Using a country of your choice as an example demonstrate how the Essay

Using a country of your choice as an example demonstrate how the government seeks to compensate for market failures.(Japan) - Essay Example Externality effects would gradually become global as globally integrated markets develop. As externalities become huge they pose challenge to achieving macroeconomic stability which in turn challenges the international political architecture. ‘Efficient’ allocation of resources according to economists implies that all possible mutually beneficial trades have been exhausted (Holtom, 2011). This means that proper coordination between willing buyers and sellers has been accomplished. The nature and extent of market failure determines the role that government would play and whether government intervention is at all necessary. Markets rarely correspond to the ideals of a perfectly competitive market as defined by the economic theory (Rama and Harvey). These imperfectly competitive markets may have efficiently allocated resources to derive the best value. Certain conditions termed as ‘market failures’ render government intervention necessary. While failure to syst ematically allocate resources is evidence of inefficient allocation of resources but this is not sufficient reason to justify government intervention. Government intervention in markets can be costly and the benefits must far outweigh the costs if government were to intervene. However, some governments believe that the role of government is benevolent during such externalities (Dolfsma, 2011). In fact institutional economics believe that market cannot function unless they are embedded in a broader set of interrelated institutions. However, government interventions can reduce efficiency through unintended consequences such as distortionary taxes, special interests or maybe just simple errors of judgment (Holtom, 2011). All market failures do not warrant policy action and hence the cost-benefit analysis is essential. A market-oriented economy may produce income inequalities. A person may produce some very efficient product which benefits the society but there is no gain for the poorer people of the society. Moreover it is not possible to exclude non-payers from utilizing a ‘public good’. However, market failures occur when an inefficiently high or low amount of good in question is produced and is directed to markets where they do not receive the desired value (Holtom, 2011). This reduces in value the perfect market conditions. This can be applied to the entertainment and the theme park industry in Japan. Japan is known for the largest global growth for theme parks and the amusement industry. Tokyo Disneyland (TDL) demonstrated solid performance and made a substantial impact on the host economy (Kawamura and Hara, 2010). Being part of the tourism industry they brought in extensive cash flow from the non-resident tourist. However, the rush of theme parks in Japan overlapped with the bubble economy in the late 1980s and early 1990s. Local governments in Japan suffered as an effect of deindustrialization following the bubble economy. Market failures in the theme park industry led to government intervention in several ways but these were found to be counter productive. To revitalize the local economy the development of theme parks was considered essential. Resources were inefficiently allocated to make the theme parks sustainable and help the local economies. Abundance of construction loans were given for theme parks. In addition, the central governments paid subsidies to the local governments and the

Should Project Managers Behave Like Prima Donnas Article

Should Project Managers Behave Like Prima Donnas - Article Example The balancing act is about taking the different stakeholder requirements together and then ensuring that everything falls together for the common purpose of meeting the project deliverables. This then is the bottom-line guideline for project managers. The practice of management for the express purpose of delivering customer delight and stakeholder value. This paper looks at the components of project management and the way in which the project manager has to ensure that conflicting and competing demands on his or her time and bandwidth are managed to ensure optimal success for the project. I answer the question of whether the project manager must be a Prima Donna by referring to the situational and contextual aspects of project management. The contention of this author is that project managers and the art of project management is highly contextual and situation dependant that theory can only point the way and it is up to the individual to make the decisions and tread the path accordingly. Real world scenarios often have a way of surprising the most experienced project manager and hence theory can only help to a point in making decisions that affect real people. Thus, one way of looking at the question is that project managers have to combine the science of project management with the art of people and process management to achieve optimal results. Project Management combines statistics and people skills in equal measure and it is incumbent upon the project manager to plan their strategies accordingly. According to the PMBOK 3rd edition, A project is defined as a â€Å"temporary endeavor with a beginning and an end and it must be used to create a unique product, service or result†. Further, it is progressively elaborated. What this definition of a project means is that projects are those activities that cannot go on indefinitely.