The effectiveness of a free market system

The effectiveness of a free market system The market system is markets in which governments have very limited roles, it can also be known as the free market. Many may question this type of market system though, in that how can such a system without any major policies or government intervention, solve the basic economic problems of, what to produce? How to produce and for whom to produce? Adam Smith, a famous Scottish philosopher economist, argued that individuals pursuing their self interest would be lead as by an invisible hand in doing things that are in the interest of society as a whole. In this market, if an individual desires to start up a business, once established, would in turn benefit society by creating new jobs and opportunities. This benefit would move the societys production possibility frontier onwards and outwards, and would further result in a productively and allocatively efficient business. The main feature of a free market system is that it enjoys the pricing system which is determined through forces of demand and supply of a product or service without any influences of monopolistic or oligopolistic markets. This is the only time where government intervenes; in ensuring consumers enjoy the benefits of low prices. Competition within the market therefore, allows consumers to have choices and benefit from low prices and in return leads businesses to expansion or creation of new products or services. Free market businesses also have high profit motives therefore ensuring efficiency and effectiveness within the operational functions of the business. Based on information gathered it shows where1 Mexico benefits from a free market economy in the trillion dollar class with regards to investment climate. The country established this state through the mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Likewise, Tanzania enjoys more than ninety percent of total foreign investments. Some of the countrys investors include the United Kingdom, the United States and Germany to name a few. The sectors that attracted these top country investors are tourism, agriculture, fisheries, mining and manufacturing all under a free market system2. Altogether, it is appears that the market system is the best mechanism in encouraging a positive investment climate, however, everything that has advantages, must have some sort of negativity affiliated. In this market, with high levels of rivalry, it has been known to adversely affect employment and poverty levels in China and India in division between the rich and the poor. Even highly developed economies such as the United States and Canada are known to encounter these issues consequent of a total free market economy3. Additionally, in an attempt to maximize profit levels, business owners in a free market may be tempted to reduce competing levels and operate as a monopoly, in essence to non government intervention. Income differences are also likely to be substantial since there are no taxes imposed in reducing it. In the real world it is not perfect; it would never really have a market where demand is equal to supply a state of equilibrium. Therefore, in conclusion the free market would never really be a best allocating mechanism for scarce resources. Word Count: 524words PART A QUESTION 2 People disbelieves of a free market economy has highlighted the nature of a command economy. In contrast to a free market system, in command economies the government decides what will be produced? How it will be produced and for whom it would be produced? This further encompasses detailed instructions that are issued to households, firms and workers. There is very little private sector business activity within this economy as oppose to a free market economy. It is a very bureaucratic and time costly task of the government in planning and making decisions of these roles, as such; even though there is maximization in the application of resources, there is no completely planned economy where there is efficiency in the allocation of resources. With government in command, they produce products and services that are only required to be produced, consequently limiting consumers choices. Also, there is no room for competition within this economy, therefore any improvements in product designs is highly unlikely. Employees are also poorly motivated knowing that the business is not trying to make profits; therefore they are not benefited in any way from working harder, or even giving their input in showing the enterprise of how to possibly make its business more successful. On the other hand, with a command economy, there is stability within the economy. Also, this economy plans on a long term basis of perhaps via infrastructure investments, whereas the private sector is only after short term profits. The economy is intended to serve needs collectively rather than individually which allows equal distributions of wealth within its nature making no room for any discrimination. Through the high levels of government control in the economy, it does ensure sufficient supply of industrial products be made available at affordable prices for manufacturers all in the effort of the overall welfare of the economy. All production decisions are based on the governments assessments of peoples needs rather than the consumers spending patterns. 4A planned economy, in theory does not suffer from any business cycles, that is, and is no booms or recessions: it does not experience crisis of overproduction. According to the CIA Factbook, it estimated that for a time the Soviet Union was the worlds second largest economy and was that of a command, the economy eventually collapsed though, resulting in the various republics gaining its independence, for e.g., Kazakhstan transitioning into a free economy. This country now reaps the benefits of a friendly foreign investment climate. The economy has been healthily operating since the transition. China, before 1978 and India before, 1991 were also important command economies. Presently, command economies are relatively rare however it does still exist in certain countries such as in Cuba and Iran. The student believes that there is really no room for investment climates within a command economy, especially since potential investors evaluates and investigates conditions for private sector investment. This is due to all the disadvantages discussed earlier, for e.g., the basic salary wages would in fact reduce the demand for labor which affects an investors decision in thinking of the long run outcome. Word Count: 517 words PART A QUESTION 3 As a free market allows practices of self interest without any significant restrictions, and a command economy allows minute capacity of individual economic freedom since most decisions are centrally taken by the government, the student would now discuss a mixed economy as a result to these market failures. In a mixed economy as in Trinidad and Tobago, the government and the private sector act together in solving the economic issues presented. The government controls a significant allocation of output through taxations, transfer payments and the provision of services such as the defense force and police force. Government also regulates the extent to which an individual may pursue their own self interest. In this market type, the government provides essential services for all in society, no discrimination; the private sector is encouraged to operate successfully in earning profits from enterprise. Competition within the market will result in innovate products produced at reasonable prices to consumers hence an overall satisfaction to consumers in having the benefit of choice of a product. In mixed economies, government rule out all inefficient business behavior, for e.g., dangerous products or polluted factories such as the International Aluminum Smelting Industry, which results in very detrimental health impacts to society. Some disbenefits though are that taxes may be too high to pay for public goods, which can result in a decrease in motivation to work hard or make profits. The public sector may also not be as productive and efficient as oppose to the private sector. Government also needs to be careful when setting controls over business operations, too much control can add to cost and thereby discouraging enterprise. Trinidad and Tobago is known to have an open investment climate meaning that almost all investment barriers since 1992 to be exact have been abolished. Based on data collected, 5due to the nations strategic location, natural resources, excellent infrastructure and pro-investment business climate, Trinidad and Tobago have in the past acquired the highest foreign direct investment (FDI) per capita in Latin America and the Caribbean. Increased levels of export returns have stirred both the public and private sectors outflow and inflow. Some of the sectors in which potential investors may consider in T T is the Tourism industry, Music and Entertainment, Merchant Marine and, Energy and Downstream Industry to name a few. Trinidad and Tobagos recent investment climate has not been progressing lately though, especially with the recent downfall in the economy, it is quite a challenging investment climate presently., 6There is a need to attract major players in the energy sector that is, especially since the entrants of new competitors such as Brazil, Angola, Australia and off-shore West Africa, who all possess the ability to haul together the investment dollars the technical expertise from major multi-national companies. Competition is indeed though in this sector, as a result the energy chamber has decided to center the forthcoming 2011 T T Energy Conference on investment in the energy sector. The conference will be to discuss the various aspects in which investment can be influenced in the region as well as means in enhancing competitiveness. Another major sector in which investment opportunities could use a boost is that of the Defense and Security sector. Presently, Trinidad and Tobago is undergoing significant increased levels of crime. Though a risk factor, relevant investors can however use this as an opportunity to grow and develop their businesses market shares. Trinidad and Tobagos actual investment policies as at 2009 20137, states where these policies are proposed in providing principles and guidelines for national and foreign investments, some of the marketing strategies include: Identification and development of investment projects. Facilitation of joint ventures. Improving access to financing and communication of investment opportunities. Provision of training to entrepreneurs. Hosting of trade fairs and trade, and trade and investment conferences, (as mentioned earlier) Provision of opportunities linked to firms that are already established, for e.g., the oil industry. These policies are expected to improve the investment climate of the country. In so doing, it provides opportunities for people to better themselves; therefore they should take advantage in the overall view of a bullish climate. Word Count: 705 words. FOOTNOTES 1http://www.islandandresort.com 2http://www.aabf.org/tanzania_inv_guide.htm 3 http://www.wiki.answers.com 4http://www.en.wikipedia.org 5http://www.bdc.co.tt/exportdirectory/profiles.php? 6http://www.ttenergyconference.org 7http://www.investtnt.com

