The Advantage of Mixed Economy

A mixed economy lies between the opposite poles of a free-market economy and a centrally planned, or socialist, system. A mixed system combines capitalist and socialist elements, and is sometimes referred to as a â€Å"third way.† Most nations, including the United States, operate mixed economies with varying combinations of capitalist and socialist features. Mixed systems offer a variety of benefits, including free enterprise and private ownership, as well as a social safety net and the capacity for government intervention when needed. Free Enterprise †¢ Free enterprise and private ownership–two essential characteristics of a free-market economy–remain part of a mixed economic system. Under such a system, individuals are free to own property and operate for-profit businesses. The specific level and extent of free enterprise varies across countries. Some nations, such as the United States, emphasize free enterprise and private ownership of industry, while other countries' systems involve state ownership of some industries, such as transportation, energy and utilities. In addition, privately owned industries may be subject to a variety of government regulations. Social Safety Net †¢ One of the primary benefits of a mixed economy is the existence of a government-funded social safety net, which exists to provide at least a minimal level of subsistence for citizens. Sometimes referred to as a â€Å"welfare state,† the benefits under this safety net include, but are not limited to, a publicly funded healthcare system for all citizens or at least some segments of the population, minimum wage laws, unemployment insurance and a publicly funded pension system. A pure market system with private ownership of industry and only minimal state intervention in the economy would, in theory at least, leave such social benefits to private charities. The United States' mixed economic system includes the Social Security system, a federal minimum wage law and healthcare benefits for the elderly under Medicare. Other nations, such as Canada, have universal healthcare systems. Ability to Intervene †¢ The mixed economic system is based on the idea that government can improve economic outcomes through fiscal or monetary policy action. A mixed system gives government the flexibility to intervene in the economy in times of emergency. The best example of this was in 2008, when a global financial crisis threatened to plunge the economy into a global depression. The United States and other nations moved to stabilize their financial systems. The U.S. government, for its part, provided more than $700 billion in â€Å"bailout† funds to enable the nation's banks to clear toxic assets, backed by troubled mortgages, from their books.

