The Division of Labour & the Production Possibility Curve.
The Division of Labour & the Production Possibility Curve a) Primary production is the process of extraction of minerals from various natural sources, for example, the earth's crust or the sea. Here are two examples of primary industry, farming and fishing. b) Secondary production is the process of turning the raw, unprocessed materials that have been extracted, into something that can be sold for a profit. This process is called manufacturing. Two examples of manufacturing are, turning unprocessed diamonds into valuable gems, and the making of cars. c) Tertiary production does not actually revolve around a tangible product that has been extracted from somewhere. It is the supply of a service, for example, the education system or the retail of clothes. 2) The predominant reason why employment in the manufacturing sector has declined is because of cheap imports. It is cheaper nowadays for a business to import the products it needs than to manufacture the goods themselves. This is because of cheap labour overseas, in china for example, where workers are paid very low wages to produce a product like a television. The second reason why employment in the secondary sector has diminished is because the tertiary sector has grown, and so there is a demand for more workers, whereas demand has fallen in the manufacturing sector due to various factors. This is a clear sign of the
"Recently many British based manufacturers have been transferring production overseas - To what extent is this trend desirable?"
"Recently many British based manufacturers have been transferring production overseas. To what extent is this trend desirable?" Production is where most of the costs of a business are generated in the form of labour, machinery and in raw materials. Therefore if a successful business wishes to increase profits or price more competitively, then they will aim to reduce most of the costs of the business in the production of the product. The cost of living in Britain is very high compared to many places in the world, which is what I think is a main factor to why many manufacturers setup overseas. The cost of the land is very high, the minimum wage (£4.20 18+) is a lot higher than most other countries e.g. Mexico, and taxes are also relatively high. All these factors put together can increase the cost of production by a lot. There can be many advantages to manufacturing overseas. Especially when the manufacturing is in an LEDC (Less Economically Developed Country), as their currencies tends to be very weak compared to the pound, so exchanging Sterling for a currency of a an LEDC will usually be very profitable in terms that the company would be able to buy land and a factory for a lot less than they would in Britain. Therefore, if the company sell their manufacturing facilities in Britain and buy overseas they will undoubtedly have money left over, which can be invested in
Walmart, Monopoly.
The size of Wal-Mart is astounding. It is not only the largest company in the world, but in the history of the world. It is also the largest retailer in the United States, Mexico, and Canada. Because of its sheer size and impressive market power, Wal-Mart has been the envy of competitors, the bane of suppliers, and a godsend to consumers. Their efficiency gains and economies of scale enable them to charge lower prices than many of their competitors. Because of this market power, Wal-Mart is able to induce concessions from suppliers that want in on a piece of the action. On the tail end, customers may have mixed feelings about Wal-Mart, but they do know that Wal-Mart is able to give them the goods they want at the cheapest price. Wal-Mart's ability to persuade its suppliers to furnish them with the lowest possible prices is a concern to some. Antitrust law is the legal tool that the public and government have to combat anticompetitive business practices'. It is my intent to support the argument that Wal-Mart should indeed raise some legal eyebrows, but whether or not they are guilty of antitrust violations remains to be seen. To better understand the possible harms antitrust attempts to protect consumers from, an explanation of relevant economic theory is warranted. In order to make a distinction between harm and benefit, it is imperative to understand the theory of monopoly,
IN WHAT WAYS IS 'POST-FORDISM' HELD TO DIFFER FROM 'FORDISM'
IN WHAT WAYS IS 'POST-FORDISM' HELD TO DIFFER FROM 'FORDISM' Henry Ford, (born 1863- died 1947) founded the Ford Motor Company in 1903. In 1908 the company initiated the production of the Model-T (of which the company sold 15million) It was the first car of its kind to built using a new type of production, Fordism involves the mass production of consumer durables which are made on moving assembly line techniques operated with the semi-skilled labour of the mass worker. Before cars were produced by hand which was both time consuming and very expensive. The actual physical production of the car was also a problem due to numerous parts involved, the Model T took only 12.5 hours per car to be built from start to finish, a build time which would have been impossible to sustain on a continuos basis before. It was from this new process of the production line that Fordism took its name, he had come up with a way of producing cars that broke the overall production process down into hundreds and sometimes thousands of small, individualised, highly-specialised, parts. By introducing a complex division of labour, Ford reasoned (correctly) that costs could be lowered and profits increased. The production was a new way of thinking and doing, helped made possible by new advances in machinery. Fordism, or Henry Fords new ideas of manufacture, came about as a solution to a problem, that of
The Sport Obermeyer case
The Sport Obermeyer case describes the forecasting, planning, and production processes of a global skiwear supply channel. Although the company has a global supply network, most of its critical outwear products are sourced through the Hong Kong-based company Obersport, a joint venture between Sport Obermeyer and a Hong Kong partner. Obersport, in turn, manages supply and production processes in Hong Kong and China. Sport Obermeyer was founded by Klaus Obermeyer. Klaus used an informal approach to demand forecasting and product strategy. Klaus' son Wally is a recent Harvard MBA and takes a more analytical approach to the business. Case Hints ) production planning for short-life cycle fashion products; 2) operational changes the reduce costs of mismatched supply and demand; 3) coordination issues in a global supply chain. Production Planning for Short-Life-Cycle Fashion Products The production planning problem that Obermeyer faces is a complex optimization problem under uncertainty. You're not expected to formally solve the problem but should be able to identify key issues regarding demand uncertainty, the risk associated with producing a product with uncertain demand, and the general impacts of mismatched supply and demand. At the core of the problem is that it is costly to produce products that do not sell, and costly not to product products that will sell.
