Many auctioneers utilize the “with reserve” format for their auctions. As we discussed in Different Types of Auctions, auctioneers and their clients have the choice between with reserve and without reserve auctions.

In the with reserve auction format, there are different varieties.

1. Known, stated minimum bid, which if met or exceeded, the item sells
2. A secret, undisclosed minimum bid, which if met or exceeded, the item sells
3. Seller retains the right to accept or reject the high bid, regardless

No matter which variety, we’ll discuss here the reasons an auctioneer might prefer to conduct a “with reserve” auction, rather than a “without reserve” auction.

We have tracked five (5) different reasons why with reserve auctions are held. We’ll detail each with an example and/or further clarification.

To get the consignment
Some auctioneers are willing to take an item or items to auction with reserve because of the notoriety or publicity that item may bring to the auction. An auction with several ancient artifacts might benefit overall by the addition of a very rare, unique artifact, even if that particular item is selling with reserve. Too, the auctioneer may benefit later with future similar consignments by owners who saw the auctioneer’s auction with that rare artifact. Lastly, the auctioneer has the opportunity to earn a commission upon sale, and possibly a no-sale fee in the event the reserve item does not sell.

To protect against uncertainty
No auction results in a guarantee of sale for a certain price, no matter the format. In a with reserve auction, the auctioneer can assure his client that if a certain item (or items) don’t seem to be demanding expected attention, that the auctioneer can “no-sale” those items, and hold them back for another auction, or return them to the seller. This might be more of an issue at an auction where there are an abundance of the same type of items (500 pieces of pottery, for example) where the with reserve auction allows the auctioneer the discretion to not sell any one piece that doesn’t meet his seller’s demands. Or, if a farm auction had an abundance of tractors and other farm equipment, and only one piece of jewelry, such as a diamond ring, the with reserve format allows the auctioneer to protect this one item against low demand.

To satisfy liens and/or allow for transfer of title
Especially in real estate auctions, but also in chattel auctions where items have liens, a with reserve auction allows the seller to protect against having to “bring money to close” in the event an item would sell below the lien amount. And, as many sellers have no means of bringing any money to close, the with reserve auction allows the item to sell only if the high bid is sufficient to payoff those liens.

To give the seller the choice of selling or …
Some sellers would say, “I really love this antique settee, and I would like to keep it unless it demands over $1,000. Now, if it demands $1,000 or more, I could use that money in lieu of my love for the settee.” Or, similarly, a seller could have a car in an auction where a dealer has already offered him $12,500. So, the seller would sell the car at the auction if the net proceeds exceeded this $12,500, or otherwise would keep the car, and sell it to the dealer. A with reserve auction would be appropriate for any of these types of scenarios.

Necessary to have third-party approval
Most often found in court actions, a with reserve auction allows some third-party to retain final approval of the high bid amount, either confirming or denying the high bidder as the new owner. Many courts, such as Probate, Bankruptcy and Civil authorize items to be sold at auction, but typically wish to retain final approval.

I have said that I predict The Death of Reserve Auctions but until this eventual death, these will probably remain the reasons auctioneers conduct with reserve auctions.

A Cornwall woman who had extreme postnatal depression says a local specialist mother and baby unit would have helped her…. From BBC News. Full story

This site may contain information about: financial recession. The blog is also related to: definition of economic recession.

It seems that whenever I read various documents and white papers on the subject of “Demand Management”, certainly within the retail arena, there always seems to be the strapline suggesting that it is a blend of art and science.

I certainly think that the “art” of demand management is in the creation of demand by ever more complex marketing campaigns but, to me, the rest of the process is more of a “science”. In fact, it is a very simple process that seems to be over-complicated in a lot of texts on the subject and the key is a collaborative feedback loop between the supply chain and the marketing/sales people.

The purpose of the marketing and sales departments is to create demand for product. The purpose of the rest of the organisation is to satisfy that demand. The more demand you can create and satisfy, the more sales and the bigger the profits. This is the purpose of the organisation, whether it is a retailer or a manufacturer.

However, it is not all plain sailing. What if the supply side cannot satisfy the demand?

This is where the Demand Management process comes in. Essentially, all sides of the business must collaborate to ensure a flow of product that is consistently supplying the correct level of demand that matches the availability of supply. It is a constant balancing act – on one side is demand creation, on the other side is demand fulfilment.

