Assignment: Fortune 500 Companies Using a Global Fortune 500 company, you will complete a research paper that summarizes its history, conduct a SWOT analysis, and address its future. Course outcome(s) practiced and assessed in this Assignment: GB540-3: Analyze the relationship between knowledge-based economic decision-making and economic growth. Directions In this Assignment, you will select a Global Fortune 500 company (it cannot be a company you work for) that operates in the United States and in other nations around the world. Make sure it is one you are interested in and has plenty of good sources of information available. A) Summarize the firm’s history, the economic, social, and political forces that affect it most. B) Present recent and current operating results (financial performance) data in a table. Evaluate the firm's current and recent operating results. Analyze the major economic forces that affect the firm. Discuss the key social and major political forces that affect the performance of the firm. C) Present a brief SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). D) Discuss the factors it will need to predict, plan for, and adjust to in the future. Criteria ● Your Assignment should have a cover sheet with the following information: Title of the paper, Your Name, Course Number and Section Number, and Date ● It must be a minimum of 5-pages long (excluding title page, references, etc.) ● Be sure to include the criteria located in the rubric below within your paper. ● It must be APA formatted with citations to your sources and your last page should list all references used. Review the APA formats found in the Writing Center. ● You must use a variety of three objective, high quality, and current sources. Peer reviewed articles, articles published in journals, textbooks, and library resources found in the Library are examples of high quality resources. ● Note that Wikipedia, Investopedia, etc. are not considered as reliable resources for this research. Directions for Submitting The Assignment is to be submitted to the Unit 4 Assignment Dropbox by the end of Unit 4. Unit 4 [GB540: Economics for Global Decision Makers] 2 of 2 GB540 Unit 4 Assignment: Fortune 500 Companies Content and Analysis Points Possible Points Earned A global Fortune 500 company was chosen. 10 Analyzed the firm’s history. 10 Evaluated the firm’s recent operating results. 10 Evaluated the firm’s current operating results. 10 Analyzed the major economic forces that affect the firm. 10 Discussed key social forces that affect the performance of the firm. 10 Discussed major political forces that affect the operation of the firm. 10 Presented a brief SWOT analysis for the firm. 10 Examined the factors the firm needs to predict for the future. 10 Examined the factors the firm will need to plan for the future. 10 Examined factors that the firm will need to change (adjust) in the future. 10 Cited a minimum of three current reliable references. 5 Writing style, grammar, and APA format. 10

The diagram depicts a consumption function of an economy, where C is the aggregate consumption spending, Y is the current income of the economy and c0 is the fixed (or autonomous) consumption such that c0 > 0. Assume that households that are not credit-constrained would completely smooth their consumption. Which of the following statements is correct? A. If all households were not credit-constrained, and all income changes were perceived temporary, then the aggregate consumption line would be horizontal. B. In times of credit crunch when the banks become less willing to lend, the aggregate consumption line would become flatter. C. If a higher proportion of households have "weakness of will", then the aggregate consumption line would be flatter. D. If the current income falls to zero, there will be zero consumption. Feedback: In a credit crunch more households would become credit-constrained. Therefore the line would become steeper. “Weakness of will” means that when there is an expected fall in the  income, the households are less likely to adjust their consumption  ahead of the fall, in order to build up some savings so that they can  smooth consumption. In this case their marginal propensity to  consume would be higher, implying a steeper aggregate  consumption line. c0 > 0 means that even if the current income is zero, the  households will consume a strictly positive amount. Question 2 of 15 0.0/ 1.0 Points If the multiplier during a recession is equal to 2, then if the government wants to increase GDP by $500 billion it should increase spending by: A. $100 billion. B. $200 billion. C. $250 billion D. $1 trillion Feedback: The multiplier increases the initial spending by the government (or consumers or businesses) by increasing spending and therefore income in the economy.Question 3 of 15 0.0/ 1.0 PointsAssuming that there is no government spending or trade, an economy’s aggregate demand is given by its domestic consumption C and investment I, AD = C + I = c0 + c1Y + I.In the economy’s goods market equilibrium this equals its output: AD = Y. Solving for Y this yields:Y = [1/(1-c1)] (c0+ I)Given this equation, which of the following statements is correct? A. The multiplier is given by 1 – c1. B. The boost in the economy’s output is the same whether the aggregate demand shock comes from an increase in investment I or in autonomous consumption c0. C. The larger the marginal propensity to consume c1, the smaller the multiplier. D. If c1 = 1/3, then a £1 million increase in investment would result in a £2 million increase in the output. Feedback: The multiplier is given by 1 / (1 – c1).Larger c1 means smaller 1 – c1, which in turn means larger  multiplier 1 / (1 – c1).When c1 = 1/3 then 1 / (1 – c1) = 1.5, and therefore a £1 million  increase in I would result in a 1.5 million increase in Y.Question 4 of 15 1.0/ 1.0 Points Assume that in France and Germany, it is not possible for a household to increase its borrowing based on an increase