96

Classified in Economy

Written at on English with a size of 5.79 KB.

LUXOTTICA

Lux owns Ray Bans - they own it so its completely theirs while other brands like Versace and Gucci are part of licensing deals.

Raybands- they own the brand so costs to do w/ raybans would be the sosts w/ respect to designing and manufacturing but they do not have to pay to use the raybans name On the other hand, Gucci has Luxottica do the designing bc thats the essense of a licening agreement

Lux designs the glasses with imput from brands

If you control a brand they would make more money. It would be damaging for Lux if the other brands decided to go elesewehre like Bravs sunglasses importium

Channel- high fashion designer that sells beutiful clothing. Sunglasses go well with ther stuff but they dont have expertise in desiging and manufacturing sunglasses

We know Lux designs great glasses so Chennel enters a licensing agreement where Lux knows what they are doing with sunglasses.

If you enter a licensing agreement from Channels POV all they have to do is have this agremment, they have to worry about manufacturing and there will be a royalty for every pair of sunglasses sold by Lux. Lux will give a royalty to channel so channel will be able to collect money w/ relatively little effort so you signal licensing agreement. LA can cause losing control, damage sunglasses.

It is great if you have a brand, you dont need to be an expery at making clothing and making other things. You can extend your profits by entering into a LA with businesses that are experts in that area,

The downside of LA : sometimes companies are careless and dont know what they are doing, quality control issues.. They will damage the rep of your sunglasses but along with other items in brand.

CURRENCY

who likes a high dollar? any business involved in importing, if the canadian dollar is strronger they will be able to buy imports cheaper.

In order to buy stiff from other countries you have to buy their currecncy ex. Go to france, you have to pay businesses in EURO

If we are exporting a lot there is a demand for canadian dollars, so then that if more people want the Canadain dollar it will go up

If canadian dollar is lower thatis what makes our imports more attractive

If people buy a lot of our stuff - that puts good pressure on the dollar.

RELATIVE ECONOMIC PERFORMANCE:

stronger demand for canadian products, so if a lot of popel are buying our stuff, economic performance stat rates make our currency stonger.

RELATIVE INFLATION RATES

we tend to have a lot of inflation: prices go up so buying power of the currency is going down.

Since ppl want to buy our stuff, this is why foreigners have to buy our currency.

Another thing that makes people want to invest in your country is stable politics

If your rich and living in an unstable country you want to move your money somewhere like the US but also look at the inflation rate, if it goes up, it would be a lot less attractive bc their money would lose value and spending power.

RELATIVE INTEREST RATES:

Ex. Austalia set interest rate at 5% and we set it at 10% we can anticipate that alot of people are putting their money in canadian banks since you would get a 10% rate of return  in order to do that you have to buy canadian dollar and deposit it in a canadian institute. Interest rates- people compare interest rates and move money around especially towards a higher interest rate.

We are affected by the actions of other countries. Political unrest causes people to move their money around which strengthens our dollar.

CANADAS PRODUCTIVITY RECORD:

Country is productive meaning that you can get a lot, and people produce a lot and in essence whealth is getting up. That is going to strengthen the dollar bc we are producing a lot of stuff in essence. If you produce a lot of value from less resources that strengthen the economy and dollar.

TRADE AND CURRENT ACCOUNT BALANCES

Refers simply to the fact that if on balance, our imports vs exports if we are importing more than exporting. That means we are are taking more CAD dollars and buying foreign currencies so we can buy imports.

Entradas relacionadas: