2008 Us Economic Recession - 1709 Words

INTRODUCTIONS The Global Financial Crisis of 2008 is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s. It resulted in the threat of total collapse of large financial institutions, the bailout of small and big banks by national governments, and downturns in stock markets around the world. In United States, the housing market also suffered, resulting in evictions, foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses, declines in consumer confidence, declines in consumer wealth estimated in trillions of US dollars, and a downturn in economic activity leading to the 2008–2012 global recession and contributing to the European†¦show more content†¦By September 2008, average U.S. housing prices had declined by over 20% from their mid-2006 peak. As prices declined, borrowers with adjustable-rate mortgages could not refinance to avoid the higher payments associated with rising int erest rates and began to default. During 2007, lenders began foreclosure proceedings on nearly 1.3 million properties, a 79% increase over 2006. This increased to 2.3 million in 2008, an 81% increase vs. 2007. By August 2008, 9.2% of all U.S. mortgages outstanding were either delinquent or in foreclosure. By September 2009, this had risen to 14.4% Easy credit conditions Lower interest rates encouraged borrowing. From 2000 to 2003, the Federal Reserve lowered the federal funds rate target from 6.5% to 1.0%.[68] This was done to soften the effects of the collapse of the dot-com bubble and the September 2001 terrorist attacks. The Fed then raised the Fed funds rate significantly between July 2004 and July 2006. This contributed to an increase in 1-year and 5-year adjustable-rate mortgage (ARM) rates, making ARM interest rate resets more expensive for homeowners. This may have also contributed to the deflating of the housing bubble, as asset prices generally move inversely to interest rates, and it became riskier to speculate in housing. Weak andShow MoreRelatedThe Recession Since World War II Essay1228 Words   |  5 PagesThe Great Recession period was between the end of 2007 and the middle of 2009, which makes it the lengthiest recession since World War II. The gross domestic product (GDP) fell 4.3% from its peak in the fourth quarter of 2007 to its trough in the second quarter of 2009, the largest decline in the post-war period. The rate for unemployment was 5 % at the end of 2007 and increased to 9.5% in the middle of 2009 and reached 10 % in October 2009. The credit crunch had many effects on the economy. OneRead MoreThe Events Of The Summer Olympics And Michael Phelps Winning 8 Gold Medals1698 Words   |  7 PagesFrom the year 2008 many of us still remember the important events of the Summer Olympics and Michael Phelps winning 8 gold medals and being the first person to ever do this in history. We also remember the election of the 43rd president of the United States Barack Obama who was the first black president to be elected before going on and being elected for a second term. Out of all of these great events in American history in the year of 2008 the most remember event in this year is the financial turmoilRead MoreThe Great Recession in the year 20081063 Words   |  5 PagesRecession 16Specifically, Freund (2009) defines global downturns as years when world real GDP growth is (1) below 2 percent, (2) more than 1.5 percentage points below the previous five-year average, and (3) at its minimum relative to the previous two years and the following two years. 1975, 1982, 1991, 2001, and 2008 Freund (2009) describes the evolution of world trade following four previous global downturns. She finds that the size of the decline in world trade during these episodes is Read MoreThe Great Recession : Macroeconomics Project1096 Words   |  5 PagesTHE GREAT RECESSION MACROECONOMICS PROJECT Max: Hi I’m Max Lessins. This is Crash Course for economics and today we’ll be discussing the Great Recession, focusing on the fiscal and monetary policies used to recover from the 2008 economic meltdown. First, we need to understand how the Great Recession occurred. It all started with President Ronald Reagan in the 1980s. Reagan was famous for his supply-side economic views (Amadeo 1). He used top-down economics meaning he used government interventionRead MoreWall Street : The Great And Powerful Financial District Of The World1407 Words   |  6 Pagesproblems throughout its existence as recessions and depressions came into play and single handedly pushed America into a financial crisis. As early as 1929 till as recent as 2008 recessions still occur and throughout the existence of Wall Street they will never stop existing. The argument of whether or not a recession could be predicted is a topic that many have different views on, some say yes and some no, this argument will never simply go away as recession will still occur in the future. It isRead MoreFinancial Crisis Essay1119 Words   |  5 PagesIn 2016 it was estimated that the US wealth gap had reached a width previously seen in the 1920s. Since the 1970s America’s middle class has been shrinking, whilst the lower and upper classes have been growing, the former at a much faster rate to than the latter. It’s negative effects are best stated up John Taylor in the Hover Digest: â€Å"On the Fraser index, the United States ranked 2 in the year 