David Ricardo s Theory Of Comparative Advantage - 1504 Words

David Ricardo is a well-known economist who found it hard to make his big break in the field of economics. He created the â€Å"Theory of Comparative Advantage†, or free international trade. His ideas he had were hard for people to grasp, and understand at the time, and even today. Over his career, he encountered some struggles, but he kept doing what he thought was right, and fair, and in the end he was successful. David Ricardo was born in London in 1772. He grew up in a large family with more than 10 brothers and sisters. His parents were Jewish immigrants who settled in England. His dad made a successful career for himself, and for his family. He was a stockbroker. Ricardo was sort of drawn into the business, because his dad had the business. Ricardo was fourteen when he entered the market with his dad. When he married he went a different path than the one his family would of liked for him to have. He chooses to marry a Quaker. After the marriage tension arose, causing him to have to leave his family. Ricardo still had a lump some of money, so he used it to expand his education. He didn’t just spend time learning about the political economy. He took time to study other important subjects like math, reading, and science. During this time he became interested in Adam Smith’s â€Å"Wealth of Nations†, and this inspired him to write his own pamphlets named â€Å"The High Price of Bullion†, a â€Å"Proof of the Depreciation of Bank Notes†. Which became very popular in 1810. The benefit ofShow MoreRelatedDavid Ricardo : Comparative Advantage1397 Words   |  6 PagesDavid Ricardo; Comparative Advantage David Ricardo, a British political economist was born on April 18, 1772 in London, England. He was the third child of seventeen in a Sephardic Jewish family who originated from Portugal and had recently emigrated from the Dutch Republic. At the age of fourteen, Ricardo began to work with his father, Abraham Ricardo, who was a famous stockbroker. When Ricardo was twenty-one years of age, he ran off and got married with Priscilla Anne Wilkinson, a Quaker, and becameRead MoreDifferent Theories Concepts Of International Trade Theories1697 Words   |  7 Pagesthis paper, the author will examine, and categorizes the differences between different theory concepts of international trade theories. The author will analysis and seriously assess their believe concepts and believe. The author of this assignment agrees with the economist that international trade is the interdependence of nations in terms of trade. International trade theories are basically different theories, with their concept o f trade how they explain international trade. The concept of majorityRead MoreInternational Trade Theories, Trade, Cultural Diffusion, And Economic Trade Theory1374 Words   |  6 Pagesanalyze, and identify differences between the basic and base concept of international trade theories. The author will examine and critically assess the concept of international trade. This paper agrees with the economist that international trade is the interdependence of nations in terms of trade, cultural diffusion, and economic interdependency. International business trade theories are basically different theories with their concept of trade how they explain international trade. The concept of majorityRead MoreA Systematic Theory Of Population Theory1611 Words   |  7 PagesAccording to the Economic Thought textbook the summary of Malthus Population Theory deals with the misery and poverty among the lower classes of every nations. Thomas Robert Malthus was the first economist to propose a system atic theory of population. He states that a population when unchecked leads to population grow exponentially (i.e., doubling with each cycle) while food production grows at an arithmetic rate (i.e. by the repeated addition of a uniform increment in each uniform interval of time)Read MoreMajor Trade Theories888 Words   |  4 PagesTrade theories Introduction The concept of absolute advantage is one of the most fundamental areas of concern in the study of economics. In its basic meaning, absolute advantage refers to the ability of one individual or party to produce more of a particular good or service than other competitors given the same amount of resources. In this regard, absolute advantage becomes a very important aspect in the concept of international trade as it clearly defines the different areas where countries shouldRead MoreThe Trade beyond Borders2297 Words   |  9 Pagesvarious theories, policies and business strategies that make up international trade. The trade theories have a central place in the analysis of economics and are what actually underpins the free trade doctrine. Free trade doctrines have long and fascinating history all over the world. This paper will therefore look at the origin of comparative advantage and how it affects international trade. It will further analyze the theories by Ricardo and Heckscher and O hlin and explain why comparative advantageRead MoreChapter 56435 Words   |  26 Pagesdiscredited doctrine E. It still influences many governments 4. The theory of __________ was advanced by Adam Smith. A. absolute advantage B. capitalism C. similar opportunity D. mercantilism E. comparative advantage 5. Which of the following international trade scholars was the first to explain why unrestricted free trade is beneficial