If you are interested in fiscal impact of net migration, this study “Fiscal effects of immigration to the UK” is worth reading. The Economic Journal,Doi: 10.1111/ecoj.1218 Christian Dustmann and Tommaso Frattini Some highlights EU migrants cost the UK government £408.12 per second in public expenditures, and contribute £463.35 per second in revenue. Of all EU …
Readers Question: Is it better to sell more services/products with less profit, than sell less with high profits? What are the pros and cons to the employer, worker, and customer? i.e. high revenue low profit, vs low revenue high profit? Classical economic theory suggests firms will seek to maximise profits. The benefits of maximising profit …
If a large firm / industry becomes unprofitable and appears in terminal decline, what should the government do? If the firm goes bankrupt, it will lead to the loss of thousands of jobs, and negatively affect the areas where the firm is based. See: Problems of industrial decline. This creates a strong economic and political …
Readers Question – When a war brakes out in the middle east, the price of petrol rises, and the price 0f a used Ford Falcon falls why? When a war breaks out in the middle east, there is likely to be disruption to the supply of oil. 50% of our oil comes from the middle …
Vertical integration occurs when a firm controls different stages of production. For example, in the brewing industry, you have Production – Brewing of beer. Distribution – beer transported to local markets. Retail – Beer sold in pubs and shops. To remember vertical integration – think of going up the supply chain. Horizontal integration, by contrast, …
Ireland has often held up to be a model country. Firstly, in the boom years, Ireland was a model of low taxes and deregulation. It’s rapid economic growth saw praise from both sides of the Atlantic. But, after the crash, Ireland has experienced a deep fall in GDP and the model of growth proved highly …
Readers Question: what are the possible consequences/effects of protectionism with regard to the UK and the rest of the world? Protectionism occurs when countries place restrictions on imports into the economy. This can involve higher tariffs (a type of tax on imports) or quotas and embargoes. Other forms of protectionism can be less obvious, such …
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