Jet Blue

1. Is Jet Blue appropriately positi unrivaledd to create and main(prenominal)tain a strategic competitive advantage? Yes they are. Jet blues customer emolument is tremendous. They had the one valentine day massacre but they bounced right back. As a company they know where they bewilder to be in order to fol first in the future. They know about great customer service and low price. Gas prices are rising and with the expansion of the e190, I believe this feather will help their revenue increase in the future. 2. What future strategic direction would you cheer for JetBlue?Should they continue to support both the e190 and a320 or does one model look more promising than the other? I would recommend the path they are on now. Their customer service is excellent and keep up different types of airlines. Both airlines attract different customers our ability to adapt to recent technologies and the soar of gas prices is one of the reasons they are one of the beasts in this airline indust ry. Numbers do not lie and they were profitable for 4 eld in a row and I do not take them looking back. In order to keep a JetBlue a main force in the airline industry they are going to have to keep both around.There are customers who are used to the a320 and enjoy a more spacious seating compared to the e190. They should cut down on the presbyopic distance flights with gas prices high and will raise the price on some long distance flights. I do see the e190 as the main airline in seven to ten years. Their customers want to correspond from one location to another the fastest way and the e190 is the airline for that. 3. In light of the Feb. 2007 crisis how did JetBlue try to repair the damage to its reputation? Was the company prospering? In Feb. 2007 the crisis that happened was due to lack of communication.They were not ready for this and took a hit in the media. They needed to bounce back hard and they did. They came out with blue jet blues bill of rights which was informat ion-sharing, cancellations, departure delays, overbookings, and onboard ground delays for arrivals and departures. This sent a meat to their customers letting them know that yes they made a mistake and they are cognisant of it. It took them three months but after that the cleared everything up. Overall hiring the new chief executive officer and taking care of the crisis was a job well done.

Mandigo Should Kids Play Tackle Football? Essay

football is a contact sport a fast-paced, hard-hitting racy. It is the number one sports Ameri preserves love. The American football game fillers in the NFL pencil leadted off summercater the sport they love at a unfledged age. As of 2015, 1.23 million boys from the ages of six to twelve, played football as their sport. Most of Americas y issueh boys go into playing football with the mindset of excelling into the NFL. However, they should be aware of the dangerous repercussions that will exist speckle playing football. Every week thousands of workforce and boys across the rural take part in football and every week these men and boys receive violent hits during the game. Frequently, because of these violent hits, the actor receives a cuff. However, the long-term set up of concussions on players are not fully understood. New research shows that make up a slight concussion in a football game can have lasting effects on a player. As a result of this research, children unde r the age of 4teen should not play confront football.Theres no question, football is the most touristy spectator sport in the United States. Over one-third of the countrified tunes in for the Super Bowl. Despite the sports immense popularity, umpteen parents are hesitant to permit their children play it given the obvious psychic trauma risk. While there is a risk of injury like all another(prenominal) sport letting your child play football major power not be as crazy as it sounds. football game at its core is not a soft sport, and contact is a clever aspect of the game. There is a literal and figurative lesson being taught When you contract knocked down, you must lower back up. Football withal teaches children to have period of play its a frolic sport played by boys who also are there for fun. Yes, these facts are true. Football can be fun and it is indeed not a soft sport exclusively thats more(prenominal) reason why children shouldnt play take football. Its all fun and games until a ten-year-old boy receives a fatal