Economic Sustainability Essay
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It is the use of a bevy of strategies for in order to employ all of the existing resources optimally. oA responsible and beneficial balance that can be achieved over the longer term would be the most ideal form of economic sustainability. oWithin the context of a business, economic sustainability usually involves using the variety of assets of the company efficiently to allow it to continue functioning profitability over time. oUsually the state should not intervene in the world of business, namely the Forex market(Greenback, Euros), commodities market(Nymex Crude, Gold, Sliver), stock market(NYSE Euronext, STI) and the banking, forestry industries.
This is to enable the free market to operate freely using the forces of supply and demand. oHowever, in the moment of a financial crisis, the state would usually intervene to save the entire market from crashing, avoiding market crisis and hence a depression. This, if were to happen, would result in massive unemployment and widespread discontent with the government.
oHence, the government should only intervene in times of crisis. oThe state should also involve itself in the operations of CRUCIAL DAY-TO-DAY running business of a country, i.e. the transport industry, medical industry and the enactment of a central bank to regulate IBOR(Inter-Bank Offered Rate) and currency rates Stakeholders
•Citizens of a country
•The sector that experienced the crash, followed by other sectors Facts and trends in the economic landscape
1.Quantitative easing (QE) – A unconventional monetary policy used by central banks to stimulate the national economy when the conventional monetary policy has become ineffective. Quantitative easing is implemented by buying financial assets from commercial banks and other private institutions, thus creating money and injecting a pre-determined quantity of money into the economy. This is different from the more usual policy of buying or selling government bonds to change money supply. Quantitative easing increases the excess reserves of the banks, and raises the prices of the financial assets bought, which in turns lowers their yield. Implemented during the 2008 Financial Crisis to inject liquidity thrice, with QE 1 on November 25 2008 till march 21 2010, QE2 on November 2 2010 till June 30 2011 and QE3 on September 13 2012 till present.
This was also employed in Japan during their long period of deflation. 2.Anti-Trust Laws- This is to ensure fair and maximum, non-discriminatory behaviour amounts competing firms. One example is the United States v. Microsoft lawsuit. The Internet browsers wars sparked USA and the EU to launch lawsuits on Microsoft as Microsoft did not enable users, on initial start-up usage of their flagship Windows Suite of operating system, to use other browsers such as Chrome, MozillaFirefox and Oprah.
This was deemed as a unfair and discriminatory business practice and hence ATLs were launched against Microsoft to ensure fair trade and competition amongst rivals. 3.Standard Essential Patents Licencing- It is a patent that claims an invention that must be used to comply with a certain technical standard (i.e. GIF, JPEG, LTE) Standards organizations, therefore, often require members disclose and grant licenses to their patents and pending patent applications that cover a standard that the organization is developing. Failure to license an essential patent is a form of patent misuse.
If a standards organization fails to get licenses to all patents that are essential to complying with a standard, owners of the unlicensed patents may demand or sue for royalties from companies that adopt the standard. One example is the that the Federal Trade Commission (FTC) has been threatening to go after Google for antitrust violations if the company wins sales injunctions against competitors on the basis of standard essential patents (SEPs). When a company participates in setting a technical standard such as the 802.11 WiFi standard or the LTE “4G” Cellular Data standard the industry association setting the standard will insist the company license any patents it holds that are necessary to implement the standard to anyone who requests it on a “FRAND” basis – fair, reasonable, and non-discriminatory.
Those patents that are essential to implementing the patent that must be licensed on FRAND terms are called “standard essential patents,” SEPs. The FTC’s concern is that if Google can win sales injunctions either through the courts or through the International Trade Commission (ITC) against competitors’ products using patents that were included in creating various standards (including patents formerly owned by Motorola) it could seriously damage competition and harm consumers. While this possible action is specifically against Google, presumably the FTC will take the same approach to other major industry players that hold SEPs, such as Apple.