Political Economy in the Asia Pacific Free Essays

string(135) " host country are followed, as well as continuing to meet the legal requirements of the home country \(Griffin Pustay, 2010, p\." The political economy of countries can be considered interdependent, as they influence each other and experience change simultaneously. This interdependency affects the level of economic wellbeing of countries, including the economic conditions and stability of a country. The political economy of a country encompasses the political, legal and economic systems influencing the country’s economy. We will write a custom essay sample on Political Economy in the Asia Pacific or any similar topic only for you Order Now Jevons (1880) described political economy as the wealth of a country and the reasons contributing to differences in wealth between countries (p. 7). The political system of a country heavily influences the way in which a country operates, and often affects other countries that it actively deals with. Differing legal systems, laws and regulations of countries can also impact other countries. Similarly, the economic systems and changes in a country’s economic position can impact other countries, and at times, their economic wellbeing. Whilst the political, legal and economic systems of some countries are interdependent, disruptions to interdependency must also be considered when assessing those countries’ reliance on each other. Several factors can hinder their interdependency, including comparative advantage not being followed, a strong focus on regionalism and inefficient free trade agreements. Political decisions imposed by Governments can affect the political economy and often the wellbeing of countries. Government decisions, including laws and policies, affect society as a whole (Hill, Cronk, Wickramasekera, 2011, p. 236). There are two main forms of political systems: democracy and totalitarianism. Democracy is a system where the citizens govern the country through their elected representatives (Hill et al. , 2011, p. 245). Examples of democratic countries in the Asia Pacific business region include Australia and Thailand (Department of Foreign Affairs and Trade, 2008) (U. S Department of State, n. d. ). Totalitarianism refers to a system where one person or political party has control over all citizens, restricting political freedom (Hill et al. , 2011, p. 245). Totalitarianism is seen in China and North Korea (Jianming, 2010, p. 2) (Lim, 2009, p. 10-114). These differing political systems can affect economic relations between countries. An example of this is the view that democratic countries are more willing to trade and participate in international business with other democracies, than with totalitarianism countries. Democracies share similar values and laws on intellectual property rights. It is also believed that peace is more prevalent in democracies, enabling a higher e ase of trade (Rosendorff, P. 2000). We see this in Australia’s preference for trade with the US rather than with China. In September 2010, the Department of Foreign Affairs and Trade reported that Australia had an ‘economic relationship’ (measured on trade in commodities, services and two-way investment) with the US worth over AUD$860 billion, compared to less than AUD$100 billion with China. The strength of the economic relationship between Australia and the US is believed to relate to each countries’ strong democratic values and from the US and Australia being strong allies, due to similar political practices (Sheridan, 2011). The varying political decisions and policies made by Governments can also impact other countries. With globalisation being so prominent today, the interdependency of a country’s political decisions is apparent. Globalisation dramatically increased after World War II, with many of the worlds’ major trading countries lowering trade barriers, including tariffs and quotas, after years of favoring local industries (Griffin Pustay, 2010, p. 38). According to Friedman (2000) globalisation is defined as ‘the inexorable integration of markets, nation-states, and technologies†¦in a way that enables individuals, corporations and nation-states to reach around the world farther, faster, deeper, and cheaper than ever before’ (p. ). This integration of economies suggests that Government decisions affect the economic wellbeing of other countries. An example of this is the recent temporary ban of live cattle exports by the Gillard Government in Australia, in response to perceived animal cruelty towards Australian cattle in Indonesian abattoirs. David Farley, CEO o f the Australian Agricultural Company, Australia’s largest beef company, reported that the ban cost the company up to AUD$8 million. He also stated that Australia’s reputation in the international trading market was damaged by the temporary ban (O’Brien, 2012). The political decision to temporarily ban live exports to Indonesia caused financial loss for the Australian cattle industry and affected Australia’s political relations with Indonesia, with the Indonesian Government stopping imports of live cattle from Australia in December. Bayu Krisnamurthi, the Deputy Agriculture Minister of Indonesia, commented that Australia had discriminated against Indonesia by imposing new standards of animal welfare, as the same standards were not imposed on other countries importing live cattle. He threatened to file a claim with the World Trade Organization if discrimination occurred (Vasek AAP, 2011). Whilst live exports to Indonesia has resumed, their imports are down by 50 percent and relations between Australia and Indonesia are affected. The incident damaged Australia’s economy and forced beef prices to rise in Indonesian markets (Nirmala, 2012). This illustrates the interdependency of Australia and Indonesia, with disruptions to trade affecting the political economy of both countries. It is evident that the political risk of Australia and Indonesia has increased. Political risk is the likelihood of political groups (Government and non-government groups) causing changes in a country’s ability to successfully participate in business activities, which may affect profits and goals of local and international businesses (Hill et al. , 2011, p. 266). Animals Australia and the Gillard Government both contributed to the live cattle export ban (Animals Australia, 2011), which in turn affected the profits of Australian beef companies. Businesses in the beef industry (or similar) may re-consider business dealings with Australian beef companies as they re-assess the political risk of trading with Australia. This may also result in Australia seeking markets elsewhere to sustain a profitable beef industry. As Governments implement differing political systems and decisions, other countries are affected, often in an unfavorable way. The differing legal systems between countries can impact dealings between countries and international businesses. The legal system of a country reflects the rules and laws imposed to manage society and behavior (Hill et al. , 2011, p. 253). A firm conducting business in a foreign country must ensure the laws of the host country are followed, as well as continuing to meet the legal requirements of the home country (Griffin Pustay, 2010, p. You read "Political Economy in the Asia Pacific" in category "Papers" 78). Four main legal systems are prominent today: common law, civil law, religious law and bureaucratic law (Griffin Pustay, 2010, p. 79). Common law is present in many countries is the Asia Pacific business region, including Australia, India, New Zealand, Hong Kong and Malaysia. Common law is based on judges’ decisions, creating legal precedents which assist in creating new laws and making future judgments (Griffin Pustay, 2010, p. 79). Civil law is a legal system based on laws that have been set in a code system. It is different to common law, as