1.
Choose
one of the unprecedented stresses on the earth resources and describe how it
will negatively affect the quality of life of people living in developing
countries and people living in modernized countries.
One of the major stresses on the earth’s resources will be the
demographic explosion. By the year 2020 the earth’s population is expected to
increase to about 8 billion. With this increase of population an increase in
consumption of resources is expected (an increase in urbanization, food,
energy, infectious diseases, loss of forests, fisheries depletion, biodiversity
losses, maritime pollution, water scarcity, aging population, migration, and
poverty). In developing countries increasing fuel-wood collection under
pressure from rural population growth has contributed to the near-irreversible
disappearance of forest cover with negative consequences, including flooding in
low-lying areas, as well as an advance in the desert of 10 kilometers a year. More
modernized countries will face the issue of aging population, which in-turn
will put more pressure on government budgets such as pension payments in
relation to the tax base. Also a larger emphasis will be put on labor force
participation, which will more than likely take inbound migration to stave off
economic decline so new immigration policies will have to be made (Rischard, 2002) .
2.
What is
the major debate around the future of market-based economies?
The only real debate around the future of
market-based economies is how to balance the basic market-oriented approach
with regulatory feature or social safety policy. Despite a majority of
societies harboring somewhat ambiguous feelings about the world of corporations
and profit seeking, no one is contemplating a wholesale return to central
planning or state enterprises. Whether we like it or not, the economic
revolution is here to stay (Rischard, 2002) .
3.
How is
this technological revolution different than the previous technological
revolutions and what two factors of production are now more important than
capital, labor, and raw materials?
Earlier technological revolutions had to do
with transforming energy or transforming materials.
This one has to do with the transformation of time and distance. It has made
knowledge and creativity the number one factor of production-far more important
than capital, labor, and raw materials.
4.
What new
service ideas have you had direct experience with? Drawing on your personal
experience what are the benefits and drawbacks of these new service ideas?
Over the years I’ve had the privilege and non-privilege
of working in retail and one thing I have noticed is the collaboration between
service and product. Now if you buy a product many times more often than not a
service of some type is included in your purchase (more so with major purchases).
Bundling services with customer purchase has become the norm. Now if you buy a television
or computer and installation or delivery is usually offered, not to mention
coverage on the particular item. Services have become what set businesses apart
from their competitors. I went along as a helping hand on deliveries and
installations, as well as assisted in in-store services such as installing
screen protectors on cell phones and computers, and all of these have been
included or bundled with the particular purchase. The benefit is to the customer
of course to have an expert help with the security of their purchase, but the
drawback is not everyone is interested in buying the service provided. The majority
of profit now doesn’t rely solely upon inventory purchases but on credit card
application exclusively to the store and services themselves. If no one buys
services, solutions, or credit cards employees are affected whether they perform
the service or not, layoffs will incur, downsizing, and a cut of hours is imminent.
I have seen this play out many many times.
Rischard, J. (2002). High Noon. New York: Basic
Books.
Quote:
“Products are becoming more like services.”
Response:
I’ve worked in retail for
about five years and with each year I have noticed outlets adapting to the
method proclaimed in the above quote. With major purchases now a service comes
with it. I currently work at Best Buy and there they offer deliveries, in home
installations, and Geek Squad Black Tie Protection, as well as benefits of services
that come exclusively with the purchase of the Best Buy Credit Card. With each
purchase bundled with it is a service of some type, for televisions in-home
installations on wall mounts, appliances at home deliveries, mobile phones,
Ipods, Ipads there is in store invisishield installations, just to name a few
examples. And this method of business is spreading to other retail outlets as
well.
Reference:
Above is the link to a Best
Buy Home Theatre advertisement. I felt it only appropriate considering the combining
of product purchase with service.
Rischard, J. (2002). High Noon. New York: Basic
Books.
Outstanding connections to your personal experiences!
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