Diy Market in China

| Sector-Specific Considerations for EU Businesses considering entering the DIY Market in China. | | | | As Deng Xiaoping once said â€Å"Cross the river by feeling the stones†. This saying is very relevant for the DIY market in China because you are threading down a road into the very unknown.In 2004 the Chinese DIY and home improvement market reached an all-time high of RMB 195 Billion and has been depleting ever since. DIY stores are constantly losing popularity within the market . The market demand currently is for â€Å"soft decoration†, with the rural family’s moving to the fast growing cities to attain employment, there is a demand for moveable decoration in case they have to re-locate again.The younger generation are also leading the market for multifunctional, low cost furniture, such as DIY kitchens and bathrooms; this is due to the culture of the Chinese families with the kitchen and bathroom being the most personal area in their homes. (Allience, 2007 ) A major competitor and threat to the DIY businesses already established in China are the growing number of smaller contractors, as their knowledge of DIY is improving with the market trends.A high percentage of new homes being bought are being left unfinished and require a major investment in home improvement, this is where they just decide to hire a smaller contractor to do the time consuming work instead of doing it themselves thus the companies are losing out on the profit, but with China’s property prices rising it is entirely possible that the Chinese consumer will simply be pushed in the direction of DIY as a cheaper option. But what will happen when Chinas sees a fall in construction and property? Will the DIY companies suffer? This can be construed as a major economic threat to new European companies entering into China. Allience, 2007) Who are the major competitors? There is not one but many already established competitors within the Chinese DIY market. B&Q is the major contender with it being the largest Western DIY retailer in the country. B&Q opened its first store in China in 1999 and has continued to establish strong brand awareness. As The Guardian reported, the local culture did not fit with the DIY practices that B&Q already had and therefore B&Q had to adapt their once very successful European format to a Chinese one, hence making it a CIY (create it yourself) strategy. Tran, 2007) Another competitor for an EU DIY business to go up against is a well-established Chinese DIY company called Orient Homes. Orient Homes was founded in 1999 in Beijing. It receives its stock from local manufacturers consequently lowering the cost of the goods for consumer, thus making it a very large threat not just economically but because it is so well established within its home market.It has come to my attention in according to the China National Interior Decoration Association there is an estimate of more than 40,000 registered companies engaged in home improvement in China alone. (Unknown, 2009) The market is so densely populated that an EU company trying to enter the market is going to have some major struggle. Joint Venture or Wholly Foreign Owned Enterprise (WFOE)? Many companies entering china have to ask themselves this very difficult question, it’s a difficult decision to make as there are many advantages and disadvantages to both.Entering into a WFOE I believe is a lot harder than a Joint Venture, because with no Chinese partner they are left to approach their chosen market alone. It’s also difficult for the company to â€Å"create a market for their chosen products, especially when there’re already local competitors. Sometimes even with a local sales and marketing team it can take years to have a name on the Chinese Market† (Bergonovo, 2011) . The culture of the market can be very diverse and for a WFOE it can be difficult to understand alone.There are advantages as well as disadvantages, †Å"unlike in JVs where there're different views because the different partners and the negotiations and compromises are the only key to keep the business alive. Especially for small-medium business it is much better to have a WFOE, in order to avoid getting stuck in cultural differences with a local partner. So if you're a small business maybe with sole ownership in your mother company that has a clear strategy for the Chinese market and can afford long term investment WFOE is the right choice. † (Bergonovo, 2011) Joint Ventures an be very successful in some instances, because you will have the advantage of having a culturally and linguistically adapt partner, but â€Å"it’s crucial for foreign investors to understand the purposes of the joint venture and weather their Chinese Partner is capable of fulfilling them. The popular Chinese idiom â€Å"same bed, different dreams† has become the failed joint ventures mantra† (Ireland, 2012) Trust is the major issu e in this venture. My considerations for a DIY company would be a Joint Venture because the company will have a stronger understanding of the market and I believe this is crucial for a successful move to the Chinese market.Are there barriers for new entrants? â€Å"The key difference between domestic marketing and marketing on an international scale is the multi-dimensionality and complexity of the many foreign country markets a company may operate in. An international manager needs a knowledge and awareness of these complexities and their implications they have for† (Doole & Lowe, 2001, p. 9)the company and the market they are entering. I will use the SLEPT (Social, Legal, Economical, Political and Technological) method to determine the various trends and environment for a European DIY company attempting to enter the Chinese DIY market.Social, Cultural problems and differences can really take a toll on a new immature company entering a country where religion and material cul ture play a major role. The language would have the most significant role and impact to play on the way the products and services many be seen to the new consumers. Coca Cola had huge problems when they first entered the Chinese Market, their brand name translated to â€Å"kooke koula† which in turn translated to â€Å"A thirsty mouthful of candle wax†. Now with their new translation it means â€Å"joyful tastes and happiness†, mistakes must be made by one major company for another to learn from their mistakes. Over the next 20 years more people will migrate to China's cities for higher-paying jobs. These working consumers, once the country's poorest, will steadily climb the income ladder, creating a new and massive middle class. † (Farrell, Ulrich A. , & Stephenson, 2006) This society has struggled to come to terms with the phrase â€Å"do it yourself† because they are not educated in the home renovation area. It also seems to be giving off the per ception that you are peasant like if you do it yourself. It’s all about social status right now n China, if you are seen doing manual labour that you can subsequently hire someone to do then you are seen as a scrooge. â€Å"In recent years China has become the world’s number one country in terms of attracting foreign investments. As the second-fastest growing economy of the world it attracted USD 74. 