judges do not have flexibility to interpret the law as the laws are already prescribed in the code system. Civil law is currently present is Japan (Hill et al. , 2011, p. 254). Religious law, or theocratic law, is a legal system that is based on the rules of a particular religion. Religious law is not common in the Asia Pacific region (Griffin Pustay, 2010, p. 79). Bureaucratic law is a legal system where decisions are made by the country’s bureaucrats, often without taking the laws of the country into consideration. Communism and other forms of dictatorships are regularly compared to bureaucratic law. China is an example of a country where bureaucratic law is imposed (Griffin Pustay, 2010, p. 81). It is apparent there are strong differences between the legal systems of countries in the Asia Pacific, which can affect businesses operating internationally. For example, in a recently merged Australian and Chinese company, King Wood Mallesons, Stuart Fuller, the company’s chief executive, stated that China’s Ministry of Justice requirement for all lawyers to pledge allegiance to the Chinese Communist Party will not affect the company’s business dealings or clients (Sainsbury, 2012). However, this could affect lawyers who have not previously worked under the Chinese Communist Party, as they are pledging to uphold communist laws, which differ from Australian laws and values. This could also affect the perception of the company by international clients, whose values may differ from that of the Chinese Communist Party. Hence, it is evident that differing legal systems potentially influence operations between international businesses. New laws can also influence business dealings between countries. Indian companies have expressed concerns over the Australian carbon and mining taxes that are set to be implemented in 2012. Naveen Jindal, Indian parliamentarian and head of Jindal Steel and Power, believes the taxes will deter Indian companies from investing in Australian mining (and similar) companies. He stated, â€Å"The carbon tax is as much of a concern to Indian companies as it is to Australian companies† (Doherty Ker, 2012). Thus tax laws in one country can also affect another country’s economy, with a potential loss of investment opportunities and profits for both parties. It can also be seen that while a law designed for one purpose (in this case, the taxes are to help stop climate change) (Clean Energy Future, 2012) it can ultimately affect another area of a country’s economy – in this case, foreign investment. There have been circumstances where legal requirements imposed for one purpose have actually been seen as an ‘excuse’ for deterring trade or investment. In 2009, the Malaysian Palm Oil Council, on behalf of the biggest palm oil producers in the world — Malaysia and Indonesia – filed a case against the European Union (EU) for introducing sustainability criteria for palm oil imports. The Council believed that the criteria was actually a barrier to the trade of biofuel, based on the EU wanting to continue support for home-grown rapeseed oil, currently subsidised by the EU (Junginger, Dam, Zarrilli, Mohamed, Marchal Faaij, 2011, p. 028-2042). It can be recognised that the EU may have been wishing to protect the home industry and jobs, which generally results in increased costs for consumers (Hill et al. , 2011, p. 109). In disguising the true intentions of laws, a country’s trading relationships can be affected. Thus differing legal systems, laws and re quirements can affect, and often hinder the progress, of international business dealings. The economic position of one country can impact other countries and international businesses. Economic systems can be described as the system by which a country organises how and what should be produced, whom to produce for and how funds should be distributed (Hill et al. , 2011, p. 203). There are three main economic systems: market economies, command economies and mixed economies. A market economy is when production activities are privately owned, and the quantity to be produced is based on supply and demand and is determined by an individual or business for profit making purposes (Hill et al. , 2011, p. 304). In a command economy, the Government determines what goods and services are sold, the prices that items are sold for and the quantities to be produced (Hill et al. , 2011, p. 304). A mixed economy is a combination of both market and command economies, with both private and state ownership controlling the production of goods and services (Hill et al. , 2011, p. 305). It is believed that a country’s economic system directly relates to its’ economic development and wellbeing and some argue that market economies provide greater opportunities for economic development and growth, hence creating a stronger economy (Hill et al. 2011, p. 306-307). This can be seen when comparing Malaysia and Singapore as the country’s systems greatly differ. When the ASEAN and China agreement was put into effect in January 2010, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) called for a limit of 10 percent in annual growth of the amount of imports from Chin a. This was due to protection of Malay’s as manufacturers found it difficult to compete against cheap Chinese products (Ng, F. , 2010). This shows Malaysia’s economic system reflects command economy characteristics, as there is control over what is imported, which in turn could limit profits due to restrictions. Singapore is evidently more of a market economy. Singapore is considered a very ‘open’ country in relation to trade, therefore depending on international trade (Global Trade, 2012). The World Bank has stated that Singapore is the easiest country to conduct business with, with the openness of trade and aim to attract foreign direct investment (FDI) being contributing factors (The World Bank, 2009). Since signing a free trade agreement with the US, Singapore has imposed competition laws that restrict anti-competitive regulations. The Ministry of Trade and Industry in Singapore stated that by encouraging competition, they would be able to encourage the ‘efficient functioning of the markets’. This move resulted in foreign lawyers and barristers to pursue work opportunities in Singapore (Sawyer, D. , 2006). By comparing Singapore and Malaysia, it can be viewed that market economies (such as Singapore) have greater potential for economic growth. Currency fluctuations can affect countries with interdependent economies when a change in the value of one currency affects other currencies. Indonesia’s economy was considered to be competitively growing from 1966 – 2007, based on the country’s commitment to lowering poverty through rural development and increased production in the rice industry. However, the Asian Financial Crisis from 1997-2000 caused poverty in Indonesia to rise, while GDP drastically decreased (Fatah, Othman Abdullah, 2012, p. 291-299). The high economic growth of Asian countries directly contributed to the crisis, mainly through an increase in investment, excess capacity, high levels of debt and increased imports. As borrowing and investments grew, companies were unable to service their debts (Hill et al. , 2011, p. 176). When the Thai Baht fell by 55 percent in 1998, other Asian currencies were deeply affected, including the Indonesian rupiah, which decreased 76 percent in 6 months. The decline of the Indonesian economy forced the Government to accept a loan of US$37 billion from the International Monetary Fund (IMF) Hill et al. , 2011, p. 177). The consequences of rapidly expanding Asian economies and the impact of decreasing currencies on each country was evident during the Asian Financial Crisis. The economic interdependency between countries had a negative impact on other economies, affecting their economic wellbeing as their economic position declined. Although the political economy of countries is