Principles of Macroecomomics Essay Example | Topics and Well Written Essays - 2500 words

Principles of Macroecomomics - Essay Example Unemployment can be measured by the claimant count or the standardized ILO unemployment measure. (Abel, 2010) Unemployment can be classified into two broad categories: Equilibrium unemployment and Disequilibrium unemployment. When Aggregate Demand for Labor (ADL) equals Aggregate Supply of Labor (ASL) at market wage rate, the labor market is said to be in equilibrium. The difference between the ASL and the labor force is known as equilibrium unemployment or the natural rate of unemployment. This represents the excess of people looking for work over those actually willing to accept jobs. This can be seen in the graph shown below. (Dornbusch, 2006) As shown in the diagram above, distance AB is the equilibrium unemployment. This type of unemployment may occur due to frictional (irreducible minimum level of unemployment in a dynamic and growing economy), structural (resulting from the mismatch of skills and job opportunities), regional (associated with specific regions often due to the c oncentration of industries in a region) or seasonal (associated with industries or regions where demand for labor is lower at certain times) causes. (Dornbusch, 2006) Disequilibrium unemployment occurs when real wages in the economy are above equilibrium level. This means either the ASL exceeds the ADL or that stickiness in wages prevents wages falling to equilibrium level. The labor market is in a state of disequilibrium, it may be due to real wage (unemployment created when labor wages are deliberately maintained above market clearing level) or demand deficient unemployment (associated with cyclical downturn or recession). (Dornbusch, 2006) Now let us take the consider interest rate. Interest is a rate at which the interest has to be paid by the borrower to the lender apart from the principle amount. Interest rate is a tool of the monetary policy which the government uses in order affect the money supply of the economy in order to achieve macroeconomic objectives. Interest rates a re of two types: real and nominal. Real interest rates are interest rates that are formed in accordance with the rate of inflation. On the other hand nominal interest rate refers to the amount, in money term of interest payable. (Dornbusch, 2006) There are many reasons that may lead to a change in the interest rates. Firstly, it may lead to short-term political gains. Politicians do this in order attain public support; however, it may later lead to problems later on. Deferred consumption may also lead to changes in interest rates. Speculation may lead to changes in the interest rates as well, for instance if consumers think that interest rates are going to rise, the consumers would demand more bonds and thus increase demand for bonds, this would lead to an even higher increase in interest rates. (McEachern, 2008) High levels of unemployment means that the economy is not functioning at its production possibility function, that is, it is underachieving and that it can produce more goo ds but that would require the economy to function more efficiently than it is doing right now. Unemployment imposes private, economic as well as social costs. In that not only does it represent a was of valuable resources but also causes suffering in terms of increased poverty, falling living standards and psychological disorders. Naturally, the costs of unemployment depend on its severity and duration. The costs

Marketing and Operations Management in Philips Electronics Assignment

Marketing and Operations Management in Philips Electronics - Assignment Example Operations Management Part 14 Critical Evaluation of the Operations Management Strategy of Phillips 15 Operations Management Performance Objectives 15 Order Qualifiers and Order Winners of Philips 17 Contribution Made By Operations Management 18 Recommendations/Solutions to the Company 19 References 20 Overview of the Company Royal Philips Electronics is a Dutch multinational company with its main branch in Amsterdam. The three main divisions of the company are Philips Consumer Lifestyle, Philips Healthcare and Philips Lighting. According to the statistics obtained in the 2012, it can be mentioned that Philips is one of the biggest producers of electronic products in the globe (Philips, 2012). The paper is divided into two parts. They are marketing activities of Philips and operations management of Philips. The marketing part of the paper attempts to identify the external environment of Philips and to evaluate the marketing strategy followed by the company. The study further endeavours to analyse various marketing tools used for the marketing of the products of Philips. The paper thus offers suggestions to the company regarding ways through which it can improve marketing activities. Furthermore, the operations management part of the study tries