Unintended Consequences by Edward Conard Essay Example | Topics and Well Written Essays - 1000 words

Unintended Consequences by Edward Conard - Essay Example "Unintended Consequences" by Edward Conard Some think it is random and based on America's entrepreneurial culture, but he argues it is based on the availability of risk financial capital. Is it one or the other or both? In my opinion, innovation in America is based on both America’s entrepreneurial culture and the availability of financial or risk of financial capital. Innovation is described as using knowledge to create changes in both the technical and organizational departments to create economic advantages for the said countries organizations incorporating it. It involves conducting new research into different field to create new products or enhance the quality of the already existing ones. America as country used the knowledge provided by innovation to obtain their desired productivity growth through such channels like developing new technologies, and absorbing and enhancing on both external and internal knowledge. America had the will, desire; spirit and vision which contributes to innovation making them explore different avenues of opportunities within the country. These were directed towards the economic, cultural and social sectors, and in the process they were able to develop resources and abilities that stimulated their growth into a first world country. Moreover, they used their ideas in transforming ideas, services and financial resources they use in sponsoring and conducting different projects across the country. The availability of financial or risk of financial capital significantly contributed towards the development of America’s entrepreneurial culture. Innovation as a process entails trials and mistakes that require financial risk and resources. Capital plays a significant role in the production of goods and services and without it; the process of production is incomplete. America as country was blessed with capital availability and accessibility thus its innovation process was simplified as they used the capital in purchasing for raw materials and resources that were needed to finish the different innovation processes they were conducting in different sectors within the country. The country was has also been successful because of the financial risk they have taken in their innovation sector. The sources of this finds were diverse like revenues and bank financing. This enabled America to acquire new ideas and enhance them into suitable good and services for their own use and benef it. Question 2 What is Conard's argument that the U.S. trade deficit is a good thing because it provides the U.S. with plenty of risk-adverse short-term financial capital? On the other hand, he thinks this is a problem because that money is difficult to use to support innovation and therefore financial institutions should be able to buy government insurance(rather than get it for free). Explain what he means by all of this. Trade deficit refers to a situation where a country imports more good than those which she exports. It significantly affects the country’s balance payment. According to Conard’s argument, the U.S trade deficit is a good thing because a rising trade deficit is associated to growth in the U.S economy. The deficit leads to a balance of trade in any economic situation. Deficit in trade allows for country to export more products to other neighboring countries and in the process creates new jobs for the unemployed and also creates a demand for a good or a product. Moreover, price competition is promoted by trade deficit and

Customer intimacy and other value Disciplines Essay

Customer intimacy and other value Disciplines - Essay Example Redefining the value for customers in different markets is necessary because of the enormous differences in customer tastes, purchasing behaviors, attitude etc. Moreover, customers in different markets are socially, culturally, politically, and economically different and hence customized business strategies are necessary even for the same product at different markets. Parker Pen misread the globalization principles and tried to implement a unique marketing strategy for their pens in different countries and failed miserably. Moreover, an Indian customer may like to have some kind of discount while purchasing a car whereas an American customer may like to have a free offer along with purchasing of the same car. In other words, the car manufacturer should adopt different marketing or business strategies at different countries even for selling the same product. Building powerful and cohesive business systems based the characteristics of a market is another important strategy needed for the success of a business. For example, Americans like to purchase top quality branded goods even if the prices were too much whereas an Indian customer may prefer low prices even if the quality was compromising. In other words, it is difficult for the Benz car makers to sell their top models in India whereas same model could be the best seller in America. Same way, it is difficult for Indian car manufacturer Maruti to sell their cars in America even though they are the best sellers in the Indian market. If Maruti wants to sell their cars in America, they need to make necessary changes in their car models in order to make it suitable to the American market. Raising customers’ expectations beyond the competition’s reach is the third strategy needed for business success. Indian car manufacturer TATA recently unveiled world’s cheapest car NANO priced $ 2000. This car became a hot seller in Indian market and its booking is already