...Case Analysis “Creative Destruction”- Economist Joseph Schumpeter The very term “capitalism” is derived from a division of the factors of production into labor, land, and capital (McConnell, Brue & Flynn, 2012). Entrepreneurship is a late comer to this division when it was discovered that the value of output could not be derived from the factors of production that went into producing it; entrepreneurship was introduced to account for the difference. So when we speak of giving capital “free hand”, we are really talking about entrepreneurship: the pursuit of higher returns on capital-profit. Entrepreneurship can increase productivity of capital. Globalization, removing government restrictions, and giving the profit motive an opportunity have led to an explosion in productivity (McConnell, Brue & Flynn, 2012). The gains in productivity are closely related with the development of the network economy and the Internet happened to reach explosive growth in the past few years. The internet started off as a government-sponsored research network that people hooked into. It was only when it started being used for commerce and advertising did it become a significant factor in fostering productivity, economic growth and the stock market boom. The technological innovations, at which the internet is the only one at this time I am speaking of, has also a reflexively connected with the abolition of the regulated monopolies in the telephone industry(McConnell, Brue & Flynn, 2012)...
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...Chris Hedges. “The Future of Global Capitalism”. The Munk Debates. May 22, 2015. In this interview, Chris Hedges is discussing the future for global capitalism, as he sees it. As he sees it, global capitalism is failing to engage the imaginations of the poor, and working class people because it continues to fail at helping them. The ideas of trickledown economics are just so contrary to the reality, that a small group of elites has been able to concentrate huge amounts of wealth, that people have had enough. Movements like Occupy Wall Street and Black Lives Matter are a response to this. As the state moves further away from the social welfare, people are pushed to take radical stances. Hedges predicts that if corporate power continues to dominate political institutions, and continues to...
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...------------------------------------------------- Demands of the question Byoutline it means we have to state and clearly explain the characteristics of bureaucracy and then on part b of the question we have to highlight and intensely discuss the Marxist perspective on bureaucratic organisations that patently criticise Weber`s ideal type as the best organisational form. The chief advocate of bureaucracy, weber (1947) simply defined bureaucracy as an organization characterized by hierarchy of full time paid officials. Moyo (1992) also defined t as a formal arrangement of functions, duties and technical competence while Schaefer (2006) referred to bureaucracy as a component of formal organization that uses rules and hierarchical ranking to achieve efficiency and lastly Ritzer (2015) defined it as a highly rational organisation, especially one that is highly efficiency. Thereby it is the essence of this presentation to outline and explain the characteristics of bureaucracy which are as follows Division of labour Schaefer (2006:136) defined division of labour as the fragmentation of work into smaller and smaller tasks i.e specialised experts perform specific tasks. Dzimbiri (2015:7) also defined as a feature which suggest that each person do some part of an overall job to allow for perfection and therefore efficiency. Through specific tasks people are more likely to become highly skilled and carry out a job with maximum efficiency hence focusing on what one is well qualified...
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...during the 19th century created enormous social tensions and dissatisfaction among many. Workers, realizing that the wealthy had the most to gain from free market capitalism, turned to other ways of modernization including communism and socialism. Those who believed that they could achieve what they wanted by gradual reform of the existing political structure were socialists while those who believed that the old order needed to be completely replaced by force were communists. Others rejected the socialist emphasis on international class politics and proposed nationalism as another alternative to individualistic capitalism. Unlike socialists or communists, nationalists believed that there was nothing inherently wrong with capitalism. They just thought it should be regulated and made to benefit the nation as a whole in addition to the few individuals who owned the means of production. In either case, political philosophies that emphasized nation and class were responses to a changing world that had uprooted old social beliefs. Communism, which is also described as "Revolutionary Proletarian Socialism" or "Marxism," is both a political and economic philosophy. The Communist Manifesto is widely regarded as the founding documents of modern communism. It provides an analysis of the limitations of capitalism and class struggle, and it presents the main principles of communist ideology in detail. Marx and Engels viewed the capitalist development which had taken hold...
