Cambridge Consulting Group: Bob Anderson Essay

Cambridge Consulting Group: Bob Anderson Essay.

Assignment:

1. Does Bob Anderson have a problem, or are these the musings of an overly successful partner?

Bob has a problem: lack of vision and long range thinking for the business. Bob also has some unresolved issues with his colleague John Burgess, which is affecting his sense of direction.

2. If he has a problem, how would you describe it? He is ignoring important warning signs in his business and personal life, by busying himself with tasks that he enjoys, and that deliver him visible and easily measurable achievements – primarily sales and new business.

While business is currently very strong, Bob is personally responsible for too much of the success. Bob’s five vice presidents are craving guidance, training, mentoring and career direction, and Bob’s wife and family are craving attention and affection. By forgoing long term planning, training and effective delegation, Bob is putting both the business, and his personal life in jeopardy, therefore placing even more pressure on himself.

3. What are the underlying causes? Bob is still trying to prove to his colleague John Burgess that he is the right person for the managing partner role, after John was overlooked for the position. By burying the issue, and not addressing the problem in their relationship soon after his promotion, a rift formed between the two partners and has now divided the business. Bob underestimates how evident this is to his staff, and still feels that he has to prove his eligibility for the role, by demonstrating his value to the business through growth in billings. By failing to properly delegate to John, the only other partner in the business, Bob is essentially making his job twice as challenging by failing to properly utilise John’s skills and talents.

4. What actions, if any, should Anderson take? Short term? Medium term? Long term? Short Term: As the business is currently performing very well, Bob could afford to take some time off for a holiday with his family. He needs to stop avoiding responsibilities not only in his business, but also at home. He is burying himself in his role and if he doesn’t quickly address the issues in his personal life, he is heading for a mid life crisis. Medium Term: Bob needs to address the underlying issues with his colleague John, and ask for his support in developing and growing the structure of the business. Bob must delegate responsibilities, especially those around business acquisition. Bob should invest in a formal training and development program, along with a more clearly defined path to becoming a partner for his vice-presidents. Long term: Bob should empower his vice-presidents to take on significantly more responsibilities, in order to reduce his personal exposure and workload.

Cambridge Consulting Group: Bob Anderson Essay

Public Sector Economics Essay

Public Sector Economics Essay.

In describing the economic advantages and disadvantages of the proposed tax policy change the advantage is that revenues increase substantially from $9,134 billion to $184,807 billion. From a macroeconomic viewpoint, the more money in circulation, the more money the firms will receive. With a greater amount of funds in circulation the more that workers will have in their net income. This concept stimulates the economy as a hole in a revenue approach and cash in circulation.

On the contrary, the disadvantage is that the proposed tax rate was increased by 0.

03 percent, the Finance sector was taxed and no one was zero rated besides Agriculture. In viewing the current law of products; the advantage is that the tax rate is slightly lower at 0. 07 percent and all products were exempted from taxes, and zero rated thus receiving money back in terms of a credit. Despite the low revenue there the current tax policy tends to be more efficient.

Considering that there are no taxes and credits are being received in terms or revenues.

Focusing on the Proposed Law, this would be bias and favorable to the federal government. The federal tax system relies on a number of different types of taxes to generate revenues. Therefore raising the tax rate 0. 03 percent to 0. 10 the federal government is able to have more in revenues. In discussing the Current Tax Law, this would be more favorable to the consumers because of the lower tax rate.

As consumers we want to pay less in taxes; lower taxes in turn pushes out the overall demand curve as we demand more goods and services with higher disposable incomes. Supply side tax cuts are aimed to stimulate capital. If successful, the cuts will shift both aggregate supply and demand because the price level for a supply of goods will be reduced, then it leads to an increase in demand for those goods. To label this table horizontal or vertical equity, we would say that the table would be more supportive to vertical equity dependent on proposed or current law.

By definition vertical equity, “is a method of collecting income tax in which the taxes paid increase with the amount of earned income. The driving principle behind vertical equity is the notion that those who are more able to pay taxes should contribute more than those who are not. ” In reviewing the table we would agree that the Proposed Law would match well with the vertical approach and horizontal equity would be the explanation of the Current Law system, because there are more zero rated products that offer credits.

Public Sector Economics Essay

Economic Development and Industrialization Essay

Economic Development and Industrialization Essay.

The process in which a society or country (or world) transforms itself from a primarily agricultural society into one based on the manufacturing of goods and services. Individual manual labor is often replaced by mechanized mass production and craftsmen are replaced by assembly lines. Characteristics of industrialization include the use of technological innovation to solve problems as opposed to superstition or dependency upon conditions outside human control such as the weather, as well as more efficient division of labor and economic growth.

Industrialization is most commonly associated with the European Industrial Revolution of the late eighteenth and early nineteenth centuries. The onset of the second World War also led to a great deal of industrialization which resulted in the growth and development of large urban centers and as well as suburbs. Industrialization is an outgrowth of capitalism.

Before India was introduced to the industrialization or the industrial revolution, india was largely an agricultural country. Before the british invasion India became famous for her handicrafts and textiles too.

During the Mughal Period, India had a considerable variety of arts and handicrafts and the products commanded wide range of foreign markets. At that time no other country produced products that could be imported to India in exchange for cotton and silk goods which were in world-wide demand.

Europe had to pay in billions for the increasing volume of Indian exports. India was also famous for jewelry of exquisite quality made out of gold, silver, copper, brass and bell-metal.Many urban centers were famous for carving work in ivory, wood, stone and marble. In bigger towns each handicraft was organized into a guild which safeguarded the professional interest of its members. The emergence of modern industrial enterprises can be traced back to the end of the 18th century. The new industrial activity took two forms, plantations and factory industries. Real and satisfactory progress in the factory industries began only after 1875. During the next two decades, two textile units – cotton and jute- flourished.

Initially, India’s domestic economy depended mostly on the agriculture. Globally, its textile and jewelry industry were very famous, but since all the industries were fully controlled by man, the speed of the produce could not match the growing demands of foreign merchants. Then began the industrial revolution in india, which was introduced by the british. The use of machines in the industries brought about great progress and economical growth to the country. One of the main reasons why India is a member of the BRICS nations[->0] and is tipped to be the next global superpower is its rapid pace of industrialization. India’s industrial growth was recorded in 2010 at 16.8%, highest in 20 years. Thus it has a major contribution to India’s economic growth rate in 2010-2011 which is measured at about an impressive 8.6%. The rate of investment in India has been found to have exceeded 36% of the country’s GDP and this has happened because India is making progress in the industrial sector by leaps and bounds.

