The paper "How Personal Code of Ethics Might Clash with a Company’ s Operations" is a perfect example of a business assignment. In recent years, many countries have moved from planned economies to market economies. I think this has been necessitated by the need to increase efficiency. Planned economies may work in the short run such as was the case with the Soviet Union. However, such an economy is unlikely to reach the level of efficiency that characterizes market economies. By moving towards a market economy and hence improving their efficiency, economies are able to achieve increased economic growth as well as economic development in the long run.
Countries also move from planned economies to market economies so as to provide consumers with a choice of goods and services that they can afford. Countries also desire to be more innovative and hence offer better quality goods and services to the consumer. As such, by moving to a market economy, countries will assure themselves of higher economic growth rates and more jobs can hence be created for the citizens. How current economic indicators such as inflation and unemployment affect a country like UAE. Both inflation and unemployment reduce a household’ s ability to spend and hence affect the demand for goods and services being produced in the economy.
This implies reduced economic growth and hence more and more unemployment and inflation. It should also be noted that uncertainty on future inflation discourages investment as well as savings as well as a shortage of goods as consumers hoard goods for fear of future increases in prices. Unemployment on the other hand leads to high crime rates as well as higher welfare payments to the unemployed by the government.
At the same time, unemployment implies less income tax implying more borrowing by the government or cutting of spending by the government. Unemployment also affects consumption by the households implying a reduced GDP. The rate of taxation may also increase as the government seeks more funds to provide services for the unemployed. In essence, the above economic indicators affect the country negatively if they increase leading to slowed economic growth since the demand for goods and services in the economy is constrained as indicated above.
Watson, F2013, Introduction to business studies, London, Rutledge.