UK Free Market Trading: Advantages and Disadvantages

UK Free Market Trading: Advantages and Disadvantages The UK economic system is based on the free market system and is one of the most globalised economies in the world. It is a successful country which accepts this system. Although many countries have success in this system, sometimes it is not suitable for developing countries such as China or Thailand. Most countries try to practice the free market trading in order to enhance their economic system and undeniably, this system is an ideology which each country may have to adapt appropriately. Even though capitalism and free trade are currently allowed to operate in UK, the role of government also plays a crucial role in many economic activities to ensure fairness of exchange transactions. Free market can be defined as an economic system which buyers and sellers are responsible for making their choices without regulation by the government. The price mechanism plays an important role in a free market to determine allocation and distribution goods and services. This system has several benefits which both of the producers and consumers satisfy with the price. It seems to be that free market system has many great advantages but there are a number of arguments which indicate the possible disadvantages. The fundamental characteristic of a free market is that people who can control resources and wealth have privilege to purchase goods and services at high price so the poor people are thrown out of the market implicitly. Because of this situation, several ethical problems such as unemployment, crime, and environmental problems increase. This essay will focus on an analysis of ethics and benefit of the UK free market since 1990. The first section examines the benefits and drawbacks of free market trading. The feature of free market is based on individualism and utilitarianism which form two sides of the argument. Next, the ethical problems caused from free market system will be highlighted. Due to the aspect of freedom, people may do what they want to regardless of reconsideration of society. The last point will analyze the possibility of the UK free market trading in the future and evaluate advantages and disadvantages for developing countries. 1. An analysis of benefits and drawbacks of the free market trading 1.1 Background the UK free market The free market system was accepted since the eighteenth century in the UK. This system was continuously developed until now so as to obtain maximum benefit. Even though the freedom, which is the basic concept, plays a key role in the UK economic system, practically the government may enter to the market in some sections especially public goods and services. In other words, most decisions in UK are made by the price mechanism in the market and some decisions need to manage by the state such as education, hospital, and public utility. For example, road users have to pay for the road network through the petrol tax system controlled by the UK government (Bearshaw et al., 2001). They also confirmed that the state is responsible for almost 40% of all expenditure in the UK. 1.2 The concept of free market Individualism is the basic feature of the free market system. It can be defined as the nature, evolution, and function of such institutions in terms of the unplanned and unintended action of free individual agents (Schotter, 1990, p. 6). Buyers can easily purchase any commodities and sellers also produce and distribute whichever products they want to. There are no obstacles put in place by the state to limit the flow of goods and services between trading nations (ibid., p.7). 1.3 The benefits of free market Based on the concept of individualism, there are three benefits of the free market system. First of all, Schotter (1990) stated that the entrepreneurs can make their own decisions about quantities and what goods should be produced. He also explained that if they produce a product which nobody want to or they produce too much, their profit will be decreased, reducing their income and forcing the production of new different products which the market demands. Secondly, the consumers may have various choices and can choose to buy quality goods. Every entrepreneur wants to produce the products which are sold to many people so there are also many competitors that can produce the same goods or better through the market. Therefore the producer should create distinctive products or produce high quality goods and services in order to increase sales. Lastly, there has been an increase in higher levels of education for graduate employment. Philo and Miller (2001, p.3) stated that The essential i ndividual freedoms were for employers to employ, for workers to be able to sell labor without the restrictions of the trade union and for consumers to be able to buy. The demand for the right to work is therefore converted to workers who have the individuals right to go to work. It is suggested that the workers attempt to enhance their skills so as to satisfy the wage rate because everyone can sell their abilities into the market and the employers are free to hire employees at the lowest possible price. If people have different skills which are required in the market, they will have several opportunities to choose their jobs and request higher salaries. 