to critically evaluate the operations management strategy of Philips. It attempts to analyse the operations management performance objectives. ... The main political factors impacting the activity of the organisation are employment laws, policy stability, tax policy and environmental regulations. It can be stated that in most of the countries of European Union there has been major alterations in the employment law. It is noted that most of the countries are quite concerned with the environment and are making an attempt to reduce pollution. In such cases, Philips, being a large producer of electronic products, might need to focus largely upon providing environmentally friendly consumer goods to maintain its sustainability (Export Gov, 2012). The United Kingdom is the seventh major economy in the world and the third biggest economy in the European Union. With quite a few trade obstacles, the United Kingdom is the entry market into the European Union for nearly 41000 US exporters. This proves to be quite beneficial for Philips (Export Gov, 2012). The social and the cultural impact on business alter from one country to the other co untry and from one region to the other region. Philips has its operations in numerous countries and it is because of this reason that the company needs to operate in vast and diverse socio-cultural arenas with workforce belonging to varied cultures. It is quite significant for Philips to adjust themselves with these alterations in terms of customer expectations from region to region and be capable of catering to their needs and requirements. Most of the people belonging to the developed nations pay due attention towards the culture of a company. Philips can be considered as an ethical company who pays due consideration towards the needs and the wants of the customers (Export Gov, 2012). Philips is quite dependent upon the constantly altering technological up-gradations that are

How is wells fargo make money Essay Example for Free

How is wells fargo make money Essay Wells Fargo Company is a diversified financial services company providing banking, insurance, investments, mortgage and consumer finance for more than 23 million customers through 6,100 stores, the internet and other distribution channels across North America and elsewhere internationally. Headquartered in San Francisco, but were decentralized so every local Wells Fargo store is a headquarters for satisfying all customers financial needs and helping them succeeds financially. Wells Fargo has $483 billion in assets and 167,000 total team members across 80+ businesses. They are one of the United States top-40 largest private employers; ranked fifth in assets and fourth in market value of stock among their peers as of September 30, 2006 (Wells Fargo’s home page). Wells Fargo’s goal, however, is not to be the biggest, but to be the best. Wells Fargo’s website set forth its vision, which is â€Å"to satisfy all our customers financial needs and help them succeed financially. We want to be recognized as one of Americas great companies and the premier provider of financial services in every one of our markets, number one, second to none. † Loomis (17) states that Wells Fargo’s strategic initiatives include; increase the contribution to banking earnings from investments, trust, brokerage and insurance from 15 percent to 25 percent. Going for â€Å"gr-eight† Increase the number of products their consumer and business customers have with them to eight products per customer. Doing it right for the customer 100% bank-mortgage/home equity cross-sell all mortgage and home equity customers in banking states to bank with Wells Fargo and want all their banking customers who need a mortgage or a home equity loan to get it through Wells Fargo. Wells Fargo cards in every wallet; When, where and how Integrate all delivery channels stores, ATMs, Wells Fargo Phone Banksm, their online banking site, direct mail, interactive video—to match them with when, where and how their customers want to be served. â€Å"Information-based† marketing Use technology to take full advantage; offer the right product to the right customer at the right time at every point of customer contact. Be the customers’ payments processor. Premier customers Attract more and keep all existing premier customers and increase their numbers; and People as a Competitive Advantage- Continue to develop reward and recognize all team members. In 1852 Henry Wells and William Fargo founded Wells, Fargo Co. to serve the West. The new company offered banking (buying gold, and selling paper bank drafts as good as gold) and express (rapid delivery of the gold and anything else valuable). Wells Fargo opened for business in the gold rush port of San Francisco, and soon Wells Fargo’s agents opened offices in the other new cities and mining camps of the West. In the boom and bust economy of the 1850s, According to Hungerford, Wells Fargo earned a reputation