6 billion of foreign direct investment in 2007. With a current position as the world’s fourth-largest economy (in nominal GDP), and an average annual growth of more than 8% for the last 30 years, only very few other countries in the world can match the business opportunities present in China today. (Unknown, General Considerations before Entering the Chinese Market) In order for an EU DIY company to succeed in the market they need to be aware of what direction the specific market they want to enter is developing economically in order to make a well-rounded assessme nt on whether it would be financially viable to enter and compete with firms already established in the market such as B&Q and Home Depot. (Doole & Lowe, 2001) The company may also face some long term challenges with the rapid development it could put a strain on resources such as the infrastructure and the migration rates within the country.There are also some very appealing political reforms that have taken place in China that any international company would be pleased about. The reform and opening up policy has been a major boost to the Chinese economy and political system. These reforms policies were put in place between 1979 and 1984 and it was aimed at improving Chinese relations with neighbouring countries. Despite the success of this open door policy many companies have been faced with difficult obstacles in relation to ownership rights and intellectual property.It was released this year that the CCP would decrease taxes for foreign companies entering China by 50% as they be lieved it would attracted more foreign investment in China. (Davies, 2012) â€Å"â€Å"The bigger picture is that because of the economic situation globally over the past couple of years, China sees the need to create a friendlier environment for foreign investors,† said Khoon Ming Ho of KPMG China. † (Davies, 2012) This is a major opportunity for EU based companies to enter the market at reduced tax rates. â€Å"Legal systems vary both in content and interpretation.A company is not just bound by the laws of its home country but also by those of its host country† (Doole & Lowe, 2001) In the west business is based on careful negotiation in contracts and agreements, they may be enforced by a court of law, however in China business is based on personal relationships, they call Guanxi in China. Two companies have to have guanxi before they can cooperate together, the specifics of a contract me be discussed after they have agreed in principle and this could cause has sle for a European DIY company who base their laws on the west.Technology is currently playing a major role in Chinese society and â€Å"is a major driving force both in international marketing and the move towards the global marketplace† (Doole & Lowe, 2001) China has the largest mobile phone and internet users with 420 million people using such services daily (Ireland, 2012), leaving the market place wide open for a new EU company to market their products via smartphones and internet. However there are some censorship issues in China at the moment, it is implemented by the Communist Party of China and goes for the whole mainland.Censorship is put into place to uphold and preserve the law of the Communist Party of China; it helps to stop unapproved  reformist,  separatist, â€Å"counter-revolutionary†, or religious ideas. It also stops the citizens of China educating themselves on the past, present and future let-downs of the Party. Marketing Mix Product With many new foreign products entering the Chinese market the consumers are becoming overwhelmed by the abundance and are relying on the image that the company has made in its producing country. â€Å"Each region in China has differences in economic growth, living standards and education.For foreign products, there are sharp differences between rural and urban attitudes. Typical Chinese consumers do not want to be amongst the first to try a new product. They are reluctant to be pioneers, especially for an expensive, unrecognised (in terms of brand), foreign product. † (Doole & Lowe, 2001) My considerations for an EU DIY company would be not to take your company’s products for granted, just because they have been very successful in the West does not mean they will be equally successful in the East.They must think of China as they would think of Europe, with its many different regions and its many different cultures it must adapt to what are culturally acceptable. They are entir ely interested in products that are going to suit their needs, as I spoke of before, when new apartments are bought they are just a shell and need a lot of investment and renovation, if a company could access the Chinese people’s needs in this regard they might have a large opportunity. Price â€Å"The  pricing  of  a  product  or  service  is  not  an  easy  decision  for  any  company.There  are  many issues  that  must  be  taken  into  consideration,  especially  when  a  multinational  company  is entering  a  new  international  market  such  as  China. † (Waller, 2012) The price must cover the manufacturing and distribution costs and in turn must not be too low as the company could sustain long term losses. There are many approaches that a company can take to decide on what marketing strategy to consider. For example; â€Å"Skimming: This is where the product is introduced in the market at a high price, and then lowered over time. (Waller, 2012) Apple Inc. is a company that is partial to this method as they believe that people are willing to pay extra to have the newest technology on the market. â€Å"Prestige: A company will use prestige, or premium pricing as a strategy where companies with luxury products or exclusive brand image/reputation will price the product at the high end of the price range. Customers knowing that they are buying high quality will expect to pay the higher price. † (Waller, 2012) Companies that use this such method are Louis Vuitton and Rolex.My sector specific considerations for an EU DIY company’s pricing strategy is to introduce new products at a lower price to suit the Chinese market, leaving them with a competitive advantage over the companies that are already established. Place â€Å"Rapidly improving infrastructure, high-tech facilities and an increasingly well trained workforce mean there is greater choice than ever befor e for investors seeking to expand, set up new regional headquarters or relocate key functions to new locations within China. (KPMG, 2012) The future of the company’s success can rely on the choice of location that you choose. â€Å"There is a growing number of young professionals with significant disposable income on the major coastal cities who aspire to higher standards of living and increased wages and thus are more likely to spend credit for mid to high range consumer products† (Ireland, 2012) With profit and manufacturing opportunities in major coastal cities this could lead to the start of a very successful DIY company.Promotion Marketing plays a significant part in any company’s success of their brands especially in the Chinese market. They must establish their target market for example what Tier/Class, Age, and Income the company will market to and then once they have found their target market they must evaluate their market potential. A successful marke ting campaign will recognise the various needs and wants of their target market; in China for example it varies from region to age to culture values.As I previously mentioned China's internet usage is the highest in the world, by advertising online you could reach and provide a huge segment of your target market with the brand information they need. Finally, based on my above predictions and opinions I have produced this SWOT analysis for a DIY company entering into the Chinese market. Strengths: * well established EU presence * Large Population and consumer base * wide variety of DIY products * High quality services * Cheaper than competitorsWeakness * Must incorporate Chinese culture * Less advertising and brand awareness than competitors * Little brand loyalty in China * Lack of innovation in product development for China * Lack of market information Opportunities * Property growth * Unfurnished houses * Income levels rapidly increasing * Wide internet usage * New middle class im pressionable/available * Cheaper manufacturing costs. Threats * Already some well established companies * Local cultures and values are unknown

