Exploratory essay ideas
Wednesday, August 26, 2020
Explosion In The British Petroleum Texas City Refinery Commerce Essay
Blast In The British Petroleum Texas City Refinery Commerce Essay The blast and flames occurrence in the British Petroleum Texas City treatment facility on 23 March, 2005 has been portrayed and audited in this task. Examination report uncovered that the occurrence happened during the startup of an isomerization (ISOM) process unit. It was accounted for that this episode brought about colossal effect on BP Company and its partners. The effect of the episode has been fundamentally recognized with the help of a few information. Fatalities and wounds on close by trailers, on location and offsite harm, post-episode crisis reaction, and monetary misfortunes were the significant outcomes of the blast. Reasons for the episode have been likewise analyzed so as to improve BP execution. Authoritative and process wellbeing lacking was the significant fault for the occurrence. Suggestions which may improve BP circumstance and help to maintain a strategic distance from perilous occurrence have been given all through the task. The enhancement for process security culture, hierarchical changes, for example, merger and procurement, spending cutting and workers preparing at all levels, just as the authorization of progressively compelling wellbeing the executives frameworks have been recommended to improve BP execution. Ultimately, a protected trailer arrangement strategy has been proposed to stay away from the danger of comparative occurrence. English Petroleum Company and Texas City Refinery Background The British Petroleum (BP) processing plant in Texas City, Texas is the third biggest petroleum treatment facility plant in the U.S. On Wednesday, 23 March 2005 at 1:20p.m, a blast and flames occurred at the BP treatment facility in Texas City, Texas, 30 miles southeast of Houston. The BP treatment facility in Texas City has the incredible effect on the general fuel gracefully in the U.S. This petroleum processing plant has the capacity to create around 10 million gallons of fuel for every day. This measure of creation makes up about 2.5% of the fuel sold in the U.S. Aside from creating gas, this BP processing plant likewise delivers diesel energizes, stream fills, and concoction feed stocks. There are 29 petroleum treatment facility units and 4 compound units spread its 1,200 section of land plant. In BP processing plant in Texas City, BP utilizes around 1,800 representatives. While the blast and terminates happened, around 800 temporary worker laborers were nearby conveying turnaro und exercises. The site has had a few changes in the executives at both the corporate and treatment facility stages from its charging to the date of the blast occurrence (Kaszniak Holmstrom, 2008; U.S Chemical Safety and Hazard Investigation Board (CSB), 2005). Occurrence Description On 23 March, 2005, blast and flames in BP Texas City treatment facility happened during the startup of an isomerization (ISOM) process unit (Figure 1). On that morning, the raffinate splitter pinnacle in the refinerys ISOM unit was restarted after it had been closed down for support. During the startup of an area of the ISOM unit, combustible fluid hydrocarbons were siphoned into a refining tower for over 3 hours with no fluid being expelled by activities specialist. This activity was contradicting to startup system guidelines. The bogus sign gave by control instrumentation and basic cautions neglected to alarm the administrator laborers of the significant level in the pinnacle. Subsequently, unidentified by the tasks specialist, the refining tower was stuffed and combustible fluid hydrocarbons flooded into the overhead channel at the highest point of the pinnacle (Kaszniak Holmstrom, 2008; U.S CSB, 2005). As the overhead channel loaded up with fluid hydrocarbons, the weight at the base rose quickly and brought about the three crisis alleviation valves which used to shield the pinnacle from high weight opened for six minutes. A huge amount of fluid hydrocarbons at that point spilled out of the release of wellbeing help valves to a blowdown drum with a vent stack open to the environment. The blowdown drum and stack expediently stuffed with combustible fluid hydrocarbons, which brought about spring like discharge out the 113-foot