Category: Economic

Summary: The Elusive Quest for Growth: Economists Adventures and Misadventures in the Tropics

The book under analysis provides us with a situation in developing countries in the tropics as well as problems connected with their economic growth. The author also describes the way these countries attempt to fit the standards established in North America and Europe.

The leading economists conducted their assessment and assist the countries in attaining those standards. In particular, they contributed to fostering education, investing in machines, providing foreign aid, controlling population growth, and making loans to advance the reform introduction. According to the author, the failure to infuse the slightest improvement in the developing economies did not lie in the poor economic structures, but an inability to apply effective economic approaches to practical policy plan.

The book is split into three parts where the first part discloses the overall idea of the work, the second part provides specific programs initiated by the leading economists, and, finally, the third section is connected with the results and reaction to the implemented strategies. All chapters are presented in a first-person narration where the author expands on his experience while leading and working in the poor countries in the tropic. It is also worth saying that the entire book is built in the form of essays where each idea is interpreted through the authors thoughts, feelings, and challenges he had to overcome.

The book is of great significance for future specialists in the field of the economy because the book shows how the presented solutions deviate from traditional views on basic economic principles as well as how people react to those principles and solutions. Easterly discusses the importance of growth, evaluates the development solutions, and suggests unconventional approaches to existing problems.

Summary: The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else

The book focuses on American history and experience in the nineteenth century, in the time when local, federal, and state laws gradually changed and evolved to cope with establishing legal criteria and land issues. The author analyzes the political and legal situation in the developing countries and devises two principles in integrating and blending informal and legal systems of property ownership. In particular, the major emphasis is placed on the essence of the legal reforms serving as the main force in establishing welfare and high-quality economic standards.

In the book, the author, first of all, touches upon political and legal changes that should be introduced as well as how those shifts will resist the changes in legal, political, and social structures. Further on, De Soto believes that there is a great need for these legal and political reforms as well as an incredible urgency in committing them to practice. While evaluating the Cold War Period and the Marxist tendencies existed at that time, the author tries to delineate the basic ideological and political grounds typical for the undeveloped nations.

At the end of the book, the author warns that the new period after the Cold War will be based on the protest against capitalism because the introduction and preservation of a free-market system will be much more beneficial for building an economically strong society. In this respect, the book is of considerable value for studying and understanding the economic history and reflecting on possible strategies for improving the current situation in the developing countries.

China and US Economic Indicators

There has been a lot of comparison of Chinas economy with the United States due to the economic growth China has been experiencing in the recent years. The United States however still remains quite ahead of China in terms of economic indicators such as employment and GDP. The GDP of the United States in 2009 was nearly $15 trillion while the Chinas GDP was $5 trillion.

The income levels for the average American was ten times more than for the average Chinese individual. These measures of GDP and income levels may not show the gains made by the Chinese economy. The purchasing power of the Chinese has been increasing yearly. A higher number of consumer goods are cheaper in China enabling the people to purchase more with their income.

The purchasing power is therefore a better measure since the same amount of money should be able to buy the same types of goods in any place in the continent. The GDP of China adjusted by the current purchasing power shows that the countrys GDP is nearly $10 trillion. The gap of $5 trillion could be closed in the next few years considering the high GDP growth of the China.

The inflation in China has been increasing at a faster rate than the US causing the World Bank in 2005 to adjust the PPP measure of the country downwards by 40%. The inflation rate has continued to be higher than the United States even after 2005. The GDP growth of the United States over the period 1981 to 2010 increased 4.7 times

however the Chinese GDP increased by over 30 times over the same period. In the area of trade, China has been able to surpass the United States in the area of exports. China is the biggest world exporter. In the period 1998-2000, there was a significant gap between the two countries however in 2006, China caught up and in 2010 and there is a gap with China leading. The export industry has shown significant progress.

In the area of foreign debt, the United States over the years has been increasing its debt at a fast rate. It has made the experts and scholars in the country to be concerned as it currently stands at $4.45 trillion. Chinas foreign debt on the other hand is a lower level of $785.17 billion. In light of all the economic indicators discussed, the world is watching China and it is expected in the next few years it be the world leader in the economy.

US and Chinas Capitalism impact on Economic Growth

Chinas capitalism is different from the United States since it practices state capitalism. The government controls the economy in a vertical economic structure. At the top there are monopolistic state companies which control the key industries while at the lower end, the government has allowed the state companies to face private competition.

The state controls the petroleum and natural gases, electricity and power, banks, transport and information technology industries. The trade liberalization policies adopted by the country especially when the country joined the WTO in 2001, caused a lot of expansion

in private competition at the lower ends which caused high demand of the products sold by the state owned corporations in the key industries. The structure combined with labor abundance and openness has helped the state corporations to perform better than the non-state owned corporations.

The vertical structure enables the country to increase its economic growth despite the disadvantages attributed to state controlled capitalism. State capitalism has caused the country to perform well as its GDP rose pushing the country from position six to position two in the world. In the period 2001 to 2011, the GDP had an average growth rate of 10.5%. The United States operates on a political system of free-market capitalism.

There is high liberalization of the economy with competition being highly encouraged. The government only interferes when there is a need to do so. The free market structure has caused the economic growth of the country to increase. There has been increased innovation, research and development that have positively affected the GDP. However, there are dangers of free market economy as corporates may take advantage of investors.

Due to unethical practices, the United States faced a financial crisis that forced the government to come up with economic stimulus to help these companies and ensure that individuals are still able to live their lives comfortably. There had been declining employment, business investment and personal consumption therefore the economic stimulus really helped the country. The financial crisis did not affect the Asian countries. It mainly affected the countries in the western world.

Internet impact on US and Chinas Economic Growth

There is a lot of control on internet access in china by the government and there have been concerns on the adverse effects of these actions on the economy of the country. The people are only allowed to access the internet sites that they need. The strategy is meant to protect the people from outside influences that would cause the people to challenge its leadership. The main national party, the Chinese Communist Party wants to enhance the countrys national sovereignty.

The internet restriction has not had high adverse effect as the country implemented an open door policy in economic activities that caused the country to grow economically. The country became more involved with the internet in the 1990s and registered its use in 1994. Chinas use of the internet has increased and in 2008, it replaced the United States as the biggest internet user in the world.

The country has enjoyed the benefits of internet technology as they have global accessibility to conduct their businesses. The telecommunications and internet sector has grown tremendously contributing highly to the countrys economic growth. The censorship on the internet encouraged the development of indigenous IT development. The censorship has therefore not discouraged the development and growth of information technology.

In the United States, the internet is not restricted in any way and the people are able to access all sites and get the information that they want. They are therefore able to question the government and leaders on the economic decisions that they make at a particular time. The leadership is put to task to explain the economic decisions they have taken. Internet freedom helps in protecting individual and human rights. There is however certain income that America gets that China may not get through the internet through internet censorship.

In America with the internet freedom given to the users, in 2011, it was noted that 247.2 million people spent time on the internet which is double the amount of people in 2010. These people spent an average of 81 billion minutes on social networks and blogs. A lot of Americans transact online, purchasing goods and services with a high percentage of the products promoted through the blog sites and social sites.

In the United States, it was noted that internet activity accounted for 4.7% of the GDP in 2010, which is approximately $68.2 billion. The internet therefore contributes more to the national economy than industries such as information and technology, education, agriculture, construction and recreation.

5% of all the countrys retail activities are conducted over the internet. In China, on the other hand, in the period 2004- 2009, the internet contributed 3% to the countrys GDP which is lower than the 4.7% of US internet contribution. The United States has also put appropriate measures in place to ensure that information technology in the country grows in order to contribute to the overall economic growth. There have been substantial innovations in the information technology sector.

Personal Freedom impact on economic growth

The censorship of the internet and control of government in businesses has caused scholars to study the impact of personal freedom on the economic growth of a country. Are the countries with more personal freedom wealthier than the less free ones? There was a study carried out on 150 countries to test this hypothesis.

The 150 countries were divided into four categories of free, mostly free, mostly unfree and repressed countries. The researchers were looking at variables of freedom as level of government intervention, level of property rights and level of foreign investment barriers. The variables which would be assessed to assess the economic growth were inflation rate, balance of the current accounts and the gross domestic product. For a free country, there would be little or nil government intervention in business and the economy.

To determine the government intervention, the researchers also looked at the share of government ownership of the businesses and the percentage of government consumption in the economy. In looking at property, the focus was on whether the private property was legally granted or forbidden by the government. Does the country have few barriers to foreign investments or the barriers are quite high?

