A Short History and Summary of the Current Conditions in Chile and Its Geographical Situation Essay Example for Free

A Short History and Summary of the Current Conditions in Chile and Its Geographical Situation Essay Chile is a country situated on the west coast of South America. It is also known as The Republic of Chile. The size of Chile is 289,112 square miles with a width of less than 100 miles. It is basically a little larger than Texas. Chile is divided into three main parts, mainland and two territorial islands named Isla Sala y Gomez and Easter. Chile has an interesting history and it has seen many ups and downs in its economic development (Hudson, 1994). A description of the history of the 20th century of Chile and its current economic and political situation is presented below. The history of the 20th century of Chile is mainly focused on its entrance to the parliamentary system and thus it saw the changes in its political situation. In the beginning of the 20th century, Chile was stable despite of having lesser power in the hands of presidents. During this time, congress selected the president for the country. The presidents of this century mainly includes: German Riesco Errazuriz, Pedro Montt, Ramon Barros Luco, and Juan Luis Sanfuentes. During the 1920’s, there was an increasing gap between the middle class and lower class of society (Bizzarro, 1987). Due to this gap, the masses were dissatisfied and they called a new leader, Arturo Alessandri Palma, who brought the system of election for the selection of president. He brought other changes as well such as compulsory primary education and separation between the church and state. After a few months’ service of Alessandri, Carlos Ibanez came into power and promoted public works and industry; however, he is known as a military dictator. Electoral Democracy was there during the years of 1931 to 1971 in Chile. After a period of uncertainty in Chile, Alessandri came into power again. Alessandri ruled Chile almost like a dictator and restored the power of Constitution of 1925. Considering the presidency elections of 1958, it is found that there were three candidates and all were from different types of people. They were conservative, Christian Democrat, and Socialist (Zanartu, Kennedy, 1969). Jorge Alessandri Rodriguez won the election of 1858 and maintained a stable situation in Chile. Alessandri was sensible and with his ability to maintain the economic and political situation, he put a halt to the inflation in Chile; thus, contributed in the economic development of the nation. In 1964, Frei defeated Allende again. Frei was a Christian Democrat and took control over the copper industry of Chile. In the next elections, Allende came into power with his socialist view. Allende was the first elected Marxist in Chile. Allende brought new policies and changed the existing policies; such as, he finished the nationalization of the copper firms of the United States, nationalized banks, and sped up land distribution in the country. Some leaders in Chile were against the socialists programs of Allende. In 1973, with the help of the U.  S. , a military coup ousted Allende (after which he committed suicide). After Allende, Pinochet ruled untill 1990. He was mainly focused on privatization and returned the banks, factories and lands to the private owners, and put strict economic and social condition on the people of Chile (Weil, 1969). Overall, it can be said that Chile saw many different leaders in the history of the 20th century and developed in many directions. Current economic and political situation of Chile is described below in the paper. The Economic Situation During the 1970’s Chile saw the economic growth, but in the next decade it experienced recession. Pinochet was the president of Chile and he put some strict economic conditions on Chileans. Looking at the current economic condition of Chile, it can be said that it is a growing and prosperous economy. The government of Chile has a played an important role in the economic development of Chile. Peso is the official currency of the country. The government has intervened many times in the financial market of Chile to control the economic situation of the nation and promoted the social spending (Loveman, 1988). According to the current economic condition, the total GDP of Chile is U. S. $ 268. 3 billion and its GDP growth is 5%. Inflation in the country is 4 to 5% and its main industries include copper, iron, lithium, fish processing, foodstuffs, wood and woods products, cement, textile, etc. (Thomas White International, 2013). It is already discussed above that culture and history of Chile has affected the economic development of the country many times and its reflection can be seen in the economic system of Chile. Chile has seen both growth and recession (with the different economic treatments of its presidents) It is currently able to manage a decrease in the foreign debt and open for the foreign investment. The Current Political Situation The current political system of Chile is also stable. It is nation with multiparty. The country has three branches of executive, legislative, and judiciary. The cxecutive branch selects the president for the country and the legislative branch has two houses named Chamber of Deputies and Senate. The Supreme Court and other lower courts come under the judiciary system. There are many political parties involved in the Chilean Government and they are trying to maintain the social and economic condition of the country (Kelleher Klein, 2011). Analysis and Conclusions Concluding the paper it can be said that Chile has now become an important part of the global economy with its growing industries. Due to many changes in its political atmosphere in the 20th century, Chile faced many challenges in its economic development as it saw growth as well as recession. In 1990, the democratic government was again brought into Chile. A Christian democrat Eduardo Frei won the election in 1993. Currently, the condition of Chile is stable. Chile is facing some challenges in its development of having some problems between the military and the government. Also, there is a belief in the people of Chile that the income inequality is getting worse. Apart from the economic problems, the people of Chile are facing the problems of natural disaster. A devastating earthquake has affected the economic condition of Chilean. The newly elected president of Chile, Sebastian Pinera, is trying to control the challenges that the country is facing (Cynthia Crabtree, 2010).

