Why is Bangladesh considered to be a Less Developed Country and what needs to happen for this to help it become a More Economically Developed country like Thailand or Malaysia?". Bangaldesh gained its independence from pakistan in 1971 and as the former Indian state of east Bengal it has always been in severe economic straits. This is principally because it is one of the most densely populated countries in the world and its economy is based chiefly on subsistence farming which has practically ruined the landscape. The country is also prone to natural disasters as it is situated in low lying areas where flooding is a regular occurence and this has an obviously severe effect on the population, most of which lose their homes on a regular basis while millions more are displaced due to these disasters (Lewis 2011). There was been some effort of late to diversify the economy but a much larger effort needs to be undertaken for this to happen. Other Far Eastern countries like Thailand and malaysia have diversified their economy decades ago, with the former basing its economy on tourism and the latter on financial services (Lewis 2011). However Bangladesh remains at a distinct disadvantage to make this happen as it is a landlocked country and some of its borders are also disputed. The country also suffers from a lack of political stability so it is crucial that this is sorted out first before any attempt is made to really enter the big league where the economy is concerned (Quisumbing 2011). Diversifying the economy in Bangaldesh An area which Bangladesh can explore with greater zest is the services industry. With a potential workforce of over 100 million, the country is definitely ready to take on the economic challenge. There already exists a substantial industry in manufacturing where several companies...
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"Provide a review of the nature and scope of current government involvement in tourism in the UK, at the different levels of public sector operation. Provide also an explanation of the motives for government involvement, making particular reference to tourism's economic significance." Word count (2500-3000): 2937 1. INTRODUCTION The tourism industry is believed to be the world's largest industry, and as such, involves a vast array of public and private sector organisations. This assignment will look at the types of government organisations that structure the UK tourism industry. It is important to look at the volume and value of the tourism industry first, so that the reader can appreciate the scope of tourism in the UK. Identifying the roles and policies of the public organisations, will show the nature of government involvement, and the section on VisitBritain will highlight the recent changes to tourism structure. This will give the reader a broader picture of the UK tourist industry, and will allow an understanding of the motives behind government involvement, which will provide the focus for the next section. The conclusion will highlight the areas studied in the assignment, and a give a brief summary as to its findings. 2. GOVERNMENT INVOLVEMENT IN UK TOURISM 2.1 The volume and value of tourism in the UK 2.1.1 Introduction Tourism can be defined as: 'The activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business or other purposes' (World Tourism Organisation (WTO), 1991). Therefore, we can ignore the common myth that 'tourism is only leisure holidays', and see that it also includes business travel, day trips, and visiting friends and relatives (VFR). Many people also believe that tourism is only international, when in fact, 80% of all tourism in 2001 was domestic, and it contributed ?26.1 billion to overall spending by UK residents....
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This essay introduces an approach to studying media, which deals with the interplay of economic, political, social and cultural life. The political economy approach we are outlining here is clearly critical and its focus will mainly comprise of the fundamental political and economic aspects of media in the news and current affairs sector. The historical development of current structures of ownership and production practices will also be exemplified in this essay, confining the main emphasis on four historical processes. A detailed argument of the advantages and disadvantages of analysing media with a critical political economy approach will also be discussed in this essay. Definitions of terms and several substantiating examples will be included to support the arguments mentioned. Golding and Murdock (1991) in their article draw several terms and concepts used in 'critical political economy'. The detailed definition and explanation of the term points out that social relations and the exercise of power play an impacting role in shifting cultural perspective in society - observing how the making and taking of meaning in productions are shaped at every level of social relations. Analysing the nature and source of regulation limits in media is also an essential point to study the way meaning is made and re-made through the concrete activities of producers and consumers. As highlighted by Golding and Murdock (1991), four historical processes mentioned are especially central to the critical political economy of culture - the growth of media, the extension of corporate reach, commodification and the changing role of state and government intervention. These processes will subsequently lead us to expand into the advantages and disadvantages of the critical political economy approach. The growth of media as explained by Golding and Murdock speaks of how society views the media industries as the logical place to begin an analysis of contemporary culture...
