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Essay / Research Paper Abstract
This 3 page paper considers a case supplied by the student. A film company has produced a high cost documentary. During the production period, but before release, economic figures indicate that the country's GDP has fallen by 4%. This paper discusses the potential that this could have on the way the company releases the documentary. The paper then considers the impact the changing macro economic conditions may have on future documentaries currently in the planning stages. The bibliography cites 3 sources.
Page Count:
3 pages (~225 words per page)
File: TS14_TEGDPdoc.rtf
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Unformatted sample text from the term paper:
economy. For a company, such as donkey films, who is wrapping up production $1.5 million documentary, the use of a fall in GDP could have an impact on the release
of the documentary as well as the remaining projects which are in the planning stages. The drop in GDP indicates a drop in production within the country (Nellis and Parker,
2000). The impact of this is usually increased unemployment and a lower level of disposable income available to the companies who might buy the rights to show the documentary, as
well as the individuals who may pay to see the documentary in the cinema, or from television services. This means there may be a lower demand, and the potential revenues
that can be created from the sale of film may be less than initially projected. The problem with the film already made is that the investment has already taken place
and is now a sunk cost. Therefore, the company needs to reconsider the release of the documentary. If it is believed that the documentary is not time sensitive, and that
the current economic conditions are only transitory, then there may be a case of delaying the release of the documentary. If there are indications of an upturn there may be
different conditions in six to 12 months where there will be a greater level of disposable income available to spend on the documentary. However, this will also have an associated
cost as the delay will create an opportunity cost due to the length of time it will take to gain a return on investment (Nellis and Parker, 2000). In addition
to this, there is no guarantee that the economy will improve. In order to create a projected profit in a poor economic climate
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