Comparison of Models in Government Business Between UK and Canada

Introduction

The government of England has considered supporting the automotive sector by having “buy now” signals in its budget. The government has argued for improved access to finance and credit as well as a scrap page incentive scheme. According to Dierikx, (2004), the plan for removing the first year rate of tax on new cars is also given by the government. Also the England government has increased the annual investment allowance for business. This encourages the spending done on vans, trucks, construction equipment, buses and coaches. The government has taken steps in introducing an srappage incentive scheme that will help vehicle sales as part of its compliance with the budget. The scrappage schemes would encourage the replacement of old inefficient vehicles and domestic appliances with the current efficient models.

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The above decision by the government will bring forward consumer as well as business spending and help in reducing carbon emissions. The government of England is giving enough evidence on the support of the transport industry by the use of auto assistance program. Through the department of energy and climate change, the government of England has put efforts in reducing the Greenhouse Gas emissions. This results from switches during electricity productions from coal to natural gas (Bostom et al, 2008). This helps in lowering the consumption of fossil fuel by the industry and in road transport. The government has also supported and encouraged the development of environmental labeling. The consideration here is that labeling of the environment is a faster and a more efficient way to change the corporate policy on environmental issues than the enactment of government regulations and legislation.

The House of Commons transport (2007) advocated that the environmental labeling would change the business behavior that will improve the sustainability of manufacturing processes and product lines. The government works closely with businesses to increase the up take of environmental labels and ensure that they are used in the right way. The government is providing real support to businesses through the department for business, enterprise and regulatory reform. This department is providing large amounts of loans to the transport industry for the purpose of helping businesses

The port industry has a continued vital and unique contribution to make in the economy of England Economy. It is also essential for improving the commercial activity as well as social welfare (Dierikx, 2004). The opinion of the government is that the ports sector can function by market forces. The England government is committed in funding the port sector since it is dependent on the wider transport infrastructure that cannot be wholly funded by the private sector. However, issues concerned with port development are subject to cumbersome planning procedures and this causes serious delays and wasted expenditure. The government has not given enough attention and initiatives to address the safety issues in the hazardous industry. This was not until the year 2003 when the government increased capacity and this has made a tremendous progress in the industry. The transport department in England has approved development at London Gateway, Bathside Bay near Harwich and Felixstowe South. Since then the government has sold a number of port companies. The current approach of the government to the ports industry can be demonstrated as a market failure.

The article in traffic congestion, trends, measures and effects (1989), The port industry has been faced with historical and enduring problems over the past 20 years. However there are several changes that have been made in this industry. It is evident that domestic port traffic has declined over a period of time where foreign traffic is considered the largest component. For example, foreign traffic in England has risen from 244 million tones in 1970 to 420 million in 2004. Two thirds of this traffic was with Europe and Mediterranean. Consequently, on the same period there was a rise in foreign traffic share from 66% to 73%.

There are problems experienced in the carriage of Modern container ships that can carry up to 10,000 TEU. Hence the number of ports is limited and larger vessels are unable to dock. For example, in the UK 95% container ships weighing up to 20,000 tones or more can be received in Felixstowe, Southampton and Medway (Kuzmyak, 2008). In England, the government has taken measures to deal with problems that arise in the transport industry. It is using location models that will help in determining the location of businesses. Various factors have to be considered here, this includes accessibility to motorway, accessibility to workforce, land issues must be considered as well as room for expansion. The government of England considers locating businesses in areas where resources are near the transport system. This is because there is mobility of raw materials that is necessitated by efficient transport system.

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According to the energy and environment (1990), It is important for the government to ensure that industries are near power supply for efficiency. But for more efficiency industries there is need for locating them along transport routes. It is easy and cheap to transport over the entire country with the national Grid power. For example, industries such as the Aluminium production in Canada may use hydroelectric power as a source of cheap power. Hence power availability is enough for the convenience of locating an industry. There should be a combination of transport for more efficiency.

Transportation in the England is made more efficient by the government. This is made possible by the use of containers. Today, it dos not really matter where the industry is located because transport is available for transport costs. Transport availability goes hand in hand with power, market availability, labor supply, capital as well as Government policy for efficient running of industries. England government uses industrial location models to determine where industries should be located. These models include the Weber model, which is a classical location model where the industrialist looks for the area that gives the highest profit, behavioral models, and Structuralist models (Ison et al, 2008).

The Weber model assumes that there is a uniform transport system, culture, climate, and economic and political situation. It also assumes that, all materials are not evenly distributed across the plain, the size and location of the markets is fixed. Another assumption of this model is that the transport costs are moved by the function of mass and distance. However, the Weber’s model experiences some Criticisms in that it does not longer relate to the current conditions for improvement in the transport system. Its assumptions have some misconceptions and transport costs may vary. The model though seeks cheap labor and the agglomeration may arise in hi-Tec industries (House of commons transport committee, 2007).

Behavioral models were also used to determine the location of an industry. Here putting into consideration the social cultural factors as well as economic factors to develop an industry formed the key factors. This model condemns the least cost where people behavior may vary. For example, some people would like to get maximum profit while others are interested in having a good standard of living and others for obtaining psychological income. The use of structuralist Models can be applied where location is explained by the underlying structures of society (House of commons transport committee, 2007).

