https://research-methodology.net Necessary knowledge to conduct a business research Fri, 10 Feb 2023 13:22:11 +0000 en-US hourly 1 https://rm-15da4.kxcdn.com/wp-content/uploads/2020/08/cropped-logoBRM-32x32.jpg https://research-methodology.net 32 32 https://research-methodology.net/how-do-firms-set-prices/ Wed, 27 Jul 2022 11:00:52 +0000 https://research-methodology.net/?p=67699 This article critically evaluates the notion of firm and transaction costs and explores how do firms set prices. The article starts with setting context for discussions and this is followed by critical evaluation of firms from the perspective of transaction costs. Moreover, the article contains critical analysis of price setting practices of firms by referring to set of relevant studies and theoretical frameworks.   How do firms set prices? Although the range of issues discussed in this paper are not new and they have been previously addressed by many economists in varying levels of depth, importance of firms, evaluation of transaction costs approach and the nature of price-setting strategies engaged by firms may be greater than ever before. In other words, recent global economic crisis of 2007 – 2009 has revealed significant shortcomings of liberal market economy at multiple levels, and from this perspective reassessment of the core notion of firms, relevance of transaction costs and price setting practices of modern businesses may provide valuable data in terms of developing macroeconomic policies to minimise chances of economic crises in the future. The most popular price setting techniques include market level pricing, competition pricing, variable and fixed mark-up pricing, pricing set by government regulatory agency, and customer-set pricing (Anderton, 2008). Each of these price setting techniques has its own advantages and disadvantages and selection of any particular technique depends on a wide range of factors such as the nature of products and services, intensity of competition, customer purchasing power etc. Additionally, pricing strategies can be divided into new-product pricing, differential pricing, psychological pricing, product-line pricing and promotional pricing categories (Pride et al, 2010: 386). The choice of a pricing strategy according to this particular categorisation depends on the business strategy of the company. For example, the level of effectiveness of the…]]> https://research-methodology.net/what-is-a-firm/ Sun, 24 Jul 2022 10:40:35 +0000 https://research-methodology.net/?p=67626  What is a firm? In essence, as private sector organisations firms pursue the main objective of profit maximisation. However, this is the most basic approach to firms and roles and responsibilities of firms can be studied in a greater level of depth with the application of relevant theoretical frameworks. There are several main theories of the firm and distinction can be made between these theories on the basis of approach adopted towards relationships between the firm and society (Sloman et al., 2013). For example, one of the earliest approaches to firm, ‘black box’ perspective perceives firms as economic entities that transform input into output in a profitable manner. ‘Black box’ perspective involves “how production and cost functions interact with demand on the market, i.e. the emphasis is on technical matters and how firms function in the context of the market” (Dietrich, 2007:19). ‘Black box’ perspective to firms can be criticised on the grounds of being overly abstract and general, and it does not take into account the impact of firm-specific factors. Transaction cost can be defined as “the costs incurred when firms buy inputs or services from other firms as opposed to producing them themselves” (Sloman et al., 2013:33). Transaction cost economics originates from the work of Ronald Coase who argued that “firms exist to economise on the costs of using the market” (Sykuta, 2010: 39). In other words, Coase perceives the cost of using the price mechanism as the main profit motivation for firms. Coase insisted firms to be perceived in real-life environment taking into account specifications of the real world, as well as, transaction costs of alternative organisational structures. Transaction cost economics is associated with Oliver Williamson, who expanded the work of Coase (1937) by increasing the levels of focus on organisational forms and associating business management with…]]> https://research-methodology.net/destructive-impacts-of-colonialism-on-chinas-slow-growth-of-output-per-person-between-the-1840s-and-the-1940s/ Tue, 13 Dec 2016 04:04:34 +0000 http://research-methodology.net/?p=8963 This essay critically analyses the level of destructive impact of colonialism on China’s growth output between the 1840s and the 1940s. The essay contains the contrast of opposite arguments regarding the topic and supports the argument confirming destructive impact of colonialism on China’s growth output between the 1840s and the 1940s by providing relevant and valid justifications. A study of economic history can provide valuable knowledge to economic theorists and practitioners in terms of dealing with economic challenges of present and the future. An in-depth analysis of factors causing the level of economic growth to slow down in particular is