Category: Economics 2707

In the present day, regional trading agreements may be defined as a treaty signed by several countries in order to encourage trade and the movement of products and services across its members borders. In general, international tariffs, quotas, and other trade barriers limit the transportation of goods and services across states. In this case, regional trading agreements are introduced as they come with specific internal rules followed by members. That is why a considerable number of countries currently aim to sign regional trading agreements to ensure their continued economic growth. Thus, in 2020, the United States-Mexico-Canada Agreement (USMCA), which substituted the North America Free Trade Agreement (NAFTA), entered into force (Office of the United States Trade Representative, n.d.). This paper aims to evaluate USMCA in order to support the statement that this agreement benefits the economies of all member countries.

First of all, it is necessary to mention that the creation of USMCA for mutual economic benefits was presupposed by several factors. Being the parts of North America, the United States, Canada, and Mexico are the main trade partners of each other (The White House, n.d.). Moreover, they have already built an integrated platform for manufacturing in multiple industries, including machinery, automobiles, medical devices, electronics, equipment, household appliances, and agriculture. At the same time, economic challenges that were caused by the COVID-19 pandemic demonstrated the necessity for integration and close cooperation to avoid more substantial economic decline.

Besides, USMCA is highly beneficial for small and medium-sized businesses as it establishes investment and trade opportunities for them. Thus, the agreement facilitates cross-border transactions and transportation. For instance, USMCAs Customs and Trade Facilitation Chapter helps businesses ease international trade by reducing transportation costs, the online publication of documents required for a trade, customs clearance, and procedures of error correction (Office of the United States Trade Representative, n.d.). Moreover, in USMCA, the regulations of online trade were introduced for the first time, prohibiting customs duties on the distribution of digital products and protecting cross-border data flow.

In addition, USMCA guarantees access to members inner markets, especially agricultural ones, stimulating export and international trade. For instance, it provides the U.S. with greater access to Canadas dairy, poultry, and egg markets (The White House, n.d., para. 4). In turn, Canada and Mexico increase access to each others markets as well. Moreover, the agreement stimulates regional manufacturing  thus, according to it, at least 75% of vehicle parts should be produced in North America with zero tariffs and increased wages for workers (The White House, n.d.). Therefore, USMCA leads to the creation of new job positions and the enforcement of labor rights. In particular, new rules focus on the regulation of payment in order to provide appropriate working conditions for citizens.

To conclude, the notion related to the benefits of regional trading agreements for countries economic growth is supported by the example of USMCA, the agreement between North American states. It was signed for the prosperity of the regional economy through balanced and fair trade, support for small and medium-sized businesses, and cooperative manufacturing. Moreover, USMCA is beneficial for countries citizens, especially for those ones who operate in the automobile industry and agriculture, as it stimulates employment and contributes to the creation of high-paying jobs. Finally, the agreement emphasizes the importance of working rights enforcing industries commitments to prioritize them.

References

Office of the United States Trade Representative. (n.d.). United States-Mexico-Canada Agreement fact sheet. Supporting Americas small and medium-sized businesses. Web.

The White House (n.d.). 2019 WH statement on USMCA benefits [PDF document]. Web.

Any price should combine the willingness of the buyer to pay and the companys production costs, creating a balance between the two sides. Generally, different pricing approaches can be used for various products, and the complementary approach to the goods will change as the market develops. Nevertheless, only by combining these two extremes, the business can both become successful on the market and not harm the wallets of customers.

Prices that are more consistent with the clients willingness to pay will bring the company a higher profit. Although there is always a chance that a price increase can carry some positive meanings to consumers  for example, that the item is hot and represents good value  consumers genuinely dislike higher prices (Kotler & Keller, 2015). When the lower price limit is set above the equilibrium price, the quantity supplied will exceed the amount required, which will lead to an excess of goods. The client will not be able to pay, and the company will make useless products, which will lead to economic collapse. Even though price cuts have a significant positive impact on consumer behavior, this may not be enough to support companies (Ali & Anwar, 2021). Competition, product development, and legal decisions affect the firms freedom of action in determining its pricing strategy. Achieving the right match between the firms resources and market opportunities allows it to earn higher profits and grow faster than its competitors.