Mobility essay Essay Example for Free

Mobility essay Essay The Unites States is the land of opportunities where people pursuit the American dream to have a better life. American life is built on the faith that it is possible to rise from humble origins to economic heights. In that case social mobility plays a big role in todays society. Social mobility refers to the ability to change the positions within a social stratification system. In other words, when people improve or decrease their economic status in the way that it affects their social class, they experience either pward or downward social mobility. With this in mind, the social mobility in United States appears to be stalled or in decline. One of the main reasons is poverty that is causing a decline. Furthermore, the rich-poor gap that widens also has an effect on mobility causing income inequality. Also, European social mobility is much better than that one in the United States. Some other factors that influence social mobility include race, income, mother and father occupation, and ethnicity. Certainly, one of the reasons why social mobility in United States appears to be talled or in decline is because of poverty. The higher the individual starts on the social ladder the more likely that individual will end up higher than where he or she first started. The more income the parents have will guarantee more opportunities for that person. According to Economic Mobility Project, 40% of Americans that are born in the bottom quintile remain stuck there as adults (Upper bound). That means that that almost half of that social group doesnt change their position within a social stratification system. That doesnt mean it is their fault because people that are poor start with a disadvantage. For example, according to Eric Wanner, president of the Russell Sage Foundation, Upper-income families can invest more in their childrens education and they may have a better understanding of what it takes to get a good education. (Harder for Americans to Rise From Lower Rungs by Jason DeParle). That means that a child that comes from a richer family has more educational opportunities than a child coming from the poor. Furthermore, a child oming from rich family will have a better understanding on how to succeed in school where on the other hand, child from poor family doesnt have that opportunity. However, Just 8% of American men at the bottom rose to the top fifth. That shows that even though it is difficult it is still possible. Generally speaking, the rich-poor gap that widens also has an effect on mobility causing income inequality. As the gap between rich and the poor has widened since 1970, the odds that a child that is born in poverty will climb to wealth remain stuck. Same goes to child that is born rich will fall into middle class. One reason for mobility gap may be the depth of American poverty which leaves poor children starting especially far behind. Most of the time it is determined by the father and mother occupation. Based on the new data gathered by Bhashkar Mazumder of the Federal Reserve Bank of Chicago, he argued that 60% of a sons income is determined by the level of income of the father. (Goodbye, Horatio Alger). This means that more than half of men are dependable on their fathers income. Furthermore, this shows that the higher the income ot parents, the more opportunities the child example, researchers now estimate the elasticity of father-son earnings at 0. 5%. That means that for every 1% increase in fathers income, his sons income will be increased or expected to increase by about 0. 5%. ((Harder for Americans to Rise From Lower Rungs). In other words, the better the income of the father, the better the income of the son. So the family background is very important in social mobility. In contrast, European social mobility is much better than that one in the United States. European countries have made serious investments to create equality of opportunity for all. According to Fareed Zakaria in The downward path of upward mobility, they have extremely good childhood health and nutrition programs, and they have far better public educations systems than the United States does. Furthermore, poor children compete on a more equal footing against the rich and in the United States poor children compete for better education few steps behind then others.

