Capitalism Europe

Businessmen transformed economic activities by learning to take advantage of market conditions by alluding efficient networks of transportation and communication and by creating a system of regulating the price of a product based on supply and demand. 4. The institutions that supported early capitalism were banks and joint-stock companies such as the English East India Company and their Dutch counterpart. 5. The Dutch and English supported the growth of capitalism because the English East India Company and their Dutch counterpart were two large trading companies that spread the ideas of capitalism on a larger scale than ever before. . The Joint-stock companies set p by the ideas of capitalism and the English/Dutch would be authorized to conquer, explore, and colonize distant lands in search of commercial opportunities. Therefore, early capitalism developed in the context of Imperialism, as European peoples established fortified trading posts in Asia and colonial regimes in both South east Asia and the Americas. Imperial expansion was important to the spread of capitalism, since it enabled European merchants to get natural resources that would be distributed. 7.Crafts and guilds had fixed prices and wages and they regulated standards of quality. They did not seek to realize profits, therefore discouraging competition and resisted technological innovation. 8. The putting out system was system in which capitalist entrepreneurs delivered unfinished materials to rural households where the artisans would finish a part of the product in their homes (similar to an assembly line) and pass it on until the product was finished and then it was giving to the entrepreneurs, and then the artisans were paid for their labor. 9.The advantages of the putting out system were that because of the plethora of rural labor, entrepreneurs spent relatively title on wages and profited greatly. 10. The putting out system introduced large sums of money to the countryside which brought materi al benefits and disrupted the long-established patterns of rural life. The standard of rural life rose dramatically; households acquired more goods and rural people wore nicer clothes, ate better food, and drank better wine. Individuals had the opportunity to become wealth and stop relying on neighbors and family. Young adults and women began to earn their own incomes. 11.In Eastern Europe lacked cities so there was no alternative to working in the countryside, o landlords took advantage on this situation by forcing peasants to work under extremely harsh conditions whereas in Western Europe there were better working conditions and more cities. Western Europe was far better in comparison to Eastern Europe in the area of labor. 12. Capitalism posed moral challenges. Medieval theologians believed that profit-making was morally dangerous, since profiteers looked to their own advantage rather than the welfare of the larger community. The Church considered interest an unearned and immoral profit. 13.Adam Smith's response was that society loud prosper when individuals pursued their own economic interests. 14. Although Capitalism may not have necessarily caused changes in family life, it encouraged developments that helped to define the nature and role of the family. Capitalism favored the nuclear family; it offered opportunities doe independent families to increase their wealth. As these families became more important economically, their importance socially and emotionally increased. Love became more important in marriage (not simply strengthening alliances) and parents and their children became more important to family life.