If demand exceeds supply then the result is a lack of product – out of stocks. If supply exceeds demand then the result is too much product – excess inventory.

This balance is only achievable if everyone in the business talks to each other. But it is a relatively simple concept that relies on one version of the truth: the Demand Forecast, and putting processes in place to enable the rest of the business to fulfil demand for the products they are selling.

To enable this collaboration, the organisation must implement a Sales and Operational Planning (S&OP) process. This is a formal environment for collaboration between the sales department and the operational side of the business. The sales and marketing departments must understand the supply chain’s ability to supply. The supply chain must understand the level of demand they need to fulfil (and over what timescale).

If the supply chain is unable to meet the demand, then the sales and marketing operation must change the level of demand they create to bring it in line with the capability to supply. They must adjust their pricing and promotional campaigns to reduce the demand. Otherwise you are in danger of creating an unhappy customer – one who is going to start shopping at your competitors!

by Luke Ding

Sorry for the late post. It’s been a lazy 4 months.

Lately I’ve been thinking about things that create demand. And I realized that food is the perfect instance of supply creating demand. Although you can argue that the demand is inherently there you just don’t have food to eat it, I disagree. I notice that I am never hungry UNTIL i buy the food. Whenever I have food next to my plate I’m inclined to munch. However, if there is no food stimulating me, there’s no way I think of food. I don’t feel hungry nor thirsty, simply content. Therefore, I think it is good measure and policy for people who want to lose weight to do the following. First, never leave food in your dorm because you’ll naturally be inclined to eat it. Second, don’t keep coins and dollar bills around you because the vending machine is your alternative. Third, don’t store money on your card. That way, you won’t have food or the equivalence of food next to you and you won’t feel hungry. Although that is simply restricting demand, I believe that the act of binge eating is an instance of supply creating demand.

A few months ago, I posted an article titled, Too Much of a Good Thing: Explaining the Decline of Guitar Hero and Rock Band which stimulated discussion on various blogs that linked to the article. Some of the issues raised related to complexity, usability, product life cycle issues, etc. But a comment on Plastic Axe was about something completely different:

Right now you can walk into any given Best Buy and there are probably at least three aisles worth of peripheral packages. This week they’re adding DJ Hero and next week will see the Band Hero set. This has to be overwhelming for the common consumer. Now most of those aren’t adding ‘new’ peripherals to the mix, but I’d imagine what is essentially the same thing in 10 different styles can be just as confusing and detrimental. At some point the regular shopper is going to think “Enough already!”.

When product choice becomes overwhelming to customers, they become subject to the “paradox of choice.” In the book, we discuss the phenomenon as it relates to game consoles, but it applies equally to peripherals, software, and other products.

Research has shown that even when faced with two choices, customers are often less willing to buy a product than if they only have one product available to them. Common wisdom holds that consumers are better off when they have more product choices to cater to their individual tastes and needs.

In reality, offering more choices could cause you to lose customers, resulting in declining sales for each product offered, and possibly for the product category as a whole.

When Scarcity Drives Demand

The flip-side to the paradox of choice is “scarcity marketing.” Marketers are familiar with the concept of creating scarcity as a way of driving sales. In the late 1990s, I had a discussion with a marketing agency that was responsible for the launch of a major game console.

To create buzz, they advertised to a select audience that the console would be for sale one day earlier than the rest of the world, but only in one store in a small rural town. That morning, the agency sent a film crew to the store to document the long line that had formed to get the console a day early.

In 2007 and 2008, an ongoing shortage of Wii consoles caused people to line up for hours. Others paid as much as $600 on the gray market (more than double the suggested retail price). Some accused Nintendo of deliberately causing the scarcity to create demand.

Very early the next morning, they broadcast the film via satellite to major news studios that then rebroadcast the footage on morning news programs. That sent customers scrambling to the nearest store before the consoles sold out. People did not realize that the footage was from the day before and the news studios were too understaffed to verify the accuracy of the footage (that it was not taken the same day).

Personally, I felt the agency had acted unethically and I was shocked by how willing they were to boast of their “success.” Regardless, the agency understood that a perception of scarcity can create demand, just as too much choice can suppress it.

