The Lewis Model

The Lewis Model Describe the Lewis model as a model for structural change. How does the Harris-Todaro model of rural-urban migration differ from the assumptions and the outcomes of the Lewis model? Economic growth refers to the increasing productive capacity of the country, which results in an increase in productive output and national income. There are numerous theories relating to economic growth and impacts as a result growth. Rural to urban migration has played an important role in growth and has resulted in structural change of an economy. Structural change can be defined as change in the sectors of an economy over a time series. Specific to this The Lewis model demonstrates when underdeveloped economies convert their traditional economic sectors in rural areas into a modern, industrialised urban areas (Todaro, Smith; 2009). The Lewis model is one of two approaches that are based on the structural transformation. The model is based on two sectors and the relationship between the supply and transition of labour and its resulting impact upon development. The Harris-Todaro model focuses upon incomes between rural and urban areas and how they vary, it states that income levels are seen as higher in urban areas which influence migration to the area. Principally, the essence of both models link back to the development of urban areas, and the migration process, however, the assumptions of each model varies which impacts upon the results. The Lewis model, also known as the two or dual sector model, was developed by Nobel Laureate W. Arthur Lewis in the 1950s, nevertheless it is still used 60 years on. There are two main aims of the model firstly the transfer of labour, and secondly the impact upon the modern sector through growth of output and employment. One of the two sectors discussed in this model is the traditional agricultural sector in rural areas. The second sector is the industrialised urban area. Labour supply extracted from the traditional agricultural rural area does not affect its output as it is transferred to the modern industrial urban sector. The marginal product of labour is defined as the change in productivity that occurs from a one unit change in labour. The reason as to why output is not affected is due to the marginal productivity of labour being zero due to the overpopulation, which is a key characteristic in the rural area, and thus leading to a surplus of labour. Urban industrialised sector i s characterised by high productivity. The diagram below of the Lewis model illustrates the impact of the transfer of labour on both the traditional and modern sector. I will first discuss the traditional sector diagram (1a and 1b). Diagram 1a demonstrates that as quantity of labour increases total food production increases. This is until a certain point, where it then stabilises and levels off, due to restrictions at this level by labour. Using the total product curve we can then derive the marginal product of labour and the average product of labour. The dashed line passing through both diagrams illustrate the level of labour accessible in the rural economy. Firstly, as discussed previously due to surplus of labour, the diminishing marginal product of labour is zero which is reflected in the diagram. The average product (APLA) of labour is calculated by using the total product of food and dividing it by the labour available, thus giving us the a level of WA food per person. WA represents the real wage income earned in t he agricultural sector. The surplus labour which is transferred to the modern sector can be illustrated by the red arrows in diagram 1b. The next set of diagrams (2a and 2b) focuses on the modern industrial sector. Diagram 2a illustrates the total product of manufacturing curves for three different levels of labour. The total product of manufacturing is a function of capital (KM) and labour (L). The marginal product of labour can be interpreted as demand curves for labour. WA represents average real income in the traditional sector in 1b, whereas WM is the real income in the modern sector. The supply curve in the diagram is completely horizontal, this suggests a perfectly elastic supply, and this would link well with the surplus labour (shown in figure 1b). The demand curve for labour is negatively sloping this is due to declining marginal product influencing. This is highly likely due to the assumption of the modern sector to employ until marginal physical product is equal to real wage (L1 on diagram). The KM curves also represents demand, it rises from KM1 to KM2 and KM3. This is due to the reinvestment assumption t hat the Lewis model makes, increasing capital stock and in the long run economic growth. The process then continues up until a point where the surplus labour is transferred to modern industrialised sector. After the self sustaining growth process has stopped, labour from the rural sector will only be transferred at a higher cost of lost food production. One of the key changes is that the marginal product of labour is no longer zero in the rural sector. The structural shift of the rural economic reliance to the urban industrial sector is complete. An essential idea to consider before discuss the next model is that rural to urban migration has become extremely high, this could affect the probability of employment opportunities and also the impact upon social services of the developing urban area. A model which can explain this relationship between rural urban migration and rising unemployment is the Harris Todaro model. The model states that income is the primary influence the decision making process of migrants, and that they do not consider the difference between expected and actual income they might receive. If the potential income earned in the urban sector is more than expected income in the rural agricultural sector, the higher income would draw the workers to migrate from rural to urban. This would suggest that the only reason for migration is to get higher paid jobs. This process should indeed result in the income difference narrowing due to the interactions of supply and demand. However, the likelihood of this occurrin g is small, due to high unemployment in urban areas many people have to settle for jobs in the low paid informal sector. Skilled labour and labour with a greater level of education are likely to get better jobs for a good pay in the formal sector. However, it is never guaranteed and many could be over skilled for the job they are doing. Time horizons can be an important factor to consider when making rational decisions. If a worker only considers the current time frame it is highly unlikely that he or she would enter employment at a higher wage than in rural areas. However, the probability would increase if the future likelihood of getting a job is considered. The worker may plan that initially pay is low and the job is fairly low skilled, nevertheless, in time skills improve, connections develop and the job is likely to improve and the probability of a higher income also increases. In this model urban incomes would have to be equated in order for migration from rural to urban to be seen as unbeneficial. Expected income considers two factors; wages and unemployment. If wages in urban areas are higher than rural, the unemployment rate would have to be in accordance to the percentage difference in income. However, there are seen to be more benefits than income in the urban areas, therefore even though unemployment rate may be chronically high people still do attempt to migrate for better quality of life. The diagram above includes two main sectors; agriculture in the rural area and manufacturing in the urban area. The line AA represents labour demand for the agricultural sector and MM for the manufacturing sector. Total labour force is on the horizontal axis from OA to OM. The equilibrium wage is thus at the point where the AA and MM curves cross, E on the diagram. However, if wages in the manufacturing industry is set higher than agriculture at a level WM, the difference from the equilibrium (E) wage rate for agriculture (WA*) is high. When considering the impact of this upon labour it would mean less labour would be able to find jobs in the urban area. From LM to OM to be exact, on the diagram highlights urban area employment, thus leaving OA to LM as rural labour or even unemployment at wage WA**. Nevertheless, many people still chance for employment at a higher wage and migrate to urban areas. The line qq shows the line of indifference between rural and urban sectors for jobs. Th is is calculated by using a formula which shows probability of the likelihood of finding a job in the urban area and the rate at which it is able to equate agricultural income with potential income earned in urban areas (Todaro, Smith; 2009). This results in the equilibrium shifting to point F on the diagram, this lowers the wage from WM bar to WA. However, the labour gap is not reduced, OA to LM is still employment in rural areas or unemployment; as urban labour is LM OM. Thus illustrating the reason as to why unemployment in urban area occurs, people risk migrating in order to achieve a higher wage. However, the probability of finding a well paid job in the formal sector is very low. Describe both models in detail, with graphs Compare and contrast the assumptions and how they shape the outcomes.

Instructor’s Resources Essay

1.Philosophy Behind the Strategic Management Course Strategic Management is the capstone course for business administration majors. Students learn new strategy formulation, implementation, and evaluation concepts and techniques. Students use this new knowledge, coupled with knowledge acquired from other courses, to chart the future direction of different organizations. Strategic Management students analyze firms in different industries, make objective strategic decisions for companies, and justify those decisions through oral or written communication. Students recommend strategies for the organizations studied and specify how those strategies could best be implemented. Strategic Management is a challenging and exciting course for students. Strategic Management is an interesting course to teach because the problems and issues of strategic management cover the whole spectrum of business, including finance, marketing, management, management information systems, production operations, economics, and statistics. Strategic management is an emerging and rapidly developing discipline. Weighing the pros and cons of alternative strategies entails a total enterprise perspective and a talent for judging how all relevant factors fit together. This is quite a contrast to other required and elective courses, which are generally concerned with a narrower, more specialized body of knowledge. Although the features of Strategic Management pose an instructional challenge, there is plenty of opportunity to make the study of strategic management the best course in the business curriculum. There are different ways to teach a good course in Strategic Management. Some instructors supplement the text with a management simulation game; some instructors assign outside readings; some use experiential exercises in class; and some instructors invite guest speakers to class. Most Strategic Management professors use cases. The amount of class time devoted to lecture and case analysis varies considerably among instructors. If you are experienced in teaching Strategic Management, you may have resolved many pedagogical issues to your own satisfaction. However, if this is the first time you are teaching Strategic Management, then the information provided in the next few pages could help you structure your own course. 