Computerized grading system Essay

Information technology (IT) is the application of computers and telecommunications equipment to store, retrieve, transmit and manipulate data, often in the context of a business or other enterprise.The term is commonly used as a synonym for computers and computer networks, but it also encompasses other information distribution technologies such as television and telephones. Several industries are associated with information technology, including computer hardware, software, electronics, semiconductors,internet, telecom equipment, e-commerce and computer services. Technology (from Greek Ï„Î ­Ãâ€¡ÃŽ ½ÃŽ ·, techne, â€Å"art, skill, cunning of hand†; and -ÃŽ »ÃŽ ¿ÃŽ ³ÃŽ ¯ÃŽ ±, -logia) refer to the collection of tools, including machinery, modifications, arrangements and procedures used by humans. Engineering is the discipline that seeks to study and design new technologies. Technologies significantly affect human as well as other animal species’ ability to control and adapt to their natural environments. The term can either be applied generally or to specific areas: examples include construction technology, medical technology and information technology. The human species’ use of technology began with the conversion of natural resources into simple tools. The prehistoric discovery of how to control fire increased the available sources of food and the invention of the wheel helped humans in traveling in and controlling their environment. Recent technological developments, including the printing press, the telephone, and the Internet, have lessened physical barriers to communication and allowed humans to interact freely on a global scale. However, not all technology has been used for peaceful purposes; the development of weapons of ever-increasing destructive power has progressed throughout history, from clubs to nuclear weapons. Technology has affected society and its surroundings in a number of ways. In many societies, technology has helped develop more advanced economies (including today’s global economy) and has allowed the rise of a leisure class. Many technological processes produce unwanted by-products, known as pollution, and deplete natural resources, to the detriment of Earth’s environment. Various implementation s of technology influence the values of a society and  new technology often raises new ethical questions. Examples include the rise of the notion of efficiency in terms of human productivity, a term originally applied only to machines, and the challenge of traditional norms. Today, people are relying more on technology. Technology refers to all the rays people use their creation and discoveries to assure their needs and desires; therefore technology includes the use of both primitive and highly advanced tools and method. The inventions and the development of new technology, people are using the most important and most interesting machine that man has developed the computer. Researchers also have a responsibility to reflect on how their work and the knowledge they are generating might be used in the broader society. Researchers assume different roles in public discussions of the potential uses of new knowledge. They often provide expert opinion or advice to government agencies, educational institutions, private companies, or other organizations. They can contribute to broad-based assessme nts of the benefits or risks of new knowledge and new technologies. They frequently educate students, policymakers, or members of the public about scientific or policy issues. They can lobby their elected representatives or participate in political rallies or protests. In some of these capacities, researchers serve as experts, and their input deserves special consideration in the policy-making process. In other capacities, they are acting as citizens with a standing equal to that of others in the public arena. Researchers have a professional obligation to perform research and present the results of that research as objectively and as accurately as possible. When they become advocates on an issue, they may be perceived by their colleagues and by members of the public as biased. But researchers also have the right to express their convictions and work for social change, and these activities need not undercut a rigorous commitment to objectivity in research. The values on which science is based—including honesty, fairness, collegiality, and openness—serve as guides to action in everyday life as well as in research. These values have helped produce a scientific enterprise of unparalleled usefulness, productivity, and creativity. So long as these values are honored, science—and the society it serves—will prosper. The Banjo Laurel National High School is a public school in Banjo West, Tanauan City, Batangas. This school Banjo Laurel National High School  was establish on June 2 1975. The mission of the school is committed to mold and spiritual values, upgrade their academic performance and provide pathways to success through the concerted efforts of the teachers, parents and other stakeholders education. The vision of the school is by 2015, DepEd is globally recognized for good governance and for developing functionally literate and God-loving Filipinos. Mrs. Elsa V. Lladoc she’s the first teacher in BLNHS and now she is the Teacher in Charge in this school. The school maintains a small staff of teachers and personnel as compared to its growing population. There are teacher handling as much as four different subject a side from being a class adviser and area coordinator. Majority of the teachers handle three different year level. Significant of the study The researchers believe that developing the Computerized Grading System can make the grade easier and faster to compute. Specially, the proposed system will be beneficial to the following: Banjo Laurel National High School With the help of this system, the school will improve when it comes in computing the grade. The Banjo Laurel National High School will be the one of the school used the Computerized Grading System. The Teachers With the help of this system the teachers will not used the manual system. They will used our proposed system. And with he help of that they would be easier and faster when it comes in computing the grade of the students. The Students Developing a computerized grading system for BLNHS would make the task of recording and computing grades easier for the teachers. This will not only benefit to the teachers of the school but will also to the students because of he improvement in the accuracy of calculations and in the proficiency and productivity. To Future researchers The study is deemed used to future researchers as it will provide information for further research regarding the topic. Statement of a Problem The study of aimed to provide a computerized grading system to Banjo Laurel National High School. Upon the investigation of the researchers, they found out the following problems: 1. The existing process of computing the grades is manual and its more risky than a computerized system. 2. The manual records are often misplaced. 3. It is time consuming to calculate grades of a students manually. Objectives of the Study Specifically the study rough to meet the following objectives: 1. To create a system that automatically calculates the grades of the students. 2. To develop the computing grading function such as record keeping. 3. To establish accuracy and convenience in the computing grading process. Scope and Limitation The scope of our study is for the grading system of the said school.