MEC (Marginal Efficiency of Capital) depends on the businessmen’s expectations, which increases due to invention and goes down due to any threat to the returns on investment. It is also affected by the annual spirit of the entrepreneur. That is why investments are not always calculations but also irrational optimism. Business expectations are based on existing events and partly future facts. The investment decision is not done on actual investment but on the future yields.

Therefore, huge expenditure is required but actual returns start later. These two types of expectations – short term and long term are based on existing facts, whereas long term expectation is based on the future events.

Acceleration Principle:

The multiplier and Acceleration Principle are parallel concepts. This principle is also called Principle of Acceleration.

Multiplier shows the effect of consumption on investment.

Acceleration shows the effect of investment on consumption.

This is so because to produce the final goods, capital goods are also required. Therefore, if you want to increase the final product, the capital goods which are inputs for these final goods should also be increased. When consumption increases, the demand for factors of production will also increase.

There are certain practical limitations to this principle.

No excess capacity: If consumer goods sectors have excess capacity, induced investment will not increase. Only after the utilization of idle capacity, the principle will start operating.

Surplus capacity: Acceleration principle works on a very tough condition that there will be excess capacity in investment industry but not in the industry producing consumer goods. It is assumed that there is surplus capacity in investment goods industry, but if there is no excess capacity in machine making industries there will be postponed delivery and the acceleration will be low.

Availability of resources: When demand increase for capital goods that means increase in production, which again means more employment. So, there should be enough unemployed resources available. But only when the full employment level reached there is difficulty in expanding the production.

Nature of Demand: The demand for consumption goods should be more or less permanent for acceleration principle to work, because if the demand increase is temporary, then that will increase demand for capital goods as these goods are expensive.

The relationship between consumption, profit maximization and investment is shown by acceleration principle.

In business, demand is invariably more important than supply. If demand doesn’t exist, supply is irrelevant. If demand exists, supply will eventuate.

I happened upon a quote from one of the greatest inventors / entrepreneurs in history Thomas Edison. Despite the simplicity of the idea, it’s very profound.

“I find out what the world needs, and then I proceed to invent it.”

This is some pretty good advice for any entrepreneur. It’s better to make what you can sell, than try to sell what you can make.

There is currently a great deal of debate about how much an ebook “should” cost, and much of that debate seems to stem from how much a person does or does not understand about the work involved in publishing a book. I could provide links, but my back hurts from shoveling snow, so I don’t want to take the time.

Anyway, here is the modest proposal of the day: Dynamic, adaptive ebook pricing.

The rundown: The price of your ebook on Amazon or iBooks or any other site should reflect its current popularity. Thus, as the demand for a book increases, and it therefore becomes more “valuable,” the price should automatically go up to increase profits. As demand decreases, the price should automatically go down to increase sales volume.

You could set a price ceiling, say $20, and a price floor, say $2. Then you establish (mathematically, with accountants and actuaries) a median sales volume, such as 100 copies a week. More then 100 books sold in a week will trigger a 10% price increase, while less than 100 books sold will trigger a 10% price drop.

For example:

1. Your new book is released in ebook form on January 1 at the “launch price” of $10.
2. Week 1: Ebook price $10. You sell 500 copies (gross = $5,000) of your exciting new book. High demand triggers a 10% price increase.
3. Week 2: Ebook price $11. Your book is still in high demand. You sell another 500 copies (gross = $5,500) and trigger another 10% price increase.
4. Week 3: Ebook price $12.10. A rival book release and your high price conspire against you! You sell only 80 copies (gross = $968), triggering a 10% price drop.
5. Week 4: Ebook price $10.90. Customers see your newish book has just dropped in price and rush to get a good deal on it. You sell 200 copies (gross = $2,180) , triggering a 10% price increase.
6. Week 5: Ebook price $12. Customer see your price go up, and other newer books are available. You sell 50 copies (gross = $600), triggering a 10% price drop.
7. Week 6: Ebook price $10.80.  Customers see your newish book has just dropped in price (again) and rush to get a good deal on it. You sell 100 copies (gross = $1,080) , triggering no price change.
8. Week 7: Ebook price $10.80. You appear on TV and get the Colbert Bump! You sell 300 copies (gross = $3,240), triggering another 10% price increase.
9. Week 8: Ebook price $11.90. Public interest wanes and sales drop to 50 copies (gross = $595) and the price drops 10%.
10. And so on.

That is a total sales gross of $19,163.

