Adam Smith "invisible hands"
Adam Smith, the 18th Century economist, argued that the 'invisible hand' of the market is the best way of coordinating the activities of individuals within a complex economy. Using appropriate diagrams explain how markets achieve this coordination and how government price control may disrupt it. The 18th Century economist Adam Smith indicated how the 'invisible hand' of the market operated through the pursuit of individual self-interest to allocate resources in society's best interest, which remains the central view of all free-market economists (tutor2u, n.d.). The 'invisible hand' is 'shorthand for the law of supply and demand and explains how the pull and push of these two factors serve to benefit society as a whole' (Conway, 2009, p6). This essay will contain the ways of markets achieve that coordination and the ways of government price control that may disrupt it. Initially, the nature of demand and supply will be analysed, subsequently the concept of equilibrium and followed by intervention of government. Market is the platform where buyers and sellers interact to exchange commodities. In particular, free market economy is based upon the disparate resource allocation decisions made by independent agents but not some co-ordinated control from a central authority (Bannock, 2003, p306). It emphasize on 'Lassez- Faire' which comprises Individualism and Liberalism.
The 1982 UN Convention on the Law of the Sea.
The principal question to be resolved by the 1982 UN Convention on the Law of the Sea, in what concerns the straits' regime, was the allocation of an authority to control and regulate air and sea communications that would balance the interests of States relying on the use of straits for air and sea communications with the interests of coastal states, which would be affected by such use. These diverse interests (as considered in the Corfu Channel case (1949) by the International Court of Justice) along with the growth of the world trade and the heightened awareness of the need to protect the marine environment were the main forces that had led to debate over the selection of a new legal regime to govern air and sea communication through straits. For some States, including many States bordering the Baltic Sea, the Black Sea, The Persian Gulf and the Mediterranean Sea, the use of straits is essential if they are to have access to the high seas and to the ocean communications' system as a whole. For those States, such as Japan1, straits are central links in the routes of supply of vital resources and commodities. To our contemporary international community, ensuring an unimpeded right of navigation and overflight through the straits is vital not only to some western naval powers, but also to average industrialized countries. Still, other States, such as Russia and the U.S.A,
In what ways is the government attempting to increase the willingness to wor
In what ways is the government attempting to increase the willingness to work? How effective have these policies been? What other policies could the government pursue to reduce the rate of unemployment? Alperton Community School Centre No. 12302 Candidate No.0141 JAYESH PATEL INTRODUCTION There are many ways the government can increase the willingness to work. These are achieved through supply-side or demand-side policies. I will be looking at how effective these policies have been, and what other policies the government could pursue to reduce the rate of unemployment. Supply side policies can help increase the willingness to work. I will talk about the policies the government uses to reduce unemployment levels. Policies to be discussed include trade union reforms, where some of the legal protections enjoyed by the trade unions have been taken away, including restrictions on their ability to take industrial action. An increase in spending on education and training can also help as it helps the unemployed achieve new skills in which they may get a wider variety of job opportunities. The reduction of income tax and incentives to work would also increase the willingness to work. The government could also use other ways to reduce the rate of unemployment, such as demand side policies. I will talk about the different ways in which they could pursue these policies. Ways
New country markets - the uncontrollable factors.
Since there are over 200 countries around the globe, companies such as Belco should consider the key environmental factors before entering new country markets. These factors are known as the C and SLEPT factors, Social/ Cultural, Legal, Economic, Political, Technological, and Competitors. These are the uncontrollable factors that will affect the companies' decisions, as well as the success of a company. Social/ Cultural A single country may sometimes comprise several nations and independent cultures, and within each of these groups, there may be different religions, languages and attitudes. An example is Canada, where the main language is not just English, but as well as French. These factors affect the buying behaviour of a consumer. There are four categories in social/ cultural factor which marketers should consider before entering new country markets. Firstly, habits and conventions can influence the behaviour of a consumer. For an example, some individuals may not be interested in foreign goods/ products. Secondly, there is the attitudes which affected by religions/ culture. This is considered as an extrapolation of the past, which is a learned behaviour rather than innate behaviour. For an example, some people may only be interested in doing businesses within their own cultures/ groups. The next category is the naivety and ignorance of countries/ cultures. Languages is
Reasons for British recession
Everything points to recession A recession is a decline in a country's GDP (gross domestic product) or negative real growth for two or more successive quarters. It is usually caused by many factors that individually are small problems but combined cause a much larger issue that affects the whole economy. * High street retail sales slump- retail sales at Christmas 2007 didn't increase by the expected amount. Experts predicted a slow month but they didn't realise how slow it would be, they only increased by 0.3% over last Christmas' sales. In comparison the sales increase at Christmas 2007 increased by 2.3% and in 2006 it was 2.6%. Growth of sales has slowed because of the lack of consumer confidence and high interest rates. Next Christmas' sales are expected to fall further as households have yet to feel the effect of the latest bank of England interest rate increases. Manufacturers and retailers are calling for a rate cut so they can afford to stay in business. Internet shopping has also affected high street sales. More and more people are using the internet for their Christmas shopping as it is convenient, there's a greater variety of items and prices are much lower. * Pound at record low against Euro- the pound has fallen to an all time low against the Euro at about 76p to the Euro. The pound is expected to fall further through 2008 as the UK economy slows, investors are
Synopsis of Yu Wun's Commerce Presentation on the US-Australian Free Trade Agreement.
