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exam 2 study guide

by: Shelly Notetaker

exam 2 study guide FIN 311

Shelly Notetaker
GPA 3.0
EC Found Competitive Analysis

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EC Found Competitive Analysis
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This 11 page Study Guide was uploaded by Shelly Notetaker on Monday February 16, 2015. The Study Guide belongs to FIN 311 at University of Alabama - Tuscaloosa taught by Ellis in Fall. Since its upload, it has received 438 views. For similar materials see EC Found Competitive Analysis in Finance at University of Alabama - Tuscaloosa.

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Date Created: 02/16/15
Great Britain s Government The Consensus Era pre Thatcher 0 After WWII collectivist consensus crystallized O Followed Keynesian economics I Keynesianism Named after British economist John Maynard Keynes I Interventionism state economic policies used to regulate economy to achieve stable economic growth I Because unpopular during 19705 with increased labor unrest 0 As an approach to economic and social policy in the UK Keynesianism is based on a commitment to maintain high levels of unemployment and steady rates of growth keep prices stable achieve a desirable balance of payments schedule and rates of exchange 0 Keynesian demand management an approach to economic policy in which state economic policies are used to regulate the economy to achieve stable economic growth 0 The winter of discontent destroyed this and collectivism led Thatcher into power 0 Many strikes in 7879 Margaret Thatcher and the Enterprise culture 197 91990 0 Believed that collectivism weakened the country and set out to break down unionism O Collectivism the consensus in British politics after WWII when most Britons and all major political parties agreed that governments should work to narrow the gap between rich and poor and provide for basic necessities through welfare state policies 0 Cut taxes reduced social services and used government policy to stimulate competitiveness and efficiency in the private sector 0 Committed the country to a firm neoliberal path 0 Neoliberalism aimed to promote free competition interfere with entrepreneurs and managers as little as possible and create a business friendly environment to attract foreign investment and spur innovation I A key feature of Tony Blair and Gordon Brown s new labour government 0 Authoritarian populism 0 Rejected Keynesianism for monetarism O Monetarism an approach to economic policy that assumes a natural rate of unemployment determined by the labor market and rejects the instrument of government spending to run budgetary deficits for stimulating the economy and creating jobs I Did not want widespread nationalization 0 State intervention should be limited to a few steps to foster appropriate growth of the monetary supply and keep in ation low O Radical change from collectivism 0 Anti EU Stance and high handed leadership style brought her down The ConservativeLiberal Coalition 0 The Big Society 0 argues for wide ranging initiatives to empower ordinary citizens to take control over their lives and shift the balance of power downward from the state to communities and individual citizens O citizens take more active roles in governments 0 Economic Policy Approach 0 Overarching commitment to deficit reduction I The necessary precondition for stabilizing the economy 0 Key cuts in government subsidies for public housing increases in the age for pensions reduction in child benefits for middle class families I General reduction of about 10 for social protection and 20 in public spending across the board Social Policy in the UK today 0 O ers fewer comprehensive services in comparison to its European neighbors 0 Chronic undersupply of child care 0 Coalition Government s Economic Policy Approach I Key cuts in spending I Government subsidies for public housing 0 Increased age for pensions 0 Reduction in child benefits for middle class persons I National Health Services 0 Provides comprehensive and universal health care I Low cost medical care to all British citizens as a matter of right The Constitution 0 Is not a single formal written document 0 Pros I Much easier to change I Stays modern not held back by antiquities and archaic laws I More socially mobile than the united states 0 Cons I Judiciary does not have as much power no standard to base their authority on I A combination of state law common law convention and authoritative interpretation Dates back to the seventeenth century I The prime minister and judiciary cannot overturn parliaments actions 0 Parliament supreme legislative executive and judiciary authority The Prime Minister 0 The leader of the party after a general election who controls a majority of seats in the house of commons The Cabinet 0 Members of the commons or the lords that practice collective decision making 0 Chosen by the prime minister The Labour Party Socialist 0 Trade unions make up a large part of this party The Liberal Democrats 0 Given the questions about representation and fairness that single member plurality rises the Liberal democrats in Britain have forced the coalition government to consider changing the electoral system to proportional representation The New Labour party under Brown and Blair Post thatcher more capitalist socialism 0 Brown used economic growth to increase spending instead of cutting taxes 0 Believed the