2.Importance of Strategic Management Cases Strategic Management cases represent the most commonly used method for applying strategic-management concepts and techniques in different types and sizes of organizations. A Strategic Management case typically describes the external conditions and internal situation facing a firm and presents sufficient information to develop, analyze, and choose among alternative  strategies. Strategic Management can be a very exciting course with the use of just text and cases alone. The 29 Strategic Management cases in the Thirteenth edition of Strategic Management represent the most up-to-date compilation of cases ever assembled in a policy text. The cases cover a broad spectrum of business and industry situations. All of the cases in this text are undisguised. The cases are about real organizations and real people. Most of the cases concern well-known firms. Using the cases in this text, students do not have to put themselves back in time to understand the economic and political conditions surrounding the strategic decisions to be made. Students can go to their college library and easily find additional information to supplement all of the cases in this text. Students find current cases more interesting, more exciting, and more realistic than older cases. This fact adds a great deal of life and realism to Strategic Management when the Strategic Management text is used. All of the cases in this text have been class tested to ensure that they are interesting, challenging, and effective for illustrating strategic-management concepts. I believe you will find the collection of cases to complement any approach you use in teaching Strategic Management at the undergraduate or graduate level. You will also find the teachers’ notes in the Case Solutions Manual to be exceptionally well done. The 29 cases in this text are listed along with the respective case authors and their school affiliation. The industries represented by the cases are also given. The cases are listed below in the order in which they appear in the text. The case manual contains information about the topics that the individual cases cover. Cases Included in the Thirteenth Edition of the Textbook 1. Walt Disney Company — 2009, Mernoush Banton 2. Merryland Amusement Park — 2009, Gregory Stone 3. JetBlue Airways Corporation — 2009, Mernoush Banton 4. AirTran Airways, Inc. — 2009, Charles M. Byles 5. Family Dollar Stores, Inc. — 2009, Joseph W. Leonard 6. Wal-Mart Stores, Inc. — 2009, Amit J. Shah and Michael L. Monahanat 7. Whole Foods Market, Inc. — 2009, James L. Harbin and Patricia Humphrey 8. Macy’s, Inc. — 2009, Rochelle R. Brunson and Marlene M. Reed 9. Yahoo! Inc. — 2009, Hamid Kazeroony 10. eBay Inc. — 2009, Lori Radulovich 11. Wells Fargo Corporation — 2009, Donald L. Crooks, Robert S. Goodman, and John Burbridge 12. Krispy Kreme Doughnuts (KKD) — 2009, John Burbridge and Coleman Rich 13. Starbucks Corporation — 2009, Sharynn Tomlin 14. The United States Postal Service (USPS) — 2009, Fred and Forest David 15. National Railroad Passenger Corporation (AMTRAK) — 2009, Kristopher J. Blanchard 16. Goodwill of San Francisco, San Mateo and Marin Counties — 2009, Mary E. Vradelis 17. Harley-Davidson, Inc. — 2009, Carol Pope and Joanne Mack 18. Ford Motor Company — 2009, Alen Badal 19. Kraft Foods Inc. — 2009, Kristopher J. Blanchard 20. Hershey Company — 2009, Anne Walsh and Ellen Mansfield 21. Johnson & Johnson — 2009, Sharynn Tomlin, Matt Milhauser, Bernhard Gierke, Thibault Lefebvre, and Mario Martinez 22. Avon Products Inc. — 2009, Rochelle R. Brunson and Marlene M. Reed 23. Molson Coors — 2009, Amit J. Shah 24. PepsiCo — 2009, John and Sherry Ross 25. Pfizer, Inc. — 2009, Vijaya Narapareddy 26. Merck & Company Inc. — 2010, Mernoush Banton 27. Nike, Inc. — 2010, Randy Harris 28. Callaway Golf Company — 2009, Amit J. Shah 29. Chevron Corporation — 2009, Linda Herkenhoff A question that arises concerning cases is the appropriate number of cases to cover in an academic term. That can vary depending on factors such as whether a Strategic Management simulation game is used, how many written  comprehensive case analyses are assigned, whether the class is divided into teams of students, and whether outside readings, class speakers, or videotapes are used. I personally find 10 cases to be an appropriate amount to cover, as indicated in the course syllabus presented in a few pages. 3.The McDonald’s Cohesion Case This edition features a new Cohesion Case on McDonald’s Corporation. The Cohesion Case allows students to apply strategic-management concepts and techniques to a real organization as chapter material is covered in class. This integrative or cohesive approach readies students for case analysis. The Cohesion Case provides a continuous illustration of the interdependence of parts of the strategic-management process. Assurance of Learning Exercises at the end of each chapter apply concepts to the Cohesion Case. 4.Assurance of Learning Exercises This is about the only Strategic Management text that offers strategic-management Assurance of Learning Exercises both on-line and at the end of chapters. The end-of-chapter Assurance of Learning Exercises are designed to get students involved, to increase students’ interest in the course, and to aid students in learning how to apply important concepts and techniques. The Assurance of Learning Exercises allow students to test newly learned theories, concepts, and analytical techniques. The exercises also help students make the transition from school to work more easily. The Assurance of Learning Exercises can be used for homework assignments, individual class work, group assignments, or extra-credit work. They offer a great change of pace in class. On average, there are five exercises at the end of each chapter. A couple of the exercises apply chapter material to the McDonald’s Cohesion Case. At least one exercise applies chapter material to the student’s own college or university and at least one exercise instructs the student to contact or visit a local business to explore important strategic-management topics. You will not be able to do all of the Assurance of Learning Exercises, due