to a country? A. Adam Smith B. Bertil Ohlin C. Eli Heckscher D. Paul Krugman E. David Ricardo 6. __________ refers to a situation where a government does not attemptRead MoreEconomic Theories Of International Free Trade Essay2137 Words   |  9 PagesThroughout the centuries of economic theories, there have always been major disagreements amongst economists. Each believing their theory provides a better explanation or solution to the economic situations the globe finds itself in. The anomaly to these disagreements is the theory, first introduced by Adam Smith, which states that international free trade is in the best interest of the trading countries and the ever globalizing world as a whole. This essay shall compare the views of the great economists;Read More Challenging Comparative Advantage Essay1410 Words   |  6 PagesComparative advantage is a principle developed by David Ricardo in the early 19th century to explain the benefits of mutual trade (Carbaugh, 2008). Many underlying assumptions of comparative advantage depend on states of economic equilibrium and an absen ce of economy of scale. In reality, economies are dynamic and subject to innovation and interference; which has led to revised assumptions of return and competition (Krugman, 1987). These factors have created questions of free trade and governmentalRead MoreInternational Trade : Comparative And Competitive Advantage1512 Words   |  7 Pages International trade theories are simply theories that explain how imports and exports work between different countries. Hence the name international trade. In this paper I will be reviewing different theories of international trade, explain the difference between comparative and competitive advantages, and answering three important questions. What the underlying economic rationale for international business activity is, why trade takes place, and the gains from trade and investment. I will first

The Australian organization with the Effective Implementation

Questions: 1. Identify and critically analyse and discuss the communication challenges that a leader would expect to encounter in relation to the cultural diversity of many Australian organisations. (you also need to give example of any australian organisation in term of how they face communication challanges) 2. Critically discuss how leaders can address the ethical issues related to the cultural diversity in many Australian organisations.( you also need to give exmaple of any ethical issues faced by australian organisation.) 3. Identify, synthesise and critically discuss an optimal mix of leadership styles/behaviours which would be aligned with managing culturally diverse workplaces; these should be sufficiently flexible, and able to be appropriately adopted in Australian organisations.(you also need to provide one example based on leadership style/behaviour in any australian organisation.). Answers: Introduction: Australia is known for its diverse cultural workforce. The organizational behavior and culture are equally important regarding organizational success. It helps the organization to enhance and maintain the communications within the workplace which helps in further development of the business as a whole. However, culture varies at the workplace and thus it may sometimes lead to conflicts. The rise of issues and conflicts also led to degradation of the communication and ethics which affects the work culture as a whole. Moreover, the organizational behavior is utmost important as the business emerges more towards the multigenerational and diverse culture (Hersey Blanchard, 2012). The workforce may sometimes also get influenced through diverse labour power which needs the implementation of organizational behavior within the organization. Organizational behavior also helps in the improvement of the team work and thus helps the organization to gain the competitive advantage in the market. Organizational behavior also led the leadership which further led the organization towards the strategic business objectives. Thus, it helps the business to gain the competitive advantage which helps in the improvement of the communication as well between the employees within the workplace. Organizational Behavior also gets influenced by separate personalities of an employee which further affects the productivity of the business. The Virgin Australia Airlines has been operating in Australia since last few years and for achieving the success ladder, the organization has also adopted changes and implemented strategies towards the operating environment (McShane Von Glinow, 2012). Virgin Australia is rapidly growing and thus leading as the second domestic carrier in Australia. Thus, Virgin Australia maintains a strategic tool to maintain an organizational behavior within the workplace and thus helps in motivating more employees within the business as a whole. The motivational factor al so helps the organization to provide the best service towards the customers and thus increases the profit margin of the organization. This further adds value to the organization and helps in gaining sustainability as well in the competitive market. Communication Challenges: Management within an organization implements strategic tools to develop culturally diverse workplace within Virgin Australian Airlines. The leaders within the organization face several challenges to managing the diverse workforce. Thus, the organization