econs is fun...!

hikes

2006-08-05T00:08:00.000+08:00

up up up!

looks like everyone's prediction is right....we're gonna see a general fare hike across all public transports...first it was taxis, then its the bus and mrt soon-to-be hike...now, even motorists are going to face a fare hike..on the ERP! with the ever increasing oil price, motorists will now have a bigger hole in their pockets..will they take it lying down?

http://www.channelnewsasia.com/stories/singaporelocalnews/view/223042/1/.html

choco!

2006-08-01T20:30:00.000+08:00

its choco party time!

i think its time to start growing fat (especially after army for guys), because of the new cadbury R&D outlet opening in singapore! hopefully we'll be the first to try out their new products...apparently this is also in line with the vision of turning singapore into a "vital food hub"...seems like singapore wants to become a hub for everything eh...o well...*cadbury advertisement song playing in the background...*

http://www.channelnewsasia.com/stories/singaporebusinessnews/view/222458/1/.html

ooo

2006-07-31T17:46:00.000+08:00

the US is being threatened...

times have changed..it used to be the US in the commanding position where everyone who did not comply to the desires of US would be threatened with sanctions and such..but venezuela has in fact reverted that position, putting US in a tight spot..look how econs and politics can go hand in hand...

http://www.channelnewsasia.com/stories/afp_world_business/view/222143/1/.html

singapore's growth

2006-07-26T21:58:00.000+08:00

biomedic industry paying off

looks like the biomedical industry that the government had been earnestly investing in has been showing good results over the past few years...it has certainly helped singapore in sustaining its growth rate in more than one way..

http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/221287/1/.html

hand signals

2006-07-25T17:45:00.000+08:00

Look ma, no hands...

remember those hongkong drama serials about business and stock exchange (like chuang shi ji), where we can see all those men and women in red holding 5-6 phones and giving hand signals to a sea of people? well, those would be history in singapore...for electronic systems will replace the traditional practices of hand signals and stuff..

http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/221114/1/.html

more updates on IR

2006-07-25T17:36:00.000+08:00

lets have a look at one of the IR designs..

i apologize for my previous post abt the IR... Singapore has given the first project over to LA Sands, with a whopping S$5billion expected to be pumped for the building of the casino... however, it is the 2nd resort that is currently undergoing bidding now..the winner will be announced only in october...in this article we will see the economic benefits of having casinos, as well as a preview of what the first of the two resorts will look like...

http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/221081/1/.html

US problems..

2006-07-19T22:58:00.000+08:00

oh no big brother's going down!!!

with the threat from the former eastern powers, the US economy has been greatly threatened and is now facing many problems such as rising interest rates and the possiblility of a not-so-ideal inflation rate. the US govt has much to do if they would want to stay competitive and prolong its current status...read all abt it:

http://www.channelnewsasia.com/stories/afp_world_business/view/220134/1/.html

IR bidding woes..

2006-07-19T22:49:00.000+08:00

and the bid for the IR continues...

so we all well know that marina bay is going to be converted into the Integrated Resorts...many big shots have tried to come up with proposals to win this bid, which closes on the 10 oct this year..lets take a look at what do they have to offer:

Kerzner-CapitaLand:

http://www.channelnewsasia.com/cna/cgi-bin/search/search_7days.pl?status=&search=integrated%20resort&id=218651

Las Vegas Sands:

http://www.channelnewsasia.com/cna/cgi-bin/search/search_7days.pl?status=&search=integrated%20resort&id=217029

oh and btw, for those who are aspiring to work in the trade and service industry arnd the IR area....

http://www.channelnewsasia.com/cna/cgi-bin/search/search_7days.pl?status=&search=integrated%20resort&id=217597

goooo korea?!

2006-07-16T22:02:00.000+08:00

Its a bird..its a plane..no its a missile?

we know that over the past few weeks pyongyang has shown much attitude to the UN over its defiance and uncooperative actions when it shot missiles into the sea...see how things are going on in the region, and its possible outbreak of violence in the region... also see what sanctions can do to N korea if they do implement it...

mahathir?!