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If you think you've had to meet some tough challengers in your time, consider the historic sales call made by Robert Fulton, the famous American who manufactured the world's first commercially successful steamboat. His meeting was not with the average, easy-going small businessman or head-of-house-hold trying to keep his head above water. His prospective client was Napoleon Bonaparte, who was busy trying to blast all the world's ships out of the water to become ruler of all Europe. Fulton made what he felt was a very effective presentation. Napoleon turned on him and screamed, "What, sir? Would you have me make a ship sail against the wind and currents by lighting a bonfire under her deck? I pray you excuse me. I have not time to listen to such nonsense." Fortunately, Mr. Fulton did make other sales calls. He produced the first money-making steamship between New York and Albany and changed the entire course of world history. And world history keeps on changing. Surely it was sheer coincidence that Adam Smith's, The Wealth of Nations, was published in 1776, the year of the birth of the United States. His book proposed open competition, a free marketplace and the creation of wealth for the hardworking individual. That was some year, 1776. It produced the most effective political system in the world and an economic theory that produced more personal wealth than the world had ever seen. Now here we are, 220 years later, undergoing a full-scale national debate about the purpose and role of this very government, tying with it dire warnings about the consequences of not balancing the federal budget soon and getting our country's financial house in order. As the debate continues - augmented by the energy of the current presidential election season - we stand on the last leg of the 20th Century. The year 2000...
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South Korea (henceforth referred to as Korea) is being looked upon as the role model by different countries for their economic development. Korean history and culture, state intervention, policy reforms, and Chaebols have been the corner stones for Korea's success. As B N. Song (1990) describes "The way the Korean economy has grown, and the way the Korean people have shared the fruits of economic growth, have been greatly influenced by Korea's history and culture." Korea was among the very poorest countries in the world, the out come of the Korean War was devastating. Recovery of the country started in early 1950's, with extensive support and assistance from United States. According to B N. Song "The period from 1953 to 1961 was one of very slow recovery from the war…the trend curve changed abruptly, however with the beginning of first five year plan in 1962.Thereafter, Korea's climb up the ladder of development accelerated…by 1970 Korea had achieved NIC (Newly Industrialising country) status." In Korea the Chaebols and the State, played an important role in initiating development. With the start of the first five-year plan, "The Korean economy entered the take off stage." as, described by W W. Rostow (1983). The development policy chosen by many developing countries is inward looking rather than outward looking because they believe it to be safe and correct. But it was the boldness of Korea to choose an outward looking growth strategy, which paved the path to its success. B N. Song describes Korea's growth strategy as " It is growth oriented than equity oriented…Korea's strategy has been industry oriented rather than resource or service oriented… Korea's approach has been outward looking rather than inward looking." The economic growth started with the rapid industrialisation of export industries. According to C B. Hollis and M Syrquin (1977) "The expansion of...
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Introduction: Because of all the fiscal leakage from the huge informal economy -not to mention an upper class with clever accountants- tax evasion ranks among Mexico's favourite pastimes. Mexico is Latin America's second-largest economy, but currently it has one of the region's lowest tax-collection rates: Mexico collects taxes worth only 11.2 percent of its gross domestic product. Countries such as Brazil and Chile collect more than 15 percent, and the United States takes even more. Over the last seven years, oil has accounted for between a fifth and a third of public income. Last year, the Finance Ministry had to cut spending several times to make up for falling oil prices. Mexico's economics analysts reckoned that, effectively collected, taxes could, in a healthy way, boost government income and ease dependence on oil exports. President Vicente Fox sent to the congress a new tax law "initiative" that proposed to raise nearly 10 percent of total revenue, by means of applying a Value Added Tax (or IVA, according to its Spanish acronym) rate of 15% to the sales of food, medicine and press publications; all of which were currently tax-exempted. The reasoning of President Fox's government departs from the position that the fiscal reform will bring, as a consequence, a firmer control in the short term over inflation, in spite of the increase of the IVA; diminutions of credit interest rates, and will reactivate the country's economy to guarantee a maintained average growth of an annual 7%, with a consequent constant increase in employment and job creation levels, guaranteeing to increase the standard of living of the population. That sparked outrage among millions of average Mexicans, knocking down Fox's approval rating to about 50 percent from a high of 80 percent, according to independent surveys. Legislators said that the Fox plan would have punished the country's poor, who...
