Saturday, December 28, 2019
The Issue Of Food Safety - 3028 Words
Food safety is important , millions of people become seriously ill every year by the consumption of unsafe food. Major outbreaks of food borne disease have been recorded on every continent in the past 10 years and its on the rise. legislation is used to enforce food safety and food standards within the meat industry as it is an essential part of the legislative framework to cultivate good safety habits in all individuals, to engender a strong safety culture in the workplace. legislation emphasis s the importance of managing workplace health and safety proactively and stipulates that every person must take reasonably practicable steps to ensure the safety and health of every workplace and worker. Most legislation comes from the European Union (Brussels) where it is passed to Westminster (London) and then down to Scotland (Edinburgh) some legislation is passed directly from the European union to Scotland as Scotland in the 1707 the act of union abolished the separate parliaments for S cotland and England, and created a single parliament in London (The Scottish Government). However Scotland still kept many of its features including its separate legal system. 1.1 legislative framework There are 3 types of EU legislation; I) Regulations- become law automatically in each member state as they are published by the European Union. ii) Decisions- also automatically become law in member states upon their publication by the commission. They are onlyShow MoreRelatedGmos : The Economics Of Consumer Food Safety Issues1510 Words à |à 7 Pagesgenetically-modified foodâ⬠concludes that most United States buyers do not understand the potential risks the basic foods they usually eat compared to European countries that prohibit the production and consumption of genetically modified foods due to the difference of the nationsââ¬â¢ preferences. This caused major conflict in the agricultural trades between these Western Continents. Jill E. Hobbs and Marni D. Plunkett explains the issue in their article ââ¬Å"GMOs: The Economics of Consumer Food Safety Issuesâ⬠. HobbsRead MoreCommon Safety Issues Related to Food Purchase, Storage, and Preparation921 Words à |à 4 Pagesï » ¿Beware! Do you know what is in your food? Common safety issues related to food purchase, storage, and preparation Recently there has been a rise in food-borne illnesses in both homes and restaurant settings. It is important that everyone knows the appropriate ways to prevent such conditions. Preventing food-borne illnesses like salmonella, norovirus, and staphylococcus aureus are not as difficult as one might think, but it is essential that appropriate precautions are taken to minimize theRead MoreThe Consumption Of Low Quality Food Products1628 Words à |à 7 PagesThe consumption of low quality food products, especially Fast food products, is a controversial issue in China as well as society today. Many people are at odds over whether the processing and advertisings corporations are to blame for food related illness and lack of food safety. Some say it is ultimately the consumerââ¬â¢s responsibility because they make a free will decision in choosing what to eat, others say the government is to be blamed because it is their responsibility to protect its citizensRead MoreFood Safety Is Extr emely Severe Worldwide1066 Words à |à 5 PagesFood Safety in China Food safety tends to be a hot topic in Food safety these years. Though the meaning is similar, different from food security, food safety concentrates more on health aspects rather than sufficiency. So what is food safety? ââ¬Å"Food safety is a scientific discipline describing handling, preparation, and storage of food in ways that prevent foodborne illness.â⬠(AmercianPeanutCouncil, 2014) This prevents civils from severe health hazards and in this way is the food safety similar toRead MoreThe Main Laws that Protect Employees at Work Essay1295 Words à |à 6 PagesIdentify possible health and safety risks for employees in your chosen business. Describe the procedure for dealing with disputes. Identify official employee groups 2 Explain what the business does to protect the health and safety of its employees. Explain the purpose of the official employee groups. Explain how the business deals with disputes between the employers and employees 3 Evaluate how well the business protects the health and safety of its employees. EvaluateRead MoreAn Overview Of Food Safety Essay1478 Words à |à 6 PagesAn Overview of Food Safety Unsafe food has been a human health problem since history was first recorded, and many food safety problems encountered today are not new. Although governments all over the world are doing their best to improve the safety of the food supply, the occurrence of foodborne disease remains a significant health issue in both developed and developing countries as stated by WHO (2006). Food safety concept is that food will not harm the consumer so long as intended use guidelinesRead MoreHazards Of Industrial Kitchens Vs. Street Food Vendors1405 Words à |à 6 Pageskitchens compared to street food vendors. The study conducts research on the significance of food safety checks and hazard control in industrial restaurants compared to the lack of food safety in the street food market. The issue of food safety is of global importance due to the increasing number of food borne