ipl-logo

America's Currency Rates Affecting The US Economy

490 Words2 Pages

The world’s largest economy, the United States, is a major player in the international economic system. If U.S. economy declines, it will affect international finance. Because most international transactions are made in US dollar and The United State is the largest trading country, they play a major role in world export and import (World Financial Watch, 2013). If US dollar’s currency rate increases, it will affect our country’s economy negatively because price of products and services will increase and customers’ buying ability will decrease. Regarding our company, we import our products from America. If U.S. economy declines, the price of imported products will increase. We will not be able to compete against our rival so we have already decided to pursue product differentiation strategy. Even if U.S. economy declines it will not affect the consumption …show more content…

To operate international business, top managers in a company have to learn global strategy and implement them. A new company can use strategy of the host company such as partnerships with other countries, acquiring companies in other countries and owning franchises and patents of other countries (World Financial Watch, 2013). Companies definitely encounter global competition and market changes. Who will survive in such a market? The companies, which select a global supply chain and vendors and monitor threats in the market place, will operate successfully and gain competitive advantage (Wisma, 2013). Starbucks has many competitors but they have created their own culture, value, and brand. Today Starbucks has 20,891 stores in 62 countries. Corporation revenue is $14.89 billion and they have 160,000 employees. The company is the largest coffeehouse company in the world (Starbucks, 2014). Starbuck is a global leading company. Therefore our company in Mongolia will lead by strategic management like Starbucks

Show More
Related

Eco 372 Week 2 Assignment

434 Words | 2 Pages

If interest rates increase, it will become attractive to invest money in that country because investors will get a higher return from savings in that country’s banks. Therefore the currency demand will rise. But higher interest rates will have a negative impact on the country. This is due to the reduction in purchasing power of the consumer while the loan borrowers have to pay more interest.

Read More

Dick Smith Essay

536 Words | 3 Pages

However it doesn’t have a large impact on the food industry as such as consumers need to purchase food in order to survive. Although they may decrease quantity of foods they choose to buy, they are still willing to purchase basic foods that will sustain their health. Consumers are more likely during an economic downfall to spend their money on foods they require rather than want. The company as a result obtains an advantage from its competitors as they produce long lasting food options, which allows consumer’s to save during tough times. This highlights an opportunity for the company as they produce healthier and simple food varieties which many customers desire.

Read More

Swimming Against The Currency Tide Eleanor Beaton

1063 Words | 5 Pages

The effects of a change in the exchange rate. After entering the US market through exporting the company faced challenges regarding the value of its currency. When the value of the Canadian dollar started to rise, its exchange rate changed. “The exchange rate is the value of one nation’s currency relative to the currencies of other countries” (BUS1201 Custom Text 2012, p.71).

Read More

How Do Pennies Affect The Economy

144 Words | 1 Pages

Around the world, there are billions of pennies and every single one of them has basically the same format, shape, and size. The penny is usually the smallest denomination within our currency system. People around the world uses pennies to help buy things that humans would need to have in life. Without the existence of pennies, it would make our currency become worse and less organized also it could really drop our market economy or just the economy itself. In general, pennies doesn’t actually get dirty; the copper used for pennies is made up mainly of copper atoms.

Read More

Research Paper Mod/440 Week 3 Starbucks Business Development Plan

535 Words | 3 Pages

Starbucks Latarsha Reid MOD/440 June 7,2017 Kameke Payne Starbucks Starbucks is one the largest successful business running in the United States. However, the business still faces issues in the process of development of the business under the effect of the economic recession.

Read More

Naked Economics Chapter 2 Study Guide

487 Words | 2 Pages

I am amused by the answers provided here. The most amazing thing is no one have any idea about how economics work. I am not an economics expert, but this is the probably first thing you'll be taught in economics after demand/supply curve. Currency prices works like an index of prosperity in the respective nation.

