Running head: WHOLESALE INDUSTRYWHOLESALE INDUSTRY 2 Wholesale industry Edwaurdo King November 8, 2018 Dr. B. West Strayer University Introduction Wholesale industry is one of the sectors that ensures that goods from the producers reach to the intended consumers either directly or through the retailers. The industry deals in a variety of consumer goods and services (college grad, 2018). The industry is responsible for the transfer of the required products from the manufacturers to the consumers without making any change in the content or outlook of the products. Industry Goods and Services The industry deals with goods such as agricultural products, manufactured goods, and capital goods. The wholesalers use the warehouses as their main offices as they contact their clients to inform them of the available products. The role of the industry is to gather the finished products from different sectors for ease of collection by the retailers from their warehouses. The industry reduces the distance between the producers and consumers (college grad, 2018). Market Structure and Characteristics The capital requirement for the industry is enormous thus limiting the number of firms and individuals who can operate in the industry. There is stiff competition in the industry caused by the desire of individual firms to increase their sales volume (Fischer, 2018). The high cost of initial capital discourages the new entrant into the market, therefore, helping in maintaining a low number of firms in the market. Other factors such as product promotion, discounts, and bonuses are used to attract customers to give a difference between the companies. The characteristic in the market shows that the industry operates in an oligopoly market structure (Fischer, 2018). The wholesale industry lack uniformity of the firms. There are different sizes of the firm in the industry because of the various products they sell. The size of the company is determined the amount of money invested and its level of trade in the market. Other firms are enormous while others are relatively small but operate in the same market (Fischer, 2018). Microeconomic Relationships, Market Outcomes, and/or Trends The industry has witnessed several changes in sales volume and the employment rate. The increase in sales in the wholesale sector is as a result of their fair prices compared to the prices offered by the retail trade industry. The number of employment opportunities has been in the rise for the past four months because of the expansion of the industry and improvement regarding trade (Wholesale Trade: NAICS 42, 2018). The number of job opportunities had increased from 5.8 billion in July 2018 to 6 billion in October 2018. The industry has an increasing earning rate from 3.3% in 2014 to 4.5% in 2017. The industry continues to attract more investor because of its rate of return on the investments. (Wholesale Trade: NAICS 42, 2018). Most of the firm has invested in technology th.

1. Running head: WHOLESALE INDUSTRYWHOLESALE
INDUSTRY
2
Wholesale industry
Edwaurdo King
November 8, 2018
Dr. B. West
Strayer University
Introduction
Wholesale industry is one of the sectors that ensures that goods
from the producers reach to the intended consumers either
directly or through the retailers. The industry deals in a variety
of consumer goods and services (college grad, 2018). The
industry is responsible for the transfer of the required products
from the manufacturers to the consumers without making any
change in the content or outlook of the products.
Industry Goods and Services
The industry deals with goods such as agricultural products,
manufactured goods, and capital goods. The wholesalers use the
warehouses as their main offices as they contact their clients to
inform them of the available products. The role of the industry

2. is to gather the finished products from different sectors for ease
of collection by the retailers from their warehouses. The
industry reduces the distance between the producers and
consumers (college grad, 2018).
Market Structure and Characteristics
The capital requirement for the industry is enormous thus
limiting the number of firms and individuals who can operate in
the industry. There is stiff competition in the industry caused by
the desire of individual firms to increase their sales volume
(Fischer, 2018). The high cost of initial capital discourages the
new entrant into the market, therefore, helping in maintaining a
low number of firms in the market. Other factors such as
product promotion, discounts, and bonuses are used to attract
customers to give a difference between the companies. The
characteristic in the market shows that the industry operates in
an oligopoly market structure (Fischer, 2018).
The wholesale industry lack uniformity of the firms. There are
different sizes of the firm in the industry because of the various
products they sell. The size of the company is determined the
amount of money invested and its level of trade in the market.
Other firms are enormous while others are relatively small but
operate in the same market (Fischer, 2018).
Microeconomic Relationships, Market Outcomes, and/or Trends
The industry has witnessed several changes in sales volume and
the employment rate. The increase in sales in the wholesale
sector is as a result of their fair prices compared to the prices
offered by the retail trade industry. The number of employment
opportunities has been in the rise for the past four months
because of the expansion of the industry and improvement
regarding trade (Wholesale Trade: NAICS 42, 2018). The
number of job opportunities had increased from 5.8 billion in
July 2018 to 6 billion in October 2018. The industry has an
increasing earning rate from 3.3% in 2014 to 4.5% in 2017. The
industry continues to attract more investor because of its rate of
return on the investments. (Wholesale Trade: NAICS 42, 2018).
Most of the firm has invested in technology that allows their