If the price had been $10 the entire time, with the same sales volume, the gross would have been $17,800.

So in this example, the dynamic pricing model makes more money over a fictional 2-month period. However, if the price remained at a constant $10, there would be no sales bumps from the price drops and the sales volume would probably be less, lowering the overall gross.  So in theory, my idea works.

The point is, when your book is in demand, the price goes up to capitalize on rising sales and you make more money. When your book is not in demand, it goes in the bargain bin to snag those impulse purchasers.

Of course, this system of weekly adjustments would always be a few days behind the level of demand, so maybe the price should be adjusted every day according to whether the book sold more or fewer than 10 copies a day, for example. When consumers adapt to this model, they will be more eager to buy popular books to snag them before the price goes up, which in turn will drive up sales and drive up prices, which drives up profits. Which seems like a good thing.

I think that over the sales lifecycle of the book, this means it will be more expensive when it is released (high buzz) and around holidays (gift time) and when the book is in the media (movie deal, talk show appearance). The book will be cheaper the rest of the time, enticing people to buy it less for its content and more for its affordability.

I have no data to support how well such a system might fare in the real world, but I would very interested to see someone give it a try.

Kerala Government decided to destroy the check dam, constructed by the Tatas in their estate, for providing water to the workers’ colony in their estate at Munnar, because it was illegal !

This was announced by Kodiyery; I saw it in Asianet channel.

When the Court was told that the company did not use the water, which was exlusively for use of workers’ families, the Court became convinced and issued stay order.

 Afterwards, Chief Minister said, again before Asianet channel, that the Government does not want demolition of the dam.

 Who is the Government?

Why did the Collector issue notice to the Tatas?

 Why destroy any property if it is illegal? Why not acquire it instead?

We demand an answer.

Image : http://www.flickr.com

It is an undisputed fact that market economies, in Capitalism, are moved by the supply and demand for goods and services. Specifically as it relates to the Real Estate sector, the basis for the real estate market is the demand by households, businesses, governments and institutions for space and shelter to conduct activities. And moreover, since according to the National Association of Realtors the aggregate size of residential real estate markets in the United States measured by sales volume accounted for almost USD 57 billions in 2005 alone, the impact of households’ demand for residential real estate products is huge.

When people acquire income they tend to invest it, and the more people that acquire income the more people that tend to invest it. Therefore, there is a correlation between capital and employment in real estate or, if you will, between income and labour. An increase in levels of consumption sets forth an increase in prices caused by a corresponding increase in demand, in itself generated by a commensurate increase in the income-employment factor.

It follows, therefore, that growth is derived by the equilibrium of capital and investment with labour and employment. And since, furthermore, production is in direct function of consumers spending which increases as unemployment falls, it follows that capital accumulation increases as employment rises and capital accumulation decreases as employment falls. Which fact, therefore, brings up to light the importance of the conditions of domestic job markets for real estate. All the more so at a time when – due to an ever more efficient process of economic globalization – we are witnessing a constant migration of jobs from North America to emerging economies abroad.

Globalization and outsourcing were, in fact, the focus of the annual symposium held by the Federal Reserve Bank in Kansas City. The topic being floored and examined by the top minds of the economic world was how the rise of China, India and other countries is reshaping employment and wages within the North American economy.

It is commonly believed that wages of workers in rich countries are being depressed by the shift of jobs to low-wage countries, but the debate undertaken at the symposium has offered a much rosier view, with economists arguing that off-shoring can actually increase the wages of domestic workers. The general feeling was that outsourcing boosts firms’ productivity and profits, thereby enabling them to expand and, consequently, to take on more workers at home to perform jobs that cannot be easily moved abroad. In essence a line is being drawn between low-paying, unskilled jobs that can be transferred to emerging economies like those of China, India and, to a lesser extent, Russia vis-à-vis higher-paying, skilled jobs that remain in North America.

Clearly, whereas low-paying, unskilled jobs have a minimal to zero effect on the consumption of domestic real estate products, the scenario changes drastically with higher-paying jobs.

