https://www.echeat.com/ Southwest Airlines Name Southern New Hampshire University Table of Contents FINAL PROJECT MILESTONE ONE - Module Three 3 Financial Performance and Health 3 A. Organizational Context 3 B. Recent Financial Performance 3 C. Current Financial Health 4 FINAL PROJECT MILESTONE TWO - Module Five 6 Success Factors and Risks 6 FINAL PROJECT MILESTONE THREE - Module Seven 7 Projections 7 FINAL PROJECT SUBMISSION - Module Nine 8 Business Opportunities 8 Executive Summary 9 References 11 Appendix A 12 FINAL PROJECT MILESTONE ONE - Module Three Financial Performance and Health A. Organizational Context Southwest Airlines is involved in providing scheduled air transportation services in the United States as well as near-international markets. The provision of scheduled air transportation services helps in setting the boundaries for business decisions since the company is usually restricted in operating in the programmed locations. The company is organized and managed by function. There are different individuals in the management of the organization based on the functions that they carry out. The management of the organization has adopted a flexible approach in its operations and associations with both workers and customers. The organization of the company by function is critical in influencing accounting and financial information as well as subsequent business decisions since every task is usually associated with the individuals appointed in the positions. B. Recent Financial Performance The consolidated income statements for the company for the past three years indicate that the company has been successful. This is because the net income for the company has been increasing for the past three years. In 2015, the company made a net income of $2,181 million while in 2016 the net income increased to $2,244 million. In the year 2017, the company’s net income was $3,488 million, which also indicated an increase from the 2016 value. This being the case, the company can be indicated to be performing strongly for the past three years (check figure (a) in the appendix for a graph showing how the company has progressed in terms of net income for the past three years. From the consolidated cash flow statements of the company, it is evident that net cash provided by operating activities was high in 2016 and decreased in 2017. The net cash provided by operating activities in 2015 was $3238 million while in 2016 it was $4293 million. This value indicated an increase from the 2015 amount. Alternatively, in 2017, the net cash provided by operating activities decreased to $3929 million. However, in the case of net cash flow from financing activities, the values showed a constant increase for the past three years. In 2015, the 2018-09-27T03:54:18.817-04:00 http://75.150.148.189/free-essay/Financial-Performance-and-Health-of-an-Organization-Report-45449.aspx MAKING AFRICA GREAT AGAIN/AFRICA IN FOCUS Diversification does not occur in the vacuum. There needs to be an enabling environment to make diversification possible. Economic diversification holds great potential to increase Africa’s resilience and would contribute to achieving and sustaining long term economic growth and development in the continent. A number of factors have been identified at making Africa a better continent for living. For Africa to diversify and grow into one of the most prestigious continents in the world, it needs to reduce aid dependence from the foreign countries/continents. Last year, Africa’s debt stood at 50%, which is way too much for countries to pay back their debts and so this will prevent rapid Africa’s economic growth. To prevent African countries from going into debts, it needs to stick to the resources it has. It needs to practice some strategies such as import substitution strategy, export orientation strategy and also invite investors to invest in African countries. These strategies will diversify the countries economy and this will raise Africa’s GNP and GDP. Just think as to why Europe or North America are the most successful continents in the world....It is because of good governance. Good governance involves designing and implementing policies to nurture fledgling sectors and ensuring that they can develop in an environment that allows them to flourish and contribute more to the national economy. There needs to be efficient co-ordination among different decision-makers and stakeholders in the regional and global economic environment. Different governments of different states, should encourage good relationships between countries. With a good relationship between African countries will help to promote trade between African countries. This will lead to globalization and expanding of businesses which can compete internationally. This will reduce unemployment in Africa and it will raise the standard of living in Africa. Among the various factors that have the potential to drive economic diversification, a country’s natural resources are actually important especially to the developing countries in Africa which mainly depend on natural resources. Many countries in Africa, export natural resources to different continents and the problem with this exportation is that the prices fluctuates which lowers economic growth. Therefore, the need for expanding the beneficiation of such products, and seeking sustainable utilization where possible, are priorities for African economic growth and diversification. So in order for African countries to 2018-03-01T05:00:39.3-05:00 http://75.150.148.189/free-essay/africa-in-focus-45420.aspx Name Professor’s name Name of institution Date A Report on the Performance of the American Economy for 2016 to 2017 The Gross Domestic Product in America grew with 2.8% in the 3rd quarter, which is an implication of economic stability. However, the nation would experience a fall in the index in the subsequent two quarters. The fall in the 4th quarter was an unstable economy as long as it is below 2%. The economy made a rebound in the 2nd quarter in 2017, which was 3.1% from 1.2%. Economists associate the response to the solution to the hurricane disasters in America. Figure 1: The GDP record by the US Depart of Commerce The figure is an illustration of the rise in the GDP in the quarters of 2016 that follows a fall in the second half of a business year. Therefore, the GDP is bound to grow in the last quarter of 2017 after the economic shock following the disruption in weather conditions as a lead to the first half of 2018 (Borissov and Hellier). The retail sales in the 3rd quarter were 0.9%, which shows a low performance in the consumer goods in the market. The prices went to a depression in the 1st and 2nd quarters with 1 and 0.3% respectively. However, companies had reached a peak in the 4th quarter of 2016 with 1.5% increase, but came back to 0.9% in the 3rd quarter of 2017. The number of existing homes sales increased for the three periods with 16140, 16640, and 16860. The government lowered the mortgage rates to enable the population to recover the losses from the weather condition. They may have increased the rates in the 2nd quarter of 2017 as the numbers reduced to 16690 and 16180. The case may mean that the population has made settlements that may influence economic activities. America maintained a consistent figure in the amount of new car sales. The sellers increased their volumes in the 4th quarter in 2016 from 53 to 54 million. The consistence may be the reason for the GDP stability in the period. On the other hand, the sales decreased with 1 million for every period. The sales have increased in the 3rd segment 2017, which affirms growth in the GDP. The consumer sentiments were lowest in the 3rd quarter of 2017. Nonetheless, they reached a peak in the 4th quarter that correlates with the 2017-11-15T14:19:57.703-05:00 http://75.150.148.189/free-essay/A-Report-on-the-Performance-of-the-American-Economy-for-2016-to-2017-45393.aspx The Story of me through a Mini-Autobiography Student’s Name Institutional Affiliation The Story of Me through a Mini-Autobiography Introduction Looking back at my life, I can honestly say it has been about boldness and making great sacrifices on my part and my family to attain success. The date was 16th March 1995 and as the subway door closed, that was the first time that my family would be separated from our humble village for a long time. At last, we were moving from the humble village of farmers and fishermen going to Beijing to continue pursuing our studies. During our first days in Beijing having moved from the humble village, we were unable to adequately express ourselves in English as this was the major language spoken in the neighborhood. The transition into Beijing lifestyle from a humble background was marred by confusion and helplessness as we struggled to adapt and acculturate. Although our parents helped us in the transition, they could not shield us from all the struggles that come with adjusting to a different kind of life with new friends, school, and challenges. Nonetheless, their effort to help us fit in and succeed just as them in Beijing has forever remained my motivation and curiosity source in my whole life. My parents did not have college degrees. As a result, they could not land any well-paying jobs to provide for all their financial needs. However, my father being entrepreneurial, after saving for five years and with help from other fellow friends he was able to open a pawn shop that was able to alleviate them from the big financial constraints that we could have encountered. Growing up in my free times if I was not in school and done with assisting my mother to do the house chores, I would always join my father in the pawn shop sometimes serving as a receptionist or a sales person. In light of this, it is noteworthy to admit that the pawn shop business is what instigated the desire to not only study business but also focus more on management. Besides, every time I went to assist my father in the shop he would say “Now remember Cutie, our business success depends on our management of everything.” Therefore, based on my life experiences, I believe it can best be described and summarized by the virtues discussed below. Competence I passed my primary education and with the dreams of 2017-04-22T02:34:19.43-04:00 http://75.150.148.189/free-essay/The-Story-of-You-ME___-45310.aspx Name Professor Course Date Tuberculosis Grant Proposal 10/23/2016 Dr. Michael Browns Executive Director XYZ Foundation 16 South Street Miami, Ma 0277789 RE: TUBERCULOSIS ERADICATION Dear Mr. Brown, The Tuberculosis Eradication Program (TEP) is pleased to bring the following proposal for your review. We are looking forward to being partners with you in the war against tuberculosis in Ohio State. The country has the highest cases of tuberculosis around the world thus creating the need to eradicate it. The aim of the Tuberculosis Eradication Program aims at campaigning against tuberculosis so that we can evade some of its side effects since it might lead to death under extreme conditions. In the past two years, we have piloted the program, and there has been a reduction in the number of individuals contracting tuberculosis. Typically, the program provides screening services and also vaccinates people to eradicate the disease in the community. It is evident that there has been a measurable success and we are now seeking to expand the Tuberculosis Eradication Program so that we can save more people with tuberculosis. Our proposal requests $50,608 in the funding to obtain the screening materials both software and hardware and training more individuals to assist in the program. We appreciate the XYZ Foundation in taking part to assist us in fighting tuberculosis (which is currently a threat in this zone) through funding our program. Kindly give me a call at 350-830-166-9050 in case you require any information regarding this proposal. Thank you, Brien Blacks Program Coordinator Tuberculosis Eradication Program 985 Wall Street Tuberculosis Eradication Project Abstract We are seeking to expand the Tuberculosis Eradication Program with the sole aim of helping the individuals with tuberculosis within the region by providing an outpatient healthcare program to most of the people. The objective is that in six months the cases of tuberculosis should have been reduced by half. The Tuberculosis Eradication Program is founded on the latest screening machines so that the accuracy of the results can be high. We also strive to provide the best medication such as vaccines to the patients so that we can do away with the bacteria completely. Funding amounting to $50, 608 is invited for us to acquire modern machines for screening and also appropriate and effective medication. This will also help in improving both the software and hardware of our systems for the good of the patients. Statement of Need Texas has about 100, 000 people with tuberculosis. This increases the chances of other healthy individuals contracting the disease since it is an 2016-10-23T02:11:02.183-04:00 http://75.150.148.189/free-essay/Tuberculosis-Grant-Proposal-35236.aspx The Implication of Hiked Interest Rates Name of Student Institutional Affiliation The Implication of Hiked Interest Rates The whole of this year has been characterized by speculations regarding the Federal Service’s Open Market Committee’s annunciation of the new increase in interest rates. The last time they were increased was in 2006, when the country’s economy was on course. As a rule, such changes occur at the time when the country’s economy is in a good state, with a steady increase in the employment rate and more jobs are being created. Economists have been quick to speculate that there was no better a time than this. For instance, there has been an increase in annual gross income for employees with more job creation opportunities. Before the end of this week, the Federal Reserve is expected to announce the new interest rates (Soergel, 2015). As any other economic tendency, it comes with its advantages and shortcomings to the saver and the borrower alike. Thus, it is necessary to analyze the effect such changes will have on various sectors of economy. Impact on the Stock Market The interest rate is the cost paid by the banks when borrowing from the Federal Reserve (Mueller, n.d.). It controls inflation by regulating the amount of money circulating in the economy and thus stabilizing the effects of demand and supply. Thus, the organization determines the amount of money available for goods on the market at any time (Mueller, n.d.). Consequently, an increase in Federal Reserve lending rate has a ripple effect on banks, which spreads to businesses and individuals as well (Mueller, n.d.). Most American retirees depend on interest rates on their savings (which are very low) for survival, and a hike in banking lending rates will be favorable (Soergel, 2015). However, the good news does not favor banks and brings with it the unintended consequences that cannot be avoided by the Federal Reserve. The organization is going to introduce the hiked interest rates gradually, but many banks will do the same quite fast since they already have a large reserve and do not need to increase interest rates to add more resources 2016-02-05T00:49:06.943-05:00 http://75.150.148.189/free-essay/THE-IMPLICATION-OF-HIKED-RATES-35169.aspx 2016-02-05T00:04:39.467-05:00 http://75.150.148.189/free-essay/intrinsic-value-35166.aspx Abstract: This paper has assessed the pattern of migration, socio-economic benefit and impact of the remittances earned by the expatriate workers. It has analyzed the use of remittance and contribution to the national economy of Bangladesh. In Bangladesh, remittance is one of the most important economic variables in recent times as it helps in balancing balance of payments, increasing foreign exchange reserves, enhancing national savings and increasing velocity of money. For about two decades remittance has been contributing around 35% of export earning. Remittance has created a new dimension in the economic development of Bangladesh. We have to properly unlock the potentialities of remittances and utilize it properly to make it an indispensable tool of the economic development of Bangladesh. Key words: Remittance, Investment, Balance of payments. Introduction: Bangladesh like other South-Asian countries is in a situation of surplus manpower with a combination of professional, skilled, semi-skilled and less-skilled labor force. Local wage employment cannot absorb the huge low skilled and less educated workforce. This large volume of workforce needs to be engaged in employment to ensure their participation in the economic development of the countries as well to improve their family standard. Migration plays a vital role in the national economy mainly in two major ways; Firstly it reduces unemployment and secondly migration results in remittance flows for the country. The migration has shown steady growth over the year that is favorable to the development of Bangladesh; as inflow of remittance has increased every year. The links between migration and remittances are self evident. Both have a strong co-relation to poverty reduction in home countries. Remittance has become an important aspect for the developing countries like Bangladesh for socioeconomic advancement. Remittance has a significant role to maintain balance of payment and to enrich foreign currency reserve. It also has a great contribution in Gross Domestic Product (GDP) of the country. Migration is gradually being considered as the development alternative to the family level of workers particularly the illiterate and un-skilled workforce. Migration from Bangladesh: Migration has become an important livelihood strategy for the people of Bangladesh. It has remarkable positive impact on social development and empowerment through skill transfer and by fostering many community development initiatives. Bangladesh has a long history of international migration. During British rule some people migrated to UK and also USA for trade and higher study. But after independence of Bangladesh in 1971, the flow of migration to other countries also increased. 2015-12-04T13:54:36.45-05:00 http://75.150.148.189/free-essay/Remittance,-migration-and-impacts-on-economy-35154.aspx 2015-11-20T08:34:32.127-05:00 http://75.150.148.189/free-essay/exploraton-of-the-boomerage-effect-in-trade-between-china-and-the-USA-35152.aspx 2015-03-24T09:05:56.88-04:00 http://75.150.148.189/free-essay/Determinants-of-Land-Use-Change-in-South-west-Region-of-Bangladesh-35096.aspx Zaleka Tate Math Essay for Exam Archimedes Archimedes was born in 287 BC in Syracuse, a Greek seaport colony in Sicily. Archimedes’ father was Phidias. He was an astronomer; this is all we know about his father and we learn this from Archimedes’ work, The Sandreckoner. Archimedes was educated in Alexandria, Egypt. Archimedes’ friend, Heracleides, wrote a biography about him, but this work was lost. Some authors report that he visited Egypt and there invented a tool known as Archimedes' screw. This is a pump, still used today in parts of the world. It is likely that, when he was a young man, Archimedes studied with the followers of Euclid. Many of his ideas seem to correspond with the mathematics developed there. This speculation is much more certain because he sent his results to Alexandria with personal messages. He considered Conon of Samos, one of the greatest achieving mathematicians at Alexandria, both for his abilities as a mathematician and he also respected him as a close friend. Archimedes spent most of his life in Sicily, near Syracuse except for his journeys to Alexandria. He never held any public office but he was faithful to his lifetime of research and experiment. At times, Archimedes became so immersed in his work that he would forget to eat. He used every surface available to do his work on, including oil on his skin to ashes from a fire. Many of Archimedes’ discoveries were put to the test during the Roman conquest of Sicily. His mechanical tools and machines were used, including the legendary catapult which he is credited for making. This was all for the protection of Syracuse. Despite the use of Archimedes’ inventions, Syracuse was captured during the Second Punic war. A Roman soldier who found him drawing a mathematical diagram in the sand killed Archimedes. It is said that Archimedes was so preoccupied in his calculation that he simply said to the intruder, "Do not disturb my diagrams." Aside from the fame Archimedes earned from his work on the Archimedes’ screw, he was also famous for his relationship with the king, Hiero. Hiero often had complicated problems to solve, and Archimedes solved them causing surprise among the town. The king often challenged Archimedes. One of Archimedes’ quotes is “Give me a place to stand and I will move the Earth.” The king took him up on this challenge and invited him to move 2014-03-27T23:59:31.733-04:00 http://75.150.148.189/free-essay/The-Effects-of-Fiscal-Policy-on-Private-Business-Investment-35012.aspx Trade between countries and within the countries fall within the fundamental principles of economics (Taylor & Weerapana, 2011, p. 739) and it also forms an indispensible part in our day to day life delivering us utility, demand realization of the customers and profit maximization of the producers. Abolition of barter system and introduction of money has neutralized the concept of double coincidence of wants and indivisibility problem with exchange of goods and services becoming rationalistic and mutually beneficial (Ganßmann, 2012, p.16). In trade paradigm between different countries, the government plays various roles with interventions like fixing tariffs, quotas and various restrictions applied to the exchange of goods and services. In this connection the concept of free trade carries a significant importance. The concept of free trade or unrestricted trade is generally attributed to the exchange of goods and services where zero intervention policies are implemented by the government of the trading partners (Hajela, 2009, p.55). Now in free trade there are several benefits and cost emergence within businesses (Hajela, 2009, p.55). To name a few, benefits of free trade includes investment in sectors which enjoy comparative advantage, maximization of output, lower consumer prices and so on and costs of free trade are monopoly development, unbalanced development dumping and so on (Lusztig, 1996, p.2). In this paper, the target will be assess critically assess the argument that benefits from free trade are outweighed by costs that is generated by it for the business. First of all we will focus on the formal definition of free trade as proposed by the father of economics, Adam Smith. 2. Definition of free trade Father of economics, Adam Smith who is a staunch supporter of free trade defines it as “that system of commercial policy which draws no distinction between domestic and foreign commodities and therefore neither imposes additional burdens on the latter nor grants any special favors to the former” (Dewett, 2007, p. 439). This definition is crucial as it gives a signal that it is an unbiased policy which reflects the agents engaged in free trade are not vested with undue advantage and operate in an indifferent situation. Now we will explore the benefits and costs of free trade in a little detail. 3. Benefits and costs analysis- Theoretical approach 3.1 Potential benefits One of the most obvious benefits of free trade is mutual advantage which benefits all the parties engaged in free 2013-01-09T05:05:57.34-05:00 http://75.150.148.189/free-essay/-Benefits-of-Free-Trade-Are-Outweighed-by-the-Cost-it-Generate-For-Business-34773.aspx Question: Define economic growth and explain why Gross Domestic Product fails to provide an accurate overview of the quality of life of a nation. Economic growth is a positive change in the level of production of goods and services by a country over a certain time period. Nominal growth is defined as economic growth including inflation, while real growth is nominal growth minus inflation. Economic growth is usually brought about by technological innovation and positive external forces. Even though Gross Domestic Product has been employed as a statistical measure of economic development since the 1950’s, it does not qualify as an accurate reflection of a nation’s development status. Gross Domestic Product measures the total market value of all goods and services which have been produced in a country within a specific period of time and, on the per capita level, divides the total value of the economy, or its size, by its population figures. As may be deducted from the foregoing, therefore, it does not discriminate between the rich and the poor, thereby indicating poverty levels and, it does not calculate literacy or gender equality levels, to name a critical few. As a case in point, one may refer to the fact that according to this statistical measure Qatar, Kuwait, and the United Arab Emirates rank 2nd, 4th, and 5th as the most developed countries in the world according to Gross Domestic Product. These countries are not democratic, do not uphold gender equality and have been repeatedly cited by Amnesty International for human rights abuses. This is a clear indication of the extent to which Gross Domestic Product contributes to inaccurate readings of national development status, and indeed, fails to provide an accurate reading of the living standards of those countries. In direct comparison, the United States of America, Great Britain and France, to name a few, are all democratic nations which uphold gender equality. While there are some cases of human rights issues, the level of the problem is not nearly as high as of those in the Middle East. In accordance to the Gross Domestic Product per capita statistical measures, these countries rank as the 7th, 21st, and 25th on the global Gross Domestic Product scale. This is a clear indication of the extent to which Gross Domestic Product contributes to the immaculate reading of the national development status and, indeed, fails to provide an accurate reading of the living standards and quality of 2012-02-11T23:08:18.88-05:00 http://75.150.148.189/free-essay/Defining-Economic-Growth-and-GDP-34471.aspx Monetary policy During transition the economy of Albania has been quite a surprise for many people. After the destruction of communist regime its economy managed to have a recognizable economic growth during 1991-1992 and even a rising GDP and a falling inflation in conjunction with serious market reforms. In 1997 though, there was a tough social and political period which had its effects on the Albanian economy, because during this time the pyramidal schemes in which most of the population put their savings, collapsed. Even though having passed this period, Albanian economy did manage to enjoy afterward a constant economic growth even low inflation rates. In order to keep the beat with this stabilization method, the need of monetary policy is of crucial necessity. Thus monetary policy is important not just to keep a stable interest rate but also the balance of money supply and prices. As mentioned before after the collapse of communisms it was obvious that the Albanian economy not only was in a case of hyperinflation and destabilization of markets but also in an extreme budgetary deficit. In 1993 the main objective of Albanian monetary policy seemed to be money growth supported by a fiscal policy and the objective of Central Bank to eliminate the deficit, by a tight credit policy. A two-tier banking system was also introduced during this period. At the beginning of 1996 some licenses on private banking activity were issued to several foreign banks. This measure taken not only secured a consolidation of banking system but also allowed the usage of indirect instrument of money control. New private banks encouraged an inter-bank competition which is important in an economy. These methods taken by the Central Bank constantly helped the market. Till 2000, we can say that the transmission method used by Bank of Albania was by using indirect instruments to stable the economy, but afterwards the use of direct instruments was to be used, mostly the method of inflation targeting It was mentioned before that from 1991 to 2000 Bank of Albania was directing the economy by implying indirect instruments of monetary policy to control and stable the markets. Four channels that operate in market economies are through: interest rates; credit ceilings; exchange rate; and inflation expectations. After 2000 the direct instruments were implied. All in all we can say that the Albanian economy has moved over the last 13 years from almost complete isolation to relative 2011-12-08T10:23:14.607-05:00 http://75.150.148.189/free-essay/Monetary-Policy-in-Albania-34378.aspx This essay discusses the economic recession/depression in Asia, and the difficulties returning expatriates face in the job market there. It also discusses expatriates in general, and then moves on to discuss ways in which human resources personnel can help the returnees fit into the corporate structure when they resume their duties, or join the company. I Introduction The world is a much smaller place than it once was and its population is far more mobile. It’s no longer particularly unusual when someone lives and works overseas for a time before returning to their homeland—if they do in fact return. This paper discusses the impact of the economic recession in Asia has on returning expatriates, and what human resources personnel can do to assist the returnees. II Impact of the Economic Recession The economic crisis that swept Asia in the 1980’s and through most of the 1990’s has been demoralizing and widespread, and has shown clearly in the numbers of people leaving the region to work elsewhere. The recession has been profound; comparable, according to some, to the Great Depression that devastated the United States in the 1920’s through World War II. One source discusses the causes of the drop, but as is usually the case with such movements, cannot pinpoint a single factor that precipitated the actual decline. “The World Bank's East Asian "miracle economies" - Japan, the four "tigers" of Hong Kong, South Korea, Singapore and Taiwan, together with the economies of Indonesia, Malaysia and Thailand, which grew at perhaps the highest and most sustained rates in history - appear to have gone into reverse.” (Skeldon, 1998). A moment’s consideration reveals how astonishing and disturbing this is; seven different countries with high population density and “powerhouse” economies suddenly went into freefall. Citing The Far Eastern Economic Review of 10 September 1998, Skeldon reveals that the declines were not fractions of points, but huge drops in the GDP: Hong Kong down 5 percent; Indonesia down 16.5 percent; Japan dropping 1.3 percent; Malaysia down 6.8 percent; the Philippines down 1.2 percent; South Korea losing 6.6 percent; and Thailand dropping 9.4 percent. (1998). The numbers continued to spiral downwards as the crisis developed. The precipitous decline in the GDP also brought numerous failures of banks and other financial institutions, and an equally plunging stock market. You’ll note, as mentioned above, that there seems to be no 2011-10-31T01:18:33-04:00 http://75.150.148.189/free-essay/Economic-Recession-and-Returning-Asian-Expatriates-34251.aspx This paper compares statistics for 2002 and 2003 with an article about tax amnesty, and concludes that the article does not agree with the statistics. (6 pages; 1 source; MLA citation style) I Introduction The U.S. economy is generally considered to be in recession, as it has been since 2001. This paper will consider several statistics that support that contention, and summarize an article about “tax amnesty”, and then determine whether that article supports or fails to support the conclusion that the economy is in serious trouble. II Statistics If we look at the statistics for this year as compared to 2002, it seems incontrovertible that things are worse now than they were then. In September 2002, the unemployment rate was 5.7%; in September 2003, it was 6.1%, an increase of .4%. In August 2002, the CPI was 181.0; in August 2003, it was 185.2. (The Consumer Price Index measures the cost that consumers pay for items; we see that it rose over time.) The Gross Domestic Product (GDP) was $10,376.9 billion in Second Quarter 2002; in Second Quarter 2003 it was $10,802.7 billion. (The GDP is the measurement of goods and services produced in the United States in a year.) The GDP showed a growth of 425.8 billion. Finally, the interest rate that the Fed charges has remained “level at 1%”. These statistics seem to indicate a “mixed” outlook: the number of jobs lost rose, and that coupled with an increase in prices, means that it would be increasingly difficult for Americans to make ends meet. However, Americans continued to make more products, raising the GDP. It should be noted that this increase in the GDP may be attributed to many factors, including more efficient manufacturing processes. Manufacturers continue to produce and increase their production even as the lay off workers. In general, I maintain the economy is still in recession as it has been since 2001. III Article on Tax Amnesty/Discussion The last line of the article should make the writer’s bias obvious: he refers to “President Bush’s excellent tax reform.” The article also appeared on something called “FreeRepublic.com”, which calls itself a “conservative news forum.” Obviously, then, we should expect the article to be supportive of Bush and his policies since we have seen virtually no criticism of Bush coming from conservatives since he took office. The article discusses “tax amnesty,” 2011-10-26T13:01:53.053-04:00 http://75.150.148.189/free-essay/Economy-2003-34102.aspx In The FAD By Navirah Zafar Classic Gold Glamour G.O.L.D personifies the Greek goddess like feel from hair to toe. Experience the classic gold glamour by accessorizing your wardrobe with designs that nearly take your breath away, be it an antique diamante flip flop or the sultry sequinced basket bag. Its time for the oh-so beautiful gal to do some flirting without saying a word with sexy metal bobble bangles, pearly sunray scoop bag or the glittery buckle gold pumps! Experience the soft luxury of gold hoop earrings or the chunky feel of a gold metallic ring. Go Hollywood with this stunning range of causal and evening collection. Glam up! To show off your bewitching style, be it a groovy party or a special candle light dinner. Classic gold glam is here to stay! IT’S ALL ABOUT GADGET POWER! Apparently the glint of a new gadget is more intoxicating than the shine on a diamond. Women are wired these days and they want technology and style more than ever. Whether the wallet is being wielded by a stay-at-home mom, a working woman or any of the other countless variations on the 21st century female, women all over are going gadget crazy. Just to add a bit of character, the 21st century woman wants to accesorise her gadget. The statement these savvy women want to portray to the world is sexy, yet discreet and stylish. Be it Paris Hilton or the girl next-door, sleek and sexy cell phones cover, cell phone antenna rings, back charms or even sequinced coin pouches are the way to go. It’s all about enhancing a gal’s personal life…. FIRING IT UP WITH A PINCH TECHNOLOGY AND WHOLE BUNCH OF STYLE. Gear up your style with leather For over many decades leather crafted accessories have personalized offices, but presently cold, impersonal technological equipments are dominating the office world. Leather accessories, with all their warmth and infinite range of colors, textures and grains, give you the chance to make your own statement in the environment you work in. Leather not only provides substance to a space but also elevates the complete attire of a room. We here at niche always want our readers to explore and customize their space with finest of accessories. Be it cow leather or buffalo leather, these elegant handcrafted Leather Organizers, Portfolio, Laptop Bags, Executive Bags, Desk Set, Card holders, Jacket Wallet and Pocket 2009-03-20T08:32:35-04:00 http://75.150.148.189/free-essay/In-The-FAD-By-Navirah-Zafar-34031.aspx What Is a Moratorium On Foreclosures? The mortgage crisis in America is a political hot topic that has taken a front seat to many other topics of national importance. Even the upcoming presidential election has the potential of having this very topic at the center of each candidate’s agenda. However, with a matter of such national significance it would appear as though all most Americans seem to know is that the economy is bad and that about covers it. Many Americans are unaware of this economic crisis occurring and are even less aware of how it could affect them. Therefore, the apathetic and ignorant attitude towards such a dilemma could be explained. In order to assist in the eradication of this issue, one must examine the meaning of a mortgage and that will improve the understanding as to why foreclosures are occurring throughout the country. Furthermore, with this base understanding of this market we might better understand why Congressional and state legislators wish to place a moratorium, or temporary freeze, to the current foreclosure emergency. What is a Mortgage? First, let’s examine what a mortgage is. According to the Freddie Mac lending agency a mortgage is, “… a lien on a property/house that secures a loan and is paid in installments over a set period of time. The mortgage secures your promise that you'll repay the money you've borrowed to buy your home.” There are also several types of mortgages available through lending agencies as well. Some of the following are the primary options available: fixed rate, adjustable rate, balloon/reset, reverse, and the hottest one that is being talked about the subprime mortgage. This is the one that should be hit on most heavily because this is the reason for the foreclosure crisis occurring right now. The problem with subprime mortgage lending is the fact that a subprime lender is predatory in nature, much like a loan shark. These companies prey on those who cannot receive a mortgage through mainstream companies as a result of poor credit or and/or a number of other factors. These companies then charge very high interest rates on the mortgages they extend to consumers. These interest rates are placed on the principle of the loan and essentially the individual paying on the loan will have to pay on the interest in lieu of the principle for a very long period of time. According to Reuters, “The crisis 2009-02-10T00:18:26-05:00 http://75.150.148.189/free-essay/What-Is-a-Moratorium-On-Foreclosures-33960.aspx In this world political decisions are among countries sometimes follow the rules of the childhood game of “follow the reader.” Everyone takes turns being the leader so when one government comes up with a brilliant idea everyone tags along behind, changing their laws to be the same and add up to the enemy. It was just the same with the minimum wage laws. The United States enacted the law in the1938 after a few other countries had first. This law was enacted as a matter of social justice, to reduce exploitation and assure workers can afford basic living expenses and necessities, not to increase unemployment among low wage, unskilled workers. Not to harm the employment rate, but to help. When you have minimum wage laws they have to change at some point, whether its due to inflation or even the consumer price index. It’s like a physics experiment done on earth, as opposed to doing it on the moon. The gravitational acceleration on the moon is different from that on the earth, which affects the results, but the results change in proportion to how they would change on earth, which makes everything equal out and end up the same problem, no difference. In Source B it is stated that politicians link the minimum wage laws to the consumer price index, thereby producing small annual increases rather than larger wage hikes. This is the case with the wage laws in Oregon. No proof has been given that minimum wage laws make any difference in the unemployment rate. In Source C it tells about David Card and Alan Krueger, and the research they’ve done, they wrote the book Myth and Measurement: The New Economics of the Minimum Wage, which argued the bad employment effects of minimum wage laws to be “minimal to non-existent.” These two looked at increase in New Jersey and California’s minimum wage rates; Card and Krueger both present evidence that increases in the minimum wage only increased pay, but still no loss in jobs. Even though critics have argued their points, and said they were flawed in their research, Card and Krueger still overcame the criticism and stuck by the evidence they obtained. The research was obtained fair and square, so it still stands. Now-a-days buyers have the power over sellers. Which is considered a market failure, and results in workers “being paid less than their marginal value,” as 2008-11-17T01:43:20-05:00 http://75.150.148.189/free-essay/Minimum-Wage-Benefits-Workers-and-Doesn-t-Decrease-Employment-33870.aspx Financial Inclusion Benefits, Issues and Challenges Contents Introduction 3 Financial Inclusion 5 What Financial Inclusion Is All About 5 Why is financial inclusion important? 