Adam Smith’s “Invisible Hand” theory states that if each consumer is allowed to choose freely what to buy and each producer is allowed to choose freely what to sell and how to produce it, the market will settle on a product distribution and prices that are beneficial to all the individual members of a community, and hence to the community as a whole. “Invisible hand” in the instant case is being used a metaphor for government control. So you believe that FAR 15 is too onerous? Are costs associate with complying with FAR 15 having a deleterious impact on small business?
Answer:
Yes, we do believe that FAR 15 is too onerous. FAR stands for Federal Acquisition Regulations, which states the principal set of rules for procurement in the US, this is mainly for the government procurements. The set of rules as stated in FAR 15 are not so simple and these look to be onerous. It is difficult to comply and follow all the rules mentioned in the FAR15.
Yes, costs associated with complying with FAR 15 having a deleterious impact on small business, because it is very difficult for the small businesses to follow the costing as per the FAR 15 guidelines. If the small business follows the costing guideline as per FAR 15, then it will be difficult for the small businesses to generate the profit and manage their expenses. Hence the small business can not comply with the FAR 15 fully and they need to take some deviations against FAR15 so that these small businesses can survive and avoid the deleting impacts on them.
The small businesses have small scope for business revenue generation these small business can not follow all the guidelines as per FAR 15 initially, but once they are set and started generating profit in the business, then later they can comply with the FAR 15 requirements.
Adam Smith’s “Invisible Hand” theory states that if each consumer is allowed to choose freely what...
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...