Coffee Shop Business Plan

Coffee Shop Business Plan Java Culture coffee bar is determined to become a daily necessity for local coffee addicts, a place to dream of as you try to escape the daily stresses of life and  just a  comfortable place to meet your friends or to read a book, all in one. With the growing demand for high-quality gourmet coffee and great service, Java Culture will capitalize on its proximity to the University of Oregon campus to build a core group of repeat customers. The company will operate a 2,300 square foot coffee bar within a walking distance from the University of Oregon campus. The owners have secured this location through a three-year lease with an option for extending. The have also provided $140,000 of the required $170,000 start-up funds. The remaining capital will be obtained through  Bank of America commercial loans. The company is expected to grow sales revenue from $584,000 in FY2001 to $706,000 in year three. As Java Culture will strive to maintain a 65% gross profit margin and reasonable operating expenses,  it will see  net profits grow from $100,000 to$125,000 during the same period. 1.1 Objectives: Java Cultures objectives for the first year of  operations are: Become selected as the Best New Coffee Bar in the area by the local restaurant guide. Turn in profits from the first month of operations. Maintain a 65% gross margin. 1.2 Keys to Success: The keys to success will be: Store design that will be both visually attractive to customers, and designed for fast and efficient operations. Employee training to insure the best coffee preparation techniques. Marketing strategies aimed to build a solid base of loyal customers, as well as maximizing the sales of high margin products, such as espresso drinks. 1.3 Mission Java Culture will make its best effort to create a unique place where customers can socialize with each other in a comfortable and relaxing environment while enjoying the best brewed coffee  or espresso and pastries in town. We will be in the business of helping our customers to relieve their daily stresses by providing piece of mind through great ambience, convenient location, friendly customer service, and products of consistently high quality. Java Culture will invest its profits to increase the employee satisfaction while providing stable return to its shareholders. 2.0 Company Summary: Java Culture, an Oregon limited liability company, sells coffee, other beverages and snacks in its 2,300 square feet premium coffee bar located near the University of Oregon campus.   Java Cultures major investors are Arthur Garfield and James Polk who cumulatively own over 70% of the company. The start-up loss of the company is assumed in the amount of $27,680. 2.1 Company Ownership: Java Culture is registered as a Limited Liability Corporation in the state of Oregon. Arthur Garfield owns 51% of the company. His cousin, James Polk, as well as Megan Flannigan and Todd Barkley hold minority stakes in Java Culture, LLC. 2.2 Company Locations and Facilities: Java Culture coffee bar will be located on the ground floor of the commercial building at the corner of West 13th Avenue and Patterson Street in Eugene, OR. The company has secured a one-year lease of the vacant 2,500 square feet premises previously occupied by a hair salon. The lease contract has an option of renewal for three years at a fixed rate that Java Culture will execute depending on the financial strength of its business. The floor plan will include a 200 square feet back office and a 2,300 square feet coffee bar, which will include a seating area with 15 tables, a kitchen, storage area and two bathrooms. The space in the coffee bar will be approximately distributed the following way1,260 square feet (i.e., 55% of the total) for the seating area, 600 square feet (26%) for the production area, and the remaining 440 square feet (19%) for the customer service area. This property is located in a commercial area within a walking distance from the University of Oregon campus on the corner of a major thoroughfare connecting affluent South Eugene neighborhood with the busy downtown commercial area. The commercially zoned premises have the necessary water and electricity hookups and will require only minor remodeling to accommodate the espresso bar,  kitchen and storage area. The coffee bars open and clean interior design with modern wooden decor will convey the quality of the served beverages and snacks, and will be in-line with the establishments positioning as an eclectic place where people can relax and enjoy their cup of coffee. The clear window displays, through which passerby will be able to see customers enjoying their beverages, and outside electric signs will be aimed to grab the attention of the customer traffic. 