Introduction

            According to economics, the informal sectors, or the grey economy is perceived to be part of the modern economy that is neither monitored nor taxed by various forms of the government. As compared to the formal economy, it is evident that all the activities of the informal economy are not always incorporated in the GDP (gross domestic product) or GNP (gross domestic product) of a country. The reason as to why the informal sector is termed as being a grey market is as a result of taking into consideration the volume of labor needed to execute the existing tasks (Jean et al 15). In addition to that, there are various concepts that can be used for the purpose of characterizing the informal sector. This includes things like black economy (underground or shadow economy), system D, and agorism.

            On the other hand, despite the fact that informal sector have been realized to have the potential of making considerable portion of the economies in the majority of the developing countries, the truth is that the same is somehow stigmatized as a result of unmanageable and troublesome. Despite that, the truth is that informal sector has the ability of providing significant economic opportunities for the majority of the poor (Erika & Sacha 55). Thus, it implies that the need for integrating informal economy into the existing formal sectors is also something to have proven to be one of the important policy challenges.  Research indicates that the informal economy is something that ultimately consists of more than fifty percent of the world labor force as well as more than night percent of other small business, especially (SMEs) worldwide.  This is to means that informality is one of the most important characteristics of the modern labor market that comprises of economic units (Paul 85).

                                                            Discussion

            According to the modern economic research, informal economy ultimately takes into consideration several economic activities that are tackled by employees and other economic units that are not insufficiently covered by the approved formal arrangements, whether in practice or in law. Although this definition do not have to take into account illegal activities, the economic units in this context refers to all units that recruit hired labor, solidarity, social and cooperative economic units, and persons working on their own accounts (Center for the Study of Democracy 121). Nonetheless, what this indicates is the fact that the majority of the activities that are contained in the informal economy always takes outside the government recordkeeping or regulation. The following as some of the areas that are taken into consideration when explaining the impacts of the modern informal sector or economy taking into consideration its advantages and disadvantages

1. a) Political and social issues and their implications

            According to the modern transition and development theories, in the informal sector, employees normally have unstable income, or receive little incomes which are ultimately coupled with the lack of general assessment to basic services and protection. Ideally, the informal sector is a field that is extremely large than the majority of people could realize, with women participating more as compared to men (Guillermo 13). The majority of the poor people working in this sector, especially women, mainly considered it as being the only source of income for their families. Despite that, it should be realized that this sector can lack the ability of growing hence indefinitely tapping workers in menial jobs. Likewise, research indicates that the informal sector can have the ability of enabling a large percentage of people to escape extreme levels of poverty through earning satisfactory income to sustain their life (Paul 85).

            On the other hand, it is evident that in a large percent of developed countries, it possible to find that those individuals who are formally employed might opt to perform a portion of their duties outside the formal sector. The reason for that it is perceived to have the ability of delivering to them more advantages as compared to the informal sector. From such a perspective, it means that it gives them the capacity of delivering to them pension and child benefits, social protection, and so on from their existing formal employment. From the government’s point of view, the informal sector can have the ability of creating a vicious cycle (Perry 43).

             Due to the fact that government can lack the capacity of collecting revenues from the informal economy, the government may lack the capability of financing public services. The effect of this is that it can end up making this economy to be more attractive. Despite that, some countries also consider informality as being beneficial to the economy because of its ability to enhance access to labor as well as mitigating issues associated with unemployment. The need of recognizing that informal sector has the potential of producing considerable goods and services, contribute to exportation and importation of goods and services, and create essential jobs is ultimately critical for governments (Boels 205).

1. b) Gender

            As noted from above, in the informal economy, women are the ones who contribute greatly when it comes to the accomplishment of the various activities contained in this sector. Although a large percent of them end up in the most corrupt and erratic sectors of the economy, the truth are that the majority of the female who provides non-agricultural labor force are contained in informal sector, especially in developing nations. In the informal economy, one of the major occupations include things like home-based employees, (for instance, unsalaried employees in family ventures, independent personal account producers, and dependent subcontract employees), and street vendors (Polese 3). In the informal economy, there are various factors that are used to represent women. An example of this is the fact that recruitment in the informal economy is perceived to be the only source reliable employment to thousands of women. On the contrary, in developing countries, various factors, such as, illiteracy, religious seclusion, and cultural norms, and greater commitments to their family are what hinder women to enter into the informal sector (Center for the Study of Democracy 127).

            In addition to that, the connection that exists between recruitment in the modern informal sector as well as the state of being poor is something that is stronger or more challenging for women as compared to men. Although a large percent of men end up being over-represented in the topmost segments of the informal economy, the reality is that women only have the tendency of overpopulating the bottom segment. As a result of that, it means that men have the likelihood of having a large scale operations as well as dealing in non-perishable goods while a small percent of women could be employers who recruits them (Perry 44).

             On the contrary, it is possible that women have the likelihood of participating in small sale operations which ultimately deals with food items. This suggests that, in the informal sector, the majority of women are always under-represented in high income earning positions as well as being over-represented in low income earning positions. Because of that, this has the effect of increasing the gender gap in the informal economy in terms of wage as compared to the formal sector. States, household decisions, and labor markets also have been noted to have the potential of propagating this inequality (Boels 206).

1. c) Agents of political power

            In the informal economy, economic research indicates that the majority of the employees often lack the opportunity of airing their views concerning the government policy. Although the political powers of the informal employees are limited, the presence of the informal sector also has the possibility of creating significant challenges for various politically influential people. For instance, despite that the informal labor force is not part of the trade union; they do not have the potential of changing the status (Boels 54). Accordingly, the informal sector has the ability of negatively affecting investments and workers membership in their trade unions. Instead, workers who could have been formally recruited and joined for the purpose of fostering their protection might opt to branch out voluntarily. Because of that, trade unions are left with no option but to oppose the informal economy, through highlighting the disadvantages and costs of the informal system (Supriya & Vando 8). 

            Similarly, it is evident that, in the formal sector, at times producers my feel endangered by the informal sector. The production costs and low labor, the bureaucratic autonomy of the informal sector, and the suppleness of production can all be perceived as being one of the significant competitions for the formal producers. This, in return, is what leaves with no choice but to object and challenge that sector. On the same note, the characteristics of the informal sector are free of standardized taxes and anti-regulation, which in aid in diminishing the political and material autonomy of the government agents. Regardless of the implications of these concerns, the informal economy has the potential of shifting political energies and power (Perry 45).

1. d) Poverty

            Typically, the relationship that exists between poverty and informal economy is neither clear nor simple. Since its causal relationship does not exist, the truth is that what has been observed is an inverse relationship between slow economic growth and increased informal economy. Ideally, in the informal sector, average incomes is something that is perceived to be significantly lower hence making it to be a high prevalence of impecunious workers employed in such an economy. On the other hand, in the informal sector, employees are less likely to have the propensity of benefiting from recruitment benefits as well as from other programs fostering social protection (Polese 76)

1. e) Child labor

            According to the modern economic research, a large percent of children are employed in the informal sector in various regions of the world. I most cases, they are employed as scavengers, (gathering various recyclable items from dump sites and streets), vendors, construction workers, cleaners, domestic workers, and so on. Regardless of what they earn, they work in exploitative and hazardous conditions. Since children are extremely susceptible to exploitation, they end suffering from the lack the lack the ability of accessing academic opportunities, which in return contributes greatly to social isolation as well as the lack of other future opportunities (Elizabeth, 8).

            In addition to that, during economic crisis, unemployment rate increases steadily making people to lose their jobs.  As a result of that, adolescents are compelled to sell goods or services as a means of supplementing the incomes of their parents. At the centre, instead of adolescent compromising their societal activities with their peers, they end up prioritizing their engagement in the informal sector. Therefore, it is important for the manufacturing labor force of children to understand that although it is not an ideal option, it is just a requirement for survival (Jhabvala 11).

                                     Implications of the informal sector

            Nevertheless, the expression of the informal economy ultimately consists of a vast assortment of situations and incidents.  In reality, it has been realized that the informal sector have the ability of manifesting itself in a number of forms within and across the modern economic world. Because of that, some of formalization measures and process that are directed as facilitating transitions to formality ought to be tailored to certain situations that are faced by various nations as well as the categories of workers or economic units (Studies in Labour Economics 1). Despite these considerations, the truth is that the tasks that are executed in the informal sector is something that is always characterized by undefined or small working environment, unhealthy, and unsafe working conditions. This is also coupled with irregular or low incomes, low productivity levels coupled with the utilization of low skills, lack of general access to information, low working hours, use of outdated technology, and so on (Center for the Study of Democracy 123).

            In the informal sector, employees have been perceived to face various challenges in terms of not being registered, recognized, protected, or regulated under the social protection and labor legislation.  Basically, the main root cause of this informality include things like the legal, policy, and regulatory framework, economic context, as well as other microeconomic determinants, for instance discrimination, low education levels, and poverty (Polese 75). All these are also brought about by some factors such as the lack of continued access to available economic resources, financials, property, as well as other business services. Therefore, the preference of informal economy continues to be the main challenge the impact the rights of thousands of employees, their working conditions, hence inducing a negative consequence on public revenues, fair competition, soundness of institutions, and governments’ scope of action (Jhabvala 12).

            On the other hand, involvement in the informal sector is perceived to become normalized because of the absence of resources that are available in marginalized and low-income communities (Elizabeth, 8). What this implies is the fact that regardless of the efforts they put into place; it is hard for them to advance in the modern economic hierarchy. The reason for that is because whenever a parent is unemployed or their job is extremely low in terms of demand, the truth is that they have no option other than seeking other alternative means of providing for their families. Still, due to the incidences of the absence of jobs as well as the limitations of obtaining employment opportunities, it has been realized that adolescents have the ability of cooperating with their parents (Studies in Labour Economics 2). The reason for that is because they have been realized to have the morale for working for the wellbeing of their families. In the process of assisting in the provision of the basic need to the family, it has been realized that in most cases, children end up missing their childhood because of the need of participating in other youthful activities. Ideally, this is to imply that at the long-run, they are given the responsibility of taking up adult tasks which enables them to be perceived as the ultimate means of securing the welfare of their family (Erika & Sacha 56).

                                                Recommendations

            So as to be in the position of promoting decent work, it is important for the government from various economies to ensure that they have come up with an integrated and comprehensive methodology to cut across a wide range of policy areas. This will also have to take into consideration the need of incorporating a range of civil and institutional society actors. The reason for that is because such individuals have the ability of eliminating the existing negative impacts of informality, which in return preserves the job creation (Tripathy 18). With that in hand, it is easier for the country to increase its income generating potential of their informal economy. Ideally, the objective of any economy entail promoting the protection as well as the incorporation of employees and other economic units that exists in the informal economy into the modern or mainstream economy.

            Accordingly, the informal sector has the ability of negatively affecting investments and the membership of employees in their trade unions. As a result of that, workers who could have been formally recruited and joined their trade unions for the purpose of fostering their protection might end up opting out voluntarily. On the same note, the characteristics of the informal sector is perceived to be free of standardized taxes, which in return aid in diminishing the political and material autonomy of the government and its associated agents. Furthermore, in the informal sector, employees are less likely to have the propensity of benefiting from recruitment benefits as well as from other programs that foster social protection (Manson 174).

