Managerial Economics Week 7 Individual Work Assignment

Managerial Economics Week 7 Individual Work - Assignment Example The information asymmetry by the buyer will enable him/her to go for more quality tests on the product. An experience good is a good in which its prices and quality are in question by the consumers. After the consumption, the consumer will then be able to ascertain the quality of the product. Consumers then are more likely to pay higher prices for the product because lower prices by the notorious firm will raise the consumers’ eyebrows. Consumers will also be able to question whether there are some problems, which cannot be observed in the market but only upon consumption. Higher prices indicate how genuine the product can be thus consumers will go for the product at higher prices. Good branding of the products will also contribute towards higher prices by consumers (Holt, 2009). In the long-run, consumers will opt to paying lower prices. The decision to pay lower prices results from the fact that one gets to know the quality of the product after its

Friction Lab Essay Example for Free

Friction Lab Essay Discussion and Review Whenever a body slides along another body a resisting force is called into play that is known as friction. This is a very important force and serves many useful purposes. A person could not walk without friction, nor could a car propel itself along a highway without the friction between the tires and the road surface. On the other hand, friction is very wasteful. It reduces the efficiency of machines because work must be done to overcome it and this energy is wasted as heat. The purpose of this experiment is to study the laws of friction and to determine the coefficient of friction between two surfaces. THEORY Friction is the resisting force encountered when one surface slides over another. This force acts along the tangent to the surfaces in contact. The force necessary to overcome friction depends on the nature of the materials in contact, on their roughness or smoothness, and on the normal force but not on the area of contact or on the speed of the motion. We find experimentally that the force of friction is directly proportional to the normal force. When an object is sitting on a horizontal surface the normal force is just the weight of the object. However, if the object is on an incline then it is not equal to the weight but is calculated by N= mg cos ÃŽ ¸. The constant of proportionality is called the coefficient of friction,  µ. When the contacting surfaces are actually sliding one over the other the force of friction is given by Equation 1: Ffr =  µk FN where Ffr is the force of friction and is directed parallel to the surfaces and opposite to the direction of motion. FN is the normal force and  µk is the coefficient of kinetic friction. The subscript k stands for kinetic, meaning that  µk is the coefficient that applies when the surfaces are moving  one with respect to the other.  µk is therefore more precisely called the coefficient of kinetic or sliding friction. Note carefully that Ffris always directed opposite to the direction of motion. This means that if you reverse the direction of sliding, the frictional force reverses too. In short, friction is always against you. Friction is called a non-conservative force because energy must be used to overcome it no matter which way you go. This is in contrast to what is called a conservative force such as gravity, which is against you on the way up but with you on the way down. Thus, the energy expended in lifting an object may be regained when the object descends. Yet, the energy used to overcome friction is dissipated, which means it is lost or made unavailable as heat. As you will see in your later study of  physics the distinction between conservative and non-conservative forces is a very important one that is fundamental to our concepts of heat and energy.  A method of checking the proportionality of Ffr, and FNand of determining the proportionality constant  µk is to have one of the surfaces in the form of a plane placed horizontally with a pulley fastened at one end. The other surface is the bottom face of a block that rests on the plane and to which is attached a weighted cord that passes over the pulley. The weights are varied until the block moves at constant speed after having been started with a slight push. Since there is no acceleration, the net force on the block is zero, which means that the frictional force is equal to the tension in the cord. This tension, in turn, is equal to the total weight attached to the cords end. The normal force between the two surfaces is equal to the weight of the block and can be increased by placing weights on top of the block. Thus, corresponding values of Ffr,and FN can be found, and plotting them will show whether Ffrand FN are indeed proportional. The slope of this graph gives  µk. When a body lies at rest on a surface and an attempt is made to push it, the pushing force is opposed by a frictional force. As long as the pushing force is not strong enough to start the body moving, the body remains in equilibrium. This means that the frictional force automatically adjusts itself to be equal to the pushing force and thus to just be enough to balance it. However, there is a threshold value of the pushing force beyond which larger values will cause the body to break away and slide. We  conclude that in the static case where a body is at rest the frictional force automatically adjusts itself to keep the body at rest up to a certain maximum. But if static equilibrium demands a frictional force larger than this maximum, static equilibrium conditions will cease to exist