illnesses, that are proved to damage oneââ¬â¢s health or can also be fatal. Established hotels with industrial restaurants and professional restaurants, usually have a food safety certificate to showRead MoreBeSS (Clean, Safe, and Healthy) Recognition Guidelines Essay1169 Words à |à 5 Pagesis a recognition that will be granted to operators of food premises who meet the four criteria which include their ability to maintain the cleanliness of food premises, to provide healthy food and food that are safe to be consumed as well as to provide food in proper serving sizes according to individual needs. These four criteria are actually branched from two main components specified in the BeSS Recognition Guidelines which are food safety and healthy eating. In addition, BeSS Recognition programRead MoreChipotle s First Food Safety Problem Essay1626 Words à |à 7 PagesDespite the many benefits of Chipotleââ¬â¢s managing style, it was still unable to escape major issues concerning their food products. For a while it seemed that Chipotle had discovered a full proof concept; they could create delicious and healthy food without negative repercussions. The companyââ¬â¢s stock was doing amazing in the market and investors were ecstatic. However, at some point in time, all companies face some sort of crisis and Chipotle is not an exception. It is how Chipotle manages the crisisRead MoreFoodborne Illness Is A Big Problem1343 Words à |à 6 Pagesor foods that contain harmful bacteria, viruses, parasites and/or chemicals. Foods can also be contaminated with bacteria during the food preparation you do at home or the preparation done at a restaurant. If the food cooks or food preparers do not careful ly wash their hands, kitchen tools, cutting boards, and other kitchen surfaces that come into contact with raw foods, cross contamination can occur which is the spread of bacteria from contaminated foods to uncontaminated foods. If hot food is not
Thursday, December 19, 2019
Inter Dependency Between Gold Price Trend And Value Of...
INTER DEPENDENCY BETWEEN GOLD PRICE TREND AND VALUE OF INDIAN RUPEES AGAINST US DOLLAR *Dr.K.PrabhakarRajKumar. **G.Vimalkannan. *Assistant Professor, Department of Commerce PeriyarUniversity, Tamil Nadu, India. **M.Phil., ResearchScholar, Department of Commerce, PeriyarUniversity, Tamil Nadu, India. ABSTRACT Key words: Gold price trend, USD fluctuation, Exchange rate, Rupeesvolatility, Goldsupply. Introduction The prices of gold and the US dollar share different relationships in different circumstances. Gold is considered to be a hedge against inflation, recession, and other times of uncertainties, especially due to its high demand and finite supply. This precious metal was, for a long time in history, used as currency, and is still a safe haven for investors. Consequently, most central banks around the world invest more in gold to preserve their assets during volatile economic conditions. On the other hand, the US dollar is widely accepted as an instrument of the global currency exchange. Hence, most central banks also invest their funds in the US dollar. Indian gold prices have increased almost in the last few years, though there was one large correction in between gold and the dollar against rupees in 2010. From the beginning of July 2011 the pace of increase in gold prices has, however, accelerated the impact of the Indian gold prices is reflected in its domestic prices as well dollarââ¬â¢s value. Despite the sharp recent price rise, in India, demand forShow MoreRelatedProject on Risk Management46558 Words à |à 187 Pages Submitted by SUBODH AGARWAL Enrollment no. : 4108163163 Management of Business Finance INDIAN INSTITUE OF FINANCE CORPORATE GUIDE: MR. ASHOK SHARMA ASST. MANAGER AGRA BRANCH, AGRA UTTAR PRADESH. ACKNOWLEDGEMENT Expressing gratitude is not just an exercise of formality rather doing so evokes the memories of my associationRead MoreProject Mgmt296381 Words à |à 1186 Pages3) 6.4.2 Estimating tools (.1.3.4) 6.3.1 Identifying resources 7.1 Activity cost estimates (.2.3.4.5) 5.1.2.4 Delphi method Chapter 6 10.5.3 Cost/schedule system (.1) 6.6 .2.1 Time performance 7.2.3.1 Cost baseline development 7.3.2.1 Earned value system (F.4) 7.3.2.4 E.V., performance status report 7.3.2.2 E.V., forecasts 7.3.2.3 EV., to complete index (EAC) 7.3.2.5 Schedule and cost variance Developing a Project Plan 4.2.2 Planning tools 6.2 Sequence activities [1.2] 6.5.1 Bar and milestone
Wednesday, December 11, 2019
Marketing Practices of Jumeirah Emirates-Free-Samples for Students
Question: Discuss about the marketing practices that are carried out by the Jumeirah Emirates Tower Hotel Group. Answer: Introduction The company selected for the report is Jumeirah Emirates Tower Hotels, situated in Dubai, UAE. The construction of hotel completed in the year 2000, the hotel is currently operated by the Jumeirah international Group and hotel includes approximately 40 luxury suites (Jumeirah Group, 2017). The aim of the assignment is to focus on the steps that are required and followed by the company for the formulation of the marketing strategies in a marketing plan. The report is formed with the objective to make new manager aware of the company situated in a market of UAE. It helps the manager to get familiar with the corporate objective of the organization that contributes to the marketing strategies that help the company in accomplishing