1.4 The drawbacks of free market On the other hand, Schotter (1990, p.47) insisted that the very individual rationality that makes the market work so sell often destroys the optimality of its results. The disadvantages can be divided into two parts. Firstly, he argued that people, who have good performance under the existing set of institutions, may have encouragement to work hard in contrast with people who do badly may not be supported. This is due to the fact that unequal distribution of income is in the society. Even though in the free market system workers free to supply their abilities, sometimes many skills which each one can do well might not be demanded in the market or many people have the same capability. Secondly, the public goods such as street lighting and public transportation, lack the encouragement from people to pay for them since there is no profit to provide these goods despite the fact that they are important for everybody. Schotter (1990) illustrated that the problem might happen if people thin k of public goods based on the free trade concept (ibid., p. 58). For example, the street lights should be installed to protect people but there is no one who wants to contribute to them because all people believe that everybody may use them which cannot be specified each person. 2. Identifying the ethical problem caused from the free market system 2.1 The ethical problems It seems that the free market has several advantages. However, the benefits of this system also lead to ethical problems such as unemployment and environmental problems. Obviously, competition is a characteristic of the free market hence people who cannot compete with others will be easily ignored by the market system. Eventually they may lead to one part of the ethical problems. Two areas of moral problems can be identified. Firstly, there was an increase in unemployment and poverty rate in the society. Most entrepreneurs try to reduce costs of their product in order to gain the high profit in the market. Consequently, they attempt to create new innovations such as machine and robot which can help them to manufacture many products in a short time and replace many workers. For example, the self checkout machines, which can be found at many ratailers such as Sainsburys in UK, can replace a lot of staffs. The buyers can make a payment by scanning the barcodes on their own goods to machines. Furthermore, an increase in jobless may be one effect of crime in the society. Secondly, the environmental problems such as greenhouse effect, air pollution, etc may result from the free market system. Due to the concept of trade without any tariffs or subsidies imposed by the state, every firm produces their products in a way that they expect to obtain the highest profit. Therefore, they do not consider the full costs of pollution (Mankiw, 2001) . Exhaust from automobile creates smog that is breathed by the public, and hence the pollution created by drivers should be included the costs attributed to a company. Bearshaw et al., (2001) also stated that the main industries responsible for a release of carbon dioxide to the air are electricity, gas and transportation. These industries are important for production and distribution in a developed country, and yet have a significant effect on global warming. It is suggested that while the company receives full benefit from the free market trading, the problem of environment will continue to be a problem. 2.2 A case study of carbon footprint emissions of two retailers in UK The Sainsburys and Tesco are currently the leading supermarkets in the UK and they create a vast amount of pollutions that lead to several environmental problems. They produce carbon footprint in many ways such as transportation, their buildings. For instance, refrigeration, which accounts for direct carbon emissions, is necessary for this business because they sell a lot of fresh food. However, they attempt to reduce their carbon footprint by several ways. Sainsburys convinces customers to bring their own bags so as to reduce the numbers of bags which bring about an increase in carbon emissions. This company also use 50% recycled material for producing their bags given to customers (J-Sainsburys, 2010). In addition, Tesco promoted the campaign Greener living Brand since September 2009 which encouraged the customers to buy products such as energy-saving light bulb which can reduce the global warming. It also launched the website which contains methods of carbon footprint reduction. F or example, this website shows ten ways to decrease carbon emissions such as washing clothes at 30 Celsius or lower. It will save around 45 kilograms of carbon dioxide per year. (Tesco, 2010) 3. Way forward for the free market in UK 3.1 An analysis of current UK economic trends It is difficult to decide whether the UK free market will be maintained over the next hundred years or will be immediately accepted by a new system. However, the UK is a country which successfully practices the free market system, as can be evaluated by the gross domestic product (GDP) . The figure 1 shows that the annual changes in GDP index from 1979 to the first quarter of 2010. Overall, the GDP growth trend remained positive and increased gradually from 2005 to the second quarter of 2008. This implies that after the free market had accepted, the UK economic system developed in the right way. However, the UK GDP growth