Why does the market for black rhinos create incentives that are different than other markets? How can these incentives be changed?
The market for black rhinos creates incentives that are different than other markets because of the extremely low supply for a very high demand. Black rhinos are an endangered species and keep getting killed because their horns are a sign of good luck and healing. This is different than other markets because these rhinos cannot simply be mass produced or go to a factory to be duplicated. They are animals in the wild and there are very few left. Once they are all gone, they are gone and there is no way to get more of these horns. The incentives are very high to get these rhino horns because people are willing to pay a high amount for them.
The incentives could be changed by allowing a rhino rancher to collect of of these animals that he can get in order to preserve them. Once the number count is up, there will be more horns to sell and therefore, the animal will not go extinct, and more people will be able to get a horn.
Tuesday, September 11, 2012
Thursday, September 6, 2012
Power of Markets - 9/6/12
Blog Entry: 9/6/12
Discuss three significant ideas or arguments that Welan is making about markets. Be specific and provide examples.
Whelan's first argument starts off by saying that by expanding global economics and boosting profits, businesses will be made and shareholders will be happy with the results. An example of this would be when Coca-Cola gave out free Coke products in Germany to expand themselves on a global level. Once Germany was back on their feet, Coca-Cola began selling their drinks in this country which boosted their products as they were selling more than they were before. Shareholders were obviously happy because the profits were greater and ultimately, Coca Cola's business became more successful.
Secondly, the market economy deserve the credit for advances because there are no central authorities telling people where to put their money or what to do with it. In stores in America, managers have the ability to purchase what they wish and price it any way that would like to compete with competitors. They are able to purchase any amount of food, magazines, toys, or soaps to meet the supply and demand. In other countries, the government tells stores the exact amount of each item that they are allowed to have on their shelves and the price that they are allowed to sell it for.
Third, global economics is important in order to expand the companies audience and buyers in order to make more money and be successful.
Discuss three significant ideas or arguments that Welan is making about markets. Be specific and provide examples.
Whelan's first argument starts off by saying that by expanding global economics and boosting profits, businesses will be made and shareholders will be happy with the results. An example of this would be when Coca-Cola gave out free Coke products in Germany to expand themselves on a global level. Once Germany was back on their feet, Coca-Cola began selling their drinks in this country which boosted their products as they were selling more than they were before. Shareholders were obviously happy because the profits were greater and ultimately, Coca Cola's business became more successful.
Secondly, the market economy deserve the credit for advances because there are no central authorities telling people where to put their money or what to do with it. In stores in America, managers have the ability to purchase what they wish and price it any way that would like to compete with competitors. They are able to purchase any amount of food, magazines, toys, or soaps to meet the supply and demand. In other countries, the government tells stores the exact amount of each item that they are allowed to have on their shelves and the price that they are allowed to sell it for.
Third, global economics is important in order to expand the companies audience and buyers in order to make more money and be successful.
Subscribe to:
Posts (Atom)