Short Run and Long Run Strategies in Business Essay

Short Run and Long Run Strategies in Business - Essay Example The short run is a period usually in which factors of capital other than labor are all fixed and cannot be changed, the short run for the shipping industry may be 3 years and the short run for a smaller business like handicrafts may be 6 months but generally the short run is considered to be one year. The ultimate goal for any company other than not for profit is to earn a considerable profit for its stakeholders but at times market conditions are such that this objective has to be kept behind and other strategies have to be pursued in order to meet the long-term objective of making a profit for all the people who are concerned with the business. Some of these environmental situations are explained below. At times in the face of strong competition that might threaten the business in the long run and the short run as well businesses tend to forget the objective of making a profit until they drive the competition out of the market, there are several strategies that a business could use for this. One of the most popular strategy that businesses use to drive out competition from the market is dumping, since the company which is just entering the market have higher production costs because of lower efficiency due to a variety of reasons such as not knowing the best suppliers and not having a reputation and a rapport would mean that costs for the company automatically are higher than a company which is already existent in the market. Hence established firms take advantage of this and start selling their products at well below their marginal costs, the new entrant into the market can ill afford that and is forced to move out of the market. When a firm deploys this strategy to drive competit ion out of the market, is it earning a profit on the products that it is selling? No, it is not, in fact, it is selling at a price lower than what it cost to produce one extra unit.

Is the U.S. government doing enough to make the american worker Essay

Is the U.S. government doing enough to make the american worker competitive - Essay Example The question is if America is doing enough to make its workers competitive? This literature will explore the capability of the human capital of the United States and to ascertain if governments have provided measures to make its labor capital competitive with the global market. It will also delve if it’s necessary to impose more tariffs to goods that cannot be competitively made in America. US Economy President Barack Obama assumed his political seat vowing economic reform and redistribution of wealth. Officials and constituents rigorously discussed the imperative of budget cuts, refocused on social services and in raising capital for investment to generate employment opportunities and for economic bilateral relations with emerging markets. This strategy was essential as home needed to be cared by administrators too after suffering debilitating economic setbacks due to offshore conflict situations and anti-terror drive (Nixon, 2011). True enough, taxation was levied for those within the affluent class of American society, e.g. luxury tax for jet and boat owners and financial analysts restudied how income taxes could add more for national revenue. Obama thereafter made a pronouncement to unleash American business ingenuity and improve its productivity to maximize the American economic dynamism by extolling 70 trade agreements sealed for 12 US states. ... The trade deal hopes to provide manufacturing job opportunities to 235,000 American citizens for agriculture development, gasification, railway construction and production of hybrid buses. Obama also opened business deals in South Korea that will help auger 70,000 American jobs and of the removal of 95% tariffs between this nations, albeit opposition of AFL-CIO, a labor federation, arguing that free trade and removal of tariffs is unprotective of US workers. This measure to improve US macro-economic relations was a positive response after an economic recession that has affected major industries of the country which cost the loss of $13 trillion in 2007 and loss of 208,000 jobs in the trucking industry (US Department of Labor, 2010). Both small and big firms were hit with similar net job losses (US Department of Labor, 2010). In another development, last February 2011, the US government closed doors for H-1B work visas, a 3-year employer sponsored visa for highly skilled foreign worke r, following Immigration Services announcement that statutory cap of 85,000. While the agency protects the interest of the country from being burdened of increasing populace of immigrants, this was however criticized by some economist as a policy which discouraged entry of foreign investors e.g. Microsoft opted to avail European market because it can allow to hiring of highly skilled employees from foreign countries (Nowrasteh, 2011). Nowrasteh (2011) proposed government to review and reconsider this opportunity since companies like Intel, Sanmina-SCI, Sun Microsystems, eBay, Yahoo and Google with high-skilled foreign workers made America a leader in