Thus, any price between the clients desire to pay a certain amount of money for the goods and the companys production costs will ensure a mutually beneficial exchange. Prices that lean more towards one of the categories can be difficult to hold on to the market. That is why I believe the two strategies need to be competently harmonized in order to get the greatest profit.

References

Ali, B. J., & Anwar, G. (2021). Marketing Strategy: Pricing strategies and its influence on consumer purchasing decision. International journal of Rural Development, Environment and Health Research, 5(2), 26-39.

Kotler, P. & Keller, K. (2015). Marketing Management. Pearson Education.

The Maximum Number of Tickets Sylvia can Buy in a Week

If the budget is $24 and the cost of one movies ticket is $4, the maximum amount to spend on tickets equals the budget divided by the cost of one. Therefore, it will be; $24/$4, which equals six tickets.

The Maximum Number of Pizzas Sylvia can Buy in a Week

If the budget is $24 and the cost of one pizza is $12, the maximum amount to spend on pizzas is equal to the budget divided by the cost of one pizza. Therefore, it will be; $24/$12, which is two pizzas.

The Opportunity Cost of Purchasing a Pizza

The opportunity cost of purchasing a pizza equals the return of purchasing a ticket minus the return of purchasing a pizza. If one ticket is $4 and the total budget is $24, the return of purchasing one ticket is the total budget minus the cost of one ticket. It will be; $24-$4, equal to $20. The return of purchasing one pizza equals the total budget minus the cost of one pizza. If one ticket is equal to $12, it will be; $24-$12, which equals $12. Therefore, the opportunity cost will be $20-$12, which equals $8.

Difference between the Demand and the Quantity demanded of milk

Demand refers to a clients urge to purchase a product, like milk. Quantity refers to the amount of product that clients are willing to purchase at a certain fee (Stonecash et al., 2020). Consumers Demand changes because of their buying behaviour, taste, market trends, alternatives, availability and appeal. The graph is as follows.

Difference between the Supply and the Quantity of Milk

Supply refers to the total amount of milk available in the market. The quantity of milk is the specific price and amount of product supplied. Supply covers all the price points of milk. When the price of milk is high, the quantity increases. When the price is low, the quantity decreases (Stonecash et al., 2020). The equilibrium creates different price points for a product. It is different from Demand which is inversely related to the quantity of product. The supply and quantity graph is as follows.

Reference

Stonecash, R., Gans, J., King, S., Byford, M., Ivanovski, K., & Mankiw, N. G. (2020). Principles of macroeconomics. Cengage AU.

Introduction

Shared Consumption Experiences was published by Rebecca Hamilton in Impact at JMR in 2021. The article discusses the subject of consumer behavior; however, contrary to other research made on the topic, Hamilton (2021) focuses on the experiences of a group rather than an individual. It is found that shared consumption significantly differs and is usually more enjoyable. The main distinction between the two types of consumer experience involves affective, motivational, cognitive, and behavioral patterns (Hamilton, 2021). Sharing consumption is also discovered to influence the amount of money spent and the product. Overall, the paper combines discoveries of much research on consumption, highlighting the primary points that can be elaborated upon in future marketing research.

The Main Points of the Article

One of the main ideas drawn by Rebecca Hamilton involves increased emotional reactions related to shared consumption experience. Intensified emotional responses correlate to the general enjoyment of the product; however, they also decay more quickly compared to solo experience (Hamilton, 2021). Additionally, congruency of reactions subsequently increases ratings of joy, indifferent to whether the experience was pleasant or unpleasant (Hamilton, 2021). This idea shows how experience can impact product rating, depending on solo or collective consumption.