2000 and it ranks 14 today. On the Heritage index it ranked 5 in 2008 and it ranks 12 today. On the WorldRead MoreAustralia s Economic Success And Growth Rates1699 Words   |  7 PagesEconomic Background: In the past two decades, the Australian economy has been, and continues to be a very strong and steady economy because of steady GDP growth rates, with an average around 3.5% annually (Heritage.org). Australia has also benefitted from considerably low inflation and unemployment rates. Because of these macroeconomic values, Australia is ranked third in the ranking of regional economies (Heritage.org). The reasons for Australia’s ongoing success is mainly because of the boom inRead MoreGlobal Economic Recession Essay810 Words   |  4 PagesAn economic recession is described as â€Å"a widespread decline in the GDP and employment and trade lasting from six months to a year.† (Word Net) The economic recession is an international problem that has been affecting countries like the United States, China, United Kingdom and others for over two years. The latest recession began when house prices and sales began to fall and large drop offs in business investments started. Ano ther causing factor of the recession was citizens with bad credit buyingRead MoreLending And Shadow Banking1444 Words   |  6 PagesIn 2008, one of the worst financial crises since the Great Depression occurred. The severity of this collapse cannot be understated as demonstrated by the bankruptcy of Lehman Brothers, the fourth largest investment bank in the US, and with many other financial institutions such as Merrill Lynch and the Royal Bank of Scotland having to be bailed out. In addition, the Global Banking System was within a whisker of collapsing and if it where not for the trillions of dollars invested in the system byRead MoreEssay On The United States Recession781 Words   |  4 Pagesdoing research on all the topics you gave us. After doing the research I decided I was most interested in the United states recession in 2008. It also interested me in finding out what we have done, in the middle of doing, and what we are going to do to get out of the recession. I decided to choose this topic about the US economy and what we were and are doing to get out of the recession because I wanted to learn more about why we went into a recession and how we are now working on how to get out

Baptism During The Early Church And Medieval Eras Essay

Baptism in the Early Church and Medieval Eras All Christians know about the Great Commission, â€Å"Go therefore and make disciples of all nations, baptizing them in the name of the Father and of the Son and of the Holy Spirit, teaching them to observe all that I have commanded you. And behold, I am with you always, to the end of the age† (Matthew 28:19-20, English Standard Version). In that command, Jesus tells us to baptize in the name of the Trinity. What does the word â€Å"baptism† mean? Baptimsa and sometimes baptismos, the Greek word origin of â€Å"baptism†, can translate to â€Å"immersion† or â€Å"bathing† without any religious implications (McGowan, 2014). Nearly every Christian church practices baptism with a religious implication; however, they do not agree on God’s activity in, the qualifications for admitting a person to, and methods of administering baptism. For instance, many churches do not baptize people until they become adults and make a profession of faith, while others encourage baptizing an infant soon after they are born. The practices and philosophy for baptism changed throughout its use in the New Testament, the Early Church, and the Medieval era. New Testament Views of Baptism Sproul articulates, â€Å"the baptism of John and the New Testament rite that we celebrate in the Christian community are not identical (2014). The type of baptism John did was introduced in the Old Testament and directed to the Jewish nation. Between the Old Testament and the New Testament,Show MoreRelatedSt. John the Baptist in Paintings2642 Words   |  11 Pagestime of Jesus’ ministry. Many know John as a non-divine apocalyptic preacher who claimed baptism would help one get into heaven, and it would be disadvantageous to ignore baptism. John is relevant to understanding historical Jesus not only because he baptized Jesus but because of their conflicting similarities. John and Jesus were both apocalyptic preachers, in the Essene Jewish sub-group, and popular during antiquity. Many scholars actually believe John was more popular in antiquity. Because ofRead MoreMedieval Vs. Medieval Era1506 Words   |  7 PagesThe Medieval, or Middle, Ages in Europe have often been called the Dark Ages, since they seem to have been lacking in many ways. However, the Church was always shining the light of the Gospel in even the darkest of places. â€Å"In the very bosom of this doomed society, a power remained which was capable of giving meaning to the drama, of bringing order out of disorder, of integrating the Barbarians into civilization and of using their youthful energies to restore the world to vigor and health. ThisRead MoreWitchcraft And Superstition In Medieval Europe1654 Words   |  7 PagesWitchcraft and superstition in Medieval Europe The concept of witchcraft and superstition stretches over a long period of time. The idea became familiar around 560 B.C when the two old testaments denounced witches and the belief