International Political Economy
After Capitalism by David Schweickart is a book targeting capitalism and promoting the advent of socialism in the economy today. Many say that the book might just be a small version of the book Against Capitalism that came out in 1996. It is easy to say that a socialist America might b a better one, but Schweickart thinks that the word keeps on being used over and over again merely to scare the American people. (Schweickart xvii)
In the book, the major target has been placed on capitalism and its negative impacts on the country. It has been stated that the capitalism has led to environmental degradation, unemployment, overwork, wars, hunger and poverty as well. Schweickart stated that the economic democracy is actually a community and worker oriented form of Market Socialism. According to him, the capitalistic outlook present in the economy today is not free from…… [Read More]
The European Union also has its own version for corporate social responsibility. (Landau, 85) Thus the U.S. polity was forced to adapt international opinions and legislate both for the external and internal aspects of its economy. Human rights, labor laws and a host of international issues like global warming and the use of chemicals were all reflected in amendments of the local laws while some of the issues like terrorism and nuclear proliferation have conversely changed the international conventions as per the dictates of the U.S. policies. International accounting practices which has undergone more transparency checks is one such result.
Earlier in the divided world, the international trade related to trade surplus, and the maximization of foreign exchange. International financial responsibility is a result of the changes that came about in the world in the later part of this century, and the impact of financial decisions both of…… [Read More]
International Political Economy
In recent years the presence of a global economy has become more apparent. Financial institutions throughout the world are now connected through a vast computerized network. As a result of this global economy issues associated with the international political economy has become an increasingly important issue. The purpose of this discussion is to explore the manner in which the three conceptions of the international political economy (Realism, Liberalism, Marxism) differ. The research will also focus on how the advocates of each assess the phenomenon of global integration. Finally the discussion will investigate the merits and the dangers of hegemonic stability in international trade? The discussion will begin with a description of international political economy.
International Political Economy
Political economy is defined as the "theory or study of the role of public policy in influencing the economic and social welfare of a political unit ("Political Economy")."
In a…… [Read More]
They are used to the existing state-based system of commercial regulation, and there are several reasons why they might wish to maintain it. The advantage of using this system is that the MNCs know the system well, and the system uses effective tools for managing and currently provides them with significant leverage. They have proved adept at using leverage: globalization has forced firms to raise efficiency and adopt cost-minimization strategies that both raise sustainability questions and arouse the ire of the NGO community. A growing number of MNCs acknowledge the need for sustainable production practices, but face considerable practical problems in implementing them." (Detomasi, 2006)
Multinational Corporations (MNCs) have been extended a large responsibility as well as authority as a matter of correction with regard to the responsibility and capacity these organizations hold to handle environmental issues and assist to combat the social problems inherently produced by neglecting environmental degradation.…… [Read More]
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 has never reached 20%.
The benefits that were supposed to accrue from the world being brought closer together under the careful and judicious management of a single hegemon and single hegemonic system have certainly not been guided to the many in those parts of the world that do not participate in the system as active members. Developing nations continue to suffer as the already industrialized take advantage of them, using their people as convenient supplies of labor; populations who, in…… [Read More]
Lindsey gives an example of how the current President ush had made the improvement of the nation's schools as one of his top priorities in office. An educated American workforce means a sound human infrastructure, which will help secure foreign investments. The third aspect Lindsey points out is that the U.S. must make sure it engages in free trade with other nations. If there is no free trade environment there is no incentive for foreigners to invest in the U.S. currency. Therefore reciprocity must be maintained between nations during trade.
In contrast to Lindsey's defense of the strong dollar policy, ergsten attempts to attack this policy head on before defending his own. In attacking this policy, he initially points out that a strong dollar policy was useful during times of economic progress. ut now that the economy has significantly slowed down, it is no longer necessary to maintain anti-inflationary measures…… [Read More]
It states that in order for this meeting to produce a successful outcome, America would have to play a leading role in making those difficult concessions. Towards the end of the article, a sense of optimism is displayed when it mentions about some of the minor breakthroughs that recently occurred, such as the narrow decrease in America's trade deficit in March 2005 and the May 4, 2005 agreement between America, the EU, India, Brazil, and Australia over the new calculations of tariffs. It is hoped that such small endeavors will lead to major breakthroughs in trade at the Hong Kong meeting.
The major concept that is emphasized throughout this article is the way the TO functions as an international government organization. Its characteristics are akin to those of IGO's. For example, TO members are only states and the purpose of this organization is to develop rules of trade between nations.…… [Read More]
Gelvin (2005) notes how many Islamic groups that developed in this part of the world did not have political aspirations at all but only wanted to provide service to their communities. Islamic political movements all seek to expand the reach of Islamic law and to impose Islamic values on society. Gelvin also stats that the "relationship between Islamism... And nationalism is a complex one" (Gelvin, 2005, p. 291) and cites Hamas as showing this, on the one hand emphasizing the Islamic way of life, while also taking a political stance on nationalism as part of its religious creed. The PLO is another such organization, though this one with a greater nationalist element than a religious one.
5. Much of the Muslim resurgence that has taken place since 1945 is attributable first to the increased interest given to the Middle East by the West and notably by the United States, to…… [Read More]
Marxist political economy looked more like critics on classical political economy proposed by liberalists, yet it didn't give any definite solution to the problem of political regulation of economics. Socialist theories of political economics which were derived from Marxist concept failed to effectively function on the territory of the certain state, and the economical situation in such countries as ex-USSR, Cuba, Vietnam and North Korea prove it perfectly.
