Would you insure this house?

An article from the Guardian about the refusal of insurance companies to continue to offer protection against flooding. This follows the increased number of claims due to our increasingly volatile weather.

http://www.guardian.co.uk/money/2012/nov/26/flood-insurance-talks-reach-crisis-point?intcmp=122








 Use the concepts of Marginal Cost and Marginal Revenue to justify the decisions of the profit maximising insurance companies.

Will Arsenal win trophies??

Great to see Arsenal's demolition of the old enemy on Saturday. But is Ivan Gazidas' statement that Arsenal will be able to compete with the top club realistic? This article on the BBC makes some confident statements about some important negotiations regarding Sponsorship deals that may prove pivotal to the long term future of the club.

http://www.bbc.co.uk/sport/0/football/20220153

Exam practice

List the different revenue streams available to Arsenal Football Club.         (5)

To what extent is Sponsorship the most important factor contributing to the business success of Arsenal Football Club.         (15)

POSTED BY PJG

What is the real Economic impact of Hurricane Sandy?

Having been in New York over half term it was easy to see how the economic impact from the recent hurricane might run into the billions. For a start, the markets were closed in New York on both the Monday and the Tuesday of the hurricane. Shops were shut (lost retail sales), offices were closed (lost productivity), homes and important infrastructure were damaged causing huge costs for firms, households and insurance companies. Governments have to spend millions on co-ordinating relief and clean up efforts; all of which led to an estimated cost of $30-50 billion.

But do these disasters really cause long term economic damage?

Clean up efforts and rebuilding create jobs  and encourage spending which contribute towards growth, and projects begin to improve old or outdated and damaged infrastructure leading to figures which suggest any change in GDP is only temporary. The following article provides an interesting argument as to whether the longer term economic effects of such a disaster on the US economy are really as bad as many people think......http://www.businessinsider.com/hurricane-sandys-impact-on-the-us-economy-2012-11

POSTED BY MAH