of trust by dealing rapidly and responsibly with people’s money. In the 1860s, it earned everlasting fame and its corporate symbol with the grand adventure of the overland stagecoach line (99). Wells Fargo sent its business by the fastest means possible: stagecoach, steamship, railroad, pony rider or telegraph. In 1858, Wells Fargo helped start the Overland Mail Company the famed â€Å"Butterfield Line† to meet the demand for speedy communications across the west. In 1861, Wells Fargo also took over operations of the western leg of the famed, but short-lived, Pony Express (Scheele 250). In 1866, Wells Fargo combined all the major western stage lines. Stagecoaches bearing the name Wells, Fargo Co. rolled over 3,000 miles of territory, from California to Nebraska, and from Colorado into the mining regions of Montana and Idaho. After the completion of the transcontinental railroad in 1869, Wells Fargo increasingly rode the rails. In 1888, after expanding along the new steel network across the Northeast into New York, Wells Fargo became the country’s first nationwide express company. It adopted the motto â€Å"Ocean-to-Ocean† to describe its service that connected over 2,500 communities in 25 states, and â€Å"Over-the-Seas† to highlight its lines linking America’s increasingly global economy. Wells Fargo rushed customers’ business from the urban centers of New York and New Jersey, through the rail hub of Chicago and farming regions of the Midwest, to ranching and mining centers in Texas and Arizona, and to lumber mill towns in the Pacific Northwest. Wells Fargo agents in towns large and small offered basic financial services like money orders, travelers’ checks, and transfer of funds by telegraph. Always, though, wherever there was mining, from Alaska to Arizona, Wells Fargo guarded the gold. By 1910 the Company’s network linked 6,000 locations, including new offices in the Upper Midwest and Great Lakes regions. It was in these towns that the famed â€Å"Wells Fargo Wagon† delivered goods of all sorts, from a grey mackinaw to some grapefruit from Tampa, as the song from the Music Man goes (Hungerford 97). By 1918 Wells Fargo was part of 10,000 communities across the country. That year, however, the federal government took over the nation’s express network as part of its effort in the First World War. Wells Fargo was left with just one bank in San Francisco. Wells Fargo Co’s Bank, San Francisco (as it was called since 1852), formally separated in 1905 from Wells Fargo Co Express. The bank then survived the disaster of the 1906 San Francisco Earthquake and Fire. Bank president I. W. Hellman telegraphed, â€Å"Building Destroyed, Vault Intact, and Credit Unaffected. † From that confident note, Wells Fargo began rebuilding its banking business across the West. In the 1910s and ’20s Wells Fargo served as a commercial bank in San Francisco, supporting the West’s growing business and agriculture, including fledgling auto, aerospace and film industries. The Wells Fargo Stagecoach became a regular actor in Hollywood westerns. Loomis (18) agreed that sound management helped the bank weather the Great Depression, serve the nation during World War II, and positioned the bank to meet new consumer banking needs in the prosperous post-war era. Through the 20th Century Wells Fargo rebuilt from just one office in San Francisco. From 1905 to 1923 it was a premier downtown San Francisco institution. Expanding in 1923 to two marbled banking halls, Wells Fargo was a â€Å"banker’s bank† that served the entire west. In 1960s prosperity, Wells Fargo became a northern California regional bank with branch offices everywhere people lived and played, from the coast to the mountains. In the 1980s Wells Fargo expanded into a state-wide bank and became the seventh largest bank in the nation and launched its online service (Wells Fargo home page). In the 1990s Wells Fargo returned to its historic territory throughout the Western, Midwestern and Eastern states. Today in the 21st Century, with extensive and diversified financial services, the Wells Fargo name once again extends â€Å"Ocean-to-Ocean,† â€Å"Over-the-Seas,† and, of course, On-Line. The famous image of the stagecoach and the reputation of the name saw Wells Fargo well through the mighty events and fantastic growth of the 20th Century. In prosperity, depression and war, even greater post-war prosperity, social changes and ever faster communications technologies, Wells Fargo’s attention to customers’ business has seen it through these great events and brought success. WORK CITED Hungerford, Edward. Wells Fargo: Advancing the American Frontier. New York: Random House, 1949. Loomis, Noel M. Wells Fargo. New York: Clarkson N. Potter, 1968. 17-18. Scheele, Carl H. A Short History of the Mail Service. Washington, DC: Smithsonian Institute Press, 1970. 250. Wells Fargo. Home page. 2006. 23 Nov. 2006 https://www. wellsfargo. com/about/history/adventure/modern_times.

