Economic Layoffs at Gateway
Macroeconomics is the study of the economy as a whole, which includes inflation, unemployment, dividing line cycles, and growth (Colander, 14). In todays society, Americans rely on having the option to view as multiple service providers for their home or office. Several businesses especially those who work nationally or internationally with other businesses, emphasise to find the inexpensive and new innovative ways to centralise cost. My brother currently works for Gateway Computer Incorporated. He provides business consulting services to hundreds of companies worldwide. Gateway has offices, retail stores, and distribution centers passim North America and Canada. An article in The Wall highroad Journal dated March 18, 2004 talks about how Gateway, a main producer of personal computers, which serves the aerospace, automotive, commercial transportation, just to stimulate a few along with other industrial markets is homework to cut about 1900 of its 11000 jobs in the United States this year and move these consulting jobs to India in a bid to cut costs. The company excessively plans to close 76 of their 268 retail stores.
The reason for the reduction and movement of jobs for Gateway will be done in an fret to offset $1.34 billion dollars in debt incurred over the last ternary years.
In December of 2001 the company had just completed a two-year campaign to cut costs by $1 billion dollars by reducing the workforce by 25%. The article states that by reducing the workforce by some other 17% the company will begin to see lolly at the 550,000 units sold verses the break even strategy they argon currently operating under.
The topics of supply and demand are very(prenominal) important in the economic aspect of business. Supply is a schedule of quantities of goods that will be offered to the market at unlike prices (Colander, G-9).
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