the objective for the specific product of the company. Overview of company The Jumeirah group was founded in the year 1997 in Dubai and owned by Al Maktoum family with the Gerald Lawless with an objective to become the leader in the hospitality industry. The development of the hotel took place after 10 years; this development was required to make the hotel luxurious with the innovative services. A function of the development of hotel was managed by the specialist team of the group. After the development, the brand was summarized as a global brand having a name of synonyms of luxury. The company became the competitor for the other luxury branded hotels (Jumeirah Group, 2017). Vision The vision of the company is to become the world-class luxury international hotel or in other words to become the leader in the hotel industry. The hallmark of the company is one of the reasons behind the success of the company. The hallmark of the company says to stay different which means the adoption of new philosophy (Jumeirah Group, 2017). Culture The Culture of the Jumeirah plays a vital role as this culture worked as a guiding principle for the company which includes integrity, teamwork, people focus, innovation; recognition and stay different (provide unique and memorable experiences to their customers). Objective and goals The objective of the company is to become the leader of the luxury hotels across the world and to achieve the objective company is making use of different strategies that are helping a company to achieve the goals. The company is expanding a business to different areas to achieve goals. Product and services Each and every business works to satisfy the needs of the customer by offering them innovative products and services. the hotel consist of 400 rooms and suites, the hotel is home to 13 dining and nightlife venues which include award-winning restaurants such as Hakkasam, the Rib Room and Al Nafoorah (Booking.com, 2017). The hotel provides the elegantly furnished accommodation with facilities like impeccable room service, spa facilities, and the business services. it also provides the fashionable shopping, dining, and trend-setting nightspots and makes the company make sure that they fulfill the needs of the customers. The main product of the company is its luxury accommodation rooms and facilities (Jumeirah Group, 2017). Performance of company The company is continuously performing form last few decades and this is clear from its growth and success. The success and growth of the company began with the launch, the company soon captured the worlds attention when the company launched Burj Dubai. Burj Dubai is known as the tallest suite with the height of 321 meters. Today, the company is maintaining the hotels in Dubai, London, and New York. The major achievement of the company is that the company is competing with the other international brand. Marketing Environment The marketing environment consists of both external and internal factors that can affect the working and business decision of the company. Macro analysis The macro analysis is conducted by most of the companies with the use of the PESTLE analysis. The PESTEL analysis includes political, economic, social, technological, environmental and legal factors. Political factors Political factors include the changes in the policies by the government such as tax policy, trade policy, political conflicts, and other factors. The benefit Jumeirah Emirates Tower Hotel is enjoying is the healthy trade relations of UAE with other countries across the world (Robinson, et.al, 2016). This provides an opportunity to the company to expand the business in other countries without any political issues. The possibility of political conflict is negligible in UAE so a company can take necessary steps to expand the products and services. The rating to political factor is +4. Economic factors The economic factors include the unemployment rate, GDP, purchasing power of the people and the income distribution. The GDP per capita of the UAE is high than the expectations that means that the United Arab Emirates is having the low unemployment rate. The purchasing power of the people is high so a company can easily make the profit in UAE because the people can afford the prices of the luxury hotels in UAE (Bush, 2016). The country is having the highest amount of FDI as the country provides the trade opportunities and this leads to the competition in the market. Though, the hotel can expand the amount to provide the innovative services in the market and can retain their customers. This will reduce the threat of the company and company will have an opportunity to win the hearts of the customer by providing innovative services. The huge profit will open the gates for the company to open outlets in other countries. The rating to economic factor is +4. Social factors The country includes people of different cultures and religions and these people believe in living the comfortable lifestyles. So the people of UAE can raise the demand for the products and services provided by the Jumeirah Emirates Tower Hotels. Though, the change in the demand for the services might impact the sales and revenues of the company (Adamkasi, 2017). These factors might create the impact on the decision of the company. The rating to social factor is -4. Technological factors The technology advancement is creating an impact