Another point made by the author concerns consumption experiences effect on motivation. Shared experience is often expected to be more fun, thus motivating people to forgo individual consumption (Hamilton, 2021). Not only the choice of activities is affected this way, but also the amount of money spent. It is found that men tend to pay more for products while shopping with friends, whereas women spend less (Hamilton, 2021). Additionally, the actions of the consumer-partner critically influence product indulgence because people rarely choose to make a different decision from their partner (Hamilton, 2021). As such, marketing strategies should be in consideration of consumer experience when attempting to affect consumers motivation to buy products.

The article also identified common behaviors of sharing consumption experiences. It is known that multiple consumers assess the product better than an individual due to the pooled expertise and opinions (Hamilton, 2021). However, they are less likely to share knowledge. Shared consumption encourages consumers to strive for agreement rather than form integrative judgment (Hamilton, 2021). This means that collective expertise can be more critical to the product yet follow the mainstream opinion.

The last point about the shared consumption experience discussed in the article relates to coordinating interdependent actions. It is revealed that focus on the activity and subsequent enjoyment of the process is affected by consumers ability to communicate. If shared experience is not accompanied by a clear understanding of the consumer partners interests and opinions, the attention is shifted from the activity, reducing the level of entertainment received (Hamilton, 2021). This finding provides an intelligible knowledge of necessities for increasing consumers positive experiences.

Shared Consumption Experiences Impact on Marketing Management

Upon thorough examination of the aspects and importance of shared consumption experience, it is clear that marketing management can greatly benefit from adopting specific practices to complement and utilize it. Introducing quality products oriented for collective consumption can increase overall ratings and market share. The activities that can include the cooperation of multiple people should be adjusted to meet shared consumption requirements for an enhanced level of entertainment.

Based on the knowledge of the intensified emotional reactions that tend to decay faster than in solo experience, many conclusions for entertainment media can be made. For example, family-oriented movies or comedies that are most commonly seen by multiple consumers should incorporate a specific period between evoking emotions. It should be done in such a way as to increase the level of enjoyment by inducing explicit emotional reactions, yet consider the time of their decay.

It is also important to integrate the knowledge of consumer motivation being influenced by collective experience. For instance, shared activities and products should be heavily advertised as such because they are often found more entertaining. Additionally, since men tend to spend more money while shopping in the company, the increased price for group products should not discourage male consumers from buying them. Places intended for couples or group entertainment can significantly benefit from providing corresponding merchandise or refreshments due to the low rate of consumers choice not to copy their partners indulgence patterns.

Mainstream opinions should always be considered due to their impact on consumer experience and product rating. As such, products and activities should foremost be targeted at the widest population for unconditional success. Even despite the products lack of some critical qualities, it can be found in demand because of its popularity and common positive opinion. This is due to the consumers higher desire to agree with others than form an individual judgment.

Conclusion

Lastly, group entertainment activities and service providers should consider coordinating the interdependent actions of the consumers. Since it is found that focus and enjoyment are affected by communication with a partner, or lack thereof, there is a clear need for short interventions. Such pauses would let consumers share their interests and opinions, especially if encouraged. Upon proper communication, consumers can pay full attention to the activity, receiving maximum enjoyment.

References

Hamilton, R. (2021). Shared Consumption Experiences. Impact at JMR.

Africa has been going through not the easiest times right now. Many modern politicians and the public put their expectations for the improvement of the situation on the risen middle-class. African society has high hopes for this new tendency which may promise a better future. It expects a more developed economy, the reduction of poverty, and many more innovations in the economic and social spheres of the countries. However, the situation might not be as bright as it seems, and the increase in the number of people belonging to the middle class might eventually not even be closely equal to the continents progress. Therefore this policy proposal aims to assume changes in Africa if the growth of the middle-class continues and suggests a solution that would benefit the majority of the middle class represented by youth.