            On the other hand, it should be understood that informal sector do not give the government the capacity of measuring the actual value of the economy which in return has the potential of assisting it to formulate better policies. Likewise, since the government is also deprived the opportunity of collecting taxes the way it used to be, it means that it is not easy to offer protection to consumers from purchasing unsafe or fake goods from sellers (Supriya & Vando 8).  Due to the fact that at time those workers who get injured while at work do not have alternative to necessary insurance, this is also coupled with the fact that they also lack the opportunity of accumulating pension benefits from the government or the institutions that are working at. As a result of that, it implies that it the responsibility of the informal sector to ensure that they have maintained their small size so as to have the propensity of attracting attention (Jean et al 15).

            As much as informal sector is concerned, the economic exchange of the system of trade that is utilized outside the country is the one that can aid in controlling business transactions. Thus, research suggests that the percentage of the income that is produced by the informal sector is not always recorded as required for the purpose of fostering business activities (Tripathy 18). Likewise, such information is mostly unavailable when they are needed for enhancing better computation of GDP (gross domestic product) of a country.

                                                            Conclusion

            Consequently, the reason as to why the informal sector is termed as being a grey market is as a result of taking into consideration the volume of labor needed to accomplish the existing tasks. Therefore, the need for integrating the current informal economy into the existing formal sectors is also one of the scenarios that have proven to be some of the challenges impacting proper economic policy formulation.  Nonetheless, what this indicates is the fact that the majority of the activities that are contained in the informal economy always takes outside the government recordkeeping or regulation. Preferably, the informal sector is an area that is extremely large as compared to the formal sector, with women participating more as compared to men. This is to imply that the majority of the poor people working in this sector, especially women, mainly considered it as being the only source of income for their families.

            Nonetheless, due to the fact that government at times can lack the capacity of collecting revenues from the informal economy, it may also lack the capability of financing public services which in return improves the state of the economy. The end result of this is that it can end up making this economy to be more attractive. In the informal economy, there are various factors that are used to represent women. Ideally, it should be understood that recruitment in the informal economy is perceived to be the only source reliable employment to thousands of women. As a result of that, it is possible that women have the likelihood of participating in small sale operations which ultimately deals with food items. This means that, in the informal sector, the majority of people, especially women, are always under-represented in high income earning positions as well as being over-represented in low income earning positions.

            Last, but not least, regardless of what a person earns, all of them work in exploitative and hazardous conditions which diminish social cohesion. Since workers are extremely subject to exploitation, they end suffering from the lack the lack the ability of accessing required economic resources and other opportunities to improve their wellbeing. What this implies is the fact that regardless of the workers put into place; it becomes difficult for them to advance in the modern economic hierarchy. Thus, in the long-run, it is important for individuals to understand the impact the informal economy has to their economy so as to take collective measures.

                                                Work cited

Boels, Dominique. The Informal Economy: Seasonal Work, Street Selling and Sex Work. , 2016. Internet resource.

Center for the Study of Democracy. The Informal Economy in the EU Accession Countries: Size, Scope, Trends and Challenges in the Process of EU Enlargement. CSD Press, 2003. Print

Elizabeth, H. Worker Identity, Agency and Economic Development: Women's Empowerment in the Indian Informal Economy. Routledge, 2010. Print

Erika, K.M and Sacha, W.V. The Informal Economy in Developing Nations: Intellectual Property, Innovation, and Economic Development. Cambridge University Press, 2016. Print

Guillermo, J.V. Measuring the Informal Economy in Latin America and the Caribbean, Issues 2008-2102. International Monetary Fund, 2008. Print

Jean, P.C., Stéphane, L., Mireille, R., and François, R. The Informal Economy in Developing Countries: Routledge Studies in Development Economics. Routledge, 2014. Print

Jhabvala, Renana. Informal Economy Centrestage. New Delhi: Sage Publ, 2003. Print.

Manson, Anthea, and Glennis Ravenscroft. Geography: Grade 12. Cape Town: Pearson/Maskew Miller Longman, 2008. Print.

Paul, G. Management, Society, and the Informal Economy: Routledge Advances in Management and Business Studies. Routledge Press, 2015. Print

Perry, Guillermo. Informality: Exit and Exclusion. Washington, D.C: World Bank, 2007. Print.

Polese, Abel, Colin C. Williams, Ioana A. Horodnic, and Predrag Bejaković. The Informal Economy in Global Perspective: Varieties of Governance. New York: Palgrave Macmillan, 2017. Print.

Studies in Labour Economics. Workers and the Global Informal Economy: Interdisciplinary perspectives. Routledge, 2016. Print

Supriya, R and Vando, B. Workers and the Global Informal Economy: Interdisciplinary perspectives. Routledge, 2016. Print

Tripathy, S N. Women in Informal Sector. New Delhi: Discovery Publ. House, 2003. Print.

                                                            Table of contents

Executive Summary………………………………………………………….3

Introduction ………………………………………………………………….3

 Land and Title………………………………………………………………..4

Location………………………………………………………………………5

 Site Description and Services…………………………………………………6

 Town Planning………………………………………………………………..7

 Land and Improvements to Land……………………………………………..8

 Improvements…………………………………………………………………9

Description ……………………………………………………………………10

Conclusion…………………………………………………………………….12

References…………………………………………………………………….13

                                                            Executive summary

            Economically, property value takes into consideration various parameters. The first one is comparing it with other existing homes that were sold or bought. The next criteria entail giving it an appraisal that is to be based on location, structural condition, and amenities as well as recent sales of the similar location properties. In so doing, it means that it is important for a real estate agent to ensure that he or she has the ability of providing accurate property valuation that is ultimately comparable to the value of the surrounding homes that were bought or sold. The reason for that is because it is the one that has the potential of presenting comparative market analysis to both the buyer and the seller.

            On the other hand, the comparative market report to be displayed need to take into consideration pending listings, active listings, off market information, sold listing, as well as real estate agents which in return can assist in determining the price at which the property can be sold at. In order to make it more competitive, it is important as a real estate agent to ensure that the size of the property have been taken into consideration. The reason for that is because such factors are the use that can be used as the main basis for coming into a reasonable profitable selling amount. 

                                                            Introduction

            From the information collected regarding the 181 Humphries road, St John’s Park 2176, the truth is that land valuation or property valuation is that from the sampling exercise conducted, the main concern entailed caring about the probability proportional to size and frequency of the samples to be collected. Regardless of the value that the property can be valued at, the truth is that it is vital for a person to ensure that he or she has ended up understanding the some of the subjective processes that exits in the process of its protocol variables and assumptions (AbduL, 2002, p.334).  In so doing, it implies that the final value that a person arrives at regarding this property will ultimately be based on the property appraisal approaches to be used by each person. This then implies that as the property management team, it is vital to ensure that the valuation income is something that ought to be the perspectives of the logical appraiser at the end of the day. This is important because it is the one that has the ability making people to understand its valuation approaches taking into consideration the area that it situated (Millington, 2013 p 93). 

            According to the modern property valuation approaches, the truth is that the general estimation of the 181 Humphries road, St John’s park 2176 property fair value is something that has been realized to have the potential of fascinating the majority of individuals who desires to own such houses. From the existing property valuation literature, the truth is that the general valuation of residential properties is something that is perceived to one of the ultimate means of building ultimate gains which are can be represented in liquid assets. On the same note, it is the same protocol that is perceived to have the potential of necessitating the continued utilization of the approaches that are used in property valuation (ISAAC & O'LEARY, 2012 p. 55). 

            During the general valuation of this property, it is important for the valuer to ensure that he or she has provided expert estimate regarding it. This will have to take into consideration the some of the separate influences that aid in creating, maintaining, or diminishing its value. Since this is what will keep on impacting the value and the marketability of this property, it is important to ensure that re-assessment have been taken incase such risks exists. Research also indicates that it is important to ensure that its market and specific factors have been taken into consideration (Valuation principles and practice, 2007 p.138).

            In the process of stating the requirements of the client who wishes to purchase such a property, it is should be realized it is possible to reduce all the time and expenses incurred during its evaluation process. Therefore, it is vital for the valuer to ensure that he or she detailed information, for instance, the nature of such a property, its valuation date, some of the additional matters that might have to be addressed, its valuation interest, the parties or party that the property valuation will be addressed to, and so on (Valuation principles and practice, 2007 p. 137).

                                                            Land and title

            On the other hand, it implies that is important for the valuation appraiser of such a property to ensure that he or she has the ability of understanding the expenses to be incurred in the process of acquiring the title of that property through using the existing income approach, cost approach, and sales comparison approach. The reason for that is because it is the same approaches that have the ability of reflecting the manner in which other existing valuation approaches has the ability of generating the existing property valuation approaches with regard to land and title acquisition  From the modern property valuation information collected, it has been realized that the majority of those who desire to buy such properties ultimately desire to approximate their investment value through using some of the existing property valuation parameters that are ultimately based on the value that land could have been valued at. This is what the potential investor will have to pay taking into account the effect of inflation rates (Michael, 2016 p. 86). Equally, the value at which the property will be sold at will have to be based on the expenses to be incurred during the acquisition of the property title.

            During the provision of the title of the property, it is vital for the valuer to ensure that he or she has commented upon it. Things like the plan number, folio identifier, and site survey information ought to be provided in case a current title is not available. It, therefore, means that it is important for the property to be subjected to acceptable title search. The associated party or parties should also ensure that they have provided details regarding all the matters that have the likelihood of affecting its title (Valuation principles and practice, 2007 p.138).

                                                            Location

            In order to be in the position of valuing such a property, it is important for the property appraiser to ensure that he or she has the ability of understanding the dynamics of the modern business world. The reason for that is because the valuation of such a property is science and an art procedure. As one of the investment science, the whole procedure will have to take into account the need of formulating some of the mechanisms that are used in reflecting the location expenses of such a property (Valuation principles and practice, 2007 p. 142)

            In the process of understanding the value it will be sold at taking into account its location, the valuation of such a property will ultimately take into account the location assumptions that are used for the purpose of generating equitable income. This to imply that the approach that can be used valuing this property needs to take into consideration what the buyer accepts to pay within such a locality. The reason for that is because it is the one that has the ability of enabling the181 Humphries road, St John’s park 2176 property appraiser to have the ability of determining the costs of such a transaction (Wyatt, 2007 p.112). The details regarding the location of this property should have to address accessibility and the availability of the existing transport facilities. Other than explaining the nature of the surrounding land utilization or development, it is vital for the valuer of this property to ensure that he or she has documented the its proximity to retail facilities, educational facilities, and contamination from other surrounding areas, recreational facilities, as well as other major cities (Valuation principles and practice, 2007 p.142).

                                                Site description and services

            During the evaluation of such a property, there are various approaches that can be used for the purpose of understanding the mechanisms that can be used for the purpose of reflecting the true value of such a property. As much as the valuation of this property is concerned, the truth is that the appraiser of this property has the responsibility of ensuring that the reduction expenses of this method is the one that has the potential of reducing its valuation expenses. The reason for that is because it has been realized that property valuation expenses do not have the ability of mirroring its income-associated with regard to its location. This will have to take into account the cost of the site as well as the expenses that were incurred during its construction (Millington, 2013 p 93). It is, therefore, important for the property appraiser to ensure that he or she has ended up substantiating some of the property estimating variables takes into account where such a property is located and the interest it is projected to generate after being sold. The reason for that is because it is the same factors that are usually used in calculating the true value of a residential property (Michael, 2016 p. 86).