Inflation and balance of current account were used as a control as they influence GDP and the interest in the study was the impact of personal freedom on economic growth. The data for the analyzed countries showed that the countries with more personal freedom had a higher rate of economic growth. In choosing to restrict personal freedom, china was reducing its rate of economic development.

Furthermore, of the 25 competitive countries as ranked by the World Economic Forum, it was noted that 80% of the countries were in the free countries category.

Democracy impact on economic growth

Another concept that has interested scholars is democracy and its impact on economic growth. United States is a democratic country while China is under authoritarian rule. Democracy has been noted to have a significant positive effect on economic growth.

An analysis of the effects of democracy on economic growth was undertaken which focused on four countries. The four countries chosen were China, authoritarian rule, America, democratic rule, Botswana, democratic since the time it attained freedom and

Chile is classified as intermittently democratic. The researchers were interested in the impact of democracy over a relatively long period of time. The period chosen for the study was 1950-2000. The GDP was found to have a significant positive relation with democracy. It increased significantly as the countrys political democracy increased.

The countries that have experienced high levels of industrialization in the last 50 years have been located in Asia. The Asian countries were Singapore, Thailand, Philippines, South Korea, Taiwan, Indonesia and Malaysia. However, for the economic development to occur, the countries had to transition from socialist, closed economies to more democratic and open societies where foreign investment and market competition was encouraged.

They also instituted political reforms that increased political and personal freedom and with these actions, the countrys political growth has continued to expand. There have been higher levels of domestic consumption and the services industries have matured. In analyzing the countries that are politically unfree, it is noted that aside from the oil producing nations, all the other countries GDP are at lower levels compared to the free countries.

China is growing at a very fast rate however it would grow at even a faster rate if it increased the personal and political freedom of the people. The United States on the other hand should have strategies to deal with the challenges it is facing economically. It has however put great systems in place such as internet accessibility, personal and political freedom that will enable economic growth to continue and offer stability.

Bibliography

Gerring, John, Philip Bond, William Barndt and Carola Moreno. Democracy and Economic Growth: A Historical Perspective. World Politics 57(2005): 323-364.

Li, Xi, Xiuwen Liu and Yong Wang. A Model of Chinas State Capitalism. Social Science Research Network Working Paper (2012): 1-65.

Minteh, Binneh. Internet Censorship and Economic Growth in China. Global Vision Institute Working Paper (2011): 1-14.

Scissors, Derek. The United States vs. China- Which economy is bigger, Which is better. The Backgrounder 2547(2011): 1-10.

Tisdel, Clem. Economic Reform and Openness in China: Chinas Development Policies in the Last 30 Years. Economic Analysis & Policy 39, no 2, (2009): 271-294.

Choice

I have always had a personal interest in business and economic issues ever since I was a teen. Therefore, it occurred to me that through economics (as a field of study); I could be able to understand many contemporary and real-life economic issues. From a broad perspective, I chose economics because of the urge to have a better overview of our general business and economic issues (Blaug, 2007, p. 29). I chose economics because of the need to answer the basic questions that revolve around economics as part of our lives.

This is because we need to know the goods and services that are supposed to be produced, how they will be produced, and for whom they are being produced (Blaug, 2007, p. 31). Economics is an important field of study because it has been growing as time goes by and that is why I felt that I should be part of this revolution. I have always wished to become a professional economist and that is why I chose economics as my field of study. I developed this interest after watching different economic debates on TV when I was a teen. These debates made me develop a positive interest in economics and business issues.

My environment and where I grew up has also been instrumental in influencing my decision to choose economics as my preferred field of study. Although we were not poor, our neighboring estates had some instances of poverty. Because of this abject poverty, I saw the need to understand how the economy works. I was curious to know why poverty still exists in the modern industrialized world. Also, my parents always taught me to be industrious as far as the creation of wealth is concerned. This field aligns with what I would like to do in the future. I have always asked myself if there is a better approach that we can use to reduce poverty and ensure that everybody is living a decent life (Eliot, 1986, p. 14).

I also chose economics as my field of study because it will enable me to learn better ways of maximizing utility about my budget constraints. This is because we will always try to maximize utility in whatever situation that we find ourselves in. It also occurred to me that through economics, I will be able to understand why we have rich and poor people in our society (Bayles, 1981, p. 17). This is a reality that we have to face as we are not equal in a normal society.

Economics is a broad field with diverse and distinct aspects that need to be understood for our general sustainability (Blaug, 2007, p. 32). This is because it is part of our daily lives as it shapes the way we live together as a society. Such complex aspects need to be understood and instilled in our minds as a way of improving our general wellbeing. Through economics, I will be able to understand why we have inequalities in our society. No other field of study other than economics could make me understand the whole aspect of inequality in our society and that is why I saw it convenient.

Wholesomely, I chose economics as my field of study to understand various market failures in our society. This is because there are various market failures with underlying reasons behind them (Blaug, 2007, p. 24). In this case, I wanted to know why we have market failures in our society/economy, and if there is a better way then this can be corrected. I chose economics because I find it relevant to our society. I have always loved to learn about our economy, banking, trade, and various aspects of the business. This has made me like economics because it applies to many real-life issues and situations in our lives.

Professional goals

My professional goal as an economist is to apply economic aspects to real-life issues and situations. In this case, I should be in a position to relate economic theory with practical issues in our economy. This is because economic theory aspects affect us in our daily lives (Blaug, 2007, p. 24). Through this, I will be able to understand how they work and the reason behind such aspects.

Economics as a field of study should also enable me to demonstrate and portray a professional demeanor in my daily undertakings. In this case, my professional goal is to ensure that I carry out myself in a more professional manner. Every profession has its own rules and principles that are supposed to be adhered to (Corfield, 1995, p. 18). That is why I will always ensure that I carry out myself within the expected professional code of conduct and ethics.

I also have a professional goal of being able to speak and write effectively as far as economics is concerned. In this case, I will be able to go about my activities with confidence. In a broad perspective, everybody should be comfortable in his profession. Another professional goal is to explain the basic principles and concepts of economics. This is because various complex economic aspects need to be understood as far as the profession is concerned (Blaug, 2007, p. 36).

Also, I will be meeting diverse and distinct problems that need a proper understanding of economic aspects. I also have a professional goal to become a critical thinker. This is far as various economic problems are concerned. Because of the ever-changing business trends and environment, one should be a critical thinker for success (Bayles, 1981, p. 28). Also, my goal is to poses integrative problem-solving skills. This is because economic problems keep on changing as time goes by and one should have good problem-solving skills to succeed.

My main aim of taking economics as a profession was to solve various economic problems in our society. In this case, my goal is to ensure that I have the necessary problem-solving skills that will effectively deal with any emanating problems and issues. I have a goal to ensure that I demonstrate an appreciation of the power of economic reasoning. This is because there is some power behind economic reasoning that needs to be understood by everybody as far as economic issues are concerned (Blaug, 2007, p. 36).

My professional goal is to analyze various social issues and problems. Such social issues and problems might relate to a specific group or individuals and should be given a professional approach. This will be enhanced through the explanatory power of various trade-offs and incentives (Eliot, 1986, p. 18). From a broad perspective, I feel that I should be able to tackle different challenges that come about as far as economics is concerned. I also have a professional goal to identify different significant factors that involve uncertainties. This might be brought about by incomplete information and various competing interests in society.

Suitability

Economics is a good field of study because it has different interesting aspects. It will give me a good opportunity to advance my career as an economist. It is the best field for me because I will be able to understand how economies make products and ensure that they are distributed to other members of the society (Blaug, 2007, p. 41). Through economics, I will have a better overview of different aspects of production, distribution, and exchange.

I feel that economics is a good field because I will be able to apply various economic concepts to real-life situations and issues. This is because most of these aspects have an impact on our daily lives and activities. Because economics is a wide field, I will have a good opportunity to work in various capacities. This can be in forecasting, planning, advisory capacity, and the making of different policies that have a direct and indirect impact on peoples lives (Blaug, 2007, p. 36).

Various organizations employ economists in a wide range of duties and responsibilities. These organizations can be unions, think tank groups, finance and insurance companies, corporations, and industrial firms. I also think that economics is a good choice for me because it will enable me to have a good theoretical insight on various economic aspects and issues that affect our daily lives in society.

From a broad perspective, economics is a good field for me because it will help me to understand various aspects of poverty. I have always been curious to know why we have high levels of poverty in our society and this field will give me a good opportunity to understand these aspects (Corfield, 1995, p. 16). Economics is an interesting and good field because of various business interests that have developed as time goes by. These interests have been brought about by economic competition between different countries.