3. customers to shop and pay online to reduce the traveling
expenses. The increased use of technology has reduced the time
spent on acquiring goods from the wholesaler to the client and
payment by the customers to the wholesalers
How Government Intervention May Impact the Industry
The intention of the US government to lower the trade tariff to
1.61 would make industry realize an increased number of
foreign investors because of the favorable conditions (Babones,
2018). The governments get 50% of its revenue from trade;
therefore, the reduction of the trade tariffs aim at generating
more income. The abandoning of the protectionist policy by
countries such as China would help in the expansion of the
industry in Asian states by the foreign investors thus creating
more job opportunities in various countries. The government
can set the number of companies to be registered within the
company thus controlling the level of competition within the
industry (Babones, 2018). The higher the number of registered
companies the higher the level of competition to the benefit of
the customersReferences
Babones, S. (2018). Trump's Tariffs Are About Opening
Markets, Not Closing Them. Retrieved from
https://nationalinterest.org/feature/trumps-tariffs-are-about-
opening-markets-not-closing-them-26331
Fischer, C. (2018). Market Structure. Retrieved from
https://www.westga.edu/~bquest/1997/ecnmkt.html
College grad. (2018). Wholesale Trade Industry: Career,
Outlook and Education Information. Retrieved from
https://collegegrad.com/industries/wholesale-trade
Wholesale Trade: NAICS 42. (2018). Industries at a Glance:
Wholesale Trade: NAICS 42. Retrieved from
https://www.bls.gov/iag/tgs/iag42.htm

4. ECO100 – Principles of Economics
© 2018 Strayer University. All Rights Reserved. This document
contains Strayer University confidential and proprietary
information
and may not be copied, further distributed, or otherwise
disclosed in whole or in part, without the expressed written
permission of
Strayer University.
Page 1 of 4
Assignment 2: Final Report
Due Week 10, worth 200 points
This assignment is aligned to this course outcome:
• Apply macroeconomic concepts to current and personal
economic events and decisions.
In addition to writing about macroeconomic concepts, it's
equally important to be able to convey your
understanding of these concepts by communicating them to
others. In the workplace you might do this by
writing briefs (like you did for Assignment 1), creating

5. presentations, or writing reports for your manager or
team.
This Final Report assignment will be a Word document (2-3
pages) that builds off your previous Economic
Brief and selected industry.
For this assignment, you'll examine at least one of the
macroeconomic indicators or policies below within
the context of the industry you have previously selected.
• GDP growth
• Unemployment rates
• Inflation rates
• Interest rates
• International trade policy and issues related to trade balances,
trade restrictions, etc.
• Government fiscal policy and issues related to taxation,
government spending, and budget
deficits
• FED (central bank) monetary policy and issues related to the
FED’s mission to stabilize the
economy
Macroeconomic Resources for Industry and Economy
These resources are available to help you find the size and

6. growth rate of your industry in the U.S.
economy and/or relative to GDP:
• Real GDP – Click on Section 1, then table 1.1.6, (click on
MODIFY to change the year range and
frequency). Data is from Bureau of Economic Analysis
(bea.gov).
• % change in Real GDP – Click on Section 1, then table 1.1.1,
(click on MODIFY to change the
year range and frequency). Data is from Bureau of Economic
Analysis (bea.gov).
• GDP by Industry – Scroll down and click on “GDP by
Industry”, then Click on “GDP by Industry
(Q) (A)”. Select (Q) for Quarterly Data or (A) for Annual Data
and then click on “Next Step”. This
will provide data for 2008 to 2017. To change the year range,
click on MODIFY and type in
desired start and end years. Data is from Bureau of Economic
Analysis (bea.gov).
• % change in GDP by industry - Scroll down and Click on
“Value Added by Industry”, then Click
on “Percent Change in Chain-Type Quantity Indexes for GDP by
Industry (Q) (A)”. Select (Q) for
Quarterly Data or (A) for Annual Data and then Click on “Next
Step”. This will provide data for
2008 to 2017. To change the year range, click on MODIFY and
type in desired start and end
years. Data is from Bureau of Economic Analysis (bea.gov).