            Accordingly, during the general valuation of the same property, it is important for appraiser to ensure that he or she has taken into consideration the space occupied by such a property. This in return is one of the factors that can aid in reflecting the amount to be added to the in the valuation cost. Conversely, one a residential property like that has been renovated, it means that it vital to ensure that the expenses incurred has been incorporated during its evaluation process.  It is that improvement that has been realized to have the ability of improving the manner in which potential buyer can be enticed into the potential of understanding such improvements made with respect to the property comparison method arrived at (Wyatt, 2007 p.125). 

                                                            Town planning

            It should be understood that the value of such a property ought to be based on the nature of its surrounding. It, therefore, means that during its evaluation process, the whole protocol that has the ability of ignoring the value of the property just in terms of assets and business planning process. It is, therefore, important for the property appraiser to ensure that he or she has ended up substantiating some of the property estimating variables regarding the manner in which the locality is perceived to economically grow. The reason for that is because it is the same factors that are usually used in calculating the true value of a residential property. Consequently, during the general valuation of the same property, it is important for the property appraiser to ensure that he or she has taken into consideration the valuation amount that was arrived at by the existing residential houses just within that town (Robert, 2004 p.13). This in return is one of the factors that can assist the appraiser of such a property to reflect the amount to be added to the in the valuation cost regarding the expenses that the aid in reflecting the improvement of the same locality

            On the contrary, once a residential property like the 181 Humphries road, St John’s Park 2176 has been renovated, it means that it vital to ensure that the expenses incurred have been incorporated during its evaluation process.  It s such property valuation improvement that has been noted to have the ability of improving the way in which potential buyer can understand the importance of purchasing as a house after comparing it with the recently sold ones; the comparable approach (Millington, 2013 p 89). It is recommended for the valuer to ensure that he or she has made independent investigation during the search for zoning certificate. Moreover, during the search for certificate of compliance, it is important for the intending mortgagees to ensure that they have had the ability of determining as well as advising the extent of all the associated documents needed (Valuation principles and practice, 2007 p.143).

                                                Land and improvement to land

            In the process of efficiently utilizing property valuation protocol, it should be understood that recent sales of unoccupied property have been used as the basis making the comparison. Taking into consideration the evaluation value of the recently existing properties, the truth is that as the property continues to become older, its appreciation land rate also increases thus making it much difficulty to quantify it  (Valuation principles and practice, 2007 p.144). In the process of valuing such a property, the property appraiser will have to take into account the importance of estimating the amount such properties ought to be sold at taking into account its comparative approaches (Millington, 2013 p. 90). The reason for that is because in the process of estimating the general land cost of such a property, the expenses incurred during its construction can be computed easily. This will also take into account its land value. In the process of estimating its accumulated land value, depreciation amount of it will ultimately be subjected to asset budgeting before subtracting it from the perceived real value (UNITED NATIONS HUMAN SETTLEMENTS PROGRAMME, 2008 p. 36).  Thus, the liquidation land value of such a property will have to be based on what the potential buyer has to pay,

            Taking into account the valuation value of this property, it implies that the expenses to be uncured during the land evaluation process will ultimately rely on the expenses incurred during its construction. On the other hand, in the process of estimating its obsolescence and depreciation rate, it is important to take into account the manner in which the buyer perceives the house to be. Ideally, the replacement cost is something that has been perceived to be one of the means that are used to increase the economy of scale of property appraisers (Tim, 2013 p.3).

                                                            Improvements

            Taking into consideration the income approach to be used in valuing this property, the truth is that its income generating propensity is the one that has the potential of reducing its market worth. The reason for that is because it the one that can aid in determining the amount of income that that property is projected to produce. Such a method is important because it can assist the appraiser of this property to have the ability of the comparable market value of such a property. Within this context, discounted cash flow and direct capitalization method are some of the means that should be used to value the true value of such a property (BAH et al 2018 p. 138).

            It should be understood that the importance of direct capitalization is that it is perceived to be one of the snapshots that can aid in reflecting the discounted inflow cash of the selling deal. It is therefore important for the property value to ensure that the income to be generated from such a property will be based on the existing financial information regarding the doctrines of the industry. Regardless of ensuring income stabilization, it is important to take into account the market value of the recently sold properties around that area. The application of this method is ultimately essential when it comes to the evaluation of such a residential building. The reason for that is because the majority of such residential properties that do not have normal rates is the one that end up contradicting its evaluation reliable methodologies UNITED NATIONS HUMAN SETTLEMENTS PROGRAMME, 2008 p. 37). 

            On the other hand, to understand the future value to be obtained from such a property, it is important to take into account its mortgage financing expense. The same mechanism can equally be utilized as the main basis of predicting its true value. This will have to take into account some of the distorted estimates as well as the predictions of the appraiser when it comes to the need of understanding the residential evaluation trends and evaluation income.  Despite that, the general application of the two methods can also aid in scrutinizing the property appraisal differences that exists (Tim, 2013 p.3).

                                                            Description

            Regardless of the methodological property approaches to be used, it should be acknowledged that the automated approach can also be the best means of valuing this property. The reason for that is because it is the one that can aid in estimating the true value of such a property taking into consideration its neighboring surrounding. Portfolio analysis of such a property is also something that ought to be taken into consideration when is mortgage backed securities are taken into account (Les, 2008 p.15).

            In the process of using this property evaluation mechanism for the 181 Humphries road, St John’s park 2176 property, the average daily rate of such a property needs to be taken into consideration. Other than determining the number of rooms that the property has, it is its operating capacity that has the potential of reflecting its true value. In the process of using the discounted cash flow method, it is important to ensure that the appraiser of this property have had the capacity of understanding the impacts of the recently sold comparable properties. Despite that, it is important for the appraiser of this property to ensure that he or she have ignored some of the contradicting methodological approaches.  The reason for that is because it has the potential of contradicting the identification of some of the macroeconomic and economic factor that affects its selling price (Robert, 2004 p.13).

            Thus, the significance of this approach is that it will aid the appraiser of this property to efficiently analyze its portfolio as compared to the process of using it in evaluating what other surrounding properties could have generated. The reason for that is because research indicates that a large percentage of the idiosyncratic risks encountered are ultimately contained it the portfolio levels of such properties (Millington, 2013 p 89).

            According to the modern research, property value takes into consideration various parameters. The first one is comparing it with other existing homes that were sold or bought. This is the one that has the potential of presenting comparative market analysis to both the buyer and the seller. The reason for that is because such factors are the use that can be used as means of coming into a reasonable profitable selling amount. This then implies that as the property management team for such a residence, it is vital to ensure that the valuation income is something that ought to be the perspectives of the logical appraiser at the end of the day. This is important because it is the one that has the ability making people to understand its valuation approaches taking into consideration the area that it situated (Valuation principles and practice, 2007 p. 143).

            According to the modern property valuation approaches, the truth is that the general estimation of the fair value of such a property is something that has been realized to have the potential of fascinating the majority of individuals who desires to own such houses. From the existing property valuation literature surrounding the person to be involved in the appraisal process, the truth is that the general valuation of residential properties is something that is perceived to one of the ultimate means of building ultimate gains which are can be represented in liquid assets. This is what will determine the interest to be gained during its evaluation process (Millington, 2013 p. 31).

                                                                        Conclusion

            From the above perspective, it should be understood that, the same approaches that have the ability of reflecting the manner in which other existing valuation approaches has the ability of generating the existing property valuation approaches. During the investment cycle, the whole procedure will have to take into account the need of formulating some of the mathematical formulas that can aid in reflecting the true value of the property. As an art and science, the valuation of such a property will ultimately take into account the assumptions that the appraiser can use ss for the purpose of generating equitable returns. Thus, property valuation is one of the factors or mechanisms that are used to generate income. The reason for that is because it is the one that has the ability of enabling the property appraiser to have the ability of determining the expenses to be incurred such a transaction. 

                                                            References

ABDUL HAMID MAR IMAN. (2002). An introduction to property marketing. Johor, Penerbit Universiti Teknologi Malaysia (UTM).

BAH, E.-H. M., FAYE, I., & GEH, Z. F. (2018). Housing market dynamics in Africa. http://public.eblib.com/choice/publicfullrecord.aspx?p=5589085.

ISAAC, D., & O'LEARY, J. (2012). Property valuation principles. Basingstoke, Palgrave Macmillan. http://public.eblib.com/choice/publicfullrecord.aspx?p=4763964.

LES ,R. (2008). Economics for the Modern Built Environment.  Routledge Press

MICHAEL, B. (2016). Introducing Property Valuation. Taylor & Francis Press

Millington, A. (2013). An Introduction to Property Valuation. Taylor & Francis Press

ROBERT, F. (2004). European Convergence in Property Valuation: How do the German Open-End Property Funds measure up? diplom.de Press

TIM H. (2013). Investment Property Valuation Today. Taylor & Francis Press

UNITED NATIONS HUMAN SETTLEMENTS PROGRAMME. (2008). Housing finance mechanisms in [name of country]. Nairobi, United Nations Human Settlements Programme.

Valuation principles and practice. (2007). Deakin, A.C.T.: Australian Property Institute.

WYATT, P. (2007). Property evaluation in an economic context. Oxford ; Malden, MA : Blackwell Pub

Reflection on the World’s Economy

There is a scheme that the government and economists fail to address; the world economy is based on an increasing population, the failure to address this scheme makes sustainability impossible. The world needs a new model of how to do things so as to be able to raise the standards of living of its inhabitants instead of depending on a pyramid scheme. The worlds need to find a scheme that will be able to offer a solution to the increasing population growth (Mcmahon, 2019).

It is urgent that the world changes its scheme since its current circumstance demands so.  Children are dying allover due to poverty related causes, and a majority percentage of humanity lives on $10 per day. The world is defined by a growing population but the cruel reality is most of its population are not able to meet its daily basic needs and this is due to the political and economic dilemmas’ facing the less developed countries (Balaam, n.d).

Developing countries are a worldwide concern, bearing many burdens such as long-term debts. In the 1990s, many of these countries had failed to reap the full benefits of Washington Consensus and found themselves heavily indebted to the World Bank and IMF and could not be able to pay back those debts. The economic liberal perspective on development requires these countries to become integrated into the global economy and most especially through trade, its major obstacles include anemic capital, productivity and technology. The relationship between these countries and western countries will be mutually beneficial. These countries will be able to improve their working conditions which in return will increase the standards of living (Balaam, n.d).

Lastly, to increase economic prosperity in the world and economic model that will be supported by the government will be based on having more young people than older people working, since the pyramid scheme is likely to fail, it should look towards embracing the ponzi scheme, which requires the young to be contributing more to the economy than the elderly. However, there is no such thing as sustainability while depending on both schemes (Mcmahon, 2019).

References

McMahon, J. (2019). The World Economy is A Pyramid Scheme, Steven Chu Says. Retrieved from; https://www.forbes.com/sites/jeffmcmahon/2019/04/05/the-world-economy-is-a-pyramid-             scheme-steven-chu       says/?fbclid=IwAR2qJqZtRrwXivgdwUbtRec97G7V8BG6KQ0jJH0lkFYOTdXpOrWe7            Ezo6Ic#67b139db4f17

Balaam (n.d). Introduction to International Political Economy, Chapter. 11.

Inflation in Kuwait

Part A

Moderate and stable inflation rates greatly promote the economic growth and development processes within a country. Since economies rely on the transactions that take place within the country, it is important to understand how inflation affects activities such as trade so as to find a way to help the country reach inflation rates that are likely to influence growth and development. Moderate inflation for example is responsible for enhancing investments and supplementing returns to savers and this greatly promotes economic growth within a country. It is therefore important for a country to understand the state of inflation as this places it in a better position to promote economic growth within the country.

