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Unformatted text preview: Retailers: Customer Value - How retailers capture customers Acquisition - acquiring you as a customer Retention - How do they keep you as a lifelong customer? Enhancement - How do they sell you more through additional products. Firms budget MV=MC to target their customers. Factor Price Equalization: Free trade and common technology = equality in prices This doesn t always happen as barriers to trade, non common technologies are present. Peugeot: 2nd largest auto maker in Europe - located in France 100,000 employees Looking to lay off some workers - The company wasn t planning to announce this until after the presidential elections, however, information was leaked to the public. More likely to favor the center right party. Dominique Strauss Kahn was arrested again this week for soliciting prostitution. The memo from Peugeot about labor costs rising in France was leaked to the public. Labor costs: France - 35 per hour (social security costs higher in France Increases wages) Germany - 29 per hour Spain - 22 per hour Slovakia - 10 per hour Peugeot will be laying off French workers in order to cut costs France/Italy/Spain are the biggest customers of Peugeot, the recession in Europe has decreased demand for their automobiles. The Euro and the Gold Standard: Ron Paul - Avoid ination by turning back to the Gold Standard The United States has a moral obligation to honor its debts without relying on ination to counter these debts. The British used the Gold Standard allowing them to borrow money at low interest rates. Their credit was essentially high. Paul argues that by turning back to the gold standard we will re establish our credibility as a nation and the Federal Reserve will essentially be abolished....
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- Spring '10