government should improve the quality of labor through education and training maintaining labor exibility and attracting investment to Great Britain 0 Rejected both the cutbacks in social previsions of conservative governments and the egalitarian traditions of Britain s collectivist era that emphasized entitlements O Attempted to break welfare dependency Focus on traditional economics of tight finance lassiesfaire and free trade 0 Moderately successful in its approach 0 Reduced child poverty and helped narrow the gender gap I Did not do much to reduce the inequality faced by other minorities O Enviable record of growth low in ation low unemployment due to a sustained commitment to attract foreign investment Devolution 0 Uneven distribution of power between the UK s various regions 0 Scottish government has a lot of power 0 They almost seceded 0 Welsh government is asking for more power so they can rival the scots Parliamentary vs Presidential Democracy 0 Presidentialism 0 Us Latin America 0 Guiding principles I Separation of powers I Checks and balances O Distinctive features 39 Separate election of executive and legislative branches 0 Parliamentary democracy 0 Parliamentary sovereignty O Distinctive features I Executive and legislative branches fused together I Prime minister and cabinet selected by majority party not directly elected I No fixed term in office 0 Parliament can remove prime minister through a vote of no confidence at any time 0 Prime minister can dissolve parliament and call for new elections 0 To try to win a greater majority in parliament 0 Westminster model a form of democracy based on the supreme authority of parliament and the accountability of its elected representatives Constitutional Monarchy 0 In Great Britain the real power resides in the prime minister not the monarchy British Politics in Transition 0 British Politics terrorism and Britain s Relationship with the united states and the rest of the world 0 The term special relationship in Britain refers to the relationship between Great Britain and America 0 Immediate support after September 11 eroded I Bush because a liability because of unknown impact in foreign policy I Blair refused advice to make support of war conditional on achievement of ends Advantages of Presidentialism 0 Checks and balances to guard against abuses of power 0 Works in theory not always in practice 0 Electoral mandate for chief executive popular legitimacy O Dispersed power multiple veto points guard promote policy continuity 0 Less likely radical change or party uctuation 0 Crazy things do not occur no cultural revolution like Mao in China caused millions of deaths Disadvantages of Presidentialism 0 Political gridlock or stalemate due to executive legislative con ict especially where president does not have a partisan legislative majority 0 Policy inertia O Veto points block necessary reform and new policy initiatives 0 No mechanism to remove chief executive who has lost public confidence 0 There is only impeachment for specific offense major fuckups 0 Populist tendencies 0 Competition based on personality rather than programs 0 Leaders without party support who campaign as anti establishment outsiders Advantages and Disadvantages of Parliamentarism 0 Advantages O Governability executives usually have legislative majorities can pass laws and make policy I Political gridlock is less likely I Maj or reform is more likely I Fewer veto points where reform can be blocked I Change moves through the system faster 0 Often multiparty coalitions give different parties a stake in executive office I Give different parties a stake in executive office I Strong disciplined political parties 0 Competition based on party programs and platforms less on personality Greater accountability voters know who to blame or reward 0 Flexibility to remove chief executive and change the government at any time if they lose public confidence I If your policies suck you get blamed I When the president is in the party opposing congress the US system often gets bogged down and stalemated This is not the fault of the chief executive O O Disadvantages O Possibility of cabinet government instability when alliances break up or parliament loses confidence in prime minister I Frequent changes in government can be upsetting I Ie Italy 0 Too much discipline Parliament follows prime minister deputies almost always vote the party line 0 Deputies must answer to their party so ties to the local constituencies tend to be weaker Germany s Government German Lower House Bundestag I Constructive vote of no confidence 0 Germany is worried about minorities gaining power so they will not simply oust the government until there is a new government waiting to replace it I Makes it much more difficult to vote a government out 0 5 clause In order to obtain seats in the lower house a party must receive five percent of the popular vote 0 A lot of post world war 2 Germany is designed to prevent a recurrence of the rise of the third Reich 0 If there are too many parties it becomes hard to make stable coalitions Executive Branch 0 The executive is a duel mandate with most powers given to the chancellor and a mainly ceremonial position as president 0 Chancellor Prime Minister Angela Merkel 0 President Joachim Gauck O The Chancellor 0 Angela Merkel most in uential women Forbes O Elected by the majority of Bundestag l Essential to be a strong policy leader 0 Government formed after national election