on each and every business; similarly, the hotel industry is also getting affected due to the technology advancement. The youth generation of UAE is used to with the technology advancement and this increases the demand of people by the Jumeirah Group along with this the company is ready to spend the amount for the purchase of the advanced technology. Though, the company believes in providing the innovative products which are possible with the use of technology. So a company should make use of technology for increasing demand and expand the business across the borders (Mariani, et, al., 2016). The rating to technological factor is +4. Environmental factors The environmental and weather changes can directly impact the hotel industries. Hotel industry can impact the environment this is the reason company have to fulfill its corporate social responsibility. The company is using innovative ways through which they can sustain the resources and energy. The company started strategy Going Green in which the company installed motion sensors with the help of which the company can switch off lights and set back air conditions at a set temperature which helps the company to save the energy. The company is also following the energy and water saving initiatives and Waste Recycling (Jumeirah Group, 2017). The rating to environmental factor is +4. Legal factors The legal environment plays a vital role in the expansion of the business. The laws and regulations create an impact on the working of the country. The company has to follow certain laws such as health and safety laws, minimum wages act and some other trade laws can affect the expansion of the business in other countries (Bush, 2016). The changes in the laws of the country can impact the operation of the company in Dubai. The rating to legal factor is -4. The final index of the PESTEL analysis on the company is derived by dividing the sum of the 6 factors rating with 24. The decision rule is that the overall macro-environment in which company operated is favorable because the index is more than the greater than 0.45. SWOT Analysis The SWOT analysis of the Jumeirah Group shows the internal and external analysis in which the strength and weakness is internal analysis and opportunities and threats are external analysis. Strength Jumeirah Group is located in Dubai which is well-known place for the tourist most of the people like to visit the place which motivates the company, The company provides the diversified products and services to the customers that make it different and works as a strength for the company. Considering the living standards the company offers different and attractive packages to their customers which helps the company to deal the competitors (Jumeirah Group, 2017). Weakness In Jumeirah Group, many employees are working who belongs to different nations and have their own culture this leads to the cultural differences which affect the working of the company. The economy level of the business or the industry might get affected because the Dubai is known as the most expensive city. This might reduce the traveling and tourism which affects the sales and revenue of the company. Opportunity The company should make the price affordable for the people as this is the only way to enhance the local as well as the foreign customers. Initiatives taken by the government of UAE open the door for the company to expand the business in the Dubai or across the boards (Jumeirah Group, 2017). Dubai is considered as the tourism and business hub ad it has the high business growth prospects. Threats The development of the numerous cost-effective and stirring competitive places like Muscat, Kuwait city, and Doha is becoming a threat to the company. Lack of training and development to the human resource in the hotel industry is becoming a barrier for Jumeirah Group (Jumeirah Group, 2017). The hotel industry is the growing industry especially Dubai, the company should make use of their strength to grab the opportunity by doing so a company will achieve the success. The company should consider the threats and for that, the company can make the competitive strategies along with this the company should try to convert their weakness into their strength. Pyramid of Corporate Social Responsibility Corporate social responsibility is a business approach that contributes to the sustainable development by providing social, economic and the environmental benefits to all the stakeholders (Tai, and Chuang, 2014). The pyramid of corporate social responsibility includes philanthropic, ethical, legal and economic responsibilities. The company believes in fulfilling the corporate social responsibilities and this is the reason company deliver its business in a sustainable manner that contributes to the social-economic growth of UAE (Suliman, Al-Khatib, and Thomas, 2016). The company also believes in promoting UAEs culture, heritage and promote the environment by implementing the long and lasting strategies in its operation. Some of the corporate social responsibilities are discussed below which shows that the company follows the pyramid of CSR (Capaldi, 2013). The company supports the external organization who promotes the sustainability; EEG (Emirates Environment Group), this group protects the local environment through action programs, education and community involvement. DTCM (department of tourism and