needs to face certain challenges that include: Diversity in culture Virgin Australia Airlines is facing certain issues regarding the diversity in culture within the workplace. The diverse cultural people primarily try to carry out their own norms and take things in their things only at the right way. This led to the dispute among the team members as they consider their individual norms and culture to be universally valued. This led to miscommunication between the management and thus affected the organizational diverse culture (Fox et al., 2012). The misunderstanding thus affects the organizational culture and also helps in improving the work culture as well. Nationality Identity The nationality identity within the workplace affects the effectiveness of communication. Different nationality means the varied cultures and languages. Varied cultures led to varied thought process and personalities which stand as a challenge for the leaders within Virgin Australia Airlines to manage the workforces as a whole. The national identity also led to carry forward individual sentiments and norms which may sometimes affect the effective communication within the workplace (Boiral Paill, 2012). This also led towards losing the employee motivation as well. The regional differences led to the cultural gaps as well which further affects the culture of the organization and thus includes as a challenge for the management towards the employees within the business. Ethnicity Identity Ethnicity identity also contributes to a major proportion of the communication challenges. The ethnic identity creates a gap between the people which led to further miscommunication in the organization. The miscommunication also led to the misunderstanding of information which creates a gap for the management as well in the organization (Easterby et al., 2012). The ethnicity needs to be taken into the serious note to improve the transparency in communication between the management within the organization. The ethnicity sometimes also may refer to the common religion, culture and history which also prove to stand as a challenge for the communication towards leaders in managing the diverse culture within the organization. The ethnicity also helps the employees to improve the individual identity and helps the organization towards the development in the present trending scenario. Language Language is also regarded as the most vital part in improving the communication skill in the organization. The language is a common bridge between the employees and the management which help the organization to evaluate and analyze the issues within the workplace and helps in improving the organization as a whole. The Language also sometimes proves to be a solution for any misunderstanding or conflicts within the organization (Vaccaro et al., 2012). In critical situations, languages may stand as a constraint for the employees with Virgin Australia Airlines. The same word may prove to be sometimes different meanings which also affect the productivity of the employee within the workplace. However, at times misunderstanding is also created due to people of varied cultures communicate with different languages which seek to need help by translated tool. This results in cost affectivity and thus affects the communication skills of employees within the business (Bouhafs et al., 20 12). Thus, to improve the intercultural communication the language need to be taken into serious account towards organizational success. Community Community also proves to be the challenge for the business to sustain in the market. The community also proves to be varied regarding socio-political and social cultural activities which also affect the communication and transparency within Virgin Australia Airlines as a whole. The active role and responsibilities of communication are to shape the personalities of the employees and thus help in improving the organizational behavior as well. The community also helps in improving the knowledge among the employees of the organization and helps in improving the social interaction process as well. Thus, it helps the organization more towards the ladder of success and improves the communication factor as well. Thus, it also helps in the sustainability of the organization in the market (Eslami Gharakhani, 2012). The communication thus proves to be beneficial for the organization to achieve the objectives and success which helps in influencing more customers towards the business. The business thus faces several challenges regarding communication which need to be improved to gain more customers towards the organizational service as well. The communication challenge stands as a constraint for business in the present trending market (Bratton Gold, 2012). Ethical issues: Development of business globalisation and improved economic interdependency Virgin Australia Airlines face certain challenges in the workplace to manage the diverse workforce altogether. The dynamic and competitive market also stands as a challenge for Virgin Australia Airlines to compete in the present marketing trend (Caroline Martins Meyer, 2012). Ethics is considered as attitudes or personality of individual within workplace towards colleagues, management and the organization as a whole. The organizational success also depends on the implementation of effective strategy by the leaders of the business as well. Thus, the various