Chapter ten - Industrial Organization in Canada
Link: http://www.canada.com/technology/Microsoft+unveil+free+anti+virus+software/1685913/story.html
Summary
This article is about how Microsoft is about to release a free anti-virus service, named Morro, for personal computers. Currently, Microsoft is testing an an early version of the product with its own employees while consumers are anticipating for the newly released trial version that would be available through Microsoft's website. Investors are also observing the service which may be a competition with other anti-virus companies such as Symantec and McAfee. However, Symantec and McAfee do not consider Morro as a threat to their sales. This product would include features such as encryption, firewalls, password protection, parental controls, and data backup. It will have also protection against malicious software like viruses, spywares, rootkits, and trojans.
Connection
The connections between chapter ten and this article is the focus on microeconomics and Microsoft. Microsoft is considered a corporation and they have made a decision on creating a free anti-virus service which would have an impact on other anti-virus companies' sales. This competition could be consider as oligopoly because there are many anti-virus services that are very similar and performs the regular tasks such as firewalls and malicious software protection. The price of Microsoft's product is "free" which may cause other companies to change price in order to keep up with the sales because Microsoft is a corporation which is highly trusted and many consumers may think that this new product is better, taking into consideration that it is free, from a well known corporation, and safe on Microsoft's official website.
Reflection
Although Symantec and McAfee do not think that Morro would have an effect on their sales, I think there will be at least a few people who may choose this service over the others. I personally would try Morro because it is free and it is from a safe site. There may be basic protections for a computer only but it is good enough for most teenagers, including myself, who use the computer for research, homework, MSN messenger, hotmail, and music. Also, most email service already include an auto junk-mail block or a warning message for emails that maybe harmful. However, if Microsoft's new service is a success, their competition may decrease their price and do advertisement that would differentiate their product's special features in order to gain their customers back.
Thursday, June 11, 2009
Monday, March 30, 2009
Don’t throw money down the grave
Chapter seven - Money and the Canadian Banking System
Link: http://www.financialpost.com/personal-finance/family-finance/story.html?id=1006638
Summary
This article is about how Canadians, after buying a house and sending their children to college, dying might be the most costly thing they will ever do. Nicole Renwick, execute director of the Memorial Society of British Columbia estimated that the average funeral cost was $10,000.
Arranging a funeral for loved ones could be highly stressful. However, most people want to provide loved ones with the best funeral possible and also not wanting to be cheap. Funeral experts recommend that preplanning your funeral would get rid of their families having to worry and deal with it later on.
Connection
The connection between this article and chapter seven is the demand for money. It is essential to have money so that people can carry on daily business. This require for money is referred to as the transaction demand. People who worry about preparation of their funeral would have a higher demand for money because they have to also support their families such as education for their children. The category precaution, under the list of demand for money, is also a factor that is covered in this article. The precautionary demand for money may happen if a loved one dies and they did not pre-arranged their own funeral. Their family members would have to pull out the money they kept ready for unexpected circumstances and emergencies to cover up the expenses for the funeral.
Reflection
Although I have never experienced planning a funeral before, but I believe that it is very stressing. I see my aunts and uncle who are already pre-arranging their own funerals and also helping my 90 year old grandma pre-arranging hers. I am still in a young age so my income is low. The amount of money that i hold for precautionary purposes is not as much as what my parents have. I do not have as much responsibility as what most adults have and so i would use most of my income for transactions and the rest for precautionary purposes.
Link: http://www.financialpost.com/personal-finance/family-finance/story.html?id=1006638
Summary
This article is about how Canadians, after buying a house and sending their children to college, dying might be the most costly thing they will ever do. Nicole Renwick, execute director of the Memorial Society of British Columbia estimated that the average funeral cost was $10,000.
"The average cost of a funeral service in eastern Canada is $3,075. In central Canada, professional services can exceed $4,000. In the West, the average cost is $2,875."
Arranging a funeral for loved ones could be highly stressful. However, most people want to provide loved ones with the best funeral possible and also not wanting to be cheap. Funeral experts recommend that preplanning your funeral would get rid of their families having to worry and deal with it later on.