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...1. Do theories of late industrialization explain national differences in the institutional and organizational characteristics of contemporary business? How do these ideas help to explain variations in economic performance? The level of economic development of the country effects development of institutions and characteristics of the business, which in return affect performance. In first part of the essay we will discuss early industrialisation and different theories of late development. After discussion will lead us to key institutions: financial markets, textile industry in relation to business group and labour market and steel industry with relationship to government intervention. In the conclusion we will discuss the current situation, highlight that there is no perfect system. There are many factors that effect economic performance and in order to be successful the changes in the world should be accommodated with the changes in institutions and organisational characteristics. The main characteristics of industrialisation are changes from agricultural to industrial economic structure, substitution of machines for human skills and replacement of home-made by purchased in stores goods. The First Industrial Revolution happened in early 18th century in textile industry in UK, they had technological means, right institutional and organisational characteristics, government encouragement, and a large and varied trade network. Britain became the world's leading industrial...
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..."To be governed is to be watched, inspected, spied upon, directed, law-driven, numbered, regulated, enrolled, indoctrinated, preached at, controlled, checked, estimated, valued, censured, commanded, by creatures who have neither the right nor the wisdom nor the virtue to do so.” said Proudhon - one of the most famous French anarchists. Proudhon manages to catch my attention with this quote since it can be easily applied to modern day world. Although many countries are known to spy on their citizens for the purpose of “security”, one of the most famous incidents happened just a couple of years back with the entire world finding out through Edward Snowden that the United States government was spying upon its people. Although I do agree with the...
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...Contents Summery 3 Comparative Advantage theory 4 Theory of comparative advantage 4 Example situation of comparative advantage 5 Examples (Brazil, India, China -Russia) 6 Infant Industries 8 Operation of Capitalism 10 Conclusion 13 Recommendations 14 Bibliography 15 Summery The purpose of this report is to gain an understanding of different theories, ideas behind them and to show examples of how they are implemented. Report outlines the limitations to the idea that countries should be allowed to protect infant industries, like limiting it to a domestic market. Report also looks at Comparative Advantage theories explanation to countries varied fortunes, including the International trade theory and underlining the economic growth, because of the foreign trade. The last question that the report outlines is the economists believes on capitalism in regards to maximising welfare. As a result of the report it was decided to recommend the integration of producers of data categories into international chain. Comparative Advantage theory • How does the Comparative Advantage theory explain countries’ varying fortunes? Use examples to explain your answer. International trade theory International trade plays an increasingly important role in economic development. Throughout the post-war period be volumes of world trade rapidly increased, and their environments- Annual growth (1.5 times) faster than the global the first volume of production. As a result, on...
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...years) and defines the outer limits of that legacy, that is, total destruction.3 But there are other significant figures who symbolize and frame indigenous experiences in other places. In the imperial literature these are the ‘heroes’, the discoverers and adventurers, the ‘fathers’ of colonialism. In the indigenous literature these figures are not so admired; their deeds are definitely not the deeds of wonderful discoverers and conquering heroes. In the South Pacific, for example it is the British explorer James Cook, whose expeditions had a very clear scientific purpose and whose first encounters with indigenous peoples were fastidiously recorded. Hawai’ian academic Haunani Kay Trask’s list of what Cook brought to the Pacific includes: ‘capitalism, Western political ideas (such as predatory individualism) and Christianity. Most destructive of all he brought diseases that ravaged my people until we were but a remnant of what we had been on contact with his pestilent crew.’4 The French are remembered by Tasmanian Aborigine Greg Lehman, ‘not [for] the intellectual hubbub of an emerging anthrologie or even with the swish of their travel-weary frocks. It is with an arrogant death that they presaged their appearance….’5 For many communities there were waves of different sorts of Europeans: Dutch, Portuguese, British, French, whoever had political ascendancy over a region. And, in each place, after figures such as Columbus and Cook had long departed,...
