Internet Article/Economic Theories
University of Phoenix
ECO360/Economics for Business I
June 21, 2007
Supply, Demand and Price
In applying economic theories in today’s society is a broad case of reality. One must understand how policies most be carried out effectively to keep valued judgment separate form analysis. A great economist must divide economics into normative, positive and descriptive economics in order to make clear distinctions of his/her objectives. In this paper, I will summarize an article called “A View on Flextronics’ Success”and explain why changes occurred in supply, demand, and price.
Flextronics is reducing supply chain cost and excess ...view middle of the document...
Macro does not look at individual prices but take an average of prices or money as an item to smooth the progress of exchange of goods and services.
Another economic change was globalization outsourcing that resulted into smaller specialties with customers and partners in an electronic supply chain that required levels of collaborations and communication. Flextronics used the functions of the economic system. They chose the right combination of goods and services depending on their customer’s locations and requirement by knowing what to produce due to technological changes, growth and resource distribution. Being the world largest electronic manufacturing provider, headquartered in Singapore, came from understanding the policies in other countries; they often experienced fluctuations in customer demand has contributed to success. How to produce electronics that society wanted and valued the most reflected the manufactures mix of resources to produce maximum output. Usually if a company has to increase the price of a product, they will result into substituting for cheaper resources to minimize their production cost. Flextronic did not do that, they knew what and how to produce and which to forgo. They figured out whom they should produce their goods to by researching different sectors and who would provide the greatest...