StudentShare solutions
Triangle menu

Managerial Economics College - Essay Example

Not dowloaded yet

Extract of sample
Managerial Economics College

Deprivatization will discourage foreign direct investment, this is because investors will fear the occurrence of such a situation in the future and therefore will prefer to invest in other regions. There are some factors that encourage foreign direct investment which include political stability and well defined property rights and when investors learn that political influences will occur they will not invest. Foreign direct investment has advantages in that it increases job opportunities, pay taxes to the government from profits earned, lead to the sharing of information and technologies and also stimulates economic growth, in future less foreign direct investment will decline and these advantages will not be realized.
Privatization was aimed at making inefficient public owned businesses to become more efficient when owned by private investors, when this is reversed then we expect to see a decline in the efficiency of these firms in the economy. This is due to competition which will lead to a reduction in the prices of products, better quality and improved consumer choices.
The government will have a way in which to implement policies and therefore will have a hand in controlling the economy, deprivatization in most cases occur when there is economic distress and it is aimed at improving the current situation in the economy.
Investo
Those who gain and loose:
Investors have over the years developed the firms they acquired and this has added value to the firms over the years, previous loss making firms have been improved by these investors who have converted the firms into profit making firms. Therefore when the investors are deprived off their firms they will loose and the individuals, government or investors who are accorded the firm will gain.
In some cases where products produced by the government are subsidized then privatization leads to an increase in prices, when the government owns these firms then the consumers will experience a reduction in the price of goods and services produced by these firms and therefore gain.



Why politicians support these policy:
Politicians want mass deprivatization of these firms due to some disadvantages they cause in the economy, one of this disadvantage is that foreign investors will repatriate profits to their home country and therefore does not benefit the host country, the other problem is that they bring stiff competition to the various industries and host country firms will close down due to competition. Finally the politicians will want investors in the country to invest in these firms and not foreigners and they will not want illegal allocation of these resources to some individuals.
The performances of a government in power is required to safe guard state property and not transfer property to individuals, for this reason therefore politicians may want to increase government popularity by safeguarding public property by deprivatization.
The public owned firms in the market are seen as a tool to further the government goals, when the government acquires these firms then it will be possible for the government to further economic and social goals in the whole nation. Finally private firms may be producing less than the demanded amount, this is because the private owners aim at increasing profits in the short run but the state will ...Show more

Summary

Russia decided to adopt a market economy and sold off its state owned industries and businesses, the majority of investors were foreign investors while managers who were working in these industries and businesses also acquired them illegally. This will affect the level of foreign direct investment and also the population.
Author : gutkowskihermin
Managerial Economics College Essay essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Managerial Economics College Essay"
with a personal 20% discount.
Grab the best paper

Related Essays

Essay in Managerial Economics
When the performance of a given firm is linked to the executive, it can generate a desired incentive that would enable the managers to bring their interest into line with those of the shareholders. The executives may be faced with dismissal following an action they undertook where the interests of the shareholders are not met.
9 pages (2250 words) Essay
Global Managerial Economics Master Essay
It is a contentious, or controversial, process. A popular view of globalization is the integration of markets, nations/states, and markets in order to reach the globe faster and more efficiently. (Globalization Debates, 2000-2001). Due to globalization, Mexico faces losses in regards to Acme Automotive.
2 pages (500 words) Essay
International Economics College Essay
Amongst the several reasons for interaction, some are the development of Trade and Commerce, ensuring friendly ties to assure assistance in times of need, and countries having common goals are helpful to each other in assisting the same Of these few reasons, the one that is essentially important is Development of Trade and Commerce.
6 pages (1500 words) Essay
Micro Economics College Essay
Normally, when a good has high demand with a given supply, the price for the same tends to come up and when it is demanded by a few, the price tends to come down. But, it is to be noticed that this relationship between price, demand and supply do not hold good always.
4 pages (1000 words) Essay
Managerial Economics Master Essay
The merchandise trade and current account deficits being experienced by the US causes a stir in the economy. A key to understanding the economic situation of the United States in relation to its global partners is the concept known as the current account.
2 pages (500 words) Essay
Managerial Economics Essay
This is in contrast with market economies, market economies are characterized by minimum control of prices and production by the government, prices are determined by the demand and supply in the market. Many scholars have stated that government intervention in the market only makes things worse but they also state that government intervention is appropriate when market failure occurs, therefore this can explain the failure of the Soviet Union communist era which was characterized by direct control of government in the market.
4 pages (1000 words) Essay
Managerial Decision Making College Essay
ich they would cater almost every individual of the society, the data collection is quite vague as well as they have made the research form available at the website while knowing that may be the person logging in is just a net surfer or may be some irrelevant person who has logged in to take some basic information has visited the website, who might not have any know-how of such financial products.
5 pages (1250 words) Essay
Economics College Essay
As the economy of the country is a relatively more mature one, it grows slower than other rapidly industrializing economies like China. During 2000, the economy posted a robust GDP annual growth of 3.7%. However, the economy entered into a period of recession in 2001 which can be largely attributed to the 9-11 terrorist attack.
2 pages (500 words) Essay
Monetary Economics College Essay
We retrieve data to check the trend of interest rates over the years to determine whether the statement is true. The following chart summarizes the rates over the past 40 years. The chart shows us the trend in interest rates over the past 40 years, the past 10 years according to the chart shows a period of low and prolonged low interest rates.
2 pages (500 words) Essay
Managerial Economics 610
tudent’s work, submitting this exam’s answers written wholly or partly by other(s), “rendering” on electronically available sources and collaborating without the professor’s permission, However your aspirations call for a promotion attempt. The Dept’s policy
7 pages (1750 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation