By David W. Pearce (eds.)
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Since it is unlikely that there will be exactly equal demand for transport in both directions, excess capacity will exist on the 'back' journey. It will be in the transport operator's interest to attempt to fill this excess capacity by charging lower rates for the 'back' journey. adverse effects on the growth of other regions. These effects are said to consist principally of flows of factors of production (usually labour and capital) from slow growing to fast growing regions. The cumulative causation approach to regional economic growth argues that if one region's growth rises above that of its neighbours, backwash effects will reinforce the initial advantage, resulting in a widening gap between regional growth rates.
He also analysed the relationship between multinational corporations and underdeveloped countries. The interests of these large corporations lie in their continued ability to control foreign sources of supply and foreign markets in order to extract profits from these countries. Consequently monopoly capitalism attempts to slow down the industrialization process within the Third World. Baran attempts to demonstrate the virtual impossibility of capitalist development of underdeveloped countries in the present world context.
Simon, R. M. Cyert and J. G. March. A significant contribution of their work has been to focus attention on the internal organization of the firm and in particular, the internal efficiency of the firm as opposed to the more familiar question of allocative efficiency. The behavioural school view the firm as a coalition of subgroups whose goals are inherently contradictory. Organization theory is drawn upon to analyse the process by which decision rules are learned, and the manner in which these rules are changed in the light of feedback from the environment; for instance, goals are regarded as the outcome of a bargainlearning process within which each group has aspiration levels which they attempt to 'satisfice', Conflict is reconciled by the distribution of side payments and the adjustment of aspiration levelsin the light of experience.