For example, Mexico has been attributed as a depression to the economy because it was facing a major decline in mining and a shortage in labor during the time when urban population and demand were growing. Uncertainties caused by the rich countries cause losses for the poor countries. Essentially, the poor countries should solve this problem by specializing in production. It can open markets in poor countries, strengthen their method of production and kickoff local businesses. Vincent Ferraro addresses the possible issues which make this policy difficult to follow.
This paper seeks to analyze the reasons of increasing the unemployment rate due to the overpopulation and non-educational as well as unemployment effects on economic and social sphere. Many factors cause the high unemployment rate over the years. our nation suffers from many issues in our community, unemployment is one of the most important problems that suffers the youth from it in our society. from one point of view there are many causes that’s lead to the unemployment. we found that the percentage of population is one of the main reasons of unemployment.
Q.2: What macro environmental factors have affected Target’s performance during that period? Economic factor was the macro economical factor that affected Target’s performance during that period. The economic condition over the last few years since 2008 was tough as the economy was in recession and inflation was on rise. With rise in Unemployment, people started to have a sense of monetary responsibility. This led Target to formulate its “Pay Less” strategy and stress aggressively on it.
According to business dictionary, global economy is defined as any world-wide economic activities between various countries that are inter linked and can have both positive and negative effects upon other countries (“What is global economy? Definition and meaning”, 2016). The global economy is an ever changing phenomenon. Its unstable nature has many impacts on lives of entire world population. When the global economic crisis occurs, it affects living of all people especially those living in least developed countries.
RESULTS: Above discussion has shown that because of financial crises Pakistan’s economy affected adversely. It’s main effect on inflation, interest rate, GDP and foreign debt. Real GDP growth rate declined in 2008 as it reached to 1.6% and in 2009 it rose slightly to 3.4%. In 2013-2014 GDP is 4.14% but for development and for economic growth it is very low. So the monitory authority has to change their policies by reducing the size of foreign debt and encourage investment at high level for productivity and economic growth.
The removal of protections for the manufacturing sector, trade liberalization, and reduced government spending combined with the effects of the drought on agricultural production resulted in economic recession. As a combine result of the factors, the real GDP fell by nearly 8% in 1992. Privatization is one of the IMF/WB conditionality which affected the mass population’s lives. Scott (2001) defines privatization as the term used to refer to the sale of government owned equity in nationalized industry, parastatal or other commercial enterprises, to private investors with or without the loss of government’s control of the organizations. Privatization is associated with higher levels of unemployment with its attendant social ills.
Moreover, this uneven distribution of wealth has contributed enormously to increased poverty and deprivation in the US. In fact, 1 in 7 Americans today experience hunger and 16 million children live in poverty. Additionally, too great economic inequality prevents the economy from growing. In view of middle-class worker’s reduction or stagnation in salaries, they have less disposable income to spend. Thus, businesses suffer and must cut costs, which inevitably leads to even more reduced revenues for
When the aggregate consumption falls the investment incentives for the investors also gets reduced. So as a result the national income or the Gross domestic products gets squeezed. We do possess an overloaded supply of human capital, but the quality of this factor of production is quite low that instead of getting benefits from it we are getting worse off. Moreover when a large percentage of youth remain unemployed it represents a situation of inefficient use of this
Unemployment exists in every country in the world. This phenomenon can happen for a lot of different reasons which can be political, cultural, economic etc. Mainly this happens in poor countries or countries that are under development. Albania is one of these countries and the population of it has suffered from this phenomenon. High unemployment is both an economic and social problem.