Although the idea of the new solid middle class that will solve all the issues sounds inspiring, the reality is far from it. Despite its appearance, Africa still lacks a decent number of available jobs, equal distribution of goods and financiers, along with safety and security (Obonyo). Historically, the middle-class has always been on the lead instead of the leading layer of society that rarely questioned the current political situation and tried to create drastic changes (Kroeker). While from the economic point of view, it can look instead promising the majority of Africans population that falls into the category between the poor and the rich remains on the edge of poorness (Sylla). Before the hit of Coronavirus, Africa seemed to reach economic stability, social protection, higher salaries, and overall population enrichment. However, in the end, it turned to be only some sort of marketing campaign to attract foreign investors and entrepreneurs to put their resources into the African countries (Akinkugbe 99). When the potential partners eventually realized that this was far from the truth, they refused to cooperate and avoided putting their efforts into Africa.

Nevertheless, finances are still appearing in the continent, and the reason for this is the economic transactions. Relatives of many African people went abroad for work and provided them with money for a living (Southall Whats missing? Reflections on the debate on the middle class(es) in Africa. 8). Those many eventually help fight poverty, but it does not solve the real problem with the low incomes and the high unemployment rates. Moreover, Africa tends to stimulate economic growth that would only be beneficial for the wealthy population.

Though, as a counterargument, the changes, especially on such a significant scale, take much time and cannot happen as soon as is expected. It is true indeed, but the most crucial point is to define whether there is a possibility and appropriate conditions for the progress. Since the situation with the pandemic is more unpredictable than in recent decades, it is impossible to even slightly predict the outcome of the rise of the middle class. Moreover, the current position is relatively unstable, and it is a real struggle for countries and their governments, especially some African parts that are not so well-developed, to keep and maintain what already exists.

Africa needs to develop an economic model that would focus on the salvation of the most crucial and urgent problems on the continent at the moment. The most crucial points are to reduce the unemployment, create reserves in case of urgent situations to help people to keep living and maintain their stability is something unpredictable will happen (Southall (Middle-) Class analysis in Africa: does it work?. 471). The Africa youth remains the majority of the population, and even despite some difficulties and unsatisfying conditions, they have all the power to transform African society. To achieve outstanding results in the development of the continents, there are three aspects that the government should consider working on employment, education, and health.

Also, it is crucial to mention that the policies should be inclusive and cover the interests of marginalized young people, women, refugees, and youth with disabilities (African Union).In order to drive the economy further to progress, young people should have an opportunity to work in decent, well-paid jobs and even start their businesses so the economy can flourish. However, it is easy since the job market requires professional experience, training, and special skills. The government should focus on developing and implementing training programs on existing jobs and expand the borders for the young people by creating new positions for them to work. These measures will eventually stimulate the productivity and economic growth of the continent in the long run.

Nevertheless, even the best training and programs cannot replace quality education. To have a foundation for career and entrepreneur opportunities, the African youth should have access to education at schools and other educational institutions. In the regions where there are possibilities for studying, the massive amount of it does not have enough professors, outdated information, and the program that does not meet the required needs of the market (Datta 924). Therefore, the government might change the old tools with modern equipment and revise the curriculum and teaching methods to make the study process more effective and productive.

Another change that will benefit the future of Africa is the policy to evolve the healthcare system. Due to some missing spots in the education and open discussion about sex education, phycological well-being, and measures of protection, young people can get dangerous diseases and threats to their health (Good Practices in South-South and Triangular Cooperation: Scaling up Made-in-Africa Solutions). Moreover, the importance of mental health is becoming unstigmatized and opens the possibilities for young people to become more self-aware. The whole development is impossible without the satisfying amount of overall care about the well-being physical and phycological. Having solid health and a clear realization of how to manage the stress and prevent burnout while working achieve the goals will let people build their careers successfully.

In conclusion, the current picture of the rise of the middle class is quite a dar from the promising image that the African counties are trying to promote. The number of people considered middle class has grown, but they are still on the edge of poorness and struggle with the weak economy during the pandemic. Nevertheless, the African youth still can provide the continent with a more perspective future and contribute to the development of the economy. To achieve this, policymakers should reconstruct the initial professional, educational, and healthcare systems to stimulate and strengthen this generations ability.