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Australia is quite a rich economy in terms of Gross Domestic Product (GDP) per head of population, ranking 17th in the world. However, this has dropped from a ranking of fourth in 1950, and ninth in 1970. This could be seen as a sign of poor economic performance, however other factors that contribute towards a high standard of living, such as environmental considerations, need to be taken into account. For much of the period up to the 1960s most of Australia's exports were in wool, food and other commodities. Since the mid 1970s iron ore and other ores have been a significant export. Heavy dependence on overseas markets and inflows of capital and people meant that when the world economy turned down, we were severely hit. In the mid 1970s, early 1980s and early 1990s we were hit by slowdowns in world trade and industrial growth in the major economies. Up until the 1960s the United Kingdom was our most important customer and provider of imports. Since then, Asia has increased in importance as a customer and provider of manufactured goods. In recent years, we have also seen growth in exports from the services sector – for example, tourism and foreign students paying to study in Australia. It is apparent from research by the Australian Bureau of Statistics that the make up of Australia's export commodities has changed significantly from the traditional dominance of rural products. Three main changes stand out. Firstly, the decline in the relative importance of our rural exports. In 1950 textile fibers made up 65 per cent of the value of our merchandise exports, and in 1997 it only accounted for 10 per cent. Secondly, the strong growth in exports of minerals and fuels. And lastly, the growth in the export of services. This is largely the product...
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As a coherent economic theory, classical economics start with Smith, continues with the British Economists Thomas Robert Malthus and David Ricardo. Although differences of opinion were numerous among the classical economists in the time span between Smith's Wealth of Nations (1776) and Ricardo's Principles of Political Economy and Taxation (1817), they all mainly agreed on major principles. All believed in private property, free markets, and, in Smith's words, " The individual pursuit of private gain to increase the public good." They shared Smith's strong suspicion of government and his enthusiastic confidence in the power of self-interest represented by his famous "invisible hand," which reconciled public benefit with personal quest of private gain. From Ricardo, classicists derived the notion of diminishing returns, which held that as more labor and capital were applied to land yields after a certain and not very advanced stage in the progress of agriculture steadily diminished. The central thesis of The Wealth of Nations is that capital is best employed for the production and distribution of wealth under conditions of governmental noninterference, or laissez-faire, and free trade. In Smith's view, the production and exchange of goods can be stimulated, and a consequent rise in the general standard of living attained, only through the efficient operations of private industrial and commercial entrepreneurs acting with a minimum of regulation and control by the governments. To explain this concept of government maintaining laissez-faire attitude toward the commercial endeavors, Smith proclaimed the principle of the "invisible hand": Every individual in pursuing his or her own good is led, as if by an invisible hand, to achieve the best good for all. Therefore any interference with free competition by government is almost certain to be injurious. Although this view has undergone considerable modification by economists in the light of historical developments since Smith's time,...