On the technology front, the biggest advancements were in steam power. New fuels such as coal and petroleum, were incorporated into new steam engines. This revolutionized many industries including textiles and manufacturing. Also, a new communication medium was invented called the telegraph. This made communicating across the ocean much faster. But, along with this great leap in technology, there was an overall downfall in the socioeconomic and cultural situation of the people. Growth of cities were one of the major consequences of the Industrial Revolution. Many people, who initially practiced agriculture, were imposed on with heavy taxes and unable to pay taxes to the british officers were forced to move to the cities. With the new industrial age, a new qauntitative and materialistic view of the world took place. This caused the need for people to consume as much as they could. This still happens today. The negative impact of industrial revolution on india is due to two major factors.

▪India’s large population and Introduction of alternative machinery which were more efficient than man– These two factors are closely interrelated:- ▪ the introduction of finer machinery improved the production of goods and reduced the number of employees. Since a large number of indians who were once practicing agriculture were led to the factories, a major population was now going with the swing of the industrial revolution, i.e.. working in the factories.the introduction of finer machinery improved the production of goods and reduced the number of employees and adversely affected the middle class and lower sections of the society. One machine could perform what ten men could and eventually machine replaced man. Lots and lots of people were jobless. Indians suffer from the industrial revolution even today as a major portion of the indian population is unemployed.

Industrialization plays a significant role in the process of economic development. The examples of developed countries indicate that there is a direct relationship between high level of income and industrial development. Industrialization has its own merits as well demerits. The merits are –job creation, development in science and technology,better infrastructure, better healthcare, more amenities and comfort to the masses, more affluence, better educational levels of the masses, good help to agricultural sector in terms of farm equipments, tractors, irrigation tools,pesticides, fertilizers so the country can achieve self sufficiency in food grains.

The less developed countries are generally primary producers and import industrial output. With industrialization of their own economy they need not import industrial product from outside and this helps in reducing the trade gap. The question that now arises is “Is india a developed country?” The answer lies within, whether india is a primary producer or has a industrial economy. In fact, India has a balance of both kinds of economy because agriculture forms a major part of india’s occupation, which is primary produce but, of late, many industries are spreading from cities to villages like wildfire hence, increasing the industrial economy.

India is actually developing at a very fast rate in the industrial sector, and at this rate of progress, India is estimated to be a developed superpower. Looking at India’s GDP, India is already a well developed nation, but the lack of well-maintained infrastructure and unorganized roads has prevented it from being titled as a ‘developed nation’. Industrialization also helps in satisfying a variety of demands of the consumer’s. With modernization of the economy the demand for industrial product has increased considerably. Industrialization brings a change in the socio-cultural environment of the economy. It makes people dynamic, hard-working, mobile, skillful, efficient, and punctual. It brings a change in the way-of life of the people and makes people more commercial. It also provides security to the economy by making it self-dependent.

India has seen a rapid rise in industrialization in the past few decades, due its expansion in markets such as pharmaceuticals, bio-engineering, nuclear technology, informatics and technology-oriented higher education. These latest trends have made India more globally-minded as their desire to trade with the world increases.

It is said that India has deliberately targeted markets they know they can make instant in-roads into. Industries such as pharmaceuticals and bio-engineering have been seen as ideal in increasing the national income using the country’s new-found expertise. Also, India now exports a whole variety of products and knowledge, including petroleum products, textile goods, jewelry, software, engineering goods, chemicals, and leather merchandise.

There are a lot of comparisons drawn between India’s industrialization model and that of China. Both countries have realized the importance of the export market and how to capitalize on their huge workforces – allowing them to become leading powers in the global market on several fronts. Western countries look favorably to countries such as India and China due to their low production costs in comparison to European and US prices; again a favorable characteristic allowing the countries to build their economies.

The industrialization of India looks set to continue for some time and the result could well be that India becomes a major player in many global markets in the future.

Industrialization plays a vital role in the economic development of an underdeveloped country. The historical facts reveal that all the developed countries of the world broke the vicious circle of underdevelopment by industrialization.

1. Raising Income: The first important role is that industrial development provide a secure basis for a rapid growth of income. 2. Changing the Structure of the Economy: In order to develop the economy underdeveloped countries need structural change through industrialization. History shows that in the process of becoming developed economy the share of the industrial sector should rise and that of the agricultural sector decline. This is only possible through deliberate industrialization. As a result, the benefits of industrialization will ‘trickle down’ to the other sectors of the economy in the form of the development of agricultural and service sectors leading to the rise in employment, output and income.

3. Meeting High-Income Demands: Beyond certain limits, the demands of the people are usually for industrial products alone. After having met the needs of food, income of the people are spent mostly on manufactured goods. This means the income-elasticity of demand for the manufactured goods is high and that of agricultural products is low. To meet these demands and increase the economy’s output underdeveloped countries need industrialization.

4. Overcoming Deterioration in the Terms of Trade: Underdeveloped countries like India need industrialization to free themselves from the adverse effects of fluctuations in the prices of primary products and deterioration in their terms of trade. Such countries mainly export primary products and import manufactured goods. The prices of primary products have been falling or are stable whereas the prices of manufactured products have been rising. This led to deterioration in the terms of trade of the LDCs. For economic development such countries must shake off their dependence on primary products. They should adopt import substituting and export oriented industrialization. 6. Increased employment opportunities.

Industrialization provides increased employment opportunities in small and large scale industries. In an agrarian economy, industry absorbs underemployed and unemployed workers of agricultural sector and thereby increases the income of the community.

5. Stimulates progress in other sectors. Industrialization stimulates progress in other sectors of the economy. A developments of one industry leads to the development and expansion of other industries. For instance the construction of a transistor radio plant, develops the small battery industry (backward linkage). The construction of milk processing plants adds to its line of production ice cream. cone cream plants etc.. (forward linkage). 8. Rise in agricultural production.

Industrialization provides machinery like tractors thrashers harvesters, bulldozers, transport, aerial spray etc, to be used in the farm sector. The increased use of modern inputs has increased the yield of crops per hectare. The increase in the income of the farmers has given boost to economic development in the country. 16. Increase in the Government revenue.

Industrialization increase the supply of goods both for internal and external markets. The export of goods provides foreign exchange. The customs excise duties and other taxes levied on the production of goods increase the revenue of the State. The income tax received from the industrialists adds to the revenue stream of the Government which eventually is spent for the welfare of the people as a whole.

Economic Development and Industrialization Essay

How to Solve Scarcity in the Economy Essay

How to Solve Scarcity in the Economy Essay.

SCARCITY:

A pervasive condition of human existence that results because society has unlimited wants and needs, but limited resources used for their satisfaction. This fundamental condition is the common thread that binds all of the topics studied in economics. Scarcity is a perpetual problem facing society due to limited resources andunlimited wants and needs satisfied with these resources. Scarcity means that society does not have enough of everything (resources) for everyone (wants and needs).

