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Industrial Innovation in the 16th century used to give a negative connotation in Oxford English Dictionary (OED) but in early 20th Century it turned out to be a Positive and specifically useful and Creative Change. Industrial innovation is important for certain firms in the Modern market, where competition is increasing day by day and products tend to have a shorter life cycle. Following are the Determinants for industrial innovation:Information:
Information regarding the product is important. When to improve the product and the number of benefits that the product gives as compared to its costs? What improvements can be made to a certain product? And how can this be achievable for the firms in a given number of resources. An entrepreneur has to go through its resources and monitor cost/benefit analysis of the product in making. An automobile company has to see the available information regarding certain parts of the cars, the material that the firm thinks is needed for the change they're about to make in manufacturing. Information regarding their product of the returns expected from that innovation. Finance and banking has to have the information regarding the interest rates in the country it has to operate if new in the market and already settled banks have to get the information regarding the fluctuations in the interest rates that are expected in future. Another type of information is the Number of increase or decrease in customers and different actions of bank to attract customers to borrow in high inflation times and interest rates. Pharmaceutical industries on the other hand have to go through explicit research regarding any material that they use in the manufacturing of life saving drugs and the doctors hired by the firm will have to perform experiments before taking them in use. More information is required in order to make better drugs that would have minimum side effects and quick relief.Static and Dynamic Optimality:
Firms often have to go through the current efficiency level of the firm. How efficiently their labor is working and what is their motivation level? An automobile company and pharmaceutical industry will have a same motive which will be to minimize the cost of making a product, will try to efficiently employ its resources that will give a maximum productivity. They might train labor to use technical and latest Machineries. Banks on the other hand will want to achieve their targets set by the top management of the firm which has to be done by the operational management.Empirical Evidence on the Value of Intellectual Property Rights:
They measure the effect of unfavorable dispositions of court cases dealing with intellectual property rights infringement by importers on the intellectual property owner. Firms have to go through their accountability of meeting the Research and Development expenditures done in past for current work being carried out. In some countries, patent holders must pay renewal fees to maintain their patent protection.Answer 2
International trade occurs where one country is in a trade that is either buying or selling number of goods from the foreign country. Trade can be either of tangible or intangible goods (services), both types of trade give a boost to the relations and economies of the countries involved in. When countries buy some product from the other, it gives an impression that the buying country either does not possess the material or certain resources that are required to make it or the product produced in the country is not as efficient or not wanted by the local people. In that case countries import to have those products with that the countries tend to take notice of the material used and find ways on how to manufacture that particular product with which the local producers will try to make the product trying to have innovation in the local market of in that particular product that is required by the consumers. The product that is in demand of the majority of the locals that is of the necessity items, attract local producers and makes government to take notice of it. Most of the governments then promote the production of that product by providing subsidies to local producers or may be minimizing taxes on the production and sales of that product which increases the market efficiency and a rise in the number of producers in the form of competitors and giving an economic boom to the country. Technological changes also take place when a country does not contain expertise of making certain machinery, hence when international trade takes place the country possesses those machineries and gradually with the help of those machines countries are able to make certain product and later when people are aware of new technologies they try to enhance their own expertise by making them through different experiments and the costs that take place, government of that country might bear them to increase number of people getting involved into the work of technological advancements.Answer 3
National innovation system is a flow of information and technology among people of a particular country.
Japan had its way of increasing innovation in the world market by specifically exporting the value added material in the market and making it, letting markets accomplish on their own the Japanese government felt the economy should be guided in this direction through industrial policy. Japan's methods of promoting exports had taken two paths. The first was to develop world-class industries that can initially substitute for imports and then compete in international markets, secondly to provide incentives for local firms to export.
United States as a major developed nation relies heavily on the import of raw materials and the export of finished goods. Because of its significance much weight has been placed on trade policy by elected officials and business leaders who had express power over the imposition of tariffs and the regulation of international trade. As a result they've enacted laws including those that create the tariff rates and implement trade agreements providing remedies against unfairly traded imports and controlling exports of sensitive technology.
France has been relying on its Agriculture mainly and tourism. Since tourism has been rising in France its economy has been shifting on the benefits from the tourism industry and has also been grooming in the Weapons industry having high returns on that.
Germany is heavy dependant on the exports of war equipments mainly in the European block and it has been developing its economy in it with an increased wants of those equipments by the fellow countries as well as other continents.
UK has been involved in agriculture and vast products of manufacturing items like cotton and wool. As it is one o the largest exporters to USA and all forms of trade are being done by UK and it has been growing in its economy day by day.
Because of the significance for American economy and industry, much weight has been placed on trade policy by elected officials and business leaders.
The Constitution gives Congress express power over the imposition of tariffs and the regulation of international trade. As a result, Congress can enact laws including those that: establish tariff rates; implement trade agreements; provide remedies against unfairly traded imports; control exports of sensitive technology; and extend tariff preferences to imports from developing countries. Over time, and under carefully prescribed circumstances, Congress has delegated some of its trade authority to the Executive Branch.Answer 4
- Countries like USA and European countries like UK, Germany and France have been gifted with funds in abundance and numerous experts over the years. USA has been a superpower because of its Industrial superiority over the world. USA has been able to produce the number of experts who had been working in the best high tech components over the years with the support of funding from the government and the private firms. UK, France and Germany were not as competent to US previously but the efforts of the whole continent Europe made it easier for these countries to get more competent in the world market by a free flow of trade, no barriers to entry or exit for the experts and goods. Soon trade innovation made these countries to become one of the superior blocks in the world market. Japan on the other hand had to develop itself after the World War 2 destruction that it had to suffer. Japan went through trade liberalization, got aware of their expertise in the market that is technology that they're superior in. Through small trades with countries and gradually getting more experts with some of the brain drains from other countries helped Japan to build up as giants in the 21st century in world market.
- Gross expenditure on research and development is the payments done by the countries on a products initial making and gross capital formation is the country's net new investments in capital assets.
- Japan has been one of the heavily export dependant nation as their exports grew rapidly in the 17th and 18th centuries; jus under half of all automobiles produced in Japan were exported. It can be viewed in terms of both pull and push factors, the pull factor the pull came from increasing demand for Japanese products as the United States and other foreign markets grew and as trade barriers and in international market countries were reduced. Another pull factor was the price competitiveness of Japanese products. The push factor was the push behind Japan's exports that came from local manufacturers. Many recognized that to reach efficient levels of production they needed to adopt a global approach. Manufacturers concentrated on the domestic market (often protected from foreign products) until they reached internationally competitive levels and domestic markets were saturated. UK's history of trade differs as the British people were heavily dependant on colonization, but their failure in finding the gold deposits in some countries forced them to switch to the plantation of sugar that too depended on slave labor, that is they sold slaves and bought sugar. Then later occupying the Deutschland they got hold of agricultural land and dealt with that later. United States had its roots in European settlements in the 16th, 17th, and 18th centuries. Soon after 1776 when America became United States of America in 230 years it turned out to be highly industrialized farmland with productive farmlands, vast natural resources (especially timber, coal and oil), and an entrepreneurial spirit and commitment to investing in material and human capital. In addition, the US was able to utilize these resources due to a unique set of institutions designed to encourage utilization and extraction. Germany does not have a long history in trade but since 19th Century but it had been favored in the exports of military based products and war equipments since the Hitler era and soon whole of Europe was heavily dependent on that. France has always been dependant on its agriculture in the past that had been benefiting them over the years that later got diversified into weapons industry and tourism that gave a boom to its economy.