5 What are the reasons behind financial exclusion 5 Main Drivers of Financial Exclusion 6 Financial Exclusion - The resulting problems 6 Banking in India 7 Financial Inclusion - Issues and Challenges 10 Appendix 11 Hon’ble Union Minister of Finance Union budget speech 2007-08 11 June & July Session: June 15-July 30, 2007-The Oberoi Grand, Kolkata 11 References 18 Introduction The growth trend of the Indian economy over the last few years appears to indicate the beginning of a new phase of higher growth. From an average growth rate of around 6.0 per cent for a quarter of a century, the growth rate has accelerated to 8.1 per cent over the last few years. The per capita income growth is now 6%. On the savings front, the increasing trend in gross domestic saving as a proportion of GDP witnessed since the early 2000s has also continued unabated. The gross domestic savings rate has improved from 23.6 per cent of GDP in 2001-02 to 29.1 per cent in 2004-05. Along with the improvements in savings and investment rates, there has also been a marked lowering of inflation from 7.8 per cent in the 1990s to 4.7 per cent in recent years. There has also been a resurgence of manufacturing activity. The high industrial growth is also corroborated by the record of very healthy performance of the corporate sector, which has recorded unusually high profit growth over the past three years: over 40 per cent growth in profit after tax for 11 successive quarters from Q3 2002-03 to Q1 2005-06. There are certain concerns which can be summarized as follows: • High growth has not been matched by adequate deposit growth. The growth in deposits since 2001-02 has been far lower than that required to support overall credit expansion (Graph 1) • Banks have been financing much of the incremental credit expansion by unwinding their surplus investments in government securities. • Deposit growth concentrated in the larger cities (helped by the high corporate profitability) • Trend: banks may have been proactive in credit deployment but their focus on deposit mobilisation may have been less than adequate. • Slow deposit growth in non metro areas: possible suffering of financial inclusion Table 1: Relative Share of Borrowing of Cultivator Households (per cent) Sources of Credit 1951 1961 1971 1981 1991 2002$ 1 2 3 4 5 6 7 Non-institutional 92.7 81.3 68.3 36.8 30.6 38.9 of which: Money lenders 69.7 49.2 36.1 16.1 17.5 2008-03-26T16:01:58-04:00 http://75.150.148.189/free-essay/Financial-Inclusion-In-India-33551.aspx Capitalism Hello ignorant masses of America. My name is "your name here" and I’m here to talk to you about capitalism. In our capitalistic society most of the resources end up in the control of a small few. Those few can now decide how everyone else will work, for most of the population cannot survive without the money these few provide for them. They can even decide how their environment physically and psychologically looks and feels since they own most of the land and media anyway. So how does this affect you? Well this means that your time and creativity are being bought from you. When all you have to sell in return for your own survival is labor, you have to sell your life away to simply exist. In your free time you can use the money to have fun but the time you spent at work is now gone and the only thing you have to show for it are the bills you were able to pay. After a while the idea of going after your own goals seems far away and no longer occurs to you. Some people actually do find ways of getting paid for doing something they enjoy but how many working people do you know that fit into this category? Mr. McHugh maybe… We should find ways of helping everyone to do what they want and live the way they want. Do you really want to live in world filled with unhappy people who never got to go after their own dreams or maybe don’t even have dreams? There is an alternative. This alternative would be a society where everyone would be free to choose what they wanted to do and would never have to worry about starvation or a place to stay. In this way everything would be shared rather than it all being in the hands of those select few. The creativity of society would explode without bosses or tight schedules. Whatever you wanted to do you could do. You love science? Build a new more efficient mode of transportation without oil companies paying millions of dollars to stop you. You love building computers? Build the best you can and put a smiley face on it if you want to. Some hard work could be minimized by just simple changes in awareness occurring in everyday life. Think about doing the dishes at your 2007-11-08T01:06:39-05:00 http://75.150.148.189/free-essay/Capitalism--33397.aspx By Bobby Ahluwalia During the last decade there have been enormous advances in the transplantation of vital human organs. Unfortunately, the benefits from these operations have been limited due to the shortage of available organs. The current rationing system has repeatedly proven to be ineffective and inefficient. As a result, there have been numerous proposals to help improve this terrible situation. In my thesis, after providing a background, I will analyze various popular proposals. I will then provide my personal opinion as to the best solution to the problem of organ shortages. I would like to use some data analysis in order to support my conclusions. I will first provide a brief history of organ transplants and the governmental regulation of them. Basically, in 1984, Congress passed the National Organ Transplant Act, which outlawed the buying and selling of internal organs. Therefore, the United States relies on a voluntary, altruistic system for supplying organs for transplantations. The United Network for Organ Sharing (UNOS) allocates these donated organs according to patient rank on a regional waiting list (Dewar, 161). After demonstrating this current allocation is ineffective and inefficient, I will evaluate some proposals that are currently on the table by using a cost versus benefit approach. Many people feel that organs should be given to those who need them the most. This sickest first policy may initially be beneficial because it is a fair method; however, it does not make much sense in the long run. The case involving the baseball legend Mickey Mantle proves to be an excellent example. On June 6, 1995, Mantle was diagnosed with end stage liver disease. Yet, after he received the transplant, he died two months later. In retrospect, the liver given to Mantle could have been used to save one of the 804 patients who died waiting for liver transplant that year (Sullum, 1). In general, if transplantations are performed on very sick individuals, then people who have a higher likelihood of survival may not receive one. Providing organ transplants to healthier patients will also lower the level of retransplantations, thereby freeing up more organs for others. Another allocation method is biological matching. The actual match is measured by comparing the similarity of the antigen between the donor and patient. This method is beneficial because it leads to an overall higher level of survival and less retransplantations. However, this process is deemed bias when concerning certain groups, 2007-10-25T08:28:07-04:00 http://75.150.148.189/free-essay/Market-Incentives-Applied-to-Organ-Transplants-33369.aspx South Korea is the country in which LG, a multinational corporation, (companies based in many countries) is based. The article presents us with LG’s aim to increase its market share in Europe by 30%. By the fact that Korea has chosen to develop by exporting its industrial goods, like mobile phones, we also see the 2007-10-24T10:05:00-04:00 http://75.150.148.189/free-essay/Article-Commentary-on-LGs-plan-to-enter-the-European-Market-33366.aspx The agricultural sector is a very unique sector in economics because it displays characteristics in terms of the demand for and the supply of its goods not seen in any other sector. The principal characteristics of demand are that it is both income and price inelastic and it has high dependency on population and tastes which cause demand to be static in both the short and the long run. On the other hand supply is 2007-10-24T09:59:12-04:00 http://75.150.148.189/free-essay/Demand-and-Supply-for-Agricultural-Goods-33365.aspx The agricultural transformation model describes the process whereby the structure of a country’s economy changes as it develops from a low to a high income country. The model’s four main elements are rapid and sustained growth of national income per capita in all economic sectors increasing the productive capacity 2007-10-24T09:57:24-04:00 http://75.150.148.189/free-essay/Agricultural-Transformation-in-Zimbabwe-33364.aspx Although a fiscal policy does achieve in helping the economy for a short period of time by affecting the elements of aggregate demand namely investment and consumption it does have several problems that hinder its effectiveness. On the one hand as previously stated an expansionary fiscal policy by decreasing taxation and increasing government spending the fiscal policy will probably achieve in increasing aggregate demand. This will happen since the decrease in taxation will increase people’s disposable income and consequently depending on the marginal propensity to consume the domestic consumption of an economy which in turn will increase aggregate demand. Similarly the government by increasing spending in all sectors of its economy it will increase investment which in turn may lead to an increase in aggregate demand. This is an effective way to combat economic problems such as unemployment and recession. On the other hand if a government wants to eliminate recession it will have to pursue a contractionary demand side policy. This policy will increase taxation thus decreasing the citizen’s disposable income thus in turn reducing consumption which will reduce aggregate demand which will in turn reduce inflation. On the other hand it will decrease government spending thus decreasing investment which will again reduce aggregate demand and thus in turn reduce inflation. However these policies aren’t always very effective for several reasons. Firstly fiscal policy can’t be effective if consumption isn’t effective to tax changes in other words if there is a high marginal propensity to consume. What this will mean is that no matter how high the government raises taxes the people will still insist on spending as much as they previously did thus not decreasing domestic consumption. On the other hand if there is low marginal propensity to consume no matter how low the government drops the tax domestic consumption wont increase and thus domestic consumption wont increase. Moreover a fiscal policy could lead to the crowding out effect. This is divided in two categories, resources and financial crowding out. In the case of resources crowding out this indicates an increase in reward for the factors of production. This happens in the case of an expansionary fiscal policy government spending on public and merit goods as a result the government increases demand for specific factors of production. This increased demand will lead to increases in wages, rent and interest rates. In the case of financial crowding out increased government spending will 2007-10-24T09:53:30-04:00 http://75.150.148.189/free-essay/Effectiveness-of-Fiscal-Policy-33363.aspx Economic globalisation, nationalism and economic reforms in India- the literature Anusri Pal Senior Research Fellow BRIC, NSB Business School. Introduction: The last quarter of 20th century has seen a wave of economic policy reform in the developing world. This wave of reform had been preceded by the state-directed effects of economic development, where the goals were to achieve self-reliance and import substitution industrialization. These goals seemed justified considering the agricultural nature and colonialism pattern of their economy. The economic liberalisation covers a number of aspects of policy, but the central issue is to define the relative role of the state and the market in the operation and management of the national economy. The contemporary movement in economic policy reform has involved the retreat of the state and the shedding of many of its economic functions in favour of the market. In the process of globalisation, the ˜international™ economy becomes more closely integrated, with domestic economic agents increasingly oriented to the global market rather than to particular national markets even as the state continues to remain central to national economic development. Thus it is equally necessary to consider also the opposing the in the form of economic nationalism to understand the economic policy reform. Thus, economic globalisation and economic nationalism are then two fundamental forces that have been shaping the world economic situation over the last few centuries. Both these forces are integrally linked with ˜markets™ and ˜states™. Thus, economic nationalism simply represents another level of working of markets and states. The rise of globalisation: The origins of economic globalisation lie in the rise of capitalism in Europe and the process was reinforced by the rise of industrialization that arose as a spontaneous development in Great Britain, and aided directly and indirectly by state. After achieving its own industrialization, Britain turned towards liberalism in the 19th century and as a most advanced industrial power it now enjoyed greater economic advantage for itself in the operation of freer trade. More particularly, Britain has received more credit for its liberalism through political and military coercion to the less developed colonized world. Economic globalisation thus developed not only through the operation of some autonomous economic forces, but also with military power. The other European powers and European colonial settlements like Germany & US launch their own industrialization programmes of industrialization under strongly protectionist or mercantilist policy regimes persuaded by their economic welfare and military securities. But this option of economic nationalism was firmly 2007-09-26T19:18:05-04:00 http://75.150.148.189/free-essay/Economic-globalisation,-nationalism-amp-reforms-in-India_-33336.aspx Macroeconomics deals with a number of large totals or aggregates which are used to conceptualise and measure key components of the economy. The most fundamental of these is the total output of goods and services, conventionally referred to as the national income. Domestic income" is that produced within a country by all producers operating there, whether foreign or not.".National income" is that produced only by "nationals" of that country, whether they are producing it there or elsewhere.) 2007-08-31T11:43:28-04:00 http://75.150.148.189/free-essay/National-Income-33320.aspx Seers was a Cambridge trained development theorist who stressed the significance of social development in developing countries before moving to economic development seeing that in order for economic development to reach its maximum potential social development has to occur first. Seers was highly critical of using indexes such as unemployment and inflation when referring to Third World countries, possibly because the statistics we have from these countries are too unreliable for us to be able to make judgments concerning their economies. In other words to Seers true development lay in the elimination of poverty, increase in literacy, improvement in the health system as opposed to 2007-07-20T15:12:04-04:00 http://75.150.148.189/free-essay/Development-According-to-Dudley-Seers-33297.aspx Agriculture has always been a very significant element of every country’s economy more because it paves the path towards development rather than because it contributes significantly to the economy’s GDP. All countries, in order to develop, had to go through the process of commercialising agriculture to be able to fund the development of the secondary and eventually the tertiary economic sectors, thus making agriculture a key segment of the economy when it is in its development stages. This can be clearly seen in the way the agricultural revolution from the 16th to the 19th century in Britain, kick started the industrial revolution, which led Britain to becoming the economic power it is today. What is 2007-07-20T15:06:42-04:00 http://75.150.148.189/free-essay/Agriculture-as-a-Declining-Sector-33296.aspx The labour mobility problems that are created when a common market for labour is extended to more countries have been a major concern of the European Union when considering expansion because member states have always feared their economies would suffer due to the cheap labour coming from poorer nations. Considering the fact that the recent expansion added ten members eight of which have significantly lower wages than other countries and large labour forces makes this concern even more pertinent. Since labour mobility is part of the core freedoms in the Union, the Treaty of Rome that was put into effect in 1958 committed member states to allow for the free movement of labour. This implied that nothing would stop labour from moving within member states and there will be no discrimination against workers based on their nationality, provided the nation is within the customs union. Even though the European Union has always had a great extent of labour mobility, the reason why the nations already within the union fear the consequences of the extension of the common market for labour after the enlargement are the rising unemployment rates observed in recent years. This is mainly because in the EU the job market has only grown by 0.5% from 1980 to 1993 as opposed to the 1% observed in Japan and the 1.5% observed in the US. This essay will therefore assess the extent to which the fears of the European Union have realistic foundations or not. In order to determine the effects of creating a common market for labour we first must see how wages are determined within these economies and why they differ. Wages are determined by the marginal productivity of the last labour unit employed because a firm can only afford to hire workers if they generate enough output to cover the costs of employing them. Thus wages are formulated where: However, the marginal productivity of labours differs amongst countries within the union for a number of reasons. For example a German worker that has had the ability to benefit from a good state education system that teaches its students a wide variety of skills will have higher marginal productivity than a worker from Poland that possibly had to drop out of school early to support his family. Also, the capital employed in Germany enables workers to maximise their marginal productivity since machinery employed in Germany is more 2007-07-20T15:05:00-04:00 http://75.150.148.189/free-essay/Effects-of-Establishing-a-Common-Market-for-Labor-33295.aspx Question 1 (a) ‘The production possibilities frontier is the boundary between those combinations of goods and services that can be produced and those that cannot’ (McTaggart, Findlay & Parkin, 2007). The PPF compares two products and a model economy is used where everything remains the same (ceteris paribus), i.e. production cost, demand and supply etc remain the same. Here is an example of a PPF using two goods, milk and steak. On the x-axis there is the amount of milk which can be produced in litres and on the y-axis there is the amount of steak which can be produced in kilograms. Each position on the PPF is efficient. It uses all the resources available. Any point within the area of the PPF is obtainable, but resources are being wasted. For example, if there are 10 cows that can either be used for producing milk or steak, and we milk one and slaughter the other, the other eight are out on the field eating grass not producing anything, i.e. we could be either milking them or slaughtering them. Any point outside of the PPF is unobtainable, as there are not enough resources available. The marginal cost is the cost of producing one more unit of it. The gradient of the PPF shows the marginal cost. As more steak is produced, the marginal cost of producing milk increases. That is, the more cows that we slaughter, the less milk we are able to produce. The marginal benefit is the benefit received from consuming one more unit of it. Marginal benefit is measured by the most that someone is willing to pay for another unit. As all points on the PPF are efficient, which one point on the PPF is more important than any other? It is the point where the resources are allocated efficiency, that is, we are not trading off another good that we value higher than the other. This point is found when the marginal cost is equal to the marginal benefit. As we can see, the point of intersection of the marginal benefit and marginal cost shows us the most efficient amount to produce, in this case, 5 units of steak and 20 units of milk. (b) ‘There are two major influences which affect economic growth. They are technological change and capital accumulation. Technological change is the development of 2007-05-09T00:29:15-04:00 http://75.150.148.189/free-essay/Introduction-to-Economics-33193.aspx Australia In The World Economy Australia is quite a rich economy in terms of Gross Domestic Product (GDP) per head of population, ranking 17th in the world. However, this has dropped from a ranking of fourth in 1950, and ninth in 1970. This could be seen as a sign of poor economic performance, however other factors that contribute towards a high standard of living, such as environmental considerations, need to be taken into account. For much of the period up to the 1960s most of Australia’s exports were in wool, food and other commodities. Since the mid 1970s iron ore and other ores have been a significant export. Heavy dependence on overseas markets and inflows of capital and people meant that when the world economy turned down, we were severely hit. In the mid 1970s, early 1980s and early 1990s we were hit by slowdowns in world trade and industrial growth in the major economies. Up until the 1960s the United Kingdom was our most important customer and provider of imports. Since then, Asia has increased in importance as a customer and provider of manufactured goods. In recent years, we have also seen growth in exports from the services sector – for example, tourism and foreign students paying to study in Australia. It is apparent from research by the Australian Bureau of Statistics that the make up of Australia’s export commodities has changed significantly from the traditional dominance of rural products. Three main changes stand out. Firstly, the decline in the relative importance of our rural exports. In 1950 textile fibers made up 65 per cent of the value of our merchandise exports, and in 1997 it only accounted for 10 per cent. Secondly, the strong growth in exports of minerals and fuels. And lastly, the growth in the export of services. This is largely the product of expansion in the tourist industry and the development of education and health and financial services exports. The destination of Australian exports has also changed significantly since 1950. The United Kingdom then accounted for 39 per cent of our exports, and in 1997 it only accounted for 7 per cent. Conversely, in 1950 Japan received only 4 per cent of our merchandise exports, and it now receives 23 per cent, while 2007-04-25T20:40:35-04:00 http://75.150.148.189/free-essay/Australia-In-The-World-Economy-33150.aspx Globalization and the Challenges of a New Century The essay, The Myth of Global Ethnic Conflict by John R. Bowen, overlooks the work by Huntington, Kaplan, and Barber and their theories on ethnic conflict. Bowen states that there are three basic assumptions made about ethnic conflict. The three assumptions are: “ethnic identities are ancient and unchanging; that these identities motivate people to persecute and kill; and lastly, that ethnic diversity itself leads to violence.” He says that these are mistaken. He argues that ethnicities are a part of modern politics. He uses the example of the Balkans and how the Serb, Croats and Bosnians had different languages and different religious backgrounds but they learn to live in peace. The real reason any of the three civilizations clashed were because Ethnicity became nationalistic. Nationalistic, in a sense meaning, gain of land and power. Another key point to his argument is that colonial powers( like Britain, France, Germany) were the cause of ethnic identities or ethnic conflicts, in a sense. Colonial Powers would declare that each and every person have an ethnic identity. For instance, The Hutu and the Tutsis are a great example of colonial powers causing ethnic conflicts. The Belgians put the Tutsis in power. The Belgians gave the Tutsis more access to education, and since they were taller then the Hutu, Belgians made a height regulation to enter college. The Belgians showed segregation and separation between the Tutsis and the Hutu’s and this is what caused the Hutu to rebel and the arise of a civil war. Bowen also states that the ethnic conflicts arise from being pushed and threatened from the leaders who control the armies and the airwaves. He goes on to say that the fear from the top causes violent acts, not because of ethnic differences. Lastly, Bowen argues that there are two reasons for social peace or social conflict. First is “raw materials” a way of bridge-building, or a way to build political consensus. “Raw materials is a theory showing how conflict will arise if a central polity controls national politics, which makes smaller lesser power groups seek for allies to achieve goals.” The second reason for social peace or conflict is: the states making all the decisions for the groups. The decisions mainly dealing with political procedures, can have an effect on the groups, either cutback the tensions 2007-04-18T23:31:30-04:00 http://75.150.148.189/free-essay/Globalization-and-the-Challenges-of-a-New-Century-33037.aspx The Gender Wage Gap Still Exists Wages in the work place are equal, right? This is the year 2002. We’ve come a long way past the negative stereotypes of June Clever. Women are just as proficient as men. Several pieces of legislation have been enacted in an attempt to solve the problem of gender-based wage inequality. Then why do we still have the difference in wages? The answer is clear. Gender-based inequality still exists in the American work place. The glass ceiling is an expression used to clarify the “invisible barrier” that limits advancement in the course of a number of women’s careers. There is documentation which states that women deal with challenges in their career that men will never face. Some of these challenges that women deal with are negative female stereotypes, increased visibility due to being a minority, exclusion from formal mentoring structures and negative valuation in management/leadership roles (Monks and Barker). The glass ceiling phenomenon lists three models: the human capital model, the ruling elite model, and the developmental model (Daley). The human capital model describes results in relation to individual distinctiveness. When the ratio of women to men in the labor force is observed, the actual number of women in executive titles is lacking due to the lack of expertise, experience, skill and the decisions they have chosen. The ruling elite model suggests that women are not as successful in their careers due to the views of society. Female characteristics and negative stereotypes have hindered women and forced them to choose traditional careers or not allow them to hold supervisory titles. The developmental model views the glass ceiling as a short-term hindrance that training and development will solve. This model fails to acknowledge contributing factors of discrimination and the negative view of society (Daley). President Kennedy passed the Equal Pay Act into a law in 1963. The Equal Pay Act forbids discrimination on the basis of sex in the payment of wages or benefits where men and women perform equal or substantially equal work of similar skill, effort, and responsibility for the same employer under similar working conditions. Employers may not reduce wages of another employee to equalize the wage. The Equal Pay Act addresses no more than the topic of gender-based wage discrimination. A policy targeted to deteriorate gender discrimination, Title VII of the 1964 Civil Rights Act, broadens the standard for 2007-04-18T20:04:55-04:00 http://75.150.148.189/free-essay/The-Gender-Wage-Gap-Still-Exists-33016.aspx Economic Development In Lithuania Economic development is the major topic for discussions and debates in the developing as well as developed countries at the present time. All levels of society somehow make contributions to slowing or, on the contrary, encouraging and fastening the process of economic development. Beginning from the lowest working class and ending with the highest top management level class, development is affected directly or in other ways by these citizens. Apparently, the understanding of what development is and how it might be implemented differs in various levels of classes; however, the goal is the same for everyone, that is achieve social and economic stability by creating opportunities for self improvement and vocational prosperity to accelerate the pace of the development. The modern world at the present time is at a constant stage of liberalization and globalization. These are the key factors that push economy forward. By the saying liberalization, I mean the liberal worldview that is being shaped in the modern societies. Many developed countries now profess political stream of socialism, for example Scandinavian countries, France and Spain. However, due to the global economic and social life, their worldview is very liberal. And very few countries now prosper propagating a closed system of market. Societies of the modern world become more and more involved in a global market, therefore expanding the attitude of the people about the overall economy. On the other hand, looking at the Asian Tigers example, a controversial outcome can be noticed where dictatorship is positively correlated with economic growth. For instance, China is famous for its stern policies due to liberalization of society. People are still oppressed by constant government control over their lives. However, globalization cannot be avoided at least in an extent of peoples’ social life. No matter how dictatorial governments are, they still invest huge amounts of money into education. Students’ knowledge is expanding therefore affecting their future vision of the country they live in. Globalization has been showing its power and importance in the world economy over the last fifty years. World Trade Organization has become one of the main pushing forces in global economic environment. It unifies different countries with the goal that every country-member has, that is economic prosperity and expansion of trade. Globalization affects a 2007-04-18T15:23:32-04:00 http://75.150.148.189/free-essay/Economic-Development-In-Lithuania-32998.aspx Developing Countries and the World Economy The world economy has many Developing Nations. Today, I am here to talk about the role of financial institutions such as the World Bank and aid organizations such as CAA and the success of current strategies in promoting development. The basis of international institutions and organizations roles are assisting developing countries to improve their development performance. The development of economies is enhanced from change from simple forms of organization and production to complex modern ones such as the role played by financial institutions such as the World Bank and aid organizations such as CAA. As this is the subject of development economics, Developing countries as whole economies can be poor; or they can grow but still leave large sections of their people in poverty. A developing country can be a result of many characteristics: resources, historical background, population, economic structure and system. They are basically under developed country that reflects a failure to gain levels of living throughout most of their population. Yet there has been a significant improvement by these countries general level of living as growth. The information I will be discussing will be relevant to what is the World Bank and what is its focus? What is the CAA as an aid organization? what is economic development and how it can be improved?, distinguishing the similarities among under developed countries with examples, the strategies implemented and how successful are financial institutions and aid organizations. If we look at Economic growth, it does not necessarily ensure that economic development has occurred. Factors that influence growth is, increased production, the level of production sustainable, distinguishing growth as basically a mean of increase in national out put of more goods and services; and development, growth with structural change or process by which widespread improvements in levels of living are generated and sustained. Typically, in the early stages of development economies have most of their production and labor force in agriculture. The GDP measures are fundamentally economic growth measure of developing countries. This can be used as aggregate measure of the countries national product or income used in both Gross Domestic Product and Gross National product. The real GDP and GNP contribute to the developmental outcomes significantly. Increasing per capita is associated with education levels of population, increasing life expectancy and increasing health standards. There 2007-04-18T15:20:17-04:00 http://75.150.148.189/free-essay/Developing-Countries-and-the-World-Economy-32996.aspx The American Economy of the Early 1800s The economy of 1810-1860 was on the rise to one of the worlds best of the time and they pushed through with new inventions, westward expansion, immigration, slavery, highways and steamboats, and railroads. This time period was just after the industrial revolution and America is starting to become a true nation some thirty years after they gained their independence. One of the most influential inventions of the time was in 1837 by John Deere of Illinois, with the steel plow. This replaced the old fragile wood plows, and was used to break up the terrible virgin soil. Then in the 1830s the Virginia born Cyrus McCormick invented the mechanical mower-reaper, which did the work of five men in the 1/5 the time. This new invention made farmers eager to get more land to plant wheat and other crops. With this new technology of the time farming gave way to the large scale production of the markets, which produced a lot of money. During this time the production of cotton soared on the brink of the cotton gin, by Eli Whitney in 1791. By 1860 there was more than 400 million pounds of southern cotton annually. America also had been forced to develop factories because of the Embargo act of 1807 and the Non-Intercourse act of 1809. Western land of the time was the most fought for land because the issue of slavery and fresh land for agriculture. Most of the people who moved west were in search of gold or a new life, and the average age of citizens there was thirty. Pioneers were moving on to the new land after they exhausted the land with their tobacco crops. With western expansion the population was doubling on average of every twenty-five years. By 1860 the original thirteen colonies, had reached to the number of thirty-three. One of the main reasons for the explosion of the population was because of immigration. The other reason for expansion was because both the North and the South were looking for an advantage of states for the slavery issue. Also to most of the people who moved were looking for quick money with the Gold Rush and to start anew for some of those who had gone wrong in the east. Immigration of this time was one of the main reasons for such an 2007-04-18T03:05:35-04:00 http://75.150.148.189/free-essay/The-American-Economy-of-the-Early-1800s-32978.aspx Economics and OPEC The economy is affected by many factors that determine if it is strong or weak. These factors have to do with buyers consuming goods and services and at what rate they do this. Do the goods and services that are consumed by people created wealth, jobs and a better overall economy for a country. Throughout history some economies have evolved faster and stronger than others. Policies that the government places on industry, technology and the environment can all affect the prosperity of an economy. Of the factors that affect economic growth the industry of Oil and gas is one that holds a stronghold in the world's and America's economy today. When evaluating the economic growth factor of economy and specifically oil and gas on must consider the following questions: ¨ What relationship does the factor have with the whole economy? ¨ How does this factor affect economic growth ¨ Is the factor a cause or effect of economic growth? ¨ what would the economy be like if there were significant problems with this factor? ¨ What relation does a central bank have to this factor? I will answer each of these questions in respect to how economy is affected by oil and gas. The economy in the United States today is greatly affected by oil and gas. When there are large reserves and an increase of active drills in respect to oil, the economy seems to receive a boost. This is because prices for such things like gas and oil fall and people are able to consume more gas at a lower price. There is more supply and prices fall, therefore people save money on gas and can consume other items in the economy. People working in these industries have more job openings and more jobs filled, therefore creating a lower unemployment rate and a higher national per capita income. The need for substitutes are not there so, consumers will consume oil and gas at a growing rate. Since, people use oil and gas for so many different things like heating there homes, driving their cars, and a variety of other sources, the overall GNP for the consumer will rise. Economic growth is affected through significant fluctuations in inflation of oil and gas. If you look throughout history when there have been fluctuations in gas and oil prices you have vast fluctuations in the economy of our country. 2007-03-08T00:36:42-05:00 http://75.150.148.189/free-essay/Economics-and-OPEC--32781.aspx Analysis of the Argentinian Economy and Government The article “Argentine Government Says It Can’t Pay Its Workers”, by Larry Rother, is about how the Argentine Government has not collect enough taxes to pay more than half a million employees. The scarcity principal is in effect in this situation, because the government has a limited amount of money to give to its employees. The people of the country are becoming outraged because the president gave himself a raise to 1500 pesos a month which is the highest amount a government official can be paid. When you put that into perspective, its seems very inefficient because there are people who are getting no money which is vital to keeping them and their families alive, and the most wealthy people in the country are continuing to get richer. One method the government is using to try to solve the problem by producing more pesos as a quick fix. One of the problems with this solution is that it could cause inflation and lower the overall value of the Argentinean peso. A decrease in the value of the peso, would Argentinean businesses would be unable to compete in the world market because their money would have no steady value. As the value of the peso continued to drop, businesses would have to find ways to cut costs and make more money. This would entail workers being laid off and prices being raised. If the market was perfect, price increases would be unacceptable and the businesses would cease to exist. This would thrust the economy into a downward spiral and take years to repair. The other proposal to help the situation was to tax businesses that were projecting big earnings in the future. This would raise the 2 to 3 billion dollars the government needs to pay the salaries of the employees. It was also proposed that the government put a twenty percent levy on gas companies. The problem with this was that the gas companies raised their prices at the pump in defiance of the president’s calls for their price restraint. The last proposal in this article was for a tax on agricultural exports. The government is proposing these taxes as “one time taxes.” The president was sworn in last month though, and is already unable to pay 2007-03-06T22:32:40-05:00 http://75.150.148.189/free-essay/Analysis-of-the-Argentinian-Economy-and-Government-32753.aspx Economic Globalization In a world of perfection there would be no hunger, no poverty, and no crime, but no such world can truly exist. There will always be suffering, hurt, anguish, and despair. Yet, shouldn’t we strive to provide a good future for all? This concept of the most amount of good for the most amount of people is called Utilitarianism. Contrary to popular belief, the United States doesn’t believe in such a state of being. Instead, through capitalism and economic globalization the United States has proven to believe in the exact opposite of utilitarianism. The United States has always been based on the principles of capitalism; however, the present economy is far from being the free enterprise system it was once envisioned as. The major change the United States made was directing the system away from competition. The result is a society dominated by mega corporations that control demand rather then respond to the demands of the market. To break down the previous statement the corporations are so in control of their products price that they can charge whatever they see fit. (Eitzen and Zinn 27) The reason for this is lack of competition in a capitalistic society. Karl Marx a social theorist of the 1800’s believed that the basis of social order in every society is the production of economic goods. The concepts of what is produced, how it’s produced, and how it’s exchanged determines the differences in people’s wealth, power, and social status. (Eitzen and Zinn 28) Marx argued that because human beings must organize their activities, in order to clothe, feed, and house themselves, every society is based upon an economic base. The form that people chose to solve their basic economic problems would, according to Marx, eventually determine virtually everything in a social structure. A social structure can include such ideas as family structure, education, and religion. In Marx’s view these social structures depend on a base economy. To apply Marx idea, keep in mind the United States is a capitalist society. Moving on Marx argued that every economic system except socialism produces a force that eventually leads to a new economic form. For example, in a feudal system the market and factory emerged but were not capable of a feudal way 2007-03-04T19:02:47-05:00 http://75.150.148.189/free-essay/Economic-Globalization-32723.aspx Capitalism and Class Inequality in Society Capitalism poses many different problems to the political economist. To Marx and Veblen, class structure is one of the most prominent issues of concern. Economic decisions and organization in society create class distinction, and in turn, the activities of one class affect the others. Marx and Veblen both offer unique analyses of class structure in capitalist society. Their theories differ both in how the class structures are arranged and how they emerged. Furthermore, many of these class distinctions are readily visible in today’s society just as Marx and Veblen foresaw them. In her book, The Overworked American, Schor points out many examples that exemplify these different concepts. The analysis leads to interesting questions of change as well. How do the concepts and examples appear when we step back and look at them in real world context and what must be changed in society to ensure the best possible lives for its people? There are important distinctions to be made between Marx and Veblen on class structure. Marx saw class structure as two opposing forces. These are dialectic classes. They are based in economics because Marx claimed that class was determined by the ownership of the means of production. To him society was grouped into two classes. The “Bourgeoisie” was the capitalist class that owned production and the “Proletariat” class was comprised of the workers. This class structure sets up a conflict of interests that creates growing inequality between the two classes. It is clear to see that in Marx’s analysis of capitalism that there are two distinct groups; those who produce and those who own production. This creates social structure because when one group owns the labor of another, wealth is created. People are aware of these income differences, and class separation is furthered by the division of labor along with inequality in wages. To Marx, capitalism is one of a series of constantly evolving economic institutions. The key to Marx’s class structure is private property. Private property has allowed the capitalist to accumulate the surplus value from production. It is because of this that the worker is alienated from what he or she produces. Estrangement, through the implementation of managers and technology, has increased the separation between the worker and the actual work. This creative destruction has, for most, created dull and unfulfilling work. “…The more intelligent the work, the duller the worker and the 2007-02-19T22:42:27-05:00 http://75.150.148.189/free-essay/Capitalism-and-Class-Inequality-in-Society-32677.aspx A Political Economy Approach to the Modern Corporation Throughout the semester we have studied some common themes that seem to unite all workers under different systems of economic organization; the main theme being the quality of life and the workplace for the members of society. Some of the more specific problems we have covered from the political economy side deal with the extraction of surplus value, environmental issues, the trend of excessive consumption and, perhaps most importantly, the undemocratic workplace created by capitalism. In Europe and various other cultures, there is much being to better the economic standards of living. We have examined democratic socialism, centrally planned economies, and most recently, and most effectively, the cooperative corporation. Mondragon Cooperative Corporation, MCC, has created a new way to run both a co-op and a corporation. Its aim is to protect the interests of its workers and its community. In particular, Mondragon has been organized in a way that presents new solutions to these common political economy dilemmas. Through its unique set-up, Mondragon has developed some innovative and efficient ways to deal with these specific problems. The Mondrargon Corporation deals most primarily with the problems workers face from undemocratically run businesses. The key is that the corporation is runs on a foundation of values that are designed to keep the interests of the community at the forefront of all production. This is an immediate departure from profit driven, capitalist firms. Self-interest behavior of capitalists is the first step away from any sort of democratic production. What is truly democratic about a corporation like Mondragon is that there is an emphasis on equal ownership despite wage discrepancies that may exist within the firm. Therefore, the democratic workplace exists because of “the notion of ordinary citizens controlling the business upon which they depend, thus making a better life for all” (MacLeod, 20). The invested interest of everyone is embedded in the firm because it is run by the workers as a whole. This is the principle of a democratically run work environment. Furthermore, the MCC works so well as a democratic corporation because it is primarily run by an internal labor union that is comprised of the Social Council. This promotes better communication between management and lower level employees, where the traditional capitalist corporation falls short. This works because in many corporations, managers are in place solely to monitor the work of the employees. In 2007-02-19T22:39:55-05:00 http://75.150.148.189/free-essay/A-Political-Economy-Approach-to-the-Modern-Corporation-32676.aspx Differences Between Mainstream and Political Economics The fundamental distinction between mainstream economics and the political economy approach to economics is how we define and measure the economy. More importantly, how do we equate the performance of our economy to the overall quality of life experienced within the economy. The differences between the two approaches are uncanny. They range from topical calculus to philosophy. Another vast difference is the focus on individual behavior compared to society as a whole. What both mainstream and political economics do have in common, however, is that they are both, in essence, a study of human behavior. This creates even greater distinction between the two, as political economists argue that human behavior cannot be quantified, while mainstream beliefs hold that we all follow rational behavior. The enormous difference in views of human nature and the separate methodological approaches are what fundamentally distinguish mainstream and political economics. Mainstream economics begins with the individual. Micro and macro economics courses teach us that we all, always behave rationally and always in our best self-interest. We are driven to maximize the utility of the goods and services produced and sold in markets. Also, it is economic gain that motivates us all to buy, sell and work. In mainstream economics, we are all termed, “economic man.” This implies that it is our inherent human nature to behave in ways that will offer us personal gain. Do we not have any other motivating forces in our nature? Can anyone validly deduce that this is in fact a universal human trait? Political economists would disagree. Fundamentally, the individual is a part of a larger group. Furthermore, the group, part of a particular place and time. This has separate implications altogether. What’s more is that human behavior is not readily predictable by any means. In fact in many cases, especially with consumers, it is completely irrational. The emotional attachment between advertisements and products we experience is a great example of irrational behavior in economics. The fact that humans are social beings is a natural tendency that political economists look at. We behave in context to the various relationships among us. This is why we are all interdependent and how we all fit into society. In the political economy approach, the social institutions and their implications form the basis of the methodology. These involve the lenses of politics, psychology, sociology and history. Mainstream economics is rooted in 2007-02-19T22:28:36-05:00 http://75.150.148.189/free-essay/Differences-Between-Mainstream-and-Political-Economics-32675.aspx Karl Marx and Political Economy Marx’s thoughts on political economy and his critiques on capitalism stem from the question that all human society must face; what must we do to survive? Mainstream economics questions how we organize ourselves to meet the unlimited wants of people by allocating scarce resources. Political economy focuses on social institutions and implications that the economy creates. Marx saw economics as the key to any society. Through the modes of production, classes form and changes occur. He saw capitalism as, “simply the latest in a series of modes of production and that it, too, will yield to some other mode of production in the future” (Sackrey, 27). Capitalism is rooted in historic change. His ideas of surplus value from private property, systems of command from class separation and a general commodifaction of man and labor through estrangement tarnish the idea of work itself. Private property, systems leading to class separation and labor estrangement that inequality and ownership create are the fundamentals. Most important to Marx’s theoretical argument against capitalism is the idea of private property and personal ownership. By owning large portions of land, firms and corporations will control and own all that is produced. As in agriculture the farmer takes the crop of his land, ownership of the plant and capital and labor ensure control of whatever is produced