necessary so that these factors can be dealt with to fuel economic prosperity in any given region. Colonialism can be defined as “the control or governing influence of a nation over a dependent country, territory, or people” (Colonialism, online, 2016). While forming new colonies may prove to be a profitable strategy for powerful countries in many levels, economies that become victim to colonialism experience a set of substantial economic and social setbacks such as loss of sovereignty in terms of using economic resources, and negative impact upon cultural identity. The essay starts with assessing the level of China’s economic growth between the 1840s and the 1940s providing evidences why it was slow for this specific period. This is followed by discussions of colonialism and its negative impacts on the level of China’s economic growth between the 1840s and the 1940s. In order to adhere to the specified word limit for this essay political implications of colonialism are not addressed in this essay, and the main focus have been made on effects of colonialism on national economics using the case study of China. Moreover, an alterative viewpoint on the issue is also explored in this essay by assessing the impact of…]]> https://research-methodology.net/an-analysis-of-the-world-bank-approach-to-reducing-global-poverty/ Fri, 02 Dec 2016 02:31:42 +0000 http://research-methodology.net/?p=8949 Rapid technological development during the last several decades coupled with a series of breakthroughs in information technology has immensely contributed to the development of national economies for a wide range of countries with positive implications on standards of life of people. At the same time, global poverty still remains one the most pressing issues with almost half of the world – more than 3 billion people living on less than $2.50 a day (Shah, 2016, online). The issue of global poverty is periodically addressed by a set of organisations such as World Bank, One International, WHO, CARE and others, as well as, within the framework of The Group of Twenty (G20) forum. This article represents a critical assessment of the role of World Bank in particular in dealing with global poverty. The article starts with the general discussions about the World Bank and its current contribution in eliminating global poverty. This is followed by analysis of criticism of World Bank performance in dealing with global poverty. Moreover, this article identifies potentials for World Bank to deal with global poverty more effectively. The World Bank Group is an international financial institution that pursues its mission of ‘Help Reduce Poverty’ with the participation of 188 countries. The World Bank Group consists of five organisations that are The International Bank for Reconstruction and Development (IBRD), The International Development Association (IDA), The International Finance Corporation (IFC), The Multilateral Investment Guarantee Agency (MIGA), and The International Centre for Settlement of Investment Disputes (ICSID). Each of these organisations contributes to World Bank mission in a unique way. It is important to clarify that generally the term ‘World Bank’ refers to only IBRD and IDA, and these two organisations along with IFC, MIGA, and ICSID are incorporated within the World Bank Group. Within the scope of this…]]> https://research-methodology.net/hewlett-packard-declining-profitability-a-critical-analysis/ Wed, 01 Jun 2016 10:45:16 +0000 http://research-methodology.net/?p=7787 1. Introduction Rapid and dramatic changes in consumer technology market in the global scale are compromising the effectiveness of competitive advantage for many players in the marketplace. Hewlett-Packard Company (HP) can be specified as one of the giants in the industry and the company is finding difficult to address modern challenges in its market in an effective manner. HP is experiencing loss of sales and profitability due to a combination of certain factors discussed in this paper. Behind the overall 7% sales decline in the third quarter of 2012 lay 25% decline of sales of PCs and 15% decline of consumer printers (Walters, 2012). The public acknowledgement of the issue of declining profitability and pessimistic sales growth forecast made by HP President and CEO Ms. Meg Whitman on October 3, 2012 has caused the fall of HP share prices by 11% on the same day. Moreover, according to estimations of a global research agency, Millward Brown (2012), HP brand value has declined 35% in 2012 compared to 2011, and the company has moved down from 18th place to 26th in the list of Top 100 Most Valuable Global Brands within the same period. This article represents a critical analysis of declining profitability of HP using an analytical method. The article starts with introducing HP corporate profile and relevant background information. This is followed by a critical analysis of major factors contributing to the loss of profitability at HP. Namely, factors discussed in a detailed manner include increasing popularity of computer tablets, economic uncertainties in Europe, and leadership challenges. Moreover, this article proposes recommendations for HP senior level management in dealing with its current problem of declining profitability and contributing to long-term growth of the company. 