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.

Article 9

S Korea in $15.3bn stimulus bid to spur economic growth

This article comes from BBC News, unknown author.

Summary

:South Korea tries to boost economic growth by spending more recently. Small and medium-seized exporters can be helped by the funds as well as funds will be used to create jobs, boost a property market and cover a shortfall in tax revenue. Unfortunately, South Korea has suffered from weak exports and subdued domestic demand. Korean economists, however, predicted economic growth develop 0.3 percentage annually in 2013. Even though South Korean government has been experiencing economic growth constantly, the economic is still growing slowly.

My opinion

:From my point of view, new South Korean government should set well-developed economic plan for preventing unexpected economic crisis like Japan's yen has dipped nearly 20%. I strongly believe that our new government will create 40,000 jobs in this year. More jobs, more people have numerous opportunities to avoid financial problems.

Article 8

Turkish Airlines to buy 95 new Boeing planes

This article comes from BBC News, unknown author.

Summary

:One of Turkey's national carrier, Turkish Airlines, decide to buy 95 new planes from US aircraft maker Boeing within 7 or 8 years. The airline company claimed that it would purchase 20 planes in 2016, 20 in 2018, 15 in 2019, 20 in 2020 and 10 in 2021. This situation shows that the airplane market grows rapidly and becomes the global aviation market. As Turkish Airlines carried about 39 million passenger in last year, it expects to increase 46 million consumers in this year and 90 million by the end of 2020.

My Opinion

:From my point of view, the airplane market is growing stronger due to the fact that there are many passengers. However, each of one airline companies should try best to win keen competition as there are many rivals or competitors. Because consumers incline to choose the airline that provides best options and benefits completely. Anyway, not only Turkish Airlines will get profits by purchasing new airplanes, but also aircraft maker company, Boeing planes, is going to get enough profits by selling its products.

Article 7

Apple's Tim Cook says 'I'm sorry' to Chinese customers

This article comes from BBC news.

Summary

:Recently, Chinese consumers were angry at Apple's repair service of iPhone 4 and iPhone 4s. So the medias had focused on repair policies specifically for two weeks. For instance, the state broadcaster China Central Television criticized Apple about consumer rights and safety. This program, especially, accused Apple of failing to offer new replacement iPhones based on its policies. "Misunderstandings", a statement on Apple's China website, was interpreted to the meaning of "Apple's attitude was arrogant" for Chinese consumers. According to this conflict between Apple and its consumers, Apple boss Tim Cook apologized that, "We express our sincere apologies for any concerns or misunderstandings this gave consumers." Also Apple believed that this event would enhance communication with Chinese consumers.

My opinion

: From my point of view, I think that Apple reacted quickly because China is it's second-largest market. If Apple does not make close relationship with China, it would lose amounts of profits. That's why the communication between consumers and companies should be kept open with understanding both sides. Best of all, Apple should take responsibility to change consumer's service systems to sell more products as well as attract more consumers.

Article 6

China becomes world's second-biggest movie market

Summary

:China has become the world's second-biggest movie market by exceeding Japanese movie market. And it emphasizes its importance and existence as a key for Hollywood's moviemakers. According to the Motion Picture Association of America, Chinese box offices' revenues rushed about 36 % to %2.7bn in 2012. As Chinese government eliminated some restrictions on foreign films allowed to be screened, the movie market could increase the amount of revenue. Chinese box offices allowed additional 14 Imax or 3D films and more consumers inclined to buy tickets.

My opinion

:From my point of view, I think that China can have amount of potential to be an economic power if it tries to ease some of restrictions on foreign firms such as Facebook, Twitter, and other Internet uses. That's why China has become world's second-biggist movie market by removing some limitation. Chinese government should allow its people to contact with some foreign firms in order to expand their power. 

Article 5

'Marmageddon' over as New Zealand shops restock Marmite

March 20, 2013. This article comes from BBC news.

Summary

:As the earthquake crushed Christchurch, New Zealand, on February 2011, the only company that produce amount of marmite had no choice but to close its production completely.That's why consumers could not purchase that products anymore. However, marmite has returned to the supermarket in New Zealand after shortages compelled the factory to close its market. The Marmite company claimed that it scheduled to re-open, but it faced unexpected delay. Therefore, shortage caused many New Zealanders and even Prime Minister to have complaints. Unfortunately, some supermarkets in New Zealand were rationing supplies to two jars per customers in the face of high demand although the company said it would re-open the market.

My Opinion

:From my point of view, I think that it is a good decision that the Marmite company determine to re-open its factory. By producing more Marmite, the company and also consumers can get their profits. Especially, consumers are no longer to buy Marmite at the high price. It might take a long time for the Marmite company to produce amount of Marmite; however, it should try to solve the problem as quickly as possible. Producers, consumers and market owners should set an appropriate price for balancing economic.