fell and became negative during the fourth quarter of 2008 until 2009 and turned into positive in early 2010 due to global financial crisis. In this case, the state attempt to cut unnecessary public expenditure so as to reduce fiscal deficit which is the result of the recession in 2009. Additionally, the unemployment rate increased sharply from 1979 to 1986 and then decreased until 1990 as can be seen in the figure 2. It was because of the initial free market system that people became jobless. In 1990, there was a rapid increase in unemployment rate due to the contraction in monetary policy aimed at bringing down high inflation until 1993 (Jenkins, 2010). After that, the unemployment rate declined continuously until 2008 and then dramatically rose to 6.9% in the first quarter of 2009. This was due to the global recession which caused demand across the world fell sharply (Jenkins, 2010). However, figure 3 shows that the public sectors increasingly employed the staffs during 2008 to 2009 while the private sectors needed to reduce workforce and froze salaries. The UK government involved in this case in order that the labour market might recover quickly. (ONS, 2010) 3.2 Benefits and drawbacks for developing countries Undeniably, the UK has a powerful role in the global economy and success of the free market system. However, it may have advantages and disadvantages of this system. If developing countries try to practice this system, they should learn from the UK and adapt the system in conformity with the nature of each country. Thailand is one of developing countries which support the free enterprise system. It learns from several situations in developed countries such as UK and USA. It started to open up the country since the late twentieth century. Thai entrepreneurs have freedom to invest in Thailand or foreign countries and international investors can also open and expand their businesses in Thailand. Thus, there are several benefits which improve Thai economic in a good way. However, it had to face with the Asian financial crisis in 1997 which bring about a dramatic increase in unemployment. It might also have several environmental problems such as air pollution that is caused by many indust ries. Due to these situations, Thai government may integrate free market trading to solve the problems effectively by formulating legislation. For example, in Thailand every factory must control harmful gases which release to the atmosphere by setting up the filterable equipments. Conclusion In conclusion, this essay has discussed about the benefits and drawbacks from the market system. It is also identified the ethical problems which come from accepting free market system. Some countries have received a considerable number of benefits from this system. Meanwhile, they might be confronted with several moral problems such as poverty, crime, and environmental problems. Nowadays, most successful countries increasingly become aware of the social problems. For example, many countries should be concerned about global warming that impact on the creatures in the world because of an increase in temperature near the surface of the earth. Moreover, the state of each country should play a key role to control the problems by formulating the policy. The free trading concept is accepted in the UK economic system and it is a successful country. Even though the price mechanism plays an important role in the UK market, some sections may be regulated by the government in order to support s ocial justice. However, developing countries can apply the free market system from UK. In practice, every country may have to suitably adapt the concept in order to increase economic welfare. This is due to the fact that each country has different characteristic such as population, geography, and history of economic system. Perhaps the free trade might be advantageous for developed countries. This may not mean that every developing country should practice according to them since the free market system has also positive and negative effects. Furthermore, the GDP can measure the growth of each country but it cannot use as an indicator to evaluate human happiness. Although some countries have their high GDP index, it cannot imply that everybody who lives there have a sense of well-being and those countries do not have the social problems. Consequently, the economics should grow in parallel with concerns for human welfare.

The Biological Importance of Water

The Biological Importance of Water for Living Organisms Water is made up of two elements, 2 positively charged hydrogen molecules and one negatively charged oxygen molecule. Water molecules have uneven charge distribution as one end of the molecule is slightly positive and the other slightly negative, this is called polar. Ionic substances such as sodium chloride dissolve easily in water because the positively and negatively charged ions are separated due to the dipole nature of water. As water is dipolar, the positively charged atoms of one water molecule attracted the negatively charged molecule of another water molecule.This is called hydrogen bonding. The hydrogen bonding between each molecule results in water being liquid at room temperature as it takes a lot of energy to turn it into gas due to its high heat capacity. Hydrogen bonding makes water extremely cohesive. Cohesion is the attraction between