Business Econimics Research Paper Example | Topics and Well Written Essays - 750 words

Business Econimics - Research root ExampleThe stretchableity of demand big businessman affected too Since trust is hard to earn and aristocratical to lose, it is likely that once a company has violated ethical standards, consumers will be afraid of acquiring burnt again and will avoid the company at the first sign of trouble, making their offerings more(prenominal) elastic. Costs might raise Contractors, suppliers and distributors might ask for a higher price for their service and goods, each because they feel that the companys bargaining position has declined, as insurance against potential malfeasance, or as compensation for the undeniable PR hit. Ethical issues are more likely to occur in deregulated markets (Palast, 2002 Palast, 2004). This is for a few reasons. original The kind of behavior that occurs in a deregulated market tends to already be less constrained by conventional ethics, meaning that companies that thrive in that environment are already likely to have irr egular and perhaps unscrupulous cultures and practices. Second Regulation, both by NGOs and government, tends to make companies more sensitive to the impacts of what they are doing it might be seen by someone. One of the major ways that Enron managed to get away with so much was the inactiveness of shareholders and the failure of accounting firms, auditors and regulators (Palast, 2002 Berenbeim, 2002). Consider a rise in demand for calculating machine chips and white potato chips. spud chips are pure luxury items They are highly elastic, because people can cave in to go without potato chips. Computers and the chips that make them up, in contrast, are essential items for business, homes, political agencies and NGOs. The economy runs on telecommunication technology, credit account processing, etc. that is all done through calculatorized systems. A reduction in demand cant hurt computer makers much, despite the relatively high cost of producing computer chips to potato chips, be cause they are so essential. In the improvident run, a potato chip maker might harvest more potatoes, run lines faster, or transport factories more tightly to increase production. A computer chip maker might do the equal thing, but while the occasional green or stale potato chip is not a threat to the potato chip makers reputation, a failing computer chip costs headaches in vainglorious examines, tech support headaches and so on. acquire new factories for potato chips is likely to be easy Buying and properly fitting new factories and training new personnel for computer chips is much harder. In the hanker run, of course, the potato chip company has to bear in mind that a new health fad, a change in the taste buds and palates of customers, a marketing campaign, or something else might harm the demand for their product. They cant afford to get too much excess. Further, potato chips must be strictly identified according to factory farm standards, meaning rebranding is more diffi cult than it might seem and companies are less flexible than an initial review would suggest (2009). However, computer chip makers know that, in the long run, their product cannot help but grow, as the Third World catches up and computerizes more and more and as more and more products need computer chips. Thus, its clear that a product that is elastic might have some more flexibility in dealing with spikes, but tends to have difficulty maintaining those spikes and therefore taking advantage of them, whereas a less elastic product might take longer to get