Works Cited

Akinkugbe, Oluyele, and Karl Wohlmuth. Middle-Class Growth and Entrepreneurship Development in AfricaMeasurement, Causality, Interactions, and Policy Implications. Journal of European economy18, 1 (2019): 94-139.

Southall, Roger. Whats missing? Reflections on the debate on the middle class(es) in Africa. Transformation: Critical Perspectives on Southern Africa, vol. 96, 2018, p. 1-24. Project MUSE, doi:10.1353/trn.2018.0000.

. (Middle-) Class analysis in Africa: does it work? Review of African Political Economy 45.157 (2018): 467-477.

Kroeker, Lena, David OKane, and Tabea Scharrer, eds. Middle Classes in Africa: changing lives and conceptual challenges. Springer, 2018.

Good Practices in South-South and Triangular Cooperation: Scaling up Made-in-Africa Solutions. United Nations Office for South-South Cooperation. 14 Sep. 2021.

Sylla, Ndongo Samba. Why Africa lacks a robust middle class. Development and Cooperation. 2021.

African Union. Africas Future: Youth and the Data Defining their Lives. The African Union Commission (AUC), Department of Human Resources, Science and Technology, and the Population Reference Bureau (PRB) (2019).

Obonyo, Raphael. Young people can capably lead Africa into the future. Africa Renewal. 2019.

Datta, Niloy R., Susanne Rogers, and Stephan Bodis. Challenges and opportunities to realize The 2030 Agenda for Sustainable Development by the United Nations: Implications for radiation therapy infrastructure in low-and middle-income countries. (2019): 918-933.

Globalization has affected individuals, groups, and communities all over the world and has had a big impact on sustainable development. Globalization has significantly altered economies, society, and the environment over the last several decades, and it has made our globe more linked than ever before ( Eitzenet al., 2018). This is due to the rapid advancement of technology and the greater mobility of commodities, services, capital, and labor.

Numerous opportunities have been given by these movements. Rapid economic expansion has been accompanied by greater economic interconnection and globalization in many nations and areas. However, there have also been substantial problems brought about by globalization, such as an unequal distribution of its advantages and disadvantages. One example of this is the shifts in labor trends and technology advancements. I have seen these trends in my community, where some of the jobs are being replaced by robots or technology equipment. For example, some fast-food restaurants accept orders via computers instead of having waiters or cashiers. This means that there are fewer jobs on the market, especially entry-level ones.

I see that these global economic trends have a negative effect on the employment and safety of work conditions. Mainly, globalization prompts companies to move their production facilities to countries with cheaper labor. The cost of labor is the effect of less strict regulations regarding the minimum wages, the safety of work conditions, or even the minimum age at which a person can be employed. Thus, although companies can reduce their costs and still provide a good product to their customers, the people in developing countries where these jobs are outsourced have bad work conditions. Additionally, this means that local communities have fewer job opportunities, affecting unemployment rates.

Reference

Eitzen, S., Smith, K., & Zinn, M. B. (2018). Social problems (14th ed.). Pearson.

Gross Domestic Product (GDP) calculates the monetary value of all final services and products, including those bought by consumers and those manufactured in a nation over a specific period. It gauges every product created within a nations borders (Dynan & Sheiner, 2018). As a result, some activitiessuch as non-market activities, intermediate items that have been transformed into final goods and services, transfer payments, and illegal and used goodsare not included in the GDP.

Used products are excluded from the GDP simply because they were manufactured in the previous year and included in the GDP of that year; hence, there is no need to include them in the current years GDP. Transfer payments, such as the governments payments to the people, such as social security, are also not included in the GDP because they are not part of the countrys production. In addition, non-market activities such as home production are counted as services not sold at the marketplace and, therefore, not included in the GDP (Dynan & Sheiner, 2018). Another item excluded from the GDP is the intermediate products or the goods used to produce other products because the final product is a product that cannot be used to produce another commodity. Thus, an intermediate product will not be counted as a final good. Finally, illegal activities, for example, the production and distribution of banned drugs, counterfeited products, and pornographic materials, are also not included in the GDP because they do not pertain to any agreement and are not productive.

