Case Study: Abercrombie & Fitch

Introduction

Abercrombie & Fitch, also known as A&F, founders are David T. Abercrombie & Ezra Fitch founded in New York City (June 4, 1892) now the key people person is Mike Jeffries (Chairman & CEO)

Abercrombie & Fitch is an American retailer that focuses on casual wear for consumers aged 18 to 22, It has over 300 locations in the United States and is expanding internationally, The company have 10,000 full time employees and 80,000 part time employees The current version of A&F sells mostly clothes for the youth market, and describes its retailing niche as an inspirational "Casual Luxury” , Especially since 1997, the company has consistently kept a high profile in the public eye

When the government decides on the goods and services it purchases, the transfer payments it distributes, or the taxes it collects, it is engaging in fiscal policy.

Monetary Policy

The actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates. Monetary policy is maintained through actions such as increasing the interest rate, or changing the amount of money banks need to keep in the vault (bank reserves)

Monetary policy has lived under many guises. But however it may appear, it generally boils down to adjusting the supply of money in the economy to achieve some combination of inflation and output stabilization.

Most economists would agree that in the long run, output usually measured by gross domestic product (GDP) is fixed, so any changes in the money supply only cause prices to change. But in the short run, because prices and wages usually do not adjust immediately, changes in the money supply can affect the actual production of goods and

International trade is the process of exchanging goods and services between the countries worldwide. UK business can compete against foreign rivals by offering the better designed and high quality products at lower price.

In International Trade the exchange rate is the price of foreign currency that one pound can buy. As an example: if the current exchange rate is two dollars to the pound, then one pound is worth only two dollars.

The price of UK exports and imports may be varying due to the changes in exchange rate.

Why countries Trade?

There are two basic types of trade between countries. The first is in which the receiving country cannot produce the goods or services that the country need, because they do not have enough resources to produce them.

The second reason is in which they has the availability to produce goods and services but they still imports them, because producing them is more costly the importing.

The rationale for first type of countries is very clear. As long as the country can afford they can buy the goods and services the country need.

Emerging Markets

Emerging markets are the nations with social or business activity in the process of rapid growth and