Economic Ideas Of The Enlightenment Essays - Classical Liberalism

Economic Ideas Of The Enlightenment The Enlightenment is the name given to the intellectual movement that was centered in the Western World, mainly Europe, during the 18th century. The rise of modern science greatly influenced the enlightenment. It was also the aftermath of the long religious conflict that followed the Reformation. The thinkers of the Enlightenment were dedicated to secular views based on reason of human understanding, which they hoped would provide a basis for beneficial changes affecting every area of life and thought. There were many people during the Enlightenment that made an impact on the world. Many people had different opinions about what was happening and how to fix the problems facing the world at that time. One man started this change with his Encyclopedia. This man was Diderot; it was called the great work of his life. This book was a major weapon against the old French society. His book made a great impact on the people because it was so cheap that everyone could obtain a copy. With the printing of this book a new group emerged from the populace. This group, named the Physiocrats, has been viewed as the founders of the modern discipline of economics. A well-known member of this party is known for his thoughts on the old economic ideas. His name was Adam Smith and he had many economic ideas of the enlightenment. Adam Smith wrote the book Inquiry into the Nature and Causes of the Wealth of Nations. This book had three basic principles of economics. The first principle was the condemning of mercantilist use of protective tariffs to protect home industries. A tailor does not try to make his own shoes, nor does a shoemaker try to make his own clothes. (Western Civilization pg. 493) With this line of reasoning Adam Smith was saying that a country should not try to make their own products when another country can supply them for cheaper than the one country can make it. A nation should make what it can for the least amount of money, without the tariff, then trade it with other countries. The free trade principle was a fundamental economic principle to most people. The second principle that Smith proposed was about labor. Unlike most of the Physiocrates he thought that labor was a countries true wealth. Labor was the only part of the country that could change the wealth, not gold or silver. Finally Smith believed that the government only existed for three of the peoples basic needs. He thought that the government should be a passive policemen. The three needs that Adam Smith theorized were the fact that the people need some protection against another country in the case of an invasion. The next need was for justice and peace in the cities. To do this there had to be police. The very last need was maintenance. There were many roads and bridges that needed to be kept in working order and the citizens were too busy to do it themselves. Many of the ideas that Smith proposed were then incorporated into everyday living. This made the enlightenment a new place for people to live. The enlightenment brought a new life for the poor. They soon got jobs and many other benefits for these poor people. The Enlightenment brought more trade to the people. They felt that, along with Adam Smith, countries should only make items that they can do for the cheapest amount. This spread trade to many different countries that had items others needed. Distributing trade made work available for a greater number of people. Government members wanted to help their country have a greater economy. With this idea in mind they started to make jobs open to more people. With more members in the working society the country would have more benefits. There would be a larger food supply and more money going back into the economy. The government supported the people by making new positions for the needy. They did this by developing new jobs to fit the three needs for the people according to Smith's theories. The people needed to have maintenance around to fix the roads and bridges. These made many new jobs for handymen. The next need was the need

Mytholgy in the Lion King essays

Mytholgy in the Lion King essays But Simba, you are the rightful ruler of Pride Rock! yells Nala, Simbas long lost friend. Well maybe I dont want to be king! Simba says. After watching the movie, The Lion King, I realized that mythology was definitely a part of the movie. It relates a lot in many different ways. As I watched it, I took out the key elements of mythology in the movie. Im here to argue the point and tell you the reasons that The Lion King is a mythological story. First of all, one key element in the movie that I found was ruling a certain kingdom of town. In The Lion King, King Mufasa is the ruler of Pride Rock, which is the land where the light touches. Although all the animals follow his command, it doesnt mean he has a dictatorship over Pride Rock. King Mufasa consults the animals to find out what is the best result. On the other hand, In the book, The Odyssey, Odysseus is the ruler of his city, which is the island of Ithaca. When you think of a hero, what do you see? Do you see a tough, brave man doing anything to please you? If you were dying, do you think this hero would save you? When I think of hero in the movie, Simba right away comes to my mind. He took many risks a hero would do. For example, one risk Simba took was coming back home to Pride Rock. He never ever wanted to face the past again yet he conquered his fear and went back to defeat Scar and win his kingdom again. When I think of hero in mythology, the name Hercules comes to my mind. He was a true hero, always helping people and trying his best. A hero doesnt necessarily have to always save people. They just have to always be trying their best and defeating what they truly think should be. Ever hated getting tricked by someone? Did it bother you? In The Lion King, Simba was tricked by a lot of animals. First of all, Simba was tricked by his Uncle Scar. Scar is definitely a trickster in many different ways. ...

