The Consequences Of Government Restrictions On Free Trade

Adam Smith was a moral philosopher most famous for pioneering classical economics in his seminal work, The Wealth of Nations. Smith’s central argument was that the free market, guided by the invisible hand, is the best system to maximize prosperity and create most efficient distribution of goods and services by allowing for individuals to pursue their self-interests. Smith’s economic philosophy was especially groundbreaking for his time, as he lived in an era when Europe was dominated by mercantilism, an economic system guided in large part by heavy government intervention in order to maximize their nations’ balance of trade. This essay thus will analyze Smith’s critique of mercantilism, discuss the unintended and harmful consequences of†¦show more content†¦However, this irrational belief, highly popular in Europe at the time of Smith’s writing, gave way to a series of harmful practices due to the general impulse to accumulate gold and sil ver at all costs. First, he notes that most European nations had either completely prohibited or strictly taxed the exportation of precious metals to foreign countries (Smith IV 1.5). This, of course, was one of the easiest ways of â€Å"protecting† their domestic supply of precious metals, simply by banning them from leaving the country. However, the effect of this was negative, particularly on the miners and merchants of these metals, who â€Å"could frequently buy more advantageously with gold and silver than with any other commodity the foreign goods which they wanted, either to import into their own, or to carry to some other foreign country† (Smith IV 1.5). While prohibiting one specific medium of exchange (such as gold) from being used to make foreign transactions does not make trade impossible, it simply makes it much more difficult and costly, as they must rely more on bartering. Furthermore, Smith notes that these restrictions often failed, as gold and silver can be smuggled out of the country, albeit at a much higher cost to the economy as a whole. Additionally, Smith notes another harmful consequence of European mercantilism, the high propensity of protective tariffs. The rationale behind this is to give domestic industries a competitive edge

Mohandas Gandhi`s Difficult Obstacles Essay - 1476 Words

Mohandas Gandhi was born the youngest son of his father, Karamchand Gandhis, fourth wife, Putlibai, in a small village in western India called Porbandar. He grew up in a strict Hindu household, for his father was the chief minister, or dewan, of the town. Although Karamchand was not well educated, he was a good leader and politician. His mother, Putlibai was a very religious housewife, and spent most of her time at home or in the temple. She spent much of her time caring for the large family, so she was not interested much in jewelry or other possessions. He was brought up as a good Hindu, in the particular branch called Vaisnavism, which centered on the worship of the god Vishnu. His family also followed the strict moral values†¦show more content†¦To his great sorrow, his mother had passed away while he was in Great Britain. This was followed by another blow almost as bad: He could not get a job anywhere. The Indian legal system was already overcrowded, and he was even turned down for a part time teaching job. Dismayed, he returned to Rajkot in search of better opportunity, but found only a low paying job at drafting petitions. He was even fired from this job after a while. After all that, the offer he then received from a firm in Natal, South Africa, could not have sounded sweeter. When he arrived however, he was shocked and appalled by the horrible segregation and racial discrimination, but he took the beatings and attacks on his person in stride, and was almost ready to leave in 1894, when, at his farewell party, he read about a bill that would take the vote away from Indians in South Africa. He quickly decided to stay and try to stop the bill. He was unsuccessful in getting the bill stopped, but he was able to draw attention to the Indian community. He moved to Durban, began practicing law, formed the Natal Indian Congress, and became the indefatigable secretary. In 1896, he returned to India to fetch his wife, Kasturbai, and make speeches to the Indian community. Word of his doings found their way back to South Africa, and a white mob was waiting for him to arrive. They attacked him, nearly lynching him, and would have beenShow MoreRelatedFamous Thinker2262 Words   |  10 Pageswas elected President of the Southern Christian Leadership Conference, an orga nization formed to provide new leadership for the now civil rights movement. The ideals for this organization he took from Christianity; its operational techniques from Gandhi. In the eleven-year period between 1957 and 1968, King traveled over six million miles and spoke over twenty-five hundred times, appearing wherever there was injustice, protest, and action; and meanwhile he wrote five books as well as numerous articlesRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 Pagesshifts in the course of global development in the 1900s, contradictory forces and trends, which perhaps more than any other attribute distinguish this turbulent phase of the human experience, render it impervious to generalized pronouncements and difficult to conceptualize broadly. As the essays in this collection document in detail, paradox pervades the time span we call the twentieth century, no matter how it is temporally delineated. Never before in history, for example, had so many humans enjoyed