generally interdependent, there are factors that deter interdependency from completely occurring. For interdependency to function best, comparative advantage should be allowed to operate. David Ricardo developed the theory of comparative advantage in the 19th century and suggested that a country should produce and export goods and services that it is relatively more productive at producing than other countries, and import goods and services that are more productively made by other countries (Ricardo, 1817). Through their comparative advantage, countries benefit economically from participating in trade. This also suggests that free and open trade between countries is positive for economic progression (Hill et al. , 2011, p. 65). However, this theory is not always practised since Government political decisions can prevent its effectiveness. On 22 March, 2012 automaker Holden received a AUD$275 million government subsidy to continue to operate its Australian factories, in order to maintain jobs (Straits Times, 2012). According to Chris Berg, â€Å"Less than half of one per cent of the labour force works for the car industry and car manufacturers are not particularly central to the economic structure, cars are not†¦hard to buy from overseas and their manufacturing is not particularly high-tech† (Berg, 2012). Thus Australia is not following comparative advantage in the car manufacturing industry, with the reliance of Government subsidies helping to continue production and maintain jobs. This can be compared to Thailand, with car manufacturing production hugely increasing due to low labour costs (Bangkok Post, 2011). As export demand has increased, production has increased, with an 11 percent rise in the last year (Bangkok Post, 2012). Surapong Paisittanapong, spokesperson of the Automotive Industry Club under the Federation of Thai Industries (FTI), commented, â€Å"We’re confident that total auto production this year will reach 2. million units† (Viboonchart, 2012). Perhaps Australia ought to increase its imports from Thai car manufacturers rather than providing subsidies to Australian companies, assuming Thai cars are cheaper than the overall cost of producing an Australian car. Although countries can be seen as interdependent, barriers are often imposed to protect local i ndustries and jobs, discouraging the comparative advantage theory and potentially affecting economic progression and wellbeing. Another factor that contributes to countries not reaching full interdependency is the focus on regionalism. Regionalism is a method of opening trade amongst neighboring countries and is viewed positively as not only extending markets to neighboring countries, but as strengthening regional security and delaying globalisation. By forming close regional communities, countries can form trade agreements and other mechanisms that protect the region from the threats of globalisation, and still prosper economically through increased local business between countries in the region (Moshirian, 2009, p. 2-8). However, this push for regionalism may be obscuring some Asian countries’ economy’s ability to achieve higher profits, as the countries are still heavily reliant on other countries in different regions. We see this in the ASEAN official data release 2010, which shows that Singapore still exports 27. 97 percent of its’ total exports to countries in the EU (ASEAN Community in Figures (ACIF), 2010). This reliance demonstrates that partner countries are often unable to consume each other’s goods and therefore must export goods to other markets, outside of their own region. Whilst regionalism is still a form of interdependency between countries, the focus is on increasing business between neighbouring countries rather than all countries. Another exception to the interdependency of countries is when free trade agreements (FTA) are not efficient. The increase in free trade agreements since the end of the cold war across the world, predominantly in the Asia-Pacific, suggests countries depend on each other’s business for economic growth (Suominen, 2009). The Asia-Pacific Economic Cooperation (APEC) began as a forum in 1989, before becoming a regional trade agreement (RTA) in 1993. APEC’s main goal is to establish free and open trade and investment in the Asia-Pacific (APEC, 2012). However, trade agreements in the Asia-Pacific region have favored the manufacturing sector, with low tariffs and more freedom to trade, as compared to the agriculture sector, which has seen a high degree of protectionism from Governments in order to protect industry and jobs. This suggests that APEC’s goal is not entirely being reached (Suominen, 2009). Whilst FTA’s are effective in theory, Government intervention suggests that complete free trade is not apparent, thus obstructing the interdependency of countries to a certain extent. It is evident the interdependency of countries can be attributed to the political economy, that is, the political, legal and economic systems and position, of a country. Decisions made by Governments often affect other countries, and at times have adverse implications. A country’s legal system can both restrict and open up opportunities for other countries. Growing regionalism in areas such as Asia means there are closer economic ties between countries in the immediate region. The fluctuating strength of one economy can affect its regional partners, particularly in relation to currencies and interest rates. Whilst there are clearly benefits to be gained from a strong interdependency and reliance on other countries, there are also factors that hinder complete interdependency. When countries do not follow comparative advantage, or engage in inefficient free trade agreements, some of the potential benefits of interdependency can be lost. Often governments interfere in markets for their own political, legal and economic reasons, and the perceived opportunities that should flow from regionalism and other frameworks such as FTA’s are not realised. How to cite Political Economy in the Asia Pacific, Papers

Political Economy in the Asia Pacific Free Essays

string(135) " host country are followed, as well as continuing to meet the legal requirements of the home country \(Griffin Pustay, 2010, p\." The political economy of countries can be considered interdependent, as they influence each other and experience change simultaneously. This interdependency affects the level of economic wellbeing of countries, including the economic conditions and stability of a country. The political economy of a country encompasses the political, legal and economic systems influencing the country’s economy. We will write a custom essay sample on Political Economy in the Asia Pacific or any similar topic only for you Order Now Jevons (1880) described political economy as the wealth of a country and the reasons contributing to differences in wealth between countries (p. 7). The political system of a country heavily influences the way in which a country operates, and often affects other countries that it actively deals with. Differing legal systems, laws and regulations of countries can also impact other countries. Similarly, the economic systems and changes in a country’s economic position can impact other countries, and at times, their economic wellbeing. Whilst the political, legal and economic systems of some countries are interdependent, disruptions to interdependency must also be considered when assessing those countries’ reliance on each other. Several factors can hinder their interdependency, including comparative advantage not being followed, a strong focus on regionalism and inefficient free trade agreements. Political decisions imposed by Governments can affect the political economy and often the wellbeing of countries. Government decisions, including laws and policies, affect society as a whole (Hill, Cronk, Wickramasekera, 2011, p. 236). There