In conclusion, the gross domestic product consists of the services and products produced to be sold in the market. It may also include non-market produce such as education services or defence services offered by the governments but not every productive activity should be included in the GDP.

References

Dynan, K., & Sheiner, L. (2018). GDP as a measure of economic well-being. Brookings.

Introduction

The information gain is a useful method to predict the behaviors of the customers and allows to better target and market products. Nevertheless, some limitations to this method are present.

Discussion

The cleanliness of data and the possibilities of recurring issues are one of the limitations of using information gain in the future. The organization previously encountered such a problem, and there are no guarantees of this not happening again. This was a cause of the need to clean the data, which resulted in extra work done and time spent on the information gain. It is necessary to reassure in further data collection that the information is clean and properly separated and categorized to be easily accessed and used in the future.

Another issue regards the complexity of the data. It is primarily due to the presence of both categorical and numerical values in the information collected by the organization. This may result in problems regarding the possibility of correctly categorizing and assessing the data (Lutes, 2020). Moreover, the attributes which the data set consists of are independent variables that might strongly distort the results of the analysis, as their values may not affect the actual relevance of the prediction (Santini, 2015). Meanwhile, the analysis procedures related to information gain will still use this data, and it is necessary to adapt the processes accordingly to the possible problems.

Overfitting is a common issue in information gain and should be considered in every possible case. This issue is based on the prediction models being able to adapt to the information that is being assessed, which often results in wrong predictions (Bramer, 2007). Nevertheless, it is necessary to note that it is not the fault of certain models, whereas it is more of a human factor. Choosing a model and adapting it to the data set should be conducted with the consideration of avoiding the excessive complexity of the changes in the model (Provost and Fawcett, 2013). These modifications are usually the main reason for the eventual overfitting and must be done carefully and relevantly. The main method that should be adopted to avoid overfitting is testing the developed model with a holdout set.

The information gain is prone to favoring the attributes that have many possible values. The potential risk groups of attributes are almost unavoidable. This is the case in the organization reviewed, and the present attribute of such a category is ID. The reason for that lies in IDs being independent of any factors and their high variety in values (Tang, Alelyani, and Liu, 2014). This might lead to the model being too biased to evaluate information based on this attribute, which will lead to entropy being close to or equal to zero (Buscemi, Das, and Wilde, 2016). Such issues lead to the impossibility to use the information provided by the analysis and should be avoided.

Conclusion

The limitations regarding the usability of the information are described in the case of work with Amazons data. This case emphasizes the issues that are faced during working with the data to prepare it for information gain and prediction of customer behaviors (Zdravenski et al., 2020). It is necessary to develop and adopt methods that allow to properly categorize and transform data for to be used to extract any knowledge from it, which is demonstrated in the article. Another case regarding clothing sales emphasizes the issues regarding the models modifications and their proneness to overfitting, developing an algorithm free of these problems (Sun et al., 2015). This is remarkable in terms of how the model has to be developed to suit the necessities of businesses to properly predict customers behaviors.

Reference List

Bramer, M. (2007) Avoiding overfitting of decision trees, Principles of data mining, pp.119-134.

Buscemi, F., Das, S. and Wilde, M.M. (2016) Approximate reversibility in the context of entropy gain, information gain, and complete positivity, Physical Review A, 93(6), p.062314.

Lutes, J. (2020) Entropy and Information Gain in Decision Trees. Web.

Provost, F. & Fawcett, T. (2013) Data Sciences for Business: What you need to know about Data Mining and Data-Analytics Thinking. Sebastopol, CA: OReilly Media.

Santini, M. (2015) Lecture 4 decision trees (2): Entropy, information gain, gain tatio [PowerPoint presentation]. Web.

Sun, F., Liu, Y., Xurigan, S. and Zhang, Q. (2015) Research of clothing sales prediction and analysis based on ID3 decision tree algorithm, In International Symposium on Computers & Informatics.