in them. The idea is said to have originated in Europe, rapidly spreading around the world. Medieval Europe was an era that solely believed in magic, witches and the supernatural. In the Middle Ages witchcraft was viewed as a heinous crime that was punishable by deathRead MoreAnti Semitism By Jacob Von Konigshofen1196 Words   |  5 Pageswritten by Jacob von Konigshofen was an example of anti-Semitism during the medieval Europe. In the document, Konigshofen outlines the catastrophes in Strasbourg when the Jews admitted to committing the heinous act of poisoning the water wells which they attributed to causing the Black Death. To understand the document at hand, one must understand the circumstances that motivated the cremation of the Jewish people in Strasbourg. In the early fourteenth century, Europe faced a ravaging and crippling economicRead MoreReligion, Superstition Witchcraft in Early Modern Europe1539 Words   |  7 Pages|HIST208-13B (HAM) | |Religion, Superstition Witchcraft in Early Modern Europe | Early Medieval Period: Mid-5th – mid 9thC (c.450-850CE) Augustine died in 430 as the Vandals were besieging his city of Hippo. Some 20 years before, Rome had fallen. In the West the ancient empire was a thing of the past; inRead MoreChristianity And The Rise Of Christianity1395 Words   |  6 Pagesof Judaism during the 1st century in ancient Israel and spread to the Americas and the rest of the world through colonization and Christian missionaries. Christianity has played a conspicuous role in the shaping of Western civilization. The impact and the rapid spread of this religion eventually came to dominate the Western world. Christianity Christianity is the monotheistic religion based upon the life, oral teachings and miracles of Jesus of Nazareth. Jesus lived in Palestine during the firstRead More Humanities in the Early, High And Late Middle Ages Essay2132 Words   |  9 Pageshumanities and the effects and developments that the humanities of the Early, High and Late Middle ages had on society. We have made some very interesting findings and come up with some intriguing conclusions. The findings are most definitely in condensed form for the simplicity of our assignment, although if given an unbridled word count, surely we would demonstrate volumes of text form such interesting periods. The Early Middle Ages Before we can talk about humanities, we must first defineRead MoreEssay about Humanities in the Early, High and Late Middle Ages2248 Words   |  9 Pageshumanities and the effects and developments that the humanities of the Early, High and Late Middle ages had on society. We have made some very interesting findings and come up with some intriguing conclusions. The findings are most definitely in condensed form for the simplicity of our assignment, although if given an unbridled word count, surely we would demonstrate volumes of text form such interesting periods. The Early Middle Ages Before we can talk about humanities, we must first defineRead More The Rise of Christianity and Christian Art Essay2039 Words   |  9 Pagespopulations of the Roman Empire, by the 4th century A.D the Christian religion had a huge impact to the Greeks and also the early Byzantine Empire. But by this time Christian communities had been established in all the important cities in the Roman Empire. In 313 the next emperor Constantine legalized Christianity throughout the empire. He also granted many privileges to the church, by this time over 1/10 of the population of Rome were Christian and the emperors who succeeded Constantine except for oneRead MoreNotes on Medieval Europe and Japan Essay2169 Words   |  9 Pages02.01 Travel Journal 1. How did manorialism develop in Medieval Europe? †¢ Some people moved to countryside and focused on agriculture. †¢ Small, independent economies arose, centered on large agricultural manors. †¢ system controlled by powerful warrior landlords, built small armies to protect manor. †¢ Landlords also leased out land in exchange for loyalty. 2. How did the idea of feudalism emerge as an historical construct? †¢ 3. What role

Exam Questions free essay sample

Advanced countries, which have the capability to innovate, as well as high-income levels and mass consumption, will sell the item first to its domestic market, then will become initial exporters of goods to other technically advance countries. After the product becomes adopted and used in the world markets, production gradually moves away from the point of origin. The advanced country loses their exports initially to developing countries (who will import and later manufacture these goods) and subsequently to less developed countries. Eventually, the original advanced country (original innovator) will become importers of these goods because they will have begun producing other new products. The duration of each stage of the cycle varies with the product and the type of management supporting it. Understanding the product life-cycle stages allows a company to fully take advantage of market opportunities by either establishing or protecting a competitive advantage through a long-lasting market presence. The main usiness reason for extending the product life-cycle would be to increase sales through longer existence in the marketplace. Certain consumers will embrace a product at different stages of the product life cycle so by extending