...A WORLD WITHOUT BORDERS Globalisation can be defined as the process in which the connectivity and interdependence between markets and businesses increases. It means that as economies become more interconnected, more opportunities arise. This process has been questioning the idea of national boundaries. Should there be boundaries between countries? Are they necessary? Boundaries have certain functions such as demarcating the territorial limits of a state’s jurisdiction and authority, the regulation of movement of people, capital, commodities and information between state territories and the assignation of an identity and citizenship. Are these functions being replaced by globalisation and business movements? The end of boundaries is not nigh. Firstly, one of the main functions of boundaries or national borders is, as said, the demarcation of the territorial limits of a state’s jurisdiction and authority. A state is sovereign by right. Borders are powerful symbols of the state’s power. It means that the government has the legitimate right to exercise coercion. When it comes to globalisation differences arise such as the meaning of sovereign to nations inside different territories. It is usually seen by national institutions with different points of view as to what sovereign means and depending of what constraints they might have. Boundaries cannot be erased to create a global community when there is no agreement about who is sovereign, where and how. Businesses would certainly...
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...Main problem The main problem in this case is the conflict between two different cultures underlined by two divergent management styles. A loose and people-oriented management style, applied by the supervisor Mike Wilson which proved to be efficient with the current situation of Consolidated Life company, versus a strict and task-oriented management style exercised by the senior vice president Jack Greely, a style assumed by the management to be the reference model that reflects the company’s culture and to be followed by all managers. Clash of cultures and management styles When Mike first got hired, the culture was “laissez faire” with flexible supervisory style, supervisors were free to manage their units as they saw fit and the management was tolerant to some limits. This culture permitted Mike Wisely to go far with his flexible management and create a loose and casual atmosphere in the company. Mike was more into a family type of culture with personal, face-to-face relationship with his team members. After he returned to the company, the management changed to be more tough and stricter with rules enforcement and task-oriented style. People have to do the work following the vice president rules and procedures with no margin of freedom or self-initiatives. Management, by oppression and hardship, governed the atmosphere in the company that some employees felt like working in a prison. Tension among employees, especially supervisors, was very high and people were...
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...Different perspectives and interpretations of history will always bring about contrasting views on how something should work. The government’s role within a capitalist economy is debated by Milton Friedman and Mark Martinez, who each have different ideas on the level of involvement the government should play within this type of economy. Friedman believes the government’s role in a capitalist economy should be limited to the point of only acting as an “umpire” to the market (1970). Martinez, on the other hand, maintains that the essence of a capitalist economy is derived from the government’s active participation with the market (2009). In Milton Friedman’s Capitalism and Freedom, he outlines that the government’s responsibility in a capitalist economy should be limited to protecting our freedom from both an international and domestic standpoint, to maintain law and order, to uphold private contracts, and to look after competitive markets (1970). The Marxist view, given by Howard Sherman in Reclaiming Evolution, says “a pure market capitalist system means that you can buy anything, so there would be no limits on political spending” (2000:94). Friedman’s view on the government’s role understands the need for some government regulation to avoid things like limitless spending, but would have any intervention contain a meaningful purpose and a swift conclusion. Under the classical liberalism perception any additional government involvement or regulations, other than what is outlined...
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...The United States has generally followed four tenets of economic policy in the twentieth century: laissez faire with minimal interventions, frequently, uncoordinated intervention in a mostly free market, systematic state guidance of private decision-making, and thorough state management and decision-making for the whole economy. In 1798, there was the first Congressional tariff act regarding imported foreign goods. In 1828, there was a protectionist tariff which was indicative of the US’s outlook and opinion on foreign trades and goods. This was directly in contradiction of the modern belief of free trade, as the US was relatively and consistently protectionist in the nineteenth century. It was also during this period of time that Henry Clay introduced the first thoroughgoing program for economic development, or the American System – “cherishing the foreign market, creating a home market… giving further scope to the consumption of the produce of the American industry… counteracting the protectionist policy of foreigners and withdraw the support…to their industry, and stimulate that of our own country”. Essentially, he was speaking about import substitution – this was very nationalist. This was opposed during and before the civil war. Additionally, in 1870s, there were significant federal aid given to railroads to stimulate their growth. Additionally, cities and states gave aid to banks, canals, and other infrastructure – this was influenced by the emphasis of a nationalist economy...