in the market value of their house. In addition, a large down-payment (as a per cent of the house price) is required for house purchase. On the basis of this information, which of the following statements is correct when there is a rise in the house price? A. There is a positive financial accelerator effect for the existing homeowners who are credit-constrained. B. Would-be homeowners would increase saving, leading to their reduced consumption. C. A rise in the house price leads to an increase in human capital. D. A rise in the house price is likely to lead to an increase in consumption in France and Germany. Feedback: CorrectQuestion 5 of 15 1.0/ 1.0 Points In the US and the UK, loans are widely available based on a rise in home equity. Additionally, unlike in France and Germany where large downpayments (as a percentage of the house price) are required, in the US and the UK only small downpayments are required for house purchases. On the basis of this information, which of the following statements is correct for the US and the UK when there is a rise in the house price? A. There is a positive financial accelerator effect for the existing homeowners who are credit-constrained. B. There would be no effect on the consumption of the existing homeowners who are not credit-constrained. C. Would-be homeowners would increase saving and reduce their consumption more than they would in France and Germany. D. A rise in house price is likely to dampen consumption in the US and the UK. Feedback: CorrectQuestion 6 of 15 0.0/ 1.0 Points Which of the following statements is correct regarding the multiplier? A. If two countries were identical except for the share of credit-constrained households, then the country with the higher share would have a smaller multiplier. B. The multiplier is constant over a business cycle. C. An increase in export leads to a higher multiplier. D. Taxation and imports are “leakages” from the circular flow of income, which contributes to lowering of the multiplier. Feedback: A higher share of credit-constrained households means higher marginal propensity to consume. Therefore the multiplier will be larger. The proportion of credit-constrained households would vary over a business cycle. The multiplier would therefore vary accordingly. The multiplier in an open economy depends on the marginal propensity to consume, the marginal propensity to import and the income tax rate. The level of export does not affect the multiplier (it affects the level of the aggregate demand curve, but not the slope). Question 7 of 15 0.0/ 1.0 PointsGiven that imports represent a "leakage" out of the economy and reduce the multiplier, if the following countries have the given rates of Imports/GDP which is likely to have the largest multiplier (assuming all else is the same):CountryImports/GDPBelgium82.1Canada33.4Denmark46.6Ireland96.7Netherlands71.4 A. Belgium B. Canada C. Ireland D. Netherlands Feedback: Higher imports mean less of the money is spent on domestic production and so "escapes" the economy.Question 8 of 15 0.0/ 1.0 Points Which of the following statements is correct regarding fiscal policy? A. Expansionary fiscal policy (e.g. increasing the government deficit or reducing the surplus) always has a stabilizing effect for the economy. B. Unemployment benefits and taxes automatically increase government spending and cut taxation in a downturn, while they trim spending and raise taxes in a boom. These are, therefore, automatic stabilizers. C. In a recession the aim of a government fiscal expansion is to over-ride the effects of automatic stabilizers. D. As a family worried about mounting debts should cut spending and save more, so should an economy adopt austerity measures when its debt level is high to restore its public finances to balance. Feedback: During a boom an expansionary fiscal policy may be destabilizing. In a recession the government would use fiscal expansion to  enhance the effects of automatic stabilizers. This is the paradox of thrift; if everyone stops consuming then that  creates further unemployment, causing a vicious cycle. Part 2 of 2 - Chapter 140.0/ 7.0 PointsQuestion 9 of 15 0.0/ 1.0 Points Which of the following statements is correct regarding inflation and deflation? A. Borrowers benefit from deflation as the value of their debt decreases in real terms. B. Inflation transfers wealth from lenders to borrowers. C. Falling prices benefit consumers and are therefore always good for the economy. D. Inflation makes it difficult for consumers and firms to attain the message about scarcity of resources (sent by relative prices) and is therefore always bad for the economy. Feedback: Deflation increases the real value of nominal debts. This is undesirable for borrowers. Falling prices certainly benefit consumers who have constant  nominal income. However if they postpone consumption in  expectation of further price falls (particularly of durable goods such  as cars) then this leads to a fall in aggregate demand for the  economy, which could lead to more deflation. It is true that in cases of high and volatile inflation it is hard to  separate relative prices changes from the noise of erratically rising  prices. However, under mild inflation adjustments in economic  activities can take place without losers experiencing falling  nominal wages, which is beneficial to the economy (“greasing the  wheels of the labour market”). Question 10 of 15 0.0/ 1.0 Points Consider a scenario where the Bank of England views the UK economy to be overheating and is attempting to slow the economy down using monetary policy. Which of the following statements is correct regarding the effects of an interest rate rise? A. It leads to higher bond prices, which result in higher demand for UK bonds. B. It leads to higher demand for GBP, which results in an appreciation of GBP. C. It leads to the UK exports becoming cheaper and imports becoming more expensive. D. It has opposing effects to the UK’s aggregate