Purchase of a Franchise

Introduction Organizations and individual entrepreneurs continue to adopt more innovative approaches to business. Evidently, globalization and technological developments have played crucial roles in this business. Generally, these two factors have increased the rate of business processes. It is observable that brands have advanced beyond their domestic and regional markets (Schell 2011).Advertising We will write a custom essay sample on Purchase of a Franchise specifically for you for only $16.05 $11/page Learn More There is a notable platform for global business negotiation and franchise opportunities. There are several fundamental elements to be considered while establishing and conducting an international franchise. Strategies applicable in the management of complications associated with international franchise are eminent within all sectors of investment. Entrepreneurs interested in franchise business must take into consideration the crucial challeng es. Ideally, the basic objective is always to minimize the negative implications of franchise operations. Precaution and effective examination is vital for all parties interested in the global franchise business (Lorette 2013). This paper presents critical considerations to be undertaken during the establishment of a franchise investment. Additionally, it describes the process of assessment of the risks and returns associated with the business. There is a description of the laws providing special protections to the franchisee. The report also indicates vital analysis and recommendations to be adopted by the franchisees. Assessment of the Risk and Returns of the Franchise Investment The report focuses on investment in the franchise within the Canadian hospitality industry. For this segment of international franchise, the interested parties must consider a variety of factors. However, it is vital for them to examine the risks and returns linked with this global franchise initiative. C anada is strategically fit for the establishment of the franchise. Particularly, the country faces a huge influx of tourists and international travels (Herman 2013). This enables the hospitality industry to realize great revenues and profits. Therefore, it is the ideal destination for the establishment of this kind of investment. It is imperative to indicate that Canada has one of the greatest potential markets for the franchise sector. The nation borrows a lot of franchise strategies and ideas from the major U.S business industry. Those involved in the franchise industry must note that Canada has distinct features. These might have severe business implications. Such important characteristics include the unique regional and the demographic elements. These factors require adequate attention for the business to realize its targeted success.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Fran chising is a process in which the private businesspersons purchase the entitlements to establish and manage a site of a potential company (Arthur 2000). Regulatory concerns within Canada must be fully complied with during the process. The franchisor and the franchisee must be engaged in a legal contract. The contract must indicate and explain the terms and conditions in a comprehensive manner. There are a variety of advantages and disadvantages associated with the franchise business. These must be noted before the franchisee signs the legal business contract. The franchisee must note that the foremost procedure is to analyze and accent to the terms indicated within the contract. Failure to observe this consideration might lead to the experience of potential losses by the franchisee. The Canadian hospitality industry borrows certain regulations indicated in the â€Å"international franchise association† (IFA) charter. Nonetheless, other regulatory frameworks emanate from the s tatutory provisions in Canada (Arthur 2000). The franchisee interested in the Canadian hospitality is entitled to several benefits. They are likely to obtain adequate familiarity with the company’s name. In addition, the impact of the original company’s culture, brand and training may help in the development of a powerful franchise stature. These merits are vital for the successful running g the franchise business in Canada. The franchisee is likely to benefit from the bustling hospitality industry in different ways. The high level of revenue recorded from the tourist sector is set to minimize the probability of failure of the franchise. The explicit Canadian business and investment policies might also lead to a considerable level of business success. The parent company might be willing to extend its innovative practices to the franchise (Elgin 2002). These might include human resource training and apprenticeship. Employee welfare is one of the crucial elements of succ ess. It must be extended to the franchise organization.Advertising We will write a custom essay sample on Purchase of a Franchise specifically for you for only $16.05 $11/page Learn More Generally, provision of a support strategy to the franchise owner has positive implications on its overall performance. The franchisee must face the elementary risk of raising the rights required for operation of the franchise. There