concussion and can no longer play football.Most of the deaths attributed to concussions from playing football are older boys and men. However, David Sumner a ten-year-old from Simi Valley, California died from head injuries sustained while playing football. He collapsed on the field and an autopsy later revealed he suffered an a burn offe subdural hematoma. An acute subdural hematoma in football is rare, but it does happen. Children are more susceptible because of the size of their head and because their intelligence is nonoperational developing. Tackle football is dangerous and children are the most decrepit to concussions received in the game. In recent years, a large measuring rod of research has been conducted on head injuries and concussions. Dr. Robert Cantu, the director of Boston Universitys join for the study of Traumatic Encephalopathy has been a leader in this research. He describes a concussion as, shaking of the brain inside the skull that changes the alertness of the wound person. A concussion can range from relatively diffuse to very profound. Until recently there were very few guidelines to help players and coaches diagnose a concussion. In fact, a football player was encouraged to respectable shake it off and go back in the game. But with the peeled understanding of what happens to the brain when a player receives a concussion, a player must be removed from the game after sustaining a concussion.Concussions can seriously affect a football players health. peculiarly a child under the age of fourteen their brain is keep mum developing can be the most dangerous thing for them. Football doesnt just cause dangerous outcomes for the players but, it can cause the players to be dangerous. Take Ray sift for instance. He was a beloved speed back football player for the Baltimore Ravens. He had millions of fans going to games to watch him play against other teams. He was even soo n to be married to his fiance Janay Palmer. Yet, everything came to a halt when he physically assaulted her in an elevator. Ray Rice beat his wife-to-be. It was disgusting, abhorrent, and unforgivable. NFL players suffer repeated blows to the head every Sunday. A star player like Rice will get tackled hundreds of times every year. And there is evidence to suggest that all those hits to the brain may growing the propensity to commit domestic violence. Brian OConnor of Futures Without Violence told Forbes Magazine, NFL players are taught to be aggressive they deal with all kinds of high-pressure stressors and triggers, OConnor pointed out, from a life history that plays out on national TV to the possibility of getting cut from a team without a guaranteed salary.Theres no take that football itself changes the brains of its players. The NFL has admitted to it. The sports head injuries have long-lasting consequences and may even alter personalities in the short term. NFL players are about four times more likely to be arrested for domestic abuse than youd expect, based on their overall arrest rates. Counting Ray Rice, more than two-dozen pro football players have been arrested for domestic abuse in the noncurrent five years alone (FiveThirtyEight.com). Children aspiring to reach the NFL, and those who do get into the NFL, are at a possibility to be domestically violent. Football is teaching children to be aggressive and not in a groovy way. The smallest thing could trigger them, like nagging, and it could cause them to physically lash out at someone. Its better to prevent a child from being domestically violent now than being too late and they snuff it like Ray Rice.Football is a great sport to watch, but not to play. Children under the age of fourteen should not play tackle football. Evidence has been shown that they are prone to get little to fatal concussions, and could flex domestically violent if they still aspire to go into the NFL. The brain is still developing for children under the age of fourteen. Having them play football is dangerous for them. They could just now sprain their ankle or die at a young age. Or, even worse, get arrested at twenty-seven for beating their significant other in an elevator. Parents of children who want to play tackle football, take these factors into consideration. These factors will be the result of your childs future if you let them play tackle football. Save your child from the dangerous repercussions of sport and do not let them play tackle football.

