The EU Single Market Programme and Monetary Union Essay

The EU Single Market Programme and Monetary Union - Essay Example This case has been of much interest in economics and one of the concepts that were studied is the hold-up problem. In more precise terms, the hold up problem is a term used in economics to describe a situation where two parties (such as a supplier and a manufacturer) may be able to work most efficiently by cooperating, but refrain from doing so due to concerns that they may give the other party increased bargaining power, and thereby reduce their own profits1. In the case of the European Union (EU), it was previously expected that the regional integration would be beset by problems with regards to policy formulation and implementation. The EU is composed of countries that have been in constant race towards domination in economic and military terms. Germany and France, for example, have been known to apply stringent protectionist policies with regards to their industries to ensure that their economy will be robust and competitive. If only to emphasize the point that there are conflicting interests among the EU member states, it will be mentioned that both of the world wars started in the European theatre. However, the implementation of Single Market Programme and the Monetary Union seems to defy our idea that it is inevitable that hold up problems occur in the European Union policies except in the case of UK opting out of the single currency. The Single Market Programme ... was based on the following premises: 1) the increase in the size of the market due to regional integration results to larger scale investment that would not have been profitable in member states' national markets and 2) regional integration is can lead to an increased economic growth rate and foreign direct investment2. The EU monetary union is an agreement of its member countries to share a single currency among them - the Euro. This currency is currently used by Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. Monaco, San Marino, and the Vatican City are licensed to issue and use the euro3. With such diversity and differing interests of the member nations, how did such a venture succeeded in achieving its goals In the first place, how did it become possible that such an agreement was made What are the factors that held stalemates/hold up problems from occurring These questions must be answered as this paper is interested in determining if holdup problems are indeed inevitable in negotiations. Chapter 1: Benefits and Concessions The key to a successful negotiation is that all stakeholders benefit from the agreement without too many concessions. That is, the number of benefits that the stakeholder is entitled to generally determines the willingness of the stakeholder to come to terms. As Putnam puts it, 'the larger the win sets, the greater will the probability that an agreement will be reached'4. Note that number of benefits is a function of the number of concessions made. In the Single Market Programme and Monetary union, what was offered as benefits for all the member state was the increase in foreign direct investment and other improvements in the economy. Mechanisms were placed such that

Operations Management Research Paper Example | Topics and Well Written Essays - 1000 words

Operations Management - Research Paper Example However, the bigger part of the research regarding Japanese management practices has emphasized on practices in Japan and the system in which these were diverged from practice of American firms. Moreover, the essential significance of HRM practices for the success of Japanese organizations has been discussed widely. Specifically, generating fortified employee cohesiveness, company commitment, and life time employment attended significant considerations. Furthermore, seniority-based pay systems along with extensive job rotation in different functions and slow promotion have been extensively discussed. Many facts revealed about Japanese HRM practices; however, very small number of them testified on their practicality, on the other hand a large part of our information is based on assumptions and past stories. There are eight rules which must be followed in practice of HRM. These eight rules are come into existence after practice and classification. These are fairness, frame of reference , scope, formality, time horizon, participation, individualism and explicitness. These eight aspects of HRM are being applied in all the countries of the world (Bird and Beechler, 1995). The model of lifetime employment has not been successful in all Japanese organizations. Definitely some practices were limited to only to established Japanese organizations. Long-term employment and seniority-based pay was only applicable to the limited numbers of workers in several organizations. Furthermore, their success was dependent on different dimensions. For instance, the requirement of organizational enhancement made possible the hiring of several young and comparatively cheap working forces and thus minimizes the expenses. Moreover, it also helped the companies to encourage the workers by developing fresh positions regarding promotions. Comparatively, the growth of the organizations was not probable without enhancing the efficiency of workers. Clearly, these skills were significant for the rising innovations that made able the firms of Japan to outclass their other counterparts of the world. However, these changes were not appropriate regarding knowledge-intensive and rapidly changing technologies. In the current economy, specific knowledge or fresh concepts, which are not related to the measurement of in-house training, are the initial motivators of the reasonable power of organizations. Thus, the aspects of long-term skill development were obstacles to a rapid and adjustable response to fresh chances. Furthermore Japanese companies have a larger scope, and their focal point is a broader set of targets and achievements. For instance, the bonuses of Japanese employees are attached to the wider performance of the firms as well as the employees have the advantage to take a large portion of bonuses to take home. This practice has also been observed in job rotation and training activities and this is the place where the emphasis is on the development of generalists not o n the specialists. Japanese firms are known for their search of excellence instead of equity. For instance, these firms reward the employees regularly. Moreover the pay is based on seniority basis and not on individual performance. This exhibits that these companies have been working to develop the society. It has been revealed that the