Through my research, Walmart’s success in china mainly due to the takeover action of local (Chinese) supermarket called “Trust mart”. This takeover costs Walmart 1 billion dollars but the benefits in long-run will be definitely over that.

Initially in Chinese supermarket industry, Carrefour occupy the biggest market share, followed by Tesco , Trust mart, etc. It is very hard for the new producer to join the market since the market is more or less already saturated. The scarce land resources make it is the company like Walmart to construct a new mall in downtown of megacity like GUANGZHOU.

However, Walmart take advantage of its own huge capital flow and takeover the second largest supermarket franchise in China directly, combing with a few Walmart opened before this takeover, it becomes the largest supermarket franchise in China and take numerous advantages. For instance, the market in central GUANGZHOU named “Trust mart” before now named Walmart.

The next step is easy for Walmart, just do what they do before in Western country. Economics of scale makes the price lower and indeed much more competitive, the mature management team organizes all stuff in order. The variable cost for Walmart is lowest so its price is most competitive in the market. For the huge sunk cost, as long as Walmart take advantage of variable cost, as the time goes, it must result in multiple returns in near future.

Reference：

Zhang, Yuanfeng. “Wal-Mart’s success in China.”yuanfeng zhang’s blog. N.p., 8 Oct 2013. Web. 16 Nov. 2013.

First and foremost, it is reasonable for micro-condo to exist in market since it is market itself which creates it. Toronto is a cosmopolitan city like NYC and Tokyo, so the micro-condo will success and that is what some customers really want.

The existence of micro-condo proves that the demand for housing is essentially the demand for function of housing but not the space for housing. People’s satisfaction will not be affected much if they just have smaller space to live but enjoy similar facilities. We can even conclude that the utility per dollar people spend is higher for micro-condo as they pay less to it.

The author mentioned the problem of opportunity cost while it is hard to quantify it indeed. Each individual has own evaluation of this trade-off.

On the other hand, we should know that the market segment for micro-condo is not as large as traditional housing. It will raise problems as housing is a type of goods that we cannot re-produce it when we find there is excess supply or any other problem exists. Consequently, the market research for the demand and type of demand is paramount is this case.

Reference:

Sara, Da. “The Market will Eventually Tell….” Jia Sheng (Sara) Da’s Blog. N.p., 6 Oct 2013. Web. 10 Nov. 2013.

The attachment blogs show why people need a budget and how people can form a budget by software in a more efficient way.

People need budget not because of you need a perfect balance of payment but you need to be in charge. “ In charge” in someway means you need to be in control of how you pay your bill. The balance between long-term and short-term goal is what budget do. Retrospect to what we have study in Economics, when we consider a consumption decision, it is a capital good or not is significant.

That is what the software can help us, it can distinguish the type of consumption you do today and analyze the expected return of future (if it has). Help you to make decision in more technical way. Also, the software can analyze if your consumption is “healthy” and warn you. If you weight more in consume food than you expect but you total spending is in budget constrain, people turns to ignore those difference, however, it may put potential threat in your future budget.

In my point of view, an organized budget not only necessary means you have a excellent financial plan but also you get an predicted overview of how your daily life goes. Every aspect of your life will be changed subsequently cause you are an more self-consistent person.

Reference:

Miller, Amy. “Staying on budget might be easier than you think.” Amy Miller. Excel Blog, 31 Mar 2011. Web. 9 Nov. 2013.

After considering components of financial market and examples of how it finances capital for company (IPO). It is important for us to have a understanding of the characteristic of the financial market, including participants.

Financial market as a whole is the largest and most efficient market in the world, it breaks the limitation of space and time (of transaction) to make a deal. It provides chance to everyone to join the transaction, especially in first and second market. It must be noted that there is no difference between each force in the market qualitatively, the only difference is how strong the force you held, or in other words, the quantitative difference. This feature makes financial market offers everyone chance but simultaneously everyone risk, proportional to how much you held now. It seems the fairest market in the world.

However, otherwise, the big agency like banks and mutual funds can take advantage over the amount of capital they own by manipulating the market price in all sub-markets, making profit out of nothing, like what George Soros do in 1992 and 1997.

Overall, as we comprehend the essence of financial market is the counterbalance of confidence of investor in money term, we should rationally make our decision in financial market.

Reference:

Beattie, Andrew . “How did George Soros “break the Bank of England”?.” Investopedia. n. page. Web. 3 Nov. 2013.