...Economics Revision Chapter 1:Nature of work and leisure and trends in employment and earnings Earnings | Wages plus overtime pay, bonuses and commission | Economically inactive | Working age people who are neither in employment, nor unemployed, and so are not part of the labour force | Labour force participation rate | The proportion of working age people who are economically active | G8 | The group of major economies consisting of Canada, France, Germany, Italy, Japan, Russia, the UK and USA | Employment rate | The proportion of working age people who are in work | Part-time workers | People working less than 30 hours a week | Temporary work | Casual work, seasonal work, working for employment agencies, fixed – period contract work | Homeworking | Working either at home or in different places away from the central office, production or distribution facilities, using the home as a base | Teleworking | Working using a telephone and a computer at home, in an internet café or a train or plane | Occupational segregation | The dominance of an occupation by one gender | Primary sector | The first stage of production, agriculture | Secondary sector | The second stage of production, processing raw materials | Tertiary sector | The third stage of production, providing services | Tax wedge | The gap between what employers pay for labour & what workers receive in disposable income | Outsourcing | Subcontracting part of the production...
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...they perceive the product is worth. In the same vein, an employee will only work for a wage that he deems appropriate. If the employer lowers the wage, fewer workers will desire the job. These are a few of the reasons why the free market principle has many benefits. However, in a free market there can also be market failures. Market failures can arise from a multitude of situations such as pollution, or extreme low wages in areas of poverty. In a free market, a company could cause massive amounts of pollution and not have to bear the market cost of that pollution. The society as a whole, including people who do not benefit from the cheaper product, are the ones dealing with the polluted environment. Currently our government has been discussing a raise in the minimum wage. President Barack Obama is pushing for this bill and has many supporters. A rise in the minimum wage will be a major business issue for the next year and presidential election. Pros: Raising the minimum wage some enticing benefits to the American people and also has some strong logical arguments. One of the supporters for a raise in the minimum wage is U.S. Congresswoman from Florida’s 24th District Frederica Wilson who recently wrote an article titled, Raising the Minimum Wage: Good Ethics and Good Economics, which discusses the market failure of low wages. Wilson bases her argument on that a rise in the minimum wage is good ethics and good...
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...TUGAS PERSIAPAN UAS EXPORT IMPORT POLICY Dear students, Please answer these following questions: 1. What are intellectual property rights, their types and purpose? * Intellectual property rights (IPRs) are laws regarding the protection of intellectual property that describe the ways in which the creators of intellectual property can control its use. * Types of intellectual property rights: * Patents are the form of IPRs that protects inventions. * Utility models is an alternative to patents to protect inventions in some countries. * Industrial designs is an alternative to patents to protect features of a product that are produced by industrial means. * Copyrights are the form of IPRs that protects original works of authorship including literary, dramatic, musical, artistic and certain-other technology-based works such as computer programs, electronic databases, and multimedia productions. * Trademarks are the form of IPRs that protects a word, name, symbol/ device to indicate the source of a good and to distinguish it from other goods. * Servicemarks are the form of IPRs that protects a word, name, symbol/ device to indicate the source of a service. * Geographical indications are a variant of trademarks and servicemarks which is signs on a good associated with the origin of the good. * Plant Breeder’s Rights (PBRs)/ Plant Variety Rights (PVRs) are rights granted to the breeder of a new variety of...
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...your goal is to hire 25 employees within the first year of business and the main focus is having first class transportation. In response to helping you establish the limousine business, an employment compliance plan is needed to ensure your business is protected and does not fall out compliance. To make certain the Landslide Limousines Services stays in business and meet the Texas laws compliance, there are 4 employment laws that I gathered nationally and from the state of Texas that will be helpful in the initial process of starting the business. It's imperative that you continue to practice the laws because failure to do so will hold the business liable and there will be an intense punishment and penalty to pay. They are as follows: • Title VII Civil Rights Act of 1964 • The Age Discrimination in Employment 1967 • The Occupation Safety & Health Act • Texas Minimum Wage Act "First the Title VII Civil Right Act of 1964 prohibits discrimination of employmednt based on race, color, religion, national origin, and sex, which includes pregnancy, childbirth, or related medical conditions" (http://www.eeoc.gov/laws/statutes/titlevii.cfm). It's very important that you give each individual an equal opportunity for employment with your company or else you can be held liable and sued. Unlawful employment practices of the Civil Rights Act can result in an investigation which provides examinations and evidence related to the unlawful act. Next a conduct of hearing will be completed along...