Article 4

BMW sees 'most successful year' in its history

March 14, 2013. This article comes from BBC News.

Summary

:For BMW group, 2012 was the most precious and successful year in its history. The owner of the Mini and Rolls-Rpyce marques experienced great changing in their total profits and revenue. BMW producers mentioned that total group sales of 2012 increased 10.6% (1.84 million vehicles) from 2011's total group sales. The president of BMW said that he will target further sales volume growth in 2013 and reinforce a new record level for car production. Especially, Asia countries played an important role in increasing profits and revenues of BMW. Moreover, BMW sole more than 3000,000 vehicles in China in a single year for the first time.

My Opinion

:From my point of view, the economic condition of 2012 was not bad. Even though many people and media mentioned that economic had been decreasing and having difficulties, there were lots of consumers who willing to purchase those expensive cars. I think that gap between rich and poor has become more serious. Surprisingly, Chinese bought most of BMW vehicles in Asian countries. Only rich people bought those things instead of helping poor people. Also I can assume that there are many rich people in China and China has become powerful economic country gradually.

Article 3

China's manufacturing growth slows

March 2, 2013. This article comes from CNN and written by Simon Rabinovitch

Summary

:One of the most economical powerful nation, China, has suffered from economic problem. It's manufacturing sector grew slowly since 2013. The data shows that the official purchasing manger's index declined to 50.1 from 50.4 in January. It causes the harbinger of the decreasing of the pace of expansion of industrial activity. Even though China's economy has accelerated last year, the government concerns about a recover in inflation and even high property prices would lead Beijing into economic depression. Furthermore, China's central bank drained about $146bn from the economy in order to prevent in credit issuance through it's financial institutions in January. And several cities have begun to raise the cost of loans. Louis Kuijs, an economist with Royal Bank of Scotland, mentioned that the balance of consideration in the macroeconomics stance shifts. And the Chinese want to recover their manufacturing growth and also they expect one thing that new leaders, Xi Jinping and Lu Keqiang, play their roles as president and premier perfectly and effectively.

My opinion

:From my point of view, I think that Chinese government should have a best way to remedy the economic problem. Even though China is well-known for powerful country, it has suffered from it's manufacturing growth. Because Chinese manufacturing rate began to decrease gradually. This situation might cause the harbinger of huge economic depression. That's why Chinese expect one thing that their new leaders play as an important role in overcoming those problems.

Article 2

Tesco pledges to sell meat from 'closer to home'

Feb. 27, 2013. This article comes from the BBC News.

Summary
:The horsemeat scandal caused the harbinger of serious situation that consumers do not tend to buy meats in supermarket at all. Tesco, which is one of the largest British multinational grocery market, declared to bring meat products from "closer to home" and cooperate with British farmers effectively. Philip Clarke, an executive officer, and Environment Secretary Owen Paterson address the National farmer Union's conference. According to NFU toll, more than 78% of people incline to purchase British food in supermarket. However, farmers think that the horsemeat scandal will damage consumer confidence in the supply chain. Even though farmers have spent many years for ensuring British supply chain, the crisis gave unexpected result to them negatively. However, the horsemeat scandal can be a great opportunity chance for British farmers because most of consumers mostly want to buy meats of British farmers. Trade and relationship between British government, huge grocery markets, and British farmers should be balanced to meet appropriate price and run their business more effectively.

My Opinion
:From my point of view, I think that it is a quite right decision that Tesco develops trade relationship with British Farmers more and more. The horsemead scandal made consumers not to purchase those meats in the supermarket because they can't trust the quality of meat products anymore. However, Tesco tried to recover the broken trade of meats by contracting with British Farmers by showing verified products to consumers. It was really new opportunity for farmers to get their benefits as well as the business and the government.

Economics

Article 1

New York Times to sell Boston Globe

February 20, 2013. This articles comes from the BBC News.

Summary

:The New York Times company decided to sell the Boston Globe that it has owned in order to save their assets and to focus on its newspaper business. Even though New York Times tried to sell the Glob in 2009, it gave up by cutting costs and winning concessions among union trade. As the Times owns dozens of different newspapers, television and radio stations and even sport clubs, the president and officers determined to bring back their lost financial problems. Selling the Globe and the Telegram & Gazette helps the New York times to have only flagship or important newspaper. And the president of New York Times, Mark Thompson, mentioned that he is very proud of his association with the Globe and the Telegram & Gazette and this trade will cause many opportunities for people to get many jobs and get more benefits.

My Opinion

:From my point of view, the New York Times company determined to sell one of their newspaper to keep balance assets. Actually, it owns lots of different things such as television and radio station and sports clubs so that it has no choice but to lose benefits and wastes amounts of money. To earn more benefits and to focus on flagships newspapers, the new york times company made the best choice for reviving broken economy. Even though it sold some newspapers to other company, the new york times company can run their business more effectively without wastes.