3.0 Products: Java Culture will offer its customers the best tasting coffee beverages in the area. This will be achieved by using high-quality ingredients and strictly following preparation guidelines. The store layout, menu listings and marketing activities will be focused on maximizing the sales of higher margin espresso drinks. Along with the espresso drinks, brewed coffee and teas, as well as some refreshment beverages, will be sold in the coffee bar. Java Culture will also offer its clients pastries, small salads and sandwiches. For the gourmet clientele that prefers to prepare its coffee at home, Java Culture will also be selling coffee beans. The menu offerings will be supplemented by free books and magazines that customers can read inside the coffee bar. 3.1 Product Description: The menu of the Java Culture coffee bar will be built around espresso-based coffee drinks such as lattes, mochas, cappuccinos, etc. Each of the espresso-based drinks will be offered with whole, skimmed, or soy milk. Each of these coffee beverages is based on a shot of espresso, which is prepared in the espresso machine by forcing heated water through ground coffee at high pressure. Such espresso shots are combined with steamed milk and/or other additives like cocoa, caramel, etc., to prepare the espresso-based beverages. Proper preparation techniques are of paramount importance for such drinks. A minor deviation from the amount of coffee in the shot, the size of the coffee particles, the temperature of milk, etc., can negatively affect the quality of the prepared drink. 3.2 Sales Literature: Two thousand flyers will be distributed in the adjacent neighborhood, on the University campus, at the malls and in the selected office buildings within two weeks prior to the opening of Java Culture. Subsequently, free postcards with Java Culture endorsement will be printed to increase the company visibility among the patrons. 4.0 Market Analysis Summary: U.S. coffee consumption has shown steady growth, with gourmet coffee having the strongest growth. Coffee drinkers in the Pacific Northwest are among the most demanding ones. They favor well-brewed gourmet coffee drinks and demand great service. Eugene, OR, with its liberal and outgoing populace and long rainy winter, has traditionally been a great place for coffee establishments. Java Culture will strive to build a loyal customer base by offering a great tasting coffee in a   relaxing environment of its coffee bar located close to the bustling University of Oregon campus. 4.1 Market Segmentation: Java Culture will focus its marketing activities on reaching the University students and faculty, people working in offices located close to the coffee bar and on sophisticated teenagers. Our market research shows that these are the customer groups that are most likely to buy gourmet coffee products. Since gourmet coffee consumption is universal across different income categories and mostly depends on the level of higher education, proximity to the University of Oregon campus will provide access to the targeted customer audience. The chart and table below outline the total market potential (in number of customers) of gourmet coffee drinkers in Eugene, OR. Java Culture will cater to people who want to get their daily cup of great-tasting coffee in a relaxing atmosphere. Such customers vary in age, although our location close to the University campus means that most of our clientele will be college students and faculty. Our market research shows that these  are discerning customers that gravitate towards better tasting coffee. Furthermore, a lot of college students consider coffee bars to be a convenient studying or meeting location, where they can read or meet with peers without the necessity to pay cover charges. For us, this will provide a unique possibility for building a loyal client base. 4.2.1 Market Needs: General trend toward quality among U.S. consumers definitely plays an important role in the recent growth in gourmet coffee. Additionally, such factors as desire for small indulgencies, for something more exotic and unique, provide a good selling opportunity for coffee bars. 4.3 I Industry Analysis: Coffee consumption has shown a steady 2.5% growth rate in the United States over the last decade. In 1994, total sales of coffee were approximately $7.5 billion with gourmet coffee representing 33% (or $2.5 billion) of that. The retail coffee industry is flourishing in the U.S. Pacific Northwest. The local climate, with a long rainy season, is very conducive for the consumption of hot non-alcoholic beverages. At the same time, hot dry summers drive people into cafes to order iced drinks. Further, coffee has really become a part of the lifestyle in the Pacific Northwest. Its discerning coffee drinkers are in favor of well-prepared, strong coffee-based beverages, which they can consume in a  relaxing environment. 4. 4 Competition and Buying pattern: Competition: According to the 1997 Oregon Food service Statistics (NAICS 72), Eugene had 45 established snack non-alcoholic beverage bars (NAICS 722213) with total sales of $14.2 million. Among other establishments that offer coffee drinks to their customers are most of Eugenes limited- and full-service restaurants. Java Cultures direct competitors will be other coffee bars located near the University of Oregon campus. These include Starbucks, Cafe Roma, The UO Bookstore, and other Food service establishments that offer coffee. Starbucks will definitely be one of the major competitors because of its strong financial position and established marketing and operational practices. However, despite of Starbucks entrenched market position, many customers favor smaller, independent establishments that offer cozy atmosphere and good coffee at affordable prices. Cafe Roma is a good example of such competition. We estimate that Starbucks holds approximately 35% market share in that neighborhood, Cafe Roma appeals to 25% of customers, The UO Bookstore caters to another 10%, with the remaining market share split among other establishments. Java Culture will position itself as a unique coffee bar that not only offers the best tasting coffee and pastries but also provides home-like, cozy and comfortable environment, which established corporate establishments lack. We will cater to customers bodies and minds, which will help us grow our market share in this competitive market. Buying Patterns: The major reason for the customers to return to a specific coffee bar is a great tasting coffee, quick service and pleasant atmosphere. Although, as stated before, coffee consumption is uniform across different income segments, Java Culture will price its product offerings competitively. We strongly believe that selling coffee with a great service in a nice setting will help us build a strong base of loyal clientele. 