The Keynesian theorists believe that the changes in the aggregate demand whether it is unanticipated or anticipated, have their impact on the real employment and output, not on the prices. This concept has been portrayed in the Philippines curves that indicate the inflation changing very slowly whenever the unemployment changes. They believe that the long run will eventually last long enough to matter in the end (King, 1993). The Keynesian theory of economics was named after the famous British economist John Maynard Keynes. John Maynard Keynes lived between the years 1883 to 1946. His ideas were reported to have been based on the circular flow of money. This subsequently gave rise to several interventionist economic policies during the period of the Great Depression. According to the school of thought, the spending of the person A contributes to the earning of the person B. In this case, when person A purchases services or goods from person B, and consequently, person B goes ahead to spend his money and thus contributing to the earnings of person C. Thus; Keynes believed that this circular system of the exchange of money will enable the economy function normally (King, 1993).
This firm has not employed the method of outsourcing but rather has extensively incorporated mergers to increase its competitiveness. In its quest to expand Conoco merged with the Philips Company in the year 2001 with the deal being completed in 2002. The merger of Conoco and Phillips to form ConocoPhillips came at a time when intense rivalry in the industry was high. In this case, rival companies merged to consolidate their positions within the market. ConocoPhillips merger was ranked as the sixth largest in Energy Company in the world by then. Three years ...
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...nvestment requirements of business entities. This enables the company and its shareholder to determine the amount of exposure that is required against exploration and production. Even though under the current volatility of commodity prices, mergers and acquisition can enhance the future growth of the company through allowing it to access the bundle of resources.
Works Cited
Abubakar, IA n.d. ConocoPhillips and its acquisition of Burlington Resources: the strategic fit? Viewed on 07 March 2014 from http://www.dundee.ac.uk/cepmlp/gateway/files.php?file=cepmlp_car14_67_419431265.pdf
ConocoPhillips (2002), Conoco Inc. History. Viewed 07 March 2014 from http://www.conocophillips.com/EN/about/who_we_are/history/conoco/Pages/index.aspx
King, R G. (1993), “Will the New Keynesian Macroeconomics Resurrect the IS-LM Model?" Journal of Economic Perspectives 7, no. 1 67-82.
Franklin D. Roosevelt, president of the united states from 1933 to 1945 (and the distant cousin of Theodore Roosevelt), was the first to convert to Keynes’s theories. He implemented massive public works programs to put people to work. Called the “New Deal”, an echo of Theodore Roosevelt’s square deal, it consisted of a series of programs from 1933 to 1938. As well as providing employment through massive works projects such as the Tennessee valley authority, which built dams to generate electricity. New deal programs provided emergency relief, reformed the banking system, and tried to invigorate agriculture and the economy. Many other programs were also put into place with were used to attemp...
Gaughan, P. A., 2002. Mergers, Acquisitions, and Corporate restructuring. 3rd ed.New York: John Wiley & Sons, Inc.
I find that there acquisitions were in all respects good buys, broadening the company's overall service reach, into new technologies and what not. But their lack of integration and push to get them to buy into the EnClean ideal wasn't very good; they simply focused too much on short term gains of the current people who were running the acquired companies instead of putting in management that would do the job right. What they ended up with was lost time, and money, which would have been better spent better getting the acquired company to better fit into the service aspect that EnClean had setup. I also think they started jumping the gun on certain buys, such as the AlphaChem acquisition. Why they did not realize or at least consider that they were not a distribution company, and that AlphaChem had no clear strategy is beyond me.
Soon after, ConocoPhillips recreated its portfolio by creating two public trades firms with different business strategies. In 2012, ConocoPhillips announced focuses on upstream activities while Phillips 66 heads its direction to midstream and downstream activities. The Phillips 66 firm engages in production side of the house such as the refining and marketing and chemicals productions leaving ConocoPhillips to fully focus on research and development and inventions. (Schaefer)
During John D. Rockefeller’s financial career in The Gilded Age, he used many cutthroat practices to ensure that local competitors would not challenge and he would have control over the market of oil with his Standard Oil Company. In order to make sure he controlled the oil market, he used what was known as horizontal integration. This name became the label for the process of eliminating any potential competition from the market that one wishes to succeed in. In order to establish a virtual monopoly over the oil market, Rockefeller used clever strategies to do so. John Rockefeller used “his firm's superi...