to time limitations in class, but take the time to do as many as possible. I personally devote about 15 minutes of each class to Assurance of Learning Exercises and assign students one exercise homework assignment for each class. Ask students to put answers to the Assurance of Learning Exercises either in their notes or on a separate sheet of paper rather than writing in the text itself. This would present a problem in usage of the text in later semesters if answers to the exercises were written in the text. The Assurance of Learning Exercises Included in the Thirteenth Edition Chapter 1: Exercise 1A: Gathering Strategy Information Exercise 1B: Strategic Planning for My University Exercise 1C: Strategic Planning at a Local Company Exercise 1D: Getting Familiar with SMCO Chapter 2: Exercise 2A: Evaluating Mission Statements Exercise 2B: Writing a Vision and Mission Statement for McDonald’s Corporation Exercise 2C: Writing a Vision and Mission Statement for My University Exercise 2D: Conducting Mission Statement Research Chapter 3: Exercise 3A: Developing an EFE Matrix for McDonald’s Corporation Exercise 3B: The External Assessment Exercise 3C: Developing an EFE Matrix for My University Exercise 3D: Developing a Competitive Profile Matrix for McDonald’s Corporation Exercise 3E: Developing a Competitive Profile Matrix for My University Chapter 4: Exercise 4A: Performing a Financial Ratio Analysis for McDonald’s Corporation Exercise 4B: Constructing an IFE Matrix for McDonald’s Corporation Exercise 4C: Constructing an IFE Matrix for My University Chapter 5: Exercise 5A: What Strategies Should McDonald’s Pursue in 2011-2013? Exercise 5B: Examining Strategy Articles Exercise 5C: Classifying Some Year 2009 Strategies Exercise 5D: How Risky Are Various Alternative Strategies? Exercise 5E: Developing Alternative Strategies for My University Exercise 5F: Lessons in Doing Business Globally Chapter 6: Exercise 6A: Developing a SWOT Matrix for McDonald’s Exercise 6B: Developing a SPACE Matrix for McDonald’s Exercise 6C: Developing a BCG Matrix for McDonald’s Exercise 6D: Developing a QSPM for McDonald’s Exercise 6E: Formulating Individual Strategies Exercise 6F: The Mach Test Exercise 6G: Developing a BCG Matrix for My University Exercise 6H: The Role of Boards of Directors Exercise 6I: Locating Companies in a Grand Strategy Matrix Chapter 7: Exercise 7A: Revising McDonald’s Organizational Chart Exercise 7B: Do Organizations Really Establish Objectives? Exercise 7C: Understanding My University’s Culture Chapter 8: Exercise 8A: Developing a Product-Positioning Map for McDonald’s Exercise 8B: Performing an EPS/EBIT Analysis for McDonald’s Exercise 8C: Preparing Projected Financial Statements for McDonald’s Exercise 8D: Determining the Cash Value of McDonald’s Exercise 8E: Developing a Product-Positioning Map for My University Exercise 8F: Do Banks Require Projected Financial Statements? Chapter 9: Exercise 9A: Preparing a Strategy-Evaluation Report for McDonald’s Corp. Exercise 9B: Evaluating My University’s Strategies Chapter 10: Exercise 10A: Does McDonald’s Have a Code of Business Ethics? Exercise 10B: The Ethics of Spying on Competitors Exercise 10C: Who Prepares a Sustainability Report? Chapter 11: Exercise 11A: McDonald’s Wants to Enter Africa. Help Them. Exercise 11B: Does My University Recruit in Foreign Countries? Exercise 11C: Assessing Differences in Culture Across Countries Exercise 11D: How Well Traveled Are Business Students at Your University? 5. Description of the Supplements for the Thirteenth Edition Supplements are available for adopting instructors to download at www.pearsonhighered.com/irc. Registration is simple and gives the instructor immediate access to new titles and new editions. Pearson’s dedicated technical support team is ready to help instructors with the media supplements that accompany this text. The instructor should visit http://247.pearsoned.com/ for answers to frequently asked questions and for toll-free user support phone numbers. Supplements include: Instructor’s Manual—This manual includes lecture objectives, outlines, and answers to all end-of-chapter material and Assurance of Learning exercises. In addition, several supplemental Assurance of Learning exercises and answers are included. Case Instructor’s Manual—this solutions manual includes abstracts, discussion questions, and audits for each case. PowerPoint Presentations – The PowerPoint slides highlight text learning objectives and key topics and serve as an excellent aid for classroom presentations and lectures. Test Item File – This test bank features for each chapter on average 50 True/False questions, 50 Multiple-Choice questions, and 10 Essay questions with page references and difficulty level provided for each question. The Test Item File has been written specifically for this edition and is provided in MS Word, so that instructors can easily incorporate select questions into their own tests. TestGen (test-generating program) – The test bank is also available on TestGen, a test-generating program that allows instructors to add, edit, or  delete questions from the test bank; analyze test results; and organize a database of exams and student results. Videos on DVD—The DVD contains video segments that illustrate the most pertinent topics in management today and highlight relevant issues in the news, demonstrating how people lead, manage, and work effectively; ISBN 0-13-612547-6. Video Guide – The video guide provides a brief summary of each clip and suggested questions for discussion followed by possible answers. MyManagementLab – MyManagementLab provides help beyond homework with a range of assessment options and tutorial resources that help students learn from their mistakes. Allowing you to teach a course your way, use this as an out-of-the-box resource for students who need extra help, or take full advantage of its advanced customization options. For more information, go to www.mymanagementlab.com.