because this force is not available and the body will start to move. This situation may be expressed in equation form as: Equation 2: Ffr ≠¤  µsFN or Ffr max =  µsFN Where Ffris the frictional force in the static case, Ffr max is the maximum value this force can assume and  µsis the coefficient of static friction. We find that  µsis slightly larger than  µk. This means that a somewhat larger force is needed to break a body away and start it sliding than is needed to keep it sliding at constant speed once it is in motion. This is why a slight push is necessary to get the block started for the measurement of  µk. One way of investigating the case of static friction is to observe the so-called limiting angle of repose. This is defined as the maximum angle to which an inclined plane may be tipped before a block placed on the plane just starts to slide. The arrangement is illustrated in Figure 1 above. The block has weight W whose component WcosÃŽ ¸ (where ÃŽ ¸ is the plane angle) is perpendicular to the plane and is thus equal to the normal force, FN. The component Wsin ÃŽ ¸is parallel to the plane and constitutes the force urging the block to slide down the plane. It is opposed by the frictional force Ffr, As long as the block remains at rest, Ffr must be equal to W sin ÃŽ ¸. If the plane is tipped up until at some value ÃŽ ¸max the block just starts to slide, we have: Equation 3: But: Hence: Or: Thus, if the plane is gradually tipped up until the block just breaks away and the plane angle is then measured, the coefficient of static friction is equal to the tangent of this angle, which is called the limiting angle of repose. It is interesting to note that W cancelled out in the derivation of Equation 3 so that the weight of the block doesnt matter. PROCEDURE This experiment requires you to record measurements in Newtons. Remember that in SI units the unit of force is called the Newton (N). One Newton is the force required to impart an acceleration of 1m/s2 to a mass of 1 kg. Thus 1 N = 1 kg.m/s2. You can convert any kg-mass to Newtons by multiplying the kg-weight by 9.8 m/s2, i.e., 100 g = 0.1 kg = 0.1 x 9.8 = .98 N. 1. Determining force of kinetic or sliding friction and static friction a. The wooden blocks provided in the LabPaq are too light to give good readings so you need to put some weight on  them, such as a full soft drink can. Weigh the plain wood block and the object used on top of the block. Record the combined weight in grams and Newtons. b. Place the ramp board you provided horizontally on a table. If necessary tape it down at the ends with masking tape to keep if from sliding. c. Begin the experiment by setting the block and its weight on the board with its largest surface in contact with the surface of the board. Connect the blocks hook to the 500-g spring scale. d. Using the spring scale, slowly pull the block lengthwise along the horizontal board. When the block is moving with constant speed, note the force indicated on the scale and record. This is the approximate kinetic or sliding frictional force. Repeat two more times. e. While carefully watching the spring scale, start the block from rest. When the block just starts to move, note the force indicated on the scale and record. You should notice that this requires more force. This force is  approximately equal to the static frictional force. Repeat two more times. Determining coefficient of static friction using an inclined surface a. Place the plain block with its largest surface in contact on the board while the board is lying flat. b. Slowly raise one end of the board until the block just breaks away and starts to slide down. Be very careful to move the plane slowly and smoothly so as to get a precise value of the angle with the horizontal at which the block just breaks away. This is the limiting angle of repose ÃŽ ¸ max. Measure it with a protractor (see photo that follows for an alternate way of measuring the angle) and record the result. You may also want to measure the base and the height of the triangle formed by the board, the support, and the floor or table. The height divided by the length of the base equals the coefficient of static friction. Remember: c. Perform two more trials. These trials should be independent. This means that in each case the plane should be returned to the horizontal, the block placed on it, and the plane carefully moved up until the limiting angle of repose is reached. DATA TABLE 6 Height Base Length ÃŽ ¸ max  µs Trial 1 Trial 2 Trial 3 Average Calculations 1. Using the mass of the block and the average force of kinetic friction from Data Table 1, calculate the coefficient of kinetic friction from Equation 1: 2. Using the mass of the block and the average force of kinetic friction from Data Table 2, calculate the coefficient of kinetic friction for the wood block sliding on its side. Record your result and see how it compares with the value of  µkobtained from Data Table 1. 3. From the data in Data Table 3, 4 5 compute the coefficient of static friction,  µsfor, the glass surface on wood, the sandpapered surface on wood, and wood on carpet, etc from each of your three trials. Calculate an average value of  µs.Record your results in your own data sheets. 4.  From the data obtained in Data Table 6 calculate  µsfor wood on wood from each of your three trials. 5.  Calculate an average value of  µs. Record your result on the data sheet. Questions A. How does the coefficient of static friction compare with the coefficient of kinetic friction for the same surfaces and areas? B. Why is it important to reduce friction during the operation of machinery? C. How does grease or oil affect the coefficient of friction?

