Some advantages of tourism are job creation, expansion of local infrastructure, such as roads, public transportation and sanitation facilities, and education of tourists. Meanwhile, many advantages are also disadvantages. For example, job creation does occur, but many of these jobs tend to be menial and offer little chance of advancement; the jobs that do offer upward movement are often filled from outside.Know More
With the advantages of infrastructure improvement often come downsides such as pollution, destruction of some aspects of the environment and scattered development that may be inaccessible to residents of the area. Moreover, if big businesses play a role in developing the tourism industry in a certain area, the local businesses and residents may see very little of the profits, because the money goes to the big business. Also, while many tourists learn on their trips, that learning often comes at costs, such as residents of the area feeling belittled or patronized, especially if the tourists focus only on certain aspects of their culture.
Some ways tourists can act mindfully are by going to locally owned and operated businesses and by remaining environmentally aware. Businesses in a tourist area can also act mindfully by working to continue the culture in a non-patronizing way and by involving the community in many ways. One method is to set up educational programs or scholarships for students in the area.Learn more about Economics
The advantages of niche marketing are focusing on more profitable market segments, ability to establish solid relationships with members of a market segment and increased return on investment for marketing dollars. Disadvantages of niche marketing include increased difficulty in exposing a product to a broad spectrum of consumers, inability to create mass market appeal and limited sales potential. The effectiveness of niche marketing depends on the product.Full Answer >
Break-even analysis allow managers to better determine what their goals should be, but it can cause them to not consider other factors. It is a core component of making business decisions. However, it must be used cautiously.Full Answer >
Mixed economies essentially create a balancing act between the private sector and government: these economies allow governments the opportunity to step in to correct market failures, but sometimes draw criticism for enabling too much governmental control. Mixed economies require participation and cooperation between the private sector (such as individual corporations and businesses) and the government. Ideally, these economies create strong, stable economies with minimal governmental interference. However, when the balance tips too far one way or the other, problems arise.Full Answer >
The benefits of mercantilism include increased employment, the development of new technologies and products, and positive cultural exchanges as mercantilist nations seek new markets and raw material sources, whereas the disadvantages of the system include increased conflict between nations, growth in trade protectionism and the development of trade monopolies. The Library of Economics and Liberty defines mercantilism as a form of nationalism aimed at building a wealthy and powerful state.Full Answer >