2. HP: Corporate Profile Founded in 1939 by W.R. Hewlett and D. Packard, HP has been…]]> https://research-methodology.net/challenges-faced-by-international-monetary-fund-imf-and-the-ways-of-dealing-with-them/ Wed, 18 May 2016 04:37:30 +0000 http://research-methodology.net/?p=7717 Abstract The International Monetary Fund (IMF) as one of the leading global financial organisations that deals with the issues of securing financial stability, facilitation of international trade, promoting economic growth in a sustainable manner, and poverty reduction in a global scale. There are mixed opinions about the role and performance of organisation in dealing with these issues. Some people perceive IMF to be an important organisation making valuable contribution to macroeconomic stability, whereas others blame the organisation for financial problems within specific countries and areas. Nevertheless, nowadays IMF has to deal with a set of complex challenges in local and global scales. This paper attempts to critically evaluate a set of issues directly related to IMF performance. The paper has identified major challenges faced by IMF to include its governance structure, increasing level of politicisation, leadership challenges, performance evaluation difficulties, and dealing with social instability. займы срочные в день обращения Moreover, necessary changes have been proposed for IMF that should assist in dealing with the challenges the organisation is facing. These changes include reforming IMF governance, gaining focus on role and objectives, developing performance accountability frameworks, improving lending policy, and increasing the level of comprehensiveness in country analysis. 1. Introduction The International Monetary Fund (IMF) is “an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world” (About IMF, 2016). IMF was set up during Bretton Woods Agreements in 1944 with only 44 countries and it is governed by a Managing Director and Chairman of the Executive Board, currently Christine Lagarde, who is assisted by the First Deputy and three other Deputy Managing Directors. The Articles of Agreement of IMF state that the Managing Director “shall be chief of the operating…]]> https://research-methodology.net/socially-desirable-merit-goods-analysis-of-primary-education-in-the-uk-2/ Sat, 14 May 2016 10:32:33 +0000 http://research-methodology.net/?p=7736 1. Introduction   Socially desirable merit goods are “goods that society deems so valuable that everyone should have them” (Frischmann, 2012, p.45). There are two basic characteristics of merit goods: the value of the good is not usually fully appreciated at the time of consumption, and consumption of merit goods has positive effects to other individuals (Economics Online, 2014). This report represents a brief assessment of various aspects of primary education in the UK as an important merit good. The report starts with assessing the role of the UK government in providing primary education and this is followed by analysis of possibilities for private sector to provide primary education. Moreover, the report includes discussions of positive externalities of primary education and assesses the possibilities of market failure if the provision of primary education was left to provide to free market.   2. The Role of Government in Providing Primary Education Merit goods can be explained as “a product that the government believes consumers undervalue and under-consume” (Riley, 2004, p.160). Examples of merit goods include, but not limited to healthcare, education, and others. Merit goods are perceived to be beneficial for people. Demerit goods, on the contrary, are considered to be ‘harmful’ to people and they include alcohol, tobacco products and a wide range of drugs.  Governments usually do not leave the trading of demerit goods to free market, because it can led to over-consumption of demerit goods with negative implications for the government and its citizens. Investopedia (2014, online) defines externalities as “a consequence of an economic activity that is experienced by unrelated third parties”. Externalities can be positive or negative. Examples of positive externalities may relate to highly educated and healthy people contributing to the state of national economy for many years. Negative externalities, on the other hand, include…]]> https://research-methodology.net/the-triumph-of-liberal-economic-ideas-in-the-developing-world-by-biersteker-t-j-1995-annotated-bibliography/ Tue, 31 Mar 2015 10:03:46 +0000 http://research-methodology.net/?p=6459 Biersteker (1995) explores apparent triumph of liberal economic ideas in the developing world by concentrating on the nature of change in economic thinking. According to this article dramatic changes in economic thinking in developing countries took place mainly during the period of 1980s and 1990s. Differences in perceptions between countries and their impact on implementing liberal economic ideas are stressed by Biersteker (1995) to explain variations on the levels of economic liberalisation amongst Latin American countries. Biersteker (1995) offers an interesting account of the impact of liberalism on developing countries. Specifically, Biersteker (1995) discounts the impact of following four factors in facilitating change in economic