Tang, J., Alelyani, S., & Liu, H. (2014) Feature Selection for Classification: A Review, Data Classification: Algorithms and Applications.

Zdravevski, E., Lameski, P., Apanowicz, C., & Zl)zak, D. (2020) From Big Data to business analytics: The case study of churn prediction, Applied Soft Computing, 90, 106164.

Check fraud has always been one of the ways used by malefactors to acquire additional benefits. It can be defined as any effort to acquire money illegally, using paper or digital checks that are widespread nowadays (Check fraud 101, n.d.). Statistics show that an organization might lose up to 5% of its revenue because of this crime committed by various individuals. For this reason, it remains a serious concern nowadays. Furthermore, the rise of computer technologies contributed to the emergence of new opportunities to commit this crime. For instance, the spread of digital checks and specific applications for working with such documents allowed malefactors to alter them and use fake data instead of real ones (Check fraud 101, n.d.). It increased the topicality of the problem and promoted the need for additional security measures to guarantee no substantial damage is caused by such operations.

The problem is complicated because there are numerous check fraud types, and their number continues to increase. For this reason, investigators usually try to outline the major types of this activity to familiarize clients and specialists with them. These might include check forgery, counterfeiting, altered checks, and paperhanging (Check fraud 101, n.d.). Scammers or thieves usually employ these types as they are comparatively easy and can help to generate income. For instance, forgery can be determined as writing a check by an account holder to buy some time before they will find extra funds (Check fraud 101, n.d.). For a business, forgery usually occurs when an employee issues a check without clear authorization (Check fraud 101, n.d.). It helps to generate specific benefits and ensure a person will have the required time or funds.

Paperhanging is another common type of check fraud that is often used by thieves or persons who have unfair purposes. It implies the purposive writing of bad checks by account holders on their accounts (Check fraud 101, n.d.). A person realizes that the funds placed on his/her account are insufficient; however, it helps to enjoy benefits from the difference in check and the real state of the account (Check fraud 101, n.d.). As a result, extra dividends and time might be acquired. Check kiting is another type of fraud, implying that an account holder can write bad checks linked to his/her account (Check fraud 101, n.d.). The central goal of this action is to deposit these checks in another account to demonstrate a positive balance on the second account (Check fraud 101, n.d.). It might help to conceal the actual situation and avoid problems with reporting the current balance and the state of the account.

Considering the spread of this illegal practice, and the substantial harm done by this type of fraud, it becomes vital to detect bad checks and report possible unlawful activity. Specialists working in the sphere offer several ways to achieve the goal. For instance, inconsistent handwriting might be the first indicator of a bad check (How to spot an altered check, n.d.). If there are any differences in handwritten details, it is possible to start an additional investigation to guarantee the check is legal.

Another indicator of potential check fraud is visible signs of alteration found in a check. Following the existing recommendations, tellers should look at the amount or payee name (How to spot an altered check, n.d.). If any signs of alteration or erasure marks are seen, it is vital to initiate a more detailed investigation to ensure there are no illegal activities. It is also possible to contact a bank to ask if the check is correct. Finally, it is vital to increase customers awareness about the necessity to protect their checks. One of the ways to avoid check fraud is to prevent thieves from stealing them. For this reason, it is critical to educate customers about the necessity to keep their checks safe and avoid their use by third parties (How to spot an altered check, n.d.). It will guarantee a high level of security and help to protect institutions from potential financial losses.

Moreover, there are some specific ways how business managers can curb potential check fraud. First of all, it is vital to use software that automatically checks frauds and ensures they are not altered (Check fraud 101, n.d.). It significantly reduces the chance of successful fraud and helps the organization to save money. Second, managers should increase their awareness about check fraud and how malefactors might use this document to attain their purposes (Check fraud 101, n.d.). It would help to detect possible cases and report them.