are additional costs required to develop the necessary enterprises and functional systems. This may also cover employee remuneration. The Canadian business laws must be complied with to the maximum level. These also include other necessities involving tax regulations and costs incurred during business licensing. The costs involving the authorization of the capacity to run and manage a franchise in the Canadian hospitality vary in a significant manner. The franchise entrepreneur may remain liable for other constant expenditures. These might have negative implications on the business. Indicatively, they differ in orientation, such as those linked to the royalties and use of the name or brand of the mother company. In the end, such identifiable on-going expenditures might deeply minimize the level of expected profits (Lorette 2013). Other potential precautions might increase the level of associated business risks. For instance, the Canadian franchise is still under refinement. Therefore, certain laws might predispose the franchisee to significant levels of risks. Certain regulations underlined within the franchise contracts appear very stringent and punitive to the business owners. The owners of the franchise must also comply with the contract. The aim is to reduce the likelihood of termination of the contract. Factors to Be Considered For a Franchise Investment There are diverse factors to be considered for a franchise investment in the Canadian hospitality industry. The franchisee must know that Canada has restrictions on trademarks. Canadian authorities only safeguard legally registered trademarks. The power to register such trademarks is only exercised by the federal government. The importation of franchise laws from the U.S must be avoided. Particularly, the franchisee must consider innovative techniques applicable within the hospitality industry. Regulations that advocate for individual franchises must be reviewed (Schell 2011). There are different franchise investment policies within distinct regions in Canada. These include the â€Å"grant master franchise and development agreements.† Observably, these franchise agreements remain unique for every province in Canada. Integration of the domestic businesspersons in the franchise process must be considered.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This is because it is a fundamental initiative that improves the level of engagement of local communities in the franchise process. It is also critical for the franchisee to adopt the â€Å"Canada oriented marketing.† This enables them to enhance the brand and extend the local market for the franchise (Herman 2013). This initiative shall help the franchise business to flourish within Canada. The â€Å"Canadian franchise association†, (CFA) plays a crucial role in the regulation and protection of the franchisees. Therefore, the franchisee must examine and be conversant with the regulatory measures in the CFA. Laws Giving Special Protections to the Franchisee The provincial disclosure provisions are evident in three of the major provinces in Canada. Ideally, this provision offers the franchisee a special kind of cushion and protection from exploitation by the mother organization. There are other provinces with necessary protective legislations for the franchisee. General ly, these regulations have different monitoring agencies throughout Canada (Herman 2013). Some of the regulatory frameworks indicated under the provincial disclosure in Ontario and Alberta are aligned with those of the U.S. This regulation subjects the franchisor to certain conditions that must be attained before any business contract is signed by the potential investors. For instance, all of the parties are required to make public all the material information regarding the deal. The â€Å"uniform franchise commission of Canada† is in the process of establishing a universal franchise law. Recommendations The franchisee must be aware of all legal requirements of the business within Canada. Additionally, it is vital to consider the refinement of these regulations. This shall help to enhance the development of a fully protective and regulatory authority. The hospitality sector is one of the leading franchise industries with approximately 40% records (Schell 2011). However, many precautionary measures must be exercised to ensure minimal losses. The franchisee must be keen to develop effective and transparent business partnerships. Comprehensive documentation and legal consultations are critical components of the franchise business. Stringent measures are appropriate in the practice of franchise business. It is also upon every investor to examine the franchise contracts before they accent to any conditions. Works Cited Arthur, A. Canada’s Hospitality Sector; Consolidation, Consolidation, Consolidation. 2000. Web. Elgin, J. Choosing a Legal Form for Your Franchise. 2002. Web. Herman, M. International Franchising. 2013. Web. Lorette, K. Definition of a Franchise Business. 2013. Web. Schell, C. Canadian Franchise Industry. 2011. Web. This essay on Purchase of a Franchise was written and submitted by user Maddox Chen to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Italian Improper Prepositions - Preposizioni Improprie