It is the best choice for me because it is relevant in our daily lives. As much as I might be doing it for professional gains, it has various aspects that apply to our daily lives. Because economics has a role to play in our lives, I will be able to have a good understanding of distinct and diverse issues (Blaug, 2007, p. 44). For instance, we all strive to maximize utility on various issues and through economics, we can always settle on the best option. This is the best field for me because I will be in a better position to respond to various societal problems that might seek immediate intervention and solutions.

Every society has its economic problems that need to be understood and addressed. I have always wanted to get a good understanding and overview of why we have inequalities in our society (Eliot, 1986, p. 28). Therefore, economics will give me a good overview of the distribution of resources. This will enable me to understand why we have extremely rich and extremely poor people and what can be done to reduce the gap between these two groups.

Classes and lectures

I have gained a good knowledge of economics as a professional field after passing through various classes and lectures. First of all gained knowledge in economics from business classes. These classes enabled me to have a good understanding of various economic aspects that need to be differentiated from normal business aspects and issues. This is because economics is almost related to business and can be easily confused if not well understood (Blaug, 2007, p. 46).

Also, I have passed sociology lectures that enabled me to get a good overview of our society. Economics is directly related to sociology and needs to be understood as it affects every individual in the society (Blaug, 2007, p. 17). After understanding that there are various aspects of our society, I was able to gain knowledge in economics. This is as far as wealth distribution is concerned in our daily lives and undertakings.

As far as the whole aspect of economics is concerned, I also attended introductory classes in economics. These introductory classes enabled me to understand various aspects of economics as a subject and field of study. It should be known that people have not been able to understand the various dynamics of economics. These introductory classes enabled me to understand why we need economic theory in our daily lives. In this aspect, I was able to understand different and diverse building blocks of economics.

Professional classes enabled me to understand economics as a professional field. This is because various issues need to be clearly understood before one can settle on a specific profession (Corfield, 1995, p. 19). Therefore, professional and career classes enabled me to re-evaluate myself as far as my professional pursuits are concerned. In a broad perspective, economics borrows heavily from various disciplines that need to be understood to have a good insight on economic aspects.

Ability and experience

Everybody has his ability and capabilities that will enable him to be comfortable in a given profession. As far as this field is concerned, I can give issues and aspects of a positive and well laid out overview. This is because economics needs proper attention and focus for one to succeed in the profession. I am a critical thinker and this will enable me to have a good insight into various economic dynamics. Critical thinking is very important as it enables one to interpret various aspects that might otherwise appear complex.

I also can multitask and this is necessary for a successful career as an economist (Blaug, 2007, p. 17). Economics is a diverse field and might demand high multitasking skills to solve various problems. This is because some of these problems might need various interpretations of success. Also, I have problem-solving skills that are needed in different economic scenarios that might be somehow complex. Because of the ever-changing business and economic environment, there are new issues that might arise now and then.

Because of this, I can get along with others and this will enable me to be up to date with various emerging issues. I can communicate well with others. This is as far as writing and listening to others is concerned. Therefore, I will be able to communicate my opinion without any misunderstanding as far as the profession is concerned.

My experience in economics as a field has taught me that various distinct and diverse issues need to be understood for sustainability in the profession. Therefore, one should be a critical thinker to understand these issues without any problem. In this case, proper attention should be given to all economic aspects and disciplines as each one of them has a role to play in the field (Blaug, 2007, p. 17). This field keeps on changing as time goes by because of technology and globalization. As a result of this, there have been new and emerging trends as far as the field is concerned.

In my statement, one needs to be up to date with new issues that relate to the field of economics. This is because globalization has brought about a new approach to the whole aspect of economics. In this case, all economists should be ready to adjust to these new and emerging realities in the profession. The profession needs a lot of flexibility and adaptability (Blaug, 2007, p. 6). In this case, one should have the ability to manage and deal with multiple priorities. This enables an individual to set priorities right and adapt to different changing conditions in the field.

Examples of professional activities

I have been attending various training workshops that will help me to shape my profession as an economist. This is because such workshops will help me to be up to date with new and emerging issues. I will be able to keep pace with various economic aspects that relate to globalization. Initially, I used to listen to interviews with various successful economists. This enabled me to know the challenges that one has to face as an economist (Blaug, 2007, p. 6).

In the process, I was prepared to face any challenge or problem that might come about as far as the profession is concerned. Reading journals and newspapers has enabled me to be up-to-date with what is going on in the field of economics. This will also enable me to know the way forward as far as the profession is concerned. My family, especially my father, has been challenging me on real-life economic aspects like price changes. This has forced me to continue being flexible in coming up with the right answers and solutions to real-life economic issues (Blaug, 2007, p. 9).

My friend has been encouraging me to attend various economic debates as time goes by. We have attended five economic debates that have enabled me to understand new and distinct opinions. This has broadly shaped my profession as I have been able to understand the basis of different arguments in economics (Blaug, 2007, p. 15). Such debates have built my confidence to argue well as far as my opinion in economics is concerned.

Our professional body has been organizing forums and discussions where we can be able to give our opinions as far as contemporary economic issues are concerned. These forums have been occasionally organized whenever there is an economic problem that needs to be attended to. Also, we have always carried out diffident research activities to find solutions to diverse problems and issues (Blaug, 2007, p. 21). Economics is a wide field and therefore needs a lot of research to set records straight. My family members have been supporting me financially to undertake different research activities as time goes by.

This will enable me to understand new and existing aspects and issues that have not been exploited as far as economics is concerned. In the future, I will enroll in professional courses to comply with the set professional code of conduct and ethics. Such professional activities will enable me to achieve my professional goals as an economist (Corfield, 1995, p. 11).

Reference List

Bayles, M, D. (1981). Professional Ethics. California: Wadsworth.

Blaug, M. (2007). The Social Sciences Economics: Growth and development. Chicago: University of Chicago Press.

Corfield, P, J. (1995). Power and the Professions in Britain: 17001850. London: Routledge.

Eliot F. (1986). Professional Powers: A Study of the Institutionalization of Formal Knowledge. Chicago: University of Chicago Press.

Introduction

In our globalising world massive cultural and sport events are extremely popular. They always attract large numbers of fans and tourists. In order to schedule a sport event such as the Olympic Games or World Cup in football a series of procedures is being conducted. Several countries bid for the tournament and then a special committee with the experts and official representatives of the international sport associations determine who has the best chances and through the procedure of voting establish the winner. This country will become the future host of the big event.

Normally, such competition as the World Cup in football is arranged beforehand in order to give the host country all the time necessary for the preparations of the infrastructure. The period of time that is given to the host country for all the construction building and arrangements is seven years. Of course, a massive sport event always requires a lot of effort.

The stadiums need to be built or renovated; the hotels have to be ready to receive big numbers of visitors. The training bases and houses for the players need to be prepared. The country has to count and divide the funds and capitals its leaders will be using for the building of the infrastructure. If everything is done right, the popularity of the event, tourists and fans, all the media and sponsors will create massive interest in the tournament and this is how the host country gets to receive a big income, so that the costs spent on the preparations will be outweighed by the benefits from the event.

My Perspectives

In the contemporary world every massive cultural or sport event is surrounded by multiple rumors, scandals and gossips. The world has observed that with the winter Olympics in Sochi, London, Salt-Lake City, with the Eurovision events every spring, with the World Cups and Euro Cups every other year. The World Cup of 2022, which is currently scheduled in Qatar is the center of lots of arguments and discussions due to some of the severe violations and issues of social, economic, political characters.

The previous World Cup in South Africa was also criticised in many aspects during both the preparation and the actual competition. The Cup that is currently going on in Brazil was not an exception. The preparation for the event was accompanied by criticism of the countrys political and economical systems. Besides, many travelers were worried about the climate in Brazil and its dangers for the tourists.

It is a well known fact that the population of Brazil suffers a massive gap between the rich and the poor. The slums of the biggest cities are separated from the luxurious central districts by tall fences. The difference between the rich and the poor classes of the country is immense. This problem became even more worrying when the preparation for the World Cup resulted in mass protests of the citizens of the country for various reasons.

The government of Brazil has made a promise that no public capitals would be involved into the process of preparation of the infrastructure. Yet, the protests caused by the raising prices have demonstrated the opposite. In fact, the countrys parliament started to spend public funds five years ago; this means that they broke their own promise after only two years. This Cup is the most expensive one in the history of football; the organising committee spent over a dozen billion dollars on the tournament.

Political side of football is always revealed when a certain team wins or loses. The fans and masses immediately find the ones to blame in the negative outcomes and the people to greet in case the result was positive. For some reason, in many cases the people to blame are various political and cultural groups. The blames cause a confrontation, which always creates a tense atmosphere in the country and adds to the existing ethnic conflicts and contradictions. The one incident of this kind that I remember is the heated discussion that followed the drawing procedure and the show that accompanied it.

