...intellectual well, the Carter Administration acted on the assumption that a freer market would be better able to meet consumer demands, than a government bureaucracy. The federal role is now limited to safety regulation carried out by the Federal Aviation Administration. (FAA) Before deregulation, innovation and change by the airline industry was smothered. It took years for airlines to petition and the CAB to approve new routes. Rates were strictly controlled. It was virtually impossible for new airlines to enter the market. Since deregulation airlines are cheaper to fly, safer, while at the same time the number of passenger miles has dramatically increased. A few facts are illuminating. Price Reductions The average fare per passenger mile is about 9% lower since deregulation. Crandall and Ellig [1] report savings of $19.4 billion per year for consumers. Contrary to conventional wisdom, the Government Accounting Office (GAO) [2] reports that, ``The average fare per passenger mile, adjusted for inflation, has fallen since deregulation about as much at airports serving small and medium-sized communities as it has at airports serving large communities.'' The theoretical possibility that deregulation would be a boon to major markets at the expense of smaller communities has proven ill founded. Improved Service Quantity Reductions in fares spurred middle class families, previously priced out of the air flight market, to fly. In 1997 airlines flew 5.7 billion miles compared to 2...
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...Deregulation is when there is a decrease in the barriers of entry to certain industries. This is done by cutting red tape i.e. reducing the amount of bureaucratic processes. This will enable more firms to enter and compete in that specific industry. A reduction in red tape and government intervention will also lead in increase productivity as they do not have to worry too much about the restrictions by the government. In addition, the government can also remove regulations such as health and safety regulations, environmental regulations, and employment protection. More companies will be able to start up in the industry under consideration and this will increase competitiveness. When there is an increase in competitiveness, efficiency will be increased, quality will be increase, price will be decreased, and possibly there will be technological improvements as well. For example, the aviation industry in Europe has gone through a process of deregulation and this has led to the proliferation of many private airlines, including budget airlines (such as Easyjet, Ryanair, Monarch, BMI, Thomas Cook, FlyTui). This has increased the level of competitiveness in this industry and thus, reducing the cost (or improving the services) for consumers. Evaluation 1 There is an increase in the external cost. For example, as there are so many different airlines, people are flying more often, more planes are using the airspace, and this has increased the amount of pollution caused by...
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...A good deal of the responsibility for the crisis should also be placed on regulatory failure. Consumers were not adequately protected. There was an epidemic of deceptive lending. A lot of victims were elderly. Not all mortgages were fraudulent, of course,. Many people were looking to make a quick profit with little money down. Nonetheless, specialty lenders such as IndyMac Bank of Pasadena (California) set out to make bad loans. Mortgage brokers and loan officers, compensated on sales volume, sold so-called liar or "no income, no job or assets" (NINJA) adjustable-rate loans with false or incomplete documentation. What is evident is that many banks gutted lending standards. Internal credit controls were weakened. Because risky loans command higher interest rates, the business model promised profits in the early years. It was guaranteed to end in disaster. In that sense, it was calculated dishonesty[22] . It is most appropriate therefore that attention is shifting from financial rescue to financial reform, from the short term to the long term. "Management is doing things right; leadership is doing the right things," said Peter Drucker. However, reform requires courage and diplomacy as well as careful thought. Bashing Wall Street is easier than trying to reorganize it. There is a risk that nothing substantive will be done. Doing nothing would be a disgrace since it generates the conditions for another world-wide financial meltdown[28] . No matter what they say in public, chances...
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...Midterm 2 Case 3.1 Q1 Government’s decision to deregulate the once highly regulated industry, Enron no longer need to charge regualted price for its gas to customers. The force of supply and demand dictated the price, therefore Enron has higher risk of material misstatement compare to before. The deregulation helped Enron expanded into natural gas trading and financing. And for the first time Enron was allowed to use mark to market accounting for its nature gas trading business. Enron expanded beyond its natural gas business into other markets such as electricity and commodity markets. And it also undertook international projects outside the United States. Such aggressive expansion could elevate the risk of material misstatement. Case 3.2 Q2 The existence of related parties presents additional risks to an auditor because an auditor has to obtain an understanding of management responsibility not just the entity itself by also the related party, the purpose of the related party and the relationship of each related party to the whole entity. It’s more area for an auditor to cover, which means greater audit risk. I think auditor should pay special attention to related party transactions because related parties are under the same management and it is prone to fraud and misstatement. For example one of ALO primary activity was to buy BFO’s overvalue investment so BFA could avoid recording losses. If ALO were an independent company, such transactions would not occur. ...