Italian Improper Prepositions - Preposizioni Improprie The Italian prepositions ​di, a, da, in, con, su, per, tra (fra), the so-called preposizioni semplici (simple prepositions), perform a variety of functions and are the most frequently used. However, these prepositions have a lesser-known counterpart ones with less variety, but that have a greater specificity of meaning. They’re called â€Å"improper prepositions.† And yes, if you’re wondering, there are â€Å"proper prepositions,† and we’ll talk about those soon. Why must you get to know these? Because they help you say things like â€Å"behind the house,† â€Å"during dinner,† or â€Å"except him.† Many grammarians define these forms as improper prepositions (preposizioni improprie), which are also (or have been in the past) adverbs, adjectives, or verbs. Here they are: Davanti - In front, across from, opposite fromDietro - Behind, afterContro - In front of, againstDopo - After, beyondPrima - First, in front ofInsieme - With, together with, along withSopra - On top of, upon, above, over Sotto - Below, beneathDentro - In, inside, withinFuori - BeyondLungo - During, throughout, along, alongsideVicino - NearbyLontano - Faraway, distantSecondo - On the basis of, according to, alongDurante - During, throughoutMediante - By, through, via, by means ofNonostante - In spite of, despiteRasente - Very near to, very close toSalvo - Save, except forEscluso - ExceptEccetto - ExceptTranne - Except So, which prepositions are proper? Grammarians define proper prepositions (preposizioni proprie) as those that have only a prepositional function, namely: di, a, da,in, con, su, per, tra (fra) (su also has an adverbial function, but routinely is considered one of the proper prepositions). The following are some examples of preposition-adverbs, preposition-adjectives, and preposition-verbs, highlighting their diverse functions. Preposition-Adverbs The largest group is that of the preposition-adverbs (davanti, dietro, contro, dopo, prima, insieme,sopra, sotto, dentro, fuori): Lho rivisto dopo molto tempo. - I saw him again after a long time. (prepositional function)Lho rivisto unaltra volta, dopo. - I saw him again after that. (adverbial function) Preposition-Adjectives Less numerous are preposition-adjectives (lungo, vicino, lontano, salvo, secondo): Camminare lungo la riva - To walk along the shore (prepositional function)Un lungo cammino - A long walk (adjectival function) Participles There are also some verbs, in the form of participles, that in contemporary Italian function almost exclusively as prepositions (durante, mediante, nonostante, rasente, escluso, eccetto): Durante la sua vita - During his lifetime (prepositional function)Vita natural durante - Lifetime (participial function) Among these preposition-verbs, a special case is that of tranne, from the imperative form of trarre (tranne traine). To determine whether a certain term is used as a preposition or has a different function, note that in the previous examples what characterizes and distinguishes the prepositions from other parts of speech is the fact that they establish a relationship between two words or two groups of words. Prepositions are special because they introduce a complement to the verb, the noun, or the entire sentence. If there is no complement, it is not a preposition. Some Italian improper prepositions can be combined with other prepositions (especially a and di) to form locuzioni preposizionali (prepositional phrases) such as: Vicino a - Near, next toAccanto a - Next to, besideDavanti a - In front ofDietro a - BehindPrima di - BeforeDopo di - AfterFuori di - Outside ofDentro di - Inside, withinInsieme con (or assieme a) - Together withLontano da - Away from Prepositions Nouns Many prepositional phrases result from the pairing of prepositions and nouns: In cima a - On top of, at the top ofIn capo a - Within, underIn mezzo a - In the middle of, amongNel mezzo di - In the middle of, in the midst ofIn base a - On the basis of, according toIn quanto a - As for, in terms ofIn confronto a - Compared to, in comparison toA fianco di - At the side of, on the side ofAl cospetto di - In the presence ofPer causa di - Because of, on grounds ofIn conseguenza di - As a result ofA forza di - Because of, through , by persisting thatPer mezzo di - By means of, by way ofPer opera di - ByA meno di - Less than, withoutAl pari di - As much as, in common withA dispetto di - In spite of, despiteA favore di - In favor ofPer conto di - On behalf ofIn cambio di - In exchange forAl fine di - For the purpose of, in order to Prepositional Phrases Prepositional phrases have the same function as prepositions, as shown by these examples: Lha ucciso per mezzo di un pugnale / Lha ucciso con un pugnale. - He killed him using a dagger / He killed him with a dagger.Lha fatto al fine di aiutarti / Lha fatto per aiutarti. - He did it in order to help you / He did it to help you. Attenta! Note, however, that prepositions and prepositional phrases are not always interchangeable: for example, either of the following phrases are valid: il ponte à ¨ costruito dagli operai (or da parte degli operai). But â€Å"la costruzione del ponte dagli operai† is grammatically incorrect, while â€Å"la costruzione del ponte da parte degli operai† is acceptable.