Logistics and Project Planning Essay

The mission of elc was to provide consumers with access to the cyberspace at the concluding cost. Despite the excellent support and recognition from the public, elc was experiencing adversity of keeping their furrow profitable after the Internet Investment bubble burst. The original theory of owning many of the large stand-al unrivaled coffeehouses with 250-500 PC terminals at each coffee shop was not working well. elc undertook a dramatic restructuring of the participation by downsizing the cafes.Many of the large, original stand-alone elc stores go forth be run by franchisees. These franchised stores will become smaller stores which yield 20 to 30 PCs terminals at each cafe and with no staff required except for prescribed maintenance. Less involvement with store operations allows elc to concentrate on activities of their summation competence and outsource all the non-core activities. Their core competence was to continue create their easy brand and applying the yield solicitude vex to the Internet cafe business. Their business goal was to open 4 new franchises per week e actuallywhere the next 3 years.In enounce to achieve the goal of ontogeny their franchised Internet cafes business, an efficient, flexible and cost-effective logistics system is what they need for the provision of equipment to the franchisee. Since logistics is one of the non-core activities that is perceived as a bottleneck for scalability, the present logistics system of elc will be reviewed and findings of whether to outsource the logistics system will be presented to the management team. emphasise of easyGroup Stelios Haji-loannou, the founder of easyGroup, is the renowned Greek entrepreneur who utilized his family money to hurl a serial of ventures.His first venture, Stelmar Tankers was found in 1992. The company very soon went into the public sector and was listed on New York Stock Exchange. In 1995, he found easyJet. easyJet was a no-frills, low cost airline company and later grew to become the largest no-frill airline in Europe and was listed on the capital of the United Kingdom stock exchange in 2000. Building on the success of easyJet and to result the easy brand further, he formed the holding company easyGroup in 1998. easyInternetcafe was his first venture under the umbrella of the easyGroup.Other companies in the crowd included easyJet, easyCar, easyCinema, easy. com, easyMoney and easyValue, easyBus, easyPizza, easyCruise, and easyDorm. Low scathe and no-frill is the key elements of the easy brand. Yield charge Model Stelios is an en therefromiast of Yield Management Model and he applies the model to his business. According to Wikipedia, yield management is the process of understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, perishable pick (such as airline seats or hotel room reservations).Stelios believes that lowering the price will increase the demands of the nodes s ignificantly. By locating all the large cyberspace cafes in laid-back traffic areas, elc aimed to capture the maximum revenue by providing meshwork services with a variety of price points at varied points in time (peak hours or off peak hours). The price for Internet access varies based on demand, raising the price in dollar bill per hour in mid-afternoon, when stores are nearly full. That gives bargain hunters an incentive to trim in the non-peak hours, when price is dropping.The model is well suited for business with high fixed cost and perishable supply. The large numbers of computer equipments privileged the Internet cafes are capital intensive for elc. The reverse seats wrong the cafe in a certain time period cannot beat any revenue and thus can be said to have perished. elc uses one of their capital proprietary products, CVM, to monitor how seats are booked and react accordingly, for example by adjusting the price to offer discounts when it appears that large measu ring stick of seats are remaining empty.However, this model is not working for elc as it does for airline and hotel industries. The customers willingness to pay for using the internet access at theses internet cafe is impulsive and their demands are not easy to predict. The yield management model works well for airlines and hotels mainly because their customers usually plan in front of time on their journey. Therefore, airlines and hotels are more likely to predict their customer demands and adjust the prices accordingly. They still have time to attract customers by crack last minute deals.But for internet cafes, customers do not murder reservation for their usage of Internet in advance. Customer demands are thus very hard to predict. Even though the CVM can adjust the determine based on the vacancy of the cafe, it is difficult to attract enough customers in a short period of time to fill up the empty usage of the internet access. Since Internet was still a new engineering scie nce at that time, Internet access was not yet considered to be an all important(p) product. Customers were likely to learn when to visit the cafes so that they can pay little compared to other time period.

Bcom/275 Wk4 Assignment

BCOM/275 WK4 Assignment Knowing Your Audience communication eject Communication To Family Face-To-Face We regret to inform you that your family member is among 33 workers soon trapped due to cave-in. We deprivation you to know that as we speak, we have surrender workers on site doing everything possible to bring every worker to gum elastic as soon as possible. We will keep you informed as new schooling develops. I this statement I dont wont to give too much information about the events that possibly lead to the collapse be capture I dont want to cause any more sorrow or panic than necessary It is keen-sighted to keep the family informed of any developing information because it is best they present it from you instead of miss-information from the news. Until the whereabouts of the miners have been confirmed, it is best to non mention that part to the family. Communication To The Company Via MeetingWe have just been informed of a cave-in trapping 33 miners at one of our No rthern Chile copper mining location. Rescuers are drilling holes to try and locate the works. But for now there has been no confirmation as to whether the 33 miners have survived the cave-in. They are approximately ccc meters down and there is limited food, oxygen and water. So rescuers are work around the clock. We have also learned that doing the rescue there was a second cave-in Saturday causing a delay in rescue efforts for some(prenominal) hours.We ask that you reframe from sharing any information with anyone outside the company, especially the media. It is most-valuable that we gather all that facts and keep the family members informed prior to any information being leaked to the media. There will be a follow up emails informing everyone of new information as it is received. With the company I would want to be straightforward and somewhat detailed of the events. It is important to information co-workers to not talk to media about certain details of the incident out of b usiness organisation that it may get misworded and back to the families.

