Advantages and Disadvantages of Free Market Economy

THE ADVANTAGES OF FREE MARKET ( DISADVANTAGES OF COMMAND ECONOMY ) 1. Efficiency. free market economies are very competitive. Most of their industries are assumed to be perfectly competitive and so allocative and productive efficiency will occur. As their main aim is profit motive so free market economies allocate their resources more efficiently as compared to planned economy. Decisions about what to produce are made by the people who will actually consume the goods. Planners are less likely to make the correct decisions across the whole economy. 2. Choice. In free market consumer sovereighnty prevails.Firms will produce whatever consumers are prepared to buy not what they think they think they would like to buy. As consumer needs are going to be met with appropriate product than firms will make higherr profit and will last much longer in the market . Due to the free enterprise factor, there are no restrictions on what the firms can produce as a result there will be a much larger ch oice of goods and services in a free market economy compared with a command economy. The planner will be more concerned in making sure there are enough essential goods to produce the product they want to produce.As firms in free market will be producing different good and services so consumers will have variety of good and sevices to choose from. 3. Innovation. Firms will always be looking to produce something new to get ahead of their competitors. , even though the government's role is limited, one of its jobs is to protect property rights. This will include intellectual property rights through patents. Hence, there are incentives in the free market system for firms to be innovative and produce better quality products. DISADVANTAGES OF FREE MARKET ECONOMY ( ADVANTAGES OF COMMAND ECONOMYPublic, merit and demerit goods. Public goods cannot be provided privately because of their two characteristics, non-diminishability and non-excludability. These goods have to be provided publicly. E ven in a very free market, one of the government's few roles will be to provide defence, for example. But there may be a problem with merit goods and demerit goods. Merit goods, like health and education, tend to be under provided in a free market. Certainly in the USA the public health system is a ‘last resort' system. People are advised to buy health insurance.Of course, the poor might not be able to afford this, and some people might simply decide not to bother if they feel particularly healthy. Demerit goods are bad for you. Government should ban class A drugs, and tax cigarettes and alcohol heavily. A government with a limited role might not take enough action in this area, causing health problems for the economy. Of course, the advantage of a command economy is that the strong government will make sure that public and merit goods are consumed at the right levels and that demerit goods are banned or taxed heavily.The environment. Free market economies are likely to produc e more pollution, which is bad for the environment. Command economies can make sure that the production processes that they chose are as environmentally friendly as possible. They should be able to make sure that the level of output is the socially optimal level of output. Governments can try to force firms into producing the socially optimal level of output through the use of taxes, but governments with a limited role will not be keen to use taxes.Although the tax on petrol is high in the UK, it still doesn't cover the problems caused by the exhaust emissions (in health as well as the environment). Petrol prices have risen, but in real terms, the rise has not been as high as for bus and rail fares. In the USA, petrol is ridiculously cheap. The minimal tax on the good does not begin to cover the environmental damage. Having said all that, the command economies of the 80s had notoriously poor records on the environment. In theory, they should have been able to monitor pollution level s closely, given that they had control of production but this simply did not hapeen.

A Summary of Amy Tan s “Mother Tongue” Essay

In â€Å"Mother Tongue†, Tan writes about the awareness and discrimination about â€Å"broken English† compared to Standard English. In Tans essay she quotes her mothers’ speech to demonstrate her mothers â€Å"broken English†, it was a very trivial story but the thing that is worth looking at was her mother’s grammar. The quoted parts were filled with grammatical mistakes and the text was quite confusing. In fact, her mother had better command in English than all that was evidently showed in her story. She could read very sophisticated and high level documents without much difficulty. In â€Å"Mother Tongue†, Tan mainly talks about her realization of the existence and effects of the â€Å"broken English† of her family. She takes her mother’s talk that is full of grammatical mistakes and conversation with the stockbroker as examples, which gives us an impression that her mother is not well educated. Yet the truth is, her mother grasps better in English than her speaking ability and can easily read high-level papers and documents. â€Å"Mother Tongue† reflects on the misleading illusion that language can represent one’s education level. Amy’s mother has intelligent thoughts and is just hard to express in understandable words when special situations occur. â€Å"Mother Tongue† is a look into the way some people, look to language as a way as a sign of how educated you are. In views of Tans prompt she gives the readers the impression that her mother is an uneducated Chinese woman who does not comprehend the language. Nevertheless, this was never the effect Tan intended for readers to assume of her mother considering that Amy did not think her mother was ignorant or uneducated because her intelligent thoughts and answers were there. Her mother just could not relay her thoughts into understandable words like the time when talking to the stockbroker.