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...What does the term of “Invisible Hand“ stand for? What are the real consequences and premises of “Invisible Hand”? Introduction In Adam Smith’s conception, it is the ‘invisible hand’ of the free market that organizes the seemingly chaotic and self-interested activities of human beings into a beneficent and industrious social order. The conception tries to describe “Self – regulating nature of market” based on natural inclination of human-being. Unplanned, unintended actions coined with natural inclination of self-interest channels ambitions towards meeting social necessities. The main motto of the argument was that the market freely will lead to perfect equality. Actually, perfect competitive market fundamentalism was bulwarked with “Invisible hand”. It is very arguable and ambiguous that why Adam Smith called this sort of regulation “invisible hand”. Cognitively, it is tangible but in terms of understanding of special mechanism is very incomprehensible and too invisible to put forward as a market regulatory factor. Self-interest as a part of human nature took a role of supervisor and established “self-regulatory nature of marketplace”. Diving into deep comprehension of the term of invisible hand, we can see that the term implies decentralization of the wealth among inhabitants. We can face with the term of “invisible hand” in his previous work called “The Theory of Moral Sentiments” which envisages the natural propensity of human-being: “They are led by an invisible hand...
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...necessary for a successful outcome. 2. Democratic leaders allow the team to provide input before making a decision, although the degree of input can vary from leader to leader. This style is important when team agreement matters, but it can be difficult to manage when there are lots of different perspectives and ideas. 3. Laissez-faire leaders don't interfere; they allow people within the team to make many of the decisions. This works well when the team is highly capable, is motivated, and doesn't need close supervision. However, this behavior can arise because the leader is lazy or distracted; and this is where this style of leadership can fail. Retrieved from http://mindtools.com Goals and Evaluation While working on putting this team together it was important for me to keep the organization’s goals in mind. There is an urgency because our company is trying to tap into a new market. There’s a feeling within our company that we’ve been missing out and it’s our time to see if we can have some gains of our own in a new area for our business. To start this process I thought about my team members and their personalities. As a manager with a laissez faire approach, I called on my strengths to help with placing people. For me, my attention to detail along with being in sync with the emotional climate of my team is what helped. Also, I’m not afraid to delegate and empower my team members to make decisions, so I considered...
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...The article “High Food Prices Cause for Concern” by Martin Khor discussed about the issue of food prices which hits the peak level in the world. This article is related to the one of the ten economics a principle which is the seventh principle: Governments Can Sometimes Improve Market Outcomes. According to Mankiw (2009), the purpose of government to interfere the market is to promote efficiency or to promote equality. The market is controlled by the invisible hand. Invisible hand is a term used by Adam Smith to describe the free market which the market is guided by the invisible hand regulating the economy without the government interferes. However, the invisible hand does not always able to regulate the economy. At the normal situation, the invisible hand will allocate the resources into their most efficient uses. When the resources failed to be allocated efficiently, the situation is called market failure. Market failure occurs when the resources in the market are unable to allocate efficiently. At this time, the government will interfere with the market to reallocate the resources through certain measures. On the other hand, the invisible hand does not always ensure that resources are allocated equally. Therefore the government needs to interfere by implementing taxation system. Based on the article, food prices are soaring high exceeding the previous peak level in mid of year 2008. According to the Food and Agriculture Organization, the food price index had increased up...
