Soon entrepreneurs applied Whitneys ideas to other industries. The significance of mass production was that it increased the speed of being able to produce a product by a lot. Mass production made the prices of once expensive things like cars plummet as the speed which they could be produced rised. It provided new jobs to people who were unskilled in craftsmanship. Socialism: Socialism is an economic concept that advocates public ownership of all resources.
Businesses also suffer when massive layoffs occur. When spending by households decreases, incomes decrease for the businesses. Governments are not immune from the effects of massive layoffs of employees either. When households spend less, and businesses are selling less, there is less sales tax to be collected by the government. Also, when employees are laid off there is less income tax to be collected and to make things even worse, former employees can collect unemployment benefits from the government.
Industrialization was creating even more towns, increasing this problem. So in order to feed his industrial workforce Stalin needed to revolutionize agriculture. He achieved this through forced grain seizure and the prosecution of kulaks and forcing peasants to work together in ‘collectives’. By doing so he was able to secure extra grain to feed the growing urban population of workers and sell the surplus to gain foreign currencies for purchasing foreign machineries. Though collectivisation may have had short term boosts to the economy but the effects of collectivisation were disastrous.
2. Competitive strategy Digging into CI’s case, it seems that the firm tries to use cost leadership strategy, and they do their best to control the costs. CI’s impressive improvement strategies include increasing productivity, cost cutting, overhead control, improving technology and increasing prices. Whether these strategies are appropriate, however, should be carefully evaluated. 2.1 Productivity The competitive strategy of increasing productivity is mainly concentrated on enhancement of direct labor productivity.
The quantity of those involved in buying and selling increased exponentially and in response, the development of modern day concepts such as businessmen and entrepreneurs arose. This coupled with greater internal trade and the encouragement for state legislatures to involve paper money in the expanding economy, resulted in an aspired consumer revolution that deteriorated
Building an organization by grouping jobs into work units and allocating resources C. Identifying business functions and mobilizing leaders D. Being flexible and responsive towards customer needs and the competitive environment Correct! The correct answer is: D. A dynamic organization is, “flexible and adaptive, particularly in response to competitive threats and customer needs” (Bateman & Snell, 2011, p.16). 15. For today’s managers, the organizing function requires a higher focus on which of the following? A.
Chapter 39: The Stalemated Seventies A. Describe the economic situation going into the 1970s- The baby boom generation would be making less money than their parents but as the economic growth crested, the American spirit gave an unaccustomed sense of limits. I. Sources of Stagnation A. List a few reasons economists speculate could be the cause of the slump in productivity increasing presence in the work force of women and teens (had lower skills, less likely to take full time jobs),declining investment in new machinery, general shift of American economy from manufacturing to services B.
During boom business gets confidence because more people are demanding for their products and this rise in production. They might do it by renting a factory or buying new equipments. More people are in
However, in addition to this investment made by employees, I find a much larger investment made by employers in the human capital of their employees. Several researchers have studied the sustained rapid labor productivity growth at Lowell during the 1830s and 1840s [Davis and Stettler, 1966, McGouldrick, 1968, Zevin, 1975, David, 1975, Nickless, 1979, Williamson, 1972]. David and several others find strong growth in the multi-factor productivity residual, which David attributes to learning-by-doing. However, this learning effect could arise from worker skills or instead, as Zevin [1975, p. 5] suggests, from managerial or “organizational” learning. Using data on individual workers, I find that individual experience, and the associated human and physical capital investments, explain almost all of the growth in labor productivity.
The number of products imported from other counties has increased over the years and exports have seriously decreased. So, it seems that the United States finds itself in a very similar situation as in the Great Depression of the 1930s. The government didn't learn from their mistakes made back then therefore the economic situation has returned. Instead they find themselves with an economy overloaded with product, financial inflation and deflation which has lead to serious workers unemployment. Therefore, as I stated before The Great Depression came about because of three main causes, in my opinion these three causes were not properly dealt with which has people believing that the United States has fallen into another depression similar to the one in the 1930s.