2006-07-14T18:12:00.000+08:00

All the fuss with malaysia..

with all the fuss going on about the bridge, mahathir, water talks, proton saga etc etc..it seems that the criticisms for the new malaysian government will never end..(and strangely enough most of this cristicisms is from the same person..) check this report, together with all the other accompanying links...

http://www.channelnewsasia.com/stories/afp_asiapacific/view/216197/1/.html

oh and btw, if you guys have any interesting links, can be abt anything, or class photos, just send it to me..i'll try my best to update the blog...=D

air fares levi

2006-07-11T18:51:00.000+08:00

Air Fares and You

http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/218437/1/.html

this article is all about what we've learnt so far..PeD, taxes, PSBR (sort of...), and other stuff...quite interesting...and s.korea's intentions are even more interesting...=D

taxi fair hike!

2006-07-11T18:46:00.000+08:00

And the prices rise again...

http://www.channelnewsasia.com/stories/singaporelocalnews/view/218304/1/.html

an interesting article about the current hike in taxi prices...a good way to exercise your math in our lives!

Japan's recovering economy

2006-07-11T18:38:00.000+08:00

What's going on in Japan

http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/218403/1/.html

all that you need to know about the current happenings in Japan, about their readiness to increase interest rates despite the many wrong economic decisions that BoJ has made...

by the way, take a look at our country's factfile...=D

https://www.euromonitor.com/factfile.aspx?country=SG

mark's group

2006-04-23T17:15:00.000+08:00

2nd Blog Assignment
- done by Mark Tay, Mak Wen Han, Cheryl Kee

1.

REASONS FOR THE FALL IN CONSUMER SPENDING:
- The Brits are more keen in saving as mps > mpc(due to high interest rates)Hence, Consumption falls as the people have less money to spend
High interest rates discourage people from borrowing credit to spend on consumer goods Hence, Consumption falls
- Expectation that 2006 would not be a good/stable economic year (2.5%-3% changed to 2%-2.5% => reflects government’s lack of confidence in the economy)Hence, the Brits are more thrifty, Savings increase while Consumption decrease
- Expectation of the property Market to crash (when it crashes, the economy would become unstable and a crisis would occur) has caused the Brits to become conscious of their spending habits and hence, they spend less with the intention of “saving for a rainy day” Hence, Consumption falls
- The UK is affected by the European slowdown, thus the UK economy is sluggishHence, Brits are unwilling to spend, causing Consumption to fall
- VAT rates are too high (17.5%), bearing in mind all the other factors mentioned above, the Brits are even more unwilling to spend as they feel that they may need the money in the near futureHence, more Saving and less Consumption

PROMOTION OF GREATER GROWTH IN THE ECONOMY:
- Undertake expansionary monetary policieseg. allow Money Supply to increase (sale of bonds) to reduce interest ratesReduction in interest rates would bring about an increase in Consumption and Investment as people can borrow more and are relatively richer than before, hence increasing their spending powerOn the whole, AE increases through the multiplier process. Also, the increase in the sale of bonds would increase Government expenditure and through the multiplier process, the AE would rise
- Decrease indirect taxes, lowering of VAT rates would allow prices to become relatively cheaper, hence encouraging more Consumption and a greater AE through the multiplier process
- Stabilize housing priceseg. increase the tax duty on the transference of property [4% for £500 000 and above](Stamp Duty Land Tax)the increase in SDLT would discourage people from buying and selling property at the moment, allowing the economy to stabilize
- Leave the EU ???

2. using economic analysis, explain how a “fall in consumer spending” and “high oil prices” will affect the UK economy.

A fall in consumption spending will cause aggregate expenditure to fall, thus creating a deflationary gap, since AE = C + G + I + (X-M). Due to the interaction of the multiplier, the economy will suffer badly if the drop in consumption (i.e. consumer spending) is significant. As consumption falls, income will fall too, since less consumers are buying the goods produced by other people. With a fall in demand, firms will fire less productive workers or reduce wages in a bid to lower costs and maintaining profit margins. With a fall in income, consumers will spend less. This results in a vicious cycle that will not be stopped if there is no government intervention to increase consumer spending.

Due to the extreme importance of oil, a rise in oil prices will affect the economy adversely. Since oil is needed for electricity, the production of nearly all goods requires oil as a resource. Therefore, when a rise in oil prices happens, the prices of all goods increases due to rising costs. As a result, demand will fall and so does consumption, which leads us to the earlier point made previously, and the vicious cycle resumes. Therefore, the UK economy will suffer.

