Among the advantages of economic growth improved business confidence. The economic growth creates a positive effect on the confidence that people should have when they conduct their business. As a small business firm profitability and gradually increase with economic growth, the increased of confidence in their business and they give more effort to grow large. Next, another advantage economic growth is a leading public service. When the economic growth leads to an increase in government revenue, the government can spend more on public services such as education and the NHS, resulting in quality public services.
According to Kimberly Amadeo, president of WorldMoneyWatch.com, “the most important part of the economy is consumer spending,” Amadeo also reports that, “consumer spending is based off of supply and demand.” Big companies observe society to try and figure out what luxury items people crave. Then in return, they create a supply of these things and depending on the demand for the product, the prices will be raised (causing inflation) or lowered (causing deflation) (Amadeo). When Inflation occurs people will often times find a cheaper alternative. In Early 2014 we lost a company know as Blockbuster to inflation (Stern). Blockbuster went out of business because consumers found cheaper and easier alternatives such as Netflix and Hulu.
Accordingly tourism is expected to foster economic growth through foreign exchange earnings, by creating job opportunities in many other related industries in the value chain as well as fostering balanced regional development (Dieke, 2003). It goes without mentioning that despite active involvement of governments in formulating policies and strategies to enhance their tourism sectors, there has been significant leaching emanating from repatriation of revenues, wages and imports leaving the third-world destinations with a meagre return from the exploitation of their natural resources. As a result efforts directed towards the attainment of environmental sustainability and economic growth, are barred (Yilmaz and Bititci 2006). Actors in the tourism industry are however numerous spanning from tour operators, travel agents, accommodation facilities (i.e. hotels, lodges,
Thus, we see that ecotourism, in reality, does not generate much economical benefit for the locals. However, some proponents endorse ecotourism’s economical benefit because it creates jobs for the locals, increase the tourism revenue and allows host country to tax the companies that is carrying out ecotourism activities. In countries like Seychelles, Kenya, Tanzania and Mauritius, ecotourism is one of the largest contributor to their national gross domestic product (GDP): taxing and multiplier effect. This adds to the fund that is used to operate the countries’ activities: schools, hospitals and transport system. Additionally, it also allows for small and medium enterprises to thrive, due to increased tourism and thus spending.
• Prosperity brings peace, stability and harmony. As the world comes together to share, exchange and become more dependent on each other for prosperity, the greater chance of promoting world peace. Negative of international trade • Manufacturing jobs are lost due to several factors; Automation machines are more productive, efficient and more reliable than the traditional labour forces. Labour costs in developing countries are far lower than those of the developed countries which lead to companies outsourcing or move their production or services to developing countries. • Home grown businesses are affected by large corporations from developed countries as they are not able to compete on International scale due to lack of resources, capacity, skill sets and finances.
This result is seemingly consistent to Glytsos and Katseli (1986). Our empirical findings indicate that the migrant workers send more funds to their home country while the economy or income in Thailand is facing recession. The result is possibly due to the military coup and financial crisis awaking during the studied period. The recession encourages the migrants to remit more money to their home country to avoid losing from the turmoil. The military coup in Thailand is insignificant effect on the remittances inflows to the region, implying that the military coup does not affect the remittance directly but indirectly through the economic recession in the country.
After the second World War, mass tourism increased substantially. Its first real boom, mainly experienced by the western countries, was related to the economic development of society and to the increase in number of tourism services and recreational opportunities. Throughout the years, tourism has impacted positively on the world economy and on the countries’ national balance of payments. As estimated in Francisco Vellas’ economic analysis, today world tourism represents over 45% of tourism 's total contribution to GDP (Vellas 6). In addition, the tourism industry accounts for the creation of new jobs, especially for young people.
Because of the ability to trade across borders, higher earning businesses shift their focus to overseas trading and as a result forget about the smaller local businesses whom they were originally doing business with. In turn, the smaller businesses can no longer compete with the ones trading internationally and so jobs are lost and negotiation powers of the working class are decreases, meaning that they cannot demand higher wages due to bigger businesses exploiting labour in other countries where wages are significantly less. Profits are also unevenly distributed as capitalist states use them to increase the wealth of their own top
Economic – Make profit is the main objective of a company. This is because on a business mind set they want to gain more profit in other countries compare to local business. FEATURES 1. Benefits to participating countries – International business open up the economic to participating countries. For example, they can gets more foreign capital, technology and more job opportunity.
Isn’t it phenomenal, the first nine months of 2016 witnessed 956 million international tourists travelling to different parts of the world? Tourism is one of the largest and dynamically developing sectors of external economic activities. Its high growth and development rates, considerable volumes of foreign currency inflows, infrastructure development actively affect various sectors of the economy, which positively contributes to social and economic development of the country on a whole. According to world tourism organization (WTO), tourism is defined as the activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes. According to the world tourism and travel council (WTTC), it is the world’s stable and fastest growing multimillion-dollar industry that will continue to grow at an average annual rate of 4%.