5.0 Strategy and Implementation Summary: Java Cultures marketing strategy will be focused at getting new customers, retaining the existing customers, getting customers to spend more and come back more often. Establishing a loyal customer base is of a paramount importance since such customer core will not only generate most of the sales but also will provide favorable referrals. 5.1 Competitive Edge: Java Culture will position itself as unique coffee bar where its patrons can not only enjoy a cup of perfectly brewed coffee but also spend their time in an ambient environment. Comfortable sofas and chairs, dimmed light and quiet relaxing music will help the customers to relax from the daily stresses and will differentiate Java Culture from incumbent competitors. 5.2 Sales Strategy: Java Culture baristas will handle the sales transactions. To speed up the customer service, at least two employees will be servicing clientswhile one employee will be preparing the customers order, the other one will be taking care of the sales transaction. All sales data logged on the computerized point-of-sale terminal will be later analyzed for marketing purposes. In order to build up its client base, Java Culture will use banners and fliers, utilize customer referrals and cross-promotions with other businesses in the community. At the same time, customer retention programs will be used to make sure the customers are coming back and spending more at the coffee bar. 5.3 Sales Forecast: Food costs are assumed at 25% for coffee beverages and 50% for retail beans and pastries. Proximity to the University campus will dictate certain sales seasonality with revenues slightly decreasing during the school vacation periods. The chart and table below outline our projected sales forecast for the next three years. 6.0 Management Summary: Java Culture is majority-owned by Arthur Garfield and James Polk. Mr. Garfield holds a Bachelors Degree in Business Administration from the University of ZYX. Hes worked for several years as an independent business consultant. Previously, he owned the ABC Travel Agency, which he profitably sold four years ago. Mr. Garfield has extensive business contacts in Oregon that he will leverage to help his new venture succeed. Mr. Polk has a Bachelors Degree in Psychology from the XYZ State University. For the last five years he has worked as a manager of DEF Ristorante, a successful Italian restaurant in Portland, OR. Under Mr. Polks management, the restaurant has consistently increased sales while maintaining a lower than average level of operating expenses. However, because of the investors other commitments they will not be involved into the daily management decisions at Java Culture. A professional manager ($35,000/yr) will be hired who will oversee all the coffee bar operations. Two full-time baristas ($25,000/yr each) will be in charge of coffee preparation. Four more part-time employees will be hired to fulfill the staffing needs. In the second and third year of operation one more part-time employee will be hired to handle the increased sales volume. 6.1 Management Team: A full-time manager will be hired to oversee the daily operations at Java Culture. The candidate (whos name is withheld due to his current employment commitment) has had three years of managerial experience in the definitely industry in Oregon. This persons responsibilities will include managing the staff, ordering inventory, dealing with suppliers, developing a marketing strategy and perform other daily managerial duties. We believe that our candidate has the right experience for this role. A profit-sharing arrangement for the manager may be considered based on the first year operational results. 6.2 Management Team Gaps: Despite the owners and managers experience in the definitely industry, the company will retain the consulting services of ABC Espresso Services, the consultants who have helped to develop the business idea for Java Culture. This company has over twenty years of experience in the retail coffee industry and has successfully opened dozens of coffee bars across the U.S. Consultants will be primarily used for market research, customer satisfaction surveys and to provide additional input into the evaluation of the new business opportunities. 7.0 Financial Plan: Java Culture will capitalize on the strong demand for high-quality gourmet coffee. The owners have provided the company with sufficient start-up capital. With successful management aimed at establishing and growing a loyal customer base, the company will see its net worth doubling in two years. Java Culture will maintain a healthy 65% gross margin, which combined with reasonable operating expenses, will provide enough cash to finance further growth.