PEST(EL) Analysis of Finland and Chine

PEST(EL) Analysis of Finland and Chine Finland is a parliamentary republic government with a multiparty political system based country lead by the head of state which is the president. Finland president hold a period of 6 years term with maximum two consecutive term elected by the Finnish. Both the Prime Minister and Deputy Prime Minister dominated by the president after the parliamentary elections. They are the head of government and having the executive power to the government including the EU issues. Women in Finland are treated fairly great. They represented 38% of the seats in the 200 members of parliament in the year of 2003. Besides, part of them holding important positions like foreign minister, speaker of parliament and so on. The most significant position of Finnish ladies ever hold is president in the year 2000 by Tarja Halonen and primes minister by Anneli Jaatteenmaki in March 2003. Economic Factors Finland is a highly industrialized country with GDP of $181.4billion in year 2009, over 40% from the GDP are from the contribution of exporting goods and services. The primary economy sector in Finland is service sector which contribute about 65.7% and followed by manufacturing sector in producing metals, chemicals, and so on. Taxation system in Finland is very difference with the other countries. Finnish hold their own tax card to prevent the card holder from getting highly taxed by their government. Those people without tax card are taxed 60% from all the income they obtained. The most significant industry in Finland is Nokia, which is one of the world largest and notable mobile phone producers. Due to the highly success of the development of Nokia in Finland, this enable Finnish have the opportunity to own mobile phone and also connect to the internet much earlier before this becomes common in the United Stated and other countries in the world. Social Factors Finland hold the population over 5.32 million inhabitants, a part from the whole populations, there is 2.7million of them are workforce and 2.5 million from them are employed. Public sector is the most popular sector the Finnish to contribute in. Major ethnics group in Finland include Finns, Swedes, Lapps, Sami, Roma, and Tatars, and majority of them roughly about 91% speak in Finnish. Besides, large numbers of them are believed in Lutheran. In the education system of Finland, children who reach the age of 9 years old are compulsory for them to start school. The attendance and literacy rate in Finland are almost hundred percent. This is among the higher in the ranking of education index in the word. Free meals will be provided for students who study in primary and secondary schools. Besides, the government absorbs the tuition fees, which mean there are 0 tuition fees for their full time students. Technological Factors Staying ahead Finland has long been recognized for the success of the work it has done to promote innovation and the results speak for themselves in many areas. Finland cannot afford to rest on its laurels. This identified a number of shortcomings, most particularly in the area of business support and making it easier for small businesses and start-ups to access the support and incentives that already exist. Finland has international links that need to be strengthened in research, the university world, and business. Being able to tap into the dynamism of the globalization process going on around us more effectively is a challenge facing many other countries as well as Finland. Staying ahead of the competition is a must. Greater sustainability One of the fundamental trends under way and one highlighted by Tekes, the Finnish Funding Agency for Technology and Innovation is the growing emphasis on the need for greater sustainability and reducing unnecessary wastage of the worlds dwindling natural resources. Addressing this challenge will call for a range of new innovations based on a much lower level of resource usage than we accept today, innovations that have a smaller footprint across the entire life cycle of products and services. The need for these types of innovations is perhaps most obvious in areas such as renewable energy, but ultimately it is also likely to be felt across all the products and services that people interact with in one way or another. Clean technology Finland has already made great strides in developing energy-efficient systems and technologies, and is committed to doing more in this area. The country is expected to be one of the fastest-growing renewable energy markets in Europe over the next five years, and wants to be one of the EUs leading users of renewable energy per capita by 2020. A number of initiatives are under way to promote the development of environmental technologies and services in Finland, including the Cleantech programme and the new Strategic Centre for Science, Technology and Innovation that has been created to focus on advanced RD in the energy and environment sector, alongside the other five centres already in place. Known as CLEEN, its research agenda will address issues such as carbon-neutral energy generation, distributed energy systems, sustainable fuels, smart grids, efficient energy use, resource-efficient production technologies and services, recycling, and waste management. Legal