each stage of the cycle, there is a better chance of exposure to the targeted consumer group. A commonly used example of this is the invention, growth and production of the personal computer. Stage one is considered the new product stage and this is where domestic production essentially begins. After a period of research and development, a new product is introduced to meet local (or national) needs. The product is created, produced and consumed in the domestic market and virtually no trade takes place. During the introduction phase, the innovating company does not know the extent to which a profitable market exists. For instance in the late 1970’s and into the early 1980’s, during the early stages of the personal computer, IBM and Apple pc’s were produced in the US and aimed for office and small business use. Personal computer use spread quickly throughout the domestic market as more and more households made purchases for increased personal productivity and gaming purposes. In stage two, the maturing product stage, domestic production peaks as the demand for the product significantly increases since the consumer base begins to acknowledge the product value. This stage is signified by a period of growth as sales and a rise in profits as mass-production techniques are developed and foreign demand expands (developed countries). At this stage the product is now exported to other developed countries and both domestic and foreign competitors emerge. A copy product is produced elsewhere and introduced in the home country (and elsewhere) to capture growth in the home market. Based on production costs, manufacturing moves to other countries. As was the case with Apple PC’s, production in this stage moved out of the original facility and into manufacturing plants in California and Texas as well as distribution warehouses in both the US and the Netherlands. Stage three is the standardized product stage. This is when the market for the product stabilizes and domestic production declines. The product becomes more of a article of trade and companies are compelled to reduce manufacturing costs which is the main reason for moving production sites to countries with lower labor costs. As production moves to developing countries, in turn, they begin to export the product to developed countries. A product saturation phase is experienced as sales level off and the first signs of decline occur. In the personal computer industry, the US market low-priced brand-name imports from producers such as South Korea’s Hyundai and Samsung. Several Taiwanese manufacturers exported millions of personal computers both to the US and other countries, a large portion which are produced for foreign distributors. To contest this, Apple condensed their product line, expanded use of industry standard parts, outsourced component manufacturing and streamlined warehousing operations. There is a final stage of decline in which poorer countries constitute the only markets for the product and import competition is very strong. At this point, almost all declining products are produced in less developed countries. The PC is not necessarily a good example of decline, for one because there is a weak demand for computers in less developed countries, but rather an example of technology that is ever improving which would make earlier versions of computers and related software obsolete. Normally, a product may finally disappear from the market at this point, however, PC technology continue to improve. There is no threat of the PC disappearing, but certain versions will eventually become dinosaurs. . Explain Porter’s Diamond in terms of Nokia’s development as an international mobile telecom powerhouse. Michael Porter’s â€Å"theory of national competitive advantage† framework was the product of a study of patterns of comparative advantage among industrialized nations and looked at sources of competitive advantage from a national context. The diamond-shaped theory can be used to evaluate both a firms’ ability to function in a national market as well as a national markets’ ability to compete internationally. Porter’s theory of international trade comes from the interaction of four country- and firm-specific elements: 1. Factor conditions – this is a country’s legacy of production factors that affect its ability to compete on an international level such as human resources, physical resources, knowledge resources, etc. Porter looks beyond the most basic factors of land, labor and capital to include the educational level of the workforce and the quality of the country’s infrastructure. 2. Demand conditions – demand in the home market helps the company to establish a competitive advantage. A highly developed domestic market will pressure a firm to innovate faster and to create more advanced products than those of competitors. When the domestic market for a particular product is larger locally than in foreign markets, the â€Å"home† firm will devote more attention to that product which leads to a competitive advantage when exporting begins. 