molecules of the same type (e. g two water molecules). Water is very cohesive due to the dipolar nature of the molecule. Cohesion helps the water to flow which is important in its transportation and enables substances to be easily dissolved and transported.Waters dipole nature also makes it a good solvent. A lot of substances which take part in biological reactions are ionic, which means they are either made of one positively charged atom or molecule, or one negatively charged atom or molecule. As water is dipole, it means that the positively charged hydrogens will be attracted to the negative atoms or molecules, and the negatively charged oxygen will be attracted to the positively charged atoms or molecules, resulting in ions being totally surrounded by water molecules.In other words, the atoms or molecules will be dissolved by the water. Water is important to living organisms because its molecules can move freely enabling chemical reactions to occur easily in solution. For example, seminal fluid is mostly water which enables fertilisation to occur easily an d allows sperm to swim towards the egg. Hydrophilic substances (water loving substances) such as glucose and amino acids dissolve easily due to the nature of their polarity of their charged groups (-OH for sugars, -NH? and COOH for amino acids). As hydrophilic ubstances such as glucose can dissolve in water, it is beneficial for plants as they take up minerals and substances in solution. Furthermore, oxygen is a component of water which also allows organisms to respire in water. Blood Plasma is the main component of blood. Plasma is made of 90% water which enables blood to carry its essential nutrients such as glucose and amino acids as well as respiratory gasses. As respiratory gasses are able to travel through blood plasma, it allows essential processes to take place such as respiration.The plasma also carries other materials such as platelets which allow clotting, this is helped to be transported by the plasmas composition of 90% water. Waters high specific heat capacity allows i t act as a buffer. This is essential in endothermic organisms that need to maintain a constant body temperature in order to optimise enzyme activity and regulate its metabolism. The large number of hydrogen bonding makes it difficult for the water molecules to evaporate. When water molecules do evaporate, an exothermic reaction takes place which acts as a cooling mechanism.Water is able to remain a liquid over a large span of temperatures which is essential for metabolism and aquatic organisms. It is beneficial for aquatic organisms who are cold blooded as some may not be able to control their body temperature. It is beneficial as there is a minimal temperature fluctuation which keeps organisms body temperature constant. Keeping a constant temperature is important. In order for living organisms such as enzymes to keep functioning at their best, water needs to be kept a constant temperature to keep the enzymes working at their optimum temperature and stop them from denaturing.Further more, water also provides internal support for many living organisms. For example, water fills up in the cells of plants to stop them going flaccid as apposed to their turgid structure. Keeping the cells turgid keeps the plant upright which also benefits the plant when it comes to catching as much light as possible when photosynthesising. Water can also be taken in through the xylem of a plant in a continuous column which is also a benefit for photosynthesis. In addition to that, water also provides internal support for mammals whose fetuses are surrounded in amniotic fluid.This will not only provide protection for the fetus but also allow minerals to pass in and out of the fluid via osmosis. As well as internal support, water also provides external support. Water has a high surface tension which allows some organisms to stay afloat. An example of an organism which uses this to its advantage is a pond skater. They use the high surface tension to walk/glide along the waters surface, as there is a high tension, it prevents it from sinking. Furthermore, a high surface tension allows ice caps to stay afloat which provides insulation for aquatic organisms underneath.Another reason for why ice caps stay afloat is that water is less dense when frozen. This means that the ice caps do not fall through into the water as it is less dense so it remains on the waters surface. Water is also essential for many chemical reactions such as photosynthesis and hydrolysis. In photosynthesis, water is transparent which allows light to penetrate through to the chlorophyll to absorb as much sunlight as it can. It also allows water to absorbed up the xylem in a constant column which also aids photosynthesis.During hydrolysis, water breaks certain polymers which helps to break up salts when they are being dissolved. Water also provides lubrication to bones as it makes up synovial fluids in bone joints and the pleural fluid which surrounds the lungs. Lastly, water also has a significanc e in the food chain. Producers which are mainly made up of water such as lettuce and leaves are relied on to provide water for consumers. Water has a huge biological importance for all living organisms as it is the building blocks to each individual organism. Without water, there may not even be the life forms we see on this earth today.

