...Arguments for Free Trade among Nations as opposed to Arguments for Protectionism In economics, trade, both nationally and internationally is a subject that is highly debated. Trade affects every one in every nation, has a significant impact on a country’s standard of living and can be used to foster new ideas and products. There are currently two opposing policies of how to conduct trade, protectionism and free trade, also called laissez-faire. A county’s comparative advantage at producing certain products causes many debates over why one way of trade is better than another. Tariffs, embargo’s and quota’s that are put on trade are forms of protectionism, which is the restriction of trade between states/countries. Protectionism is preferred in some groups for a variety of reasons, one of the reasons is that, it is thought that protectionism can protect ‘infant’ or new companies and industires.1The idea behind this is that it helps protect domestic companies that are just starting from foreign competitors that could introduce products at a lower cost. Tariffs are then set up, to make the foreign goods artificially expensive allowing the new or ‘infant’ firm to set up until they are able to compete on equal footing.1 Another argument in favor of protectionism is that one country might be able to use it as a threat against another country to force a reduction or removal of their protection against its exports.3If the threat worked then that country using it as such would gain...
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...Content page pages Question one 1.1 identify all stakeholders 2 1.2 Unitarian perspective 3 1.3 Maxim of duties 1.4 clashes of rights 4 1.5 an alternative ethical approach Question two * introduction 5 * corporate social responsibility * definition of corporate social responsibility * Company profile * RBS social policy 6 * definition of social policy * corporate social responsibility activities in RBS * conclusion A case study-The financial crisis This case is examining the dispute between the government and the banking sector .it exposes the conflict between the need for tightly regulated banking sector and the need to keep the bonus driven structure. The UK Govt are planning to put forward a regulation reform that will force the banks to separate their retail banking from the rest of their businesses and above all the riskier investment operations and to increase the amount they have to keep in capital in the bank as a buffer against future shocks. However not all stakeholders agree with the UK...
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...Personal Philosophy of Leaders Student's Name Institution Personal Philosophy of Leaders The role of a leader, being a President, an entrepreneur, parents or teachers, is crucial for success of any tasks. The task can be as big as finding a solution for a global catastrophe such as an earthquake, or as small as solving a dispute between two people. It is the role of the leader to organize people into groups, and according to their skills to make sure they fully participate in problem-solving. They ensure peoples acknowledge the problem and work toward finding the solution. Consequently, everyone in this world requires leadership qualities at one point in their lives. Thus, personal leadership philosophy is an important tool that defines peoples’ value, behaviors and what they can do. Articulating personal leadership philosophy helps in telling others what they expect from a person. In this essay, I will develop and articulate my personal leadership philosophy, and integrate it with human resource management theories to bring up a well argued stand point. While I was working on an industrial attachment at Deloitte Company, we contracted an oil and gas company, to create and execute an email migration strategy that involved about 1500 employees at their various branches. In the initial stages, the contracted company introduced Smith, who was the project leader. While, in the workshop, the contracted company explained to everyone that, as part of their culture...
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...Comments: Moderators Signature: Overall Mark (subject to ratification by the assessment board) Assessors Signature: Students Signature: (you must sign this declaring that it is all your own work and all sources of information have been referenced) TableofContents: 1. Explain why governments may advocate free trade whilst at the same time resort to protectionism to protect their domestic industries 3 2. Explain what types of barriers may be used and what impact they have on consumers and producers 9 Part1:Explain why governments may advocate free trade whilst at the same time resort to protectionism to protect their domestic industries. Introduction Free trade has been growing the last three decades due to market globalization, industrialization and growing number of developing countries. According to free trade, countries do not restrict imports and exports, and they establish open markets in own areas. Therefore, foreign investors and producers can enter the market freely and trade their goods and services without any trade barriers or taxes. Free trade is exercised between countries based on their agreements with each other. Free trade fosters economic development of developing and poor countries, as well as enable consumers to have access to variety of products and services at lower prices....