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...University of Wollongong Research Online Faculty of Business - Accounting & Finance Working Papers Faculty of Business 2005 Regulation as Accounting Theory M. Gaffikin University of Wollongong, gaffikin@uow.edu.au Publication Details This working paper was originally published as Gaffikin, M, Regulation as Accounting Theory, Accounting & Finance Working Paper 05/09, School of Accounting & Finance, University of Wollongong, 2005. Research Online is the open access institutional repository for the University of Wollongong. For further information contact the UOW Library: research-pubs@uow.edu.au 05/09 Regulation as Accounting Theory University of Wollongong Working Papers Series School of Accounting & Finance M J R Gaffikin School of Accounting & Finance University of Wollongong Wollongong NSW 2522 Australia Tel +61 (2) 4221 3718 Fax +61 (2) 4221 4297 eMail george@uow.edu.au www.uow.edu.au/commerce/accy/ Regulation as Accounting Theory Michael Gaffikin Theories of regulation are discussed and compared. Some important issues relating to regulation as a substitute for research in creating theory as discussed. Over the years there have been many arguments and debates over the necessity for regulation. Those who believe in the efficacy of markets argue that regulation is not necessary as market forces will operate to best serve society and optimise the allocation of resources. However, there are many who point out...
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...Braverman’s argument, managers perpetually seek to control the process by which a workforce’s labour power(its ability to work) is directed towards the production of commodities(goods and servces) that can be sold for a profit. The control of this labour process is essential because profit is accumulated through 2 stages: firstly, through the extraction of the surplus value of labour and second, through the realisation of that value when the commodities are actually sold. These two stages are referred to as ‘valorisation’--- which means that managers are seeking to control the way work is organized, the pace of work and the duration of work, because these affect profitability. In Braverman’s analysis the managerial obsession with labour control is the key to an understanding of capitalism and leads managers to find ways of reducing the discretion exercised by the workforce in performing their jobs. In order to exert their own control over the workforce and limit the control and influence of employees, managers are seen to pursue a general strategy of deskilling---which can be classified in organisational and technological. Organisation deskilling is the separation of the conception and execution of work. The conceptual tasks(the more challenging and interesting parts of the job, such as planning and developing new working methods) are transferred to technical and managerial staff, while the execution of the work(less challenging part of the job) remains in the hands of shopfloor...
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...(agreement) between its inhabitants about their values, goals and rules. Durkheim saw modern industrial society as based on a complex division of labour which promotes differences between groups, weakening social solidarity. He argued that the resultant freedom to the individual must be regulated by society to prevent extreme egoism from destroying all social bonds. Essentially, he saw society as external and independent to individuals, being made up of ‘social facts’ that constrain and shape people’s behaviour to meet society’s functional prerequisites (needs). Durkheim further believed that if any one thing (‘social fact’) exists, it has a function which will help meet society’s needs, the key ones of which are goals (met through political institutions, e.g. parliament), adaptation (meeting members’ material needs, e.g. through the economy), integration (socialising members into the shared values and goals of society, e.g. through education and the media) and latency (maintaining society through reproduction of its members). Functionalists describe society using an organic analogy and compare it to a biological organism. Parsons argues that society and the human body are self-regulated and made up of interrelated, interdependent parts (in the body, organs and cells; in society, institutions and individual roles) by where both systems have needs that must be met in order for them to survive (e.g. society’s members must be effectively socialised) and the parts of these systems...
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...Newtonian physics and moral philosophy under some of the leading scholars of his day. He is famous for his theory that nations achieve their wealth and function best where individuals are free to use their skills and capital in their own self-interest, at their own good judgment and risk. But isn’t that the same as entrepreneurship? In today’s capitalism society each individual is seeking prosperity by risking his or her own capital to gain self-interest. The availability of such option for individuals is what Smith calls freedom. Is that why Smith is also known as ‘the father of capitalism’? Smith taught that prices and wages will automatically reach optimal levels when such freedom is permitted. For instance, jobs that require special training will result in fewer people making that investment and, therefore, ultimate higher wages. This explains why engineers make more money than construction workers. It is not feasible to summarize the “Wealth of Nations” into words, however the concept of what the book is depicting, is the great work of political economy. Political economy which would illustrate the taxonomy of wealth, the ideology of capitalism and the effects of such ideology in prosperity of a Nation. “It has already been explained that the triumph of free...