3. Explain the impact of a fall in interest rates on the national income of the UK economy.

At the moment, UK business and consumer confidence is rather weak. Its interest rates are anticipated to remain at 4.5% until the end of the year, with possibilities of a rate cut due to the fall of the consumer price index inflation back to 2%. There has also been a hike in oil prices. In addition, there is a greater tendency for British consumers to save rather than spend ( i.e. high marginal rate of savings (mps)).

Theoretically, a fall in interest rates would lead to greater consumption and investment. These form part of the aggregate expenditure. With an increase in aggregate expenditure, there will be a multiplied increase in national income, contributing to economic growth. In fact, the Ernst & Young Item Club has predicted G.D.P. to grow by 2.3% this year.

However, interest rates may not be a determining factor in consumption or investment trends. There are other factors involved, e.g. political stability, and UK business and consumer confidence is already weak. As a result, even with a fall in interest rates, investors and consumers may not choose to increase investments or consumption. With a decrease in the inflation rate, the real value of money income increases. However, the mps of the country is rather high, i.e. an increase in income will cause a more than proportionate change in the amount of savings, and this would not cause much of a change in consumption.

In conclusion, the impact of a fall in interest rates on the national income of the UK economy is uncertain. Theoretically, it would increase the national income. However, there are other factors which may determine the amount of investment and consumption of a country and in turn have a different result on the national income. A survey would have to be done on the UK economy in order to see the value placed on interest rates of the population.

sow wk 5

2006-04-13T15:10:00.000+08:00

Scheme of Work - Week 5

Tutorials:
MCQ TYS - 13.4
MCQ TYS - 13.5

Assignments:
1. Essay Outline: refer to notice board
2. Prepare for Essay Test
3. Project due in Week 6

sow wk 4

2006-04-12T21:22:00.000+08:00

Scheme of Work - Week 4

Tutorials:
1. Inflation worksheet
2. MCQ on inflation (13.2, 13.4)

Assignments:
1. DRQ pg 402

Tests:
1. Case study test (thursday, 13 april)

mark's group

2006-04-12T05:35:00.000+08:00

2nd Article

mark, wenhan and cheryl...pls be reminded that ur group is up nxt to do the following article...i gave a copy of the article to mark tay...if u need any more info, go find him, mr ang or me..

--------------------------------------------------------------------------

Economy 'to make slight recovery'
Press association
Monday January 23, 2006

The UK economy will stage a modest recovery this year but is still not "out of the woods", an influential forecasting group has claimed.

The Ernst & Young Item Club, which bases its predictions on the Treasury's model of the economy, predicted GDP growth of 2.3% this year following a rate of 1.7% during 2005.

On another positive note, it said Consumer Price Index (CPI) inflation had fallen back to the Government's 2% target much sooner than "anyone had dared hope", leaving the door open for lower interest rates if necessary.

However, the group added in its winter forecast that there were still concerns over long-term stability.

Peter Spencer, chief economic adviser to the Item Club, said: "We are certainly not out of the woods yet." Growth is still well below par – just hitting the EuroZone average – and with consumer spending dropping and the pressure piling on exports to take up the slack, we could be in for a bumpy 2006."

The predictions were in line with those of Chancellor Gordon Brown, who recently cut his forecast for growth in 2006 from between 2.5% and 3% to a range of 2% to 2.5%.

Factors such as weaker consumer spending and higher oil prices have been blamed for the slower performance of the UK economy in recent times.

The report said the pick-up would be fuelled by the strength of houses, equities and other assets and the fact that many retailers seems to have had a better Christmas than predicted. Mr Spencer said he believed a fall in the pound would help boost growth in exports and investment, underpinning a "modest revival" in UK exports this year. This should help balance the weakness of consumer spending as consumers continue to save rather than spend.

He added: "The outlook is still very much uncertain. UK business and consumer confidence remains fragile. We expect interest rates to remain at 4.5% until the end of the year, but another rate cut cannot be ruled out."