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...Discussion Section Worksheet 2 Market Failure – Inefficiency and Monopolistic Competition The following quote was taken from the book: “Creating a Learning Society” by Joseph Stiglitz. Explain the market failure described in this quote. Explain how monopolistic competition caused this market failure. “Myriad Genetics obtained a patent on the BRCA genes (which are critical in assessing the likelihood of getting breast cancer). The gene would have been discovered shortly later, as part of the more systematic attempt to decode the human genome. Thus, while Myriad has made large profits, its social returns were small. Indeed, arguably, because it has exercised its monopoly power, charging high prices for the tests to detect the presence of the gene and preventing follow-on research, including the development of superior tests, the social return has been negative – and depending on how one assesses the value of lives lost as a result of women who could not afford the test at Myriad’s monopoly price, perhaps very negative.” 1. Explain the market failure described in this quote. 2. Explain how monopolistic competition caused this market failure. 3. Suppose the US Government didn’t have a patent system and that any discovery by a private company would be public domain. Do you think this would help or hinder the advancement of medical technology such as what is being described above? Explain Different Types of Market Failures 1. Information Asymmetry in the Health...
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...to run the business. The probability of success of the venture depends on whether the manager spends effort to make the business work: - If the manager provides effort, the probability of success is 0.8 and the probability of failure is 0.2 If the manager does not provide effort, the probability of success is 0.5 and the probability of failure is also 0.5 - Unfortunately, investors cannot observe the manager's actions (they can only observe the final outcome) and effort is costly for the manager. As a simplification, assume that the manager's cost of doing effort is equivalent to 3 million Euros. 1. What is the net present value (NPV) of the business if the manager provides effort? What is the NPV of the business if the manager does not provide effort? In this case the NPV is: (Probability of success * Payoff if Success) + (Probability of Failure * Payoff if Failure) - Initial investment If the manager provides effort, the NPV will be: 0.8 * 300 + 0.2 * 50 – 200 = 50 million USD = NPV1 If the manager does not provide effort, the NPV will be: 0.5 * 300 + 0.5 * 50 – 200 = -25 million USD = NPV2 2. If the investors offer a contract to the manager that implies giving him a fixed wage of 4 million, Will he provide effort? [Note: the wage, since it is fixed, must be paid irrespective of the business actual performance] The manager won’t provide any effort, because if he does, he will earn 4-3(cost of effort) = 1 million$,...
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...Do rapidly rising wages and incomes in China represent an opportunity or threat for western businesses wanting to succeed in china? With a growth rate of 7.7% China is a rapidly growing country that has not only the second largest economy in the world, after the united states of America, but a vastly developing country that has a major influence on the rest of the world, especially more developed countries such as the US and the UK. It has a population of 1.4 billion people, soon to be 1 billion in urbanised areas that provide an abundance of consumers for new markets and therefore making it a major player in multinational cooperation’s targets for growth and profit. In the past Chinas geography and low cost factor have meant that many Western businesses have not only expanded into China and its markets but set up manufacturing bases in many of the coastal provinces and near big cities such as Shanghai. In 2009, 153 of the largest 200 exporters in China were firms with a foreign stake. The advantages of low cost manufacturing that is vital to many western businesses to succeed however may be coming to an end. Wage levels in China have increased continually over the last two decades as the economy developed and also from a variety of factors including to an aging population, social pressure and consequently the pressure on multinational corporations who operate within china. These wage increases and therefore rising incomes both offer the opportunity and threat for western businesses...
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...already headquartered in the United States, many of the same employment laws will apply, but some wont; specifically those having to do with operating a business in Arizona. First let’s focus in on the federal employment law that are most pertinent to the establishment and operation of your new facility. Fair Labor Standards Act of 1938 The "Wages And Hours Worked: Minimum Wage And Overtime Pay" (2009) website indicates that the Fair Labor Standards Act of 1938 (FLSA) is administered by the Wage and Hour Division (WHD) establishes minimum wages, overtime pay, recordkeeping and child labor standards for employees who are paid at least $1,700 in a calendar year or work more than eight hours a week. FLSA requires that employees be paid a minimum of $7.25 an hour. This is slightly lower than Arizona’s minimum wage standard, but I’ll cover that under the Arizona specific employment laws below. It’s important to note that you must post and keep posted the minimum wage provision outlined by FLSA in conspicuous place within your facility. You’ll need to ensure that records are well kept for all nonexempt employees regarding their hours, wages, etc....
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...Concerning the Uber v. Berwick California Labor Commission decision, the commission has decided to classify Uber’s driver as employee because many evidences shows that Uber, contrary to what been said, has a substantial control of its drivers. In its decision, the commission has established that Uber is not only a technology platform provider, but a transportation service provider through drivers. Thus, the commission has found that “Without drivers, Uber’s business would not exist”. Referring to a precedent, the commission argued that the “modern tendency is to find employment when the task been done is an integral part of the principal’s business and when the worker does not provide an independence service or business.” Despite the fact that...