tall stacks (Figure 2) (Kaszniak Holmstrom, 2008; U.S CSB, 2005). As indicated by CSB last report (2005), this blowdown framework was a dangerous and obsolete structure. As the fluid hydrocarbons tumbled to the ground, a portion of the unstable fluid vanished to frame a combustible fume cloud. The blast and flames happened when the combustible fume cloud was lighted undoubtedly by a sitting diesel truck situated roughly 25 feet from the blowdown drum. The fume c loud showed up at a wide region which is obvious by the consumed territory as appeared in Figure 3 (U.S CSB, 2005). Figure 1. Raffinate segment of isomerization ISOM process unit (U.S CSB, 2005) Figure 2. Raffinate splitter pinnacle overloads and blowdown drum discharges combustible fluid hydrocarbons to the environment (U.S CSB, 2005) Figure 3. A post-blast photograph shows the consumed territory in and around the ISOM unit had the most serious fire harm while the red bolt focuses to the highest point of the blowdown stack (U.S CSB, 2005). Reasons for Incident There are a few key discoveries as the reasons for this occurrence happened in BP Texas City treatment facility after an examination was led by BPs examination group which facilitated with CSB, the U.S Environmental Protection Agency (EPA), Occupational Safety and Health Administration (OSHA), and the Texas Commission of Environmental Quality (TCEQ). The reasons for the episodes are summed up as underneath, The BP directorate didn't propose viable wellbeing society and significant mishap anticipation programs. There were no part responsible for estimating and confirming the presentation of BPs significant mishap peril preventive projects (U.S CSB, 2005). Hazard visual impairment (The Economists, 2006). For example, BP didn't take successful activities to end the developing danger of a cataclysmic occasion albeit a few fatalities happened in BP Texas City processing plant before this episode (U.S CSB, 2005). BP was an excessive amount of concentrated on the low close to home injury rate at Texas City while the procedure wellbeing the board and security culture had serious deficiency (U.S CSB, 2005) Insufficient in BPs mechanical trustworthiness program. This prompted the disappointment of the procedure unit in BP Texas City processing plant (U.S CSB, 2005). Exuberant cost-cutting systems (Economist, 2006; Marketline, 2007a; U.S CSB, 2005). As per CSB last report (2005), BP Group official directors had costs cuts in the 6 years bringing about the Texas City calamity without estimating their effect on wellbeing of the site (Economist, 2007; Process Engineering, 2007). The blowdown drum and the help valve removal funneling were modest and the alleviation valve framework security study was 13 years past due (Process Engineering, 2007; US CSB, 2005). ISOM administrators had been overstretched (Economist, 2007; US CSB, 2005). Lacking in BPs administrator preparing program (US. CSB, 2005). Effect of Incident on BP Company and its Stakeholders Blast and flames in BP Texas City processing plant brought about a few negative impacts on BP Company and its partners. Those impacts incorporate setbacks and wounds, office and hardware harm, offsite harm, post-episode crisis reaction and monetary misfortunes (US CSB, 2005). Partners of BP who had been influenced by this occurrence were as underneath, BP Company and its workers Workers of contracting firms which incorporate Jacobs Engineering Group (J.E. Legitimacy), Fluor Corp. also, General Electric Co. Groups of dead casualties and harmed laborers in this occurrence Texas people group Texas City BP investors The U.S residents who utilize unrefined petroleum Losses and wounds In the occurrence, it was accounted for that 15 agreement workers of J.E. Legitimacy, Fluor Corp. also, General Electric Co. were executed and an aggregate of 180 workers in the processing plant were harmed (U.S CSB, 2005). Examination report uncovered that those 15 losses were because of the blasts sway on the close by impermanent office trailers where representatives were having gatherings. Of the 15 setbacks, 11 of them were representatives of Jacobs, Pasadena, Calif, which was temporary worker in BPs Texas City treatment facility. The 11 dead Jacobs laborers incorporate a few directors, chairmen and 4 female art laborers. 