Unit 2 LS311 Torts and Cyber Torts-CASE STUDY Essay

Unit 2 LS311 Torts and Cyber Torts-CASE STUDY - Essay Example The position held in the NCR Corp v Korala associates Ltd 2007 06-3685 (6th Cir.), where the court stated that the provisions of the arbitration clause are binding in claims relating to the contract. Where the claim has a connection to the contract, the resolution of the dispute facilitated through arbitration (Miller & Jentz 2009). On the other hand, where the claims are not within the contractual terms, the arbitration clause does not bind. Regardless of the nature of the claim, it is only binding if the court must reference the contract in its resolution. The court looked into whether the parties agreed to arbitrate on such claims in order for the arbitration clause to be binding. The outcome in Baker v Osborne, therefore, would provide for the parties to arbitrate on the claims. The arbitration clause in the contract provides for arbitration between the parties concerning any issues arising concerning the contract, the scope of the clause covers the current claim and, therefore, the new owners bound by the arbitration clause, and they should not sue the

2,000 word Conflict Analysis and Research Proposal

2,000 word Conflict Analysis and - Research Proposal Example To many, natural resources are a vital resource for development and seems as the sole sure path to poverty reduction and economic growth. The increased awareness of the correlation between natural resources, security, and conflict continues to serve as reinforcement for the perception that natural resources are now a security issue (Bannon and Collier 2003 ). While appreciating that there are other drivers, this proposal suggests a detailed research to establish the interrelationship between distribution of economic resources and conflict. A succinct understanding of this relationship is considered necessary especially when formulating and implementing policies to mitigate the risk of conflict whether within a country or region. Limited knowledge of the correlation has resulted into misaligned policies and strategies that fail to achieve their objectives on prevention of conflicts related to natural resources distribution. The contemporary society is concerned that tension and conflicts continue to persist despite the formulation and implementation of conflict prevention policies in various world regions and countries. Much has been done to combat conflicts although researchers have shown that tensions and threat of violence are still high. An understanding of the correlation between conflicts and various drivers is considered as a vital step towards sustainable conflict prevention strategies and policies (Odhiambo 2011). It is necessary that the society adopt strategies that comprehensively address regional conflicts regardless of the dynamics of the contemporary world. All aspects of life are experiencing fast changes largely because of globalization. This research proposal in an attempt to establish the linkage between natural economic resources and conflicts presents a succinct literature review, research methodology, and possible results in subsequent sections. The literature refers to earlier re search studies to give insight on how different regions and