Two Components

Consider the two sides of the scarcity problem.

* Unlimited Wants and Needs: This is a basic characteristic of humanity which means that people are never totally satisfied with the quantity and variety of goods and services.

It means that people never get enough, that there is always something else that they would want or need.

* Limited Resources: This is a basic condition of nature which means that the quantities of available resources used for production are finite. It means that the economy has only so many resources that can be used AT ANY GIVEN TIME time to produce other goods and services. Humans live in a world of scarcity. This world of scarcity is what the study of economics is all about. That is why scarcity is usually subtitled: THE ECONOMIC PROBLEM.

Scarcity does not preclude technological advances and other discoveries that “lessen” the scarcity problem with better ways of satisfying wants and needs. In fact, scarcity actually predicts such things. People are motivated to work, go to school, invent products and discover new continents because they do not have all that they want. Why invent, discover, or explore if all wants and needs are satisfied? Increasing limited resources does not make them unlimited only less limited. Scarcity persists. Solutions?

Scarcity has been a perpetual, pervasive problem of humanity. There is no reason to think the future will escape the wrath of scarcity either. But why not? Can humans ever hope to solve the scarcity problem? Technological advances in recent centuries have certainly done a great deal to lessen the scarcity problem. A notable share of the world’s population residing in industrialized nations, while not free of scarcity, has achieved a relatively comfortable living standard. Given continued technological advances over the next few hundred years, perhaps society can solve the scarcity problem once and for all? It might happen. Who knows what the future might bring. But such is unlikely, even with technological advances.

The reason for this economic pessimism rests with the two, and ONLY two, possible ways to eliminate scarcity. 1. Unlimited resources: Unfortunately, the planet Earth is finite. The solar system is finite. The galaxy is finite. In all likelihood, the universe is finite. None of this bodes well for achieving unlimited resources as a means of solving the scarcity problem. 2. Limited wants and needs: If every human being had finite wants and needs that could be satisfied with a finite amount of resources, then scarcity would cease to exist. But what sort of genetic engineering would be needed for this? Would humans still be human?

3. You allow the market price to rise to the point where demand=supply. The item will still be scarce (because it is not in unlimited supply), but everyone who is willing to pay the price will be satisfied. Alternatively, you can ration by authority. Someone with enough power to coerce people to do what they won’t naturally do would simply choose who gets the scarce goods and who doesn’t. 4. Find economically viable alternatives/substitutes – e.g. instead of petrol, try vegetable oil (it works, but I don’t think cars are made for them).

5. Alter supply – e.g. instead of restricting imports, increase them.

6. Leverage – instead of allowing one unit of electricity to produce one unit of good, you can make one unit of electricity produce 5 units of good. They call this economies/efficiency, but the principle can be applied to various areas outside of production.

7. Increase the price – a side effect of the lack of supply, but you will probably be faced with lobbying groups.

8. Be prudent and prioritise use – if it’s scarce, it shouldn’t be wasted. So cut back on non-necessities.

9. Innovate -R&D to find new ways to solve the problem. Alternatively, you can change a few things and make a massive difference. However, innovation is spontaneous and is often circumstantial.

10. Reduce demand – change what the thing is used or alleviate the thing that it is used for. If the demand for the product is not there, scarcity is not so much a problem. Simpler said than done though. 11. Expansion of the productive capacity of an economy would help. However, it is likely scarcity will always exist as resources are limited but wants are infinite. So generally, it is how to allocate the resources most efficiently rather than how to solve scarcity, as scarcity can’t be solved. Resources have to be allocated at their optimum level, if this doesn’t occur it is known as market failure.

The government can intervene in the form of taxation (placed on a good to discourage its consumption), subsidies (given to firms to encourage production of a good, which makes it cheaper therefore encouraging consumption), regulation (laws used to prevent consumption of a good) and pollution permits (allocated to firms allowing them to produce a certain amount of pollution, they’re tradeable which encourages firms to be greener).

How to Solve Scarcity in the Economy Essay

Role of Commercial Banks in Economic Development Essay

Role of Commercial Banks in Economic Development Essay.

The Banking Sector has for centuries now formed one of the pillars of economic prosperity. Indeed history provides us with some starting information regarding how banks provided finance for imperialist ventures in newly acquired colonies. Over time banks have formed an important part in providing an avenue for both savings and investments.

Land, Labor, capital and entrepreneurs are the basic economic resources available to business. However, to make the use of these resources, a business requires finance to purchase of the land, hire labor, pay for capital goods and pay for individuals with specialized skills.

Detail role of commercial banks in economic development is given below:

Trade Development

The commercial banks provide capital, technical assistance and other facilities to businessmen according to their need, which leads to development in trade.

Agriculture Development

Commercial banks finance the most important sector of the developing economics i.e. agriculture, short, medium and long-term loans are provided for the purchase of seeds and fertilizer, installation of tube wells, construction of warehouses, purchase of tractor and thresher etc.

Industrial Development

The countries, which concentrated on industrial sector made rapid economic development. South Korea, Malaysia, Taiwan, Hong Kong and Indonesia have recently developed their industrial sector with the help of commercial banks.

Capital Formation

Commercial banks help in increasing the rate of capital formation in a country. Capital formation means increase in number of production units, technology, plant and machinery. They finance the projects responsible for increasing the rate of capital formation.

Development of Foreign Trade

Commercial banks help the traders of two different countries to undertake business. Letter of credit is issued by the importer’s bank to the exporters to ensure the payment. The banks also arrange foreign exchange.

Transfer of Money

Commercial banks provide the facility of transferring funds from one place to another which leads to the growth of trade.

More Production

A good banking system ensures more production in all sectors of the economy. It increases the production capabilities of the economy by strengthening capital structure and division of labor

Development of Transport

The commercial banks financed the transport sector. It has reduced unemployment on one hand and increased the transport facility on the other hand. Remote areas are linked to main markets through developed transport system.

Safe Custody

The business concerns and individuals can make themselves tension free by depositing their surplus money in banks. The banks also provide them the facility of lockers to keep their precious articles and necessary documents safe.

Increase in Saving

Commercial banks persuade the people to save more. Different saving schemes with attractive interest rates are introduced for this purpose. Number of bank branches is opened in urban and rural areas.

Construction of Houses

Commercial banks provide credit facilities to their customers for the purchase or construction of houses.

Assistance to Government

By providing funds to government for development programs, the commercial banks share the government for economic stability.

Increase in Employment

A country’s economic prosperity depends on the development of trade, commerce industry, agriculture, transport and communication etc. These sectors are financed by the commercial banks and employment opportunities are increasing.