15 Shows You Didnt Know Were Spin-Offs

15 Shows You Didnt Know Were Spin-Offs People out there constantly complain that theres nothing to watch on TV, but there have been tons of shows out there that werent well known enough or good enough to survive. In addition to these, there are TV shows that are on right now that people are/arent watching because they have no clue what theyre linked to. Yes, there have been a great deal of shows on TV that have been left alone or treated like the plague by viewers. However, before you dismiss the next series you see on your guide, check out these past and present spin-offs that were thought to have potential and the surprising shows they spawned. You might find something to watch tonight! Breaking Bad/ Better Call Saul (AMC) Half spin-off and half prequel to the hugely successful AMC series Breaking Bad, the newly created Better Call Saul was highly anticipated by many who were enthralled by Walter Whites misadventures. Those who arent so hip to their Breaking Bad trivia may not have known the two were even related due to Saul (AKA Jimmy McGill) being a lawyer and the show itself being a darker legal drama as opposed to a prime time crime-fest. Okay, so theres still crime, but yeah, Better Call Saul was popular right away (it had the highest basic cable ratings in history when its first episode aired). Beverly Hills, 90210/ Melrose Place/ 90210/ Melrose Place (FOX) Beverly Hills, 90210 was a prime time teen drama that swirled around the oh-so-complicated lives of teens as they make their way through high school and college in one of the most affluent zip codes in the US. Grant Shows character, Jake Hanson, was introduced to the world via Kelly (Jenny Garth) in the original 90210s second season, and he lived at Melrose Place. Geared towards an audience of college kids and adults who could figuratively empathize with the trials and tribulations of attempting to make it in LA, Melrose Place featured stunning performances by Heather Locklear, Marcia Cross, and then teen heartthrob, Andrew Shue. Melrose Place and Beverly Hills,90210 were very successful and lasted seven and ten seasons respectively. However, the spin-offs 90210 (2008 for five seasons) and Melrose Place (2009 for one season) didnt fare as well, and ended up being nixed pretty quickly. Pawn Stars/ American Restoration/ Counting Cars/ Pawnography (History) Men all over the place who have watched Las Vegass family pawn shop reality series Pawn Stars probably already know this, but Counting Cars and American Restoration are both spin-offs of this antique-driven History Channel show. In fact, many episodes of Pawn Stars feature the head honchos of the two series when Rick enlists their services to provide appraisals of the various artifacts people bring into his familys shop. All three of the shows are still running on History along with a third Jeopardy ­-like show Pawnography that started this last year and gives people an opportunity to win some of the treasures in Ricks shop. Bones/ The Finder (FOX) Aired for a single season back in 2012 on FOX, The Finder was a spin-off of the wildly popular Bones, which is currently in its 10th season. The main character, Walter (played by Geoff Stults), was introduced to Bones fans back in the 6th season of the show, and was followed around in his work for the first and only season of the spin-off. It is also the last known work of infamous The Green Mile actor Michael Clarke Duncan who played Leo Knox in the fated series. Degrassi Junior High/ Degrassi High/ Degrassi: The Next Generation (CBC/ CTV/MTV/ PBS/ TeenNick) Centuries ago, Degrassi Junior High followed the lives of young teens in Toronto. The continuation of the series saw the kids in DJH go to high school for, you guessed it, Degrassi High. The next spin-off was geared towards high school students as an after school special. There were original cast members from the previous two spin-offs who participated in Degrassi Talks, but it ended up fizzling out, making brief appearances during sex-ed classes all over Canada in the late 90s. The biggest show came in 2001 as DJHs teen mom Spikes daughter, Emma (Miriam McDonald), became a teen herself. Degrassi: The Next Generation was a huge hit on both sides of the border and helped propel stars like Nina Dobrev and Drake into their current careers. With a modernized list of teen issues, the show is still big and in its fourteenth season. The Vampire Diaries/ The Originals (The CW) Although the supernatural drama The Vampire Diaries has been renewed for a seventh season on The CW, they spawned a spin-off that focuses on TVD character Niklaus Mikaelson (played by Joseph Morgan) who was introduced during the second season of the show. The show is called The Originals and set in New Orleans after almost 100 years of the Mikaelson clan being gone from the city and the pressures of being a vampires, werewolves, and witches, oh my! Crocodile Hunter/ Bindi the Jungle Girl (Animal Planet/Discovery Kids) Given the fact that Steve Irwin was fatally shot in the heart by a stingray while filming one of his documentaries about wildlife, some may not remember our beloved Crocodile Hunter so much. His legacy as an animal-lover and wildlife advocate has been carried on by his wife, Terry, and their children. One of these, Bindi Irwin, landed herself her own nature show that was geared towards children and aired on both Animal Planet and Discovery Kids. The show provided highly educational material for kids all over the world and featured Steve before his 2006 