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Understanding Market Failure and Government Intervention: Essential Insights for University Assignments
In the realm of economics, understanding the intricacies of market failure and government intervention is vital for students. Market failure occurs when free markets are unable to allocate resources efficiently, leading to a net social welfare loss. Addressing this topic is essential for those seeking Public Economics Homework Help, as it forms a fundamental part of economic theory and policy analysis.
What is Market Failure?
Market failure refers to situations where the market, left to its own devices, fails to allocate resources in a way that maximizes social welfare. Several factors can lead to market failure, including externalities, public goods, information asymmetry, and monopolies.
Externalities: These occur when a third party is affected by an economic transaction they are not directly involved in. Externalities can be either positive (beneficial effects) or negative (harmful effects). For instance, pollution from a factory imposes health costs on the surrounding community, a negative externality.
Public Goods: Public goods are non-excludable and non-rivalrous, meaning they are available to all, and one person's use does not reduce their availability to others. Examples include national defense and public parks. Because these goods are not profitable for private companies to provide, they often require government provision.
Information Asymmetry: This occurs when one party in a transaction has more or better information than the other, leading to an imbalance of power and potentially unfair outcomes. For example, a car dealer might know more about the car's condition than the buyer, potentially leading to the buyer making a suboptimal purchase.
Monopolies: When a single firm dominates a market, it can lead to inefficiencies such as higher prices and reduced output. Monopolies can stifle innovation and exploit consumers, necessitating regulatory intervention.
Government Intervention to Correct Market Failure
Government intervention is often necessary to correct market failures and ensure efficient resource allocation. This intervention can take various forms, including regulation, taxation, subsidies, and the provision of public goods.
Regulation: Governments can impose regulations to control activities that lead to negative externalities. For example, environmental regulations limit pollution emissions from factories, protecting public health and the environment.
Taxation and Subsidies: Taxes can be used to internalize externalities, making those who cause negative externalities bear the social costs of their actions. For instance, a carbon tax on emissions encourages companies to reduce their carbon footprint. Conversely, subsidies can promote activities with positive externalities, such as subsidies for renewable energy projects.
Provision of Public Goods: Since private markets often fail to provide public goods due to their non-excludable and non-rivalrous nature, governments step in to provide these goods. This ensures that essential services like national defense, public education, and infrastructure are available to all citizens.
Anti-Monopoly Policies: To combat the inefficiencies of monopolies, governments can enforce anti-trust laws and regulations. These laws prevent monopolistic practices, promote competition, and protect consumers from exploitation.
Real-World Examples of Market Failure and Government Intervention
Climate Change: Climate change is a global negative externality. Governments worldwide have implemented policies like carbon taxes, emission trading systems, and subsidies for renewable energy to mitigate its impact. These interventions aim to reduce greenhouse gas emissions and promote sustainable practices.
Healthcare: The provision of healthcare often involves significant government intervention due to information asymmetry and the public good nature of health services. In many countries, governments provide universal healthcare or regulate the health insurance market to ensure that citizens have access to medical care.
Financial Markets: The 2008 financial crisis highlighted severe market failures within financial markets, such as excessive risk-taking and information asymmetry. In response, governments implemented regulatory reforms, including stricter capital requirements for banks and enhanced oversight of financial institutions.
Education: Education is another area where the government plays a crucial role. Public education systems ensure that all children have access to basic education, addressing the positive externalities associated with an educated population.
Conclusion
Understanding market failure and government intervention is essential for economics students, especially those seeking Public Economics Homework Help. By analyzing the causes of market failure and the various forms of government intervention, students can gain a comprehensive understanding of how economies function and the role of policy in promoting social welfare. Whether dealing with externalities, public goods, information asymmetry, or monopolies, government intervention is often necessary to correct inefficiencies and ensure optimal resource allocation. This knowledge is not only crucial for academic success but also for informed citizenship and policy-making.
By delving into these concepts, students can better prepare for their assignments and contribute to meaningful discussions on economic policy and its impacts on society.
source: https://www.economicshomeworkhelper.com/blog/market-failure-and-government-intervention/
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‘When Can We Go to School?’ Nearly 300 Million Children Are Missing Class.
Students are now out of school in China, South Korea, Iran, Japan, France, Pakistan, some parts of the U.S. and elsewhere — some for only a few days, others for weeks on end. In Italy, all schools and universities will remain closed until March 15. Day cares and nannies are already overbooked. If you were a manager and many of your employees had grade school children, what, if anything, would you do to address this problem? Why? What are the ethics underlying your decision?