Portfolio Assignment Example | Topics and Well Written Essays - 2500 words

Portfolio - Assignment Example While such competition among scheduled airlines and low cost carriers (LCCs) is rather indirect, the travel preferences of passengers are what matters at the end. The global financial meltdown changed people's travel habits as they looked for cheaper alternatives to their previous destinations. Have the needs of travelers diverged or changed dramatically? Do they prefer cheaper prices or comfort and good service during the flight? Today it becomes vitally important to understand the consumers’ needs, requirements and expectations from the contemporary air travel services, which should become an integral part of airlines’ future strategies. UK Airline Industry Overview Recently all UK carriers, including LCCs, experience the increasing competitive threats, including potential to depress onboard loads and dilute yields, continuous and increasing pressure to reduce unit costs, need to maximize aircraft utilization, and all magnified by the global economic crisis. Though, a t the same time opportunities for UK airlines include potential traffic stimulation, new markets and route access, new partnerships, and new business models. According to the research by White and Crasta (2010), there are four main purchase criteria of travelers while buying airplane tickets, including price of the ticket, convenient flight times, distance of the airport used by the airline, and brand of the airline. While all four criteria are important for travelers, the price occurred to be the most important factor among 80% of respondents while the rest 20% care more about brand name of the airline and convenient flight times. Throughout the world, British Airways is recognized as the leader in the service industry and as one of the companies which internal and external practices proved high quality service for the clients and care about the employees. Being the largest international scheduled airline of the United Kingdom, British Airways provides flights to more than 550 dest inations at the most convenient times for its customers. Charts 1 and 2 in the Appendix show international versus domestic capacity share and international capacity of British Airways by region in 2011 accordingly. Macro Environmental Analysis PESTLE analysis described below will help to analyze the macro environment of the UK airline industry, including such factors as political, economic, social, technological, legal and environmental. Political Factors The current political environment in the United Kingdom is supportive to aircraft services providing loans and funds toward different social and environment projects and programs. Traditionally, many UK companies are based on trade unions, which recently increased their pressure inspiring employees’ strikes. Financial Times informed that 78.5% of BA employees voted for walkouts and strike ballots supported by trade unions as the result of news about merger between BA and Spanish airline Iberia (Groom, 2011). UK government tu rned their main attention toward the security issues of airplanes as the result of several accidents, which will increase the

The Situation of Horace and Wynona Essay Example | Topics and Well Written Essays - 1750 words

The Situation of Horace and Wynona - Essay Example Further, the parking lease of Nicola is for ten years and according to the section for where a lease for more than seven years is granted, it is compulsory for the title to be registered. Since Horace had failed to do so the title had, in fact, become defective. Also as the title has not been registered Simon would not be obligated to pay any rent to either his parents or to Pavel, Simon would also be able to claim that he has an ownership interest in the property as he is Horace and Wynona’s heir. Wynona is also entitled to take Horace to the court of law over questions regarding his ownership rights, as the title is unregistered and there is no single owner of the property, and since she has also made payments towards to the purchase of the property she is the real owner of the property and hence entitled to an equal share in the income generated from the sale. Under such big circumstances, where the property, which has been transferred, is in dispute any transfers so made a re not considered legal. Horace has also neglected to inform Pavel of any material defect in the contract, and by not doing so has failed to uphold his duties and obligations as a seller. Under such circumstances, Pavel may hold the sale to be void. It has also been established that the sale of the property by Horace to Pavel is a fraudulent one, therefore Pavel may either hold the sale as void or may sue Horace for damages. On his part, Pavel failed to exercise due care and did not inquire about the title.

