...Chapter 7 Government Intervention in International Business GOVERNMENT INTERVENTION 1. In a short essay, describe two methods of government intervention. What is the purpose of government intervention in international business? Answer Government intervention is often manifested as protectionism. Protectionism refers to national economic policies designed to restrict free trade and protect domestic industries from foreign competition. Protectionism often leads to two types of intervention: tariffs and nontariff barriers. A tariff is a tax imposed by government on imported products, effectively increasing cost of acquisition for the customer. A nontariff trade barrier, such as a quota, is a government policy, regulation, or procedure that impedes trade through means other than explicit tariffs. Governments intervene in trade and investment to achieve political, social, or economic objectives. Barriers are often applied to benefit specific interest groups, such as domestic firms, industries, and labor unions. A key rationale is to create jobs by protecting industries from foreign competition. Governments may also intervene to support home-grown industries or firms. In various ways, government intervention alters the competitive positions of companies and industries, and the status of citizens. (pp. 195-196; concept; Learning Objective 1; moderate; AACSB: Analytic Skills) RATIONALE FOR GOVERNMENT INTERVENTION 2. In a short essay, explain the four main motives for...
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...June 2014 - Context 1 - Essay Model Answer: The key here, as it always is, is to understand what the question is asking and then making sure that we answer it. An idea here would be to try to simplify the question, so that we really understand what it is asking us. I think what is asking could be summed up with: Should governments stop food from being used to produce biofuel. The main starting point has to be the structure of the essay. Here the acronym DIC ED S P A C applies: Definition In Context Explained Diagram Solutions Problems Alternatives Conclusion The obvious definition from the question is probably Government Intervention. Government Intervention occurs when a governing body decides to manipulate a market, usually to prevent a market failure. In this case the market failure could be seen to be poverty and inequality as there is evidence in the text that, due to rising food prices, more and more people are unable to afford food, one of the basic needs for survival. Clearly, as I am referring back to the text, this is in context. Next up I need an explained diagram. I need this diagram to explain why there is a problem in this market, so I will show that as more crops are being demanded for biofuels, this leaves less available for food. It is clear that as the amount of fossil fuels reduces, but the world population increases, there is more of a demand for energy sources. This is shown in diagram 1: Diagram 1: From...
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...Governmental Role in Economy and Commerce Across Chinese History Throughout Chinese history, the appropriate role government should play in economy and commerce has been a prevailing question that always incurs debates and disagreement. Over the centuries, a wide range of different opinions—from one-sided view to relatively neutral position—prevails. Each point of view contains its own unique understanding and suggestions on the issue of governing the economy. Despite of the variety of views, the grounds that those arguments based on are less diverse—from either an ideological or practical perspective. From the early stage of Chinese history, absolute unanimity was rarely found in the issue regarding governing the economy and commerce. In fact, disagreements or ambivalent views prevail. For example, Discourse on Salt and Iron from Han dynasty reveals, officers believe government interventions in industry like salt and iron are beneficial to the welfare of the entire country and “are intended to circulate accumulated wealth and to regulate consumption according to the urgency of need” (Ebrey, Chinese Civilization 63). As each side lists either the benefit or the shortcomings, it is clear that the learnt men and the minister hold completely different perspectives with learnt men oppose effective government regulation whereas the officer supports. As the record of this debate contains twenty-four chapters and the first chapter included in Chinese Civilization contains four pages...
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... ASSIGNMENT ONE (PART A) Dawud Abdirahman Student Reference Number: 130002288 C300 TMA1a 1000 Words Do you think Ha-‐Joon Chang’s idea of ‘Institutionalist Political Economy’ (IPE) provides a better explanation for government intervention than the concept of market failure? In this essay, the author discusses, if Ha-‐Joon Chang’s idea of ‘Instituionalist Political Economy (IPE)’ provides a better explanation for government intervention than the concept of market failure. The essay – which is part of a course module assignment in Public Policy and Management Studies at the School of Oriental and African Studies – discusses both theories, and articulates their merits and constraints as per the author’s views. Various examples have been employed to support these views. ...
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...EFFECT OF HEALTH PROMOTION IN TACKLING THE HEALTH OF BRITAIN AND THE RELATED ETHICAL IMPLICATIONS. Health promotion is a socially embodied "value field"; its mission is to promote a Sanitary culture, one that locates health at the top of a hierarchy of cultural values and social goals. It is concerned with the whole person, the relationships between individuals and their environments and the wider forces that shape health. However, this essay is going to focus health promotion on coronary heart disease .In this context, the role of health promotion is in the primary prevention of cardiovascular diseases like coronary heart disease. Heart disease comes in many different forms. The most common type of heart disease in Britain and in other Western countries is coronary heart disease (CHD). Coronary heart disease (CHD) also known as ischaemic heart disease, is the UK's biggest killer, causing around 82,000 deaths each year. About one in five men and one in eight women die from the disease. There are an estimated number of 2.7million people living with the condition and 2million people affected by angina, the most common symptom of coronary heart disease. In 1989, 92,480 men and 76,421 women died from coronary heart disease, an average of 460 people (the coronary prevention group, 1991). Coronary heart disease (CHD) is usually caused by a build-up of fatty deposits on the walls of the arteries around the heart (coronary arteries). The fatty deposits, called atheroma, are...