3 of the casualties were representatives of Fluor, Aliso Viejo, Calif, was contractual worker given support the board administrations at the plant since 2001. The rest of the temporary worker casualty was representative of General Electric Co. while no BP worker was murdered in the occurrence. Obtuse power injury, which in all probability coming about because of being hit by basic parts of the trailers was the reason for the each of the 15 losses. During the occurrence, there were roughly 2,200 agreement representatives and 1,100 BP workers working at the processing plant. Table 1 shows the subtleties of the 15 dead contractual worker representatives (Powers Rubin, 2005; US CSB, 2005). Organization Name Age Position J.E Merit Glenn V. Bolton 50 Organizer scheduler J.E Merit Lorena Lori G. Cruz 32 Instrument fitter-assistant J.E Merit Morris R. Lord 57 Development supervisor J.E Merit Arthur G. Ramos 59 Quality control specialist J.E Merit Ryan Rodriquez 28 Specialty administrator J.E Merit James W. Rowe 48 Common director J.E Merit Linda M. Rowe 47 Apparatus room right hand J.E Merit Kimberly A. Smith 43 Field manager J.E Merit Susan D. Taylor 33 Channel fitter partner J.E Merit Larry S. Thomas 63 Undertaking administrator J.E Merit Eugene White 53 Wellbeing director Fluor Corp. Rafael Herrera 27 Quality control assessor Fluor Corp. Daniel Hogan 58 Quality control assessor Fluor Corp. Jimmy Hunnings 58 Quality control assessor General Electric Co. Larry Linsenbardt 58 Title not uncovered Table 1. Contractual worker representatives who kicked the bucket in the episode (Powers Rubin, 2005) Moreover, 180 workers at the plant were harmed, 66 of the casualties had genuine wounds and the vast majority of them were endured different wounds. It was accounted for that cuts, breaks, hyper-extends, strains, punctures and second-and severe singeing were the run of the mill blend of in
Saturday, August 22, 2020
Carseat Safety Essay Example for Free
Carseat Safety Essay Each accomplishment in your childââ¬â¢s life is exciting! Initial steps, first words, and even the principal day of school (less the tears). Indeed, even vehicle seat achievements can appear to be energizing. Actually, they ought to be taken a gander at with a specific feeling of dread, not want. Each progression in a vehicle seat ââ¬Å"progressionâ⬠is really a stage down in your childââ¬â¢s wellbeing. Back confronting is a whole lot more secure than front aligned. There are numerous articles that talk about the reasons why your youngsters ought to stay back looking for the primary entire year and 20 pounds. A large number of these equivalent articles talk about that results of injury drop significantly after the primary year of life. Notwithstanding, it doesn't express that there are no outcomes. The outcomes may never again be passing from a totally cut off spinal string, yet just deep rooted injury, including total loss of motion. Research considers recommend that until youngsters are in any event four years old, they are powerless in withstanding crash powers just as grown-ups; from now on they ought to stay back confronting. In an accident, extreme or dangerous wounds are commonly constrained to the head and neck, on account of a kid being in a bridled seat. At the point when a kid is in a front aligned seat, there is an unbelievable measure of pressure put on the childââ¬â¢s neck, which must keep the enormous head down. A little childââ¬â¢s neck maintains extraordinary measures of power in an accident. The ties keep the body down while the head is tossed forward, which can break the spinal rope. Additionally, the childââ¬â¢s head is at a more serious hazard in a front aligned seat also. In an accident, the head is tossed outside the limits of the situate and can reach different travelers or interrupting objects. Back confronting seats make a phenomenal showing of ensuring youngsters just in light of the fact that there is almost no power applied to the head, neck, and spine. At the point when a youngster is in a back confronting seat, the head, neck and spine are totally kept completely adjusted and the kid is permitted to ride down the accident while the rear of the kid seat assimilates the greater part of the accident power. The childââ¬â¢s head is contained inside the seat, and the youngster is should more averse to come into contact with whatever may cause head injury.