Factors Welfare State and Rule of Law form the Basis Finland is a welfare state. The state and the municipality of residence have to guarantee everyone a worthwhile existence and offer equal opportunities for a balanced and active life. People also have to have sufficient knowledge of their rights and responsibilities. A system of legal safeguards guarantees that these rights are upheld. Societal stability, the quality of the judicial system, good governance and effective legal safeguards are important competitive factors in ever more global and integrated markets. Strategic Action towards 2012 within Legal Policy Increase the flexibility of legal proceedings. Improve the equality of the citizens in legal safety cases. Improve the efficiency of crime prevention and broad-based criminal policy. Better support and compensation systems for crime victims. Rapid enforcement of criminal responsibility. Increase the prevention of disruptions of payment. Improve the fairness and efficiency of the collection of claims. Assess the up-to-datedness of family and inheritance legislation. Strategic Action towards 2012 on Governmental Level Strengthen structures supporting good law drafting. More effective evaluation of the alternatives to and effects of legislation. Support cooperation in order to create functional democracy. Create opportunities and forms for civil participation. Promote the enforcement of rights within the EU. Stress the development of practical forms of cooperation for the prevention of international crime. Emphasise clarity, transparency, good governance and the protection of fundamental rights in the activities of the EU. Why do you think Finland tops the chart for overall ranking of the Best Countries in The World? Finland education is ranked number 1 in the world. Finland has set education as a national priority and believes that future generations do not have prospects for a healthy lifestyle if the population is not well educated. Finland quality of life is ranked number 4 in the world. The standard of living in Finland is better. The Finland citizen has lots of holidays so families can actually spend time together. Finland economy dynamism is ranked number 8 in the world. Finland or the Republic of Finland has a mixed economy which is highly industrialized. The country located in the northern Europe has rich natural resources like gold, silver copper, timber and limestone. The country also has deposits of iron, lead, zinc, chromium and copper across the country. Service, which is the largest economic sector of the country, forms more than 67 percent of the total and the next sector, manufacturing accounts, for more than 30 percent of the economy of Finland. PESTEL Analysis for China Political Factors The primary system in China is socialist system. The Constitution is the fundamental law of the state and entitled with the highest legislative power. All other laws and regulations shall be consistent with it. It has been amended four times since its adoption and will be continuously optimized to better suit the changing environment. The National Peoples Congress (NPC) is the Chinas fundamental political system. It is composed of representatives from provinces, autonomous regions, direct municipalities and the military. Chinese Communist Party (CPC) is the ruling party with other eight political parties. The eight parties are parties participating in the discussion and management of state affairs in cooperation with the CPC instead of parties in opposition. This leads to relative stable politic in China. A unique form of political risk occurs in China, and this is the constant battle between the countrys central government and the provincial and local governments over applicable law, and observance or non-observance of it. This makes companies operating in China hard to know exactly what the rules are. Economic Factors Since 1949, the Chinese government has adopted planned economy system for 30 years. Though this system contributed to the stable, planned developments of the Chinas economy, it also limited the economy development and sapped its vitality. The Chinas economic reforms began first in the rural areas in 1978 and shifted to the cities in 1984. The implementation of reform transforms Chinas economy into a socialist market economy. China is the fastest growing major economy in the world, with an average growth rate of 10% for the past 30 years. Chinas embrace of the World Trade Organization and foreign direct investment is unprecedented and contributes significantly to its growth success. China overtook Germany as the worlds biggest exporter of goods in 2009. Its booming investment and consumption are helping to rebalance the world economy although Beijing has refused to let the yuan rise against the dollar since the global financial crisis began in mid-2008. However, there is numerous weaknesses challenge the economic growth of China. One of the most serious weaknesses is the conflict of interests between central government and local government. Local officials primary priority has been to promote themselves and their careers by pushing for high investment rates and output levels whereas central officials are more concerned with excessive investment, unsold inventories, and local policies risking nationwide price