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...Imatron Systems, Inc. (ISI) is a private company who is contracted with the U.S. government to design a satellite camera to monitor environmental threats. The contract is extremely important for the company because it serves as a platform for future technology, and for meeting profit targets during 2000 and 2001. The Vice President of research and development at the Remote Imaging Division (RID) of Imatron Systems, Rick Levinger, formed the Satera team to create the camera. The Satera team consists of seven “highly intelligent and educated” engineers. Heading the team is Gary Pinto. The team is in danger of missing the target deadlines set forth in the contract due to conflict between two of the lead mechanical engineers, Ira Lovas and David Bennett, who are responsible for designing the carrying device for the camera. Missing contracted deadlines results in reductions in payments. The Satera team’s lack of productivity is the result of a personality and cognitive styles clash among two Mr. Lovas and Mr. Bennett. Lovas is described as competent and creative by Pinto. He is methodical, detail oriented and uses already proven methods when solving a problem. Bennett is an innovator. He approaches problems from several different angles at once, and wants to solve problems in ways that have never been tried before. Both have the ability to see solutions where nobody else could. During meetings, Lovas and Bennet have intellectual debates that are increasingly regular...
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...The Four Factors of Production in Economics 1. Land * Land refers to the natural resources that are available and used in the production of goods. For example, a heavy mining industry could not exist without the natural deposits of valuable minerals in the ground, while a thriving farming community would have a hard time surviving with poor soil and no rainfall. Labor * Labor refers to the human inputs of work to produce the goods and services. For example, the training required for employees to successfully operate machines to produce cars would be considered as part of labor. In addition, the mental capacity to perform tasks and invent new products is also part of labor. The only human element not included in labor is entrepreneurship. Capital * Capital refers to the tools and machines that are required for the production of the product. For example, when making cars, the capital would include the factory and all the machinery in the factory used in making the car. On a farm, the capital would include the tractors, harvesters and other equipment used to grow crops or raise livestock. What Are the Principles of Economics? Economics is fundamentally the study of how people react to and allocate finite resources. More often than not, the principles of economics are driven by people's tendency to act in their own self interest, i.e., greed. However, the desire to maximize one's own benefit generally has the broader benefit of allocating resources across society in...
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...Throughout history there have been leaders and famous people for that matter that have been looked at as leaders. A leader is someone who people choose to follow and influences others to do things that they may not otherwise do. Ideally one would expect the effective leader to be a person of integrity. But is that really always the case? There are five different leadership styles that would apply to leaders of yesterday as well as today. The first theory would be the trait theory. An example of a leader that falls into the trait theory would be motivational speaker Tony Robins, because he has charisma. The attributes that give off his persona of charisma is his magnetic personality, paired with superb communication skills. His approach to this is pulling people in with his smile. When he takes the floor, people listen. He proves to have the magnetic personality as he speaks people attract to him as if they were metal being drawn to the magnet. Of the five leadership styles, the trait theory is more salient for Tony Robbins because with the charisma the he exudes it does not matter. For example the type of behavior he presents good or bad for that matter gets over looked once he begins to speak. He takes on the Autocratic approach as what he “preaches” is the belief that he expects his listeners to take on. That is the right way and the only way it should be done. Ronald Reagan “the people’s president,” would be an example of the contingency theory. He would be categorized...
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...Discuss some important aspects of the free enterprise system or capitalism. Three essential principles of capitalism are: production is organized for the market, the means of production are privately owned, and investment is privately controlled, and the people who use those means of production to produce goods and services, that is workers, are hired on a labor market to work in firms as employees. Capitalism is a form of market economy in which production and investment are privately controlled, and the work of production is performed by employees, hired from free labor markets. Capitalism is essential to the function of society due to the opportunities that it creates and the augmentation of an individual’s vitality. Individuals can decide which economic decisions they deem most appropriate. Many aspects of capitalism ring a bell of liberty, the positive aspects of freedom and choice, and the hope that is prevalent and the everlasting lure of riches keep the engine going. For example, you may be employed right for $9.25 an hour, but tomorrow you could become a sales person and control your income by your commissions. This mere fact, a potential exits, is inspiring and motivational and keeps the free agents content. A Scottish economist Adam Smith, laid out the foundation for free enterprise in The Wealth of Nations (1776). Smith maintained that a government should not interfere with a nation's economy but instead should let individuals act as "free agents" who pursue their...
