Econ 101 Economic Principles : Assessment Answers

1.We have introduced you to the Stewardship Principles as a way the College of Business and    Technology offers its students a workable framework for ethical and responsible decision making. Offer a simple similar framework from your own traditions and experience that will help you be more ethically and socially responsible in decisions and actions.

2.After your read the different theories of trade offered in Chapter 6, suggest your own theory of trade that could build on these existing trade theories. How effective is your theory in explaining trade between nations based on current trade data.

1.The basic stewardship principles denote that one need to value the clients in order to perform better practices.  As a steward, one needs to participate actively in maintaining the assets of the clients. Formative and ethical integrity are the major principles of stewardship and this has to be taken care of properly. As per the existing frameworks, stewardship needs to adhere to the following s:

 Apart from the aforeasaid classical framework of stewardship, we can advance the components of those.  According to me, stewardship needs the strength of intelligibility so that one can better understand what his or her duty and obligations are.  Formation of integrity in a working organisation is highly sought after and the stewards are expected to carry out self-command of integrity of professional and social ethics. Decision making process is accelerated through the implementation of proper working strategy (Welsh et al., 2013).  Besides engagement with the management in order to execute equity and/or direct investment, stewardship needs active participation in an industry in association with the mode of management work-traits. Another important frame of stewardship is that it needs proper thinking of a product lifecycle.  The entire work of stewardship is to be framed in a chain. The chain begins with attainment of the knowledge about a particular work and flows through the understanding of lifecycle of a product or a service via anticipation and innovation of a related product or service (Mishra, 2017).

2.Chapter Six has discussed the theory of mercantilism designed by Scottish economist Adam Smith. Following the theory of mercantilism, a different theory of my own is going to be suggested that can help two or more countries perform trade between themselves without any hindrance (Feenstra, 2015). . Smith’s theory of absolute advantage can be amended. In absolute advantage theory, a country has the advantage in production of goods. It can be proposed that mutual production in both the countries can be beneficial for trade (Costinot et al., 2015). On one hand, a country is benefitted by its advantage of production thus enjoying the process of trade. However, the other country engaged in trade only seems to be exchanging goods with services. In case of mutual production theory, the countries will have to produce the exchangeable products and can engage in free trade hence advancing in the benefit of self-produced goods. For instance, production of grapes in Greece can be revamped or added by the production of automobiles that it imports from the countries like Germany and USA. It will not only improve the economic structure of the country but also show a certain option for accessing substitutes. However, contraries may be sighted arguing that trade between the countries may hamper. Control of the exchangeable products is going to be highly convicted by both the countries.

References:

Costinot, A., Donaldson, D., Vogel, J., & Werning, I. (2015). Comparative advantage and optimal trade policy. The Quarterly Journal of Economics, 130(2), 659-702.

Feenstra, R. C. (2015). Advanced international trade: theory and evidence. Princeton university press.

Mishra, S. (2017). Human Resource Management Practices in Family Business: Reflecting on the Agency and Stewardship Theory. 

Welsh, D. H., Memili, E., Rosplock, K., Roure, J., & Segurado, J. L. (2013). Perceptions of entrepreneurship across generations in family offices: A stewardship theory perspective. Journal of Family Business Strategy, 4(3), 213-226.