Group exercise 5:An armaments manufacturer saves 1000 jobs by supplying arms to North Korea!

Supplying arms is one of the main businesses for the Government.Therefore,Governments of many countries will be the main customers of this business.Especially in the countries that have wars,or cold wars,demand for arms will be price inelastic.So arms manufacture may make a big revenue by supplying arms to other countries.

They will have to invest in the defence army of the country.Therefore,thay have to buy arms for protecting,and suppliers will be satisfied because of the high demand in the war,the place of killing and fighting.So,this is an ethical problem as well.PEople who sell arms facilities will be against moral thoughts.They sell products and material which kill people,so they are killers as well.

In another hand,unemployment will be reduced as it will safe more than 1000 jobs.Which is quite a lot.So it improves country's economy because of reduction in redundancy and unemployment.Also,the government may put a high tax on it,and may increase their budget.So that this is the good way of making a budget surplus