The history of supply economies such as Uruguay illustrates the resource curse theory
The history of supply economies such as Uruguay illustrates the resource curse theory. Uruguay is a Latin American country squashed between Brazil and Argentina, two large and better-known neighbours. Migrant populations arrived mainly from Italy and Germany at the end of the nine-teenth century and the country developed, rather unusually for Latin America, as a country of small farmers with relatively few large estates (haciendas). Labour was in short supply so wages were high, and family farms tended to dominate. A society developed with a relatively even income distribution and no great distortions of wealth. The only resource was the land, which was plentiful and reasonably fertile. A pastoral economy developed, specialising in production of cattle and sheep for export. Beef, leather and wool were exported in large quantities, mainly to Europe which was still experiencing rapid population growth and rapid industrialisation. Uruguay flourished in the early twentieth century and was frequently held up as model of Latin American development, much as South Korea is used today as a model of NIC development. However, Uruguay was no NIC. It developed no industries of its own but fulfilled the same function in the world economy as the southern states of the USA had done before and Saudi Arabia does today - the supply of raw materials to a distant market. The wealth created was
Explain in detail the complex circular flow of income model
Explain in detail the complex circular flow of income model (AS Economics) The circular flow of income model shows linkages between the main sectors in our economy. The basic circular flow of income model is made of of two key sectors, households and firms. Households provide 'factor services' to firms, and firms provide 'factor income' to households. Factor services include labour, enterprise, land and capital. In return for these factor services, households receive factor income, which therefore are wages (for labour), profits (for enterprise), rent (for land) and interest (for capital). When households receive this income as a reward for their factor services, they use it to buy the goods and services from the firms. This is called expenditure. This model is a simplistic version, as it assumes all households income is spent on goods or services. It doesn't take into account the economic affects of the government, the finance sector and the foreign trade. Using just households and firms does not show us the leakages and injections into/out of the flow (our economy). To make the model slightly more comprehensive, another sector can be added to the existing sectors of firms and households; the government. The government receives taxes from households through VAT and income tax as well as receiving corporate tax from the firms. This constitutes a leakage. Government
The UK and The Euro Zone
Galina Lyashenko The UK and The Euro Zone One of the main changes in recent years in the world economy - is appearance of a new sole currency for 12 European countries: Belgium, Germany, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal, Sweden and Greece. The main reasons for building a new currency are to rival the US dollar, and to strengthen and unite the European economy. There is a long pre-history of building the Euro with a several unsuccessful attempts e.g. the "Snake" system. Because of this previous experience and monetary losses, such countries as the UK and Denmark are undecided as to whether to join the Euro Zone. Should the UK join the Euro or to stay an independent country with their own currency and economic? This question has been very topical for the last years and still has not got unanimous answer. The are a lot of advantages for joining the Euro Zone. Firstly, with the British help the European Economy will succeed and grow faster and obviously this will make the trade links stronger. This will bring the Euro to more real rivalry with US dollar, which in the nearest future could replace the role of the US dollar. Taking into consideration that in the latest decade the USA economy had not grown very successfully. Secondly, the Euro will expand the tourism, which will bring more money to the country. Thirdly, as politics
Privatization:Privatization is a process in which the ownership transfers from Govt. hand to private hand.
Privatization: "Privatization is a process in which the ownership transfers from Govt. hand to private hand. Objectives: The main objectives of this programme are to reduce the drain of Govt. resources caused by losses of the state owned enterprises, create greater opportunities for the private sector to expand and modernize these enterprises, improve productivity, efficiency and profitability, develop a valuable capital market and release resources for development of social and physical infrastructure. The broad objective of privatization and deregulation are as follows. Creating a liberal economic environment: The main objective of privatization is to create a liberal economic environment. The private sector is not bound to work as to Gov.'s instructions so it ends the monopoly of Govt. Improving national productivity: Privatization helps to improve the national productivity. The main aim is to utilize the Govt. or natural resources to a maximum possible way. So in this way the national productivity increases. Improving efficiency and profitability: Necessary measures have been taken to safeguard the genuine rights and interests of the workers so efficiency of workers increases which results increase in profitability in every sector. Achieving rapid industrialization: The agenda of privatization covers a wide range of field like industries, banks, development
Hong Kong is basically a mixed economy, with most resources allocated by market forces but definitely not a pure market economy.
Hong Kong is basically a mixed economy, with most resources allocated by market forces but definitely not a pure market economy. In Hong Kong, most resources are owned privately and people are free to make production and consumption decision. However, the government also plays a minor role in Hong Kong's economy. For instance, national defense is administered by the government as only the government can afford to buy them. People do not pay for each unit they use but the government purchases it collectively for the entire nation. Providing national defense services to one individual does not mean there is less defense for others because all the people, in effect consume those defense services together. So, how do producers determine what to produce? As we all know, our want s are unlimited but our resources are limited, therefore it is simply impossible to produce all goods in H.K., we have to make choices Let's look at a typical demonstration and see how producers determine what goods and what quantities of goods to produce though price mechanism. In the ladies' market in H.K., Since those Rolex watches are so popular, the seller worries that they will run out of stock so he increases the price of those watches at least until new shipments arrive. When the Rolex watches become more expensive, some customers will choose to buy fewer of them and more of its substitutes.