Pressures for Change in UK Farming.
Pressures for Change in UK Farming Contents . Introduction 2. Background 3. Pressures for Change 3.1 Economic 3.2 Consumer Awareness 3.3 Organic Demand 3.4 Supermarkets 3.5 Climate 4. Government Intervention 5. Conclusion 6. Bibliography Pressures for Change in UK Farming . Introduction Our task was to "consider underlying reasons for change and diversification in farming and the rural economy sector. Give particular attention to the identification of factors (pressures) brought about on the industry which have, are, and which are likely to be brought to bear upon agricultural business and the impact and consequences of such on the future for UK farming." Within this report I will be looking specifically at factors which have, will, and are currently having an impact on the agricultural industry and their resulting effects on agricultural business. The spider chart below (figure 1) illustrates the key pressures for change that any business in the rural economy sector must be aware of. Drivers for Change in Agriculture and the Food Industry 2. Background The Second World War brought the century long policy of non-intervention in farming in the UK to an end. The 1947 Agricultural Act introduced guaranteed prices for farm products, with deficiency payments funded by the taxpayer. With joining the European Community (EC), support for agriculture continued
Consumer Behaviour and the Labour Party
MA STRATEGIC MARKETING CUSTOMER DYNAMICS Consumer Behaviour and the Labour Party: A look at Tony Blair's Leadership Teacher: Clifton Kandler Student: Paula Fontenelle ID: fp205 Introduction This paper analyses how some of Consumer Behaviour concepts and theories are applied to Political Marketing. In order to guarantee focus and a more in depth evaluation of such techniques, the chosen "brand" for this report was the Labour Party, particularly during the 1997 and 2001 British General Elections. The purpose of this paper is to show how political and mainstream marketing are closely related and how the field of consumer behaviour plays a major role in electoral campaigning. Also, some of their differences will be pinpointed throughout the work. The paper starts with a brief history of the Labour Party and then, it introduces a few concepts of the consumer behaviour field regarding its similarities and differences to political marketing. After that, the writer analyses Semiotics as an important element of consumer behaviour studies and politics. In terms of consumer's decision-making theories, the Generic Model and the Balance Theory are applied to the Labour Party's campaigns of 1997 and 2001, with emphasis on the leadership of Tony Blair as their main icon. Postmodernism and specifically, the Positivist Paradigm is applied to Labour's electoral campaigning, followed
The Principles of Consumer Rights.
The Principles of Consumer Rights The modern consumer movement is largely a product of the 1960s with the foundation of the Consumers' Association in Britain. Ralph Nader was well known for his consumer campaigning in the United States of America and US President John F Kennedy declared to the US Congress that consumers have four basic rights. These were: * the right to safety * the right to be informed * the right to choose * the right to be heard. * To these 'Consumers International' added four more rights: * the right to satisfaction of basic needs * the right to redress * the right to education * the right to a healthy environment. Consumer rights were finally elevated to a position of international recognition and legitimacy, acknowledged by developed and developing countries alike. This single most important document for consumer protection serves as a vital lobbying tool for those campaigning for change. They provide both a framework and benchmark for government, particularly in developing countries, and for establishing their legal basis for consumer protection. The basic consumer rights are: * The right to satisfaction of basic needs - Access to basic, essential goods and services: adequate food, clothing, shelter, health care, education and sanitation. * The right to safety - To be protected against products, production, processes and services
Is the Consumer Always Sovereign in the Free Enterprise Market Economy?
Introduction to Economics Second Semester Essay Is the Consumer Always Sovereign in the Free Enterprise Market Economy? Theoretically, the free enterprise market economy produces a situation in which the law of supply and demand, in conjunction with a competitive economic environment and well-informed consumers guarantees consumer sovereignty. The consumer possesses a significant advantage over suppliers who must compete for their custom, effectively placing economic power in the hands of the consumer. However, problems arise when this theory is applied to the realities of national and international business economics. These disparities will be examined further in this paper. To begin with, it should be noted that at present no truly free market economy exists anywhere except in theory. Western liberal democracies, particularly the US, proclaim, promote and actively enforce the virtue and practice of free market capitalism, whilst stoically clinging to mercantilist principles of protectionism and monopoly control. This corrupted version of the free market has been termed 'Managed Liberalism'.1 Micro economic systems, such as those which continue to function in small communities at the local level, do display characteristics convergent with the classic theories of the free market as expounded by the early economic thinkers. Small firms compete for a limited supply of
Damages, and there assessment.
BLB 1115 Assessment 1 Id: 3212756 Damages I. Introduction Damages are defined as: The pecuniary compensation, obtainable by success in an action, for a wrong which is either a tort or a breach of contract, the compensation being in the form of a lump sum which is awarded unconditionally and is generally, but not necessarily, expressed in (Australian) currency.1 In the case when a breach of contract occurs, the party who suffers the loss as the consequence arising from such a breach is entitled to claim damages. An action for damages is a right for the party not in breach, i.e. the plaintiff, which is implied by the law. This right is based on the general idea that "wherever the law recognizes or creates a primary duty or obligation, a secondary duty or obligation is implied by law when a breach of duty occurs.2 The objective of awarding damages for a breach of contract is basically to compensate the person for their loss, not to penalise the wrongdoer.3This objective was precisely stated by Parker B in an English case, i.e. Robinson v Harman.4His Honour said that: Where a party sustain a loss by reason of a breach of contract he is, so far as money can do it, to be placed in the same position with respect to damages, as if the contract had been performed.5 By virtue of this statement, it may seem that the loss suffered by the party not in breach (hereafter called