The Economics of Limiting Russia’s Expansion

The Economics of Limiting Russia’s Expansion

The New York Times Mar 20, 2014 by Peter Boone

Link: http://finance.yahoo.com/news/economics-limiting-russia-expansion-040131152.html?soc_src=copy

If you have been keeping up with the news lately, it has been a rather... Large topic of discussion among the United States and Western Europe that Vladimir Putin is looking to expand Russia's territory. However it is quoted "On present course, the West’s strategy looks set for more failure; only a major shift in economic strategy by the Ukrainian government is likely to make a significant difference. Giving or lending lots of money to Ukraine is unlikely to help and may even be counterproductive." 

When the Soviet Union broke up in 1991, Ukraine’s product per capita was greater than Romania’s, slightly higher than Poland’s and about 30 percent less than Russia’s. To simplify things, Ukraine is broke. Ukraine has gone through multiple economic failures and doesn't want to oppose decisions being made in other regions of Russia. Nobody wants to oppose Putin. It would affect the U.S. and England's imports and would cause a great amount of distress across Europe. At this point it becomes more of an overall task of avoiding war than just playing the game of economics. "A stable Ukraine, with an economy that catches up to its neighbors, is the best defense against disintegration." Putin is the cause for this disintegration, but Ukraine, the only region at this point who has even suggested taking action against Putin, lacks the funds to do so. It certainly will be interesting to watch how things unfold over time. 

Economics: Making Your Advertising More Effective

2/05/2014 By: John Owrid

Source: http://www.forbes.com/sites/johnowrid/2014/02/05/behavioural-economics-gives-the-advertising-industry-a-nudge-in-the-right-direction/

Behavioral Economics Gives The Advertising Industry A Nudge In The Right Direction:

Believe it or not, economics and business/brand advertising tie closely together. John Owrid, author of this article, briefly explains tactics companies use to sell their products more effectively. I thought it was fascinating that.... In something that seems as simple as placing products on shelves, architecture also comes into play and is a big factor. Owrid explains this tactic called "Choice Architecture" and uses the example of soap. Say, for example, you place soap on a store shelf. Studies are now showing that if you place the soap 

at an average customers eye level, they are more likely to take notice of it, and purchase it. Mathew Willcox, Executive Director of advertising agency Draftfcb recently said, “one of the perpetual challenges to marketers is getting people to switch brands, and it seems that some way of creating a sense of closure with their old or existing choice could be a very interesting approach.”