The coronavirus epidemic reached deeper into daily life across the world on Wednesday, with a sweeping shutdown of all schools in Italy and warnings of school closures in the United States, intensifying the educational upheaval of nearly 300 million students globally.
Only a few weeks ago, China, where the outbreak began, was the only country to suspend classes. But the virus has spread so quickly that by Wednesday, 22 countries on three continents had announced school closures of varying degrees, leading the United Nations to warn that “the global scale and speed of the current educational disruption is unparalleled.”
Students are now out of school in South Korea, Iran, Japan, France, Pakistan and elsewhere — some for only a few days, others for weeks on end. In Italy, suffering one of the deadliest outbreaks outside China, officials said Wednesday that they would extend school closures beyond the north, where the government has imposed a lockdown on several towns, to the entire nation. All schools and universities will remain closed until March 15, officials said.
On the West Coast of the United States, the region with the most American infections so far, Los Angeles declared a state of emergency on Wednesday, advising parents to steel themselves for school closures in the nation’s second-largest public school district. Washington State, which has reported at least 10 deaths from the outbreak, has closed some schools, while on the other side of the country in New York, newly diagnosed cases have led to the closure of several schools as well.
The speed and scale of the educational tumult — which now affects 290.5 million students worldwide, the United Nations says — has little parallel in modern history, educators and economists contend. Schools provide structure and support for families, communities and entire economies. The effect of closing them for days, weeks and sometimes even months could have untold repercussions for children and societies at large.
“They’re always saying, ‘When can we go out to play? When can we go to school?’” said Gao Mengxian, a security guard in Hong Kong whose two daughters have been stuck at home because school has been suspended since January.
In some countries, older students have missed crucial study sessions for college admissions exams, while younger ones have risked falling behind in reading and math. Parents have lost wages, tried to work at home or scrambled to find child care. Some have moved children to new schools in areas unaffected by the coronavirus, and lost milestones like graduation ceremonies or last days of school.
“I don’t have data to offer, but can’t think of any instances in modern times where advanced economies shut down schools nationally for prolonged periods of time,” said Jacob Kirkegaard, a senior fellow at the Peterson Institute for International Economics in Washington.
In Hong Kong, families like Ms. Gao’s have struggled to maintain some semblance of normalcy.
Ms. Gao, 48, stopped working to watch her daughters and started scrimping on household expenses. She ventures outside just once a week and spends the most time helping her girls, 10 and 8, with online classes, fumbling through technology that leaves her confused and her daughters frustrated.
Governments are trying to help. Japan is offering subsidies to help companies offset the cost of parents’ taking time off. France has promised 14 days of paid sick leave to parents of children who must self-isolate, if they have no choice but to watch their children.
But the burdens are widespread, touching corners of society seemingly unconnected to education. In Japan, schools have canceled bulk food deliveries for lunches they will no longer serve, hurting farmers and suppliers. In Hong Kong, an army of domestic helpers has been left unemployed after wealthy families enrolled their children in schools overseas.
Julia Bossard, a 39-year-old mother of two in France, said she had been forced to rethink her entire routine since her older son’s school was closed for two weeks for disinfection. Her days now consist of helping her children with homework and scouring supermarkets for fast-disappearing pasta, rice and canned food. “We had to reorganize ourselves,” she said.
Online and Alone
School and government officials have sought to keep children learning — and occupied — at home. The Italian government created a web page to give teachers access to videoconference tools and ready-made lesson plans. Mongolian television stations are airing classes. Iran’s government has made all children’s internet content free.
Students even take online physical education: At least one school in Hong Kong requires students — in gym uniform — to follow along as an instructor demonstrates push-ups onscreen. Each student’s webcam provides proof.
The offline reality, though, is challenging. Technological hurdles and unavoidable distractions pop up when children and teenagers are left to their own devices — literally.
Thira Pang, a 17-year-old high school student in Hong Kong, has been repeatedly late for class because her internet connection is slow. She now logs on 15 minutes early.
“It’s just a bit of luck to see whether you can get in,” she said.
The new classroom at home poses greater problems for younger students, and their older caregivers. Ruby Tan, a teacher in Chongqing, a city in southwestern China that suspended school last month, said many grandparents were helping with child care so that the parents can go to work. But the grandparents do not always know the technology.
