Who Pays The Price Case Study Examples

Scenarios that were described in the case will always have opponents and proponents, because all stakeholders have different moral values and needs. As for me, I would assess what direct and indirect impact three decisions would have on me. If negative consequences, including increased expenses, are more or less reasonable, I will accept stricter policies. In contrast, when expenses are too high and harm both businesses and my interests, I would be against the measures that the government would like to take in order to reduce the terrorist threat and prevent climate change. I think it is important to remember that markets rarely function properly and therefore there are a lot of failures or externalities. This is why the government should have the right to intervene when it is needed.
In the first scenario, there are two benefits – saved lives and stable work of the airline industry. On the contrary, operating costs for airports and airline companies will increase due to numerous guidelines and rules. As a result, travelers will have to spend more money on tickets. In the second scenario, benefits are more difficult to assess, because pollution has indirect effect on people. Climate change might occur not so rapidly and people in the USA and other countries might suffer less from polluted air, soil and water. However, tractor owners will have to spend more money on new engine technology and therefore products will be sold at higher prices. Finally, in the third case just as in the first case, the terrorist threat will be minimized, but safety will be guaranteed at the expense of transport companies.
Government should intervene by setting new regulations in order to increase security and protect the environment. Unfortunately, in the business world, especially when the competition is too fierce, companies prefer to focus on their financial performance even though they support ideas of corporate social responsibility. Government may set up rules or cooperate with industries or companies in order to take into account their needs. In this case new requirements will be pragmatic and companies will adhere to them without losing too many profits.