Examine the difference between the Lewis and Todaro models of economic development. Discuss the view that neither model adequately explains the process of development in contemporary less developed countries.
Macroeconomic Analysis Essay 7: Examine the difference between the Lewis and Todaro models of economic development. Discuss the view that neither model adequately explains the process of development in contemporary less developed countries. The Lewis Model Consider this question "If an economy is a traditional backward economy then how does the economy transform itself into a modern industrial economy?" Looking at this question, eminent economist and Nobel Prize winner Sir Arthur Lewis set about creating the first duel sector model of economic growth. His model compares the traditional sector versus the modern sector, or in simpler terms the rural agricultural sector versus the urban manufacturing sector. First of all let me state what the characteristics are of such a backward rural economy according to Lewis. * The economy is essentially a subsistence economy. That is production is primarily for self-consumption. * There is no saving and no capital accumulation in the economy. * The economy is not market based but rather the emphasis is on families supporting themselves and trading among other families. Or to put it more formally, organisation of production is family based, not market based. * The most important of Lewis's assumptions that he makes about rural economies is that there exists "a surplus labour supply". To put this assumption into context
On Balance, are the transnational Corporations "good" or "bad" for nations and their citizens and for the global economy as a whole?
Heather Pollitt Crim/Soc Shane o'Neil Globalisation Group B On Balance, are the transnational Corporations "good" or "bad" for nations and their citizens and for the global economy as a whole? In today's society it is hard to imagine going to work for very little wages, or even sending a child out to work. Imagine having to work in really poor conditions and every day is a health and safety hazard. Well, unfortunately these are daily routines for those who work in some transnational corporations (TNCs). The transnational corporations are 'firms which [have] the power to co-ordinate and control operations in more than one country, even if it does not own them' (Dickens, 1998:177, as cited in Macionis & Plummer, 2000:367). These corporations, mainly the major ones are owned by a multitude of people, including stockholders and even other corporations. And one of the main reasons they wish to locate abroad is cheap labour. But can we say the transnational corporations benefit nations and their citizens? Well, one first area to consider is why do the TNCs want to locate abroad? The transnational corporations would probably answer they 'have to be where the goods are either grown or the oil extracted', (Cohen & Kennedy, 2000:119). However another reason is the potential to have cheap, unskilled workers? And unfortunately many workers tend to live in poverty and so find
Hog Industry in USA
[Author's Name] [Instructor's Name] [Course Title] Date Hog Industry in USA The growth of hog production and processing in current decades has been related with changes in the ownership and scale of operation of meat production in America and abroad. Related with this have been considerable changes in the demographics of the societies in which such operations are located. Until about twenty years ago, most hogs were grown on family farms with little outside labour in America. The change to significant scale, industry, often vertically-incorporated operations, generally with units in many locations, has enforced farm families out of hog production and even out of farming. The current operations are generally managed by non-resident administration, and run by appointed barn employees, often with high return rates. Additionally, these firms tend to purchase feeds and other provisions in bulk quantity, either through an affiliated firm or from the cheapest provider in a large region. This reduces home purchases, and may cause to the closing of trades and loss of families. The net impact in rural regions is a reduction in the number of steady family units and a rise in single, mobile employees. The economical problems surrounding significant-scale hog production and processing are broad-ranging and significant. Often, local societies and their people cannot run the
Does the History of Property Prices Determine If the UK House Price Bubble is About to Burst?
Does the History of Property Prices Determine If the UK House Price Bubble is About to Burst? Area and context of research The topic that I have chosen for my research proposal is based on house prices. I have chosen this subject because over the year's UK house prices have risen so dramatically making it difficult for people on low wages to buy a house. This topic has caused a lot of discussion with buyers and sellers as well as banks that give out mortgages. It has also made it into the news and caused a lot of attention in the financial press. There are many positive effects to this as well as negative ones. On the of the most obvious positive effects is that homeowners' asset wealth increases as the price of their house increases and the most obvious negative effect is that people who are wanting to buy a house can't because the prices are so high. The focus of this research proposal is to gather information that will help me to determine whether or not past examples and situations can be used to predict what will happen to the price bubble that the UK housing market is experiencing at the moment. I have collected some information to help me answer the question and also help me analyse it. Literature review I will be reviewing journal articles and books that talk about the housing market and the effects it undergoes when a 'bubble' occurs. I will also be reviewing
Globalization - growth of worldwide networks of interdependence - is not a new concept.
Part I Globalization - growth of worldwide networks of interdependence - is not a new concept. Countries have been intertwined for centuries. Globalization IS NOT Americanization. America was created through globalization (Columbus) and benefits from it, but is not the only source of globalization. Major effects of globalization that are "blamed on" America: * The spread of Christianity (preceded America's existence) * English language as dominant language (spread by Britain) * AIDS epidemic (started in Africa and Asia) * Music and video games (owned predominantly by British and Japanese companies) Some of our laws and practices are commonly praised (FDA and SEC regulations) as protection enhancers, while others (right to bear arms) cause others to view us with hostility. U.S. "soft power" is largely responsible for information revolution and frequently adopts the practices and culture of other countries, while acting as a filter for what will be successful and what will fail. Part II Globalization also IS NOT universality. In fact, it is a major cause of inequity between the rich and the poor, the haves and have-nots. Globalization is not as broad as most people think - national boundaries are more open but not irrelevant; religious beliefs and economic equality are not universal and often the cause of conflict. Globalization comes in many forms: * Smallpox
strategy of aldi in the french market
Strategy of ALDI in the French market Strategic Management 2008/2009 CONTENTS Introduction 3 Task A: External environment of ALDI 4 Porter's five forces analysis 4 Summary five forces 5 PESTEL analysis 5 Summary PESTEL 9 Opportunities and threats 10 Summary opportunities and threats 10 Task B: Aldi's resource capability analysis 11 Value chain analysis 11 Competitive advantage 15 Strengths and weaknesses 17 Summary strengths and weaknesses 17 References 18 Introduction: http://fr.wikipedia.org/wiki/ALDI ; http://www.distripedie.com/distripedie/spip.php?article162 My report will deal with the strategic analysis of a supermarket in a specific environment. I have chosen to work on the strategic analysis of Aldi, and more specifically to focus on the French market. Aldi is a German discount supermarket chain established in 18 countries. Aldi is the abbreviation for "ALbrecht DIscount". The company has founded in 1913 by Mrs Albrecht, but after the Second World War it has been managed by her sons Theo and Karl. But it is really in 1948 that the discount appeared. Later in 1963 ALDI has been divided in two companies (Aldi North and Aldi South) because of a discord between the two brothers conveniently the sale or not of cigarettes. The French market is contained of several supermarkets like Carrefour, Leclerc, Casino, and also hard discounter as Lidl, direct
In The Corrosion of Character, Richard Sennett reflects upon and discusses "flexible capitalism".
