Endogenous Growth Theory Essay Example | Topics and Well Written Essays - 750 words

Endogenous Growth Theory - Essay Example The paper focuses on endogenous growth and utilises two major approaches to deal with the issue. These are namely the convergence controversy approach and the state of market competition (Romer). Romer’s contention is to fill out gaps in existing endogenous theory to make it more accountable for growth patterns in developing and developed countries. Historically the neo-classical model has attributed economic growth to technology. Another basic assumption is that technology is freely available to all countries in the world since a perfect competition market exists (Rebelo). Romer uses the Cobb-Douglas production and cross-country regression models in order to highlight that endogenous factors can better explain such growth than exogenous models. He attributes growth to investments in human capital, innovation and knowledge whose spill over effects tend to augment the economy as a whole . The Philippines has been compared to the United States in order to bring out the savings rates that would be required by both nations to possess an equal level of economic growth. Romer argues that if the Philippines and the United States possessed the same level of technology, then their differing growth rates could be attributed to differences in labour productivity alone. It has been estimated that the share of investment in the United States is at least twice as large as it would have to be in the Philippines for a similar rate of growth. The lack of convergence between the growth rates for poorer countries and the more rich countries tends to indicate that the differences may be attributed to more than just technology. The rate of and amount of investment tends to differ between the North and the South. Using the neo-classical model, it would be hard to explain why the model attributes low investment in the North while that is not the case. The Summer-Heston model has been used in this regard to look into investments into human resources and capital to bring out the differences (Barro and Sala-i-Martin). Romer concludes this section by delineating that the only difference between developing and developed nations may not just be the availability of data that is blamed by neo-classical economists for a loosely fitting model. In the second section, Romer argues that aggregate level models had been missing in order to exp lain growth throughout the fifties, sixties and the seventies. He also expounds that certain assumptions have always been assumed as such but have not been explored to see their effects on growth models. It is generally assumed that there are many firms in an economy but it may be that these are concentrated to favour a monopolistic market structure. Scientific discoveries are not accessible to all entities operating in an economy since information is required to turn the scientific discovery into useful output. The shortage of information from one national economy to another (such as through trade secretes) signifies that scientific discoveries are not available to all and sundry. Another issue is the replication of physical activities which is not possible since all involved factors cannot be scaled up similarly all the time to receive an equally scaled up output. Technological developments are taken as having derived from factors external to the control of individuals. However, t he application of human resources and attention is typically how technological progress is derived. Hence, assuming that technological progress is an exogenous factor is highly misleading (Sachs and Warner). Additionally, economic entities with the power to create new information and knowledge often possess the power to manipulate the information and knowledge into monopolistic systems. This would indicate that the owner of the information a

Problems at Perrie Research Paper Example | Topics and Well Written Essays - 750 words

Problems at Perrie - Research Paper Example Indeed the company has witnessed an economic downturn with the dwindling of the sales and resuscitation from this economic downturn requires the company to respond to the imminent business disruptions by promptly responding to change. The need of the hour is a viable change management that calls for an apt handling of the shifting consumer preferences, influx of enhanced competition and economic downturn in a way that steers the organization from the immediate state to a desired future situation. No wonder the employees are evincing some typical reactions to change. First and foremost the employees are interpreting change in correlation to the direct impact it will have on their earnings and job security. Besides, a call for change by the management is making employees angry and quiet resistant to change. The employees being comfortable with the hitherto business practices are certainly panicked by the emergent business scenarios. The reactions being evinced by the employees are cert ainly normal, but if not managed in a deft way may inhibit and curtail any viable attempts to change, thereby translating into a drastic impact on the organizational sustainability and its capacity to change in the light of the incumbent circumstances. One essential element of this resistance to change is that the employees are misinterpreting the change initiatives taken by the management in the light of their own fears and apprehensions. Besides, the employees are also fearful of the uncertainty inherent in the current organizational situation. They believe that any change initiative may directly impact their job security and hence are getting increasingly unionized. Employees also have a low trust regarding the Perrier’s capacity to change and the organization’s ability to usher in new initiatives. To manage change, the management needs to accept the fact that its personnel have got increasingly unionized to resist change. To effectively manage this change, the mana gement first and foremost needs to address the human side of the situation. The employees and the CGT being the key stakeholders in any change management initiative, the management should take the employees into confidence and must explain to them the immediate business scenario, its implications and how it intends to manage the consequent change. Besides, the change initiatives should be ushered in at the top level and the organizational leadership should get proactive about change. This will motivate the lower rung employees to embrace change initiatives. Third and the most important thing is that the management should be willing to involve every layer within the organization in the change process. No doubt, change has emerged to be unsettling for all the employees at Perrier and hence they naturally expect and look to the organizational leadership for direction and guidance. The resistance to change at Perrier is essentially a human problem and hence needs to be dealt with in a v ery sensitive and deft manner. So far the top management at Perrier has only zeroed in on the resistance to change in terms of the lower wrung employees, without delving on its own role in causing the resistance to change. However, the top management also need to delve on the point that the resistance to change may be ensuing from the top rungs, thereby gradually percolating to the lower levels. So it is the pivotal need of the hour that the top management