Now it would be difficult to find the country were the concepts of political economy mentioned above would be clearly realized in daily practices. The processes of globalization, goods exchange, industrialization and development of social infrastructure within one country and within the world economic community in general, had proved that only integral model of economical development has the right to be applied in our realities. From this point different factors have to be taken into consideration and they are not limited only…… [Read More]
International Law and International Political Economy in South America
The modern world is characterized by considerable political, social, economic and environmental changes. These changes are attributable to various factors including globalization, increased urbanization, and climate changes. Every region across the globe will continually be affected by these changes. According to a publication by the Office of the Director of National Intelligence (n.d.), many societies worldwide will be unable to achieve complete success in initiatives to realize developmental goals of the past two years. In addition, its predicted that the world will continue experiencing continued instability and rising tensions. Tensions continue to rise between citizens due to concerns regarding what they can expect from their governments given the constant changes that characterize the modern world. One of the critical factors that will shape the future is international law and international political economy. This paper examines how international law and international political…… [Read More]
Great Depression and the end of orld ar II marked a major shift in economic ideas that transformed not only the international economic order, but domestic policies within most countries of the world as well. The shift of ideas occurred primarily in the United States, arguably one of the hardest hit nations by the depression. The shift was representative of a movement away from the very liberal economic policies of the nineteenth and early twentieth century towards collective economic cooperation between public and private sectors. The result was a "cushion" that served to prevent economic and social breakdown in society.
It has been argued that the catalyst behind the depression was the lack of governmental regulation of the stock market, and other important economic activities. In the early twentieth century, the markets of the world, especially those of the United States, were relatively free of regulation. Unlike today, there were…… [Read More]
International Political Economy and Globalization
1- Exercise your reasoning skills by using clear points and illustrations from Global Trade and Economy Industries, give two or more reasons which justify the definitions of Globalization. Use a reasonable meaning regardless of its rigidity and typical nature.
Globalization refers to the growing international dependency of worldwide nations and organizations as a result of cross-border trading of amenities, cultures, technological concepts as well as information. (Mingst and Arreguin 2011. 161)
Furthermore, the basic principle of globalization originates from the comparative advantage model. This model is of the notion that nations that are renowned globally to produce certain commodities are at an advantage of exporting those commodities to nations that are not capable of generating such goods. On the other hand, the less capable nation is also able to trade what it is best able to produce to the former nations. This results in trade…… [Read More]
Socialist states use a command and control management structure as a substitute for the profit motive. This structure is less efficient, so production levels cannot match those of capitalist states. Ultimately, the lack of productivity and the large number of distortions lead to economic collapse (Tesche, 1993).
Since the collapse of the Soviet Union, the pace and nature of economic reforms has differed greatly in the former Soviet states. These range from regions with a virtual continuation of communist dictatorship (Belarus, Transnistria) to full-scale embrace of the free market (Estonia in particular). Russia's economy has only opened somewhat, and only to small and medium sized enterprises (SMEs). For the most part, the major firms in the economy are controlled by powerful businessmen with close ties to government. Freedom of capital flows has improved slightly, but the Russian economy overall remains under significant government control. The economy has grown substantially since…… [Read More]
" (S. M. Lele, Sustainable Development" A Critical Review, p. 611)
The main objectives of the sustainable development are to: revive growth, change the quality of growth, satisfy the basic needs for jobs and subsidiary services, ensure a sustainable level of population, preserve the resources, reorient technology and control risk, consider both economy and environment in the decision making process, and reorient international economic relationships. (S. M. Lele, Sustainable Development" A Critical Review, p. 611)
Connections between the two
Harriss promotes the idea of disciplined economics and governance based on rules. Lele promotes the sustainable development, again a form of governance based on a strict set of rules. The idea at the basis of these two theories is practically the same: governance, economy and the entire human behavior should be based on a set of rules previously elaborated to protect the interests of the participants as well as the environment's.…… [Read More]
International Political Economy of East Asia
As growth of the economy is something most governments in most developing countries would like to have, the interplay between the politics and economics of such growth-oriented policies becomes all-important.
The East Asian region is one of the most diversified regions in the world where neighboring countries can be so different economically, politically, and culturally that it is impossible to draw any common factors that can be used to explain the patterns of their lives or livelihood. One thing is quite common; however, most of the countries in East Asia gained their independence after the Second World War, and started to develop their countries in their own separate ways.
Despite all these adverse effects and undesirable consequences, the Second
World War combined with the intrusion of Japanese military power into Southeast
Asia had helped shatter both the mystique and the institutions of Western Colonialism.…… [Read More]
The dependency interactions were sustained by the cooperation of ranks and elites in the periphery who benefited from their economic associations with the core states.
On the other hand, the problem of underdevelopment was basically diagnosed on the basis of weaknesses of domestic ranks in poor countries. While these diagnoses recognized the exploitative global interactions between rich and poor states, they were conducted on the basis that poor countries failed to play a historic role in overhauling conventional elites and practices as well as leading political and economic development.
