Writing Question

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User Generated

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qbqhbat7562

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Writing

Course

Econ 2302

School

Richland College

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Select one of the four options and write a thorough, economically-based answer to each question. While there is no prescribed minimum length or formatting requirements, the more complete and carefully you answer each of the questions the better your grade.

I need to write two over four option. And each option should be at least 2 pages in separate word file.

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Writing Assignments Please select only 1 of the following options and answer each of the questions related to that option. Your responses should be thorough and well supported. You are encouraged to use our textbook and the online book for this class, which is called Popular Economyths. A good, well-reasoned, detailed answer should be at least 1.5 to 2 pages (total) in length (and please do NOT rewrite the questions). You need to answer each of the questions for the option you select. OPTION 1 – The Minimum Wage Since 2009, the national minimum wage has been $7.25 per hour for most occupations in the private sector. Many of those who support an increase in the minimum wage believe this is one way the government could possibly reduce poverty, while its opponents believe that it creates unemployment and hurts low-skilled workers. The following items address the idea of raising the minimum wage from the current federal minimum of $7.25 per hour. 1) Describe who the suppliers and demanders are in the labor market. Is a government-mandated minimum wage a price floor or ceiling? Discuss the effect of a minimum wage law from a supply and demand standpoint, making sure to address the concept of surplus or shortage, and specify what that shortage or surplus is most commonly called in economic terms. 2) Raising the minimum wage will also affect the labor costs of businesses. What is going to happen to the prices these businesses charge for their products? And who is going to be most affected by these price changes, those with low incomes or those with high incomes? 3) Discuss any potential changes in the incentives for low-skilled workers those who keep their jobs and their hours - to increase their human capital when the minimum wage increases. What about those who lose their jobs or never get hired? Discuss the incentives for employers to substitute capital inputs (technology and automation) for labor. 4) What might be an unintended impact on government spending on entitlements such as welfare, food stamps, and unemployment compensation because of the changes in the minimum wage and its impact on unemployment and underemployment? 5) Do advocates of a minimum wage law believe that workers should be paid based on their output (i.e., performance) or on their level of need? What do opponents of the minimum wage law believe workers’ wages should be based on? Which one is sustainable and why? For the sake of comparison, how should students be graded in class, based on their performance or level of need? 6) Advocates of a minimum wage often believe that employers would “exploit” or “take advantage” of their workers if there were no minimum wage. How would you know if employers are “taking advantage” of their workers if there were no minimum wage? What simple thing could the employee do if they believed they were being exploited? 7) What percentage of American workers get paid above minimum wage? In general, why do such workers get paid more than the governmentmandated minimum wage if employers are supposedly so greedy? 8) Compare and contrast some of the information contained in the three videos: Obama: "Raise Minimum Wage to $9 an Hour" - SOTU 2013 How the Minimum Wage Creates Unemployment – Note: this video uses an example of a $5 minimum wage as an illustration only. The same exact point could be made with a minimum wage of $7.25, $9, $12.37, or any other amount, so please do not get hung up on the $5 amount. The point is whether or not the government ought to dictate the wages of a private transaction between a willing employee and employer. We the Internet TV: Pledge for $15 Describe the main points of each video. Which one or two videos do you agree with more from an economic perspective and why? Be specific! 9) Based on your previous responses, do you believe that the minimum wage should be raised, lowered, remain as it currently is, or be altogether eliminated? If you think there should be a minimum wage, how would you arrive at the specific wage? You need to give a thorough reason for your answer. Who should get to decide how much a worker gets paid, the worker and their employer or a politician? WHY? OPTION 2 - Outsourcing There has been much talk in recent time about outsourcing and “sweatshops.” Outsourcing is usually defined as occurring when a company chooses to export some of its production to foreign countries. Jobs in which foreign workers work in “sub-standard” conditions and are paid lower wages (than their American counterparts) are typically referred to as “sweatshops.” 1) What are some of the economic reasons why some firms choose to relocate some of their productive facilities to foreign countries? 2) With regards to low- and high-skill laborers, which domestic (American) workers may gain from outsourcing, and which domestic workers might lose? Why is this the case? 3) With respect to the types of products produced by companies that outsource, what effect may outsourcing have on domestic prices of these products? 4) If the US government wanted to reduce outsourcing, what changes in policy could it make to do so? 5) Please watch the following 2 videos regarding “sweatshops.” Inside Look at Apple’s Chinese Sweatshops! John Stossel - Sweatshops Describe the main points of EACH video. What evidence do they present to reach their overall conclusions? 6) After watching the videos, please tell me if “sweatshops” are a good or bad thing for foreign workers? WHY? You need to thoroughly explain your answer. OPTION 3 – “Buy American” Provisions The American Recovery and Reinvestment Act of 2009 (ARRA) was passed by President Obama and Congress in response to the recession of 20072009. The primary components of this bill included tax cuts and increased government spending, with an emphasis on infrastructure spending such as roads and bridges. Included in the bill was a “Buy American” provision which required all manufactured goods (a few exceptions did apply) purchased with ARRA funds to be made in the United States. The intention of this provision was to increase jobs in the United States by preventing foreign companies from reaping the rewards of the new spending projects. 1) Are attempts to protect U.S. firms from foreign competition, such as the Buy American provision, good ideas? Explain. 2) Explain why some American companies might be opposed to this provision. 3) Explain whether or not you believe the Buy American provision would create jobs in the United States. 4) What do you think will be the economic consequences of a Buy American provision? 5) Do you believe the government should get involved in this aspect of private business, even when the available funds are coming from the government? If so, why? If not, why not? 6) Watch the following 2 videos: Why Buying American Made Matters John Stossel – Buy American Describe the main points of EACH video. What evidence do they present to reach their overall conclusions? Which of these videos make more economic sense than the other? BE SPECIFIC! What points does the better video make that the other fails to adequately address? OPTION 4 – “Worker-owned” Businesses Some politicians have recently proposed ideas that would encourage or require more businesses to operate as “co-ops” or “worker-owned” businesses. In such businesses, the workers and the bosses get paid the same amount of money and have an equal say in the management of the business. 1) Do you believe that more businesses should be run in such a manner, as cooperatives in which the owner and employees make roughly the same amount of money? 2) What are the potential drawbacks to the owners of such an idea? What about drawbacks to the workers? 3) If you like the idea of “worker-owned” businesses, should the government require businesses to operate in such a manner? Why or why not? 4) Why do you think some politicians may want to pass laws that would require more businesses to become cooperatives? 5) Please watch the following two videos and answer the following questions. Capitalism: A Love Story – Workplace Democracy and Cooperatives Why Capitalism Works Describe the main points of EACH video. What evidence do they present to reach their overall conclusions? Which of these two videos makes the most sensible economic conclusions? WHY? Be specific.
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Running head: OUTSOURCING