Saving in Metallic Reserve

Cheques and drafts etc works like money. In this way the need of precious metals to make coins reduces and metallic reserve of the country can be utilized on other important matters

Credit Creation

Commercial banks are called the factories of credit. They advance much more than what the collect from people in the form of deposits. Through the process of credit creation, commercial banks provide finance to all sectors of the economy thus making them more developed than before.

Proper use of Money

People deposit their saving in the banks, so the scattered money becomes a huge amount in the way, which can be used for different projects in a proper way.

Financial Advices

Commercial banks also give useful financial advices to promote the business of their customers, besides credit facilities.

Increase in Investment

Commercial banks mobilize savings of the people. They make them available to the farmers, traders and industrialists for the development of agriculture, trade and industry.

Success of Monetary Policy

Under the supervision of central bank, all scheduled commercial banks make effort for the success and objectives of monetary policy. This joined effort of commercial banks makes the economic development possible.

Use of Modern Technology

The use of modern technology in less developed countries is only possible in the presence of developed commercial banking as it can be the main source of their funds.

These funds are utilized for the import of modern technology from developed countries.

Export Promotion Cells

In order to boost the exports of the country, the banks have established export promotion cells for the information and guidance to the exporters.

Economic Prosperity

Economic prosperity of a country depends on number of factors including the development of commercial banking. A sound banking system promotes the economic status of the people by providing them short, medium and long-term loans.

Training Center

Commercial banks established many trading centers for their employees to modernize the banking system of a country. In this way the banking experts enhance their abilities and contribute towards the development of country.

Role of Commercial Banks in Economic Development Essay

Law of Diminishing Marginal Utility Essay

Law of Diminishing Marginal Utility Essay.

In economics, utility is a measure of personal satisfaction or level of meeting a need that a good or service meets. For example the initial cup of coffee in the morning meets a large need and provides a large amount of satisfaction (utility). Another example is go under water and hold your breath, keep holding it until you think you will pass out. Then come up out of the water, that first breath is wonderful — tremendous utility. That is utility – the meeting of a need or being satisfied.

Now Marginal Utility is the change in utility from one more good or service being consumed. So the amount of utility from the first cup of coffee or that first breath is huge.

Diminishing Marginal Utility is the fact that each addition good or service consumed, creates a smaller and smaller amount of additional utility. In the examples above, that second cup of coffee in the morning or the second breath after the first will provide additional satisfaction or need meeting, but it will not provide near as much satisfaction (utility) as the first one did.

The third cup or third breath has even less additional satisfaction or need meeting ability (utility) as the second and the first.

Some products or services may have some increasing marginal utility at first, but every good or service at some point provides decreasing additional utility (or diminishing marginal utility).

When the total utility curve stops increasing at an increasing rate and starts increasing at a decreasing rate, that is the point where the marginal utility curve reaches its max and starts decreasing — this is the point of diminshing marginal utility.

Let me give you another example, if you had no shoes and someone gave you only one shoe, you would receive some utility. You can now hop through the sticker patch. But a second shoe that completes the pair might actually give you more utility than the first shoe, because you are clumsy and you keep falling down with only one shoe. But with two shoes, you can run and hop and not worry about stickers and stones. So the second shoe actually has increasing marginal utility.

Now going on, a second pair of shoes doesn’t add as much utility as the first pair; though it is still better to have two pair of shoes than just one. So total utility has increased with the second pair of shoes, but marginal utility has diminished with the additional shoes.

Law of Diminishing Marginal Utility Essay

PEST Analysis Essay

PEST Analysis Essay.

Q) On the basis of PEST analysis launch a Pakistani product in Belgium? In order to launch a Pakistani product in foreign country we have to look macro economic conditions of that country. There are different accept and measurement. As to market Pakistani product certain thing are important for instance culture, area, age, group, buying power, availability of raw material etc. Macroeconomic play vital role to sell a product in any country of the world. In macroeconomic PEST analysis is very important.

PEST analysis means political economical social and technological condition of a country where we launching our product. I am launching Shan plain spices in Belgium.

INTRODUCTION OF BELGIUM CUISINE Belgian cuisine is widely varied with significant regional variations while also reflecting the cuisines of neighboring France, Germany and the Netherlands. It is sometimes said that Belgian food is served in the quantity of German cuisine but with quality of French food. Outside the country, Belgium is best known for its chocolate and beer.

Belgian cuisine traditionally prizes regional and seasonal ingredients, leading to distinctive dishes Belgians typically eat three meals a day, with a light breakfast, light or medium sized lunch and large dinner. Though Belgium has many distinctive national dishes, it should be noted that many internationally-popular foods like hamburgers or spaghetti Bolognese are also eaten in Belgium. The list incorporates dishes of Belgian origin, or those which can be considered typically Belgian. Fries and other fast-food establishments tend to offer a number of different sauces for the fries and meats.

INTRODUCTION OF SHAN FOODS Shan Foods started from a single small room some twenty five years ago. Management decided to launch its very own brand and start a full-scale manufacturing unit to cater to the taste of the local public. Shan is one of the largest exporters of premium quality packaged spices, recipe mixes, pickles and desserts with products adding taste and flavors .Shan Foods (Pvt) Ltd. Is a rapidly growing food company with presence in over 50 countries Strengthening their departments with candidates having extraordinary positive energy, obtain and edge in technology, and determined in execution, with a passion for excellence.

The main objective of Shan foods sourcing department is to work with quality suppliers. The department diligently pick and select the best quality spices. Company pays extra attention in obtaining raw material. The planning process of Shan foods is depending on S&OP. The planning purpose of Shan foods is to achieved the target of R=R.. The make process of SCOR model is referred to the production or manufacturing facilities. Shan foods are dedicated to ensure the consistency of product by using well equipped production techniques. The supply chain team ensure that the goods or shipments reach their destinations well in time to match market trends and customer demand.

PICTURE OF SHAN FOODSShan Foods started from a single small room some twenty five years ago. Management decided to launch its very own brand and start a full-scale manufacturing unit to cater to the taste of the local public. Shan is one of the largest exporters of premium quality packaged spices, recipe mixes, pickles and desserts with products adding taste and flavours .Shan Foods (Pvt) Ltd. Is a rapidly growing food company with presence in over 50 countries. Strengthening their departments with candidates having extraordinary positive energy, obtain and edge in technology, and determined in execution, with a passion for excellence.

The main objective of Shan foods sourcing department is to work with quality suppliers. The department diligently pick and select the best quality spices. Company pays extra attention in obtaining raw material. The planning process of Shan foods is depending on S&OP. The planning purpose of shan foods is to achieved the target of R=R. Shan foods believed that planning should be right and in efficient manner. The make process of SCOR model is referred to the production or manufacturing facilities.Shan foods are dedicated to ensure the consistency of product by using well equipped production techniques. The supply chain team ensure that the goods or shipments reach their destinations well in time to match market trends and customer demand.

