SWOT analysis is a method to analyse the existing position of a firm and how it is likely to perform in the future S- Strengths of firm W- Weakness of firms O – Opportunities T – Threats Example, Waterstones booksellers Strengths Established as premier book retailer in UK Good distribution network Prime retail location in …
Readers Question: Does it (financial crisis) have any possible positive effects for the future? It is an opportunity to repair a broken financial system and put in safeguards to prevent future boom and busts. For example, we could have policies which banks automatically hold more deposits during a boom to provide counter cyclical instruments. Better …
To many people’s surprise, UK house prices have risen quite strongly in the past 12 months. If we look at the experience of Japan, United States, Ireland or Spain, it seems the experience of Britain is unusual. Countries like Japan and the US had a boom and bust in house prices, similar to the UK. …
You are welcome to ask questions on Economics. I am looking to explain economic principles / ideas/ recent developments in economics. Due to the volume of questions, I can no longer promise to answer. But, I will try if it meets below criteria. I will post the answer on this blog, for everyone to benefit …
The River Cam in Cambridge. Recently, we looked at why water can be more expensive than beer, even though water doesn’t attract excise duty Water is the most important commodity in the world, it is indispensable for life, yet, it is also one of the cheapest. In many circumstances we can say water is a …
Personal debt in the UK fell for the first time since records began in 1993. Personal borrowing fell by £600m in July, taking the total owed by individuals down to £1.457 trillion. Personal debt still exceeds total UK GDP. The main cause of the fall in personal borrowing was homeowners who were able to repay …
Heroin is a classic example of a demerit good: People ignore or underestimate the costs of consuming heroin. In other words people make bad choices about deciding to consume this very addictive good. Heroin consumption also has negative externalities for the rest of society. Heroin addicts become less productive, often unable to hold down a …
Readers Question: Is Real GDP per head a better indicator of living standards compared to growth of Real GDP? Why? Real GDP per capita shows the average income of a country. If Liechtenstein has 0% growth of Real GDP in 2008, average incomes will reamin $118,000. A country like India may have GDP per head …