Issues of Adverse and Moral Selection

Issues of Adverse and Moral Selection MUKHTAR MUHAMMAD AHMAD DISTINGUISH BETWEEN ADVERSE AND MORAL SELECTION, AND HOW A FIRM MIGHT OVERCOME EACH PROBLEM Adverse selection can be said as the process that occurs when seller valued goods more highly than the buyer does, because the seller has the full information and understanding about the good. Due to this information known by the seller, the seller is unwilling to part with the goods for any price lower than the value the seller knowns it has. On the other hand, the buyer who has no any information about how good the product is, is unwilling to pay more than expected of the good, which take into account the possibility of getting a bad piece. It is the Asymmetry information prior to the transaction that prevent the transaction from happening. If both the seller and the buyer were not sure of the quality, they would be willing to trade based on its actual value. Moral hazard, is usually seen as services such as insurance and warranties. In this case, when the deal is done, one of the party involved in the deal (in this case, the person purchasing the insurance) may be less careful because he/she has the insurance, thus is not expected to the full cost the losses insured. Example, a person with an insurance against theft may not border about closing all what is necessary when leaving the house, here, it is not the prior information that either party has ,but due to lack of information that the insurance company has in providing and controlling the risk taking behavior that can leads to the market failure. Lets look into adverse selection in details especially in the case of insurance. Adverse selection; can also be said as the selection originally used in insurance. Its describe a situation where in an individuals demand for insurance (The propensity to insurance and quantity purchased) is possibly the individuals risk of loss (higher risk buy more insurance), and the insurer is unable to allow for this correlation in the price of insurance. This may be because of an information known only to the individuals. (Information Asymmetry), or because of regulation or social Norms which prevent the insurer from using certain categories of known information to set price (For example, gender, genetic, test or pre existing medical conditions. The last of which amount to a 100% risk of losses associated with the treatment of the condition).The letter scenario is sometimes referred to as regulatory adverse selection. The potential adverse nature of the phenomenon can be described as the link between the smoking status and mortality of those not smoking, on the average, are more likely to live longer, while smokers on average are more likely to die younger. If the insurer did not distinguish the prices for life insurance according to the smoking status, life insurance would be better buy for smokers than does not smoking. In this case, the smokers may be more willingly to buy insurance or may tent to buy larger amount of the insurance than the does not smoking, there by raising the average mortality of the combined policy holder group above that of the general population. From the insurers view point, the higher mortality of the group which select to buy insurance is adverse. The insurer raises the prices the insurance accordingly and as a consequences, does not smoking may be less likely to buy insurance (Or may buy smaller amounts) than they would buy at a lower prices reflectively to their lowe r risk. The reduction in the insurance purchases by does not smoking is also adverse from the insurers view point, and may be also from public policy view points. Furthermore, if there is a range of increasing risk categories in the population, the raise in the insurance prices because of adverse selection may leads to the lowest remaining risk to cancel or not renew their insurance. This promote a further raise in price, and so on. Eventually this adverse selection death spiral might in theory leads to the collapse of the insurance market. SOLUTION TO ADVERSE SELECTION PROBLEM Alternative solution to the effects of adverse selection to the insurers (to the extent that law permit) ask a randomely question requesting medical or other reports on individual who apply to buy insurance so that the price quoted can be varied accordingly, and any unreasonable highly or unpredictable risk rejected. This risk selection method is known underwriting in many nations, insurance law incorperate as utmost good faith doctorine. Which requires potential customers to answer any underwriting question asked by the insurer fully and honesty; if they fail to do so, the insurance may refused to pay the claim. While adverse selection in theory seems a clear and inevitable consequences of economic incentives, empirical is mixed. Several studies investigating correlations between risk and insurance purchased has fail to show the predicted possible correlation of life insurance. On the other hand, positive test result in adverse selection have been reported in health, long term care and annuity market. These possible result tent to be based on demonstrating more subtle relationship between risk and purchasing behavior (such as between mortality and whether the customer chooses a life annuity which is fixed or inflation linked), rather than simple correlations of risk and quantity purchased. MORAL HAZARD Moral Hazard is a situation in which a party is more likely risk because the cost that could be result which not be borne by the party taking the risk. In other words, it is a tendency to be more willing to take the risk, knowing that the potential borden of taking such risk will be born in whole or in potentially by others, A moral Hazard may occur where the actions of one party may changes to Sthe detriment of another after the financial transaction has taken place. Moral Hazard arises because an individual or institution does not take the full consequences and responsibility of its actions, and therefore, has a tendency to act less careful than its otherwise would leaving another party to hold some responsibility for the consequences of those action. Economists explain Moral hazard as a special case of information asymmetry, a situation in which one party has a wider information than the other in particular moral hazard may occur if the one that is been cheated from the risk has more information about the action and intention than the one paying for the negative consequences of the risk, more broadly, moral hazard occurs when the one with more knowledge about its action or intention has a tendency or incentive to behave inappropriately from the perspective of the one with less information. Moral Hazard is also arises in a principal Agents problem, where one party, called an agent acts on behave of another individual called principal. Usually have the knowledge about his action than the principal agents does due to the principal. Usually can not completely monitor the agents. The agents may have incentive to act inappropriate way. (From the view point of the principal) if the interest of the agents are the principal are not alligned. SOLUTION TO MORAL HAZARD Alternative way a firm can solve a problem of Moral hazard is the major aspect of the insurance deals with the effect of the availability of insurance on the level of care exercised by the insured to reduced the probability of loss. When an insured policy is not available like in the case of theft, an economic agent could devoted time to watch his property. At the extreemed, he could insure that the probability of losses was zero, but the cost of such strategy would likely be prohibitive. For example, the optimal action is to be expand on effect less than that require to reduce. The probability of theft to zero and hence, to bear the some risk. If we assumed the economic agents are risk averse, they would be willing to pay for transferred of risk to another Agents thereby enhancing their welfare. This transferred of risk is obtained through the purchase of an insurance policy. In conclusion, Adverse selection is the selection before the deal or transaction is done in which the person with the product or selling, valued and worth the good than the buyer in the sense, the seller has the better understanding and knowledge about the good and buyer who with less information about the good, would just purchase it based on his own assumption of the quality of the goods. and here, to counter such problem, the seller would have to emphasize more of his products and try to study the consumer behavior before getting into any transaction. while Moral hazard on the other hand, is the situation that occurs when the transaction is done that is, when the deal is done. One of the party in the transaction. here, the person taking the risk is more likely to be the one with the full information in the transaction and acted less carefully knowing that he would not bear the full losses alone thereby, affecting the one with less information about the transaction without his cons ents. To solve such problem, the insurer has to have an agreement on the facts that, the one that acted carelessly would likely be the one to bear more losses. That would make the one with more information to be more serious in the deal and avoiding any lapses that would occur after the deal is done.

