Management - Economic Policies and Fiscal Programs of Governments - Essay Example

?Answer Banking and financial industries are integral part of development process and provide economic stability. They serve as major platform for efficient payment system in the trade and commerce across the world. All the economic policies and fiscal programs of governments are implemented directly or indirectly through the banks and financial institutions that are linked to growth and socio-economic development. The various functions and facilities of financial institutes are designed to help common man and promote trade and commerce by extending financial help when required. Most importantly, major function of banks and financial institutes is to mobilize resources by pooling individual savings and invest in developmental projects. To avoid misuse and to promote efficient delivery of goals, the government must enforce more stringent measures of regulation and control on the banking and financial sector especially in the given environment of global market meltdown. Answer 2 The property rights and contracts are very important in a market place. A contract is a legal instrument that safeguards the interests of people who forge certain defined relationship through legally enforceable contractual set of rules and guidelines. In the recessive economy and deteriorating market conditions, new issues with wide ranging implications could have serious consequences for business. The property rights are vital issues within social fabric as they facilitate people to exercise control over their resources that they hold or own. Within a market economy, the contract promotes the property rights of business’ products and services and ensures that buyers and sellers maintain their contract as specified within the law. The property rights and contracts therefore help safeguard the rights business over their products and services as well as the rights of consumers who use those products and services. Answer 3 The major Rim countries like Japan, China, India and Malaysia etc. have significant influence on the global commerce due to the fast socio economic development. Through market liberalization, technological advancement and adopting change, they have emerged as major economies to challenge America’s monopoly in the global market. In the deteriorating financial condition of America with massive foreign debts and deficit account balance, dollar has been adversely impacted. As such, collapse of dollar within the new market based economy and increasing importance of Rim countries have redefined socio-economic and political economy of the globe. Indeed, these countries have now turned the table and become major donors rather than borrowers. The developing economies and regional markets now provide huge potential of growth to the developed nations and are therefore in better position to bargain. Answer 4 Sherman Antitrust Act of 1890 and Clayton Act of 1914 are still important because they promote healthy market competition and dissuade monopoly in market (cornell university, n.d). Unregulated monopolies of products and services adversely impact economy as they tend to eliminate competition. Monopoly promotes the concept of single seller or supplier for products which has so substitute. Thus, the situation can be exploited by the party through higher prices, inferior quality and hindering creativity within market. Sherman Act prohibits monopolies of any kind, especially trusts which tend to transfer power to single entity, across interstate trade and commerce. Clayton Act further strengthened the market regulations when commercial practices like price differentiation, buying out competition etc. were made illegal. Answer 5 The political business strategy is highly pertinent in the current environment of rapid globalization. They broadly refer to the political risks vis-a-vis non market imperatives and macro environment issues that impact business performance across the globe. Thus, political stability and national and regional laws where global business tend to expand their business, the different environmental laws, local economy and interests of the communities etc. become very important issues for the business (Manikiw, 2009). Business strategy, on the other hand, is mainly concerned with the strategic goals and planning for the business to improve and improvise its productive outcome. It explicitly emphasizes the unique activities and approaches for delivering its strategic goals and objectives. The management facilitates proactive participation of its workforce for the anticipated changes in the work environment for optimizing productivity. Answer 6 Globalization is unique in its socio-cultural diversity which necessitates embracing not only multi-cultural values but also foster constructive relationship that would cut across race, color, culture and nationality. Affirmative actions are hugely important for their ethical and moral considerations. They promote a work environment where people enjoy equal rights and opportunity, irrespective of their nativity, color, gender or race. They are vital part of EEOC’s implementation of the amended Law for equal opportunity and employment (civil rights, 1964). They help evolve plans and programs of the employment agencies and employers to create facilitating environment to promote inclusion of cross cultural workforce. Answer 7 Pluralistic society is distinct in its composition of people who come from diverse socio-cultural background. The government therefore has developed laws that promote equal rights and opportunities within workplace. The illegal discrimination in the workplace refers to the discrimination based on race, color, culture, gender, disability etc. in job employment, promotion, training and other relation issues within employment (Elashmawi, 2001). Gonzalez v. Abercrombie & Fitch was a landmark case in 2004 that had exposed the discriminatory practices of A&F in its employment practices and work environment. African-Americans, Asian immigrants, Latinos and women applicants or workers were discriminated in the workplace because of their color, race or gender. The court had awarded $40 million settlement for the people who had suffered discrimination. Answer 8 In the contemporary environment of volatile market and recessive economy in the domestic and global market, one needs to adopt flexible approach that can incorporate the environmental changes. Thus, the major strategic initiatives would address the emerging new issues of diversity, environment, sustainable business practices and ethical considerations that have become essential ingredients of business dynamics. The businesses and people in general must be ready to embrace new ideas and changes to meet the challenges of time. The understanding of cross cultural values and critical thinking becomes important to resolve conflicts. Moreover, it would also help to exploit cultural competency of the diverse workforce and gain competitive advantage within the industry. (words: 1013) Reference ‘Civil Rights Acts.’ 1964. archives.gov/education/lessons/civil-rights-act. Web. . 9 Dec. 2012. Elashmawi, Farid. Competing Globally: Mastering Multicultural Management and Negotiation, Boston: Butterworth-Heinemann, 2001. ‘Gonzalez v. Abercrombie & Fitch.’ 2004. afjustice.com/media.htm. Web. 9 Dec. 2012. Manikiw, Gregory N. Principles of Macroeconomics. NY: Cengage Learning, 2009. Sherman Act and Clayton Act. n.d. law.cornell.edu/wex/antitrust. Web. 9 Dec. 2012. Read More