demand (AD) of discouraging investment, which lowers AD, and cheaper imports, which boosts AD. Feedback: An interest rate rise does lead to higher demand for UK bonds, but due to their lower prices. Higher interest rate leads to lower bond prices, resulting in higher  demand for UK bonds. This in turn leads to GBP appreciation,  making UK imports cheaper and exports more expensive, which  depresses aggregate demand in the UK. Cheaper imports mean higher leakage. This reduces aggregate  demand. Question 11 of 15 0.0/ 1.0 PointsThe diagram depicts the Phillips curve and the indifference curves of an economy. This economy has an independent central bank with an inflation target of 2%. Based on this information, which of the following statements is correct? A. The central bank will try to achieve zero unemployment while keeping the inflation at 2%. B. The shape of the indifference curves indicates that the central bank is willing to trade higher inflation with lower unemployment at all times. C. Consider an aggregate demand shock that increases unemployment. Without monetary or fiscal policy to counter the negative bargaining gap, the Phillips curve would shift down. D. Consider an aggregate demand shock that increases unemployment. The central bank would raise the interest rate to put downward pressure on inflation, in order to bring it back to the target rate. Feedback: The Phillips curve means that this is not achievable. The inflation-stabilizing unemployment rate is shown to be 6%: this is the outcome of the wage and profit curves. This is true in the upward-sloping parts of the indifference curves. Where the indifference curves are downward-sloping (e.g. when unemployment is higher than 6% and the inflation is lower than 2%), the trade-off is between higher unemployment and higher inflation. For an aggregate demand shock that increases unemployment,  inflation will fall below the target along the Phillips curve. Therefore  the central bank should lower interest rate to put upward pressure  on inflation, in order to bring it back up to the target rate. Question 12 of 15 0.0/ 1.0 Points The book gives an analogy of an economy experiencing disinflation as similar to a car that is: A. Speeding up. B. Going in reverse. C. Stopped. D. Slowing down but still going forward. Feedback: Disinflation is not the same as deflation (negative inflation), so inflation is still generally positive.Question 13 of 15 0.0/ 1.0 Points In data for the United States, the Phillips Curve: A. Shows a very close relationship between the unemployment rate and inflation. B. Shows a varying relationship between the unemployment rate and inflation that seems to have broken down in the late 1970s and 1980s. C. Shows no relationship between the unemployment rate and inflation. D. Shows a relationship in which inflation usually increases as the same time as the unemployment rate. Feedback: Check out Figure 14.6 in section 14.5 showing data from the U.S> from 1960s to 2010s.Question 14 of 15 0.0/ 1.0 Points When an economy expects positive inflation, the Phillips Curve shifts up and actual inflation is: A. Always equal to expected inflation. B. Always equal to the bargaining gap. C. Equal to expected inflation plus the bargaining gap. D. Equal to expected inflation minus the bargaining gap. Feedback: Remember, if firms and workers expect inflation, they will build that in to their wage demands and prices. But they still have to contend with the business cycle which means they may not be at the labor market equilibrium.Question 15 of 15 0.0/ 1.0 Points Monetary policy can affect aggregate demand and inflation through all of the following channels EXCEPT: A. The exchange rate B. Residential investment C. Expectations/confidence D. Taxes and government spending

Watch the following PBS Frontline video on the financial industry and its involvement in the 401(k) retirement system and read the accompanying publication: http://www.pbs.org/wgbh/frontline/film/retirement-gamble/ (Links to an external site.) and https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0ahUKEwjFk5Ct-YfUAhVRwWMKHUOuCOkQFggmMAA&url=http%3A%2F%2Fwww.demos.org%2Fsites%2Fdefault%2Ffiles%2Fpublications%2FTheRetirementSavingsDrain-Demos_0.pdf&usg=AFQjCNET7cJInkfhUlsT-jvxBtkoMDU_Nw&sig2=A2g0ZPsbXwtT0lu4pMZCuQ&cad=rja (Links to an external site.)Write a minimum of at least three pages on the following questions (size 12 font and double spaced). The paper needs to be submitted as a file into Canvas (Vericite) and a physical copy must be submitted as well. Cite all of your sources. For each of your answers I want you to provide clear reasoning detailing your position using concepts and economic logic learned in class and from the textbook. 1) Why is there a market failure in the 401(k) market? (Hint: read chapter 8 and its description of imperfect information)2) Describe and detail all of the fees/costs associated with a 401(k).3) Calculate two individuals total amount of retirement assets after 30 years of investing using the following two examples to display and articulate the effect of compounded fees on two different individuals' retirement accounts with the exact same mutual funds. The two mutual funds have the same before expense rate of return, but one mutual fund charges a higher expense ratio than the other. Describe what effect fees have on the two different individuals' retirement assets:(a) Yearly Savings: $15,000, Inflation Rate: 2%, Rate of Return:(8.15%-.15%=8%), Expense Ratio of Mutual Fund: .15%, Periods: 30 years(b) Yearly Savings: $15,000, Inflation Rate: 2%, Rate of Return:(8.15%-.65%=7.50%) (It is lower than example (a) due to the increased expense ratio), Expense Ratio of Mutual Fund: .65%, Periods: 30 yearsUse this financial calculator website for the examples:http://www.financeformulas.net/Future-Value-of-Growing-Annuity.html (Links to an external site.)4) Describe and come up with your own solution to alleviate the problems with 401(k)s.