Essay on Thomas Hobbes Social Contract Theory - 982 Words

In Leviathan, Thomas Hobbes lays out the hypothetical principal of the state of nature, where human it-self is artificial. It is human nature that people will not be able to love permanently, everyone against everyone power between the strongest. In this nation-state you must be the strongest in order to survive (survival of the fittest). In order to survive there are laws we must follow, to insure of our security because of fear. We were able to suppress our fear, by creating order, to have more order; we must have security, so the social contract appeared. Thomas Hobbes implies to the idea of social contract to resolve the problem of war and disorder. If social contract were not created, there would be no law. If there’s no law, the†¦show more content†¦The only thing that kept us moving is our desire. Thomas Hobbes implies, â€Å"The cause of whereof is that the object of man’s desire is not to enjoy once only, and for instant of time, but to assure forever the way of his future desire.† ( pp,57) We must insure that we can satisfy our desire today, tomorrow and the day after that. The desire attained does not satisfy our hunger. Humans are like scavengers wanting more and more power. By achieving such desire, we are securing the power to live well. To make sure to secure this power, we must be able to do something about it and allow the power to grow. Sometimes we might want to achieve the same desire. Hobbes input the hypothetical idea, â€Å"From this equality of ability ariseth equality of hope in the attaining of our ends. And therefore, if any two men desire the same thing, which nevertheless they cannot both enjoy, they become enemies†¦Ã¢â‚¬  (page 75) In this condition everyone is against everyone. In order to survive, we must compete. There is no security to any of the men. Everyone wants the same thing, there’s competition which turn into war. Hobbes applies to his theory that, â€Å" And consequently it is a precept, or general rule, of reason that every man ought to endeavor peace, as far as he hope of obtaining it, and when he cannot obtain it, that he may seek and use all advantages of war.† ( pg 80) If we cannot seek peace and follow it, the only thing left for us to do is to defend ourselves. It’s like predatorShow MoreRelatedSocial Contract Theory Thomas Hobbes2009 Words   |  9 Pag esSocial contract theory, nearly as old as philosophy itself, is the view that person s moral and/or political obligations are dependent upon a contract or agreement among them to form the society in which they live. The Social Contract is largely associated with modern moral and political theory, and is given its first full exposition and defense by Thomas Hobbes in his piece, Leviathan. After Hobbes, John Locke and Jean-Jacques Rousseau are the best known proponents of this influential theoryRead MoreThomas Hobbes And The Social Contract Theory1088 Words   |  5 PagesConstitution has been kept the same. The Leviathan, Two Treatises, and the Declaration of Independence serve as underpinnings of the Constitution to keep and protect our freedoms. Thomas Hobbes wrote the Leviathan in the early 1640 s. Hobbes Leviathan played a part of social contract theory. The social contract theory is a voluntary agreement among individuals that which organized society is brought it into being and invested with the right to secure a mutual protection and welfare to regulate theRead MoreEssay on Thomas Hobbes and the Social Theory Contract597 Words   |  3 PagesPhilosopher, Thomas Hobbes and the Social Theory Contract for a clear understanding of the issues. The Social Contract Theory is the basis for the Declaration of Independence and the guiding theories for the Unite States Government as well as many other governments, such as the European Union, England and France, to name a few. The theory is about why people choose to give us some of their rights and powers in order to form a government. That government has a series of purposes. Thomas Hobbes theorizedRead MoreThomas Hobbes Social Contract Theory Essay895 Words   |  4 PagesThomas Hobbes creates a clear idea of the social contract theory in which the social contract is a collective agreement where everyone in the state of nature comes together and sacrifices all their liberty in return to security. â€Å"In return, the State promises to exercise its absolute power to maintain a state of peace (by punishing deviants, etc.)† So are the power and the ability of the state making people obey to the laws or is there a wider context to this? I am going to look at the differentRead MorePolitical And Social Contract Theory By Thomas Hobbes951 Words   |  4 PagesSocial contract theory refers to the view that peoples’ political and moral obligations are contingent on an agreement or contact among them to constitute a wholesome society where they can live in harmony. It is often associated with contemporary political and moral theory and was given the first comprehensive exposition by Thomas Hobbes. Hobbes was fearful of man’s violent and lawless nature, perhaps due to his experience during the Puritan revolution. He was of the conviction that self-preservationRead MoreThe Social Contract Theories Of Thomas Hobbes And John Locke1210 Words   |  5 PagesMahogany Mills Professor: Dr. Arnold Political Philosophy 4 February 2015 Compare and contrast the social contract theories of Thomas Hobbes and John Locke In the beginning of time, there was no government to regulate man. This caused