            In a country like Kuwait, the inflation rate has been on the rise and it is expected to triple by 2019 especially due to the imposed Vat taxation that is expected to be implemented in the country. If successful, the taxation will rise to 4.5% by 2019, making an increase of 1.5% from what was recorded in the previous year (Saaed, 2007). While it is yet unclear the weather inflation affects the economic growth of a country, there is enough research on the topic to suggest that inflation could have both positive and negative impact on the economic growth of a country and must therefore be analyzed and understood so as to achieve positive outcomes. When the inflation is low and remains stable, it is likely to have a positive impact on a country’s economic growth while a high and unstable inflation is likely to slow down the economic growth in Kuwait. However, since frequency and stability are not adequate enough to determine what actions can be taken, the country could conduct more research so as to better understand the acceptable level for low inflation such that it does not slow down the economic growth of the country (Saaed, 2007). Since the effects of a low economy vary across different countries, governments and relevant organizations must also identify the nature of the economy that exists as different countries have different structures.  If, for example, a country studies its structural break effect, it will be able to identify the threshold where inflation stops having a positive impact on the economic growth (Chapter 13). Since the negative effects of inflation occur when it reduces the efficiency of investments within the country, measures can be taken to ensure that the negative outcomes are addressed accordingly and that strong economic growth is maintained.

            A close comparison of Kuwait’s GDP and CPI reveals that there is a negative relationship between the country’s economic growth and inflation rates. The discovery has important policy implications for policy makers within the country as they are pushed to find a way to lower the inflation rates within the country and make it stable enough to promote economic growth within the country (OBG, 2008). To begin with, the country does not index inflation rates for wages and salaries, the cost of living and people’s purchasing power is likely to increase if the inflation rates continue to rise. Furthermore, the monetary authority in the country has a hard time adjusting nominal interest rates above the actual interest rates using contractionary monetary policy due to the challenges faced when trying to balance the credit requirements from the public and private sectors in the country (Chapter 14). The monetary authority in Kuwait must therefore find a way to lower the inflation if it is to live up to what citizens and stakeholders expect from the country in terms of economic growth.

Part B

            Inflation and unemployment are some of the major challenges that a country faces and with the high inflation rates in Kuwait, the government is tasked with the decision of what policies can be implemented to resolve the inflation issue in the country. Since high inflation can also result in high unemployment, the government’s commitment to lower inflation is likely to resolve issues related to unemployment as well as promote economic growth (IMF, 2012). Since inflation results in an increase in the price of commodities within the country, the Philips curve can greatly assist in finding ways to lower Kuwait’s inflation. If, for example the unemployment rate is estimated to be 3 percent and an unemployment rate of 9 percent, increasing the inflation rate to 6 percent is likely to lower the unemployment rate to 5 percent and in doing so, create job opportunities that not only lowers unemployment rates but also boosts economic growth as employees with a salary are more likely to purchase goods and services from within the country (Saaed, 2007). However, while the Philips curve was useful in lowering inflation in the past, it has been replaced with more effective and efficient alternative methods such as the Demand Pull inflation approach.

            The Demand Pull Inflation results from growth in a country’s aggregate demand which often grows when money supplied by the government or government expenditure increases. This is especially because the price of commodities increases once the government increases its expenditure (Saaed, 2007). If prices are raised but the wages paid to workers remain the same, firms are pushed to hire more workers and in so doing, reduces the level of employment in the country. However, creating employment does not solve the problem experienced in the country because the wages paid are unable to meet the requirements needed to purchase goods and services especially with the increased prices by the government and this greatly contributes to the high inflation rates in the country.

Part C

            Policy makers could learn a lot from the impact that inflation has on the economic growth of a country. Instead of raising prices, they could come up with policies that help Kuwait to target international markets so as to create demand for its products on an international level and boost the economy (Espinoza, 2018). To achieve this, the policy makers must first identify its absolute advantage so as to determine which goods and services should be sold in the international markets. Absolute advantage involves producing goods in one country and selling them to another because the country producing them produces more units per resource used therefore reducing the cost of production.

            Policy makers can also take advantage of the international markets by exploiting the country’s comparative advantage. The advantage is brought about by either technological developments or endowments such as labor or other resources that may be found in abundance in one country but scarce in another (Saaed, 2007). In the case of Kuwait, endowments like oils, mineral fuels and chemicals place the country at an advantage in the international market. The strong manufacturing sector in the country further ensures that the country can greatly benefit from its comparative advantage if only it was able to fully utilize the opportunities in the international market.

            Other than implementing new policies to try and lower inflation, the country can also improve the policies that are already in place such as the tariffs and quotas that have already been implemented. In an attempt to raise government revenue, the country introduced taxations on trade through quotas and import tariffs. Since the country has a lot of products doing well on the international market, imposing tariffs on imported goods help raise capital as well as boosting the economy through trade (Saaed, 2007). Quotas also have the same impact as they push importers to get licenses which limit the number of imports in the country and in so doing, promotes local goods and services.

Conclusion

            The high inflation in Kuwait has caused great challenges in the country especially when it comes to achieving the desired economic growth. Since inflation tends to raise the cost of prices and may at the same time lower, or fail to increase wages, citizens are forced to live in a country where they don’t earn enough yet commodity prices keep rising. If Kuwait is to overcome these challenges, it must first understand the impact that inflation has on things like wages, prices and the growth of the economy. Policy makers should also identify areas such as the international market that offers opportunities to boost economic development especially with the country’s endowments. If well implemented, the policies could help in reducing the inflation in Kuwait and at the same time boost the economy to ensure that such occurrences do not keep reoccurring and that the country maintains a stable economy.

References

Espinonza R, (2018) ESTIMATING THE INFLATIONGROWTH NEXUSA SMOOTH       TRANSITION MODEL. S.l.: INTERNATIONAL MONETARY FUND.

International Monetary Fund,. (2012). Kuwait: Staff Report for       the 2012 Article IV Consultation. Washington, D.C: International Monetary Fund.

Oxford Business Group. (2008). The Report: Kuwait 2008. London: Oxford Business Group.

Saaed, A.A.J., (2007). "Inflation and Economic Growth in Kuwait: 1985-2005. Evidence from     Co-Integration and Error Correction Model," Applied Econometrics and International             Development, Euro-American Association of Economic Development, vol. 7(1).

                         Florida Power and Light (FPL) is regarded as being one of the business organizations that are legally authorized to generate, supply, and sell electricity to thousands of Miamians. This company was incorporated in the late 1925 and then managed to replace the Miami Beach Electric Company by the year 1926. In the late 1926, the power lines were by hurricanes in the year 1926, but FPL managed to repair them as well as building other new generating plant hence increasing its customer base. As a result of that, the company was made an independent public corporation by the American Power and Light (United States Federal Aviation Administration. (2008). 

            Nevertheless, being a regulated utility company, it has been realized that the company have not yet had the potential of utilizing the ratepayers’ funded assets for the purpose of improving the services they offer to them. The reason for that is because such services are the ones that have the possibility of lowering prices, sustaining them as well as recovering efforts in storms (Lynne, 2008). Ideally, the decisions that the company formulates are entirely aimed at maintaining their monopoly, compensates lobbyists, limit competition, and exert extensive political influences which will in return maximize corporate profits. For instance, the company has been widely accused of collaborating with political organizations and state politicians to aid it reject laws that could have made it easier for business owners and other community members to adopt rooftop solar. The idea behind this is to maintain its monopolistic powers (Plant, 2000). 

            Conversely, in order to be in the position of expanding the profit margin, the company have moved its operating activities into energy services through buying private contractor as well as engaging in providing other services such as electrical, heating, air conditioning, and plumbing to commercial and residential property owners. Despite that, the managed authority of this company have also considered utilizing ratepayers’ assets and funds from its regulated utility for the purpose of establishing new and better electricity generating strategies. Consequently, by using leveraging the company’s resources as well as other predatory pricing mechanisms, the idea entails decimating other contractors and small business owners who have had the potential of offering those services locally (Oyola & Florida International University, 2000). In the process of forcing them out of their industry, it implies that the company will continue holding a monopoly position, escalating prices, as well as destroying the prevailing competition.

            On the other hand, the company has managed to come up with various decisions that some have been noted to be frustrating its potential customers. For instance, it management authority decided to hike its rates for no good reason, degrading the environment as well as actively tricking voters to the extent of backing false anti-solar amendment (Shimon & Alistair, 2012). Despite that, is believed that such a scenario will come to an end because the main objective of the majority of the scorned clients is to ensure that such a utility company has really annoyed them. The reason for that is because in case the company will be permitted to continue using their assets, power, and other regulated monopoly status to unlawfully and unfairly control new industries, it means that other utilities be forced to follow their bogus competition, decimating jobs, and consumer choices (Plant, 2000). 

            Economic research indicates that having access to each individual household with potential customer information will necessitate understanding the equipment that they use how to repair or replace them, and so on. Such information is what the FPL Company has been using for the purpose of marketing the products and/or services they offer aggressively (Lynne, 2008). Therefore, as one of the standardized, ratepayers’ funded utility, the company has managed to have direct access to day-to-day customer information. In return, its management authority is using the same data for the purpose of emailing and marketing their customers. Additionally, this has improved the capacity of the company in utilizing its utility billing systems for the purpose of aggressively marketing new services to potential residents who requires them (Plant, 2000). 

            As a result of that, it is evident that the company ultimately understands the equipment and services the targeted potential customers uses which in return enables it to design its marketing strategies that discourages competition. This implies that such a fear based marketing strategies are undesirable because they end up wasting ratepayers’ resources for the purpose of obtaining new customers (Shimon & Alistair, 2012). Ideally, such an objective the company uses will ultimately exchange the prevailing utility bills. On the same note, it means that the sequential cut-pricing is one thing, but with the extensive FPL monopoly infrastructure, it is important to break them into monthly billing (Lynne, 2008). This is because it has been realized that local contractors do not have the ability of coming up with the same strategy. The main reason is that they do not have the ability of controlling such a monopoly have the potential of resourcing customer information as well as generating multiple customer monthly invoices from their customer care centers. Despite that, it is evident that a large percentage of the FPL resources are mainly used for the purpose of subsidizing payment and benefits (Oyola & Florida International University, 2000).

                                                            References

 Lynne, L. K. (2008). Deregulation, Innovation and Market Liberalization: Electricity Regulation in a Continually Evolving Environment: Routledge Studies in Business Organizations and Networks. Routledge Press

Oyola-Yemaiel, A., & Florida International University. (2000). Towards the formation of a sustainable South Florida: An analysis of conflict resolution and consensus building in the South Florida Ecosystem Restoration Initiative. U.S: Dissertation.com.

Plant, R. T. (2000). Ecommerce: Formulation of strategy. Upper Saddle River, NJ: Financial Times/Prentice Hall.