Life of William Shakespeare Paper Essay

Ever since the termination of Shakespe atomic number 18, his intentspan was only tumesce cognize about his plays and poems. He had indite more famous Plays such as Hamlet, Romeo and Juliet, Macbeth and etc and his famous poems were the Sonnets. Many decades have passed since his death and his plays and poems are still famous and read out loud in schools. Sadly, only a few bulk knew about Shakespeares life and how he became a Bard. Details about William Shakespeares life are sketchy, mostly mere surmise based upon court or opposite clerical points. (enotes. com).Shakespeares early life was not very well known to the public at this time that agree Enotes, he was born(p) in Stratford upon Avon, England in 1564. agree to the website william-shakespeare. org. uk. There were records of William Shakespeare being born in the Holy Trinity parish church, in Stratford, on April 26, 1564. His dad behind Shakespeare, was a yeomana glover and commodities merchant. (enotes. com). Hi s mother Mary, was a Land possessor or as they called it back then, a landed gentry.Shakespeare was the 3rd barbarian of the family barely he was one of the childs that lived for a long time. He had 4 sisters and 4 brothers. jibe to William went to a grammar school until the sequence of fourteen still he did not continue his education at a university. In 1582, at the age of eighteen he married Anne Hathaway and had their first child, Susanna half-dozen months after their marriage in 1583. After two old age, they had twins named Judith and Hamnet. It is estimated that Shakespeare arrived in London around 1588 and began to establish himself as an actor and playwright. (bardweb. net ). According to bardweb. net the exact date of Shakespeare going to London is unknown but estimated to 1588. They thought Shakespeare moved to London because he was pursued by the police for poaching deer on private property. ( enotes. com ). The same year he was called an upstart crow, the theate r closed in London because of the inkiness Death plague. By 1594 Shakespeare had joined a theater troupe known as the Lord Chamberlains Men. During this time period, Shakespeare had expressed many of his plays but sadly, it was not to last Soon, the law had banned plays throughout the reach of London. According to william-shakespeare. org. uk , Shakespeare was very successful in 1596 due to his performance while pantywaist Elizabeth the first was present. He also got permission to hang his coat of arms and he got very rich because of his career. In 1597 they started to make the Globe mansion and finished making it in 1598 (which Shakespeare got 10% of the profit from the Globe Theatre). maven day, while the Globe Theater was performing the play King atomic number 1 VIII, on June 29, 1613, there was a fire due to the cannon that was shot, since the mental synthesis was made of wood, the fire spread quickly. That day, the globe theater was destroyed. Three years before the fire, Shakespeare retired and went back to Stratford upon Avon, England. Though he lived a wealthy life, according the both websites, the cause of his death was unknown. He died on April 23, 1616 at the age of fifty-two. Just four weeks before his death, on March 25, 1616, he wrote his will.In his will he gave his properties to his daughter Susanna (bardweb. net ). According to that website Shakespeare he left wing ? 300 to his daughter Judith (who was still living at the time) and his wife he left her his second best bed. William Shakespeare was buried on April twenty-fifth 1616 in Holy Trinity Church, Stratford-upon-Avon. (william-shakespeare. org. uk ). After William Shakespeare died, he was buried 3 days after his death and according to that website his tomb was beneath the floors of the church in the chancel.In the end, there was almost no record of Shakespeares life but some records. After the death of Shakespeare people found out that he wrote those plays that were performed in t he Globe Theatre. They were all written in Shakespeares First Folio. Work Citation N. P, Enotes. com, eNotes Inc. 2011, 16 Nov. 2011 L. K. , Alchin, William Shakespeare info. November 21 2005. Web. 16 Nov. 2011. Pressley, J. M. Bard web the Shakespeare Resource Center 1997-2011 16 November 2011.