3. Related and supporting industries – these related and supporting industries provide cost-effective inputs and participate in the process of upgrading which serves to stimulate other companies in the chain to innovate. When local supporting industries are competitive, the â€Å"home† firm experiences more cost-effectiveness and innovation. This effect is reinforced when the supporting industries (suppliers) are strong competitors as well. 4. Firm strategy, structure and rivalry – the way in which companies are created and managed are important for success. The presence of rivalry in the domestic market is important because it creates pressure to continually innovate in order to promote competitiveness. Other conditions that affect the diamond theory are: Government – obviously the government can influence the supply conditions of key productions factors, the demand conditions in the domestic market and the competition between domestic firms. The government can also intervene on several different levels (local, regional, national, international). -Chance – clearly, chance events will occur that are outside the control of the domestic firm. Chance is important because it can create or disrupt competitive positions. Porter’s Diamond in terms of Nokia Factor conditions: -Finland is one of the world’s most homogenous and stable societies as well as having very sophisticated consumers; -As a country, Finland has invested money into a strong educational system which gives them an excellent educational system with which to provide the necessary work force; -Finland has a uniform, market-oriented government; Nokia, with close ties to national government, has helped propel technology, legal issues and export opportunities. Finland as a whole has a national competitive strategy; -Substantial public investment in telecommunications-related RD which focuses on wireless technology; -Finland has a tradition of innovative engineering and telecom industry -Due to harsh physical and natural conditions, options for a land-based wired system was a very expensive option, making wireless digital systems a relative bargain for the same price; -Most of the population speaks English; -Finland was an early adopters of the internet and other wireless activities. Demand conditions: As mentioned in the Factor Conditions, a sparsely populated area supports adoption of wireless devices; -The weather and physical supports mobile phone over face-to-face conversations; -Nationally, a heavy usage of texting and other wireless message services; -Finland a test market for wireless applications; -Nordic Mobile Telephone created the world’s largest single mobile market. Related and Supporting industries: Huge RD spending by government and companies; Finland, as a whole, offers strong venture capital, and a strong manufacturer network; -Due to the nature and need of wireless communication, there is a high number of specialized companies due to fragmented market; -There are approximately 3,000 Finnish firms in telecom and IT related products and services; -There is a large local supply allowing for highly customized contributions Firm strategy, structure and rivalry: Significant historic reasons for highly competitive landscape within Finland; - A very strong export-centered commerce experience; Sturdy network and links between companies, banks and governments; -The Regional Development Agencies Act favors intense rivalry; -History of competition in telecommunications services throughout the 20th century; -Finland was early to deregulate in telecom-related industries; -A high number of telecom firms create an active local rivalry in wireless communications; -There is no monopoly on any of the value chain parts of telecom and a very healthy competition between companies; -European consumer demand (roaming, etc. ; Finland has been a part of the European Common Market since 1995. Other conditions that affect the Diamond Theory: Government oVery stable with a long-term view (low turn-over with 6-year terms); oStrong initiatives to improve national innovative capacity; oAssurance of technological neutrality; oOpen socialist economy; -Chance oConditions in Finland provided a unique medium for Nokia’s success. Creating, ma intaining and updating land-based wired communication networks can be very slow and very expensive which made wireless digital systems seem a virtual bargain. . What is Absolute Advantage and how does Intel’s global position in mircoprocessors reflect this? Adam Smith developed the theory of absolute advantage which asserts that one party (a nation, a firm, etc. ) benefits from manufacturing more output than others since it is possess a unique resource or commodity. This particular resource or commodity can be a certain method, a distinct knowledge or manufacturing process that increases production efficiency, and thus reduces the relative need for additional resources. The theory holds that different countries (or firms) produce some goods more efficiently than others based on those particular resources or commodities. Limitations to the theory exist if there multiple unique resources or commodities once the hypothesis expands to include multiple unique resources, the absolute would turn to a comparative advantage. Generally, in international trade, countries export goods/services when they have an absolute advantage in that product area and will import goods/services when another country (or firm) has the absolute advantage. Intel and Dell had a unique relationship in this regard – Intel had set the industry bar in terms of microprocessors and Dell, using Intel exclusively, became one of the strongest PC