Essentials Of Investments
August 5th, 2008
Question: 2 questions economic if anyone knows these HELP?
1.What are the key factors that led to the rise of the labor movement, the attempts of employers to resist such unionization, as well as the reasons for the overall decline in union membership that has occurred in recent years.
2.explain why investing is an essential part of the free enterprise system and discuss the different Types Of Investments and the advantages and disadvantages of each (including bonds, certificates of deposit, money market mutual funds, and stocks).
Please f anyone can help me figure out these two questions I read my book already and google it but im just not finding any helpful info I have 100 question test and I am so close to being done but im stuck on these two please if anyone can help its very appreciated thankyou!
Answer: Unions drastically lower the overall output of the production stages. Unions have over lived their need and only hold back the corporations that still have them. The saying “You get what you pay for” DOES work, however if you expect a raise each year because you are in a union, will people work even harder to get a raise next year, NO because they already know they are going to get one. Most Union workers are overpaid and labor is one of the highest, if not the highest cost of any business.
Okay, I will put SAVING and investing into one to try and help you understand it.
As demand rises, companies need to expand. However, to expand the companies need money. The fastest way for a company to increase its capital is to go public and allow people to buy stock in their company. They can then use this cash to build more factories, expand retail stores, open new branches, and increase overall income. Bonds are a way of a company to get money without having to sacrifice ownership of the company to the public. Money Market Mutual funds is ownership in many many companies without actually investing in the company. The Fund gains money from you and the other members and uses it to buy shares in many different companies. This means that if one company in the fund goes down, another might be going up, therefor your wealth raises as the stock market raises.
So investing is needed in a free enterprise system to aid in expanding and growth. If everyone just spent their money instead of investing it, smaller companies would not get the capital needed to compete with the larger companies. This would lead to monopolies, loss of job growth, less taxes collected, ect. As long as we are investing in newer ideas and technologies, we will always have long term growth.
Hope all that helped!
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