Friday, August 21, 2020
Important Information about your Financial Aid Application
Important Information about your Financial Aid Application Hi all, Many of you have already filed your application for Financial Aid and thats great! Applications are handled through the Student Financial Services office (SFS). If you have questions, you should use this email: [emailprotected] or call 617-258-8600. Admissions officers wont be answering questions about financial aid on this post because well be in committee making decisions about Regular Action applicants and the comments will be closed. But we did want you to know a few things: You can now track the status of your financial aid application by logging in to MyMIT. Students who have completed their applications by February 15th will receive their financial aid awards shortly after Regular Action admission decisions are made in mid-March. You can still apply for aid after February 15th and it will not hurt your chances of receiving aid, but SFS cannot guarantee that they will have your award processed before May 1st. Applications are read in the order they are completed so the earlier your application is completed, the earlier you will have your financial aid award. If your family has special circumstances or unusual expenses, or you have other information that will help SFS understand your financial situation more completely, please send a letter detailing that information to: Massachusetts Institute of Technology Student Financial Services Room 11-120 77 Massachusetts Avenue Cambridge, MA 02139 Fax: 617-253-9859 Remember, January through April is peak financial aid application time so please be aware that it can take up to two weeks for the SFS office to receive and process your FAFSA or Profile applications. It can also take up to two weeks to process any documentation received by SFS. Please do not send documents multiple times! Heres a list of Financial Aid Deadlines Required Documents on our site that may be helpful.
Sunday, May 24, 2020
Determining Outliers in Statistics
Outliers are data values that differ greatly from the majority of a set of data. These values fall outside of an overall trend that is present in the data.Ã A careful examination of a set of data to look for outliers causes some difficulty. Although it is easy to see, possibly by use of a stemplot, that some values differ from the rest of the data, how much different does the value have to be to be considered an outlier?Ã We will look at a specific measurement that will give us an objective standard of what constitutes an outlier. Interquartile Range The interquartile range is what we can use to determine if an extreme value is indeed an outlier. The interquartile range is based upon part of the five-number summary of a data set, namely the first quartile and the third quartile. The calculation of the interquartile range involves a single arithmetic operation. All that we have to do to find the interquartile range is to subtract the first quartile from the third quartile. The resulting difference tells us how spread out the middle half of our data is. Determining Outliers Multiplying the interquartile range (IQR) by 1.5 will give us a way to determine whether a certain value is an outlier. If we subtract 1.5 x IQR from the first quartile, any data values that are less than this number are considered outliers. Similarly, if we add 1.5 x IQR to the third quartile, any data values that are greater than this number are considered outliers. Strong Outliers Some outliers show extreme deviation from the rest of a data set. In these cases we can take the steps from above, changing only the number that we multiply the IQR by, and define a certain type of outlier. If we subtract 3.0 x IQR from the first quartile, any point that is below this number is called a strong outlier. In the same way, the addition of 3.0 x IQR to the third quartile allows us to define strong outliers by looking at points which are greater than this number. Weak Outliers Besides strong outliers, there is another category for outliers. If a data value is an outlier, but not a strong outlier, then we say that the value is a weak outlier. We will look at these concepts by exploring a few examples. Example 1 First, suppose that we have the data set {1, 2, 2, 3, 3, 4, 5, 5, 9}. The number 9 certainly looks like it could be an outlier. It is much greater than any other value from the rest of the set. To objectively determine if 9 is an outlier, we use the above methods. The first quartile is 2 and the third quartile is 5, which means that the interquartile range is 3. We multiply the interquartile range by 1.5, obtaining 4.5, and then add this number to the third quartile. The result, 9.5, is greater than any of our data values. Therefore there are no outliers. Example 2 Now we look at the same data set as before, with the exception that the largest value is 10 rather than 9: {1, 2, 2, 3, 3, 4, 5, 5, 10}. The first quartile, third quartile, and interquartile range are identical to example 1. When we add 1.5 x IQR 4.5 to the third quartile, the sum is 9.5. Since 10 is greater than 9.5 it is considered an outlier. Is 10 a strong or weak outlier? For this, we need to look at 3 x IQR 9. When we add 9 to the third quartile, we end up with a sum of 14. Since 10 is not greater than 14, it is not a strong outlier. Thus we conclude that 10 is a weak outlier. Reasons for Identifying Outliers We always need to be on the lookout for outliers. Sometimes they are caused by an error. Other times outliers indicate the presence of a previously unknown phenomenon. Another reason that we need to be diligent about checking for outliers is because of all the descriptive statistics that are sensitive to outliers. The mean, standard deviation and correlation coefficient for paired data are just a few of these types of statistics.