a burden on society and these hardships had to be conquered, which is when a social contract was developed. The social contract theory is a model that addresses the questions of the origin of society and the legitimacy of the authority of the state over an individualRead MoreThomas Hobbes And John Locke s Theory Of Social Contract Theory1449 Words   |  6 PagesIn this essay, I argue contemporary social contract theory extends itself beyond politics and into philosophy, religion, and literature. I begin by defining social contract theory and explaining the different perspectives of English philosophers, Thomas Hobbes and John Locke. From there, I will introduce Dostoyevsky’s work, Grand Inquisitor, and conduct an analysis of the relationships between the Grand Inquisitor and his subjects as well as Jesus and his followers. Using textual evidence and uncontroversialRead MoreThomas Hobbes and John L ockes Varying Presentations of the Social Contract Theory1499 Words   |  6 PagesBoth Thomas Hobbes and John Locke are well-known political philosophers and social contract theorists. Social Contract Theory is, â€Å"the hypothesis that one’s moral obligations are dependent upon an implicit agreement between individuals to form a society.† (IEP, Friend). Both Hobbes and Locke are primarily known for their works concerning political philosophy, namely Hobbes’ Leviathan and Locke’s Two Treatise of Government. Both works contain a different view of a State of Nature and lay out socialRead More Force, Morality and Rights in Thomas Hobbes and John Lockes Social Contract Theories1632 Words   |  7 Pagesand Rights in Thomas Hobbes and John Lockes Social Contract Theories Throughout history, the effects of the unequal distribution of power and justice within societies have become apparent through the failure of governments, resulting in the creation of theories regarding ways to balance the amount of power given and the way in which justice is enforced. Due to this need for change, Thomas Hobbes and John Locke created two separate theories in which the concept of a social contract is used to determineRead MoreThe Social Contract Theory Essay1249 Words   |  5 Pages1a. The Social Contract Theory According to the Social Contract Theory, it suggests that all individuals must depend on an agreement/ or contract among each person to form a society, in which they live in. The concept emphasizes authority over individuals, in other words, the social contract favors authority (e.g. the Sovereign) over the individuals, because men have to forfeit their personal right and freedom to the government, in exchange for protection and security, which I will further elaborate

Internationalization Process is Crucial for Economic Development

Question: Describe about the term for Internationalization Process is Crucial for Economic Development? Answer: Introduction Primary theme for writing this diary is to evaluate success of UK economy in attracting FDI in the market. This paper aims to evaluate the way UK government, policies and system promote industrial growth and development. Reason for selecting this topic for analysis is raising importance of FDI in the market, as studying FDI facilitates in evaluating economic success of a region, increasing FDI helps in market growth, money inflow, and societal development, job opportunities, increasing income and GDP. Studying FDI scenario of UK will also facilitate in understanding the degree of foreign equity in the region, degree to which operational restrictions are maintained, it also facilitate in evaluating the degree of equality and investment opportunity in the market. Therefore writing on this topic will help in understanding how strong are investment roots of UK? Apart from this it will also help in understanding the concept better, its advantages, disadvantages, it will help in remaining focus to one particular strategy of internationalization and collecting in-depth knowledge on the same. There are different types of strategies that organizations might opt to enter into new market; further selection depends on several environmental and internal factors. For instance, regulatory system of a nation also impact international entry within region. Apart from this, economic opportunities, social segment, culture, currency strength, company position in the market, industry, size, financial position also impact final decision. Among several method of market entry, FDI is one of the most renowned and accepted mode by investors. According to IMF explanation to FDI, it can be defined as an investment process that aims towards long term achievement and development from the residents of country but residing in other country. This is a cross border investment method in which minimum of ten percent stakes is owned by any person or organization from another nation. FDI investment helps a country in several ways; it is win-win type investment method if implemented properly with adequa te regulatory system. There are different types of FDI investments that can be done a company, it include horizontal FDI, Vertical FDI and Platform FDI. FDI investment are managed, planned and controlled by government of a nation, however the degree of control varies from region to region. This analysis will be presented in four parts of a dairy, plan is to present four parts in such a coherent manner that all of them help in preparing a concrete paper that can be used by readers to extract valuable information on FDI in UK and its development. First part will include