StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Long Term Decisions - Research Paper Example

Cite this document
Summary
Long-Term Decisions Name: Instructor: Task: Date: Long-Term Decisions The government plays major role through its intervention in the market system. However, these interventions are two sided. There are benefits for its intervention as well as drawbacks. Nonetheless, major economists encourage government’s participation in the market system because of a number of reasons…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.1% of users find it useful
Long Term Decisions
Read Text Preview

Extract of sample "Long Term Decisions"

Download file to see previous pages

This infrastructure is what fast tracts quick growth of business developments in the country and creates a workable business environment. This makes the country a good investment hub as it has the appropriate infrastructure for business development. The government’s involvement also leads to improvement in the infrastructure institutionally. This is where the government regulates performance of business to curb transaction vices such as corruption and fraud. Consumers would have to bear a heavy burden of high prices facilitated by calculated behind the scene moves by some unscrupulous traders who want fleece consumers of their hard-earned coin if price setting is left to the forces of demand and supply.

The government comes in to set price controls in order to make the goods affordable to low income earners enable the manufacturers get the right return on their investment. The government’s main role is to control and maintain this balance. Other cases of government’s involvement in the market system are the high investment projects. These are investment projects that need huge capital for them to pick up and that the country must have. The government has to take up the task since to private investors lack the financial muscle to undertake it.

Such projects include electricity generation and distribution for the entire country, harbors and airports of international stature e.t.c On the other hand, government’s involvement in business is discouraged considering its drawbacks such as the cumbersome procedures encountered due to the bureaucracy in formation of the business. This leads to market inefficiencies due to the time and money wasted in boardroom meetings to come up with the right policies and structures to legitimize every business transaction such as licensing, leasing, taxation, e.t.c leading to delay in decision making thus the industry is unable to take advantage of emerging opportunities due to its rigidity.

The civil servants who lack incentives from the government such as good salaries and allowances also lead to inefficiency in the market system. This is because they are not well motivated. Due to their low salaries, they, together with board members who are regulators of the system, engage in corruption and fraud to make an extra coin. This is common in tax officials who will opt to take huge tax bribes to wipe off a tax offender’s record instead of enforcing the set laws. Too much involvement of the government in the market system may lead to miscommunication in the industry.

These is because the participants feel the government is too strict or firm thus fear to pass across information that may be vital for the smooth running and operations of businesses in the market process. This eventually leads to turbulent effects in the market such as deflation, inflation, and economic depressions. Such tides are usually very unconducive for business performance as it wrecks its environment. The USA is the leading world economy. As such, the government intervenes in the market process to ensure that this remains so and that the USA citizens enjoy the best there is to offer.

The government intervenes to regulate FDI investments. This is because it wants to ensure that the country owns a major stake or controllable share in the establishment. The USA has the largest market in the world and many businesses seek to share part of it. The country has a mixed economy.

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Long Term Decisions Research Paper Example | Topics and Well Written Essays - 1000 words”, n.d.)
Long Term Decisions Research Paper Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/business/1464904-long-term-decisions
(Long Term Decisions Research Paper Example | Topics and Well Written Essays - 1000 Words)
Long Term Decisions Research Paper Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/business/1464904-long-term-decisions.
“Long Term Decisions Research Paper Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/business/1464904-long-term-decisions.
  • Cited: 0 times

CHECK THESE SAMPLES OF Long Term Decisions

A Model of International Company that Trades with Lubricants

Long Term Decisions involve capital investments decisions while short term decisions involve managing the working capital.... The decision made may be classified as short term or long term.... These decisions are made using analytical tools.... In this paper, a model international company is created that trades with lubricants....
10 Pages (2500 words) Term Paper

International Strategic Supply Management

All organizations exist for certain purpose or goals; initially the role of managers is to guide organizations towards goal achievement.... Managers are responsible for utilizing and combining company's resources and guide… Managers have to guide organizations towards goal accomplishment by assigning work to members of the organization and keeping a watch that if work is being done efficiently....
7 Pages (1750 words) Term Paper

Role and Purpose of Accounting Information Systems

Accounting information system refers to a system that collects, processes, and stores the accounting and financial data used by the decision makers and the organization in general.... An accounting information system provides timely and accurate financial information for internal… It employs physical resources and components to transform data into information, which can be used by the management and owners of the business....
5 Pages (1250 words) Term Paper

Managing Oneself

It is crucial to recognize probable gaps in education, weak points, and lack of experience to be able to act adequately in any critical situation.... It is also important to… e personal strengths without overestimating them because arrogance and ignorance can disable a person, a manager when serious actions must be taken (Drucker, 1999)....
9 Pages (2250 words) Term Paper

Importance of Ethical Practices in Business Decisions

The paper "Importance of Ethical Practices in Business decisions" tends to highlight both on the positive and negative side of ethical decision making approaches and activities.... Ethical decisions making activities are conducted in a business organization based on codes of ethical practices.... Ethical behaviour within the business organizations is conducted to help in the generation of business decisions to focus on the welfare of the citizens....
6 Pages (1500 words) Term Paper

Evaluation of Human Resource Management Activities

In this paper, the author demonstrates the identifies the current HR strategies at British Airways and offers a critical appraisal of the policies' effectiveness overall.... And also author describes The firm's largest strengths and The largest weakness at British Airways....  … Unlike some other companies which focus on profitability as the primary factor, where human capital is considered an asset for only its value to the firm's financial portfolio, British Airways appears to remain devoted to providing excellence in using equality to enhance staff motivation and has also developed a performance management system....
13 Pages (3250 words) Term Paper

Absorption Coasting versus Marginal Costing

The author compares the approaches for allocating expenses incurred in the process and calculating profit realized which also influences the planning activities.... The commonly used approaches are marginal and absorption.... They are different in application hence are both relevant in a production firm....
9 Pages (2250 words) Term Paper

Seeking Help from a Long-Term Facility

The paper entitled 'Seeking Help from a Long-term Facility' presents bioethics which is related to the ethical dilemmas encountered by the professionals, administrators, management and policymakers for carrying out the business activities with fairness.... long-term care facility is defined as a place or institution like a skilled nursing facility and nursing home which provides healthcare services to individuals who lack the capability of managing their routine or specialized activities within the community (Gabel, 2011)....
8 Pages (2000 words) Term Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us