Analyse the effects of domestic and global free trade Essay

Analyse the effects of domestic and global free trade and protection policies on the Australian economy Free trade is the unrestricted purchase and sale of goods and services between countries without the imposition of protection such as tariffs and quotas. This enables economies to focus on their core competitive advantage(s), thereby maximizing economic output and fostering income growth for their citizens. Australian exports rose from $66.6 billion in 1990-91 to $300.4 billion in 2012-13, with an average growth in export volumes of 4.6 per cent per annum since 1990-91. This is reflective of Australia’s proactive actions to phase out protection since the 1970s. The major effects of domestic and global free trade and protection policies on the Australian economy are structural change, competitiveness and efficiency, unemployment, living standards and economic growth. A move to trade liberalisation since the 1970s in Australia has drastically changed the structure of the economy. Structural change involves changes in the patterns of production that reflect changes in technology, consumer demand, global competitiveness and other factors. Protection polices affect the natural change in the structure of an economy, often leading to a decline in globally competitive industries. In 2011-12 Australia’s net tariff assistance was $1.1 billion, a very small percentage of GDP (less than 0.1%). Tariff levels in Australia have fallen from a massive 36% in 1968-9 to 1.8% in 2011, thus illustrating why Australia is one of the most open economies in the world. However, this has caused both positive and negative effects; the positive being that Australian industries have become more competitive and efficient as they are forced to focus on their comparative advantage; the negative is that heavily protected industries have suffered decline and job losses. Australia’s rural and manufacturing industries have suffered sustained negative growth over the past decade due to a reduction in domestic protection policies. On the contrary, the minerals and metals industry has grown significantly over this period. The removal of protectionism can jeopardise employment, especially in import competing industries and low-skilled labour industries. For example, Toyota and Holden will close their manufacturing operations partly due to tariffs on imported cars being reduced from a previous 50% to 5% in 2010, ending Australia’s car manufacturing sector by 2017. However, removing protectionism should lead to new employment opportunities and up-skilling of  the workforce into new and emerging growth sectors such as Biotech and Green Engineering industries etc. Australia’s composition of exports was relatively equal in 1989-90 with 33% being minerals and metals, rural 23%, services 20% and manufacturing 13%. As of 2012-13, minerals and metals dominated Australia’s composition of exports at 57%, whilst rural exports dropped to 12%, with a general decline in others. This not only shows the large impact of the mining boom on the Australia’s composition of exports, but also how a move to free trade has influenced the structure of the economy, especially agriculture and manufacturing. Globalisation has been both a benefit and a hindrance as regional trade blocs and other agreements work on a ‘most favoured nation’ principle, making export-competing industries suffer all around the world in small economies, and limiting the advancement of global free trade. Because Australia has a high level of agricultural trade (12% of total exports), and is a relatively small economy, they suffer disadvantages as a result of protectionist policies of other nations and trading blocs. One of the most infamous trading blocs in relation to agriculture is the European Union. The EU for several decades has subsidised agricultural production through the Common Agricultural Policy. Additionally, farmers receive significant subsidies in other areas of the world, such as the US, Japan, Korea and Switzerland. In 2012, the Australian Bureau of Agricultural Resource Economics and Sciences (ABARES) estimated that the removal of China and Korea’s wine tariffs would increase the export revenue of the Australian wine industry by $47 million. Unfortunately, there has been poor progress in reducing agricultural protection in recent years. In fact, if global trade liberalisation was achieved by the WTO’s Doha Round, it could have boosted Australia’s agricultural exports by US$9 billion by 2020; thus displaying how highly protectionist economies and trade blocs adversely affect the Australian economy. Since Australia’s first free trade agreement (FTA) with New Zealand in 1983, Bilateral and Multilateral FTA’s have been a great advantage and focus in securing economic prosperity for Australia. Australia’s two-way trade in goods and services was A$616 bn in 2012. Australia has seven FTAs currently in force with New Zealand, Singapore, Thailand, US, Chile, ASEAN (with New  Zealand) and Malaysia. Together, these countries account for 28% of Australia’s total trade, which displays the great benefit of bilateral FTAs to the Australian economy. Additionally, there are four bilateral FTA negotiations currently in place, two of which are substantial trading partners; China, being Australia’s largest export market (A$78.7 bn) and Japan, being Australia’s second largest export market (A$49.8 bn). The Japanese Free Trade Agreement has been negotiated, and will be a great benefit to the Australian economy, especially the agricultural sector, for example tariffs on beef and dairy exports will be reduced from 38% to 23.5% over 20 years. Australia’s main multilateral agreement is the AANZFTA which came into effect in 2010, and covers 20% of Australia’s trade in goods and services and effectively creates a free trade area of over 600 million people. This agreement is forecast to boost the Australian economy by US$19 bn during the decade following its implementation in 2010. These examples of Australia’s FTAs show the positive effects of global free trade on the Australian economy. As Australia continually lowers protection levels and trade barriers, there will be both positive and negative effects, leading to a long term decrease in the current account deficit. When protection is lowered, there will be a short term increase in the CAD, as tariffs and quotas wil l be waived leading to higher export volumes. However, since less protection leads to a more competitive economy, the CAD will decrease in the longer term as exports will generally increase. The government’s reluctance to lower trade barriers up until the 1970-80s is arguably the reason for Australia’s lower competiveness and higher CAD, being a deficit of $23 bn in 2012, and $10 bn in the fourth quarter of 2013. Australia’s growth in exports reached 6% in 2012, double the average rate over the last 10 years. However, this has not contributed to any decrease in the CAD, as export prices declined by 10.2%, and Australia’s terms of trade decreased by 10.7% mainly due to the slowing of the mining boom. As protection levels reduce, hopefully the competitiveness of the Australian economy picks up during this period of structural change, leading to a long term decrease in the CAD. The effects of domestic and global free trade, although mostly negative in the short term, will increase Australia’s competitiveness and benefit the Australian economy in the long term. Unfortunately, many regional and unilateral protection polices still remain in p lace, disadvantaging the  economy in many ways, and limiting the advancement of global free trade.