death but only lasted two seasons. Now 16 years old, she still works with animals, so watch out for Bindi in the future. Toddlers Tiaras/ Here Comes Honey Boo-Boo (TLC) As controversial as childrens pageants are, TLC felt that its 2009 series Toddlers Tiaras was popular enough to make a spin-off. Outspoken little one, Honey Boo-Boo, was given her own show Here Comes Honey Boo-Boo that aired in 2012 and went for four seasons. It was like a car accident with redneck trailer trash parents trying to raise their kids to be like mama and papa bear (or Mama June and Sugar Bear), complete with farts, belches, and some gross-ass substance lurking between Mama Junes toes. Eventually, Mama June landed herself in some hot water when she and her husband became estranged; Mama June later became romantically involved with a registered sex offender and child predator who quickly came to live with the family. The show was canceled because of it. -and there went Honey Boo-Boo. MadTV/ Key Peele (Comedy Central) The Comedy Central sketch show Key Peele is hilarious, and of course it is! The show is a spin-off of FOXs MadTV, their answer to SNL,which aired for fourteen seasons. The main stars of Key Peele are former MadTV cast members Jordan Peele and Keegan-Michael Key who often worked together in sketches and had an unmistakable chemistry as comedians. Key Peeles fifth season returns to Comedy Central later this year. The Daily Show/ The Nightly Show with Larry Wilmore / The Colbert Report (Comedy Central) Everyone has been talking about Trevor Noah replacing Jon Stewart as host of the long-running Comedy Central hit after his 16 years at the helm. Although its two spin-offs The Colbert report and The Nightly Show with Larry Wilmore are often misconstrued as copycats, Stephen Colbert and Larry Wilmore have The Daily Show and Jon Stewart to thank for their success as news satire and comedy anchors on their own respective shows. Now, all three are out there providing laughs and poking fun at the top news of the day in politics, pop culture, and much more. JAG/ The entire NCIS collection (CBS) Im not sure how many people out there watched JAG, but the Navy-themed legal drama somehow lasted for nine seasons on CBS. Once the show hit its eighth season, a few characters from NCIS were introduced to viewers, and the procedural drama has been going for thirteen of its own seasons and has resulted, much like its rival CSI, in additional spin-offs that set in New Orleans and Los Angeles. Good Morning, Miss Bliss/ Saved By the Bell (NBC) Technically a reboot of Disneys Good Morning, Miss Bliss, NBCs smash hit with teens in the early 90s was the birthplace of many Hollywood stars careers. Saved by the Bell differed from Good Morning, Miss Bliss in that it was set in High School rather than junior high. Saved by the Bell focused on the lives of students Kelly Kapowski, Screech, Zack Morris, et al. right through to college while GMMB was all about their teacher Miss Bliss. Saved by the Bell ran from 1989 to 1993 and was the American equivalent of Degrassi for tons of kids growing up in the 90s. However, the college spin-off and resurfaced teen series didnt do well with viewers or critics, so they were both canceled after giving them both a fair chance to succeed. Jackass/ Viva la Bam/ Wildboyz/ The Jackass Movies (MTV) The disgusting, funny, and very successful Jackass franchise has seen many spin-offs. The original series aired for three seasons on MTV between 2000 and 2002, and saw cast member Bam Margera break off to film his hectic life at home in Viva la Bam. The series was much like Jackass but definitely more raunchy and hardcore in terms of pranks and stunts, which were unleashed on his friends and family. Chris Pontius and Steve-O branched out too with their own show entitled Wildboyz where the two traveled the world, messed around with exotic animals and cultures while performing dangerous stunts on camera. Jackasss spin-offs are still their six films are the most successful. Two were considered bonus footage reels and were released as Jackass 2.5 and Jackass 3.5, and another was Academy Award-nominated Bad Grandpa. Although critics are never happy with them, and Ryan Dunn, one of the main cast members, passed away in a tragic car accident after Jackass 3Ds release, director Jeff Tremaine has hinted that there may be another film in the making, and it might go down in Australia. Chicago Fire/ Chicago P.D. (NBC) As if it wasnt completely obvious by the name, right? Well, some people dont know that the two Chicago-based prime time dramas were linked. Both are very successful with Chicago Fire currently in its third season and Chicago P.D. being renewed for its third season earlier this year on NBC. If you watch, you can see the characters interlocked during emergencies and investigations that require both law enforcement and fire. The Tracey Ullman Show/ The Simpsons (FOX) Hosted by former Brit pop star Tracey Ullman, The Tracey Ullman Show was FOXs second prime time show following in the footsteps of MarriedWith Children and featured a lot of comedy, animated shorts, and musical skits. The variety show was on for four seasons between 1987 and 1990. During the first two years of its broadcasts, the show featured shorts made by none other than Matt Groening, which happened to commonly feature everyones fave yellow family The Simpsons. The animation portion of the show was cut in 1989 so that it could try its luck in its own half hour slot, and there was The Simpsons. -and theyre still going after 26 seasons!

