Transportation

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Q1.The Highway funding trust was created to ensure the systems financing through an account mechanism in the federal budget that comprises two separate accounts one for the highways and other for mass transit. All the fuel tax was transferred to the trust fund and all general fund revenue returned to the highway trust. This could help reshape federal, state and local decisions’ on how to spend transportation funds. Trust fund programs are supplied at least 90% dedicated revenue from user fees or excise taxes(Green, 1992).Fuel taxes provide a stable and predictable level of funds because highway fuel use changes little from year to year .This is advantageous to transport companies as they are able to assist in areas where it is hard to reach. A project such as the gulf turtle expedition would be extremely expensive to do since not many companies have the facilities carry such mass of turtles. They encourage people to be better and also a sense of responsibility by giving back to the community. The oil spill was an eye opener to the world that we should care about our environment including wildlife.

Fuel taxes acts as a revenue/source of highway funding from those who benefit from expenditure such as courier services (wall mart, fed ex) that the taxes finance (citizens).The fund has to be sustained to increase trust fund revenues that are inadequate to meet needs, by raising the fuel excise tax so that all users pay their fair share in. While transporting cargo or other items it has emerged that per mile charges would be an effective way of funding the trust since fuel consumption also depends on it. This will give individuals the right opportunity to do the right thing helping generate revenue to help solve the problem of insufficient funds.

PROS: About 80% goes to government grant for construction and rehabilitation of existing roads and safety programs. Without such funds vaccinations of the H1N1 would not have reached inaccessible areas. The funds assist in infrastructure development to meet the requirements of the community and general population globally. Higher rates of fuel taxes are warranted to pay costs of importing and burning oil that is not reflected in the market price. It also encourages development of renewable domestic and less pollutant fuel sources. CON: It distorts market prices and causing producers and consumers to allocate personal and business spending inefficiently. If the rates are too high it can cause, horizontal inequalities as individuals who use vehicles to job tend to spend more on gasoline than others at the same level of income.

Q2.Wal-Mart had a vision and economic model that was based on low price directly proportional to high volume business model. They were able to reduce miles between routes by carrying large volumes to be distributed to areas other than having trucks to deliver in smaller routes. The trucks were more aero dynamic and this helped to save the fuel cost.To make an impact, smaller companies realized that they had to rethink their processes and factor in sustainability (Soderquist, 2005). Wall mart amazed the logistics world by committing to reduce the energy needs, Packaging across its global supply chain and carbon dioxide omission. This will spur suppliers and other companies to develop manufacture and source in more

Wall mart recently unveiled plans to measure the sustainability of every product it sells through substantive information to consumers about sustainability and lifecycles of the product they purchase. It will also be guided by its logical strength of numbers to increase large influence in area beyond discount retailer (Soderquist, 2005). Its effort in product efficiency, supply chain transparency and disaster response has greatly influenced public policy. Through its assistance in hurricane Katrina Wall mart showed that it had the capability to support the community. This created customer loyalty and motivated most individuals in positive thinking. Such industries have created a sense of belonging to the global world. Through creation of employment C.S.R and impact to assist smaller firms realize goals. They have promoted the going of green by being role models

Reference

Soderquist, D. (2005). The Wal-mart way: The inside story of the success of the world’s largest company. (pp. 152-160). Illinois: Thomas Nelson Inc

Green, M. J. (1992). Changing America: Blueprints for the new administration. (pp. 426-568). Canada: Newmarket Press.