Transport industry Canada

In the Canadian government, through the military industry as a government agency, Norman Thuswaldner the project manager for Canada area developed a business model for the director of Flight Safety’s (DFS). The business model was referred to as the New Flight Safety Management System. It was composed of cases together with conceptual information model that represents the reengineered approach of the directorate. The directorate’s approach was one that could track and monitor the safety hazards of the flight and occurrence of flight safety (Khan, 1991).

A logical model was developed for function design and business process model. This model was for the purpose of ensuring that inspection and the Transport Dangerous Goods Directorate adheres to compliance of the system (Howitt et al, 1992). The intention of developing the inspection and compliance system was for combining and improving the ability of two systems that existed in the systems of the Directorate. These systems included the inspection information system and the automated Emergency response Assistance plan system.

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Another model that would be used for the data administrative support of transport in Canada’s information systems was introduced. According to Blaze (2002), The ERW that were in the case tool was used for reversing engineer existing systems as well data representations and standards that are concerned with Air navigation. These include; spirit, NAIS, CAIDS, CANAC, CAATSA as well as ARINC 424. The outcome logical models were used to develop a baseline Air traffic management data model.

Sivardiere advocated that the Canadian government has separated the operations of infrastructure. The privatization of rail transports in Britain and North America’s mix of private freight railways has led to the use of three distinct railway business models. The Canadian government has taken steps to fund the rail projects. Different business models have been used around the world to promote railway activity and many people do not object the use of the models. These models serve the purpose of understanding the differences that occur between business models and economic consequences that come up fro the use a particular model.

A business model is used for the purpose of understanding the application of the ways in which economic rules and policies in the running of the railway. There is also regulation of freight services in the railway business model (Khan, 1991). Rail regulation is a requirement that is reasonable with little case law for giving guidance to the parties. Railway services are charged on the basis of fundamental costs, the behavior of costs to changes in traffic and to the characteristics of speed, axle loads and other parameters that are measurable.

The growth of Internet in the whole world has led to dramatic changes in the global market that is founded on electronic commerce. E-Commerce has been said to have an impact on all industry sectors by redefining business model. The government of Canada has been committed to foster this growth its economy. The government of Canada has allowed the businesses to make electronic transactions. It has also ensured the protection of personal information in digital form. The government of Canada has made the decision of working together with the Canadian Trucking Alliance to disburse funds for the E-Commerce and the Canadian trucking industry. This is good example that the federal government to partner with the private sector in fostering Canada’s economic strength. In the trucking industry, buying and selling of trucking services can be done through electronic means (Nigel, 2009).

Conclusion

In delivering better services to the citizens, the government of Canada is seen to be more responsible in executing the services using E-Commerce in all business activities. It is evident that, there are more benefits when a governments decides that the country’s businesses to operate through electronic means. The Weber’s model that is used by the government of England in determining the best location of a business experiences some Criticisms. It does not relate to the current conditions for improvement in the transport system. Its assumptions have some misconceptions and transport costs may vary. This also applies whet the behavioral models are used.

References

Blaze, J. (2002). Railway business models continue to evolve: Management Matters. International Railway Journal.

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Bostrom, M., Klintman, M., & Basingstoke, (2008), Eco-standards, product labeling and Green consumerism, England: New York: Pal grave Macmillan.

Dierikx, M. (2004). Government birds: air transport and the state in Western Europe. Journal of transport History.

Energy and environment (1990), transport induced noise and air pollution, transportation Research record, no. 1255, transportation research board, National Research Council, Washington, DC.

Howitt, A.M., Altshuler, A., (1992), the challenges of transportation and clean air Goals, Associate Director and Director, respectively, of the Taubman Center for State and Local Government, John F. Kennedy School of Government, Harvard University, for the U.S. Department of Transportation.

House of commons transport committee. (2007). The ports industry in England and Wales. Second report of session. Vol. 1.

Ison, S., Rye, T., (2008), The implementation and effectiveness of transport Demand management measures, an international perspective, Aldershot, England; Burlington, VT: Ashgate.

Khan, A. M. (1991), energy and environmental factors in freight transport, Carleton University, Ottawa, Ontario, Canada.

Kuzmyak, J.R., (2008), Forecasting metropolitan commercial and freight Travel, Washington, D.C: Transportation Research Board.

Nigel H. M., Wilson and Nuzzolo, A., Verlag, S, (2009) Scheduled-Based Modeling of Transportation Networks: theory and applications.

Traffic Congestion, Trends, Measures, and Effects, (1989), Report to the Chairman, Subcommittee on Transportation and Related Agencies, Committee on Appropriations, U.S. Senate, U.S. General Accounting Office, Washington, DC.

Assessment of Traffic Noise – Investigations on the Annoyance Effect, on Road and Railway (1982), International Railway Congress Association, pp. 13-22

Energy and Environmental Issues, (1991), Transportation Research Record, No. 1312, Transportation Research Board, National Research Council, Washington, DC.

Sivardiere, J., Railways and the Public, General Secretary of the National Federation of Transport Users, France, included in Sub-Theme 2: Safety and Quality of Service.

U.S. and international approaches to performance measurement for transportation systems : summary of a conference (2007), Beckman Conference Center, Irvine, California / Katherine F. Turnbull, reporter.

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