And although jobs come to the less developed nations, boosting the economies there, the environment suffers because the restrictions against pollution are less strict. Major companies such as Suncor and Syncrude have legal obligations with the government to restore the land that they are using to as close as they can to the natural state they found it. Sometimes these legal obligations are too expensive for companies to adhere to so they do not proceed with building the plant. This has a significant impact on environmental sustainability as well as sustainable prosperity of the people in that area or
However, upon deeper inquiry, it causes more damage to the world due to its unforeseen costs of production, which makes it unsustainable. The energy needed for the production of certain products far outweighs the transportation costs, therefore rendering the reduced transportation cost irrelevant. For example, it may make sense for a Londoner to buy local lamb, however, a study conducted in 2006 suggests that it would make more sense for a Londoner to buy lamb imported from New Zealand as “New Zealand lamb is raised on pastures with a small carbon footprint, whereas most English lamb is produced under intensive factory - like conditions with a big carbon footprint.” (Source C). The amount of carbon footprint in the production of lamb in london outweighs the amount of carbon reduced produced by the transportation of lamb from New Zealand. In an online article in an environmental magazine, a graph shows that the total greenhouse gas emission during production is at least triple the amount of greenhouse gas produced during transport or retail (Source D).
The model eliminated the Glass-Steagall legislation, which prevented large firms from making risky financial investments. Deregulation is the key to runaway equality and deregulation allowed it to happen (Leopold, p. 35). Lastly, reducing government social spending eliminated many safety net programs that aided and protected workers and families during tough economic times. The cutting of safety net programs does the exact opposite of what the Better Business Climate model promised. The model is supposed to bring renewed prosperity to the United States but it brought more inequality and stripped safety net programs that actually helped most Americans.
Although the United States is also guilty of having its people live in poverty, and others falling victim to violence and countless injustices, it’s not as tolerable as seen in the border towns. It is eye-opening that two countries that are so incredibly close geographically can be so far apart economically. This could be traced back to wealthier, faster developing countries exploiting underdeveloped countries like Mexico. The uneven distribution of economic power, assets, and increased globalization benefits wealthier countries like the United States and can hurt poor ones like Mexico as seen in the book. Increased globalization for poorer places like the ones mentioned in the book means they get to be exploited, pushed further into poverty, used for cheap labor, and any valued natural resources, all leading to a dying economy.
Climate change is denied is due to the prioritization of business and the economy. Large corporations create their products with uncostly materials, in order to profit more, and those materials are more-often-than-not non-renewable resources or cause damage to the Earth. These corporations prefer to not be targeted with accusations of the unethical damage they are causing. Therefore, they create propaganda against climate change, they create doubt among their customers. It is considered a business tactic to create news surrounding issues, in order to distract the consumers from whatever controversial issue that is, or could be, affecting their sales.
Cheap labor with little tax between the countries, US manufacturers are drawn to the south to mass produce products to be sold around the world, sparking the debate of job loss in America. Life in Maquiladoras is brutal and the working conditions are atrocious and, simply put, a violation of Human rights. Numerous workers have given reports telling of the chemicals that they breath in, the unsafe machinery that is being used and the disregard for the Mexico’s labor laws. Heavily subsidized corn entered the Mexican market place at cheaper production costs lowering the consumption price. This put thousands of Mexican farmers out of work, which in turn contributed to the mass migration farmers looking for work.
The important reasons for merging is to cover the space in the company’s product, resources, extending market area and economies of scale, which the new combined entity will have when operated individually before. Economies of vertical integration helps to access significant control over the production process. Also through the new management, Operating profits can be raised by reducing wastages and redundancies from operations. Synergies are also an important reason for merging as the positive synergy could reduce the cost and drive up the revenues. In the merged firm, abundant skills and technology being pooled together and brings innovation in products and services.
It also depends on the circulation of marketing intelligence across various sectors and company’s acknowledgement in return. Benefits of Market Orientation • Sales growth has a direct impact on market growth. Companies which are more focused towards market orientation, encounter sales outgrowth. • Market growth is proportionally related to increase in market share. This implies that those companies which are more focused on market orientation, experience higher market share.
Hong et. al (2008) Added that by entering into trade liberalization agreements, exporting industries could increase their marketing expenditure to the exporting country as they had lower tax rates to pay. Fosu (1990) found that trade agreements enabled the home country to concentrate investment on the sectors that had a higher competitive advantage. Trade liberalization has is known to bring benefits to the financial sector as well. By increasing exports, a nation is able to accumulate additional foreign exchange (Kemal et al 2002), promote additional saving and investment (Todaro, 2000) which may lead to an additional growth of exports thus creating a virtuous cycle.