thinking – perception of superiority of liberal ideas by developing countries, exercise of power by international financial institutions such as IMF and the World Bank, intensifying forces of globalisation, and collapse of socialism. Instead, Biersteker (1995) offers explanation for change in economic thinking from four different perspectives: ideational, systematic, domestic interest, and international institutional perspectives. A noteworthy shortcoming associated with this approach is associated with being overly idealistic. While the author accepts this fact by stating that “each of these should be considered as an idealised construction” (Biersteker, 1995, p.181), nevertheless, the idealised approach undermines the level of practical relevance of the work. Reyes and Sawyer (2011) offer an alternative approach to the work of Biersteker (1995) by identifying perception of superiority of liberal ideas as the most significant factor fuelling change in economic thinking in developing counties during the last three decades of the last century.   References Biersteker, T.J. (1995) “The “triumph” of liberal economic ideas in the developing world” in Global Change, Regional Response: The New International Context for Development, editor Stallings, B., Cambridge University Press Reyes, J.A. & Sawyer, C.W. (2011) “Latin American Economic Development” Taylor & Francis]]> https://research-methodology.net/mundell-fleming-model-as-more-relaxed-version-of-islm/ Wed, 18 Mar 2015 00:51:19 +0000 http://research-methodology.net/?p=6432 Great Depression is rightly perceived as the main stimulating factor behind the emergence of Keynesian framework and ISLM model and the model proved effective to deal with the crisis to a certain extent.  However, a set of significant shortcomings associated with ISLM model such as neglecting expectations, static nature of the model, unrealistic closed-economy assumption, assuming prices to remain fixed etc. have led to the evolution of alternative models. Proposed by Robert Mundell and Marcus Fleming, the Mundell-Fleming model represents an economic model that explains the nature of relationship between the nominal exchange rate and the output of the economy in the short run. Traditionally, this model has been used to justify the argument that maintenance of fixed exchange rate, movement of free capital and independent monetary policy in a simultaneous manner is impossible to achieve. The main difference between Mundell-Fleming model and ISLM model relates to the fact that while ISLM model is effective under a closed-economy, Mundell-Fleming model attempts to analyse an open-economic system. In other words, unlike ISLM, impacts of international finance and international trade are acknowledged in Mundell-Fleming model. Different countries respondent the global economic crisis of 2007 – 2009 differently taking into account unique set of internal and external factors, however, macroeconomic responses to the crisis by many developed counties can be effectively explained with the use of ISLM model. Dramatic decline in the level of consumer spending which also caused the decline of consumer confidence in markets has facilitated the shift of IS curve in ISLM model to the left. Range of responses by governments to this event included reducing the level of interest rates significantly. For example, interest rates were reduced in US, UK and Japan to 0.25 per cent, 0.5 per cent and 0.1 per cent respectively. Reduction of the level of…]]> https://research-methodology.net/factors-impacting-profit-levels-in-monopolistic-market-structure/ Tue, 13 Jan 2015 10:34:10 +0000 http://research-methodology.net/?p=6297 Pure monopoly refers to a situation where there is only one firm offering a specific type of product or service. However, instances of pure monopoly are very rare in modern markets due to the intensified level of globalisation of economies and anti-monopoly rules and regulations introduced by governments. Working monopoly refers to a situation where any company possesses more than one fourth of the market share. Certain firms are able to attain monopoly in the market due to possession of scare resources, special government grants under certain circumstances, possession of patents for innovations or as a result of merger of two or more large companies in the industry. Achievement of profit maximisation objective is easier by monopolistic firms compared to other market structure due to the lack of competition. In simple terms, consumers have no choice but to purchase products offered by monopolist firm due to the lack or even absence of alternative products in the market. Price discrimination can be divided into three categories: first degree, second degree, and third degree. First degree price discrimination is associated with inelastic markets where a certain business entity is in the position of pricing its products at different levels, at the same time selling to the whole market without competition, which is rare in practical levels. As it is illustrated in figure below, second degree price discrimination relates to elastic market where businesses offer different amounts of their products for different prices. Lastly, the third degree of price discrimination marks the case of combined market where different