Toward a Moral Economy Essay Example | Topics and Well Written Essays - 1500 words

Toward a Moral Economy - Essay Example Just for the sake of their rights, some of the people who were in favor of the justice and equality for all raised their voices and thus the concept of moral economy were developed. There are different characteristics or the attributes, which can make any economy a moral and justified economy. The researchers are of the opinion that any economy can be perfect and moral just because of the implications and the practices in that particular duration. There are three main types of economies based on the practices and the implications, i.e. Socialism, capitalism and the communism. Usually if we look over all the concepts and the attitudes of a socialist economy then we can say that socialism is the best moral economy. If we look at the historical perspectives of the establishment of a moral economy, the different sociologists have worked a lot on this discussion. The one common point of all the researchers is the basic foundation of a moral economy. According to their point of view, the economic activities influenced by the sentiments, values, norms, and other just thought patterns might contribute to make a moral economy. The contributions of different authors are discussed here in detail; Adam Smith: Adam Smith wrote two books containing great and inspirational concepts about the establishment of a moral economy. One book ‘Wealth of the Nations’ is directly related to the ethical standards of an economy whereas the other book ‘The Moral System’ gives a general frame work for the foundation of an economic system. In both of his writings, Smith has tried to formulate general rules of justice and laws that should be implemented in an economic system. Adam Smith has even tried to pin point the process that can motivate the people to adopt ethical and moral laws so that they can work their best for the establishment of a moral economy at least on individual basis. Another high point of Smith writings is the formulation of two

Difference between monetary and fiscal policy essay

Difference between monetary and fiscal policy essay Describe the difference between monetary and fiscal policy in the UK and explain how such policies can be used to achieve different macroeconomic government objectives. The main and most obvious difference between monetary and fiscal policy is that monetary policy is set by the central bank and fiscal policy is implemented by the government. In the case of the UK, monetary policy is decided upon by the Bank of England which since 1997 has been independent from the government. It would be worth considering the two types of economic policy in more detail now before turning to look at how they can be used to help meet macroeconomic government objectives. Monetary policy is the attempt to control macroeconomic variables through the setting of interest rates. It is a rather blunt policy tool as its effects can be felt throughout the economy as a whole. By changing interest rates, the Bank of England is trying to influence the overall expenditure in the economy as well as controlling inflation. Reducing interest rates makes borrowing the more attractive alternative to saving which then leads to more spending in the economy. Lowering interest rates can also make assets such as property increase in value which also leads to more spending as homeowners extend mortgages and consume more. By cutting interest rates, it is hoped that this increased spending feeds through to output and then to employment. Increasing interest rates on the other hand, has the opposite effect by making saving more attractive than spending and therefore overall spending in the economy is reduced. Fiscal policy is controlled by central government. It can be defined as, â€Å"a governments program with respect to (1) the purchase of goods and services and spending on transfer payments, and (2) the amount and type of tax† (Samuelson and Nordhaus, 1998). It involved the government changing levels of taxation and spending in order to influence the level of aggregate demand (AD). The purpose of fiscal policy is to reduce inflation, stimulate economic growth and to stabilise this growth and avoid periods of ‘boom and bust which characterised the economy during the 1980s and early 1990s. If monetary policy is described as a blunt instrument then fiscal policy is a precision tool that can target particular sectors of the economy and population in order to achieve the desired economic changes. Both these different types of policy are working towards achieving different macroeconomic objectives. It would be worth looking at these in greater detail now. There are four major macroeconomic objectives that any economic policy should be working to achieve. These are full employment; price stability; sustainable economic growth and; keeping the Balance of Payments in equilibrium. These four different objectives compete with each other and all achieve different levels of importance depending on the priorities of the government. During the 1960s, the Balance of Payments took centre stage. This was before the global economy made operating with a deficit a viable and sustainable option. Nowadays most governments operate with a budget deficit and the balance of Payments is no longer seen as a top priority for the government. In 2007/2008 the UK government showed a deficit of  £38.7 billion which is around 2.7% of gross domestic product (GDP). The general government debt is around  £614.4 billion which is around 43.2% of GDP (ONS, 2008). In the 1960s such levels of debt would be unthinkable but now they are just part of a global reality. In order to implement social programs and fulfil spending promises, the government is forced to borrow from global institutions. This has become a global reality. These current times of economic uncertainty only increases the amount of borrowing by governments all over the world. Full employment enjoyed similar prominence in the period after the war until the 1980s. Full employment meant that more people were contributing to the economy both in terms of output and through