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Hawaii, with an area of 28,313 sq. km (10,932 sq. mi.), is the 43rd largest state in the U.S.; 6.9% of the land is owned by the federal government. It consists mainly of the Hawaiian Islands, eight main islands and 124 islets, reefs, and shoals. The major islands in order of size are Hawaii, Maui, Oahu, Kauai, Molokai, Lanai, Nihau, and Kahoolawe. Population growth has increased by 80,000 persons over the past five years. Demographics show a large number of Hispanic origin: Asian Hispanics are the most populated with white Hispanic and Asian non-Hispanic following. Hawaii's economy has been long dominated by plantation agriculture and military spending. As agriculture has declined in importance, the economy has diversified to encompass a large tourist business and a growing manufacturing industry. Hawaii's economy has changed drastically since statehood. In 1958, defense, sugar, and pineapple were the primary economic activities, accounting for 40% of Gross State Product (GSP). In contrast, visitor-related expenditures stood at just over 4% of Hawaii's GSP prior to statehood. Today the positions are reversed; sugar and pineapple constitute about 1% of GSP, defense accounts for just under 11%, while visitor-related spending comes close to 24% of Hawaii's GSP. The movement toward a service- and trade-based economy becomes even more apparent when considering the distribution of Hawaii's jobs across sectors. The share of the economy's jobs accounted for by manufacturing and agriculture have declined steadily since 1959 and each currently makes up less than 4% of total jobs in the economy. At the same time, the shares of jobs in wholesale and retail trade and in services have risen, ezding at about 23% and 28%, respectively. Since 1991, Hawaii's economy has suffered from rising rates of unemployment. This ezds in marked contrast to the period 1980 to 1993, when the state enjoyed very...
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Economic globalisation, nationalism and economic reforms in India- the literature Anusri Pal Senior Research Fellow BRIC, NSB Business School. Introduction: The last quarter of 20th century has seen a wave of economic policy reform in the developing world. This wave of reform had been preceded by the state-directed effects of economic development, where the goals were to achieve self-reliance and import substitution industrialization. These goals seemed justified considering the agricultural nature and colonialism pattern of their economy. The economic liberalisation covers a number of aspects of policy, but the central issue is to define the relative role of the state and the market in the operation and management of the national economy. The contemporary movement in economic policy reform has involved the retreat of the state and the shedding of many of its economic functions in favour of the market. In the process of globalisation, the â€˜internationalâ€™ economy becomes more closely integrated, with domestic economic agents increasingly oriented to the global market rather than to particular national markets even as the state continues to remain central to national economic development. Thus it is equally necessary to consider also the opposing the in the form of economic nationalism to understand the economic policy reform. Thus, economic globalisation and economic nationalism are then two fundamental forces that have been shaping the world economic situation over the last few centuries. Both these forces are integrally linked with â€˜marketsâ€™ and â€˜statesâ€™. Thus, economic nationalism simply represents another level of working of markets and states. The rise of globalisation: The origins of economic globalisation lie in the rise of capitalism in Europe and the process was reinforced by the rise of industrialization that arose as a spontaneous development in Great Britain, and aided directly and indirectly by state. After achieving its own industrialization, Britain turned towards liberalism in the 19th century and as a...
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Karl Marx was born in Frier, Germany, in 1818. Karl Marx is the person who created the idea of Communism. He did many things to help Communism during his life. To start it off, in January 1846, he set up a Communist Correspondence Committee to link together all of the socialist leaders that were living in different parts of Europe. Then, because of his ideas, Socialists in England were influenced by his ideas held a conference in London where they formed the Communist League. After the Communist League was formed Marx founded a branch in Brussels. In a meeting of the Communist League's central committee in London, in December of 1847 many things were decided. Belonging to this committee Marx and others decided on the main goals. The main aims of the organization were to overthrow the bourgeoisie, the domination of the proletariat, the abolition of the old bourgeoisie society based on class antagonisms, and the establishment of a new society without classes and without private property. Now the last characteristic resembles the main idea of modern day Communism. Karl Marx wrote a 12,000 word Communist Manifesto in sex weeks. The Communist Manifesto was published in February of 1948. The following month after the Manifesto was published he was expelled from Belgium. Karl Marx also established a Committee for public safety. This committee helped protect people from authorities because some were hurt or bothered because of their political beliefs. During his life he lived in many countries and spread his idea of Communism throughout the world. The reason why he stayed in different countries was because he was expelled from some because of his beliefs. Karl Marx is a very big figure in the history of the world because many countries use the idea of Communism in their country. In some...