PEST ANALYSIS P = Political E = Economical S = Social T = technological

B) ECONOMICAL FACTORS IN BELGIUM

1)Nature of the Belgium economy: The modern, private enterprise economy of Belgium has capitalized on its central geographic location, industrial and commercial base. Most traditional industrial sectors are represented in the economy. Belgium developed an excellent transportation infrastructure of ports, canals, railways to integrate with its industry. Belgium has one of the most open economies in the world. This nature of economy suitable for Shan product

2) GENERAL ECONOMIC SITUATION IN THE REGION: Belgium currency is Euro. Belgium is a very open economy. This country allows foreign investor to invest in their economy. Euro is strong currency because of strong hold in economy as Shan product earn profit which in return help Belgium’s economy to rise more.

3) STRENGTH OF BELGIUM MARKET: Belgium has a well-developed free market economy, based on both industrial and service sectors. It is heavily dependent on international trade. Strong research and development team. Our lay man giligentally pick and select best quality species. Company pays extra attention in obtaining raw material. Our product is certified from international standards like ISO 9000 which is globally recognized throughout the world.

4)PRUCHASING POWER OF CONSUMERS: Belgium’s economy was based on the nation’s manufacturing capabilities. The country was the first in continental Europe to undergo the Industrial Revolution. Belgium depends heavily on world trade. Belgium’s trade advantages are derived from its central geographic location. We introduce our product in family pack as well as sachet so that every individual can take pleasure of spices in their cuisine.

5) PRODUCT DISTRIBUTION PATTERN: Supply chain team ensures that the goods or shipment reaches their destination well in time to match the market trends and customer demand. There Should in some stock in ware houses as a backup line ounce’s the stocks end in the store we immediately fill up store shelves through our product. Belgium developed a highly efficient and capable transportation infrastructure that included roads, ports, canals, and rail links.

6) DEVELOPMENT PROCESS IN BELGIUM: Food Industry is highly developed in Belgium, is devoted mainly to the processing of imported raw materials into semi finished and finished products, which are then Consume by Native.

7) Level of the economic income of the country: The rate of inflation in Belgium, this often refers to the rate of inflation based on the consumer price index, or CPI for short. The Belgian CPI shows the change in prices of a standard package of our product Belgian house holds purchase for consumption.

8) GROWTH OF OTHER BUSINESS: A unique strategic vision of the market in Belgium is presented, in particular identifying the numerous companies present together with their market shares and major brands by country and product. Standard data tables for each product provide a panorama of companies’ strengths and presence

9) INFLATION IN BELGIUM: The inflation is based upon the Belgian consumer price index. The index is a measure of the average price which consumers spend on a goods and services. Inflation based upon the consumer price index (CPI) is the main inflation indicator in Belgium. Our Shan product is easily adjust in the market.

A) POLITICAL FACTORS IN BELGIUM

1) POLITICAL STABILITY: Political environment refer political and governmental and legal environment. It has close relationship with the economic system and economic policy. for instance Belgium is a constitutional monarchy in which ultimate power rest with bicameral parliament. Belgium is an EU member state and as a member of EU Belgium have to follow regulation on trade treaties, import treaties, custom duties and other trade regulations. This political stability help Shan product to launch easily and archive the desire result.

2) GOVERNMENT SUPPORT: The Belgium government welcomes foreign investment and once established foreign owned company Is treated in the same way as Belgium owned company. Belgium tax incentive tend to favour new service industries and high tech companies.

3) TAXATION SYSTEM IN BELGIUM: The principle taxes effecting the companies are the cooperate income tax, pay tax on remuneration paid to employes and directors, insurance premium tax and depending on the location of the company certain regional and local taxes. Belgium has fully implemented the EU parent subsidiary intrest royalties and saving directive into domestic law.

4) CHEAP LABOUR: Belgium labor law encompasses laws on the terms of environment on rules of health and safety. All major Belgian companies have European work council agreement. Foreign employee who want to work in Belgium must have work permit and this work permit can be obtained relatively fast and easy. As permission form the Belgium government Shan food company easily take cheap labor from Pakistan which help the company to reduce its liability.

5) LAW AND ORDER SITUATION: As a law and order situation in Belgium is far better than Pakistan. no hap hazards, blast or other issues regarding the security. Suppler deliver the product on time. There’s no peril of theft of product aur raw material.prdust arrive on time in the market,at the right palce and on the right time.

6) CORRUPTION Belgium has a very open economy and offers a reliable environment for direct inbound investment. Because the country has a federal structure and is also subject to European regulations, decisions affecting the investment climate are taken at a variety of levels. Changes in corporation tax are making Belgium an increasingly interesting place. Belgium is least corrupt country. Corruption is minimal, and the government prohibits and punishes all forms of bribery.

7)ACCOUNTING,FILLING AND AUDITING REQUIREMENT: The annual report of Belgian companies must be drafted in accordance with Belgian GAAP(generally accepted accounting principle).foreign companies are required to deposits each year financial report in central bank. Financial statement must be audited by a statutory auditor because of well organized accounting system this country help a lot to accomplish Shan plain spices.

8) OPEN MARKETS: Belgium has low tariffs along with other members of the European Union, and non-tariff barriers are relatively low. The investment regime is largely open. The Financial Crisis Law passed in June 2010 grants the government stronger powers to step in during crises. In order of loss in sale of Shan plain spices Belgian government come forward to help the company. In rainy days government help company to pay its liabilities.

9)REGULATORY EFFICIENCY: The cost of establishing a company has been reduced to below 20 percent of the level of average annual income, and starting a business takes only three days and four procedures. price control policies continue to affect a range of products and services.

10) AVAILABILITY OF LAND: Belgium is a federal state consisting of three culturally different regions: Flanders, Wallonia, Brussels. In the 19th century, the area began to industrialize, and Wallonia was the first fully industrialized area This brought the region great economic prosperity. Regulation duties apply on leasing of real state located in Belgium at rates ranging from 0.2% to 12.5% is depending on the area where the company is located.

PEST Analysis Essay

Harold Lasswell Essay

Harold Lasswell Essay.

Harold Lasswell, political scientist, defines politics as a power struggle about “who gets what, when, and how. ” David Easton defines politics as an allocation of resources. David Easton defines politics as the “authoritative allocation of values or scarce resources. ” These resources are divided in three general types. Describe these types. The three resources are:

1. Political resources: This resource refers to the country’s power, prestige, and status, backed by their military power. They are called scarce resources because they are looked at in the hierarchical arrangement in the world order.