Outsourcing and jobs migration is a topic that has just as many political connotations as it has economic reverberations, particularly in an election year such as this. Critics of outsourcing are quick to point out that between 1997 through 2004 the streamlining of companies through off-shoring was not enough to create sufficient higher-paying jobs at home to offset the outflow of low-paying jobs abroad. And that evidence does exist, furthermore, to the extent that in America, the Euro Zone and Japan total wages have actually fallen, in real terms, to their lowest shares of national income whereas the share of corporate profits has surged. An obvious indication that many ‘leaner’ firms have opted for retaining their earnings as opposed to re-investing them in the domestic work pool.

Specifically because of this, Prof. Ben Bernanke, the Chairman of the Federal Reserve System, has argued at the symposium that the scale and pace of globalization is unprecedented and that the overall gains will be huge. But he has also warned that there is a risk of social and political opposition as some workers lose their jobs. The Chairman has urged policymakers, therefore, to ensure that the benefits of global integration are sufficiently widely shared through the echelons of the economy, so as to maintain support for free trade and enhance the democratization of wealth.

Real Estate stands to gain the most by a more evenly shared distribution of wealth in North America, both from the standpoint of increased demand and of increased inventory production and supply, for when people feel rich they spend – a psychological effect known in Economics as “The Wealth Effect”. Despite the near-term moderation in the number of existing home sales, the housing market can all but continue to benefit from expected positive long-term economic fundamentals including expansion of gross domestic product generated by job creation and investments, coupled by a monetary policy of continued moderate interest rates.

Luigi Frascati

Luigi Frascati is a Real Estate Agent based in Vancouver, British Columbia. He holds a Bachelor Degree in Economics and maintains a weblog entitled the Real Estate Chronicle at http://wwwrealestatechronicle.blogspot.com where you can find the full collection of his articles on Real Estate Economics and Finance. Luigi is associated with the Sutton Group, the largest real estate organization in Canada, and is based with Sutton-Centre Realty in Burnaby, BC.

Luigi is very proud to be an EzineArticles Platinum Expert Author. Your rating at the footer of this Article is very much appreciated. Thank you.

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Why is it after an evening of openings on Tenth Street, I come away feeling exhausted from the spectacle of boredom and the seemingly endless repition of the safe sameness? I wonder why people – especially young people – continue to do something which in its result is as dreary and dim as a late Victorian front parlor, and as respectable?

Friedel Dzubas, Statement in “Is There a New Academy?”, New York 1959

Technological discontinuities, regulation and deregulation, globalization, changing customer expectations, and macroeconomic, social, or demographic changes are sources of innovation. Biotechnology, the web, fiber optics, digital movies, cable modems, massively parallel processors, and electric cars are all technological discontinuities of some sort as they offer an order of magnitude performance advantage over previous technologies. They also result in some sort of capabilities obsolescence. Such changes where an old order is destroyed by technological innovation is creative destruction.

Customers demand and expect certain levels of quality and price versus performance in the product that they buy. For various reasons, firms are no longer limiting their activities to their country of origin. Social or demographic changes, such as the changes from planned economies to capitalist ones, are also discontinuities. These are all sources of new ideas to profit from.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

We wonder many a times, why are there so many obstacles against the job hunt? The three main reasons are –

é Supply and Demand Ratio

é Need

é Risk factor of hire

‘Secrets of Interviews’ 

Let’s consider first two of them –

é Supply and Demand

The population of India is close to 1.6 billion and about 6.8 % population is unemployed (according to CIA), many are active job seeker as well in working group. This gives a clear indication that there are more job seekers than jobs. These figures can’t give a complete view of unemployed people, who are not registered with employment office. There are fresh graduates entering the market along with the unplaced floating market. There are many part time, contract workers looking for full time employment. Many employed works unhappy with the present job who are looking for new jobs. I am sure many of you started getting a clear and bigger picture by now. As a job seeker you need to know the employer secrets to succeed at job search, professional resume, interviews, and negotiation.

é Need

Whether it is boom or doom of economy there is a need for job aspirants. In discussion with many job seekers, I have found is that the focus is completely on you. It is very common that an employer will select only one or few open positions from hundred of applicants. On average an individual spends about three months and can be considerable longer due to the economic conditions, geography, and industry. Even if you land up with placement, there is no guaranteed offer letter. Even if offered no guarantees on length and job satisfaction. Many tend to blow up the opportunities, by being inflexible and or by showing desperation. One has to learn the art of negotiating, otherwise will end up getting paid low than they are capable. Most of people are dissatisfied with their jobs within one year or earlier. The two main complaints are –

Ø The Job is not what I expected

This is a good indication to understand that job seeker is not assessing the employer or the position.

