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Showing posts with the label globalization

Decision Making as Output and Bounded Rationality

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  The classical economics theories proceed on the assumption of rational agents. Rationality implies the economic agents undertake actions or exercise choices based on the cost-benefit analysis they undertake. The assumption further posits that there exists no information asymmetry and thus the agent is aware of all the costs and benefits associated with the choice he or she has exercised. The behavioral school contested the decision stating the decisions in practice are often irrational. Implied there is a continuous departure from rationality. Rationality in the views of the behavioral school is more an exception to the norm rather a rule. The past posts have discussed the limitations of this view by the behavioral school. Economics has often posited rationality in the context in which the choices are exercised rather than theoretical abstract view of rational action. Rational action in theory seems to be grounded in zero restraint situation yet in practice, there are numerous restra
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The Post Pandemic Globalization

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While the world fights the Wuhan originated virus, it is unlikely that the post COVID-19 world would be the same. As with any war, the post war architecture undergoes a transformation change with little similarity to the past. The new normal is something different. The current global architecture in social, economic, political, cultural, military and technological governance is a product of the discussions and thinking that emerged in the immediate post World War II regime. The end of the Cold War with the collapse of the Soviet Union or rather a little earlier through a collapse of the Berlin Wall drove the world into an era of unabashed globalization. The outcome of such an era was the optimization of business resources perhaps an euphemism for cost minimization given the level of price. This led the business to seek new hunting grounds for production something that led them to China. The post “ Coronavirus, Global Economy and Redundancy ” captures the need for redundancies du
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Characterizing the Global City

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Three major urban trends are being observed was we head into the third decade of the present century. Antagonistic to most estimates, population growth rates slowed down for many cities in developing countries. The largest cities in the emerging countries experienced a slower rate of growth since 1980s relative to previous two decades. The world is now less dominated by very large cities than predicted earlier. Less than five per cent of the world's population lived in megacities in 1990. The prediction that cities such as Calcutta and Mexico City would evolve into gigantic metropolises of 30 to 40 million inhabitants, is unlikely to fructify. Linkages between urban change and economic, social, political and cultural change remain somewhat ambiguous. Some large and rapidly growing cities have been well-managed and serviced perhaps contrary to assertion that size exhibits diminishing returns with respect to city management. In fact, some of the worst physical conditions have
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Calendronomics

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It would be stimulating to decrypt how January 1 st became the first day of the New Year across the world. There are perhaps more than 500 calendars across various cultures. Yet it was the Gregorian calendar that has emerged as the standard calendar across the world. While the roots of Gregorian calendar is religious, its adoption is pure geo-political economics. The calendar was issued as a correction to the then existing Julian calendar in Europe. The reform was an answer to solving the ‘Easter’ problem. Easter, as adopted by First Council of Nicea (325 AD) is celebrated on the Sunday after the ecclesiastical full moon on or after 21 March, which was adopted as approximation to the March equinox. The passage of time and the semantics of Julian calendar had led to divergence between the canonical date of equinox and the observed reality. Hence by early 16 th century, there were calls for reforms in calendar accompanied by ensuring that dates do not diverge in the future. This
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