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...Assignment on: “Tazreen Fashion and Rana Plaza Tragedy: Failure of Corporate Governance” Supervised By: Dr. Chowdhury Saima Ferdous Associate Professor, Department of International Business University Of Dhaka Course no: IB-409 (Corporate Governance) Prepared By: D.M. Saddam Hossan Roll no: 93 (5th Batch) Department of International Business University of Dhaka Date of Submission: October 4, 2015. A case for Rana Plaza & Tazreen Fashions Ltd. Bangladesh’s ready-made garments sector accounts for 80% of the country’s exports and employs over 4 million people, nearly three-quarters of who are women. It is estimated that the garment industry supports a further 25 million people and has played a pivotal role in the country’s development. On 24 April 2013, an eight-story commercial building, Rana Plaza, collapsed just outside Dhaka. The building contained five clothing factories: most of the people in the building at the time were garment workers. Over 17 days of search and rescue, 2,438 people were evacuated, more than 1,100 people died, and many more were left with life-long debilitating injuries. The land underneath the Rana Plaza was unsuitable for construction. The Plaza was originally designed as a four-story building primarily for retail store use, but was instead occupied by garment factories. The Plaza was owned by Sohel Rana, who used his aggressive tenacity and political connections to acquire illegal permits and bribe government officials to approve...
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...others do not get overtime work and that all employees should be given at least two hours overtime daily as a matter of policy. 4. Placing employees on no pay even when they had not exhausted their legal entitlement of leave. 5. Nonpayment of EPF and ETF contributions in respect of casual and temporary employees. 6. Failure of the management to respond to the request made by the union to deduct union membership fees from salaries of the relevant employees. 7. Failure to provide separate conveniences for female employees and a suitable place for employees to take their meals. 8. Failure of the management to fulfil the request made by the union for a suitable place for the employees to take their meals. 9. To grant a half day’s leave with pay daily for the union secretary to attend to union activities. 10. Punishing employees on the pretext of disciplinary action without even holding inquiries. 11. Failure to provide first-aid facilities within the factory premises or an ambulance or ensure that a vehicle be always available for the transportation of sick and the injured employees to a hospital for treatment. 12. Failure to give credit to holiday pay, overtime payments and incentive payments when computing provident fund contributions. 13. The practice...
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...private own, and redo the labor markets by making states at will or Right to Work by reducing the union power. The free-market approach, where markets alone are assumed sufficient to generate maximum welfare. The public-choice approach, which is an extreme New-classical model which emphasizes that all government is ‘bad’ and leads to corruption and the gradual confiscation of private property. The market-friendly approach, which suggests that, while markets work, they sometimes fail to emerge, and a government has an important role in compensating for three main market failures: missing markets, imperfect knowledge and externalizes. (Econ online) CLASSIC TRUMPS KEYNESIAN In the 1970 Classical, school started popping up everywhere because of the failure of Keynesianism to explain Stagflation. This is where unemployment and inflation are both high at the same time. (New Classical) The wage rate is what...
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...been an asset to the female work force because the wages are set by the union for the job duties performed, not by who performs them. Women often are in administration jobs with a great amount of responsibility, but are often under paid as compared to a man with similar responsibilities. By enforcing pay equity laws, an employer will create a productive workforce among all employees. In the Canadian workplace employees can value equity in different ways. They can compare their job to similar jobs within the same department, or compare their job to different jobs within the same workplace. Therefore, the equity or pay they receive can make the employee satisfied or dissatisfied depending on their view of the job they perform. Also, employees can compare their equity to others in another company who do similar jobs or others who are in the same union or profession. To an employer equity can be compared in four categories: external equity, internal equity, individual equity and personal equity. External equity is when an employer pays wages comparable to similar companies doing the same jobs. There are many factors involved in this type of comparison. The factors can be geographic location, organization size, unions, industry sector, competition in the area, education required to do the job, as well as company prestige. A company has to look at all of these factors when setting wages because they could set their wage too high if they compare themselves to city locations...
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...What is Economics? Economics is both a social science and a business science, and, in the broadest sense, it is concerned with understanding what economies produce, how economies produce what they produce, and who in the economy is able to access what is produced. Within economics, there are two extreme views of this understanding, although economics, as it is practiced, typically lies somewhere in between these two extremes. On one end of the spectrum, market-oriented economists assume that individuals are the most capable of deciding what is best for them, and that free and unfettered markets make available the sort of information that individuals need in order to make the correct decisions, and that those decisions, when aggregated, lead to the best outcome for the greatest number of individuals in society. On the other end of the spectrum are economists that favour hierarchical command and control. These economists tend to believe that markets are inherently incapable of providing the appropriate information to individuals, and, therefore, benevolent planners are capable of bringing about the best outcome for the greatest number of individuals in society. In reality, neither extreme is correct, as markets can fail in a number of circumstances, while the benevolence necessary for success within a planned economy is not a common human trait and often creates unintended negative consequences. With that as an introduction, it can hopefully now be understood that there is both...
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...former is a description of failure of capitalism in The Grapes of Wrath and the latter is a description of the failures of capitalism in The Great Gatsby. In The Grapes of Wrath the Joad family is traveling from Oklahoma to California, a distance of about 1,500 miles, in search of work to sustain their family. Their home in Oklahoma is taken by the bank because the farm is unusable after the dust bowls have started. The novel The Great Gatsby follows the lives of a few rich people and shows the way their money has the ability to do. Both Fitzgerald and Steinbeck condemn the idea of the...
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