are two main forms of political systems: democracy and totalitarianism. Democracy is a system where the citizens govern the country through their elected representatives (Hill et al. , 2011, p. 245). Examples of democratic countries in the Asia Pacific business region include Australia and Thailand (Department of Foreign Affairs and Trade, 2008) (U. S Department of State, n. d. ). Totalitarianism refers to a system where one person or political party has control over all citizens, restricting political freedom (Hill et al. , 2011, p. 245). Totalitarianism is seen in China and North Korea (Jianming, 2010, p. 2) (Lim, 2009, p. 10-114). These differing political systems can affect economic relations between countries. An example of this is the view that democratic countries are more willing to trade and participate in international business with other democracies, than with totalitarianism countries. Democracies share similar values and laws on intellectual property rights. It is also believed that peace is more prevalent in democracies, enabling a higher e ase of trade (Rosendorff, P. 2000). We see this in Australia’s preference for trade with the US rather than with China. In September 2010, the Department of Foreign Affairs and Trade reported that Australia had an ‘economic relationship’ (measured on trade in commodities, services and two-way investment) with the US worth over AUD$860 billion, compared to less than AUD$100 billion with China. The strength of the economic relationship between Australia and the US is believed to relate to each countries’ strong democratic values and from the US and Australia being strong allies, due to similar political practices (Sheridan, 2011). The varying political decisions and policies made by Governments can also impact other countries. With globalisation being so prominent today, the interdependency of a country’s political decisions is apparent. Globalisation dramatically increased after World War II, with many of the worlds’ major trading countries lowering trade barriers, including tariffs and quotas, after years of favoring local industries (Griffin Pustay, 2010, p. 38). According to Friedman (2000) globalisation is defined as ‘the inexorable integration of markets, nation-states, and technologies†¦in a way that enables individuals, corporations and nation-states to reach around the world farther, faster, deeper, and cheaper than ever before’ (p. ). This integration of economies suggests that Government decisions affect the economic wellbeing of other countries. An example of this is the recent temporary ban of live cattle exports by the Gillard Government in Australia, in response to perceived animal cruelty towards Australian cattle in Indonesian abattoirs. David Farley, CEO o f the Australian Agricultural Company, Australia’s largest beef company, reported that the ban cost the company up to AUD$8 million. He also stated that Australia’s reputation in the international trading market was damaged by the temporary ban (O’Brien, 2012). The political decision to temporarily ban live exports to Indonesia caused financial loss for the Australian cattle industry and affected Australia’s political relations with Indonesia, with the Indonesian Government stopping imports of live cattle from Australia in December. Bayu Krisnamurthi, the Deputy Agriculture Minister of Indonesia, commented that Australia had discriminated against Indonesia by imposing new standards of animal welfare, as the same standards were not imposed on other countries importing live cattle. He threatened to file a claim with the World Trade Organization if discrimination occurred (Vasek AAP, 2011). Whilst live exports to Indonesia has resumed, their imports are down by 50 percent and relations between Australia and Indonesia are affected. The incident damaged Australia’s economy and forced beef prices to rise in Indonesian markets (Nirmala, 2012). This illustrates the interdependency of Australia and Indonesia, with disruptions to trade affecting the political economy of both countries. It is evident that the political risk of Australia and Indonesia has increased. Political risk is the likelihood of political groups (Government and non-government groups) causing changes in a country’s ability to successfully participate in business activities, which may affect profits and goals of local and international businesses (Hill et al. , 2011, p. 266). Animals Australia and the Gillard Government both contributed to the live cattle export ban (Animals Australia, 2011), which in turn affected the profits of Australian beef companies. Businesses in the beef industry (or similar) may re-consider business dealings with Australian beef companies as they re-assess the political risk of trading with Australia. This may also result in Australia seeking markets elsewhere to sustain a profitable beef industry. As Governments implement differing political systems and decisions, other countries are affected, often in an unfavorable way. The differing legal systems between countries can impact dealings between countries and international businesses. The legal system of a country reflects the rules and laws imposed to manage society and behavior (Hill et al. , 2011, p. 253). A firm conducting business in a foreign country must ensure the laws of the host country are followed, as well as continuing to meet the legal requirements of the home country (Griffin Pustay, 2010, p. You read "Political Economy in the Asia Pacific" in category "Papers" 78). Four main legal systems are prominent today: common law, civil law, religious law and bureaucratic law (Griffin Pustay, 2010, p. 79). Common law is present in many countries is the Asia Pacific business region, including Australia, India, New Zealand, Hong Kong and Malaysia. Common law is based on judges’ decisions, creating legal precedents which assist in creating new laws and making future judgments (Griffin Pustay, 2010, p. 79). Civil law is a legal system based on laws that have been set in a code system. It is different to common law, as judges do not have flexibility to interpret the law as the laws are already prescribed in the code system. Civil law is currently present is Japan (Hill et al. , 2011, p. 254). Religious law, or theocratic law, is a legal system that is based on the rules of a particular religion. Religious law is not common in the Asia Pacific region (Griffin Pustay, 2010, p. 79). Bureaucratic law is a legal system where decisions are made by the country’s bureaucrats, often without taking the laws of the country into consideration. Communism and other forms of dictatorships are regularly compared to bureaucratic law. China is an example of a country where bureaucratic law is imposed (Griffin Pustay, 2010, p. 81). It is apparent there are strong differences between the legal systems of countries in the Asia Pacific, which can affect businesses operating internationally. For example, in a recently merged Australian and Chinese company, King Wood Mallesons, Stuart Fuller, the company’s chief executive, stated that China’s Ministry of Justice requirement for all lawyers to pledge allegiance to the Chinese Communist Party will not affect the company’s business dealings or clients (Sainsbury, 2012). However, this could affect lawyers who have not previously worked under the Chinese Communist Party, as they are pledging to uphold communist laws, which differ from Australian laws and values. This could also affect the perception of the company by international clients, whose values may differ from that of the Chinese Communist Party. Hence, it is evident that differing legal systems potentially influence operations between international businesses. New laws can also influence business dealings between countries. Indian companies have expressed concerns over the Australian carbon and mining taxes that are set to be implemented in 2012. Naveen Jindal, Indian