“They don’t have any way of supervising the children’s learning, and instead let them develop bad habits of not being able to focus during study time,” Ms. Tan said.
Some interruptions are unavoidable. Posts on Chinese social media show teachers and students climbing onto rooftops or hovering outside neighbors’ homes in search of a stronger internet signal. One family in Inner Mongolia packed up its yurt and migrated elsewhere in the grasslands for a better web connection, a Chinese magazine reported.
The closings have also altered the normal milestones of education. In Japan, the school year typically ends in March. Many schools are now restricting the ceremonies to teachers and students.
When Satoko Morita’s son graduated from high school in Akita Prefecture, in northern Japan, on March 1, she was not there. It will be the same for her daughter’s ceremony at elementary school.
“My daughter asked me, ‘What’s the point of attending and delivering speeches in the ceremony without parents?’” she said.
For Chloe Lau, a Hong Kong student, the end of her high school education came abruptly. Her last day was supposed to be April 2, but schools in Hong Kong will not resume until at least April 20.
A Burden on Women
With the closings, families must rethink how they support themselves and split household responsibilities. The burden has fallen particularly hard on women, who across the world are still largely responsible for child care.
Babysitters are in short supply or leery of taking children from hard-hit regions.
The 11-year-old son of Lee Seong-yeon, a health information manager at a hospital in Seoul, South Korea, has been out of class since the government suspended schools nationwide on Monday. South Korea has the highest number of coronavirus cases outside China.
Working from home was never an option for Ms. Lee: She and her husband, also a hospital employee, have more work duties than ever. So Ms. Lee’s son spends each weekday alone, eating lunchboxes of sausage and kimchi fried rice premade by Ms. Lee.
“I think I would have quit my job if my son were younger, because I wouldn’t have been able to leave him alone at home,” Ms. Lee said.
Still, she feels her career will suffer. “I try to get off work at 6 p.m. sharp, even when others at the office are still at their desks, and I run home to my son and make him dinner,” she said. “So I know there is no way I am ever going to be acknowledged for my career at work.”
For mothers with few safety nets, options are even more limited.
In Athens, Anastasia Moschos said she had been lucky. When her 6-year-old son’s school was closed for a week, Ms. Moschos, 47, an insurance broker, left her son with her father, who was visiting. But if the schools stay closed, she may have to scramble for help.
“The assumption is that everyone has someone to assist,” she said. “That’s not the case with me. I’m a single mother, and I don’t have help at home.”
Even mothers able to leave affected areas have trouble finding child care. Cristina Tagliabue, a communications entrepreneur from Milan, the center of Italy’s outbreak, recently moved with her 2-year-old son to her second home in Rome. But no day care facility would accept her son because other parents did not want anyone from Milan near their children, Ms. Tagliabue said.
The closings in Italy — which include day care in addition to schools and universities — are likely to create problems for parents nationwide.
Ms. Tagliabue has turned down several job proposals, she said, since she is unable to work at home without a babysitter for her young child.
“It’s right to close schools, but that has a cost,” she said. “The government could have done something for mothers — we are also in quarantine.”
Beyond the Classroom
The epidemic has shaken entire industries that rely on the rituals of students in school and parents at work.
School administrators in Japan, surprised by the abrupt decision to close schools, have rushed to cancel orders for cafeteria lunches, stranding suppliers with unwanted groceries and temporarily unneeded employees.
Kazuo Tanaka, deputy director of the Yachimata School Lunch Center in central Japan, said it scrapped orders for ingredients to make about 5,000 lunches for 13 schools. It would cost the center about 20 million yen, nearly $200,000, each month that school was out, he said.
“Bakeries are blown,” said Yuzo Kojima, secretary general at the National School Lunch Association. “Dairy farmers and vegetable farmers will be hit. The workers at the school lunch centers cannot work.”
To blunt the effects, Japan’s government is offering financial help to parents, small businesses and health care providers. But school lunch officials said they had not heard about compensation for their workers.
In Hong Kong, many among its sizable population of domestic helpers have been jobless as affluent parents have enrolled children overseas.
Demand for nannies had already dropped by a third when the outbreak began, because many companies allowed parents to work from home, said Felix Choi, the director of Babysitter.hk, a nanny service. Now some expatriate families have left the city rather than wait out the closings.