prices are set for different groups of consumers. Businesses can engage in price discrimination only if they possess certain degree of monopoly. In other words, monopolistic businesses use price discrimination strategies in order to increase the levels of abnormal profits. The degree of price discrimination…]]> https://research-methodology.net/profit-levels-in-short-run-and-long-run-perfect-competition/ Sat, 10 Jan 2015 09:58:00 +0000 http://research-methodology.net/?p=6289 Perfect competition can be defined as a situation “in an industry when that industry is made up of many small firms producing homogeneous products, when there is no impediment to the entry or exit of firms, and when full information is available” (Baumon and Blinder, 2011, p.200). Market structure can be specified as perfect competition if the following conditions or assumptions are met: Firstly, there are many supplies in the market and each supplier has an insignificant market share. In other words, no single supplier is in the position of impacting price through manipulations with its supply of products. Secondly, there are no major differences between products offered by suppliers and these products can be consumed as substitution for each-other. To be more specific, even when there are certain differences between products in the same industry, they are identical in consumer perception. Thirdly, consumers are fully aware about costs charged by all suppliers. This situation has implications in a way that a certain supplier decides to increase its prices; the levels of its revenues will decline because of consumers switching to other suppliers. Fourthly, the level of access to various resources is equal for all suppliers. Moreover, all participants in the industry can benefit from breakthroughs and other positive changes in the industry in an equal manner. Fifthly, industry entry and exit barriers for suppliers are insignificant. In other words, new suppliers can join competition at any time with implications on the levels of profits of existing suppliers. Sixthly, there is no divergence between private costs and social costs, as well as, benefits due to the absence of externality in manufacturing and consumption. Six main assumptions associated with perfect competition market structure discussed above have certain implications on profit maximisation attempts of businesses. Outcome of interaction between supply and demand…]]> https://research-methodology.net/effects-of-crisis-on-uk-higher-educational-institutions-career-prospects-of-uk-students-a-brief-literature-review/ Sat, 03 Jan 2015 04:21:44 +0000 http://research-methodology.net/?p=6268 Burke (2012) links the impacts of the global economic crisis of 2008-2010 with spending cuts on education system by the UK government. Chalabi and Arnett (2013), on the other hand, make an interesting observation related to the issue. Specifically, according to Chalabi and Arnett (2013), the levels of GDP in the UK decreased by 2 per cent between 2008 and 2010, whereas the levels of public expenditure on education have increased by 8 per cent during the same period. A large-scale survey conducted by Education Institution (2009) has attempted to assess impacts of the global economic crisis on education in 48 countries, including the UK. Infrastructure, human resources (HR), and other needs of the UK education system have been found as a result of the survey. Infrastructure needs of UK education system, according to Education Institution (2009) relates to necessity to rebuilt primary schools. Other needs are found to relate to funding for high quality continuing professional development of teachers and challenges associated with reforming curriculum and qualification system. However, it is important to note that Education Institution (2009) findings only relate to education in public sector, and the level of relevance of data to private sector educational institutions are yet to be established. Burke (2012) considers dramatic reduction of numbers of graduate employment schemes offered by multinational companies in 2009 as the direct impact of the global economic crisis. Although, this argument appears to be convincing, Burke (2012) fails to back-up the claim through referring to relevant statistical data. Vaitilingam (2010) points to the risk of lifetime earning loss for a generation of graduates that join full-time workforce during or immediate aftermath of recession. According to Vaitilingam (2010), this situation may occur due to rapid increase in the supply of graduates compared to jobs caused by cuts on graduate…]]> https://research-methodology.net/impact-of-the-crisis-on-uk-economy-a-brief-literature-review/ Thu, 01 Jan 2015 04:14:39 +0000 http://research-methodology.net/?p=6264 National economy of the UK entered the period of recession on the fourth quarter of 2008. Review of literature has found consensus amongst authors about significant negative impacts of the global economic crisis of 2008-2010 on UK economy. The lowest level of recession in UK occurred in June 2009, when the decline of economy has amounted to 5.5 per cent compared to its peak in Quarter 1, 2008 (Vaitilingam, 2010). According to Bell and Blanchflower (2011), the crisis has resulted in substantial cuts on government spending, reduction