to the capitalist. This principle is the basis of many other arguments of Marx. By owning the property you own both the means of production whatever is produced. In his Communist Manifesto, Marx saw ownership as the inevitable lead to profit maximization. Since capitalist own the property, they, in effect, own the labor time that is put into producing something. This creates class distinction and wealth. “Property in its present form, is based on the antagonism of capital and wage labor,” (Communist Manifesto, 8). Ownership provides the luxury of doing what you please with what you produce. This is the notion of the surplus value, the extra amount that is created by a worker per day. For the most part, this is directly turned into profits. Bowles expands on many of Marx’s political economy ideas with parallel examples and more importantly, explains how Marx’s ideas have extended into other institutions we see today. For example, he describes how capitalists have taken the notion of ownership and surplus value to create relationships of command and power. By having ownership 2007-02-19T22:27:29-05:00 http://75.150.148.189/free-essay/Karl-Marx-and-Political-Economy-32674.aspx Economic Case Study of Outsourcing University Food Service In a changing world in which commodification is king, it is often the unskilled workers whose interests are pushed to the wayside. This is clearly the case with the Bucknell University dining services, in which many loyal, dedicated workers stand to lose their jobs and other important benefits. In this paper, we will explore how community and quality will inevitably be sacrificed in order to create a more efficiently run food service program. We have constructed our argument from data we collected through numerous interviews with dining service workers and managers from the cafeteria, the Bison and Seventh Street Café. It is very important to remember that this is opinionated data that may or may not be totally correct. However, it is factual data in regard to how the staff feels about this process. To supplement that, we interviewed the president of the Union County Industrial Corporation, Mr. Steven Hall, and a faculty member who is close to the dining service staff and is well informed about the issue at hand. We listened to the employees’ opinions on issues such as their current work environment, how their working situation could be improved and the changes that they expect. From these interviews we have discerned some of the concerns about the current dining service situation as well as possible concerns that a new contract could cause. Our goal is to give merit to the words of these workers. After all, they have the most to loose in this process. Unfortunately, as we found out quickly in the interview process, their voice is simply not being heard. In 1993, following the resignation of the dining services’ upper-level managers, Bucknell decided to bring in a professional food services company to handle it’s dining and catering needs. When they decided on Wood Dining Services, the dining services staff (Bucknell employees until that point) were given the option of continuing on as Bucknell employees or converting to Wood’s payrolls. Many decided to shift to the higher-paying Wood, but a good number chose to continue under Bucknell. They valued the benefits Bucknell entitled them to over the incremental wages. One of the main benefits of remaining a Bucknell employee was basic job security. This cannot be assumed when working for a contractor, as your 2007-02-19T22:04:22-05:00 http://75.150.148.189/free-essay/Economic-Case-Study-of-Outsourcing-University-Food-Service-32661.aspx Examination of Unemployment in Japan's Economy Since World War II, Japan’s economy has seen incredible growth with rising prosperity and wealth, providing jobs and security for many as well as offering a broad range of opportunities for foreigners. This economic uptrend, however, was followed by a harsh letdown and one of the worst financial crises in recent economic history. Fluctuations in an economy are cyclical and pose consequences for the various demographics in its society. The burst of the Japanese bubble economy experienced these cyclical problems on a highly inflated level. The day laborers, foreign guest workers and emerging new homeless of Japan have since faced similar hardships as individuals seeking to fill spots in a dwindling job market. They face serious competition amongst each other, where changes in one demographic may strongly affect one another, and significant problems that illustrate some important underlying themes about Japanese attitudes toward employment in both a corporate and public sense. As in any healthy economy, fluctuations are a normal occurrence. Competition in various markets creates new jobs and leaves behind old ones. What is often overlooked in the economics here is that with these jobs, many of the individuals working them are left behind as well. In his article, Guzewicz points out that society tends to emphasize economic success rather than failure. This has deep implication for the workers that are left behind, as they typically go unnoticed and under the radar. The day laborers, foreign guest workers and new homeless come to represent this group in Japan, as they are competing for many of the same lower-level and part time jobs. They are economically linked by their necessity for jobs to provide for themselves and their families. They are also linked by the inherent social struggle they face as the Japanese economy rebounds from its collapse. In such a tightly homogenous society as Japan is, group mentality and recognition creates a strong social influence on those unable to work or meet their financial obligations. This economic link between the different working, or, trying-to-find-work groups, is clearly seen in the way by which the three demographics live in specific parts of the city; separate from the “respectable” Japanese. Fowler exemplifies this in his study of Sanya, a part of Tokyo that has historically been the geographic region occupied by the day laborers. These people have often left behind families and lives often because 2007-02-19T22:00:35-05:00 http://75.150.148.189/free-essay/Examination-of-Unemployment-in-Japan-s-Economy-32659.aspx The Institution of Lifetime Employment in Japan Lifetime employment in Japan has long been regarded as one of the stereotypical features in the Japanese workplace. Our readings have shown us varying degrees of lifetime employment’s viability as an institution in different work environments and social classes. Exemplified through ethnographies about line workers at Yusumi Motors and the Azumi lingerie factory, the office ladies and salaried men in a Japanese bank, and the social elite of Japan’s doozoku geisha, it can be seen that there are elements of lifetime employment in each example as well as some important biases and inconsistencies in each. At Yusumi Motors, Joshua Roth’s study was to examine how the factory ran and what it was like to be a foreign working alongside the Japanese. Studying the relationship between foreign and domestic workers on the line at Yusumi gives us some insight into the validity of a lifetime employment system in Japan. It is important to mention here that this study contains some biases as it is a narrow view of only one company and hence may not be reflective of all Japanese workplaces. It is also important to note again that Roth’s study is on the work and workers of the factory and not lifetime employment. Speculation on lifetime employment at Yusumi may not be completely representative of the system. Another bias of importance is that Roth came to Yusumi as an outsider, where there are a lot of foreign workers whom are not typically brought on to stay till retirement. This could affect Roth’s views on Yusumi as a lifetime employer. As Roth explains in his piece, lifetime employment systems in Japan have been waning as a result of the Japanese financial crisis. Companies seek to hire cheaper labor often found by bringing in foreign workers and day-laborers, which reflects a shift in the traditional commitment a Japanese company has towards its employees. As these workers are not necessarily long-term investments for the company, they do not receive the typical incentives to stay on for lifetime employment. At Yusumi this was evident. Recent economic difficulties in Japan have led to an influx of foreign and guest workers in places like Yusumi. Immigrant workers create cheap and expendable labor. What this meant at Yusumi in terms of lifetime employment was that foreign and Japanese workers became distinguished. Jobs that foreigners took became associated with unacceptable work for the 2007-02-19T21:57:52-05:00 http://75.150.148.189/free-essay/The-Institution-of-Lifetime-Employment-in-Japan-32657.aspx Studying the Economic Environment The economic environment consists of factors that influence the consumers buying power. A consumers buying power will depend on many economic trends such as income, prices, savings and credit. Therefore it is important that marketers become aware of these trends that significantly influence the consumers spending patterns and buying behavior. Arnott’s is a multinational company in Australia and many other foreign countries The major threats, opportunities and trends, the economic environment has posed to the marketers of Arnott’s, are factors that have had significant impact on the stability of the company. In 2001 Arnott’s experienced its most significant threat to the company especially, to its employees. Arnott’s closed its Burwood manufacturing plant in Melbourne, which resulted in 550 employees loosing their jobs. The most highlighting economic effect to this situation was that the total budgeted cost for the “reconfiguration” exceeded $30 million, in addition causing a reduction in production operations and hence the profitability and capital of the company. Arnott’s marketing managers will have to find its funds from its other invested companies in order to allocate the costs from its reconfiguration decision. It was suggested that the closing of the Arnott’s manufacturing plants were a result to management problems of low profile and persistent labour. As a consequence the company has lost a potential market, consumers in this market will shift their buying behaviour and decisions to other biscuit companies as Arnott’s will no longer be available to them therefore the company will also loose both its profits and its consumers. Another relative threat for the company was the Australian government. The food processing industry has been a target of State and Federal governments who attempt to induce higher exports, which in effect has caused hundreds of dollars and hence in addition a reduction in consumer buying power as exports become limited and prices increase. The outcome was a management system that was a highly formal beaurocratic organization, and in addition, slow and ineffectual. Managers on salaries of $70,000 a year took their instructions from junior employees. This management system clearly could not have delivered the levels of continuous productivity improvement that Campbell applies as a benchmark to their global operations, therefore slow productivity and reduced net profits are significant economic threats for Arnott’s marketers. Major economic opportunities Arnott’s has faced have been both negative and positive influences. The most highlighting experience of opportunity for Arnott’s was when 2007-02-02T17:49:54-05:00 http://75.150.148.189/free-essay/Studying-the-Economic-Environment-32540.aspx Study on Drugs, Violence and Economics Introduction One point on which almost everyone interested in drug prohibition agrees is the existence of a connection between drugs and violent crime. The disagreement is on the form of the connection and the sign of the correlation. Supporters of drug prohibition typically argue that drug use leads to violent crime and should be illegal in part for that reason. Critics of the war on drugs argue that the attempt to prohibit drug use leads to violent crime and that that is one of the reasons drugs should be legal. A glance at the figures for U.S. murder rates over the course of this century provides some support for the critics' position (Figure 1).[1] Murder rates were high during the period of alcohol prohibition, fell after repeal, rose again with increased efforts to prohibit illegal drugs, and remain high. The impression given by the graph is confirmed by more sophisticated analysis. Jeffrey A. Miron has analyzed the relation between violent crime in the U.S., as measured by the murder rate, and the enforcement of drug prohibition (including alcohol prohibition) as measured by expenditures by the federal agencies in charge of enforcing prohibition (Figure 2), over the entire period for which murder rates are available on a national basis. His statistical results "suggest the homicide rate is currently 25%-75% higher than it would be in the absence of drug prohibition."[2] The case of the U.S. is particularly interesting for at least two reasons. One is that the U.S. murder rate is anomalously high relative to other countries that are otherwise similar–about 8 to 10 murders per 100,000 population over the past two decades, compared to 1 to 2 for countries such as Canada, Australia, the U.K. and countries in western Europe. The other is that the U.S. provides data on both the murder rate and enforcement of drug prohibition over a fairly long period of time. The high U.S. murder rate is frequently attributed to the high rate of gun ownership in the U.S., relative to most comparable nations. One problem with that explanation is that, while it is true that there is a significant correlation in international comparisons between gun ownership and murder rates, that correlation is driven by a single observation–the U.S. Regressions with the U.S. omitted show much weaker results, despite the existence of other countries with relatively high gun ownership rates–and without anomalously high murder rates. A 2007-01-11T19:54:22-05:00 http://75.150.148.189/free-essay/Study-on-Drugs-Violence-and-Economics-32375.aspx Benefits of British Production Outsourcing There are many reasons why a British based business today may want to transfer production overseas. One of the main reasons is because of the resources that are needed to produce the products. Resources can often be cheaper abroad and obviously reduce costs for the business. Also if the business moves closer to where the resources are then they will reduce the costs for shipping the resources over to Britain. Britain also has very busy roads that can cause transport to take much longer and therefore cost more. These reduced costs are clearly advantages to the business therefore giving a good reason to move abroad. Another good reason for a British based businesses to move abroad is if there is a higher demand for a product (that the business sells or may sell abroad in the future) than there is in Britain. The demand could be higher because of the current fashions and ‘hypes’ that there are in the country. This would mean the business can be closer to it’s customers and again reduce costs for moving the products around. Labour availability, costs and training can also be influencing factors for a business to move production overseas. There may be more available staff abroad than in the area of Britain the business is in. Potential staff for business abroad may be able to work for cheaper, reducing the businesses wages and salary costs. There could also be better or cheaper training of staff where the business may move its production. There are different Laws in different countries that could prove beneficial to a British business if it was to move its production. For example, a law that could benefit a business in the food industry is health and safety regulations, if the rules were more relaxed than in Britain a business can cut back on it’s regulations and therefore reducing costs. Also in some countries trade unions may be less powerful and in control than they are in Britain so the people running the business can have more control of decisions and actions taken. Another influencing factor is that now days with the Internet, any business can become global and sell products/services to anywhere in the world. Because the geographical position of an Internet business does not matter so much, the business could move abroad to where premises are cheaper than in Britain. Premises in Britain are well known 2007-01-11T04:58:11-05:00 http://75.150.148.189/free-essay/Benefits-of-British-Production-Outsourcing-32353.aspx Economics of the European Economic Community The prospect of a united Europe has been in the minds of people since ancient times. In history, there have been many attempts to unify the European continent as one such as Charlemagne, Napoleon and Hitler. It is only now that the unification of Europe seems to be possible through the goal of the growing organization in Europe called the European Economic Community (EEC), or the Common Market. The EEC was in the process of cooperation and integration, which began in 1958 with only six members. Now the members who united are: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxemburg, Netherlands, Portugal, Spain, Sweden, United Kingdom or Great Britain, and Northern Ireland. There countries all united for the same objectives which are expanding trade with other regions of the world, reducing tariffs among the member countries, lowering prices for consumers, and expanding employment and investment opportunities. While the nations of Europe try to work together towards this common goal of a unified Europe, it is necessary to look at the situation and ask if the EEC is truly having an effect on Europe. Single Market Part of the EEC is the free movements of goods. This applies to products within the members of the EEC. This movement involves abolishing custom duties, number amount of restrictions on trade, and the establishment of tariff within the community. This was made to eliminate obstacles of trading and now viewed in creating the internal market, which is when goods could move as freely as on a national market. A good effect of the uniting of the nations is the opportunity the workers can have. It would increase the community’s workers’ chances of finding work and adding to their professions because there will be no more boundaries. This would encourage many workers and encouraging the mobility of workers, as a way of stimulating the human resource response to the requirements of the employment market. Workers would process contracts throughout the community and this would promote mutual understanding, creating an even closer union among the people of Europe. This would be the main aim of the treaties. To eliminate the discrimination of professions, EEC agreed on free to exercise their profession throughout the community. This intention was mainly to ensure that self employed was able to freely exercise their professions in terms of establishment or freedom to provide services, 2007-01-09T02:14:44-05:00 http://75.150.148.189/free-essay/Economics-of-the-European-Economic-Community-32304.aspx Analysis of the Canadian Healthcare System The Canadian healthcare system affects each and every citizen of this country. People of every background, be it economic or cultural, rely on our hospitals and healthcare professionals to care for us in times of need. One of the many reasons that Canada is rated again and again to be the best country in the world to live in, is the fact that we can provide free basic healthcare to each and every citizen. But today in Canada, we are facing a healthcare crisis on many levels. Our hospitals are overcrowded, many of our top professionals choose to practice south of the border and our aging population must be cared for. These are just a few of the problems that must be dealt with quickly and effectively, to ensure the continued high standards of living we have come to enjoy. I believe that the single most important issue when it comes to healthcare in Canada, is how federal dollars will be spent. How this process is handled directly regulates the quality and type of care patients in each province will receive. There has historically been conflict between the provincial and federal governments when it comes to deciding how these dollars will be spent, but I believe that I will be able to come to a fair agreement with each and every premier. I propose that the federal spending be split 60:40, with 60% of the dollars being under the jurisdiction of the federal government and the remaining 40% to be spent at the discretion of the provincial governments. By doing this, the federal government could standardize many services, and be sure that be sure that no province is severely lacking in any one area. Each provincial government would then have the remaining sum of money to spend in areas that they feel need it. Under this new system, the tracking of how federal dollars are spent will be much more accurate, because a large sum is directly being spent by the federal government itself. Another problem in the past with distribution of federal dollars has been with Quebec and other more conservative provinces, which are more weak federalists. With this new proposal, each province will be able to spend a significant amount how they see fit, without the federal government intruding. A problem that is worsening in 2007-01-06T21:01:55-05:00 http://75.150.148.189/free-essay/Analysis-of-the-Canadian-Healthcare-System-32255.aspx Elderly Care in Foreign Countries When you think of growing old you think of spending time with family and friends, traveling and feeling financially secure to be able to retire. Unfortunately in today’s society the elderly is beginning to wonder if they will be able to retire, if social security will be available to them, if their families will be able to care for them or will some of them be forced to live in a retirement home. These hopes and fears are realized to all elderly people, weather they live in the United States or in other countries. In the past, China has been focused on keeping their population under control and not focusing on their aging population. During the baby boom of the 1950’s, China made it so couples could only have one child per family to control the countries population growth, which in fact is coming back to hurt them now. With so many elders retiring and drawing social security, there are not enough workers paying into the social security system to keep up with the demand. China has the largest population on elderly in the world with 120 million elders in their society and by 2050 China will have to deal with how they will be able to support over 400 million people over the age of 60. Traditionally in China, it is the oldest son’s responsibility to take care of the parents. The parents will live with the oldest son who provides them with everything they need finically and the other children are their to offer emotional support for the parents, but over the decades these roles have changed. Do to the fact that couples can only have one child per family and it is better to have a son to take care of you, couples give their daughters up for adoption in order to be able to keep their sons. This causes a problem because as of the twenty-first century there are more single middle-aged sons who are having to support their parents finically and emotionally all by themselves. China has only a little over 136,000 community centers for the elderly to live in. The best way to handle this situation is for a family based support system and community services. In Russia, the elderly population has gone up twenty-five percent in the last 2007-01-06T18:28:17-05:00 http://75.150.148.189/free-essay/Elderly-Care-in-Foreign-Countries-32249.aspx Monopolies Defined A monopoly, by definition, is an organization which engages in unfair and often unethical business practices to dominate an industry and eliminate all competition which might inhibit their profits. In the latter stages of the 19th and the early stages of the 20th centuries, the United States passed several crucial acts, most notably the Sherman Antitrust Act and the Clayton Antitrust Act, which made it illegal to own a monopoly in the United States. Since the early part of this century, the government has only come into battle with a couple organizations on these grounds. The two most notable of these are AT&T and IBM. The Department of Justice won the case against AT&T and forced the company to split into the many so-called "Baby Bells" and "Ma Bell", or AT&T, the long-distance company. The other notable case was the DOJ vs. IBM. Though the Department of Justice eventually dropped its case, IBM split itself up a mere two years later. A big software corporation, Microsoft, is the target latest of the antitrust trial. It has a current market capitalization of $323 billion, and used to be the highest valued corporation in world before a court ruled on April3, 2000 that Microsoft violated the antitrust laws on. On the other hand, Microsoft immediately announced its appeal on the same day. The government’s central argument has been that Microsoft employed predatory tactics in the browser market, not for the purpose of dominating in the browser market, but for the purpose of protecting its dominance in the operating system software market. To substantiate this claim, the government has argued that Microsoft spent more money improving IE than could be justified on the basis of its likely return in the browser market alone. Actually, the decision to sell IE at zero price reveals that Microsoft was not motivated by obtaining profits in the browser market. The integration of IE into Windows was solely for the purpose of harming Netscape, and Microsoft used its power in the OS market to negotiate contracts with PC manufacturers and web service providers that had the effect of excluding Netscape from major segments of the browser market. The OS market is characterized by the presence of network effects, which means that the value of a product is higher if more people buy it. For example, the more people who own fax machines, the 2006-12-13T01:07:11-05:00 http://75.150.148.189/free-essay/Monopolies-Defined--31979.aspx Social Effects of Free Market Capitalism in America The United States is the most developed capitalist economy in the world. The markets within the economy provide profit-motivated companies endless potential in the pursuance of pecuniary accumulation. Throughout the twentieth-century competitive companies have implemented modernized managerial procedures designed to raise profits by reducing unnecessary costs. These cost-saving procedures have had a substantial effect on society and particularly members of the working class. Managers and owners of these competitive and self-motivated companies have consistently worked throughout this century to exploit the most controllable component of the production process: the worker. The worker has been forced by the influence of powerful and affluent business owners to work in conditions hazardous to their well being in addition to preposterously menial compensation. It was the masterful manipulation of society and legislation through strategic objectives that the low-wage workers were coerced into this position of destitute. The strategies of the affluent fragment of society were conceived for the selfish purpose of monetary gain. The campaigns to augment the business position within the capitalist economy were designed to weaken organized labor, reduce corporate costs, gain legislative control and reduce international competition at the expense of the working class. The owners have gained and continue to gain considerable wealth from these strategies. To understand why the owners of the powerful companies operate in such a selfish manner, we must look at particular fundamentals of both capitalism and corporation strategy. Once these rudiments are understood, we will more clearly relate the perspective of the profit-seeking corporations of America. Legal discussion will also be included to show how the capital possessing elite operate through political parties to achieve their financial objectives. It is the synergist effect of these numerous strategies that have lead to the widening income gap in America, persistent attempts of contraction in worker’s rights and increased corporate political influence. These campaigns have come at an expense to Americans and will only continue to benefit the affluent society. Creating Corporate Value The United States is a capitalist economy. In a capitalist economy individuals who wish to gain wealth can invest their capital into markets in hopes of future returns. If this investment gains in value then the investor has earned a return, which can be reinvested. This creates a cycle of investing and reinvesting for potential future return. This wealth creating cycle is a fairly simple concept to understand, 2006-12-04T20:45:45-05:00 http://75.150.148.189/free-essay/Social-Effects-of-Free-Market-Capitalism-in-America-31857.aspx Fiscal Policy in the United States “Real plans for real people.” This was the coined theme for the Bush campaign back in September. As far as I can see with his tax cut plan in doesn’t involve “real people”. It may just depend on your definition of the term, but the “real people” of America are the middle class, hard working families. Bush’s tax plan is now said to be $1.6 trillion over a ten year period of time. Most of this money will go to the upper brackets, the “better off”. Granted they do pay the most money, but then when you think about it, why do they need the cut? Can they not afford to pay their taxes? In this economic time of a feared recession our government should be doing everything in their power to avoid this situation. Having a prolonged tax cut does nothing to help the economy now. By the time the money is given back we and more than likely to have already succeeded this economic down low. The economist will tell you the in order to dodge this the money must be given back now. If the money is given back earlier there is a better chance of people spending it and stimulating economic activity. When looked at by this point of view I most definitely agree with Laura D’Andrea Tyson when she said, “Bush wants a large tax cut for political reasons, not economic ones.” When Robert J. Barro discuses how he thinks the tax cut will stimulate investment and growth, increase incentives to work and save, and lower the amount of money Congress can spend, I find myself disagreeing with him. As said earlier Bush’s tax cut will do very little, if anything, to help stimulate growth. Ten years is a very long time. As for increasing the incentive to work and save, I find it hard to want to save my money when they take it away for taxes. If you want to give an incentive to save, why not turn to VAT’s instead of income taxes? I know this would be an almost impossible thing to accomplish but the way it was explained to me was so clear. I thought in my head, “Duh! Why don’t people explore this option?” Also, if they lower 2006-12-04T20:42:38-05:00 http://75.150.148.189/free-essay/Fiscal-Policy-in-the-United-States-31856.aspx www.citizen.org/trade/nafta/ Oregon’s largest export is suffering. Lumber prices are at the lowest weekly level in almost five years. You can’t blame a recession in the economy this time though. Lumber prices have fallen dramatically from the beginning of this year and there are many different causes for it. The price of framing lumber has dropped from a high of $401 to $274 per thousand feet, since the beginning of this fiscal year. As a result of the plunging lumber prices, layoffs, reduced work shifts and reduced operated hours will occur. This will affect our local economy drastically. The housing market has been flooded with homes since the beginning of this year and the homes aren’t selling. In the beginning of 2005, home developers and home buyers created a fast moving market place because of the low interest rates and low lumber prices, so homes were cheaper to buy and to build. This created a high demand for homes and when the demand is high, the price of homes is even higher. The mass builders took advantage of this and created an excess of homes. Then suddenly the homes stopped selling because of the high prices in the market, higher interest rates and high lumber prices. This has a direct correlation with the prices of Douglas fir 2-by-4s and the amount produced. When the demand of lumber was high, the supply of lumber was trying to keep up with high-speed housing market and the prices were at its peak. With the summer coming to an end, the peak home construction will slow even further and lumber price will continue to fall. November 14th, 2004: The issue of plummeting lumber prices arose like it would two years in advance from this date. This time when the lumber prices fell it was caused by foreign markets influencing our domestic market. January 2004, marked the tenth anniversary of NAFTA (North American Free Trade Agreement). The introduction of NAFTA erased any tariffs that would be imposed on products entering American via the Canada-United States boarder or the Mexico-United States. This allowed the once high taxed foreign products to enter America free of charge. The continually growing influence of NAFTA, dictated whoever in North America that could produce the cheapest and highest quality product sold their product. This caused 2006-11-15T07:14:00-05:00 http://75.150.148.189/free-essay/Economics-and-NAFTA-argue-31743.aspx Understanding International Business Environments Understanding the dynamics of the international business environment is a complex process because there are so many factors that can impinge the success or otherwise of an international business. The business environment is changing and its volatility is increased by the threat of competition and changing business culture. Most importantly, as MNCs venture into new and unknown grounds, they have to carefully consider respective countries’ risks that they are dealing with. Political Ideologies and Economics An ideology is a set of integrated beliefs, theories and doctrines that helps to direct actions of a society. Political ideology is almost intertwined with economic philosophy. For example, the political ideology in USA is grounded in the Constitution, which guarantees the rights of private property and the freedom of choice. This has helped to lay the foundation for US capitalism. A change in this fundamental ideology would alter the economic environment of the USA. The political and economic ideologies of nations are important factors in managing country risks. Political systems. In the extreme, there are two types of political systems: democracy and totalitarianism. Democracy is a system of government in which the people, either directly or through their elected officials, decide what is to be done. Good example include the USA, Canada, England and Australia. Common features of this system include (1) the right to express opinions freely (2) election of representatives for limited terms of office (3) an independent court system that protects individual property and rights and (4) a relatively nonpolitical bureaucracy and defense infrastructure that ensure the continued operation of the system. On the other hand, totalitarianism is a system of government in which one individual or political party maintains complete control and either refuses to recognise other parties or suppresses them. There are a number of types of totalitarianism that currently exist. The best known is communism in which the government owns all property and makes all decisions regarding production and distribution of goods and services. Two of the best examples are China and Cuba. Another form is theocratic totalitarianism, in which a religious group exercises total power and represses or persecutes non-orthodox factions. Iran and some of the sheikdoms of the Middle East are good examples. A third form is secular totalitarianism, in which the military controls the government and makes decisions, which it deems to be in the best interests of the 2006-10-31T22:49:42-04:00 http://75.150.148.189/free-essay/Understanding-International-Business-Environments-31652.aspx Cost of Living Experiment I think this project was very realistic and easy to understand if you already have bill that you pay. Most of the simulations were things that come up every day that you have to take care of. In my simulation job I made $55,000 a year which is a little more than most people make. Running out of money wasn’t a issue, we had more than enough to get everything we wanted, we had a nice house, brand new car and enough money left over for anything that might pop up. The first day of our simulation there were of events that came up like your car getting recalled and you had to get a rental, your taxes went up on your house so you had to adjust you whole monthly budget. It was showing that these things can just happen and you need to have money to take care of it. On day two you friend asks you if you want to go on a trip to New York City and you can’t pass it up and you would probably spend a couple hundred dollars to have a good time. Not all the simulations cost you money, just like in real life. On day three of the simulation your boss gave you a two hundred-dollar bonus for working extra hard. Your neighbors that you shoveled their walk way for gave you one hundred and twenty dollars. For simulation day four we had to decide what things are likely to happen to us could cost us money or benefit us. For example when big sales happen your going to want to have money to spend, gas prices are always going up, and if you don’t have insurance on just about every thing that you own than it could get really expensive to fix things or health reasons. You also have bills that are very easy to forget about that come around once a year like registering your cars, which can get really expensive, if you own an expensive car. I have the a house with a pool table and a swimming pool, two car garage and the all the latest amenities. You can forget about bank service charges too, like on day five you when we had to review over our checkbook and make sure the balance is 2006-10-28T20:06:54-04:00 http://75.150.148.189/free-essay/Cost-of-Living-Experiment-31598.aspx Economic Systems and Participatory Development Perspective Trying to develop a country with a new economic system is the hardest thing to do in developing a country. Without a stable economy in a new country it will be impossible to maintain a true country. Participatory Development is the perspective for the basic need country. It is a strategy developing countries use to start out with the basics, and not spend a lot of money and then enhance their country as time and money become more efficient. Now the focus of this development is waiting until industrialization has produced a trickle-down effect, when it should be on directly raising their quality of life using strategies available now. This development is also defined as a sustainable development, which produces more and better-quality food to reduce malnutrition. Also it improves primary medical care, education, and housing. Economic growth is not a goal of this development, however, it may occur as a result of basic needs. If growth is made a primary objective in development it will reduce the poor’s quality of life, because scarce resources are redirected and invested in increasing the production of cash crops instead of food. Participatory Development allows ordinary people to improve their lives without industrialization first, because it calls for immediate failure. The definition of this development has emerged from experience by going through the trial and error process. They meet the basic needs of the community, participate in decisions, and use available resources they have around them and eliminate having to use big and expensive machines. This development needs to learn how to operate and use industrial machinery to their benefit. Also they need to work on the misdistribution of wealth and power between the domestic and international markets. Basic need projects are the only kind that makes sense to the majority of the world’s people. Industrialization with its long term promise of the trickle down benefits has not and will not ever solve the problems in global poverty. If these problems are not fixed properly, these countries will fail in their attempt to develop a successful country. Also they have locals participating in project planning and implementation; this is needed to make the change successful. The need to change is great, but time is short(Galbraith 103). In attempting to develop a new country there is 2006-08-31T17:47:13-04:00 http://75.150.148.189/free-essay/Economic-Systems-and-Participatory-Development-Perspective-31400.aspx Facing Distribution Problems in the Chinese Economy The purpose of this report is to analyze the advantages and disadvantages of different distribution methods available to Beijing Oasis and decide which method should be implemented. Based on the advantages and disadvantages of each distribution method, a recommendation will be offered as well as implementation of that decision. Statement of the Problem The most vital issue currently facing Gervais Lavoie is the decision of method of distribution. He has been given three alternatives with which to analyze. Poor distribution decisions in the past have caused businesses to fail dramatically, so he is imminently aware of the magnitude of this decision. What method of distribution should be implemented for Beijing Oasis High Nutrition Food Company Ltd. to distribute the company’s newly developed fruit nectar? This is a problem because, as stated before, the consequences of a poor distribution decision could prove fatal. Situation Through steps to open its markets to international exporters, and to comply with World Trade Organization (WTO) membership application requirements, global trade with China has changed significantly in recent years. “After a decade of reform, the economic situation in China has improved enormously. ” Opportunities are available to foreign companies to enter the Chinese fruit juice market, with tax and land incentives offered to lure foreign business to China's special economic zones, and tariffs lowered to invite imports . “The adaptive ability is shown in learning new concepts and rules developed in a market economy, which might involve changing assumptions and the way of thinking.” The fruit juice market in China is dynamic, with many opportunities for international competitors to enter the sector. In 1995, Canada held 1.6% of the $63.9 million imported fruit juice market in mainland China, but that share slipped to 1.0% in 1996, despite the fact that the value of the market increased to $69.4 million. Imports of fruit juice to Hong Kong decreased to $119.1 million in 1998 from a high of $186.7 million in 1997. Canada supplied 5.4% of Hong Kong juice imports in 1998, and could dramatically improve upon its share of China's total fruit juice market . “…There is a valid argument that emphasizes concentrating resources in enterprises that are less state-controlled on the grounds that they are more efficient. The Chinese experience according to some economists tends to support 2006-08-25T17:42:02-04:00 http://75.150.148.189/free-essay/Facing-Distribution-Problems-in-the-Chinese-Economy-31281.aspx Globalization In The New Century To say that globalization has not encountered its share of dilemmas would be to fool ourselves. Other than the persistent headache it has caused, all other aspects of this twenty-first century system have encountered road blocks that portend potential disasters on a larger scale. Still in its infancy, globalization has shown an unparalleled capability to reshape foreign economies and multinational business markets; the expansion of the Internet will only extend that influence, not only in economics but also in global politics. At this crossroad of changing policies and technologies, we must be prudent about globalization’s effect on foreign societies, identify the risks in expansion through the World Wide Web, and delineate between business and political partnerships. Now is the worst time to choose expediency over the ideals of fairness that we have long espoused. Superficially, the US’s endorsement of legitimate transnational trade agreements carries our message of fair and free trade, but we may be unintentionally overlooking the long term risks of global integration that depends on information technology (IT). Many nations do not have equal access to the Internet, putting them at a disadvantage in a system more reliant on IT. A microcosm of the emerging digital divide can be seen within our own borders, where the percentage of white people able to use computers greatly exceeds the percentage for African Americans. If such a disparity in the accessibility to IT were enlarged, as in the case of Africa versus its neighbors, many would fall into the widening digital abyss. After listening to Professor Vinod Aggarwal, Director of the APEC Study Center at UC Berkeley, talk at a recent Great Decisions session about the effects of globalization, I noticed that he had similar concerns about the possibility of people in lower socioeconomic levels being left further behind. This, however, does not mean we should grind globalization to a screeching halt. The expansion of IT has promoted the exchange of free ideas in countries with oppressive governments, including China, where behind rigid authoritarian barriers, the Internet is opening new conduits of free speech. Additionally, trade agreements are bringing the issue of human rights back on the table for discussion. I hope I can have a chance to hear more of what experts have to say about these challenges at this year’s conference. Expanding businesses online carries huge implications, and oftentimes, computer networks are enormous bubbles waiting to burst. 