While the concepts developed by dependency theories were adopted by several developing countries, they were condemned for being too deterministic through an overemphasis on the role of global forces on nations in the South. This criticism included the fact that dependency theories were efficient in explaining why countries didn't develop as compared to their explanations on how some nations really developed.…… [Read More]
International Lending and Financial Crisis
One of the major global financial crises is the financial crisis of 2007-2009. The financial recession that occurred between 2007 and 2009, encompasses the housing bubble that instigated the financial crisis, federal expenditure, and foreign exchange rates. Also, referred to as the 'Great recession', this global financial crisis had adverse impacts not only on the financial markets but also on the economies of nations across the globe, being the worst financial crisis in history. The financial crisis emanating from the U.S. affected other nations owing to financial globalization and led to discussions regarding restructuring of the international financial system (Ozkan, 2012). In particular, the global financial crisis originally started in and adversely impacted the financial sector of developed nations, especially in the United States, and subsequently had a detrimental impact of the real sector of affected nations as the financial institutions in the United States…… [Read More]
international relations: idealism vs. realism
The theories of international relations have been seen as a mechanism thru which practitioners in the area of international politics as well as scholars tried to explain the way in which international politics function and how the behavior of states and actors on the international scene can be anticipated.
The beginning of the 20th century was a period of deep consideration for international politics, given the First World War and its aftermath. The idealistic approach on international politics tried to explain the behavior states had after the end of the war and also define the period between the two conflagrations. The realist theory on the other hand appeared as a result of the Second World War and its aftermath and, although it took into account similar elements, the points made in reference to these elements were somewhat in contrast. There are several key issues that…… [Read More]
However, this is hardly enough to address further issues across the world economy, including poverty.
Despite the fact that trade has become significantly facilitated by the regulating authorities, it is also true that most member countries are developed countries, while developing countries receive very little in terms of policies to facilitate their international relationships within the trading regime. This has been the paradigm since the inception of the global trade regime. Powerful member countries as it were tended to control the regime.
Currently, the United States is at the most powerful relational position within the trade regime. As such, the country's voting power within the MF and World Bank remains significant, as does the fact of its privilege in the financial regime. The regime is structured in such a way that developed countries enjoy privileges that poorer countries do not. Because it can take advantage of the international strength of…… [Read More]
The new rebuilt and equipped factories were net superior to those of America or other victorious states.
Demographic factor more recent internal factor that tends to influence Japan's economy is of demographic nature. However still increasing, the population of Japan is increasing at a lower rate than that of a decade ago. Not only the reduced birth rate contributes to the demographic decrease, but also the more and more obvious market liberalization and individuals' migration towards better paid jobs in other countries.
This means that the country is left with less young workers and more retired people with no other income that their pension. In the times to come, the larger number of pensioners than that of the working population will turn out to be a bourdon upon the shoulders of Japan.
Also, another demographic factor of great importance is the recent migration from the country side to the city.…… [Read More]
An important contribution to the market ideology is that the authors recognized the existence of a relationship between employment and the market. This relationship was based on that the employment, the division of labor and the "human material progress had proceed in parallel with the growth of the market." Otherwise put, there existed a direct relationship between the market and the employment, with the market being the feature which set the tone. An increase of the market would generate an increase in employment and vice versa. However, an increase or decrease in employment would not affect the market as the relationship between the two is unilateral.
Engels, Moore and Jones believed that the future successful implementation of the communist policies would see no major use of the market; "in the society of the future, there would be no mediation through the market. Wealth would satisfy needs directly. It would be…… [Read More]
International Market Evaluation
Political and Legal Environment Comparison: Canada vs. Australia
Both Canada and Australia are reported to have a 'Country isk Tier (CT)' that reflects "A.M. Best's assessment of three categories of risk: Economic, Political and Financial System isk stated in the case of Canada and Australia to be CT-1 classification which is characterized by "very low levels of economic, political and financial system risk." (AMB Country isk eport, 2010) The economic risk in Canada is reported to be 'very low' and the political risk in Canada is also stated at very low since Canada is a "high income country with significant natural resources and an established legal system." (AMB Country isk eport, 2010) The economy of Canada is directly impacted by the U.S. financial system. The budget of Canada is reported to have moved "into deficit as the government has used fiscal policy to help stimulate the economy."…… [Read More]
The franchising operations have expanded significantly during the recent years namely because of the benefits and reduced risks they offer to both parties. A positive example in this sense is given by international chain McDonald's, which franchised several of their stores to countries across the globe. The McDonald's example however also reveals that franchising is not always suitable, and it is far from being the universally agreed method of successfully penetrating the foreign markets. To better understand, before entering the ussian market, the officials at McDonalds clearly analyzed the market features and felt the need to handle the operations by themselves, rather than become a franchisor. As a result of increased attention to details, the American corporation now holds next to 80% of the ussian fast food industry. Other American-based fast food chains have attempted to enter the market, but they did this through franchising, and the economic background in…… [Read More]
At the same time, this strategy undermined the ability of workers to gain collective power.
All these factors resulted in increased insecurity in terms of the job market and in terms of the relationship between employers and employees. Auer (2005: 6) addresses Kalleberg's point in this regard with an assertion that the common assumption is that the twin factors of globalization and technological advance would fundamentally change the employment relationship and its expectation of longevity.
