Consider Developments in the Computing Industry

question 27

Essay

Consider developments in the computing industry. Old leading firms rely on using large computers, called mainframes, to serve their commercial customers. Because of the increased capability of personal computers, new firms in the industry can use personal computers or small workstations to provide the same services as the leading firms but at lower average costs. Describe the impact of these new arrivals on the computing industry in the short run and in the long run.

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Definitions:

Shipping Increases

A rise in the cost or amount required to transport goods from one location to another, potentially affecting trade and sales prices.

Decertification

The process by which a labor union is removed as the representative of the employees in a bargaining unit, typically through a vote by the employees.

Bargaining Agent

A labor union or individual representative designated to negotiate employment terms on behalf of a group of employees.

Closed-shop Agreement

A labor agreement requiring employees to be members of a union as a condition of employment, typically illegal in the U.S. under the Taft-Hartley Act.