ARCHIVES: Quarter 4 Year 2018

First NON-TRIAL decisions, due this Friday September 28th at 8:00 PM Eastern Time.

 

Results from t he TRIAL decisions have posted. Please enter ALL startup decisions and contracts this week so you may begin the simulation in the opening quarter, which takes place in Quarter 1, 2019. You must ignore any "Current" values in your decision menus. These current numbers are derived from results of the trial decision last week, but they are not real and will not be considered when processing decisions for your first non-trial decision this week. Enter any value needed for the launch of your new firm as though you have zero history (number of shares of stock outstanding = zero, inventory = zero, plant capacity = zero, etc.).

 

Remember that it takes two quarters to build manufacturing plants before production can begin, so please purchase finished goods from Peacock Industries (Advanced Firm 18) for the first two quarters. Although you do not need to negotiate a contract with Peacock, you DO have to use the correct Peacock sales price per unit of finished goods or your contract(s) may be canceled. To purchase finished goods from Peacock enter the quantity of units of each type of product you want to purchase in each area to which you want the finished goods delivered (a total of 4 contracts if buying both product types for both areas).

Per Unit Price of Product Type 1 = $56

Per Unit Price of Product Type 2 = $99

 

HOW DO WE CALCULATE DEMAND? This is a common question asked by teams every quarter. Every market group will have a unique level of demand for each product type because of the unique strategies and decisions employed by the firms within each market group. However, the general scale of demand will be the same across all market groups. Please be sure to read the "OVERVIEW" chapter of the simulation user guide linked below, which provides a concise answer to this question. Annual demand for a given product type is presented along with the seasonal demand for a given product type in a given quarter.

 

If you have questions, please read the User Guide (linked from the "tools" tab of the landing page, and also here: https://globalview.org/txt_overview.html

If you cannot find the answer you need from the Simulation User Guide you may ask your Simulation Administrator Kristi for assistance: GlobalviewAGV(at)gmail.com

Note that when emailing the address above you will need to replace the (at) with the @ symbol.

 

 

ECONOMIC NEWS:

The EU unemployment data indicates that the recovery has finally reached lower income workers, especially in depressed areas of Greece and Spain.  This is especially true in the tourism sector.  Housing markets throughout the EU have increased demand and prices are slowly accelerating upward.

 

GDP increased about 1% for the quarter.  Economists and central banks see the slower rate of growth as good news.  A 4% annual rate can be maintained with a minimum of inflationary pressures.  Some point to the rate and suggest the tighter monetary policy is working.  Other economists suggest the rate is simply ‘the calm before the storm’.  They say the slower rate is an anomaly and probably due to bad weather during the holiday season and the realignment of consumer needs and wants with their now increasing levels of income.  T-bill rates rose as did corresponding rates in the EU.  The coordination of NAFTA/EU monetary policy have kept exchange rate movements in a narrow range.

 

NAFTA unemployment data shows continual quarter-to-quarter improvement.  Canada’s personal income levels are increasing at a faster rate than in the United States.  Some suggest the rapid increase is due to their growing export in the energy sector, mainly oil, gas and electricity.  Also, increased tax revenues are being invested in infrastructure, both new and refurbished.

 

U.S. corporate tax rates were left at current levels as Congress focuses a major tax overhaul on personal incomes.

 

Japan had a marked improvement in GDP growth during 2018. 

 

China reported upper-end consumers are favoring foreign made products over Chinese equivalents as seen in a host of products from autos to perfume.  While exports are much larger than imports, the government voiced concern about the trend.

 


INDUSTRY:

 

Pending results of first non-trial decisions.


 

CONTRACT

 

Peacock Prices

P1 = $56 per unit

P2 = $99 per unit

 

*Remember that Peacock does NOT sell raw materials or plant hours. To purchase raw materials, use the "Raw Materials" decision form. These materials must be ordered one quarter in advance of using them in production. These will always be your cheapest source of raw materials.

 

To order plant hours, use the "Capacity" decision form to order stage 1 and stage 2 plant hours in the area or areas of your choice.


 

STOCKS

 

Pending results of first non-trial decisions.