Ø I am underpaid

If anyone is not making enough money after only one year of on the job, unless an employer has cut the pay, the employee has to blame him/herself. Either the employee accepted a job with less pay or didn’t negotiate.

What you can do to avoid these situations? To find answers for these unanswered questions, contact Loratis Career School (www.loratis.co.in or info@loratis.co.in or 91 80 – 2245 6262)

Regards,

Santosh A

Sr. Business Navigator

Loratis Career School

-Find Your True North!

www.loratis.co.in

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CREDIT SUISSE: BUY THE DIPS – THE BEAR ISN’T HERE YET

Strategists at Credit Suisse entered 2010 with a very cautious tone and an outlook similar to our own – 2010 would be a year of halves. The first half would be a continuation of the trends that helped the market surge in 2009 while headwinds would build near H2 2010 and result in market declines. The recent downturn in stocks hasn’t changed their outlook and they view the sell-off as a buying opportunity

buy DJIA DIAMONDS (DIA)

buy Ultra QQQ ProShares (QLD)

buy Ultra S&P500 ProShares (SSO)

buy S&P 500 SPDR (SPY)

buy Nasdaq-100 Index Tracking Stock (QQQQ);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Zweig Fund Monthly Report – Jan 2010

Zweig Fund Monthly Report – Jan 2010

buy Zweig Fund (ZF);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Copper Market Set for ‘Catastrophe,’ Threlkeld Says

Feb. 2 (Bloomberg) — Copper prices, which more than doubled last year, are set to plunge as speculators unwind positions and global inventories expand, according to David Threlkeld, president of metals trader Resolved Inc.

sell S&P 500 SPDR (SPY)

sell iPath Dow Jones-AIG Copper Total Return Sub-Index ETN (JJC);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Asia shares rebound; resource stocks surge

Asia shares rebound; resource stocks surge

buy Asia Pacific Fund (APB);

Check out how others are using ETFs to capitalize on this news or add your own opinion

The Zweig Total Return Fund, Inc. Declares Distribution | Uwhich.com

The Zweig Total Return Fund, Inc. Declares Distribution | Uwhich.com

buy Zweig Total Return Fund (ZTR);

Check out how others are using ETFs to capitalize on this news or add your own opinion

New-home sales: ‘The industry has been basically obliterated’

Chicago-area builders sold 584 homes in the fourth quarter, up 3.9% from 562 in the year-earlier period, according to a recent report by Tracy Cross & Associates Inc. It was a positive end to an otherwise awful year for local developers, who sold just 3,753 units in 2009, down 41.0% from the year earlier and 88.7% from the market’s peak in 2005.

sell SPDR S&P Homebuilders ETF (XHB);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Europe is Lehman-fied, part deux

So it’s not quite at the 10.25bps level hit when Lehman Brothers collapsed in September 2008, but the difference between the iTraxx Main and Financials Senior CDS indices (a basic indicator of how credit investors are viewing corporates versus financials) is getting close.

sell iShares S&P Global Financials (IXG);

Check out how others are using ETFs to capitalize on this news or add your own opinion

What on earth are oil investors thinking?

s Schork states, there’s no denying the US economy began recovering in late 2009, but that recovery is producing a very different economy to the one we were used to back in 2007. Essentially, much of the gasoline expenditure US oil companies took for granted, has been “wiped off the map and is not coming back”.

sell United States 12 Month Oil Fund, LP (USL);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Demand for corporate loans in US falls

The Fed report underlined banks’ growing desire to lend to companies at a time when politicians are calling on financial institutions to aid the economic recovery by extending credit to companies and consumers.

sell KBW Regional Banking ETF (KRE);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Pimco’s El-Erian Says Retreat in Stocks Will Worsen as Economy Slumps

Feb. 3 (Bloomberg) — Mohamed A. El-Erian, whose firm runs the world’s biggest mutual fund, said the largest stock market decline in 11 months may worsen amid persistent U.S. joblessness and economic growth that trails analysts’ forecasts.

sell DJIA DIAMONDS (DIA)

sell S&P 500 SPDR (SPY)

sell Nasdaq-100 Index Tracking Stock (QQQQ)

sell iShares FTSE/Xinhua China 25 (FXI)

sell iShares MSCI-Emerging Markets (EEM);

Check out how others are using ETFs to capitalize on this news or add your own opinion

ChemOrbis has an extensive in-house team located in each country of focus which tracks market prices, developments, news and trends on a daily basis. The information is gathered from a vast group of market players including a balanced representation of both buyers and sellers.