The whole ceremony was very colourful and interesting to watch, it involved traditional Brazilian dancers and performances. The hosts of the ceremony soon became targets of mass dissatisfaction of the citizens of Brazil. The publicity accused the organisers of the drawing procedure in discrimination. It turns out that initially Lazaro Ramos and Camilla Pitanga, the famous Brazilian actors and people of colour were suggested as the hosts.

Yet, the final decision of the organising committee assigned a top model Fernanda Lima and her husband Rodrigo Hilbert as the hosts. Both of them have white skin. The audience did not like this choice, because Brazil is the country with a lot of ethnic groups. In fact, the majority of the citizens of Brazil are not white. Another massive confrontation occurred after the well known match when the national team of Brazil lost to their rivals from Germany with a humiliating score. This caused waves of aggression and disorders in the streets of Brazil.

The strikes in the streets of Rio de Janeiro were still going on days and hours before the start of the event. The crowds of citizens caused huge traffic jams. Besides, the country was reported to be late with the preparation of the stadiums and infrastructure. All of these facts were threatening to turn Brazil into a nightmare for the tourists. The approximate numbers indicating the income Brazil is expected to have after the tournament from the tourism only count over three billion US dollars.

This number includes all the money that will be spent by the tourists for travelling around the country, hotels and accommodations, visiting Fan Fests and the games. Besides, the promotion of tourism in Brazil during the World Cup is going to help to raise the level of income and number of visitors coming to the country in two years, when Rio will be hosting the Olympic Games. These two popular sport events will definitely impact the popularity of the country for the tourists from all around the world. The famous prejudice that Brazil is a dangerous place with lots of diseases and gigantic poisonous bugs may finally be defeated.

Other Opinions

The mass media were filled with all kinds of rumors about the situation in the cities of Brazil before and during the World Cup. The tournament has revealed many issues Brazil is currently dealing with. First of all, the economy of the country is very weak. In fact, it is one of the weakest on the whole territory of Latin America. Of course, the preparation for a large event such as World Cup in football caused a lot of disorders due to the increased economical problems.

The biggest mass protests of the citizens of Brazil happened a year ago. The rates of dissatisfaction by the amounts of money spent by the government for the organisation of the tournament reached their peak last summer. Five thousand Brazilians came out to the streets protesting against the raise of transit fare, which became twenty cents higher (June 2013 Uprisings in Brazil n. d.).

Even though the countrys government officially spent over thirteen billion dollars on the preparations, the stadiums were found still lacking some of the seats on the first days of the competition. The airports were not ready and the weather proved it. The flow of arriving tourists and fans was nearly washed out by the flow of rain water (McShane, 2014). The strikes and street fights between the police and drug traffickers were still going on days before the Cup.

Tourists reported that the level of organisation was quite low, and everything looked like it was prepared in haste (Brazils 2014 World Cup: A Tourist Nightmare? 2014). Some of the visitors met the protesters of the Cup in the streets holding signs saying that they should not return to Brazil. People are worried about their security even though there are many policemen on every street corner. The level of criminal activity in the country is announced to be very high.

Conclusion

Based on the information available from the news and the Internet the World Cup in Brazil seems to have brought a lot of troubles to the countrys citizens. They have been unhappy with the way their political leaders are dealing with the preparation for the event. Numerous strikes and protests are the demonstration of the level of instability in Brazil. The Cup served as a revelation for the worlds society, it opened peoples eyes on the corrupt government of Brazil and on the growing gap between the rich and poor social classes in the country.

Political and economical situations in the cities of Brazil are very bad; this causes a high level of criminal activity and aggression among the citizens. As a result, the tourists and visitors are afraid to walk the streets of the cities; the rates of theft are negatively impressive. Besides, the tourists report various disorders and strikes still happening in various places of Brazil. Moreover, the general level of preparation for the sport event is indicated as quite low, especially knowing how popular football is in Brazil.

The infrastructure was not ready up to the very last moment. The opening game of the World Cup was expected to start on a stadium that was still being built and had some of the seats missing. All of these facts demonstrate that the countrys political leaders exploit its resources and use capitals for their own needs and purposes without caring about the discomfort caused to the citizens, especially to the prevailing poor and working classes. This countrys political system requires serious changes before another big sport event comes in two years.

Reference List

Brazils 2014 World Cup: A Tourist Nightmare? (2014). Observers. Web.

McShane, L. (2014). 2014 World Cup: Fans in Brazil Greeted with Construction Woes, Political Unrest as Host Country Scrambles to Avert Disaster.

The June 2013 Uprisings in Brazil. 2013. Web.

What are some of the differences between the population policies of China and India?

Before the establishment of the peoples republic of china, there already was a high birthrate. According to Sreenivas (2006), between 1840 and the establishment period, there was a population increase from 410 million to 540 million. The statistics indicated an annual increase of 1.19 million, with an annual growth rate of 2.5%. Government-supported socialist opinion viewed rapid population growth as an indication of development and prosperity.

The China government, therefore, instituted some improvements in the social and economic aspects of the country, which led to a reduction of mortality rate. Later on, the Chinese government projected a major threat to national food security and declared war against population increase. The policies used in population control included the introduction of Contraceptives, inducement of abortion procedures, sterilization of the male gender, and birth control regulations, which were intended to support the zero growth objective (Eager, 2004).

In India, on the other hand, to control population increase, the government implemented family planning, permanent sterilization, and the introduction of intrauterine devices (IUDs). They were not successful as anticipated due to poor training of technicians, poor medical screening of patients, cost of some of the exercises, information asymmetry, hesitation among the general population to accept the chosen methods of birth control, and cultural difficulties. Similarly, China encountered the same difficulties during policy implementation (Eager, 2004).

The difference between the policy in China and India is that India attempted to keep their family planning programs more voluntary but with no emphasis on gender equity and education. Contrary wise, in China, the family planning programs were forced on people. The government though advocated gender equity and initiated awareness programs to educate the mass on the policies (Chai & Roy, 2006).

Indias population is expected to overtake that of China within the next decade. What differences between these two nations could have contributed to this outcome?

The population of India is expected to overtake that of China within the next decade. This phenomenon is facilitated by the fact that China supports the use of abortion as a family planning method. Abortion is a hazardous practice that has potentially fatal consequences. The population of China is a result, subject to less birth rate and more women mortality rates. The Chinese government used the incentive-disincentive family planning method as opposed to one-time sterilization in India.

The incentive-disincentive method effectively facilitated birth control by rewarding and assisting families. It, therefore, means that in the next decade, other factors held constant, there will be low birth rates and high women mortality rates (Chai & Roy, 2006). The situation will rapidly reduce the population size in China, contrary to that of India.

What are the characteristics of those who migrate to urban areas? What positive and negative effects do their leaving have on those who remain?

According to Schrank (2000), urban migration is the process of moving from less developed regions to more developed regions. More developed areas are referred to as urban areas, while less developed areas are referred to as rural areas. The most likely migrants to urban areas are the young, better educated, risk-tolerant, less responsible (no family), and entrepreneurs. Schrank (2000) states that exercise relieves the community of economic and moral burdens. The exercise is disadvantageous to the rural community members because they lose the young, educated, and fresh minds that have the potential of transforming the welfare of the community members.

The rural communities also lose energetic people, a situation that further impedes the rural economic development. According to Tobi (1989), urban business manifests itself in the following ways; less developed areas suffer from insufficient spending on education and health care compared to the population size. The inequalities between these areas lead to the migration of skilled people from rural areas to cities. In general, urban business is the inequality, in terms of resources, between the urban and the rural regions.

Urban business causes unequal resource distribution between the rural and the urban regions. That is, more resources tend to be allocated to the urban regions than to the rural regions. Urban areas have better infrastructures (roads, buildings) compared to the deteriorated infrastructural situation in rural areas. People in rural areas are forced to pay higher levels of national tax comparative to the levels in the urban areas. Urban bias is characterized by price twist, a condition that results in double price payment as compared to the normal market price (Tobi, 1989). For example, the comparison of the state of the art infrastructure available in New York City and those in Texas ranch sites would be an insane attempt.

How did the rural-urban migration process work for the rapid growth in China as compared to other comparable densely populated developing countries such as India, Bangladesh, or Pakistan?

Rural-urban migration leads to population influx in urban areas. The availability of both skilled and non-skilled labor is increased. The situation has a long-term effect of reducing the cost of labor, thus reducing the cost of labor-intensive products. The movement increases the levels of production, thus leads to economic growth (Angotti, 1993). According to Chai & Roy (2006), Chinas economy has been growing at an approximate rate of 9% per annum between 1978 and 2008.

