Free «Runde and Savoy (2012)» Essay Sample

Question 1: According to Runde and Savoy (2012), the impact on the capital investment would be both “social and environmental”. The influence of the “financial returns” plays the major role for the United States economy (p. 1). This challenges to find the ways to interact with the foreign countries from the position of targeted investment that will help to produce tangible returns. The U. S. Government can overcome such challenges with the help of partnerships that can have a great impact on the investment communities in the developing countries. If this happens, it could reduce the risks for these companies in relation to finances for the local small and medium-sized businesses. This could also help to reduce the structural barriers to the investment policy as well as provide technical assistance in order to manage capacity in the private investment sector. The American companies can also overcome such challenges by being more aggressive towards the grant money and risk-sharing investment capital.

Clinton states, “The USAID administration together with the OPIC executives should review the use of enterprise funds in zones of conflict or geostrategic interest, including Afghanistan, Iraq, Southern Sudan, Yemen, Libya, and Haiti”. It would also be “useful to leverage the large sums from the private sector by helping to mitigate risk that serves as a barrier to investment by means of legislative fixes with Congress to receive limited authorities for enterprise funds in these countries”. Thus, the process of “strengthening the development finance tools” towards the private sector can help the US Government improve the impact on the capital investment. (Runde and Savoy, 2012, p. 1)

Question 2: Every cost-benefit analysis should provide the factors that can help improve the quality of the clients’ needs for the manufacturing or service. Such an approach emphasizes the production requirements as well as the schedules for the projects, which demonstrates a competitive return on investment, ROI. According to Davidson (n. d.):

Exempt externalcost per hire averaged $8,676 while exempt internal cost per hire hit an average of $15,008. Exempt internal costs are greatly influenced by relocation expenses while the exempt external costs are highly swayed by both relocation costs and agency fees (p. 1).

Thus, the cost-benefit analysis shows that it is better to hire the internal employees for the company in order to meet the production and schedules. Every company should use the cost-benefit analysis in order to manage its sources and justify the purpose of the framework to improve the personnel processes towards the better business outcomes.   

More staff versus temporary workers: cost-benefit analysis

  Hire more staff Hire temporary workers
Cost per hire $15,008 $8,676
Production Almost always met Randomly met
Schedules Almost always met Randomly met
ROI influence Relocation expenses Relocation costs and agency fees

Question 3: The cost-benefit analysis of obtaining a graduate degree consists of both the short-term and the long-term costs and benefits. The labor market cost and opportunities have the most influence on the graduates. In order to determine why some people obtain the extra education and others do not, there is a need to evaluate the “tuition, additional fees, the cost of books and the lost income, excluding the part-time income for the year at school” The short-term costs could discourse the market place as well as the companies to pursue a career. The long-term costs could address the industry as a whole, including the loan, student budget and the entire expenses for living.

  Costs Benefits
Short-term Market place costs and part-time income for the year at school The labor market cost and opportunities are lower the average compared to the monetary returns to education.

Industry costs, including the loan, student budget and the entire living expenses.

This includes tuition, additional fees, the cost of books and the lost income.

Higher cost of education while obtaining the degree.

The higher labor market cost and higher opportunity for the earnings.


More monetary returns to education


The higher returns on investment into the PhDs and Masters

The results show that with the degree, “men earn more than women in almost all the sectors of employment, excluding engineering”. The “monetary returns to education” plays the vital role in the decision making of getting a graduate degree. The benefit and purpose is the “opportunity cost for the higher education” Also, there are differences in obtaining the Bachelors, Master’s and PhDs.  The more advanced degree offers higher opportunity for the earnings of the new graduates (Bone, 2002, p. 5).


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