Analysis of Price Setting, Poverty and Obamacare

Analysis of Price Setting, Poverty and Obamacare Question : 1 Nike’s charge a price Considering the Nike’s charging a price of a Air Jordan Basketball Shoes, economically we shall have to discuss about the price determining factors that why and how the Nike’s and under what circumstances is defining the price. The followings are the factors which can influence the Nike’s price determination: Cost of Product: This means calculation of all costs including procurement of raw material, manufacturing, distribution, labor, and other miscellaneous expenses. If the rate is not inclusive of break-even there would be trouble. So Nike while fixing the price must have notice the cost. Profit Margin: After measuring the cost, the business wants the profit taking as to what extant there should be the earning. So that it may influence the Nike’s strategy while determining price. Market Demand: It plays also a vital role as in case of less demand the price shall be lower while in case of high demand the price shall be high. Demand & Supply concept affects the price determination. Experience & Market Credibility: This is also a known factor to the price determination because the credibility in the market gives the seller sound position and the buyer trust the goods produced by well experienced and well reputed manufacturer so that they also influence the price determination factor. Market Competition: In case of excess of business rivals, there is a strong competition occurs in the market so that the prices are to be determined in a way to attract the buyer maximum. [1] The all above factors generally influence the price determination therefore we can say that Nike can charge the price as it may has considered the above factors. Its cost & profit margin as well product demand may influence and would demand the price that Nike is going to fix. Que: 2 Explain in detail what is being done to combat poverty? But also add why poverty is so hard to define and ultimately solve. Th e poverty is a state of person in which is becomes unable to meet his necessities from the resources available to him. The necessities include, food to maintain the hunger, education, healthcare facilities, shelter to reside, clothes and the means to live and improve. It is a hard task to define and measure the poverty since past because the growth rate of the population is increasing with a high margin than the growth in resources. All around the world especially the third world countries are facing this problem more. The United Nations has been planning and working to reduce the poverty in collaboration with IMF, World Bank and other financial institutions. A statistical figure printed by â€Å"One Day’s Wage† show that the 2.4 billion people around the world have been living on less than $ 2/day and approximately 1.2 billion are living on less than $ 1.24. (Extreme Global Poverty) [2] . About 3.4 million people die every day because of water related disease and appr oximately 768 million people have no access to clean water. The number of dead due to HIV/AIDS is 11,700 while 61 million children having the age of primary education are not attending the schools. In every minute at least one women is being die due to pregnancy or labor complications. 29.8 million People are enslaved. (The World Bank Survey and One’s Campaign). Strategy of One day’s Wage is to get the donation of one day from the individuals at global levels to combat the poverty and provide the aid to the people.