6.0 Measurement Model In our opinion, measurement model not specified by the IASB for PPE could not provide a more useful information to existing and potential investors in comparison to the models listed in the IFRS. This is supported by its mission to serve the public interest by promoting trust, growth, and long-term financial stability in the global economy. Our opinion can also be further supported with our findings as below. Fair Value Model This model is allowed by the IASB to measure Investment Property but not PPE. Fair value model is where an asset is revalued at market value without calculating depreciation and impairment.
Innovative ideas aren’t encouraged; As the Government is in full control of the market the Government doesn’t encourage innovation. 3) Production of goods and services at a price affordable for the citizens; Due to income inequality Government takes measures to produce goods and services that are essential for the society regardless of the cost. The Government’s aim is to produce products that will benefit the society as a whole regardless of the income earned.
The important one is that international trade could have impact on home industries. If imports unrestricted it would lead the upcoming industries to collapse. Another disadvantage, developing countries could exploit the underdeveloped countries because the underdeveloped countries would economically depend on it. Protectionism policy / Restricting trade Free trade involves costs as well as benefits. Every country implements some barriers for trade.
However, it does not seem justifiable to put risk on health and life merely for financial interests. The same counts for the argument of critics that establishing safety with no uncertainty would increase costs unnecessarily. Possibly Van den Daele, who is one of the main critics of the precautionary principle applied on GMOs, misunderstood the goals the precautionary principle tries to achieve. He questions the value of the precautionary principle by asking rhetorically if it achieved better health and a better safer
As mentioned above, market economy has its advantages over planned economy. However, this does not mean that the transition towards the market economy is flawless as there are several disadvantages to this movement as well. The first reason to why this transition is not encouraged is because unequal distribution of wealth is bound to occur with low or no government intervention (Barbanel, 2014). Although it is believed that everyone has an equal chance to flourish in a market economy, Intelligent Economist (2017) has specified that misallocation of resources would cause market failures to be inevitable. In other words, those who own the resources for businesses such as land would prosper while those who do not own any resources would suffer.
Necessarily, should the second claim hold true, in that the rules and functioning of the globalized world are skewed in favour of one party over another, then the first claim will necessarily be true as well, that globalisation’s potential has not been adequately exploited. The thrust of this paper will be to explore the rules and functioning of the globalized world, and to determine whether they indeed are skewed in favour of the advanced industrial countries and other elite interests within those countries. In Part B, we explore the problems of today’s globalisation, and see how it is largely unsatisfactory. In Part C, we consider possible ways forward for globalisation. For a focused
Government failure: Gravelle and Rees (2004) state that government action will not necessary lead to pareto efficiency even of the second best. It must first be established that the government will be both willing and able to act in the required way. The need of a positive theory of government decision making in the same way that the predictions of consumer or firm behaviour requires a positive theory of consumer or firm decision making. Two propositions have been made in support of the argument that it is not obvious that government intervention in the economy will fully correct market failure: Firstly: the policies pursued by the state results from the actions and interactions of politicians, bureaucrats, voters, managers and civil servants. We cannot assume any of these individuals are completely altruism in the sense that they are motivated solely by the
It also places certain people within the spectra of the economy. This is because politics has the ability to define who has the economic resources. We note that in the global context as well, there are consequences of unequal distribution of resources. An unequal resource distribution may lead to a political unrest and according to Acemoglu and Robinson (2006), “economic institutions are endogenous”. This means that some individuals will be given more benefits than others in economic resources which may end up in a total decline in economic growth.
The bad side of globalization predominantly revolves around the fact that the preferences differ from nation to nation, and coming to a consensus on any issue becomes more difficult when too many nods are required. When it comes to globalization, the difference between the rich and poor nation can be a major hindrance. Even though the richer nations will try to assimilate and help poor nations come up, they will not sacrifice on their national interests willingly. Economic Problems: If the entire world becomes a global village, any sort of economic disruption in one nation will have a disastrous impact on various other nations which are closely related to it in terms of trade and commerce. It will be a domino-effect wherein disturbance in one economy would result in disturbance in another, and so