Another critical insight offered by the website is using additional tools to mark checks and ensure a high level of security. Putting a seal or unique barcode on every document will help to acquire vital information once it is scanned (Check fraud 101, n.d.). For business, it might become an excellent solution as it will contribute to the reduced number of frauds and ensure the company will not suffer from severe financial damage. Altogether, check fraud remains one of the critical factors affecting the work of banks, financial institutions, and the business sector. For this reason, it is vital to realize the major types, signs, and methods to detect this activity and avoid undesired outcomes.

References

Check fraud 101. (n.d.). SQN Banking Systems. Web.

How to spot an altered check. (n.d.). SQN Banking Systems. Web.

COVID-19 has had a profound impact on the Australian economy. Most indicators in 2020 indicate that the country was in a recession phase. According to Australia Indicators (n.d.), the annual growth rate of RGDP decreased by 1.9%, index of production costs decreased by 0.4%, consumption spending decreased by 5.72%, investment spending decreased by 3.3%. Only net exports increased by $1.8 million because imports decreased by about 15% (Australia Indicators, n.d.). In turn, in 2021 the Australian economy began to recover from the adverse economic effects of COVID-19. During this period, the countrys economy was in the expansion phase. This is evidenced by the increase in such indicators as the annual growth rate of RGDP, consumer price index, index of production costs, consumption spending, investment spending, and net exports. The largest contribution to the 2021 cycle was made by such a component as net exports, which showed the maximum growth compared to other indicators and almost doubled.

In 2020, the Chinese economy has experienced a recession, as evidenced by the decline in indicators such as the annual growth rate of RGDP, consumer price inflation, index of production costs, spending on consumer goods. At the same time, in 2020, China became the only major economy in the world to avoid a significant downturn due to the COVID-19 pandemic. While the economic indicators showed negative coefficients, the annual growth rate of RGDP showed an increase, but less than in previous years. Moreover, indicators such as consumption expenditure, investment spending, and net exports have increased. Net exports rose as disruptions due to the coronavirus around the world fuelled demand for Chinese goods. In 2021, the business cycle of the Chinese economy was characterized by an expansion phase. Thus, the annual growth rate of RGDP increased by 8.1%, the index of production costs increased by 3.7%, consumption expenditure increased by 10%, spending on consumer goods increased by 14.16%, and investment spending increased by 3.9% (China Indicators, n.d.). The biggest contributor to the cycle in 2021 was net exports, which increased by a third compared to 2020.

In 2020, the unemployment rate in Australia was 7.4%, which is associated with a drop in the supply of vacancies in the labor market during the COVID-19 pandemic. However, according to China Indicators (n.d.), the unemployment rate fell to 4.9% in 2021. A likely reason for this may be the stabilization of sectors such as healthcare, social assistance, hospitality, food, science and retail, which were characterized by an increase in the number of vacancies. Accordingly, the increase in the supply of vacancies was able to satisfy the demand and the unemployment rate decreased.

Cyclical unemployment occurs during a cyclical economic downturn. It occurs when a fall in aggregate demand for output causes a fall in aggregate demand for labor. Indeed, unemployment in Australia has been linked to the economic recession caused by the COVID-19 pandemic, so it can be called cyclical. On the other hand, unemployment in Australia can be called structural, since it was associated with technological changes in production, which changed the structure of labor demand. Ghosh and Ghosh (2021) note that if demand for workers in a given occupation or region falls, then structural unemployment occurs. Thus, unemployment in Australia is dual in nature.

In 2021, rising prices for all food and non-food items, as a consequence of supply chain disruptions and higher transport and production costs, contributed to a 5.7% rise in Australian inflation (Australia Indicators, n.d.). Inflation is affected by supply and demand for products and services, as well as import and export performance. Consumption expenditure increased by 5%, index of production costs enlarged by 2.2%, and imports and exports increased by 8% and 19%, respectively (Australia Indicators, n.d.). Thus, the increase in these indicators was reflected in the change in the level of inflation.

References

Australia Indicators (n.d.) Web.

China Indicators (n.d.) Web.

Ghosh, C. and Ghosh, A. (2021) Macroeconomics. 2nd ed. Delhi: PHI Learning Private Limited.