Auer's view is somewhat less gloomy than that of Kalleberg in terms of the possibility of flexible, non-standard jobs not only supplementing the more standard, full-time variety, but also becoming standard themselves. In addition to providing greater employee satisfaction, standard, long-term jobs also influence the desire of employees to begin families, which in turn has a significant impact upon the economy. Individuals with greater certainty regarding the future of their income tend to be better…… [Read More]
In international policy, as in the course of daily human life, self-interested actors must carefully weigh competing and often equally valid choices, and make for themselves some compromise between opposed values. It seems that as often as one is able to solve a problem, one notices that the very solution causes problems of its own. An unmitigated good is difficult to find even in one person's individual life, and it is even harder (if not impossible) to discover a national plan of action which will prove beneficial for every citizen and for the world at large. It seems inevitable that any policy which creates significant benefits somewhere along the line must at another spot be creating significant detriments for at least some subsection of the community. (This is even true with crime control, which benefits most citizens and penalizes those whose selves or families depend on illegal…… [Read More]
S. inflation in check, even during economic boom times.
The debate about increasing protectionism in the U.S. boils down to a clash of cultural values. In the natural course of international trade, there will be those who suffer and those who benefit. International markets are amoral. Trade is conducted between nations with the intent of raising the standard of living for both, but this is on aggregate, not universally. As a result, jobs losses in some sectors, particularly those where the U.S. does not have comparative advantage, are inevitable. To enact protectionist measures to stem those job losses will have three negative impacts.
The first is retaliatory trade measures. Tariffs and other protectionist measures tend to go hand in hand. If a country protects its industries, nations that trade with that country will do the same. This is the classic Smoot-Hawley scenario. To protect American jobs during the…… [Read More]
mericans today think about the problems of getting the oil that is needed to run our economy through the rest of this century, they will no doubt find themselves thinking either about drilling for oil in laska - since this topic has been so much in the news over the past several months - or establishing peace in the Middle East so that oil may continue to flow from that region to the United States - a topic that has been in the news even more since the September 11 terrorist attacks.
But while both laska and the Middle East will no doubt remain at the center of energy policy - or at least controversy over energy policy - for the foreseeable future, we must remember that there are other important sources of energy in the world, and these too exist amid a cyclone of political controversy.
One of the…… [Read More]
There is some hope within some countries but maybe no hope between countries. As long as there are disparities within the economic balances of different countries there will always be food being used as a political weapon. Those countries that do have adequate supplies of food though, have a hope to balance their food politics out within themselves. There is the possibility of providing more food for the poor within countries in order to better balance the accessibility across the nation.
Food Security and Political Stability in the Asia-Pacific. (n.d.). etrieved July 29, 2010, from Web site: http://www.apcss.org/Publications/eport_Food_Security_98.html
Kassem, Yara. (2005). Food: A Political or Nutritional Tool? etrieved July 29, 2010, from Panorama Web site:
Political Economy of Food. (2010). etrieved July 29, 2010, from Answers Web site:
Smyth, Paul. (2009). Michael Pollan Makes Food Political. etrieved July 29, 2010, from City
Beat Web site: http://www.citybeat.com/cincinnati/article-18861-michael-pollan-makes-food-political.html
Williams,…… [Read More]
Famines and famine situations have been and presently are cruel realities in Africa. People like Alex de Waal or Dennis C. Galvan have attempted to (1) find the causes of famines and poor economic developments in Africa and (2) suggest intermediate ways of action, both in terms of prevention and acting against famines. On the way, tough realities have appeared, many with political consequences, including the fact that many NGOs, claiming to help people in Africa in times of need, are actually directing money and dedication elsewhere.
In his book, "Famine Crimes Politics & The Disaster Relief Industry in Africa," Alex de Waal points out towards the amplification of African problems because of the international humanitarian help the regions is often receiving. Of course, this is not necessarily a general evaluation. Waal himself never denies the help some of the NGOs are providing, but a misunderstanding of African realities often…… [Read More]
Cuellar, Mariano-Florentino. "The International Criminal Court and the Political Economy of Antitreaty Discourse." Stanford Law Review 55.5 (2003): 1597+.
Dahl, Richard. "A Changing Climate of Litigation." Environmental Health Perspectives 115.4 (2007): 204+.
Fromkin, David. "International Law at the Frontiers." orld Policy Journal 15.4 (1998): 59-72.
Koh, Harold Hongju. "Foreword: On American Exceptionalism." Stanford Law Review 55.5 (2003): 1479+.
Scharf, Michael P. "The ICC's Jurisdiction over the Nationals of Non-Party States: A Critique of the U.S. Position." Law and Contemporary Problems 64.1 (2001): 67.
Stacy, Helen. "Relational Sovereignty." Stanford Law Review 55.5 (2003): 2029+.
Tiefer, Charles. Veering Right: How the Bush Administration Subverts the Law for Conservative Causes. Berkeley, CA: University of California Press, 2004.
David Fromkin, "International Law at the Frontiers," orld Policy Journal15.4 (1998): 59. http://www.questiaschool.com/PM.qst?a=o&d=5002006259
Mariano-Florentino Cuellar, "The International Criminal Court…… [Read More]
Reagan era economics and uses the economic era as a foundational support for the economic boom of the 1990's. The writer explores various published works regarding the Reagan Economic era including discussions about the trickle down theory and voodoo economics to lay the building blocks to explain the boom of the 1990's.
The economic boom of the 1990's brought America to heights it had not seen in many years. People were able to purchase what they wanted, when they wanted and in the quantity they wanted. The housing market soared and the quality standard of life seemed to improve more many Americans. It was a decade of self-discovery, and a decade of exciting stock, housing, auto and other economic avenues to explode. It lasted long enough for residents of this nation to become comfortable spending and that comfort drove the spending up. This in turn drove the economy forward and…… [Read More]
Foreign Direct Investment
Why has foreign direct investment (FDI) increased in recent decades?