manufacturers in the world based on their distinctive marketing tool of â€Å"custom-made† computers. Both firms benefited from this relationship as they both had an absolute advantage on the items they produced. Further, according to the theory, if a country (or firm) has no absolute advantage in any product or service, no trade will occur. For instance, if both Intel and Dell manufactured microprocessors and PC hardware, no trade would exist between them – they would be direct competitors since no benefit would exist to either of them. A competitive advantage occurs when a firm acquires or develops a product or feature that allows it to outperform its competitors. To gain competitive advantage, the firm strategy is to manipulate that unique resource or commodity over which it has a direct advantage which gives them the ability to generate a competitive advantage. Superior performance outcomes and superiority in production resources reflects competitive advantage, and in doing so, gives a firm absolute advantage over an industry (or product). In the case of Intel’s global position in microprocessors, their strategy has been to continually introduce cutting-edge technology which ultimately means that consumers pay for the research and development of the speeds of new chips. It is a cyclical process, which demands more research and development of even faster, smaller products. The company does this to constantly renew consumer need which helps keep margins high. This business model of Intels can be compared to the auto industrys planned obsolescence. The introduction of new models means the previous model is not as good, or new, anymore. As such, consumers feel compelled to purchase the newest, latest, greatest product. The trends are pushed by more powerful applications, which in turn create the need for new stronger, faster microprocessors and other new generations of computer products. Here are some of the contributing factors in Intel’s absolute advantage in the microprocessing industry: 1. Distinct ability to draw a prevailing share of the markets attention Intel benefited from a very exclusive and significant relationship with Dell (â€Å"Intel Inside†) until May 2006. With Dell being a major player in the computer hardware market, they offered â€Å"custom-made† computers with an exclusive agreement to offer only Intel processors inside. 2. Capability to impose innovative obstacles which created more labor for any competition Not only did competitors already struggled to meet specs for the industry standards, they also experience issues keeping up with Intels production speed and product features. 3. Drive costs down and keep profits up – Intel was able to make its partners (and consumers) pay for this with an average selling price of over $150 a unit. PC makers had to accept this because at the time, Intel was only choice. 4. Strong reputation as the â€Å"reliable† standard – PC makers and consumers had not reason to look for alternative processors based on Intel’s innovation combined with the lack of reliable parts produced by competitors. 5. Economy of scale – Because the per unit cost of manufacturing depends on the size of the firm’s output, the larger the firm, the greater the scale of manufacturing benefits. Due to Intel’s economy of scale in the microprocessing industry, they could potentially monopolize the industry. Based on Intel’s strengths mentioned above as industry leaders (#2) as well as their ability to drive costs down while keeping profits up, Intel was untouchable and could manage to win any price war brought on by the competition. The Intel quality was also so high that the unreliable chips made by the competition almost, until recently, didn’t even create much of a price war since there wasn’t another game in town. 4. Explain Comparative Advantage? Then describe the development of India’s software industry and how it reflects one theory of competitive advantage. Comparative advantage theory is an international trade theory attributed to David Ricardo that indicates that firms or nations trade because they have superior productivity in a particular industry and can produce that particular good or service at lower marginal and opportunity costs than another party. In simple terms, this theory explains how trade can create value for two parties even if one party can produce all goods with fewer resources than the other. The thought being that each country can gain by specializing in the goods/services where it experiences this cost/efficiency advantage and trade that good/service for another where they do not posses the same advantage. Governments may attempt to counter comparative advantage by raising trade barriers, imposing high tariffs, and allowing newer and relatively uncompetitive industries ample time to become established. Comparative advantage is an appropriate theory to explain why particular countries export more services that support the global supply chain of both multinational enterprises and domestic firms. The source of a nations comparative advantage evolves from the mixture of its own factors of production such as availability of workforce, labor skills, access to capital, land and technology. For example, India is an excellent example of a country that has developed a highly efficient and low-cost software industry. This industry supplies not