3
Evaluate macroeconomic policy and its effects on the firm.
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6
7
8
Demonstrate an understanding of competitive advantage in a global market.
Have the capability to present or evaluate arguments for and against government intervention in international markets.
Discuss and explicate basic issues concerning government intervention, emerging global technologies, and ethics in leading organizations in different cultures.
Reinforce fundamental concepts of supply and demand within international markets
Find your own article (to be done individually) with which to construct a supply chain around a market which is threatened by an event reported in the article. ALL ARTICLES
MUST HAVE APPEARED IN THE MEDIA AFTER THE FIRST DAY OF CLASS
DURING THIS SEMESTER.
). After choosing the event, organize your paper according to the following outline:
A. On the answer sheet (see below ((you can lift that right off these instructions and put it into Word Perfect OR powerpoint)) ) set up the supply chain that will show how your market is threatened by the event you have chosen.
(a) Carry the supply chain all the way down to the consumer and all the way back to the original resource (land, labor, or capital). You should be able to trace one product or service through the whole chain. Each additional market in the vertical chain will add another participant. Circle the names or description of each of these participants or markets that you can find in the article.
(b) There should be at least three participants; (i) the seller in the first market,
(ii) the buyer in the first market who is also the seller in the second market, and
(iii) the buyer in the second market. Who pays the money should determine the buyer and who provides the good or service in a transaction should be considered the seller. Each additional market in the supply chain will add another participant.
(c) Each of the participants must take title to the good or service and each market must have a buyer and seller who make an arm's length transaction.
B. In the mounted article you turn in UNDERLINE (not more than a sentence) mention of the one single event that affects the entire supply chain.
(a) In the market where the event first has its impact, circle the letter of the appropriate shift on the answer sheet:
"A" represents a leftward (upward) shift in supply.
"B" represents a rightward (downward) shift in supply.
"C" represents a leftward (downward) shift in demand.

"D" represents a rightward (upward) shift in demand.
(even if a single event affects several markets, define the event narrowly enough to have its initial impact in only one market- remember ceteris paribus!!! Sometimes, if the initial event involves a specific participant in your chain there may be two markets initially impacted when the participant is both a buyer in one market and a seller in the immediate downstream market.)
(b) To indicate the vertical impacts of the initial event, place "X"'s on the
C. answer sheet over the appropriate letter in the rest of the markets in your supply chain. These X's should be placed in accordance with the rules for shifts of derived demand and supply shifts due to changes in supply determinants (i.e. resource prices and availability). Every market must have a shift that is circled or have an X.
On your answer sheet describe each market as monopoly, oligopoly, monopolistic competition, perfect competition, monopsony, oligopsony, bilateral monopoly, or bilateral oligopoly. Support your description first by deciding:
(a) What aggregation you are examining? Industry? Product? Product line?
Generally this is implied by the name of the item in your study.
(b) What is the size of the market? Decide if it is international (“I”), national (“N”), regional (“R”), statewide, or local (“L”) and circle the appropriate category on the answer sheet. Pertinent evidence includes the amount and distance in which goods are shipped, the extent of advertising (national T.V.? Local T.V.? Radio? National newspaper? local newspaper? etc.), mobility of buyers, availability and economics of transport, information on the distance between competing firms, and the location of firms. Generally try to pick the widest market boundaries that evidence can possibly support. Circle the letter of the appropriate market size on the answer sheet
(c) Is there product differentiation? Circle “Y” if there is and “N” if there isn’t. This determines whether there is monopolistic competition or perfect competition for a competitive market.
(d) How many buyers and sellers there are in the market area? Circle on the answer sheet “m” if there are many, “f” if there are few, and “1” if there is only one firm in the market place. Do this for both the buyers and sellers in a market. Here's a table to keep it clear:
Number of: Monopoly
Buyers Many
Sellers One
Oligopoly
Competition
Many Many
Few Many
Monop sony
One
Oligopsony
Few
Many Many
Bilateral
Monopoly
One
One
Bilateral
Oligopoly
One/few
One/few
D. Name and briefly describe one action that a firm could take to counter the threat that you have chosen. On a separate answer sheet redraw the vertical chain and repeat step B (except don’t underline anything more in the article) to show how your firm's action would be transmitted through each market in the vertical chain, ceteris paribus. In some cases your action may change the structure of the vertical chain or the market power in the markets.

E. Name and briefly describe the best counteraction that all of the firms in your market could take together to counter the threat to your market. Again use a separate answer sheet and repeat step B.
F Name and briefly describe one counteraction that the government and the firms in your market could together take in an exercise of "industrial policy" to counter the threat to your market. For the final time use yet another, separate answer sheet and repeat step B.
(a) If you are recommending more government intervention, determine what kind of market failure would justify government involvement.
(b) If you are recommending less government intervention, determine what side effects of government intervention would be avoided. Also describe how the market would perform better without government intervention.
G. Choose which of the three policies (D, E, F) would be the most desirable policy from your market standpoint. Explain your answer.
H. Is the market that is threatened fast growing, slow growing, or negatively growing?
Participants Markets
I=international,N=national,
R=regional, L=local
Seller
Product (m=many,f=few,1=one) Type of Market SHIFTS OF:
Differentiation SELLERS BUYERS (eg. Monopoly, SUPPLY DEMAND
(Y= yes, N=no) competition,etc) Left Right Left Right
Y N m f 1 m f 1 ___________
A B C D
Extent: I N R L
Buyer
Seller
Y N m f 1 m f 1 ___________
A B C D
Buyer
Seller
Extent: I N R L
Y N m f 1 m f 1 ___________
A B C D
Buyer
Extent: I N R L
Seller
Y N m f 1 m f 1 ___________
A B C D
Buyer Extent: I N R L
Seller
Y N m f 1 m f 1 ___________
A B C D
Buyer
Seller
Extent: I N R L
Buyer
Y N m f 1 m f 1 ___________
A B C D
Extent: I N R L
Circle one for each market
Circle One Circle Circle Write down Circle One of the
One One one market four possibilities
Type

ALL ARTICLES MUST HAVE APPEARED IN THE MEDIA AFTER THE FIRST
DAY OF CLASS DURING THIS SEMESTER. Turn in for this assignment the word file containing the assignment. It should be entitled
“exi06S lastname Assn04” and send it with the subject line under the same name in WEBCT.
EXAMPLE: (find Example at cte.rockhurst.edu/tanseym at EXECFEL under “Hw #4
Examples”