Ritalin is Like Cocaine :: Drugs Addiction Essays

What is Ritalin? Ritalin, or methylphenidate, is a stimulant derived from the same family as cocaine. Manufactured by the Ciba-Geigy Corporation, a division of Novartis, Ritalin sales have increased by 700% since 1990. The United States market accounts for over 90% of the sales (Breggin, 1998). Ritalin is dispersed in pill form in varying amounts, either for short or long effects; the short-term form lasts 3-5 hours while the long-term form may last 6-8 hours. (SR) Ritalin is the slow release form that lasts longer. Ritalin, like other stimulant medications, works by increasing the production of neurotransmitters, such as dopamine and norepinephrine, in the brain. (Reif, 1998) Who uses Ritalin? Doctors generally prescribe Ritalin as their first choice in treating ADHD, or Attention Deficit Hyperactive Disorder. Approximately 3-5% of children in the world have ADHD, of those, about 4 million take Ritalin (Breggin, 1998). It is thought that ADHD may occur from low levels of dopamine and epinephrine in the brain; although that is a highly controversial topic, it makes Ritalin an obvious treatment. (http://www.restores_homepage.com/the_ritalin_generation.htm) What is ADHD? Many psychologists regard ADHD as a state deficit, where children are highly aroused to compensate for the body’s feeling of under arousal. (Kerns, Eso, Thomson, 1999) Three main features of ADHD are 1.Impulsivity, the children often act before they consider consequences 2.Hyperactivity, the children struggle to sit still 3.Inattentiveness, the children have difficulty focusing on a subject because of the overload of stimuli in the environment. Research may indicate that ADHD has biological origins and set symptoms, such as fidgeting, excessive talking, difficulty maintaining concentration, impulsive behavior, lack of focus and messiness. (http://www.mnsi.net/~collinsw/ritalin.htm) According to the Center for the Study of Psychiatry and Psychology, in a recent conference held by the NIMH, National Institute of Mental Health, the validity of the diagnosis of ADHD was held in question. (www.breggin.com) The cause of ADHD is unknown as of yet, and speculation is all psychologists have to diagnose and treat patients. The DSM-IV has categorized ADHD by the three dimensions listed above and included 18 symptoms under the three categories, which include some listed above. ADHD has undergone significant renaming and evaluation since the last publication of the Diagnostic Statistic Manual. Attention Deficit Hyperactivity, was referred to as ADD or sometimes ADD-H, Attention Deficit Disorder with hyperactivity. (www.journals.cup.org) Who Advocates Ritalin? Teachers, parents and doctors continue to advocate Ritalin despite the claims made by antagonists of the stimulant treatment.

Emily Dickenson And The Theme Of Death Essay -- GCSE English Literature

Emily Dickinson And the Theme of Death Emily Dickenson, an unconventional 19th century poet, used death as the theme for many of her poems. Dickenson's poems offer a creative and refreshingly different perspective on death and its effects on others. In Dickenson's poems, death is often personified, and is also assigned to personalities far different from the traditional "horror movie" roles. Dickenson also combines imaginative diction with vivid imagery to create astonishingly powerful poems. In the 1862 poem, After Great pain, a formal feeling comes--, Emily Dickenson presents death from the perspective of the bereaved. This poem is written in the third person, and informs the reader as to the actions and thoughts of the mourners through an omniscient narration. In contrast, most of Dickenson's other death related poems show the reader the perspective of the dead. The vivid imagery in this poem functions to enhance the reader's perception of the poem. The following passage conveys a resplendent physical sense of coldness as someone is frozen to death: "This is the Hour of Lead-- Remembered, if outlived, As Freezing persons, recollect the Snow-- First--Chill--then Stupor--then the letting go--" The innovative diction in this passage creates an eerie a...

