Monetary Policy, Fiscal Policy, Business Cycles, and Economic Growth Assignment

Monetary Policy, Fiscal Policy, Business Cycles, and Economic Growth - Assignment Example Owners of multinational companies in Malawi will receive reduced dividends. Some multinational corporations’ employees in Malawi will either be laid-off or receive lower salaries (Hansen, 2013). 6.b). If the president of Malawi imposes a mandatory minimum wage of $5.00 per hour, workers in multinational companies will receive better pay. Consequently, the level of poverty will reduce in the country. Multinational corporations will incur more cost especially salary expenses. Due to higher costs profits for the companies will reduce thus shareholders will receive lower dividends. Multinational corporations might lessen the number of employees to reduce the salaries expenses they incur (Hansen, 2013). 7. Western states like the United States and United Kingdom resort to deficit spending by borrowing money to stimulate economic growth or recovery in times of economic recessions. The main disadvantage with deficit spending is that it leads to interest rates. High-interest rates reduce the ability to borrow. High-interest rates discourage entrepreneurs to invest. Consequently, low investment rates mean that the production capacity of a country is reduced the general output of the country decreases hence. Reduction in the output of a country reduces the rate of economic growth in a country. Deficit spending means that the government spends more than the private sector. States tend to utilize resources inefficiently. So these actions might lead to wasted resources. Deficit spending and increased borrowing increases an economy’s inflation rate. Increasing inflation rate reduces the value of a currency and adversely affects its competitiveness with other currencies. Inflation wi ll also lessen the amount of savings (Hansen, 2013). 8. Listening to Laurence Kotlikoff of Boston University, I was interested in the argument he brought forward regarding the government’s concealment of its debt obligations. Kotlikoff pointed out that United

Management and Leadership Assignment #3 Essay Example | Topics and Well Written Essays - 1000 words

Management and Leadership Assignment #3 - Essay Example In all three perspectives a vital and complex relationship is there between the organization and the environment. In open system perspective organization, structure is a major product. Where in rational and natural system organizational environment structure has little affect on the organizational make-up. In the rational system, an organization structure has specific goals. That is in this form, the king of organization will have well defined organizational hierarchy. Leadership roles are systematically incorporated and each position is well defined. The power of an individual is determined by the position he or she holds. A well defined hierarchy in an organization leads to accomplish goals effectively. In natural system perspective, they focus on the behavioral aspect of an organization, the stated goals of an organization and its real goal. Organizations are considered as social groups and this helps the structure accomplish its stated goals. Individuals hired by an organization will bring with them their own values, interest and abilities and all this will not be ignored when developing the structure. In this kind of organization, they recognize the importance of intelligence and innovation of each worker. In non-rational aspect the organization is not completely controlled by a formal structure and well defined rules. Among the workers some informal structure will develop. In open system perspective the organizational structure focuses on these environments that ultimately shape, support and permeate the organization. The organization will have variety of structures of varying complexity that are determined by verity and complexity of an organization. An organization is viewed thorough a system of interrelated activities, in that some are precisely connected and some are proximately connected. The environment which operates the