2. Economic resources: This resource includes the state’s financial resources (wealth, annual national income, supply of capital, and investment opportunities), industrial and agricultural production, and natural resources (oil, coal, water, and mineral resources). These are also scarce resources as well such as Oil and Water. We must consider we can do without Oil but not Water. It is possible we might see water wars likely in the 21st century.

3. Social and cultural resources: This resource is related, not directly, to the global struggle for power (The struggle to compete for and reach dominance in an organization, a state, a region of the world, or the whole world).

Unlike the other two resources, these resources are scarce and unequally distributed around the globe. As if you were a policy decision maker, recommend to your President which of these resources the government should focus on acquiring.

As a policy decision maker, I would recommend to my President to utilize all three resources. I really believe I would tell the President to be more accountable with all the resources. I would recommend to our President to choose the Economic resource first. I chose this first because of our country is facing at this moment are tremendous hardships. Because we did not get ourselves in this situation, we are facing what the previous President’s decision and we are cleaning up now. Discuss how you can achieve the maximum allocation for the resources you choose.

I really believe that I would have done by taxing all like the President has. I would also give back like he has done by giving back 5% of his income. All the congress would have to give back 5% of their income. I would cut back on the costs of entertaining that goes on within the White House. The traveling costs and the entertaining would have to balance each other out. The second that I would choose Education and jobs as well as healthcare is my next goal. I would make sure the Veterans and the Seniors as well as the people who are disable.

Harold Lasswell Essay

Economy of Russia Essay

Economy of Russia Essay.

Russia as a country has transformed significantly since the collapse of the Soviet Union. The economy has changed from a globally-isolated, centrally-planned economy to a more globally-integrated market based economy. The economy of Russia has gone through fluctuations since then to emerge as the eight largest by its purchasing power parity (PPP) in 2009 estimates (CIA, 2010). The Russian economy is largely dependent on the export of raw materials and natural resources, specifically oil and gas. Other resources include precious minerals, fishing, and agriculture.

Since the collapse of the Soviet Union, Russia has undergone two major economic crises. They are the 1998 Russian Financial Crisis and the 2008 Russian Financial Crisis which was a part of the 2008 Global Economic Crisis. This article will examine the performance of the Russian economy after the two crises. In addition, the article will evaluate the current performance of the economy of Russia. The 1998 Russian Economic Crisis After the collapse of the Soviet Union, Russia undertook major economic reforms to transform its economy closed centrally planned socialist economy into a capitalistic market economy.

According to the CIA Factbook, the most notable economic reforms in the 1990s were the privatization of enterprises that belonged to the state and the removal of Soviet price controls. The CIA notes further that the rapid privatization of the state enterprises (except in defense and energy related sectors) essentially handed over the enterprises to a few politically connected individuals popularly referred to as ‘the Russian oligarchs’ making equity ownership concentrated to a few.

It was during this time that Pinto, Gurvich, and Ulatov noted that the country was plagued with corruption, financial manipulations, and capital looting (capital flight). In 1997, the Asian Financial Crisis began and this led to the fall in commodity prices. As the crisis spread economies heavily dependent on exports were highly affected. Russia’s economy being heavily dependent on world prices was hit hard. Pinto et al point out that the exchange rate of the ruble against the foreign currency was artificially fixed and the subsequent fiscal deficit accelerated the crisis.

During the Asian Financial Crisis, the demand for oil and minerals declined and this affected the foreign currency reserves for the country. Poor management of the situation such as Russia’s Central Bank maintenance of the Ruble within a narrow range in the middle of the crisis by using the available foreign reserves made the situation worse. The poor measures resulted in the investors pulling off and inflation rising to over 80 per cent. The bail out offered by the International Monetary Fund and the World Bank did not help the situation. Several banks closed and the government debt increased considerably. The 2008 Russian Economic Crisis

The Russian economic crisis of 2008 was an extension of the global economic crisis 2008-2009. A report prepared by the World Bank pointed out that although the Russian economy was better prepared to withstand the financial crisis, its dependence on export of limited commodities made it succumb to the crisis. According to the report, the crisis caused a decrease in capital flows as investors withdrew across the world markets, the credit crunch affected the banking system in Russia, the decrease in demand for oil eroded the fiscal and foreign reserves of the country, and the stock market suffered from the uncertainty of demand for oil (4).

The International Monetary Fund noted that anti-crisis measures such as the states guarantee on loans to support the banking sector, the cutting of the interest rate by the Russian Central Bank, and the states support for the housing and car manufacturing helped in managing the crisis. Recession of the Russian economy slowed down and the economy has shown positive signs for recovery although slower than before the crisis. After going through the 1998 economic crisis, Russia undertook some policy and structural reforms with aim of cushioning the Russian economy against such a crisis as well as promoting economic growth and development.

The structural reforms were necessary to create regulatory and institutional conditions for business and reduce the administrative risks. Some of the measures that were taken to counter the crisis, according to the World Bank (18- ) include devaluation of the ruble, cash infusion in to the market, tax reforms, privatization, and review of international trade policy. When the ruble was devalued, there was a sudden increase in the price of imported commodities but the move benefited the local industries and they were able to pay off their debts.

The local enterprises also benefited from the cash infusion by the state, which in turn led to an increase in the demand for Russian commodities and services. The tax reforms were aimed at creating an enabling environment to stimulate the resumption of economic growth by reducing the tax burden. The reforms were aimed at corporate profit tax, VAT, and the removal of tax privileges that were not justified. The privatization process identified corporations that were to be privatized in 1999 and others in 2000.

The international trade policy required reviewing to take into account the devalued ruble and the fluctuating price and demand for oil and raw materials. The Russian government also introduced the stabilization fund to hedge against the fluctuating international oil prices. The recovery from the crisis was however accelerated by the rise in international demand and price of oil. The Russian economy had fallen due to decrease in demand for oil and when the demand rose, the economy started to recover. 2008 Economic Crisis

The government of Russia undertook intervention measures to manage the recent economic crisis and ensure that the country was on the way back to economic growth that had been achieved prior to the crisis. Some of the measures taken by the government were injecting funds and supporting the market. The government also offered bail outs for local corporations that relied heavily on foreign investment and hence highly susceptible to the changes in the global market. In addition, the government undertook further tax measures that saw the profit tax reduced to enable the corporations to remain operational.

The government lifted import tariffs on industrial equipments to enable the rejuvenation of the affected companies. In a similar scenario to the 1998 crisis, the comeback of the Russian economy occurred after the increase in the international demand for oil. Current Russian Economic Status and Future Prospects According to the IMF, the economy of Russia has recovered from decline but is yet to recover to the levels that it had achieved prior to the crisis. The IMF projects that the Russian economy will 3. 6 per cent in 2010 up from a low of negative 7. 5 per cent.