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...Has banking deregulation contributed to the current economic crisis and if so how? Can advertising (or) marketing (or) public relations help restore trust in the banks? Most of the world has been affected by what has been called the global recession. Banking deregulation is undeniably the main cause of the financial crisis. This essay is going to demonstrate why this is by covering key events, which have lead to the crisis, and highlighting some possible marketing solutions to the trust issue that has resulted from it. The Great Depression in the 1930s provoked the US government to introduce new regulations in order to reform banks and ensure that there would never be another crisis of its type again. These reforms came under the name of the banking act of 1933, commonly referred to as the Glass-Steagle act. Crucially most of the new laws meant that retail and investment banks were to be kept separate and investments could not be made if a return was unlikely. However, over 50 years later these laws became more relaxed as the banks were always pushing to be privatized, as they knew they would be able to make more money (Robert Weissman, 2009). It was then believed that the financial world had changed so much since the Great Depression that the regulatory rules were outdated and that the banks would be able to manage themselves, the decision was also influenced by $300 million of lobbying (PBS, 2003). The Glass-Steagle act was revoked in 1999 by president Clinton, this removed...
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...The Role of Ethics The concept of social responsibility or corporate social responsibility (CSR) is not new within the corporate world but has garnered much press and public awareness in recent years due to a number of firms overlooking ethical behaviors as actions that should be placed at the core. Instead some firms have seen value in disregarding the role of ethics and seeking strategies based upon stakeholder greed for profit and larger market share. This lack of ethics and social responsibility only leads to a great downfall and loss to the community. For example a firm that is no longer doing business because it failed to include the role of ethics in strategic decision-making is Countrywide Financial. The firm simply disregarded the wellbeing of the economic environment and its threshold for creating new loans in order to keep the greed machine working long enough to benefit a few select stakeholders and their agendas (Lecker, 2011). The firm’s founder Angelo Mozilo’s behavior was dubious at best suggesting the firm functioned upon core cornerstone values like accountability and ownership of actions when really leadership was only seeking these actions as pretense to create false social responsibility (Lecker, 2011). Instead leadership was hiding a big scam, a secret that would create one of the worst financial recessions since the Great Depression. In short the role of ethics in this strategy was simply nonexistent. Aguinis and Glavas (2012) see the role of ethics as...
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...Ece Kıray SOC 578- Week 9 In the article of ‘From discipline to flexibilisation’, the transformation from fordist mode of regulation to postfordist disciplinary is explained. During this transformation the mode of social regulation in social, economic and political evolved until today by influence of globalisation. Fordism is a modern economic and social systems based on industrialized, standardized mass production and mass consumption. The concept is used in social, economic, and management theory about production, working conditions, consumption, and related phenomena, especially regarding the 20th century. Fordist accumulation mechanism did not influence only economic issues. It also regulated social, cultural, political issues in society through advertising, mass media and mass entertainment. Fordist mode of regulation comprised some disciplines to hold society together and proceed properly. It aimed to control individual from their family and community life to work place. Rational control expanded in almost all social areas such as household management, social work, psychotherapy, industrial psychology, etc. Furthermore, the social regulations were concentrated within a national frame. All social areas are controlled and bounded nationally. Thirdly, it was encouraged individuals to be more rational and autonomous for their own decisions through instutions such as family, school, psychology, workplace. In the post-89 era of postfordist globalisation, firstly, there...