This rapid growth is attributed to a huge amount of investments made in various China towns like Hong Kong. The China government through its policy reforms facilitated rapid growth. Chai & Roy (2006) asserts that China majorly participated in export trading. The policy reforms also paved way for economic activities such as privatization of public sectors and partnerships with various potential stakeholders. More importantly, it should be noted that the migration of people from the west led to an increased supply of labor. The movement also brought rich foreign expertise that played a crucial role in the development of China.

References

Angotti, T. (1993). Metropolis 2000: Planning, poverty and politics. London u.a: Routledge.

Chai, J. C. H., & Roy, K. C. (2006). Economic Reform in China and India: Development Experience in a Comparative Perspective. Cheltenham: Edward Elgar Pub.

Eager, P. W. (2004). Global population policy: From population control to reproductive rights. Aldershot, Hants, England: Ashgate.

Schrank, A. (2000). Urban bias, hinterland response: Social organization and export diversification in the Dominican Republic.

Sreenivas, T. (2006). Service sector in Indian economy. New Delhi: Discovery Publishing House.

Tobi, D. (1989). The relevance of Liptons urban bias thesis to Nigeria: A critical analysis. Ibadan: Nigerian Institute of Social and Economic Research.

The article under consideration is dedicated to the root causes of the U.S. economic crisis, and possible ways for recovery (Brown, and Lundblad 42). The authors Gregory Brown and Christian Lundblad, professors of finance, suppose that the root cause of the economic crisis in the United States was not the collapse of the housing market, as many experts tend to think. The subject of investigation is the research of possible causes which led to the economic collapse and the most appropriate ways to stimulate the national economy for future development. In a conclusion, the authors present the possible way to stimulate the economy: investment in innovative technologies, education, and job training (Brown, and Lundblad 42).

The article describes the root causes of the financial crisis in the U.S. and possible ways to solve the problem. Taking into account the urgency of the topic and its intelligibility, the paper may be used for the courses of finance and economy.

The authors clearly state the hypothesis that the main cause of the crisis is excessive consumption and prove the statement applying to statistical data.

The article under consideration was taken from the financial journal and was appropriate for analysis because it had the majority of features necessary for papers of this type.

The structure of the article is defined by its content and purpose. Brown and Lundblad used statistical data to support their ideas and the results of the investigation.

The authors emphasize that the results of the investigation could be different from actual data because of unexpected factors.

On the ground that the paper is of theoretical specificity, the chosen method, data collection, and analysis can be considered as an optimal decision.

The work by Brown and Lundblad is structured logically and reflects in full statistical analysis and conclusions of the paper.

The findings of the research are logical and expected because the authors developed a probative line of arguments.

Brown and Lundblad apply for unquestionable factual data by the Congressional Budget Office which highlights the internal validity of the paper.

The conclusions of the study by Brown and Lundblad are consequential and grounded by solid argumentation which leads to construct validity.

The statistical conclusion does not give rise to doubt as well. The authors use reliable statistical data which predetermined the result of the investigation.

The illustrations of the authors ideas perfectly match the content of the paper.

Brown and Lundblad conclude that the main cause of the crisis is excessive consumption and state that the best way to improve the situation is through the introduction of innovative technologies and requalification.

The researchers findings are objective and corroborated by reliable facts.

Brown and Lundblad suggest possible areas of investment that could be beneficial for the national economy as a further area for research which is quite viable considering the purpose of investigation.

The authors suggest possible practical ways (innovative technologies and requalification) to stimulate the national economy. Still, Brown and Lundblad do not introduce any new knowledge. The authors of the research did not identify potential threats to external validity. The authors did not identify the limitations of their study in the paper.

There were no problems in the perception of the article content. The information is rendered popularly.

The article by Brown and Lundblad is an example of logically built argumentation on the basis of reliable statistical data. Still, the authors did not mention potential threats.

Works cited

Brown, Gregory W., and Christian Lundblad. The U.S. Economic Crisis: Root Causes and the Road to Recovery Return to Prosperity Requires Reversal of Excessive Consumption, Low Savings Trends. Journal of Accountancy 208.4 (2009): 42.

Introduction

Quigley (1998, 128) acknowledges the heterogeneity and diversity of cities within a given economy. He argues that cities in their diverse nature contribute to economic growth. The distinguishing characteristics of [urban cities have a significant contribution to modern economic growth. The production capacity in the economy is improved by the internal diversity of the urban economies. The article reviews the part that the traditional scale economies and diversities in the improvement of the economic growth. Quigley argues that traditional economies and their diversions enhance the effective utilization of the shared inputs in the economy and also reduce other costs related to the consumption and production of products. He also presents that there are improved efficiencies related to the operations of the law of large numbers in the metropolitan areas (Quigley, 1998, 129). He also examines the elements of heterogeneity and their role in conditioning economic growth.

Main body

Quigley explains that the study of cities by economists falls into four categories each of which has led to the understanding of the role of various cities in the growth of the economy as a whole. The first period marked the revolutionization of transportation to the urban centers of goods. The location of firms and households within the city was also a big challenge. The second stage formalized the location of incentives within the urban centers. The third period helps us to understand better the cities and this was referred to the New York City. The fourth period is the period of bursts of advancement in understanding the urban cities and their role in the economy.

Metropolitan areas may achieve greater economic growth by mitigating the transaction costs within the economy. This will ease the trade between individuals and cities.

The article generally tries to analyze the modern economic growth to the various characteristics of the cities. The diversity of the urban cities helps improve economic growth because the production of goods and services is made easier. The diversity of the urban cities then improves economic growth in many ways.

The diversity of urban cities helps in economizing the shared inputs to ensure that the inputs are employed at the optimal level. The transaction costs are also reduced in the economy and this makes the economy operate more efficiently. The diversity of the cities is, therefore, a paramount factor that affects economic growth. Diversity should therefore be respected as a factor for growth in the economy.

Conclusion

This article shows that economic growth could be achieved through various factors that define the diversity of urban cities. Urban cities have people with different cultural backgrounds and they define the diversity of the urban city. Different factors also are homogenous to different cities. That is, they share various characteristics that bring harmony within the economy, and therefore economic growth is achieved.

If the cities with different experiences are put together, then the economic growth will be improved because the economy requires diverse knowledge, skills, and capacity to perform its duties properly. An economy made up of cities of diverse characteristics is likely to experience more economic growth than homogenous cities. The diversity of cities should therefore be valued as factor contributing to economic growth.

Reference List

Quigley, J. M. (1998). Urban Diversity and Economic Growth. Journal of Economic PerspectivesVolume 12, Number 21998Pages 127138 US: American Economic Association.

Introduction

Background and rationale for the study

The United Arabs Emirates (UAE) is one of the most prosperous countries in the Gulf Region. The country is characterised by a high level of political and social stability due to its monarchical system of governance. Furthermore, its leadership system has contributed greatly towards the countrys economic growth. The UAE is cognisant of the role of economic integration in promoting economic growth.

Subsequently, Abed (2001, p.30) notes that the country is a member of a number of economic zones such as the Arab League, the United Nations, the Gulf Co-operation Council, and the Organisation of the Islamic Conference. In addition, the UAE has also adopted the concept of free zone as one of its strategies towards achieving its macroeconomic goals.

The Oxford Business Group (2008) defines the concept of free zone as a perimeter within which businesses are accorded a unique trading environment such as an exemption from taxation and custom fields. However, businesses operating in the free zones are required to boost the countrys economic growth by creating jobs, increasing their volume of exports, and promoting diversification by investing in various economic activities.

Over 32 free zones have been established across the UAE, twenty-six of them are located within Dubai, and they mainly cover trade and service activities. The UAE government has nurtured an enabling environment for businesses to operate. For example, businesses operating in the free zones are not subjected to customs, foreign trade controls, and quotas. Furthermore, the government has implemented an unrestricted profit and capital repatriation policy. Foreign firms operating in the free zones have full ownership of their business (Balazadeh 2012).

Free zones have had remarkable contribution in the economic development of the UAE. For example, the zones have attracted quality Foreign Direct Investments (FDI) especially within the private sector, created employment opportunities for the Emiratis, enhanced technology transfer, and promoted the growth of exports.

The UAEs free zones have provided the country with a perfect opportunity to display its development. Furthermore, the country has experienced quantum growth with regard to industrial development (Dubai Information Site 2010). Therefore, the contribution of free zones in the UAEs economic development cannot be underestimated.