2006-08-12T10:45:46-04:00 http://75.150.148.189/free-essay/Globalization-In-The-New-Century-31223.aspx Why Nations Trade Thesis: Why do nations trade? We will not attempt to argue for or against trade among nations, but rather analyze why a nation would want to trade at all. We will also discuss some of the laws and organizations that assist in international trade. One early form of economic policy was known as mercantilism and dominated during the 16th and 17th centuries. The premise of mercantilism was to increase the strength of the state and promote national unity. Gold and silver represented wealth. Countries not rich in gold and silver mines relied on exports through foreign trade with government control. Adam Smith, who developed the free trade theory, pointed out that governmental regulations on trade actually reduced the wealth of nations. It prevented the nations from benefiting from a competitive cost advantage on purchases. With free trade, each nation could increase its wealth by exporting the goods it produced most cheaply and importing goods that were produced cheaper elsewhere. His theory was that each nation could specialize in the production and exportation of the goods over which it had an absolute advantage. This is the classical trade theory. The modern trade theory is mainly concerned with the analysis of the basis for trade and with accounting for differences in comparative advantage. The 20th century economists noted that the difference in the prices of final goods tend to reflect - not the differences in the productivity of resources, and unequal distribution of technologies and labor among nations like was thought under the classic theory - but rather the differences in the prices and availability of productive resources. They reasoned that countries specialize in the production and exportation of goods requiring large amounts of resources that they naturally possess, and import goods requiring large amounts of resources that are scarce. Although most countries officially favor free trade, few countries have ever actually adopted a free trade policy. ****Discuss Free Trade****International trade policies and NAFTA *** Some countries export only to expand their domestic market or to aid the depressed areas within their economy. Other countries depend on trade for a large portion of their national income. But trade in an international economy is essential for growth. Since 1960, trade has grown fifteen-fold, world economic protection has quadrupled; and the world per capita income has more than doubled. Trade helps nations grow and allows families throughout the world to live better lives. 2006-08-09T12:18:18-04:00 http://75.150.148.189/free-essay/Why-Nations-Trade--31185.aspx Myths, Motivations & the Future of Non-Profits Recent trends appear to be supportive of a greater role for nonprofit organizations. Indeed, we see the continuing increase, expansion and strengthening of nonprofits in the decade ahead. However, their long-term financial viability will remain in question unless they undergo radical transformation in how they operate in today's new public and private economies. Eight trends in particular lead us to this conclusion: 1. Nonprofits are taking on more "public" responsibilities as governments continue to downsize and divest themselves of certain social welfare and community development functions. The watershed congressional elections of November 1994 signaled a significant shift in how government would do business in the future. Numerous programs which used to receive generous federal, state and local government support -- from education and social welfare to museums, libraries and public radio and television -- have experienced major cuts in their annual government-supported budgets. Nonprofits that depended on government grants for a large portion of their funding have had to find alternative private funding sources due to government cutbacks on grants. As a result, more and more of these organizations have had to both "reinvent" and "realign" themselves in order to survive and prosper. Much of this reinvention and realignment will take the form of new "partnerships" with corporations, citizen groups and other nonprofits. Successful nonprofits must conduct very aggressive public relations, fundraising and sponsorship campaigns, which will require the hiring of more talented personnel skilled in these organizational development and marketing functions. As governments continue to downsize and divest themselves of traditional social welfare functions, more and more nonprofit organizations, especially charities, will play an increasingly important role in providing welfare assistance. Functioning as new and expanded service delivery organizations, they will increase their professional staffs to provide such services as well as secure increased funding through government contracts and grants. In the international arena, NGOs (non-governmental organizations) will play a more important role in international development and relief efforts as the U.S. Agency for International Development and the UN undergo further budget cuts. 2. Funding activities continue to increase despite occasional recessions and scandals. Americans continue to support and use nonprofits at unprecedented levels, especially during boom economic times. They view nonprofits as more responsive and accountable than government bureaucracies. Since many nonprofits are community-based, they also seem to be more democratic and participatory than government. As the federal government continues to divest 2006-08-08T09:38:41-04:00 http://75.150.148.189/free-essay/Myths-Motivations-and-the-Future-of-Non-Profit-Organizations-31162.aspx The Impact of NAFTA on American Business Interests The North American Free Trade Agreement (NFTA) is an import/export agreement between the governments of the United States of America, the United Mexican States and Canada designed to “remove most barriers to trade and investment” among nation [http://www.fas.usda.gov/itp/policy/nafta/nafte.html, July, 2001]. The agreement was implemented on January 1, 1994 effectively eliminating all non-tariff barriers to agricultural trade between the USA and Mexico. The foundational objectives of NAFTA include creating an expanded and secure market for the goods and services of each nation, improving working conditions and living standards in each nation, creating new employment opportunities, and enhancing basic worker rights [http://www.the-tech.mit.edu/Bulletins/Nafta/00.preamble, January 1994]. After seven years of operating under the guidelines of NAFTA, there are mixed reports relative to its success within the United States economy and the American business environment. The United States government tends to praise the success of NAFTA while American working people typically believe “NAFTA has thus far largely failed” and in fact has had a negative impact on many businesses [http://www.epinet.org/briefingpapers/nafta01, April, 2001]. The United States Government’s Claim for Success According to the United States Department of Agriculture (USDA) and the Foreign Agriculture Service (FAS), the markets created by the implementation of NAFTA have been “one of the brightest spots” for farmers, agricultural exporters and the industries that support them, claiming that more than 25% of all agriculture exports are purchased by NAFTA nations [http://www.fas.usda.gov/itp/policy/nafta/nafta_backgrounder.htm, July, 2001]. Since the implementation of NAFTA, agricultural trade between the US and Mexico has increased by 55% accounting for more than 11.5 million dollars if business. The agricultural trade between Canada and the US also recorded increases of nearly 50% and more the 13 billion dollars of revenue. Opponents of NAFTA point to the increased US import activities as a serious downfall of NAFTA’s original promise of creating an expanded and secure market for the goods and services of each nations. The government argues that NAFTA merely an assures of a free market society which has always been a foundational element of capitalism and a pillar of American business success. The government also argues that many of the “expanded” US exports opportunities would have been lost without NAFTA. In addition, the government indicates that increased import competition should be expected and in fact will have a positive effect on the US economy. As trade barriers are eliminated, trading becomes subject to open 2006-08-07T17:43:25-04:00 http://75.150.148.189/free-essay/The-Impact-of-NAFTA-on-American-Business-Interests-31144.aspx Robbing American Taxpayers through Big Business For most Americans the term welfare is associated with any number of negative images: laziness, illegitimacy, family breakup, irresponsibility, and wasted tax dollars. We hear "welfare" and our minds conjure up a young unwed mother of two or three infants, huddled in front of a TV set in a public housing tenement and living at taxpayer expense on monthly Aid to Families with Dependent Children (AFDC) checks and food stamps. We react negatively because too often these checks subsidize bad behavior and encourage dependency rather than self-responsibility. The American Heritage dictionary defines welfare as "receiving regular assistance from the government or a private agency because of need." What is surprising about our modern-day welfare state is just who it is that Congress really believes to be "in need." Some of the most subsidized recipients of public assistance are not welfare queens housed in public tenement apartments. They are not even poor or ailing at all. Far from it. America's most costly welfare recipients today are Fortune 500 companies. In 1997 the Fortune 500 corporations recorded best-ever earnings of $325 billion, yet incredibly Uncle Sam doled out nearly $100 billion in taxpayer subsidies.1 These welfare payments come in every conceivable shape and size: government grants, sweetheart business deals arranged by the Commerce Department, cut-rate insurance, low-interest loans, a protective wall against foreign competition, exclusive government contracts, and a mind-boggling maze of special interest loopholes in the tax code. Table 1 lists the 1997 appropriations for fifty-five of the most unjustified federal business subsidy spending programs as compiled by the Cato Institute. Their combined price tag came to $38 billion in 1997. All but a small handful of America's wealthiest corporations have participated in the hunt for federal or state government subsidies. Most of these companies are double-, triple-, and quadruple-dipping. In 1996 General Electric won fifteen grants for $20.1 million. Rockwell International received thirty-nine grants for $25.4 million. Westinghouse Electric received fourteen grants for $26.1 million. Yet each of these companies had profits of at least half a billion dollars in 1996. Corporate welfare has all the systemic debilitating effects, including dependency and self-destructive behavior, that characterized the troubled legacy of the Great Society social welfare agencies. Just as the social welfare state became a pernicious, self-perpetuating industry inside Washington, so it is today with the corporate welfare state. For example, Representative Dick Armey has shown 2006-08-07T13:18:41-04:00 http://75.150.148.189/free-essay/Robbing-American-Taxpayers-through-Big-Business-31130.aspx Ideas on Child Labor Morality Most people take for granted that childhood should be a carefree time of life devoted to learning and play. Childhood is a time to play, to learn, to grow; a time when all children should have the chance to develop their potential an enjoy bright plans for their future. However, in India childhood is a lost dream for more than 50 million children. Children are forced to work long hours for a little or no compensation. The economic exploitation of child labor is an insult to humanity. All over the world children continue to work, putting at stake their education, their health, their mental 2006-08-07T13:15:33-04:00 http://75.150.148.189/free-essay/Ideas-on-Child-Labor-Morality-31129.aspx Which Works Better - Regulation Or Supervision? The globalization of financial markets, the dramatic increase in trade and capital flows in the world has deepened economic and financial integration among all countries, and it creates a more complex financial environment, with a greater diversity of capital flows, creditors and borrowers. This process of globalization creates new opportunities but also challenges the international community, especially with regard to the international monetary and financial system. Comprehensive and effective financial regulation, market-reinforced prudential supervision and enhanced international cooperation among regulators are among the keystones for maintaining stability of the international financial and monetary system. Financial regulation has traditionally proceeded through the route of setting standards and of externally imposing rules. Setting standards, however, is only the first step in accomplishing effective regulation. The hardest part is designing a structure of incentives and sanctions that will induce financial intermediaries to live up to agreed standards of behavior. Regulation that is too tough can stifle innovation, and overprotection can lead to the loss of management accountability. Therefore, regulation should primarily make the market work. Importantly, an empirical relationship is established confirming that overall financial legal scope and effectiveness do have significant explanatory power for the size of financial markets. Again, economic considerations play a great role in the new regulatory framework. Explicit cost-benefit analysis leads towards evidence-based policymaking. The persistence and strengthening of competition in a functioning market is essential. Financial safety nets are generally supported by prudential regulations that require banks to hold enough capital to absorb losses and by reporting and accounting standards and best business practices that ensure that losses are reflected in profit and loss statements. Although this approach has worked reasonably well in limiting systemic damage from financial excesses, it may lead to conflicts between the objectives of regulators, who, by providing insurance, want to reduce systemic risks, and those of the regulated institutions, which have incentives to take greater risks within internal and regulatory capital constraints. There are dangers both in excessively restrictive regulations, which may inhibit efficiency-enhancing risk taking, and in lax enforcement, which might encourage financial institutions to take risks that would not be worth taking in a different environment. There is no definitive solution to this problem, and it is neither possible nor desirable for financial supervisors and regulators to know as much about a financial institution and its risk-taking activities as its own management. Nevertheless, they must 2006-08-07T08:19:27-04:00 http://75.150.148.189/free-essay/Anaylsis-on-Regulation-Vs-Supervision-31108.aspx Socio-Economic Change After World War I Many social, political and economic problems plagued the world at the end of World War I, leading people to search for alternative solutions. Coincidently as the war ended, Fascism was introduced to the masses. Fascism was everything the people looked for and wanted. It placed an emphasis on the nation as the “center and regulator for all history and life, and on the indisputable authority of the leader behind whom the people were expected to form an unbreakable unity.” (Britannica.com, 2.10.01) Before delving into the complication known as Fascism, we must look at the events that led up to its outbreak and instant popularity. Edmund Burke once stated, “Social change is inevitable and desirable.” He was never more correct in his evaluation. At the start of the Twentieth Century, massive changes began to occur around the world. People were not satisfied with the stagnant nature of their lives, and change began to occur. What was initially a world consisting of Imperials and Empires slowly began to break up and fall apart. The Industrial Revolution brought about so much change that it became impossible to slow it down and prevent the inevitable. Inanimate objects began to take the place of human power, new products replaced old products in terms of production, and rapid development of cities led to urbanization. New class systems developed, leading to tension between people. The Bourgeoisie began to prosper as the employer while the Proletariat earned low wages as employees who were forced to move into the cities to earn a living as agriculture and farming no longer yielded the income it had once before. As urbanization increased, so did the population and the dissension among the people. Factory work became more prominent as the industrial revolution continued as with the newfound resources of iron and steel that led to new inventions such as the steam engine and the need for railroads and ships. The more these opportunities arose, the closer the empires came to collapsing. Ancient Empires could not compete with the new Western empires that began to emerge in the late nineteenth century. The new empires were technologically advanced with stable economies and manufacturing systems as a result of the Industrial Revolution. In accordance to the Industrial Revolution, new transportation 2006-08-07T08:11:43-04:00 http://75.150.148.189/free-essay/Socio-Economic-Change-After-World-War-I-31104.aspx Socio-Economic Change After World War I Many social, political and economic problems plagued the world at the end of World War I, leading people to search for alternative solutions. Coincidentally as the war ended, Fascism was introduced to the masses. Fascism was everything the people looked for and wanted. It placed an emphasis on the nation as the “center and regulator for all history and life, and on the indisputable authority of the leader behind whom the people were expected to form an unbreakable unity.” (Britannica.com, 2.10.01) Before delving into the complication known as Fascism, we must look at the events that led up to its outbreak and instant popularity. Edmund Burke once stated, “Social change is inevitable and desirable.” He was never more correct in his evaluation. At the start of the Twentieth Century, massive changes began to occur around the world. People were not satisfied with the stagnant nature of their lives, and change began to occur. What was initially a world consisting of Imperials and Empires slowly began to break up and fall apart. The Industrial Revolution brought about so much change that it became impossible to slow it down and prevent the inevitable. Inanimate objects began to take the place of human power, new products replaced old products in terms of production, and rapid development of cities led to urbanization. New class systems developed, leading to tension between people. The Bourgeoisie began to prosper as the employer while the Proletariat earned low wages as employees who were forced to move into the cities to earn a living as agriculture and farming no longer yielded the income it had once before. As urbanization increased, so did the population and the dissension among the people. Factory work became more prominent as the industrial revolution continued as with the newfound resources of iron and steel that led to new inventions such as the steam engine and the need for railroads and ships. The more these opportunities arose, the closer the empires came to collapsing. Ancient Empires could not compete with the new Western empires that began to emerge in the late nineteenth century. The new empires were technologically advanced with stable economies and manufacturing systems as a result of the Industrial Revolution. In accordance to the Industrial Revolution, new transportation 2006-08-07T08:10:12-04:00 http://75.150.148.189/free-essay/Socio-Economic-Change-After-World-War-I-31103.aspx Modern Imperialism The U.S. control of Central America has meant the exclusion from these markets of Japanese goods. As well as supplying cheap labour to the U.S. bosses the Central American countries rely on the U.S. for almost all of their exports and imports. In the U.S. itself the Japanese are allowed access to no more than 33% of the car market. A consensus has been created throughout U.S. society which identifies the Japanese as the cause behind the U.S. recession. This has included some of America's unions and liberal Democrats like Jessie Jackson. One consequence has been a rising number of physical attacks on Asians in general. The economic war between the U.S. and Japan has already warmed up. For American bosses it means bigger profits as they convince American workers that it is the Japanese rather then capitalism that are responsible for unemployment. Alliances between bosses and workers against another country mean little or no effective class struggle at home. This in turn means low wage rises and crap working conditions. The U.S. is one of the few countries where workers saw a real reduction in wages in the 1980's. It is this sort of prejudice that European bosses hope to build on through the E.C. Most European countries have already seen it on a national level. In Ireland a milder version is currently being pushed through the Buy Irish ad's. Our interests as workers lie with the workers of other countries, not our gombeen green bosses. The effects of imperialism on different countries varies, for many of the underdeveloped countries it means that their exports are permanently underpriced and their imports overpriced as they have no control over access to international markets. It means an enormous burden of dept to the imperialist countries in return for outdated or inappropriate technology and military equipment. It means a government whose sole role is to ensure the country stays profitable for the imperialists with low wages, tame or non-existant unions and few safety laws. It commonly means famine and death as proxy wars are fought between imperialist powers there. IMPERIALISM KILLS Imperialism's casualties in the last decade have included 100,000 Iraqi's, more as a show of force then anything else, 3 million Ethiopians in a country which exported food throughout the famine, 50,000 Nicaraguans in an effort to topple a government less disposed to American interests. Were it not for the death 2006-08-07T07:58:23-04:00 http://75.150.148.189/free-essay/Modern-Imperialism--31095.aspx Economic Implications of Arctic Oil Drilling For more than a decade, debate over drilling for oil on the Coastal Plain of the Arctic National Wildlife Refuge [ANWR] has continued unabated." This is the opening line of the introduction to the commonly encountered ethical paradox of economic interests versus moral interests. This paradox is steadfastly centered through the debate of oil drilling on the Coastal plain of the Arctic National Wildlife Refuge. The debate is considered and argued by diverse and infinitely intertwined societal organizations. The foremost of these organizations include the United States Federal Government, the government of the state of Alaska, various environmental groups, and the native populations of the region. Each of these groups have deep seeded motivations and internalized philosophies underlying specific positional tendencies, influences, and arguments. In considering this especially pervasive debate, it is these individual and group nuances that are most beneficial and revealing in philosophical exploration necessary for obtaining an informed, profound argument for a conclusive and convincing position within this continuingly discussion. In considering the motivational philosophies of what can be considered the foremost groups or individuals involved in the discussion, it is useful to separate the arguments into two somewhat obvious partitions: those in support of oil drilling, and those against it. The chief argument in support of the drilling for oil seems to be promise of economic prosperity in the form of reduced foreign dependency, a significantly boosted United States Gross National Product, greatly improved nationwide employment, and widespread individual economic betterment in exchange for little negative environmental implication. The chief counter argument also seems to be in favor of similar economic prosperity. However, this counter argument recommends much more environmentally concerned means to obtain the same economic goals in the form of suggestions towards improving fuel efficiency and pursuing other economically profitable means of reducing the overall need for such environmentally harmful activities in the first place. The statistics in support and against both sides of this debate can be quite overwhelming if one chooses to consolidate, compare, and contrast the numbers in order to determine some sort of conclusion. Those in support of the oil drilling can tell you all about the possible number of oil barrels with potential for recovery. Furthermore, these supporters can relate those numbers to personal financial numbers, regional financial numbers, national financial numbers, and exponential 2006-08-06T20:57:57-04:00 http://75.150.148.189/free-essay/Economic-Implications-of-Arctic-Oil-Drilling-31081.aspx Nafta's Affect On Canadian Economy The purpose of this paper is to explore why NAFTA makes it easier than ever before for the U.S government and large American corporations to exploit the Canadian economy, its citizens, and its natural resources. This is the case even though the economic situation in Canada is presently more robust than the U.S economy. The U.S is using up Canada’s natural resources and Canadians must let the government know how most of the population feels. NAFTA, which was implemented Jan 1, 1994, has become more of a burden to the Canadian economy and citizens than previously thought. Clearly, from the statistics described further on in this paper, many Canadians are experiencing negative emotions towards the so-called “free trade” agreement, which is ending rules to protect the public and our natural resources. This is a realistic, yet tragic example of the accumulation of profits of international corporations at the expense of the lives and livelihood of Canadian citizens. Deregulation means ending the rules that protect Canadian society from U.S economic domination. The NAFTA agreements are the cause of these deregulations and the loss of economic and environmental protections. Propriety of the environment has been a major part of Canadian social ethic for the past decade. For those who think it is possible to still protect the environment under NAFTA, ask the farmers or the logging industry who are having difficulty making ends meet. Canada has environmental agreements under NAFTA, which are of no benefit to farmers, particularly, within Saskatchewan, where upwards of 60% total exports to the U.S involve wheat. The U.S industry seems to be so absorbed in the “bottom line” and attraction to large investors, that they don’t care about the producers behind their profits. All NAFTA does is allow the U.S to attain Canadian goods at a very cheap price and then set tariffs on our softwood lumber and wholesale grain prices. The motivation appears to be one of greed. The United States government, operating under the Bush Administration, appears to give no thought to enhancing its relationship with Canada and statistics show that Canadians are not happy about it. In March 2001, the Canadian government contracted EKOS Research Associates Inc. to elicit responses from Canadians. Some of the results EKOS from these responses were rather alarming. EKOS interviewed 1200 Canadians and asked them some important questions regarding our economy. When asked if Canadians felt their 2006-08-05T18:02:30-04:00 http://75.150.148.189/free-essay/Nafta-s-Affect-On-Canadian-Economy-31053.aspx Inflation And the Australian Economy Inflation is one of the most important features of the Australian Economy. It is basically the measure of how much prices rise each year. The most common and widely acceptable unit for measuring inflation is the Consumer Price Index (CPI). During 2000-2002, there have been many factors contributing to inflation, especially in the March Quarter of 2002. Generally in most cases, governments try to maintain low inflation levels to stabilise the economy. Inflation is the loss in purchasing power of a currency unit such as the dollar, usually expressed as a general rise in the prices of goods and services. A classic example is the Great Inflation of the Roman Empire. Successive emperors replaced a steadily increasing fraction of the silver in their ancient currency, the denarius, with base metals like bronze or copper. As a result prices rose inexorably despite repeated attempts to restrain them through legislation. Diocletian, rather than taking responsibility for the debasement, attributed the rapid inflation of his day to the avarice of his subjects. His famous edict of AD 301 threatened with death any vendor who charged prices exceeding official limits. But inflation ran along unhindered for another century until an alternative currency, an undepreciated gold coin known to Shakespeare as the bezant, became the customary unit of account, spreading throughout Europe and lasting well into the Middle Ages. We have many measures of inflation, but none provides a truly reliable gauge of inflation at any specific time. The most widely watched measure is the consumer price index (CPI). Sub indexes are available for different cities and for many different classes of goods and services. One problem with the CPI is that the weight attached to each class of goods and services is held constant for years at a time. Therefore, when consumers lower their cost of living by buying more items whose relative price has fallen and fewer items whose relative price has risen, the CPI will not show a decline in the cost of living. Moreover, the difficult problem of allowing for changing quality has never been solved. Nor can the government inspectors who collect the data from retailers track down all the sales and discounts of which consumers are so keenly aware. As a result of these and other factors, the consumer price index reflects inflation trends only with a long delay and portrays an 2006-08-01T09:29:33-04:00 http://75.150.148.189/free-essay/Inflation-And-the-Australian-Economy-30914.aspx The "Glass Ceiling" in Modern Day Employment "On March 24, 1986, the Wall Street Journal coined a phrase that has come to symbolize a variety of barriers faced by thousands of women and minorities as they seek to improve their employment status..." This phrase is "glass ceiling." It has come to represent a variety of biases that prevent qualified minorities and women from advancing in the work-place particularly into mid-and senior-level management positions. We will look at some statistics on places where the glass ceiling has reared its head and also see what things as far as awareness and prevention have been done to stop this from occurring in the workforce. The U.S. Congress acknowledged the glass ceiling issue by enacting the Glass Ceiling Act on November 21, 1991. This act encourages employers to remove barriers to the advancement of women and minorities. It includes a mandate that focuses on studying how businesses fill management and decision making positions, trains and develops people for advancement into such positions. It also focuses on the compensation systems and reward structures currently used in the workplace. The Federal Glass Ceiling Commission’s report summarized the major barriers to women’s advancement in organizations. Included in its list was placement in "relatively dead-end staff jobs"; lack of mentoring, management training, and career development; and lack of job rotation and "critical development activities" opportunities. Despite the rapidly increasing rates of female education and participation in the workforce worldwide, most women continue to suffer from occupational segregation in the workplace and rarely break through the "glass ceiling." Fewer than 5% of women occupy senior-level positions in major corporations, and only two women hold the position of chief executive officer in Fortune 1000 companies. The women who do land a management job tend to be clustered in certain activities to the point where certain functions are almost feminized. For example, in the US, the increase in women’s share of personnel and labour relations managers was higher than in other areas. It went from 21 percent in 1970 up to 58 per cent in 1991. The study notes that career paths in human resource management and administration are less likely to lead directly to the top than other strategic areas such as product development or corporate finance. Minorities and women were more likely to be placed in staff positions, such as human resources and public relations, than in 2006-07-31T15:34:18-04:00 http://75.150.148.189/free-essay/The-Glass-Ceiling-in-Modern-Day-Employment-30894.aspx Enivironmental Regulation and Basic Economic Freedoms “Do Environmental Regulations Violate Basic Economic Freedoms?” This is the question posed and debated by the authors of each position taken. Which issue is more prevalent – the progress of our financial economy through business ownership or the protection of our natural environment by the dictation of regulations in which Americans must abide by? Can both viewpoints exist symbiotically? Does government intervention, in an effort to preserve our ecosystem, negatively affect business owners? It would seem that at times, this is the case; however, businesses do not always conduct their affairs with consideration of the possible or probable implications their actions may pose on the environment. As a whole, Americans understand the environmental issues that surround us on a basic level. However, do we understand the underlying, fundamental causes that contribute to the more obvious issues that we are presented with? The often negligent or misdirected acts that are committed by businesses and the public would suggest this is not the case. Furthermore, the American naiveté is perpetuated by the onslaught of attacks and inaccurate information that is released concerning our nation’s environmental state of health. John Shanahan, a former VP and counsel for The Alexis de Tocqueville Institution in Arlington, Virginia represents the position that environmental regulations stifle American economic autonomy. The Tocqueville Institution’s mission statement declares, “Our principles guide the selection of which issues are critical to the advancement of freedom – but we don’t rush to judgment about which means will be most effective in producing it” (Internet). A respectable statement in principle; however, after reading Shanahan’s argument, it is obvious that his position is biased. Shanahan concurs with the assertion that environmental dilemmas are present in our nation, but does not feel that we should express any sense of urgency in rectifying our situation. My interpretation of this is that one should not acknowledge a detrimental issue’s presence, yet at the same time, deny the need for preventative measures to be taken. Shanahan seems to maintain a neutral position with the statement, “The challenge is how to achieve both a strong economy and a healthy environment…what Americans really want is a high quality of life.” However, his argument leads us in a different direction. Paul 2006-07-27T08:01:37-04:00 http://75.150.148.189/free-essay/Enivironmental-Regulation-and-Basic-Economic-Freedoms-30692.aspx The Growth of Labor Unions The growth of labor unions around the world have provided a more secure work environment for many workers. This was not always the case. Still today many workers are not receiving the proper payment or working conditions. Labor Union is an association of workers that seeks to improve the economic and social well being of its members through group action. A labor union represents its member negotiations with an employer over all aspects of an employment contract, including wages and working conditions. By giving workers a united voice, a union can try to negotiate higher wages, shorter hours, and better benefits. Benefits such as insurance and retirement plans. When an employer and union cannot reach a mutual decisions through a bargaining the union may conduct a strike. A strike is an organized work stoppage. In many countries, labor unions have official affiliations with political partie and seek to bring about social change through legislative and political action. The United States has a tradition of so called business unionism, In which the main goal of the labor union is to improve wages and working conditions. Unions in the United States often engage in political activities. These political activities include lobbying for legislation that furthers the aims of the labor movement and providing financial support candidate that are friendly to union causes. The first association of workers, merchant associations and craft associations, formed during the Middle Ages in Europe. Merchant associations, which arose in the 11th century consisted of the merchants and traders in a city who banded together. Craft associations, first formed in the 12th century, that included people who were engaged in particular craft, ad they gradually deprived merchant associations of their power. In time the members of the crafts unions organized their own associations to seek higher wages and improved working conditions. These associations are considered the forerunners of labor unions because of their emphasis on wages and the working conditions. The earliest actual “labor unions” arose in Western Europe and the United States at the end of the 18th century and the beginning of the 19th century. They were formed be skilled crafts workers in reaction to the rapid changes in the economic environment brought about by industrialization. The concentration of work in large factories left workers increasingly dependent upon their employers. The early labor 2006-07-25T12:45:32-04:00 http://75.150.148.189/free-essay/The-Growth-of-Labor-Unions--30631.aspx Study and Analysis of Thailand's Developing Economy The economy of Thailand, until recently, has been the model of progress and growth in southeast Asia. At present, the Thai economy is slowly recovering from the recent regional downturn. However, much of Thailand’s economic trouble could have been avoided. The problems encountered will be outlined in order to provide a model of what not to do in a similar situation. Thailand’s recent history has been one continuos trend of GDP growth. In the 1950’s, the Thai economy managed to grow at an average rate of approximately 5% per year. By the mid 1960’s, the average annual rate of output growth had increased to 8.4%. Due to the sharply increasing petroleum prices in the 1970’s, Thailand’s growth slowed temporarily, in part due to heavy dependency on oil as a fuel source. By the late 70’s, aggregate output in Thailand had increased to the point that average growth per year was near 7% (Muscat, 2-3). It must be noted, nonetheless, that some of this amazing economic growth was due to U.S. subsidies, given to help Thailand combat the illegal narcotics trade (Muscat, 251). In the 1980’s, Thailand saw continued expansion of its output, but this is largely due to the sectoral shifts taking place in the Thai economy. Historically, Thailand has depended on the export of primary goods such as rice, natural rubber, corn and sugar. In the late 70’s and early 80’s, industry (particularly textiles) had begun to significantly contribute to aggregate output, as had tourism (Muscat, 3&191). The export of staple crops has enjoyed protection of the government in that Thai regulations ensure that domestic demand for these items has been met before any exports can be made (http://www.eximworld.com/ti-bcc/ibp/eft/eft_iecl.htm) The real trouble for Thailand began in the late 1980’s and early 1990’s. While the government had always followed stringent guidelines regarding debt structure for the public sector, the private sector was under no such obligation. Hungry for foreign funds to finance the acquisition of capital goods with which to enhance production, private firms increased borrowing at a rapid rate. This was, in part, made possible by the inception of the Bangkok International Banking Facility, which made transactions in foreign currency accounts much easier. In 1990, net capital inflow to Thailand was 8% of GDP and 2006-07-23T19:43:34-04:00 http://75.150.148.189/free-essay/Study-and-Analysis-of-Thailand-s-Developing-Economy-30553.aspx Can Economics Really be Considered a Science? This is a question that has been debated for decades. Why do we describe economics as a ‘science’ when it is the study of human behavior, why not class it within the arts or humanities? Economists argue that they analyze problems such as developing human behavior theories and test them against the facts using a scientific approach. Economics studies the three basic problems of daily living, what goods and services to produce, how to produce them, and who to produce them for. The subject matter of economics is human behavior in the production, exchange and use of goods and services. Societies central economic problem is how to reconcile the conflict between people’s virtually limitless desire for goods and services and the scarcity of resources with which these goods and services can be produced. When the questions what, how, and for whom to produce are answered, economic explains how scarce resources are allocated between competing claims on their use. There are a wide variety of tools that economists use to answer the above questions. The two that are mainly used to analyze economic issues are models and data. A model or theory makes a series of simplifying assumptions from which it deduces how people will behave. Models are frameworks for organizing the way we think about a problem. They concentrate on the essentials and therefore, by cutting out some details of the real world they simplify it. From this, economists can develop an analysis of how the economy works. Data are pieces of evidence about economic behavior. The data or facts interact with the models to help quantify the relationships to which our theoretical models draw attention. Secondly, the data helps to test the models. Economists much check that their models match the facts, just like any careful scientist. These two methods are carried out using a scientific approach, just as a biologist would use models and data to represent how the human body works. Critics argue that people are human beings and you cannot reduce their actions to scientific law. Physicists accept that molecules behave randomly but that it is possible to construct and test theories based on average of systematic behavior. Economists take the same view about people. Actions are never explained based on whim, random differences in behavior tend to cancel out on average if behavior does not show any recurring tendencies 2006-07-22T13:32:11-04:00 http://75.150.148.189/free-essay/Can-Economics-Really-be-Considered-a-Science-30462.aspx Efficiency of Perfectly Competitive Economies When we talk about perfect competition we mean a market structure that leave firms in a unique brand of competition. In fact a firm does not actually compete under perfect competition, it reacts to the market conditions, taking price and other market factors as beyond its control. A market is a perfect competition if it meets four basic criteria. The product of all sellers must be identical. All participants in the market, buyers, sellers, must be small relative to the entire market. As a result there should be many firms and buyers in the market. There are no barriers to entry or exit to the market. Firms can enter and leave as they wish. Fourthly market participants have perfect knowledge of and access to technology and prices. When a firm fulfils these criteria it can then be categorised as a price taker. Those firms who are unconcerned about there competitors, because there is nothing they can do to influence there own behaviour, that of their rivals or the final market outcome. As shown in Fig 1 the price takers demand curve is perfectly horizontal. At the market price Pm the firm can sell as much as it wants of a specific product. The firm has no incentive to lower prices as it can sell all it wants at the market price. Furthermore the firm as no ability to raise price as potential customers would buy the same product elsewhere. The firm there for has no alternative but to sell at Pm , at which it face an infinite price elasticity of demand. The question asks what will happen in the long run when price exceeds short run average cost. We must first determine the objective of the firm, - profit maximisation. Any typical firm will set production where marginal revenue equals marginal cost. A perfectly competitive firm however, taking into account the relationship between marginal revenue and price will achieve profit maximisation by setting output where marginal cost equals price. The profit maximising firm in perfect competition will produce where P=MC We can see the firms production condition by showing marginal cost, average cost and variable costs curves on the firms demand curve. As depicted in Figure 2. The figure uses short run cost curves as production decisions occur in the short term. It is important to realise that firms adjust differently 2006-07-18T13:20:11-04:00 http://75.150.148.189/free-essay/Efficiency-of-Perfectly-Competitive-Economies-30363.aspx Modern Economic History of Sweden Sweden is one of the northernmost countries in the world, lying farthest from the equator with the Arctic Circle crossing its northern regions. With a total area of roughly 450,000 square kilometers, Sweden is one of the largest countries in Western Europe. Its population density is relatively low; however, it had a population of just over 8.8 million in 1998. Sweden is a constitutional monarchy, traditionally neutral, since early 19th century. Norway, formerly united with Sweden, became independent in 1905. Sweden adopted parliamentary government in 1921. Since World War II, Sweden has experienced a long period of economic progress based in the development of its resources (iron ore, timber, and hydroelectric energy) with major reliance on a market economy and participation in foreign trade. Sweden has a mixed economy in which private and state-owned enterprises exist side by side. This “Swedish model”, a concept that came about in the late 1930s, refers to the way Sweden fostered prosperity by avoiding the pitfalls of both communism and capitalism. Since 1932, Sweden’s socialist government has steered “the middle way” by allowing the private and public sectors to develop together. This was very successful for many years. An essential factor was the cooperation of the three main players in the economy: government, labor, and business. Unlike other socialist nations, Sweden’s government did not nationalize important industries. The public sector provides essential services, such as telecommunications, postal service, and energy. It is also responsible for health care, education, and social welfare. Swedish economy has changed during the periods of 1960s, 1970s 1980s, 1990s and recently. This topic will emphasize that most economies of Sweden experienced difficulty during these times. 