The effect of Trade Unions on causing Labour Market Failure Today
Comment on The effect of trade unions on causing labour market failure today Labour Market Failure (LMF) occurs when the market forces of demand and supply do not results in an efficient allocation of labour resources. A major cause of LMF is the abuse of trade union. However as the market changes, this cause of LMF is losing significance. Trane Unions are organisations which act on behalf of workers to gain better rights and benefits through collective bargaining, they are attractive to workers as the bargaining power of a union is always more powerful than that of an individual. Trade union have, for many years been a major cause of LMF and to an extent, still are.since their inception, trade unions main aim has been to increase wage rate for workers. Whilst this is a great benefit for union memebers, it can cause signifigant market failure. The below diagram shows, that the new wage rate my cause market failure through unemployment. As the market forces of supply and demand settle on a wage rate of W1, the presense of a union increasing the rate to W2 will cause LMF by causing employment to drop from L1 to L3 This is despite their being L2 amount of labour supplied, the gap between potential labour force and the actual employment rate means there are unused resources. And thus the market is not efficient, meaning LMF. This effect is still present today. As the gov't
Greece financial crisis: The main causes of this crisis are? What are the effects of the crisis on Greece and the Euro zone .
Greece financial crisis: The main causes of this crisis are? What are the effects of the crisis on Greece, Euro zone . What is financial crisis? The term financial crisis is applied broadly to a variety of situations in which some financial institutions or assets suddenly lose a large part of their value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics. Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults. Financial crises directly result in a loss of paper wealth; they do not directly result in changes in the real economy unless a recession or depression follows.? A financial system performs the essential function of channeling funds to those individuals or firms that have productive investment opportunities. To do this well, participants in financial markets must be able to make accurate judgments about which investment opportunities are more or less creditworthy. Thus, a financial system must confront problems of asymmetric information, in which one party to a financial contract has much less accurate information than the other party. ? For example, borrowers who take out loans usually have better information about the potential returns and risk associated
A2 Macroeconomics - Globalisation Essay
"For its supporters, globalisation describes a dream of opportunity and prosperity. For its opponents, it denotes a nightmare of greed and inequality" Explain the term globalisation and the factors that may have contributed to the process. Globalisation can be defined as the integration of the world's economies into a single international market, as local and national markets become incorporated into the global capitalist system of production with increasing interdependence. It promotes the free movement of labour, capital, goods, services, technology and management in response to markets around the world. The growth of markets in this manner is not a new, but a process that has seen the markets grow from a local scale to a national one during the Industrial Revolution and to an international scale by the end of the 20th century. The growth of international trade has been significant in furthering globalisation. During the Industrial Revolution, Britain had a significant comparative advantage as its advanced manufacturing technology allowed hugely improved transport through steamships and railway networks across its Empire. This opened up huge potential markets around the globe for British exports, at the same time making a huge range of goods from these new trading partners accessible to British consumers. Although comparative advantages have changed, this is a trend that
After 1500 there were many signs that a new age of world history was beginning, for example the discovery of America and the first European enterprises in Asia. This "new age" was dominated by
The New Age After the 1500s After 1500 there were many signs that a new age of world history was beginning, for example the discovery of America and the first European enterprises in Asia. This "new age" was dominated by the astonishing success of one civilization among many, that of Europe. There was more and more continuous interconnection between events in all countries, but it is to be explained by European efforts. Europeans eventually became "masters of the globe" and they used their mastery to make the world one. That resulted in a unity of world history that can be detected until today. Politics, empire-building, and military expansion were only a tiny part of what was going on. Besides the economic integration of the globe there was a much more important process going on: The spreading of assumptions and ideas. The result was to be "One World." The age of independent civilizations has come to a close. The history of the centuries since 1500 can be described as a series of wars and violent struggles. Obviously men in different countries did not like another much more than their predecessors did. However, they were much more alike than their ancestors were, which was an outcome of what we now call modernization. One could also say that the world was Europeanized, for modernization was a matter of ideas and techniques which have an
Economic Development of India. The CSO provides us the data of the economic growth of the states where a clear evidence of the emergence of the chronically poor states to the development is eminent. In the past the richest states often grew fastest and t
ECONOMICS ASSIGNMENT-1 ON ECONOMIC DEVELOPMENT OF INDIA Submitted To: Submitted By: Prof. Mansi Gore Gunjan Banerjee PGDM- D Roll No.- 2803448 Introduction The 12th largest economy in the world in terms of the market exchange rate, the Indian economy has come a long way to become one of the fastest growing economies. India has achieved an annual growth in GDP in the five years 2004-05 to 2008-09. India records a growth rate in terms of Gross Domestic Product of 8.49% per year since 2004-2009. The growth rate increased due to the improved productivity and growth in states. The CSO provides us the data of the economic growth of the states where a clear evidence of the emergence of the chronically poor states to the development is eminent. In the past the richest states often grew fastest and the poor ones the slowest. But it is not the case anymore. The accompanying table shows that poor states are no longer clustered at the bottom of the growth of the growth league; they occupy several positions high up. Some of the poorest states; Bihar, Orissa, Jharkhand, Chhattisgarh and Uttar Pradesh are now in the verge of growth with Gross State Domestic Product of 11.03%, 8.74%, 8.45%, 7.35% and 6.29% respectively on an annual basis. The states are now at par with the international
Unemployment in Australia.Unemployment is a major cost to the economy not just in the terms of lost production, but it also involves major, long-term social cost such as increased inequality, poverty, family problems, crime and social division.
