Outline: Top-down Economy

• 1. Top-down Economy
• The top-down approach enables the government to derive the basis of a decision from the big picture or comprehensive factors in the economy (Weinstock-Zlotnick & Hinojosa, 2004).
• Moreover, this approach assumes that the chances of stock in those sectors are high if the comprehensive factors or sectors are doing well.

1.2 Advantages of Top-down Approach

• It distributes the resources according to the economic structure of the sector, which promotes optimal use of the available resources.
• It helps establish equity and equality since resources are shared equally and according to the needs of each sector.
• Lastly, it reduces disputes arising from the distribution of the resources since the government controls what amount is allocated to every sector.

1.3 Disadvantages of Top-down Approach

• The approach encourages low participation because government participates in the decision-making instead of the state.
• Also, it requires a lot of knowledge, especially at the top level of government, to allocate and determine which sector requires what amount.

1.4 Alternative Approach

• The bottom-up approach can work better. In this approach, the government has no role in determining allocations; instead, the states or sectors determine the percentage of their allocations and submit them to the government to allocate.

Top-down Economy

As the global economy changes, technology, progress, and politics significantly changing the basis of national or national structure. As a result, societies and nations are adapting following the prevailing change in economic systems and structures. This is because regions and nations are connecting each other through economic relations in the global economy. Therefore, the practical economic approach employed in the global economy determines the relative structures within different institutions. For instance, the global economy is likely to be top-down driven in which all nations have adopted this system. Indeed, operating a business in this economy could be difficult because it becomes subject to governmental decisions and regulations. The top-down approach enables the government to derive the basis of a decision from the big picture or comprehensive factors in the economy (Weinstock-Zlotnick & Hinojosa, 2004). Moreover, this approach assumes that the chances of stock in those sectors are high if the comprehensive factors or sectors are doing well.

Advantages of Top-down Approach

If the government makes decisions, it also determines the number of resources required in each sector. Therefore, it distributes the resources according to the economic structure of the sector, which promotes optimal use of the available resources. Besides, it helps establish equity and equality since resources are shared equally and according to the needs of each sector. Hence, all sectors receive critical attention on their needs. Lastly, it reduces disputes arising from the distribution of the resources since the government controls what amount is allocated to every sector. This is because they would create inter sectors or states disputes if they could distribute the resources.

Disadvantages of Top-down Approach

The approach encourages low participation because government participates in the decision-making instead of the state. Also, it requires a lot of knowledge, especially at the top level of government, to allocate and determine which sector requires what amount. Thus, the approach is subjected to be neglecting the contribution of subsystems in the economy (Weinstock-Zlotnick & Hinojosa, 2004). Furthermore, it makes the subsystems feel left out because the government does not consider their voice or opinion in decision-making.

Alternative Approach

Instead of the top-down approach, the bottom-up approach can work better. In this approach, the government has no role in determining allocations; instead, the states or sectors determine the percentage of their allocations and submit them to the government to allocate. In addition, the approach allows the consideration of systems’ subsystems in the emergent of the original system in the economy (Weinstock-Zlotnick & Hinojosa, 2004). Thus, it will be easier to establish or conduct business globally because decision-making would come from the other business sectors.

Response Posts

Response 1

Globalization is one of the incredible transformations in the global economy since it has helped businesses expand beyond national and regional borders. I agree with the post that despite creating a reliable market for businesses globally, the economic approaches employed have significant advantages and drawbacks (Cuervo?Cazurra et al., 2020). For instance, the discussion post mentions a system where the government is the supreme in making economic decisions for businesses and their operation. This relates to the top-down economic approach in which government seeks to protect businesses by creating operational policies and regulations. However, I would agree with its limitation on organizational or business ability on creativity and independence in the internal operations systems. Thus, the government's proposed approach to involve critical stakeholders in the economy relates to a bottom-up approach where businesses use their decision-making and proceed to the government to implement. This can bring a harmonious and favorable environment in expanding and operating business activity in the global economy.

Response 2

The top-down approach is one of the main approaches employed almost by every government in the global economy. I am delighted with the perspective of the discussion since it has brought up the idea of a top-down approach in business and operations extensively. Its implementation in the global economy seems to have brought significant advantages and disadvantages to businesses and their operations in the global market. I agree that it is significantly easier to evaluate potential risks in the institutions under this approach because the government uses a wide basis when making decisions (Alam et al., 2019). However, the government ignores the potential of micro-systems in the institutions when making a decision. This is a significant drawback in this approach because a lack of shared decision-making for critical economic institutions can create uncertainties in operations. Thus, to avoid these uncertainties, I would endorse a bottom-up economy whereby the performing institutions like businesses enter into consensus with the government when making critical decisions and policies in the economy.