To apply the theory of the Wealth of Nations in current economic policy, one should first recognise the economic system Smith himself was living under, which was the mercantile system. Before discussing further, it is worth to note that his conception of the market was much different from the one in vogue today. To Adam Smith, market was a place especially for exchange. Whilst, the term ‘market’ in today language is far more comprehensive complex, comprises the whole of economic activity, including production and the individuals and firms that involved in the market, as well as exchange. Such a ‘market’ is basically what Adam Smith called the ‘commercial society’.
Return on Equity ratio points at the company’s efficiency and earnings performance. In the case of Barry Callebaut, the Excel graph shows a slight fluctuation of the ratios in different years. According to Investopedia.com and Readyratios.com, the 12-20% is usually considered by analysts as a good investment quality, whereas Barry Callebaut is currently 0,36% below the lower threshold. Nevertheless, the ratio has been over 13% from 2013 till 1015, which shows that the company efficiently employs its
Adam Smith, David Ricardo or Karl Marx are known for many as the pioneers of contemporary economies. Their Work and researches were the bases of most of nowadays economic models used by countries around the world. Adam Smith, David Ricardo and their followers were labeled as the classical economists when later on Karl Marx and his followers were labeled as the Marxists. These two economic schools were some of the biggest in history, but yet differed in many ways. Through this paper, we would discuss the says of the Classical and Marxism schools concerning their views on wages, their different opinions about the theory of value, their sides about capital accumulation and finally the different point of view of the schools regarding the diminishing returns.
Introduction to entrepreneurs Entrepreneurship refers to the concept of developing and managing a business venture to gain profit by taking several risks in the corporate world. Simply put, entrepreneurship is the willingness to start a new business. Entrepreneurship has played a vital role in the economic development of the expanding global marketplace. An entrepreneur is willing to work for himself and by himself. There are several different meanings of the term entrepreneurship.
Some definitions of entrepreneurship has matched, others has contrasted, totally or partially (Braunerhjelm, 2010), it was stated that entrepreneurship is the vehicle to move the economy forward (Schumpeter, 1934); contrastingly; it was stated that the entrepreneur is someone who moves the market toward equilibrium as they discover profitable arbitrage possibilities (Kirzner, 1973). Entrepreneurship is not always related to the creation of financial wealth, it could be related to increasing employment, talking inequalities, or indeed, increasingly, environmental issues (OECD, 2007). Entrepreneurship is an exceptional set of activities carried out by individuals with an exceptional mind-set in order to maximize profit, entrepreneurs are these individuals who see the world differently and envision the future better than the other do (Abu-Saifan,
Business cycle The business cycle measures the expansion and contraction of economic activity over a specific period of time. The cycle consists of four component which are namely the; trough, upswings, a peak and downswings (Mohr, 2015:411) 2.4. Cause of business cycles According to the monetarists business cycles are brought about exogenous factors which are outside influences such as faulty government policies. These influences induce instabilities in prices, production and unemployment, these economist believe that should the government not intervene in the market system, market forces can be given a chance to correct their own economic dysfunctions. Whoever Keynesians economists believe that endogenous factors such as the multiplier, interest rates and foreign exchange cause business cycles and encourage government intervention to smoothen out the cycles.
To some scholars, the internationalisation process is how a business spreads locally and between countries both regionally and globally (Jansson, 2009:48). While internationalisation is the methodological approach or steps which an organisation takes to engage in business activities abroad in order to build required resources and become major players on the global stage (Jansson, 2009; Johanson & Vahlne, 1977; Meyer & Thaijongrak, 2013). Despite the understanding of firms’ internationalisation process, a critical observation of extant literature reflects that advanced economy firms’ and few of the large emerging markets multinationals (EMNCs) from Brazil, Russia, India and China (BRICs) had dominated the study of MNCs internationalisation in the
Present your argument both for and against audit exemption for small companies. Small and medium enterprises (SME) are the basis of the economy of any modern developed state. Not surprisingly, the authorities are trying to support companies in this category. It is a quite serious debate over audit exemption for small companies. Audit exemption will mean that small businesses will be able to focus on the growth and employ greater number of employees, rather than to deal with the paper work.
It was also found that firms which adopt internet are much better placed in the market, are technologically sound and are also graphically updated about their customers. Finally the article concludes by stating that SME must target new market with existing products using the internet forum. In the vast existing literature on strategies more is given to larger companies or businesses but not much theoretical background is present to explain and guide the strategies for small scale businesses. (Gilling et al) as in (Yogo, 2013) SMEs in India SME (Small and Medium Enterprise) play a very major role in the economic development of both developed and the developing economy. SMEs majorly focus on production in the country, generating high level of employment and tremendous amount of contribution to the nation’s export.
Hisrich and Peters (1998), explained that the study of entrepreneurship has relevance today, not only because it helps entrepreneurs better fulfill their personal needs, but because of the economic contribution of the new ventures. According to Hisrich and Peters (1998, pp. ), “more than increasing national income by creating new jobs, entrepreneurship acts as a positive force in economic growth by serving as the bridge between innovation and the market place”. Ekanem (2005), summarized the importance of entrepreneurship to include ensuring rapid development, increased utilization of local resources, provision of a training ground for