Applied Statistics for Finance and Economics Project report Coursework

Applied Statistics for Finance and Economics Project report - Coursework Example Since in this data we are focused on 2002 to 2006 we see that the seasonal and the cyclic component are present. We take a time plot of the returns data of home furnishers to investigate if the data exhibit trend in this case. From the above trend we can see that there is linear trend in the returns of the home furnishers. To eliminate trend to make the returns data stationary, we take the differencing of lag 1 and observe the progress the remains. The time plot of the returns also shows that the return data exhibit trend. Thus from the above analysis of the returns and return squared, the returns can be predicted and has a very high predictive power while the return squared has very low predictive power. Broadly speaking, a time series is said to be stationary if there is no systematic change in the mean (no trend). If there is systematic change in variance and is strictly periodic variations (seasonal and cyclic component) are removed. Most of probability theory of time series analysis is concerned with stationary time series and for this reason time series analysis requires one to change a non-stationary time series to a stationary time series analysis so as to use it. In this study we plot the variables and test their stationary using a particular variation of unit root test- the Augmented Dickey-Fuller test. We then difference the time series of return to make the series stationary. After differencing the return data we can observe that the data is stationary. This can be clearly seen in the time series plot of the differenced data at lag. The plot of differenced data of returns below shows that the data is stationary after differencing it once. The pair trading is a common thing in the trading market. Literature on pair trading, market efficiency and return volatility behavior is plenty for a developed stock market. The study involves pair trading using the

Information systems Essay Example | Topics and Well Written Essays - 250 words

Information systems - Essay Example In the case of a price war, a firm can maintain profitability as the competitors suffer losses. The low-cost strategy broadens the profit margin and targets a broad market (Griffin, 2007). The differentiation strategy concerns with offering products that possess different unique attributes. This strategy enables a firm to sell almost the same products to different markets and carry price discrimination across markets (Spulber, 2007). In the focus strategy, a firm sells and customizes unique marketing techniques to suit different markets. In the low-cost focus strategy, a firm specializes in a given market. It is essential to highlight that Coca Cola mainly uses the differentiation strategy while Toyota employs the low-cost strategy. In this sense, they gear their information systems towards meeting such competitive strategies. Toyota, in the lean manufacturing technique, uses globalized and automated information systems in enabling quick delivery of products across the world. Coca Cola, on the other hand, uses its information system towards market research. It employs the social media and mobile applications in understanding its market

Brain and Physical Injuries Essay Example | Topics and Well Written Essays - 500 words

Brain and Physical Injuries - Essay Example The researchers found that most of the family members were less psychologically distressed. However, people suffering from brain injury had poorer psychological outcomes than their relatives did. The study also found that spouses of patients with brain injury were subjected to trauma and psychological distress. Bell, Kathleen R., Nancy Temkin R., Peter Esselman C., Jason Doctor N., Charles Bombardier S., Robert Fraser T., Jeanne Hoffman M., Janet Powell M., and Sureyya Dukem. â€Å"The Effect of a Scheduled Telephone Intervention on Outcome after Moderate to Severe Traumatic Brain Injury: A Randomized Trial.† Archives of Physical Medicine and Rehabilitation 86.5 (2005): 851-856. Print. The authors studied the effectiveness of telephone interventions in counseling and education for brain injury patients. These interventions, coming from home, were compared with the standard follow-ups conducted after one year. The researchers found that constant telephone interventions made patients feel better than interventions that come after a long time. Esser, E., Valencia, E., Conover, S., Felix, A., Tsai, W.Y. and Wyatt, R. J. â€Å"Preventing recurrent homelessness among mentally ill men: a "critical time" intervention after discharge from a shelter.† American Journal of Public Health 87.2 (2007): 256-262. Print. The authors set out to establish strategies that can protect mentally ill persons from becoming homeless. They sought a bridge between community care and mental institutions. They sampled 96 men with severe mental illness, including brain injury and gave them critical care in an institution. The researchers discovered that most of the men longed for home and families despite the good care they received at the institution. The researchers sought to determine the factors that predict family system functioning after one member of the family experiences brain injury. The