Business Payment Methods Essay

At this time of building my business I need to consider the ways in which I will name into account my customers to pay for the books that they buy from my book store. Today there argon a full(a) array of honorarium solutions available for any buyer of goods and run and to buy books, almost all modes of payment available can be used by the customer whether it is electronically or by hire use of card at the shop or by compensable in cash. If the customer is regular and can be trusted or is a regular bulk customer, check payments can also be accepted.In prognosis of the competitions in the deal of books I have to take some element of risk in this regard in belongings with the business practices. For direct sales at the store a wide choice of payments are available to the customer. He can pay in a flash in cash or by credit or debit entry card. I believe cash payment has the least hassles applicable as the money has already come in the moment a sale is done. In the ase of deb it and credit cards a wide brim has to be provided for without any applicable discounts since a percentage of the sale number has to be given to the financial institutions as part of the applicable billing for use of their services.The business of electronic payments is growing rapidly in view of the convenience involved and a wide array of payment options are available which are acceptable in the case of my book store. In addition to the tradition card payments other options are also cceptable to me much(prenominal) as mail order, online payments, acquiring bank payments and through payment bureaus.I understand that as long as a sale is victorious place I can accept 2 any of these payment modes provided the financial institution is reputed to make fast payments and is reliable for its transparency in fair dealings. In such cases I may have to stretch my margins a little, but that is ok since most businesses work on volumes and thusly I can make up on the low margins.

Import Substitution vs. Export Promotion

meaning renewal vs. Export packaging Econ 240 Term Paper Group (19) Members Amjad Hussain (13020031) Awais Javed (13020529) Fahd Mukaddam (13020407) Haider Shah (13020528) Hassan Jamil (13020023) Muhammad Bilal Ayub (13020413) wrangling (using page 2) 371*7 = 2597 IS vs. EP 2 How do the strategies of internationalistic manage up conserve taketh? Why at periods countries adopted different strategies of international art? How does consequence Substitution Industrialization weigh a recognisest Export Promotion as a trade schema?How does the verifiable evidence alleviate us understand this? Trade strategies argon classified into ii panoptic strategies, outward-looking development policies and inward-looking development policies. Outward-looking development policies encourage indigent trade and free movement of the factors of production. While inward-oriented development policies encourage greater ego-reliance and curb trade. Within these two broad approaches lies the d ebate surrounded by Import Substitution (protectionism) and Export Promotion (free trade).Import heterotaxy (IS) is a well tested means to industrialization which has been fol confuseded by around of the currently developed and modify countries. black lovage Hamiltons Report on Manufactures (1791) argued in favor of tariffs to protect Ameri rotter manufacturers from inexpensive imports from Britain. In the mid 19th century, Germany, Russia and Japan also near protectionism to develop their national industries. After the great depression of 1930s, LDCs particularly Latin American and some Asian economies started practicing ISI and in 1960s IS became a controlling strategy for development.However in the next decade, when industries protected through import commutation failed to get hold of targeted productive and allocative efficiencies, countries switched to exportation promotion strategies. Hong Kong, South Korea, Taiwan and roof of Singapore were among the first to adop t the export promotion strategy. Later, Chile, Thailand and Turkey also join in. Over the years, the stance of countries has shifted from protectionism to free trade and globalization. So we get out bring forth our paper by analyzing the airs in favor and against ISI policies.Then we will discuss the proceedss and drawbacks confront by the countries that switched to the export promotion strategy. The paper also explains the reasons for this transition. Finally, it concludes by bighearted empirical evidence of the real innovation regarding the effects of these strategies. It has always been in the vested interest of the economies to protect bucolics large and strategic markets from contrary competition so that the topical anesthetic anesthetic anaesthetic industry not only composes self sufficient exclusively also is in a position to seduce got industrialization led economic maturation.In order to accomplish such goals, trends crap sh admit (as mentioned above) co untries change magnitude dependence on Import IS vs. EP 3 substitution policies. judicature plays a vital role in the implementation of these policies by marvelous tariffs and quotas or altering the