Kraft Food Free Essays

Strength ? Kraft foods is the world second largest food company since it has the presence in 160 countries with 168 integrated factories, (Geographical presence of Kraft foods ) ? It has a heritage of business since 1903 ? The human resource capacity of this company is 97000 which make them the one of largest in the globe, ? Kraft foods carries 40 brands which is in the market over 100 years ? Country led model of the Kraft foods which lead towards making decisions more faster ? Acquisition of Cadbury LU biscuits which led the strong presence of Kraft foods in the global market because Cadbury had 45000 employees the presence of the brand in 60 countries , LU biscuit which has 32 manufacturing facilities with 14000 employees which lead more market share , more value or revenue from the segment categories specially in the European region 1. Weakness ? Kraft Foods 12. 5% ( 2009 ) comes from 5 brands portfolio ? Adding the Pan – European centralized management will lead to cultural effect in the organizational structure ? The acquisition process of Cadbury bought more negative impact on Kraft food since an UK based company was taken over by a foreign based company ? Selling of frozen pizza post cereal business which effect the convenience foods segments net revenue contribution of 94. We will write a custom essay sample on Kraft Food or any similar topic only for you Order Now 1% operating income of 8. 8 % as per 2009 figures of Kraft foods north America 2. Opportunities ? Expand penetration in developing markets by the increase of the population Ex: China , India markets 3. Threats ? Holidays Seasonal Changes effect the demands of the products ? By presenting in globally Kraft foods Came across competition from retail house brands, generic brands, regional , local, other multinational brands Ex: Super Markets like Tesco , Carrefour developing their own brands on FMCG category in Srilanka Cargills, Keells Super has their own brands ? Cost increase of the raw materials other local political , legal un stabilities of the countries ( ingredients packaging material ) Ex: Mad cow disease had stop purchase most of the imported or processed meat from other countries 1. Political Political unrest particularly in the Ivory Coast affecting supply of Cocoa and in other parts of Africa. ? European unions condition for acquisition of Cadbury which led to Kraft foods to sell the Cadbury confectionery operations in Romania Poland ? Favourable regulations allowing relatively easy acquisition of Cadbury in spite of promises by UK Labour Party to enact a Cadbury Law to maintain the UK ownership. ? Government agricultural policies impacting upon Kraft operations ? Competition and antitrust controls. 1. Legal ? Ban on exports of foodstuffs from CIS a result of poor crops – also environmental factor. Compliance with food regulations in different jurisdictions ? Importance of patent protection with regard to branded organisation like Kraft – problems of enforcement ? Contractual rights in various countries 2. Economic ? Fluctuation in currencies especially the US Dollar impacting particularly on Kraft with its operations in over 160 countries ? Recession has impact on business activity economic activity particularly with regard to the value of the UK pound and the Euro with regard to economic problems in Ireland, Portugal and Greece. Sharp increases in commodity prices – the case highlights the situation with regard to coffee and cocoa, a result of speculation and demand increases as the world population grows. There are also supply issues as a result of weather problems and the changeover from food crops to bio–fuel crops. 3. Social ? Growth in demand for coffee from growth of organisations such as Starbucks (economic) ? Move towards health consciousness which will impact on processed foods manufacturers such as Kraft and Cadbury leading to negative perceptions of packaged foods like Kraft manufacture ? Culturally bound markets significance of foods within certain culture ? There are problems of rural communities with migration to urban areas especially young people which accentuates the key problem of aging. ? Corporate social responsibility becoming a key issue as initiatives such as Fairtrade gain support from major food producers notably Cadbury with its flagship brand Dairy Milk. ? There have been changes in food habits as a result of the economic crisis leading to phenomenon such as â€Å"stay at home† and growth of consumption of retailer brands and other cheaper brands. . Environmental ? Global warming causing extremes of weather eg Floods in Pakistan and droughts in CIS leading to disruptions in supplies of raw materials ? Increasing pressure on organisations particularly high profile multinationals such as Kraft, to become greener. The issue of carbon footprint and food miles is critical to global organisations. ? Waste and recycling issues – Kraft uses signi ficant amount of packaging and is also subject to transportation costs. 