analysis on the role of FDI in stimulating growth and productivity in UK market, this analysis will help in understanding the benefits of FDI in UK market, the way this tool helped in its development. Second part of dairy will include information on determinants of FDI, it aims to understand the way London has become a crucial determinant of location for FDI, how there is rising investment in one particular region and why is it happening, it will help government in planning FDI investments and regulations in more better forms so that benefit can be taken by all regions in UK. Third part of the dairy aims to evaluate determinants of FDI in UK region, this article is aimed towards evaluating problems and ba rriers in FDI market UK, reasons for present problem in the market, why there is still problem in investing in UK, who are facing this problem and why etc. will be answered with the help of article mentioned in third dairy. Finally the fourth dairy aims to present a comprehensive framework to ensure better success in UK market through FDI, strategies that can be adopted by government to ensure higher FDI inflows in UK market; therefore the fourth selected article is primarily based on recommendation platform for UK government. Studying FDI helps in understanding the capital inflow growth rate in the region, this form of investment facilitates in economy during financial crisis, it is a stable form of investment in comparison to other forms such as debt flow, portfolio equity etc. FDI facilitates economy in its growth without giving whole authority to international player; it helps in better exchange of information, technology and resources by ensuring benefits for both the parties involved in the process. This tool is being used by MNCS as a strategic tool for business development. Diary Entry 1 How FDI contributed in growth of UK economy Date of Input 8th March, 2016 Reference of the source (Harvard style) Harris, Moffat, Richard, John , 2013. The Direct Contribution of FDI to Productivity Growth in Britain, 19972008. The World Economy, [Online]. 36/6, 713-736. Available at: https://onlinelibrary.wiley.com/doi/10.1111/twec.12059/abstract [Accessed 08 March 2016]. www.deloitte.co.uk/. 2016. Foreign direct investment in UK. [ONLINE] Available at: https://www.deloitte.co.uk/investingintheuk/pdfs/india/uk_investingintheuk_in_twoforeigndirectinvestmentintheuk.pdf. [Accessed 08 March 16]. Discussion of the content of the articles There are two articles refereed to prepare content for the first dairy. The first article written by Harris and Moffatt focuses on evaluating the contribution made by FDI in improving growth and productivity in UK market. It include information on productivity, industrial restructuring and its impact, role of foreign owned firms in Britain, here data has been collected for TFP of all plants in Britain from year 1998 to 2007 analysis was done using Cobb-Douglas log-linear production function. Major findings of the paper states that foreign owned industries and plants contribute relatively more to productivity growth in comparison to UK owned plants in the region. In-depth analysis shows that large portion of contributions are made by firms that were UK owned in year 1997 but later owned by foreign player by 2007. Companies were improving their productivity not by improving production system at their present plant rather they were more focused towards opening of new high productivity p lant in UK. Another article is a research report made by Deloitte Research Company, this paper is very simple and clear, it aims to discuss present scenario of FDI in UK market, which is essential to build structure for an idea. It includes sector wise analysis on which all industries have made contribution through FDI and how much, also primary regulations for market entry through FDI policy in UK. This article will help in understanding true picture of FDI in UK market and areas that needs development. In UK software industry is a major contributor, followed by advance engineering and many other industries. Critical review of the content of the articles using academic sources Selected two articles for first dairy helped in preparing a rough idea about present level of FDI in UK market. With the help of data present in the second article, it is clear that UK provides a free and liberal market for foreign investment that laid enormous market opportunities. There are very low barriers or restrictions imposed on several industries. According to data given on government websites of UK, there was increase of FDI inflow by 9 percent in the year 2014, it also crossed total value of 1 trillion. UK is the third largest FDI market globally after US and China. In the year 2014 UK received 909 FDI investment projects, it is the largest attractor of investment in Europe market with 28 percent contribution made in the year 2014. It is expected that UK market will perform strongly in FDI segment. In the year 214, there was reduction in global FDI and even in European market but there was 50 percent increase in FDI inflow in UK. According to another article foreign firms contributes higher productivity as to ensure better return on their cost investment, they also possess characteristics that help them in getting cost advantage, it include better production, marketing, specialized knowledge, technological advancement etc. It also highlights areas of difficulty faced during implementation such as miscommunication between management and labour due to cultural