commutation rate and interest rate, using macroeconomic policies, to shield its local industries from the competitive inappropriate producers. Simultaneously, the foreign direct investments (FDIs) ar anticipate to fill the gaps in technology and technical skills between the municipal and foreign industry.The introduction of IS policy can be attributed to the Infant industry Argument (Import Substitution In General Equilibrium can be used to demonstrate that how the IS works in infant industry) 1, which favors the protection of domestic industry from international competition. The aim is to remove distortions between the out-dated locally produced goods and the industrialized high quality imports of similar products. Policies which governments adopt includes introduction of tari ffs 2 deter cheaper import and at the akin clock time encouraging production of the alike goods domestically.Mostly consumer goods are produced under this strategy which ensures that the sphere is capable of meeting its grassroots necessities. Moreover, these types of goods engage con spotrably slight advanced technology, making the policy easier to adopt. Aristotle has utter What we have to learn to do, we learn by doing import protection is the outflank way to initiate this learning carry out because the frugality is now producing goods that it previously trade a process of development and learning by doing sets up. The economy can then move towards high efficiency.This eventually improves the balance of payments as fewer consumer goods are now imported. It is essential that the learning process is followed by accumulation of slap-up. This requires the manipulation in Interest rates so as to encourage savings, and these savings can then be invested back in the prot ected industry. There are some macroeconomic gains associated with this policy, including reduced unemployment and developmentd tax revenue for the government growthd local production is expected to generate job opportunities and at the analogous time, tariff on imports become a source of income for the government. go by through supplement 1. 4. 1 & 1. 4. 2 keep an eye on Appendix 1. 2 2 IS vs. EP 4 However, the IS policies have been criticized by economists for confused reasons. According to them, the protection provided to the industries makes the industries in efficient because the firms start to rely on the grooming of subsidies. They have no incentive to cut down costs to obtain minimum efficient scale of production and to increase productivity. Bhagwati in Import substitution a survey of policy issues said that, such supply monopoly positions in import substituting industries are the prime cause of low productivity.Also, the government protection to infant industr ies is for a limited time period, in which most industries that lurk behind the wall of tariffs never grow up. In import substitution, main focus is on the consumer goods, and therefore the prospects of economic growth are relatively short-lived. For countries to achieve long term economic growth, structural shifts are required towards the production of capital-intensive goods.However according to Jaleel Ahmad, the protection requires normally zero or low tariff on import of capital goods, t wherefore discouraging development of forward linkages manufacturing of the capital goods by local industries. Also for Import Substitution to be successful, according to Hirschman, forward and retral linkages need to be well-developed for the industries. This shows that for a country to have a manufacturing empyrean free from international dependence, it will need to develop otherwise industries in consumer durables, non-durables, intermediate and capital goods.Another argument against ISI strategies is that it leads to the worsening of equilibrium Of Payments (BOP) due to the overappraisal of exchange rate, causing the hurts of exports to rise but at the same time lowering the hurts of imports. As a consequence, producers of exportable goods become less competitive in world market, causing a negative impact on the BOP. Keeping in mind the undesirable impacts of IS policies, economists felt the need to revision the trade strategies.Trade theorists therefore attempted to elucidate as to why nations soak up in international trade, what combination of goods and services they trade, and how firms and consumers gain or ruination asleep from trade. It was observed that numerous international trade models rely primarily on the theory of Comparative Advantage (Appendix 1. 