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After reviewing the Defending the Brazilian Real case study, I was amazed at what I learned. How can a country that is such a known for its festive atmosphere and abundance of natural resources, be going through such economic turmoil? I'm sure no one in the United States could imagine their rent doubling every 10 weeks. That their credit card charged 25% interest. That the costs for food and clothes increased by 40%. That the value of their savings declined 2000%. In a year! Well in my research, I learned that this is what the citizens of Brazil experienced for ten years, 1987 to 1997. During those ten years, 40% of GNP was eaten up by inflation, which means nearly everyone got rid of cash as fast as possible, because it literally lost value in their pockets. And the majority of people were reduced to buying only the essentials of life, which had a devastating effect on industries that produced all kinds of goods and services. In the case study, the reader is introduced to the Brazilian economy at its turning point away from hyperinflation, with the introduction of the Real Plan. With steady economic improvement, the Brazilian government pursued economic policies to transform its previous system to a market based system. The Real Plan (also known as the Plano Real) was designed by then Finance Minister, Fernando Henrique Cordoso, to drive inflation out of the Brazilian economy. When implemented in 1994, annual inflation rate was running at 1000%. This level discouraged economic activity and foreign direct investments (FDI). To fight inflation, the Brazilian government replaced it's previous currency, the cruziero with the real. The real was pegged to that of the US dollar. Interest rates were repeatedly increased to maintain the value of the real to that of the US...
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The economies of Cuba and Puerto Rico are very similar during the 16th, 17th, and 18th centuries. As Spain colonized these two islands in the 16th century under the idea that gold was abundant. Thus in turn the islands became a safe port for Spain and her vessels. It also set out to be a huge migration from the Spain to the islands, because everyone was set to search for gold. . This turned out to be short lived as the mining of gold peaked in 1517 till 1819. By Spain using Cuba and Puerto Rico for mining gold they needed slave laborers as the local Indians. The Indians soon became unsatisfied with their new conditions of living, they became hostile and many not able to cope with being slaves committed suicide and genocide. By 1540 - 1550 silver was discovered in Mexico and Peru. As Spain found its' new source of income in Mexico and Peru, it left Cuba and Puerto Rico to literally fend for themselves. By the 1590's their economy began to prosper by cattle breeding and farming as this lead to new jobs on the islands. This new slow and uneven growth led supplies to be more expensive. By the 17th century the cabildos began to govern migration, basically they stopped migration. The Spanish government implemented regulation and restrictions, which in demand increased prices and taxes. As a result, many began to use the black market in order to purchase contraband. At this time agriculture also developed and farming expanded with sugar, coffee and tobacco crops. These new crops also served to encourage new settlements. No longer a remote military outpost, food shortages and inflated prices worsened. Supplies did not increase and money was not sent from Spain. The cost of goods did not decline but contraband...
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The labour mobility problems that are created when a common market for labour is extended to more countries have been a major concern of the European Union when considering expansion because member states have always feared their economies would suffer due to the cheap labour coming from poorer nations. Considering the fact that the recent expansion added ten members eight of which have significantly lower wages than other countries and large labour forces makes this concern even more pertinent. Since labour mobility is part of the core freedoms in the Union, the Treaty of Rome that was put into effect in 1958 committed member states to allow for the free movement of labour. This implied that nothing would stop labour from moving within member states and there will be no discrimination against workers based on their nationality, provided the nation is within the customs union. Even though the European Union has always had a great extent of labour mobility, the reason why the nations already within the union fear the consequences of the extension of the common market for labour after the enlargement are the rising unemployment rates observed in recent years. This is mainly because in the EU the job market has only grown by 0.5% from 1980 to 1993 as opposed to the 1% observed in Japan and the 1.5% observed in the US. This essay will therefore assess the extent to which the fears of the European Union have realistic foundations or not. In order to determine the effects of creating a common market for labour we first must see how wages are determined within these economies and why they differ. Wages are determined by the marginal productivity of the last labour unit employed because a firm can only afford to hire workers if they generate enough output...