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With ChemOrbis Market Information members will secure a competitive advantage in this ever changing market.

Demand for Welsh language and denominational education in a town leads to a catchment area review…. From BBC News. Full story

This site may contain information about: universities. For a different topic see Tweed hats for men. The blog is also related to: school social studies.

The monsoon season in South Asia provides a patchwork of vibrant green fields. In striking contrast, a few months later, in the post rainy season, the same fields are fallow and bare because farmers  do not plant seed for the fear it will not germinate. In many cases this decision is based upon local knowledge and experience and is a fair judgement to make given the lack of rain during this season.

However, new varieties of pulses that mature quickly and new farming practices such as minimal tillage and early sowing have provided the means for farmers to make the most of their land according to research identified by Research into Use (RIU). Pulses like soybean, chickpea, lentil and faba bean are not so dependent on the same level of water as in the production of rice, their roots are deep, and this ensures they make the most of the moisture remaining in the soil. These crops also need few inputs and little capital, and their grain fetches high prices. This means they provide a much more profitable alternative to crops such as wheat which would require irrigation.

The main challenge for farmers in South Asia is to ensure that they have the correct seed. Rice fallow areas vary greatly, and this means centralised plant breeding does not provide the most suitable seeds. Seeds need to be adaptable to different climates, soils, and consumer preferences. The most effective way of getting seed selection right is to involve farmers in selecting varieties and testing them on-farm. Research identified by RIU suggests that in addition to this the setting up of self-sufficient village based seed production and distribution systems is a highly cost effective  approach to getting the most appropriate seed to farmers.

RIU has made the following suggestions as to how decision makers can speed up this process, and bring about positive change:

• Strengthen departments of agriculture and engage non-government organisations – in eastern Nepal the area of rice fallow sown to crops doubled from 40% to %80 in two years thanks to the NGO FORWARD and the District Agriculture Development Office (DADO)
• Distribute improved early maturing  and pest-resistant varieties – in eastern Nepal, chickpea (previously abandoned by farmers because of disease and insect pests) has made a comeback due to the availability of new varieties
• Provide farmers with incentives – such as crop insurance and micro-credit

More indepth information on this research, and related research can be found on the RIU website. For a brief insight into RIU’s work in Nepal watch the following short video.

Nollywood Film Shoot. Courtesy Nollywood Babylon (2009)

This week, as AIG’s bonus payment plan continues to draw criticism,  I began thinking about how the global recession is affecting popular demand for Nollywood films. The recession has certainly taken a toll on the Nigerian economy. In 2008, Nigeria’s GDP fell by 9.1% from the previous year, as compared to a 2% decline in the U.S. during the same period.

Yet the demand for certain goods has actually increased during this recession: candy, Spam, and condoms have all reaped record profits in the American marketplace.  In these times of financial hardship, many people have decided to reduce expensive outings and have opted to stay close to home for entertainment.  As Nollywood is primarily known as a “home video industry,” does it fall within this category of recession-proof goods? Or do consumers consider it a luxury that they can live without?

Since most economic transactions in Nigeria are not tracked, it is difficult to monitor Nollywood’s sales and distribution statistics.  Most reports are gauged by word of mouth.  According to a March 2009 Nigeriafilms.com article,  many producers, directors, and marketers have complained of a recent decline in profits and consumption.  Some actors report 50% pay cuts, while video club operators complain of a similar dip in demand.

But can this decline be blamed solely on market forces?  In the above article, a member of the Video Club Owners Association of Nigeria (VCOAN) primarily attributes his business woes to frequent power outages in the region.  Other Nollywood actors blame the downturn on the broadcasting of Nollywood films on DSTV’s Africa Magic channel, which is available throughout the African continent.  In addition to reducing the market value of the films through repeated broadcast, Africa Magic lowers the value of Nollywood product by paying a paltry US$1000 acquisition right per film.  This is widely considered an inexpensive rate for such broadcasting rights because it doesn’t cover the average budget of a film (which ranges between US$20,000 and US$100,000).