parliamentarian and head of Jindal Steel and Power, believes the taxes will deter Indian companies from investing in Australian mining (and similar) companies. He stated, â€Å"The carbon tax is as much of a concern to Indian companies as it is to Australian companies† (Doherty Ker, 2012). Thus tax laws in one country can also affect another country’s economy, with a potential loss of investment opportunities and profits for both parties. It can also be seen that while a law designed for one purpose (in this case, the taxes are to help stop climate change) (Clean Energy Future, 2012) it can ultimately affect another area of a country’s economy – in this case, foreign investment. There have been circumstances where legal requirements imposed for one purpose have actually been seen as an ‘excuse’ for deterring trade or investment. In 2009, the Malaysian Palm Oil Council, on behalf of the biggest palm oil producers in the world — Malaysia and Indonesia – filed a case against the European Union (EU) for introducing sustainability criteria for palm oil imports. The Council believed that the criteria was actually a barrier to the trade of biofuel, based on the EU wanting to continue support for home-grown rapeseed oil, currently subsidised by the EU (Junginger, Dam, Zarrilli, Mohamed, Marchal Faaij, 2011, p. 028-2042). It can be recognised that the EU may have been wishing to protect the home industry and jobs, which generally results in increased costs for consumers (Hill et al. , 2011, p. 109). In disguising the true intentions of laws, a country’s trading relationships can be affected. Thus differing legal systems, laws and re quirements can affect, and often hinder the progress, of international business dealings. The economic position of one country can impact other countries and international businesses. Economic systems can be described as the system by which a country organises how and what should be produced, whom to produce for and how funds should be distributed (Hill et al. , 2011, p. 203). There are three main economic systems: market economies, command economies and mixed economies. A market economy is when production activities are privately owned, and the quantity to be produced is based on supply and demand and is determined by an individual or business for profit making purposes (Hill et al. , 2011, p. 304). In a command economy, the Government determines what goods and services are sold, the prices that items are sold for and the quantities to be produced (Hill et al. , 2011, p. 304). A mixed economy is a combination of both market and command economies, with both private and state ownership controlling the production of goods and services (Hill et al. , 2011, p. 305). It is believed that a country’s economic system directly relates to its’ economic development and wellbeing and some argue that market economies provide greater opportunities for economic development and growth, hence creating a stronger economy (Hill et al. 2011, p. 306-307). This can be seen when comparing Malaysia and Singapore as the country’s systems greatly differ. When the ASEAN and China agreement was put into effect in January 2010, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) called for a limit of 10 percent in annual growth of the amount of imports from Chin a. This was due to protection of Malay’s as manufacturers found it difficult to compete against cheap Chinese products (Ng, F. , 2010). This shows Malaysia’s economic system reflects command economy characteristics, as there is control over what is imported, which in turn could limit profits due to restrictions. Singapore is evidently more of a market economy. Singapore is considered a very ‘open’ country in relation to trade, therefore depending on international trade (Global Trade, 2012). The World Bank has stated that Singapore is the easiest country to conduct business with, with the openness of trade and aim to attract foreign direct investment (FDI) being contributing factors (The World Bank, 2009). Since signing a free trade agreement with the US, Singapore has imposed competition laws that restrict anti-competitive regulations. The Ministry of Trade and Industry in Singapore stated that by encouraging competition, they would be able to encourage the ‘efficient functioning of the markets’. This move resulted in foreign lawyers and barristers to pursue work opportunities in Singapore (Sawyer, D. , 2006). By comparing Singapore and Malaysia, it can be viewed that market economies (such as Singapore) have greater potential for economic growth. Currency fluctuations can affect countries with interdependent economies when a change in the value of one currency affects other currencies. Indonesia’s economy was considered to be competitively growing from 1966 – 2007, based on the country’s commitment to lowering poverty through rural development and increased production in the rice industry. However, the Asian Financial Crisis from 1997-2000 caused poverty in Indonesia to rise, while GDP drastically decreased (Fatah, Othman Abdullah, 2012, p. 291-299). The high economic growth of Asian countries directly contributed to the crisis, mainly through an increase in investment, excess capacity, high levels of debt and increased imports. As borrowing and investments grew, companies were unable to service their debts (Hill et al. , 2011, p. 176). When the Thai Baht fell by 55 percent in 1998, other Asian currencies were deeply affected, including the Indonesian rupiah, which decreased 76 percent in 6 months. The decline of the Indonesian economy forced the Government to accept a loan of US$37 billion from the International Monetary Fund (IMF) Hill et al. , 2011, p. 177). The consequences of rapidly expanding Asian economies and the impact of decreasing currencies on each country was evident during the Asian Financial Crisis. The economic interdependency between countries had a negative impact on other economies, affecting their economic wellbeing as their economic position declined. Although the political economy of countries is generally interdependent, there are factors that deter interdependency from completely occurring. For interdependency to function best, comparative advantage should be allowed to operate. David Ricardo developed the theory of comparative advantage in the 19th century and suggested that a country should produce and export goods and services that it is relatively more productive at producing than other countries, and import goods and services that are more productively made by other countries (Ricardo, 1817). Through their comparative advantage, countries benefit economically from participating in trade. This also suggests that free and open trade between countries is positive for economic progression (Hill et al. , 2011, p. 65). However, this theory is not always practised since Government political decisions can prevent its effectiveness. On 22 March, 2012 automaker Holden received a AUD$275 million government subsidy to continue to operate its Australian factories, in order to maintain jobs (Straits Times, 2012). According to Chris Berg, â€Å"Less than half of one per cent of the labour force works for the car industry and car manufacturers are not particularly central to the economic structure, cars are not†¦hard to buy from overseas and their manufacturing is not particularly high-tech† (Berg, 2012). Thus Australia is not following comparative advantage in the car manufacturing industry, with the reliance of Government subsidies helping to continue production and maintain jobs. This can be compared to Thailand, with car manufacturing production hugely increasing due to low labour costs (Bangkok Post, 2011). As export demand has increased, production has increased, with an 11 percent rise in the last year (Bangkok Post, 2012). Surapong Paisittanapong, spokesperson of the Automotive Industry Club under the Federation of Thai