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...individuals. There are many types of capitalism. This essay discusses two types of capitalism that are currently being debated in the media, State capitalism and liberal capitalism. This essay also investigates whether the South Africa is really state capitalism or are they using Major Private Sectors to socially develop the South African economy, being Neoliberal capitalism? State Capitalism VS Liberal Capitalism State capitalism is when the government takes control over the commercial economic environment. The government may own shares in a public company listed in the stock exchange, acting as a large shareholder. Another type of economic system where State capitalism would be involved is when production is owned by private companies and the state controls the credit and investment allocation. Liberal capitalism is also known as free market capitalism; it gives companies and individuals the freedom to run their own market and set their own price systems. Individuals or companies would benefit with their gains and face detriment with their errors. The government may intervene to control free trade and open competition by eliminating private Monopoly. Neoliberal Capitalism is where private sectors seek to maximise the political and economic priorities of the state. South African Government Interventions Referring to the State of Nation Address by President Jacob Zuma, there are many interventions the Government desires to implement to improve the South African socio-economic...
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...Externalities arise when a person or a firm’s actions affect the welfare of others in ways that are not reflected in market prices (spillover effect). In this essay, I will discuss the characteristics of externalities, their control and implications on the free market as well as discussing the ways in which governments can assist to develop and implement policies that can encourage positive externalities. (Lipsey and Chrystal, 2001) (Donohue, et al, 2008:RB2). Externalities could be defined as the costs or benefits that arise from private and public consumption or production. External costs of production occur when a factory emissions cause excessive pollution levels that create breathing difficulties for some members of society. Moreover, external costs of consumption arise when people use their vehicles, affecting others negatively through exhausts emissions. (Lipsey and Chrystal, 2001), (Donohue, et al, 2008:RB2). On the bright side, externalities are not always negative and can often benefit the society; Toyota’s corporate responsibility programs act as examples of this. They train their employees to minimise waste production in the workplace as part of their “Think Green! Program”, there is an inherent external benefit to society as they help to reduce environmental impact and there is a potential that such employees will pass their knowledge on to other members of society at a later date, this creates...
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...countries has developed an Industrial Relations System in which the state plays an active role. As in other African Countries, the state through its most powerful apparatus Government have accepted and are applying the policies based on the belief that the other parties in Industrial Relations System (workers and Employers) cannot be left entirely to regulate all aspect of the work system. In few of the above, this essay seek to discuss the view that non-state intervention in industrial relations is intervention in favour of capital. Initially, key terms are defined, main topic is discussed and subsequently concluded. Otobo (2000) defines the state as an institutional system of political government, with a monopoly over tax and the legitimate use of force in a society (Otobo, 2000). Wailes (2002) states that, industrial relations means relationship between management and workmen in a unit or an industry. In its wider connotation, it means the organisation and practice of multi pronged (split) relationships between workers and management,unions and workers, in an industry. Therefore, Industrial relations is that part of management which is concerned with the manpower of the enterprise (pp. 31-34). Plowman (2006) postulates that the notion of non-state intervention in industrial relations is intervention in favour of capital is very true and supports the argument that individual contracts take away the power and control from workers, allowing managers to exhibit a greater level...
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...Conclusions Conclusions are very similar to introductions in that they should give an overview of the way in which the essay answered the question. They frequently include a very brief summary of the main points (pieces of evidence, data, and so on) from the argument you constructed to answer the question. It is extremely important that you explain, explicitly and very clearly, precisely how the argument you have produced answered the specific question or task set in the essay title. Here are some real examples with comments: Example 1 The question: 1. ‘The most important factor in explaining Japan’s Twentieth Century international trading success has been the willingness of other countries to buy Japanese exports.’ Discuss the validity of this statement A student conclusion Therefore as long as Japanese manufacturers are encouraged to export their products to countries such as the US and as they are forced to pay high margins to distribute their products at home they will use the alternative to export them abroad as there is a ready made market for their products. The Japanese trading companies also stand ready to offer them simple, direct and efficient export distribution channels. Comment Far too short, and no mention of how the argument they constructed answered the question asked of them. Example 2 A student conclusion Japan discourages imports of manufactured goods, the only goods it allows to import...
