Expansion and Mergers Essay Example | Topics and Well Written Essays - 1000 words

Expansion and Mergers - Essay Example 356). In this regard, a natural monopoly may have adverse effects on the market economy once organizations engage in anticompetitive practices aimed at locking out their competitors out of business. In addition, the monopoly may engage in other practices like fixing prices of goods, which is not the ideal situation in a free market. On the contrary, government regulation is crucial in dealing with excessive competition practices in the market economy (Carroll & Buccholt, 2011, p. 358). In this case, firms will engage in setting prices below unprofitable levels forcing some firms out of business while the remaining firms will raise their prices resulting to products that are too expensive for the consumers. Government regulation is important in controlling negative externalities in a market economy (Carroll & Buchholtz, 2011, p. 357). By definition, Hackette and Moore (2011) defined â€Å"a negative externality as an uncompensated harm to others in a society that is generated as a by -product of production and exchange† (p. 61). It is evident that production of good has many by-products with some being harmful while the manufacturer does not pay for the harm caused. In effect, the manufacturer produces more products and earns more profits without catering for the harmful effects of the by-products. In this case, governments will always regulate such industries in order to ensure businesses do not risk the lives of others while making more profits. Rationale for the Government Intervention in the US Market Process As earlier indicated, governments regulate businesses to ensure that there was no market dominance by a monopoly. According to Geroski and Jacquemin (1985), dominance of a business firm goes hand-in-hand with the ability of the firm to exploit a strategic advantage to gain a large share of the market at the expense of its business rivals (as cited in George & Jacquemin, 1992, p. 150). In this regard, it is possible for business firms to use antico mpetitive strategies and try to edge out their competitors. Although the US is a free market, it is important for the government to intervene and ensure that all businesses engaged in ethical business practices. Since the US is a free market, it is important for the forces of demand and supply to determine the market price of goods and services. In this case, it is important for the government to regulate businesses in industries that fixed prices below the profit making levels in order to get rid of their competitors, in the US. In this regard, the government's failure to regulate makes the businesses eliminate their competitors and only raise the price of goods once their competitors are not in the market. In effect, these unethical practices do not provide for a competitive market environment. Therefore, this emphasizes the importance of government intervention in the form of regulation to ensure the forces of demand and supply remained as the important factors in determining the prices of goods and services. Self-Expansion Complexities on Capital Projects The underlying complexity currently facing any capital project in the US is obtaining capital required for expansion after the recent recession. According to LaBonte (2009), the weak economy and competition from other manufacturers led to decreased market share of the US automobile industry. In addition, the recession had an effect on credit facilities in the country. In this regard, LaBonte (2009) noted, â€Å"The recession had made credit facilities less available, which may have limited the ability of auto manufacturers and suppliers to finance their

David Suzuki Foundation Assignment Example | Topics and Well Written Essays - 1000 words

David Suzuki Foundation - Assignment Example y, protection of the climate, habitat and endangered species protection, future projects on energy and sustainability of healthy oceans and seafood among others. The David Suzuki Foundation is very strict when it comes to uploading ethics. Some of the ways it does this is by not accepting funding or donations from individuals or organizations that have a hidden agenda in mind. They care about their integrity and reputation so much so that it declines such gifts or funding despite their value. This is the reason it does not accept direct funding from the government as this will mean they are indebted or at the mercy of the government and hence will lose its ethical conduct. The only funding from the government it takes is that provided through the National Sciences and Engineering Research Council of Canada. On environmental values, the foundation strives to uphold the human rights of people when still safeguarding the environment. They are guided by the United Nations Declarations on Rights of Indigenous People formulated in 2010 and which protects the indigenous people who rely on the environment for their survival. In their aim to protect the environment therefore, they avoid clashing with the Aboriginals and they always respect them. They even at times use them to safeguard their other environmental policies as these people have indigenous knowledge of the environment and have vested interests in the environment being safeguarded. Its environmental values are also upheld through having their offices heated and cooled by geothermal system, recycling of its products, planting native species in the roof, having automatic timers to shut off their electrical appliances to save energy, employees commuting to work through biking or walking and using teleconferencing to reduce air travel. Their suppliers are also green suppliers using organic and non-toxic biodegradable among others all aimed at protecting the environment. Its code of conduct demands that its