Industries (FTI), commented, â€Å"We’re confident that total auto production this year will reach 2. million units† (Viboonchart, 2012). Perhaps Australia ought to increase its imports from Thai car manufacturers rather than providing subsidies to Australian companies, assuming Thai cars are cheaper than the overall cost of producing an Australian car. Although countries can be seen as interdependent, barriers are often imposed to protect local i ndustries and jobs, discouraging the comparative advantage theory and potentially affecting economic progression and wellbeing. Another factor that contributes to countries not reaching full interdependency is the focus on regionalism. Regionalism is a method of opening trade amongst neighboring countries and is viewed positively as not only extending markets to neighboring countries, but as strengthening regional security and delaying globalisation. By forming close regional communities, countries can form trade agreements and other mechanisms that protect the region from the threats of globalisation, and still prosper economically through increased local business between countries in the region (Moshirian, 2009, p. 2-8). However, this push for regionalism may be obscuring some Asian countries’ economy’s ability to achieve higher profits, as the countries are still heavily reliant on other countries in different regions. We see this in the ASEAN official data release 2010, which shows that Singapore still exports 27. 97 percent of its’ total exports to countries in the EU (ASEAN Community in Figures (ACIF), 2010). This reliance demonstrates that partner countries are often unable to consume each other’s goods and therefore must export goods to other markets, outside of their own region. Whilst regionalism is still a form of interdependency between countries, the focus is on increasing business between neighbouring countries rather than all countries. Another exception to the interdependency of countries is when free trade agreements (FTA) are not efficient. The increase in free trade agreements since the end of the cold war across the world, predominantly in the Asia-Pacific, suggests countries depend on each other’s business for economic growth (Suominen, 2009). The Asia-Pacific Economic Cooperation (APEC) began as a forum in 1989, before becoming a regional trade agreement (RTA) in 1993. APEC’s main goal is to establish free and open trade and investment in the Asia-Pacific (APEC, 2012). However, trade agreements in the Asia-Pacific region have favored the manufacturing sector, with low tariffs and more freedom to trade, as compared to the agriculture sector, which has seen a high degree of protectionism from Governments in order to protect industry and jobs. This suggests that APEC’s goal is not entirely being reached (Suominen, 2009). Whilst FTA’s are effective in theory, Government intervention suggests that complete free trade is not apparent, thus obstructing the interdependency of countries to a certain extent. It is evident the interdependency of countries can be attributed to the political economy, that is, the political, legal and economic systems and position, of a country. Decisions made by Governments often affect other countries, and at times have adverse implications. A country’s legal system can both restrict and open up opportunities for other countries. Growing regionalism in areas such as Asia means there are closer economic ties between countries in the immediate region. The fluctuating strength of one economy can affect its regional partners, particularly in relation to currencies and interest rates. Whilst there are clearly benefits to be gained from a strong interdependency and reliance on other countries, there are also factors that hinder complete interdependency. When countries do not follow comparative advantage, or engage in inefficient free trade agreements, some of the potential benefits of interdependency can be lost. Often governments interfere in markets for their own political, legal and economic reasons, and the perceived opportunities that should flow from regionalism and other frameworks such as FTA’s are not realised. How to cite Political Economy in the Asia Pacific, Papers

Cosi Lewis Changes by Directing the Play free essay sample

How are ideas about betrayal and loyalty explored through the structure of the play- within-a-play? The most obvious structural feature is the play-within-a-play, which highlights the parallels between the characters and themes in Mozart opera, and those in Anoraks play. Both the opera and play revolve around issues of loyalty, fidelity and betrayal. The backdrop of war is also a significant feature of both texts: the Vietnam War In the sass (In Coos) and the Albanian battle for Independence from the Ottoman Empire ;n 1790 on coos Fan Tutee).Wars also involve loyalties and betrayals, and their chaos on a grand scale underscores the chaos in the lives of the characters in the opera and the play. (Sue Sherman : English for Year 12) ;According to Mozart Coos Fan Tutee, the issue of fidelity is depicted to be an ideal that is never achieved. ;Since Women are like that the interpretation of coos fan tutee, Mozart encouraged the belief that men should simply accept women are indeed disloyal In relationships. We will write a custom essay sample on Cosi: Lewis Changes by Directing the Play or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Narrow illustrates this same idea about women and infidelity through Lewis and Lullys relationship.While Lucy is Sleeping with Lewis, she is also having sex; with Nick. When Lewis discovers Lullys betrayal, she waves aside his shock. Defending that it is not as if were married. The revelation does indeed prove that Coos Fan Tutee is correct In stating that, Womans constancy Is like the Arabian Phoenix. Everyone swears It exists, but no one has seen It. ;Although the women in both Coos Fan Tutee and Coos are shown to be unfaithful, so are the men. While the men in Coos Fan Tutee do not actively participate in adultery, they do fabricate their departure to the war and also disguise themselves as Albanians. Their deception is also a betrayal to their wives. Meanwhile, Don Alfonse manipulates everyone. As seen In Coos, Lewis Is unfaithful to Lucy as he kisses Julie during rehearsals. ;Julie later reveals that she has a girlfriend who she would prefer to be with, confirming that both men and women are unfaithful in relationships. (source: VICE Study Guides) Women are never true. Women like to pretend they dont play around, but theyre Just more secretive about it. They dont brag about it like men. Women are flesh and blood too. l dont like mens double standards. Womens constancy is like the Phoenix of Arabia.Everyone swears it exists, but no one has seen it. Irony in the fact that Henry plays the part of Don Alfonse in Coos Fan Tutee as Henry firmly believes in truth and fidelity whereas Don Alfonse is cynical about it. This Coos condones the corruption of innocence. Omen are told to be tramps. Free love. Whether women can remain true is a tragedy. Dont insult those pure men. Theyre models of fidelity and perfect love. (Coos Fan Tutee) Only mad people in this day and age would do a Nor about love and infidelity. Lewis and Julie kiss demonstrating that men too can be unfaithful.In a way, Nick is also unfaithful in his friendship with Lewis. Mimi have enemies for life, but never lovers. Everyone blames women, but I forgive them. If they change their love a thousand times a day, some call it sin, others a drug, but I think its the necessity of womens hearts. Thats how men want us to be even though theyre not true and faithful themselves. Wagner foreshadows what is going to happen to the couples in the future. A life of torment and adultery. Nick Justifies his infidelity with were mates, arent we? Nick and Lucy didnt last long as both were not into love and fidelity.