Too much Contemporary Airline Advertising is Dishonest, Boring, Essay

Too much Contemporary Airline Advertising is Dishonest, Boring, Stereotyped and Sexiest - Essay Example The medium of advertising is made use by the companies in order to form a way of communication with the intended consumer groups regarding their respective brand names, services offered along with keeping them updated about the latest offers and changes (Goel, 2009). The different mediums of advertising facilitate the firms to keep up the channel of communication with regard to the consumers competently as well as promptly as and when required. Therefore, it could be well comprehended that advertising is considered to be vital to ensure the effectual operations of the markets with regard to the competitive industries. Advertising is also regarded as a chief way with the help of which the consumers are kept informed regarding the fresh or enhanced products as well as services (Tellis, 2004). The profits of the airlines or rather the complete industry is believed to be intensely associated with the effectiveness of the advertisements (Goel, 2009). Advantages & Disadvantages of Print Advertising for Airlines Importance of Advertising The principal objective with regard to the concept and use of advertising is not just to bring in changes in the curve of demand but it also needs to move it upwards indicating a rise in the demand for the intended product or service. It can also be stated in this context that with regard to the airlines industry on the whole, advertising is required for the reason of luring consumers towards availing the intended services who or else would not avail the service. The factor of advertising would also help in making certain of availing the services related to the airlines industry more regularly or even increasingly severely in longer periods. In case of a particular airline in such an intense competitive market, an augmentation in relation to its requirement for services might also accumulate from a transfer of passengers or consumers away from their respective competitors in the industry (Kraft, 1965). The consequence related to competitive advertising might even tend to direct towards a need that all the existing airlines companies with regard to its operating market make use of the advertisements simply for the reason of holding on to their respective share. These kinds of advertisements which are developed devoid of the intention of giving rise to a fresh requirement in suitable amounts are considered as economic waste. The majority of the advertisements with regard to the airlines companies chiefly focuses or attempts in offering the possible traveller with definite information regarding rescheduling and especially about the nature of prices related to the services offered (Kraft, 1965). Therefore, it implies that m ost of the information regarding the services offered by the airlines is provided to the consumers with the help of advertisements. It becomes essential to mention in this context that the airline companies thus, requires offering the accurate information to the consumers and keeping away from making attempts to mislead the consumers wit

One Work of Art from Michelangelo Buonarroti and One work of Art from Assignment

One Work of Art from Michelangelo Buonarroti and One work of Art from Leonardo da Vinci - Assignment Example Through the art we are able to see how they have dressed and also in the picture we see one person at the center representing the religious leaders also being involved (Meyer, 2011). It’s seen as the last judgment presented to people on the account of their evil deeds in church. In the Mona Lisa art Leonardo tried to put across the beauty by her curves on her long hair with the color on her face being toned bringing out her beauty. Her hands joined together showed her being calm or relaxed. The clothing can be seen as an ideal woman from her decency showing how mature she is. Her skin color is evenly distributed through da Vinci’s painting. Buonarroti picture symbolizes the kind of activities in the society. The nude picture represents the church followers back scenes which are not in line with Christianity. Michelangelo was a religious person and through his artistic talent he portrayed human anatomy and movements in most of his arts. He was able to blend the colors well the blue shade and the brown shade. The blue showing the sky and the white clouds with people around with actions like asking for a favor from someone (Meyer, 2011). Leonardo da Vinci used blurred and dark outlines contrast of light and dark bringing an ambiguous effect. It has been able to convey an ideal woman as she is conservative and the looks on her face cannot be really told as blank expression as you cannot really determine if she’s smiling or not. Leonardo da Vinci used the technique in framing, use of lighting and composition (Perry, 2009).He used observations and understanding in coming up with his art. Mona Lisa’s eyebrows and eyelashes are visible portraying her beauty. Through glazing technique to show realism achieved through variation in color and shading. He tried to portray her inner beauty by using the dull colors portraying calmness (Perry, 2009). He also used the oil layering on wooden palette. The brush strokes can be seen as