commercial marketing) also promote the suitability by participating in Dubai Green Festival (Jumeirah Group, 2017). The company also believes that the social and economic initiative. Jumeirah Emirates Tower lends a hand to DCSN (Dubai Centre for special needs, an NPO that provide special care to disable children's) along with this the company promotes the health campaigns (Green Globe, 2013). The company incorporates local culture and heritage through Iftar celebrations which are linked with the spirit of stay different. The company believes in Energy and Water saving, for this, the company made use of different innovative technology that helps the company to fulfill this ethical responsibility. The company is also focused towards the waste recycling; Jumeirah Emirates Tower is focused towards the waste segregation and recycling. Paper, glass, metal, aluminum, plastic, and used cooking oil is included the waste recycled categories. This shows that the company wants to generate the environment protection (Jumeirah Group, 2017). Target market The Jumeirah Emirates Tower Hotels target the different segments of the country which include demographic, behavioral, and geographical (Firat, Turker, and Metin, 2014). The company provides the services to the people having the age group of 18-25 and 25-65, both male and females. The people having the professional business and are involved in the business are targeted by the company. The company target to the people who believe in the lifestyle and the brand status. The people who think that the services provided by the company diversify and unique are also welcomed by the company as the perception of the people varies. The hospitality industry is showing a rise since 2000, the hotels just raised under 400 with 25,000 rooms to over 670 properties offering approximately 98,000 rooms. This shows the number of tourists who visit Dubai was over 14.9 million in 2016. At that time the company target the audience and expanded the international portfolio of luxury hotels to 6,028 rooms across the world (Dubai Holding, 2017). Positioning The positioning defines the position of the company in the market among the competitors. The company is looking to leads the position of having the luxury hotel and the customer or target audience also believes that the company a having the position in the market (Hollensen, 2015). The company comes in the graph having high quality with affordable prices. The company is able to compete with the competitors because the make use of the innovative technology and along with this the company accept the changing environment which helps the company to face the competition. The company is able to provide the customer satisfaction which enhances the market share of the company. Recommendations Conclusion It is recommended that the company should expand the business in the other countries and should prepare the financial estimation. The company should make use of promotional strategies to promote their product in the market. The report talks about the Jumeirah Emirates Tower Hotels, which is a hotel situated in Dubai UAE. The main product of the company is the luxury accommodation facility that helps the company to achieve the success in the market. The report includes the factors that can affect the working of the a and the SWOT analysis which helps the company to identify the opportunity. Furthermore, the report includes the CSR followed by the company and the target market and positioning of the company. References Adamkasi, 2017, PESTEL Analysis of Hotel Industry, Viewed on 4th December 2017, https://freepestelanalysis.com/pestel-analysis-of-hotel-industry/ Booking.com, 2017, Jumeirah Emirates Towers, Viewed on 4th December 2017, https://www.booking.com/hotel/ae/emirates-tower.en-gb.html?aid=357026;label=gog235jc-hotel-XX-ae-emiratesNtower-unspec-in-com-L%3Aen-O%3AwindowsS7-B%3Achrome-N%3AXX-S%3Abo-U%3AXX-H%3As;sid=6c860ceca0ccf76cd89e0f3452f363e5;dist=0sb_price_type=totaltype=total Bush, T., 2016, A PESTLE Analysis of The UAEViewed on 4th December 2017, https://pestleanalysis.com/pestle-analysis-of-uae/ Capaldi, N. ed., 2013. Encyclopedia of corporate social responsibility (Vol. 21). New York: Springer. Dubai Holding, 2017, Hospitality, Viewed on 4th December 2017, https://dubaiholding.com/en/our-impact/hospitality Firat, A., Turker, G.O. and Metin, I., 2014. SPECIFICATION OF TARGET MARKET IN SMALL AND MEDIUM SCALE ACCOMADATION BUSINESSES: A STUDY ON BOUTIQUE HOTELS OPERATING IN CITY OF MUGLA.International journal of academic research,6(1). Green Globe, 2013, Jumeirah Emirates Towers, Dubai: Strategic Approach to Sustainability earns Green Globe Re-Certification, Viewed on 4th December 2017, https://greenglobe.com/latest-news/jumeirah-emirates-towers-dubai-strategic-approach-to-sustainability-earns-green-globe-re-certification/ Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education. Jumeirah Group, 2017, Corporate Social Responsibility, Viewed on 4th December 2017, https://www.jumeirah.com/en/hotels-resorts/dubai/jumeirah-emirates-towers/facilities-services/corporate-social-responsibility/ Jumeirah Group, 2017, Dubais Finest City Lifestyle Destination, Viewed on 4th December 2017, https://www.jumeirah.com/en/hotels-resorts/dubai/jumeirah-emirates-towers/?utm_source=googleutm_medium=google%20placesutm_campaign=hotel Jumeirah Group, 2017, Facilities, Viewed on 4th December 2017, https://www.jumeirah.com/en/hotels-resorts/dubai/jumeirah-emirates-towers/facilities-services/ Jumeirah Group, 2017, In The Beginning ..., Viewed on 4th December 2017, https://www.jumeirah.com/en/jumeirah-group/about-jumeirah-group/ Mariani, M.M., Buhalis, D., Czakon, W. and Vitouladiti, O. eds., 2016.Tourism Management, Marketing, and Development: Performance, Strategies, and Sustainability. Springer. Robinson, P., Fallon, P., Cameron, H. and Crotts, J.C. eds., 2016.Operations management in the travel industry. CABI. Suliman, A.M., Al-Khatib, H.T. and Thomas, S.E., 2016. Corporate Social Responsibility.Corporate Social Performance: Reflecting on the Past and Investing in the Future, p.15. Tai, F.M. and Chuang, S.H., 2014. Corporate social responsibility.Ibusiness,6(03), p.117