Argentina Pestle Analysis

Argentina government has a strong democratic setup. In 2011, President Fernandez de Kirchner won the presidency for the second time. Her government has been successful at introducing reforms to encourage regional trade and support private sector investment, particularly for the development of the country’s infrastructure, primarily through private-public partnership. The government has also announced the creation of the oil planning commission, emphasizing its interest in the oil industry1.The Fernandez government is increasingly reliant on interventionist policies that fail to solve underlying structural problems and has been involved in several inflation figures manipulation and corruption charges, including a commotion with the International Monetary Fund (IMF) concerning inaccurate governance indicators impairing the economic outlook and deterring investment2. This has generated public discontent raising increasing protest against the government and a rapid decline in Fern andez popularity3.Argentina foreign policies are mainly concentrated on developing regional trading relations (Mercosur and UnaSur), the country has a good partnership with the UN and has been working on improving relations with the US, with particular interest to develop the technology and science sectors. Nevertheless, relations with the UK have deteriorated following an official complaint to the UN regarding the Falkland Islands4.ECONOMICFollowing the global financial crisis the Argentine economy has achieved a healthy recovery, predominantly through an increasing trade relationship with China, boosting substantially the country’s trade volume and generating a trading surplus5. However, the major concern for the economy is inflation and the great discrepancy of approximately 15% between official and non-governmental estimates. In addition, the government has increased regulatory intervention and thus reduced economic freedom and development.The government’s recent n ationalisation of oil giant YPF owned by the Spanish Company Repsol and of the private pension funds have furthermore hindered private and foreign investment. These factors combined with high public debt levels and low foreign-exchange reserves have constrained the potential for economic growth and left the country at increased risk of recession. Argentina has a strong automotive industry. The government is aiming to attract further investments into the country’s automotive sector by lessening the regulatory framework obstacles and offering subsidies and incentives6.SOCIALArgentina is a traditionally urban country and continues to experience high migration from rural areas. The urban centres enjoy a relatively high standard of living comparable to other Latin American countries, with notable healthcare and educational facilities. Argentina is facing the problems posed by an aging population. This is projected to affect government's social security budgets and generate fiscal burdens. Despite a comprehensive education system restructuring and an improving primary school education system, dropout rates continue to rise sharply7.This will eventually lead to a significant increase in the proportion of unskilled workers. TECHNOLOGICAL With a strong telecommunications industry and a growing IT market, Argentina has shown significant growth in both sectors. The government has implemented plans to augment IT service penetration in rural areas. In addition, it has supported biofuel R&D in an effort to preserve energy security and accelerate technological development8.Argentina’s energy industry is in a deplorable state as they are now a net energy importer, eroding the country’s foreign-currency reserves9. As a result, the government has shown an increasing interest in science and technology and in the biotechnology industry. However, as a result of inadequate investment in R&D, there is a low degree of innovation resulting in a reduced number of p atents granted. Moreover, the lack of respect for intellectual property rights and copyrights has exacerbated the problem. LEGALArgentina has a comprehensive legal and regulatory structure and a federal republican representative government, where each province has its own constitution. In addition, complex and bureaucratic business regulations and strong union and government ties have resulted in wages increasing at 25-35% annual rates. Furthermore, high taxes have been detrimental to investment. For instance, income and corporate tax rates are both set at 35% added to corporate social security tax of between 23% and 27%. These additional costs place an undue burden in industry10.Notwithstanding the introduction of criminal liability for money laundering offences, the judicial system requires an important overhaul to improve its effectiveness and to generate a conducive environment for new business ventures and investments.ENVIRONMENTALDespite having a remarkable biodiversity and va st natural resources, the Argentinian government has been overexploiting its natural resources as a side effect of the rapid economic development. Increasing deforestation and the destruction of natural habitats have been accelerated by soybean cultivation and beef production11.Water and air pollution are major problems, particularly around industrial metropolitan areas. Rising concerns over environmental degradation have resulted in ambitious schemes from the government to develop renewable energy sources. The government has initiated measures to collaborate with prominent multinational organisations to develop biofuel production with particular interest in ethanol from sugarcane pulp12. Moreover, the Argentine government, in partnership with Chinese investments is constructing the largest wind power project in Latin America and is projected to provide 4% of Argentina’s power requirements. ï » ¿Argentina PESTLE analysis POLITICALArgentina government has a strong democratic setup. In 2011, President Fernandez de Kirchner won the presidency for the second time. Her government has been successful at introducing reforms to encourage regional trade and support private sector investment, particularly for the development of the country’s infrastructure, primarily through private-public partnership. The government has also announced the creation of the oil planning commission, emphasizing its interest in the oil industry1.The Fernandez government is increasingly reliant on interventionist policies that fail to solve underlying structural problems and has been involved in several inflation figures manipulation and corruption charges, including a commotion with the International Monetary Fund (IMF) concerning inaccurate governance indicators impairing the economic outlook and deterring investment2. This has generated public discontent raising increasing protest against the government and a rapid declin e in Fernandez popularity3.Argentina foreign policies are mainly concentrated on developing regional trading relations (Mercosur and UnaSur), the country has a good partnership with the UN and has been working on improving relations with the US, with particular interest to develop the technology and science sectors. Nevertheless, relations with the UK have deteriorated following an official complaint to the UN regarding the Falkland IslandsECONOMICFollowing the global financial crisis the Argentine economy has achieved a healthy recovery, predominantly through an increasing trade relationship with China, boosting substantially the country’s trade volume and generating a trading surplus5. However, the major concern for the economy is inflation and the great discrepancy of approximately 15% between official and non-governmental estimates. In addition, the government has increased regulatory intervention and thus reduced economic freedom and development.The government’s r ecent nationalisation of oil giant YPF owned by the Spanish Company Repsol and of the private pension funds have furthermore hindered private and foreign investment. These factors combined with high public debt levels and low foreign-exchange reserves have constrained the potential for economic growth and left the country at increased risk of recession.Argentina has a strong automotive industry. The government is aiming to attract further investments into the country’s automotive sector by lessening the regulatory framework obstacles and offering subsidies and incentives6.SOCIALArgentina is a traditionally urban country and continues to experience high migration from rural areas. The urban centres enjoy a relatively high standard of living comparable to other Latin American countries, with notable healthcare and educational facilities. Argentina is facing the problems posed by an aging population. This is projected to affect government's social security budgets and generate f iscal burdens.Despite a comprehensive education system restructuring and an improving primary school education system, dropout rates continue to rise sharply7. This will eventually lead to a significant increase in the proportion of unskilled workers.TECHNOLOGICALWith a strong telecommunications industry and a growing IT market, Argentina has shown significant growth in both sectors. The government has implemented plans to augment IT service penetration in rural areas. In addition, it has supported biofuel R&D in an effort to preserve energy security and accelerate technological development.Argentina’s energy industry is in a deplorable state as they are now a net energy importer, eroding the country’s foreign-currency reserves9. As a result, the government has shown an increasing interest in science and technology and in the biotechnology industry. However, as a result of  inadequate investment in R&D, there is a low degree of innovation resulting in a reduced numbe r of patents granted. Moreover, the lack of respect for intellectual property rights and copyrights has exacerbated the problem.LEGALArgentina has a comprehensive legal and regulatory structure and a federal republican representative government, where each province has its own constitution. In addition, complex and bureaucratic business regulations and strong union and government ties have resulted in wages increasing at 25-35% annual rates. Furthermore, high taxes have been detrimental to investment. For instance, income and corporate tax rates are both set at 35% added to corporate social security tax of between 23% and 27%. These additional costs place an undue burden in industry.Notwithstanding the introduction of criminal liability for money laundering offences, the judicial system requires an important overhaul to improve its effectiveness and to generate a conducive environment for new business ventures and investments.ENVIRONMENTALDespite having a remarkable biodiversity and vast natural resources, the Argentinian government has been overexploiting its natural resources as a side effect of the rapid economic development. Increasing deforestation and the destruction of natural habitats have been accelerated by soybean cultivation and beef production11. Water and air pollution are major problems, particularly around industrial metropolitan areas.Rising concerns over environmental degradation have resulted in ambitious schemes from the government to develop renewable energy sources. The government has initiated measures to collaborate with prominent multinational organisations to develop biofuel production with particular interest in ethanol from sugarcane pulp12. Moreover, the Argentine government, in partnership with Chinese investments is constructing the largest wind power project in Latin America and is projected to provide 4% of Argentina’s power requirements.