Read More

Weak American Dollar Research Paper

125 Words | 1 Pages

Therefore, a weak dollar has the ability to change the entire flow of trade that occurs when the dollar is strong. When the dollar is weak, America as a whole tends to export more goods and services than it imports.

Read More

What Effect Does The Federal Reserve Have On The Economy

527 Words | 3 Pages

The tool that is mostly utilized by the Federal Reserve is the so called Monetary Policy, which is best described as the activities that the Federal Reserve assumes in order to create a change or affect the credit and the amount of money that circulates in the U.S economy. By changing the amount of money and credits circulating through the economy, the Federal Reserve is able to control or have an effect in the cost of credits also known as interest rates, which would result as lower prices in interest rates, factor that promotes and positively affects the U.S economy. There are three tools that the Federal Reserve utilizes to influence the Monetary Policy: one is to buy and sell U.S securities in the financial markets, also known as open market operations, which main purpose is to influence the level on the reserves in the banking system, as well as

Read More

Ll Bean Case Study

1854 Words | 8 Pages

If the market is in recession the demand can be expected to be on the lower side whereas in case of boom condition, demand will definitely be much higher. Competitors: The strategies of the competitors over the past periods should be analysed in depth and should be used to fine tune the forecast for next

Read More

Government Reform In The United States

957 Words | 4 Pages

The United States economy has been through many reformations to get where we are today. Our economy is on a global scale, which is affected by many other countries. With the growth of the flat world idea, we have become a global economy that needs other countries to prosper. Either we are selling or buying goods from other countries to keep Americas’ economy growing. “A country should produce and export those goods and services for which it is relatively more productive than are other countries, and import those goods and services for which other countries are relatively more productive.”

Read More

Macroeconomic Factors Affecting Starbucks

707 Words | 3 Pages

Starbucks’ is a premium valued brand; costly to imitate. Its human capital deploys it operations and provide supreme customer support (Geereddy, n.d.), while organizational direction and culture is impacted by leadership (Kokemuller,

Read More

Macroeconomic Factors Affecting Apple Company

2241 Words | 9 Pages

For example, the sales of Apple products in US will decrease if there is a rise in the US. Because of this the purchasing power will also decrease. Hence the sales will be reduced. Hence, to reduce the rise effect, Apple has purchased itself foreign currency.

Read More

Why Ikea Go International Case Study

1438 Words | 6 Pages

In order to be succeed on international market, it’s very important point to define the international strategy. If to define the international strategy: an international strategy is when a company hires a strategy through which its goods and services are sold out of its local market. Enlarging into international markets allows potential opportunities to companies. Let’s see the IKEA’s international strategy in the following Figure 1. IKEA has expanded from a small, family-owned home furniture corporation into a global retailer within 385 stores in 48 countries, during its 72-year history.

Read More

Ethical Issues In Starbucks

831 Words | 4 Pages

Ethical issue in Starbucks Starbucks, an American coffeehouse chain based in Seattle, Washington, is the world largest coffee retailer chain in the world having more than 21,000 stores in 65 countries (Starbucks website, n.d.). In United States, Starbucks owned 12,973 stores (Starbucks Company Statistics, 2014), which is more than 73% of the market shares of the United States coffeehouse industry. Hence, Starbucks possesses monopoly power in the specialty coffee market. Enjoying monopoly position, Starbucks plan to completely dominate the market by eliminating competition. Starbucks engages in a range of anti-competitive activities.

Read More

Starbucks Value Proposition

1586 Words | 7 Pages

Starbucks was founded in 1971. They have 18.850 stores in more than 40 countries which makes them the first coffee specialty retailer in the world. They operate most of their stores having only 50 franchises (as of 2017) as to keep strict control over quality. The success of Starbucks is based on their unique value proposition. They offer customer the finest coffee produced by themselves, with strong commitment on creating a global social impact, served in stores that promote a welcoming and warmth sphere where everyone can feel “like home”.

Read More

More about America's Currency Rates Affecting The US Economy

Related Topics

Open Document