The Future of Healthcare Delivery in The United States Essay - 1

The Future of Healthcare Delivery in The United States - Essay Example For now healthcare expenses in the United States are too high, they are higher than in any other developed state. â€Å"NO ONE will be astonished to hear that health care costs more in Indiana than in India. However, a few might be surprised to learn that Americans spend more than twice as much per person on health care as Swedes do† (Heading for the emergency room). Thus, universal healthcare system can be considered as the way to regulate and control the healthcare costs. Due to the reason that medicine in the United States is too expensive, people have to change insurance plans frequently and finally turn to Medicare. Moreover, the United States is the state, where insurance companies are for profit units and they do their best to get profit. Consequently, the percent of claims they deny is high. Difficult structure of medical care system in the United States also contributes to its high cost. Notwithstanding that Obama’s Affordable Care Act is highly criticized, it represents the step towards the establishment of Universal healthcare. It provided us with the necessary regulation of healthcare system insurance. First, more people are able to have the plan of their parents as the insurance plan. Insurance companies can’t deny children’s applications any more as well as they can’t refuse to cover costs in case if there are some discrepancies found in the application (Starr, 1982). Some service provided by Medicare now became free of charge. Thus, Affordable Care Act is very helpful for Americans, it‘s only drawback was too fast implementation that led to problems, which made many experts dissatisfied with it. Really, such measures need more time to be implemented and the mistake made by the President was his desire to implement all the changes at once. â€Å"The Affordable Care Act is a monumental accomplishment. Thanks to its expansion of health care coverage and new regulations, tens of millions of Americans will feel more secure,

Recycling Essay Example | Topics and Well Written Essays - 500 words

Recycling - Essay Example From this study it is clear that recycling will help us to reduce the consumption of fresh raw materials. For example, plastic materials are major villains in destroying our universe. The increased use of plastic materials in our daily life resulted in plastic wastes accumulating in large quantities everywhere. One of the peculiar properties of plastic materials is the fact that these materials will never undergo biodegradation. If we are able recycle plastic materials properly, it is possible for us to use the finished plastic products again and again and thereby we can reduce the consumption of fresh raw materials. In short, recycling help us to ensure the supply of the same material again and again.This paper highlights that in the waste management systems, recycling comes as the third R out of the three R’s; Reduce, Reuse and Recycle. Wastes are accumulating from all corners. Waste accumulation is going to be the most serious problem; we are going to face in future. Waste management is taken as a serious topic by the modern organizations because of the above awareness. Recycling has an important role to play in the waste management process. Global warming and climate changes are some of the major problems which are haunting the human kind at present. Many people are of the view that these problems were the creations of human itself. We exploited the natural resources injudiciously in the past and never thought that we are creating problems for us in future.  