Shimon, A & Alistair, P. (2012). The Virtual Utility: Accounting, Technology & Competitive Aspects of the Emerging Industry: Volume 26 of Topics in Regulatory Economics and Policy. Springer Science & Business Media

United States. Federal Aviation Administration. (2008). Fort Lauderdale Hollywood:  Environmental Impact Statement, United States. Federal Aviation Administration. Northwestern University Press

                             Supply, Demand, and Market Equilibrium

    The demand and the supply of a commodity are the two main factors that have the responsibility of enabling the management authority of a company to understand the market conditions. On the other hand, the price elasticity of demand or supply of a product is basically the desire and willingness of the consumers to pay a price for the goods or services offered. It implies that the price of the commodity and the quantity demanded have both a positive and a negative relationship. In this concept, it implies that a large percentage of the iPhone to be having a higher potential to enjoy the services offered by these products as compared to average consumer budget (McEachern, 2012).  Various factors such as product hype, highly devoted customer base, and so on, have been noted to have the ability of contributing to inelastic demand for the company.

                To begin with, consumers’ income as well as the amount that they are willing to spend on iphones manufactured by company affects the price elasticity of demand. It implies that the amount that potential clients end up spending affects its equilibrium price. For instance, in case the price of the iphones manufactured by the Apple Company increases with no increase in consumers’ income, demand will decrease. Consequently, in case consumers will not have enough time to adjust their demand behavior, the price elasticity of supply or demand of the company will be huge over a long period (Besanko eta al., 2011). 

    The availability of substitutes is another crucial factor that has been noted to have the potential of influencing the demand of Apple Company. Generally, with more substitutes from other rivals in the industry, it means that the supply or demand for iPhones from the company will be inelastic. Despite that, the uniqueness of the products that the company manufactures is the one that makes its price elasticity of demand or supply to be inelastic (Charles et al., 2010).

    Nevertheless, because of consumers’ requests, it is possible to experience the demand for iPhone increasing with time. Therefore, when it comes to supply, obvious it is the price elasticity of supply that will aid in measuring the relationship that exist between change in price and change in the quantity supplied. Such a nonprime factor will of course have the potential of switching the time required for customers to react to changes in price of iPhone (Marshall, 2009). As a result of that, it implies that any full adjustment of supply, demand, and price to a disequilibrium situation may not be instantaneous.  The management authority of the Apple Company should, therefore, have the ability of analyzing the time path that the supply of its products takes in order to respond to demand and vice versa.

    According to economics, the actions that consumers take are ultimately influenced by their expectations. In determining their economic behaviors, it is important for the management authority to anticipate what might happen in the near future so as to manage their price elasticity of demand and supply (Gillespie, 2007). Analyzing potential customer competitors, sales and purchasing power, customer satisfaction, and so on enhances the market equilibrium for the company’s products. In return, the costs incurred when switching between various carriers as well as the relatively high price of iPhones have also been noted to have the ability of dissuading first time potential buyers from purchasing those gadgets. In the long run, there will be an increase in market elasticity. Nonetheless, the Apple Company is still continuing to offer attractive prices for their products (McEachern, 2012). To be in the position of building a battle of price, it is important for the company to ensure that their pricing strategies are consistent with the strategic objectives of its establishment.

                                                    References

Besanko, D., Braeutigam, R. R., & Gibbs, M. (2011). Microeconomics. Hoboken, NJ: John Wiley.

Charles, W. L, Joe F.H, & Carl, M. (2010). Marketing. Cengage Learning Press

Gillespie, A. (2007). Foundations of economics. Oxford: Oxford Univ. Press.

Marshall, A. (2009). Principles of economics. New York: Cosimo.

McEachern, W. A. (2012). Economics: A contemporary introduction. Mason, OH: South-Western Cengage Learning.

Question 1

Marginal cost must increase if the marginal product of the marginal resource decreases, this is because diminishing then raising marginal expenditures, represented by a U shaped curve results from an increment in declining marginal revenues (Baumol, & Blinder, 2015). Specifically, the declining marginal revenues occur due to the principle of diminishing marginal revenues. Therefore, the principle of declining marginal earnings impacts both the immediate manufacturing productions of a business entity and the gradual manufacture operations.

The connection between marginal cost and marginal product lies in the valuable production of additional items (Baumol, & Blinder, 2015). The marginal products fluctuate based on the amount of items a firm is currently manufacturing. The marginal product of work takes place when a firm hires more workers to meet the additional products.

2

 Productivity efficiency

Refers to a description that captures productivity verses efficiency and as a result bringing out quantity and quality (McConnell et.al, 2009). A productive corporate gives vital output although returns may take a negative toll if the quality of the item is poor or the demand for the product is low. In most cases, productivity and efficiency need meticulous planning from the managers’ side.

Efficiency entails comparing items manufactured or performance with amount a firm can produce without increasing resources. In other words, efficiency safeguards an industry from wastage (McConnell et.al, 2009). Depending on the organization, stakeholders prefer efficiency to productivity. However, their useful varies in terms of the situation.

 Allocative efficiency

Refers to the level of production where the value of an item or service is equal to marginal expenditures of manufacturing (McConnell et.al, 2009). Allocative efficiency occurs after a service or item achieves an ideal distribution protocols and when marginal expenditures and marginal functions are at par hence allocative efficiency.

References

Baumol, W. J., & Blinder, A. S. (2015). Microeconomics: Principles and policy. Nelson Education.

McConnell, C. R., Brue, S. L., & Flynn, S. M. (2009). Economics: Principles, problems, and policies. Boston McGraw-Hill/Irwin.

 What are the Factors that Affect Leadership Practice in a Globalised Economy?

Introduction

Leadership in a globalised economy requires the leaders or managers to understand and handle challenges arising from diversity and differences in markets. The leadership approach or style adopted by the leader is affected by the prevailing business environment and economic conditions, political conditions, and social dynamics. These factors require the leaders to acquaint themselves with specific aspects that are likely to affect the operations of their organisations in certain countries. The successful global leader understands that followers or employees have to be comfortable with cultures of countries in which they are working, and influence them to be productive in such conditions. Leadership in a globalised economy is affected by a range of factors that determines the leadership style to be adopted and the success of the approach in ensuring that goals and objectives of the organisations are achieved.

Leadership involves a process whereby a person influences others to attain a common goal or objective. Leadership has been considered as a major aspect in effective performance of organizations, and is being promoted in place of management on the basis that leaders are able to achieve more than managers (Schedlitzki & Edwards, 2014).  With many organisations choose to expand their operations into international markets, a huge responsibility is placed on leaders to provide guidance and make decisions that will ensure the achievement of the set goals and objectives. However, globalisation has appeared to overwhelm many organizations and their leaders due to the fast pace of growth into international market. In a globalised market, leaders have to handle and understand varying societies across the globe where competition is increasing, and new challenges are emerging every day.

Due to globalisation, the business environment has increasingly become fluid and complicated due to various issues that affect the operations and success of organisations in the international market. The nature of the globalised economy has brought about new and complicated issues that have far-reaching effects on the decision making process by leaders in organisations (Northouse, 2016). The high rate of change in technology, stakeholder’s awareness, and regulations require that leaders to overlook some conventional leadership theories in order to be relevant and succeed in the global arena.  In order to leader others in such turbulent times, the leader must have qualities that will enable him to influence employees or peers from varying background, and who are working in different conditions (Northouse, 2016). The factors that are likely to affect leaders of organisations operating in such an environment include economic, business, and political conditions, and social-cultural dynamics

Business Conditions

The effects of globalisation have brought about increased study on the various perspectives of the environment in which business operations of organisations are located. The effects are mostly felt by multinationals or transnational organisations, and the studies have held universal views of the impact of the aforesaid factors. The results of the studies affect the process of decision making, development of alternative solutions, and the implementation plans for the best courses of action (John & Chattopadhyay, 2015).  Hence, leaders’ perspective and practices, and resulting strategies that are relevant for specific a business environment will be inapplicable in another environment. In one economy, organisation’s leaders may be praised for increasing the value of shareholder by way of effective global supply, but in another country, the organisation may encounter huge criticism and attack due to human costs associated with shutting down factory in the local environment. Hence, integrity is an important leadership trait I a globalised economy. Integrity involves ethical and honest behaviors that enable leaders to build trustworthy relationships in a global economy that is knowledge-based (Robbin et al. 2014). Leaders with integrity will create good relationships with shareholders and the society in which their organisations operate.

With constant changing facets of globalisation, organizational leaders should to reconsider their assumptions about the strategies to employ in different past of the world.  This situation calls for more than just knowledge of the prevailing business conditions, and come up with strategies that will help the organisation’s leader to achieve the set goals and objectives. In order to successfully deal with these challenges and changes, the leader has to self- equip with analysed information about their local conditions (John & Chattopadhyay, 2015). Leaders tend to develop strategies that fit an environment since such strategies can be used for many years but changes in the environment determine the success or failure depending on the choice of strategy. Leadership has to consider the external forces that have an impact on the operations or functioning of an organization (John & Chattopadhyay, 2015). Moreover, leaders have to intentionally make varying decisions or choose various set of activities that will ensure the organisation gains competitive advantage in the prevailing business environment. The nature of the prevailing conditions will determine the strategies to be adopted and implement by the leader of an organisation.

Economic Conditions

 The economic connections among different countries and the impact of global crisis have emerged as conditions that organizational leaders should consider in the decision making process. The  prevailing economic conditions are determined by the labor and industrial practices, role of Non-Governmental Organisations , and trade policies have be incorporated in decision making and strategy formulation. Different countries have different economic conditions, and they influence the approach the leader takes in specific countries (Knights  & McCabe, 2015). Since the 2008 financial crisis, there has been a wide discrediting of practices of organizational leaders and managers, which has given rise to new thinking about the leadership of companies within financial-services and their related business (Knights  & McCabe, 2015). The crisis precipitated a call for new business values and norms championed by industry leaders including changes in governance and management structures. Hence, global economic crisis will majorly be attributed to a leadership problem or challenge since executives are expected their employees focused towards finding internal and external solutions. The leaders are faced with two unique challenges which include keeping their organisations on the right path in amidst a weak global economy and maintaining the functionality of the firm until the economy improves (Knights & McCabe, 2015). The decisions made and strategies adopted by leaders will be focused on keeping their business organisations together, as a short-term approach, while developing and implementing plans for long-term sustenance (Knights & McCabe, 2015). The leadership practices of the organisation will be influenced by the need to contain the situation and keep the business operations afloat in an uncertain global economy.

During economic crisis, the leader of an organisation is expected to engage the employees and stakeholders regarding the way forward. A bad global economy is a test for the leader, and the organisation’s culture that he or she helps create (Maak & Pless, 2009). When the global economy is good, consumer demand may hide the gaps in productivity caused by leader’s disengagement from the operations. But when the global economy is in crisis, the performance problems caused by disengagements cannot be hidden. The leader has to rise to the occasion and come up with ways of mitigating losses and even closure of business operations. The leader has to engage the employees to be positive and influence their reactions towards global crisis so that the operations and performance of organisations does not falter due to uncertainty over job losses and future personal career direction (Maak & Pless, 2009). The leader has to ensure that employees remain committed to the improving performance and helping the organisation to wither the effect of crisis. The above abilities summarize the qualities of participative leadership style. Participative leadership involves using an approach that is centered on both people and work, and allows followers to be part of decision making (Saee, 2005). In difficult economic conditions, the leader allows followers to take part in decision making and problem solving.