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...Spain’s Telefonica 1. What changes in the political and economic environment allowed Telefonica to start expanding globally? The changes that were involved in the political and economic environment, which allowed Telefonica to start expanding globally, were privatization and deregulation. Spain’s Telefonica was established in the 1920s being a state-owned national telecommunications monopoly. Soon, the Spanish government privatized it, as well as deregulated the market for Spanish telecommunications. Due to these changes, Telefonica has a reduction in workforce, rapid adoption of new technology and began to focus on the increasing profits. Telefonica began to grow and expand globally. 2. What did Telefonica initially focus on Latin America? Why was it slower to expanding Europe, even though Spain is a member of the European Union? While changes were being made, Telefonica was looking for growth. Latin America also experienced a rapid change of deregulation and privatization across the region. Telefonica focused on Latin America because of similarities in the development of the market, language and culture. Latin American markets were also increasing the adoption rate and usage, including internet and mobile phones. Telefonica was slower to expand in Europe because there had been an implied agreement between the national telecommunications companies that they would not invade each other’s markets. By 2005, this agreement broke down when France Telecom entered Spain...
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...Department of Transportation Information Systems management department. After analyzing this passage and applying critical thinking, I am able to breakdown the eleven steps used in the book “Asking the Right Questions. To an average thinker, there is ample information within this document that could be used to agree with Ms. Glenn’s’ point of view. To a critical thinker, the information and reasoning must be analyzed as to whether it is considered valid enough to call a “reason”. This document is a perceptive issue because it discusses whether or not something should be opposed, and if this matter is considered right or wrong. Just because this document is a perceptive issue, it does not mean that there are not descriptive assumptions associated. The first step in deciding to agree with the author’s argument is to locate the issue and then find the conclusion. The conclusion in any article, essay or document, is the premise to any other information provided. All facts and reasoning should be based off the conclusion. In finding the conclusion a critical thinker must ask what is Ms. Barbara Glenn trying to prove and what is the main issue? She stated “We must oppose to this act now or we do a disservice to our members and will regret it later.” ( ) this statement helps me narrow down the main issue which leads me to the conclusion. Ms. Glenn is stating a demand which should draw attention to the reader. The issue of this document is if privatizing the Department of Transportation Information...
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...and groups that buy the goods and services. Competitors- Organizations that produce goods and services that are similar to a particular organizations goods and services. General Economic-Interest rates, inflation, unemployment, economic growth and other factors that affect the general health and well being of a nation or the regional economy of a nation. Technological-Outcomes of changes in the technology that managers use to design, produce or distribute goods and services. Demographic-Outcomes of changes in, or changing attitudes toward, the characteristics of a population such as age, gender, ethic origin, race, sexual orientation and social class. Political and legal-Outcomes of changes in regulations and laws. Such as the deregulation of industries, the privitization of organizations and increased emphasis on environmental protection. Global- Outcomes of changes in international relationships changes in nations economic, political and legal systems. Changes in technology such as falling-trade barriers, the growth of representative democracies and reliable and instantaneous communications. Sociocultural-Sociocultural environment is a collection of social factors affecting a business and includes social traditions, values and beliefs, level of literacy and education, the ethical standards and state of society. 2.) You manage a Tim Horton's restaurant and want to expand into the United States. How do the forces in your task and general environment pose an...
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...India should privatise railways for better efficiency India’s booming economy which is considered one of the fastest growing in the world demands better performance in transportation, especially when it comes to the case of gigantic sloth of Indian Railways (IR)! The behemoth public sector enterprise runs more than 18,000 trains daily and is comfortably one of the biggest rail networks in the world. However, it is yet to economise on the concept of modernisation and automation. In order to make the system more efficient, most of the nations across the world have privatised their mass transportation system. Undoubtedly, a better experience of travelling and transport can only be achieved by private participation and eventually it will also enhance the bottomline that has been looming at $48 billion as of 2009. IR currently suffers from dearth of resources. Sadly, the infrastructure and manufacturing capacity available to IR is never enough to meet the increasing demand of locomotives and wagons! Nor does India stand a chance to meet the international safety standards, efficiencies and finesse of the railway services of Europe and North America! The service efficiency post-privatisation in aviation sector should be replicated by IR for better management. The main chasm between the promise and the delivery is created by the monopoly of IR. Undeniably, competition in Europe has enhanced railway services there in abound. In India, it is astonishing to note that even manufacturing...