Connection
The connection between this article and chapter seven is the demand for money. It is essential to have money so that people can carry on daily business. This require for money is referred to as the transaction demand. People who worry about preparation of their funeral would have a higher demand for money because they have to also support their families such as education for their children. The category precaution, under the list of demand for money, is also a factor that is covered in this article. The precautionary demand for money may happen if a loved one dies and they did not pre-arranged their own funeral. Their family members would have to pull out the money they kept ready for unexpected circumstances and emergencies to cover up the expenses for the funeral.
Reflection
Although I have never experienced planning a funeral before, but I believe that it is very stressing. I see my aunts and uncle who are already pre-arranging their own funerals and also helping my 90 year old grandma pre-arranging hers. I am still in a young age so my income is low. The amount of money that i hold for precautionary purposes is not as much as what my parents have. I do not have as much responsibility as what most adults have and so i would use most of my income for transactions and the rest for precautionary purposes.
Friday, March 6, 2009
'Significant sacrifices' in tentative deal with GM: union
Economics Chapter 6
http://www.cbc.ca/canada/story/2009/03/08/caw-gm.html
Summary
This article is about General Motors seeking financial assistance from the federal and Ontario government by discussing a tentative contract agreement with them. The tentative contract agreement includes "significant sacrifices" that the union must agree to, to ensure that the federal government would grant financial assistance. Canadian Auto Worker president, Ken Lewenza, said that the company would surely fail if the government doesn't provide emergency assistance. Some of the conditions were the federal government's demand of contract cuts, freeze both wages and pensions, cut paid vacation time, and make current workers and pensioners pay more for health and insurance benefits. In the previous month, GM planned a restructuring plan that would drop its Canadian workers to 7,000 and request as much as $7 billion from the federal and Ontario governments.
Connection
The connection between this article and chapter six is the circular flow of money. Since the economy is really poor right now and General Motors is having a hard time trying to stay away from bankruptcy, GM is seeking for help from the government. If the federal government agrees to spend money to help GM, then the automaker would rise again. This could possibly make GM have more workers again, but wages may not increase because of the condition of freezing wages. GM's source of investment fund in this case is borrowing money from the government. GM can pay payments to other businesses which would, in turn, pay their payments to households. This is the injection to the circular flow of money.
Although General Motors may rise again, income of the workers would not increase because of the contract. Even if the wages go up, households would less likely increase their spending because of how the economy is today. Saving money by the households would reduce the money in the circular flow. GDP would decrease because savings would be high.
Reflection
GM is in a very serious situation right now because they're at the point of asking for financial assistance from the government. Employees have very less benefits because the condtitions affect them heavily. They're working so hard to maintain the business from collapsing and yet their wages and pension must freeze. I think if GM falls, everyone would partially fall as well because us, as consumers, would lose a company that can produce fuel-saving automobiles.
http://www.cbc.ca/canada/story/2009/03/08/caw-gm.html
Summary
This article is about General Motors seeking financial assistance from the federal and Ontario government by discussing a tentative contract agreement with them. The tentative contract agreement includes "significant sacrifices" that the union must agree to, to ensure that the federal government would grant financial assistance. Canadian Auto Worker president, Ken Lewenza, said that the company would surely fail if the government doesn't provide emergency assistance. Some of the conditions were the federal government's demand of contract cuts, freeze both wages and pensions, cut paid vacation time, and make current workers and pensioners pay more for health and insurance benefits. In the previous month, GM planned a restructuring plan that would drop its Canadian workers to 7,000 and request as much as $7 billion from the federal and Ontario governments.
Connection
The connection between this article and chapter six is the circular flow of money. Since the economy is really poor right now and General Motors is having a hard time trying to stay away from bankruptcy, GM is seeking for help from the government. If the federal government agrees to spend money to help GM, then the automaker would rise again. This could possibly make GM have more workers again, but wages may not increase because of the condition of freezing wages. GM's source of investment fund in this case is borrowing money from the government. GM can pay payments to other businesses which would, in turn, pay their payments to households. This is the injection to the circular flow of money.
Although General Motors may rise again, income of the workers would not increase because of the contract. Even if the wages go up, households would less likely increase their spending because of how the economy is today. Saving money by the households would reduce the money in the circular flow. GDP would decrease because savings would be high.