John Maynard Keynes, British economist, journalist, was born on June 5th 1883, in Cambridge, England. His father, Dr. John Neville Keynes, was an economist and a philosopher. Keynes attended Eton and then Cambridge University. At first he studied Mathematics but then turned his attention to Economics when he was offered the job at the British treasurer after the First World War when the British economy was at pressure. A man who gained a modicum amount of wealth during 1919 to 1938, married to Lydia Lopokova in 1926 and passed away in April 21st, 1946. Keynes believed that price level has to be stabled in order to have a stabled economy, and that is only possible if interest rates go down when prices rise. He also believed that the market forces alone will not deliver full employment but boosting government spending (main force of the economy in Keynes theory) will aim in his theory full employment or close to that. He believes by Governments intervening and spending will finally stop recession, unemployment and most importantly depression. For spending will increase the aggregate demand of the economy.
I believe that it's’ important to use our constitution as a guiding tool to help appoint the correct people for the job.John Maynard Keynes was a British economist where he fundamentally changed the theory and practices of macroeconomics and economic policies of government. Although he was revolutionary most of his policies were controversial and used Keynesianism economic to get people to stay away from them . His approach to macroeconomic management was different since the previous traditional laissez-faire economists believed that an economy would automatically correct its imbalances and move toward a state of equilibrium, They expected the dynamics of supply and demand to help the economy adjust to recession and inflation without government action. Laissez-faire economics thus regarded layoffs, bankruptcies and downturns in the economy not as something to be avoided but as elements of a natural process that would eventually improve. However that was not the case for the great depression. Keynes also believed that a given level of demand in an economy would produce employment however he insisted that low employment during the depression resulted from inadequate
Regardless, in regards to applying Keynesian economic policies toward the Great Depression, Former Federal Reserve Governor Ben S. Bernanke said “You 're right, we did it. We 're very sorry. … we won 't do it again” (Federal Reserve Board, 2002). Other economic theory must be developed to address some of the shortcomings of the Keynesian economic
Economists of each era responded to the requirements of their era and there is no true and false in their cases. Circumstances render one model better or worse than the other models. Both of the classical and Keynesian schools agreed that the economy is always at full employment but differed at the point where such a level of full employment takes place. Other schools differed on the basis of determinants of employment, focus on inflation, focus on growth, and etc. All the development in macroeconomics was guided and is still being guided by the circumstances prevailing in each period of
My research of Classical Economics and Keynesian Economics has given me the opportunity to form an opinion on this greatly debated topic in economics. After researching this topic in great lengths, I have determined the Keynesian Economics far exceeds greatness for America compared to that of Classical Economics. I will begin my paper by first addressing my understanding of both economic theories, I will then compare and contrast both theories, and end my paper with my opinions on why I believe Keynesian Economics is what is best for America.
A single firm or company is a producer, all the producers in the market form and industry, and the people places and consumers that an Industry plans to sell their goods is the market. So supply is simply the amount of goods producers, or an industry is willing to sell at a specific prices in a specific time. Subsequently there is a law of supply that reflects a direct relationship between price and quantity supplied. All else being equal the quantity supplied of an item increases as the price of that item increases. Supply curve represents the relationship between the price of the item and the quantity supplied. The Quantity supplied in a market is just the amount that firms are willing to produce and sell now.
Keynesian method and world-systems theory deserve special attention. It is Keynesianism that makes possible for the radical political economists to apply the bipolar model, centered on
At a macro level as a result of the acquisition the combined size of Turner & Townsend Thinc was considered to be of strategic benefit to both firms. While there have been no official mass redundancies, role duplication has resulted in early retirement and resignations. However, the common problem faced after the acquisition is power struggles, excessive overhead, bureaucracy, uncontrolled layering, and decision strangulation.
The market price of a good is determined by both the supply and demand for it. In the world today supply and demand is perhaps one of the most fundamental principles that exists for economics and the backbone of a market economy. Supply is represented by how much the market can offer. The quantity supplied refers to the amount of a certain good that producers are willing to supply for a certain demand price. What determines this interconnection is how much of a good or service is supplied to the market or otherwise known as the supply relationship or supply schedule which is graphically represented by the supply curve. In demand the schedule is depicted graphically as the demand curve which represents the amount of goods that buyers are willing and able to purchase at various prices, assuming all other non-price factors remain the same. The demand curve is almost always represented as downwards-sloping, meaning that as price decreases, consumers will buy more of the good. Just as the supply curves reflect marginal cost curves, demand curves can be described as marginal utility curves. The main determinants of individual demand are the price of the good, level of income, personal tastes, the population, government policies, the price of substitute goods, and the price of complementary goods.
Weekly Corporate Growth Report, “Price Waterhouse and Coopers & Lybrand to Merge.” http://findarticles.com/p/articles/mi_qa3755/_is199709/ai=n8768518 (5 Apr. 2008).