RSM100H1 Lecture Notes - Lecture 2: Emerging Markets, Inferior Good
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China and us trade war, trump tries to keep the money in us own economy, by setting a tariff of. 10%-25%, us companies can be comparable to the cheap products from china. Apple new announced their new product new iphones. Apple is i(cid:374)(cid:448)e(cid:374)ti(cid:374)g so(cid:373)ethi(cid:374)g that"s already (cid:271)ei(cid:374)g i(cid:374)(cid:448)e(cid:374)ted, (cid:271)ut si(cid:374)(cid:272)e they were once the leader of innovation, people still believe they are the leader. Apple phones works like a status symbol, make people think they are rich (works like a diamond). Their revenue started decreasing because more and more people realize that there are many cheaper subside products in the market these days. In responds, apple should not directly drop their price since it will break the illusion the company created that their phone works as a status symbol. Now, they announced 3 new iphones, including the cheaper iphone xr, giving people an option.