Payment security

Most online customers expect to be able to pay for their goods online by credit or debit card. However, they want to be insure that their details will be kept confidential. To be secure all online payments must be: * Private and confidential only between customer and seller. * Conveyed intact and without any changes during transition. * Deleted fro the system after payment has been completed. SSL (Secure Socket Layer) allows standard browser such as Internet Explorer to send and receive information securely. Provides its users with secure payment, its users can check it by looking locked padlock symbol or â€Å"https† on the address line. SET (Secure Electronic Transfer) is more secure for online payments then SSL because information of the card e.g. card number wont be shown to seller, as when a cards company will authenticate the card through a digital signature. Unfamiliar trading conditions Unfamiliar trading can affect both, the business and its customers. The main reason for this is that online trading was relatively slow to take of, as customers were worried about buying services and goods online. However, once a new customer bought something online without any problems he/she becomes more confident to shop online. Businesses that are less successful than anticipated could have unsold products therefore they may struggle to pay money back which they have borrowed to pay website development. If customer that shop online won't get their answer quickly and receive the order on time then customers are unlikely to use their service or buy goods from that business in future. Read this  Chapter 2 – Why Security is Needed Errors in ordering However, order forms to be foolproof. This is possible to minimize customer errors. This corresponds to other customers making this error, such as making duplicate the original form twice. There has to be a comprehensive return policy which takes the legal right of customers present. You must enter the information before the order can be accepted. Most of the forms are designed this way. This could be useful in large amount of quantities or other similar errors that are reported before the order is complete. However, this could be an automated process. In order to this very large (or preferably copying) orders may be singled out so that the customer can be contacted by a call phone or email before they can go ahead with anything. Customers that do online shopping are guaranteed to be protected by the law, that states the Sales of Goods Act and also the Supply of Goods and Services Act 1982 this also applies to all other customers. There is also another act (The Sales and Supply of goods to Consumers Regulations 2002) which also gives customers right to return any goods that are damaged, this refers if the were bough in a store or on the net. Customers have the right to hand in any items which has been damaged for another item of better quality for whatever reason it may be. For an example items such as clothes that are not of the correct size or that is not a real product (duplicate, this can be checked on the actual website) can be refunded. Potential use of personal information Due to personal information organisations that keep forwent information about individuals whether on a PC system or in written words should be vital to register the information commissioner and comply with the terms with the Data Protection Act 1998. This means that the data in the PC or on paper must be accurate. This must be kept secure as long as necessary. However, this means that other businesses cannot make this information be visible on the website or misplace any details of customer to other individuals. In relation to this website must include privacy policy that ensures how information is to be used wisely by the business. This also relates to visitors which have collected by cookies and/or during a registration or ordering process. The PCECR (Privacy and Electronic Communications Regulations) also gives other businesses permission to send people via emails to individuals who have opt in by giving the permission to receive them. This means the do not have the right to send promotional emails without the candidates/clients promotion. This refers to why such emails also include the option for the client to unsubscribe at any time. Vulnerability to hostile attack It states that accordingly to the (NHTCU) which stands for National Hi-Tech Crime Unit. Cybercrime could cost UK businesses a tremendous worth of billions of pounds per annum. Not only large scale business which are threatened by hackers, spoof websites or denial of services attack. For example when few set up his highly successful website which was a million dollars he was also treated by the (DOS) attacks this to black mail blackmail demands which were high. In this case a DOS attack only occurs when a certain website is overloaded with highly useful data via email in the short period of time so that the website is brought back down. Websites are together by same users which are most known as hack mailers when they are at the most vulnerable state these for times such as seasonal times for example Christmas at time like this hack mailer would loose a retailer a sum gaining up to a million worth of pounds. A spoof is the definition of when a hijacker duplicates a website as a version of which customers may use, this will make customers think that they were dealing with actual organisation. However, this is easy to spot because it is copied very badly and links are replaced which lead to some illegal pornographic sites this is usually to mislead the companies reputation. This could be fatal as customers are asked to enter their bank details or credit card details which can be obtained by hackers which take all the customer money. Financial fraud can be caused by hackers getting into the organisations bank account. To the firm when payments are siphoned off or directed to the spoof site or even when customers are sent spoof mail asking for details which are personal this is also known as (phishing) Operational risks Website updating All websites must have someone to look after it and be updating it regularly so information is correct, up to date and all the products that are not in stock have a note â€Å"out of stock†. The inferior thing is for customer to see that pages where not updated for a long period of time, for example a year or more. In some ways wrong or out-of date information can cause serious issues. Liability for wrong or out of date information Under the act of Trades Descriptions Act and E-commerce (EC