Social network communication

Social media platform With the current developments in scientific innovations and inventions, there are new ways of communicating, interacting and passing information. Social networks have been used by companies, individuals and in some place the government to share and pass information.Advertising We will write a custom essay sample on Social network communication specifically for you for only $16.05 $11/page Learn More The main reason that has lead to the growth in social media networks is the cost associated and their effectiveness. When something has been posted over the social media, it can easily spread to the intended people. According to Dasf, in modern computerized world, people seem to be more connected to their electronic gadgets that they interact face to face. I have an account with Facebook; this is the account that I use to communicate with my friend, pass information to the world and meet new friends. Regularly, I update my account with w hat I feel should be discussed or I should get views of different people; sometimes it may be a joke and others some serious stuffs. Dasf is of the opinion that new relationships and friendships are developing and growing into new heights through social networks. When I am updating the site and commenting on other peoples posts, I am balancing my online life and offline life; it is worth noting that the site can be â€Å"addictive,† thus I have to ensure that I have budgeted my time wisely that it does not spend my working and reading time (Danah, â€Å"White Flight in Networked Public†). Facebook comments and updates can be accessed to a number of people; the site offers some linkage from one person to another; however to maintain my privacy and shape my public image, I ensure that I post things that are ethically and morally acceptable. They are things that might be happening in the social networks but the way I put the matter in the form of language and tone of the posting is to ensure that I give my opinion and it portrays my high values and respect to other peoples opinions’. On the other hand, my social network site has offered security platform adjustments. A link that allows me to limit the number of people who can see my profile; for example, I have ensured that only my friends have an access to my private information. I also vet my friends before upgrading them to the level of friends who can see my profile.Advertising Looking for essay on communications media? Let's see if we can help you! Get your first paper with 15% OFF Learn More Dana Boyd is of the opinion that despite the invention of social networks across space, time and geographical areas, then, â€Å"Privacy Is Not Dead,† people can still initiate policies that facilitate privacy and limit the access of private information. The approach that Facebook has taken is one that caters for the needs of all people in the community as well as companies are using the site to advertise their products and promote their works through the sites. However, the community that I interact with are the young people who include my classmates, friends both domestics and those living in the Diaspora, and I am a member of some social groups formed within the social network. The people and the kind of posts that are present in my site can be referred to as college-centered nature; this are mostly on the current situation in the world and what is happening in the college environment. In the words of Dasf, social sites assist people to share updates and information; this is the main role played by my Facebook page. According to Dana Boyd ‘Tastes and aesthetics are not universal but deeply linked to identity and values†, this means that as people interact, they exchange their believes, values, cultures and viewpoints. When this happens, they are likely to create different reaction and help in shaping the users believes. The behavior and cha racter of human beings is shaped by the materials they are exposed to; if they get exposed to materials that is not favorable, then they are likely to develop a deviant behavior. The post over Facebook shapes the users behavior, attitude, and perception. For example, when the site is used to advertise for commodities, then buyers are more likely to be persuaded especially when they see other people comment positively about how the product has changed their lives. On the other hand, if the comments are negatives, a user of the product is more likely to be convinced that the commodity is not good thus stop using the products.Advertising We will write a custom essay sample on Social network communication specifically for you for only $16.05 $11/page Learn More Among the young, some posts that can initiate some positive values as well as negative ones; for example, a post that shows people rejoicing as they praise God and confession by person on how another person has seen miracles when they follow teaching of God. A youth who has seen life to be hopeless is likely to respond positively to such a post and assist in shaping his attitude and perception in life. On the other hand, there may be a post that seems to promote premarital sex; such posts can persuade a morally upright youth to involve in such practices (Danah, â€Å"Making Sense of Privacy and Publicity†). Circulation vs. Distribution In communication and technology, circulation means the flow of intended information or enriched information from the intended source of the information and then after the flow, the information gets back to the source of information to be enriched or as a feedback. The process is continuous and follows the all processes of effective communication. Distribution on the other hand, means how circulated information gets to the larger community; the large communities are the people who are consume the information after it has been upgraded and c onsidered fit for public consumption. The main difference between circulation and distribution is the number of people involved and the stage at which they get the information. In the case of circulation, the information gets to specific people who are expected to vet the quality of the information and give feedback on areas that it needs to be improved and whether the information is fit for public consumption. On the other hand, distribution goes to the larger community, they are expected to consumer the information as it has been given and only offer feedback by response they give to the communication. For an effective communication, there must be effective methods of circulation and distribution; the effective of the methods determine the degree of success of a certain communication. Both circulation and communication are two-way systems; in circulation, a limited number of people consume the information and gets back to the source for improvement of the information before it get s to the public. In distribution, the response of the target members of the public is the feedback that completes the two-way system.Advertising Looking for essay on communications media? Let's see if we can help you! Get your first paper with 15% OFF Learn More Works Cited Danah, Boyd. Making Sense of Privacy and Publicity. South by Southwest, March 13 2010. Web. White Flight in Networked Publics? How Race and Class Shaped American Teen Engagement with MySpace and Facebook. Digital Race Anthology, 2009. Web. This essay on Social network communication was written and submitted by user GwenStacy to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Tongoy V. Ca Essay Example

Tongoy V. Ca Essay Example Tongoy V. Ca Essay Tongoy V. Ca Essay Facts: This is an action for reconveyance respecting two (2) parcels of land in Bacolod City. The first is Lot No. 397 of the Cadastral Survey of Bacolod, otherwise known as Hacienda Pulo, containing an area of 727,650 square meters and originally registered under Original Certificate of Title No. 2947 in the names of Francisco Tongoy, Jose Tongoy, Ana Tongoy, Teresa Tongoy and Jovita Tongoy in pro-indiviso equal shares. Said co-owners were all children of the late Juan Aniceto Tongoy. The second is Lot No. 1395 of the Cadastral Survey of Bacolod, briefly referred to as Cuaycong property, containing an area of 163,754 square meters, and formerly covered by Original Certificate of Title No. 674 in the name of Basilisa Cuaycong. Of the original registered co-owners of Hacienda Pulo, three died without issue, namely: Jose Tongoy, who died a widower on March 11, 1961; Ama Tongoy, who also died single on February 6, 1957, and Teresa Tongoy who also died single on November 3, 1949. The oth er two registered co-owners, namely, Francisco Tongoy and Jovita Tongoy, were survived by children. Francisco Tongoy, who died on September 15, 1926, had six children; Patricio D. Tongoy and Luis D. Tongoy by the first marriage; Amado P.Tongoy, Ricardo P. Tongoy; Cresenciano P. Tongoy and Norberto P. Tongoy by his second wife Antonina Pabello whom he subsequently married sometime after the birth of their children. For her part, Jovita Tongoy (Jovita Tongoy de Sonora), who died on May 14, 1915, had four children: Mercedes T. Sonora, Juan T. Sonora, Jesus T. Sonora and Trinidad T. Sonora. By the time this case was commenced, the late Francisco Tongoys aforesaid two children by his first marriage, Patricio D. Tongoy and Luis D. Tongoy, have themselves died.It is claimed that Patricio D. Tongoy left three acknowledged natural children named Fernando, Estrella and Salvacion, all surnamed Tongoy. On the other hand, there is no question that Luis D. Tongoy left behind a son, Francisco A. T ongoy, and a surviving spouse, Ma. Rosario Araneta Vda. de Tongoy. On October 15, 1968 finding the existence of an implied trust in favor of plaintiffs, but at the same time holding their action for reconveyance barred by prescription, except in the case of Amado P. Tongoy, Ricardo P.Tongoy, Cresenciano P. Tongoy, and Norberto P. Tongoy, who were adjudged entitled to reconveyance of their corresponding shares in the property left by their father Francisco Tongoy having been excluded therefrom in the partition had during their minority, and not having otherwise signed any deed of transfer over such shares. Issue: Whether or not the conveyance respecting the questioned lots made in favor of Luis D. Tongoy in 1934 and 1935 were conceived pursuant to a trust agreement among the parties Held:The Court considers the evidence of execution of express trust agreement insufficient. Express trust agreement was never mentioned in the plaintiffs pleadings nor its existence asserted during the pr e-trial hearings. The Court finds that there is preponderance of evidence in support of the existence of constructive, implied or tacit trust. The hacienda could have been leased to third persons and the rentals would have been sufficient to liquidate the outstanding obligation in favor of the Philippine National Bank.But the co-owners agreed to give the administration of the property to Atty. Luis D. Tongoy, so that the latter can continue giving support to the Tongoy-Sonora family and at the same time, pay the amortization in favor of the Philippine National Bank, in the same manner that Jose Tongoy did. When the mortgages were constituted, respondents Cresenciano Tongoy and Norberto Tongoy were still minors, while respondent Amado Tongoy became of age on August 19, 1931, and Ricardo Tongoy attained majority age on August 12, 1935.Still, considering that such transfer of the properties in the name of Luis D. Tongoy was made in pursuance of the master plan to save them from foreclo sure, the said respondents were precluded from doing anything to assert their rights. It was only upon failure of the herein petitioner, as administrator and/or successor-in-interest of Luis D. Tongoy, to return the properties that the prescriptive period should begin to run.

