In every model of economics there must be the good and bad outcomes because there are no perfect models in the economic system. In this case we will talk about the Multi centric organizational model.
Multi-centric organizational model is a model that developed by David Ricardo (1772-1823), in this model he focused more on distribution, whereas Adam Smith more focused on the production side on the market model.
In this model there are premises like in the market model also, the premises are; first the basic actors are organization in the organization there are corporation, government agencies, Labor unions, and non-governmental organization (NGOs), each of the actors has their own role in the MCO models, each of them has their…show more content… The second is the symbiotic relationship between major corporation and government, the corporation expect the government to maintain a healthy business environment so they can get more revenue, and the government which the provider of the healthy environment wish to get more tax from the corporation. Third is the chilling effect on democracy, where the big corporation entering the zone of political economy decision making, the increasing of government department by the individuals who came from the industries. Fourth the natural environment is abused and overused where the interest of getting revenue has cost the environment to damage. And the fifth is the highest social goal is the production and consumption of more “stuff” as in public goods, the exclusiveness of the goods are the main goal.
The above are the description of the Multi Centric Organizational models, where every model have negative side, so in this paper I would like to emphasize more on the negative impact and how should the government take care of the…show more content… The second outcomes symbiotic relationship between major corporation and government, where the industry increasing the products and the goods of production and getting more revenue by reducing the cost of production by not doing forestation on the area that already exploited by the industry, and the government only concerning about the tax that the industry will pay to the state, the bigger the revenue the bigger also the tax that they industry has to