Epithets in Othello :: Othello essays

Epithets in Othello An epithet is an adjective or adjective phrase that characterizes a person or thing. Epithets can often consist of abusive or contemptuous words such as those directed by the professionally offended Iago in Shakespeare's Othello. Iago refers to Othello with damning epithets to suggest the Moor as a lust driven animal that is violating the innocent Desdemona. For instance, he calls Othello, "an old black ram" who is "tupping" Brabantio's "white ewe"(Act I, Scene I: 90-91). He is referring to the fact that Othello is a Moor, or dark skinned man. Iago is also making the insinuation that Othello is, at this moment, copulating with Brabantio's innocent daughter, Desdemona. In addition, Iago warns Brabantio that if he does not rescue his daughter, the "devil" will make Brabantio a grandfather (Act I, Scene I: 93). Again, he is suggesting that Othello is demonic and comparable to a wild animal. He continues erupting insults shouting that a "Barbaray horse" is mounting D esdemona and that Brabantio's nephews will "neigh" and cousins will be "coursers," or strong horses (Act I, Scene I: 113-114). Yet again, Iago is suggesting that Othello is animal-like and that this quality will arise throughout Brabantio's family. It is important to note that in the play production Iago speaks such crude and obscene language while hiding behind several clustered poles below Brabantio's window. This gesture reveals Iago's attempt to remain an "honest man" in the eyes of the other characters while carrying out a plan of revenge. Although Iago's insults toward Othello appear to be racial, it does not make the entire play racist. Iago is so consumed by revenge against Othello, for passing him over for the promotion that he will say or do anything to attain his "peculiar end" (Act I, Scene I: 62).

FOREIGN TRADE POLICY AND THE IMPACT ON AGGREGATE EXPENDITURES AND EQUILIBRIUM :: essays research papers

FOREIGN TRADE POLICY AND THE IMPACT ON AGGREGATE EXPENDITURES AND EQUILIBRIUM There are two types of aggregate expenditures: Autonomous and Induced Autonomous expenditures are not influenced by real GDP. Induced expenditures are influenced by real GDP. Actual aggregate expenditure is always equal to real GDP. Equilibrium expenditure is the level of planned aggregate expenditure that equals real GDP. Net export expenditure reflects the international linkages based directly on service and merchandise flows across borders, and indirectly reflects capital flows into and out of a particular country. U.S. foreign trade and global economic policies have changed dramatically during the past two centuries. Since the Great Depression and World War II, the country has sought to reduce trade barriers. U.S. trade deficits have grown larger since the 1980's and 1990's as the American appetite for foreign goods has outstripped demand for American goods in other countries. The United States has not always been an advocate of free trade. At times throughout history, the country has had a strong impulse toward economic protectionism by using tariffs to limit imports of foreign goods in order to protect American industry. A big factor leading to the U.S. trade deficit was a sharp rise in the value of the dollar in the early to mid 1980's. This made U.S. exports more expensive and foreign imports into the United States cheaper. The dollar appreciated because of the recovery from the global recession of 1981-82, and in huge U.S. federal budget deficits which created a significant demand in the United States for foreign capital. That, in turn, drove up interest rates, and led to the rise of the dollar. Exports are determined by international prices, trade agreements, and the real GDP of foreign countries. All things being equal: the higher foreign prices, the more liberal trade agreements and the higher the real GDP of foreign countries, the higher the exports become. Exports are autonomous of real GDP. Imports are determined by international prices, trade agreements, and the real domestic GDP. All things being equal: the lower foreign prices, the more liberal trade agreements and the higher domestic real GDP, the higher the imports become. According to a recent article in Washington (Reuters), dated November 13, 2004, written by Jonathan Nicholson, â€Å"a tax aimed at boosting savings, holds promise.† This is in response to President Bush and one of his ideas to get the economy moving again. Bush is currently proposing to reform the tax code.