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...Foreign Trade and Exchange International trade exists due to things produced in a particular country that individuals, firms and governments in foreign countries want to purchase. Trade provides a greater selection of goods and services to choose from, often at lower costs than at home. In order to prosper and profit, countries want to use their resources such as labour, land and capital, as efficiently as possible. However, the quantity, quality and cost of resources can differ substantially between countries. Some have natural advantages, such as ample minerals or a climate suited to agriculture. Others have a well-trained workforce or highly developed infrastructure, advanced telecommunications systems and reliable electric utilities, which benefit the production and distribution of goods and services. Canada, as an example, depends heavily on trade to sustain incomes and living standards of Canadians and the prosperity of the nation. Other than trying to produce everything domestically, which would be inefficient, countries often concentrate on producing those things that they can produce best, and then trade for other goods and services. By doing so, both the country and the world become wealthier. Today, most industrialized nations could produce almost any product they chose. However, this does not make good economic sense. Much of the labour, land and capital that would have to be directed toward the production of a new item unfamiliar to that nation could be used more...
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...International Trade Definition International Trade is usually referred to the exchange of goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product (GDP). In 2010, the value of international trade achieved 19 trillion (current US) dollars, i.e. about 30% of the world GDP. That is, about one third of the produced goods and services are exchanged internationally around the world. This type of trade gives rise to a world economy, in which prices, or supply and demand, affect and are affected by global events. Political change in Asia, for example, could result in an increase in the cost of labor, thereby increasing the manufacturing costs for an American sneaker company based in Malaysia, which would then result in an increase in the price that you have to pay to buy the tennis shoes at your local mall. A decrease in the cost of labor, on the other hand, would result in you having to pay less for your new shoes. Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries. Almost every kind of product can be found on the international market: food, clothes, spare parts, oil, jewelry, wine, stocks, currencies and water. Services are also traded: tourism, banking, consulting and transportation. A product that is sold to the global market is an export, and a product that is bought from the global market is an import. Imports...
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...uncertain situation as they focus to defend their own domestic products all whilst maintaining a steady external trade. A continuing worldwide economic power house, Mercosur continues to struggle with certain facets of trade and political structure. Background South America throughout past decades has seen bloodshed and political instability, and despite much improvement there is still reoccurring corruption to date. Although the Pablo Escobar reign in Colombia, Noriega’s rule in Panama, and Castro’s hold on Cuba are no longer relevant, there still remains similar political instability today. Mercosur directly translated is Mercado Comun del Sur, or The Southern Common Market, and is a trade bloc for six of South America’s member nations (See Appendix A for current member countries) where they enjoy free trade, very similar to that of the North American Free Trade Agreement, where the goal is full South American economic integration. Enacted in 1991 under the Treaty of Ascuncion, Mercosur was created around the time of NAFTA, and other world trade blocs where they sought to fill the grey areas of GATT , General Agreement on Tariffs and Trade, that over looked regional, political, and cultural needs for its members (Kionsky, 2012). Further issues with non-transparent trades and non-uniformity in investments through GATT allowed for investors to make under the table trades where no tariffs...
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...Steven Wallace Final Research Paper on General Agreement on Tariffs and Trade (GATT) Int 610 Professor S. Dalpour Abstract The history of global trade shows that free, fair, and open trade is not necessarily the norm. If allowed, larger nations would monopolize trade to their advantage and destroy open competition. The purpose of this paper is to review the history of trade to find out the reasoning behind establish a General Agreement on Tariffs and Trade (GATT). To meet this goal, this student will quickly review world history concerning trade, the introduction of GATT, its successes and weaknesses, and the emergence of the World Trade Organization (WTO) as a successor to GATT. From this literary review, I will cite three current examples – within the last decade – on how recent tariffs and trade barriers still affect the United States of America: * 2002 - US Steel tariff * 2007 - Paper tariff on Chinese Paper * 2009 - Violation of North American Free Trade Agreement with Mexico and its effect on US trade Finally, I will give me opinion on whether or not I believe the WTO/GATT is still relevant for 2012 and beyond. Why Was There A Need For A General Agreement on Trade and Tariffs? The history of trade – and protectionism of the trade of goods – is record all the way back to the Roman Empire. Trade at that time was characterized by Roman control over roads and on ships throughout the Mediterranean region. If you wanted to move...