Wednesday, December 4, 2019
The Current Economic Crisis and Lessons for Economic Theory
Introduction The global financial crisis has greatly challenged the economists, financial institutions and political leadership. The effects that arose from the crisis still affect some regions of the world to date. This is typical of the austerity measures taken by some of the western economies.Advertising We will write a custom essay sample on The Current Economic Crisis and Lessons for Economic Theory specifically for you for only $16.05 $11/page Learn More In fact, the effects of the global financial crisis caused a series of economic bubbles that threatened the stability of the European Union. In this light, the following paper will discuss some of the critical tenets in Stiglitzââ¬â¢s article shown as the title of this paper. The article is presented in a simple, friendly format, yet the issues addressed are principles according to which modern economies function. Although economy recovery cuts across the globe, there is a constant fear that the world could slip back to the recession, especially after the threats posed by debt default and the need to curb the amount of debt for the U.S., amidst threats of war and poor global banking practices, are a great concern to economists. However, Stiglitz attempts to shed some light on pertinent issues and possible approaches that can address these problems. This may offer a glimmer of hope to the modern day uncertainties in the economy world. The synthesis of the article Stiglitz presents a systematic analysis of the global economic crisis in which he reveals the cause, the reality and the aftermath of the economic crisis (Stiglitz 281). The historical perspective of the global recession informs the failures of the economists and financial institutions to prevent the crisis. Some of the vital principles of practice were overlooked as the recession took shape. In this respect, the paper focuses on two aspects. First, as a matter of urgency, there is a need to refine the principles a nd the practices of the banking sector as this sector plays a critical role in the economy of every nation. The second aspect is the need to synthesize the lessons learnt from the crisis and how they affect intellectual processes of teaching and learning. On the same note, there is a need to re-evaluate what the nations pass on to the next generation both professionally and scholarly (Stiglitz 281). In the view of Stiglitz, the recent economic depression began in the United States and later on, affected the rest of the world (Stiglitz 282). The global effect of the recession could not subside by taking a global approach. The feeble globalization principles forced each nation to react to the situation at an individual level. Even more, the recession affected the countries at varied degrees. Therefore, different countries overcame the crisis at different times (Stiglitz 282-283). In this respect, the United States employed a number of strategies to address the looming crisis. The firs t initiative against recession was the stimulus program. In this arrangement, the government increased its debt from about $5.7 trillion to an increasing figure of over 10 trillion dollars (Stiglitz 284).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Stiglitz believes that stimulus programs should have been anchored on building human capacity in skills and training, building a social and physical infrastructure and coming up with novel technologies (Stiglitz 284). There is a need to stabilize the economy by reducing expenditures by an estimated figure of 5 to 6 percent of the GDP (Stiglitz 284). The second initiative was to understand the fundamental problem of recession. Putting more money into the economy systems would not offer a solution without addressing the specific issues in the financial sector. Therefore, identifying the causes is an independent point of consideration. The third initiative was to use the information drawn from the problems to reorganize the financial sector (Stiglitz 285). Reorganization of the financial sector involved an elaborate and systematic plan of actions touching on all the ancillaries of the sector and projecting the plan into the future (Stiglitz 291). As the article draws to the end, Stiglitz synthesizes the role and position of the economists before, during and what they ought to do afterwards (Stiglitz 293). In this part, the article details the scholarly, professional and principle perspectives of the lessons learnt from the economic crisis. The article is philosophically and empirically critical