Overcoming Adversity Essay

Adversity is a dificult situation what happened in our lives, problems large and small, present themselves to us throughout our whole existence it dependent each people who overcoming adversity. I believe that every person in the world has a certain strength inner or outer with adversities. First, be aware of and accept that adversity is inevitable in life because, adversity is part of life. To avoid or resist it will only make it persist. Everywhere you look in the world there is unmistakable struggle. There are floods, tsunamis, wars, and calamities of all types. Even within your own circle of family and friends there is death, loss and tragedy. Life is not easy If you expect it to be, you will perpetually disappoint yourself bad experiences that afect our dayli life this harsh reality can be hard to visualize. Second, when you try to respond positively and constructively to your biggest challenges, the qualities of strength, courage, character and perseverance emerge from deep inside of you. Focus on what you can improve, your reactions, confidence and attitude. Then important thing is simply to find one positive thought that inspires and helps you move forward. Hold on to it strongly, and focus on it. You may feel like you don not have much, or anything at all, but you have your mind to inspire you and that’s really all you need to start moving forward again. in fact, thank goodness for adversity learning to deal with and overcoming adversity is what makes us who we are. Every challenge and every difficulty we successfully confront in life serves to strengthen our will, confidence and ability to conquer future obstacles. Everything in life is two sided. There is good reason why we can not expect to feel pleasure without ever feeling pain; joy without ever feeling sorrow; confident without ever feeling fear; calm without ever feeling restless; hope without ever feeling despair: there is no such thing as a one sided coin in life, with which one can buy a pain free, trouble free existence.

