Question

1) Did the U.S. deficit ever top $1 Trillion before this Fiscal Year 2019? If so, when? What is the difference between the annual U.S. fiscal year deficit and the national debt? 2) Why did Robert Iger resign from Apple, Inc's Board of Directors? What product strategies are Apple and Disney separately pursuing? Is ethical conduct involved here? 3) Why is Governor Newsom and the state of California getting involved in the E-Cigarette argument? Is there a business concern by the state of California about E- Cigarettes? If yes, what is it; if no, why not? 4) What is an algorithm? If true, should Amazon be penalized for using them to their competitive advantage? Why or why not? 5) Why are FedEx financial results so bad? Where does FedEx see its weakness as being critical? Is FedEx concerned about a recessin? If yes, what will happen to them? 6) From this article, do U.S. consumers have a stake in this trade agreement? From the story, who should decide if U.S. grocery retailers carry the foreign produce the free market (U.S. consumers) or government agencies (FDA, FTC, and USDA?) 7) Per the article, is Walmart making a smart business decision or a political decision? From your reading, can you cite other instances or examples why Walmart should not stop selling E-Cigarettes? 8) From your reading, is it a good business decision for Apple to continue building the Mac Pro in this country? Does the tariff make a difference? Why or why not?

Answer 1

Solution. 1. Yes, US has seen deficit of over $1 Trillion during US President Barack Obama government in years 2009,2010,2011. It is covered in leading newspapers and discussions that this year under Donald Trump government US is to face deficit of $1 Trillion through 2022.

Firstly, Fiscal year deficit means when the government's total expenditure exceeds the total revenue it generates during a year. Whereas, national debt is the amount the US government owes to the people who invested in the US bonds.

This year the US budget deficit accounts to $1.067 trillion and national debt amounts to $22.03 trillion which gives us the difference of approximately -$20.0963(in negative value).

2.This year Apple board of directors faced leave of Disney CEO Iger .

Both Disney and Apple are on a vision to launch their own multimedia service of video streaming at a relatively low cost. This might have been a reason for resigning as both company are to safeguard its own interests first.

Ethical behavior comes here as a part of responsibility under Iger to perform for interests of the company(Apple) and should not overlap by taking advantage over it since both are on its way to launch similar service. So, Iger rather selected to leave from the discussions and strategies which might affect lead him to act ethically.

3.E-Cigarette hit the headlines when the Food and Drug Administration confirmed sickening of patients under vitamin E acetate and THC for its users.

Governor Newsom announced state sponsored campaign as major part of use of e cigarette is youth and accounted for highest lung disease this year. This accounts for ban and hazardous effect sign on retail shops and products until they find the reason and solution of this sickness.

Increase in the number of cases of sickening after long use of e cigarette led the government to ban its use worldwidely. This will affect on its business as major part of flavoured smoke were youth.

4.Algorithm is the act of prioritizing products according to consumer searches in a way that the product mentioned above earns the company highest profit.

Amazon here motivates customer in buying labels which they promote as majorly consumed basis on false means. It targets to push them to earn their own profits so their activity should be monitored and charged.

5.FedEx is an American multinational courier delivery services.

This year accounted a major decline of FedEx services revenue as major tax changes were imposed by the Trump government on foreign earnings. Also, major political turmoil between the countries added to its services rendering woes.

Yes, slowing of economy and its incapacity to recover makes FedEx fear of recessin. In such case it rather will cut on its employment and reduction in revenue generation as trade policies have risen and increase in operating costs.

6.US consumers have a stake in this trade agreement. Per capita disposable income makes consumer purchases.

Per capita income is expected to increase which can make grocery retailers carry the foreign produce. Whereas investing in government agencies can bring close the gap.

7.Given the change in scenario of banning e cigarettes as it holds hazardous effect for future, Walmart declares on bringing a ban on its sale. This will bring a positive look on its consumer as it thinks for its consumers before its profits.

8. Apple has announced on to keep manufacturing mac pro as its high end more focused and calls it the most powerful computer and have invested a major amount for its development.

Apple has received tariff exemptions which made it possible to continue its production in US which earlier was in thought process of shifting to China as tariff creates a large gap in the costs involved.