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...SEE HOW WE CAN HELP Outline labelling theory and consider its usefulness in understanding youth crime and anti-social behaviour in Britain today. Outline labelling theory and consider its usefulness in understanding youth crime and anti-social behaviour in Britain today. Labelling theory claims that deviance and conformity results not so much from what people do but from how others respond to those actions, it highlights social responses to crime and deviance Macionis and Plummer, (2005).Deviant behaviour is therefore socially constructed. This essay will describe in full the labelling theory and comment on the importance of the theory to the deviant behaviour of the youth and the anti-social behaviour of the youth in Britain today. The labelling theory becomes dominant in the early 1960s and the late 1970s when it was used as a sociological theory of crime influential in challenging orthodox positivity criminology. The key people to this theory were Becker and Lement.The foundations of this view of deviance are said to have been first established by Lement, (1951) and were subsequently developed by Becker, (1963).As a matter of fact the labelling theory has subsequently become a dominant paradigm in the explanation of devience.The symbolic interaction perspective was extremely active in the early foundations of the labelling theory. The labelling theory is constituted by the assumption that deviant behaviour is to be seen not simply as the violation of a norm but...
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...illustrate is that government funding is sometimes necessary for the sustainable functioning of the economy and society from a holistic perspective. Firstly, let us define the term “subsidy”, and how this fits in an economic context. Oxford Dictionary defines “subsidy” as follows: “a sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low” (OED Add. Ser. Vol. 3, 1997). Subsidising industry is anathema to the concept of free trade as the very foundation of free trade, as we know, is built on the cornerstone of “laissez-faire” capitalism and a limited role for government inasmuch as the market is out of the sphere of influence of the government. Another notion is invoked when discourse on the subject of government intervention regarding an under-performing market manifests; economists appeal to the term “market failure” to dub this phenomenon. A “market failure” can be defined as an occurrence in the market whereby resources are not efficiently allocated (Financial Times Lexicon, 2014). We’ll explore this notion further in the latter part of this essay. Underlying philosophies. The proponents of free trade and free markets, such as Adam Smith, do indeed possess and proliferate legitimate arguments concerning government intervention in the market. To be intellectually honest from a position of advocating government intervention, this admission will be made: it should not be the role of government to intervene...
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...between the rich and the poor. The distribution of wealth is too uneven. The main purpose of this essay is to address the question that many people are asking themselves: is inequality a consequence of too much or too little government intervention. The government intervenes in the economy in four ways. First, it produces public goods and services, such as education, infrastructure, national defense, and health care....
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...Critical Writing Assignment 4: Free Markets: Classical Economic Definitions & Perspectives Professor Marlo Chavarria 201420 Spring 2014 ECON 350-D02 LUO Cameron L. Atkinson Student-Liberty University Online Abstract This essay examines the concept of a free market and the various interpretations of classical economists. The author begins by defining a free market from a classical perspective. He then proceeds to examine the interpretation of David Ricardo, which leaned somewhat to laissez-faire economics, the interpretation of John Stuart Mill, which was complex and indecisive, and the interpretation of Karl Marx, which argued against the concept of a free market. The essay concludes by discussing the complexity of the debate and the unanswered questions it still presents to modern economists. Keywords: free market, free market system, David Ricardo, John Stuart Mill, Karl Marx Introduction The majority of classical economists based their work on the concept of a free market system (Sowell, 2006). However, they often had varying interpretations of a free market. These different perspectives have led to confusion about the true definition of a free market. This essay will first define a free market from a classical perspective and then examine David Ricardo’s, John Stuart Mill’s, and Karl Marx’s interpretations of a free market. Their views compose the three major schools of classical economic thought regarding a free market, and they have shaped the way society...
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...Outline labelling theory and consider its usefulness in understanding youth crime and anti-social behaviour in Britain today. Labelling theory claims that deviance and conformity results not so much from what people do but from how others respond to those actions, it highlights social responses to crime and deviance Macionis and Plummer, (2005).Deviant behaviour is therefore socially constructed. This essay will describe in full the labelling theory and comment on the importance of the theory to the deviant behaviour of the youth and the anti-social behaviour of the youth in Britain today. The labelling theory becomes dominant in the early 1960s and the late 1970s when it was used as a sociological theory of crime influential in challenging orthodox positivity criminology. The key people to this theory were Becker and Lement.The foundations of this view of deviance are said to have been first established by Lement, (1951) and were subsequently developed by Becker, (1963).As a matter of fact the labelling theory has subsequently become a dominant paradigm in the explanation of devience.The symbolic interaction perspective was extremely active in the early foundations of the labelling theory. The labelling theory is constituted by the assumption that deviant behaviour is to be seen not simply as the violation of a norm but as any behaviour which is successfully defined or labelled as deviant. Deviance is not the act itself but the response others give to that act which means deviance...
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...in the New York Stock Exchange (NYSE). US Government’s reaction was to increase the regulation on the activities performed by all public companies by issuing the Sarbanes-Oxley Act (SOA) and creating the Public Company Accounting Oversight Board (PCAOB). It was now required that the Chief Financial Officer (CFO) of each company signed a statement on the effectiveness of the Company’s internal control and that the external auditors issued a report on this management’s statement, besides their previously required report on the fair presentation of its financial statements. The auditors became also subject to many regulations on the quality controls of their procedures and were now going to be overseen by the PCAOB. The objective of this essay is to analyze how the initial regulation on public companies itself provided the incentives for the existence of the Enron case and several similar cases and how additional regulation on the activities of public companies...
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