Ethics in Organizations Term Paper Example | Topics and Well Written Essays - 2500 words

Ethics in Organizations - Term Paper Example Further the high dependence on ethical business behaviour also helps in enhancing the social image of the concern in the external environment. Introduction to the company General Electric (GE) is an established company in the field of services, technology and manufacturing. The company operates in more than 100 countries and has 313,000 employees worldwide. The company owes its origin to the inventions of Thomas A. Edison. Edison established Edison Electric Light Company in the year 1878. It was in the year 1892 that a merger between Edison General Electric Company and Thomson – Houston Electric Company lead way to the birth of General Electric Company. GE has the record of being the only company that is listed in Dow Jones Industrial Index today that was also listed in the original index. GE holds the rank of the 5th largest U.S based company in the fortune 500. The main head quarters of the company is in Connecticut, U.S. the main division of work in GE are, GE Aircraft Engi nes, GE Appliances, GE Industrial Products and Systems, National Broadcasting Company, Inc., General Electric Capital, GE plastics, GE medical Systems, GE power systems, GE technical products and services. GE since its inception has undertaken the strategy of diversification and expansion in a global scale. The company has been successful in establishing itself in various industrial market and countries (General Electric, 2000, p.1). Corporate Vision/Mission The mission statement of GE represents the goals set for all their business units. The mission statement of GE represents the values that are centered on their key believes, Imagine, Build, Solve and lead. These four expressive verbs are chosen by the company to symbolize the stand of GE as a singular entity. For almost more than 125 years GE has been regarded as a company that believes in imagining and brings the imagination into life. GE believes in the power of imagination. The imagination of human brain if focused on the rig ht issues can build up solutions for several problems. The stress given by the management on building solutions for various problems, gives GE the edge and the strength to lead. Corporate Objective/ strategy The main strategy applied by GE in establishing itself as a global player is the two basic strategies: the strategy of diversification and the strategy of global scale operations. GE from the era of its inception has been open to all kind of business markets. The company which owes its origin mostly to electric engineering today has several operations that vary in nature from services to manufacturing. The company has been very adaptive during their growth and has added many operations including Medical equipments and home appliances to enter new market. The company has also applied aggressive strategies to enter the global market. GE has several dealers and showrooms in most countries. The trained sales force of GE give the company an easy entrance in many countries. GE has als o applied the strategy of resourcing their raw materials or parts from suppliers in countries from low wage countries. This Step taken by GE though

Art anaylsis Essay Example | Topics and Well Written Essays - 1000 words

Art anaylsis - Essay Example On research, it is evident that the STEN in STEN MK. V submachine gun is an acronym from the names of the chief designers of the weapon namely Shepherd, Turpin and Enfield. The submachine was produced in several basic marks i.e. mark I, mark II mark III and the initials MK were used for the term mark. The drawing is small, measuring 44 by 33 inches, yet immensely powerful. Though its dimensions may be small, the art work is immensely powerful. In simple terms, the smaller the submachine, the higher is its efficiency and effectiveness. The fire arm is small and yet it is extremely powerful. The STEN was used exceptionally extensively throughout World War II and in the Korean War by the British and commonwealth forces. This background information makes the inscriptions â€Å"God Bless America† on the drawings stock very full of meaning, hence extremely powerful. The aspect of its sight of the submachine on the globe is additive in a symbolic way. The artist used an acrylic, a pl astic polymer pigment which is used with water and dries extremely quickly, on a canvas ground. The canvas has the ability to reflect light. The use of acrylic on canvas gives the drawing exceptionally impressive and distinctive detail and a rich visual sensation. The artist also blends closely related colors in, but the blue color comes out as giving the globe a feeling of calmness. The message seems to be that a STEN Submachine can restore calm in the globe. The artwork has the flag of the United States of America embedded on it and these may be used to mean that the machine is heavily used in America to shed blood, and it is only through the blessing of God that the country will be saved. On the background, closely related colors are also blended making the submachine appear as if it is placed on the entrance of a cave. It also appears that there is light radiating from the background. This gives the submachine a highly symbolic meaning; one feels that the artist meant a gun is a protective instrument. The light that radiates from the back is a symbol of hope, that if a person has a gun they can have hope they are or will be safe. The dominant message that comes out in this work is the correlation between a gun and safety. To enhance the subject matter, a map of the world has been painted and then gun pointed at it, and it is specifically pointed at the United States of America. This is to show that the machine has been used globally and more so in the United States of America. In the map of the world, the United States is painted as one which is torn apart and full of blood. This is to show that regardless of its small size, the machine is able to shed blood in a whole country. During World War II, Britain and the commonwealth countries relied on the United States for supply of guns as it had entered the war without an adequate submachine gun of its own. So, Britain and the commonwealth countries purchased large numbers of Thompson submachine guns from the United States. American factories at the time were operating at peacetime levels, and as such were not able to meet demand for the weapon by Britain. The British army was then defeated at the continent and the Dunkirk Evacuation because of shortage of weapons with which to defend Britain. Thus, a drastic action had to be taken as there were no sufficient numbers of Thompsons submachine guns available. Thus, a shortage in supply led to the invention of the STEN gun so the machine was hastily created. Its