Statement of the research problem

The proliferation of free zones in the UAE emanates from the governments effective planning and policy formulation. For example, the UAE government has nurtured an environment conducive for conducting business. Subsequently, numerous foreign companies have established their operations in the region.

The attractiveness of the UAE, especially amongst firms in the private sector, has also improved courtesy of the governments commitment to create a knowledge-based economy. Approximately, 60% of the worlds biggest business organisations are located in the Dubais free zones (HSBC Global 2013).

However, emerging economies around the world are increasingly adopting the concept of free zones in an effort to stimulate economic growth. Some of the strategies that emerging economies are adopting include improving their infrastructure within the free zones in order to improve their competitiveness.

For example, governments are progressively implementing data centres, increasing the size of industrial land and improving logistics together with warehousing facilities in order to meet the needs of different investors (Farole 2006). Subsequently, the attractiveness of the UAEs free zones faces major future challenges.

For these zones to maintain their competitive advantage, it is imperative for the government to recognise the importance of improving the zones structures and competitiveness. Furthermore, the UAE government should understand the challenges and opportunities presented by the prevailing macroeconomic and microeconomic factors. Gaining such understanding will remarkably improve the contribution of the free zones to the UAEs economic development(HSBC Global 2013).

Research objectives

The aim of this study is to investigate the economic challenges and opportunities faced by the private sector and the UAE government in it pursuit to promote economic growth through the development of free zones.

Research questions

A number of research questions will be considered in an effort to attain the aforementioned objective. Some of these questions are illustrated herein.

1. What structures should the UAE government institute in order to improve the competitiveness of the free zones?
2. What opportunities can be derived from the UAEs free zones?
3. What are the challenges faced by firms in the private sector operating in the UAEs free zones?

Limitations of the study

A number of limitations were experienced in the process of conducting this research. First, the researcher was limited by resource availability with regard to time and finances. Subsequently, the researcher was not able to conduct a study on all the 32 free zones established in the UAE. Consequently, the findings from the free zones considered are only representative of the prevailing conditions in the UAE.

Organisation of the paper

This report is organised into a number of sections, which include literature review, methodology, analysis, conclusion, and recommendations.

Literature review

Free economic zones have become a critical global phenomenon over the past few decades. The zones play an essential role in promoting structural reform and economic development in both developed and developing economies.

A study conducted by the Organisation for Economic Cooperation and Development (2002) shows that it is easy to establish a free zone if the necessary government approval is obtained. Goods and services provided by businesses in the free zones are exempted from customs duties. Economies can adopt different types of free zones. Some of these zones include

1. Free trade zones (FTZs)  these are the most prevalent types of the FEZs. Different trade activities including re-exportation, transhipment, and distribution of goods are undertaken in the FEZs. Subsequently, the FTZs can be defined as centres of international trade. Most free trade zones are located in major distribution centres and routes such as seaports, airports, railways, roads, and maritime routes. There strategic location provides import-export companies with a perfect opportunity to improve their operational efficiency (Mankiw 2009).
2. Export processing zones (EPZs)  these zones are also referred to as service and industrial free zones. The zones are specifically designed in order to promote specialised manufacturing activities such as production of different consumer goods like clothing, consumer electronics, textile, and industrial components (Jenkins 2000).

FEZs are an important vehicle in countries pursuit for various micro-economic objectives such as stabilising the foreign exchange rate and promoting employment. FEZs are also essential in promoting attainment of political and macro-economic objectives. Furthermore, FEZs are characterised by preferential application of economic policies defined by a particular geographical zone (Organisation for Economic Cooperation and Development 2002).

The geographical coverage of the FEZs varies from a few hectares to thousands of square kilometres. The zone can also be located within the borders of a country. Malhotra and Papadopoulos (2009) argue that FEZs do not only serve the purpose of promoting free trade.

However, FEZs are also designed in order to protect domestic economy from the adverse effects of the global economy (Guangwen 2003). Corporations, which are established in the FTZs, are motivated by the need to position their businesses in a beneficial location. The FTZs are usually low cost structures.

IBPUSA (2007) asserts that free zones have undergone remarkable growth due to the high rate of trade liberalisation. Most economies, which had previously adopted a closed economic system, are relinquishing their closed trade policies and inclining towards open economic policies.

China is among the emerging economies that have adopted open economic systems by integrating free zones. By 2008, China had established over 213 free zones in over 9 regimes. By the end of 2008, the free zones established accounted for over 47% of Chinas total exports (Carter & Harding 2011).

Free zones explain the spiral economic growth in most Eastern European countries. A number of Sub-Saharan African countries have also derived their economic growth from free zones. In 2009, the region had 101 free zones in which Kenya led with 33 FEZs (International Energy Agency 2005). Free zones are considered to a strong pillar in promoting the UAEs economic performance.

Free zones in the UAE

Free zones have played a fundamental role in enhancing the level of foreign direct investment in the UAE. Most free zones in the UAE provide investors with similar incentives, which include

1. Extended leases
2. Inexpensive and abundant energy
3. 100 percent foreign ownership
4. 100 percent tax exemption
5. Quick approval procedures

The zones function under the Free Zone Authority [FZA]. The body is charged with the responsibility of issuing licenses to firms, which intend to establish their operations within the FTZ. Furthermore, the body has to provide businesses with the necessary support.

Investors intending to establish businesses in the zone can adopt different business structures. Some of these formats include Free Zone Companies (FZCO), Free Zone Establishment [FZE], or subsidiaries of foreign companies.

The FZCO are limited liability companies, which must be owned by more than one shareholder. The FZCOs and FZEs are required to adhere to the rules and regulations set by the free zones. Furthermore, the FZEs and FZCOs must have an average financial capital base ranging between AED 50,000 and AED 1million (Terterov 2006).

Upon gaining legal presence in the UAEs free zone, a particular business entity is required to obtain a license from the FZA and lease land or premises in which it will conduct its operations. Firms operating in the zones are restricted from selling their merchandise within the country. However, they can only engage in domestic trade through a local and registered official agent (Zaman 2011).

Methodology

Research design

The study has adopted both qualitative and quantitative research design. The decision to adopt qualitative research design was informed by the need to gather substantial data from the field. Qualitative research design was considered due to the explanatory nature of the study. Adopting qualitative research design also gave the researcher a chance to carryout an in-depth study of the various issues associated with free zones.

Quantitative research design was also incorporated in order to condense the diverse data collected from the field. Integrating qualitative research design was also informed by the need to ensure that the target stakeholders such as the UAE government and other non-governmental entities understand the studys findings.

Population and sample

In order to develop a comprehensive understanding of the structure, challenges, competitiveness, and opportunities associated with free zones in the UAE, researcher decided to collect data from government representatives and private firms operating in the free zones. Random sampling technique was used in selecting the sample study.

The sampling technique was selected for it is easier and manageable to evaluate a sample when compared to the total population. Simple random sampling technique enabled the researcher to eliminate the element of bias in selecting the respondents. A sample of 200 respondents was selected from the free zones in the UAE. The researcher ensured that the selected respondents were conversant with the operations of the free zones in the UAE.

Data collection

The researcher relied on both secondary and primary sources of data. This decision was informed by the need to improve the reliability of the study. Interviews and questionnaires were used as the main primary data collection tools. Considering the resource limitation in conducting the study, the researcher conducted interviews over the phone. One the other hand, the questionnaires were mailed to the respondents. The questionnaires were semi-structured in nature by integrating both closed and open-ended questions.

Data analysis and presentation

The research questions considered in the study were evaluated and analyzed individually. The analysis was conducted by taking into account the responses from the various respondents considered in the study. Tables and graphs were used in presenting the data collected from the field. Therefore, the researcher was in a position to condense the voluminous data collected.

Analysis

The study considered respondents of different gender and age as illustrated below.

The chart below illustrates the respondents age group.

The core objective of this study is to highlight the economic challenges and opportunities facing the UAE government and firms operating in the regions free zones. The researcher considered a number of aspects, which include

1. Main structures that the UAE government has implemented in its quest to guide business operations within the free zones.
2. Opportunities presented by the UAE free zones
3. Challenges experienced in the UAE free zones

In a bid to understand the competitiveness of the UAE free zones, the researcher sought to the opinion of the respondents on whether the structures implemented by the government promote the free zones competitiveness. The respondents had varied opinions. Ninety five percent (95%) of the respondents said that structures implemented by the UAE government promote FDI within the free zones. Only 5% of the respondents faulted the attractiveness of the free zone structures implemented by the UAE government.