According to the OECD, (Organization for Economic Co-operation and Development), one of the major trends in the global economy during the recent decades is the increase in the foreign direct Investment (2001, p.101). Foreign direct Investment is the process of establishing, owing and controlling the production of goods and services in the foreign country or in simple words, it can be defined as the real assets which are abroad. It is associated with the transitional corporations which expand their global activities.
If we go back 50 decades, we find out that foreign direct Investment was considered as an unhelpful, unconstructive, negative and a method of introducing improper technology for the developing countries. However, a completely different view of FDI has emerged in the last two-three decades and today it is considered as very beneficial for the economic…… [Read More]
On the other hand there are many disadvantages to moving into foreign markets as well. One disadvantage is in regards to extra costs. Because it takes more time to develop extra markets, and the pay back periods are longer, the up-front costs for developing new promotional materials, allocating personnel to travel and other administrative costs associated to market the product can strain the meager financial resources of small size companies. Another disadvantage is product modification. When exporting, companies often need to modify their products in order to meet foreign country safety and security codes along with other import limitations. At a minimum, alteration is often necessary in order to satisfy the importing country's labeling or packaging necessities. A third disadvantage is that of financial risk. Collection of payments using techniques like open-account, prepayment, consignment, documentary collection and letter of credit are time-consuming and more complex (Advantages and Challenges of Exporting,…… [Read More]
International Crisis on Businesses.
In this paper, I will assume the task of a consultant at McKinsey and Co. It is my duty to analyze the effects on international and local businesses of the problems which are erupted in Middle Eastern/Northern African countries particularly Egypt, Tunisia and others. This paper will be produced for the clients of McKinsey and Co in order to assist them in their respective strategies for the region. The main four topics which would be addressed in this paper are as follows, the local impact on business, the global impact on businesses and industries, the impact on shareholder value and wealth of the most affected companies and finally the short, medium and long-term political influences which might affect businesses.
Local Impact on Businesses
During the times of severe political or social unrest which is now seen in countries like Egypt, Tunisia, Syria and others, the overall…… [Read More]
Inteestingly enough, it can be obseved that the usage of books as souces of mateial is elatively educed in both aticles.
Afte a seies of analyses, Paul Conish comes to the conclusion that, despite the temendous intenational movements and advances, the secuity policy of the Euopean Union emains unclea. The main easons fo this uncetainty ae given pimaily by the difficultly in pedicting the county's subjection to any militay theats, the changing shape and size of the Euopean Union o the opaque inteests of the fomation. What does howeve impove the stand is the adheence of the EU membe states to NATO, which emains the most cedible secuity oganization acoss the globe.
Given this situation, the political appoach of the oveall Euopean continent to secuity issues seems to be mostly influenced by NATO, athe than the Westen Euopean Union o the Euopean Union. This context led to a situation in…… [Read More]
international relations theory due to their background in agriculture related research and study, including a BSc. degree in agriculture, a master's degree was in agricultural development and a master's degree in sustainable development in agriculture. ith regard to sustainable development this applicant was struck by the number of issues that were purely related to an understanding of the nation state and the crisis that it now faces in the era of neoliberal globalization due to the growth in power and influence of non-state corporate entities that have become more powerful than traditional nation states.
hat is happening to date in globalization challenges all of the areas of international relations theory, whether using the approaches of realism, constructivism, or Marxism and critical theory, feminism, foundationalism, the "English school," functionalism, post-structuralism or post-colonialism. The overall topic of this author's research is ambitious. It will be to fuse the elements of all of…… [Read More]
In the real world, most markets are far from fully competitive, labor-productivity within a country varies over time and full employment is just a dream in most capitalist economies. (Suranovic 1997)
Given the list of such 'unrealistic' assumptions made in the model, it is easy for us to dismiss the results of comparative advantage altogether or to accept it with a large dose of skepticism. But would such dismissal be justified? It is prudent to remember that almost all economic theories operate under a large number of 'unrealistic' assumptions that do not apply to the much more complex real world. In fact, we deliberately simplify the variables in economics in order to be able to construct models and to carry out analysis. Such simplification does not make all economic analysis redundant. It should also be remembered that comparative advantage and international trade would work to the benefit of all individuals…… [Read More]
UK Immigration Act of 1971 and Its Enforcement with espect to Administrative emoval/Deportation when Articles 3 and 8 of European Convention of Human ights are Engaged
Following the terrorist attacks of September 11, 2001, many observers stated that "nothing would ever be the same again" and in some ways they have been absolutely correct. While the United Kingdom continues its inexorable march to become fully integrated into the burgeoning European Union, a number of obstacles remain firmly in place that relate to the perceived need by the UK government to better control movement of foreigners within its borders. The purpose of this study was to provide an examination of the UK Immigration Act of 1971 and its enforcement with respect to administrative removal or deportation when Articles 3 and 8 of European Convention of Human ights are engaged. This study used a three-chapter format to achieve this research purpose. Chapter…… [Read More]
Intenational Tade Between Bahain and Saudi Aabia
This is a pape on Tade between Bahain and Saudi Aabia, focusing on how it affects thei intenational tade elations with special attention to OPEC, GCC and the Qata dispute. It uses 22 souces in MLA fomat.
Both Saudi Aabia and Bahain ae membes of the Gulf Coopeation Council along with Qata, UAE, Kuwait and Oman. Unde the GCC Ageement, pefeential taiffs apply among the membe states. Since independence in 1971, Bahain has essentially pusued a libeal tade and investment policy, and has integated its economy closely with those of othe counties in the egion, though the Unified Economic Ageement of the Gulf Coopeation Council (GCC).