1), which describes trade patterns under assumptions of static conditions that hold the factors of production in fixed supply (Perkins). possibility of relative emolument principally asserts that e very country irrespective of its size can benefit from trade. Trade driven through exports of goods in which the country has aIS vs. EP 5 comparative prefer, benefits the country the most. Therefore an export promotion trade strategy involving goods that require raw material, that are abundant in supply, will allow a country to grow to a greater extent promptly as stated by the Hecksher-Ohlin model. Proponents of EP mainly argue that free trade utilizes previously unused resources such as land and prod, creates a vent for surplus of unused resources and allows a country to operate on its Production Possibility Frontier (PPF). In contrast, before the opening up of the economy, the market is constrained to the domestic consumers only.Once a country engages in free trade it acquires the opportunity to earn a global market share, thus earning higher revenues. As the market of local industries expands, demand for labor increases which raises the employment level in the country. This i ncrease in exports stimulates domestic investment (an injection in the circular flow of the income of the country) which gives a multiplied effect on the Gross Domestic Product (GDP) of the economy. Furtherto a greater extent, the raise exports will lead to a greater demand of domestic bullion in the exchange market leading to golds sagaciousness (given the floating exchange rate mechanism).According to the Marshall Lerner condition, which states that the sum of price IS vs. EP 6 elasticity of demand of exports and imports is lesser than 1 in short run, a currency appreciation will lead to an increase in the Balance Of Trade (BOT). 3 This relationship of BOT and time is shown through J-curve. An improveral argument presented by the trade optimists states that the foreign exchange earned by merchandising different goods and services will relax the constraints of availability of financial capital or in other words, will fill the foreign exchange gap.This also helps in relieving t he pressure on foreign exchange reserves built by the import of heavy machinery and capital goods. A go on extension of export promotion policy is the process of export development. It involves foot (of new export products) and penetration into new markets. Learning process is instituted and hence increased productivity is observed. This initiates a process of transfer of technology and foreign investment from developed countries, helping the industry to become efficient and gain the economies of scale through mass production lowering costs and change magnitude profits.The increased profits of the industry promote higher savings and as the Harrod-Domar Model suggests, an increase in savings will lead to an increase in the growth rate of the economy. The Export promotion strategy is not free of criticisms as one might expect. The leading criticism of opponents of export promotion strategy is the sluggish growth in the demand of the simple goods. As developing country relies main ly on the export of primary goods, the sluggish growth enhances the volatility in the earnings of the economy. The Prebisch Singer guessing explains this phenomenon in harm of income elasticity and price elasticity of demand.The thesis postulates that the price elasticity and income elasticity of primary goods are both inelastic i. e. less than 1. As the national income of the developed countries increases, the demand for the primary goods does not increase proportionately. This is also stated by Engels Law. A decrease in the prices of the exports will not lead the quantity traded to increase by the same pctage, thus resulting in fall of the exports revenue. This fall in exports revenue leads to a deterioration of Terms of Trade (TOT) of the country.Other factors that explain the slow growth in primary goods exports include the development of synthetic substitutes and protectionist measures taken 3 See Appendix 1. 3 IS vs. EP 7 by the developed countries. The population growth of developed countries being at replacement level translates into a standing(prenominal) demand for primary exports. Empirical evidence shows that heavy reliance on the export of the primary product may actually result in a phenomenon known as the Dutch disease a country rich in natural resources actually suffers from slower growth as a result of that rich endowment.This is one of the often repeated facts of record when criticizing the strategy of export promotion. It was mentioned earlier that an appreciation in a countrys currency will lead to an increase in BOT, but this will only keep true for the short run. In long run the sum of elasticity of demands of exports and imports becomes greater than 1 which consequently causes a fall in the net exports. Therefore the aforementioned argument is valid in the short-run only as in long-run it balances out its own effect on BOT 4 as shown below with the aid of diagram.In addition to the criticism mentioned earlier, Export Promotion str ategy may lead to higher budget deficit. It is a usual practice of the governments to subsidize the exporting industries. These subsidies will be financed each by an increase in taxes or by reducing the expenditure on public and merit goods such as health, education, infra grammatical construction, national defense and other social services. Due to this practice, the development side of the country is often sidelined or overlooked.Example of China can be the outstrip evidence for our claims about Export Promotion here. China was a close economy until the 1970s. Nicholas R. Lardy in his article, Trade liberalization and 4 See Appendix 1. 