M Long - SOC 315 Week 4 Questions

M Long - SOC 315 Week 4 Questions - Maggie (Margaret) Long...

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Maggie (Margaret) Long Ragonesi SOC 315-41 June 25, 2010 Week 4 Questions 16. What are some advantages, and disadvantages for producers in NICs to out perform, and out produce factories in developed countries? Explain and give some examples. Newly Industrialized Countries are at an advantage to outperform and out-produce factories in developed countries. NICs often have the advantage of comparatively low labor costs which results in lower input prices for suppliers. Developed countries are also often disadvantaged by a higher cost of living and the fact that labor unions and other labor organizations have more political sway. As a result of NIC’s comparative advantage, many fair trade and protectionist advocates protest importing goods and outsourcing jobs to these nations (Newly Industrialized Country, 2010). 17. What prompted centrally planned to market-driven economies in the Soviet Union? Explain and give some examples. In 1991, the industrial production system in the Soviet Union suffered a political and economic collapse which prompted the transition from a centrally-planned economy to a market-driven economy. Prior to this transition, the USSR was the modern world’s first centrally-planned economy and the second largest economy in the world. However, as the Soviet economy became increasingly complex, it began stagnating under the weight of an increasing number of enterprises, trusts, ministries and the communication between them. The economy was increasingly slow in “to responding to change, adapting cost- saving technologies, and providing incentives at all levels to improve growth, productivity and efficiency.” Poor communication led to overproduction of some goods and underproduction of others. When the Soviet Union collapsed in 1991, the economic integration of the different Soviet republics was dissolved and industrial activity declined
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M Long - SOC 315 Week 4 Questions - Maggie (Margaret) Long...

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