Economics of Disney

Topics: Walt Disney, Macroeconomics, Inflation Pages: 4 (885 words) Published: December 22, 2013


Economic Analysis of the Walt Disney Company
Written By Kristina DeLong
Jones International University

November 7th, 201
The Walt Disney Company within the Circular Flow of the Economy

The Walt Disney Company fits into the Organizations category. They have so many different parts to their company including: movies, theme parks (Disneyland and Disneyworld), merchandise stores, teaching programs, cruises, hotels, etc. This corporation is huge and still growing. All parts of Disney have employees and those employees come from households and that is an inflow of resources, but they pay these employees and that is an outflow of cash. The movies, merchandise, parks, cruises, hotels, and even teaching programs are their products and services, which are outflows.

When linking to the circular flow chart, households would be the employees, but also it could refer to their customers. For their customers the services provided are the outflow and the payments made from the customers is their inflow. The government fits into this because not only does the Walt Disney Company pay them very high taxes, but employees pay taxes on their wages and customers pay taxes on their purchases. That would all be inflows for the government and an outflow for all those paying taxes.

The Economist (2010) explained how Disney has reached out and brought modern and interactive English learning classrooms to China and they call its Disney English. The Walt Disney Company (2012) shared that their Disney English recently opened three new centers in Guangzhou, expanding into the Southern China market. This service would fall under residents of other countries, which is an outflow and the customers paying for their children to take these classes to learn English are the inflow. Another example that falls under residents of other countries would be the fact that Disney has stores in other countries and people all over the world buy...

References: Bureau of Labor Statistics. (2013). Labor Force Statistics from the Current Population Survey. Retrieved on November 15th, 2013 from http://data.bls.gov/timeseries/LNS14000000
The Economist. (2010). Middle Kingdom meets Magic Kingdom. Retrieved on November 7th, 2013 from http://www.economist.com/node/16889262
Rittenberg, L., & Tregarthen, T. (2009). Principles of economics. Nyack, NY: Flat World Knowledge . [Text] Chapter 20: Macroeconomics: The Big Picture
Trading Economics. (2013). United States GDP. Retrieved on November 16th, 2013 from http://www.tradingeconomics.com/united-states/gdp
Trading Economics. (2013). United States Interest Rate. Retrieved on November 16th, 2013 from http://www.tradingeconomics.com/united-states/interest-rate
The Walt Disney Company. (2012). Disney News This Week: Disney English Expands. Retrieved on November 7th, 2013 from http://thewaltdisneycompany.com/blog/disney-news-oz-great-powerful-poster-disney-english-lion-king-dublin-abc-news
US Government Spending. (2013). Government Spending Totals. Retrieved on November 16th, 2013 from http://www.usgovernmentspending.com/total_2010USbt_15bs5n
US Inflation Calculator. (2013). Current US Inflation Rates 2003-2013. Retrieved on November 15th, 2013 from http://www.usinflationcalculator.com/inflation/current-inflation-rates/
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