One BC's most successful exports is a business model
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SUMMARY:
This article talks about the Ritchie Bros. Auctioneers, which is a company that auctions big heavy machinery. Before becoming Auctioneers they were a furniture store. They started this company here is British Columbia which was very successful. Last year they opened a half-dozen auction houses in places ranging from Japan and Germany to St. Louis and Chilliwack unfazed by the global economic recession. That adds to existing sites in Dubai, Australia, India, Spain, Mexico and France. Net earnings for 2010 were $65.9 million down from $93.5 million in 2009 due to global economic recession. They are British Columbia’s biggest export companies CONNECTION:
In this article it talks about Ritchie Bros. Auctioneers and how they are one of the biggest auctioneers in British Columbia. How I connection this article and chapter 6 together is by aggregate demand. Both the article and chapter has aggregate demand. This company is one of the biggest export companies and export is a big part of aggregate demand which is the total demand for final goods and services in the economy at a given time and price level. Our goods are selling which will help pay for public services that the government pays for.
REFLECTION:
Ritchie Bros. Auctioneers have done a very good job with their business and making it such a big company. They are helping Canada as one of the biggest exports British Columbia has. Though their products are elastic it is still a very strong company. They have a lot of competition but yet their company still seems to come at the top. Heavy duty machinery is sold everywhere but Ritchie Bros. Auctioneers have business confidence and always try to get new products. So I believe that Ritchie Bros. Auctioneers a very good company and they are going to expand even more which will give us and even more export.
I strongly agree with your points against the increase of interest rate because it certainly will trigger a tendency to save as opposed to spend. However, with a strong Canadian dollar and expectations of a 2% inflation, the interest hike seems appropriate to accommodate the current situation. The reason for this is because increased interest rates would provide lenders with some compensation. Inflation in a growing market is standard, and raising interest rates is a common strategy to deal with possibilities of hyperinflation.
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