Thursday, May 14, 2020
Wednesday, May 6, 2020
Effects Of Alcohol Abuse And Alcoholism - 1446 Words
When entering the field of social work, a person should understand the effects of alcohol, not only on an individual, but also the effects on the families. Alcohol is one of the many substances that people use and abuse. Since alcohol is legal for any one over the age of twenty-one, many people begin drinking and then develop an addiction to the substance (Goldberg, 2016). Alcoholism effects people of all ages, background, social status, or ethnic group (National Institute on Drug Abuse, 2016). A social worker should understand how to assess and intervene families who are struggling with alcohol addiction in a way that is both ethical and culturally competent (National Institute on Alcohol Abuse and Alcoholism, 2005). The main goal for a social worker is to promote well-being and help provide the basic needs of all people (National Association of Social Workers, 2008). To begin, a social worker must first assess the situation that is before them and collect as much information as pos sible. Several questions need to be asked to either the family or the person who has alcoholism. For example, on average, how many days a week does the person consume alcohol? On those days, how many alcoholic beverages are consumed? In the last thirty days how many times have you had more than four alcoholic beverages? These questions need to be asked first because a social worker needs to know how severe the problem is (National Institute on Alcohol Abuse and Alcoholism, 2005). In some casesShow MoreRelatedAlcoholism : A Growing Problem1468 Words à |à 6 PagesAlcoholism Alcoholism is a growing problem in today s society. What is alcoholism? Is it a disease? What are the causes of it? What toll does alcohol abuse have on individuals? American society? American economy? What kind of treatments are available to reduce/cure alcoholism? What is alcoholism? Alcoholism is a physical or psychological need for an alcoholic beverage, which is taken for non-medical reasons and produces a noticeable effect on the body (Sheen 93). People develop the need for alcoholRead MoreEffects of Alcoholism on the Human Health and Social Life837 Words à |à 3 PagesTitle Effects of alcoholism on the human health and social life General purpose/objective The speech is aimed at highlighting the negative effects that excessive intake of alcohol and habitual alcoholism can have on the social aspects of a person and the health repercussions of the aforementioned behavior. The content of the speech is largely informative and in very small part persuasive for people to reconsider their drinking habits. Specific purpose The specific objective of the speech isRead MoreAlcoholism Outline809 Words à |à 4 PagesTopic: ALCOHOLISM Objective: To be able to discuss about Alcoholism. Outline: I. à Classification and terminology of Alcoholism A. Etymology II. History of Alcohol III. Signs and symptoms B. à Symptoms of long term alcohol misuse 1. Physical symptoms 2. Psychiatric symptoms 3. à Social effects C. Alcohol withdrawal IV. Causes of Alcoholism D. Genetic variation V. Pathophysiology VI. Diagnosis of Alcoholism Read MoreCauses and Effects of Alcohol Abuse955 Words à |à 4 Pages Alcoholism is the excessive and usually uncontrollable use of alcoholic drinks. There are many symptoms, complications, treatments and ways of prevention for alcoholism. Certain groups of people may be at a greater risk than others for several different reasons. There are numerous factors in why people may become addicted. Usually, a variety of factors contribute to the development of alcoholism. Social factors such as the influence of peers, family, society, the availability of alcohol, mentalRead MoreAlcoholism : Alcoholism And Drug Dependence1054 Words à |à 5 PagesAlcoholism is a problem affecting millions of families around the world. Based on the National Council on Alcoholism and Drug Dependence Inc., Alcoholism is considered a family disease due to the amount of stress that family members go through (NCADD, 2016). Alcoholism is an addiction that requires treatment and support from family membe rs and friends. It is important, to understand the effects that alcoholism can bring to the alcoholic and to the family members. Some of these effects cause healthRead MoreThe Effects of Alcohol Abuse1472 Words à |à 6 Pagesdoing things they should not. Alcohol is one of those things. Alcohol is extremely easy to get ahold of. It can be attained from anywhere; there are bars and liquor stores on every corner. One can get alcohol in grocery stores, gas stations, people can even brew it themselves if they know how. Alcohol that is commonly abused comes in a large variety ranging from weaker alcohols like wine and beer to stronger