Russian economy is highly susceptible to economic crises due to its overdependence on the commodity markets. This has been evident from the two economic crises that have hit the country since the fall of the Soviet Union. Therefore, for the Russian economy to grow and cushion itself against the fluctuating international prices for commodities there is an urgent need to diversify the composition of the economy. The government of Russia has already taken measures such as investing in the information sector and has risen to become the world third largest software exporter as well as outsourcing.

In addition, the government has encouraged the development of agriculture and manufacturing industry through technological and organizational modernization. The agriculture has improved with Russia becoming a net grain exporter rather than a net grain importer as was the case a few years ago. The economic reforms that have been undertaken by the Russian government have the ability to promote the development of a stable economy in the future. Russia is set to gain from the structural reforms that have been instituted and with the vast richness in natural resources and economic diversification, the Russian economy is set to grow and stabilize.

References Pinto, B, Gurvich, E and Ulatov, S. “Lessons from the Russian Crisis of 1998 and Recovery” The World Bank. 2004 “Russia” CIA World Factbook. 28 April, 2010. 11 May, 2010. <https://www. cia. gov/library/publications/the-world-factbook/geos/rs. html> “Russian Federation” The International Monetary Fund. N. d 11 May 2010. < http://www. imf. org/external/country/rus/rr/> “Russian Federation” The World Bank. 2010. 11 May 2010. < http://web. worldbank. org/WBSITE/EXTERNAL/COUNTRIES/ECAEXT/RUSSIANFEDERATIONEXTN/0, menuPK: 305605~pagePK: 141159~piPK: 141110~theSitePK: 305600, 00. html>

Economy of Russia Essay

Government Intervention in the Workplace and Economic Development Essay

Government Intervention in the Workplace and Economic Development Essay.

In a free economic system, the decisions made by the buyers and decisions made by the suppliers, determine equilibrium prices and levels of output, in a free market. Scarce resources are thus allocated according to the competing pressures of demand and supply. An increase in demand of a product, signals the producers to increase the supply of the commodity, as potential profit levels increase so as to meet the increased demand. The working of a free market mechanism is a strong tool which has been used in determining allocation of resources among competing ends (Riley, 2006).

There exists an increased claim that when issues, and policies are left on their own economic devices rather than instigating a state control on them, it would result to a more harmonious and equal society with increase in economic development. This concept is based on the liberal theory of economics which was first believed to be formulated by Adam Smith. It proposes a society where there is minimal government intervention in the economy.

When government intervenes in workplaces, does it result to economic development?

This is an issue of contention between various economists, and we shall look at both the advantages and the disadvantages of government intervention in working places and the effect on economic development (Mishra, Navin & Geeta, 2006). The government has various goals and it may intervene in the price mechanism, in order to change resource allocation, with a view to attain a specific social or economic welfare. The government intervenes in the free market system so as to influence allocation of resources in ways that will be favorable in meeting their goals.

These goals might include correcting a market failure, achieving a more equitable wealth distribution in the economy, or general improvement in the performance of the economy. These interventions however come with a certain cost on the working of economic systems (Mishra, Navin & Geeta, 2006). Government has continually set rules and regulations that govern conditions and operations in work places. These rules and regulations, may affect supply or output of a certain commodity. We shall examine different areas that the government has intervened in work places and its consequent effect on the economy.

It is in order for government to intervene as it has multiple macro-economic goals of achievement of economic development, full employment, and price stability, among others. These goals sometimes are contradictory as the achievement of one goal affects the attainment of the other (Brux, 2008). Price controls In various work places the government can impose price controls. There are two forms of price controls which can be imposed by the government. The government can impose high prices for certain goods which are referred to as floor prices. This is a price that is set in which a commodity cannot be sold below this price.

Consumers are thus required to pay high prices for these commodities regardless whether the demand is low or otherwise. It ensures that the income by the producers of these commodities is higher than they could have otherwise obtained in a deregulated market (Petkantchin, 2006). The other type of price control is what is referred as price ceiling. It is a price that is set by the government, whereby suppliers are not allowed to exceed this price. It is an incentive to ensure that needy buyers or consumers can obtain this commodity at a lower price.

This control is mostly found in the main utilities such as telecommunications, water, gas and others. Free market economists argue that this control increases the burden of costs to businesses which damage their competitiveness as a result of huge amount of red tape (Riley, 2006). When prices are freely set by the market, they easily regulate the economy. Producers are able to determine which products are highly valued and preferred by the consumers, they help them ascertain the management methods and technologies which will produce the greatest economic well being.

Firms therefore attain incentives in order to innovate, integrate desired management skills in order to produce the desired commodities. Prices are also good indicators of the availability of resources. If the price of a commodity increases as a result of shortage, it signals the producer that, the there is a need to cut back on wastage of that resource, and efficient use of it. In general terms, prices enable economic players to enhance the most efficient use of scarce economic resources.

When the government controls prices, whether in form of a price floor or a price ceiling, then it becomes a disadvantage to the economy (Petkantchin, 2006). The government requires that in order for a certain business to be conducted, a license is necessary. This is a form of government intervention in work places, since it creates barriers to entry for potential competition. According to Brux (2008), licenses are issued to ensure that customers are protected from inferior quality goods and services. Licenses however, are harmful to these consumers when they are a requirement of the law.

This is because they reduce the availability of a certain commodity or service in a particular area, more so when there is a quota on the number of licenses to be issued. It is also detrimental to the well being of the consumers when the license fees are so high that smaller competitors cannot afford. This limits entry to a certain market which can be a way of creating monopoly. Prices charged on the commodity are higher than when there is a more liberal market. This affects the economic well being of a nation. The government also intervenes in work places by the use of fiscal policies.

It alters the level and the pattern of demand for a particular commodity in the market which has its consequences in economic development. One such policy is the use of indirect taxes on demerit goods. This includes goods such as alcohol, tobacco consumption among others. Their consumption comes with a certain cost on the health or the general welfare of the consumer. The government induces such taxes, in order to increase the price and thereby increase the opportunity cost of consumption. Consumer demand towards such commodities decreases. This intervention means that these industries would not perform at their optimal point.

They reduce their production so as to cater for the reduced demand of their commodities. It is a compromise on full employment that macro economic policies try to achieve, and as a result lower the level of economic development (Brux, 2008). Employment laws that govern businesses have been put in place by the government. They are a form of government interventions that also affect economic development. In the employment law, the government offers some legal protection for workers by setting the maximum working hours or setting the minimum wages to be paid to workers.

Organizations are thus controlled in form of wages paid to workers, which should have otherwise been left to be determined by the competitive laws of labor demand and supply. The effect of this intervention is an increase in the amount that an organization spends on wages. There is also a limitation that is placed by the government in form of working hours. This acts to curtail production levels which have a negative effect on the GDP. The profitability of the firm is also affected by increasing its operation costs. This reduces organizational profits that would have been used to increase the level of organizational investments (Riley, 2006).

