Despite some criticisms towards capitalism, it is seen as the most successful economic strategy for a country compared to others such as socialism and communism, these successes can be highlighted by the economic development of Western countries and in which is soon becoming a global phenomenon. Capitalism has a negative geographical dimension, this is inequality. David Harvey writes in Spaces of Hope, 2000, that capitalism is “one national struggle between the classes” This highlighting that although capitalism aims to make individuals proposer, it is not a balanced concept at all (Harvey, 2000). This inequality is spatially manifested and therefore gives it a capitalism a geography. Capitalism’s economic inequality has led to a clear divide between urban and rural, this is evident in China.
In the late 1700s the first attempt of free trade development took place, but the effect was nearly absent due to the French Revolution. In the early 1800s, there was a stronger development of free trade (particularly in the UK) due to the industrial interests. In 1860 free trade was largely developed, the lowering in transport costs and natural trade barriers pushed the economy forward. But a few decades after the economy saw a huge slowdown, leading policymakers to abandon free trade. Protectionism went on until the end of the 1930s.
3.6 Competitive Position and industry attractiveness Garmco acquires arelatively low competitive position. This is because of their inability to compete with the Chinese manufacturers, the strength Alba has over them in increasing prices, the availability of substitutes especially in packaging and construction industry along with the aggressive competition worldwide. However, the aluminum industry apart from the high startup and fixed costs is attractive if the smelters entering have the capacity to enter and compete on a global scale especially with the Chinese
Introduction In global economy Africa remains marginalized and under-developed economies face serious challenges in obtaining sustainable and diversified development through strategies that focus on foreign and domestic market. Trade is viewed by many as being important for poverty reduction in developing countries and international trade assist in sustained economic growth, contribute to the development of capacities and support the expansion of employment opportunities. In this essay Zambia will be used as a case study to explain how theories of International trade influenced policy in Africa and what the implications on African development are. The first part of the essay will cover the Background on Theories of International trade looking
This is because it would increase the unemployment rate, harm worker health and step up living expense. Minimum wage law tends to have a worse effect on the employment rate. In fact, 90% of the company in Hong Kong is small and medium enterprises and their daily operation is already difficult. By setting up the SMW, those companies are required to follow the law but most of them are not able to afford the extra expenses from pay rise. According to Schmitt (2013), the minimum wage has slight or even no noticeable effect on the employment rate in that the cost generated by minimum wage is large relative to most of the firms.
South Africa attracts economic migrants because it is the second biggest economy of Africa and it is considered to offer better economic opportunities for economic migrants. The country is also rated as one of the best few countries in the democracy index in Africa. This seems the reason why people who are persecuted for political reasons in their countries choose South Africa as their shelter. As such, a person who has been persecuted in his country because he exercised his political opinion can freely exercise this right in South Africa. However, he will practically be unable to exercise his socio-economic rights in South Africa.
The uncontrollable macro environment includes economic, technological, societal, legal, political and environmental influences or factors. Some of these factors have an influence on business practices in South Africa and their innovations therefore it is important to know and understand the macro environment in order to sustain and retain customers with or without these factors/influences. In the following essay the different trends will be discussed, following with discussing a fad. The importance of consumer drivers when identifying trends will be discussed just before how the macro environment can be a driver of change and finally the role of consumer trends in competitive advantage. 1.1.
OUT OF SITE, OUT OF MINED: MINES BRING BENEFITS BUT THEY ARE NOT EQUALLY SPREAD South Africa is known for its extraordinary abundance of rich minerals. Furthermore, the future of South Africa is dependent on mines as they bring in money for the country. Therefore, Mining is a very profitable sector and it also creates employment opportunities; factors which help improve the socio-economic standards of the country. However, despite these benefits, the nature of mining has a negative long-term effect on the environment and its people during and years after the mines are closed. This impact has led to mixed emotions with regards to mining and its practices and as a result the introduction of mining regulations to ensure that the negatives are outweighed by positives.
The South African currency, Rand, is at an all-time low. While the Reserve Bank has the ability to influence Rand, it’s staying neutral as the rand continues to weaken which is problematic. Right now, the currency is subjected by the market forces. But with such low currency and exchange rate, it’s a wonder how businesses will start or stay in demand with the diminishing Rand. Over the last 20 years, the State has made strides in addressing income inequality.
The formal private sector is too small to absorb the growing labour force. The Economist estimates that over half of the young people in South Africa are unemployed. There are similar rates of unemployment across the continent. I believe the worlds smartest people don’t work for big multi-nationals. The worlds smartest people were born in small villages, didn’t have the right support to get into prestigious universities, don’t speak English and have been deprived of the socio-economic advantages that allow people to access jobs in large companies.