Cheaper pump prices last month drove inflation back to the Bank of England’s 2% target in December – strengthening the case for the Bank to cut the cost of borrowing, according to many analysts.

http://www.guardian.co.uk/uklatest/story/0,,-5564088,00.html
copyright press association, all rights reserved

SoW wk 3

2006-04-11T19:59:00.000+08:00

Scheme of Work - Week 3

Assignments

1. Essay Outline
2. MCQ Chapter 13.2 & 13.4
3. DRQ (TYS pg 392 & 394)
4. DRQ (TYS pg 392 & 394)

Tutorials

1. MCQ (Inflation) Ch 13.2 (TYS)
2. DRQ TYS Pg 392
3. MCQ (Inflation) Ch 13.4 (TYS)
4. MCQ Test

scheme of work - wk8

2006-02-19T20:11:00.000+08:00

Scheme of work - Week 8

Complete Chapter 12 of TYS
Complete Revision for CT1
Theory of Income & Unemployment (must be able to answer all 9 questions)

yea sry for the long absence in updating...didnt have much spare time to update..i'll try to update it at least once a week...ya..anyway..CTs are just arnd the corner..so everyone work hard k? gambatte! =D

essay

2006-01-22T07:37:00.000+08:00

Essay Question

hey all..sry for being so last minute.. pls prepare this question for discussion with mr.ang

"Cheap Indonesian labour is destroying jobs in the US textile industry. It is essential to impose tariffs on these goods."

a) Using relevant economic concepts, explain why Indonesian workers may earn less than their US counterparts.

b) To what extent would the imposition of tariffs in these circumstances justified?

oh yea..and dun forget that we'll have 2 tests this coming week...

monday - essay test on international trade
friday - mcq test (J1 topics + international trade)

thats all for now...ja~

reg's group

2006-01-17T21:29:00.000+08:00

First Response

What are the benefits of Free Trade?

Free trade refers to the exchange of goods and services between two parties. Free trade brings about some benefits. As countries trade, it will also mean that consumers will have a wider range of products. They are now, able to enjoy greater variety of goods and services. When companies expand their output to cater for the rest of the world, they will also enjoy economies of scale that will now, allow them to lower the price of their products. Besides this, competitions from foreign companies will thus, keep domestic prices low. International trade will also foster better ties between countries.

Why are some countries protecting their industries?

Countries are protecting their industries to prevent negative impacts that foreign companies might cause. Firstly, industries such as infant industries require protection during their early stages of development so that they can develop and compete in the future. Infant industries also tend to lose out in face of more established foreign competitiors. In addition, countries have to protect their industries from being driven out by foreign firms through dumping. Dumping would lead to foreign control of the domestic market and thus, also causing a reduction in consumers' surplus.

Objective of trade summit

Countries such as South Korea have been enjoying subsidies by the govt. (e.g. farming). Subsidies provided by the government would lower producers' cost of production. This will allow them to export their goods at competitive prices, threatening other countries' home mkt. Developing countries that do not enjoy such benefits felt unfairly treated. hence leading to the protest in Hong Kong.

The objective of the trade summit is to resolve the above problem between the two parties by peaceful talks over the course of six days, addressing the issues raised by the different countries.

Has it achieved its objective?

It has met its objective of addressing only certain issues. Some problems still exist due to the different takes on the terms of trade.

Done by: Group 1
Regina Chan
Wong KenLoong
Jonathan Tan

first assignment

2006-01-12T17:35:00.000+08:00

Reminder

Our first article:

Tense stand-off at trade summit

regina's group: please be reminded that your group will have to send me your evaluation before Tuesday...(preferably in the weekends thx..)

the next link is for us to read up..given by mr.ang ...make sure u at least read smth ok..=D

In depth news on world trade

Assignments

2006-01-10T21:58:00.000+08:00

Assignments

- Econs TYS ; chapter 14

- Tutorial ; DRQ

- Term 1 project ; FTA agreements
by 8th Feb, week 6!!

OUR BLOG IS UP!!!

2006-01-10T00:53:00.000+08:00

OUR BLOG IS UP!!!

hey ppl...this is our new econs cum class blog! woohoo! =D
pls feel free to comment on it.. if its too gay or smth...
i'll try my best to improve the layout of the blog...
so until mr.ang tells me what to do..
this blog will remain quite empty...=D
ja~

jy