on the levels of household spending, and has contributed to the emergence of uncertain and volatile investment climate. Impacts of the crisis on jobs in the UK have been analysed by Vaitilingam (2010) in a detailed manner. To be more specific, Vaitilingam (2010) assesses job-related impacts of the global economic crisis of 2008-2010 to include increase on the levels of unemployment and regional disparities in Britain’s economic geography. Additionally, Vaitilingam (2010) specifies low-educated and low-skilled employees, as well as, older workers to be most disadvantaged in terms of being negatively impacted from the crisis. Sobel (2012) draws attention to personal and emotional implications of the crisis to daily lives of people in the UK and elsewhere. According to Sobel (2012) due attention is not paid to this specific aspect of the crisis and the authors stresses the necessity for additional researches in this area.   References Bell, D.N. & Blanchflower, D.G. (2011) “The crisis, policy reactions and attitudes to globalisation and jobs” WTO Sobel, A.C. (2012) “Birth of Hegemony: Crisis, Financial Revolution, and Emerging Global Networks” University of Chicago Press Vaitilingam, R. (2010) “Recession Britain: Findings from economic and social research” Economic & Research Council]]> https://research-methodology.net/major-reasons-of-global-economic-crisis-of-2008-2010-brief-literature-review/ Tue, 30 Dec 2014 04:13:58 +0000 http://research-methodology.net/?p=6260 There is a large volume of published studies analysing major reasons of the global economic crisis of 2008-2010. Excessive risk taking by financial institutions in the US combined with inefficiencies with US housing regulations is shown as primary causes of global recession by Roberts (2009) and Heng (2010). Heng (2010) offers detailed account of the issue and effectively demonstrates that US-based financial institutions have encouraged individuals with no adequate credit history to own homes and rapid decline of house prices, phenomenon known as ‘housing bubble’ has given start to a severe global financial and economic crisis. A study conducted by Sobel (2012) confirms excessive risk taking and inefficiencies with housing regulations as reasons behind the economic crisis and also discussed additional factors not mentioned by many other authors. Specifically, according to Sobel (2012), inadequacies in formulating interest rate policies, as well as, policies to suppress inflation in the US have also played major role in creation of environment that led to the global economic crisis of 2008-2010. Globalisation is perceived by Tan (2010) as one of the major enabling factors of the global economic crisis of 2008-2010. The topic of globalisation is addressed by Samson and Daft (2012) in great details. Specifically, Samson and Daft (2012) divide globalisation into four stages and cultural sensitivity and managerial assumptions in each stage in the following manner:   1. Domestic 2. International 3. Multinational 4. Global Strategic orientation Domestically oriented Export-oriented, multi-domestic Multinational Global Stage of development Initial foreign involvement Competitive positioning Exposition of international operations Global Cultural sensitivity Of little importance Very important Somew hat important Critically important Manager assumptions ‘one best way’ ‘many good ways’ ‘the least-cost way’ ‘many good ways’ Four stages of globalisation Source: Samson and Daft (2012) However, while linking financial crisis and globalisation, Tan (2010) fails to…]]> https://research-methodology.net/brief-chronology-of-great-recession-of-2007-8/ Sat, 30 Aug 2014 05:44:34 +0000 http://research-methodology.net/?p=5964 Explanation of the outbreak of the Great Recession of 2007-8 in a chronological order is necessary in order to provide detailed information about the case study, and link discussions and analysis in following chapters to specific events within the chronology. Date Event 2007 AugustOctober December Funds freezed by the US Federal ReserveRecord high at Dow Jones Official start of the recession in the US 2008 MarchJuly September   October     November Collapse of Bear SternsGDP fall of 0.6% confirmed Denmark as the first European economy to face recession Record unemployment rate in the US during the last 5 years Takeover of Fannie Mae and Freddie Mac US President George Bush signs USD 700 billion bailout fund Singapore is the first Asian country to face recession with the economy shrinking 6.3% Hong Kong confirmed as the 2nd Asian country to face recession 2009 JanuaryFebruary June GDP fall of 1.5% in 4thquarter of 2008, confirms the beginning of recession in the UKObama stimulus package signed Issue of Greece’s budget deficit emerge 2010 JanuaryApril October UK economy comes out of recession with a GDP growth of 0.1%Creation of 162,000 job in the UK Greece and Ireland are bailed out in the EU as a result of adoption of austerity measures 2011 April    May Portugal asking for the EU help in dealing with its financesPlanning of a permanent rescue fund in EU by leaders of its members The loss of US AAA credit rating Approval of EURO 78 billion bailout for Portugal by EU leaders Chronology of the Great Recession of 2007-8 Source: Roberts (2009), Heng (2010) and Hetzel (2012) References Heng, M.S. (2010) The Great Recession: History, Ideology, Hubris and Nemesis, World Scientific Hetzel, R.L. (2012) The Great Recession: Market Failure or Policy Failure, Cambridge University Press Roberts ,M. (2009) The…]]> https://research-methodology.net/development-of-rentierism/ Thu, 13 Mar 2014 00:05:23 +0000 http://research-methodology.net/?p=5730 Rentier state theory is “a political economy theory that seeks to explain state-society relations in states that generate a large proportion of their income from rents, or externally-derived, unproductively-earned payments” (Gray, 2011, p.1). In simple terms, rentier states derive substantial proportions of their revenues from renting their sources of natural resources to external parties.  