How to Increase the UK’s Productivity? Essay

The UK government can adopt various supply side measures to further increase the productivity in workplace. First, it is absolutely vital to ensure that the education sector continues to receive large amount of funding from government. In fact, it is currently the third largest recipient of budget after social security and healthcare and should be in such position for many years to come even when the economy is not performing. Billions are spent onto building schools where literacy rate is relatively lower, training teachers, developing new curriculum or courses that suit industrial need and providing loans to undergraduates to increase their enrolment rate. The purpose is to increase the quantity and quality of workforce. Being more educated enables an individual to work independently, more efficient and understand complex instructions. Productivity gap between UK and rival economies like France and Germany will narrow. Next, the government can further tame the trade unions. Although we have not seen strikes like those during the era of Margaret Thatcher, industrial dispute that takes place from time to time is still a major concern for many employers. Consider the recent strikes by cabin crews in British Airways, immigration officers in ISU (Immigration Service Union), HP workers and many more. When workers refuse to work, there will be lesser output on monthly basis. As such it is justified to have more laws passed in Parliament to secure the interest of firms. For instance, firms must be allowed to take stricter action against workers or union if they cause severe losses or making it more difficult for unions to call for strikes. Between the two measures discussed, it is argued that public investment onto education is a better policy. This is because UK economy has moved away from industries that require manual skills to those that need mental skills. In other words, UK has moved away from manufacturing sector to services sector like banking and finance and also quaternary like research. Today, size of service sector is about 76% of her GDP compared to manufacturing sector of 22%. Having said so, critics argue that it has an extremely long effect lags. This is because the building of schools and having a targeted number of skilled graduates are not an overnight effort. It may take as long as a decade before noticing any change in the level of productivity. Also one must consider that UK experiences one of the highest numbers of brain drain. It loses its professional workers to other English speaking countries like US, Australia and New Zealand. In such circumstance, AS may not shift rightward by much As a matter of fact, there must be some balance in power between the employers and labour unions. Although the weakening of unions creates a more flexible labour market (easy to hire and fire without negotiation with trade union) and lower down the costs of production, some firms might abuse the power given. For instance, workers in certain industries may be underpaid or in some circumstance retrenched without any good reason and justified compensation. In some cases, employers may freeze wages of workers for their own good such as taking home fat bonuses. Furthermore, it is already difficult to organise a strike due to the structure of economy. Workers in services sectors, say a bank are not as clustered and large in numbers like those in factories .

Business Economics 1 Essay Example | Topics and Well Written Essays - 1000 words

Business Economics 1 - Essay Example As third world countries are moving into the industrialized world, the demand is growing. As this evolution of the world is taking place, more oil is being drawn from the earth, which means one day the oil supply will dry up (Presswire). That does bring about the question of whether or not supply is an issue since we are told frequently that one day the earth will not yield anymore oil. But as the oil prices go up, one will find that it is because demand is not staying the same. This is making the aspect of supply a little less of a contributor to the increase in oil prices. When using an oil demand curve chart, the demand becomes vertical, but when looking at both the supply and demand curves, one can see that both have been increasing at the same rate for the past twenty years. Yet recently, the supply curve has not moved at all while the demand curve has increased. If supply cannot keep up with demand, then the prices will seen an increase. We probably won't see an increase in the supply aspect until supply reaches maximum production. When this maximum production or extraction of oil occurs, we will see another increase in the price of oil due to the decline of supply until true maximum production is reached. ... Chances are, the extreme fluctuations in oil prices for the past few years has been due to the fact that maximum production has been reached, which lowers demand. This decrease in demand leads to a decrease in prices just as a decrease in supply leads to an increase in prices. When these price increases happens, the economy sees a recession and when decreases occur everyone feels that all is well (valuesystem). Supply influences Unfortunately, the supply to a specific market will not be constant. There are several different factors that influence supply such as: Price: High prices will influence producers to supply more oil Cost of production: These are the costs that are associated with the productive resources used to bring the oil to the market. These costs can include labour costs, the cost of materials, etc. Technological innovations: Oil companies can reduce various costs through new technological innovations that allow them to perform in a more efficient manner at a lower cost. Objectives of the producer: A lot of times the supply of oil can also be dependent upon profit maximisation. There are certain objectives that oil companies have in mind, which can distort our perception of how the supply aspect is really working. There are also other things such as labour force and climate change that can influence supply. These are just some of the factors that can influence the supply aspect of oil that, in turn, influences the fluctuations in cost. Yet supply is only half of the equation since demand is also a very important part of the supply and demand economic theory (Souster). Demand influences Demand is the amount of goods and

Corporate governance for westpac Assignment Example | Topics and Well Written Essays - 1000 words

Corporate governance for westpac - Assignment Example In addition, it has profound implications at all the levels of an organization (Hill and Jones 27). Significantly, the document reveals that numerous scholars argue that strategic planning provides a mere and perhaps less relevant understanding of strategic decision making, thus, the increasing adaptive strategy. In response, this document provides a comprehensive critique to the existing literature against the perception of emerging trends as well as the pressures in the contemporary business world. Therefore, it has referred numerous sustainability competencies that suggest the need of capable consideration of holistic and systemic pressures predicting future scenarios and considering how numerous stakeholders would perceive normative business practices. The sources have revealed that the Westpac group ranks among the top listed financial companies on the Australian Securities Exchange (ASE): in September 2010 Westpac’s market capitalization realized E.5 billion (AUD). Addit ionally, it has five key diverse customers; significantly, it serves approximately, 12.8 million customers ranging from institutional, business and retail banking, wealth management, and insurance. For instance, there is the Westpac Institutional Bank (WIB), Westpac Retail and Business Banking (WRBB), and BT Financial Group (BTFG). The sources have further identified that sustainability plays a central position in Westpac’s vision. The vision states that the Westpac has become one of the largest firms in assisting consumers, communities and prosperous people. Significantly, the company recognizes the links between healthy societies and sustainable businesses. Accordingly, Westpac has managed its direct as well as indirect environmental impacts. It has put appropriate strategies of dealing with the critical issue, such as climate change. Significantly, the company has recognized that climatic change influences profoundly on economic, social, and environmental aspects in their operating regions. Consequently, the Westpac has considered such issues before embarking on their investments, lending, and operational decisions. Additionally, the company has