1960s During the 1960s, the growth of the real GDP in Sweden was 5.3 percent per annum, among the highest growth rates in Europe. At the late 1960s, the Social Democracy began to advocate an event greater emphasis on equality, industrial democracy, and social control of investment. The social justice ideal, for which the slogan Jamlikhet appeared in the late 1960’s contains the belief that: “All individual have an equal right to a rich and evolving life…(meaning)… security, freedom, happiness, the right to cultural opportunities, employment, and influence in the community. This (means) an approach to equalization of income. (It calls for reforms) directed against the privileged for the advantage of the underprivileged and the bettering of their conditions 2006-07-18T13:16:10-04:00 http://75.150.148.189/free-essay/Modern-Economic-History-of-Sweden-30361.aspx Implications of Canada's Mixed Economy Although the trend followed by most nations nowadays tend to favor mixed economies, the question about planning versus free market still resurfaces every now and then. Throughout history, people have established different types of economic systems that best represent the cultural and social values of the society as a whole. By definition, an effective economic system is believed to be the kind of system that will meet the entire society’s needs and wants. It is also the system that will solve many of the nation’s economic problems. In Canada, years after the free trade agreement with United States and Mexico has been signed, non-conformists and naysayers continue to question the effectiveness and ramifications of the agreement. Whether a more socialist society or a more capitalist point of view leads Canada to economic prosperity, the question whether these systems corresponds to the expected function of an effective economic system lies uncertain considering the fact that economists argue that it is still too early to make accurate economic analysis of Canada’s economic system. However, judging from Canada’s present economic condition, it could be proven that Canada is better off having a mixed economy rather than being either one of the two systems. In fact, looking at the key characteristics of both systems can substantiate this advantage for Canada. As generally known, planning is a key characteristic of a socialist system. Government planning is the principal concept believed by followers of socialism. In a socialist economy, the government regulates most of trade and businesses. This means that government ownership is widespread and that an individual has little to say about the direction of the economy. Socialists also believed that there should be no extremes or inequalities of wealth or poverty and of power and influence. They are confident that through government planning, these extremes in social status could be minimized. They wanted the government to make economic decisions and also to control the basic resources of the country. They also argued that poverty was brought about by capitalism by allowing wealthy individuals to dominate much of the resources making it possible for them to become more prosperous than the other members of the society. In socialist societies, the government owns most of the services such as transportation, airlines, telephone services and others. The government also provides education, health care and public housing. Although they own major industries, some private 2006-07-18T13:10:11-04:00 http://75.150.148.189/free-essay/Implications-of-Canada-s-Mixed-Economy-30357.aspx Prospects of a Jobless Future This article describes what jobs means to the economy and the society. The article explains how the jobs influence the economy and the society and how people lose their jobs to technology driven jobs. The article states that technology provides satisfying jobs for only a few people. It describes how blue-collar workers lose their jobs because of automation, the people who lose their jobs to the technology they developed. Also what Aronowitz said “But there’s no way we can see that other sectors will open up and produce an equal number of jobs compared to those being destroyed.” The flaw I found in this article was the elimination of support staff in universities. Professors have teaching assistants who help them with teaching. Also the fact about technology taking over the jobs of people who 2006-07-17T23:03:49-04:00 http://75.150.148.189/free-essay/Prospects-of-a-Jobless-Future-30329.aspx Analysis of Democratic Capitalism Throughout generations many philosophers have argued about how much the government should be involved in an economy. Countries such as USA, which is extremely capitalist have a huge number of homeless people. Countries such as USSR, which is on the left wing and being a communist country, people has lost the incentive to work bringing the economy down. Countries such as Sweden which is a democratic socialist and in the centre of the economic spectrum, requires a substantial amount to maintain its economy. A government should use Keynesian ideas that way money could be made and people could be looked after. It is true that 2006-07-17T13:16:05-04:00 http://75.150.148.189/free-essay/Analysis-of-Democratic-Capitalism-30298.aspx Personal Economic Sacrafice to Better our Environment Humans live in the midst of an ecological community. Although living in cities has caused many of us loose touch with the land and the other species that inhabit it, our actions still effect the environment, thus we should still consider ourselves a part of this community. Just as humans have a set of rules of how to act within their own human community and social sphere so should they have a set of rules on how to behave within the larger ecological community. Rules for our own society are based on morality, concepts of right and wrong, and behaviors that help maintain the safety of individuals living within the society. For the same reasons we should have rules on how to behave within our ecological sphere. It is important to preserve our safety in this sphere, to keep pollution that causes health risks to minimum, and to make sure we our living sustainably by not over using our vital resources. We also have an ethical obligation to the species with which we share our planet. They have the right to exist on this planet. That our sense of justice does not extend to them, that we do not recognize they have rights and that there are moral ways to treat them, proves that we are so focused on our own species, we do not realize we live in a larger community that we should respect. Our sense of justice should expand to include this larger community. I am not suggesting they be included in our judicial courts as member of our societies, for obviously we live in different societies. But we do live in the same community, and there should be rules that enforce just behavior towards that community and punishments for defecting from these rules. Just behavior towards them means protection of the community and its stability. The other species of this planet are immensely valuable to us and we should work to conserve them and their habitats. Conservation will never be truly be sucessful unless we realize the economic value of other species and the services they provide as well as realize that their value goes deeper then economics. Our economy relies on natural capital. Natural capital is all the resources of this earth. These include not only the obvious physical resources such as minerals, soil, water, but also the living 2006-07-13T19:16:08-04:00 http://75.150.148.189/free-essay/Personal-Economic-Sacrafice-to-Better-our-Environment-30240.aspx Economic Thought of Karl Marx Karl Marx was born in Frier, Germany, in 1818. Karl Marx is the person who created the idea of Communism. He did many things to help Communism during his life. To start it off, in January 1846, he set up a Communist Correspondence Committee to link together all of the socialist leaders that were living in 2006-07-10T18:24:34-04:00 http://75.150.148.189/free-essay/Economic-Thought-of-Karl-Marx-30195.aspx Privitization Jeopordizing Canadian Health Care Public health care, the crown jewel of social programs, has worked extremely well for Canadians. Yet today, Ontario is witnessing piecemeal privatization in health care. The introduction of private-sector business strategies and management ideologies into the public health care system, the restructuring and rationing of publicly delivered services and the cost shifting from the public purse to the individual households has Ontario’s health care system in jeopardy. The cost shifting of health care from the public purse to the individual is a threat to Ontario’s Health Care. It defeats Ontario’s initial design in health care. The Canadian federal government agreed to provide additional financing to the provinces to handle the health care system. Critics question whether the infusion of another $4 billion per year into health care is really what the system needs, however. Not all problems with the system result from inadequate or reduced funding. Policymakers, the Harris government, should determine whether all types of care should be covered regardless of their nature, or whether Ontario citizens should expect a basic level of services. Experts recommend some type of tax-assisted savings plan to help Ontario save for future health care cost increases. Also, government spending continues to soar and the Harris government intends to change the health care message, to pave the way for more privatization and a two-tier system. The citizens of Ontario should not be anxiety about saving for future health care costs. If the Provincial government were able to handle and plan Health Care, after the adequate Federal funding, in Ontario current problems would have never come about. The restructuring and rationing of publicly delivered services has also diminished the Health care system. Recently, many hospitals have been closed down, and emergency rooms, now more than ever, are over-crowded and unproductive. This downsizing of Health care workers is also directly linked to the overspending of the Harris government. The study done by the CCPA outlines the massive costs of the Harris government's mismanagement of the health care system. Evidence in the report shows the massive sums of money spent on severance packages and termination pay to help shed 25,000 health care workers in Ontario. These job cuts could have been avoided if the Harris government had a virtuous plan to benefit the citizens it governed. A 2006-07-10T18:03:10-04:00 http://75.150.148.189/free-essay/Privitization-Jeopordizing-Canadian-Health-Care-30185.aspx Can Old Family Structures Meet New Economic Challenges In order for African-Americans to be structurally empowered to meet the challenges of the 21st century, one’s family must be properly set in such a way that their education, economic, and socialization combined will guide them in the direction of success, not only physically and mentally, but also spiritually. Envision with me for a moment, a family with God as head of the household, then the father, mother, and children. The father and mother both have earned a degree from a University and have well paying jobs. The children are encouraged to stay in school so they too one day will be successful. Following the leadership of the Holy Spirit they attend church every Sunday and practice living by the laws of God and the land. The parents do not influence their children with drugs or alcohol, but rather instill morals and values for them to live a healthy life. This ideal family may be viewed as being structurally equipped with the tools to prosper mentally, physically, and spiritually in the 21st century. On the other hand, let us take a look at a family headed by a single mother with no college education and living on welfare. She too tries to keep her children in line and train them up in the way they should go. Is this family also empowered to meet the challenges of the 21st century? Some African-American families are prepared, but on the contrary many are not. Many African-American households lack a father or father figure in the home and have no set rules or standards to follow. Although some households have fathers they may not be good role models. They may often influence their children by drinking, smoking, using drugs, and being abusive to the mother. According to the Journal of Negro Education there are high rates of dysfunctional and pathological behavior found among black men. A recent study done by the Sentencing Project on Criminal Injustice proved that sixty-two percent of young black men are doing time in jail. Many of them have children, but this is a negative example for the child, therefore, the father cannot teach them the right path to follow. When the mother heads the household she must go to work, cook, clean, and struggle to instill 2006-07-09T14:42:56-04:00 http://75.150.148.189/free-essay/Can-Old-Family-Structures-Meet-New-Economic-Challenges-30134.aspx The Effects of Placing Rent Controls in Toronto In a just society, the ruling authority must decide what is right when allocating wealth to its individual citizens. The same ruling authority does this by intervening with the inner workings of a marketplace to uphold its fundamental values and ideals. The aim of government intervention is to create a just society that will reflect the people’s values. Governing bodies do this by establishing laws that enforce fairness or ‘equity’. The Ontario government passed the Rent Control Act in 1975. The law levels the playing field between landlords and tenants. New units are exempt from controls for their first five years after which the controls are put into place. The controls put a ceiling on annual rent increases. Under current law, a landlord may only increase a tenants’ rent by 2% plus inflation.1 As with all other markets, the housing market is based on supply and demand. If the nature of the market were allowed to take its course, then the price of housing would become unaffordable for most citizens. An unfair situation would be created where power and money would be disproportionately appropriated to land owners. Rent control laws were established by previous governments to protect society and its people from inflated and uncontrollable housing costs. The Harris government now wants to repeal these laws. On June 25 the Minister of Housing, Al Leach, released a policy paper outlining the changes that are to be made to Ontario’s rent laws. Conservative legislators plan to pass the proposed ‘Tenant Protection Act’ in the fall. The omnibus legislation will rescind the Rent Control Act, the Landlord and Tenant Act, the Rental Housing Protection Act, Residents’ Rights Act, the Land Lease Statute Amendment Act, the Vital Services Act.2 The most objectionable change allows the act to lift controls off vacant units. The 3.2 million renters in Ontario are very concerned about the changes.3 The housing ministry will accept written submissions from the public until August 30. Public hearings are also planned in hope that they will ease the transition. However, most people are indignant towards the idea. Changing the rent control laws would be detrimental to society as they threaten citizens’ positive right to affordable housing, harm their mobility rights and increase the gap between the rich and the poor. The proposed ‘Tenant Protection Act’ assaults peoples’ right to affordable housing. If people 2006-07-09T13:27:46-04:00 http://75.150.148.189/free-essay/The-Effects-of-Placing-Rent-Controls-in-Toronto-30104.aspx Societies Creation of "Workaholic" Culture The official working week is being reduced to 35 hours a week. In most countries in the world, it is limited to 45 hours a week. The trend during the last century seems to be unequivocal : less work, more play. Yet, what may be true for blue collar workers or state employees – is not necessarily so for white collar members of the liberal professions. It is not rare for these people – lawyers, accountants, consultants, managers, academics – to put in 80 hour weeks. The phenomenon is so widespread and its social consequences so damaging that it acquired the unflattering nickname “workaholism,” a combination of the words "work" and "alcoholism". Family life is disrupted, intellectual horizons narrow, the consequences to the workaholic’s health are severe : fat, lack of exercise, stress take their toll. Classified as "alpha" types, workaholics suffer three times as many heart attacks as their peers. But what are the social and economic roots of this phenomenon ? Put succinctly, it is the result of the blurring borders and differences between work and leisure. The distinction between these two types of time – the one dedicated to labor and the one spent in the pursuit of one’s interests – was so clear for thousands of years that its gradual disappearance is one of the most important and profound social changes in human history. A host of other shifts in the character of the work and domestic environments of humans converged to produce this momentous change. Arguably the most important was the increase in labor mobility and the fluid nature of the very concept of work and the workplace. The transitions from agricultural to industrial, then to the services and now to the information and knowledge societies, each, in turn, increased the mobility of the workforce. A farmer is the least mobile. His means of production are fixed, his produce was mostly consumed locally because of lack of proper refrigeration, preservation and transportation methods. A marginal group of people became nomad-traders. This group exploded in size with the advent of the industrial revolution. True, the bulk of the workforce was still immobile and affixed to the production floor. But raw materials and the finished products traveled long distances to faraway markets. Professional services were needed and the professional manager, the lawyer, the accountant, 2006-07-07T13:47:15-04:00 http://75.150.148.189/free-essay/Societies-Creation-of-Workaholic-Culture-30099.aspx Report on Paraguay's National Economy My report was done on the country of Paraguay. This is a very interesting yet different country then ours. It has many of the same features as the United States. One of them being its form of Government, it is listed as a “Republic” on paper but has all the same principals of a “Democracy”. Also there are many differences about this country as well. The first being their literacy rate, it is currently at 81% the lowest of the surrounding countries. The life expectancy for males is 65 and for females 69. Their population under 15 years old is a large 425 highest of surrounding countries. However, the population has been growing since 1990 at a rate of almost 3.5 %. In Comparison this country is about the size of California yet has about half of its population. The main spoken language is Quariani but Spanish is a close second, however this is not the Spanish we speak it is more of a dialect of the Spanish language we are studying. Also many Indian languages such as Lenqua, Nivacte, and Ache exists but these are only spoken is the forest regions of the country where very few people speak them. Paraguay is not very “high tech” at all. In fact it has a high unemployment rate of about 8%. There are many markets for shopping but very few stores, as we know them throughout the country. The electricity is hydrogenated and also in very limited supply. Six million kilowatts on average is what is generated. Therefore only a limited amount of buildings have power. All governmental buildings as well as 50 others. Most of Paraguay’s money is generated from a few agricultural products. Such as cotton, sugarcane, soybeans, corn, heat, tobacco, cassava (tapioca), fruits, vegetables; beef, pork, eggs, and milk. Paraguay is made up of a wide range of geographic facts, it goes from mountains to flatlands. It is a land locked country with a total area of 407,000 miles. Most of the country is timber that has little or no economic value. The Rio Paraguay River splits this country in two. With the eastern part being the most populated. Paraguay is a well-watered plate with rolling grasslands and some sub-tropical forests. One mineral resource available is petroleum but even this is a very limited supply and resource. Paraguay is a humid country 2006-07-03T23:41:30-04:00 http://75.150.148.189/free-essay/Report-on-Paraguay-s-National-Economy-29967.aspx The Economics of Thorstein Veblen There seems to be little question that Veblen had an a grasping and intelligent mind; as a young man he read ferociously. But, Veblen proceeded in life as an isolated figure; his mind unpenetrable by others; and his personality matched his physical appearance, -- strange.1 "He walked through life as if he had descended from another world, and the goings on which ... appeared to him as piquant, exotic, and curious as the rituals of a savage community ... [he was] a mass of eccentricities." In time Velben found himself teaching at the University of Chicago, a university that was well funded (Rockefeller) and had determined to corner the entire intellectual market, even if it meant that the university was to end up with such a strange individual in its stable, as undoubtedly Thorstein Velben was.2 Veblen's teaching methods were such that they drove students away: "He mumbled, he rambled, he digressed."3 Though Veblen makes for an interesting biographical sketch, what in economics he will be remembered for is his work, The Theory Of The Leisure Class. It came off the presses in 1899. It was first written in such a polysyllabic manner that the publisher had to get Veblen to re-write it several times. In it, Veblen set forth his corrosive view of society.4 "For most people the book appeared to be nothing more than just ... a satire on the ways of the aristocratic class, and a telling attack on the foibles of the rich. ... Although Veblen might stop along the route to comment on the more striking local scenery, his interest lay at the terminus of his journey, in such questions as What is the nature of economic man? How does it happen that he builds his community that it will have a leisure class? What is the economic meaning of leisure itself?"5 Veblen's theory of the leisure class is to be compared to that of Marx's theory. Marx was of the view that the upper class were at "swords points" with one another and the inevitable historical outcome would be the violent overthrow of the upper classes. Veblen, however, was of the view that the lower classes were not out to overthrow the upper class; but, rather, strived to climb up to it. Its presence, indeed, served the larger community by setting the example and giving 2006-07-03T23:00:45-04:00 http://75.150.148.189/free-essay/The-Economics-of-Thorstein-Veblen-29947.aspx Convenience and Practicality of Investing Today If you are like every other person in this country, you have probably heard the success stories connected to the stock market. You have probably associated those successes with the Bill Gates of the world, and consider that kind of success an unattainable and unrealistic goal for yourself. This is no longer true, however. Resent technology has made investing much more user friendly than in the past. With the Internet, you can now get detailed instructions on why you should invest, the risks versus the rewards, what type of investments are right for you, and how to get started. There may be many different reasons why you haven’t jumped on the investment bandwagon. There are many more, however, why you should. A lot of people feel that investing is something that you have to be a genius to do, or that if you didn’t start early, it’s too late. This isn’t true. Anyone can invest; it can be as simple as opening a savings account. There are people that do all of the research for you, and unless you are going to a full service broker, there are no fees. Also, it is never too late to invest. There are investment options out there that are tailored to your needs and situation, no matter what they may be. The current market makes now the perfect time to start investing. With the market hitting an all time low, the price of stocks is down considerable. If you buy now, when the market goes back up, your money will have an even greater chance at potential growth. Like everything else in life, there are risks in investing, stock markets plummet, and companies go bankrupt. However, you are all but guaranteed to make money in the stock market. You are actually at a greater risk of losing money by leaving it in a savings account, than investing that money. Thanks to inflation, $100 left sitting in a bank savings account for 10 years, will have lost one fourth of its value. Some investors get very anxious when the stock market takes evens the smallest dip. The biggest mistake investors make is to pull their money out whenever they see this happening. It is a mathematical certainty that the longer 2006-07-02T22:47:18-04:00 http://75.150.148.189/free-essay/Convenience-and-Practicality-of-Investing-Today-29912.aspx Economic Analysis of Framce France is the largest Western European nation in terms of size and economy. They are part of almost all UN organizations and many other non-UN organizations, only one of which is the World Trade Organization (WTO). They are also part of The European Union (EU). France holds a permanent seat on the Security Council as well as being a charter member of the UN. They have paid all of their assessments and have been an active 2006-06-27T03:41:29-04:00 http://75.150.148.189/free-essay/Economic-Analysis-of-Framce-29887.aspx The Importance of Competition in our Economy Our economy is basically based on one major concept; competition. Competition is defined in Webster's Dictionary as being a trial of skill or ability. Competition can sometimes be a good thing, and it can also be a bad thing. It all depends on which end of the spectrum you are. Competition between two companies can benefit society just as often as it can hurt society. One major example of this is Wal-Mart and other large corporations coming into a small town and running small privately owned shops out of business. It is on this main topic that I will focus the rest of this paper on. Small businesses across the United States are being forced to close due to the success of large chain stores. The success of these chain stores has been argued to be beneficial by some and detrimental by others. Wal-Mart is the world's largest retailer and it is still growing. There are many benefits Wal-Mart can offer a community, such as a decrease in the unemployment rate, as well as an increase of individual and per capita income. Some other benefits are that the opening of a Wal-Mart will create a larger tax base, and also there will be an increase of visits to the city by out-of-towners. These are just a few of the many benefits that the opening of a Wal-Mart or another large corporation would have on a town. One final benefit that may be a little deceiving is an increase in total retail sales. This may be deceptive because the increase most likely at the expense of many small businesses in that city and neighboring cities. Many different types of specialty stores could possibly suffer and go out of business. For example, Wal-Mart alone could put several stores out of business such as food stores, general merchandise stores, department stores, hardware stores, variety stores, specialty stores, and apparel stores. Large corporations including Wal-Mart have made claims stating that small businesses can compete with them. Some of the suggestions they make to smaller businesses include forming coops. Also, small businesses are urged to make shopping an experience, as well as embrace new technology. Small businesses can also fulfill an unmet need. Location is also extremely key in competing with large 2006-06-20T14:14:34-04:00 http://75.150.148.189/free-essay/The-Importance-of-Competition-in-our-Economy-29664.aspx Critique of Marxian Economics Jon Elster concluded his Making Sense of Marx with the claim that ‘It is not possible today, morally or intellectually, to be a Marxist in the traditional sense’ (1985, p.531). Acceptance of this statement depends, of course, on what is meant by traditional Marxism. Elster makes it clear that what he means by traditional Marxism is that ‘intellectually bankrupt’ and ‘non-scientific’ economic theory associated with the labor theory of value, the theory of the falling rate of profit, and ‘the most important part of historical materialism’, the ‘theory of productive forces and relations of production’ (1986, p.188-194). In place of these redundancies, Elster proposes a new Marxism founded upon logically consistent microfoundations (1982). To achieve this reconstruction, he explicitly favours the tools of neoclassical analysis; a ‘truly scientific’ methodology that posits the existence of economic institutions (for example, prices and markets), then attempts to show that they are compatible with the actions of individual agents who engage in rational calculated satisfaction-maximizing exchanges. Defending a position very similar to Elster’s, Roemer (1989a, p.384) provides the following summary of Marx’s economic theory and its late twentieth century reconstruction: Marx thought that the easiest way to explain how the surplus was produced was to assume a labor theory of value - that is, that prices of commodities were proportional to the amount of labor embodied in them. Exploitation took the form of workers producing goods embodying more of their labour than was embodied in the wage goods that they received in return, that surplus labour became monetized through the price system in a simple way because prices were assumed to be just proportional to the amounts of labor embodied in commodities. But it has long been known that equilibrium prices in a market economy are not proportional to the amount of labor embodied in goods; it was therefore necessary to ask whether the Marxist theory of accumulation could be made more precise even though the labor theory of value was wrong. This has been done during the last twenty years, by applying techniques of input-output analysis and general equilibrium theory, by Michio Morishima and others. It is, in my view, a winning point for Marxism that its theory of capitalist accumulation can be liberated from the false labor theory of value. Some Marxists, however, persist in viewing this reconstruction as heretical, dispensing as it does with the labor theory of 2006-06-16T18:44:39-04:00 http://75.150.148.189/free-essay/Critique-of-Marxian-Economics-29642.aspx Analysis of Mexico's New Tax System Introduction: Because of all the fiscal leakage from the huge informal economy -not to mention an upper class with clever accountants- tax evasion ranks among Mexico's favourite pastimes. Mexico is Latin America's second-largest economy, but currently it has one of the region's lowest tax-collection rates: Mexico collects taxes worth only 11.2 percent of its gross domestic product. Countries such as Brazil and Chile collect more than 15 percent, and the United States takes even more. Over the last seven years, oil has accounted for between a fifth and a third of public income. Last year, the Finance Ministry had to cut spending several times to make up for falling oil prices. Mexico’s economics analysts reckoned that, effectively collected, taxes could, in a healthy way, boost government income and ease dependence on oil exports. President Vicente Fox sent to the congress a new tax law “initiative” that proposed to raise nearly 10 percent of total revenue, by means of applying a Value Added Tax (or IVA, according to its Spanish acronym) rate of 15% to the sales of food, medicine and press publications; all of which were currently tax-exempted. The reasoning of President Fox’s government departs from the position that the fiscal reform will bring, as a consequence, a firmer control in the short term over inflation, in spite of the increase of the IVA; diminutions of credit interest rates, and will reactivate the country’s economy to guarantee a maintained average growth of an annual 7%, with a consequent constant increase in employment and job creation levels, guaranteeing to increase the standard of living of the population. That sparked outrage among millions of average Mexicans, knocking down Fox's approval rating to about 50 percent from a high of 80 percent, according to independent surveys. Legislators said that the Fox plan would have punished the country's poor, who make up about 40 million of the country's total population of 100 million. The New Taxes and some of the Affected Stakeholders… Instead of looking for alternate, more conciliatory, measures to collect the needed resources; lawmakers approved, in a lightning, last minute session, a new tax code that is expected to add about 60 billion pesos to the finance ministry's coffers, half of what the government initially sought to collect in additional revenue when it submitted seven initiatives to revamp Mexico's tax laws in April. The new tax code pretends to increase the government’s budget 2006-06-16T15:05:41-04:00 http://75.150.148.189/free-essay/Analysis-of-Mexico-s-New-Tax-System-29614.aspx High Employee Turnover in Asia Software Companies Background: The software industry in Sri Lanka is still in its infancy. However, it is an industry which has shown one of the highest growth rates in the last five years. The revenue earned by the software exports has grown to Rs. 55 million in year 2000, from almost nothing from the year 1996. It has been predicted that this high growth rate will continue in the near future. There are about 30 major software firms in Colombo (with employee strengths more than 50) that cater almost entirely to the global market. One salient feature differentiates the software industry from any other industry is that the notably high dependability on the skilled human capital. The success of any software firm is largely determined by the skills and the competence of its software programmers. For this reason the skilled programmers are usually offered impressive salaries and benefits, than what their counterparts in the other industries receive. Although no detailed studies have been done in this area the general belief is that most of the software companies show high employee turnover rates. This has become a major concern for the following reasons: The direct negative effect to the business continuity of the firm created by the programmers leaving in the middle of the projects The loss of the financial investment spent on training the programmers The cost and the effort necessary to find replacements from the highly competitive job market The possibility of the competitors getting the business and technical secrets of the firm from the employees who change over Objective: The objectives of this study are to: Assess the criticality of the employee turnover problem to the Sri Lankan software firms Find the reasons for the high employee turnover in the software firms Determine how such reasons can be eliminate by proper human resource planning to minimise the employee turnover rates Significance of the study: The findings of this study will be important to the managements of the Sri Lankan software firms and HR Managers of those firms for HR planning process. Methodology: The suggested methodology of this study involves: An Information gathering from the software programmers in selected software firms about their expectations, career objectives and working conditions offered to them to determine the reasons behind the frequent changeovers. (The information gathering will be done in the form of a survey using questionnaires) An Information gathering from the CEOs / HR managers of the selected Sri 2006-06-13T18:34:37-04:00 http://75.150.148.189/free-essay/High-Employee-Turnover-in-Asia-Software-Companies-29443.aspx The Government and Economy of Italy In this essay I will talk about Europe’s organization in general, and why I’m very proud to be European! The focus will be on my country in details, its actual government, values and the general economic situation in the last years. Italy became a nation-state in 1861 when the city-states of the peninsula, along with Sardinia and Sicily, were united under King Victor EMMANUEL. An era of parliamentary government came close in the 1920s when Benito MUSSOLINI established a Fascist dictatorship. His disastrous alliance with Germany led to Italy's defeat in World War II. That period was very bad for the whole Nation, people didn’t really understand, at the beginning what was going on when Mussolini took office. He was a very proud man, a dictator with a clear project: make of Italy a known place all over the world. What he wanted actually happened, but it was not what Italians had figured to happen in their immediate future. The Government has always been a fictitious issue. When somebody is elected as Prime Minister, there is no way to remove him from his office. The term lasts five years. Five years is a very long time, and lots of things can happen. Although there is a President, his only function is to represent the Nation and encourage people in bad moments. The Prime Minister is at the head of the Government. Some of the legislative powers are in his hands, and some belongs to the Parliament. The Parliament consist of the Senate (315 seats elected by popular vote of which 232 are directly elected and 83 are elected by regional proportional representation plus, in addition, there are a small number of senators-for-life including former presidents of the republic; members serve five-year terms) and the Chamber of Deputies (630 seats; 475 are directly elected, 155 by regional proportional representation; members serve five-year terms). The confusing thing is the period preceding elections. This is because there are so many parties, that most of the time people are not able to understand the difference between them. They make coalitions between each other; the most of the time only with the purpose to have more chances to win. This is very unproductive. During the days before the elections, politicians make promises to each other and to the populations. They try to catch each other before somebody else does. Sometimes it’s 2006-06-13T17:33:10-04:00 http://75.150.148.189/free-essay/The-Government-and-Economy-of-Italy-29411.aspx Government's Involvement in the American Economy In the article “The Economy Needs More Big Government – Now” it is in the opinion of the author that the US Government step up and be more aggressive in their stance in stabilizing the economy and beefing up our health system. I agree with the article in the sense that before when the economy was stronger, the country basically ran itself. Now that the country has been crippled, I feel that the government should step up and act like a parent coming to rescue her injured child. The government has the means to revitalize the economy and to be the strong force that pushes along the recovery effort. By slashing interest rates and encouraging investors and restoring consumer confidence the economy can turn around. However, this is a bandaid that can only be applied by the US government. If ever before, now is the time that the economy does in fact need “more big government.” In “Economic Trends” the first article discussed the weakening value of the US dollar across the globe. The downtrend on the value of the dollar will in turn weaken the overall global economy by dragging down consumption and investment overseas and potentially damage financial systems in other countries which rely on the US dollar as “safe” currency. Big exporters such as Japan and Germany will potentially find it hard to sell to American businesses and consumers since the falling dollar inevitably means higher prices for imports. Also, with the economy being so strong in the 1990s, many foreign companies issued debt in dollars. If the dollar falls, those bonds would all become much less valuable to the investors holding them and in turn much more of a problem for the global financial system. A second article featured in “Economic Trends” concerned increased domestic natural gas production. The argument is that the US needs to rely less on overseas suppliers of natural gas and rely more heavily on domestic produced gas. Reports show that tax credits in the 1990s increased natural gas production and it is in the opinion of many that tax credit needs to be issued again today in 2001. It is necessary to do such considering the position that the country is in economically and in regards to our crippled relationship with foreign nations which function 2006-06-12T21:13:31-04:00 http://75.150.148.189/free-essay/Government-s-Involvement-in-the-American-Economy-29385.aspx Explain the role in the global economy of International organizations Globalization is the actual movement or potential to move across borders of nations in areas of trade, investment, technology, finance and labor. It has resulted in increasing financial flows and trade between countries, as each country tries to establish itself into the global economy, and gaining the benefits associated with globalization. This has resulted in the formation of numerous International organizations that aim at promoting policy coordination amongst countries and attempt to provide rules and investment transactions and a forum for discussion of trade related issues. Such international organizations are, the World Trade Organization (WTO), International Monetary Fund (IMF), The World Bank, Organization for economic cooperation and development (OECD), Organization of Petroleum Exporting Countries (OPEC), and the Group Seven (G7). The WTO is the main multilateral trading agreement which provides a forum for countries to promote free trade and resolve trade disputes. Its various roles include enforcing the existing WTO agreement, resolving disputes, and liberalising world trade by implementing global trade agreements. These agreements lay ground rules, that promote cooperation between countries. The WTO also exists in order to provide non-discrimination between member countries, liberalisation of trade which involves the removal of all tariff and non-tariff barriers, stability of trading relations where WTO mechanisms are set up to discuss and solve trade disputes between countries, and Transparancy of trade agreements, where trade preferences between countries are scrutinised and discussed in the WTO forum thereby reducing corruption. Without the WTO, globalisation would be a struggling process as countries would have difficulty organising trade policies, often resulting in many countries at a disadvantage. In essence the WTO serves as a forum to ensure that all its member countries benefit from globalisation. The IMF is an international organisation established to promote international monetary cooperation, exchange stability, and orderly exchange arrangements; to foster economic growth, a stable economic environment, high levels of employment; and to provide temporary financial assistance to countries to help ease balance of payments adjustment. This assistance is given to countries if economic policy is met, known as “structural adjustment policies”. These policies are aimed to decrease the size of the government, privitising government business enterprises and deregulating markets. Without the IMF, poorer countries will find themselves without assistance, and at a point where they cannot acheive economic growth, poorer areas within the country will be stagnate, and contrasting to the growing richer economies 2006-06-12T11:22:09-04:00 http://75.150.148.189/free-essay/Role-of-International-Organisations-in-the-Global-Economy-29323.aspx Analyze the impact of protectionist policies on the domestic and global economies. Free Trade occurs when there are no artificial barriers between nations imposed by governments in order to restrict trade. When barriers such as protectionist policies exist, free trade becomes restricted. Protection is essentially defined as any action by national governments that will give an artificial competitive advantage to domestic producers over foreign producers. National governments will aim to protect or shelter their nation from the disadvantages of free trade, through protectionist policies in the form of subsidies, tariffs, local content rules, quotas, export incentives and voluntary export restraints. Reasons for protection include “The Infant Industry argument “ which states that some industries in a given country may develop a comparative advantage if only they are sheltered from foreign competition for a while, by means of temporary protection. So if, in the future the infant industries ‘grow up’ and form a comparative advantage, the domestic economy will gain access to a larger demand market, creating an injection into the economy, resulting in increased economic activity and employment. The domestic protection argument rather states that because free trade, and increased global competition can result in structural unemployment. It has hence become apparent that infant industries need to be protected, dumping prevented, domestic employment sustained and the defence and self sufficiency of a nation ensured. The infant industry argument outlines the need for protection in order to establish industries that can form a comparative advantage in the future, if sheltered from competition for a little while. This ultimately means a reduction in free trade, which would otherwise have brought the advantage of advanced technology, imports and managerial methods. However if these industries do grow up, and protection is successfully removed, those industries are able to provide more goods and services in an increasingly competitive environment meaning those firms will be forced to reduce prices and adopt more efficient work practices. Therefore even if protection does exist, global economies will still gain access to a wider variety of commodities imported from other countries in the long term as well as technology, thereby raising competition between products, and potentially increasing living standards in the future. Voluntary export restraints are agreements between national governments and foreign suppliers to limit the amount of exports to an importing country. They are usually agreed upon by suppliers in order to avoid the placement of tariffs. This has the 2006-06-12T11:21:03-04:00 http://75.150.148.189/free-essay/Analysis-Impact-of-Protectionism-on-Domestic-and-Global-Economies-29322.aspx Economic Essay – Globalization “Analyze the impact of globalization on economic growth, quality of life, and external stability of global economies” Globalization, an important characteristic within the contemporary economic environment, has resulted in significant changes to individual nations in terms of economic development strategies undertaken by national governments. The term globalization refers to the integration of local and international economies into a globally unified political economic and cultural order, and is not a singular phenomenon, but a term to describe the forces that transform an economy