factors that influence the ethical issues within the organization include: Leadership and commitment Leadership and commitment play an important role in controlling the ethical management within the organization. The top management within Virgin Australia Airlines is responsible for the maintaining the ethics within the business and thus provides effective organizational behavior within the business as a whole. Code of Conduct The lack of written conduct affects the productivity and efficiency of the organization as the employees decide their rightful action as per their choice which hinders the skills of an organization in the market (Sita Nirmala Kumaraswamy Chitale, 2012). The leaders of Virgin Australia Airlines need to implement t effective strategy which helps the business to bind the employees with rules and regulations and helps the business to increase the growth rate of the company. Thus, the ethical conduct helps the leaders within the business to manage the diverse workforce and helps in the profitability of the organization in the market. Miscommunication Miscommunication led towards the failure of ethical communication within the organization. This also leads towards the disputes within the workplace which affect the workforce towards improved productivity as well. The absence of transparency between the management and the employees led towards disrupting the environment and thus lowers the rate of profitability of the organization in the market. Communication thus adds value towards the organizational success and development (Ting-Toomey Chung, 2012). The leader within Virgin Australia Airlines creates a transparent communication to improve and develop a health relation between the management and the employee as a whole. The organization thus improves the communication skill and helps the organization towards sustainability in the market. Trust Leaders within Virgin Australia Airlines implements the effective strategy to gain the trust of loyal employees within the organization and helps in the growth of the company as well. The trust is regarded as an important factor for the improvement of the workforce in the organization (Macnamara Zerfass, 2012). Trust is considered to be important for transformational leadership which adds value towards the organizational success as a whole. Fostering of trust management and abolishing of abusive practice led the business towards increasing the quality of production. The trust management also helps in retaining the employees more towards the organization and helps in the development of the company in the trending market. Training The training program helps the business to improve the skills of the employees within the workplace and thus help the leaders and the management to handle diverse cultures as well. The training also helps the management to improve the thought process of the varied employees which help to manage the diverse culture as well. The training program also helps in the development of the rate of productivity that further led Virgin Australia Airlines to gain sustainability in the trending market. The training thus helps the organization to improve the workplace condition and thus help in retaining employees more towards the workplace (Hersey Blanchard, 2012). Reward and Recognition The reward and recognition of the employee help to led Virgin Australia Airlines towards success ladder. The recognition system also helps to influence the employees and act as motivating factors towards the business (Eagly et al., 2012). The Leaders and the management within the organization also need to keep up their commitment to gain positive outcome of the ethical environment and helps in gaining competitive advantage as well. The ethical system also helps in balancing the workforce and the managerial issue towards organizational success. The ethics management helps in the organizational success and also helps in the improvement of the employee relations as well in the business (Day Antonakis, 2012). The employee relations thus improve the work culture and increase in the quality of the production of the business as a whole. This helps the organization in achieving the aims and thus also helps in managing the diverse culture as well. The leaders and the management within the organization thus implement effective strategies and manage the ethical issues within the organization as a whole. Appropriate leadership models/styles: The Australian organization Virgin Australia Airlines thus implements various effective strategies that help in the development of the organizational structure and also helps in the effective organizational behavior in the organization as a whole. The leadership styles thus include: Traditional Styles: Autocratic Leadership The autocratic leadership within Virgin Australia Airlines helps the employees to create a transparency with the management which help the organization to gain more loyal employees towards the organizational success (Lam et al., 2012). The Autocratic leadership also helps the organization to bind the employees with certain riles that might also help the business to gain sustainability with increased quality of production within the business. Democratic Leadership Democratic leadership helps the business to share the organizational profitability and responsibility. It also helps the organization towards the seeking advice from the subordinates