When asked why, the respondents cited a number of issues. First, the respondents cited the absence of taxes, custom privileges, and 100% foreign ownership as some of the core factors that make the UAE free zones most competitive foreign investment destination within the Middle East. The respondents cited the Jebel Ali Free Zone Authority, the Sharjah Airport International Free Zone, Ajman Free Zone Authority, and Hamariyah Free Zone Authority as some of the most attractive.

On the other hand, the respondents who faulted the UAE free zones cited a number of reasons. First, they asserted that companies operating in the free zones are forced to confine their business activities within the zone. Subsequently, their market reach in the UAE is limited. Failure to comply with the set regulations may lead to a fine of more than US$35,000.

When asked the main legal considerations that firms must have in order to establish businesses in the UAE free zones, three main forms were identified. They include FZ Establishment, Branch, and FZ Company. The table below illustrates the core elements that must be adhered to in order to establish a business in the FTZs as suggested by the respondents.

From the above results, it is evident that the UAE limits the type of business structures that can be established within its free zones. Furthermore, the restriction for businesses established in the free zones to sell their merchandise within the stipulated areas hinders businesses ability to achieve diversification.

Free zone businesses are only allowed to rent premises outside the designated areas. The UAE government recently announced its intentions to allow businesses in the Dubai free zone to undertake activities outside the Dubai Free Zone. However, the government is yet to define the parameters within which the business activities will be undertaken.

When asked about the opportunities that can be derived from the free zones, the respondents cited various benefits. 97% of the respondents identified increased foreign earnings, 93% cited Free zones to be a major employment creator and income generator, while 86% asserted that free zones is a major factor in attracting FDI.

On the other hand, 78% of the respondents interviewed were of the opinion that free zones are vital in enhancing knowledge spillover and technological transfer, which in turn promote economic development. The chart below illustrates a summary of the respondents opinion on the opportunities associated with nurturing free zones in the UAE.

Conclusion and recommendations

The study shows that free zones have played a remarkable role in promoting the UAEs economic development. The establishment of free zones has enhanced the attractiveness of the UAE amongst foreign investors. Subsequently, the country has experienced significant growth in the size of FDI. Furthermore, free zones have created employment opportunities amongst the Emiratis, hence increasing their purchasing power.

Fostering knowledge spill over and technology transfer is another major benefit that the UAE can gain from the free zones. However, the study shows that the UAE government has implemented a number of structures, which may hinder the contribution of the zones to the countrys economic growth.

In order to achieve economic sustainability, it is imperative for the UAE government to consider improving the countrys competitiveness. This move will play a fundamental role in attracting foreign and local investment. The government should consider the following.

1. The UAE government should ensure that optimal laws and policies are formulated in order to promote the operations of business within and without the free zones.
2. The government should establish different free zones in order to attract investors from different economic sectors, such as production, manufacturing, and services sectors.
3. The government should also nurture an enabling legal and economic environment in the free zones. Some of the aspects that the business should focus relates to the nature of business structures that can be established in the zones to promote the establishment of different types of businesses.

Reference List

Abed, I 2001, United Arab Emirates; a new perspective, Trident Press, London.

Balazadeh, M 2012, The role of free trade zones in economic development, Journal of Basic and Applied Scientific Research, vol. 2 no.11, pp. 11196-11201.

Carter, C & Harding, A 2011, Special economic zones in Asian market Economies, Routledge, Abingdon.

Dubai Information Site: Start a business in Dubai, Abu Dhabi and Northern Emirates 2010, Green Initiative, Abu Dhabi.

Farole, T 2006, Special economic zones; progress, emerging challenges, and future directions, World Bank, Washington.

Guangwen, M 2003, The theory and practice of free economic zones; a case study of China, University of Heidelberg, Bonn.

HSBC Global: Making free zones work 2013. Web.

IBPUSA: Doing business and investing in United Arabs Emirates guide 2007, International Business Publication, New York.

International Energy Agency: Middle East and North Africa insights 2005, OECD, Paris.

Jenkins, M 2000, Export processing zones in developing economies; theoretical and empirical consideration, Brandeis University, Brandeis.

Malhotra, S & Papadopoulos, N 2009, A comparative analysis of investments climate at free trade zones and host country mainland, Carleton University, Halifax.

Mankiw, G 2009, Principles of macroeconomics, Cengage Learning, Mason.

Organisation for Economic Cooperation and Development: OECD investment policy Reviews 2002, OECD, Paris.

Oxford Business Group: Report 2008, Oxford Business School, Dubai.

Terterov, M 2006, Doing business within the UAE, GMB, London.

Zaman, N 2011, UAE and globalisation: attracting foreign investment, GRIN Verlag, New York.

Abstract

In the last two decades, the world newspaper industry has faced a number of changes in the business environment, which has affected the performance on the global as well as regional or local levels. On a global scale, the financial perspective of the newspaper industry has faced decreasing performance in terms of profitability. In particular, the advertising section has reduced significantly. Nevertheless, the situation in Hong Kong is relatively different. While the global sales rate and profitability of the newspaper industry have declined in the last twenty years, it is worth noting that Hong Kong is experiencing an increased growth rate in the industry. The purpose of this paper is to analyze the overall performance of the global newspaper industry. It will be compared with the Hong Kong newspaper industry. In addition, the paper will analyze how HKET Group used specific business strategies to sustain growth and evade decline in a competitive and declining newspaper industry.

Which factors have affected the profitability of the newspaper industry in general and in Hong Kong in particular over the last twenty years?

The overall performance of the newspaper industry in the world and Hong Kong

In the last two or three decades, the newspaper industry has faced a number of changes in the business environment, which has affected the performance on the global as well as regional or local levels. Nevertheless, the situation in Hong Kong is relatively different compared to other nations in the world. First, it is important to consider the global performance of the industry in the last two decades. On a global scale, the financial perspective of the newspaper industry has faced decreasing performance in terms of profitability. In particular, the advertising section has reduced significantly. Some studies indicate that advertisement is facing a sharp decline, which will reach about 9% by 2015. For instance, statistics have shown that the income from advertising in the newspaper industry has reduced from 35% to 28% in 2012 and is expected to reduce to 25% in 2015. Apart from advertisement, the annual growth rate for sales has reduced from more than 155 twenty years ago to about 1%, which indicates a flat growth rate (Chan & Farhoodmand, 2007).

Nevertheless, the situation in Hong Kong is relatively different. While the global sales rate and profitability of the newspaper industry have declined in the last twenty years, it is worth noting that Hong Kong is experiencing an increased growth rate in the industry. For instance, studies in the country have shown that the annual revenue obtained from newspaper advertising has grown by more than 7% in the last two decades. However, it is evident that the industry is facing a number of threats, including the emergence of tabloid newspapers, the online version of the old newspaper, and online advertisements.

The key factors affecting the profitability of the newspaper industry in Hong Kong and the World in general

From the case study, it is evident that a number of factors have contributed to the changes experienced in the newspaper industry at the global level as well as in Hong Kong. While some of the factors are economic in nature, the majority of changes are due to changes in the social, cultural, and technological aspects of the modern world.

First, the economic environment has changed drastically over the last two decades. In Hong Kong, there was an economic boom, with most sectors growing rapidly since 1990. In fact, Hong Kong experienced massive economic growth in this period, especially due to an increase in international trade and a focus on industrialization. Multinational and foreign organizations are increasingly invested in the country. In particular, European, American, and East Asian corporations have invested heavily in the country since its independence from Britain in 1997. In addition, the simultaneous growth of the Chinese economy has made an impact on the countrys economy since 1995. Based on these facts, it is possible to analyze the newspaper industry in HK from an economical perspective. For example, as the country enjoyed an increased rate of economic growth, the demand for financial and economic news increased rapidly. This created a strong economic niche for print news. In fact, most of the print newspapers and magazines focused on the economic trend, which provided investors, employers, workers, and international and local organizations with a good source of information on the financial potential of the economy.

Entertainment also played an important role in the rate of growth and development in the countrys newspaper industry in the last two decades. As the economy enjoyed rapid growth, the entertainment sector also enjoyed significant changes. In fact, the presence of foreign companies and communities in the country affected the perception of entertainment.

The political changes in the last two decades have further caused rapid changes in the newspaper industry in HK. For instance, after the exit of the British administration in 1997, HK developed an open door policy with China. The two countries became more politically closer than before, which saw the rapid development of the partnership between them. However, it is worth noting that HK maintained her ties with Britain, Europe, Japan, and the US even after the exit of the British administration. As such, the country had to develop a neutral ground in order to maintain its relationships with the west and the east. As a result, most readers preferred newspapers that looked neutral in their reporting, which favored the readers whose standpoints were aligned to one of the two sides- the West and China.