Rentier states are less motivated to offer concessions to individuals because it is less dependant of taxation to execute its duties, receiving substantial amounts of funds from abroad. Development of rentierism and rentier state theory into academic and practical levels can be divided into the following three phases: classical rentier state theory, the second phase of rientierism and late rientierism.    Classical Rentier Theory The first phase of rentierism encompasses the period from the beginning of 1980’s and to the early 1990’s. This period is marked with immediate aftermath of Iranian revolution and Iran-Iraq war of 1980-1988. According to Elbadawi and Maksidi (2010), these both events have played significant role on fluctuations of world oil prices, with implications on global scale. Jenkins et al. (2011) argue that this period of time is associated with a harsh, dictatorial rule of heads of rentier states. Moreover, Jenkins et al. (2011) note about misallocation of wealth, high levels of corruption and overall inefficiencies in rentier Gulf states during the phase.   The Second Phase of Rentierism The validity of governments of rentier states being challenged, both, internally and externally is one of the main tendencies marking the second phase of rentierism. Specific factor contributing to these tendencies has been named as phenomenal economic developments in Dubai that served as a point for comparison by people from other oil rich countries in the region. Moreover, during the second phase of rentierism economic scholars acknowledged that the relationship between the levels…]]> https://research-methodology.net/socially-desirable-merit-goods-analysis-of-primary-education-in-the-uk/ Wed, 15 Jan 2014 00:12:23 +0000 http://research-methodology.net/?p=5334 This report represents a brief assessment of various aspects of primary education in the UK as an important merit good. The report starts with assessing the role of the UK government in providing primary education and this is followed by analysis of possibilities for private sector to provide primary education. Moreover, the report includes discussions of positive externalities of primary education and assesses the possibilities of market failure if the provision of primary education was left to provide to free market. Socially desirable merit goods are “goods that society deems so valuable that everyone should have them” (Frischmann, 2012, p.45). There are two basic characteristics of merit goods: the value of the good is not usually fully appreciated at the time of consumption, and consumption of merit goods has positive effects to other individuals (Economics Online, 2013). 1. Introduction 3 2. The Role of Government in Providing Primary Education 3 3. Private Sector as Provider of Primary Education 4 4. Positive Externalities of Primary Education 5 5. Provision of Primary Education by free Market and Possibility of Market Failure 7 6. Conclusions and Recommendations 9 References 10 How do I receive the report? Once payment is made you will receive a link to you e-mail you have registered with on Pay Pal or the e-email you have entered when specifying bank details to download the report. The report is downloaded in PDF format. The link will stay active for 7 days. How can I use the report to complete my academic assignment/research? Reports and essays offered by research-methodology.net are professionally written samples in their respective areas. Reports and essays are intended to be used as guides and sources of secondary data for reference purposes. I did not receive the link/I can not download the report? If you have any difficulties…]]> https://research-methodology.net/analysis-of-implications-of-eu-enlargement-in-2004-on-uk-economy/ Sat, 04 Jan 2014 00:35:43 +0000 http://research-methodology.net/?p=5217 On May 1, 2004 the European Union (UN) has been enlarged to comprise additional ten countries with combined population of almost 75 million people. Specifically, new countries that formally entered EU consist of Estonia, Latvia, Lithuania, Poland, Czech Republic, Hungary, Slovakia, Slovenia, Cyprus and Malta. This important geo-political event has had significant implications on national economic, social and political life of all original member countries of the EU (Europa, 2013, online).This essay analyses the impacts of EU enlargement on the state of national economy in the UK focusing on labour migration. The essay starts with discussions about the reasons for the enlargement of EU in 2004. This is