Business-Word Economy VERTICAL DISINTEGRATION Vertical disintegration is to a particular organizational form of industrial production. Unlike vertical integration, in which production occurs with a singular organization, vertical disintegration means that different or several diseconomies of scale or scope have been broken down a production process into separate companies where each will be performing a limited set of activities for a finished product, (Chen and Yongmin 2005). Filmed entertainment was once highly vertical integrated into a studio system only a  few large studios handled everything in production to a theatrical presentation. When the second world war ended, the industry was broken into small fragments, each specializing in a particular task within the division of labour required to produce and show a finished piece of filmed entertainment. Hollywood became highly vertically integrated, with specialized firms who only performed specific tasks such as editing, special effects, trailers etc. Bell system divestiture had a similar impact on a more massive industry later in the 20th century, (Doellgast, Virginia, and Greer 2007). One of the main reason for vertical disintegration is risk-sharing (Holmes and Thomas,…

BUSINESS-WORLD ECONOMY VERTICAL DISINTEGRATION Vertical disintegration is a situation where various diseconomies of scale or scope have broken the production process into different separate companies, each performing a limited subset of activities required to create a finished product, (Chen andYongmin2005). One of the mainreasons for vertical disintegration is to share risk where, in some cases, small firms may be responsive to changes in market conditions. Vertical disintegration is most likely to operate in volatile markets. Business is always looking for new methods to reduce cost and to control the quality of the products and the services the industry provide(Doellgast, Virginia, and Greer 2007).A company can have the ability to create a competitive advantage by integrating different stages of its supply chain and production process into their business.. A firm can be currently vertically integrated into several stages may decide to exit from a specific or particular stage for strategic or cost reasons. In case of technical advances or change in competitive conditions, this may be cheaper for a firm to buy materials from outside suppliers than continuing to self-supply. The…

IMPACT OF FREE TRADE TO DOMESTIC ECONOMY Introduction Free trade occurs when countries remove international barriers on all or certain items and allow the free exchange of products. Free trade is, therefore, a consequence of international trade. A country can access goods and services that it cannot assemble or produce locally through international trade. (Gould, Woodbridge & Ruffin, 2015). Some of these goods and services require constant importation, hence the need for free trade, which makes them affordable to the local industries. “A country can get goods and services efficiently by specializing in activities which the country has a comparative advantage through free trade.”( Gould et al., 2015). Comparative advantage occurs when a person or a country produces something at a lower cost than anyone else providing the same thing. Trade-offs come about when a country increases the cost of a product or service, which is consequently counteracted by reducing the cost of another product or service. A trade-off is essentially a compromise. (Amstel, 2016). In relation to free trade, the U.S. lifts import tariffs for products from another country.…

Global Economy Class Trade restrictions, also known as trade barriers, are policies made by governments to restrict or lower volumes of international trade. Some of the adverse effects of this are reduced import levels, increased prices for consumers, and significant economic losses. The most common reasons often offered in favor of trade restrictions are to cushion upcoming local industries, called infant industries, protection from dumping, and improve deficits in trade. Many countries impose trade barriers to help new domestic industries develop and become competitive and to discourage businesses from moving out. These barriers increase the costs of operations, increasing the overall price of the products or services, and consumers have no choice but to go for cheaper domestic alternatives of different quality. Trade barriers increase the costs of imports, lowering their demand, which makes up for any trade deficits. Also, trade restrictions prevent other countries from “dumping” cheaper product substitutes that reduce consumption of locally made goods, which harms the domestic industries. If all foreign trade were eliminated from the US, living standards will decrease. Ceasing all trade with other…

GLOBAL ECONOMY Introduction The world bank report in regards to the East Asian miracle stipulated public policies adopted by the high performing Asian economies (HPAEs) between 1965 and 1990. The success of the HPAEs during that period was characterized by the development of policies which guaranteed fast economic growth through equitable distribution of resources. Thus, the success stirs questions on whether developing countries would adopt the policies adopted by the HPAEs to achieve rapid economic growth in the long-term. The East Asian miracle comprises countries such as Hong Kong, the Republic of Korea, Malaysia, Indonesia, Thailand, China, Singapore, and Japan. The governments in the respective nations undertook the responsibility to spur economic development in their countries. Hence, the question on which polices led to the massive economic growth still lingers in economists’ minds. Therefore, the world bank report on the east Asian miracle contributes to the understanding of the success of HPAEs. Growth and equity in East Asia East Asia recorded a remarkable and sustainable economic growth between 1965 and 1990 relative to a miraculous growth in 8 economies such…

Global economy strategy Location Matters The urban economist Enrico Moretti discusses the aspect of location in relation to globalization. The world has changed a lot over the years. Thanks to the advancement in technology, location is determined as the main aspect holding the economic lifeline of major corporations in the globe (Hill, 2015). Location determines how a company performs both at its local base and internationally. Moretti argues that the low-skilled jobs that are moved out of the United States allow the large tech corporations to hire the highly skilled workforce while lowering prices of goods (Moretti, 2012). Innovation hubs have pulled large corporations to their locations owing to the benefits that come with situating a firm in an innovation hub. (Moretti, 2012)Argues that smart, innovative workers and companies, like to be surrounded by other smart and innovative firms because ideas that help the company/worker perform well are hatched within that ecosystem. For instance, a company located in an innovation hub like Silicon Valley and has the entire tech ecosystem surrounding it will perform exceptionally well compared to that outside.…

List the benefits and challenges of big data in the 21st-century globalized economy. The benefits of big data in the 21st century include: To Generate Commercial Intelligence in that the big data is used to excerpt the business intelligence by analyzing better decision making to boost business progress. It assists in understanding the purchaser’s needs and greatest demanded goods and improved business choices. Another benefit is that it has the capability to strengthen data analysis practices against being swindled. In addition, big data allows assessors to gather and analyze information outside of financial reports like online reviews. The challenges affecting the big data include: Encryption of data in Transit and Rest as there is the necessity to use improved encryption and decryption method to provide data in transit and at rest protection but still it has not been implemented yet. Another challenge is about access Control whereby there are difficulties in implementation of the Role-Based Access Control as well as the Attribute-Based Access Control, which help in running the business. What are some of the risks and how the risk…