Technological development in HK played an important role in the growth of the newspaper industry in the last two decades. For instance, the emergence of the internet in the late 1980s and early 1990s made significant impacts on the newspaper industry. For example, the internet made it possible for people and organizations to access news within a short time and from a wide source. In addition, the internet made it possible for new companies to develop online blogs and web pages meant for information sharing. It is also worth noting that the internet made information sharing easy and effective, which allowed many people to communicate freely through the new medium. Thus, newspaper companies were forced to rethink their marketing and operational strategies, especially because young readers were preferring internet-based news. This trend caused the print companies to lose their young readers, which complicated the future. Therefore, they were forced to establish online versions of their print versions. Eventually, they were able to tap the benefits associated with online media and added them to the profits obtained from the print version. Thus, most companies that accepted the new technology improved their performance, while those that were reluctant to change faced financial problems.

Question 2: The HKET Group grew through a strategy of diversification and differentiation. To what extend did the strategy of the Group follow the key imperatives of a blue ocean technology?

Response

The Hong Kong Economic Times Group (HKET Group) provides a good example of newspaper companies that attempted to implement advanced strategies to sail through the competitive and dynamic economic environment in the last two decades. The group was formed in 1988 as a writer of the HK Financial times (HKET). In fact, it was formed at the time of the economic boom in the country, which implies that the demand for newspapers was rapidly increasing every year (Chan & Farhoodmand, 2007). In addition, it was the first financial newspaper in the country written in the Chinese language in a similar format as the Financial Times. Within a period of three to five years, the newspaper had dominated the financial and business news industry both in Hong Kong and in China. It became the most famous newspaper for its quality content as well as effective marketing strategies. It has been serving the HK community through the inclusion of various business and economic aspects such as a section on housing, real estate, small business, agriculture, and blue-chip sectors. In addition, it readily accepted and used an IT platform, including an online version that makes it easy for customers to access information within a short time, regardless of their location. The main question is to determine how the company responded to the challenges of moving from the old model (print media) to incorporate a new model based on internet technology and at the same time remain active in the print industry (Chan & Farhoodmand, 2007).

A diversification and differentiation strategy seems to be the most correct answer to this question. This strategy provides evidence of the extent to which the company has used the Blue Ocean strategy to diversify and differentiate its business model to fit two different industries at the same time and within the same space. It is evident that the companys strategy was able to propel it through an economic challenge, which posed various pitfalls. By developing a flexible and scalable business model, the company was able to modify its business with changing economic, technological, and financial environments.

First, the company started as a print service, providing business news in the print version. It was initially produced once per week when it was launched in 1988. in addition, it focused on business news and became the first newspaper to provide clear paginations in the country. Moreover, its initial editing and publishing policy was relatively strict, emphasizing mainly the accurate, impartial, formal, and professional format, with few political news and gossips.

However, with increasing social, technological, and political changes in the country, it was evident that readers were preferring a wide range of information even in cases when business and economic news were involved. It was also clear that if the company continued in its rather rigid model of editing and publishing, it was set to lose its market position. In addition, a few years after it was launched, the internet technology emerged, alongside its dynamism and features that allowed people to access news within the shortest time possible. Thus, diversification was no longer an option but the only way to retain the company in business.

Therefore, the company started diversifying its business model. First, it launched an online version of the print material. It recognized the advantages of the internet boom as an opportunity for increasing its presence, coverage, market, and profitability. This diversification turned out to be an advantage because it was able to retain the young generation of readers who appreciated and preferred the online version while maintaining the older generations that preferred the print version. Secondly, diversification was observed when the company decided to include socioeconomic and political-economic news in both versions. As more and more readers appreciated the political and economic freedom, the demand for news in all fields increased. With both online and print versions, the company was able to obtain the benefits of diversification.

The company involved differentiation strategy by ensuring that its newspaper was a distinguished product that was available in English and Chinese, online and print, and also with financial news incorporated with social and political aspects of the economy. While other newspapers concentrated on one of these fields, HKE had more versions and covered more fields, making it the most preferred and dominant newspaper in the country.

Conclusion

This analysis reveals the factors that made HKE sustain growth and profitability when the global newspaper industry was declining. The company developed a Blue Ocean strategy through both differentiation and diversification. These strategies allowed the company to capture the new demand in the market by addressing the needs of new and unaddressed groups of customers such as online and multilingual readers, foreigners, business, social and political enthusiasts, and other groups.

Reference

Chan, Y., & Farhoodmand, A. (2007). Hong Kong Economic Times Group: Diversification and differentiation. POON series, Asia Research center Journal, 2(1), 1-30.

Abstract

The given work is dedicated to the economic changes of the GCC (Gulf Cooperation Council) countries during the last ten years. The presented analysis is based on the economic efficiency of the countriesmembers of GCC with a use of quantitative data and statistic materials. The changes are shown and explained. The main reasons and factors of changes are mentioned. The member countries are compared due to their primary economic indexes, indicating the tendencies of their economic growth in the nearest future. Overall performance is also presented and explained. The aim of the work was to confirm or deny the fact of positive changes in the wealth of the presented countries.

The GDP growth of the GCC countries over the period of 2005-2009 years (Billion USD)

As we see on the given diagram, most of the GCC countries have positive changes in their GDP, though on a different scale. The lowest GDP over these five years is noticed in Kuwait in 2009 (4,19 billion USD), while the highest was in Saudi Arabia in 2009 (315,48 billion USD) (Trading Economic Statistics, 2015, economic indexes section, para.1).

The GDP growth of the GCC countries over the period of 2010-2014 years (Billion USD)

As we can notice on the diagram, GDP of most of the countries is steadily going up. The lowest index over these five years was in Kuwait in 2011 (-2,4 billion USD), and the highest was noticed in Saudi Arabia in 2014 (744,34 billion USD).

A characteristic of the overall performance of the countries-members

• Having common goals, The Gulf countries manage to increase their performance, cooperating with each other.
• Due to inequality of the countries-members, their contribution to the general result is different.
• Having high indexes, the GCC is considered to be a significant part of European trade system.

A common vision of growth is shared by the GCC members (Beidas-Strom, Rasmussen, Robinson, 2011). It is one of the factors that binds this group of countries together. Some of them possess a long history of national development plans and use it to foresee and create favorable conditions for the future succeeds.

Today the total DGP of the organization exceeds 1,500 billion USD. Though not all countries of the union are equally developed, this index is rather high. Especially regarding the financial crisis the GCC had in 2009 (total GDP about 1.000 billion USD). The tendency has been positive since the year 2000 when total GDP was 375 billion USD. Only in five years after the GCC countries almost made this amount double. The organizations territories are considered as a significant market of export for Europe (Gulf region, 2015). This area consumes 4,2 % of Europes total trade. The GCC territory takes the fifth place on the scale of the largest markets for European products. The resources that countries-members offer for export are mainly mining products and fuel. It is estimated as almost three fourth of European import (Gulf region, 2015). It is known that Gulf countries revenues from export are strongly dependent on incomes from oil products.

As we can see, the GCCs performance is mostly successful for such a small territory.

Factors and reasons for the changes in performance

The success that GCC countries have been having is mostly explained as a combination of favorable issues. The main factors of success are:

• Geographical benefits. The territory possesses significant reserves of oil products, which are now an inherent part of Gulf countries market,
• Effective internal infrastructure. Lately the processes of economic integration, creating common financial institutions have been enforced.

The reasons that elevated the GCC economy are as follows:

• Care about society. Here belong investments in health services and schooling, physical infrastructure development,
• High planning level. The Gulf countries recent strategic documents deal with mapping out future directions of social, governmental and economic progress over the period of the next twenty years, involving fundamental changes.

The important changes that occurred in the life of Gulf members are:

• Obtained wide sphere of action. Arab Gulf union gives much political priority to diversification of economy (Havidt, 2013),
• Changes in productive structure. Non-oil economic sectors have been boosters of GCC countries growth of wealth  8% average over 2007-2012 period (Devaux, 2013).

Reference list

Beidas-Strom, S., Rasmussen, T., & Robinson, D. (2011). Gulf Cooperation Council Countries (GCC): Enhancing Economic Outcomes in an Uncertain Global Economy. Washington, D.C.: International Monetary Fund.

Devaux, P. (2013). Economic Diversification in the GCC: Dynamic Drive Needs to be Confirmed. Web.

Gulf Region. (2015). Web.

Havidt, M. (2013). Economic Diversification in GCC Countries: Past Record and Future Trends. Copenhagen: McKinsey & Co.

Trading Economic Statistics (2015). GDP Annual Growth Rate. Web.