 The global economic crisis and related changes can also lead doubt to the strategies employed in an organisation. The challenge can make stakeholders including employees and shareholders to lose confidence in the current leadership style. The lack of confidence can be caused by failed expectations, especially when the effects are rapid and severe (Maak & Pless, 2009). The leadership practices can easily be discredited and options sought to replace them. The impact can be felt at the level of board of directors, and driven by fear of being exposed the leaders can easily change their behavior. The directors will want to have more informed about corporate risks and practices, and information to substantiate the more dimensions of organisation’s performance (Maak & Pless, 2009). With increased risks in a globalised economy, leaders may feel that their positions are not safe. The result will be increased demand for increased performance from staff, while reviewing intensively the areas that have conventionally been left to junior management. Moreover, crisis will make leaders at the board level to reconsider structures of corporate governance, adjust composition of teams and review the qualifications of the individuals occupying management positions (Maak & Pless, 2009). Due to economic crisis at the global level, top corporate leaders will strive to align leadership structures and methods to the current requirements in the market.

Political Conditions

The effect of regulatory policies adopted by government on business and organizational leadership cannot go unnoticed. Politics in different countries around influence business operations in the global market. Fiscal policies including taxes and interest rates, and inter-country agreements affect the manner in which businesses have to operate in the global market. Leaders have to recognize the role of politics in businesses, and align their strategies to specific political environment of country they are operating in.

Also, leaders have to develop strategies that they can use in evaluating the interaction between their organisations and governments. The multinational firms may operate in volatile political environments, and corporate leaders may be forced to ignore some values or leadership principles due to the influence of political leaders. Managers may have to submit to the demand and wishes of political leaders so that their firms can operate peacefully in the hostile countries. The scenario calls for leaders who are intelligent and self-confident, which are important leadership traits in a globalised economy. Intelligence involves the cognitive capacity for critical thinking, solving problems, and making the right decisions. Self-confidence involves being sure of one’s decisions and capabilities, and fostering confidence among the employees in an organisation (Robbin et al. 2014). Intelligent and confident leaders are required in a globalised economy for formulate strategies that will withstand the political conditions of specific countries.

Cultural Dynamics

Culture can influence most of the aspects that relate to leadership especially at the global level, including the right management practices, compensation expectations, engagement of employees, and work/life balance.  Culture refers to people’s way of doing things and involves a set of values and rules, and habits (Paramova, & Blumberg, 2017).  National cultures influence organisational cultures, and increased globalisation has placed the issue of national culture at the forefront of agenda of businesses with operations in foreign countries. A major implication for business organisational leaders in the international concept involves the need to understand and respect cultural differences, and various cultural perspectives (Paramova, & Blumberg, 2017). If the operations of the organisation are contracted to another organisation abroad, leaders for each organisation have to acquire some cultural cognizance to forestall and understand each other’s reaction. Culture is made of certain norms comprising of beliefs and values, and all these can be found in all countries, and the ethnic, regional or religious culture lead to the differences among counties. In some regions or countries, cultural groups go beyond political borders of a country (Nazari et al.2012).  Hence, a global leader has to be sensitive to the cultural differences, understand and appreciate the people’s differences, and try to allow for such aspect during communication with representatives of the specific cultural groups.  

The diversity of culture in a globalised economy requires a leadership styles that allows enough flexibility. Hence, contingency leadership is very crucial in such an economy. The contingency leadership enables leaders operation’s to be successful in environments with multicultural backgrounds or experiences (Robbin et al. 2014).  Flexibility entails the capacity to comfortably adjust to varying situations, and a leader should adapt to the constantly changing business environment (Robbin et al. 2014). The leader of an organisation with a global presence should be able to adapt to the different cultural backgrounds of employees and his or her peer managers.   

The global cultural differences also influence the lifestyles of people that managers lead in their organisations.  The variances in cultural lifestyle may be understood from various cultural dimensions including individualism, equality levels power distance in a society, uncertainty avoidance, masculinity, and long-term orientation (Ozdemir, 2010). These cultural dimensions apply differently in different cultures across the world, and determine the leadership style that fit certain organisations in a globalised economy. Also, knowing the similarities along the cultural dimensions enables the leaders to group regions and countries, and chose the appropriate national and regional marketing approach or business programmes (Ozdemir, 2010). The leader needs cultural knowledge to gain insight into the best way to influence organisational culture, and influence people with different cultural backgrounds. Moreover, companies’ subsidiaries, divisions, organisational departments, and specializations are occupied by individuals with subcultures, and they can enhance or undermine the communications and achievement of set goals (Ozdemir, 2010). Successful leaders have to be adopt a leadership style that transcends all the subcultural differences, bring harmony, and ensure that goals and objectives are achieved across board.

The cultural differences affect the management approach organisations’ leaders   do adopt to ensure employees’ individual development in line with organisation goals. As managers, leaders wishing to know how to be intercultural successful managers should learn how to handle cultures. The leaders have to embark on culture training, which will allow them to provide followers or employees with necessary information when they have to work in new cultures (Ozdemir, 2010). The leaders have to guide the followers through various experiences, and assist them in development of a set of skills that will enable them deal handle new cultures. Approaches to culture general lean towards experiential in nature, and aims at equipping individuals with broad experiences almost similar to the kinds of experiences they may face when interacting with people from different cultures. Leaders will find that training is important for the right influence to be felt in their organisations. The leadership approach will have to integrate culture training to ensure their business transit smoothly towards becoming an actual global organisation irrespective of whether it is a small or large firm or sole proprietorship (Ozdemir, 2010). The leader and his followers will be able to enhance their all-round capacity and capability in an increasingly globalised economy.

Organisational culture starts with leaders who impose personal assumptions and values on employees or teams. If the team succeeds and the assumptions are not taken seriously, there emerges a culture that that determines for future members of the team or organisation the acceptable type of leadership. Previously, it has been assumed that differences in cultures presented barriers to effective interaction and communication in a global setting (Ozdemir, 2010).  Presently, successful global leaders perceive cultural differences as resources but not barriers if handled well. The global leaders are forced to recognize the cultural recipe and their degree of malleability, identify the recipe’s characteristics and its layers, and determine the appropriateness of the recipe for the needed global strategy. The leaders have to embrace transformational skills and values to establish the right organisational culture (Ozdemir, 2010). One culture is also distinguished from another by certain solutions it choses for a specific problem that is seen as a dilemma.

In the global economy, some markets are similar mostly because of the many attributes that help in keeping the culture together including ethnicity, language, religious beliefs, location, and the degree of economic growth or development. In such markets, leaders may have to employ common styles of leadership or management to ensure the success of organisation’s operations (Ozdemir, 2010). The global leader must have the abilities and skills to learn the differences in different cultures, lead and manage people with diverse cultural backgrounds. The leaders have to employ the right leadership style that will ensure employees in global corporation are comfortable working in a diverse environment and motivate them to perform amidst the arising challenges. The leader is required to learn and acquire intercultural communication skills that will endear him to others who are looking up to him for direction and decision making.

Conclusion

Leadership in a globalised economy is affected by the business, economic, and political conditions prevailing in specific countries. The underlying factors influence the leadership style to be adopted and the impact of leadership in ensuring organisations succeed in their endeavors. For international corporations or multinationals, leaders have to understand the economic conditions and business environment, and make decision and develop strategies that suit the specific markets. The leaders have to align the organisations’ operations to the countries rules and regulations established. The cultural dynamics requires the leader to understand the culture diversity that will affect organisation culture, and how to lead a diverse team of employees.

References

John, S., & Chattopadhyay, P. (2015). Factors Impacting Leadership Effectiveness: A Literature Review. Arabian Journal of Business and Management Review, 6(6), 1-5.

Knights, D., & McCabe, D. (2015). ‘Masters of the Universe’: Demystifying leadership in the context of the 2008 global financial crisis. British Journal of Management, 26(2), 197-210.

Maak, T., & Pless, N. M. (2009). Business leaders as citizens of the world. Advancing humanism on a global scale. Journal of Business Ethics, 88(3), 537-550.

Nazari, K., Savar, N., Emami, M., Rezagholiyan, Z., & Soltani, H. (2012). Analysis of Leadership Styles in Different Cultures. Retrieved from: https://pdfs.semanticscholar.org/075e/ba94d21bdd80d42bd5c43c5373096726f96b.pdf

Northouse, P. G. (2016). Leadership: Theory and practice 7th Ed. Sage publications.439-446

Ozdemir, O. (2010). The impacts of different cultures on leadership effectiveness. Retrieved from: https://core.ac.uk/download/pdf/364802.pdf

Paramova, P., & Blumberg, H. (2017). Cross-Cultural Variation in Political Leadership Styles. Europe's journal of psychology, 13(4), 749.

Robbins, S., Bergman, R., Stagg, I., & Coulter, M. (2014). Management VS. Sydney: Pearson Education Australia. pp.653-680

Saee, J. (2005). Effecitve leadership for the global economy in the 21ST century. Journal of business economics and management, 6(1), 3-11.

Schedlitzki, D., & Edwards, G. (2014). Studying leadership: Traditional and critical approaches. Sage.  162-188

Managed care

Response 1

 Should Government be involved in health insurance? Yes or No-be sure to state your reason why?

Response

My personal viewpoints do not interweave with your perspective. You support the single payer system and argue that government involvement in healthcare will increase health care costs. According to my outlook, I believe that the government should regulate health insurance because it is responsible for implementing quality measure and standards designed to improve quality care and eliminate bad care (Troy, 2015).  The government will also shape the insurance industry, prevent disease and promote health by regulating the insurance premiums and bringing innovative products and technology such as ways of practicing medicine (Troy, 2015).  In addition, the uninsured individuals due to lack of unemployment will access health care from government-funded healthcare.

 Are these public government programs as “good as” the commercial programs-why or why not?

Response

I agree with your opinion that the public government programs are as good as the commercial programs. The programs such as Medicare, Medicaid, and others offer health care services to majority of the Americans including the older persons, the disabled persons, people from low-income families, military personnel, among others (Billas, 2012).  These programs are effective because they reduce illness, improve well-being, safety, and quality care.  Commercial programs also offer similar services since they offer preventive services such as routine immunization, counseling, and covers the costs of medications.

Response 2

Should Government be involved in health insurance? Yes or No-be sure to state your reason why?

Response

I agree with your opinion that the government plays a significant role in healthcare insurance.  When the government regulates health care, it promotes positive externalities whereas the private market would produce negative externalities (Troy, 2015).  For example, the government ensures that everyone including the underprivileged has access to quality care, it also provides public resources for quality health, it increases welfare and promotes equity, as well as consumer satisfaction.   In addition, the government is responsible in controlling diseases, it implements new scientific information, reduces poverty, improves efficiency and more importantly, it regulates the health care markets in terms of costs, quality and offers valuable guidance (Troy, 2015).

Are these public government programs as “good as” the commercial programs-why or why not?

Response

I agree with the opinion that the public government programs are not only as good as the commercial programs but they are also better than. Unlike the commercial programs where the   insured pay hundreds of dollars in monthly basis and receive limited coverage, public government programs offer quality services to all conditions and eliminate inequality (Billas, 2012).  Government programs also ensure a well-run health system, availability of medicines and technology, well-trained physicians, and quality, superior and efficient care at a low cost.

