Fordism and post-Fordism
Nick Holmes Student No. 0312103 Question 1 The terms Fordism and post-Fordism refer to different methods of work organisation. Fordism is the mass production of goods in highly developed economies during the 1940's - 1960's. Economies of scale were produced by spreading fixed expenses, especially investments in plant and equipment and the organization of production lines, over larger volumes of output, thereby reducing unit costs. Henry Ford opened the Highland Park Plant in 1913. This was the first mechanised factory, and made more than 200000 cars in its first year. The new factory removed wasted time that occurred from moving between jobs and allowed the pace of work to be remotely controlled. Fordism is a very rigid process, compared to the flexibility of post-Fordism. Post-Fordism is just small batch production, and also includes the global market. The role of labour in the 2 systems is very different. Fordism allows the worker to concentrate on just one simple task, where as post-Fordism workers are expected to carry out multiple tasks. Fordism allows workers to specialise. Under Fordism, workers found their responsibilities diminishing. Assembly line work is unpleasant in a mass production environment. It is physically demanding, requires high levels of concentration, and can be excruciatingly boring. As a consequence, Ford experienced very high labor
Discuss the differences between Fordist and Post-Fordist work.
Essay Title: Discuss the differences between Fordist and Post-Fordist work. This essay will focus on the differences between fordist work and post-fordist work. To make the statement clear, I will first present a general definition on both fordism and post-fordism which will involve the back ground of emergence of these two systems. Questions such as how do two systems work in different period, and how do systems developed economics in different ways will be also explained in the essay. Economic change driven by technology change, labour practice change, industrial organization change and market demand change in consumption patterns. Although there are conflicts between fordist work and post-fordist work, however, they may exist in the same society. Therefore, I will give some examples to support this point in the end. Fordism takes its name from Henry Ford, the American car manufacturer at the turn of the 20th century. The concept itself describes a particular form of economic process based on the idea of a production line. Henry Ford was the first person using the assembly line-the ultimate embodiment of division of labour theory. Ford set up plants in the USA and Britain at the start of the twentieth century to manufacture the Model 'T' Ford. The poster of his company is 'you can have any colour you like, so long as it is black'. This summarizes quite well what Fordist
Explain the theoretical rationale for the NPV approach to investment appraisal and compare the strengths and weaknesses of the NPV approach to two other commonly used approaches.
Financial Decision Making Essay Explain the theoretical rationale for the NPV approach to investment appraisal and compare the strengths and weaknesses of the NPV approach to two other commonly used approaches. Introduction Net Present Value (NPV) is defined as the different between an investment's market value and its cost. NPV rules states that we will accept the project if it creates a positive NPV, and will reject the project if the NPV < 0. In other words, NPV is a measure of how much value being created today by undertaking investment. Managers need to make investment decisions and calculating NPV can help them to see the likelihood of investment being profitable. There are a variety of ways to estimate net present value, such as the discounted cash flow approach and the discounted payback method etc. However, there is risk, because there is no guarantee that the estimations will turn out to be correct. The other two commonly used approaches are Internal rate of return (IRR) and profitability index (PI). Main An investment is worth undertaking if it creates value for its owners. Under certain situations, using the net present value rule maximises share price and maximises shareholders' wealth. For example, a housing company is considering a proposal to build new block of flat. Required initial investment is £10m. Payoffs are cash flows of £2m in year
Discuss the empirical evidence supportive of and against market efficiency.
) Discuss the empirical evidence supportive of and against market efficiency. The efficient market hypothesis (EMH) predicts that market prices should incorporate all available information at any point in time (Clarke, Jandik and Mandelker, p.9). A market is seen as efficient if it incorporates all new information in its security prices in a rapid and unbiased manner, meaning investors should not be able to systematically outperform the market. Different kinds of information influence the security values. Hence, there are three versions of the EMH depending on the information assumed to be impounded in prices. weak form: share prices fully reflect the information implied by all prior price movement (Clarke, Jandik and Mandelker, p.10). semi strong form: share prices respond instantaneously without bias to newly published information. (Clarke, Jandik and Mandelker, p.10). strong form: eshare prices fully reflect not only published information but all relevant information including data not yet publicly available.(Clarke, Jandik and Mandelker, p.10). Since the introduction of the EMH, extensive empirical research has been done towards the EMH, with evidence both for and against it. Evidence in favour of the EMH Tests of weak form efficiency originate from the random walk theory, which implies that successive price movements should be independent; future stock prices
Summary of "'Global Economic Governance after the Crisis: The G2, the G20, and Global Imbalances.' Bank of Korea Working Paper, 2011
Walter, Andrew. 'Global Economic Governance after the Crisis: The G2, the G20, and Global Imbalances.' Bank of Korea Working Paper, 2011 Main Argument Walter starts off by introducing the three views in how people are predicting the global economic system will change. In that the system will involve either, greater representation, less representation, or a mixed representation. In addition Walter details the conflict between the US and China, both in an effort to shift the burden of adjustment onto the other. Predictions Differing viewpoints on the future of the Global Economic System . Walter looks at several views on what kind of system that will be emerging at the end of this first decade. View 1: the global crisis delivered a “knockout” blow to an already weak system, and that instead of the G7 the G20 would be able to manage the government better View 2: rather than have a G7, it assumes we are moving toward a G2, being China and the US. Some project China to be a hegemon in the making which will one day over-power the US View 3: As Hank Paulson argues, “the strength of the relationship between the US and China will be critical to the functioning of the G20 and global cooperation” (Walter) China and the US and the burden of adjustment Brief History. Post WWI the UK and Germany were in debt, while the US and France were in surplus. Keynes, being the
Use appropriate analytical tool(s) discuss the costs and benefits of globalization in the context of India
Page | ________________ GBI – Assignment No. 1 200905799 ________________ Use appropriate analytical tool(s) discuss costs and benefits of globalization in the context of globalization processes of one the following emerging economies China India Russia Brazil Over many centuries, human societies across the world have formed increasingly closer contacts. But recently, the pace of global amalgamation has dramatically increased even more. Extraordinary changes in communications, transportation, and computer technology have given the process a new drive and made the world more interdependent than ever. So many corporations manufacture products in many countries and sell to consumers around the world – these are what are known as multinationals and are possibly, one of the major contributors to globalization. Money, technology and raw materials move ever more swiftly across countries. And not just these, in fact, even people have become directly involved in the process – the movement of labour internationally, triggered by labour mobility. Along with products and finances, ideas and cultures flow more freely. As a result, laws, economies, and social movements are forming at the international level. Globalization can be defined as the movement of goods and services across national borders. “Globalization is a process of interaction and integration among the
Looking at the key indicators of the macroeconomic environment, what policy instruments are available to the national decision-makers, and to what extent are they now limited by factors beyond their borders?
