Cons: •The energy industry they are into is very volatile industry with fluctuating prices. Staying into the same industry would have caused them become more vulnerable to the economic changes associated with this industry. • Alternative 3: Organisation culture Enron being performance driven company always motivated employees to innovate and deliver value to the organisation. This sometimes created a pressure on to the employees to perform in any circumstances and hence motivated them to adopt to unethical practices. Thus there is a requirement of a mechanism to first stop these practices from taking place and even if it happens there should be a set of measure in place to check.
3. Financial economies: smaller firms find it hard to obtain finance at reasonable interest rates, larger firms easily find potential lenders to raise money at lower interest rates. This capital is used to expand the production scale resulting in low average total cost 4. Marketing economies: marketing costs involved advertising & promotional costs, these costs are fixed earlier, as firm expands its capacity it can exceed the limit for marketing costs this results in low average total
Huntington’s postulate references the future of civilization. It is important to note that he sees our current nation-state model as enduring, yet The United States of America appears to be on a collision course with“the rest” of the civilizations in the non-westernized world. Though there is some evidence to support the diminishing role of the U.S. in Carroll Quigley’s model, loss of power is certainly not an inevitability. Huntington calls for cooperation and coexistence between the major world civilizations as a way to stem future culturally based conflict. While the West must appreciate it’s own unique culture, Samuel calls an imposition of those values, “in the emerging world of ethnic conflict and civilizational clash, Western : belief in the universality of Western culture suffers three problems: it is false; it is immoral; and it is dangerous” (Huntington 1996: 21).
Civil law systems yield unpredictable changes that reduce people 's willingness to invest long-term. Lack of long-term invests results in slowed growth and lowers the standard of living. Adhering to legally binding contracts and protecting people 's property are major reasons why common law systems show 1/3 higher economic growth and a standard of living that is 20% greater than their counterpart. Lastly, the author identifies two other broad categories of institutions, inclusive
Jobless growth is in a way a self-explanatory term, which is described as a phenomenon in which the economy experiences growth while decreasing or maintaining the employment levels. It is one of the top concerns of the global economy and the persistence of this trend has forced leaders and economists to come up with possible solutions to combat it. The reason why we need to be worried about this issue is that we always see growth as an expansion and therefore we’re wired to believe that as an economy grows the opportunities also increase for everyone. Fundamentally, the level of employment needs to rise especially in the case of the developing economies, but when this fails to happen we observe what we call a jobless growth or a jobless recovery. One may
The playing field is levelled to maintain relations and satisfy all actors. Governments are at the centre of the triangle managing some painful and challenging adjustments to embrace contending internal and external goals. The more multifaceted the economy, the harder the difficulty in forming and sustaining unambiguous policies in these quid pro quo. When making these bargains they have to take care of numerous types of relationships into consideration. The relationship between MNCs and states is an
Problem statement: Globalization entwines nations, so that if one nation crumples, the breakdown is liable to swell through the framework, pulling numerous different nations with it. Globalization makes it for all intents and purposes incomprehensible for controllers in one nation to predict the overall ramifications of their activities. And Globalization trades usage of obliged oil supply from made countries to making countries .Also Globalization sets up a money "race to the base," with every nation dropping so as to attempt to get a fare advantage the estimation of its coin. However Globalization exchanges venture spending from created nations to less created nations. Globalization acts to augment world oil costs.
More than that, they wouldn't pursue more than this because the next unit will create more cost environment so even when only considering private costs and benefits Q1 is the level output will be generated by the process Meccan this is market fading because we should also consider the external costs which we act the private past and this gives us a parallel social costs curve which is higher by distance of vertical distance. equals to the external costs higher than the private costs. It will have a new equilibrium position and a new powerful Q2 which is socially optimal. The best level an output for society but we have market failure is the market gives us Q1 too much every unit between Q2 and Q1 generates more customs benefits and we can see that the diagram which is the summation of all the units of outputs hast exceeding benefits-cost exiting benefits. Next, overproduction caused by the failure of market mechanism and label this the welfare loss to society is the
more than demand in the market, which leading to falling prices. It is favorable to consumer but a bad new for exporters. Besides that, the worsening TOT was also caused by the technological invigoration in developed countries. In well developed countries, monetary income, prices and living standard have increased rapidly due to the advance in technology. Indirectly, the goods and machines produced by them become more expensive, which impact on the deteriorate TOT for less developed countries.