inflation. Besides, corruption is mainly a government phenomenon in China. Corruption especially affects government handling of a wide range of local problems such as economic reforms and the need to compensate losers in the process of modernization. Social Factors There are around 1.3 billion inhabitants in China. The Chinese government tries to control its population growth by strict family planning policy, with the goal of one child per family. However, the policy is conducted with exceptions in rural areas and for ethnic minorities. For religion, Buddhism is most widely practiced, with an estimated 100 million adherents. Traditional Taoism also is practiced. China is still an industrializing agrarian society and has a long way to go to attain an industrial society, so most of the people do not have access to the best of Chinas recent improvements. Most modern Chinese young adults do not go to college, to which entrance is obtained by passing the Gaokao, a standardized test at the end of the year. In the year 2000, less than 50 percent of the population finished junior high, and less than 15 percent finished senior high or vocational school. In 2000, only 3.6 percent of the population went to college. Amongst high school and vocational schoo l graduates, less than one tenth had the chance to go to college. There is one private car per 120 people. In China, people with associates degrees and above comprise less than 5% of the population. Technological Factors Cement industry of China has many technological advances compare to other countries. China cement industry focuses on energy-saving, consumption reduction, environmental protection, quality and productivity improvement, and clean and intensive production for sustainable development. China has developed 60 types of special cements with independent intellectual property rights such as high strength cement, silicate cement, and oil well cement. New suspension preheater (NSP) sintering system is the main processing equipment of a NSP cement production line. China has been developed advanced NSP technologies of 1000-5000 t/d sintering systems. The design of 10000t/d NSP sintering system has also been completed and three production lines are under construction. Electricity consumption of cement production largely depends on grinding process in normal circumstances. In China, the combined power consumption of NSP plants has decreased from 125kwh/t in the 1980s to 95kwh/t today in some moder n plants, mainly due to the adoption of advanced technologies and equipments, such as advanced roller mill and high efficiency separator. Environmental Factors There are some current environmental issues in China. Poor land management and excessive industrialization on fragile grasslands is driving to desertification in China. Besides, the climate change is exacerbating the problems. Unrestrained development and industrialization throughout the country makes China particularly vulnerable to growing changes in the climate due to rapidly increasing levels of greenhouse gas emissions in the worlds atmosphere. Desertification is engulfing ecosystems with sand and reducing already scarce arable land and creates eco-refugees. Chinas economy based mainly on heavy industry and coal for cheap energy emits high levels of greenhouse gases, ultimately accelerating global warming and climate change. To alleviate the short-term effects of climate change, China has started to use artificial precipitation and other experimental means. The Chinese government also has begun to adopt stricter energy conservation legislation and increase and international coop eration to combat threats that climate change may bring to China. Legal Factors The judiciary in China means law-enforcement activities conducted by the countrys judicial organs and organizations in handling prosecuted or non-prosecuted cases. Sources of law are as follow: 1982 Constitution of the Peoples Republic of China The Constitution of the PRC guarantees the basic rights and interests of citizens. Chinas Constitution has been amended for four times since its adoption in 1982, most recently this year on March 14, 2004 when the National Peoples Congress voted to include formal guarantees of human rights. NPC Statutory Law and Other Legislative Enactments China has intensified legislative action on enacting and revising laws and regulations in accordance with its having become in late 2001 a member of the World Trade Organization (WTO). Up to the end of 2003, around 440 laws and law-related decisions enacted by the NPC and its Standing Committee, more than 1,000 administrative regulations enacted by the State Council and 10,000 local ordinances had been formulated. International Treaties Though the 1982 Constitution does not specify the treatment of international law in relation to the laws of the PRC, in practice the legislative approach has been to automatically incorporate international law as part of PRC law. If, however, the PRC has made a reservation to a provision of a treaty, this aspect or provision of the treaty is not implemented in the law. Case Law In theory, each case stands as its own decision and will not bind another court. However, in practice lower peoples courts judges often attempt to follow the interpretations of the laws decided by the Supreme Peoples Courts.