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When you think of growing old you think of spending time with family and friends, traveling and feeling financially secure to be able to retire. Unfortunately in today's society the elderly is beginning to wonder if they will be able to retire, if social security will be available to them, if their families will be able to care for them or will some of them be forced to live in a retirement home. These hopes and fears are realized to all elderly people, weather they live in the United States or in other countries. In the past, China has been focused on keeping their population under control and not focusing on their aging population. During the baby boom of the 1950's, China made it so couples could only have one child per family to control the countries population growth, which in fact is coming back to hurt them now. With so many elders retiring and drawing social security, there are not enough workers paying into the social security system to keep up with the demand. China has the largest population on elderly in the world with 120 million elders in their society and by 2050 China will have to deal with how they will be able to support over 400 million people over the age of 60. Traditionally in China, it is the oldest son's responsibility to take care of the parents. The parents will live with the oldest son who provides them with everything they need finically and the other children are their to offer emotional support for the parents, but over the decades these roles have changed. Do to the fact that couples can only have one child per family and it is better to have a son to take care of you, couples give their daughters up for adoption...
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Since World War II, Japan's economy has seen incredible growth with rising prosperity and wealth, providing jobs and security for many as well as offering a broad range of opportunities for foreigners. This economic uptrend, however, was followed by a harsh letdown and one of the worst financial crises in recent economic history. Fluctuations in an economy are cyclical and pose consequences for the various demographics in its society. The burst of the Japanese bubble economy experienced these cyclical problems on a highly inflated level. The day laborers, foreign guest workers and emerging new homeless of Japan have since faced similar hardships as individuals seeking to fill spots in a dwindling job market. They face serious competition amongst each other, where changes in one demographic may strongly affect one another, and significant problems that illustrate some important underlying themes about Japanese attitudes toward employment in both a corporate and public sense. As in any healthy economy, fluctuations are a normal occurrence. Competition in various markets creates new jobs and leaves behind old ones. What is often overlooked in the economics here is that with these jobs, many of the individuals working them are left behind as well. In his article, Guzewicz points out that society tends to emphasize economic success rather than failure. This has deep implication for the workers that are left behind, as they typically go unnoticed and under the radar. The day laborers, foreign guest workers and new homeless come to represent this group in Japan, as they are competing for many of the same lower-level and part time jobs. They are economically linked by their necessity for jobs to provide for themselves and their families. They are also linked by the inherent social struggle they face as the Japanese economy rebounds from its collapse. In such a...
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The purpose of this report is to analyze the advantages and disadvantages of different distribution methods available to Beijing Oasis and decide which method should be implemented. Based on the advantages and disadvantages of each distribution method, a recommendation will be offered as well as implementation of that decision. Statement of the Problem The most vital issue currently facing Gervais Lavoie is the decision of method of distribution. He has been given three alternatives with which to analyze. Poor distribution decisions in the past have caused businesses to fail dramatically, so he is imminently aware of the magnitude of this decision. What method of distribution should be implemented for Beijing Oasis High Nutrition Food Company Ltd. to distribute the company's newly developed fruit nectar? This is a problem because, as stated before, the consequences of a poor distribution decision could prove fatal. Situation Through steps to open its markets to international exporters, and to comply with World Trade Organization (WTO) membership application requirements, global trade with China has changed significantly in recent years. "After a decade of reform, the economic situation in China has improved enormously. " Opportunities are available to foreign companies to enter the Chinese fruit juice market, with tax and land incentives offered to lure foreign business to China's special economic zones, and tariffs lowered to invite imports . "The adaptive ability is shown in learning new concepts and rules developed in a market economy, which might involve changing assumptions and the way of thinking." The fruit juice market in China is dynamic, with many opportunities for international competitors to enter the sector. In 1995, Canada held 1.6% of the $63.9 million imported fruit juice market in mainland China, but that share slipped to 1.0% in 1996, despite the fact that the value of the market increased to $69.4 million. Imports of...