Controlling Organized Crime Essay

The following research will discuss how to control organized crime from different perspectives, principles, and theories. It will also encompass the problems presented by organized crime and the relationships it must establish to be successful and for its survival. This research will also explain how federal laws limit law enforcement agencies effectiveness to combat organized crime. There are probable solutions to some of the issues that we have today with organized crime tribunals. Organized crime groups are criminals that operate by conducting lawful and unlawful acts. In many occasions these organized crime groups own legitimate business, which works as a tool to launder money and camouflage their illegal activities. Criminal organizations are similar to major corporations in the aspect of providing a product that the public wants and demands for. They provide to their market an array of illegal comforts and not limited to; gambling, prostitution, narcotics, weapons, and stolen e lectrical products at a marked down rate. Criminal organizations would not be involved with any acts that do not result in a profit. Law enforcement studies have determined different theories that can assist in determining the reasons why the public in a particular geographical location have decided to partake in criminal activities. Many people fall to be victims to organized crime. They are affected by the drugs and other illegal activities that are brought into their community. Some victims are killed by organized crime groups for an array of reasons. Criminal justice scholars have established three major theories that assist law enforcement agencies to determine the origin of these criminal organizations. The alien conspiracy theory mainly consist of immigrants with different cultural believes and way of life (Lyman & Potter, 2007). In most cases this group of people have joined together to fight against government suppression. It is important to understand these reasons so law enforcement agencies can gather information by using tactics that will not raise the criminal organizations suspicions and be able to gather intelligence. The community and social networks in geographical locations are important factors that must be taken in to consideration when studying these criminal groups. Law enforcement agencies must determine if these locations life demands exceed the individual’s resources. When an individual is in a bad situation they may analyze the pros and cons of a criminal life and rationally decided that there are better opportunities and benefits turning to a criminal life style, this is called the rational choice theory (Lyman & Potter, 2007). To control criminal activity law enforcement has implemented severe punishments for crimes that relate to providing illegal substances or acts to the public. This method of controlling crime is called the deterrence theory (Lyman & Potter, 2007). Organized crime is combated at multiple levels federal and local. Local governments determine the methods and the intensity of law enforcement in their regions. It is ultimately there decision and responsibility to combat organized crime in their area. Because corruption and organized crime is primarily found in areas with deteriorated social development it is important that the local governments provide better opportunities for society. In these cases the government is inadequate and in most cases it fails to provide the proper financial means. Furthermore, it lacks a strong judicial system. Law enforcement agencies encounter legal limitations at all times when dealing with criminal cases. Many of those limitations can be found in the United States Constitution. Others are as simple as area of jurisdiction. For example: If an investigation leads officers to another state, they would need to notify their judicial and law enforcement agencies of their presence and be granted authority to continue their investigation in their area. Levels such as local, state, and national law enforcement exist and they may only execute arrest within their are a of operation. Otherwise they would need to get approval and if the approval is not granted any evidence found will be dropped from evidence. Also a limitation, such as the Fourth Amendment of the constitution prohibits law enforcement from illegal search and seizures. For example: If a law enforcement agent is investigating a Mafia member they must first gather sufficient evidence that shows with a doubt that there is probable cause and also be granted a search warrant by a judge. These procedures require tedious amount of work and time. The longer the process takes the efforts put into surveillance the more likely it is that the criminal will become aware of law enforcement presence and change their methods. The Fifth Amendment protects the accused and leaves the burden of proof to the prosecutor, which works from intelligence gathered by law enforcement. The Organized crime control act of 1970 and the RICO act are law passed to control organized crime groups from racketeering into legal business es. The patriot act extremely lowered restrictions to law enforcement agents giving them the authority to implement to their tactics wiretaps, audit of business records, and surveillance of people involved with terrorist groups. Because many organized crimes groups are involved with terrorist groups in the purchase and sell of products the patriot act granted the opportunity to law enforcement to investigate on suspects that were hard to reach before the patriot act became active. The most effective solution to fighting organized crime is for law enforcement agencies to work together at local, state, national, and international levels. In many occasions organized crime groups have people that aid them in political power positions. Government employees should be subject to a full back ground check and affiliation research to ensure that they are not assisting or co-working with any known criminal groups. Furthermore, these checks must also be performed in the military to ensure that we are not training individuals that are affiliated to criminal groups and inadvertently making them stronger. Organized crime groups are large profitable organizations. Law enforcement agencies are working together to implement laws and new tactics to reduce their criminal activity. It is imperative to understand that it requires the three groups of the judicial system to effectively combat organized crime. While the police enforces and neutralizes criminal activities the government must provide options to society to deter them from supporting or joining criminal activities. â€Æ'References Lyman, M. D., & Potter, G. W. (2007). Organized crime (4th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall.

Finance and its importance In the Business world Essay

Finance and its importance In the Business world - Essay Example Usually corporations only give 7 days credit term at most is 15 days credit term. If it will go more than that then they have to seek bank loans in order to provide buffer or answer the shortfall of cash for its operating cost. A lending company has available funds for $300.00. The average amount borrowed in a month is usually $200.00. If in case, one borrower name Sally cannot pay the amount of $100.00, they still has a buffer left in the amount of $100.00. In case the borrowings on that week go as high as $300.00, then they are going to the bank to make a short term loan in lower interest rate. This thereby affects their income since the interests that they paid with the bank already eat up a portion of the income that they generate out of the transaction. Still they have to put up the funds, otherwise they cannot maintain their line of borrowers. It is the idea of financing of contingencies and seasonal peaks in working capital. Inventory is the art of warehousing. It entails a list of the raw materials, equipment and parts, office supplies needed to run the business or production without faltering. The list is readily available at the stores section or at the warehouse for the requisition of other departments.