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Political Economy
Albert Hirschman has described two means of expressing dissatisfaction with a company in the political economy: exit and voice. Exit is when people stop buying or using a company's product or service en masse, while voice is when people express such dissatisfaction in writing or with the spoken word. This paper describes two real life situations where exit and voice were used to influence the political economy
One example of the use of "exit" in the real world as Hirschman describes it is the mass migration of customers from GoDaddy to other domain name registrars when it was discovered that the CEO of GoDaddy had been on safari and killed an elephant, and again when it was discovered that GoDaddy was supporting SOPA, the wildly unpopular internet privacy bill that was recently up before a vote in Congress (and was subsequently defeated). When the first incident came to light, thousands of GoDaddy customers were outraged and decided they could not support a company any longer whose leader would go out at kill endangered animals for sport. After all, the money they were paying to register their domains with GoDaddy was helping to pay the CEO's salary, which in turn was providing him with money to go on safari. Therefore, in an indirect way, registering domains with GoDaddy was akin to supporting and even paying...
While moving a domain name to another registrar costs money (usually around $7 to $8), the many customers who did this felt it was worth it, because they were making a political statement that would have an impact on GoDaddy's bottom line. The fee to move the domains went to the registrar to which the domains were being moved, not to GoDaddy, plus GoDaddy would be losing out on all of the renewal fees for the domains that were moved.
A similar migration happened around a year later, when GoDaddy supported the unpopular internet privacy bill, SOPA. The public outrage at this support was so great that other domain registrars offered financial incentives to disaffected GoDaddy customers to move their domains. The domain registrar NameCheap, for example, offered free transfers of domains from GoDaddy to NameCheap on the day SOPA was supposed to be voted on in Congress. Tens of thousands of GoDaddy users took advantage of this additional opportunity to express their dissatisfaction with GoDaddy's policies in the political world with a financial solution by moving their domain names out of GoDaddy, where the company could not benefit from the domains in a monetary way any longer. This migration…
Political Economy Subsidize the rebuilding of homes post-Katrina Because the majority of the victims of Hurricane Katrina were very poor, many did not have homeowner's insurance or other methods of restoring their houses to livable condition. The government should provide grants to residents to enable them to rebuild their homes, provided they lived in structurally sound enough areas that were deemed not to be at extreme risk should the levees break once
Political Economy of Global Environmental Problems: With the increasing globalization measures, there are various environmental problems that have continued to affect the entire world. These global environmental problems have affected almost every society in the world because of their impact on the earth's natural processes. Some of these environmental problems include climate change, acid rain, water pollution, depletion of the Ozone layer, destruction of rain forest, overpopulation, and sustainable development. One
Investment in the "global economy" remains a domestic matter: The fact is, the total amount of the world's capital formation that is generated from foreign direct investment (FDI) has been less than 10% for the last three years for which data are available (2003-2005). In other words, more than 90% of the fixed investment around the world is still domestic. And though merger waves can push the ratio higher, it
At the same time, foreign direct investment capital increased exponentially in different areas. These factors allowed the banking sector become well capitalized with over $1 billion in reserves. (Lewis) (Dosmukhamedov) According to Baumol (2007) the basic models that were used to help create these transformations were a combination of big firm and enterprise centric capitalism. This is when private businesses were allowed to develop, produce and deliver various products to
Political Economy of Climate Change International Conflict for Post-Kyoto: Which countries will benefit and lose national interests from the regulation of CO2? Over the last several years, the issue of CO2 emissions has been increasingly brought to the forefront. This is because a number of studies are continuing to show how the release of these gases from cars, factories, refineries, power plants and homes are contributing to global warming. To prevent this
If good jobs are outsourced as a result of those same agreements and consumers are forced to take lower-paying jobs, there is no net benefit. Furthermore, when producers benefit, the trade deficit improves. The current trade deficit is a good example. Consumers have benefitted the most from the current trade agreements. Agreements that give China most favored nation status, for example, allow for Chinese goods to be imported at low