7. https://apps.bea.gov/iTable/iTable.cfm?isuri=1&reqid=19&step
=2&0=survey
https://apps.bea.gov/iTable/iTable.cfm?isuri=1&reqid=19&step
=2&0=survey
https://apps.bea.gov/iTable/iTable.cfm?ReqID=51&step=1
https://apps.bea.gov/iTable/iTable.cfm?ReqID=51&step=1
https://apps.bea.gov/iTable/iTable.cfm?ReqID=51&step=1
ECO100 – Principles of Economics
© 2018 Strayer University. All Rights Reserved. This document
contains Strayer University confidential and proprietary
information
and may not be copied, further distributed, or otherwise
disclosed in whole or in part, without the expressed written
permission of
Strayer University.
Page 2 of 4
These resources are available to help you measure and track
macroeconomic indicators and outcomes
of macroeconomic policies:
• Unemployment rates – Data is from Bureau of Labor
Statistics (bls.gov).
• Inflation rates as measured by the Consumer Price Index
(CPI). Data is from Bureau of Labor

8. Statistics (bls.gov).
• % Change in Real Exports and Imports - Click on Section 4,
then table 4.2.1. (Click on MODIFY
to change the year range and frequency.) Data is from Bureau of
Economic Analysis (bea.gov).
• Government receipts, expenditures, and savings – Click on
Section 3, then table 3.1 for total
government and table for 3.2 for federal government. (Click on
MODIFY to change the year
range and frequency.) Data is from the Bureau of Economic
Analysis (bea.gov).
• FED Funds Interest Rates. Data is from Trading Economics
(tradingeconomics.com).
Preparation
1. To begin this assignment, recall the industry you selected in
Assignment 1.
2. Use the industry GDP resources above to assess the size and
growth rate of this industry.
3. Next, identify a newsworthy macroeconomic indicator or
policy that may impact your selected
industry. Use the macroeconomic resources above to find
patterns and trends.
4. It will also be important to review relevant chapters from The
Little Book of Economics, the
Principles of Economics readings, and your prior discussion

9. board questions and responses.
Instructions
Prepare a Final Report that is approximately two to three (2-3)
pages long in which you:
1. Assess your selected industry’s relative size and growth rate
in the economy.
2. Identify at least one newsworthy macroeconomic indicator or
policy that is important for the
industry to monitor, e.g., GDP, unemployment, inflation rates,
interest rates, trade policy,
government taxation and spending decisions, and/or FED
decisions.
3. Explain why this macroeconomic indicator or policy is
important and how it may impact your
selected industry.
4. Describe a recent trend in the macroeconomic indicator or
policy. Include a graph, chart, or table
that illustrates the observed trend.
5. Conclude with a forecast for the industry based on whether
the trend identified in part 4 is
expected to continue. Provide support for your conclusion.
6. This course requires use of Strayer Writing Standards (SWS).
The format is different compared to
other Strayer University courses. Please take a moment to
review the SWS documentation for
details. (Note: You’ll be prompted to enter your Blackboard
login credentials to view these
standards.)

10. o Your brief should include a cover page.
o Your brief should be two to three (2-3) pages in length (not
including the cover page),
double-spaced, 12-point font.
o Your report should include a minimum of two (2)
references/citations in the text.
https://data.bls.gov/timeseries/LNS14000000
https://data.bls.gov/timeseries/CUUR0000SA0L1E?output_view
=pct_12mths
https://apps.bea.gov/iTable/iTable.cfm?reqid=19&step=2#reqid
=19&step=2&isuri=1&1921=survey
https://apps.bea.gov/iTable/iTable.cfm?reqid=19&step=2#reqid
=19&step=2&isuri=1&1921=survey
https://tradingeconomics.com/united-states/interest-rate
https://blackboard.strayer.edu/bbcswebdav/institution/STANDA
RDIZED/StrayerWritingStandards/Strayer_Writing_Standards.p
df
ECO100 – Principles of Economics
© 2018 Strayer University. All Rights Reserved. This document
contains Strayer University confidential and proprietary
information
and may not be copied, further distributed, or otherwise
disclosed in whole or in part, without the expressed written
permission of
Strayer University.
Page 3 of 4

11. Assignment 2 Rubric
Grading for this assignment will be based on the quality of your
responses in addressing each of the
points below, using the following rubric:
Points: 200 Assignment 2: Final Report
Criteria
Exemplary
90–100% A
Proficient
80–89% B
Fair
70–79% C
Meets Minimum
Expectations
60–69% D
Unacceptable
Below 60% F
1. Assesses the
size and/or
growth rate of
the industry
relative to the
national
economy.

12. Weight: 10%
The student
correctly and
thoroughly
assesses both
the relative size
and relative
growth rate of
the industry in
the national
economy.
The student
correctly
assesses the
size and/or
growth rate of
the industry in
the national
economy.
Excludes some
minor details.
The student
partially
assesses the
size and/or
growth rate of
the industry in
the national
economy.
Excludes major
details.