INBM Essay

Catch of the day Kalastaa Inc. have been in the local Finnish aquaculture industry for nearly fourteen years. They raise salmon and trout for local markets, and have recently negotiated a deal with a small fish processing plant that distributes under a major product label in Finland. Although they run a rather small operation, employing 16 people year-round, Kalastaa believes they are in a position to export some surplus and perhaps broker further deals with fish processing plants around the European Union. They do want to maintain ties with the local fresh fish markets, but sales have been steadily decreasing since the sudden influx of cheaper Scottish salmon on the market. They know their stock is of higher quality and could be exported abroad quite profitably. Kalastaa has contacted the government and enrolled in small business export initiatives. This has enabled the company to attend aquaculture conferences abroad and offered them the opportunity to network and make contact with DanskFisk, a Dut ch importer. Plenty more fish in the sea? DanskFisk was eager to negotiate a contract for 2 tonnes of Finnish salmon to distribute to a number of clientele throughout the country. Payment of credit was arranged by a Dutch bank. The documents required were a commercial invoice, the insurance policy, a marine bill of lading, and a certificate of quality. Kalastaa has arranged to have their fish inspected by a nationally accredited standards organization. Both parties agree in their contract that Kalastaa will pay freight to Rotterdam and will also insure the shipment. Once the salmon has been delivered, DanskFisk will assume all responsibility. The Finish Food Inspection Agency reports to Kalastaa that the fish to be exported is of superior quality, with a fat content of 11 percent. The  certificate of quality includes a code for superior quality and also states a color code that is standard to the Salmofan scale. Colour coding is a common practice in the fish industry and provides a method of standardization for something as subjective as colour. Both in production and sales, colour is the most important quality parameter for salmon. Salmon buyers can request information on the colour of a delivered lot in the form of a number corresponding to a colour number on the Roche scale. Another salmon colour reference is the colour number on the Salmofan scale. Kalastaa’s bank, acting as their export advisor, contacts the  company to tell them that the letter of credit has fallen though because the certificate of quality is vague and it cannot be ascertained if the shipment has passed its quality certification. Somethin g is fishy†¦ The documents were delivered directly to the buyer for payment. DanskFisk insists on inspecting the shipment upon arrival. DanskFisk is not an experienced salmon importer, and usually deals with Spanish Blue Fish and Irish Char. They are not in disagreement that the salmon shipment has passed quality inspection. Upon DanskFisk’s inspection, they claim that the fat content of the stock is much higher than is claimed in the quality inspection. They reject the sale and will accept substitute goods, but are claiming damages for loss of profit. Kalastaa management wonder if they need to rethink their exporting strategy. Case Study Discussion Questions 1.  Which shipping vessels would be most appropriate for Kalastaa to ship their product to Rotterdam? 2.  Describe the purposes for each of the export documents that Kalastaa need to provide to secure documentary credit. 3.  Which Incoterm would best represent the terms of sale between Kalastaa and DanskFisk? 4.  Would Kalastaa have benefited from employing a freight forwarder? Explain.

Dan Pink Surprising Science of Motivation

Dan Pink on the surprising science of motivation This pitch was in my opinion really good. Divided in three parts with a sum up at the end that enforce and give power to what he said. The first part was when he gives facts, states experiences and its results. In the second part give credibility of results fund during the experiences, explain those results and shows that most important economists of the world agree with those results and found the same.The third and last part is about giving example that are currently applied in the world and illustrate perfectly his theory that traditional rewards are not as effective as we think, it is even the opposite. Both ethos, logos and pathos were used and used at the right moment, in the right proportion and the result is that he caught people’s attention and give credibility to his speech.Ethos: His way to tell his speech as if it was a â€Å"lawyerly case† as he said it. And to involve quickly everyone he talks to them as if they were a jury (â€Å"ladies and gentlemen of the jury†) and this until the very end of his speech finished by the sentence â€Å"I rest my case†.At the end of the explanation of the second experience that gave illogical results and to consolidate his results and give his speech more credibility, he affirms that for him too that is illogical and that he is exactly like everyone in the room (â€Å"I am an American (†¦) that is not how it’s supposed to work†) This example and the fact that at the beginning of his presentation he tells everybody that he did not get good results from his law university are really clever from him. Saying that he is getting more trustful to people, imperfect side of him make him more human for others.Logos: He has a very strong logos during the whole presentation. And at the beginning of his speech he said directly that his facts are true, proved. He has a PowerPoint used only for his logos that help the explanation of e xperiences made with the candle, show the important words of his speech. He also used scientist results and conclusions given by the most important economists worldwide (such as the conclusion made by the economists of LSE). And in his third part he gave an explanation based on three words, illustrate by example and repeated several times to give them more impact on the audience.Pathos: Begin with a story, more than a story it is like he is going to confess something that he is not proud (â€Å"I need to make a confession†). Saying that he makes people trust in him, because he exposes himself. But it is fact a joke, which is also really good because humour is always a good way to catch people’s attention. And during the whole speech, he will have a lot of humour. His speech was like him dynamic, enthusiastic and totally engaged with his audience. With this combination of ethos, logos and pathos Dan Pink make an informative speech and the audience easily receives its me ssage.