taxation. It also meant that the government had to spend less on social programs. This full employment was aided by a largely industrial economy which started to decline in the 1980s. Thatcher wanted to restructure the economy to make it more efficient and move it away from its industrial base. Full employment is still an important objective and it is one that is gaining prevalence again but during this current recession it isnt a realistic prospect. The current rate of employment stands at 74.1% (ONS, 2009) which is a slight decrease on the previous year. However, as the recession deepens, it is expected that this number will fall even further. Perhaps the most two important objectives for the government at present are sustained economic growth and price stability by keeping inflation low. The government is trying to foster sustainable growth in the economy which means growth without inflation. However, the past year has seen the UK economy slip in to a recession, making any sort of growth impossible. During this recession the level of inflation has fallen but this has not translated into economic growth. It was hoped that that low inflation would mean that spending would increase. However, the current economic climate has seen prices fall so much that consumers are now waiting to see if prices fall even further before spending (Monaghan, 2009). This essay will now turn to look at how the use of monetary and fiscal policy can be used to achieve these macroeconomic objectives. Perhaps one of the most significant changes that the current government introduced was giving the Bank of England independence when it comes to setting interest rates. Before the government was dictating both monetary policy and fiscal policy. The Monetary Policy Committee (MPC) is now tasked with maintaining price stability and also supporting the government in meeting its objectives for growth and employment (Budd, 1998). The government still sets the goals of monetary policy but it is up to the Bank of England to decide how best to achieve this through. The independence of the central bank is considered important for a number of reasons. Firstly, politicians are not experts when it comes to monetary policymaking. Secondly, central banks are more likely to have the interest of the country at heart rather than politicians who may be motivated by implementing populist policies for the sake of winning votes. Thirdly, politicians are unlikely to want to keep to monetary policies when t hey have adverse affects like high unemployment, although this wasnt the case with Thatcher. The final argument for having an independent central bank is that countries that have them tend to have lower levels of inflation (Alensina and Gatti, 1995). This essay will now look at how the MPC goes about meeting its objective of maintaining price stability. The present recession has forced the committee to consider radical solutions to the unique problems that the economy is facing. For the past year, the bank has cut interest rates on six consecutive occasions to the current record low of 0.5%. It was hoped that cutting interest rates to this level would stimulate spending in the economy and that this would translate to economic growth and would keep inflation at the. However, this has not happened because the banks have stopped lending the money usually required to facilitate the spending. This has forced the Bank of England to consider other options. One such measure introduced in the past month was quantitative easing. This idea is the equivalent of printing up large amounts of money, in the case of the UK it is estimated to be about  £75 billion, and throwing it out of a helicopter so that the people below could pick it up and spend it (Elliot, 2009). This is a rather simplistic view of what the Bank of England is trying to achieve. This  £75 billion will be used to buy government bonds and corporate debt over the next three months. By exchanging these bonds for cash that the bank has printed, it is hoped that this will increase the flow of money in the economy. With more cash, banks should start lending once again to other banks, businesses, and customers. This will increase spending in the economy which will lead to economic growth. However, the success of this measure rests on whether customers still want to borrow. The popular conception amongst the public is that we are in this position because we borrowed way above our means. It remains to be seen if once credit is made available again b y banks whether people will take it up again. If they dont, then the banks will be awash with money that will be doing nothing and this will not lead to economic growth but rather to inflation. The Bank of England has to achieve a fine balance. It has to provide enough money to banks to encourage them to lend again at competitive rates but it also has to make sure that there isnt a surplus of money that will send inflation out of control (Kollewe, 2009). Beyond cutting interest rates and printing there is little more that monetary policy can offer to delivering macroeconomic objectives. This essay will now look at how fiscal policy delivers macroeconomic objectives. Fiscal policy can be more fine tuned to target particular sectors of the economy and the population. It does not take the rather blanket approach taken by monetary policy. Perhaps the most effective fiscal policy to achieving macroeconomic objectives is through borrowing and taxation. For example, the government recently cut the lower starting rate of income tax. This encourages people on lower incomes to work more hours because they will be able to keep more of what they earn. This they can either spend or save, based on the level of inflation that is determined by monetary policy. Another measure introduced last year by the government was the 2.5% reduction of the rate of VAT. This was introduced at the end of last year as a way of boosting spending, especially in the run up to the busy Christmas period. However, this has not had the desired effect on household spending which is at its lowest level since 1991 (ONS, 2009). It could be argued that fiscal policy is not as much use as