Directive) Regulations 2002 the information which is provided on the website must be stated correctly. A business that purposely gives wrong information could be recognised under these two acts. If customer chooses to react based on the outdated and incorrect information there might be a case to give an answer- even thought many websites have a ‘disclaimer' to covet that type of issue. In relation this refers to website. For example NHS has to be more aware about accuracy of the information it gives than Asda. Language problems with global customer base World wide businesses that usually have a lot of customers should give their customers a choice of different languages. To help customers to notice that website has different languages that they can use. They can put a country flag at the top corner of the site. Other smaller businesses that are national businesses do not provide this feature to their customers. Therefore there is bigger possibility that other nationality customers might get mixed up when they will want to buy goods. This is the main reason why many organisations take disclaimer clauses. Therefore websites such as Marks and Spenser only take orders that matches description accurately that is on the site, also firm is not responsible for any product to be used out of the country. Small businesses which wish to sell goods to outside businesses have two options to choose from. They can to work through a local agent or to have expectation for their service translation. It must be completed by specialist because online translators that can be found via Google are only useful for phrases to a pen friend, not for significant documents. Hardware and software failures All of PC users are depended on their internet service provider to have access to go online. However all internet services have technical faults and user will lose access to the internet until fault is not repaired. This can cause serious trouble to any online business especially if the website is not working for any period of time. There might not be any problems with ISP. However, the system itself can build up a fault. Software can be spoiled and hardware could break down. This is the mail reason why many online businesses have a back up servers, therefore if one server breaks down it will automatically switch to the second server. Software problems can be caused by several things for example programming error or in the course of a virus. None of these methods will help, even if there is a foremost failure. That's why some online businesses have their websites hosted offsite in a safe area where they have experts that are accessible to fix and re-establish the system quickly. Data loss There are many reasons data to be lost. In fact there are 1.7 million reports acknowledged in Europe of data loss every year. The main reasons for data lost are: * Theft, for example laptop theft- 5% of data loss every year * Computer virus – 7% of data loss every year * Software file corruption- 13% of data loss every year * Human error, for example unintentional removal-31% of data loss every year * Hardware failure, for example drive failure-41% of data loss every year * Hardware loss for example during flood or fire- 3% of data loss every year It is very recommended for online businesses to do daily back ups because if there are any problems they can always reinstall its system within 24 hours of the problem happening. In addition it is also ordinary to back up system before making any changes, therefore if there are any problems system can be restored easily. Individual users should also train them selves to keep important data safe and back up their files regularly. Global business regulations Many people know that there are many differences between Britain and other countries. A packet of crisps or box of chocolate that you buy on holiday, even if they are made in UK they will still have a different package and will be in a language of that country the they are sold. Cars are made with left or right hand drive, record distance travelled in miles or kilometres, and is intended to fulfil with specific system on emissions and noise levels- which again vary from one country to another. Any type of business that is intending to sell on a global basis have to be ensure that all products fulfil with the appropriate law and technical policy that apply in that country of sale. Even if the country is English speaking it doesn't mean that it will have the same laws. For example Australia has different principles than UK, therefore many goods have to be customized or â€Å"Australianised† before the can be sold there. Many countries have different laws, for example in USA health and safety equipments are different from UK and other European countries. Therefore if specific product fails to meet the terms that apply in that country, then product will be banded from entering the country.

The Prevalence Of Eating Disorders Among Elite Female...

You might think that elite female athletes, who need to be in near-perfect shape to compete, would be the last people to develop an eating disorder. Good afternoon Principal Mr Grimes, special guests, staff and students. My name is Marine Madsen and I am here today to present my Research Project: The Prevalence of Eating Disorders Amongst Elite Female Athletes. (CHANGE SLIDE) Today I will be addressing two questions. Firstly, what is the prevalence of eating disorders amongst elite female athletes and is this group more prone to the development of the condition compared to their non-athletic female counterparts? (CHANGE SLIDE) The secondary question I will be exploring is: Do elite female athletes and females suffering who suffer eating disorders, share similar personality characteristics and if so, could this explain the prevalence of the condition amongst elite female athletes? (CHANGE SLIDE) Why did I choose this topic? I knew from the beginning that I wanted a topic surrounding the field of psychology. I chose eating disorders as I have always been curious about mental illnesses and the predisposing factors of these conditions. Instead of just focusing on purely eating disorders, I wanted to add another element that was relevant to my life, and thus, as I enjoy sports, I thought to incorporate elite female athletes. (CHANGE SLIDE) What are eating disorders? Eating disorders are defined by abnormal obsessive thoughts regarding food and weight, feelingsShow MoreRelatedEating Disorders in Sports1405 Words   |  6 Pagesoccurrence of eating disorders are a serious problem worldwide. 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