“Over 30 percent of our client base is Western expat families, and I’m not seeing many of them coming back to Hong Kong at this moment,” Mr. Choi said. “Most of them informed us they will only come back after school restarts.”
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Business and Business Environment
https://www.cheapassignmenthelp.co.uk/business-and-business-environment-assignment-help/Business and Business Environment Assignment Assistance introduction There are many types of business organizations. Organizations can be a sole trader or private limited run in partnership. Those benefits can be for organizations or for non-profit organizations as well. Companies can also be related to the public limited group which essentially runs governmental organizations for public benefit. These companies together set up mixed economy; Which is a type of economy, where both private companies and government organizations are present to run the economy keeping the welfare of the general public (Sim.es et al. 2016, p.3330).
This part of the report represents two companies; A titan airway from the private sector; A UK airline and public limited company, which is run by the British Government. The deeper analysis of the two companies will be done to understand trade trends and business environment.
British Airways Company Description British Airways (BA) is based on WTSAP; UK is a public limited government airline company; The main center is located in London Heathrow Airport. It is the largest British airline company, according to the size of the fleet and the B traveler size, it is the second largest in the UK. After the Civil Aviation Act was passed in 1971, the British Government established a British Airways Board in 1972, to manage British Overseas Airways Corporation (BOAC) and British European Airways (BEA). Later on 31 March 1974 British Airways was established. London Heathrow Airport is also presenting its presence in British Airways as well as its presence in Gatwick Airport and London City Airport. BA London owns 40% of the Heathrow Airport slot, with the exception of Terminal 1 and 3. Most services running Terminal 5 have seen some fluctuations in the years of their existence. BA merged with Iberia with the world's largest international airline group (Britishairways.com. 2017) in 2011.
Got the services British Airways offers two types of flight services in 2016. They are fleet and cargo fleet. Apart from this, BA tells about 160 destinations around the world, including six domestic destinations (Britishairways.com 2017).
Fleet
By 2016, BA has approximately 268 flats. Below are the charts of fleet provided.
airplane
In service
order
Airbus A318-100
2
Airbus A319-100
44
Airbus A320-200
68
Airbus A320neo
25
Airbus A321-200
18
Airbus A321neo
10
Airbus A350-1000
18
Airbus A380-800
12
Boeing 747-400
37
Boeing 767-300ER
7
Boeing 777-200
3
Boeing 777-200ER
43
Boeing 777-300ER
12
Boeing 787-8
8
4
Boeing 787-9
14
4
Boeing 787-10
12
complete
268
73
Cargo fleet
British Airways was the freight division of World Cargo Cargo before they merged with IAG to form the IAG cargo division. In 2014, IAG entered into an agreement with Qatar Airways so that Qatar Airways could operate flights to IAG using Qatar's Boeing 77F (Britishairways.com. 2017).
Size of organization The total number of people working and working for BA (till 2015) is 42322. A total of 15907 British Airways has been working till 2015. Gross annual revenues at the end of 2015 are € m11,333, with the profit of m1264 and in 2016, revenues and profits increased to £ m11,443 and £ m1,473 respectively (respectively lawn et al. 2013). By 2015, the number of travelers using BA has been 43.3 million and this increased to 44.5 million in 2016. Percentage passenger load factor is for 43.3% (British Airways., 2017).
Industrial Relations British Airways has the codeshare agreement between the following airlines.
Er lingus
Air berlin
Bal Baltic
American Airlines
Bangkok airways
Cathay Pacific
China East
Finair
Flybe
Iberia
Japan Airlines
Latam Brazil
Latam Chile
Quanta
Qatar Airways
Royal jordan
S7 Airlines
TAAG Angola Airlines
Vueling
BA City Flyer is a subsidiary of BA, which operates flights from London Base to its airport. After the establishment of the Open Skies Agreement between Europe and the United States, British Airways established another new supplemental airline called Open-Skies, which was previously known as "Project Lauren". In June 2008, the airline started work and now offers direct flights from Paris to New York's JFK and Newark airports (Lang et al., 2015, p.389).
Business objectives His business objective statement is "Meet the increasing expectations of our customers for our strategy of converting British Airways to the world's leading global premium airline". Our investment in our staff, our fleet and our facilities are about ensuring that we provide the best in customer service. We want all our customers to enjoy a premium service at every point of their journey, whenever and wherever they travel with us. "(British, Shanghai)
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