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...Politici comerciale Tipuri de politici comerciale Politică de liber schimb (liberalii) Protecţionism moderat şi compatibil conduitei comerciale multilaterale Protecţionism derogatoriu Protecţionism agresiv (naţionaliştii) Politică comercială discriminatorie Politici comerciale punitive Politică comercială strategică Politici comerciale autarhice Liberul schimb Pune accentul pe câştigurile obţinute ca urmare a specializării internaţionale Reprezintă mai degrabă un deziderat decât o stare de fapt A fost promovat de ţările ce au cunoscut primele, procesul de industrializare, fiind în avantajul lor comerţul liber în condiţiile în care dispuneau de o puternică forţă concurenţială Este o politică comercială interesantă numai dacă: – Există o reciprocitate a pieţelor – Este susţinut de o specializare determinată de condiţii obiective de producţie – Nu are mare importanţă independenţa economică şi dependenţa tehnologică Continuare Se dovedeşte inconsecvenţă în explicaţii; Se cultivă dihotomia: Adepţii liberului schimb sunt: realişti, dinamici, inteligenţi, învingători; Opozanţii liberului schimb: învinşi, demodaţi, ancoraţi în trecut • Acreditează aserţiunea “ceea ce nu mă omoară, mă face mai puternic; • Se bazează pe prea multe fundamente non-economice. • False argumente pentru comerțul liber: ► Comerțul liber aduce întotdeunea beneficii tuturor țărilor ► Infant industries nu renunță niciodată la protecția lor tarifară Continuare 10 limite ale teoriei...
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...Environment Factors of production: Resources used to produce goods and services 1) Land (natural resources) 2) Labor (workers) 3) Capital (buildings, equipment) 4) Entrepreneurship 5) Knowledge/Information World Economic Systems 1) Communism: All factors owned by all people * Big government * No competition * Karl Marx 2) Socialism: Some factors owned by all people * More equal allocation of resources * Government/central planning for basic goods/services * Most basic industries owned by the government 3) Capitalism: Factors are privately held and used to make profit * Promotes competition and freedom. * Driven by self-interest, rewards innovation * Adam Smith: father of free trade and capitalism Market Economy A) Supply and Demand B) Levels of Competition * Pure: Indistinguishable products, infinite sellers, i.e. Retail gas * Monopolistic: Similar products, many sellers, i.e. Candy, Athletic Shoes, Apparel * Oligopolies: Market is dominated by a few sellers, i.e. Soft drinks, Airplanes * Monopolies: One firm owns majority of market, i.e. Electricity, Gas, Water Economic Indicators (indicate health and trend of an economy) 1) GDP: Measures the sum of all goods and services produced in a country in a year 2) Unemployment rate: Measures percentage of population 16 and over looking for work but cannot find it. Three types of unemployment * Frictional: in between jobs, best type...
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...Introduction Off-shoring and outsourcing have become especially prevalent in recent years due to the shift in foreign labour markets becoming more competitive, and even favourable in some sectors. It should be noted that domestic examples of outsourcing do not shift the labour market because within the country itself, there are no structural changes. As a result, this paper will focus on outlining the various off-shoring and outsourcing implications and effects on international labour markets. Outsourcing vs. Off-shoring Companies have been able to implement off-shoring and outsourcing because of the phenomenon of lower transportation costs and instant communication across barriers of the world. Outsourcing and off-shoring are often grouped together and defined similarly, however they can be understood and interpreted in many ways. Outsourcing is a division of labour by contracting foreign third-parties abroad. In comparison, off-shoring is a more extreme form of outsourcing. It instead relocates key production sectors abroad, but not core innovative activities. Companies will often setup their own facilities which results in a decrease in foreign unemployment. Specific examples related to off-shoring and outsourcing will be discussed throughout the paper. In a wider spectrum, firms use off-shoring and outsourcing to remain competitive with the ongoing globalization that is present. Both countries involved are able to raise their nation’s GDP by shifting labour...