In The Corrosion of Character, Richard Sennett reflects upon and discusses "flexible capitalism". He claims that though this newer form of capitalism in theory may allow greater autonomy and livelihood (since routine and convoluted forms of bureaucracies and hierarchies are denigrated and criticized); he nonetheless believes that this system can only lead an individual to confusion, frustration and disarray. This is because he believes that despite flexible capitalism's positive attributes such as taking innovative risks, cooperative teamwork and flexibility in the work itself and its proceedings; its overall effects and results are often minute, inadequate and unsatisfactory. In flexible capitalism routine is viewed as negative and unproductive. However, it is not necessarily because its ideology corresponds with that of economist Adam Smith or the political theorist Karl Marx that the repetitive nature of work generally causes an individual to become passive, dull and dismal. Smith and Marx believed that routine resulted in self-doubt and destruction for the worker as a human because the worker would eventually view his work as being tedious and meaningless. However, in flexible capitalism routine is disregarded because 'change' and risk-taking is emphasized. In today's dynamic, rapid - paced economy, routine and custom are viewed as ineffectual and incompetent. Today's
Critically evaluate whether we live in a Fordist, Neo-Fordist or Post-Fordist society.
Critically evaluate whether we live in a Fordist, Neo-Fordist or Post-Fordist society. When the new black Model-T came off the assembly line and started in Ford's plant in Highland Park (Detroit) 90 years ago, the human industrial society began to change. Looking the same as any previous models, this Model-T was built only in one and a half hours. The saved ninety percent of labour hour rapidly led to 'The First Industrial Divide' of the western world. Even today, how deeply this industrial revolution, the so-called Fordism, had actually affected our society is still a controversial topic. In what following, an analysis of Fordism and Post-Fordism will be conducted concerning both current and historical examples as well as some classical arguments, in order to identify the society we are living in. When referring to the term Fordism, the frame of monotonous and simple jobs, standardized single products, intense industrial relations will occur immediately. One comprehensive definition given by Michel Aglietta (1979) is the 'regime of accumulation involving specific forms of capitalist production as well as social consumption norms.' According to Robin Murray (1989) (Cited by Madry and Kirby, 1996, pp.50), the Fordist production was based on four major principles, which are standardization, mechanization, scientific management and flowline production. These Fordist
Discuss the extent to which the principles of "Scientific management" (F.W.Taylor) are still relevant to modern organizations.
Robert Thornborough People and Organizations Discuss the extent to which the principles of "Scientific management" (F.W.Taylor) are still relevant to modern organizations. At the beginning of the Second World War, Taylorism "disappeared" and was replaced with another form of work organization: Fordism. Fordism appeared when Ford started producing Model T cars but by basing his production upon Taylorist lines. Scientific management was still used; there was an explicit distinction between management and workforce, each employee had a specific task to do and their task was timed. Fordism seems more closely attached to the production system of modern organizations than Taylorism does, since it includes Taylor's ideas but by also introducing new ones, and this is why this essay will be centred on the link between Fordism and today's production system: Toyotism. At the end of the 1980s, Fordism, which had been at the base of economic growth in the country for thirty years, fades away. Changes in demand, rise in the workers strikes... the organizations must react and readapt themselves, also in order to face the rise in foreign competition. The Japanese model of organization used since the end of the Second World War, Toyotism, was then adapted in Europe and the USA during the 1980s. But what can we say about this post-fordism twenty years later? The worker, who now sees his
Why do efficiency wages exist? What are its unemployment implications?
Why do efficiency wages exist? What are its unemployment implications? NC economic theory postulates that involuntary unemployment will eliminate over time by market forces and equilibrium restored by a fall in the wage rate. Firms can artificially create involuntary unemployment if they choose to adopt efficiency wages that profit maximise at the firm level. Efficiency wages imply real wage rigidity that may prevent labour mkt equilibrium. There are various efficiency wages: Solow condition recognises that there is a +ve relationship between wage and effort. Aim is to derive optimal wage rate such that elasticity of effort w.r.t. wage is = 1. A 1% increase in wage results in 1% increase in effort. This wage may be above mkt clearing wage thus involuntary unemployment may be generated. The level of unemployment is dependant on AD. Wages will not deviate from the optimal Solow wage regardless of economic activity. The derived wage minimises the cost per unit of efficiency. Shirking (Shapiro & Stiglitz 1984) condition recognises that workers may work or shirk (not work) It may not be possible or be too costly for a firm to constantly monitor employees and may be demoralising for employees at work. A non-shirking wage rate is derived that is optimal in eliminating shirking. The wage is positively dependant on: lower the involuntary unemployment, higher the unemployment