Tade and economic gowth in Bahain is stongly affected by vaiations in intenational enegy pices. Real GDP gowth, as a esult, was slowe duing the 1990s compaed with the pevious decade, aveaging aound 3.6% annually since 1994.…… [Read More]
There is a concerted effort to bring developing nations into the global trade system. There are certainly success stories of nations that have been able to enjoy advantages from joining this system -- China in particular comes to mind -- but there is room for debate as to whether or not the neoliberal trade system is actually desirable for developing nations. There are a lot of issues at play, starting with the basic economics.
In general, the theory of comparative advantage argues that nations should open up trade, so that they can produce the goods in which they have a comparative advantage and sell them to buy the goods in which they do not. There are some fairly significant real world limitations to this theory, however. One is that trade is usually governed by absolute competitive advantage, not comparative advantage. If a company wants a good at a low…… [Read More]
International Pol. Ec.
The four different scenarios laid out by the orld Economic Forum in 2009 paint distinctly different visions of the development of global financial markets. The four scenarios are financial regionalism, re-engineered estern centralism, fragmented protectionism and rebalanced multilateralism (yman, 2009). Of these four different scenarios, there is evidence late in 2010 that would support the evolution of two of these different scenarios. These scenarios, in particular the one with the most support, will be given primary consideration in this paper. The implications for these scenarios for my chosen company, an IT firm with a local focus, will also be discussed in this paper.
The EF scenario that fits the world best as of late 2010 is the first scenario, financial regionalism. This scenario relies on post-crisis blame-shifting, something that can be seen in the global political environment at present. The United States has raised serious issues about…… [Read More]
International Corporation Walmart
Because of the abilities of the internet and the expansion of global interests, there are many more international corporations today than there were in the past. One of the largest and most recognized of those corporations is Walmart. It operates in nearly all developed countries in the world, and is one of the largest retailers on the planet (Fishman, 2006; Zook & Graham, 2006). While it started out small, the company has grown to enormous proportions. It has become so large that some countries and some communities have taken strong and significant steps to keep the company out. Not everyone is a fan of the company, and not all countries think Walmart is good for business. The way the company comes in and "takes over" is sometimes a problem for much smaller, "mom and pop" businesses that are not able to sell as inexpensively as Walmart. For…… [Read More]
Additionally, its taxation advatantages may erode due to pressure from EU and implicitly its wages will increase as taxes increase. Competition from emerging countries, namely Eastern Europe will become stronger as Ireland allings its strong points to EU standards. Moreover, the country's inflationary problem persistance may strengthen EU pressure on the authorities to reduce it through its fiscal policy.
BBC news channel. 2004. Ireland is Named 'Best Country', published on Nov 17, http://news.bbc.co.uk/1/hi/world/europe/4020523.stm.
Barry, F. And Bradley, J. 1997. FDI and Trade: The Irish Host-Country Experience. The Economic Journal, vol. 107(445): pp. 1798-1811, http://www.res.org.uk/
Berry, . 2001. U.S. Foreign Direct Investment in Ireland: Making the Most of Other's People Money. Perspectives on Business and Economics, vol. 19.
Cassidy, Mark, 2002. The Irish Economy: ecent Experience and Prospects. in: Aronson, ., Munley, V., Thornton, . (Eds.). The Irish Economy in Transition: Successes, Problems and Prospects. Elsevier Science, Amsterdam: pp.…… [Read More]
International expansion is one of the growth strategies that are embraced by companies in order to improve their bottom-line/profitability. In this paper, we present an elaborate international marketing strategy for ed Bull energy drink. The marketing plan begins with an introduction into the concept of international expansion and marketing and a brief overview of the company. A review of the main conclusions and recommendations is then presented. This is then followed by a discussion of internalization strategy. In this section, the context as well as context and reasons for the firm's internationalization initiation or expansion decision, as well as a discussion of the stage of internationalization at which your chosen firm finds itself. The next section is a discussion of the foreign market segmentation and targeting strategies. Under this section, we justify our choice of a market concentration or diversification strategy, incremental vs. simultaneous entry, the number of countries you…… [Read More]
Thus, weak institutions, frequent military takeovers, and corruption in government ranks, both civilian and military has resulted in present state of affairs of Pakistan. Syria: Syria's history has been one that was dominated by family rule, foreign interventions, and inability to successfully run the affairs of the country by the ruling elite. The Assad family has held the power in Syrian since last four decades and this has caused significant deterioration in institutional and other forms of governance (Zisser 2003, 15-19).With independence from the French forces in 1946, Syria remained internally polarized and externally vulnerable to the tensions of Middle East. Her confrontation with Israel and support for Hezbollah has considerable historical background. Thus, the issues today being faced by Syria are a continuation of its acts of historical omissions and commission by ruling elites.
Influence of leadership: Influence of leadership on both Syria and Pakistan has been largely negative…… [Read More]
"Opening up the financial system to foreign capital flows can lead, and has led, to disastrous financial crises, which have resulted in great pain, suffering and even violence" (Mishkin, 2006, p.9).
Directly linked to the previous disadvantage and the basic definition of globalization, is the fact that the interdependence of sectors and institutions increases in a global market. In this instance then, a financial crisis within one country or within one institution is likely to generate negative effects upon its partners. The most relevant example of chain reaction to a financial crisis is the current situation, in which the global community is threatened with economic collapse due to the financial difficulties of the United States. The situation is similar in terms of politics or the social environment.
