Course: Information Technology in a Global Economy Part A: Discussion 4 (Week 3): Government Today's Global Economy is very top-down driven with the government making all the decisions and regulati
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Post 1:
Discussion 4 (Week 3): Government
COLLAPSE
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When the title of chapter 1 says “Government: Boss, financial partner, regulator”, it is clearly evident that it acts as multitasking and monitoring the whole activity of the global economy by itself right from the beginning. Heavy-handed government doctoring of the economy, administered with an (un)healthy dose of good old-fashioned mercantilism, can act as a quick tonic for an underdeveloped industrial sector (Kressel, 2012). This example depicts the role of government in underdeveloped sectors as well where chances of development with private sector cannot be found. We live in a world where the fastest-growing economy is the one where the government has the most control. This has encouraged other governments to become more involved in their economies in the hope of encouraging competitive new industries and defending established ones (Kressel, 2012).
The major advantage is with the cost management as the government has to provide the details of each and every penny spent on it to the public, such that no frauds/scams can be found as part of the regulating and development of each sectors. The disadvantage could be the outcome/productivity compare to other topics where a lot of competitors usually have as neck and neck in their field these days.
Reference:
Kressel, H., & Lento, T. V. (2012). Entrepreneurship in the Global Economy: Engine for Economic Growth. Cambridge University Press.
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Post 2:
Discussion 4
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Top-Down Approach
The top-down approach is an excellent way for the global organizations' related regulations and decisions due to the fact that this power vest with the government that would make decisions which are suitable for the nation. This approach also provides some efficient outcomes because the governments will understand the trends in the market and there will be professional helping the government to handle this matter and thus, right regulations and decisions can be made. The approach also allows decisions to be made and implemented quite fast (Sanderson, 2019). This is especially essential when time is quite limited.
But there is a challenge of the government of being corrupted or biased and taking decisions for individuals that are favorable to them, these kinds of decisions would significantly affect the economy as well as other business organizations who are trying to do their business across the country. Additionally, the unspecific expectations and requirements can result in misunderstandings that can lead to settling on wrong decisions; the prerequisite of this approach is effective communication. Hence it is good to have an approach where the government make decisions together with a team that is formed by different scholars and experts by taking different ideas and opinions. This approach will provide the best regulations and decisions (Easterly, 2008).
References
Easterly, W. (2008). Institutions: Top down or bottom up?. American Economic Review, 98(2), 95-99.
Sanderson, J. (Ed.). (2019). Landscape ecology: a top down approach. CRC Press.
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