MASLOW’S THEORY OF HUMAN NEEDS Essay

MASLOW’S THEORY OF HUMAN NEEDS Maslow’s theory of human needs focuses on the key foundation and the relations of human needs A need is a physiological or psychological deficiency that a person wants to satisfy In his theory, Maslow identified human needs and categorized them into 5 levels. These levels are physiological needs, safety needs, social needs, esteem needs and self-actualization needs. It is Important for managers to know this theory because these needs cause tensions which can influence a person’s work attitude and behaviors Maslow’s theory is based on two underlying principles: Deficit principle which states that a satisfied need no longer motivates behavior because people act to satisfy deprived needs Progression principle that states that the five needs he identified exist in a hierarchy, which means that a need at any level can only be put into play after a lower-level need has been satisfied. Maslow identified five levels of human needs, starting from highest to lowest which are: Physiological needs: Physiological needs are basic human needs and biological necessities such food, water, shelter, air, sleep, etc. These needs are the strongest because the physiological needs come first in the person’s search for satisfaction. Ex: rest and refreshment breaks, physical comfort on the job, reasonable work hours Safety needs: Safety needs includes the need of security, protection, and stability in order to be free of the threat of physical and emotional harm. It is important to understand this need and for managers to provide a safe workplace. Ex: safe working conditions, job security, base compensation and benefits Social needs: Social needs are those related to interaction and belongingness with other people and include work groups, friends, family, love and affection, relationships, etc. People seek to overcome feelings of loneliness and alienation and managers must understand this to ensure  employee involvement, production and motivation. Ex: friendly coworkers, interaction with customers, pleasant supervisors Esteem needs: Esteem needs are when people desire self-esteem from both themselves and by others too. Esteem needs include achievement, mastery, respect, competence, prestige, recognition, managerial responsibility, etc. Managers who understand this can help ensure employees and team members feel valued and respected which increases their self-esteem. Ex: responsibility of an important job, promotion to higher status job, praise and recognition from the boss Self-actualization needs: Self-actualization is a person’s need to reach their full capability. It is the highest need because it develops only after all of the foregoing needs are satisfied and includes realizing personal potential, personal growth, self-fulfillment, and creativity. As a manager, it is important to help employees or team members find this, so their employees will be satisfied and productive. Ex: creative and challenging work, participation in decision making, job flexibility and autonomy

