Response Journal Essay Example | Topics and Well Written Essays - 250 words - 1

Response Journal - Essay Example The explosion also killed 11 people instantly leaving several others seriously injured and in addition to blackening the Gulf coast (Taylor par. 2). It is two years since the disaster occurred and its devastating effects are still being felt. Experts reveal that all oil, approximated at about five million barrels, leaked spreading from the coast of Mexico to Florida. Houston is arguably the place that felt most of impacts of the incident which affected mainly wildlife and the environment, thereby raising ethical issues (Taylor par. 4). The main ethical problems present in this situation were to do with the destruction of the environment and wildlife by humans in the Gulf of Mexico and its environs. For instance, environmentalists reveal that the spill interfered with aquatic life as several marine animals were killed as a result. The other ethical issue that arose is that BP and its subcontractors were only concerned with cost saving without adequately assessing the hazardous risks. This in itself becomes unethical issue since BP concentrated only on cost saving and failing to put measures in place to ensure that their drilling processes were safe. The BP oil spill is also seen as an ethical issue for the reason that the company failed to minimize the impacts of the disaster for all those who were affected. The spill interfered with businesses and coastal beaches that are dependent on fishing and tourism. Furthermore, the oil spill was not only a health concern for residents of Houston but also to coastal businesses that lost millions of dollars due to the disaster. Oil that spilled underwater also affected all the aquatic animals throughout the gulf raising ethical concerns (Taylor par.6). In conclusion, the BP oil spill problem seems to have been caused by negligence on the parts of engineering who were building the deep-water horizon. To solve this problem, BP should always adhere to ethical practice when handling

Free market in the economical world and business Assignment

Free market in the economical world and business - Assignment Example Explain how the system works to allocate resources The allocation of resources depends on supply and demand of those resources in a free market economy. The buyers and sellers, or their agents undertake all the exchanges and transaction voluntarily (Friedman, 2003: 36). Both the seller and the buyer accept the transaction because both expect to gain from it. Consequently, the two may repeat the exchange conditions the next time (or refuse to transact) if their expectation was met (or disregarded) in their past transactions. Ultimately, the reason for engaging in the transaction is that both the parties expect to benefit from the exchange. This is the main reason that distinguishes the free market from the free trade of the mercantilist period, expounded by French essay-writer Montaigne. According to Montaigne, the mercantilists held that in any trade transaction, there must be a loser and a winner: the loser is the â€Å"exploited party† while the winner is the â€Å"exploite r†. The mercantilists’ belief is invalid because the eagerness and even willingness of both the sellers and the buyers mean that they expect to benefit. Translating the trade of free market in modern game-theory jargon, transactions are a win-win exchange. They result to a positive sum rather than the conventional â€Å"negative sum† or â€Å"zero sums† game. Two factors determine the availability and allocation of resources in a free market: the value of the resources according to each participant, and the bargaining skills of the participants. How the buyers value the resources comparative to the other resources they could buy largely determine the distribution and allocation of these resources in the market (Friedman, 2003: 82). The exchange terms, or prices, depend on the quantity (measure) of the particular resource in the given market set up. Ultimately, the allocation of the resources depends on their availability measure in the market in relation t o the evaluation of the buyers. In summary, resource allocation relies on their demand and supply. In the supply of a resource, an increase in its price reflects an increase in demand on the mind of the buyers resulting to more money bidding for it, thus the price of the resource shoots up. The reverse will occur if the price, and thus the demand, for the resource decrease. In contrast, the buyer’s evaluation is that the increase in supply of a resource brings the value of the resource down. The reverse occurs when the supply of the resource decreases. From the demand and supply effects on the allocation of resources, the free market incorporates a highly interactive and complex pattern of transactions. Arguments in favor of this system The manner in which the free market works to allocate resources has come under debate and criticisms by economists. Nevertheless, the free market has four distinct arguments that enforces it existence, and which are discussed accordingly. The first argument is the efficiency of allocating scarce resources in the economy. This argument relates to the neoclassical economic tradition of benefits for all the participants in the transaction. In a completely free market, supply of goods and services matches their demand. The participants maximizes their benefit in the exchanges, everybody is a