Business Environment Essay Example | Topics and Well Written Essays - 2000 words - 1

Business Environment - Essay Example Therefore, it is sound to assert that the variations in demand and supply for any economic resources, and the country’s practices contribute to its growth and competence at a global platform. The following discussion seeks to highlight economic perspectives in different versions with reference to their effects to the economic environment. P4: Explanation of how economic systems attempt to allocate resources effectively Despite the two country’s economic practices, UK practices the mixed enterprise approach whereby some resources belong to the national government thus limiting any probable exploitation of the citizens (Dransfield, 2004, p. 98). For instance, the country owns majority of the shares in those firms operating in products, which seem critical for human welfare. Such a resolution enables the UK to expressly influence companies’ decision-making processes in for the benefit of the citizens’ benefit. Further, the UK is able to use the mandate expres sed by its constitution’s to influence the privatization of companies in order to create wealth to the citizens. Individuals own the remaining resources, but there are regulations enforced by the government to ensure that that the practices are ethical and beneficial to the citizens. On the contrary, the military command economy restrains the local population from the exclusive indulgence into businesses that may lead to the exploitation of resources for economic prosperity. Arguably, the country owns 95% of the industries leaving a 5% margin for its citizens. The socialist approach thus tends to practice a monopoly approach in the allocation of resources, a factor that deters increment in the GDP and leads to increased poverty levels. Economists explain that U.S.A sets an analytical approach to the economic issues and establishes fiscal policies to stimulate growth, control amount of money in supply, dictate inflation rates of the dollar, and subsequently reduce the unemploy ment levels. The United States is observant on whether the factors will affect the country positively or negatively in the end (Arnold, 2007, p. 55). Analysts describe that the US free market enterprise economy allows for the room of innovation thus; the country’s entrepreneurs have the ability to improve products that in turn lead to economic growth since they are able to earn returns on their investments, create employment, and remit taxes to the federal government (Rodrik, 2007, p. 67). P5: The impact of high taxes and high interest rates The influence of high taxes on employees is a factor born from the Keynesian theory. Theoretical arguments are that enforcement of high taxes to a country’s employee population is a significant approach to reducing the rate of inflation since the approach diminishes the rate of individual expenditures. The factual further increases productivity in the economy since the government’s accrued revenues are spent on utilities suc h as infrastructure, and the provision of other resources to the entire population (Arnold, 2007, p, 58). The approach is significant in shaping up an economy in accordance to changes in demand and supply with a perception that whenever the supply shifts to an increase or decrease, the prices will remain constant since the population will bear the existing ability to purchase a given quantity of a product. On the other hand, the impact of executing high interest to business organizations remains an ill

Current Events and U.S. Diplomacy Essay Example | Topics and Well Written Essays - 750 words

Current Events and U.S. Diplomacy - Essay Example Thus a cold war erupted between the U.S. and USSR which eventually came to an end with the help of doctrinal regimes implemented by Reagan (Fischer, 1997). Define presidential doctrine and summarize the regional or global events during the Cold War leading up to the formation of the Reagan doctrine. Presidential doctrine defines the policies, procedures, reforms and initiatives taken by a country’s president which are intended to enhance global position of the nation and to achieve greatest good for citizens of own country as well as those across the globe. Before arrival of President Reagan, communism had become common and superpowers like Soviet Union were suppressing the Third World countries in attempt to invade them. The Soviet and the Vietnamese led various Marxist movements which depressed capitalism and eventually forced the entry of Cuban armies and Soviet troops into different territories including Angola, Cambodia and Afghanistan. These countries did not have suffic ient powers to hold the forces and hence turned to other countries for help. The U.S. which believed itself to be the savior and leader nation for all decided to intervene and rescue these countries through Reagan doctrine. This doctrine created waves of passion across nations and gave boost to conservatism in America (Carpenter, 2012). Describe the Cold War relationship that existed between USSR and the U.S. before Reagan doctrine was announced. Before Reagan, there were only two prevailing superpowers, the U.S. and the USSR, which considered their coexistence to be catastrophic and hence wanted to triumph over the other. The perceived equality of power of both nations had led everyone to believe that the two countries pose threats to each other. The mutual suspicion rose amongst the two parties and past experiences of World Wars led them to believe that dangers exist. Soviet Union was spreading communism which challenged the survival of capitalism in the U.S. Reagan rejected the i dea of control over European nations by the Soviet Union and claimed it to be unfair for USSR to exercise its rights outside its jurisdictional system and boundaries. Thus Cold War broke and Reagan introduced the Reagan Doctrine to stop communism by supporting and providing arms to the rebels and freedom fighters in Third World countries for self-defense (Katz, 1991). Describe the relationship that currently exists between the U.S. and USSR. The relationship between United States and the Soviet Union enhanced eventually after the Reagan doctrine. The leaders of Soviet Union realized soon that they essentially need the support of capitalist countries in order to flourish in the economic and business world. The greatest capitalist power is the U.S. and hence USSR has been keeping stable relationship with it and has signed various pacts to ensure peaceful relationships in field of politics, science and technology (Cox, 1990). The recent patterns of American-Soviet relationships are inc lined towards development in the fields of economic trade growth and mutually collaborative effort in scientific expansion. Describe the effect that the Reagan doctrine has had on regional or global affairs since the time when it was announced during the Cold War. When Reagan doctrine was introduced, the Cold War came to an end and relationships between U.S. and USSR were also improved. The Soviet Union retreated from all the territories and the world moved towards democratic and harmonious terms. Moscow no longer targeted