monetary policy to meeting macroeconomic objectives at the present time. The government is trying to stimulate spending in the economy by borrowing more money in order to fund tax cuts and increased spending in social programs. However, the effect of this may be that people are realising that they may face a higher tax burden in the future because of this increased spending and so are saving more in anticipation of this. The government is presently pumping money into sectors of the economy that provide large numbers of jobs. For example, it has just stated that it is prepared to make up to  £2.3 billion available to car manufacturers. The Business Minister, Ian Pearson, stated that this level of investment was necessary to, â€Å"ensuring the industry comes out of the current downturn with the skills and technology needed to be competitive in the global automotive market†. However, the success of this initiative again rests with the consumer. Will they want to borrow to finance things such as cars in the future? The car industry may be facing a downturn that will not recover after the recession. Because the economy is at present shrinking it means that the government is not getting as much income from tax revenues because less people are in work and those working arent getting as much. Welfare spending has had to increase to make sure that the standard of living does not fall in the UK. Those who have lost their jobs as a result of the recession have to be provided for by the state. All of this contributes to a much larger deficit which doesnt fit in with meeting macroeconomic objectives. With the global economic situation seemingly changing on an almost daily basis, it is hard to judge just how effective monetary and fiscal policies are in meeting macroeconomic objectives. It is also hard to judge which is the most effective way of delivering these objectives. This essay would argue that both policies are fairly weak at the moment. In order for monetary policy to work, it requires people to have the confidence to spend knowing that money is always going to be available to them. This could be just a person buying goods in the high street or a business buying services from another business. It would seem that UK consumers are willing to hold on to large quantities of money, even though the central bank has lowered interest rates to such an extent that it makes saving a very unattractive option. Consumer confidence is low, and when it is low people tend to hold on to their money rather than borrowing more. It remains to see just how effective this quantitative easing wi ll be. In many ways it seems that fiscal policy is working against monetary policy at present in achieving macroeconomic objectives. While on the surface it seems logical for the government to be borrowing big in order to fund tax cuts and create jobs, many people see this borrowing as storing up problems for the future because all this borrowed money will have to be repaid at some point. This means that people are saving more instead of spending which the government wants us to do to meet the objective of growth in the economy. In a growing, sustainable economy, both monetary and fiscal policy should serve to benefit each other and they should work for each other in achieving macroeconomic objectives. In a receding economy such as is being witnessed in the UK, there needs to be a delicate balance struck between the two. It would seem that this balance has yet to be achieved and at present they are fighting against each other. Bibliography and References: Alensina, A. and Gatti, R. (1995). How independent should central banks be?, The American Economic Review, 85(2), 196-200. Budd, A. (1998). The Role and Operations of the Bank of England Monetary Policy Committee, The Economic Journal, 108(451), 1783-1794. Dunkley, J. (2009). UK given approval for  £2.3bn auto bail-out, The Telegraph, 28 Feb. Elliot, L. (2009). Quantitative Easing, The Guardian, 8 January. Monaghan, A. (2009). UK inflation falls to lowest in lowest in almost 50 years, The Telegraph, 17 Feb. Kollewe, J. (2009). Bank of England cuts rates to 0.5% and starts quantitative easing, The Guardian, 5 March. Moore, E. and Warwick-Ching, L. (2009). Rate cut brings more misery to savers, The Financial Times, 5 March. Office for National Statistics (ONS) (2008). UK Government Debt and Deficit [online] Available from: http://www.statistics.gov.uk/cci/nugget.asp?ID=277 [Date accessed: 10 March 2009] Office for National Statistics (ONS) (2009). Employment [online] Available from: http://www.statistics.gov.uk/cci/nugget.asp?ID=12 [Date accessed: 10 March 2009]

The Communist Manifesto Essay -- Communist Manifesto Essays

The Communist Manifesto   Ã‚  Ã‚  Ã‚  Ã‚  Marx describes the problem in great detail in the first chapter. He feels there is a problem between the bourgeoisie and the proletarians. The bourgeoisie were the oppressed class before the French Revolution and he argues that they are now the oppressors. The proletarians are the new working class, which works in the large factory and industries. He says that through mass industry they have sacrificed everything from the old way of religion, employment, to a man’s self worth and replaced it with monetary value. He is mad that the people of ole that use to be upper class such as skills man, trades people, & shopkeepers, are now slipping into the proletarians or working class. He talks of the bourgeoisie getting to be so greedy that they are forced to nest all over the world to hock their goods. This is talking about the new import and export system that has formed. He says the working class has to deal with the flux of the market and is disposed of more eas ily than the machines used in the market. He says that they actually become part of the machine while working. Doing the simplest and most monotonous part of the job. In this new system Marx says â€Å"as repulsiveness of work increases, the wage of work decreases†. He also prophesizes that machines will become so advanced that the wages for man will become one extremely low rate. He says the proletarians live a life of exploitation. By being exploited at work in the w...