Industrial Growth and Competition Essay Example | Topics and Well Written Essays - 500 words

Industrial Growth and Competition - Essay Example Moral hazard originated in the insurance industry where Insurance firms realized that by protecting their customers from risks, they might be encouraging risky behaviors. In cases where there are high potential claims, an insurance firm will charge higher premiums. A moral hazard exists in these situations (Winter 2013): Lack of shared information: One party may happen to possess more information than the other party. For instance, a company selling investments may be aware that it will not succeed in the next two years based on its performance. Investors investing in the firm due to lack of enough information may think that the company is doing well. Principal-agent problem: When an agent or insurance broker is not in alignment with the individual it represents, moral hazards can exist. For instance, an insurance agent may recommend a bigger policy if that is the way of getting a special bonus. In some situations, the membership of the Euro may cause some moral hazards. A country in the community may imagine that if it faces many challenges, the other members will bail it out. For instance, a state may decide to grow its debts knowingly. When Greece joined the Euro, it took advantage of low-interest rates because of its membership in the Euro. The low-interest rates encouraged the country to keep borrowing until it realized too late that the country had borrowed too much. Greece continued to borrow knowing that it enjoyed low interest rates because of its membership in the Euro (Dam & Koetter 2012). If an individual has not insured his house, it implies that he will suffer losses in case of burglary or fire. An individual will be compelled to be careful by installing burglar alarms and employ guards to evade any unexpected event (Jaspersen & Richter 2015). In case a house is insured for its full value, if any bad

War and peace Essay Example | Topics and Well Written Essays - 750 words

War and peace - Essay Example The Zionist argument is that they appeared in Palestine in the late 19th century with the intention of reclaiming their ancestral land. Jews purchased land and started putting up the Jewish community. Palestinian Arabs with violent opposition tried to force the Jewish out of the land, but the Zionist reacted with force to defend themselves. This same case exists up to date. The Zionist movement, from the start, desired to completely dispossess the indigenous Arab inhabitants so that Israel could be completely a Jewish state (Bennis 58). The land purchased by the Jewish Fund was in custody of the Jewish and could not be sold or leased to Arabs. The Arab population, as it became aware of the Zionists’ desires and intentions, it opposed further immigrations of the Jewish. The Arab population also opposed further sale of land to the Zionists. The sale of land to the Zionists exerted an immense danger to the existence of Arab community in Palestine. Because of the opposition, the w hole project of Zionist could not be realized without the backing of the British military. The Zionists did not mind about the real inhabitants of the land they believed in colonialist view that the rights of the original inhabitants did not matter. All that the Zionist wanted was total or partial entitlement to the land. On the other hand, the Arab’s opposition to the Zionists was not based on anti-Semitism, but on a reasonable fear of dispossession of their populace. Because of these two oppositions, the conflict continues. Palestine became an Arab and Islamic state by the end of the seventh century. Its boundaries and characteristics became known almost immediately. The occupants of the land at the time believed that they lived in a land known as Palestine. However, after the establishment of Israel in 1948, everything changed. The land, which the inhabitants of Palestine referred to as Palestine, part of it, was now Israel. The Palestine and the Israelis oppose each other regarding the land. Each group seeks to fight for the land, which they believe is theirs. This opposition increases daily and deepens as the two groups engage in the fight and kill one another’s group. The fight could have been halted a long time ago if there existed no opposition to the land. For a very long time, the ancient Arabs who have been existing on the land were the majority as the Zionist came to purchase land and establish their community. In this case, when the Arabs discovered the intentions of the Zionists of forcing out of the Arab community, the Arabs gained opposition to the move since they wanted to retain their ancestral land and at the same time, the Arabs were the majority. There was no way; the Arabs could have allowed a minor community to force them out of their inherited soil. On the other hand, the Zionist could not give up gaining ownership of the land for their benefit. As the two sides oppose each other, the conflict continues to exist between th e two communities (Tessler 73). According to the founder of Zionism, the aim of the Zionist was to split the penniless population, who were the Arabs, across the border through procuring employment in transit countries. The process of expropriating and removing of the poor was to be carried out circumspectly and discreetly. However, at