a well which further helps to motivate and encourage more employees within the organization as a whole. This helps the organization to satisfy the employees which further results in customer satisfaction as well. This also helps in the expansion of the market (Wilson, 2013). Laissez Faire Leadership The Laissez Faire Leadership style is popularly known as the hands off style which helps in providing help and guiding the employees within the organization. The employees under this leadership can enjoy a freedom of right within the workplace which helps in leading the organization towards gaining competitive advantage (Chaudhry Javed, 2012). This style of leadership also influences the employees within the workplace to determine their own objective which helps to increase the rate and quality of production of the business in the competitive market. However, the managers find it easy to manage the diverse culture of Virgin Australia Airlines through motivating more employees towards the organizational success and thus add value towards the organizational brand as a whole. Modern Style of Leadership: Transformational Leadership The transformational leadership helps the business to grow the passion and enthusiasm of the employees within the business and helps in the development of the organization. This model also helps the organization towards achieving the am and vision of the organization which helps in improving the work culture of the business as a whole. Transformational strategy or leadership helps Virgin Australia Airlines towards achieving the passionate people more towards the organization and also helps in the development of the organization as a whole. This helps the organization also towards the success in the competitive market and helps in gaining sustainability in the trending market as well. The transformational leadership also helps in influencing the thought process and beliefs and ideologies of the employee which further help the management and the leaders to manage the diverse culture in the organization (Lowell, 2012). The transfo rmational leadership also helps in improving the skills of the employees which further helps in increasing the rate of profitability of the organization as a whole. It also helps to inspire employees more towards the organization and helps to achieve their individual success which consequently will contribute towards the organizational success. The Transformational leadership style also helps in formulation and designing of projects that helps in changing the working environment and also helps in undertaking risk analysis as well. Charismatic Leadership - Charismatic Leadership helps Virgin Australia Airlines to satisfy the need of the employees within the organization and helps in the improvement of the productivity of the organization (Gerber et al., 2012). The leaders with the implementation of the effective leadership help the organization to gain respect and trust and also analyze the risk factor as well. The diverse culture within the business gets help by the leadership style to analyze the various moods of the varied culture people operating within the workplace. The leadership style helps the organization in implementing the effective strategy that helps to improve the skills and performance of the employee which further helps in improving the organizational behavior within the business. The values of the charismatic leadership help in changing the workforce and helps in managing the dispute as well at the time of crisis. The charismatic leadership helps in the alteration of the organization which hel ps the business towards success rate in the competitive market. Transactional leadership The diverse cultured organization need to manage tactfully to retain its position along with the employee satisfaction as a whole. The Transactional leadership provides responsibilities to the employees within the business as per the benefits and salaries provided to the employees (Snell, 2013). The employee needs to complete the task assigned to them as per the requirement. Thus, this style of leadership helps Virgin Australia Airlines to gain more employees within the organization and also help in improving and increasing the rate of productivity of the business in the competitive market. Participative Leadership The participative style helps Virgin Australia Airlines to involve the employees within the workplace to take the necessary decision regarding the prevailing issues within the business. The leadership style also helps in involving the stakeholders, superiors and peer groups in decision making and led the business more towards improving the organizational behavior in comparison to the trending market (Rue et al., 2012). Servant Leadership The Servant leadership style helps the leaders of the business to held responsibilities towards employees within the organization as well. The leadership style is responsible enough to carry out the organization towards improvement and also help the employee develop individually within the business (Thiel et al., 2012). This leadership model is a natural tool towards the organization success. However, the style of leadership is pretty based on an assumption that might be changed by the employee or the leader as per the need of Virgin Australia Airlines. Visionary Leadership Style The visionary leadership style helps the business to improve the performance of