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...Economic Systems, Socialism, and Supply & Demand Patrick Domench Intro to Business and Technology Professor Armes DeVry University September 7, 2014 The best system to handle a disaster of epic proportions is Capitalism. We live in a Capitalist system now and we have been through many natural disasters that have rocked our communities and we have always pulled together and gotten through everyone so far. We have even been attacked in New York, one of the largest cities in the USA, and we were able to rebuild. In the free market system the private sector owns most of the resources, this leaves the main function of the government to facilitate and aid economic activity. This is particularly strong in a disaster type situation because the infrastructure of the economy would be disturbed, so in this case the government would be focused on rebuilding and encouraging investment in the private sector. The private sectors main concern is profit and this greatly aids regeneration. A Socialist system would not be best in an emergency situation and I refuse to speculate that it would be. Firstly, the question itself is academically dishonest. It presumes an answer to a postulation or theory, then demands the student to support the results of that theory with "proof". It's like a rhetorical question, but sinister in its intellectual pre-suppositions. Like asking "Everyone knows that Crisco is better than butter in making croissants, now you prove it"! Secondly, it is quite...
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...Journal of Business Ethics (2007) 74:303–314 DOI 10.1007/s10551-007-9517-y Ó Springer 2007 Stakeholder Capitalism R. Edward Freeman Kirsten Martin Bidhan Parmar ABSTRACT. In this article, we will outline the principles of stakeholder capitalism and describe how this view rejects problematic assumptions in the current narratives of capitalism. Traditional narratives of capitalism rely upon the assumptions of competition, limited resources, and a winner-take-all mentality as fundamental to business and economic activity. These approaches leave little room for ethical analysis, have a simplistic view of human beings, and focus on value-capture rather than valuecreation. We argue these assumptions about capitalism are inadequate and leave four problems in their wake. We wish to reframe the narrative of capitalism around the reinforcing concepts of stakeholders coupled with value creation and trade. If we think about how a society can sustain a system of voluntary value creation and trade, then capitalism can once more become a useful concept. KEY WORDS: capitalism, stakeholder, ethics, economics, free market Introduction1 We live in the age of markets. While markets have been around for thousands of years, we are just beginning to understand their power for organizing society and creating value. In the last 200 years markets have unleashed a tremendous amount of innovation and progress in the West. The industrial revolution, the rise of consumerism, and the dawn...
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...Boeing and Capitalism in the United States of America Abstract This study investigates American capitalism in a historic perspective. The paper then proceeds to examine the issue on a meso-level with its relation to the company Boeing. Finally it discusses the various entrepreneurial decisions and their impact on the success and failures of the corporation. The approach has been reading relevant historical books, finding articles on the Internet and interpreting different views and opinions such as the theories of Schumpeter and Fligstein. The research shows that the American capitalism has changed towards a greater use of intervention that differs from the very laissez fare conditions that were dominating in the beginning of American capitalism, though it is still not comparable with the European conditions. The company Boeing is being subsidized by the government, which can be characterized as crony capitalism, since the cooperation between these organizations helped Boeing develop a monopoly in the market of aircraft manufacturing. The entrepreneurial decisions in corporate strategy and structure have led Boeing to both peaks and disappointments. Table of Contents Introduction 3 Phases of American capitalism 3 Characteristics of the American capitalism 4 The Corporation and the State 5 Globalization 6 The 1992 EU-US Agreement 7 The technological development 8 Analysis of the abovementioned development and its reflection on American capitalism 9 Boeing...
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