Globalization has often been assimilated with Americanization, meaning by this the desire of the American corporations to transcend boundaries and get access to…… [Read More]
" (Veeramani, 2004)
Stated as contributors to the export success of China are those as follows:
1) Favorable exchange rate;
2) Low wages;
3) Availability of labor;
4) Large domestic market;
5) Huge volume FDI inflows etc. (Veeramani, 2004)
India is not far behind except the gap existing in the FDI volume into China and India, which remains a large gap. The FDI for India has been of much less importance as compared to China except in view of information technology. Sinha (2007) states: "In short, while the multinationals mostly engage in the export activities with China, they target the domestic markets in India." (Sinha, 2007) the following chart shows that China is 'above average' in goods while India is 'above average' in services.
Source: India and China's Developmental Paths (2008)
The differentiations of multinational behavior likely include "the relatively high trade barriers in India (which encourages market seeking FDI)…… [Read More]
International Risk Management
No profit was ever made without taking some financial risk. However, economists such as John Eatwell and Lance Taylor have argued in their text Global Finance at Risk: The Case for International Regulation that international financial markets are intrinsically and particularly apt to pose the threat of risk to potential investors on an individual and a corporate level. Investors in finance base their decisions on guesses, not only about how other investors within a nation will behave, but also about national stability, which affects the stability of the currency. As markets have grown more global in scope, industrialized countries often have pursued a more cautious monetary policy regarding other nations. However, too much caution can be risky too, Ultimately hesitancy in investment results not only in lost opportunities, but a climate of fear that can at its extremes generates international deflation, a depression in economic growth, and…… [Read More]
International Accounting Undergraduate degree Accounting & Finance 1. The Assignment "Several organisations involved efforts harmonise accounting practices rregionally internationally. The important players effort European Union (regionally) International Accounting Standards Committee (IASC) ( IASB) (internationally).
There have been a series of efforts during recent years with the aim of developing a common agenda of accounting standards. The fact that there are several alternatives of accounting practices, for example, contributes to making it difficult for influential bodies to reach common ground concerning the matter. Institutions such as the European Union and the International Accounting Standards Committee (IASC) (currently called the International Accounting Standards Boards -- IASB) have played significant roles with the purpose of emphasizing the importance of international accounting standards.
ith society being composed out of distinct national economies, there has been little need for common accounting practices in the past. However, as the global economy has come to dominate international…… [Read More]
Only a few decades ago, China was a struggling economy. It is much newer in the free market economy system as compared to the already established economical giants, given the country's communist history. China, a country with an extremely high population, put its resources to its best possible advantage and that was something which contributed towards the country's rapid growth. China has one of the cheapest labor and energy and power resources available for its production. As a result, the industries can achieve economies of scale and thus can cut down on their cost of production. As a result, China enjoys a greater absolute advantage over its competitors. Importers around the world have realized the fact that importing goods from China is relatively much cheaper as compared to imports from other developed economies. These cheaper imports allow them a greater profit margin. Moreover, given the fragile economic conditions and declining…… [Read More]
International Human Resources
Culture, Political, Economic and ocial Contexts of Nigeria Under the ubject of International Human Resource Management.
This paper is solely related to the International human resources practices, the uses of international human resources aspects as well as implementation within Nigeria. The paper has been explored several positive and negative aspects of Nigeria related to IHRM and whether it is feasible for global companies to operate and use the labor of Nigeria for making higher profits over there.
International HRM growth and significance
After attaining global scale, any company may be bound to utilize numerous resources and opportunities like global scale, scope, local differences adaptation and tap into best resources and locations associated with global presence in Nigeria and other countries. These are important opportunities in Nigeria because after exploiting such opportunities, the global image can be transformed into top global image (Hollinshead 2010, pp.233-262).
The opportunities can…… [Read More]
This project is expected to greatly enhance the countries' economic interdependence with its neighbors (Owen, 2000).
Currency and its rate with U.S. Dollar. The Qatari iyal (Q) is the official currency; the Q is divided into 100 dirhams (A Dictionary of Business, 1996).
Major industries. Major industries include crude oil production and refining, ammonia, fertilizers, petrochemicals, steel reinforcing bars, cement, and commercial ship repair (Qatar, 2005).
Telephone system. Telephones in use: 184,500 (2003 est.); general assessment: modern system centered in Doha. Tropospheric scatter to Bahrain; microwave radio relay to Saudi Arabia and UAE; submarine cable to Bahrain and UAE; satellite earth stations - 2 Intelsat (1 Atlantic Ocean and 1 Indian Ocean) and 1 Arabsat (State of Qatar, 2005).
adio broadcast stations. AM 6, FM 5, shortwave 1 (1998) (State of Qatar, 2005).
Television broadcast stations. Qatar has one television broadcast station (plus three repeaters) (2001) (State of…… [Read More]
Home to the world's tenth largest economy and second largest population, India defies swift generalization. It includes a vast range of developmental situations, cultures, languages, and climates. The country remains largely rural, with just 26% of its people living in cities. Yet in 1995 it had over 30 cities of one million or more residents, including three of the world's 20 largest cities -- Bombay, Calcutta, and Delhi -- according to United Nations estimates (The Anguish of India, 1997).