only the creation of custom software, but also call centers for customer support and other information technology services. The Indian software industry is composed of many subsidiaries of multinational corporations as well as independent companies. This question focuses on the rise of the software industry in India. As a relatively poor country, India in the past has not normally been thought of as a nation that is capable of building a major presence in a high-technology industry (e. g. , software). However, over the last decade or so, the Indian software industry has become an important force in the global software market. Among others, the main factors that have boosted India into this position are their large number of well-educated, English-speaking work force, a strong national work ethic coupled with technical experts who are paid only a fraction of the salary (including overhead) earned by U. S. counterparts. Additionally, the low cost of international telecommunication networks further enhances the comparative advantage of an Indian location for outsourcing. India has a comparative advantage in those services that are tradeable such as business process outsourcing and programming services. In looking at IBMs outsourcing and how it utilizes both a US workforce and an outsourced Indian workforce, it is important to identify the relative strengths of each. For the mainly technical aspects of the job, IBM realizes cost savings by using the Indian workforce. Since programming wages are low in India and the average productivity of Indian programmers is somewhat comparable to the productivity of US programmers, then India can potentially enjoy a comparative advantage in programming. For those aspects of the job specializing in knowledge of a clients business, the US workforce is well-matched to do the job. The complementary nature of these two separate workforces rose out of the need of IBM to compete in more than just one area in order to succeed. Utilizing the Indian workforces allows IBM to realize a cost savings that can be used in other areas of their business. India, on the other hand, benefits from the trade with IBM by realizing large employment in the country as well as a boost to the economy that will only help to continue developing the country. 5. Explain briefly the common patters of successful Japanese entry into global markets once dominated by US firms such as RCA, Xerox and GM. In the business world, an initial direct attack of a competitor is usually most advantageous to the defending company since the attacking company usually ends up spending an exorbitant amount of resources without ever actually reaching its goals. This is a prime description of certain large companies such as General Electric, Xerox and RCA back to the 1970’s when all of them waged war against IBM in the computer market. All suffered very heavy monetary losses and as a result, did not engage further in the computer industry. The gamble cost these companies devastating sums upward in the millions. A company’s objective is to make use of its resources in such a way that allows them to maximize the market share. Direct attacks don’t necessarily serve that purpose, but rather the indirect attack seems to be more successful. The successful market penetration by Japanese companies was facilitated by an indirect approach. As one example, Xerox was an established leader in the photocopier field and by the 70s ruled the copier market, controlling the majority of the markets share. However, within a decade, Japanese companies outwitted Xerox, and proceeded to follow suit in other industries (such as the auto industry) by launching indirect attacks on the smaller portion of the consumer base, and eventually swallowing up the entire market. The Japanese discovered that Xerox was marketing and supplying large copiers mainly to only large companies. That left millions of smaller companies using more local and less known supplies to meet their copying needs. These smaller companies couldn’t afford by purchase on the large scale of Xerox, nor did they have the physical space to store the industrial-size equipment. Enter the Japanese market with companies focusing on this weakness and entering the market focusing on the needs of the smaller organizations. Because there was no immediate effect on sales, Xerox took no notice of the market competition. As soon as the Japanese companies gained traction in this market, by focusing on the need of smaller products, lower prices, simplified technology, and distribution through office-supply dealers, tactics began to change as the Japanese continued to build upon their consumer base. The product ranges broadened with superior technology and more product choices. Towards the mid 80’s, the Japanese had made a considerable difference in the size of the market share, leaving Xerox behind and struggling. The Japanese business culture has seen significant success with a strategy of focusing in on an a smaller, overlooked, neglected, or emerging market segment and targeting in on the weaknesses of the competitor thereby gaining an advantage that affords a company the grip it needs to make gains in the market segment. Once that grip is found, the Japanese company consolidates their products position by mobilizing all resources and expanding into the rest of the market.