regarding the objectivity of the theory of the invisible hand and the modern economy theory of imperfect information (Stiglitz 293). There is a need to analyze, compare and contrast the ageless principles and theories employed in economics and narrow down to how they affect real economic indicators. Such indicators include, taxation , mortgage industry, bonds, the trends in the financial markets, GDP of regions and countries, inflation, trends in investments, budget deficit and policy formulation (Stiglitz 293). Understanding the reality of recession in perspective of the economic theories The effects of financial crisis are far-reaching, not only geographically but also across time. Five years after the economic depression, most investors still do not have the confidence and certainty in where to invest and how to manage their finances. Studies show that massive investment may come with its own risks and this is possibly why most investors are hesitating (Green para. 3). Therefore, it is vital for investors to learn from the past and distribute their risks by increasing their investment portfolio (Green para.10). The challenge comes from the fact that recession may begin with a given economic sector but may affect many sectors either directly or indirectly. The same phenomenon affects the economic practices of governments and institutions. The financial effects of recession are objective and not imaginary. Stiglitz observes that the effects experienced by the US and the entire globe had nothing to do with the invisible hand as Adam Smith had stated in the classical economic theory (Stiglitz 293).Advertising We will write a custom essay sample on The Current Economic Crisis and Lessons for Economic Theory specifically for you for only $16.05 $11/page Learn More A critical analysis of the causes and effects of the economic recession reveals the need to re-evaluate the enduring economic principles and theories. That is because the economic indicators and empirical relations of economic parameters fail to accurately predict recession. They also fail to systemize the cause of the effects from one form of investment to another or in different industries. In effect, most economists believe that lack of empirical clarity and certainty, with regard to recession, is a function of imperfect information. This is the dominant aspect in the modern economy theory (Stiglitz 293). Studies show that a direct instruction to a financial institution may affect the decisions the institution makes with regard to financial indicators (Global inflation Para.5). But the challenge still remains on whether this turns out to be the invisible hand. It should also be observed that other than instant, direct influence on financial policies, financial institutions apply policies which effects become manifested later on and in a direct way. This is the case of Investment bank Lehman Brothers Holdings. Short term bailouts by the government or other financial institutions cannot address the effects of bad policies and failed implementation of these principles (Green Para.1). The stimulus programs and government institutional bailout usually function according to the same principle of offsetting the current crisis, with the view to stabilize the situation over time. In su ch a case, investment in infrastructure, building a robust work force and developing better technologies are beneficial over time (Stiglitz 282). Financial bailouts and stimulus programs, plunged into consumerism, are ultimately detrimental to the economy. The institutions increase in liability with a reduction in assets and thus, face high inflation. The problem of inflation not only lies in bad investment policies of stimulus funds, but it is also rooted in the monetary and fiscal policies of the institutions and the government (Global inflation Para. 4). In perspective, poorly formulated stimulus programs and borrowing for consumerism do not solve challenges of recession. Governments may fail to curb on borrowing figures, or give more funds to the affected institutions but these may not make them fit to survive. The question of a country, institution or organization surviving from recession is evident in the social application of the Darwinian Theory of natural selection.Advertis ing Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More If the countries are not bailed out and stimulus programs fail to rescue institutions, they are bound not to survive. Therefore, recovery plans from recession must be rooted in informed institutional policies, principles and theories. Quick bailouts and direct instructions may not bear long term fruits as far as curbing recession is concerned. This requires intensive, strategic research and implementation. Scholars and the government need to shoulder the responsibility of preventing and overcoming economic depression Works Cited ââ¬Å"Global inflation. Back to the 1970s?â⬠The Economist. 2004. Web. Green, Kelly. ââ¬Å"What we learned from the financial crisisâ⬠. Wall Street Journal. 2013. Web. Stiglitz, Joseph. ââ¬Å"The Current Economic Crisis and Lessons for Economic Theoryâ⬠. Eastern Economic Journal 35.10(2009): 281-296. Print. This essay on The Current Economic Crisis and Lessons for Economic Theory was written and submitted by user Fiona Cochran to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.
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