Article 16

Dolce and Gabbana sentenced to jail for tax evasion

Date:19 June 2013

Author: Unknown

This article comes from the BBC News.

Summary

:Domenico Dolce and Stefano Gabbana, Italian fashion designers, have been sentenced to prison in Italy. Because both of them were accused of hiding millions of euros from Italian tax authorities. Dolce and Gabbana did not comment on their sentences. When the hearing held on Wednesday, the judge ordered that the designers moved their brant to a Luxembourg-based holding company Gado. And judge claimed that designers avoided declaring taxes about 1 billion euros.

My opinion

:In my opinion, I do not understand why rich people do not incline to pay their taxes. Why???To balance the gap between rich and poor, rich people need to pay more taxes based on their income. These days, there are many celebrities who do not tend to pay their taxes, but hide their taxes. Hiding tax is not good behavior for everyone even though some is very poor or rich. Rich people, obviously, need to pay more taxes than middle class/poor classes do.

How does it relate to the economics?
:In economics class, we learned about the income distribution. The meaning of income distribution is that the distribution of wages earned across a company, industry, or country and it reveals what percentage of individuals are at various wage levels. And each country needs to try balance the gap between rich and poor. Then the country can possibly develop its economic level safety and continually. It is important for the government to provide economic opportunities to everyone, not only for rich people.

Article 15

US consumer spending falls for the first time in a year

31 May 2013

This article comes from BBC News. Author is unknown. 

Summary
:US consumers spending continues to fall from April to June. According to the Department of Commerce, it claimed that consumers' spending decreased about 0.2%. Demand for utilities and luxurious items definitely declined. Also less money being spent on petrol due to the fact that the price of oil continued to decrease. Likewise, through the prices of petrol declined rapidly in March and April. consumers did not spend much money to purchase fuel at stations.  Furthermore, an increase in social security payments reduced the worker's payments. Unfortunately, each individual household income does not change at all. However, US economists assume that their economy will be stable and increase if more than 165,000 jobs are going to create in the future.

My Opinion
:From my point of view, I think that the spending of consumers all over the world continues to decrease nowadays. Not only US consumers have been struggling with economic crisis, many other nations consumers are trying to escape from unemployment and increased prices. I think that US government should regulate those economical problems to give numerous opportunities to its people or consumers. The government should create more jobs and increase GDP rate gradually.

How does it relate to economics?
:As the United State of America is a developed nation, the government should stabilize its economic circumstances and create more jobs to balance each individual household income rate. US really needs higher GDP rate and create more jobs. Then, more people are able to have economical benefits. However, there are many ways that US recover its broken economy. 

Article 14

French consumer confidence falls sharply

This article comes from BBC News and the author is unknown. Last updated 28 May 2013.

Summary

:According to the French Statistics agency, French consumers' economic confidence has recorded the lowest level since July 2008. French monthly consumer moral index dropped by four points from 83. Also the survey shows a fact that French households assume that the unemployment rate will rise up gradually. Unemployment includes measurement for workers to change jobs and for companies to fire employees. France's economic has suffered from recession like other EU members do.

My opinion

:I think that most of nations that are in Eurozone are struggling with economic crisis. That is why French consumer confidence has dropped continually. If one nation has suffered from recession, the government need to try to increase economic situations by increasing demand quantity and encouraging citizens to spend more money. It means that the government provides many economic chances to consumers to revive their fallen economic.

How does it relate to economics?
-The government need to practice expansionary monetary to stimulate economy by decreasing unemployment and increasing investment. As France has suffered from recession and unemployment, the government should help its citizens to get away from economic crisis.

Article 13

Manchester City in multi-million pound Nike kit deal

This article comes from BBC News. Author is unknown. May 22.

Summary

:Manchester City, the one of the richest soccer club in the world, made multi-million contract with nike. Specifically, Man City has dealt its new kit with US sportswear giant Nike reported to the worth about $109m over six years. It changed its previous brand from Umbro to Nike. There is no economic disadvantages for Manchester City due to the fact that the new income from the its new kit will help boost Manchester City's commercial revenues. And Nike and Manchester City club assure that their market is going to stretch from Africa, Europe, Asia and the Americas.

My Opinion

:I think those richest sports club make a deal with only huge and giant companies. It means that a lot of small companies are losing their opportunities to improve their economic status at all. Therefore, more riches sports club should focus on small businesses. On the other hand, those contracts between huge companies create a huge economic advantages so that more workers can have change to work.

How does it relate...?
:As you see this situation, there are only few sports cloth companies such as Nike, Adidas, and Puma so that the small companies have no choice but to lose economic chances. However, the demand for Man City's new kit which is made by Nike will go up. It means that Manchester City would get more profit and produce more products.

Article 12

Dell posts 79% fall in profits amid takeover battle

This article comes from BBC NEWs.

Summary

:As consumers incline to purchase smartphones and tablets instead of computers, Dell, one of the American Computer Companies, has claimed that 79% fall in net profit. The PC maker's total revenue decreases 2%. Dell has no choice but to see fighting between founder Michael Dell and two of its shareholders. Because Michael wants to have a private company while other investors have different ideas. And Dell mentioned that the revenue from new technologies, services, and software increased 12%. However, the sales of PC decreased 9% gradually. 

My Opinion

:I think that the company Dell should produce different products such as smartphones and tablets in order to survive at computer market. Dell should not lose profits no more for keeping its balanced economic.  As there are numerous companies which are producing electric devices, it is important for Dell to produce the most creative products to attract more consumers.

Article 11

Amazon sales rise but profits fall

This article comes from BBC news.

Summary

:The world's biggest online retailer, Amazon, claimed that a net income dropped about 37% compared to last year. Even though Amazon rose sales in the first three months of 2013, its total profits fell. However, sales of electronics advocated Amazon to boost revenue to 22%. Also its gross profit margin also increased from 24% to 26.6%.  In order to increase its profits, Amazon began to invest in building new warehouse to develop delivery times and launch new products such as online film and video content.

My opinion

:From my point of view, most of major companies have been suffering from financial problems. As I mentioned about McDonald's profit last week, income of major companies has decreased gradually. Therefore, it is important for every businesses and companies to create new ways to attract more consumers in order to increase their profits. 

Article 10

McDonald's sees fall in global sales

This article comes from BBC news, unknown author.

Summary

:The net income of the largest restaurant chain in the world, McDonald, has dropped. McDonald has reported a decrease in first quarter sales of 2013 and it assumed that the expectation sales also drop.
McDonald has no choice but to be pressured by many competitors. As the population of the thrifty spenders increases, restaurant chains, including Taco Bell, Kentucky Fried Chicken and Pizza Hit, have changed their menus. Therefore, McDonald's targeted consumers with "Dollar Menu", but the sales and profits were lower than expectations. Furthermore, McDonald claimed that underlying sales in the US fell by 1.2% in the first three months of the year, with operating income down 3%.

My opinion 

:From my point of view, many people are struggling with their financial problems. People do not incline to pay more money than before they did. That is why most of restaurants and other companies' net income has decreased gradually. More thrifty spenders increase, more companies lose their profits. So I think that companies should make more plans with cheaper prices but high quality products.