13. The student
attempted to
assess the size
and/or growth
rate of the
industry in the
national
economy.
The student did
not assess the
size of the
industry or its
growth rate in
the national
economy.
2. Identifies at least
one newsworthy
macroeconomic
indicator or
policy that the
industry should
monitor.
Weight: 20%
The student
correctly
identifies one or
more
macroeconomic
indicators or
policies that the

14. industry should
monitor and
provides strong
supporting
details.
The student
correctly
identifies a
macroeconomic
indicator or
policy that the
industry should
monitor and
provides strong
supporting
details.
The student
correctly
identifies a
macroeconomic
indicator or
policy that the
industry should
monitor but does
not provide
sufficient
supporting
details.
The student
attempted to

15. identify a
macroeconomic
indicator or
policy that the
industry should
monitor. No
sufficient
supporting
details were
provided.
The student did
not identify a
macroeconomic
indicator or
policy that the
industry should
monitor.
3. Explains why the
macroeconomic
indicator or
policy selected in
part 2 is
important and
how it may
impact the
industry.
Weight: 30%
The student
correctly and

16. thoroughly
explains why the
macroeconomic
indicator and/or
policy in part 2 is
important and
how it may
impact the
industry.
The student
correctly
explains why the
macroeconomic
indicator and/or
policy in part 2 is
important and
how it may
impact the
industry.
Excludes minor
details.
The student
partially explains
why the
macroeconomic
indicator and/or
policy in part 2 is
important and
how it may
impact the
industry.
Excludes major
details.

17. The student
attempted to
explain why the
macroeconomic
indicator and/or
policy in part 2 is
important and/or
how it may
impact the
industry.
The student did
not explain why
the macro-
economic
indicator and/or
policy in part 2 is
important or how
it may impact the
industry.
4. Describes a
recent trend in
the macro-
economic
indicator or
policy in part 2.
Includes a graph,
table, or chart
that illustrates
the observed
trend.
Weight: 20%

18. The student
correctly and
thoroughly
describes a
recent trend in
the macro-
economic
indicator and/or
policy in part 2.
Includes a graph,
table, or chart
that illustrates
the observed
trend.
The student
correctly
describes a
recent trend in
the macro-
economic
indicator and/or
policy in part 2.
Includes a graph,
table, or chart
that illustrates
the observed
trend.
The student
partially
describes a
recent trend in
the macro-
economic
indicator and/or

19. policy in part 2.
Includes a graph,
table, or chart
that may or may
not illustrate the
observed trend.
The student
attempted to
describe a recent
trend in the
macroeconomic
indicator and/or
policy in part 2.
No graph, table,
or chart that
illustrates the
trend was
provided.
The student did
not describe a
recent trend in
the macro-
economic
indicator and/or
policy in part 2.
No graph, table,
or chart that
illustrates the
trend was
provided.
ECO100 – Principles of Economics

20. © 2018 Strayer University. All Rights Reserved. This document
contains Strayer University confidential and proprietary
information
and may not be copied, further distributed, or otherwise
disclosed in whole or in part, without the expressed written
permission of
Strayer University.
Page 4 of 4
Criteria
Exemplary
90–100% A
Proficient
80–89% B
Fair
70–79% C
Meets Minimum
Expectations
60–69% D
Unacceptable
Below 60% F
5. Concludes with a
forecast for the
industry based
on whether the
observed trend is

21. expected to
continue.
Provides strong
support for the
forecast.
Weight: 10%
The student
concludes with a
correct and
thorough
forecast for the
industry based
on whether the
observed trend is
expected to
continue.
Provides strong
support for the
forecast.
The student
concludes with a
correct forecast
for the industry
based on
whether the
observed trend is
expected to
continue.

22. Provides
reasonable
support for the
forecast.
The student
concludes with a
partially correct
forecast for the
industry based
on whether the
observed trend is
expected to
continue.
May or may not
have provided
reasonable
support for the
forecast.
The student
concludes with
an attempted
forecast for the
industry which
may or may not
have been
supported.
The student did
not conclude

23. with a forecast
for the industry.
6. Uses (SWS)
Strayer Writing
Standards to
write
professionally
and cite sources.
Meets two-page
minimum.
Meets two
minimum
reference/citation
requirement.
Weight: 10%
Followed all
writing
standards.
Meets page
minimum.
Meets minimum
reference/citation
requirement.
Followed most

24. writing
standards.
Meets page
minimum.
Meets minimum
reference/citation
requirement.
Followed some
writing
standards.
May not meet
page minimum.
May not meet
minimum
reference/citation
requirement.
Followed few
writing
standards.
May not meet
page minimum.

25. May not meet
minimum
reference/citation
requirement.
Followed few to
no writing
standards.
Did not meet
page minimum.
Did not meet
minimum
reference/citation
requirement.