Unemployment The problem of unemployment is one of the most serious long-term economic problem challenges in the past decades. Unemployment is a major cost to the economy not just in the terms of lost production, but it also involves major, long-term social cost such as increased inequality, poverty, family problems, crime and social division. One of the major economic debates of recent decades has been what should be done in order to reduce unemployment. There are major differences of opinion among economists about both what has caused the increasing level of unemployment during recent years, and what policies that might be used to reduce unemployment in the years to come. There are many explanations and arguments offered by economists, including: - Wage rates are too high - Job losses are an inevitable result of new labour saving technologies. - People do not have the opportunities for training and education. - Economic growth is too low to generate adequate employment growth. - Employees in developed countries cannot match the low paid people in developing countries. - The labour market is over-regulated, which provides an incentive for employers not to hire. - Many people are voluntary unemployed. Governments all over the world struggle in order to achieve sustained reduction in unemployment. A variety of strategies have been used over the last two decades, with
Has globalization been of benefit to the Singapore economy?
Has globalization been of benefit to the Singapore economy? Globalisation is the integration of national economies with the international economy through trade, foreign direct investment, capital flows, migration and the spread of technology. There is reduction and removal of barriers between national borders in order to facilitate the flow of goods and services, investments, financial capital, labour and technology. One of the characteristics of globalization is free trade, whereby flow of goods and services across borders is not restricted. Global trade allows for an enormous variety of resources to be made more widely accessible in Singapore. With free trade, foreign goods which are cheaper than domestic products can be imported. At the same time, the existence of foreign competition provides incentive for domestic firms to engage in research and development that will lead to product improvement. With each country trading based on comparative advantage, trade promotes economic efficiency by providing a wider variety of goods, often at a lower cost. As a result, consumers are able to enjoy more variety of goods of better quality at lower costs from the wages they earn. Hence, the consumer welfare is improved and their standard of living is raised. The purchase of cheaper imported raw materials and goods from countries that are more cost efficient helps to lower domestic
Critically assess the impact of the Internet and E-commerce on Tax Regimes in the Commonweath Caribbean.
Critically assess the impact of the Internet and E-commerce on Tax Regimes in the Commonweath Caribbean. Introduction Most, if not all, of the member states of the Commonwealth Caribbean derive their right to tax from their Constitutions.1 Section 48(1) of the Jamaican Constitution, for example, provides that '...Parliament may make laws for the peace, order and good government of Jamaica.' The Courts have continuously interpreted this right as one that is not unbridled and therefore, the governments of the region have to take every step to ensure that enactments do not contravene the provision of the Constitution.2 The stance of the Court was aptly put by Jackson JA in Inland Revenue Commisioners v. Lilleyman3 "...the courts need to be watchful for the constitutional rights of the citizens and against any stealthy encroachments thereon..." The power to tax, therefore, rests upon necessity and is inherent in any sovereign legislature under its general legislative power.4 The necessity being to provide the government with revenue necessary to meet its expenditure, thus satisfying the social, political and economic needs of its people. An erosion of the region's tax base will therefore be an issue of major concern. Globalization has impacted upon the region and as a result there has been a concerted thrust by most of the member states, to come together to attain a
Using transport examples throughout, explain the impact of market structure on economic efficiency and the ability of firms to set prices and make profits
Using transport examples throughout, explain the impact of market structure on economic efficiency and the ability of firms to set prices and make profits Economic efficiency is the use of resources in such a way as to maximise the production of goods and services. The structure of a market, its profitability, prices and output can affect its economic efficiency. There are four main types of efficiency to consider; productive efficiency, allocative efficiency, dynamic efficiency and X-inefficiency. Productive efficiency is at its maximum when the level of production is at the minimum of the Average Cost curve. Productive efficiency is at its maximum when price is equal to marginal cost. Dynamic efficiency is through the generation of abnormal profits (AR>AC), that are invested for future development. X-inefficiency is when a firm is not operating at minimum cost, due to organisational slack. Using the market structure of perfect competition as an example, there are many small firms producing homogenous goods, thus it is fragmented as opposed to concentrated. In the transport industry the local coach travel market represents the model of perfect competition quite well. No one firm can set of affect the price level, and so the firms are referred to as 'price-takers'. If a firm decided to sell their good or service at a price higher than that of others, consumers would
The Blessings and Challenges of Globalization.
. The Blessings and Challenges of Globalization. by Daniel T. Griswold The evidence of globalization can be seen everywhere: in the home, in the workplace, in the discount stores, in the newspapers and business journals, in the flow of monthly government statistics, and in academic literature. The backlash was on display in Seattle in November 1999, when thousands of protesters took to the streets to demonstrate against the ministerial meeting of the World Trade Organization (WTO). A short definition of globalization is "the growing liberalization of international trade and investment, and the resulting increase in the integration of national economies." Economist David Henderson of the Melbourne Business School expands the definition into five related but distinct parts: * the increasing tendency for firms to think, plan, operate, and invest for the future with reference to markets and opportunities across the world as a whole; * the growing ease and cheapness of international communications, with the Internet the leading aspect; * the trend toward closer international economic integration, resulting in the diminished importance of political boundaries. This trend is fueled partly by the first two trends, but even more powerfully by official policies aimed at trade and investment liberalization; * the apparently growing significance of issues and problems