Covent Garden Market.
Covent Garden Market I am a student from Westminster city school Boys I have been studying about Covent Garden and the history to it... history information to Covent Garden . History The area around Covent Garden stretching down to The Strand was, in mid Saxon times, A trading settlement known from contemporary charters as Lundenwic. Covent Garden derives its name ("Convent Garden") from the presence there in the Middle Ages of a garden belonging to Westminster Abbey. In the sixteenth century this land was acquired by Henry VIII and granted to John Russell, 1st Earl of Bedford. The Bedford interest was to determine the development of the site, which remained in family possession until 1918. Bedford House amid its garden occupied the southern side of the site, the rest remaining as mainly pasture until the succession of the 4th Earl in 1627. The framework of tire piazza which he built survives to dictate time modern appearamice of tire site. The stalls of market traders hawking fruit and vegetables gradually became an established feature of the square, and the Earl of Bedford, recognising the potential of a market sited between the City and Westminster, obtained the right to hold a market there by Letters Patent from Charles II in 1670. In the eighteenth century as the aristocracy moved to more fashionable new developments such as Dean Street in Soho and Mayfair,
Swot and Pest Analysis For Cadbury’s
SWOT and PEST Analysis for Cadbury's To develop an appropriate marketing strategy would involve creating a link between the external environment and the internal strengths of Cadbury's. SWOT analysis is the focus upon the strengths, weaknesses, opportunities and threats facing a business internally and externally. To enable a SWOT analysis to be carried out, research into Cadbury's current and future positions need to completed. This would result in building upon its strengths, minimise its weaknesses, seized its opportunities and cancel out the threats. STRENGTHS * Large established business * Good reputation * Wide portfolio of products * Good advertising (Coronation St) * Large target market OPPORTUNITIES * Sponsorship for sporting events * Diversify into a different market * Expand Nationally * Promote using large marketing strategies THREATS * Cadbury's main competitor Nestle launching a new product * More companies diversifying into the chocolate market * A large price war, taking Cadbury's off the market WEAKNESSES * Unmotivated staff in the work place * Too big a demand for a particular product PEST is split into four categories, political, economic, social and technological influences, which are all external factors. A PEST analysis identifys what external factors are going to effect Cadbury's in the coming months and years. POLITICAL -
Define and explain an Oligopoly - Characteristics of an Oligopoly An oligopoly is market form in which a market is dominated by a small number of sellers
OLIGOPOLY A. Define and explain an Oligopoly - Characteristics of an Oligopoly B. Outline the various theories of Oligopolies, e.g. kinked demand curve etc C. Collusion/Cartels - What are the costs and benefits? D. Game theory - Is it a useful model? E. Two case studies on Oligopoly markets Define and explain an Oligopoly - Characteristics of an Oligopoly An oligopoly is market form in which a market is dominated by a small number of sellers (oligopolists). The word is derived from Greek meaning few sellers, because there are few participants in this type of market, each oligopolist is aware of the actions of the others. Oligopolistic markets are characterised by interactivity. The decisions of one firm influence, and are influenced by, the decisions of other firms. Strategic planning by oligopolists always involves taking into account the likely responses of the other market participants. An oligopy is a form of economy. As a quantative description of oligopoly, the four-firm concentration ratio is often utilized. This measure expresses the market share of the four largest firms in an industry as a percentage. Using this measure, an oligopoly is defined as a market in which the four-firm concentration ratio is above 40%. An example would be the supermarket industry in the United Kingdom, with a four-firm concentration ratio of over 70%. In an oligopoly firms operate
Business Scenario - TVR
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A Summary of Chapters One and Two In The Book New Ideas From Dead Economists, by Todd Buchholz.
Lee Trent January 22, 2004 Macroeconomics 201 A Summary of Chapters One and Two In The Book New Ideas From Dead Economists, by Todd Buchholz In chapter one of the book New Ideas from Dead Economists by Todd Buchholz, there is an introduction to the study of economics. Chapter one defines the term economics as the choices people make. It also describes the influence of economics on the world and its importance. The chapter moves on to describe a man named Alfred Marshall. Marshall believed economics should be a science, but at the same time it should still cater to citizens. Some of the best information in chapter one about the study of economics comes sporadically, such as when the subject of economic fluidity arises. The book explains that economies are very fluid and are affected by a vast number of factors, thus, denying people from every being able to completely predict the market. "Weather, musical tastes, weight, income, inflation, political campaigns, and the performance of U.S. Olympic teams" (4) are only a few of the variables involved in determining consumer spending and, in turn, the state of the economy. The chapter closes reinforcing the idea that conventional economics do not explain everything. The emphasis in chapter two is on a man named Adam Smith. This is because Smith's theories were groundbreaking in the field of economics. Smith became