Currently Indian labor laws, regulations, and workforce standards are very outdated. India is plagued with corruption. India has been ranked 9th in a list of 75 countries where dishonest practices are common, which is indeed an uncertain distinction. The corruptions, delays, bureaucratic red tape, and archaic labor laws are ingrained in India's business culture. These pitfalls have deterred foreign investors from investing in India (Stokes, 2003).
From the…… [Read More]
For example, Shu-Acquaye (2007) cites the basic differences in the legal systems in various parts of the world as contributing to the different approaches to corporate governance. Likewise, Shu-Acquaye cites these differences and adds, "The American corporate governance system adheres to the idea of shareholder primacy. Because the United Kingdom, Austria, and Canada share a legal system based on English common law and equity principles, they are similar to the United States -- shareholder primacy is the predominant norm in each of these countries."
By sharp contrast, other countries such as Japan and Germany are characterized by stronger protection for their employees, creditors, and other nonshareholder stakeholders in general, representing examples of a stakeholder-orientated system. In their book, the Control of Corporate Europe, Barca and Becht point out that, "Germany has always had a prominent place in the international corporate governance debate. The country is among the largest and richest…… [Read More]
Political, Legal, Economic isk Analysis
Spain is the eighth biggest industrialized economy in the Organization for Economic Cooperation and Development -- OECD and the fifth biggest nation within the EU as regards population, output and production. Spain has undergone a remarkable change since the last thirty years. Progressing from a somewhat a poor agrarian economy, it has witnessed speedy economic progress and is presently a modern, fully industrialized nation. Since the past decade sincere efforts by successive governments have pushed economic reforms placing the Spanish economy on a robust structural standing with the result that since the last five years the Spanish economy has come to be amongst the front ranking European economies. The International Monetary Fund in its preliminary Conclusions on the 2001 Article IV Consultation has ranked Spain as the most dynamic economy of Europe. (Doing Business in Spain: An Introductory guide to the market)
Turkey on the…… [Read More]
Competitive strategy is the bedrock on which companies base business decisions to reach their targets and achieve profitability. Formulating and implementing strategies in international business is much more complicated and difficult task than doing so in home or familiar markets. Competitive strategy deals with the development of abilities by a firm to keep ahead of competitors in the fields in which it operates. Firms develop competitive edge in global markets by possessing certain assets, abilities or characteristics. The primary elements of competitive advantage are the critical offer, the significant operating factors and the firm's strategic resources. (ennett and lythe, 2002) Corporate strategies and international marketing strategies are linked closely and have a bearing on business performance. (rown, 1994)
While some companies focus on a single source of competitive advantage, it is common for many firms to opt for a combination of options to be flexible and attain the…… [Read More]
This type of international fraud occurs due to a desire to develop a climate that allows investors to benefit from the comparative advantages of countries such as Mali and Senegal (Barney and Hunt). These countries generally compete against other African states in order to attract more investors and, when the resources are insufficient to convince these foreigners, state officials engage in frauds.
4. Impact on International Business Setting
The increased levels of fraud generate a series of chain reactions upon the business setting within Senegal and Mali. First of all, they reduce general trust in the economic and political systems. This then means that foreign investors are not attracted to the region and that developmental opportunities are reduced. This in turn materializes in the lack of new jobs. It means as such that the federal authorities are unable to cash in taxes from foreign investors conducting business operations within Senegal…… [Read More]
Political and Economic Differences
Effects of the financial crisis on the developing world vs. The developed world
The 2008 financial crisis began in the American banking sector but its impact was soon felt around the world. Both the developed and the developing world were affected. However, not all nations were crippled by the drying-up of credit and consumer demand to an equal degree. Some nations were derailed in their attempts to progress economically and politically; other nations, particularly in the Far East, emerged relatively unscathed.
The populations affected in different areas of the world economy also varied from nation to nation. For example, in many regions of the developing world, women often have the status of 'second class citizens' for cultural and political reasons. But the crisis in the U.S. was often called a 'male' recession, because the hardest-hit sectors were traditionally male-dominated fields, in the form of the…… [Read More]
Labor influences vary from labor quality, quantity, labor unions, labor markets labor mobility and minorities. All these affect the international market differently. The quantity and quality of labor force are of great importance in the international business due to the profitability, efficacy and competition the employers should uphold and depict. Many countries want to purchase labor as cheaply as possible and also maximizing on the quality. Consequently, factors such as adaptability especially to new environments, managerial skills, ability to learn new things, and knowledge are highly considered when hiring candidates (Ball, 2006).
Labor quality can be termed as education, skills, and attitudes of potential employees which vary with regions and countries. It's an essential aspect and component to be considered in the planning stage. It should be considered to ensure that the right skill level is available to conduct business gainfully. In developing and poverty stricken areas where education and…… [Read More]
Comparative advantage states that mutually beneficial exchange is possible whenever relative production costs differ prior to trade. Nations gain by producing goods at relatively low costs and exchanging their outputs for different goods produced by others at relatively low cost. Thus, consumers can gain enormously through appropriate specialization and exchange. A country has an absolute advantage in producing a good if production of the good absorbs fewer resources than are required in other countries or by other individuals or firms.
Specialization leads to economies of scale (Globalization) where more units of a good or a service can be produced on a larger scale, yet with (on average) less input costs. An increasingly competitive global economy drives companies to gain larger global market shares so that they can exploit the benefits of economies of scale (Daniels, Radebaugh, and Sullivan, 2007).
Of course, a harmonious political climate and international embracement of free…… [Read More]