According to David Ricardo, free trade promotes specialization, it enables domestic workers to concentrate those good and services they have competitive advantages with. In simpler words, business does what they are good at and kaizen applies to this strength to further strengthen their advantages. 3. FREE TRADE AREA (FTA) A free trade agreement is a set of policies set by 2 or more countries that have few or no price controls in the form of tariffs or quotas between each other. Free trade agreement allows the agreeing nations to focus on their comparative advantages and to produce the goods they are comparatively more efficient at making, thus increasing the efficiency and profitability of each country.
To employers raise in minimum wage saves them a lot on recruiting employees and invest money on their training. Existing workers will be more experienced to increase the efficiency of the business than the new workers. As a result, customers will be more relax about the service. Whereas, to the country the tax will be increased by large amount of money which can help to give free of cost services to workers such as free education, free electricity, free medical, which will again motivate the worker to work hard. The most important thing the GDP of the country will increase and will help the government a lot to pay of the loans as soon as possible before more interest to be
Some countries might increase slowly, while, some countries might increase rapidly because of globalization. Therefore, this essay will argue that globalization is beneficial for developing countries in terms of economic growth, quality of education and health care industry. To begin with, globalization is beneficial for the economy of developing countries. Many companies have started to look for outsourcing opportunities in developing countries when businesses went global because money can be saved and businesses can become more profitable. (Hill, cited in Jordan, Garland & Owusu-Nyamekye 2014, p. 91).
Business are what determines whether the business is making profit or not which later contributes to economic growth of a country. By all of that one can understand economic studies as allocation of scarce resources to satisfy unlimited wants. 2. Economic growth and Business cycles 2.1 Economic growth Traditionally defined, economic growth is the annual rate of increase in total production or income in the economy (Mohr et al., 2015:410). Usually economic growth is considered a good thing for the economy.
Literacy enhances the working capabilities of people by providing them with skill development. It creates a state of competition among firms, industries and different sectors of production which helps in the strong competition and economic development. Increasing rate of literacy helps to maintain and control Population. Hence qualitative population is found with increased standard of living and more access to the basic needs. Increases more skilled labor that bulid a source of higher production and low rate of returns.
Human capabilities and capital are vital because they help individuals to generate ideas whether through tacit or codified knowledge on how to better their lives and economic conditions. The evolution of innovation is research such as education, copyright as well as changes to systems in structures of different
Minimum wage is a vital element to stimulate economic growth in each country. This system can ensure the stability of economy because unemployment rates and taxes will also increase. Minimum wage system comes to a lot of advantage and disadvantage for us. Increasing wage can make an employee has a high-quality lifestyle and ensure employees have a sufficient salaries for their daily expenses. Moreover, this system also can ensure safety in each country and reduce race and gender inequality.
Infrastructure is essential to a nation for it can provide quality education, health care and protection, transportation, more resources, easier travelling, trades, business. It could also connect peoples, support communities, generate job. Infrastructure could support these making it able to boost an economy with ease. Educational facilities, hospitals and also military installations are examples of infrastructure. So does roads, railroads, airports, and ports which then supports local and international travel.
3.0 SWOT analysis 3.1 Strength 1. Continuous Economic growth New innovation and faster booming work management is extremely and gradually improvement for a country economy. Malaysia continuously upgrading of technology and also on development skills do also have some impact on the economic as a competitive countries. 2. Supportive government policies Malaysia government are willing to be a strong helpful toward public and private sector business.
In order for a change to be considered as a developed one, then of course it must entail socio-economic and environmental changes. There are numerous types of developments depending on the perspective from which it is viewed; this paper however will look at economic, social and environmental development. (Salmon Valley Business Innovation Center, 2011) established economic development as an improvement of economic wealth of countries, regions or communities for the well-being of their inhabitants. They further explain that from a policy perspective, economic development can be defined as efforts that seek to improve the economic well-being and quality of life for a community by creating and/or retaining jobs and supporting or growing incomes and the tax base. The importance of economic development is to create job opportunities thus