the employee and thus led the business towards gaining competitive advantage. The leaders with an implementation of this style of leadership help in managing the diverse culture and further increase the profitability rate of the organization as a whole. This also helps the company towards the improvement of the employee performance and helps in the organizational success (Snell, 2013). This leadership style helps the employee within the business to face their challenges courageously and helps in the sustainability of the company in the trending market. Conclusion: The Australian organization with the effective implementation of the various strategies helps the company to gain competitive advantage. The organization with the effective implementation of the strategies help Virgin Australia Airlines to motivate more employees within the workplace and also helps in gaining loyal employees within the organization. The organization also with the improved quality of production gains customer satisfaction as well towards the organizational service as well. Thus, the implementation of various effective leadership style and approaches helps the business to manage the diverse culture within the workplace. The effective strategy regarding the communication skill also helps to develop a transparent, communicative bridge towards the management and the employees and help to avoid any dispute within the workplace. This helps the company towards increasing the productivity and profitability of the company as well in the market. The effective implementation of the ethical management also helps the organization towards managing the workforce. It also helps in managing the varied ideologies and thoughts of the employees which further help a leader to manage the diverse culture within the organization as a whole. This also helps the organization to gain competitive advantage and thus help in gaining sustainability in the competitive market. Reference List: Boiral, O., Paill, P. (2012). Organizational citizenship behaviour for the environment: Measurement and validation.Journal of business ethics,109(4), 431-445. Bouhafs, F., Mackay, M., Merabti, M. (2012). Links to the future: Communication requirements and challenges in the smart grid.Power and Energy Magazine, IEEE,10(1), 24-32. Bratton, J., Gold, J. (2012).Human resource management: theory and practice. Palgrave Macmillan. Caroline Martins, E., Meyer, H. W. (2012). Organizational and behavioral factors that influence knowledge retention.Journal of Knowledge Management,16(1), 77-96. Chaudhry, A. Q., Javed, H. (2012). Impact of transactional and laissez faire leadership style on motivation.International Journal of Business and Social Science,3(7). Day, D. V., Antonakis, J. (2012).The nature of leadership. Sage. Eagly, A. H., Johannesen-Schmidt, M. C., Van Engen, M. L. (2003). Transformational, transactional, and laissez-faire leadership styles: a meta-analysis comparing women and men.Psychological bulletin,129(4), 569. Easterby-Smith, M., Thorpe, R., Jackson, P. R. (2012).Management research. Sage. Eslami, J., Gharakhani, D. (2012). Organizational commitment and job satisfaction.ARPN Journal of Science and Technology,2(2), 85-91. Fox, S., Spector, P. E., Goh, A., Bruursema, K., Kessler, S. R. (2012). The deviant citizen: Measuring potential positive relations between counterproductive work behaviour and organizational citizenship behaviour.Journal of Occupational and Organizational Psychology,85(1), 199-220. Gerber, P. D., Nel, P. S., Van Dyk, P. S. (2012).Human resources management. Southern Book Publishers. Hersey, P., Blanchard, K. H. (2012). Leadership style: Attitudes and behaviors. Hersey, P., Blanchard, K. H. (2012).Management of organizational behavior: Utilizing human resources. Prentice-Hall, Inc. Lam, C. S., O'Higgins, E. R. (2012). Enhancing employee outcomes: The interrelated influences of managers' emotional intelligence and leadership style.Leadership and Organization Development Journal,33(2), 149-174. Lowell, J. (2012). Managers and moral dissonance: Self justification as a big threat to ethical management?.Journal of business ethics,105(1), 17-25. Macnamara, J., Zerfass, A. (2012). Social media communication in organizations: The challenges of balancing openness, strategy, and management.International Journal of Strategic Communication,6(4), 287-308. McShane, S., Von Glinow, M. (2012).Organizational behavior. McGraw-Hill Higher Education. Rue, L., Byars, L., Ibrahim, N. (2012).Management: Skills Application. McGraw-Hill Higher Education. Sita Nirmala Kumaraswamy, K., Chitale, C. M. (2012). Collaborative knowledge sharing strategy to enhance organizational learning.Journal of Management Development,31(3), 308-322. Snell, R. S. (2013). Developing skills for ethical management. Thiel, C. E., Bagdasarov, Z., Harkrider, L., Johnson, J. F., Mumford, M. D. (2012). Leader ethical decision-making in organizations: Strategies for sensemaking.Journal of Business Ethics,107(1), 49-64. Ting-Toomey, S., Chung, L. C. (2012).Understanding intercultural communication. New York, NY: Oxford University Press. Vaccaro, I. G., Jansen, J. J., Van Den Bosch, F. A., Volberda, H. W. (2012). Management innovation and leadership: The moderating role of organizational size.Journal of Management Studies,49(1), 28-51. Wilson, F. M. (2013).Organizational behaviour and work: a critical introduction. Oxford University Press.