substances like tequila and vodka. When one abuses alcohol it taints the minds of even theRead MoreAlcoholism should be banned772 Words à |à 4 PagesTASK 1 Topic: Alcohol consumption should be banned. Argue for or against the statement. Argument For Topic sentence: Alcohol consumption should be banned Supporting ideas: 1. Effects of alcohol abuse in your body 2. How does alcohol affect family lifeââ¬â¢s 3. The effects of drinking and driving Task 2 Rough draft In my personal opinion I am in favour of alcohol being banned. I am a victim of alcoholic parents , so I can relate to the difficulties that I was faced withRead MoreWhat are the Causes of Alcholism and How Can We Prevent It? Essay1083 Words à |à 5 PagesThroughout history alcohol has been a common drink in social and celebration environments. However in todayââ¬â¢s society it is easily accessible, very cheap, and advertised on every channel available. Alcohol has taken over our society, from teenagers to seniors, everyone is exposed to the culture of drinking. That is not the issue though, the issue is in todayââ¬â¢s society gluttony is a common virtue and many people take drinking beyond social and celebration environments. Many Americans suffer from aRead MoreAlcoholism and Alcohol Abuse1082 Words à |à 5 Pagesan addiction to alcohol. This drug can be a mild to chronic addiction and sometimes can turn out fatal for some people (Chakraburtty). Almost 100,000 people have died from overusing this drug (Chakraburtty). Alcoholism and alcohol abuse is not only damaging emotionally, physically, and mentally to the person who is doing it, but to the people around them as well. Both alcoholism and alcohol abuse are each categorized as different cases. Alcohol abuse is different from alcoholism because people whoRead MoreSoc 203 social problems1286 Words à |à 6 Pagesï » ¿ Alcoholism: A Social Problem I. Introduction Alcoholism is a major social problem that not only has an impact on the life of an alcoholic, but family members as well as society. Alcoholism is the third most common mental illness that affects more than 17 million people in the United States according to the National Institute of Alcohol Abuse. Alcoholism does not discriminate against age, race nor gender. II. Scope Alcoholism is defined as a disorder
Tuesday, May 5, 2020
Global Business Maintaining Sustainability
Question: Discuss about theGlobal Business for Maintaining Sustainability. Answer: Introduction: Globalization is a trend that is adopted by domestic companies for maintaining sustainability and expansion of business operations in foreign markets. The essay focuses on various drivers of globalization that will encourage local businesses of different countries to spread their reach in the global market. However, the adaptation of globalization is a challenging task for small, medium enterprises. Decisions regarding expansion are to be taken after conducting an extensive market research on different aspects of the target foreign market. Apart from that, two economic theories of absolute advantage and comparative advantage are explained in the perspective of companies expansion in international markets. The thesis statement of the essay is to describe globalization as a growth factor for domestic businesses in the light of comparative and absolute advantage theories. Both the topics of globalization and the economic theories are related with one another in the sphere of business ex pansion of domestic companies. With the increase of competition in the market, the economic outlook of different countries is blurring. It leads to a looming squeeze in the prospect of business in various sectors. Markets are becoming competitive with slowing growth, shortages of right talents and complexity in operational activities. Domestic companies of different countries are facing many challenges for sustaining in the competitive market. Globalization is the process where companies start operating their business operations on a global scale (Liang, Ren and Sun, 2015). There are different types of globalization such as economic, cultural, political, and environmental globalization. However, domestic companies operate in economic globalization usually to enter into a new market. The increase of competition in the market pushes companies for becoming global. Economic globalization trends are accounted in developed economies with the integration of lower developed economies (Vahlne and Ivarsson, 2014). It happen s to foreign direct investment and reduction in economic reforms, trade barriers, and immigration. The government of many countries provides scope to many companies for doing business in their countries. Glocalization is another concept related to globalization. Glocalization means adopting local flavors in the target market. Domestic