followed by analysis of implications of enlargement of EU to the state of national economy in the UK as compared to expectations. Moreover, the essay is going comprises the overview of measures initiated by the UK government in order to address the potential negative implications of the EU enlargement on the state of the national economy in the UK. The essay is concluded by discussing various scenarios in the development of immigration policies in the UK with the aims of protecting national economy from negative impact of a range of internal and external factors. After the fifth EU enlargement in 2004, the majority of Western European countries (EU15) have introduced temporary restrictions on the movement of individuals from newly EU member states in order to protect their national economies from the large uncontrolled inflow of low-skilled immigrants. Such restrictions were not applied only by the UK, Ireland, and Sweden (Longhi and Rokicka, 2012), and the implications of this government decision for the UK are assessed further below. Introduction 1 Reasons for the enlargement of EU in 2004 2 Implications of enlargement of EU to the state of national economy in the UK…]]> https://research-methodology.net/the-scope-of-youth-unemployment-problem-in-the-uk/ Wed, 25 Dec 2013 13:13:00 +0000 http://research-methodology.net/?p=5222 Unemployment is serious social and economic issue for the society, and unemployed individuals in many levels. Unemployment amongst young people is considered to be a special case as “young people between their required school life and their first job are very susceptible to unemployment” (Kurten, 2007, p.3). Moreover, a high level of youth unemployment has massive negative implications for the government on short-term and long-term perspectives. According to International Labour Office (2012), individuals aged between 16 – 25, who are available for work in 15 days, not currently employed, and are looking for employment opportunities in an active manner can be classified as young unemployed. However, in the UK, the age range of young unemployed individuals is specified as 16 – 24 years old. The level of youth unemployment has been consistently rising in the UK during the past several years (Figure 1). Moreover, it has been estimated that the numbers of young individuals who have not been working for more than 2 years have increased from 40,000 to more than 100,000 during the last four years, amounting to the increase of 168 per cent, and the numbers of Job Seeker Allowance claimants amongst young people have increased 315 per cent during the last six month (Al-Katib, 2012). Figure 1 Youth unemployment and inactivity statistics Source: Office of National Statistics (2012) The lack of skills and experience amongst young people in the UK is considered to belong to the list of major reasons behind increasing level of unemployment. Moreover, continuing economic problems in the EU and the UK have been found to have negative implications on the local job market in UK in general, and the job market for young people in particular. There is a stark difference on the levels of employment amongst young people who are engaged in…]]> https://research-methodology.net/increasing-level-of-youth-unemployment-in-uk/ Sat, 21 Dec 2013 13:24:06 +0000 http://research-methodology.net/?p=5163 This paper represents a case study report devoted on the issue of increasing levels of youth unemployment in the UK. The report starts with a brief description of relevant existing key policies. This is followed by the identification of gaps on youth unemployment that need to be addressed. The report also contains discussions about relevant policy goals and the extent of their alignment with government preferences. Moreover, relevant policy options analyses are included in this report with detailed explanations of two the most suitable and appropriate policy options taking into account present economic and political circumstances in the UK. The report is concluded by making recommendations regarding the implementation of a specific policy option with detailed explanations provided. Youth unemployment is proving to be a serious challenge in the UK with highly negative short-term and long-term economic and social implications. Specifically, nearly 1.5 million, or more than 20 per cent of young people in the UK are found to be not engaged in education, employment or training (ACEVO, 2012). Moreover, according to estimations, the net present value cost of youth unemployment for the next ten years is going to amount to £28 billion (ACEVO, 2012). A wide range of negative implications of youth unemployment include negative impact on national economy for short-term and long-term perspectives, negative impact on future earning potentials of youth involved, detrimental impacts on mental and individual health of young individuals involved (Gregg et al., 2011), and increase in the level of anti-social behaviour within the society (Howell, 2005). The major reasons for increasing levels of youth unemployment in the UK have been specified as the recent global economic and financial crisis, failure in the UK immigration policies (Sunley et al., 2011), and systematic employment policy failures (Furlong, 2012). 1. Introduction: Nature of the Problem 1 2.…]]>