Drug-Free Workplace free essay sample

The intent of the bill was to establish the foundation of a drug-free workplace in the areas that the federal government could affect outside the federal government; i. e. , the workplaces of federal grantees and contractors. The Drug-Free Workplace Act of 1988 does not mention drug testing at all. However, many companies have made drug testing a requirement. The Drug-Free Workplace Act of 1988 has 7 compliance requirements. (Miller, 1991) Mechanical MD is the name of the company that I do accounting for. Mechanical MD was started at the end of 2006. As of right now, there are no company polices in place because there are no employees, only the owner and myself. However, we would like to put a drug-free workplace policy into place. The first compliance requirement of the Drug-Free Workplace Act of 1988 states the following: to publish a statement notifying the employees that the unlawful manufactured distribution, dispensing, possession, or use of a controlled substance is prohibited in the workplace and specifying what actions will be taken against employees for violations of the prohibition (Miller, 1991). Our first statement of our new drug-free workplace policy states: Unlawful manufacture, possession use or distribution of illegal drugs while working at Mechanical MD is prohibited. Use of legal prescription drugs in excess or that do not have a prescription will be in violation of this policy in addition to use of alcohol or over the counter drugs in excess to the extent the employees health or safety are in jeopardy. Employees who violate the policy are subject to disciplinary action up to and including termination. (Sample Drug Free Workplace Policy, 2006). The second compliance requirement of the Drug-Free Workplace Act of 1988 states: establish a program to inform employees of the dangers of drug abuse in the workplace and the availability of drug counseling, rehabilitation, and employee assistance programs (Miller, 1991). Mechanical MDs company drug-free policy will state: Substance abuse in the work place affects everyone. When an employee drinks or uses drugs on the job, it not only hurts him/her, but also, threatens public safety; damages job performance; and results in costly expenses both to the company and the employee. Even if drug use is outside the workplace, it can affect job performance. Substance abusers are ten times more likely to miss work, more likely to be involved in on-the-job accidents and are less productive. And while they arent working or carrying their workload, someone else has to pick up the slack. (Sample Drug Free Workplace Policy, 2006). Mechanical MD will also state that the company reserves the right to sanction treatment of convicted persons who wish to continue their employment following a conviction. The third Drug-Free Workplace Act of 1988 compliance requirement states: Provide all employees working under the contract with a copy of the policy statement (Miller, 1991). Mechanical MD will provide a copy of the employee handbook to all employees. When an employee of Mechanical MD receives a copy of the employee handbook, he/she will sign a handbook release form stating that they have received a copy of the handbook. The fourth Drug-Free Workplace Act of 1988 compliance requirement states: notify employees in the policy statement that as a condition of continuing employment, the employee will abide by the statement and notify the employer within 5 days if he or she is convicted of any criminal drug offense occurring in the workplace (Miller, 1991). The Mechanical MD employee drug-free policy will state: Any employee found to be arrested must notify the company within 5 days of the conviction and indicate which law has been violated. (Sample Drug Free Workplace Policy, 2006). If the employee fails to tell the company about the conviction and the company finds out at a later date, the employee will be terminated immediately with no opportunity to receive drug or alcohol rehabilitation. The fifth compliance requirement of the Drug-Free Workplace Act of 1988 states: notify the contracting officer of an employee conviction within 10 days after the contractor learns of the conviction (Miller, 1991). Mechanical MD does not have a contracting officer; therefore, this compliance requirement does not apply. The sixth compliance requirement of the Drug-Free Workplace Act of 1988 states: within 30 days of receiving notice of the conviction, impose a sanction on the convicted employee up to and including termination or require the employee to satisfactorily complete an approved drug rehabilitation program (Miller, 1991). Mechanical MDs policy will state that if the company decides not to terminate the employee, the employee is required find a way to complete the required transportation to and from the required jobs without operating a motor vehicle. The employee of Mechanical MD will also be required to seek a form of drug or alcohol treatment and provide the company with proof of this treatment for at least 90 days. The seventh compliance requirement of the Drug-Free Workplace Act of 1988 states: make a good faith effort to continue to maintain a drug-free workplace by meeting the requirement of the Act (Miller, 1991). Even though the Drug-Free Workplace Act of 1988 does not require drug testing as part of having a drug-free workplace, Mechanical MD will require drug-testing as a part of being hired for to work for the company. Mechanical MD will also state in the company drug-free policy that random drug testing will be done periodically to continue to provide a safe work environment for all employees. The Mechanical MD supervisors will also be required to attend training courses to identify and manage substance abuse issues in the workplace. Mechanical MD will provide the safest possible work environment for all of the companys employees. The company will also abide by all the compliance requirements according to the Drug-Free Workplace Act of 1988.