The Importance of the Scientific Revolution to Europe

What was the Scientific Revolution and why was it so important to Europe? What did the scientific revolution help develop during time? These are some of the questions that many ask themselves when asked to define scientific revolution and enlightenment in the 17th/ 18th century. The terms â€Å"Scientific Revolution† and â€Å"Enlightenment† are used to describe two important phases that Europe came across during the 1500s to the 1800s. The 17th century scientific revolution left a huge impact on Europe leading it to the 18th century enlightenment. The Scientific Revolution in the 16th and 17th century was the start and new beginning to the modern science. The new discoveries that were being developed during this period led to a more clear way of understanding why things happened. The scientific revolution removed a state of ignorance and error, which eventually led to the age of enlightenment in the 18th century. There were many people who disbelieved the improvements and changes that Europe was going through. Instead of taking the new material as an advantage to the society many people were receiving it as something evil. Thankfully there were some people who approved of the changes and helped with the process. The scientific revolution and enlightenment brought new ideas into how people lived, thought, and worshipped. The idea that ruled Europe was that the universe and everything in it worked according to the â€Å"laws of nature.† These laws according to Europe were sent andShow MoreRelatedA Pre Printing Press Increase And Interest1603 Words   |  7 Pagesbe seen as precipitating religious reform independent of the invention of moveable type. In this view, the lay desire for textual access enabled the acceptance of Luther’s emphasis on the return to scripture, and furthermore prepared early modern Europe for the new technology: ‘The steady rising demand for texts in the late Middle Ages set the stage for the invention of printing’. Indeed, the process of introducing the vernacular Bible had begun before the invention, Cottret uses this evidenceRead MoreThe Enlightenment Period : The Age Of Reason1332 Words   |  6 Pagescentury and the eighteenth century Europe. This development highlighted reasoning, equality and more of a humanistic approach was taken as oppos ed to traditional practice. This period was heavily influenced by scientific thought, skepticism and intellectual stimulation. The plan of this era was to reform society and the way it used reasoning as well as oppose long established customs. Most importantly, the objective was to move forward in the field of scientific thought. The period leading up to theRead MoreLisa Jardine s Ingenious Pursuits : Building The Scientific Revolution1291 Words   |  6 PagesLisa Jardine’s Ingenious Pursuits: Building the Scientific Revolution provides a comprehensive breakdown of the discoveries that defined the Scientific Revolution and the history behind them. The story of the scientific revolution truly begins with a separation between the Catholic Church and the denizens of Europe brought on by the Protestant Reformation. This separation led directly to the questioning of the church and what they deemed to be true. The growing suspicion of the church applied notRead MoreThe And The Fr ench Revolution1419 Words   |  6 Pagesand science dominated in Europe. The philosophies of the Enlightenment placed emphasis on rational and scientific thought and viewed the natural world as one that is governed mathematically and by scientific laws which could be understood by humankind. The Enlightened philosophies brought about this drastic change in all aspects of society which influenced the several revolutions of that time period such as the American and the French revolutions. After the French Revolution, the concepts of the OldRead MoreEssay on The Enlightenment1246 Words   |  5 Pagesthemselves shaped by the threads of Enlightenment thought. These threads did not abruptly end, as some would suppose, with the French Revolution, but can still be seen in various modes of thought today. The importance that the Enlightenment placed upon reason was most obvious in the spheres of science and philosophy. Although this time period saw a rapid increase in scientific knowledge, the overarching idea behind the discoveries was that man could realize his full potential and progress towards perfectionRead MoreThe Scientific Revolution and Its Impact1291 Words   |  5 PagesThroughout the Scientific Revolution, scientists and natural philosophers created a new scientific world by questioning popular ideas and constructing original models. During the 1500s and 1600s, the concept of individualism, the principle of being independent and self-reliant, began to be applied to one’s life. People began to have individual thoughts and started to disagree with commonly believed ideas promoted by the Church. As this way of thinking expanded throughout Europe, scientists lookedRead MoreScientific Revolution- Ap Euro Essay806 Words   |  4 PagesHow did the developments in s cientific thought from Copernicus to Newton create a new conception of the universe and of humanity’s place within it? The Scientific Revolution was a time of scientific questioning in which tremendous discoveries were made about the Earth. It has been referred to as â€Å"the real origin both of the modern world and the modern mentality† (Mckay, 596) and caused the foremost change in the world-view. This revolution occurred for many reasons. Universities were establishedRead MoreThe Decline of the Medieval Church at the End of the Middle Ages678 Words   |  3 Pagesan enduring way. The devastating effect of the Crusades coupled with the spread of the Black Plague launched a changing public view of papal authority. This resulted in a more analytical mindset creating a foothold for the Renaissance and Scientific Revolution . An overtly secular focus took precedence over religious matters and the moral decay of the Church was called into question. This obsession of secular control is most clearly exemplified by the Great Schism that took place from 1378 to 1417Read MoreInfluence Of The Renaissance On Modern Europe1174 Words   |  5 Pageshave transpired in Europe during these years; none of which were more significant than the Renaissance, the Protestant Reformation, and the French Revolution. Of these three events, the Renaissance proved to be the most important event in shaping a modern Europe, with developments in education, class structure/order and social change issues, religion, building construction/use, Medici banking system, art and architecture, human ism, printing and the printing press, and the scientific and medical changesRead MoreHow the Renaissance, Reformation, and Scientific Revolution Led to a More Secular and Democrtatic Society1437 Words   |  6 PagesSocial Revolutions Lead to Political Reform: How the Renaissance, Reformation, and Scientific Revolution Led to a more Secular and Democratic Political Atmosphere. Since the beginning of time cultural views have influenced and shaped our society but never has more change occurred than during the Renaissance, Reformation, and Scientific Revolution. We leave the middle ages a society of Kings and feudal life and emerge with the beginnings of modern political theory. The Renaissance