Created in the Image of God Essay

The theme â€Å"Created in the Image of God† is saying that everyone is special and no human life should be wasted because God loves us all equally and has a plan for everyone. This theme also explains that everyone is created differently for a reason. The song Don’t Laugh at Me is about the people in the world that are made fun of and Mark Wills is saying that in God’s were all the same. The song Don’t Laugh at Me represents the theme â€Å"Created in the image of God† because Mark Wills is explaining that God made us all different for a reason and he loves us all equally and we shouldn’t be treated different because we have braces or because we are blind; we should all be treated the same. The theme of Narcissism is a self-centered love. Narcissism is when you love the way you look more than you love others, it is being obsessed with the way you look. The TV show Jersey Shore is a show where there are eight people living in a house and they go partying every night and they are all obsessed with the way they look. The TV show Jersey Shore represents the theme of Narcissism because the cast members of Jersey shore are all obsessed with the way they look, they go to the gym every day, they spend way too much time on their hair and on their clothes. The theme â€Å"When Love Goes Wrong† is explaining to us when we should know that your relationship is not good anymore and if we realize these things happening in our relationship, we should get out of the relationship. The song The Best Days of Your Life is about a guy cheating on his girlfriend and he got the other girl pregnant. His girlfriend is now trying to get over him. The song The Best Days of Your Life represents the theme â€Å"When Love Goes Wrong† because the couple in the song, their relationship was ruined when the boyfriend cheated on his girlfriend. The theme of inclusivity is including everyone and making them feel welcome even if you aren’t best friends with them. The picture I chose of children playing shows the three children sitting down playing and one child standing and it represents the three children letting the one child play with them. The picture of children playing represents the theme of Inclusivity because these children are letting the one child play with them even though they may not like that child, they are being nice and letting him play with them, because they are doing the catholic thing to do by letting him play with them.

A Search for Hope and Meaning - 729 Words

The play A Raisin in the Sun by Lorraine Hansberry is systematically divided into three distinct progressions all of which vividly portray its ultimate theme. The first part of the play reveals the many different dreams that the various different family members have with the 10,000 dollar inheritance. Walter dreams of starting a liquor store. Beneatha dreams of going to medical school and Mama dreams of buying a new house. The second part of the play speaks about the loss of the family money and the loss of hope over their dreams. Finally, the third part is about the perseverance of the family even through their terrible hardship and their fight for pride even in the hardest of times. It is in the middle of the second and third progression that the conversation between Beneatha and Joseph Asagai takes place. The conversation between Beneatha and Joseph Asagai symbolizes mankinds inner turmoil through hardship. That being, does one look hopefully towards the future after hardship or d oes one loose all hope and accept fate as reality. This conversation fits perfectly with the structure and theme of the play. The final dialogue between Beneatha and Asagai comes right after the family gets word that all of the inheritance has been lost. Hansberry placed this dialogue at this point in the play intentionally. Up until this point in the play there have been two mindsets and life views of the Youngers. The first, which is displayed before Walter loses control of the money, isShow MoreRelatedVictor Frankls Life and Work Mans Search for Meaning Essays1390 Words   |  6 Pagesback at his home in Vienna. He later reconstructed his book and wrote a different book, â€Å"Man’s Search for Meaning† in nine days. Viktor Frankl later died on September 2, 1997, of heart failure. 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