Reflection
GM is in a very serious situation right now because they're at the point of asking for financial assistance from the government. Employees have very less benefits because the condtitions affect them heavily. They're working so hard to maintain the business from collapsing and yet their wages and pension must freeze. I think if GM falls, everyone would partially fall as well because us, as consumers, would lose a company that can produce fuel-saving automobiles.
Tuesday, February 24, 2009
EI roll jumps 16.2 per cent in a year
Economics Chapter 5
Link: http://www2.canada.com/topics/technology/news/gizmos/roll+rises+cent+december/1323501/story.html?id=1323501
Summary
Because of the economic downturn, Statistics Canada said that the number of Canadians receiving regular employment-insurance benefits rose up to 16.2% in December from a year earlier. In December 2008, EI benefits rose to 538, 180 from December 2007 of 463, 000, and analysts are expecting more depressing employment news coming in the early 2009. Canada lost 34, 400 jobs in December, followed by a number of 129, 000 in January and all these jobs are mostly full time positions. The unemployment rate pushed to 7.2% since December. All provinces and territories in Canada are seeing an increase in EI beneficiaries, especially B.C. at 33.2%, Alberta at 30.3%, and Ontario at 29.6%. Statistics Canada is planning to report fourth-quarter GDP figures next week.
Connection
Link: http://www2.canada.com/topics/technology/news/gizmos/roll+rises+cent+december/1323501/story.html?id=1323501
Summary
Because of the economic downturn, Statistics Canada said that the number of Canadians receiving regular employment-insurance benefits rose up to 16.2% in December from a year earlier. In December 2008, EI benefits rose to 538, 180 from December 2007 of 463, 000, and analysts are expecting more depressing employment news coming in the early 2009. Canada lost 34, 400 jobs in December, followed by a number of 129, 000 in January and all these jobs are mostly full time positions. The unemployment rate pushed to 7.2% since December. All provinces and territories in Canada are seeing an increase in EI beneficiaries, especially B.C. at 33.2%, Alberta at 30.3%, and Ontario at 29.6%. Statistics Canada is planning to report fourth-quarter GDP figures next week.
Connection
The connection between chapter five and this article is Statistics Canada providing us information on unemployment rate and employment-insurance benefits by using the labour-force survey. Regular EI benefits is defined as a type of benefit that is available to people who lose their job through no fault of their own. In this case, the unemployment rate is increasing due to people getting laid off because of the economic depression. On page 157 in the Economics textbook, a graph showing the unemployment rates of Canada in percentage through 1966-2002 is presented. It reveals that in the years 2000-2002, the percentage is slowly increasing and as expected by analysts, it is.
Reflection
Judging from the graph on page 157 provided by Statistics Canada, I, too, believe that the unemployment rate of Canada would increase in the next year or too. It's very frustrating how I see more people on the street with signs in the middle of the road saying "Got laid off, need money". Because of this problem, it causes further problems such as more homeless people on the streets. I even have two members of my family experiencing unemployment even though they have been working in the company for more than 10 years. However, with the 2010 event coming up, job opportunities may increase because of this worldly-wide attraction.
Wednesday, January 21, 2009
Canadian student debt hits $13B
Economics Chapter Four
Link: http://www.theprovince.com/Business/Canadian+student+debt+hits/1202312/story.html
Summary
This year, about 360 000 students are carrying loans from the federal government, provincial government, banks, and also family. The CFS or the Canadian Federation of Students calculated that about $13-billion is owed to the Canada Student Loans Program, a program organized by the federal government. Although this figure is a huge amount that the federal government is preparing, the CFS is still hoping that the federal government's budget will still have money to make education a more reasonable price. Many students are being dragged down by thousands of dollars of dept, even when the economy is on its downturn. At this point, the CFS believes that the federal government should use post-secondary education to help with the federal government’s economic recovery plan because they can help students get the necessary training with affordable education so that Canada can shift to a “knowledge-based economy”.
Connections
The connection between chapter four and this article is the education function in the federal expenditure. This Post-secondary education problem is having a huge impact on education spending and also on top of the economic recession, the CFS pointed out four direct investments that they want from the federal government:
- raising the Canada Social Transfer to provinces to $1.2 billion to help reduce debt and tuition fees
- increasing support to aboriginal students by at least $200 million
- increasing funding to graduate students by $100 million
- doubling the budget for the Canada Summer Jobs program to about $200 million
These additional investments will definitely have an influence over the millions of dollar figure on the education expenses and possibly other expenses such as employment, and transportation aswell.