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OUTSOURCING
Student's Name
Institutional Affiliation
Course Name
Instructor's Name
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OUTSOURCING

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Outsourcing

Every entity aims to have the edge over other firms it's like in their field of operation.
Every firm will always partake in any measures to become or remain the most relevant.
Economic reasons have been observed to be among the main factors that lead several entities to
outsource operations to foreign lands.
Lowering operational costs stands at the helm of economic reasons. By moving basic operations
overseas, companies can save a significant amount of money. Labor costs in most of these
countries are reasonably low due to high unemployment rates or high interest from the locals to
work for foreign firms. The Chevrolet Cruz stands as an example of such firms as it has moved
its operations to Mexico, where it operates at reduced labor expenses (Sandhu et al 2018).
Government incentives coupled with tax relief are another economic factor attracting firms to
move their operations overseas. Some countries have been observed to provide some businessfriendly incentives not found in the country of the original operation. Malaysia is known for
attracting giant firms as its government sponsors a portal that helps investors make business
savings. Lowering taxes such as having a corporate tax at 20% in the U.K lures investors, unlike
that of 35% in the U.S.
Market saturation is a force pushing firms to move overseas. Firms operating in developed
countries are highly affected and thus have to move to countries with less competition and
embark on production just within the potential new market. Some motor manufacturers have
shifted their production lines to countries in Africa where their demand is high.

OUTSOURCING

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Outsourcing will have an impact on American laborers. The low-skilled ones are likely to
be pushed into unemployment while the highly skilled ones will have to be retained. Shifting
operations overseas is coupled with policies such as prioritizing the locals in the low-skilled
operations. Due to the low living standards in these countries, the laborers are cheaper compared
with those in the U.S and thus making the Americans unemployed. For the highly skilled experts,
it is hard to get rid of them. Their expertise is the primary force that gives the company an edge
over the others.
Whether operating locally or overseas, high-skill laborers are expected to offer guidance and
leadership both in designing and production lines. In case the high skilled laborers are sent
overseas, they may be offered better contracts due to hardships they may encounter in their duty.
Hence they are the primary beneficiaries of the companies relocating overseas.
Whenever the cost of production is lowered, the produced component is sold at a reduced
price, maintaining the profit margin (Kotabe & Murray, 2004). High labor costs have always
pushed the costs of production upwards. However, with production being moved overseas where
there is cheap labor for the same quality, the overall production cost is low, thus lowering the
commodity's eventual price. The domestic prices of the commodity may remain reasonably low
due to importation at low prices. There is a likelihood that the shipment fee added to the
production cost is lower than producing the same product at home.
On the contrary, there might be a scarcity of the product at home, thus pushing the prices
upward. The shipment plus another clearance fee of the product added to the production cost
may rise beyond the commodity's regular price. The situation may lead it to be unafforda...