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Macroeconomic Policy Recommendations; Fiscal policies: taxation The means by which a government adjusts its level of spending in order to monitor and influence a nation's economy it's known as Fiscal policy. The federal government's chief source of funds to cover its expenses is the income tax on individuals, which in 1999 brought 48% of total federal revenues. An argument can be made about the use of taxes as a means to influence the economy. Hence the reason most debates about income tax today as a macroeconomic policy revolve around three issues: (1) the appropriate overall level of taxation; (2) how graduate, or "progressive" the tax should be; and (3) the extent to which the tax should be used to promote social objectives. In fact, some economists-democrats and republicans- have suggested that the economy would fare better if the government would eliminate the income tax altogether and replace it with a consumption tax, taxing people on what they spend rather than what they earn. As a result, we will take a look at consumption tax as a macroeconomic policy to stimulate the current U.S. economy. On an interview conducted by a news journalist quoting Alan Greenspan, the Federal Reserve Chairman, pointing out the merits of a "consumption tax," as well as the challenges of setting up such a tax. Greenspan added that, "the consumption taxes could take the form of national retail sales taxes or a value added tax, imposed on the increased value of a good or service at each stage of manufacture and distribution and ultimately passed on to the customer" (fox news online). A consumption tax—also known as an expenditures tax, consumed-income tax, or cash-flow tax—is a tax on what people spend instead of what they earn. Moreover, most of the political debate over a consumption tax has centered on...
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Explain the main differences between a command economy and a free market economy. An economy may be defined as the state of a country or region in terms of the production and consumption of goods and services, and the supply of money. A planned economy is an economic system in which economic decisions are made by centralized planners, who determine what sorts of goods and services to produce, how they are to be priced, and allocated. Since most known planned economies rely on plans implemented by the way of command, they have become widely known as command economies. These are generally associated with socialist or communist economic systems. A free market economy is an economy in which the allocation for resources is determined only by their supply and the demand for them. Every economic system is based on a different philosophical stand than the others. These differences are caused by the different responses that each economy has to the problem of scarcity. However, economies don't always work as their theoretical models and take some components from each system to develop an economy that works. Thus, economies are graded as being free market economies or planned economies using a tool called the economic spectrum, where the planned economies are placed on the left and the free market economies on the right. Below is the spectrum along with the different names that each economy may be known as. Centrally Planned Mixed Economy Free Market Economy Economy The most striking difference between a command economy and a free market economy is the degree of government intervention. In a command economy all the economic decisions are taken by the government, whereas in a free market economy all economic decisions are taken by individuals and firms, which are assumed to act in their own self-interest. In a command economy all land and capital...
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To say that globalization has not encountered its share of dilemmas would be to fool ourselves. Other than the persistent headache it has caused, all other aspects of this twenty-first century system have encountered road blocks that portend potential disasters on a larger scale. Still in its infancy, globalization has shown an unparalleled capability to reshape foreign economies and multinational business markets; the expansion of the Internet will only extend that influence, not only in economics but also in global politics. At this crossroad of changing policies and technologies, we must be prudent about globalization's effect on foreign societies, identify the risks in expansion through the World Wide Web, and delineate between business and political partnerships. Now is the worst time to choose expediency over the ideals of fairness that we have long espoused. Superficially, the US's endorsement of legitimate transnational trade agreements carries our message of fair and free trade, but we may be unintentionally overlooking the long term risks of global integration that depends on information technology (IT). Many nations do not have equal access to the Internet, putting them at a disadvantage in a system more reliant on IT. A microcosm of the emerging digital divide can be seen within our own borders, where the percentage of white people able to use computers greatly exceeds the percentage for African Americans. If such a disparity in the accessibility to IT were enlarged, as in the case of Africa versus its neighbors, many would fall into the widening digital abyss. After listening to Professor Vinod Aggarwal, Director of the APEC Study Center at UC Berkeley, talk at a recent Great Decisions session about the effects of globalization, I noticed that he had similar concerns about the possibility of people in lower socioeconomic levels being left further behind. This, however, does...
pages: 4 (words: 887)