or constructive vote of no confidence 0 Cabinet formed by consultation with party and coalition officials O Considerable authority to govern 0 The President Government Institutions 0 The secret police in east Germany were known as the Stasi O Parliamentary democracy 0 Weak president strong chancellor prime minister I Elected by lower house the Bundestag 0 Fusion of powers 0 Executive dominates legislature The German Electoral System 0 A mixed member system means that citizens cast two ballots one for an individual and one for a party 0 Vote for a party and an individual 0 Germany is called a party democracy because of the important role political parties play in shaping state policy 0 Very strong sense of order amongst parties 0 Many more people contribute to parties in Germany than in the US or UK I Very important to national identity 0 Voter turnout in federal German elections averages between 80 and 90 German Political Parties 0 The Christian Democrats 0 A center right party that represents many catholic and protestant communities 0 However Germany is pretty secular l Church is for Sundays government and politics are less concerned about social issues 0 Combine the Christian Democratic Union and the Christian Social Democratic Union Bavaria 39 United Catholics and protestants after World War 2 O Procapitalistic and paternalistic party I This makes Angela Markel s leadership more impressive 0 Program stresses social market economy 0 Grand Coalition in 2005 basically divided the government 0 Until 1999 when the SPDGreen government liberalized citizenship requirements German citizenship was based on blood I At least one of your parents had to be an ethnic German citizen 0 The Social Democratic Party 0 Leading leftist party 0 Founded in 1875 0 Second largest postwar German party but only able to gain more than 30 of the vote after the 1960 s I Altered program in 1959 I Deemphasis on Marxism 0 Similar to other Western social democratic parties in Europe 0 Tumultuous history with coalitions 0 Currently on somewhat unsteady ground 0 The Greens 0 Antiparty party I Focused mostly on social and noneconomic quality of life issues I Created political con ict I Other parties include some of these issues in their platforms 0 Great emphasis on grass roots democracy I Grass roots democracy the idea that real democracy requires participation from rank and file members and not merely from organizational leaders 0 More power to the people 0 Heterogeneous party with support from different constituencies I Citizen action groups like Marxists Leninists antinuclear activists conservationists 0 The Left Party Die Linke 0 The Free Democratic Party Electoral Systems 0 Single Member Plurality systems 0 US Great Britain and its former colonies France 0 Only one representative elected to legislature from an electoral district 0 The seat is claimed by the candidate with the largest plurality vote I Majority not required 0 Proportional Representation 0 Most of Latin America and Western Europe 0 Multiple representatives elected from every district 0 Each party is awarded the number of seats from the district that is proportional to its vote share Implications of Electoral Systems I Number of parties higher in Proportional Representation 0 Single party vs coalition government PR 0 Voter turnout PR 0 Relations between elected representatives parties and constituencies PR amp party discipline less personalized vote Representation of women and minorities higher in PR Breadth of ideological spectrum ideological definition of parties higher in PR 0 Which electoral system would you prefer if you were 0 A minority proportional representation 0 A leader of a big party single member 0 A leader of a small third party proportional representation German Foreign Policy 0 An underlying frustration Europeans have with Germany is its tendency to export to its neighbors more than it imports from them 0 Other European Countries want to be competitive with the German economy I They ask Germans to increase the price of labor so they have more expensive goods that Europeans can compete with 39 Germany s highly skilled work force makes it so they do not need to slash wages to be competitive 0 Product quality over all 0 Germany tired of being an ATM for the rest of Europe 39 German banks bail everyone else out 0 Germany and the EU 0 One issue that challenge Germany s international position is whether German specific institutional arrangements will ourish I Ie worker and union participation in management tightly organized capitalism the elaborate system of apprenticeship training German Politics in Comparative Perspective 0 Remake of political culture and institutions after fascism O Respectable today even after WW1 and WWII both massive fuckups Historical development 0 Late political unity and industrialization 0 Successful transition to developed economy Organized capitalism O Blurred distinction between public and private sectors 0 Cooperative interaction with social and economic participants Tolerance and respect for civil rights and ethnic minorities 0 Strong feminist movement 0 Very changed after the racism of W11 0 Muslim and Turkish minorities still have some problems but most other minorities do not Potential role as international leader 0 They currently are an economic giant but not so much of a political one 0 Many Chancellors have hoped that an integrated Europe would solve these problems Modifications of Proportional Representation