differences. This paper analyses change in total factor production contribution by FDI firms in UK, in terms of size, industry and location also. Initially it was found that UK based firms were making large contribution, however they were larger in size also, further analysis breaks firms into equal sizes which states FDI owned firms made relatively higher percentage of contribution. In terms of industry foreign owned firms contribute larger in manufacturing industry in comparison to service. Countrywide analysis shows higher contributions made by French owned firms, followed by German owned, Dutch owned firms, however Japanese owned firms were performing bad in FDI market. However, present analysis on Data shows that USA is the biggest FDI contributor in UK with 41.5 percent, followed by Netherland, France, Germany and Spain. Diary Entry 2 Determinants impacting FDI inflow in UK Date of Input 8th March, 2016 Reference of the source (Harvard style) Hilla, Mundaya , Stephen, Max , 1992. The UK Regional Distribution of Foreign Direct Investment: Analysis and Determinants. Regional Studies, 26/2, 535-544. Dimitropouloua, McCannb, P. Burke, Dimitra, Philip, Simon , 2012. The determinants of the location of foreign direct investment in UK regions. Applied Economics, 45/27, 3853-3862. Cavallaria, d'Addonab, Lilia, Stefano , 2013. Nominal and real volatility as determinants of FDI. Applied Economics , 45/18, 2603-2610. Discussion of the content of the articles (in your own words) Articles included in this dairy presents determinants of FDI, first article selected for this paper states several variables such as cultural factors, GDP growth rate, labour laws and endowments, trade agreements, trade openness, availability of resources as factors to FDI inflow. According to research there are intangible firm characteristics such as technology, knowledge, managerial skills that promote FDI. Further, research and development and advertisement also plays significant role in FDI inflows. According to researcher location has been seen as major determinant to market entry in UK market, therefore it is crucial to understanding regional distribution of FDI in UK market. It also includes financial incentive and access to market as motivating factors for FDI inflows. Researchers have also selected specific elements to evaluate their impact on FDI inflows, another article selected for this dairy aims to evaluate impact of country specific sources such as interest rate, exchange rate on FDI inflows, findings of the paper shows strong correlation between real volatility of exchange rate on investment decision or market selection for FDI. Further, interest rate also impact FDI decision by impact the value of investment to be made. Regional analysis also helped in understanding impact of location as an influential element, on the basis of 2000 observations done by the researcher, regional specific specialization hold strong impact on influencing FDI decision and location. This research paper highlights example of London, this region is highly benefitted from immigration, and there is availability of better resource, knowledge and technology which helped in increasing FDI in service sector in this region. Critical review of the content of the articles using academic sources Research on evaluating determinants of FDI based on Bayesian Model Averaging helped in understanding that factors which might look important might not play such vital role in expansion, for example cost, institution system in country, regulation etc., rather factors like GDP-related variables, cultural distance factors and labour endowments impact decision significantly. Government policies plays minimal role in attracting FDI. Factors that impact firms revenue, cost and growth influence selection of region for investment. Different in-depth investigations made through other researches also highlights the same, for example, an increase in supplier access in UK will lead to increase in FDI by 2 percent in Central European regions but 1 percent in eastern European countries. Analysis on different types of FDI in these two markets helped in understanding that Central European countries specialize in upstream industries whereas Eastern European countries are less involved in production p rocess. UK is an established market, companies enter this market to reap benefit of population, high income generation, availability of technology, resources etc. According to research reports, inward FDI is facilitating in increasing job opportunities, in the year 2014 85000 new jobs were created through FDI inflows. It facilitates in increasing investor confidence as it helps in bringing new projects in the market. Government also focuses on ensuring the all sectors get benefitted through these investments, it also facilitates in increasing RD within market. On regional wise analysis, London has highest number of FDI projects in UK. Research was conducted using multinomial logit model and conditional logit model to evaluate factors that impact locational choice for FDI. According to authors, choice of location is planned using three theories which include international business management, international trade theory, and traditional economic geography. This research paper also evaluates the grant effect and shows data to prove diminishing impact of higher grants since 1992. Articles selected for second dairy provides analysis on various external, internal, organization oriented, regulation oriented and resource focused factors that help in growth of business. Different factor analysis shows impact both environmental and internal factors on FDI decision in UK, location for project. Diary Entry 3 Problems encountered by FDI market UK Date of Input 8th March,2016 Reference of the source (Harvard style) Giles, Chris; Cadman, Emily. 