Linda Mcquaigs Shooting The Hippo: Causes And Results Of Debt :: essays research papers fc

Linda McQuaig's Shooting The Hippo: Causes and Results of Debt Linda McQuaig's most recent book, "Shooting the Hippo" is about the causes and results of the debt. It is a look at both the factual causes and the arguments which are merely presented to us through the various elements of the media. McQuaig delivers an insightful overview of the extensive media coverage which has bombarded us over the past few years. "With the excitement of a mystery writer, McQuaig tells the real story behind the debt." . This book explains the history of the deficit myth, and enables people such as myself who are not experienced in these types of problems to get to the heart of the arguments presented so frequently about our financial situation. I found her book an inspiration which will hopefully help us all to devote ourselves to the enormous challenge which we will face in the future. We are responsible to inform and educate ourselves, our friends, our families and neighbours in the difficult days ahead. To explain McQuaig's title I'll briefly describe the beginning of the "mystery." A baby hippo, born in a zoo, is to be shot because of recent government cutbacks which leave nothing to feed or care for the hippo. This image grabs the attention of the reader and leads to numerous other examples which McQuaig uses to break down the popular myths about the deficit. McQuaig, determined to expose one by one, several of the current myths about the state of the Canadian economy, backs up her arguments with interviews and publications. These include: a chief statistician at Statistics Canada who has been working on the statistics of social spending since the middle '60s; the man at Moody's bond rating service in New York who is in charge of setting the credit rating on our federal debt; and noted economists, among others. The book goes on in its investigation as to why the recession in Canada was the worst of the world's most powerful nations. It is noted that if there is a simple way to explain the reason for most of the recession then it will in turn account for most of the increase in the debt. McQuaig also presents a bit of history of banking, monetary systems, and the struggle of the conflicts between the rich minority and the rest of us. All of this is presented in a very readable and interesting manner. McQuaig asks an intriguing question to all of us. Are we prepared to see our social programs sacrificed in order to reduce the deficit?

Justifications for the Institution of Slavery during the Antebellum Era Essay

In Chapter 11, it was stated that â€Å"Slavery is primarily a labor system intended to produce wealth for landowners†¦It increasingly became a capitalistic enterprise intended to maximize profits. As such, it was tied to a growing international web of economic relations. † By 1820, the South became the world’s largest producer of cotton. Cotton required continuous development, land, labor demand and a global system of trade. As such, it depended increasingly on the slave-based economy. However, the Upper South was experiencing a long depression and it affected prices. To survive, either the planters move or stay and diversify. Diversification meant shifting to grains and to selling slaves. Soon, the internal slave trade became a multi-million dollar industry. Until the 1830’s, slavery was explained as a â€Å"necessary evil. † However, the call for abolition of slavery was becoming stronger and they had to change their justification for maintaining slaves to make it more acceptable. The Southerners started to label slavery as â€Å"a positive good. † They based their justifications on five sources – the bible, history, the Constitution, science and sociology. The biblical justification makes reference to the curse imposed upon Ham, Noah’s son and the various verses from both the Old and New Testament reprimanding servants to always obey their masters. For its historical justification, they pointed out that all ancient civilizations were based on it and most likely even the current civilization depended â€Å"on the servitude of the blacks in America. † The Constitution was their reference to its legal justification which refused to abolish slavery and various laws passed protecting it such as the overseas slave trade and mandate for returning slaves to rightful owners. They also turned to science and twisted the data an conclusions to justify that blacks were an inferior race based on the cranial shape and size and must, therefore, submit to their destiny â€Å"to work for the superior Caucasians. † Lastly, the sociological justification was made more clear by the paternalistic statement as advocated by George Fitzhugh that the â€Å"’Negro is but a grown child and must be governed as a child’ and so needed the paternal guidance, restraint and protection of a white master. † Be that as it may, to free the blacks would mean â€Å"giving up our beautiful country to the ravages of the black race and amalgamation of the savages. † On the humanitarian side, they said that it would be heartless to release them especially after seeing that the blacks can only be industrial laborers working like slaves for meager pay from which they will have to use to pay for shelter, food and clothing. They will be a burden to the white people who have to compete for the same job and a burden to themselves for having to fend for themselves without the nurturing protection of a master. These justifications were had to be well-thought of so that it would not run contrary to the prevailing ideological directions of the American society at that time which espoused â€Å"individual liberty, mobility, economic opportunity and democratic political participation. † Moreover, they cannot afford to antagonize the probably envious non-slave owning whites that they had to emphasize â€Å"white superiority regardless of class. † The truth of the matter is that behind all these justifications, the real motive is money. By 1860, the crop per value of a slave is $125. Enslaved women increase their value whenever they give birth to healthy children. A prime field worker which sold for $600 in 1844 can go as high as $1800 following a cotton boom. All things told, what mattered most is that slavery is profitable.

