Advantages of Trade Liberalisation

• Comparative advantage. Trade liberalisation allows countries to specialise in producing the goods and services where they have a comparative advantage (produce at lowest opportunity cost). This enables a net gain in economic welfare.
• Lower prices. The removal of tariff barriers can lead to lower prices for consumers. E.g. removing food tariffs in West would help reduce the global price of agricultural commodities. This would be particularly a benefit for countries who are importers of food.
• Increased competition. Trade liberalisation means firms will face greater competition from abroad. This should act as a spur to increase efficiency and cut costs, or it may act as an incentive for an economy to shift resources into new industries where they can maintain a competitive advantage. For example, trade liberalisation has been a factor in encouraging the UK to concentrate less on manufacturing and more on the service sector.
• Economies of scale. Trade liberalisation enables greater specialisation. Economies concentrate on producing particular goods. This can enable big efficiency savings from economies of scale.
• Inward investment. If a country liberalises its trade, it will make the country more attractive for inward investment. For example, former Soviet countries who liberalise trade will attract foreign multinationals who can produce and sell closer to these new emerging markets. Inward investment leads to capital inflows but also helps the economy through diffusion of more technology, management techniques and knowledge.

Efficient administration establishes coordination between different departments, which leads to unification of effort and harmony in work. It governs the working of the various departments by defining activities and their authority relationships in the organizational structure. It helps in Achieving Group Goals - It arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards achievement of pre-determined goals. Organizational structure provides guidance to all employees by laying out the official reporting relationships that govern the workflow of the company. A formal outline of a company's structure makes it easier to add new positions in the company, as well, providing a flexible and ready means for growth.

acceptance of the truth or existence of something

In a primary market, securities are created for the first time for investors to purchase. New securities are issued in this market through a stock exchange, enabling the government as well as companies to raise capital. For a transaction taking place in this market, there are three entities involved.

Main features of the primary market (type of Capital Market) are as follow:

• (1) It is related with New Issues:
• (2) It has No Particular Place:
• (3) It has Various Methods of Floating Capital:
• (i) Public Issue:
• (ii) Offer for Sale:
• (iii) Private Placement:
• (iv) Right Issue:
• (v) Electronic Initial Public Issue (e-IPOs):

Operations management is the administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization. For example, if an organization makes furniture, some of the operations management decisions involve the following: purchasing wood and fabric, hiring and training workers, ... purchase cutting tools and other fabrication equipment.

The definition of business environment means all of the internal and external factors that affect how the company functions including employees, customers, management, supply and demand and business regulations. An example of a part of a business environment is how well customers' expectations are met.  The external business environment consists of economic, political and legal, demographic, social, competitive, global, and technological sectors.

5 Major Components of Business Environment | Business Studies

• (i) Economical Environment: ...
• (ii) Social Environment: ...
• (iii) Political Environment: ...
• (iv) Legal Environment: ...
• (v) Technological Environment:

The philosophy of scientific management is based upon the following principles:

1. Science, not Rule of Thumb: This principle of scientific management discards the old approach of rule of thumb. According to Taylor, each job should be performed in an organisation as per the scientific approach, as there is always one best method to maximise efficiency.
   This method can be developed through study and analysis. It involves the following steps:
   (i) Investigation of traditional methods {it) Unifying the best practices.
   (ii) Developing a standard method.
   Selecting ‘one best method’ for activities can result in saving time, effort, money and resources.
2. Harmony, not Discord: According to this principle, Taylor emphasised that there should be complete harmony between the management and workers and there should be transformation in thinking of both parties, called mental revolution.
   It implies that management should share the gains with workers and workers should work hard for the betterment of the business.
   It also emphasises that prosperity of the employer cannot exist for long if it is not accompained by the prosperity of its employees, and vice versa, e.g. Japanese work culture, where the workers wear a black badge if they go on strikes and works more than normal working hours to gain the sympathy of the management.
3. Cooperation, not Individualism : This principle is an extension of principle of harmony, not discord. According to this principle, ‘Competition should be replaced by cooperation. Management and workers both should realise that they need each other’. For this, management should entertain and reward the constructive suggestions of employees and follow paternalistic style of management. At the same time, workers should also cooperate with management, desist from going on strikes and ‘ making unreasonable demands to the management. According to Taylor, there must be an equal division of work and responsibility between workers and management.
4. Development of Each and Every Person to his/her Greatest Efficiency : According to this principle, ‘Each person should be scientifically selected and then assigned work as per their specialisation and in any case, if training is required, then impart training to them as efficient employees would produce more, and earn more’. Worker training is essential to learn the ‘best method’ developed as per the scientific approach. This would ensure greatest efficiency for both, workers and the organisation.

Based upon the above definitions, the following are the main characteristics of scientific management:

• (1) Systematic Approach:
• (2) Brings Complete Mental Change:
• (3) Discards Traditional Management:
• (4) Requires Strict Observance of Rules:
• (5) Improves the Efficiency of Workers:

 The principles of management provide the managers with useful insights into real life situations. The principles add manager’s knowledge, ability and understanding of managerial situations and circumstances which helps them to solve problems quickly and increase managerial efficiency.

Meaning: The basic principle of delegation of authority is the principle of ‘Absoluteness of responsibility’ (here by responsibility we mean Responsibility to/Ultimate Responsibility/ Accountability). As per this principle, authority can be delegated but accountability is absolute and cannot be delegated. The person who delegates authority remains accountable to his own boss for the work performance of his subordinates.

Example: A Chief Manager assigns jobs to a Departmental Manager who in turn assigns it to his subordinate. Departmental manager along with assigning the job, will also delegate authority but this will not terminate his accountability. He will always be answerable to his boss for the work-performance of his subordinates. On the basis of this, there would be no anomaly to say that just authority can be delegated but not accountability. Thus, accountability is always of the person who delegates authority.

Advantages of Globalisation
(i) Globalisation has resulted in greater competition among producers-both local and foreign. This has improved the quality of products and lowered the prices.
(ii) A wider variety of goods are available in the market for consumers.

Disadvantages of Globalisation
(i) For a large number of small producers, globalisation has posed major problems. These producers were not able to free the competition from large foreign producers and hence several of such production units had to shut down, rendering workers jobless.
(ii) Workers in MNCs are employed on temporary basis . and laid off without any compensation during the slack period.

Unity of command provides that an employee is responsible to only one supervisor, who in turn is responsible to only one supervisor, and so on up the organizational hierarchy. This is true even if the top of the organization is led by a group of people. Under the principles of war, unity of command means that all the forces fall under one responsible commander. ... It requires a single commander with the requisite authority to direct all forces in pursuit of a unified purpose. Simply put, it means one mission, one boss.

Middle level