After the trump administration came to power, the government has shifted towards more protectionist policies, such as Trump renegotiating the boundaries of NAFTA. Protectionism refers to the economic policies imposed by governments to restrict trade across countries to achieve a macroeconomic goal and are enforced through a variety of strategies, the most common of which is tariffs on imports. Protectionism comes with the advantage of protecting domestic industries from foreign ones and helps strengthen the industry and create jobs. On the other hand, increased protectionism in the long term weakens industry as there is no need to innovate on the part of firms and worsens its international competitiveness. Many on either spectrum of the discussion
This was caused partly by the high self-confidence of the top management which was too ensured that the position of GM is everlasting. This assumption was proven as incorrect. The market position of General Motors before 2009 was dominant in many, but after 2000 GM’s vehicle production was stagnating globally. Together with the fact that the automotive market was stably growing it implies that General Motors was losing its positions on all important markets relatively to other automakers. In U.S., traditionally known as the core market, GM was selling less and less cars even since 2000 (The New York Times, 2009) and lost one third of its position, covering 28,1% share in 2000 and only 19,8% in 2009 (figures for cars and light trucks sales in U.S., Canis et al.
Actual causes of the Global Financial Crisis There were a variety of factors (that had nothing to do with the act) to blame for this crisis. One important factor was low interest rates, which was promoted by George Bush during his presidential campaign for each American to have his own home. Low interest rates increased home loans drastically which start creating a price bubble. Further, the quality of home loans given declined over time; credit of the person was not scrutinized. Because of such high amount of subprime loans, home owners began to default on their payments impacting the rest of the economy through CDOs.
We can assume that because of it, the members of the Samahan ng mga Manggagawa sa Hanjin Shipyard were not able to speak up about the incident fearing that they may lose their job. Another conflict is that the company had been a consistent top exporter in the country’s premier free port earning billions of pesos thus; it is assumed that they still want to remain at the top. With that, issues such as the expenses they will have to pay in order to attain a safe environment for the workers become a problem for them as well as the death of a worker because of the penalty charges. With such expenses, it could lead to the company’s net loss or even worst, their bankruptcy. This is why instead of fixing the problem, the company made use of their connection to fabricate the investigation results.
First, he explains that the so-called “poverty trap” is not the cause of poor nations’ slow or nonexistent growth, despite the claims of foreign aid organizations. Easterly argues instead that bad governments and their interference with their economies may be the reason for many countries’ slow growth. To fix this problem, many aid organizations attempt to assist poor nations by restructuring their economic institutions from the top down. However, Easterly claims that these attempts have shown to be futile time and time again. He argues that this is because restructuring an entire economy from the top down is almost always bound to fail.
The main factors that contribute to agency problems are Separation of ownership and control, Managerial goals vs. shareholder goals and Asymmetric information. Share prices drop as Steve Jobs did not want to step down or let the shareholder know the full information relating to his illness and ability to work. Garratt (1996) cites the one-man rule as being the key symptoms of corporate collapse: Having a person with absolute corporate power may be beneficial in the short-term, but may, in the long-term be disabling for the organisation. This seemed to be the case for Steve Jobs. The Directorial Dilemma states that: “The board must be sensitive to the pressures of short-term, local issues and yet be informed of the broader trends and competition”.
Many have found that acting in social responsible way will greatly affect financial performance. For some people, the idea of performing social responsibility seems very ridiculous for the reason that the final purpose for corporations is to maximize profit and shareholders’ value. For instance, Milton Friedman (1962) argues that the maximizing shareholders’ wealth will prohibit firms from acting in ways that benefit the society, because it’s impossible for corporates to practice social responsibility at the expense of bottom line. However, Alexander and Bucholtz (1978) and Bowman and Haire(1975) have pointed out that stakeholders will probably view corporate social responsibility, which is a part of corporate’s reputation, as its management skill. Thus, low social responsibility will lead some stakeholders to doubt the capability of a firm and may increase the number of a firm's more costly explicit claims (J.
cases of unethical international business practices is one of the largest Japan automotive corporations ? Toyota. The company was "confronted with safety concerns regarding faulty breaks and sticking pedals in 2009" and refused to take immediate recall action, enabling a potential unstoppable force to?unconsciously make its way around?overflowing city streets. One of the most important aspects of any car company is safety - the concern for safety, how both employees and consumers are kept safe, and how issues are handled should a safety concern arise. Toyota also announced that?substituting side airbags for properly installed breaks save them "US$124 million and 50,000?man hours," the cost of what it would have taken to recall and fix vehicles.
For that, a government might choose to interfere in markets i.e. to involve in another county’s economy, as well as it might interfere in international wars in order to impose peace in the disordered country often through the use of the military forces such as the US intervention in Lybia. The determination of a government intervention relies mainly on the identification of its reasons. Economic interventions is the involvement of a government in economics i.e. the interference in marketing or in pricing, in order to influence the economy mostly for both of the public and the state’s interests.
Known cases of currency manipulation are the cases of china and japan. Both countries have to make their currencies artificially undervalued, which made their exports more competitive. As the value of the china yen and the japan yuan lowers the prices of japanese and chinese will consequently fall. This has created a huge advantage for japanese and chinese products on the market. Today the low value of these currencies, which has nothing to do with the real situation has created great difficulties for the economies of europe and the USA.