Article:
http://www.walletpop.ca/2010/11/13/visa-debit-finally-comes-to-canada-how-it-can-save-you-money/
Summary:
Visa has partnered up with CIBC to introduce the Visa Debit Card to Canada on October 18, 2010. The Visa Debit Card was first introduced in the United Kingdom 23 years ago and is used in about 160 countries already. With this card, consumers will no longer be subjected to monthly interest fees. You won't go into debt because you aren't borrowing money from the bank, like you would if you were using a credit card, and you can't spend more that what you have in your bank accounts. This is one of the main reasons so many consumers are switching to debit cards. Just like the other debit cards, it takes money right out of your bank account. But, unlike others, you can now use this card where ever you go, be it Germany or Korea. The transactions go through Visa's network to process the payment. However, this poses a problem for business. Now, they have to use 2 systems, Visa's network, and Interac's. Interac charges a flat fee while Visa charges a percentage of the transaction.
Connections:
The Visa debit card can save you money, not your business. With every transaction made with a credit or debit card, the company is charged. Interac, the company transfer transactions between companies, charges a flat fee for using their service. The new Visa debit card makes it more expensive for merchants as Visa charges a percentage of the transaction. It costs only about 50 cents to process a $150 transaction, but with the Visa debit card, it would cost $1.72. That's more than double. Businesses make more than 1 transaction so their expenses could rocket from, maybe, $50 to $100. This may cause businesses to raise prices. Is absorbing this expense even an option when it's so high?
Reflections:
This new card is widely accepted, in reality and online. We don't have to pay any credit bills. Unlike the usual CIBC debit cards, you can use this card internationally. It has benefits, but it has many down sides to it, too. If businesses choose not to absorb the expense and raise prices, we would have to pay more for everything. We already have the HST in place, we don't need more wallet emptying. At the same time, some businesses may choose not to accept this card at all. In that case, they may lose some customers. It wouldn't hurt the business too much because this card is still relatively new and not many Canadians have it, yet.
Monday, January 10, 2011
Monday, October 18, 2010
Chapter 11 Blog - Oil Prices?
Article: http://news.yahoo.com/s/afp/20101018/bs_afp/saudioilopec_20101018231628
Summary:
This article is about the Saudi Arabia's oil minister wanting to stabilize the cost of oil. Saudi Arabia can maintain a production capacity of 12 million barrels a day which is 50% more than it's current production. This means that there are more oil that can be produced but aren't being produced. This drives up the oil cost. It's all supply and demand. The less oil is produced and the higher the demand, the higher they can jack up the prices. Right now, they have a surplus of oil that can be easily accessed, yet they aren't producing it to it's highest potential. This is why the oil minister wants OPEC and oil producers to work together to keep oil prices in a range of $70-$80/barrel and to make sure there is a steady supply of oil. Officials had said that this price range is a "fair price range".
Connections:
What does oil pricing have anything to do with merchandising? Well, in order to transport items to sell, you need oil to power whatever your choice of transportation is. If the oil price is higher, the cost of transportation would be more expensive, thus making everyone raising their prices. Are people going to be willing to spend more on your merchandise? Also, it could heighten your expenses if you are in the the manufacturing industry because you may have machines that operate on oil. The transportation cost change would affect the Freight-in account which in return will affect your profit. The oil pricing affects everyone, from manufacturers to consumers.
Reflections:
Merchandising businesses raising prices would mean we, as consumers, would have to take more money out of our wallets. The oil prices will not, however, affect our wages, though. It doesn't help that our own transportation would cost more. If they were to actually go through with it and stabilize the oil prices at a "fair price range", everyone will benefit. Businesses will make more and we would have to pay less, hopefully. Saudi Arabia may not make as much as it did, but they will, at least, have a steady income. The steadying of oil prices can help predict what kind of financial picture is up ahead, to better plan for expenses.
Summary:
This article is about the Saudi Arabia's oil minister wanting to stabilize the cost of oil. Saudi Arabia can maintain a production capacity of 12 million barrels a day which is 50% more than it's current production. This means that there are more oil that can be produced but aren't being produced. This drives up the oil cost. It's all supply and demand. The less oil is produced and the higher the demand, the higher they can jack up the prices. Right now, they have a surplus of oil that can be easily accessed, yet they aren't producing it to it's highest potential. This is why the oil minister wants OPEC and oil producers to work together to keep oil prices in a range of $70-$80/barrel and to make sure there is a steady supply of oil. Officials had said that this price range is a "fair price range".
Connections:
What does oil pricing have anything to do with merchandising? Well, in order to transport items to sell, you need oil to power whatever your choice of transportation is. If the oil price is higher, the cost of transportation would be more expensive, thus making everyone raising their prices. Are people going to be willing to spend more on your merchandise? Also, it could heighten your expenses if you are in the the manufacturing industry because you may have machines that operate on oil. The transportation cost change would affect the Freight-in account which in return will affect your profit. The oil pricing affects everyone, from manufacturers to consumers.
Reflections:
Merchandising businesses raising prices would mean we, as consumers, would have to take more money out of our wallets. The oil prices will not, however, affect our wages, though. It doesn't help that our own transportation would cost more. If they were to actually go through with it and stabilize the oil prices at a "fair price range", everyone will benefit. Businesses will make more and we would have to pay less, hopefully. Saudi Arabia may not make as much as it did, but they will, at least, have a steady income. The steadying of oil prices can help predict what kind of financial picture is up ahead, to better plan for expenses.
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