However, I appreciated the book’s objective as well as, a political statement regarding some realities that seemed stark and may threaten, or undermine, the economics of wellbeing, national security, as well as, the society unless they are addressed in a more effective manner. In his book, Peterson mentions Margaret Thatcher who says that it may be easy for the politicians to opt for the current gratification while they make other people pay the price for the future. However, that does not really change the reality that there is a price, since the price has a potential of being truly terrible. I do agree that the prospects of twin deficits, as mentioned by Peterson, have had some effect on the confidence, easiness, as well as on consumer and business behavior; although the effects have not yet been felt on the interest rates. The main reason for this is that the private demand for the investment capital is very weak.
The reason for why governments in developing countries sometimes are unable or unwilling to implement polices that create favorable conditions for economic growth boils down to two main reasons: social issues and political issues. Political issues are just as multifaceted as the social issues. Due to corrupt governments and regimes the lawlessness spreads throughout the developing nation like wildfire. Political issues revolve around the basic needs of a nation such as simple, yet, necessary infrastructure of schools, hospitals, septic tanks, etc. The necessity of public goods is vital for a developing country to survive, maintain, and become what we consider today, a developed country.
This can slow down the political process immensely, and as the government has a mandate to put through such legislation, pressure groups become undemocratic and start to undermine the democratic process. One last reason why pressure groups undermine democracy is the fact that they themselves may be undemocratic, and the leaders of these groups may not truly represent the views of their leaders. This undermines the whole point of pressure groups groups and thus can be seen as the 'politics of self-interest' and can present the public with overbiased and false information. Overall however, pressure groups are more likely to help the democratic process rather than hinder it, as they advance and improve political participation, and as participation is a vital part of democracy, pressure groups are an important part of the UK's democracy. While pressure groups may have unbalanced influence due to varying methods and funds, they are generally good at being a channel of representation between the people and the government, keeping the government in touch with the people.
Company Q’s current mind-set on social responsibility appears to be quite negative, uninformed, and antiquated. It would appear that the company chose to close stores in high risk areas without first investigating how they could provide service to this under-served segment of society while still maintaining a profit margin and ensuring the safety of its employees. The company’s veiled attempt to make quick profits by providing only a small, high margin sampling of the customer requested health-conscious or organic products has likely served only to alienate and diminish their customer base. Lastly, the company’s response to the local food bank’s request for donations appears to a feeble attempt to create a valid reason to avoid the extra work that may have been associated with this endeavor. This response likely had the added effect of offending their employee base by suggesting that their employees would utilize the program to steal from the company.
Regulation is the application of laws and rules created by the government, designed to correct percieved market failure. Market failure occurs when resources are not allocated in the best possible way. In order for regulation to be effective, the government will require enough information in order to correct market failure. There are a number of problems with regulation, the first is that it is often difficult and costly to impliment. In the case of pollution and carbon emissions, it is very hard to actually measure the level of carbon emissions being produced from a company.
E.g. if the project is damaged in civil war or political violence or the project is taken over by the government of the host country, Engineering Tech will suffer substantial financial loss. Political risk insurance from EFIC can help protect Engineering Tech from financial loss due to certain political events and this ultimately gives greater confidence to ET. e) Medium term export payment insurance: in general, the longer the payment period in project contracts, the higher the risks of non-payment and the greater the pressure on ET’s working capital. Export payments insurance from EFIC can protect ET against the risks of non-payment
The question we all as taxpayers should be asking is whether or not we will see a good return on our investment. The Democratic proposal is a bit more negotiable since the taxpayers would at least own an equity interest in these companies. However, even that modified plan seems too expensive and way too intrusive. We should consider alternative plans that are not quite as intrusive to market mechanisms such as the Lindt plan. The Paulson plan also seems to signal a dangerous shift away from liberal market mechanisms into an age of neo-mercantilism.
• Significant debt issue is a concern as it is risky and in conflict with the company’s culture and managerial of low-risk attitude. Hence, 20% debt-to-capital restructure is recommended as it is not significant amount as opposed to other alternatives. • Other effects, including financial distress, signaling, investment and clientele considerations, are difficult to measure but predictable to balance out to a mildly optimistic set of considerations. • An alternative approach is to increase debt in order to use the proceeds to pay dividends, however it is not recommended. In conclusion, if Hill Country were to engage in the leveraged recapitalization, this report would highly recommend the 20% debt-to-capital ratio be used to repurchase shares.
1) Are information gathering techniques like rajaratnam’s common on Wall Street? If so, what could regulators, investors, and executives do to reduce the practice? Yes, I think information gathering techniques like rajaratnam so are Connie. In Wall Street. Although insider trading is illegal people will continue to do it as they see money as more important than what it right and wrong.
In negatively of the government policy is they can block business operations such as finance, marketing, or property and automatically it become risk for 99 Speedmart businesses. The prevailing political environment in any country directly affects the economic environment or performance. Political changes affect greatly small business owners and it quite important for them to know whether the changes in the politics and government policies are supportive or unfavorable to their businesses. Base on the analysis it