2016. Economists forecasts: Brexit would damage growth. [ONLINE] Available at: https://www.ft.com/intl/cms/s/0/1a86ab36-afbe-11e5-b955-1a1d298b6250.html#axzz42IGJklBr. [Accessed 08 March 16]. Girma, Wakelin, Sourafel, Katharine , 2007. Local Productivity Spillovers from Foreign Direct Investment in the U.K. Electronics Industry. Regional Science and Urban Economics, [Online]. 37/3, 399-412. Available at: https://www.researchgate.net/publication/222607178_Local_Productivity_Spillovers_from_Foreign_Direct_Investment_in_the_UK_Electronics_Industry [Accessed 08 March 2016]. Discussion of the content of the articles Articles selected for third dairy include analysis of Brexit on FDI scenario in UK, will it impact the investment inflow adversely in the market. According to article in FT.com recent uncertainties in UK market instigate worrisome environment among investors. There is chaos in the market, investors have fear that such decision might change investment composition in the market, as presently UK is among top three market for FDI, it has high inflow, capital and projects, however analysts says that parting of UK from EU might give advantage to Germany. As UK has high hopes from Chinese markets, so it might shift their interest towards German market. India is another key investor in UK market, which is not showing favourable signs with decision of Brexit. This article imposes questions and warnings on economic condition of UK, whether they should exit from EU, will it be feasible for financial market of UK or not. Another article focuses on challenges encounter in UK market due to increased FDI from international market, there is problem of production spillovers. This article is based on data collected from 48 industries in UK, further this article also states that FDI does not ensure benefit to local firm, degree of benefit depend on ability of the firm. This spillover effect can be on wages, technology, and knowledge sharing also; impact is also dependent on absorbing capacity of the region. Apart from this, FDI also have strong impact on labour market and industry competitiveness. Impact of FDI varies from market to market, depending upon several factors. Critical review of the content of the articles using academic sources Analysis on the first article highlights on importance of Brexit, this is a very dicey decision to be taken by the government. According to various authors, Brexit decision might impact UK productivity adversely. As per economist leaving EU will not be feasible for UK, it will impact medium and long term outlook of the region adversely, around 8 to 9 percent. It will impact stability of the market; there will be decrease in investment due to fear, reduction in household expenditure is also expected. Further, it will also influence foreign exchange market, impact volatility that directly influences FDI decisions from Asian markets. It will also impact choice of international companies as Britain for investment in EU; they will prefer some other regions within EU which will impact capital inflows negatively. There will be less inward migration, as talented workforce from European market helped in UK growth. This decision will impact market competitiveness, freedom, increase risk and sp eculations about UK market. Analysis on other papers and books shows that increasing FDI, if not managed properly might impact local market growth adversely, it is crucial to get benefit from resources brought by capital inflows in the market. Foreign investment is crucial for the market but management need to preserve local welfare first. There is problem of de-capitalization in the market, as it might lead to transfer to profit to host country; however UK being powerful nation, they have strong policies to maintain harmony between investor and home country organizations. During FDI transactions, economy needs to preserve environment, economy and human rights of nationals. Critics state that so call technology transfer might distort economic position of a region, information protection is required. With slowing business, challenging economic scenario, changes can be noticed in investment patterns of Chinese investors in UK. There is fall in non-financial FDI segment in UK. Other barrier to FDI inflow is econom ic market as some industry involve high risk whereas some involve low risk, therefore investment remain uneven in different segments. Present shaken position of the economy is impacting investors confidence adversely; there is need for political and strategic predictability in market. Diary Entry 4 Strategies to ensure future development in FDI inflow in UK Date of Input Reference of the source (Harvard style) Nigel, Max; Driffield, Munday; 2000. Industrial Performance, Agglomeration, and Foreign Manufacturing Investment in the UK . Journal of International Business Studies, 17, 21-37 Wilkinson, Michael. 2016. EU referendum: Mark Carney warns Brexit is biggest risk to Britain's financial stability. [ONLINE] Available at: https://www.telegraph.co.uk/news/newstopics/eureferendum/12187164/eu-referendum-mark-carney-priti-patel-suffragettes-brexit-live.html. [Accessed 08 March 16]. Neumayer, Eric; Spess, Laura. 