Reflection
I think if Canada invests on education, it would definitely help the economy. It would benefit all students in Canada and also create a better image for Canada's future by enhancing the knowledge of citizens. Although these investments would have a great impact on the million dollars of education expenses, it would be worth a try because outer countries would view Canada's education as more beneficial and could possible increase international students in Canada.
Link: http://www.theprovince.com/Business/Canadian+student+debt+hits/1202312/story.html
Summary
This year, about 360 000 students are carrying loans from the federal government, provincial government, banks, and also family. The CFS or the Canadian Federation of Students calculated that about $13-billion is owed to the Canada Student Loans Program, a program organized by the federal government. Although this figure is a huge amount that the federal government is preparing, the CFS is still hoping that the federal government's budget will still have money to make education a more reasonable price. Many students are being dragged down by thousands of dollars of dept, even when the economy is on its downturn. At this point, the CFS believes that the federal government should use post-secondary education to help with the federal government’s economic recovery plan because they can help students get the necessary training with affordable education so that Canada can shift to a “knowledge-based economy”.
Connections
The connection between chapter four and this article is the education function in the federal expenditure. This Post-secondary education problem is having a huge impact on education spending and also on top of the economic recession, the CFS pointed out four direct investments that they want from the federal government:
- raising the Canada Social Transfer to provinces to $1.2 billion to help reduce debt and tuition fees
- increasing support to aboriginal students by at least $200 million
- increasing funding to graduate students by $100 million
- doubling the budget for the Canada Summer Jobs program to about $200 million
These additional investments will definitely have an influence over the millions of dollar figure on the education expenses and possibly other expenses such as employment, and transportation aswell.
Reflection
I think if Canada invests on education, it would definitely help the economy. It would benefit all students in Canada and also create a better image for Canada's future by enhancing the knowledge of citizens. Although these investments would have a great impact on the million dollars of education expenses, it would be worth a try because outer countries would view Canada's education as more beneficial and could possible increase international students in Canada.
Thursday, November 20, 2008
'Applause' for B.C.'s carbon tax at California speech
Economics Chapter Three
Link: http://www.canada.com/theprovince/news/story.html?id=b00f5459-b65b-4dd0-81d2-0619f97610e8
Summary
On November 19, B.C. Environment Minister Barry Penner attended the Global Climate Summit, held in California. During this meeting, one of the major topics, carbon tax, was brought up and it was tremendously admired. When the minister was speaking to 800 delegates, he was interrupted twice by applauses for the carbon tax. B.C., being the only power in North America so far to have a carbon tax, has fascinated the opposition from some states that are strike by rising fuel prices and an economic decline. All the governors that were present during this day joined together to initiate the cut of greenhouse gas.
Connection
The connection between this article and chapter 3 is third party effect. The pollution and greenhouse gas that are from cars and other industries are effecting the third party which can be everyone on this planet, plants, animals, and the entire environment. Because of this negative effect, the government must get involved to stop it. The B.C. government has initiated the carbon tax to reduce the emission of carbon dioxide and thereby slow climate change. Also the gas suppliers must pay an excised tax on diesel gas when they sell it. This tax burdens the consumers also because gas suppliers would increase the price of gas in order to cover the cost of the excised tax.
Reflection
I have personally experienced the climate change in Vancouver--it snows in the middle of March or April! The carbon tax is a good way to decline the pollution in our environment and this unbelievable climate change. Cars are increasing every year because teenagers are starting to be permitted in driving and partially because of cars, our air is worst than before. My opinion of the carbon tax could possibly change once I start paying the gas because I'll start realizing how much gas is! Furthermore, B.C. is not the only province that is concerned about greenhouse gas, but other provinces and states are concern too. I believe this tax will eventually spread because there are many green-lovers in the world.