Machiavelli Vs. King George III :: essays research papers

MACHIAVELLI VS. KING GEORGE III During colonial times, King George III was a tyrant ruler. He was unstable and constantly inflicted hardship upon the people of the American Colonies. King George III thought that imposing more demands on the colonists would allow him to reach his goals such as bringing in more money for the British government. Machiavelli, on the other hand, thought that a ruler needed his subjects to be on his side so that there would be less resistance. King George III did not follow Machiavelli's manual for being a good prince. Machiavelli's main lesson was "a prince must always seem to be generous, merciful, faithful, spirited, and humane.† If a prince does not have those characteristics, his people will lose all support for him. King George III did not make sure people from the American Colonies saw him as a good King. King George III did not go out of his way to cover up his wrong doings. Instead, everyone knew he did not really care about the American Colonists. They knew he only cared about the land, and acquiring the largest empire. The King continually broke his own laws, contrary to Machiavelli's principles. Machiavelli once said, â€Å"a prince should always be able to come up with a reason for war†. King George III didn’t have a reason. He kept sending armies into the American Colonies. He transported large armies of foreign mercenaries to kill people and confiscate their land. By doing this, King George was only sabotaging himself. Machiavelli spoke of a balance between good and evil. "In actual fact, a prince may not have all of the admirable qualities listed, but it is necessary that he should seem to have them. Indeed I will venture to say that when you have them and exercise them all of the time, they are harmful to you; when you just seem to have them, they are useful. It is good to appear merciful, truthful, humane, sincere, and religious; it is good to be so in reality. But you must keep your mind so disposed that, in case of need, you can turn to the exact contrary".

Price Discrimination

Price discrimination Price discrimination is the practice of charging a different price for the same good or service. There are three of types of price discrimination – first-degree, second-degree, and third-degree price discrimination. First degree First-degree discrimination, alternatively known as perfect price discrimination, occurs when a firm charges a different price for every unit consumed. The firm is able to charge the maximum possible price for each unit which enables the firm to capture all available consumer surplus for itself.In practice, first-degree discrimination is rare. Second degree Second-degree price discrimination means charging a different price for different quantities, such as quantity discounts for bulk purchases. Third degree Third-degree price discrimination means charging a different price to different consumer groups. For example, rail and tube travellers can be subdivided into commuter and casual travellers, and cinema goers can be subdivide int o adults and children.Splitting the market into peak and off peak use is very common and occurs with gas, electricity, and telephone supply, as well as gym membership and parking charges. Third-degree discrimination is the commonest type. Necessary conditions for successful discrimination Price discrimination can only occur if certain conditions are met. 1. The firm must be able to identify different market segments, such as domestic users and industrial users. 2. Different segments must have different price elasticities (PEDs). 3.Markets must be kept separate, either by time, physical distance and nature of use, such as Microsoft Office ‘Schools’ edition which is only available to educational institutions, at a lower price. 4. There must be no seepage between the two markets, which means that a consumer cannot purchase at the low price in the elastic sub-market, and then re-sell to other consumers in the inelastic sub-market, at a higher price. 5. The firm must have so me degree of monopoly power. Video Diagram for price discriminationIf we assume marginal cost (MC) is constant across all markets, whether or not the market is divided, it will equal average total cost (ATC). Profit maximisation will occur at the price and output where MC = MR. If the market can be separated, the price and output in the inelastic sub-market will be P and Q and P1 and Q1 in the elastic sub-market. When the markets are separated, profits will be the area MC, P,X,Y + MC1,P1,X1,Y1. If the market cannot be separated, and the two submarkets are combined, profits will be the area MC2,P2,X2,Y2.If the profit from separating the sub-markets is greater than for combining the sub-markets, then the rational profit maximizing monopolist will price discriminate. Market separation and elasticity Discrimination is only worth undertaking if the profit from separating the markets is greater than from keeping the markets combined, and this will depend upon the elasticities of demand in the sub-markets. Consumers in the inelastic sub-market will be charged the higher price, and those in the elastic sub-market will be charged the lower price.