Corporate Governance and Ethical Responsibility Essay

Corporate Governance and Ethical Responsibility - Essay Example Internal stakeholders in a hospital include the patients, the medical staff and management of the hospital and the board of governors or trustees. External stakeholders are those parties that have minimal often indirect influence on the management of the hospital. External stakeholders may include the relatives of the patients and other potential patients to the hospital. Other external stakeholders include the federal government and other hospital of the same class and category (Lebeer, 2002). The most basic function a medical executive should perform in regard to satisfying al stakeholders is controlling, directing staffing and organizing. For the patients, however, Doctor DoRight has the role of democratizing medical services so that all the patients get equal treatment. Equal treatment encompasses equitable distribution of the hospitals resources. For instance, in the case of organ transplant, hospitals can device methods such as receiving an organ in regard to the severity of th e situation. The board of trustees expects that the medical executive prevents the occurrence of law suits, which may tarnish the name of the hospital and cost it a lot of money, that result from the action of hospital employees. Trustees also expect that the president maintains low labor turnover and an excellent cooperate image is paramount. The staff of the hospital expects respect from patients and fellow staff despite their position. Also, the staff expects fairness in remunerated, and adequate timely pay and a safe, conducive working environment (Lebeer, 2002). Potential customers need to feel welcomed to the hospital hence the need for an operational call centre and an efficient customer service. Recently hospitals have also taken on the craze of advertising their products to potential customers. Though an external stakeholder, the federal government, has a strong influence on the running of hospitals. The governments influence is greater when it comes to the legal obligation s of the hospital. For instance, the government may insist that a hospital only use FDA approved drugs. The government, in America, may also specify the types of procedures that a hospital cannot carry out for instance euthanasia is illegal in most states. Competition between rival hospitals is inevitable, with their current status as potential business entities. However, there are certain procedures that must remain intact so as to maintain peaceful coexistence. For instance, a hospital can seek transfer of a patient to another hospital even if they are competing. Doctor DoRight should ensure that there is no slandering of another hospital by his staff through words or actions (Lebeer, 2002). There are six guiding principles that doctor should adhere to in their disbursement of services. These principles include a) Honesty and truthfulness b) Respect for persons c) Justice d) Autonomy e) Beneficence and f) Non-maleficence. These principles mostly guide doctor patient relationships but can also act as a basis for the actions of medical executives. In trying to satisfy the various stakeholders, the manager of the hospital, may experience conflict of interest when the needs of the two stakeholders clash. A good example of a clash of interest is on the issue of euthanasia. The reality of the effects of diseases such as Alzheimer’s is real and devastating. Most patients and families prefer

Succession & Retention of Offshore Managers Essay

Succession & Retention of Offshore Managers - Essay Example The current problems and challenges of the global environment will also be taken into consideration. The case study for this research is Technip UK Ltd, the UK subsidiary of the Technip Group based in France. However, this case study will be supplemented with research obtained from two more organizations, to benchmark Technip, as well as provide a basis for comparison of HR practices. The two organizations selected for this purpose are Saipem SPA and Stolt Offshore M.S. Ltd, a UK Company. The author seeks to broaden his knowledge in key areas of HR, especially in the retention of a skilled and competent workforce within a rapidly expanding market where demand for personnel is outstripping availability, and risk factors have complicated this task. The author also seeks insight into the challenges associated with maintaining a globally diverse, international personnel base for engineering projects. The following manger has assured his support. Through the benchmarking exercise with its main competitors, this research study aims to arrive at a relevant examination of Technip’s human resource practices and whether it is enhancing recruitment and retention, or proving to be a detriment. Since all the three firms will be faced with similar challenges in the global environment, benchmarking will be useful to establish specific problems or good practices at Technip. Major investment (Â £100 million + per unit) in new Diving vessels by Technip UK Ltd and its main competitors will mean that recruitment and retention will be key to competitive advantage and building distinctive capabilities. Following an introduction and background to the subjects being researched, the third chapter will provide a literature review. Chapter five will discuss the research methodology and the results will be analysed in chapter six. Chapter 7 will contain recommendations for improvement and conclusions. This research study will employ a qualitative