Competition Essay Example | Topics and Well Written Essays - 1250 words

Competition - Essay Example Competition is discussed well below. He stated that "China has one of the largest labour forces in the world with a population of nearly 1.3 billion, over half of whom were in employment in 2002. About two-thirds of them are rural workers. China also has one of the highest labour participation rates in the world (over 80 per cent). As one of the largest exporting countries and the second largest beneficiary country of foreign direct investments (FDIs), China presents itself as one of the economically(Slavin, 1989) most important nations in the world. However, China's increasing interdependence with the world economy has been achieved through a period of political, social and economic change over the past twenty-five years." Because the factory laborers from China are paid very much lower per hour as compared to factory labourers that are doing the same jobs in factories located in the United States, United Kingdom and other European countries, there is a strong demand for the United Kingdom companies to outsource the m anufacturing of goods to china. This means that the United Kingdom company is encouraged to put up a manufacturing facility to produce cars and other high value finished goods in China and other countries where labour rates per hour. Many companies have reduced its workforce because some of the work can be done by the computer. Computer generated work is, in most cases, replaced by the computer.Many companies have downsized their work environment(Irwin, 2000) by replacing many human being processed work with a computer or robot. This scenario has erupted into lay-offs as well as early retirement for currently working employees because the company wants to save on salaries that will be paid on a regular basis. The unemployment rate has been increasing because. According to Malthus, the population will increase faster arithmetically as compared to the growth rate of the basic food which is geometrically. The increase in the population will result, in all probability, an increase in th e unemployment rates. COMPETITION. Competition is one of the pillars of capitalism because it will stimulate innovation, encourage efficiency or drive down prices. Competition can, in some instances may equally lead to waste because a job could be repeated and thereby increased costs and prices in some circumstances. In the supply and demand curve in economics, if there is so many competing products that are similar, then the customer has more choices to make. The competitors will then try to lower prices in the hope of cornering juice customers. On the other hand, in a monopoly economic situation, the sole supplier of goods can jack up the sales prices to generate profits and increase the sales. The customers have no other alternative but to follow. On the other hand if the demand for a product increases because of lack of finished products, then the prices of goods sold will increase for the customers will prefer to spend more and have the goods now or today.D. G. Goyder stated that (1998) "Competition is the relationship between any number of undertakings which sell goods or services of the same kind at the same time to an identifiable group of customers. Each