Wednesday 17 March 2010

Explained! Mechanics of world economy in the 21st century in 130 words

Firm X is located in China. Has a product call BuyMe. It is a good product (sold at $1) and the marketing campaign is effective. It appeals to 0.1 of the people in the country, who buy the product during the first year since its release.

Firm Y is located in France. Has a product call PurchaseMe. It is a good product (sold at $1) and the marketing campaign is effective. It appeals to 0.1 of the people in the country, who buy the product during the first year since its release.

Firm X then sells 1,325,640 items the fist year. Firm Y sells 62,048 items the first year. Firm X sells 21 times more items than firm Y. Firm X buys firm Y. Firm X moves production off-shore ;-)

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