5. Technology Although technologies are converging globally, there are still wide variations in IT availability across countries and multinational organisations such as Kraft must take account of this. ? There is continuous pressure to develop cheaper production techniques via the application of new technologies to become the low cost producer in order to both maximize profits and to resist pressures from retailers such Walmart for lower prices. ? Kraft is particularly strong in R D ? The growing impact of ITC leading to more e-business and e-procurement. – How to cite Kraft Food, Papers Kraft Food Free Essays Strength ? Kraft foods is the world second largest food company since it has the presence in 160 countries with 168 integrated factories, (Geographical presence of Kraft foods ) ? It has a heritage of business since 1903 ? The human resource capacity of this company is 97000 which make them the one of largest in the globe, ? Kraft foods carries 40 brands which is in the market over 100 years ? Country led model of the Kraft foods which lead towards making decisions more faster ? Acquisition of Cadbury LU biscuits which led the strong presence of Kraft foods in the global market because Cadbury had 45000 employees the presence of the brand in 60 countries , LU biscuit which has 32 manufacturing facilities with 14000 employees which lead more market share , more value or revenue from the segment categories specially in the European region 1. Weakness ? Kraft Foods 12. 5% ( 2009 ) comes from 5 brands portfolio ? Adding the Pan – European centralized management will lead to cultural effect in the organizational structure ? The acquisition process of Cadbury bought more negative impact on Kraft food since an UK based company was taken over by a foreign based company ? Selling of frozen pizza post cereal business which effect the convenience foods segments net revenue contribution of 94. We will write a custom essay sample on Kraft Food or any similar topic only for you Order Now 1% operating income of 8. 8 % as per 2009 figures of Kraft foods north America 2. Opportunities ? Expand penetration in developing markets by the increase of the population Ex: China , India markets 3. Threats ? Holidays Seasonal Changes effect the demands of the products ? By presenting in globally Kraft foods Came across competition from retail house brands, generic brands, regional , local, other multinational brands Ex: Super Markets like Tesco , Carrefour developing their own brands on FMCG category in Srilanka Cargills, Keells Super has their own brands ? Cost increase of the raw materials other local political , legal un stabilities of the countries ( ingredients packaging material ) Ex: Mad cow disease had stop purchase most of the imported or processed meat from other countries 1. Political Political unrest particularly in the Ivory Coast affecting supply of Cocoa and in other parts of Africa. ? European unions condition for acquisition of Cadbury which led to Kraft foods to sell the Cadbury confectionery operations in Romania Poland ? Favourable regulations allowing relatively easy acquisition of Cadbury in spite of promises by UK Labour Party to enact a Cadbury Law to maintain the UK ownership. ? Government agricultural policies impacting upon Kraft operations ? Competition and antitrust controls. 1. Legal ? Ban on exports of foodstuffs from CIS a result of poor crops – also environmental factor. Compliance with food regulations in different jurisdictions ? Importance of patent protection with regard to branded organisation like Kraft – problems of enforcement ? Contractual rights in various countries 2. Economic ? Fluctuation in currencies especially the US Dollar impacting particularly on Kraft with its operations in over 160 countries ? Recession has impact on business activity economic activity particularly with regard to the value of the UK pound and the Euro with regard to economic problems in Ireland, Portugal and Greece. Sharp increases in commodity prices – the case highlights the situation with regard to coffee and cocoa, a result of speculation and demand increases as the world population grows. There are also supply issues as a result of weather problems and the changeover from food crops to bio–fuel crops. 3. Social ? Growth in demand for coffee from growth of organisations such as Starbucks (economic) ? Move towards health consciousness which will impact on processed foods manufacturers such as Kraft and Cadbury leading to negative perceptions of packaged foods like Kraft manufacture ? Culturally bound markets significance of foods within certain culture ? There are problems of rural communities with migration to urban areas especially young people which accentuates the key problem of aging. ? Corporate social responsibility becoming a key issue as initiatives such as Fairtrade gain support from major food producers notably Cadbury with its flagship brand Dairy Milk. ? There have been changes in food habits as a result of the economic crisis leading to phenomenon such as â€Å"stay at home† and growth of consumption of retailer brands and other cheaper brands. . Environmental ? Global warming causing extremes of weather eg Floods in Pakistan and droughts in CIS leading to disruptions in supplies of raw materials ? Increasing pressure on organisations particularly high profile multinationals such as Kraft, to become greener. The issue of carbon footprint and food miles is critical to global organisations. ? Waste and recycling issues – Kraft uses signi ficant amount of packaging and is also subject to transportation costs. 5. Technology Although technologies are converging globally, there are still wide variations in IT availability across countries and multinational organisations such as Kraft must take account of this. ? There is continuous pressure to develop cheaper production techniques via the application of new technologies to become the low cost producer in order to both maximize profits and to resist pressures from retailers such Walmart for lower prices. ? Kraft is particularly strong in R D ? The growing impact of ITC leading to more e-business and e-procurement. – How to cite Kraft Food, Essay examples