Regardless of the cause of the decline, many insiders seem to believe that the Nollywood industry is heading south after almost two decades of unprecedented prosperity. What do you think? What can be done to save the industry?

We already have discussed about consumption function. Now, we will study about investment chapter. “Investment” is known as capital expenditure i.e. the expenditure on purchasing physical assets, machinery, equipments etc.

Types of Investment:

a) Gross and Net Investment: Gross is total value of productive assets created during a given period i.e. one year. It tells us the resources mobilized by the economy, depreciation is part of gross investment, when we deduct amount of depreciation from gross investment, and we get net investment. Net investment creates new productive capacity and employment opportunity.

b) Private Investment Public Investment: Investments made by private companies and corporate come under private investment. Investment made by Government and departmental undertakings is called public investment.

c) Induced and Autonomous Investment: Autonomous investment is the investment which is income in elastic. According to this, even if the income is zero, there is some amount of investment done by the Government. It does not depend on the change in National Income.

In this figure, income is shown on X-axis and investment is shown on Y-axis. You can see that even when the income is zero, some amount of investment is made.

Induced investment increases with increase in income and decreases with the decrease in income.

In this figure, income is shown on X-axis and investment is shown on Y-axis. You can see when income increases the demand and consumption will increase and so the investment to increase the production and supply and vice versa.

In this figure, income is shown on X-axis and investment is shown on Y-axis. We can see the total investment in the above figure.

Total Investment = Autonomous + Induced Investment

The prices of raw materials that we track rose substantially this year!

• Aluminum  up 44% from Dec 2008.
• Copper up 112% from Dec 2008
• Nickel up 27% from Dec 2008
• Steel busheling up 35% from Dec 2008
• China coke up 60% from Dec 2008

We expect to see continued incidents of shortages, material unavailability, and skyrocketing surcharges and price increases until the supply lines are filled.

Here is link to PMPA’s Material Impacts Report for year end 2009.

Last year taught us 2 economics lessons:

1. It doesn’t matter how many parts your machines can supply. Orders are based on DEMAND.
2. Prices for raw materials inevitably go up when there is no SUPPLY available.

Remember those the next time your customer tells you they want a fixed price or a mandatory discount.

For more on Supply and Demand:

A market situation in which a single firm sells a product for which there are no good substitutes is called pure monopoly. The firm has the market for the product all to itself. There are no similar products whose prices or sales will influence the monopolist’s price or sales perceptibly, and vice versa. Cross elasticity of demand between the monopolist’s product and other products will either be zero or small enough to be neglected by all firms in the economy. The monopolistic firm does not believe that its actions will evoke retaliation of any kind from firms in other industries. Similarly, the monopolist does not consider actions taken by firms in other industries to be of sufficient importance to warrant taking them into account. The monopolist is the industry from the selling point of view. A case in point is the supplier of telephone service to a particular community.

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Sublingual vitamin B12 is a fast-acting form of vitamin B12. For sublingually, the impact of this is similar to B12, with a shot from the nutrient – as in reality, as an alternative to having prepared and injected.

Sublingual Vitamin B12 is available in several forms. It is a pill form, put in pill under your tongue and let dissolve. There are forms of capsule, where the capsule is broken and put the liquid under theLanguage. And finally, there are drops that are placed under the tongue.

Sublingual application is one of the best methods of delivery. One of the quickest ways to get at is some kind of medication or vitamins in the blood drug under the tongue. The area under the tongue, contains blood vessels that allow easy absorption, and everything is brought into the area quickly absorbed into the bloodstream. It 'very important that the sublingual vitamin B12 in the context takesLanguage for the duration of time that is necessary to ensure that is absorbed.

There are reports that this type of sublingual tablets and pads are a little 'less comfortable than under the tongue, and some people complain that drops sublingual feeling hot on the tongue. There are also concerns that the drops under the tongue is not long enough, to be included.

Even taking into account the foregoing sublingual B12 is still a much better method than a simple supplyTake a pill. Sublingual Vitamins are an excellent source of energy and provides the body with a boast of immunity and metabolism.

Sublingual vitamin B12 can be purchased over the counter in most drug stores and vitamin shops. It can also be found in some grocery stores and discounters.

New borrowing on credit cards, loans and overdrafts outstrips repayments by UK consumers for the first time since June…. From BBC News. Full story

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