When the government pays subsidies, it intervenes in the work places as it will obtain the money from businesses and public borrowing. This is an increase in public expenditure which means that the government has to increase the interest rates in order to attract funds from investors. Increase in interest rates has negative effect on businesses. This is because the cost of borrowing finances for investments increases which reduces the overall profitable ventures that are available for the business. The overall activity of business is thus curtailed or in more general terms the level of investment in the economy decreases.

A decrease in the level of investment reduces the aggregate demand which inhibits economic development (FunQA. com, 2009). Government intervention is sometimes in form of tariffs. The government intervenes in imported products by imposing high taxes on them. They do this in order for the government to earn income and protect the local industries. When a consumer consumes these goods, he/she pays high prices for them which make the consumer worse off. The consumer is thus forced to consume less of other products and services.

In the macro economy, the effect is to reduce demand of other goods and services which will make the economy to be worse off. This government intervention has a negative impact on economic development (Pearson Education Inc. , 2010). It is very common for both the small and big businesses to call in the government so as to protect them. Small businesses requests the government to offer them less regulation while increase the same on the big businesses. They also ask for fair pricing laws which act to hurt the consumers. Pricing laws keep prices for commodities high, since they come in form of price floors and hurt efficient competitors.

This is because efficient competitors are capable of offering the same commodity in form of quality and quantity at a lower price but the law by the government prohibits such. Competition is thus hindered to a greater extent as prices are maintained at a high level. If the commodity in question is an essential commodity, it would results to inflation which has adverse effects on economic development (Brux, 2008). Market Liberalization The government sometimes uses its power in order to introduce fresh competition into a certain market. This will happen in the case where the government breaks the monopoly power of a certain firm.

It ensures that competitors can penetrate the market which enhances the quality of products and services which are offered to the consumers. It introduces a more liberal economy, where the market is not controlled by one player who dictates on the prices and the level of output. These are the laws of competition policy, which act against price fixation by companies and other forms of anti-competitive behavior (Riley, 2006). Other benefits that arise from government intervention include correction of externalities. Externalities can be defined as the spill over costs or in some cases benefits.

Externalities make the market to operate in a level that the amount of output and the level of production are not at a socially optimal level. When there is a lot of corn being produced, the law of demand and supply will mean that price has to decrease as supply exceeds demand. When the government allows the price of corn to decrease beyond a certain level, the producers of corn will be at a loss which will de motivate further production of corn. In such circumstances, the government intervenes by the use of price floor where price would not go below that limit.

Leaving the market forces to adjust the price and output will socially affect some sectors of the economy and as such lead to the welfare of citizens being worse off (Pearson Education Inc. , 2010). Another reason as to why the government intervenes in the economy is to correct market failures. Consumers sometimes lack adequate information as to the benefits and costs which come from the consumption of a certain product. Government thus imposes laws that will ensure that the consumers have adequate information about the products so as to improve the perceived costs and benefits of a product.

Compulsory labeling that is done on cigarette packages is one of those legal concerns that give adequate health warnings to cigarette smokers. It is a way in which the government protects its citizens from exploitation and harmful habits that would affect them in the long run. This might have a short term effect in form of decreased profits on Tobacco manufacturers, but long term effects on improved health of consumers and a saving on future medical expenses (Riley, 2006). According to Riley (2006), it will be known that government intervention does not always result into the plans and strategies set or prediction by economic theory.

It is rare for consumers and businesses to behave the way the government exactly wanted them to behave. This in economics has been referred to as law of unintended consequences which can come into play in any government intervention. This would have negative consequences on the economic level since inappropriate policies would mean negative effects and influence. The market is able to maintain itself in equilibrium through price mechanisms and other economic factors. When the government intervenes, it affects this smooth operation of the market and this may lead to either shortages or surpluses.

The effect becomes worse when the government relies on poor information in making these interventions in workplaces. The effects might be expensive to the administration of businesses, and the interventions might also be disruptive to the operations of the business if these interventions are major and frequent. It might also remove some liberties (Pearson Education Inc. , 2010). Government interventions in workplaces should not be aimed to create great changes in the market. The conditions prevailing in the economy should be well reviewed and analyzed.

This will ensure that threats that can damage the economy have been identified and measures against such taken. It would be of great advantage if government interventions are designed to facilitate the smooth working of the economy rather than implementing a new and a direct control over the market. They should be assessed on whether they lead to a better use of scarce resources, whether fairness is being upheld in the intervention and whether the policy enhances or reduces the capacity of future generations in improving economic activity (Riley, 2006). Conclusion

Some economists believe that with perfect competition, there will be no need for any government intervention. Is it therefore wise to leave the economy to the doctrine of laissez-fare where there is no control or intervention by the government? As much as there exists some negative effects on economic development due to government control, the benefits which accrue as a result of controlled government intervention would be under no circumstances be compared with the risks that would accrue when the government adopts the liberal economic structure. References Brux, J.

(2008). Economics Issues and Policy. 4th ed. Ohio: Cengage Learning FunQA. com, (2009). Economics: Advantages and Disadvantages of Government Intervention? Retrieved 21 May 2010, from http://www. funqa. com/economics/92-Economics-2. html Mishra, R. Navin, B. & Geeta P. eds. (2006). Economic liberalization and public enterprises. ISBN 8180692574 Pearson Education, Inc. (2010). Reasons for government intervention in the market. Retrieved 21 May 2010, from http://wps. pearsoned. co. uk/ema_uk_he_sloman_econbus_3/18/4748/1215583. cw/index. html Petkantchin, V. (2006).

The Pernicious Effects of Price Controls. Retrieved 21 May 2010, from http://docs. google. com/viewer? a=v&q=cache:mYXWxJC6EpMJ:www. iedm. org/uploaded/pdf/avr06_en. pdf+Price+controls+and+their+effects&hl=en&gl=ke&pid=bl&srcid=ADGEEShvcqptHKj3Y_Mrxy5hhG7resIp_Y7FVbxWwhBqmLTBqzdSn3hvuXLutFYW9m1uRWom_D5InOy5G5Jp5AMTuCoFxKA-Rj-1tbrOA0PrnDz5VOBbruMR2HYdYcYm-SLf5Oq_aZBm&sig=AHIEtbTFfKO-NWp1d5bX2HTlouAB_gP1fQ Riley, G. (2006). Government Intervention in the Market. Retrieved 21 May 2010, from http://tutor2u. net/economics/revision-notes/as-marketfailure-government-intervention-2. html

Government Intervention in the Workplace and Economic Development Essay