Internet Exercises

1. Comparing Economic Systems

Instructions

You have just been hired in the marketing division of a large company that produces toys. The products are typically sold through large retail store chains. The Vice President for Marketing has assigned your first project. She has asked you to conduct preliminary research to help develop a strategy for entering Mexico and China with the company's products. Knowing that you are new, she suggests that you begin by visiting the CIA World Factbook Web site. You can get there by following the link below.

CIA World Factbook http://www.odci.gov/cia/publications/factbook/index.html

Answer the following questions after finding information about Mexico and China:

1. Where is the country located and how large is it in area?

2. What is the population? Since your products are obviously targeted to younger consumers, how many people are under the age of fifteen?

3. Is the economy market-based or centrally planned?

4. What is the GDP per capita?

5. What is the unemployment rate?

2. Exploring Demand and Supply

Instructions

In the United States and other market-oriented countries, the distribution of goods and services is determined by the interaction of demand and supply. An understanding of the demand and supply model is very important for anyone interested in business.

Follow the link below to visit the Explorations in Economic Demand Web site. Read about demand and be sure to respond to the discussion questions as you go. When you are through, follow the link to visit the Explorations in Economic Supply Web site. Again, read about supply and be sure to respond to the discussion questions along the way. After exploring demand and supply, return to answer the questions below.

Explorations in Demand http://ecedweb.unomaha.edu/Dem_Sup/demand.htm

Explorations in Supply http://ecedweb.unomaha.edu/Dem_Sup/supply.htm

1. In the textbook, the handmade rug is used to illustrate demand and supply. Describe three reasons why the price of handmade rugs might increase.

2. Using a demand and supply diagram, show the impact of an increase in input prices (e.g. wages) on the price of handmade rugs.

3. The market for blue jeans was used as an example on the Explorations in Demand and Supply Web sites. Would you characterize the blue jean retail market as perfectly competitive, monopolistically competitive, oligopolistic, or monopolistic? Explain why.