companies conduct their business on the considerations of both local and global level. However, the adaptation of these two concepts will help national companies for achieving maximum profit and brand awareness in the market. For instance, McDonalds is an American fast food retail chain that operates in almost 119 countries around the world. The first store of the company was opened in the United States of America. Slowly, adopting various strategies of glocalization in international businesses, McDonalds has started operating on a global scale. In the first phase of its expansion, the company chooses globalization policies. However, soft drinks, fast food restaurants have permissions in operating their business in almost all countries (Zaman, Selim and Joarder, 2013). There are many organizations such as aircraft manufacturing companies do not have permissions to spread their business in particular countries. Alphapharm is an Australian based pharmaceutical company. The enterprise has its dominance in many parts of Australia. However, it is operating over 50 countries across the world. This company also adopted globalization for earning more revenue. A domestic company steps into international markets due to many reasons such as saturation of the national market, expansion of business, increase of brand awareness, etc. Alphapharm caters medicines to many countries based on the customer needs (Moir, 2015). Variations of marketing strategies are required to mitigate the needs of the clients in the target market. In economics, absolute advantage and comparative advantage are the theories that firms apply during the time of internalization. The two ideas are related to the concept of globalization. Adam Smith proposes absolute advantage theory in the perspective of international trade. The theory of absolute advantage suggests the capacity of a country or a firm to produce the maximum amount of product or service using the same amount of raw materials and resources (Levchenko and Zhang, 2016). The model considers labor as an input. Labour productiveness is determined by using simple comparisons in the theory of absolute advantage. Since the theory only considers labor productivity; a country can achieve zero absolute advantage while operating in a foreign market. According to Adam Smith, the wealth of a country depends on the amount of resources available in the country including the gold reserves of a country (McGrath, 2013). If a company is enjoying absolute advantage, then it will run in pr ofit in its international operations. On the other hand, if a company has zero absolute advantage, then the company is not able to make any trade with another party in the new target market. For instance, a company operating in England requires 50 hours of labor work to produce a single unit of cloth. However, in Portugal, another company requires 80 hours of work to manufacture the same amount of material. Then it can be said that the enterprise of England has a greater competitive advantage than the enterprise of Portugal. The comparative advantage of economics is a theory that refers to the productivity of a firm at a lower opportunity cost and lower marginal costs. Many factors influence comparative advantage of companies or countries such as technological aspect, political conditions, etc. David Ricardo proposes the theory of comparative advantage. According to David, comparative advantage is more helpful regarding international trade when compared to absolute advantage. Input cost is a vital aspect in manufacturing goods in the global market (Irwin, 2015). If the cost of production rises, then the company will not be able to generate a substantial amount of profit in the market. Companies must not compare the costs of resources and commercial production costs. Instead of it, businesses can compare opportunity costs among different countries. The concept of free trade is related to the theory of comparative advantage (Paliwoda and Thomas, 2013). Under the free trade, the company having a greater com petitive advantage can produce more amounts of products along with consuming lesser amount of products. The two theories of an economy are related to each other but have many differences. Comparative advantage Absolute Advantage Comparative advantage means a varied level of opportunity costs. Absolute advantage means differences in the level of productivity of firms or nations. Comparative advantage includes opportunity costs. Absolute advantage considers labor as an input. A company having greater absolute advantage may not have a greater comparative advantage (Buera and Kaboski, 2012). Firms or countries having more significant comparative advantage have the possibility of having the greater absolute advantage also. Comparative advantage is followed by most