to Avoid Extreme Fragmentation 0 Electoral thresholds Germany etc require 5 of vote to obtain a seat 0 Combined electoral systems some seats selected by plurality vote others by proportional representation German Social Policy 0 The German economy before 1945 0 could best be characterized as a strong state controlled economy focused on heavy industry I major industries like coal iron and steel 0 Regional governments had a role in promoting economic growth and development before unification I Customs union Zollverein facilitated trade 0 Bismarck used railroad development to mediate the interests of Junkers and coal and steel barons O Unified Germany competing with industrialized capitalist countries I German state active in economy I Facilitated by coordination between government business banking O Reparation payments caused economic crisis of 1923 and produced hyperin ation I Third Reich worked with industry to repress workers use slave labor and produce military armaments Germany Before WWII 0 Before unification in 1871 many of Germany s regional governments played a strong role in promoting economic growth blurring the distinction between state and market 0 Later on people and the state realized that small firms would get crushed when trying to compete internationally 0 To compete the state became a major force in the economy I Explicit coordination amongst government big business and a powerful universal banking system that combined saVings and commercial activities Germany after WWII 0 State policy important but indirect 0 Voluntary associations and civic society play a large role in politics 0 Relies on a cooperative network of large and small businesses 0 Interplay extends to Germany s two main classes managers and employers 0 The Social Market Economy 0 a capitalist economy with generous social bene ts 0 A system that aims to combine the efficiency of market economies with concern for fairness for a broad range of citizens market and welfare 0 indirect and supportive 0 government set broad guidelines and encouraged voluntary associations to coordinate employers banks trade unions and regional governments 0 Market forces work unimpeded I Framework regulations system that regulates not the details but the general rules of the game under which all actors must play 0 Current strains on the social market economy I Rise of new competitors in Asian markets makes Germans need for high revenues to make a profit difficult I Attacked at the level of ideas 0 Free marked supporters accuse the social market economy of failing to provide sufficient employment 0 Democratic corporatism O The cooperative relationship between labor unions business associations and the state in the making of public policy 0 A bargaining system in which national and state governments delegate certain policymaking authority to private and semipublic institutions I Semipublic institutions 0 responsible for much national economic policy making I Most in uential include the central bank Bundesbank and boards of health insurance funds Krankenkassen 0 Health insurance funds brings all major health interests together to allocate costs and benefits through consultation and group participation 0 Organizations benefiting both business and labour are a necessity O Codetermination the legal right of representatives of employees to help determine the direction of the company in which they work I Often takes place through works councils 0 Works councils firm employees elected by their co workers to represent the workforce in negotiations with management at that specific shop or company 0 Address shop oor and firm level affairs I Aka social and personnel matters I Allows employees to participate directly in the workplace 0 The average skilled German worker receives six weeks of paid vacation per year 0 High wages and fringe benefits even though there is minimal state intervention and no imposed minimum wage European Party Systems Compared to the US 0 Multiparty systems 0 Broader ideological spectrum 0 Deeper roots in social cleavages especially class but also religion and ethnicity O Stronger more disciplined mass organizations greater capacity for mass mobilization ie voter turnout etc penetration and organization of civil society strong partisan subcultures 0 But the European party systems are changing toward what may be de alignment 0 Erosion of social cleavages like class and religion I Becoming less secularized and with less of a cultural identity 0 Weakening of mass party organizations rise of professionalelectoral parties cartel parties and mediabased campaigns 0 Declining party identification 0 Voting on the basis of contingent individual preferences rather than collective identities or group loyalties O Declining voter turnout 0 Greater electoral volatility New Political Actors 0 New Green Left Post materialist politics with emphasis on environmentalism egalitarianism grassroots participation and peace 0 Revival of far right nationalist parties generally adopting anti immigrant platforms Differences Between German and British Electoral Systems 0 Mixed Member Germany vs Single member plurality system 0 Both systems have parties but in the single member system you are voting for a candidate in a mixed member you have one vote for an individual candidate and one vote for a party I Political Impacts O In the single member system only major parties get representation


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