into one characterized by the embracement of the freer movement of trade, investment, labor and capital. The drive for globalization has resulted in greater economic growth globally, through the opening up of barriers to international trade, yet this increase in world output is often associated with detrimental effects in relation to the stability of a national economy, being susceptible to the ups and downs of the international business cycle and also both positive and negative effects on the standards of living or quality of life with in a nation. It is often difficult to categories an economy as being globalized, yet there are several key indicator that suggest economic management decisions undertaken by the govt have come as a result of globalization. The main evidence to suggest the globalization of nations has been the growth in global markets, changes in global consumption patterns, the establishment of intergovernmental agreements as well as the rise of transnational corporations. Globalization has been essentially driven by the breaking down of economic barriers between nations over recent decades that have resulted in greater worldwide economic growth. This economic liberalization has been spurred on by the global trend towards the deregulation of national economies as well as reforms to encourage greater competitiveness with in the global markets. As a result of the microeconomic reforms, globally there has been a general reduction of restrictions on trade, capital flows and foreign investments. In addition to this, technological advancements over the last half century have contributed to this “economic liberalization” where as a result of this technology growth, transport costs have reduced dramatically, making trade more cost efficient. Communication costs have also reduced through advancements in telecommunications and e-commerce resulting in escalated movements in international finance. Through these increases in trade and financial flows, countries have experienced increased level of economic growth over time that has contributed to the world standards of living. The global population 2006-06-12T11:19:38-04:00 http://75.150.148.189/free-essay/Globalization-29321.aspx The Global Economy and Globalization - 2005 While there is a great deal of talk about the 'Global Economy' and 'Globalisation', they are often spoken of, as if everyone understands what is meant by the terms or, alternatively, as giant mysterious forces that control the world, that no one has any knowledge or understanding of. The aim of this paper is to examine the 'Global Economy' and 'Globalisation' and to see what is happening in these areas. The Global Economy The Global economy is the world economy. It is the economic activity going on in the world. It is the combined economic activity that takes place in each individual economy plus the activity between countries. It includes all production, trade, financial flows, investment, technology, labour and economic behaviour in nations and between nations. Economists try to predict trends in the world economy by applying models that demonstrate how changes in certain economic variables or factors have affected the domestic or global economy previously. In our current economic environment these tools are becoming more limited. In recent years the state of the domestic and global economies have been largely influenced by non-economic factors. Factors that economists could never predict. These include the terrorist attacks of September 11th and subsequent terrorist attacks, the outbreak and spread of the Severe Acute Respiratory Syndrome (SARS) virus and the war in Iraq. These factors have had great influence on the state of the global economy in the last 4 years, and these, and similar events, will continue to do so into the future. The most recent factor to impact on the global economy has been the increase in the world price for oil and the subsequent and future rises in the price of fuel throughout the world. Uncertainty discourages consumer and investment spending and subsequently economic growth. Despite this the global economy grew 5.1 percent in 2004 but is expected to slow to 4.3 percent in 2005(Figure 1). In the later half of 2003 and early 2004, global growth was averaging about 6 percent. In the second half of 2004 it began to moderate, accompanied by a significant slowdown in industrial production and global trade (Figures 1 and 2), reflecting both a return to a more sustainable pace of expansion and the adverse impact of higher oil prices. The IMF (2005) considers that the most 2006-06-12T10:38:41-04:00 http://75.150.148.189/free-essay/The-Global-Economy-29300.aspx How Information Technology is Boosting Australia's Economy Information Technology (IT) or Information Communication Technology (ICT) sector is one of the fastest growing industries in the world. The Australian ICT Sector includes computer services, telecommunication services, and some selected manufacturing and wholesale trade industries. It helps to create jobs, products/services and exports. The industry also has an impact on the productivity of virtually all other industries. The ICT industry has undergone significant change since the Australian Beaureu of Statistics last conducted a survey in 1996. The total income for the sector in June 1999 was almost $63billion that’s and increase of 28% when compared to June 1996. Video and computer games are a big factor in the rise. Australian companies like UbiSoft are beginning to break into American and Japanese controlled market. UbiSoft’s hit game Dark Reign sold worldwide and was voted as the strategic game for ’97/’98. Codemasters is another example; they have been able to break into the English market with their hit games Shane Warne Cricket and Colin McRae Rally. This is also quite helpful for other Australian companies because it boosts credibility of Australian developers and makes other Australian games more readily accepted on the market. Although software development is up hardware development has taken a dive, with earnings slipping from nearly $2 billion down to just over $1.1 billion. This drop in earnings has caused severe job cuts in this sector, from 5,700 jobs down to 2, 400 that is nearly a 57.2% in job losses from 1996. The industry is now benefiting from services, such as Computer Consultancy. Revenue from 1996 has jumped up almost 46% in 1999. Another service that is benefiting the industry is Data Processing. With jobs increasing in number. In 1996 employment was 5,291 jobs to an increase in 1999 of 7,174 jobs. That is an increase of 35.6% over 3 years. There are many positive impacts of the ICT industry on the economy. For example it boosts Australia’s exports around the world. In 2000 New Zealand increased its purchasing of Australian ICT products and services by a staggering 13.8%. It is creating many jobs for Australia’s unemployed. In the computer services sector alone there has been massive 35.2% increase in the amount of people employed. One Negative impact of the ICT industry on the economy is job losses. Even though it creates jobs ICT also causes some job losses, such as Electric Cable 2006-06-11T02:59:50-04:00 http://75.150.148.189/free-essay/How-Information-Technology-is-Boosting-Australia-s-Economy-29192.aspx Women Entering the Workforce Leading to Greater Equality How often do you see a woman as an executive in charge of a large company? And of those women that have succeeded into these positions, how many of them have families at home? Not all that many. It seems that the way society looked at women in the past has hindered them from succeeding in both the family and career aspects simultaneously. Many women choose one or the other. Either to raise a family of their own or to pursue their career, especially if their career choice is not one of the jobs considered being “women’s work”. In the past women were looked at as the more nurturing of the sexes and that is why they typically stayed at home and raised the family while the men went out and brought home the bacon so to speak. If you have ever seen the television shows of the 50’s you would have noticed that most of the families on these shows consisted of a father that worked a nine to five job, a couple of kids, and a mother. The mother was a housewife who’s sole duties were to raise the children, clean the house and have a hot meal on the table for her husband as he returned home from work. In many instances the women on these shows never worked out side of the home and when they did decided to try they normally failed and at the end of the show realized that their place was in the home raising the children. Never once did I ever see a show that while the woman decided to give a career a try that the man stayed at home and took care of the children, and not once did I see one of these women succeed and stick with her job. But this is changing. More often then not women in today’s society are going out there and starting careers of their own. And these are not necessarily careers that are in the category of women’s work. Many of these women are going out and getting positions that would normally not be considered “women’s work”. What I mean by women’s work is those jobs that are normally possessed by women. Such as waitressing, secretarial work, teaching elementary 2006-06-11T01:43:47-04:00 http://75.150.148.189/free-essay/Women-Entering-the-Workforce-Leading-to-Greater-Equality-29156.aspx Following the Development of the Economic and Monetary Union The Economic and Monetary Union (EMU) is a single currency area within the European Union in which people, goods, services and capital move without restriction. Imperative to the success of the EMU is the implementation of a single European currency, the Euro, and the application of specific macro-economic policies by the EMU member states. Moreover, it is the foreseeable intent of European governments to create a framework for stability, peace and prosperity through the promotion of structural change and regional development. This paper will endeavor to highlight the fundamental gains likely to be accrued by the European business community as a result of EMU policy provisions. The developments and circumstances preceding the EMU formation will be examined to give insight into the functioning of a monetary union. Furthermore, it is essential to analyze the implications the EMU has for firms within both the European Union (Euroland) and other European nations. To establish a strong understanding of the intricacies of the EMU, it is essential to discuss both the antecedents and major developments in this monetary union. The origins of the EMU can be traced to the formation of the European Coal and Steel community (ECSC) in the early 1950s, which was the first attempt to harness European economic unity to achieve greater international competitiveness (Per Jacobson, 1999). The success of this venture prompted the foreign ministers of six ECSC nations to examine the possibility of further economic integration Hence, in 1957 one the most significant agreements in European economics history, The Treaty of Rome, was signed. The Treaty of Rome’s fundamental goal was to provide for the creation of a common market (Kenwood & Lougheed, 1999). The most significant aspect of this treaty was the commitment made by such countries as Belgium, France, West Germany, the Netherlands, Italy and Luxembourg to facilitate the free movement of goods, services and factors of production. Essentially, these European governments sought to eliminate internal trade barriers, create common external tariffs and harmonies member states laws and regulations (Hill, 2001). This movement towards a common European market continued with relative success until the late 1960s. During this period, the Bretton-Woods Exchange Rate Regime had begun to exhibit unmistakable flaws, whilst global inflation was alarming high. In addition, the revaluation of the German Deustchemark and the devaluation of the French Franc, created considerable exchange rate volatility within Europe 2006-06-11T01:28:51-04:00 http://75.150.148.189/free-essay/Following-the-Development-of-the-Economic-and-Monetary-Union-29149.aspx Government's Role in Regulating Monopolies like Microsoft The economic system of the United States is modeled after the theory of capitalism. "Capitalism supports free enterprise - private business operating without government regulation (Janda 22)." The United States does regulate private businesses. Sometimes special circumstances arise which threaten to weaken the overall economic stability of the country. In order to sufficiently deal with these situations, the United States government has passed many laws granting certain groups the authority to bring attention to and to stop the threat. This is extremely important in terms of its effects on individuals. It protects the freedoms of individuals, maintains order and stability, and attempts to promote equality. One example of the ability of the United States government to interfere with the natural progression of the American capitalist society, is the existence of antitrust laws. These laws regulate certain actions of individuals, trusts, corps, and combinations of corps in an attempt to prevent or forcibly end a monopoly (Gilbert 21). Since 1989, Microsoft has been repeatedly accused of violating antitrust laws. Many times these accusations have led to an antitrust case being filed against Microsoft. These antitrust laws and law suits are extremely important. Despite the verdicts of the cases, antitrust laws served their purpose - to maintain the balance of the concepts of freedom, order, and equality. Freedom is one of the three main concepts that government must pursue for its people. Freedom has two main contexts in which it is used which are freedom of and freedom from. "Freedom of is the absence of constraints on behavior; it means freedom to do something (Janda 10)." These types of freedoms guarantee individuals certain liberties such as freedom of speech, freedom of religion, freedom of the press, and all other civil liberties. These individual liberties are extremely important in a democracy. "Freedom from . . . suggests immunity from fear and want." Freedom from is also important in a democracy. It guarantees that certain things cannot be done to anyone (Janda 10). This is important because it places limits on the powers of the government. Another duty that government must pursue is maintaining order. Order is "the rule of law to preserve life and protect property. Maintaining order is the oldest purpose of government (Janda A31)." There is also a third aspect associated with the idea of order. This is a belief in maintaining traditional patterns of 2006-06-10T19:38:25-04:00 http://75.150.148.189/free-essay/Government-s-Role-in-Regulating-Monopolies-like-Microsoft-29140.aspx Challenges to Upward Mobility in the American Economy Men have long dreamed of an egalitarian society, a society in which all members are equal. In such a society men will no longer be ranked in terms of prestige, states, wealth and power. Clearly the egalitarian society remains a dream. All human societies from the simplest to the most complex have some form of social inequality. In particular, power and prestige are unequally distributed between individual and social groups. Social stratification Social stratification is a particular form of social inequality. It refers to the presence of social groups which are ranked one above the other, usually in terms of the amount of power, prestige and wealth their members possess. Those who belong to a particular group will have some awareness of common interests and a common identity. They will share a similar life style which to some degree will distinguish them from members of other social strata. Social Mobility in Capitalist Society It is generally agreed that the rate of social mobility ¡V the amount of movement from one stratum to another ¡V is significantly higher in Capitalist Society such as U.S.A. and H.K.. In H.K., this can be exemplified by the emergence of a large stratum of middle class families after the 80¡¦s. This middle class sector was seen to move upward on the social ladder and achieved their status on the basis of talent, ability and hard working rather than ascribed from their class of origin. Although in recent years, due to the northwards movement of the manufacturing and services industry, some people have suggested that routine white ¡V collar workers are undergoing a process of proletarianization. But, generally speaking, our society can be regarded as ¡¥open¡¦, as having a relatively low degree of ¡¥closure¡¦. Sociologists have identified two main types of social mobility. The first, intragenerational mobility, refers to social mobility within a single generation. The second type, intergenerational mobility, refers to social mobility between generations. The significance of social mobility The study of social mobility is important for a number of reasons. Firstly, the rate of social mobility may have an important effect on class formation. If the rate of social mobility is low, class solidarity and cohesion will be high and distinctive class sub-cultures and strong class identifications will tend to develop. Secondly, a study of social mobility can provide an indication of the life chances of members of society. Thirdly, it 2006-06-07T18:58:43-04:00 http://75.150.148.189/free-essay/Challenges-to-Upward-Mobility-in-the-American-Economy-29126.aspx Economic Turmoil of Present Day Brazil After reviewing the Defending the Brazilian Real case study, I was amazed at what I learned. How can a country that is such a known for its festive atmosphere and abundance of natural resources, be going through such economic turmoil? I’m sure no one in the United States could imagine their rent doubling every 10 weeks. That their credit card charged 25% interest. That the costs for food and clothes increased by 40%. That the value of their savings declined 2000%. In a year! Well in my research, I learned that this is what the citizens of Brazil experienced for ten years, 1987 to 1997. During those ten years, 40% of GNP was eaten up by inflation, which means nearly everyone got rid of cash as fast as possible, because it literally lost value in their pockets. And the majority of people were reduced to buying only the essentials of life, which had a devastating effect on industries that produced all kinds of goods and services. In the case study, the reader is introduced to the Brazilian economy at its turning point away from hyperinflation, with the introduction of the Real Plan. With steady economic improvement, the Brazilian government pursued economic policies to transform its previous system to a market based system. The Real Plan (also known as the Plano Real) was designed by then Finance Minister, Fernando Henrique Cordoso, to drive inflation out of the Brazilian economy. When implemented in 1994, annual inflation rate was running at 1000%. This level discouraged economic activity and foreign direct investments (FDI). To fight inflation, the Brazilian government replaced it’s previous currency, the cruziero with the real. The real was pegged to that of the US dollar. Interest rates were repeatedly increased to maintain the value of the real to that of the US dollar. For Brazil, the high cost of credit helped reduce expansion of the monetary supply and brought inflation under control. The Real Plan was a success. This plan ignited economy growth and increased FDI’s in Brazil. The study further explained, in the midst of all of the economic growth, the trade deficit continued to grow. When I read this, I was baffled. How can Brazil still be in trouble if the economy was growing? According to the text, the trade deficit was due in 2006-06-07T16:35:56-04:00 http://75.150.148.189/free-essay/Economic-Turmoil-of-Present-Day-Brazil-29105.aspx Analysing the Growth of Korean and Japanese Economy South Korea (henceforth referred to as Korea) is being looked upon as the role model by different countries for their economic development. Korean history and culture, state intervention, policy reforms, and Chaebols have been the corner stones for Korea’s success. As B N. Song (1990) describes “The way the Korean economy has grown, and the way the Korean people have shared the fruits of economic growth, have been greatly influenced by Korea’s history and culture.” Korea was among the very poorest countries in the world, the out come of the Korean War was devastating. Recovery of the country started in early 1950’s, with extensive support and assistance from United States. According to B N. Song “The period from 1953 to 1961 was one of very slow recovery from the war…the trend curve changed abruptly, however with the beginning of first five year plan in 1962.Thereafter, Korea’s climb up the ladder of development accelerated…by 1970 Korea had achieved NIC (Newly Industrialising country) status.” In Korea the Chaebols and the State, played an important role in initiating development. With the start of the first five-year plan, “The Korean economy entered the take off stage.” as, described by W W. Rostow (1983). The development policy chosen by many developing countries is inward looking rather than outward looking because they believe it to be safe and correct. But it was the boldness of Korea to choose an outward looking growth strategy, which paved the path to its success. B N. Song describes Korea’s growth strategy as “ It is growth oriented than equity oriented…Korea’s strategy has been industry oriented rather than resource or service oriented… Korea’s approach has been outward looking rather than inward looking.” The economic growth started with the rapid industrialisation of export industries. According to C B. Hollis and M Syrquin (1977) “The expansion of exports has been almost ‘forced’ by the government, export industries and the economy as a whole were run by the government, in many cases beyond normal capacity.” The officials in Ministry of Trade and Industry assigned export targets to Korean firms. Firms which met the export goals were rewarded by numerous benefits reserved for exporters, like preferential credit and loans, administrative support and other benefits like tax reduction. On the other hand firms that could not meet the export target risked themselves with heavy administrative sanctions from the government. 2006-06-07T16:21:12-04:00 http://75.150.148.189/free-essay/Analysing-the-Growth-of-Korean-and-Japanese-Economy-29099.aspx Political Economy Analysis of Marx's Communist Manifesto The Communist Manifesto to a great extent aims to explain the goals of Communism and the theory that underpins the movement. The work argues that class struggles, or the exploitation of one class by another, are the motivating force behind all historical developments. The work concludes with the assumption the freedom of the proletariats will only be achieved when property and other goods cease to be privately owned. The Communist Manifesto opens with a statement of its purpose, to publicise the views, aims and tendencies of the Communists. It is meant to be a broad description of what Communism is, both as a theory and as a political movement. The Manifesto has four sections. In the first section, it discusses the Communists' theory of history and the relationship between proletarians and bourgeoisie. The second section explains the relationship between the Communists and the proletarians. The third section addresses the flaws in other, previous socialist literature. The final section discusses the relationship between the Communists and other parties. In section One, "Bourgeois and Proletarians," Marx highlights his vision of history, focusing on the development and eventual destruction of the bourgeoisie, the dominant class of his day. Modern industrial society is characterised by the class conflict between the bourgeoisie and the proletariat. Marx writes, "The history of all hitherto existing society is the history of class struggles." Throughout history we see the oppressor and oppressed in constant opposition to each other. This fight is sometimes hidden and sometimes open. However, each time the fight ends in either a revolutionary reconstruction of society or in the classes' common ruin. In this instance he highlights that the nature of the productive forces of capitalism are not compatible and therefore as exploitation occurs a proletariat revolution will result which will aim to eradicate the social classes. He emphasises that this revolution is inevitable as capitalism is inherently unstable. The most important concept being discussed is the concept that each society has a characteristic economic structure. This structure breeds different classes, which are in conflict as they oppress or are oppressed by each other. However, this situation is not permanent. As history continues, eventually the means of production cease to be compatible with the class structure. Instead, the structure begins to impede the development of productive forces. At this point, the existing 2006-06-06T14:47:02-04:00 http://75.150.148.189/free-essay/Political-Economy-Analysis-of-Marx-s-Communist-Manifesto-29068.aspx Thrift Shopping Benefits for the Financially Challenged We all have times of financial crisis, and in those times we find ourselves trying to spend the least amount of money we can on necessary items without sacrificing quality. Goodwill Industries, a company with over 1,700 stores throughout the country can do just this; save you money on necessities without losing quality. However, there are numerous reasons to shop at your local Goodwill store, and while this appears to be the most common one, it is only one of many. The Goodwill Store carries used items that people have donated to the company, some of which have been refurbished, and has a broad selection of goods that meet the needs of even the most fickle person. Not only gender and type organize clothing, but color. This feature is nice when shopping for a garment that matches another piece of clothing you own, because it allows you to view the whole spectrum of pink, blues, oranges, etc. that are available to buy instead of having to root through different colored garments in search of one that matches. In addition to clothing, the Goodwill Store carries furniture ranging from end tables to sectional sofas. Prices on clothing and furniture are very reasonable, shirts going for roughly two dollars and thirty five cents, most pants not over eight to ten dollars, and furniture, depending on quality, can range anywhere from a mere four dollars to anywhere upwards of a hundred. One of the best features of the Goodwill Store is their selection of clothing. The clothing in the store, being donated, is basically one of a kind as opposed to the store having twenty to thirty of the same items stocked on the shelf. This gives the Goodwill Store shopping experience a little excitement because you never know what you will find. Likewise, you can never be sure that a garment or piece of furniture you liked will still be there at your next visit. Shopping at Goodwill also in a way gives you the feeling of a child in a candy store. There are so many choices, all of which are very different from each other, and it is oftentimes hard to decide which items to purchase. This quandary is lightened, and 2006-06-01T19:37:00-04:00 http://75.150.148.189/free-essay/Thrift-Shopping-Benefits-for-the-Financially-Challenged-28996.aspx Commercialism Invading Communities in Economic Growth In many growing communities across the nation they are worried about the big developers coming in and making the town into a commercial hellhole. Many are concerned with the economic, social, and wildlife tolls that suburban sprawl will take on the community. A well-known solution to this urban sprawling is smart growth. Smart growth distinguishes the diversity between expansion and the quality of life. Smart growth recognizes the community, but still lets some expansion in through the door. Smart growth is composed of a few key elements design, health, transportation, quality of life, economics, environment, and housing. Saguaro Flats is a growing community and growth is almost inevitable, it should grow smart with smart growth. The blueprint for smart growth includes water and electricity efficiency, the use of more economical building supplies, restored downtown, and low impact development. The low impact development and the efficiency of the water and electricity will make for a more economic setting for all. The low impact development and the restored downtown will bring community benefits as well as health benefits for all the residents of Saguaro Flats. When a community grows it not only has a demand for more housing and shopping, but it also has a great demand for better public transportation such as bus, train, and metro. Given the many options of transit there is not one that will become congested, thus allowing the growing community to move freely about the city easily and quickly. This open range of traffic options decreases the amount of traffic congestion in and out of the area. Housing is one of the most important parts of a smart growing community because its key to transportation access, access services, and education. Households today are very diverse, and there is not one single type of housing solution for them all. Smart growth increases the housing supply by building more houses in an existing neighborhood. The new housing structures will be a financial incentive for existing commercial midpoints that lack consumer business in the late afternoon. Many of the communities that are built are not built with health in mind, many have wide streets and no side walks which results in more vehicle use. This caused a lot of unwanted pollution in the city. Smart growth emphasizes public transit and also the use of bikes or walking to your destination. When there 2006-06-01T19:14:47-04:00 http://75.150.148.189/free-essay/Commercialism-Invading-Communities-in-Economic-Growth-28989.aspx Globalization Supporting Comparative Advantage in Economies Globalization is a process fueled by, and resulting in, increasing cross-border flows of goods, services, money, people, information, and culture (Held et al. 1999:16). Stephen Kobrin (1997:147-148) describes globalization as driven not by foreign trade and investment but by increasing technological scale and information flows. Sometimes it appears loosely associated with neo-liberalism and with technocratic solutions to economic development and reform (Evans 1997). But the term is also linked to cross-border advocacy networks and organizations defending human rights, the environment, women's rights and world peace (Sikkink 1998). The environmental movement, in particular, has raised the banner of globalism in its struggle for a clean planet, as in its "Think Global, Act Local" slogan. Thus, globalization is often constructed as an impersonal and inevitable force in order to justify certain policies or behaviors. Globalization," has been defined in a variety of alternative ways including: An economic orientation of globalization being "the growing economic interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and also through the more rapid and widespread diffusion of technology." (World Economic Outlook 1997) Globalization also describes a world environment in which much freer international movement of goods, capital, people, information and ideas is making global market forces more important in the daily lives of the world's people relative to nation state political forces. But, the economic processes of globalization are not new. The period 1870-1914 was a time of very rapidly increasing free movement of goods, capital and people as the technology of the telegraph and the steamship made international communication and transportation much faster, easier and cheaper. This extraordinary period of growth in the global economy was interrupted by the two World Wars and the Cold War, but with the collapse of the Soviet Union, the primary alternative to "market capitalism" also disappeared. Nation states worldwide began to open their economies to international goods, services, practices and ideas, to privatize the means of production that for years had been government owned. Some believe that words are very important when addressing globalization. The corporate media have claimed many words such as "democracy," "freedom," and even "justice" to define globalization. Another is to begin with the word, "democracy," and call the movement against globalization "The Democracy Movement." For centuries, globalization has increasingly knitted together the world and created unity out of 2006-06-01T02:01:31-04:00 http://75.150.148.189/free-essay/Globalization-Supporting-Comparative-Advantage-in-Economies-28964.aspx Encouraging Young Workers in Today's Changing Economy Different people have different opinions on work. For some it is a bread earner. For others it is a passion of their life. According to people, perspective on work varies. There are people who take work for granted, i.e. they don’t care much about the work, what they care is bucks they going to make. The other groups of people are those who have strong work ethics, i.e. they work hard and show strong intensive regardless of what they are paid. The perspective on work can vary strongly among the age group. The older people tend to take work seriously and with strong work ethics. On the other hand, the younger generations take it lightly and have an attitude if laid off- there are other jobs. This may not hold true for all. There are exceptions and exceptions are there in everything. I went to Paynesville to gather what perspective a sixty-year-old person has on work. After listening to Donald Skyrpeck talk about his perspective and experience on work, I said, “ half-hour drive was worth it.” Donald Skyrpeck is a sixty-year-old geography teacher at Paynesville secondary school. He has been teaching at the school since he was thirty. Thirty years at the same job and same place was a long way to go. When I asked about what made him stick so long on same job his answer was- children. He told that if he had changed jobs and places it would have caused break-ups in his children’s studies. I agreed with Mr. Donald. How my studies were affected when my parents had to move from one place to another, until they finally put me in a boarding school. The other things that triggered me was if he had ever felt bored and monotonous doing same work for so long. His answer was –no. I was surprised. He further elaborated that teaching is fun, one seem to meet new faces every year, and that is what keeps one going. I was not satisfied and asked him – what about the same stuff you have to repeat every year? In response to my question he told me that as you meet new children, they bring up new questions, new perspective. It is always something new he told me. He further stated that as he is teaching he is learning too. Now, I was satisfied. It was 2006-06-01T01:50:56-04:00 http://75.150.148.189/free-essay/Encouraging-Young-Workers-in-Today-s-Changing-Economy-28961.aspx A) What changes in economic policy would be introduced? An inward orientated strategy focus on self sufficiency. Self-sufficiency is important because being reliable on foreign imports is very risky because these imports may be affected by external influences, for example, if one of the trading countries where to be hit by famine or war, this suddenly affect the amount traded. Self sufficiency is achieved by promoting domestic production, by offering subsidies, such as the British agricultural policy, which hands out subsidies to farmers if the leave a certain percentage of there land ‘untouched.’ Rather than importing from foreign imports. The Government can install tariffs on imports to discourage foreign imports, by raising relative prices. When a country changes from an inward orientated to an outward orientated strategy different economic policies are introduced. The country focuses more on importing foreign goods. It does this for many reasons. Importing fills gaps in domestic markets. The good or service that is imported is not available or produced at a lower opportunity cost than it would be domestically, this means that the firms can offer the good or service at a cheaper price than the local firms and therefore be very competitive. The local government will employ tariffs (taxes on imports) on the imported goods or services. Tariffs protect the local business from large competition. Small scale firms in LDCs will not be able to compete with large firms from MDCs. One reason for deciding to use an outward orientated strategy is that the country must export to finance its imports. The country cannot import goods with its own currency, it must use foreign currency. By exporting goods it allows local firms to compete on a global scale instead of just domestically. This allows some firms and countries to exploit any monopolies may have. This will cause firms to expand which could lead to the firms being able to offer higher incomes leading to higher levels of savings leading to higher levels of investment leading to higher levels of growth which then brings us back to an increase in the levels of incomes. Apart from just competition it also promotes firms to be more efficient in production which could have the same knock-on affects. If a country does decide to become outward orientated then this increases the dependency for the country on foreign imports. The country then has less ability to support itself. This causes problems 2006-05-18T19:49:25-04:00 http://75.150.148.189/free-essay/A-Country-decides-to-change-from-an-inward-orientated-strate-28865.aspx Economic Growth What is meant by economic growth? Economic growth is an increase of the in the real level of output. It refers to an increase in a countries annual output of goods and services. The most common measure of this is G.D.P. Economic growth figures must be corrected for inflation. Nominal G.D.P. is not adjusted for inflation whereas real G.D.P. is. Economic growth is also a long-term expansion of the productive potential of the economy. Sustained economic growth should lead to an increase in real living standards and rising employment. Explain the differences between an economic recession and an economic boom. An economic recession and an economic boom are best described using the diagram of the economic cycle as shown below. There are four important stages. The slowdown towards the recession and the recovery towards a boom. They are both opposites to each other. A recession is a period when a country’s economy is less successful and more people become unemployed. Whilst a boom is the peak of a countries economy and it is at its most successful. We see a recession on the diagram when the real GDP goes down and not up. When it at the furthest down it is going to go and it goes back up, it is called the trough of recession. Whilst the boom is when GDP is at its highest it is going to go before it will drop. This is called the peak of the boom. Why is investment important to the UK economy? Investment is when money from profits made are used to buy products that aid production in order to increase the quality or quantity of the output. Investment is normally in new capital. This will increase output from normal and also mean that they would be getting more out than they were putting in. The UK economy at the moment is not as productive as the Japanese or the American economy. The Japanese invested loads of money into new modern capital after the World War 2. This is why they are doing well. Whilst American productivity is twice that of the UK. This is because the Americans had recently over time invested a lot into buying new capital to the point that they now have too much. The UK economy is suffering, as they have not spent much in recent years investing in capital. The capital they use now, are old and not as 2006-01-29T05:52:44-05:00 http://75.150.148.189/free-essay/Economic-Growth--28460.aspx [size=18:9e66fd82e7]Labour Issues in India - brief overview[/size:9e66fd82e7] Absenteeism and Labour Turnover For many industries, lack of trained labour force is a problem. However, these problems are compounded by the fact that there are multitudes of unemployed potential labourers who, however, do not have the adequate skills for the job. Additionally, many do not also have the means to market themselves, or to make themselves available for jobs. Hence, lack of availability of labour is not merely a demand-supply problem, it has deeper socio-economic roots that need to be looked at from various perspectives. However, in many organized sectors where the demand for labour has been effectively met, absenteeism and huge turnover of labourers bring about their own problems. In many cases, absenteeism is prevalent in PSUs and government owned organizations. Causes are many, and include unionism, lack of ownership and participation, availability of alternate employment, misuse of benefits and remuneration and sometimes, lack of effective management control. Women Employee Problems Since time immemorial and despite the vast cultural and historical richness of our country, women are still considered less capable than men where labour is concerned. Of course, the reasons are cultural and socio-economic. Firstly, women are not considered physically fit for labour, and are often relegated to menial tasks. This deprives them of adequate compensation. Secondly, physical activity continues beyond working hours, in the household, depriving them of rest. A sacrificial mindset also makes them susceptible to malnutrition and poor health, which again affects their livelihood. Therefore, it is hard for women to actually come out of this vicious cycle in which they are trapped, simply because of their gender. The challenge is to change the mindset of a society which still sees women labourers more as beasts of burden. However, there has been some progress which has been achieved with active government and NGO intervention. In many established companies and industries in the private sector, gender is not a consideration for employment and is neither are women employees and labourers discriminated against for pay or opportunity. In fact, in socially aware business houses like the Tatas, gender equality is an important part of their triple-bottom line concept, which enshrines equal opportunity for all, irrespective of caste, creed, gender, religion, nationality or ethnicity. Despite these minor but significant positive stories, women continue to receive an unequal deal in the labour sector. Child labour According to the 1991 Census, the number of working children in the country was of 2006-01-22T08:08:30-05:00 http://75.150.148.189/free-essay/Labour-Issues-in-India-Brief-Description-28450.aspx Macroeconomic Policy Recommendations; Fiscal policies: taxation The means by which a government adjusts its level of spending in order to monitor and influence a nation’s economy it’s known as Fiscal policy. The federal government’s chief source of funds to cover its expenses is the income tax on individuals, which in 1999 brought 48% of total federal revenues. An argument can be made about the use of taxes as a means to influence the economy. Hence the reason most debates about income tax today as a macroeconomic policy revolve around three issues: (1) the appropriate overall level of taxation; (2) how graduate, or “progressive” the tax should be; and (3) the extent to which the tax should be used to promote social objectives. In fact, some economists-democrats and republicans- have suggested that the economy would fare better if the government would eliminate the income tax altogether and replace it with a consumption tax, taxing people on what they spend rather than what they earn. As a result, we will take a look at consumption tax as a macroeconomic policy to stimulate the current U.S. economy. On an interview conducted by a news journalist quoting Alan Greenspan, the Federal Reserve Chairman, pointing out the merits of a “consumption tax,” as well as the challenges of setting up such a tax. Greenspan added that, “the consumption taxes could take the form of national retail sales taxes or a value added tax, imposed on the increased value of a good or service at each stage of manufacture and distribution and ultimately passed on to the customer” (fox news online). A consumption tax—also known as an expenditures tax, consumed-income tax, or cash-flow tax—is a tax on what people spend instead of what they earn. Moreover, most of the political debate over a consumption tax has centered on whether the United States should adopt a value-added tax (VAT) similar to the ones that European countries have. While a VAT definitely is a tax on consumption, it is not the kind that most consumption-tax advocates prefer. What's more, the debate over whether to add a VAT to the U.S. tax code has obscured the more basic issue of whether to tax income or consumption. Our contention here is to tax consumption as a means to simplify taxes and stimulate the U.S. economy. First, proponents of a consumption tax argue that it is superior to an 2006-01-12T00:46:50-05:00 http://75.150.148.189/free-essay/Fiscal-Policies-and-Taxation-28418.aspx The Minimum Wage and Why We Should Leave it Alone When was the last time a "value" meal from McDonald, let alone any other fast food chain, did not cost five dollars or more? When was the last time premium gas was under a dollar a gallon? It's hard to remember, isn't it? Wouldn't it be great if everything cost a nickel, like back in the good ol' days? According to the laws of economics, it's not logical for things to have gotten more expensive competition should drive prices down. Then why have prices continued to rise over the years? The continuing demand of more money for less work has forced Uncle Sam to raise the minimum wage innumerable times in the last half century, which results in higher prices for the rest of us. Another raise in the minimum wage would, as all the others before it, raise prices for consumers, which would again result in another demand for a raise in the minimum wage. It's a viscous cycle that must be stopped before it loses control. Not only does a raise in minimum wage result in a raise in the cost of living, it also causes the dismissal of hardworking people who are happy with their current income. When the firing axe starts to fall, seniority often determines who goes and who stays. The more a single employee costs a business an hour, the fewer employees the business can afford to employee an hour. This results in the dismissal of employees to compensate for a raise in labor costs, which creates a smaller staff, which results in slipshod service. Although most reasonable people would rather pay more for better service, the plain fact of the matter is that the service hasn't really gotten any better. The service is better than it was when there weren't enough employees so people assume the service itself has gotten better, while the truth is that the service is just as haphazard as before. The laborers are simply replaced because of a need for more employees, more often than not by people who have never worked in those positions before. By having a staff that is constantly fluctuating, the business hurts itself the service is hurt because the new employees are in need of training, and in the end it is us, the consumers, who feel the real pain The pain we experience is that 2005-12-22T11:18:33-05:00 http://75.150.148.189/free-essay/Against-Raising-the-Minimum-Wage-28202.aspx World Trade Organization (WTO), international body that promotes and enforces the provisions of trade laws and regulations. The World Trade Organization has the authority to administer and police new and existing free trade agreements, to oversee world trade practices, and to settle trade disputes among member states. The WTO was established in 1994 when the members of the General Agreement on Tariffs and Trade (GATT), a treaty and international trade organization, signed a new trade pact. The WTO was created to replace GATT. The WTO began operation on January 1, 1995. GATT and the WTO coexisted until December 1995, when the members of GATT met for the last time. Although the WTO replaced GATT, the trade agreements established by GATT in 1994 are part of the WTO agreement. However, the WTO has a significantly broader scope than GATT. GATT regulated trade in merchandise goods. The WTO expanded the GATT agreement to include trade in services, such as international telephone service, and protections for intellectual property—that is, creative works that can be protected legally, such as sound recordings and computer programs. The WTO is also a formally structured organization whose rules are legally binding on its member states. The organization provides a framework for international trade law. Members can refer trade disputes to the WTO where a dispute panel composed of WTO officials serves as arbitrator. Members can appeal this panel’s rulings to a WTO appellate body whose decisions are final. Disputes must be resolved within the time limits set by WTO rules. All of the 128 nations that were contracting parties to the new GATT pact at the end of 1994 became members of the WTO upon ratifying the GATT pact. By 2003 the WTO had 146 members. The WTO is based in Geneva, Switzerland, and is controlled by a General Council made up of member states’ ambassadors who also serve on various subsidiary and specialist committees. The ministerial conference, which meets every two years and appoints the WTO’s director-general, oversees the General Council. Since its creation, the WTO has attracted criticism from those concerned about free trade and economic globalization. Opponents of the WTO argue that the organization is too powerful because it can declare the laws and regulations of sovereign nations in violation of trade rules, in effect pressuring nations to change these laws. Critics also charge that WTO trade rules do not sufficiently protect workers’ rights, the environment, or human 2005-12-13T00:00:22-05:00 http://75.150.148.189/free-essay/World-Trade-Organization-WTO-28180.aspx Economic growth is a necessary but not sufficient condition of economic development. There is no single definition that encompasses all the aspects of economic development. The most comprehensive definition perhaps of economic development is the one given by Todaro: ‘Development is not purely an economic phenomenon but rather a multi – dimensional process involving reorganization and re orientation of the entire economic and social system. Development is a process of improving the quality of all human lives with three equally important aspects. These are: 1. Raising peoples’ living levels, i.e. incomes and consumption, levels of food, medical services, education through relevant growth processes. 