How the Sarbanes-Oxley Act has made an impact on business Essay

How the Sarbanes-Oxley Act has made an impact on business - Essay Example r example, the Canada’s long standing principles-based stock exchange was replaced with a hybrid rules and principles based corporate governance regime that was modeled in SOX and administered by security regulators (Sibold, 2009). Largely, as Sibold elaborates, the act aims to harmonize the global fiscal management polices by shifting these from the pervious rules based to principles based management, where a global platform on financial management can be achieved. The act largely bases on management through virtues and morals as compared to through rules. However, Sibold (2009) argues that there are possibilities of more executives and editors using the trust and moral trust enhanced by this act to act unethically as compared other previous management through rules. Family owned enterprises according to Sibold portray better performance of family influence that focuses the investments of the firm, and this lessens the moral hazards due to the minority equity claimants and in creasing form values. Therefore, as a profession in financial management or any other related field, the act requires that moral standing, virtues and business ethics have to be more pronounced in an individual to avoid conflict of interest in the workplace, where one is tempted to behave unethically. As a professional in financial management, it would be necessary to integrate both the rule based and principles based approach in financial management to ensure a wider approach to management problems in finances and reduce possible cases of unethical behaviors in managing

Management Essay Example | Topics and Well Written Essays - 1500 words

Management - Essay Example These factors can be both a threat and opportunity for the company. It is a threat because they are beyond control of the company, that the acronym PEST becomes an appropriate term. It becomes an opportunity when the company takes advantage of the environment and it becomes a rearranged word as STEP towards strategies in entering the market. Any company wishing to enter new market should study the macro-environment factors surrounding the country. First consideration is the political analysis that consists of: political stability, legal framework for contract enforcement, trade regulations and tariffs, favored trading partners, anti-trust laws, pricing regulations, taxations – tax rates and incentives, wage legislations, mandatory employee benefits, industry safety regulations and product labeling requirements. The political analysis done for Sainsbury showed following results: Trade restrictions. It will not be difficult for Sainsbury to establish commercial business relation s with Qatar because of its existing friendly relationship with U.K. It has an existing Free Trade Agreement that provides benefits to both contracting parties (Pratap, 2011). One of the Qatar’s policies that makes setting up of large industries possible here are the regional integration, trade liberalization and expansion of market volume, thus encouraging mass production and economies of scale. Tax policy. Benefits owing to tax incentives include the following: No income tax or social security deductions payable on wages and salaries. No taxation is payable on exports and customs duties start at 5% Foreign investors are permitted full repatriation of capital and profits overseas in foreign currency. Corporate tax on foreign companies is 10% Source: KMD Consulting Legal. According to SMD (2008), the Foreign Investment Law No. 13 of 2000 offers foreign ownership up to 100% foreign ownership in sectors of agriculture, manufacturing, health, education and tourism. In Feb. 1, 20 10, this law has been amended and now includes 100 percent ownership in businesses such as consultancy services, information technology (IT), services related to sports, culture and entertainment as well as distribution services. Minimum capitalization required for a Qatar company is 200,000 QR and contracts entered into by Sainsbury in Qatar are covered by the Qatari Civil Code. Sainsbury can be exempted from the Qatari Law that stipulates a total local equity of 51% in any commercial company because it falls into the category of distribution service engaged in the retail distribution network and this exemption is available upon request (SMD, 2008) Legal. Environment regulations. The current environmental issue that would most likely affect Sainsbury’s entrance to Qatar is its limited natural fresh water resources and its increasing dependence on large-scale desalination process. Political stability. The peace and quiet of a country is vital in determining investment. Qatar, according to Business Monitor International will most likely to remain politically stable as analysts see no threat to al-Thani’s family rule (Business Monitor, 2009) Next, we go to the economic factor. Included in this analysis are: the type of economic system in countries of operation, government intervention in the free market, comparative advantage of host country, infrastructure