Student Number: 2011432859 Looking at the key indicators of the macroeconomic environment, what policy instruments are available to the national decision-makers, and to what extent are they now limited by factors beyond their borders? Assignment 1 Global Business Issues Module: 26383 Tutor: Dr Yue (Tina) Xu Student Number: 2011432859 ________________ Whilst the majority of producers and consumers make choices that shape up the economy, it is the government’s actions that influence policies and it is the policies that endeavour to guide decisions and achieve rational outcomes. The government’s manipulation of policies leads to the topic of macroeconomics where it is concerned with the economy as a whole. Anderton (2006) explains that one of the reasons why macroeconomics is useful is because it provides data about the performance of an economy. With this data, it allows economists to compare the current performance of the economy with the past and that it also allows the comparison with other economies. The main objectives of macroeconomic policy include a high but sustainable rate of economic growth, low unemployment, price stability and balance of payments equilibrium. The direction of this essay will be firstly clarifying each indicator of macroeconomic performance and its importance to the economy along with the various policy tools available to governments,
Externalities and overfishing in the fishing industry
Introduction Due to our large demand for fish we are overfishing the oceans. This is damaging our fish stocks beyond repair. The EU has tried to make the fishing industry more sustainable by implementing quotas, although there are other options available with differing results. I will first analyse why overfishing occurs and then the methods which could be used to prevent it. Why does overfishing occur? In markets where externalities exist the quantity of the competitive equilibrium (Q1) is different to the socially optimal level, SOL, (Q2) as shown in Figure 1. This model assumes there are no transition mechanisms when moving from one equilibrium to another. Negatives externalities are evident in the fish market. A negative externality exists when “the actions of one party imposes costs on another” (Pindyck and Rubinfeld, 2009). There is a large demand for a small number of species of fish. Since the fish stock cannot be replenished as quickly as it is caught, these popular species become less abundant which in turn makes them more costly to catch. Large-scale fishing can also disrupt food chains and harm ecosystems. These costs are shown in Figure 1 as the Marginal External Cost (MEC) curve. The Demand curve represents the marginal benefit to society and the Supply curve represents the marginal cost (MC) to the producer of producing one more unit. The
"Can financial markets ever be considered to be truly efficient; given that insider trading is prohibited in a number of jurisdictions? Further, what might have been the pitfalls and the benefits of relaxing insider trading prohibitions?
Front page AC32820 – Financial markets and institutions assignment Total word count - 1984 Assignment Question: "Can financial markets ever be considered to be truly efficient; given that insider trading is prohibited in a number of jurisdictions? Further, what might have been the pitfalls and the benefits of relaxing insider trading prohibitions in the context of the recent (and on-going) difficulties and uncertainties in financial markets?" This report has been undertaken to consider whether financial markets can ever be truly efficient, with specific relation towards insider trading and the connotations different proposals on the regulation of this activity could have on the on-going difficulties and uncertainties in the financial markets at present. To explain some of the fundamental terms this report will be discussing; A financial market is any market place that allows traders to buy and sell financial assets such as bonds, shares, commodities, currency’s and derivatives. They are typically defined by having transparent pricing, basic regulations on trading, costs and fee’s and market forces determining the prices of securities that trade. Examples of financial markets include the New York stock exchange (NYSE) and the forex markets. Insider trading defines the buying and selling of securities by someone who has access to material, non public information
Critue of Porter's national diamond in his 1990s book Competitive Advantage of Nations (CAN).
Severe critiques (Krugman, 1994, Rugman et al. 1992, Reich, 1990) have been made to the concept of national “diamond”, developed by Porter in his 1990’s book “Competitive Advantage of Nations” (CAN). The model attempts to explain how nations gain and sustain competitive advantage. Although Porter’s book was groundbreaking (Grant, 1991), and had a major impact on the literature considering the dozens of reviews which followed, it failed to fulfill its ambitions (Davies et al., 2000). In fact, the model represents a useful tool to analyse current situation but has little to say about causes that led to such situations because of its limited concern with historical factors. Moreover, it fails to provide a strategic prediction on how a nation or industry can gain and sustain competitive advantage. This essay briefly presents the concepts that lie at the heart of CAN and the structure of the “diamond”. Then, it outlines the limitations of the model as proposed by Porter, and focuses on three of the major ones: a) Scope: doubts about existence of national diamonds, considering growing importance of transnational corporations in an increasingly globalised market environment (Rugman, 1991, 1992 & 1993, Krugman, 1994); b) Role of government and State's economic policies: failure to give the appropriate importance to the State, which has a major role and can