2. Creating conditions conducive to the growth of peoples’ self esteem through the establishment of social, political and economic systems and institutions which promote human dignity and respect. 3. Increasing peoples’ freedom to choose by enlarging the range of their choice variables.’ Economic growth may be defined as an increase in a country's ability to produce goods and services. Economic growth merely refers to an increase in the real Gross Domestic Product, or GDP per capita over a period of time. It is natural to be misled by the idea that economic growth is the key to economic development and perhaps a condition of development itself, but development is more than simply increasing economic output i.e. GDP per capita. It is a wider concept than economic growth. A country's economy may experience real growth of GDP with no economic development taking place. Nevertheless, wider more meaningful indicators of development are often correlated with GDP per capita, such as The Physical Quality of Life Index, Human Development Index, Human Poverty Index and the Human Suffering Index, which help us include the non-monetary factors of development. Amartya Sen defines economic development in terms of personal freedom, freedom to choose from a range of options. While economic growth may lead to an increase in the purchasing power of people, if the country has a repressed economy, there is lack of choice and hence personal freedom in restricted. Hence once again growth has taken place without any development. While economic growth may result in an improvement in the standard of living of a relatively small proportion of the population whilst the majority of the population remains poor. It is how the economic growth is distributed amongst the population that determines the level of development. Taking into consideration the trickle-down theory of 2005-12-01T07:10:50-05:00 http://75.150.148.189/free-essay/Is-Economic-Growth-Necessary-for-Economic-Development-28148.aspx Composite Indicators of Poverty and Living Standards: Development is more than simply increasing economic output i.e.GDP per capita. It is a wider concept than economic growth. Even if a country's economy experiences real growth of GDP it does not mean that economic development is taking place. Nevertheless, wider more meaningful indicators of development are often correlated with GDP per capita. The Physical Quality of Life Index (PQLI) In this index three single indicators were combined together; life expectancy at birth, infant mortality and literacy rates. For each indicator the performance of individual countries were rated on a scale of 1 to 100 where 1 represents the worst and 100 the best. There was a correlation with the GDP per capita however it was not as close as might be expected. The Human Development Index (HDI) This index, produced by the United Nations Development Programme (UNDP), includes indicators of longevity, knowledge and income. It combines life expectancy (at birth), an average of literacy rates and number of years of education and GDP expressed in terms of its purchasing power in the domestic economy. Some countries have shown rapid economic growth but have not shown correspondingly high HDI index. The Human Suffering Index (HIS) The index ranks people according to the level of human suffering based on 10 measures • Life expectancy • Daily calorie supply • Access to clean water • Infant immunisation • Secondary school enrolment • Per capita GDP • Rate of inflation • Communications • Technology • Political freedom • Civil rights Human Poverty Index The United Nations defines poverty as the "denial of choices and opportunities most basic to human development-to lead a long healthy, creative life and enjoy a decent standard of living, freedom, self esteem and the respect of others" Whilst the Human Development Index measures the progress of the country in achieving development the Human Poverty Index is more aimed at reflecting on how the progress is distributed and the level of deprivation and poverty being experienced in the country. There are two HPI indices most commonly used. HPI-1 is a measure of absolute poverty used in Less Developed Countries and HPI-2 is a measure of relative poverty used in More Developed Countries. HPI-1 measures poverty in Less Developed Countries. The variables used are: • the percentage of people expected to die before age 40 • the percentage of adults who are illiterate • deprivation in overall economic provisioning-public and private-reflected by the percentage of people without access to health services and safe water and the percentage of underweight children 2005-11-24T11:27:52-05:00 http://75.150.148.189/free-essay/Composite-Indicators-of-Poverty-and-Living-Standards-28130.aspx Explain the main differences between a command economy and a free market economy. An economy may be defined as the state of a country or region in terms of the production and consumption of goods and services, and the supply of money. A planned economy is an economic system in which economic decisions are made by centralized planners, who determine what sorts of goods and services to produce, how they are to be priced, and allocated. Since most known planned economies rely on plans implemented by the way of command, they have become widely known as command economies. These are generally associated with socialist or communist economic systems. A free market economy is an economy in which the allocation for resources is determined only by their supply and the demand for them. Every economic system is based on a different philosophical stand than the others. These differences are caused by the different responses that each economy has to the problem of scarcity. However, economies don’t always work as their theoretical models and take some components from each system to develop an economy that works. Thus, economies are graded as being free market economies or planned economies using a tool called the economic spectrum, where the planned economies are placed on the left and the free market economies on the right. Below is the spectrum along with the different names that each economy may be known as. Centrally Planned Mixed Economy Free Market Economy 2005-11-24T11:27:10-05:00 http://75.150.148.189/free-essay/Free-Market-Vs-Command-Economy-28129.aspx ‘Economic growth is a necessary but not sufficient condition of economic development.’ There is no single definition that encompasses all the aspects of economic development. The most comprehensive definition perhaps of economic development is the one given by Todaro: ‘Development is not purely an economic phenomenon but rather a multi – dimensional process involving reorganization and re orientation of the entire economic and social system. Development is a process of improving the quality of all human lives with three equally important aspects. These are: 1. Raising peoples’ living levels, i.e. incomes and consumption, levels of food, medical services, education through relevant growth processes. 2. Creating conditions conducive to the growth of peoples’ self esteem through the establishment of social, political and economic systems and institutions which promote human dignity and respect. 3. Increasing peoples’ freedom to choose by enlarging the range of their choice variables.’ Economic growth may be defined as an increase in a country's ability to produce goods and services. Economic growth merely refers to an increase in the real Gross Domestic Product, or GDP per capita over a period of time. It is natural to be misled by the idea that economic growth is the key to economic development and perhaps a condition of development itself, but development is more than simply increasing economic output i.e. GDP per capita. It is a wider concept than economic growth. A country's economy may experience real growth of GDP with no economic development taking place. Nevertheless, wider more meaningful indicators of development are often correlated with GDP per capita, such as The Physical Quality of Life Index, Human Development Index, Human Poverty Index and the Human Suffering Index, which help us include the non-monetary factors of development. Amartya Sen defines economic development in terms of personal freedom, freedom to choose from a range of options. While economic growth may lead to an increase in the purchasing power of people, if the country has a repressed economy, there is lack of choice and hence personal freedom in restricted. Hence once again growth has taken place without any development. While economic growth may result in an improvement in the standard of living of a relatively small proportion of the population whilst the majority of the population remains poor. It is how the economic growth is distributed amongst the population that determines the level of development. Taking into consideration the trickle-down theory of economics by Lewis, if the growth in economy is not sufficient 2005-11-24T11:23:54-05:00 http://75.150.148.189/free-essay/Economic-Growth-vs-Economic-Development-28127.aspx 1. Many countries use forms of or are considering road pricing (e.g. City-center of Singapore, Autostrada in Italy) to ease congestion. What is the economic rationale behind these measures? In an economy, people will make micro economic decisions. Above report is a mixed economy example, government and the private sector jointly solves this problem, (markets). The key problem is the loss of productivity. Slow travelling over a motorway or standing still, give a negative slope on productivity, the opportunity costs are high. To solve this time related problem of ‘excessive’ road use or in terms; Infinite demand of road usage, the idea is to charge for road usage, (prices). Does that help? It depends on several factors. As we can see in the above-mentioned report, we can see a negative relationship between price and road use; the higher the price of the road use, the less traffic that will use that road. What are the economic frameworks behind the strategy of road pricing? a. Infinite wants and finite resources: Infinite wants is a term to express the limitless desires to consume goods and services. The problem is that the capacity of the road is finite. I.e., one of the desires of a car owner is to use the motorway, at any hour he wants, in terms ‘Infinite wants’. This situation will persist as long as that does not affect their finite resources. By charging for motorway use at specific hours, users will have to make financial choices. Moreover, by doing that, the rational is that one has to look for competing offers or look for lower charged times, that is an opportunity. b. Opportunity costs: I.e. avoiding the charged motorway by driving the ‘long and slow way’ via small streets will cost extra time. Also with taking, a bus or driving on low priced hours. Users want to minimize their opportunity costs, for the reason of their finite resources, (at least a given time). 2. What are the different elasticities that influence demand for road usage in a mixed market system? a. Name different kinds of elasticities for demand and their underlying economic reasons with respect to road pricing. b. Provide a reasoned assessment of the degree of elasticity or inelasticity of these elasticities. 2005-11-11T16:14:31-05:00 http://75.150.148.189/free-essay/Road-Pricing--28098.aspx Intellect Economics - Increasing Returns Introduction Our understanding of how markets and businesses is an understanding based squarely upon the assumption of diminishing returns: products or companies that get ahead in a market eventually run into limitations, so that a predictable equilibrium of prices and market shares is reached. The theory was in rough measure valid for the bulk-processing, smokestack economy of Marshall’s day. And it still thrives in today’s economics textbooks. But steadily and continuously in this century, Western economies have undergone a transformation from bulk-material manufacturing to design and use of technology—from processing of resources to processing of information, from application of raw energy to application of ideas. As this shift has taken place, the underlying mechanisms that determine economic behavior have shifted from ones of diminishing to ones of increasing returns. Increasing returns are the tendency for that which is ahead to get farther ahead, for that which loses advantage to lose further advantage. They are mechanisms of positive feedback that operate—within markets, businesses, and industries—to reinforce that which gains success or aggravate that which suffers loss. Increasing returns generate not equilibrium but instability: If a product or a company or a technology—one of many competing in a market—gets ahead by chance or clever strategy, increasing returns can magnify this advantage, and the product or company or technology can go on to lock in the market. More than causing products to become standards, increasing returns cause businesses to work differently, and they stand many of our notions of how business operates on their head. Mechanisms of increasing returns exist alongside those of diminishing returns in all industries. But roughly peaking, diminishing returns hold sway in the traditional part of the economy—the processing industries. Increasing returns reign in the newer part—the knowledge-based industries. Modern economies have therefore become divided into two interrelated, intertwined parts—two worlds of business—corresponding to the two types of returns. The two worlds have different economics. They differ in behavior, style, and culture. They call for different management techniques, different strategies, different codes of government regulation. They call for different understandings. Alfred Marshall and Classic Economics (Diminishing Returns) In order to understand the term “Increasing Returns”, first we must define “Diminishing Returns” . In Marshall’s world of 1880s and 1890s, there was bulk production which consisted of iron cores,mining,coffee planting, lumber and coal production, mostly depended on resources rather 2005-08-25T06:24:48-04:00 http://75.150.148.189/free-essay/Intellect-Economics-Increasing-Returns-27771.aspx Monetary and Fiscal Policy The Monetary and Fiscal Policies, although controlled by two different organizations, are the ways that our economy is kept under control. Both policies have their strengths and weaknesses, some situations favoring use of both policies, but most of the time, only one is necessary. The monetary policy is the act of regulating the money supply by the Federal Reserve Board of Governors, currently headed by Alan Greenspan. One of the main responsibilities of the Federal Reserve System is to regulate the money supply so as to keep production, prices, and employment stable. The "Fed" has three tools to manipulate the money supply. They are the reserve requirement, open market operations, and the discount rate. The most powerful tool available is the reserve requirement. The reserve requirement is the percentage of money that the bank is not allowed to loan out. If it is lowered, banks are required to keep less money, and so more money is put out into circulation (theoretically). If it is raised, then banks may have to collect on some loans to meet the new reserve requirement. The tool known as open market operations influences money and credit operations by buying and selling of government securities on the open market. This is used to control overall money supply. If the Fed believes there is not enough money in circulation, then they will buy the securities from member banks. If the Fed believes there is too much money in the economy, they will sell the securities back to the banks. Because it is easier to make gradual changes in the supply of money, open market operations are use more regularly than monetary policy. When member banks want to raise money, they can borrow from Federal Reserve Banks. Just like other loans, there is an interest rate, or a discount rate, the third tool of the monetary policy. If the discount rate is high, then fewer banks will be inclined to borrow, and if it is low, more banks will (theoretically) borrow from the reserve banks. The discount rate is not used as frequently as it was in the past, but it does serve as an indicator to private bankers of the intentions of the Fed to constrict or enlarge the money supply. The monetary policy is a good way to influence the money supply, but it does have its weaknesses. One weakness is that tight money policy works 2005-08-15T08:42:53-04:00 http://75.150.148.189/free-essay/An-Overview-of-Monetary-and-Fiscal-Policy-27676.aspx Keynesian Economics versus Supply Side Economics Two controversial economic policies are Keynesian economics and Supply Side economics. They represent opposite sides of the economic policy spectrum and were introduced at opposite ends of the 20th century, yet still are the most famous for their effects on the economy of the United States when they were used. The founder of Keynesian economic theory was John Maynard Keynes. He made many great accomplishments during his time and probably his greatest was what he did for America in its hour of need. During the 1920's, the U.S. experienced a stock market crash of enormous proportions which crippled the economy for years. Keynes knew that to recover as soon as possible, the government had to intervene and put a decrease on taxes along with an increase in spending. By putting more money into the economy and allowing more Americans to keep what they earned, the economy soon recovered and once again became prosperous. Keynes ideas were very radical at the time, and Keynes was called a socialist in disguise. Keynes was not a socialist, he just wanted to make sure that the people had enough money to invest and help the economy along. As far as stressing extremes, Keynesian economics pushed for a "happy medium" where output and prices are constant, and there is no surplus in supply, but also no deficit. Supply Side economics emphasized the supply of goods and services. Supply Side economics supports higher taxes and less government spending to help economy. Unfortunately, the Supply Side theory was applied in excess during a period in which it was not completely necessary. The Supply Side theory, also known as Reganomics, was initiated during the Regan administration. During the 1970's, the state and local governments increased sales and excise taxes. These taxes were passed from business to business and finally to the customer, resulting in higher prices. Along with raised taxes for the middle and lower classes, this effect was compounded because there was little incentive to work if even more was going to be taxed. People were also reluctant to put money into savings accounts or stocks because the interest dividends were highly taxed. There was also too much protection of business by the government which was inefficient and this also ran up costs, and one thing the Supply Side theory was quite good at was reinforcing inflation. The two opposites of the Supply Side and Keynes' 2005-08-15T08:40:20-04:00 http://75.150.148.189/free-essay/Keynesian-Economics-vs_-Supply-Side-Economics-27673.aspx Marginal Benefit / Cost and Scarcity Paper Define the concept of scarcity: Scarcity: The goods available are too few to satisfy individuals' desires. Scarcity is a central concept in economics. Resources are scarce if any individual would prefer to have more of that good or service than they already have. Most goods and services are scarce - those that are not are known as free goods. Where goods are scarce it is necessary for society to make choices as to how they are allocated and used. Economists study (among other things) how societies perform the optimal allocation of these resources. For example, we may all want to own gold jewelry. However, the amount of gold available is limited, so it is necessary to make choices as to how it is allocated. In a market economy, this is achieved by trade. Individuals trade resources between themselves to reallocate resources to where they are most wanted. In a smoothly operating market system, the rate of exchange between different resources or price will adjust so that demand is equal to supply. One of the roles of the economist is to discover the relationship between demand and supply and develop mechanisms (such as pricing, incentives, or penalties) to achieve an optimal outcome (in terms of consumer welfare) between supply and demand. "Substantives" economists and economic anthropologists have argued that "scarcity" is a social construct and not a universal. Certain intangible goods are likely to remain scarce by definition or by design; examples include awards generated by honors systems, fame, and membership of elites. These things are said to have scarcity value; that is to say, all or most of their value is derived from their scarcity. Define the concepts of marginal benefit / marginal cost. What is the relationship between marginal benefit / cost and scarcity? Marginal benefit is the benefit a person receives from consuming one more unit of a good or service. It is measured as the maximum amount that a person is willing to pay for one more unit of the good or service. Examples: Suppose that you see three movies a week. The maximum amount that you are willing to pay to see the first movie is $10, to see the second movie is $8, and to see the third movie is $6. The marginal benefit of the first movie is $10, of the second movie is $8, and of the third 2005-08-01T07:45:43-04:00 http://75.150.148.189/free-essay/Marginal-Benefit-Cost-and-Scarcity-Paper-27511.aspx Macroeconomic Theory as it Relates to the Oil Crisis Essay Macroeconomics is the study of the economy as a whole, which includes inflation, unemployment, business cycles, and growth (Colander, 14). In today's society, Americans rely on having the option to have multiple service providers for their home or office. Several businesses especially those who work nationally or internationally with other businesses, try to find the inexpensive and new innovative ways to reduce cost. In take of the Recent Oil Crisis - Oil is the major source of energy worldwide and it is expected to remain so over the next few decades. As new technology is being developed our demand for oil is becoming crucial, oil is the major source of energy worldwide and it is expected to remain so over the next few decades. Crude oil has become the main "raw" material in every economy no matter if it has not developed or it is in the developing process. The changes in the prices of the crude oil are making positive and negative implications on every economy. When these changes of prices are severe ones, one might easily conclude that an economy is going to face problems such as unfavorable supply shocks, or according to the theory adverse supply shocks. When these kinds of problem arise in the world oil market, it is usually described as a world oil crisis. The world has witnessed two major oil crises and is facing an additional one at the moment. As in the two previous oil shocks in the world the same main problem still exists that the economy is faced during an oil crisis is the adverse supply shock. Adverse supply shocks are unexpected events that reduce aggregate supply and therefore the output decreases and prices increase. In the language of economy we call this stagflation. Furthermore, I will refer to the organization that has caused the three supply shocks so far. The Organization of Petroleum Exporting Countries, (OPEC) has the power to control the world oil prices by its reduction in the world oil supply. This is what caused the oil crisis in the early 70's (Mankiw 252). OPEC's reduction in the supply of oil had doubled the world oil price instantly which caused stagflation with all oil importing country. In addition I will refer to the US statistic about the oil crisis that took place in the early 70's. In the year of 2005-08-01T07:44:41-04:00 http://75.150.148.189/free-essay/Macroeconomic-Theory-Oil-Crisis-Essay-27510.aspx Economic Indicators used to project economic policy When one speaks of the economy they should speak of it as if it were an animate object. An economy may healthy, productive or efficient. Likewise, an economy may be weak, slow or inefficient. The question is how do we know how to classify our economy? GNP -GROSS NATIONAL PRODUCT. Economists have devised numerous statistics designed to ascertain the overall health of our economy. Historically, the most quoted measure of economic activity is what is called Gross National Product (GNP). The Gross National Product (GNP) is a nation's total output of goods and services produced BY a country in one year. In obtaining the value of the GNP, only the final value of a product is counted (e.g. homes but not the construction materials they were built with). The three major components of GNP are consumer purchases, government spending, private investment and exports. The Gross Domestic Product (GDP) is the monetary value of all goods and services performed in a nation in one year. GDP measures the economic strength of a nation. It is computed by multiplying the quantity of all goods and services by its price. When this is done for all three categories, Consumer spending, Government Spending and Investments, the results are added to give us the GDP. In the last several years GDP has gained favor as a more accurate barometer of the state of the economy. With growing globalization our economy is increasingly reliant on goods we produce beyond our national borders. While GNP does not calculate this, GDP does. Though the GDP and GNP are the most widely used system of determining a nation's economic performance, they are certainly not perfect. There are certain factors within the economy that keep the GDP and GNP from being the most reliable measurements. The first factors are reporting delays. Because the reporting process on a nation's monetary flow is so difficult to document, GDP estimates are made quarterly. The figures are then revised for months after that, so it takes a while to discover how the economy actually performed. Thus there is a disparity between the actual GDP and the reported GDP. The second factor is the composition of output. Generally, increases in the GDP insinuate that people had jobs and earned an income. However, the GDP alone does not tell the composition of the output. An increase in a certain amount of dollars may 2005-08-01T07:43:36-04:00 http://75.150.148.189/free-essay/Economic-Indicators-Used-to-Project-Economic-Policy-27509.aspx What is monetary policy? Essay on Monetary Policy Monetary policy is one of the tools that a national Government uses to influence its economy. Using its monetary authority to control the supply and availability of money, a government attempts to influence the overall level of economic activity in line with its political objectives. Usually this goal is "macroeconomic stability" - low unemployment, low inflation, economic growth, and a balance of external payments. Monetary policy is usually administered by a Government appointed "Central Bank", the Bank of Canada and the Federal Reserve Bank in the United States. According to the Encarta the definition of monetary policy is the following economic principles and programs adopted by a government that manage the growth of its money supply, the availability of credit, and interest rates. In the United States, the Federal Reserve Board determines monetary policy. The U.S. monetary policy affects many financial decisions for people and, since it is the biggest economy in the world, it also impacts other economies in other countries. The object of the system is to influence factors like inflation, economic output, and employment by affecting demand (the public's willingness to spend on goods and services). The system is conducted by the Federal Reserve System and it influences demand mainly by raising and lowering short-term interest rates. How is the Federal Reserve Structured? The Federal Reserve (the nation's central bank), called the fed for short, was established by congress in 1913 and consists of the Board of Governors in Washington, D.C., and twelve Federal Reserve District Banks. Although the fed is accountable to congress and structured by law, it is totally separate from the departments that manage the country's spending decisions. The governors are appointed by the president for terms of 14 years. The appointments are staggered so no one single president could load the board with his own people. Each reserve president is appointed every five years by the Board of Directors. Along with these measures, the fed is independent because it meets its operating expenses primarily from interest earnings on its portfolio of securities. Although the system works independently from congress, it still conforms to laws and comes under review and audit from the government. Fed officials report regularly to congress and meet with administration officials to discuss their programs. Also, eight times a year the Board of Governors, the President of The Bank of New York, and four 2005-08-01T07:42:08-04:00 http://75.150.148.189/free-essay/Monetary-Policy-Explanation-27508.aspx What do you see as the main reasons for the present economic slowdown in the US? For the last ten years the US economy has experienced an extraordinary long boom and the “Goldilocks economy” seemed to last forever. But the economic situation in the US has changed. Share prices plummeted, consumers are becoming more and more pessimistic about the economic outlook and the chances of a prolonged downturn and a full – fledged recession are rising. For many investors and Americans it was a rude awakening. Now they wonder what caused the economic slowdown and what are the main reasons for the present economic downturn in the US. If we take look at the bible, there is written down that seven years of plenty were followed by seven years of lean. That means that what goes up must come down; that is the law of the business cycle. For the last 50 years, the previous recessions have been triggered off by a familiar process. First there were several years of expansion, then the consumer price inflation built up and as a consequence the Fed raised interest rates what squeezed demand. Then the companies had to cut production and the economy slowed down and sometimes even moved into a recession. But this time it is different. This business cycle is different from those throughout the post-war era. This time the economy did not slow down because of price inflation and the Fed did not force interest rates much higher. The economy weakened so dramatically because companies quickly cut production and employment as disappointing sales led to an involuntary inventory accumulation. The high inventory built-up resulted from a drop in consumer spending. This could be explained by the consumer fatigue. During the long boom nearly everybody bought the new high – tech equipment, computers and DVDs, and now the market is saturated. The computer industry has not convinced consumers that the new computers do much that their PCs at home cannot. As a consequence, companies had to cut production to reduce their high inventories and therefore many workers were made redundant and this led to a further decline in consumer spending. Profit warnings from companies, especially in the high – tech sector, were the main reason why many stocks nosedived. The tech – laden NASDAQ was hit hardest and plunged about 60% since its peak in 2000. As so many Americans own stocks in times of the 2005-07-25T07:05:23-04:00 http://75.150.148.189/free-essay/Economic-Slowdown--27377.aspx Alan Greenspan's Impact on the Economy Alan Greenspan has transformed his role from a dictator of Economic Advisors to a participative leader of the Federal Reserve. Integrity, transformational leadership, and CII Leadership style demonstrate his leadership. These factors among others helped him to achieve the role of being one of the most powerful men in America, Federal Reserve Chairman. In the process of becoming chairman, Greenspan has become one of the most influential leaders in the world. Traits that show this influence are his integrity, intelligence, and self-confidence. Perhaps his most important characteristic, Greenspan’s integrity has pushed him to become the leader he is today. An example of this came in 1974 when he refused to take the job of Chairman of Economic Advisors. Greenspan was convinced that he could not make it in government because he did not always agree with policy. Greenspan later chose to accept the position after he realized that he could make a difference and bring truth to the government. Had it not been for his integrity, Greenspan would have declined to take the position. See Passage 1. After becoming Chairman of the Council of Economic Advisors, he also demonstrated his integrity by discussing problems without regard for policy or the conventional way of thinking. For example, he spoke up against the Nixon administration for over estimating the GNP in 1971. Eventually the budget was proved to be inflated as Greenspan had predicted. He also criticized the president’s wage and price controls because he believed that it would have had a negative effect on the American people. Greenspan’s relentless pursuit for truth and the well being of the American people has characterized his integrity and leadership. Despite his great leadership traits, Alan Greenspan has become known for his transformational leadership. As Federal Reserve Chairman, he is outspoken and courageous with his opinions. His ability to deal with complexity and uncertainty is trademark of his transformational leadership style and intelligence. As Greenspan progressed, he was able to apply his leadership and intellectual ability to the real world. An example of this came in 1975 when New York City faced bankruptcy. See Passage 2. Greenspan devised a solution for this complex problem in way that bailed out the city and still earned interest from borrowers. Furthermore, he continues to learn from this experience and others like it to further develop himself as a decision maker. This is necessary because 2005-07-24T04:53:17-04:00 http://75.150.148.189/free-essay/Alan-Greenspan-s-Impact-on-the-Economy-27358.aspx Economic Development of Hawaii Hawaii, with an area of 28,313 sq. km (10,932 sq. mi.), is the 43rd largest state in the U.S.; 6.9% of the land is owned by the federal government. It consists mainly of the Hawaiian Islands, eight main islands and 124 islets, reefs, and shoals. The major islands in order of size are Hawaii, Maui, Oahu, Kauai, Molokai, Lanai, Nihau, and Kahoolawe. Population growth has increased by 80,000 persons over the past five years. Demographics show a large number of Hispanic origin: Asian Hispanics are the most populated with white Hispanic and Asian non-Hispanic following. Hawaii's economy has been long dominated by plantation agriculture and military spending. As agriculture has declined in importance, the economy has diversified to encompass a large tourist business and a growing manufacturing industry. Hawaii's economy has changed drastically since statehood. In 1958, defense, sugar, and pineapple were the primary economic activities, accounting for 40% of Gross State Product (GSP). In contrast, visitor-related expenditures stood at just over 4% of Hawaii's GSP prior to statehood. Today the positions are reversed; sugar and pineapple constitute about 1% of GSP, defense accounts for just under 11%, while visitor-related spending comes close to 24% of Hawaii's GSP. The movement toward a service- and trade-based economy becomes even more apparent when considering the distribution of Hawaii's jobs across sectors. The share of the economy's jobs accounted for by manufacturing and agriculture have declined steadily since 1959 and each currently makes up less than 4% of total jobs in the economy. At the same time, the shares of jobs in wholesale and retail trade and in services have risen, ezding at about 23% and 28%, respectively. Since 1991, Hawaii's economy has suffered from rising rates of unemployment. This ezds in marked contrast to the period 1980 to 1993, when the state enjoyed very low unemployment rates relative to the nation as a whole. But by 1994 the recession had raised Hawaii's unemployment rate to the national average (6.1%) for the first time in 15 years. In 1995, the state's unemployment rate improved slightly in the first eleven months of the year to 5.4 percent, a 0.6 percentage point decline from the first eleven months of 1994. Despite the lower unemployment rate, the total number of wage and salary jobs declined by 0.6 percent during the first eleven months of 1995. This was due in part to a fall 2005-05-27T04:58:56-04:00 http://75.150.148.189/free-essay/Economic-Development-of-Hawaii-26757.aspx Modern Economic Theories: Keynesian and Supply Side Two controversial economic policies are Keynesian economics and Supply Side economics. They represent opposite sides of the economic policy spectrum and were introduced at opposite ends of the 20th century, yet still are the most famous for their effects on the economy of the United States when they were used. The founder of Keynesian economic theory was John Maynard Keynes. He made many great accomplishments during his time and probably his greatest was what he did for America in its hour of need. During the 1920's, the U.S. experienced a stock market crash of enormous proportions which crippled the economy for years. Keynes knew that to recover as soon as possible, the government had to intervene and put a decrease on taxes along with an increase in spending. By putting more money into the economy and allowing more Americans to keep what they earned, the economy soon recovered and once again became prosperous. Keynes ideas were very radical at the time, and Keynes was called a socialist in disguise. Keynes was not a socialist, he just wanted to make sure that the people had enough money to invest and help the economy along. As far as stressing extremes, Keynesian economics pushed for a "happy medium" where output and prices are conezt, and there is no surplus in supply, but also no deficit. Supply Side economics emphasized the supply of goods and services. Supply Side economics supports higher taxes and less government spending to help economy. Unfortunately, the Supply Side theory was applied in excess during a period in which it was not completely necessary. The Supply Side theory, also known as Reganomics, was initiated during the Regan administration. During the 1970's, the state and local governments increased sales and excise taxes. These taxes were passed from business to business and finally to the customer, resulting in higher prices. Along with raised taxes for the middle and lower classes, this effect was compounded because there was little incentive to work if even more was going to be taxed. People were also reluctant to put money into savings accounts or stocks because the interest dividends were highly taxed. There was also too much protection of business by the government which was inefficient and this also ran up costs, and one thing the Supply Side theory was quite good at was reinforcing inflation. The two opposites of the Supply Side and 2005-05-27T04:58:04-04:00 http://75.150.148.189/free-essay/Modern-Economic-Theories-Keynesian-and-Supply-Side-26756.aspx U.S. Budget Deficit - Good or Bad? "Spending financed not by current tax receipts, but by borrowing or drawing upon past tax reserves." , Is it a good idea? Why does the U.S. run a deficit? Since 1980 the deficit has grown enormously. Some say its a bad thing, and predict impending doom, others say it is a safe and stable necessity to maintain a healthy economy. When the U.S. government came into existence and for about a 150 years thereafter the government managed to keep a balanced budget. The only times a budget deficit existed during these first 150 years were in times of war or other catastrophic events. The Government, for inezce, generated deficits during the War of 1812, the recession of 1837, the Civil War, the depression of the 1890s, and World War I. However, as soon as the war ended the deficit would be eliminated and the economy which was much larger than the amounted debt would quickly absorb it. The last time the budget ran a surplus was in 1969 during Nixon's presidency. Budget deficits have grown larger and more frequent in the last half-century. In the 1980s they soared to record levels. The Government cut income tax rates, greatly increased defense spending, and didn't cut domestic spending enough to make up the difference. Also, the deep recession of the early 1980s reduced revenues, raising the deficit and forcing the Government to spend much more on paying interest for the national debt at a time when interest rates were high. As a result, the national debt grew in size after 1980. It grew from $709 billion to $3.6 trillion in 1990, only one decade later. Increase of National Debt Since 1980 Month Amount -------------------------------------------- 12/31/1980 $930,210,000,000.00 * 12/31/1981 $1,028,729,000,000.00 * 12/31/1982 $1,197,073,000,000.00 * 12/31/1983 $1,410,702,000,000.00 * 12/31/1984 $1,662,966,000,000.00 * 12/31/1985 $1,945,941,616,459.88 12/31/1986 $2,214,834,532,586.43 12/31/1987 $2,431,715,264,976.86 12/30/1988 $2,684,391,916,571.41 12/29/1989 $2,952,994,244,624.71 12/31/1990 $3,364,820,230,276.86 12/31/1991 $3,801,698,272,862.02 12/31/1992 $4,177,009,244,468.77 12/31/1993 $4,535,687,054,406.14 12/30/1994 $4,800,149,946,143.75 10/31/1995 $4,985,262,110,021.06 11/30/1995 $4,989,329,926,644.31 12/29/1995 $4,988,664,979,014.54 01/31/1996 $4,987,436,358,165.20 02/29/1996 $5,017,040,703,255.02 03/29/1996 $5,117,786,366,014.56 04/30/1996 $5,102,048,827,234.22 05/31/1996 $5,128,508,504,892.80 06/28/1996 $5,161,075,688,140.93 07/31/1996 $5,188,888,625,925.87 08/30/1996 $5,208,303,439,417.93 09/30/1996 $5,224,810,939,135.73 10/01/1996 $5,234,730,786,626.50 10/02/1996 $5,235,509,457,452.56 10/03/1996 $5,222,192,137,251.62 10/04/1996 $5,222,049,625,819.53 * Rounded to Millions Federal spending has grown over the years, especially starting in the 1930s in actual dollars and in proportion to the economy (Gross Domestic Product, or GDP). Beginning with the "New Deal" in the 1930s, the Federal Government came to play a 2005-05-27T04:54:44-04:00 http://75.150.148.189/free-essay/U_S_-Budget-Deficit-26754.aspx Imports and GDP Have you ever go to New York for vacation, buy a Hyundai (Korean Manufacturer) car or buying an Acer (Taiwan Manufacturer) computer. Have you consider that this transaction will affect the GDP for Canada. By definition, Imports are the purchase of goods produced in the rest of the world by firms and households in Canada. (Parkin & Bade, p. 700) Canada have to imports because Canada import products whose world price is less than the price that would rule domestically if there were no foreign