Link: http://www.canada.com/theprovince/news/story.html?id=b00f5459-b65b-4dd0-81d2-0619f97610e8
Summary
On November 19, B.C. Environment Minister Barry Penner attended the Global Climate Summit, held in California. During this meeting, one of the major topics, carbon tax, was brought up and it was tremendously admired. When the minister was speaking to 800 delegates, he was interrupted twice by applauses for the carbon tax. B.C., being the only power in North America so far to have a carbon tax, has fascinated the opposition from some states that are strike by rising fuel prices and an economic decline. All the governors that were present during this day joined together to initiate the cut of greenhouse gas.
Connection
The connection between this article and chapter 3 is third party effect. The pollution and greenhouse gas that are from cars and other industries are effecting the third party which can be everyone on this planet, plants, animals, and the entire environment. Because of this negative effect, the government must get involved to stop it. The B.C. government has initiated the carbon tax to reduce the emission of carbon dioxide and thereby slow climate change. Also the gas suppliers must pay an excised tax on diesel gas when they sell it. This tax burdens the consumers also because gas suppliers would increase the price of gas in order to cover the cost of the excised tax.
Reflection
I have personally experienced the climate change in Vancouver--it snows in the middle of March or April! The carbon tax is a good way to decline the pollution in our environment and this unbelievable climate change. Cars are increasing every year because teenagers are starting to be permitted in driving and partially because of cars, our air is worst than before. My opinion of the carbon tax could possibly change once I start paying the gas because I'll start realizing how much gas is! Furthermore, B.C. is not the only province that is concerned about greenhouse gas, but other provinces and states are concern too. I believe this tax will eventually spread because there are many green-lovers in the world.
Monday, October 27, 2008
Wage increases will tighten in 2009: Think-tank
Economics Chapter Two
Link: http://www.canada.com/vancouversun/news/story.html?id=761a4157-fe36-4fe3-a423-59302674e935
Summary
This article is about how the financial crisis would affect the increase wages of workers in 2009. Their planned increase wage will be cut back by a half and is said that the "employers [will] focus on cost-cutting and efficiency drives in an uncertain economic environment". The lowest increases are said to be in the manufacturing sector, and in the communications and telecommunications industry. Prem Benimadhu, the board's vice-president, governance and human resources management, stated that organizations were projecting lower increases for 2009 before the current recession began in september.
Connection
The connection between this article and the concepts in chapter two is the factors of affecting demand. As the recession is taking place, many organizations are cutting down job opportunities and even some businesses are about to face bankruptcy. On top of that, in Ottawa, the future incomes for individuals are not what they expected. They are getting less than what they thought to receive and this affects the purchases of these people. They would not buy the things that they were going to buy and perhaps postpone the purchases.
Reflection
The current global economic recession is affecting everyone. Because of this recession, people are already planning for what to do in the future but maybe not trying to solve this problem that’s happening in the present. I find it funny how some employers would guarantee a possible increase in employees’ payroll if they work for a certain amount of time but now that this wage-cutting is happening, I think people would still work because a recession is happening. If this was happening to me, I would surely postpone my purchase of a car in the future because I would be worried if I could pay the monthly debts.
Link: http://www.canada.com/vancouversun/news/story.html?id=761a4157-fe36-4fe3-a423-59302674e935
Summary
This article is about how the financial crisis would affect the increase wages of workers in 2009. Their planned increase wage will be cut back by a half and is said that the "employers [will] focus on cost-cutting and efficiency drives in an uncertain economic environment". The lowest increases are said to be in the manufacturing sector, and in the communications and telecommunications industry. Prem Benimadhu, the board's vice-president, governance and human resources management, stated that organizations were projecting lower increases for 2009 before the current recession began in september.
Connection
The connection between this article and the concepts in chapter two is the factors of affecting demand. As the recession is taking place, many organizations are cutting down job opportunities and even some businesses are about to face bankruptcy. On top of that, in Ottawa, the future incomes for individuals are not what they expected. They are getting less than what they thought to receive and this affects the purchases of these people. They would not buy the things that they were going to buy and perhaps postpone the purchases.
Reflection
The current global economic recession is affecting everyone. Because of this recession, people are already planning for what to do in the future but maybe not trying to solve this problem that’s happening in the present. I find it funny how some employers would guarantee a possible increase in employees’ payroll if they work for a certain amount of time but now that this wage-cutting is happening, I think people would still work because a recession is happening. If this was happening to me, I would surely postpone my purchase of a car in the future because I would be worried if I could pay the monthly debts.
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