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...STUDY QUESTIONS “ADAM SMITH’S INVISIBLE HAND ARGUMENT> JOHN D. BISHOP 1. Briefly state the “invisible hand” theory in your own words. The “invisible hand” is a term used by Adam Smith to describe the natural force that guides free market capitalism through competition for scarce resources. The theory of the Invisible Hand states that if each consumer is allowed to choose freely what to buy and each producer is allowed to choose freely what to sell and how to produce it, the market will settle on a product distribution and prices that are beneficial to all the individual members of a community. 2. Two advocates of the “invisible hand” theory who are quoted in the article encourage a “deliberate amorality” in the executive suite. How do they justify this? They contend that this results in systemic morality due to the action of the invisible hand. 3. What does Milton Friedman see as the social responsibility of corporations? Milton Friedman is quoted saying, "There is one and only one social responsibility of business -- to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud." Friedman argues that corporations have no social responsibility, only a responsibility toward their customers and shareholders to maximize profits. 4. According to Bishop, what does Adam Smith say about laws or regulations proposed by...
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...although no two companies are alike and it may seem they would work the same way, they are managed differently. To understand that there are many forms of leadership, this paper will consider a few different types and explain why one is better than the others. The Coaching Style Of Leadership A great coach is definitely a leader who also possess a unique gifts ability to teach and train. The Exchange Style Sometimes known as leader-member exchange, the style involves the exchange of favors between two individuals. An exchange can be hierarchical between the boss and subordinate or occur between two individuals of equal status. For this leadership style to work, you need to know how to develop, maintain and repair relationships. The Laissez Faire Leadership Style The style is largely a "hands off" view that tends to minimize the amount of direction and face time required. Works well if you have highly trained, highly motivated direct reports. Strategic Leadership This is practiced by the military services such as the US Army, US Air Force, and many large corporations. It stresses the competitive nature of running an organization and being able to out fox and out wit the competition. The Participative Leadership Style It's hard to order and demand someone to be creative, perform as a team, solve complex problems, improve quality, and provide outstanding customer service. The participative style presents a happy medium between over controlling (micromanaging) and not being...
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...The Dress Analysis (New introduction) The short story “The Dress” is about one day in a family with issues. We hear about how it goes if you don’t talk about the issues and try to solve them. Because if there are roblems in a family, you shouldn’t just give up because it’s a bit hard. A family is a place where you should feel loved, wanted and respected. The short story by Julia Darling called “The Dress” written in 2006. The story is about the two sisters Rachel and Flora. Rachel has bought a light green dress to wear at the dinner they are going to with their mother to celebrate her fortieth birthday. But when Flora found the dress lying in the kitchen, she takes it because she felt that it was meant for her. She destroys the dress, and it creates a tension between the two girl at the dinner. At home the tension develops when Flora admits taken, destroying and burying the dress. The fight leads to Rachel going to their father’s house and Flora leaving, which leaves the mother alone. We hear about four characters in the short story Rachel, Flora, the mother and Floras friend Alberto. We don’t hear who’s the elder and who’s the younger sister. The mother is a forty year old bereavement counsellor. She’s thinking about quitting her job, and start making jewellery instead. She seems indecisive, she doesn’t do what she wants to do - throughout the story we hear about what she wants, but she doesn’t do anything to get it. She also seems rather childish judged...
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...Implications: A clear understanding of a corporation’s responsibility will avoid the creeping of any collectivist principle into a capitalist society. Businesses will not be forced to take on any corporate responsibility if their owners do not wish to do so. Concept: The concept is a need for a well-functioning free-enterprise society with no obligation to fulfill social responsibilities unless the owners feel that it is necessary for their business. Point of view: Point of view is that the negative impact of the expectations around corporate social responsibilities on laissez faire capitalism. Solution: The business of business is business. The responsibility of the corporation is to make the maximum possible profit, playing by the rules. THE FRIEDMAN DOCTRINE –PROBABLY TOO SIMPLIFIED “Business of business is Business” – According to Milton Friedman, this is the fundamental principal of the laissez-faire capitalism. During a period when the nation was struggling to draw the...
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