2005. Do bilateral investment treaties increase foreign direct investment to developing countries. [ONLINE] Available at: https://core.ac.uk/download/files/67/92729.pdf. [Accessed 08 March 16] Discussion of the content of the articles According to recent article published on telegraph.co.uk there is need for mutual recognition between EU and UK, exit is not right strategy as it will impact financial segment adversely and UK market is predominantly dependent on financial industry for its growth, it might shake economic model of the region and lead to financial crisis. However, such mutual agreements might take long time to accomplish. In case, UK separates from EU will be costly and time taking affair for the region, there will be need for forming new policies which will be costlier as well as time consuming for government. Further, it might create an environment of fear and shock among investors; therefore it is advisable not to opt for brexit presently. To ensure FDI inflows and maintain strong financial position in the market EU also plays significant role, it is not advice for UK to get separated. Another paper aims to evaluate interrelation between competitive advantage provided by the industry and the way it facilitates in attracting FDI inflow in the market. This paper include analysis on various comparative advantages offered by UK market, it include analysis on foreign manufacturing investment in industries and the way agglomeration of different elements provide benefits to both domestic and international firm, it also facilitate in attracting FDI. Third paper presents analysis on bilateral agreements and the way they help in increasing investment flows in the region, as per findings of the paper these agreements help in setting basic standard for treatment to be received in foreign country, help in providing clear idea for dispute settlement, higher number of bilateral agreement help in attracting higher rate of FDI inflows. Critical review of the content of the articles using academic sources There are various articles published that recommends UK not to opt for Brexit as it might impact country conditions adversely. According to Mark Craney, governor of Bank of England states that if UK exits from EU it will surely loose its business, there is needs to safeguard financial and monetary position of the region. Short term financial crisis can be expected through implementation of this decision, therefore government of UK needs to make strategies for strengthening financial position of UK in such a way that if government opt for Brexit then also it can manage its financial stability in the market. Bilateral agreements are proven strategies for ensuring governance and attract investment in the region, this strategy facilitates in providing higher security to countries, lower down market risk. Investment policies plays significant role in attracting investment in the region, it shapes relation between countries, it also establish inter and intra industrial relationship. If UK planned to separate from EU then they need to form new and strong bilateral strategies with other countries in the market, it will help in subsidizing the risk. Government can also plan incentives to attract and retain FDI inflow in the market, there is need to provide security and confidence among investors, which require strategic actions that include providing cost effective opportunities to investors, availability of skilled labourers, availability of resources to investors. Apart from this, tax incentives can be offered to organizations for entering the market, it includes access to duty free areas, co rporate tax relief, provision for new jobs and technological advancements. Another major strategy is to offer cumulative competitive advantage to both domestic and foreign companies so that mutual progress can take place, it will help in increasing FDI inflow as well as encourage domestic firms to integrate with international players. Comparative advantages will also facilitate in strengthening all parties involved in the process. This can be done by clustering of similar types of firms, it will facilitate in increasing total production. This required inward promotion strategies by government, there is need to attract inward investors those are indulge in complementary activities to domestic players. All these strategies will help in improving FDI inflow in UK market. Conclusion Internationalization process is crucial for economic development, it facilitates in business expansion, growth. With globalization and liberalization organizations are entering into international market to expand their business reach, to get access to new market, customers and also to subsidize the risk of depending upon single market. UK is a developed nation with strong economic condition, according to facts there is smooth FDI inflow in the market, in the year 2014 it was worth 48,314,454,024. Major findings from this analysis states that UK has successfully managed to attract FDI inflows from global market, both developed and developing countries entering UK for investment and business purpose. Major determinants to investment include financial incentive, market access. However, decision is significantly influenced by government policies, political stability, labour market scenario etc. Further, Brexit decision is imposing major threat to investment market of UK; it is making inv estor sceptical about future of UK financial industry. Finally, government policies and clarity can help in establishing harmony in the market.