Economies and diseconomies of scale Economies of scale are advantages that arise for a firm because of its larger size, or scale of operation. These advantages translate into lower unit costs (or improved (productive efficiency), although some economies of scale are not so easy to quantify. The main kinds of Economies of Scale are: Bulk- Wholesale is selling goods in tremendous quantities at a low unit price to retail merchants. The wholesaler will accept a slightly lower sales price for each unit, if the retailer will agree to purchase a much greater quantity of units, so the wholesaler can maximize his profit. A wholesaler usually represents a factory where goods are produced.
This will lead to firms using latest technology to produce at lower costs. Disadvantages • Unemployment: Businesses in the market economy will only employ those factors of production which will be profitable and thus we may find a lot of unemployment as more machines and less labour will be used to cut cost. • Certain goods and services may not be provided: There may be certain goods which might not be provided for by the Market economy. Those which people might want to use but do not want to pay may not be available because the firms may not find it profitable to produce. For example, Public goods, such as,
Nations of the world, in this way, can dispose of those goods in the foreign market that they have in surplus. Greater variety of goods available for consumption – international trade brings in different varieties of a particular product from different destinations. This gives consumers a wider a variety of choices which will not only improve their quality of life but as a whole it will help the country grow. Promotes efficiency in production as countries will try to adopt better methods of production to keep costs down in order to remain competitive. Countries that can produce a product at the lowest possible
The return on assets and return on equity ratios are also better for Hershey’s because the company is making more money on less investment then Nestlé. External Analysis The first of Porter’s five forces is the threat of new entrants. “Identifying new entrants [to an industry] is important because they can threaten the market share of existing competitors” (Strategic Management). Fortunately for The Hershey Company,
Even if the outcome of the Round was a clear one, it would be very hard to identify its effects on 'developing countries' in general terms. The general outcome could be described as favourable to the sum of the developing world, with only TRIPs and the restrictions on future sovereignty of trade policy posing negative effects. But the advantages seem to be clearly for the most advanced of the developing countries, which already have developed basic services to offer and greater possibilities of attracting potential foreign investments. The new regime in services and anti-dumping would, however, offer gains to the least developed countries in the long-run, as long as they become more efficient in exporting the former or become more vulnerable to the
Time is a very important factor in today’s working environment. Testing can reduce the time spent on applicants whose characteristics, skills and abilities do not match what is needed. The process can help reduce a multiple candidate list to a shorter more manageable and suitable candidate file. Research has shown that through testing, businesses have been able to improve the quality and duration of employment for new hires. With this as the case, there is an improvement in the desired business outcomes: lower turnover, increased sales and profitability, higher customer satisfaction and higher productivity.
The author goes into detail arguing against long hours, unhealthy environments in the work place, discrimination, terrible temperatures and the little salary. By going into detail within these categories he shows sympathy emotionally. Ravisankar pushes his point in reasoning by pointing out moral responsibility so the workers receive fair compensation and a cleaner working environment. He describes America’s obsession with a great bargain which leads to wide spread use of cheap labor. He refutes the argument by saying the companies such as: Nike, Reebok, Gap and such are the blame for seeking to get as much out of workers for the least possible price describing “The race to the bottom.” He presents a strong argument.
Changes in operations will help increase job exports. For the U.S., companies export new capital equipment and production to help create potential competitors. Importing countries demand that exporters shift part of their production to the purchasing nation in order to gain their sale over others. The emphasis on exports to developing countries combined with the focus on sales of new capital goods may introduce inappropriate technologies into nations with high unskilled labor pools. Exports of mining, petroleum, and infrastructure equipment may help multinational corporations and developed countries access cheaper raw materials, with few benefits for the residents of developing countries.
'International aid brings both benefits and problems for a country trying to develop its economy' with the aid of named examples evaluate this view. (30 marks) International aid can bring many problems to a country in need of development, this is usually through the ill-use, ill-deployment and abuse of International aid by both the donor countries and the recipient countries. However, effective aid brings more benefits to developing countries than problems is the aid is properly allocated to the area most in need and the aid is not ties so that it benefits the donor. International aid can bring problems to a developing country as it can be an obstacle to development and can provide other problems put forward by the political right. Aid can become an obstacle to development because of the tied nature of much aid, which benefits the donor country more than the recipient, in economic terms.
He can work harder to boost his own factory’s production to increase revenue; then he may receive a higher pay as his company’s business improves. On the other hand, Jeffery can change his comparison targets. His company is probably of a smaller scale compared to Norzi’s. Jeffery can compare his pay against another production manager in a smaller plant. Or probably, Norzi just happened to be the highest paid manager in the region, there may be others who are also paid the same salary if not lower than him.