trade. These mean the world price of a goods or services is below the Canadian no-trade price, so that, at the price ruling in Canada, domestic demand over domestic supply is met by imports. (Lipsey p.81) Imports of goods and services are determined by the foreign exchange rate. Other things remaining the same, the higher the value of the Canadian dollar against other currencies, the larger is the quantity of Canadian imports. (Parkin & Bade p.700) To define the commodity is non-merchandise good; we only consider the service sector from the services and goods. For an example: Banking service with foreign bank, courier transportation services to foreign country were the imports of goods and services (non-merchandise good). Services are the intangible things that satisfy a want. (James p. G14) Real GDP also determinant the imports. Other things remaining the same, the higher the level of Canadian real GDP, the larger is the quantity of Canadian imports. The transaction with the rest of the world, we have to look at the net export, it equals exports of goods and services to the rest of the world minus imports of goods and services form the rest of the world. (Parkin & Bade p.626) To find the relationship between the GDP at market price and Imports of goods and services, it may use the expenditure approach to calculate the aggregate income. Aggregate income or expenditure is equal to the GDP at market price while GDP = Y. This equality occurs because Canada can paid to the factors of production or as the expenditure on that output (Parkin & Bade p.627) Since Y=C+I+G+NX, so GDP=C+I+G+(Ex-Im). (Lipsey p.426) Imports are the leakages from the circular flow of income and expenditure are income that is not spent on domestically services. From the equation, generally the other things remaining the same the higher the import will bring the less GDP. However, from 2005-05-26T09:30:28-04:00 http://75.150.148.189/free-essay/Imports-and-GDP--26727.aspx Economic Impact Of A Sports Facility Feasibility Study Before a facility's economic impact can be determined, a feasibility study should be done to excite the community members about the facility. The purpose of a feasibility study is to "provide research information about the community, special interest groups, and its use as a decision making tool in the community" (Farmer, Montgomery, Ammon, Jr. 12). In essence, this study is done to assure the community that building a sports facility is right for them and that their money will not go to waste. It also let's them know why their area is the most feasible for the facility. It also gives them non-economic influences such as civic pride in their team. If they have more than just economic reasons to approve the stadium, they will not need that much more influence to vote yes. The main points of the study should include estimated economic benefits to the owner of the team and facility, the short term costs along with term costs, and cultural or economic loses and benefits to the community. The cost of the study usually runs about $.08 per person in the community. (E.g. 75,000 people = $6,000 cost) When doing these studies, the city offices need to hire outside firms and specialist such as accountants and economists. These people will bring credibility to the studies, which will look good to the people in the community. The weakness with hiring these outside firms is that they are in this for themselves and may not understand what you are trying to do. If they do not understand how this is intended to be a positive influence on your residents, they may not focus on the positive points as much as the officials would like. When the financing of the facility needs to be determined, it forces the city officials to put together where the money they need is going to come from. They can take from the community, take from the owner of the teams, or hire an entirely new owner for the building. Before a facility is built, there may be need to schedule dates for events in advance and collect deposits to help pay for the construction. By attracting a prime tenant immediately, many dates on the calendar will be filled and attracting a prime tenant immediately will put a 2005-05-20T09:38:00-04:00 http://75.150.148.189/free-essay/Economic-Impact-of-a-Sports-Facility-26686.aspx Why Gas Prices Are Rising, Alternative Fuels in America OR EVEN ABOUT SQUEEZING a few more miles out of each precious tankful. But among the special-edition Ferraris, bizarre Cadillac studies and a whole new crop of gas-guzzling SUVs, not all that many people were talking about cheaper and cleaner ways of getting around. The section of the show dedicated to 'New Energies' was a tiny corner on the second floor of Hall 2, behind the stands of the insurance companies. There were exactly two exhibits. The lull is deceiving. Never have so many automakers put as much money and effort into building a greener car. Not entirely without some prodding, mind you. Facing clean-fleet laws in the U.S. and "voluntary" restrictions in Europe, the industry is committing to cut emissions of its gasoline and diesel-powered cars. Gridlocked Italian cities like Rome and Milan may ban conventional cars altogether from their historic centers. In Tokyo, putting 30,000 natural-gas-powered taxis in the streets has already helped clean up the air. But most of all, carmakers have been whipped into action by California's Zero Emissions Mandate that requires ten percent of all cars sold in the state to be pollution-free by 2003. Mention green cars, and most people think of some battery-powered buggy that the average driver wouldn't be caught dead in. Electric cars have been around for decades and never caught on. Their problem: batteries aren't very powerful, so the car's speed, range and weight remain strictly limited. The typical result is Ford's new TH!NK, already on the market in Scandinavia and about to hit a few dozen American dealers as well. The TH!NK is a tiny two-seater with a grubby-looking plastic shell that can go about 50 miles between recharges, at a top speed of 50 mph. A full charge takes eight hours, but costs only 50 cents. With a sticker price of $15,000, the car will win a small market niche at best. If you're not willing to put up with the performance of a glorified golf cart, there are always standard cars powered by alternative fuels like propane, ethanol or liquified natural gas. Also around for decades, these cars have actually begun to catch on. There are 4 million cars in 2005-05-19T03:04:15-04:00 http://75.150.148.189/free-essay/Why-Gas-Prices-Are-Rising-Economics-of-Oil-26663.aspx Without classical economists such as Adam Smith, Thomas Robert Malthus, and David Ricardo, modern economic theory would not be the same. Although differences of opinion were numerous among the classical economists in the time span between Smith’s Wealth of Nations (1776) and Ricardo’s Principles of Political Economy and Taxation (1817), they all mainly agreed on major principles. All believed in private property, free markets, and, in Smith’s words, “The individual pursuit of private gain to increase the public good.” They shared Smith’s strong suspicion of government and his enthusiastic confidence in the power of self-interest represented by his famous “invisible hand,” which portrayed public benefit with personal quest of private gain. From Ricardo, economics derived the notion of diminishing returns, which held that as more labor and capital were applied to land, yields after a certain and not very advanced stage in the progress of agriculture steadily diminished. The central thesis of The Wealth of Nations is that capital is best employed for the production and distribution of wealth under conditions of governmental noninterference, or laissez-faire, and free trade. In Smith’s view, the production and exchange of goods can be stimulated, and a rise in the general standard of living attained, only through the efficient operations of private industrial and commercial entrepreneurs acting with a minimum of regulation and control by the governments. To explain this concept of government maintaining laissez-faire attitude toward the commercial endeavors, Smith proclaimed the principle of the “invisible hand”: Every individual in pursuing his or her own good is led, as if by an invisible hand, to achieve the best good for all. Therefore, any interference with free competition by government is almost certain to be harmful. Although this view has undergone considerable modification by economists in the light of historical developments since Smith’s time, many sections of The Wealth of Nations, notably those relating to the sources of income and the nature of capital, have continued to form the basis of study in the field of political economy. The Wealth of Nations has also served as a guide to the formulation of governmental economic policies. Malthus, on the other hand, in his book An Essay on the Principle of Population (1798), set a tone of dreariness. Malthus’ main contribution to economics was his theory that a population tends to increase faster than the supply of food available for its needs. This theory contradicted the belief prevailing in 2005-05-06T17:20:09-04:00 http://75.150.148.189/free-essay/Classical-Economists-and-Their-Contributions-26585.aspx The Chinese Mentality and Economical Results Adam Smith stated that a free market would be able to run freely even if there is no government intervention, because the market will regulate itself. This will happen because of competition among many markets and the mentality of people in general. Adam Smith stated that this principle was called The Invisible Hand. A major problem with the economic development of China was the consistent interference of the Chinese government. The reasons behind why the government kept continuously involving itself was because of the cultural, and religious preconditions of the country. The mindset and behavior of the Chinese population contributed heavily to the poor economic outcome of the nation. China’s culture prevented the nation from following Adam Smith’s principal, which in turn caused the Great Divergence from Europe. The Chinese government ruled the country through the Mandate of Heaven. The Mandate of Heaven was a guideline through which the citizens viewed the government rulers. This mandate was based on four principles which stated, that the right to rule was granted by heaven, that there was only one ruler, the right that the ruler had to reign was based on his personal virtue, and that the right to rule was not limited to only one particular dynasty. This Mandate of Heaven gave the ruler a high ranking statues and also religious significance. The ruler had supreme power, but more importantly, the ruler gained power quickly because every person believed that he had the authority granted from heaven. This reason alone allowed the people to blindly follow his command without question because of their faith in the system. Their behavior was portrayed the cultural aspect of China, which contributed to the downfall in their economic situation. “Ancient Chinese, as represented by their monarch claimed to hold a Mandate of Heaven according to which they had a valid claim to preside over everyone else by virtue of their unequivocal political, cultural, and moral authority. That principal remained intact even under an alien ruler; it was moral integrity and benevolent leadership rather than ethnic origins that were important.” (Waley-Cohen, 13-14) The government had supreme control over the regulations of the country, and was also supported by the people. A major economic problem with this was that it was highly possible for the government to favor certain enterprises over others. Owners would be inevitably be involved in government affairs, and 2005-04-20T05:05:33-04:00 http://75.150.148.189/free-essay/The-Chinese-Mentality-and-Economical-Results-26530.aspx <b>Bush Endeavors to Help the American Economy</b> The votes are in and the people of the United States have spoken; President George W. Bush was reelected for his second term in office. In his first term he was concerned with the nation’s economic growth and this concern remains consistent, if not stronger for his economic plans during his second term. Bush wants the economy to grow and create jobs by proposing tax cuts that will stay and help bring money back to America’s economy. His aspirations for his new term will be effective because the economy is reviving with growth from his last term. Bush has helped the economy in the past four years, and there is no doubt that he will be able to continue to do so. He promised to build on the accomplishments of his first term by building a safer world and creating more hope for America for our workers, families, and children. Not only is Bush promoting tax cuts, he will not be satisfied until each and every American whom wants a job will be able to find one. With the job market growing, Bush wants businesses to grow too. Bush would like to continue economic recovery into prosperity in which the people will feel the effects of it now. By learning about Bush’s proposed economic plans, one can see how his plans can be related to the subject of macroeconomics. A rising concern is America’s debt. Bush came into presidency at a rough time. The September 11th attack put the economy in a huge deficit. Millions of dollars went into the necessary war with Iraq and the economy will be paying for it now and in the years to come. Bush wants to rebuild the economy. Money is being cut from our education, recently the California school systems, to pay for the war. Bush believes he must help reconstruct the economy and not allow the “invisible hand” in the economy by imposing new taxes. The economy was at one of its lowest points because of the war, but Bush’s new proposal to help the economy recover will help rebuild our economy. Bush wants to emancipate America from the income tax and propose the national sales tax. A national sales tax would be very beneficial and help the economy now. 2005-04-20T04:44:56-04:00 http://75.150.148.189/free-essay/How-Bush-Hopes-to-Help-Stimulate-American-Economy-26524.aspx Economies Of Cuba And Puerto Rico 16th - 18th Century The economies of Cuba and Puerto Rico are very similar during the 16th, 17th, and 18th centuries. As Spain colonized these two islands in the 16th century under the idea that gold was abundant. Thus in turn the islands became a safe port for Spain and her vessels. It also set out to be a huge migration from the Spain to the islands, because everyone was set to search for gold. . This turned out to be short lived as the mining of gold peaked in 1517 till 1819. By Spain using Cuba and Puerto Rico for mining gold they needed slave laborers as the local Indians. The Indians soon became unsatisfied with their new conditions of living, they became hostile and many not able to cope with being slaves committed suicide and genocide. By 1540 - 1550 silver was discovered in Mexico and Peru. As Spain found its' new source of income in Mexico and Peru, it left Cuba and Puerto Rico to literally fend for themselves. By the 1590's their economy began to prosper by cattle breeding and farming as this lead to new jobs on the islands. This new slow and uneven growth led supplies to be more expensive. By the 17th century the cabildos began to govern migration, basically they stopped migration. The Spanish government implemented regulation and restrictions, which in demand increased prices and taxes. As a result, many began to use the black market in order to purchase contraband. At this time agriculture also developed and farming expanded with sugar, coffee and tobacco crops. These new crops also served to encourage new settlements. No longer a remote military outpost, food shortages and inflated prices worsened. Supplies did not increase and money was not sent from Spain. The cost of goods did not decline but contraband increased. In the 18th Century, the English occupy Cuba in 1762 for 10 months, as it helped Cuba to see that they could be with better leadership and if they get the attention they needed. This occupation lead to free trade with England and the American Colonies, in turn it abolished trade tax. Vendors from England arrived offering Cuba consumer goods and industrial items. The ports were open to maritime traffic, which increased markets and increased demands. The new markets also increased prices and stimulated sugar and tobacco production in 2005-02-28T02:45:07-05:00 http://75.150.148.189/free-essay/Economies-Of-Cuba-And-Puerto-Rico-16th-18th-Century-26346.aspx Americans Aren't Saving Enough If you think you've had to meet some tough challengers in your time, consider the historic sales call made by Robert Fulton, the famous American who manufactured the world's first commercially successful steamboat. His meeting was not with the average, easy-going small businessman or head-of-house-hold trying to keep his head above water. His prospective client was Napoleon Bonaparte, who was busy trying to blast all the world's ships out of the water to become ruler of all Europe. Fulton made what he felt was a very effective presentation. Napoleon turned on him and screamed, "What, sir? Would you have me make a ship sail against the wind and currents by lighting a bonfire under her deck? I pray you excuse me. I have not time to listen to such nonsense." Fortunately, Mr. Fulton did make other sales calls. He produced the first money-making steamship between New York and Albany and changed the entire course of world history. And world history keeps on changing. Surely it was sheer coincidence that Adam Smith's, The Wealth of Nations, was published in 1776, the year of the birth of the United States. His book proposed open competition, a free marketplace and the creation of wealth for the hardworking individual. That was some year, 1776. It produced the most effective political system in the world and an economic theory that produced more personal wealth than the world had ever seen. Now here we are, 220 years later, undergoing a full-scale national debate about the purpose and role of this very government, tying with it dire warnings about the consequences of not balancing the federal budget soon and getting our country's financial house in order. As the debate continues - augmented by the energy of the current presidential election season - we stand on the last leg of the 20th Century. The year 2000 will be upon us before we know it. The question is, will we be ready - as individuals and as a nation - for the challenges this new century will bring? We have a lot of work to do. First, savings are too low in the United States. Far behind the savings rates of other countries. Japan's personal savings rate is 15 percent. The U.S. personal savings rate is less than 5 percent. Second, savings must be increased in the United States if we are to pay our own way as a government, and to provide the investment capital we 2005-02-20T07:05:07-05:00 http://75.150.148.189/free-essay/Americans-Aren-t-Saving-Enough-26286.aspx 15% Tax Across the Board? Money! I bet I have your attention now. Hard working Americans are consistently held down due to taxes. There are many unnecessary taxes that are taken from each individual every single year. The 15% sales tax concept eliminates the frustration and confusion of the different kinds of taxes, and creates more money for the federal government. This concept has been overlooked year after year since its conception. This is a 15% sales tax; a tax that takes 15% of all goods sold and gives it to our government. Be aware of the fact that it is now 7.75%; a lot of you may say, \"7.75% is way too much already\". The answer to that question is no, no it is not. That 15% sales tax goes directly to the federal government eliminating all income tax in ones paycheck. Imagine seeing your paycheck without taxes taken out of it. It seems almost unimaginable to me; now we can imagine it. What does every employee constantly complain about every single paid day? What is one of the main topics that the presidential candidates stressed while campaigning? How come people like drug dealers get a big advantage in this world when it comes to pay taxes? And again, what consistently holds down the hard working American? I have found a way to answer all those questions? This concept has actually found a way to tax everybody, not just the working ones. This concept also makes it fair and economical to our federal government, not just the individual taxpayer. Under the implementation of this concept an individual could receive a paycheck and have virtually no taxes taken from it. This 15% sales tax eliminates confusion, taxes everybody, and organizes the government in a way that has never been done. Eliminating the confusion of distributing all of the taxes throughout the country would be in our government\'s vital interest. Every two weeks I will go through the exact same ritual, I will receive my paycheck and furiously tare it open to see how much money I will be able to lose in the next two weeks. I\'m always blessed with a beautiful number at the top that is very fair and deserving for the hard work that I do on the weekly basis. Then I always see a whole bunch of abbreviations, different dollar amounts, then the number at the bottom 2005-01-19T08:34:56-05:00 http://75.150.148.189/free-essay/Flat-Tax-26166.aspx [i:deba0d65fd]Foreign Investment: France vs. Italy[/i:deba0d65fd] Econ 242 Italy, the sixth largest industrial economy in the world, only trails France by two spots in the overall world rank yet trails France by drastic propositions when it comes to its foreign investment position. The international economic trends that the two countries exhibit in the past decade are miles apart as are their individual symptoms. Why has France's success in becoming a global economic power surpassed that of Italy? This paper will explore both the inward and outward investment positions of France and Italy and reflect on why the two European nations rank where they do. My initial findings of the two foreign investment positions are presented on Dunning's J-curve: The J-curve shows a net outward investment (NOI) for Italy as $59.3 per capita, a figure significantly lower than France's $248 per capita. More specifically, while France's gross outward investment (GOI) is, on average, similar to its level of gross inward investment (GII), Italy displays a different picture. Instead, domestic investors seem to be lured to the foreign markets while investors outside Italy are not being enticed to invest directly in Italy. While both countries have recognized the importance of integrating their traditional economies into the global economy, achieving internationalization of domestic firms while simultaneously increasing openness in the home market would prove to be a tricky feat. Gross Domestic Product France's real GDP growth enjoyed high rates of growth, particularly in the mid and late 1990's which was accompanied by an impressive decline in inflation, averaging just under 2% throughout the 1990s and fell to .6% in 1999. France's exports and imports account for about 50% of its GDP, making the country's external sector vital to its economic growth. In addition, GDP growth was fueled by increases in household consumption and, more recently, by business fixed investment. After years of weakness in the 1990s, corporate investment has improved greatly, as firm are trying to increase capacity utilization (shown by appendix 4) and integrate new technologies, creating high net earnings for French companies. While this improvement in GDP reduces France's government budget deficit and unemployment level, according to CountryWatch, wage increases may contribute to maintaining inflation in the one-to-two percent range. Overall, France's growth has created a favorable environment for continuing expansion, both inward and outward, helping to further feed 2005-01-08T07:31:20-05:00 http://75.150.148.189/free-essay/Foreign-Investment-France-vs_-Italy-26144.aspx Perpetual Cities: The Roots of Primacy in the Third World Almost all of the world's largest cities are found in ex-colonial countries. However, the largest countries are not always home to the largest cities. In fact, the smaller the country, the more prone it is confronting primacy. Primacy - defined in this paper as the disproportionate sum of population and economic concentration as compared to the next largest city - is the result of an economic process that began during colonization and continues today. Although, primacy has historically been associated with urbanization, it is the geographical manifestation of economic decisions by governments, the business elite and migrants. Primate cities increased in population and relative wealth because of cumulative causation - the forces that set primacy in motion perpetuate the phenomenon. Primacy's Roots - Colonization Most of the world's largest cities are found in former European colonies. The colonial system changed the geographies of what is now the third world by creating new centers of power, altering the function of domestic markets and introducing new modes of transportation. While the emergence of primacy is easy to identify, it perpetuates because of the interaction of a number of market forces. Colonial Government Although urban centers existed in Africa, Asia and Latin America before colonialism, the arrival of the European colonists signaled the beginning of primacy. As colonists created a centralized political economy, certain economic centers and some of their inhabitants gained extraordinary wealth. Collusion between merchants and governments concentrated economic power both geographically and socially. Resulting imbalances of social and political power created a third world elite that would control domestic and international trade until well after independence. Colonial Economies Colonial cities reinvented the economic landscape of the third world. The political and economic relationship of colonies to their colonial powers produced a new export economy while simultaneously dismantling domestic trade. The existing domestic economies, such as textiles and metalworking industries, could not compete lower priced and higher quality imports from more technologically advanced European manufacturers (Becker et al., 77). By replacing pre-colonial economies with export-based economies controlled by a concentrated elite, the economic structure of primate cities was complete - the urban rich controlled the low-skilled and less-educated classes. Since the colonial period, income inequality has been an unwavering characteristic of urban primacy in Latin America. Colonial Infrastructure Transportation infrastructure helped reshape economic geographies of the third world to further concentrate wealth. For example, Zambia's agriculture and industry are concentrated 2005-01-03T05:08:22-05:00 http://75.150.148.189/free-essay/The-Roots-of-Primacy-in-the-Third-World-26120.aspx World Capitalism and Third World Urbanization Urbanization has been a leading characteristic of the development of the Third World in the Twentieth Century. As developing countries entered the international economic stage, and as they industrialized, urban populations and areas began to increase and develop. Bryan Roberts' article, "Urbanization, Migration and Development" examines Third World urbanization, and explains how it relates to the new international economic order. Roberts discusses the Third World's experience with import substitution industrialization, and the new international division of labor, concluding that the newly interconnected world economy directly contributes to urbanization. It is important to have an understanding for the contemporary world economy before discussing the ways in which it has contributed to Third World urbanization. Integral to the new economic order is the idea of an international division of labor. The new economy is dominated and mediated by multinational corporations and supranational agencies, creating a highly integrated and transnational economic system (Roberts, pg. 666). The role of the Third World in this system lies mainly in export, as it provides a cheap labor source for manufacturing. The development and exploitation of this labor force has led to both state directed and export oriented industrialization, resulting in high levels of urbanization. Because of such a high level of integration in the world economy, the Third World has become extremely dependent on the First World, limiting the means by which the Third World can address the problem of urbanization (Roberts, pg. 666). Roberts first attempts to explain the link between international economic integration and Third World urbanization by comparing different regions and their experiences with such integration. He argues that non-core country's differing levels of urbanization can be directly explained by when and how they have been incorporated into the economic order (Roberts, pg. 667). The first type of incorporation that he discusses is that which entered the system the earliest. These regions thus have the highest levels of urbanization and have experienced a radical shift in social relationships in the rural sector. This type of incorporation is characteristic of Latin America. The second type is characterized by early incorporation by states with previously developed internal markets. Because regions such as China and India had already established internal markets and chose not to integrate highly, they did not have such a radical shift in social dynamics, and subsequently witnessed low levels of urbanization (Roberts, pg. 669). The third type of incorporation describes 2005-01-03T04:58:55-05:00 http://75.150.148.189/free-essay/World-Capitalism-and-Third-World-Urbanization-26119.aspx This isn't really an essay, but it was a worksheet in my econ class. Maybe it'll help someone... The Vigilantes Work Sheet 1. What might cause bondholders to sell their bonds? An American policy that proposes big spending programs and accelerates inflation may cause bondholders to sell their bonds. 2. How does that raise the deficit? It drives up long-term interest rates, which moves inversely to bond prices, and thus, the deficit increases. When bonds, 2004-12-20T03:44:50-05:00 http://75.150.148.189/free-essay/The-Vigilantes-Work-Sheet-on-Bond-Holders-25854.aspx “Why should I pay?” How have (and will) the numbers of payers and beneficiaries of Social Security change(d) over the decades? The numbers of payers per beneficiary has decreased over the decades and will continue to do so. This is because life expectancy continues to rise and, consequently, the number of beneficiaries increases. Costs for social security will double each decade. 2) How true is it that Social Security recipients are just getting back the money they paid into the system? It is not true at all. They generally get their money back several-fold and it is not even their money. It is the money of the younger workers currently putting money into Social Security. 3) How secure is the Social Security “surplus”? It is not very secure because the “surplus” is used to pay government operating costs after it is invested by the government in U.S. treasury bonds. As there are more beneficiaries and less payers per beneficiary, the surplus will also decrease. 4) What is the “coming crisis” in Social Security, and why isn’t not easy to solve? “The crisis should hit around the year 2012.” The crisis is that in 30 years the average annual benefit for retirees will have increased, and by each decade, “total benefits will double” meaning that in the year 2010 $1 trillion dollars will be necessary, and in 2050, $20 trillion. The surplus will run out and so will the money for the ever growing number of retirees. 5) What do YOU think are the best solutions to this problem? I agree with much of what the author offers as part of the solution. a) No benefits for potential beneficiaries making over $50,000 a year (remove the income cap) b) Raise the retirement age I also think that employees should be encouraged to save for retirement and businesses should be urged to offer retirement plans of some sort. I think that Social Security should only be paid to those in great need and that the public should be made in some way to think of their own retirement and save their money. I think everyone’s retirement should be their own concern and they should plan well enough to live at almost the same standard during retirement. People should also be allowed to seek jobs for as long as they want to. If they didn’t plan well for retirement and so they still need to work – that’s life…of course I’m only 17 and 2004-12-20T03:38:22-05:00 http://75.150.148.189/free-essay/Social-Security-Should-we-Pay-Into-it-25852.aspx Rising Concerns Over Red Meat Dhamoor Thindurt’s Article on the Rising Concern Over Red Meat is a very skewed viewpoint. He states many sources as he tries to prove his argument, but as one looks as these sources, they are in itself a biased opinion also, Thindurt does not use an unbiased source in his argument at all; of course, one does not expect him to. Thindurt has stated that “eating meat is bad for business” if this business was so bad “for business” for lack of a better word, than the invisible market hand of the economy would have probably put this market out of business. The business is growing because there is more demand for it, it’s no bad for business, just the economy. Secondly, Thindurt also says 2004-11-21T21:40:56-05:00 http://75.150.148.189/free-essay/Rising-Concerns-Over-Red-Meat-Article-Analysis-25738.aspx Welfare: Putting People First 1. Why do Americans want to “end the welfare system…to help, but in ways that work, not that wreck people”? Americans believe that “welfare feeds bureaucracies and the middle class, not poor people.” They also feel that it rewards behavior that life would punish. People on welfare are “wrecked” rather than helped because they aren’t helped morally and have no responsibility when simply given money. Basically, Americans want to help in ways that work, not that wreck people, because obviously something that works is better than something that wrecks. As Sandy 2004-11-21T21:34:31-05:00 http://75.150.148.189/free-essay/Welfare-and-Putting-People-First-25735.aspx Most economists define a recession as a sudden decline in real gross domestic product (GDP) for three consecutive quarters. However, the media has been leading the public into many misconceptions, causing people to use the word without a clear sense of the definition. As a result, consumer confidence is in a free-fall and many Americans are almost certainly walking into some regrettable investment mistakes. Due to the generally mistaken view that recession automatically means bad investing times in the future, several investors are tending to cash out early. The word “recession,” as it sits undefined is being used incorrectly time after time, and different misconceptions of the word are spreading like a wild fire throughout the public amongst those least educated or unprepared. Often, without knowing the characteristics of the definition, through the hype of the media, we begin to believe our economy is in a much worse state than it actually is. A majority of Americans who are hearing the term from the media for the first time do not have the slightest idea of how to measure a recession, and in many cases mistake it for a common slowdown incorporated in the business cycle. Many economists cite four phases of the cycle – prosperity, liquidation, depression, and recovery. Those periods of “liquidation” and “depression” are mistaken for a recession, when in reality a recession is a much more severe slowdown. During a period of “prosperity” a rise in production becomes evident. Employment, wages, and profits increase correspondingly and businesses tend to invest in expanding production. Businesses are liable to run into obstacles that obstruct further expansion leading into period of decay, or “liquidation.” For example, production costs may shoot up, shortages of raw materials may hinder production, interest rates may rise, or prices may increase. Consequently, consumers react to increased prices by buying less. Businesses, then, remedy the consumption declination by reducing their prices. Manufacturers begin to cut back, resulting in workers being laid off, and the “depression” stage is inevitable, leaving businesses in an economic slump. Prices and profits begin to plummet, production cuts back, factory shutdowns occur, unemployment becomes widespread, and the GDP has a tendency to decrease. Does this period sound familiar? The “depression” stage is in progress as we are currently experiencing, the media likes to call 2004-10-29T02:32:16-04:00 http://75.150.148.189/free-essay/Recessions--25577.aspx In November of 1952 General Dwight D. Eisenhower was elected to the office of President of the United States. It was the first time a Republican was elected since Herbert Hoover in 1928. The Eisenhower administration started at a rather awkward time, both politically and economically. First of all there was a war on. The Korean War had begun in June of 1950 and was still waging. As was usual for wartime the country was economically prosperous. However, the war had caused President Truman to abandon his former restraints on government spending. The amount of money being spent on defense skyrocketed to supply the troops in Korea with the supplies they needed. This caused the federal deficit to increase dramatically (Pach and Richardson, 53). Another legacy leftover from the Truman days was that of the Fair Deal domestic program. Although Truman found much opposition to his programs in Congress he managed to get several things done. Such as a public housing bill, an expansion of social security coverage, and increased minimum wages. The Republican party was not in favor of the majority of this legislation. Thus when Eisenhower was elected they immediately made plans for cutbacks in the spending on these programs. Unfortunately for them the newly elected president was not opposed to the programs Truman had began and improved upon. Over the course of his administration Eisenhower often did not hold the same opinions as some of the members of his party. As the Chief Economic advisor to the President of the United States there are many different issues that I must consider. These issues are both large and small, foreign and domestic, and affect the upper, middle, and lower classes. At this point in time there are several important concerns, which I have. The Korean War is ending and this is going to have a profound affect on the economy of the United States. During the war the country was prosperous but afterward there is always a high risk of increased inflation and an increase in unemployment. These conditions have the ability to cause a recession. Now that an armistice has been reached in Korea, a recession is beginning to occur (Pach and Richardson, 54). I believe that the President’s chief concern 2004-06-27T23:42:29-04:00 http://75.150.148.189/free-essay/Economics-of-Eisenhower--25194.aspx As a coherent economic theory, classical economics start with Smith, continues with the British Economists Thomas Robert Malthus and David Ricardo. Although differences of opinion were numerous among the classical economists in the time span between Smith’s Wealth of Nations (1776) and Ricardo’s Principles of Political Economy and Taxation (1817), they all mainly agreed on major principles. All believed in private property, free markets, and, in Smith’s words, “ The individual pursuit of private gain to increase the public good.” They shared Smith’s strong suspicion of government and his enthusiastic confidence in the power of self-interest represented by his famous “invisible hand,” which reconciled public benefit with personal quest of private gain. From Ricardo, classicists derived the notion of diminishing returns, which held that as more labor and capital were applied to land yields after a certain and not very advanced stage in the progress of agriculture steadily diminished. The central thesis of The Wealth of Nations is that capital is best employed for the production and distribution of wealth under conditions of governmental noninterference, or laissez-faire, and free trade. In Smith’s view, the production and exchange of goods can be stimulated, and a consequent rise in the general standard of living attained, only through the efficient operations of private industrial and commercial entrepreneurs acting with a minimum of regulation and control by the governments. To explain this concept of government maintaining laissez-faire attitude toward the commercial endeavors, Smith proclaimed the principle of the “invisible hand”: Every individual in pursuing his or her own good is led, as if by an invisible hand, to achieve the best good for all. Therefore any interference with free competition by government is almost certain to be injurious. Although this view has undergone considerable modification by economists in the light of historical developments since Smith’s time, many sections of The Wealth of Nations notably those relating to the sources of income and the nature of capital, have continued to form the basis of theoretical study of the field of political economy. The Wealth of Nations has also served as a guide to the formulation of governmental economic policies. Malthus, on the other hand, in his book An Essay on the Principle of Population (1798) imparted a tone of dreariness. Malthus’s main contribution to economics was his theory that a population tends to increase faster than the supply of food available 2004-06-10T06:25:50-04:00 http://75.150.148.189/free-essay/Classical-Economists--25142.aspx Navigation Acts The Navigation Acts, or the Acts of Trade, were a set of rules or laws drafted by the British which, in effect, protected British commerce and economy. Among other things, the acts stated that the only ships which would be allowed to import European goods were ships that were owned by Englishmen, contained goods that were to be shipped to people of the origin country, or whose first shipment was to England. Holland, who was England's main competitor at the time, was completely decimated by this blow. The Navigations act caused Holland’s trade to drop off very sharply, promptly eliminating any competition from the international seas. The Navigation Acts also imposed several other seemingly harsh rules of trade, forcing all foreign commodities to be shipped through English ports before reaching their final destination of America. The British Empire also ensured that the American colonies could only export their staple goods (sugar, cotton, tobacco) to them, guaranteeing that England would be the only nation to prosper from the newly founded colonies. This, along with other contributing issues, spawned increasingly negative sentiment between the colonists and British, especially over the issue of sugar. Due to hiked taxes on French Indian sugar, the colonists were forced to buy considerably more expensive British Indian sugar. This lead to more colonial hatred towards the Crown, leading to smuggling, which of course led to the Crown further disliking the colonies. Triangle Trade Routes The international traders found a rather ingenious way of legally bypassing England’s Navigation Acts by means of what were known was the “triangle trade routes.” Trade ships would begin in the colonies, where they would fill their ships with furs, grains, and other materials not immediately available in Europe, and then sail to Europe, selling and unloading all of their wares. The ship would then restock with goods not available in England, then head to England where the ship would then be unloaded again. The ship was then packed to the brim for the long voyage to back to the colonies where the process would start over again. Another well-known triangle trade route was used to transport slaves from Africa to the colonies or the West Indies. The colonies would trade their goods in exchange for slaves, while the West Indies would trade their molasses. This practice made many people aristocrats, as well as 2004-03-20T01:28:46-04:00 http://75.150.148.189/free-essay/Navigation-Acts-and-Mercantilism-61.aspx Why are third world countries unable to increase their gross domestic output per capita? Countries are classified as LDCs if their GDP per capita is less than $700 (they are low income countries). People living in LDCs typically have lower life expectancy, literacy rates, and social conditions. In Africa, for example, one third of its people have inadequate food consumption. Often, only unsafe water is available for drink in LDCs such as Haiti. Such third world countries are also unable to increase their gross domestic output per capita because GDP must increase at a rate faster than population, and with generally faster population growth than more developed countries, this is difficult. There are many barriers to the growth of an LDC. In countries like China, many laborers are actually doing little or nothing that contributes to total output. This disguised unemployment, along with a steadily increasing population makes economic growth difficult. State enterprises may also contribute to disguised unemployment, which results in no increases in output. In order to gain political support they may hire many more workers than they need, but gain nothing economically. All the things LDCs lack are things that are required for economic growth. Even larger than disguised unemployment, is the lack of human capital development. Human capital refers to the knowledge and skills possessed by the work force. Due to the fact that all available income must be spent on simple subsistence, there are no funds remaining for savings or investment. There is also no money left for furthering education, getting medication, or creating any other human capital development. LDCs simply do not have enough educational tools to advance their people into fields that require more than just manual labor. Even in manual labor, such as agriculture, they can improve through newfound technologies and procedures. The lack of savings, however, also creates a lack of financing for investments. Even though capital resources such as plants and high tech equipment would further LDCs greatly, they cannot afford them. Capital flight as well removes any money that might be invested later. Those who make money in LDCs often send their money to more developed economies where their money will be safe and/or gain value. All this results in the above problems, a lack of infrastructure, and social unrest. Developing nations should request (and accept) more foreign aid from other countries. The United States only allocates .15% of its total GDP to 2004-02-22T07:26:13-05:00 http://75.150.148.189/free-essay/Analysis-on-GDP-Per-Capita-of-Third-World-Countries-36.aspx