References

Troy, T. D. (2015). How the government as a payer shapes the health care marketplace. American Health

Policy Institute. Retrieved from;  http://www.americanhealthpolicy.org/Content/documents/resources/Government_as_Payer_12012015.pd

Billas, M. (2012). The Evolution of Health Insurance in America: A Look at the Past, Present, and Future

of an Increasingly Dynamic Industry. Honors Scholar Theses.  Retrieved from:

https://opencommons.uconn.edu/cgi/viewcontent.cgi?referer=https://www.google.com/&h

ttpsredir=1&article=1236&context=srhonors_theses

                                     MACROECONOMICS SPRING ESSAY

Question 1

            The Great Recession of 2007-2009 mainly started with the bursting of an eight trillion housing dollar bubble. During this time, the economy mainly depended on the housing bubble. Unfortunately, the collapse of the housing bubble, especially the residential construction, is what made it to decrease by 4 percent. Furthermore, consumer consumption and the gross domestic product (GDP) facilitated by the housing bubble also decreased sharply (Congdon, 2017).  This, therefore, developed a great gap in yearly demand (GDP) of almost 1 trillion US dollars. As a result of that, the government was not ready to revive the private sectors’ shortfall.

1. a) The housing bubble_ As a result of that, the loss of individual wealth ended up inducing sharp cutbacks in customer spending. Thus, the progressive decline in consumer expenditure, combined with economic market turmoil brought by the housing bubble, is what resulted into the collapse of business investments. Furthermore, as a result of the decline of business investment and consumer spending, there was a massive loss of jobs.
2. b) The shadow banking system_ another cause of the Great Recession was the existence of equal bank run on the shadow banking system that incorporated investment financial institutions as well as other non-depository monetary entities. The reason for that is because it was noted that the shadow banking system had managed to grow to the extent of escalating rivalry existed with the depository system in scale, despite the fact that it was not subjected to similar regulatory safeguards.
3. c) Government policies_ the failure of the government to have the potential of regulating non-depository banking is also another factor that ended up encouraging residential ownership even to those individuals who could not have afforded them. This in return contributed to sloppy lending systems, indebtedness, and unstable residential price increase.
4. d) Financial turmoil_ the financial chaos of the year 2007-2009 also lead to a sharp increase in demand for money, something termed as precautionary hoarding. As a result of that, it ended up triggering a resultant decrease in the demand for commodities (Congdon, 2017).
5. e) The high record levels of the existing household debts extensively accumulated as compared to previous years hence resulting into a balance sheet recession. Consumers were forced to pay down debts, which in return reduced their consumption rate. Because of that, it ended up slowing down economic growth for decades although consumers’ debt levels were decreased sharply.

Question 2

            Considering the data collected regarding recessions, the significance of it is that it forced policymakers and economists to re-think about their basic understanding of macroeconomics for the years to come. For instance, the unique standing of the recession of 2007-2009 can be ultimately attributed to length, severity, as well as the extent to which the economy ended up weakening its magnitude (Gross Domestic Product, 2019). Moreover, despite that fact that recessions are always defined principally in terms of the real gross domestic product (GDP), the data collected suggests that the number of individuals in such an economy is one of the accessible measures of the harshness of economic downturns (Gross Domestic Product, 2019). As a result of that, such information is also used in measuring the public perception about the economy.

            Another significance of this data is that economists use it for the purpose of curing inflation. From the economic point of view, the Federal Reserve is always forced to ensure that they have slowed down the economy to appoint of preventing inflation without stimulating recession. In most cases, the information collected assist economists in understanding how various fiscal policies are used to regulate or stabilize the economy. On the same note, such an information assists in understanding how politicians, who have the mandate of controlling federal budget, tries to trigger their economy through ignoring budget deficit, expenditure on community programs, and lowering taxes (James, 2010).

Question 3

Economically, the gross domestic product is computed as;

                         Enterprise investment + consumer spending + government                                                spending + (exports – imports)

                                    = I + C + G (X-M)

During the start of the recession (2007), the GDP and the employment rate obtained was 14,208.569 billion dollars. By the end of the year, the GDP and employment rate obtained was 14,681.501 billion dollars. This implies that by the end of 2007, the change in GDP was;

                                    = (14,208.569 -14,681.501) billion dollars

                                    = 472.932 billion dollars                          decrease

At the start of the recession 2008, the GDP and the employment rate obtained was 14,651.039 billion dollars. By the end of the year, the GDP and employment rate obtained was 14,559.543 billion dollars. This implies that by the end of 2008, the change in GDP was;

                                                = (14,651.039 -14,559.543) billion dollars

                                                = 91.496 billion dollars                                           decrease

At the start of the recession 2009, the GDP and the employment rate obtained was 14,394.547 billion dollars. By the end of the year, the GDP obtained was 14,628.021 billion dollars. This implies that by the end of 2008, the change in GDP was;

                                                = (14,394.547 -14,628.021) billion dollars

                                                = -233.474 billion dollars                             slight increase

Considering the above trend, it implies that from 2007 to 2009, the recession was rising steadily (Gross Domestic Product, 2019).

Question 4

            The monetary policy that has the potential of lowering interest rates as well as stimulating borrowing is termed as being a loose financial policy or expansionary financial policy. Additionally, a financial policy that has the ability of raising interest rates as well as reducing money borrowing in the economy is regarded as being a tight financial policy or contractionary financial policy. Taking into account this explanation, it implies that the existing monetary policies at that time had many guises. Regardless of that, the truth is that it has the ability of adjusting the general supply of money in the economy so as to be in the position of achieving output stabilization and some combination of inflation (Gross Domestic Product, 2019).  

            Nevertheless, a large percentage of economists approve that in the long run, the GDP (gross domestic product) is the one that have the ability of changing the supply of money in the economy. Regardless of that, in the short run, salaries, wages, and prices of commodities do not have the capacity adjusting immediately. The reason for that is because the supply for money ultimately has the ability of impacting the actual manufacture of goods and services. This is what makes the monetary policy used to be a reasonable tool for realizing the economic and inflation objectives (Gross Domestic Product, 2019).

            As inflation gets adjusted, interest rates are in return enhanced by the decline in business production. This is because of the decrease in consumer spending which is coupled with the laying off of employees by the money lending institutions as well as the need of stopping investing in the new economy. This then implies that the increasing demand coupled with the general decrease in the money lending interest rates is what monetary rates tries to adjust so as to stabilize the economy (Claessens & International Monetary Fund, 2014).

            Economists suggest that the continued fluctuations in interest rates do not have a standardized effect on the existing economy. The reason for that is because some sectors of the economy become more affected as compared to other in the same industry. Ideally, some business organizations have the ability of adjusting quickly with changes in interest rates (Mian & Sufi, 2014).

Question 5

            Fiscal or monetary policies are some of the tools used by the government to control the economy.  These tools mainly take into account government expenditure as well as levied taxes. Usually, a policy is perceived as being expansionary in case taxes are lower or when expenditure increases. Furthermore, when fiscal policy is termed as being contractionary, it means that it has the ability of decreasing or increasing taxes. Therefore, in this case, expansionary fiscal policy is the one which is perceived to have the ability of inducing high budget deficits (Claessens & International Monetary Fund, 2014). This implies that the government can obtain surpluses when it incurs more expenditure as compared to taxes or operates on deficit when its expenditure is more than the taxes levied. 

            Nevertheless, the government can have the potential of spending beyond the tax they levy through borrowing some funds from other private sectors. For instance, it is such a scenario which forces the United States Government to issue Treasury Bonds for the purpose of raising funds. As a debtor, in order to be in the position of meeting its future commitments, the state will have no option other than cutting its expenditure, increasing tax receipts, or seek additional funds from external lenders (Mian & Sufi, 2014).

Question 6

            Considering the recession of 2007-2009, it implies that the pending policies and the federal tax always have significant impacts on an economy. The reason for that is because it is those economic impacts that have the ability of affecting the national budget. One of the things that economists need to understand is that such monetary policies always have different impacts on the economy both in the long run and the short run.  The reason for that is because usually the two assists in reflecting the short-term impacts of the recession on expenditure and tax policies on consumer demand for commodities and services.

            Moreover, it is important to understand that tax reductions and increase in expenditure have the ability of increasing consumer demands hence raising employment and output in the next few decades. In order to stimulate the growth of the economy, it is important for government and other stakeholders to ensure that they have adhered to the available fiscal policies to assist in reviving such a recession.

                                                            References

Claessens, S., & International Monetary Fund. (2014). Financial crises: Causes, consequences, and policy responses.       Washington, D.C.: International Monetary Fund

Congdon, T. (2017). The causes of the Great Recession: A monetary interpretation. Cheltenham, UK : Edgar Elgar Publishing

Gross Domestic Product. (2019). Retrieved from https://fred.stlouisfed.org/series/GDP

James, S. (2010). Politics and Policy: The Eisenhower, Kennedy, and Johnson Years. Brookings Institution Press

Mian, A., & Sufi, A. (2014). House of debt: How they (and you) caused the Great Recession, and how we can prevent it from happening again. Chicago ; London : The University of Chicago Press

 Assignment 1

            Additional Jobs and Wider Societal Benefits related to the impact of circular                                                                   economy on Energy

            A circular economy is typically a general term used to describe a manufacturing economy that is designed in a manner that ensures biological nutrients have the capacity of entering the environment in a safe manner as industrial wastes are released in a way that does not pollute the environment. Moving towards such an economy, redesigning and rethinking about the production as well as the recycling cycle is paramount in diminishing externalities (Crocker et al., 2018). Nonetheless, amongst all these strategies, there vital to understand the impacts of the circular economy to oil and gas and renewable energy manufacturing sectors before desiring to improve the welfare of the society. Being an essential part, this is important because the general importance of the circular economy is not always restricted to the concept of continued manufacturing that is often associated with the idea of carrier development (Lacy & Rutqvist, 2015).

            Although to some extent it is difficult to generalize the characteristics or properties of the current economy, it is evident that each employment strategies have different limits or advantages. Based on the advantages and limits of the circular economy in creating additional jobs, it is important to distinguish the type of skills a person has for him or her to be employed. This is imperative because it is the one which will assist in selecting the most suitable candidate and fit for performing a certain task (Akkucuk & IGI Global, 2019). The reason for that is because the role of the circular economy does not entail diminishing some of the environmental externalities found within the oil and gas and renewable energy industries.

            As a result of that, in the act of determining the means of increasing job opportunities as well as offering wider societal benefits, there is the need of adding it into the “rethinking” process of the agendas the circular economy has. Likewise, in order to be in the position of closing the loop, several efforts have to be taken into consideration, for instance the type of materials to be utilized in production, the easiness to dismantle some of the disposed products, and so on (Kreiser, 2015).

            Despite that, by depending on the importance of the circular economy, it is important to consider the match which exists between these sources of energy and the demands of the end-user. Taking this into account the need for creating more jobs and improving the well being of the society, the impacts of the efficiency of the circular economy and the use of energy in production also need to be understood (Larsson, 2018). For any well-established circular economy, energy sources and raw materials are some of the factors which are taken into account by the local suppliers. Likewise, it is important to ensure that a more efficient energy management system is available to assist in approaching the idea of localizing the circular economy (Qi et al., 2016). Such an approach will take into account retrofitting or redesigning the circular economy and the utilization of the energy.

            Nonetheless, resource sustenance and ecological sustainability are some of the main goals of the circular economy. Initially, the circular economy was established for the purpose of shifting the conventional “open-loop system” into the modern “closed-loop system”. The reason for selecting the closed-loop systems is to assist manufactures to understand the role of the circular economy. Considering the conventional open-loop system, the interaction that exists between the environment and the industrial system cannot be easily avoided. Because of that, some extent of environmental deterioration always exists. Contrary to that, guided by the significance of the circular economy, the closed-loop economy assists in ensuring that waste products, the emission of carbon during the production process, as well as other industrial waste materials are part of the manufacturing system (Jutta, 2016). Therefore, in a globalized and inclusive form, the general recycling of industrial waste products is one of the key elements of the circular economy.