Synopsis of Yu Wun's Commerce Presentation on the US-Australian Free Trade Agreement What is a Free Trade Agreement? • A free trade agreement (FTA) is an agreement between two countries or amongst groups of countries aimed at a policy of non-intervention in trade between their nations. • Tariffs and non-tariff barriers to trade are usually removed or lowered, while each country maintains its own commercial policy towards countries who are not part of the FTA. • Examples are the North Atlantic Free Trade Agreement (NFTA) amongst the United States, Mexico and Canada. The US-Australia Free Trade Agreement's History • On 18 May, 2004, Australia's Trade Minister Mark Vaile and United States Trade Representative Robert Zoellick signed the Australia United States Free Trade Agreement in Washington. • Negotiations on the AUSFTA were finalised in February after 11 months of talks between the two countries. • The signing of the agreement by Mr Vaile and Mr Zoellick will allow the US Congress to consider the agreement by July. • On the 14 July, the American Congress passed the FTA. It is now up to the Australian Parliament to decide on the FTA. Issues surrounding the FTA • There are many issues surrounding the Australian and US Free Trade Agreement. • Groups such as the Greens and the Democrats (who are traditionally anti-globalisation) are opposed to
This article review is done for the course of Trends in Global Marketing Strategies. The purpose of this work is to analyse Michael Porter' s model of national diamond and study the determinants affecting the competitive advantage of nations.
Article Review Michael Porter: Competitive Advantage of Nations Table of Contents Introduction 1 2 Reviews of the Articles 1 2.1 Competitive Advantage of Nations by Michael Porter 1 2.2 Porter's Competitive Advantage of Nations: an assessment of Robert Grant 5 2.3 Internationalising Porter's Diamond by John Dunning 6 2.4 The Double Diamond Model of International Competitiveness: The Canadian Experience by Alan Rugman and Joseph D'Cruz 7 2.5 Porter's Competitive Advantage revisited by Nicholas J. O´Shaughnessy 8 2.6 Assessing Porter's Framework for National Advantage: the Case of Turkey by Özlem Öz 9 3 Synthesis 10 3.1 Overview 10 3.2 Diamond of National Advantage 11 3.3 Model Modifications 12 3.4 Conclusion 13 References Introduction This article review is done for the course of Trends in Global Marketing Strategies. The purpose of this work is to analyse Michael Porter' s model of national diamond and study the determinants affecting the competitive advantage of nations. First we summarise Porter's article and after that five other articles closely related to the model. In this work we focus on the development of the model from the early 90' s. 2 Reviews of the Articles 2.1 Competitive Advantage of Nations by Michael Porter In the article "Competitive Advantage of Nations" Michael Porter represents his model, which goal is to clarify the
Compare and contrast the levels of economic development in the regions of Europe and Africa.
POLI 3043 - Regional Orders - Ian Jackson Compare and contrast the levels of economic development in the regions of Europe and Africa. To answer this question, the essay will be broken down into several 'areas'. Firstly an explanation will be provided of what regionalism means for both Europe and Africa. In addition to this a very brief explanation will be provided as to what regionalism is. Obviously both regions are on different stages of Hurrell's typology and this will be explained (for example Africa could be said to be in the stage of 'regional awareness and identity', while Europe can be said to be in the stage of 'regional interstate cooperation') and with reasons as to why will be provided. Also the ways in which Africa can improve themselves as an economy and move up the 'typology' ladder will be discussed. Questions will be raised as to why Europe and Africa are significantly different in their economies and in addition a brief history will be given on both regions and their economies. In addition points will be raised as to how the economy of Europe started out at a 'high level'; but Africa had to start right from the bottom; from this it will be shown what the current status of both economies is. Furthermore, both regions will be looked at in regards to how both economies are run which will show much of a contrast. As the question states; compare and contrast
"Tariffs restrict trade" Discuss.
"Tariffs restrict trade" Discuss A tariff is a tax on imported goods. They are most often used in a deliberate attempt to restrict import. A tariff is likely to raise its final price to the consumer, this will lead to a fall in demand and the volume of imports will fall. Tariffs also help domestic producers. Some consumers will switch consumption from imported goods to domestically produced substitutes. Freeing up trade has led to the world becoming a richer place. This is because everyone gains, in the long run, from the opportunity to sell their products in a freer market. Trade between countries is mutually beneficial if relative costs of production differ. The gains from trade are often most significant in product areas where economies of scale are sizeable and transport costs are relatively low. The challenge of competition creates a more competitive economy; therefore freer trade keep businesses on their toes. It also leads to companies identifying that it is best to produce in a particular country and concentrate on that field of output. Specialisation enables total world production to be very much higher than if there were no international trade. However not everyone benefits from free trade. Arguments used to justify tariffs: The infant industry argument - Industries just starting up may face much higher costs than foreign competitors. There may be large
Globalisation: Economics and Society
Student Number: 06032336 Globalisation: Economics and Society Free trade represents the trade in goods, services, and the free flow of investment without the introduction of restraining barriers. Many would argue the case for the abolition of these tariff and non-tariff barriers that restrict these actions purely on the moral grounds, "A man or woman engaged in honest work has a basic right to enjoy the fruits of his or her labor. Protectionism is a form of stealing."1 Aside this though there is economic reasoning behind the argument for reduced even eradicated protectionist measures. Firstly free trade would increase competition for producers, which in turn would lead to a reduction in prices of goods and services for consumers, thus enhancing welfare because of a better standard of living. Without trade barriers such as embargoes, and quotas producers that faced lower average costs could potentially compete in foreign markets where they weren't allowed to in the past. With the arrival of cheaper goods/services domestic producers would be forced to become more allocatively and productively efficient or face being driven out of the market. This policy will lead to enhanced Aggregate Demand for the producing nation (C+I+G +(X-M)) threw export-led growth, and will enhance the overall welfare via the multiplier effect, which in turn can lead to a much bigger effect on
