Mid-Term Essay Sample

We live in a world where competition carries the day when it comes to business, right from small start ups to big corporations indeed. It has been a daunting task for business people in the market place since every player is left to play as he wishes, as long as he is within the specification laid down by the regulatory authorities, probably the oversight committee’s start by the government as watchdogs.
Back to the claim, it has been observed that economy grows because of different reasons advocated for by different theorists, but each has a value to the pursuant of the economic discipline. Liberation has been focusing on imposing minimal control to the participants of economic operating in an economy leaving the firms to decide for themselves the best course of action in the issue of maximization of profits. This does not however mean that watchdogs imposed by the regulatory authorities do nothing to curb economic crimes as well as prohibited activities (Mukras, 2012).
The essence of the above is ensuring that innovativeness carries the day, as well as spurring economic growth will prevail since every player will feel encouraged by the fact that he can concentrate on his /her area of interest for maximization of yield. This has been touted as the best idea of encouraging economic growth.
On the same line of liberation, it has been known to encourage across border selling of goods and services from the production point. This means that globalization is the hall mark of trading in the aforementioned economic area, since exporting to areas of lower potential with regard to the same product under discussion is allowed.
On the other hand, economic nationalism has been defined by tight controls on the happenings within an economic territory. Due to different goals set by the government to ensure that their subjects grow indefinitely, there has been many measures be put in place to keep the native’s afloat amid strong hindrances like competition, financial constraints among others. Just as a way of example, due to foreign companies with strong financial muscle from abroad who invade a trading area and threaten to leave startups out of the market place, regulatory authorities slam heavy taxes as well as tighten control solely for ensuring that foreign companies face an uphill task when their peers are catching up (Mukras, 2012).
On the same note, compliance controls for example tax payment of a company depending on whether it is foreign or native also determines the extent to which it has to suffer. It has been on news that foreign companies (firms trading in a different area, not their country of incorporation) have been taxed differently from their peers in the country just because the authorities want to give the natives a competitive advantage over their rivals.
When the above forces are combined in any economy, growth will be skewed towards the native firms that are given a competitive edge over their peers from abroad who will be facing punitive measures to remain afloat in the trading environment.
Economy viewed on Marxism has raised arguments on how to balance internal growth at the same time attracting peers from multinationals. Karl Max had given attention to capitalism and its impact to economic growth. Through this perspective, it has been known that the trading environment is left o the forces of the market in determining who will achieve superiority at the expense of whom (Mukras, 2012).
As a way of example, regulations do not give an advantage to startups since under this doctrine, the companies will be given a chance to perform a certain economic activity, failure to which someone else with stronger competitive advantage will take centre stage and overtake you. Viewed differently, as long as the needs of the community are met, I will not be in the best interests of the regulatory authorities to know who did it (whether a foreigner or a native)
This has paved way for political patronage to take centre stage in determining who wins against whom in the market places. People have been taking their interests at the centre stage, and will still do it if given a chance at the top. It will be rightly said that a balance on the above three schools of thought will give an economy the best growth pattern, at the same time ensuring global uniformity and future sustainability of operations. No independent school of thought will out do the three when combined. If Gilpin gave me an opportunity to write an introduction, I would focus on economic nationalism. It has the best results as discussed above.