Botswana: A Diamond in the Rough Essay

1) The Harvard case, Botswana: A Diamond in the Rough, describes the exceptional case of Botswanas sustained economic rise from near absolute poverty to a country with a 10% average annual GDP growth for more than four decades. This case shows that healthy economic gains can be achieved by a mixture of formal institutions and ad hoc substitutes for missing institutions. When Botswana gained its independence in 1966, the country lacked many of the institutions deemed essential for economic growth by most prosperous developed nations. These absent institutions included a central bank, a national currency, basic administrative structures, market institutions, and the ability to connect to the global markets and apply external tariffs. Yet, Botswana was unique among its neighbors in that it held institutions such as a stable, democratic government supported by a charismatic leader and a constitution which upheld the liberties of a free press, legal transparency, and property rights. Botswanas institute of government also lacked the discriminatory practices and internal strife present in many of the neighboring countries. Botswana was able to supplement its lack of many formal institutions with substitute ad hoc solutions which filled many gaps. The countrys initial lack of its own central bank and national currency was supplemented with the countrys use of the South African Monetary Union until Botswana was able to establish its own currency and central bank in 1976. Similarly, Botswana relied on the South African Customs Union (SACU) for application of import tariffs used to raise tax revenue and protect infant domestic industries. Gaps left in the countrys infrastructure by weak public funding and an underdeveloped private sector were patched with help from financing and administration given by multinational firms, development institutions, as well as the creation of some of its own formal institutions. The most prominent of these situations was the countrys brokered relationship with the DeBeers Corporation which provided the country which technical expertise in a highly profitable industry, the establishments of diamond townships complete with working infrastructure, as well as a much needed source of  revenue. Botswana also used funds derived from development aid organizations and the financing agents such as the World Bank and the Canadian International Development Agency to substitute for its lack of private equity markets and banks. In addition, the country used the publicly traded company, Botswana RST, to attract foreign investment to aid in fully exploiting their natural resource potential. Investors in this company included multinational mining firms including AMAX and Anglo-American. Botswanas history of stability and protection of intellectual property rights also contributed to private foundations and major drug companies such as Harvards AIDS Institute, Bill and Melinda Gates AIDS initiative, and Merck helping to combat the brutal onslaught of the AIDS virus in the country. Botswana used a series of national development plans established by its Ministry of Finance and Development to guide future government spending. Contributions and returns from foreign investment were reinvested into infrastructure and education, while budget surpluses were stockpiled to hedge against sudden drops in revenue caused by potential downturns in the diamond market. Institutions such as the Mineral Right in Tribal Territories Act vested mineral rights in the central government rather than the hands of the tribal leaders while the two special funds, the Public Debt Service Fund and the Revenue Stabilization Fund, were established to funnel mining revenues into loans for local authorities and parastatal bodies. The Botswana Housing Corporation was a formal institution which used diamond revenues to finance construction projects while the Botswana Power Corporation and the Water Utilities Corporation were created to serve similar functions for electricity and water. The Botswa na Development Corporation, National Development Bank, and the Botswana Enterprise Development Unit were charged with allocating diamond revenue to diversify the economy. Botswana’s institutional development was a process. It began with virtually no formal institutions. Informal solutions led to the development of formal institutions, which allowed for Botswana’s idiosyncratic economic stability. 2) The most evident pro of nationalizing Botswanas diamond industry would be to achieve the short-term gains by selling stockpiled diamonds. Unfortunately, doing so would cost Botswana years of established credibility as it would require the country to renege on their previous agreements with the DeBeers Corporation. Such an action would deter future investors into Botswana, as well as cause the loss of their largest foreign investor, DeBeers. Loss of the DeBeers connection would cost Botswana the future gains associated with continued expertise in the field of diamond mining, infrastructure improvements historically provided by DeBeers in areas servicing the mines, and also the administrative capability of a major international corporation. The most significant con would likely be the loss of DeBeers as a steward of the cartel practices necessary to preserve the price premium associated with stockpiling diamonds. If left to navigate the sales and stockpiling of diamond by itself, the country would face the historically difficult task for a poor government that relies heavily on commodity sales to self-regulate commodity sales, and thus government revenues, while still balancing the demands of maintaining the cartel. 3) The extent to which Botswanas model is replicable outside of Botswana would certainly depend on a variety of factors some within the control of central governments, and others environmentally or socially determined. The presence of an extremely valuable natural resource(s) is a key component in Botswana growth model. While other countries also share this component, many lack the peace and stability associated with a stable government body and a tolerant society. Botswanas government offers stability and social climate free of the restrains presented by ethnic, tribal, and religious conflicts. Additionally, mining interests are centrally controlled and not subject to regional battles over mineral wealth. Likewise, discrimination between groups is not a prevalent issue in this country. Botswana also benefited from Tsekedi Khamas strong leadership in bringing new policies to the forefront and unifying the countrys economic policies among the various tribal groups. The countrys adherence to prudent social and macroeconomic policies also held a large role in the creation of an  atmosphere of growth and foreign investment. The credibility established through years of sound economics practices, legal transparency, property rights, stable government, and free press created a more welcoming environment for foreign investment than many other developing nations. The extent to which this model is replicable outside of Botswana depends on the level of faithfulness to the social and macroeconomic policies described above and a working mix of formal institutions and adequate substitute organizations. Although a full range of formal institutions are not necessary to achieve continued economic growth, substitutes must arise where the institutions are lacking to provide the necessary functions lost by their absence.