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...Essay Faculty of European Legal and Political studies Globalisation, global economy and politics Student: Andrej Gorše Mentor: Prof. Jasna Cvijanović April, 2015 About globalisation Globalisation refers to a variety of events that are rapidly changing the world. The machine that powers globalisation, however, is the global economy. At the heart of the global economy are the twin policies of privatisation and deregulation, which national governments have adopted worldwide since the 1980’s. Terms like free market economy, level playing field, monetarism, market economy, and neo-liberalism embrace processes such as privatisation and deregulation. Privatisation is about putting governments out of business. The economic theory behind privatisation is that, Business knows best. In this age of globalisation, our governments cheerfully tell us that they are too incompetent to manage our economy, so as a service to the public they will instead let the free market run it. Then our governments sell off publicly owned businesses and assets, which usually end up controlled by multinationals and financed by public shareholders. Competition within the marketplace rather than government management, we are told, will produce lower prices and better services for consumers. This is called a better standard of living, which implies that the public are better off for having a privatised economy so they should be happy about it. The strange part is that governments streamline...
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...TRANSPORTATION PLANNING ASSIGNMENT In many countries worldwide, more than 80% of freight is carried by road. Name: Leonora Oosthuizen Student number: 200840019 Name: Jaco Vermeulen Student number: 200833620 Name: Linda Gunther Student number: 200624338 TABLE OF CONENT PAGE 1. Why is such a greater proportion of freight carried by road? 3 2. Identify and discuss the advantages of moving freight by rail. 9 3. In respect of South Africa, how can Government influence freight modal split in favour of rail? 12 4. References 16 (i) Why is such a greater proportion of freight carried by road? It is a well-known fact that ‘without trucks, South Africa stops!’ Trucks are the only way to reach most factories, stores, restaurants and homes. They carry everything, from TVs and computers to clothes, medicine, children’s toys, food and construction materials – all along the production chain, to local stores and doorsteps. The current inefficiencies of the rail infrastructure in South Africa is the main cause why such a greater proportion of freight is carried by road. It is true that approximately 80% of all freight in South Africa is transported by road. The routes travelled include both proclaimed and un-proclaimed roads. The un-proclaimed roads make up an estimated 140,000 km that mostly serve rural areas. The un-proclaimed roads do not fall under the road inventory of Government and as such do not...
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...Economic Benefits of Transportation Improvements Shamonica Jordan Arkansas Highway Transportation Essay March 11, 2013 Economic Benefits of Transportation Improvements Today, the development of public transportation is extremely prospective in terms of the community development. The development of public transportation can improve the community environment, its socioeconomic development. Goodyear (2010) states the following public transportation has a great potentially, when the use of cars as the main means of transportation threatens to the environment. With that being stated it provides inefficiency with the potential positive effects of public transformations being underestimated. In this respect, it is possible to dwell upon economic, environmental and social benefits resulting from the development of public transportation. First, public transportation can have a positive impact on the development of the local community because it opens larger opportunities for transportation within the community as well as increases its transit potential. American Public Transportation Association (2013) states the following: opponents of public transportation may argue that public transportation needs substantial investments and, what is more important, it is the community or state funds that will be used to fund the development of public transportation. In this respect, opponents are right in regard to the substantial increase of public expenditures on...
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...Management At the University of Johannesburg April 2014 Table of Contents Introduction 3 Background 3 Research Statement 4 Body 5 Car/Driver Passenger 5 Mini Bus/Taxis 7 Walk 8 Bicycle 9 Train 12 Bus 16 Conclusion 19 Bibliography 20 1. Introduction Background Information The South African economy has seen phenomenal changes in the economic environment that it operates in and the Government has taken the initiative to align the country to conform to international standards to become a competitive and relevant role player in the global markets. In all economies, transportation infrastructure and modes is the vital key to the progress of any country. South Africa comprises of 9 different provinces of which Gauteng is the dominant generator of all South African GDP. Labor is the main source required for the creation of GDP and in that context transportation to and from their place of residence to the place of employment is critical. This research addresses to modal share trends that would likely to take place based on the statistical information extract from the (Vadi, 2013), within a defined period of 30 years from 2011. The topic of discussion revolves around the Figure 1 extract from the journal, (Vadi, 2013) by which a calculated predication of expected of modal share in the main modes in the next 30 years. TABLE 8: MAIN MODE OF TRAVEL TO WORK IN JOHANNESBURG Mode | 2002 Gauteng Household Travel Survey | 2011 Gauteng Quality of Life...
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