            During the process of creating additional jobs and enhancing wider societal benefits related to the impact of a circular economy on energy, it is important to understand where the economy is currently heading to. Due to the fact that long-distance transportation is not only costly but technically difficult, the role of the circular economy ought to be concentrated on the local industries (Haydn & Paul, 2016).  The reduction of energy losses to the environment is one of the important factors to take into consideration when it comes to the need of “closing the loop”. The reason for that is because suitable match-ups among energy suppliers and end-users ought to be established beforehand. From the perspectives of the existing producers, retrofitting these energy sources and the supply of raw materials is one of the cost-effective and promising strategies to take.

            When enhancing the establishment of the circular economy, the idea of adopting such an economy ought to be evaluated based on industrial outcomes. Research indicates that it is vital to ensure that all the manufacturing processes do not directly interact with the environment. The reason for that is because the environment is meant to remain intact despite the production, disposal, or other manufacturing procedures (International Conference on Urban Growth and the Circular Economy et al., 2018). In case manufacturing speed and revenues are the main key performance indicators (KIPs) in assessing production process and product quality, several manufactures could have ignored the importance of environmental restoration. This could have happened so in case there is no value dedicated to carbon emission control strategies, energy efficiency, and by-product recycling (Brears, 2018).

            With equitable investment and effective implementation of this policy will aid in creating effective means of utilizing the available resources at the same time reducing wastage. In the process of delivering that, mid-skilled and low-skilled employments will simultaneously drive resource utilization effectively. In the circular economy, growth whether transformation or modest have the capacity of creating a wide range of recruitment opportunities that assist in tackling the existing challenges. For instance, disparities in regional unemployment can easily be reduced through the spreading recruitment opportunities to a wide geographical area in the circular economy (Jutta, 2016). Likewise, extensive economic development in the circular economy will involve servitisation and continued remanufacturing which in return create recruitment opportunities near the industrial sites in which hiring seem to be higher.

            This is important because it increases the rate of development in such a region as one of the means of ensuring equitable distribution of resources. This implies that in case the circular economy is to be established effectively, there ought to be sufficient skills for it to be delivered. For instance, the available skills should be developed first for such an economy to grow (Larsson, 2018). Feedbacks obtained from the industrial sectors suggest that still there is an absence of employees with the required skills and knowledge. Therefore, there is the need of ensuring that this gap does not continue to widen as the circular economy grows with this transition. Finally, it is the expansion of the circular economy which has the capacity of alleviating the labor market challenges or the current structural unemployment (Haydn & Paul, 2016). 

Assignment 2

Implantation of HSE (Health Safety and the Environment) Policy on the Management and Economics of this particular area

            The circular economy is perceived as being an industrial revolution which has the capacity of making business organizations to be more competitive hence resulting to a wider societal benefits. In return, it is possible to promote the policy framework that supports the efforts used to unleash the importance of the circular economy (Ridley, 2015). The reason for that is because discontentment amongst individuals has for long been increased by the feeling of social inclusion, technological changes, and fears that globalization has ended up removing control over their lives. With the implantation of HSE (Health Safety and the Environment) Policy on the Management and Economics of this particular area, it means that the circular economy will have the capacity of offering means of abating this trend.

            Research has indicated that it is possible to correct structural employment which in return increases opportunity and income of those who might have been left out of the labor market (Gallaud & Laperche, 2016).  Despite that, care ought to be taken into consideration whenever policies have been introduced to boost the growth of the circular economy. The reason for that is to ensure that income inequality, environmental pollution, and so on has been diminished. In return, it becomes possible for the world economies to be the driving force of new models of smart economic growth. Therefore, the implantation of the HSE policy will end up unleashing the opportunities of the circular economy as well as equitable resource utilization, product production, and environmental management (Akkucuk & IGI Global, 2019).

            The continued emission of carbon is perceived to be the main obstacle to “closed loop”. The reason for that the majority of industrial producers are still depending on burning fossil fuels, for example refined oil and coal products. In the process of reducing the emission of carbon into the atmosphere, it is important to introduce the utilization of renewable energy in the production cycle (Usman &Nathan, 2016). Considering the huge amount of carbon emission from burning coal, it is intuitive to imagine to what extent the HSE policy will have the potential of reducing the emission of carbon at an unusual scale. Despite that, in the act of replacing conventional energy with the available renewable energy, there is the need of addressing some of its properties (Gallaud & Laperche, 2016). This includes things like energy storage, energy transportation, and density, and the match-up of energy suppliers and consumers or end users.

            In particular, in the process of reducing the negative impacts of the conventional “open-loop system”, it is easier to establish a resilient economy. This is to mean that there is the need of reducing the impacts of future environmental disruptions in business’ and societal propensity. Similarly, some of the main goals of the HSE policy are to assist in delivering high impact program which will make the circular economy to thrive well (Brears, 2018). The Implantation of HSE (Health Safety and the Environment) Policy on the Management and Economics assist in the establishment of more “local”. With the HSE policy, it means that the reproduction, development of skills in repair and maintenance is the one which assist in creating a sense of cohesion in the environment (Usman &Nathan, 2016).

            The move towards the circular economy with the aid of the implantation of the HSE policy will assist in linking other existing regional development strategies. For instance, industrial development studies suggest that the circular economy has the ability to make a real contribution to environmental protection (Haggar, 2007). For instance, in the process of reducing waste production, the establishment, and the implantation of the HSE policy is aimed at maintaining the prices of raw materials, manufactured products, and other industrial activities. In the process of shifting from conventional linear economy into the modern circular economy, some day-to-day business procedures end up remaining unaffected.

            The criteria used in this case entails drawing on the strengths of the circular economy as a means of implementing the HSE policy on collaboration, leadership, as well as on practical action. Such an action plan on the management and economics of the circular modern “closed-loop system” is also aimed at raising responsiveness, creating an innovative and collaborative program (McKeown & Bugyi, 2016). Such efforts include things like the application of modern technologies so as to increase investment and innovation in business organizations manufacturing and selling products, as well as those involved in material and waste management (Sima, 2018).

            Although research indicates that are various benefits associated with implantation of the circular economy, studies, and empirical evidences on systematic and methodological transition still remain scarce. Despite that, there are those procedures that cease to exist or changes completely (Syngellakis & Melgarejo, 2018). Therefore, systematic approach is the heart of fruitful transition when implanting the HSE policy because a business can fail to thrive well in the transition process in case it does not take that into account. It is also vital to understand the external and internal barriers which exist in the circular economy (Gardetti & Muthu, 2019). In line with that, it becomes possible for business organization to experience robust economic growth (Ridley, 2015).

            Typically, the implantation of the HSE policy on management and economics suggests that the circular economy will greatly contribute towards offsetting the decrease in the middle-level occupations. The reason for that is because the available sectors that provides middle-level recruitment, for instance closed loop recycling and remanufacturing provide possible ways of addressing the decrease in these jobs (Nigel, 2015). This is what will assist companies to be aware of some of the obstacles they might face in the process of adopting the circular economy, increase job opportunities, and other associated societal benefits

                                    Essay 1 references                                          

Brears, R. C. (2018). Natural resource management and the circular economy. Palgrave Macmillan

Crocker, R., Saint, C., Chen, G., & Tong, Y. (2018). Unmaking waste in production and consumption: Towards the circular economy.

Haydn, W & Paul, T. (2016). A Future Beyond Growth: Towards a steady state economy. Publisher            Routledge Press

In Akkucuk, U., & IGI Global,. (2019). The circular economy and its implications on sustainability and the green supply chain. Hershey, Pennsylvania Press

International Conference on Urban Growth and the Circular Economy, In Syngellakis, S., & Universidad de Alicante,. (2018). Urban growth and the circular economy. Southampton, Boston : WIT Press

Jutta, G. (2016). Urban Recycling Cooperatives: Building resilient communities Routledge Advances in Regional Economics, Science and Policy. Routledge Press

Kreiser, L. (2015). Carbon pricing: Design, experiences and issues. Cheltenham : Edward Elgar Pub

Lacy, P., & Rutqvist, J. (2015). Waste to wealth: The circular economy advantage. Basingstoke, Hampshire : Palgrave Macmillan press

Larsson, M. (2018). Circular business models: Developing a sustainable future. Cham, Switzerland : Palgrave Macmillan Press

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Return on Investment is a criterion designed to measure performance. In other words, it analyses the effectiveness of an investment measure in comparison to other similar ventures or related investments. It is able to measure the profit margin of business that went into the investment. This paper will deal with key ROI measures, particular costs that need attention and capturing, and factors that need no attention or recording. In addition, it will look into the challenges that the entire process of ROI may face during the entire procedure and the manner in which a consultant can help more insight in coming up with strategies and competencies within an organization.

Key ROI measures

The success of a business project keys factors that might affect performance what he or she considers success or failure. Defining success is vital for the company and all its stakeholders. After outlining what is the success and what is failure decision-making becomes easier (Farris, 2017).

After outlining failure and success, one gets the key performance issues clearly placed. Secondly, developing suitable metrics is challenging during the early stages of an investment. Consequently, one needs to develop realistic and quantitative objectives based on information from what one considers failure and success as stated earlier. Whether the success goals were too ambitious or too traditional, an organization can always adjust accordingly (Halsall, & Dunn, 2013).

Gathering appropriate information from reliable sources is helpful in developing a clear guideline in mapping out returns of the organization. Gathering data frequently leads to easier monitoring of goals and objectives of an investment. One should be more concerned with the daily performance of the business rather than wait for the actual ROI conducted monthly or even annually. Lastly, one   needs to use the information to make decisions (Phillips, & Phillips, 2008).

What needs capturing in an ROI?

ROI is not just a calculation of figures but it dictates the manner in which a person thinks and executes their duties. Therefore, calculation of ROI should not necessarily be after a year or even annually. Some expenses occur as part of running the business activities while others occur even if the business does not carry out any activities. One has to keep the record of all the activities and the amount of money they incur on the business. Eventually, the accurate cost will reveal through the records (Phillips, & Phillips, 2008).

What one does not need to capture in an ROI

A common mistake people make while carrying out ROI is comparing returns with initial money pumped into the scheme. The initial capital is often in terms of cash. The right approach is to measure the amount of money or cash flow passing through the investment over a certain time against  profits. Once one determines the cash flow and differentiates it from the profit, ROI evaluation becomes simpler (Farris, 2017).

Challenges during ROI evaluation

After outcome, the ROI has to be accurate and not a single digit should be out of place. Hence, it financial expert should carry out the procedure and interpret all the results to other stakeholders. The results should match the actual financial numbers on the line. Otherwise, the understatement may disrupt any strategies developed from the results. A consultant can develop competency by ensuring that workers have enough expertise and incorporate recruitment regularly (Halsall, & Dunn, 2013).

References

Farris, P. W. (2017). Key marketing metrics: The 50+ metrics every manager needs to know. Harlow: Pearson Education Limited.

Halsall, C., & Dunn, M. (2013). The marketing accountability imperative: Driving superior returns on marketing investments. San Francisco, Calif: Jossey-Bass.

Phillips, P. P., & Phillips, J. J. (2008). ROI Fundamentals. John Wiley & Sons.