Negative externalities occur when social costs are more than a private cost. Governments may usually intervene when negative externalities arise, this is to tax demerit goods, which are goods that have negative externalities and are over produced in an economy. However, the government may find other solutions much more useful, for example; they find it more effective to subsidise merit goods, goods giving out positive externalities and also provide more information about the effects of demerit goods to discourage them. If markets were over producing demerit goods, those selling those goods such as firms would be taxed, so raw materials for the goods may be more expensive or possibly the machinery. This would increase the costs and result in the firms passing on the costs to the consumers, this would increase the prices of the goods causing negative externalities and discourage them from being bought.
4. One of the functions of money is as a store of value. How does inflation affect money's ability The value of the dollar would decrease; prices in stores would go up. We carry money so we don’t have to 5. Imagine that you are considering moving to a new country and looking for a job there, but you first want to make sure the country has a strong economy.
The ability to tap into the global labor market will make the company more competitive by being able to offer competitive prices on products due to lower overhead cost associated with the offset in the labor cost. Attracting employees to join the company is the better option unless there is a management position that requires exceptional talent to fill the position. Relocation of prospective employees can be costly to the company and there is no guarantee that they will be long term employees of the company. With the company's plans for expansion I would recommend overstaffing. This will allow the company to stock pile talent for future
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.
Even though they may have a good price for the quality and quantity the monies is not helping our economy grow. Once again we are sending money out helping other countries grow while we as a whole are here in the U.S. struggling. I can understand the need to buy steal, iron or any other manufactory goods cheaper if they can be found on foreign land, even though it make take away plenty of money. However, the use of these materials may be used to build new stuff that will help the grow economy and cause more jobs. I believe with using the foreign countries we as the United States need to make sure the steel, manufacture goods and anything else is of good material and we will not put out more money than needed because “we” decided to trust them.
“Discuss the extent to which multinational corporations are to blame for the problems associated with globalisation” (30 marks) Globalisation is the closer integration of countries due to a reduction of costs of transportation, communication and goods, services, money, capital, people and knowledge flowing more evenly. Globalisation has resulted in the formation and growth of large multinational corporations. Multinational corporations are companies that produce goods or services in two or more countries. One problem with globalisation is that when multinational corporations outsource a factory to an LEDC they are sometimes accused of exploiting workers. An example of this is Nike in Vietnam, in 2005 they were accused of running sweatshops and massively underpaying their workers, they were also accused of using children to also work in the factories.
3. People often feel that tariffs, quotas, and other import restrictions will save jobs and promote a higher level of employment. But trade restrictions that reduce the volume of imports will also reduce exports. Question 4: What do researchers have to say about the relationship between firm’s productivity and exposure to global competition? Answer: Question No.5: When is international trade an opportunity for workers?
International Trade Simulation Darlene Traci Kepner XECO/212 June 17, 2012 Jim Vernon International Trade Simulation I am advising International trade recommendations for the President of Rodamia. The advantages of international trade and investments imports will create a wider variety of products which will give them a choice in price and quality. Domestic producers can expand and sell their products to other countries creating jobs, capital, and new investments, increasing the economy. When trading you have to look at the opportunity of cost production this is what defines the comparative advantage in which a country can produce a particular good or service at a lower marginal price, compared to another country; basically a choice
Export-led growth is an economic strategy used by some developing countries. This strategy seeks to find a niche in the world economy for a certain type of export. Industries producing this export may receive governmental subsidies and better access to the local markets. By implementing this strategy, countries hope to gain enough hard currency to import commodities manufactured more cheaply somewhere else. Before exploring international opportunities, Megahertz was in mature markets where there was plenty of competition.
A country can be a capital (or labor)-abundant nations and labor (or capital)-scarce nations which consider their comparative advantage in technologies, input productivity, and wages of labor. Free trade can bring a lot of advantage to us; however, it does not apply in real world. Tariff and non-tariff are the tools that use to trade protection or prevent the economy from undergoing adjustment during economic stagnation. Although tariff and other restriction can concede the economic losses and using resource with less efficiency, but protectionism argue that non-economic benefit such as a national security can more than offset those economic losses. Normally trade protection is use to secure domestic industry and labor union’s economy welfare.