in the study and analysis of
global business dynamics.
Research, Knowledge & Cognitive Skills
4. Describe and evaluate models of the dynamics of
organisational behaviour.
5. Critically evaluate alternative approaches to the modelling of
global business dynamics.
6. Effectively organise global business dynamics knowledge
using a variety of techniques.
7. Evaluate a range of approaches to the analysis of
organisational dynamics models.
Professional Skills
8. Understand and select from a range of key business dynamics
modelling skills
Module Assessment
The assessment requirements for the module, in addition to the
generic level 6 University Assessment Criteria and correct use
of the required referencing format and style, include the
following module specific criteria:
ICA (50% of the final mark Global Economics Part of the
74. assessment
In-Course Assessment
Word Limit:
2000 words
Submission deadline:
You are required to answer all following questions using
appropriate theories and concepts that were introduced in our
lectures. Use evidence from case study articles where it is
relevant.
Outline the factors in increased globalization. Discuss how
these underling forces are interlinked and reinforce each other.
(40 marks)
Outline and discuss both benefits of and issues arising from
trade protection. You should include the role of FDI in
international trade and use evidence from case studies articles
as examples to support your discussion.
(60 marks)
Important instructions:
Word limit: 2,000.
You should make use of the case study articles as supporting
documents i.e. use the evidence from these articles to support
your answers. You should also draw on the theories, concepts
and frameworks that we covered in ‘global economics’ part of
the module.
All references, quotes, paraphrasing and summaries should be
75. cited clearly in the text (e.g. page numbers, authors, web
address etc.) and sources consulted listed in the bibliography.
Use a consistent referencing system, preferably Harvard.
The mark for this assignment is 50% of the final module mark.
Case Study Materials
Globalisation 1.0 and 2.0 helped the G7. Globalisation 3.0
helped India and China instead. What will Globalisation 4.0 do
The contribution of Chinese FDI to Africa’s growth
The return to protectionism
The materials are attached in a separate file.
In this ICA,
Demonstrate good fundamental academic knowledge of Global
Economics;
Critically analyse data using appropriate techniques;
Draw appropriate conclusions;
Present the assignment in a clear and understandable way, using
the conventions appropriate to a business report with no
spelling or grammatical errors.
Module Assessment Criteria ICA/ECA
Assignments will be marked in accordance with the following
marking criteria:
ICA ECA Assessment Criteria
76. Max
Mark
1st Mark
2nd Mark
Feedback Comments:
Knowledge and understanding of Business Operations and
Global Economics to be demonstrated through a clearly
presented discussion of OPS MGMT and Strategy principles.
15
Knowledge and understanding of Supply Chain in Business
Operations: to be demonstrated through a clearly presented
description of the Supply chain of the product/service
30
Illustration and use of examples: to be demonstrated through
clearly presented and accurate use of worked examples of the
presented company/industry
20
Analysis, interpretation and solution of Business Operations and
Global Economics: to be demonstrated through a clearly
presented and accurate solution based on academic refrences,
industrial reports
30
77. Presentation: your report should be well structured and written,
be free of sentence construction and grammatical errors and
include correctly formatted referencing. Analyses should be
clearly and logically presented.
5
Module Assessment: Submission Guidelines
The reflective report should be submitted electronically using
the ‘Assessment’ link on Blackboard. The deadline for
submission is shown at the top of this document. Feedback will
be provided for the purposes of guidance and to assist your
learning and development. Any reference to marks is entirely
provisional and subject to confirmation following University
procedures. Only University Assessment Boards are able to
issue confirmed, definitive marks.
The pass mark for this assessment is 40%.
Resit: If you do not reach a pass mark, you will have the
opportunity to resit the module assignment by ‘making good’
your original submission using the feedback given by the
marker and moderator.
Word limits and penalties for assignments
If the assignment is within +10% of the stated word limit no
penalty will apply.
78. The word count is to be declared on the front page of your
assignment and the assignment cover sheet. If this word count
is falsified, this will be regarded as academic misconduct.
The word count does not include:
Title and Contents page;
Reference list;
Appropriate tables, figures and illustrations.
Please note, in-text citations [e.g. (Smith, 2011)] and direct
secondary quotations [e.g. “dib-dab nonsense analysis” (Smith,
2011 p.123)] are INCLUDED in the word count.
If the word limit of the full assignment exceeds the +10% limit,
10% of the mark provisionally awarded to the assignment will
be deducted. For example: if the assignment is worth 70 marks
but is above the word limit by more than 10%, a penalty of 7
marks will be imposed, giving a final mark of 63.
Summarising and compressing the information in your
assignment into the word limit is one of the skills that students
are expected to acquire and demonstrate as part of the
assignment process.
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