Inggris niaga semester 1 adbi4201

Soal No 1

Auction is a method of selling where prices have not been set and determined through a
competitive and open bidding process. The auctioneer acts as the selling agent in most cases and
receives a commission on the sale price. In Indonesia itself, English auctions are often used in
Indonesia compared to Dutch auctions, the difference between the two can be seen from the
following explanation:

Open ascending price auction

The open ascending price auction is the most common type of auction. We know it as the British
auction.

How it works is relatively easy. In this auction, the auctioneer starts at a certain price. Participants
bid openly with each other. Subsequent bidders must submit a higher price than the previous bid.

When the auctioneer announces the price, the bidders state their bid at the higher price. The
auctioneer then uses that price to submit to other participants. Another participant then raises the
bid price and the auctioneer uses it to offer it back to other participants. This process continues until
no participant is willing to bid further. At this point, the highest bidder is the winner and pays
according to their bid.

The buyer may not be a bidder and may not be physically present on site. They ask representatives
to make bids on their behalf. Furthermore, in online auctions, participants submit bids electronically.
The highest bid is publicly displayed so that participants can use it as the limit for their next bid.

Open descending price auction

The open descending price auction or Dutch auction begins when an auctioneer begins bidding at a
very high price for a number of similar items. Participants can buy as many units as they want at a
certain price.

If the first bidder does not purchase all units, the auctioneer will lower the price for the remaining
units. Then, if the second bidder also doesn't buy the remaining units, the auctioneer lowers the
price again. The process continues and the price continues to fall until all units are bid. Or, that is
until the seller's reservation price is met.

Allocation of items according to bid orders. The highest bidder chooses their item first and gets what
he bids on. The next allocation is for the second bidder and so on.

Soal No 2

The impact that will occur if the exchange rate weakens are:

Inflation Could Soar

If the exchange rate continues to weaken, it will trigger inflation. The prices of goods in the country
will increase. Especially for goods or products that are processed from imported raw materials.
Why? Because producers have to spend even more to buy raw materials from abroad, aka imports.
Can Trigger a Trade Balance Deficit

If the depreciation of the exchange rate continues, the volume of exports will indeed increase. This is
specifically for exports of raw commodities which have been commodities in a country. Because the
more the exchange rate weakens, the prices of exported goods from that country's raw commodities
or other products that do not depend on imports will be cheaper than other countries.

Soal No 3

Market failure is a market condition that fails to carry out its function to allocate economic resources
efficiently in producing goods and services. In this case, the market mechanism cannot run efficiently
in allocating existing economic resources in society. The market failure that hit in the midst of
COVID-19 occurred in various sectors, the first from the health sector, where in this sector the
government has not been able to meet the needs of medical equipment such as the lack of masks
and the lack of personal protective equipment.

Some examples of market failures that occurred during the COVID-19 pandemic include:

1. First, from the health sector, where the government is still unable to meet the need for

Personal Protective Equipment and Masks for medical personnel.

2. Second, from the transportation sector, where transportation is a public good, its operating
hours must be limited, so that it does not provide benefits to the wider community.

3. Third, from the trade sector, where inflation occurred for some imported materials, especially
basic necessities that experienced inflation, for example, sugar, which experienced quite drastic
inflation to reach Rp 18,011/kg from the original price of Rp 13,000/kg. Even at the beginning of the
first case in Indonesia, there was already a crisis caused by Panic Buying. People flocked to buy
masks, hand sanitizers, and disinfectants in large quantities, resulting in a crisis or scarcity of these
items.

4. Lastly, from the MSME sector because there are restriction policies or restrictions on economic
and social activities (because of Social and Physical Distancing), thereby reducing people's
purchasing power because people spend more time at home.

Soal No 4

In my opinion, outsourcing is very beneficial for companies, while the benefits of outsourcing for
companies are:

1. Increase company focus Currently, business competition is more open and tighter. For this
reason, it is necessary to consider outsourcing of various company needs. Currently, many
companies tend to delegate some of their company's needs to third parties on the grounds
that if all things are done by the company themselves, the company's attention or focus of
energy will be more devoted to things that are not its core business.
2. Accelerate the process of adapting to business changes By outsourcing, companies can
increase their speed in making changes. This is because the external parties recruited are
experts working in the same field and in the same industry so that the speed of making
changes can be achieved by outsourcing.