of the companies in the world while less number of businesses follows absolute advantage theory. In absolute advantage theory, mutual beneficial of trade is not a possibility whereas trade is mutually benefitted in the theory of comparative advantage (Huxham and Vangen, 2013). Comparative advantage consists of the production output of the same category of products between two countries. On the contrary, absolute advantage refers to more amount of goods using the same amount of resources and materials in an efficient way. Comparative advantages related with the overall techniques of manufacturing goods within a stipulated period (Cuat and Melitz, 2012). Absolute advantage is concerned with the production of multiple products or services. Opportunity cost is involved in the theory of comparative advantage. Labor cost intervenes in absolute advantage. Apart from having advantages, there are some limitations of these theories. Both the approaches are feasible for two countries, firms, and goods. The two theories are not possible for a large number of products and countries. When the economies of two countries are at same level, only when these principles can be implemented. The employment structure of a country may have a direct impact on determining absolute advantage of a state that is a restraint factor. In the sphere of comparative advantage, the opportunity cost is a common factor that varied at a different level (Kapoor and Adner, 2012). The cost of transport is the reason of outweighing any types of comparative advantage. Restrictions of government and regulations can restrict businesses and trade in an international scale. It can hinder the implementation of economic theories by firms or countries. Diseconomies of scale are the cause of increased specialization of products by countries or enterprises. Another limitation of comparative advantage is it does not measure dynamic advantage i.e. future scope of the country. It only measures static advantage of the firm. The essay describes various concepts of globalization and different economic theories of international trade. It also fosters the thesis statement that is mentioned above. Along with globalization, the idea of glocalization is also described. Specific examples are provided in the study that illustrates the domestic companies' reason for adoption of international strategies. Apart from that, advantages and disadvantages of both comparative and absolute advantage in the practical field are demonstrated by providing proper examples. Local companies on internalization choose different types of globalization approaches. Among the various methods, economic approach is the most suitable approach that considers many factors of globalization. Relation of the two theories of economics along with the limitations is explained in a detailed manner in the essay. National companies following the above three concepts of international trade certainly earn huge revenue in its business operations in th e target market. References Buera, F.J. and Kaboski, J., 2012. The rise of the service economy.The American Economic Review,102(6), pp.2540-2569. Cuat, A. and Melitz, M.J., 2012. Volatility, labor market flexibility, and the pattern of comparative advantage.Journal of the European Economic Association,10(2), pp.225-254. Huxham, C. and Vangen, S., 2013.Managing to collaborate: The theory and practice of collaborative advantage. Routledge. Irwin, D.A., 2015.Free trade under fire. Princeton University Press. Kapoor, R. and Adner, R., 2012. What firms make vs. what they know: how firms' production and knowledge boundaries affect competitive advantage in the face of technological change.Organization Science,23(5), pp.1227-1248. Levchenko, A.A. and Zhang, J., 2016. The evolution of comparative advantage: Measurement and welfare implications.Journal of Monetary Economics,78, pp.96-111. Liang, H., Ren, B. and Sun, S.L., 2015. An anatomy of state control in the globalization of state-owned enterprises.Journal of International Business Studies,46(2), pp.223-240. McGrath, R.G., 2013.The end of competitive advantage: How to keep your strategy moving as fast as your business. Harvard Business Review Press. Moir, H.V., 2015. The patent price of market access in the AUSFTA.Australian Journal of International Affairs,69(5), pp.559-576. Paliwoda, S. and Thomas, M., 2013.International marketing. Routledge. Vahlne, J.E. and Ivarsson, I., 2014. The globalization of Swedish MNEs: Empirical evidence and theoretical explanations.Journal of International Business Studies,45(3), pp.227-247. Zaman, S., Selim, N. and Joarder, T., 2013. McDonaldization without a McDonald's: Globalization and Food Culture As Social Determinants of Health in Urban Bangladesh.Food, Culture Society,16(4), pp.551-568.
Subscribe to:
Posts (Atom)