Free Essays on Theatre

Youth theatre is described as a performance whose main purpose is to enrich the audience’s lives in some way during the course of the production. â€Å"How Da B-52 cockroach learned to fly† is an excellent example of a performance for youth theatre. The play is based on an award-winning children’s book by Lisa Matsumoto. Although the book was written for a younger audience, both children and adults alike find humor and educational value in â€Å"How Da B-52 Learned to Fly.† With the help of exuberant performers, unique props and a creative set, the story of how the B-52 cockroach was a successful example of what youth theater should be. The play is centered on Kimo the cockroach and his brothers. The play is done in story form with two narrators, one who is telling the story and the other who is listening and asking questions about the major characters. The major conflict that Kimo encounters is trying to fit in and gain acceptance amongst the rest of the insects in the insect kingdom. The insects all view the cockroaches as being lazy with no good traits that could help out there society. Kimo travels through out the insect kingdom in search of a task that he and his brothers could do to gain respect and be accepted into the animal kingdom. Kimo and his brothers try to do all kinds of tasks like be movers with the ants, or deconstruct workers with the termites but they are never really able to pull off those tasks. Kimo comes close to giving up because it seems as though there is nothing that they can do to help the insect kingdom. In the end Kimos persistence pays off he is given wings and he and his brothe rs create there team of human attackers and for all there hard work the queen bee honors them. Dialogue of the play is almost entirely spoken in pidgin. The story is told from a young girl to a boy. By making pidgin the dominant language it made the play unique. When I think of plays, I usually think of Shakespe... Free Essays on Theatre Free Essays on Theatre Youth theatre is described as a performance whose main purpose is to enrich the audience’s lives in some way during the course of the production. â€Å"How Da B-52 cockroach learned to fly† is an excellent example of a performance for youth theatre. The play is based on an award-winning children’s book by Lisa Matsumoto. Although the book was written for a younger audience, both children and adults alike find humor and educational value in â€Å"How Da B-52 Learned to Fly.† With the help of exuberant performers, unique props and a creative set, the story of how the B-52 cockroach was a successful example of what youth theater should be. The play is centered on Kimo the cockroach and his brothers. The play is done in story form with two narrators, one who is telling the story and the other who is listening and asking questions about the major characters. The major conflict that Kimo encounters is trying to fit in and gain acceptance amongst the rest of the insects in the insect kingdom. The insects all view the cockroaches as being lazy with no good traits that could help out there society. Kimo travels through out the insect kingdom in search of a task that he and his brothers could do to gain respect and be accepted into the animal kingdom. Kimo and his brothers try to do all kinds of tasks like be movers with the ants, or deconstruct workers with the termites but they are never really able to pull off those tasks. Kimo comes close to giving up because it seems as though there is nothing that they can do to help the insect kingdom. In the end Kimos persistence pays off he is given wings and he and his brothe rs create there team of human attackers and for all there hard work the queen bee honors them. Dialogue of the play is almost entirely spoken in pidgin. The story is told from a young girl to a boy. By making pidgin the dominant language it made the play unique. When I think of plays, I usually think of Shakespe...