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...against the Euro. 2)a) Examine the effect of the Common Agricultural Policy on the world trade in agricultural goods. b) Evaluate the implications of a significant reduction in barriers to the trade and services for the global economy. 3)a) In 2002 the unemployment rates in Spain, France and Italy were significantly higher than in the UK. Examine the factors which might explain why the UK's unemployment rate was lower in these countries. b) To what extent might the pursuit of full employment conflict with other macroeconomic objectives? ------------------------------------------------- Exemplar: 1)a) 'The competitiveness of the Uk's manufacturing sector has declined in recent years'. Discuss the factors which may have affected the international competitiveness of UK goods. b) Evaluate the methods by which the UK's international competitiveness could be increased. 2)'Trading blocs are becoming increasingly important to the world economy' a) Discuss the benefits to a country belonging to a trading bloc. b) To what extent might the policies of the WTO conflict to those of trading blocs? ------------------------------------------------- June 02 1a) Examine the factors which have led to an increase in interdependence between countries in the world economy. b) Assess the impact on the global economy of the continued use by trading blocs of measures which restrict free trade. 2a) Examine the impact of falling oil prices on the economies of the European Union...
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...workforce, cheaper internet, and telephone communications add to the advantage. International trade cycle The commercial policy adapts a change as per the changing international trade cycle. The international trade shows stages like emerging exports with mass production followed by foreign competition and finally competition from imports. 1. Exports May be only manufacturer of new product Overseas customers learn of product, export market develops 2. Foreign production Export volume grows Production technology becomes stable Reduced costs for transportation Exports diminish 3. Foreign competition Foreign manufacturers gain experience Compete in export markets 4. Import competition Foreign producers obtain economies of scale Compete in quality and undersell domestic company in domestic market. Due to this dynamic business setting, the trade policy has to emerge and adapt it self to international demands and cause economic development. Comparative advantage theory of David Ricardo was the basis of free trade policies. Opponents of these policies argue that comparative advantage has lost its importance in a globally shrinking world. It is commonly believed Tariff and Non-tariff barriers, Miscellaneous Protection Techniques – Dumping, Subsidies, Cartels, and Commodity Agreements that free trade developed o the model of comparative advantage compels trade on less...
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...the future possibilities, and how will globalization have an effect upon your individual life? Outline “Nothing will be done anymore without the whole world meddling in it.” Paul Valéry The History of Globalization Positive Images of Globalization Imbalance, Diversity, and Conflict: The Problems of Globalization Global Tensions, Challenges, and Evolution for the Future Howard Bloom – The Deep History of Globalization – Reciprocity and Conquest Global Communication and Networking of Life Global Expansion of Humanity Emergence of Cities and Trade Routes Reciprocity and Conquest Robert Wright The Evolution of Win-Win Reciprocities in Human History The Expansion of Economic Interdependencies and Exchange The Expansion of Communication Networks Cumulative Evolution of Civilizations John Naisbitt Globalization and Individualism Increasing International Trade and Commerce Free Enterprise International Corporations Overturning National Economies Global Marketplace Global Tele-Communication World Wide Monitoring Global Citizens Global Media Intercultural Mixing Global Empowerment of Individual Peter Schwartz The Long...
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...(for 101 and 102 students taking the International Business option) that students and staff can access via the following URL: http://domino.lancs.ac.uk/econ/intbus.nsf. If you have queries regarding your Economics studies you can attend one of the drop in sessions in which a member of staff is available to help you with any aspect of the course with which you are struggling. Details of the times and locations of the drop in sessions will be posted on the Part 1 notice board. Course Aims: The aims of the course are to: • introduce students to a variety of international business issues, including international trade, international investment, international labour flows, and the market for foreign exchange. • provide students with an understanding of the relevant theory and concepts on these issues. • train students to analyse complex trade and investment issues in the global economy. Desired Outcome: By the end of the course, students should be able to: • understand the key conceptual and practical issues in international business and the role of multinational enterprises (MNEs), non-governmental organisations...
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