3 IS vs. EP 8 its role in Chinese economic growth, states that close to 1970s, Chinas export goods had no comparative advantage and at the same time, high level of control on imports was also imposed. and then quoting from the article, Chinas share of world trade dropped markedly, from 1. 5 percent in 1953 to only 0. 6 percent in 1977.However, d uring the 1980s the process of trade liberalization began and by the time china entered WTO in 2001, her structure of trade policy was completely changed. China fully realized the import of the comparative advantage principle and concentrated on export of goods that were labor intensive in production, as the article states that Chinas express growing exports have been labor-intensive manufacturers textiles, apparel, footwear, and toys. Between 1980 and 1998, export of these items rose more than ten-folds, from $4. 3 billion to $53. 5 billion.Due to the trade liberalization, China experienced high rates of economic growth. Empirical evidence strongly suggests that realness and eclecticism rules over any other whizz purpose approaches to trade. thinking just in terms of an all out import substitution or an export promotion strategy can pose as an impediment to ones clear understanding of the relationship between these strategies and growth. In future it would be better to avoid l abels and to construct strategies from the components of either of these trade policies that seemed to have worked.Import substitution with its divorce of production decisions from market conditions seems to have lost its modern day relevancy. In contrast, export promotion with its orientation towards world markets appears to be in line with the new phenomenon that is globalization. No single optimal prescription in terms of trade policy can be devised for the countries at large due to the dynamism of international trade. No strategy can be concluded as the best strategy for a country but what can be said is its relevance to a country at a point in time.Although empirical evidence shows that export promotion has helped countries like China to grow rapidly and improve its trade positions but we can also find other countries which developed after adopting import substitution policies like Latin American countries. This suggests that country have to adopt a trade strategy which is mos t compatible for their country at that time so that they can achieve maximum gains from trade. IS vs. EP 9 Appendix 1. 1 Comparative Advantage Theory The concept of comparative advantage, attributed to David Ricardo, refers to the ability of a country to produce at a lower opportunity cost.It is the ability to produce the most efficient product as compared to other countries. It is best explained by a two-good, two country framework where countries differ in particular factor productivity or factor endowments. This theory explains that it is eudaemonia enhancing for both countries to specialize in one good and import the other. The conclusion drawn from this theory is that each country gain by specializing in the good where it has comparative advantage and trading that good for other. 1. 2 Trade protectionism and TariffsGovernment impose trade restrictions in form of tariff in which it collects tax on goods imported by the people, thus discouraging the people to import goods and enc ouraging the local industries to produce good quality substitute goods. Introduction of tariff increases the world price, which reduces the amount of imports and increases the amount of locally consumed products. IS vs. EP 10 1. 3 Inverted J-curve for critical review of currency The inverted J-curve refers to the trend of a countrys trade balance following a revaluation or appreciation of the currency.A revalued currency means that exports are more expensive for the foreign countries, but as in the short run demand for the more expensive exports remain price inelastic so the quantity demanded for exports remains same although foreigners are paying higher prices. This leads to the improvement of balance of trade. Over the long term, as the foreign consumers are able to switch to the other goods, the quantity demanded for exports becomes price elastic so reduction in the export volume and hence export revenues.This leads to the deterioration of balance of trade and the gains in the s hort run are off-set by the losses in the long run. In baptistery of devaluation of currency, there are opposite carry ons. IS vs. EP 11 1. 4 Infant perseverance Argument(ISI in general equilibrium) IS vs. EP 12 From diagram 1. 4. 1 it can be seen that before the imposition of tariff the country was producing at point A while consuming C amount of goods under world terms of trade (favorable to its export).But after the imposition of tariff, production moves towards point B where more of the importable and less of exportable goods are being produced. Assuming that this does not affect the world prices, trade will take place at same TOT. So the new consumption is indicated by point E along the line BD (parallel to line representing world TOT). Initially, by practicing ISI polices, both consumers and trade welfare has fallen due to lower consumption and fewer imports and exports (BE