On this case inflation and economic growth are related terms with a common contention relationship, because there is a positive and important link and as well negative ones between inflation and economic growth. Thus, high inflation is extremely affect the economy in terms of bad performance, because high inflation cause a lot of issues such as it can decrease the purchasing power of the dollar and increase wages which will lead the numerous people’ income become less sufficient to them and cannot afford to satisfy their need and wants, and it cause transaction movement in the market become slow and shortage of necessity products and services, and when high inflation affect price level is giving a hard time, a very complicated situation that can make hardly to forecast future market behavior precisely. This condition is also lead up to business investment become slows. Basically high inflation gives a government, economist a hard time to dominate and standardize the inflation rate. And on the other hand, too low or decreasing inflation can also affect economy in term rate of employment and high output.
However, this improves the resource allocation. Greenwood and Smith (1997) pressure that a stock exchange reduce the cost associated with pulling fund from various sources into the area where it is will invest. Therefore, this enables the making of goods and services that ultimately lead to improvement economic growth. In a nutshell, this shows that when market is competitively working in the economy, the stock market influence to organizations financing will rise more than the influence of the bank-based financial sector. The nature and economic significance of the relationship between stock market development and growth differ according to a country’s level of economic development with a larger impact in less developed economies (Filler, Hanousek and Campos, 1999).
Which means benefiting the economic growth. There are several reasons to consider income inequality harming economic growth. First, the strongest mechanism that affects the growth of the overall economy is lack of education opportunities. Knowing that people whose parents are poor do not have the means to educate their children and end up in low-quality schools, which reduces skills and development in society. While those who come from
Even for a small business in a small town, a downturn in national economy, new labor laws in the nation of a supplier, or a change to state tax laws may result in shifting tides of fortune. Macroeconomic analysis can summarize big picture trends that may affect marketing strategy, financial position, or the market share of the company. Customer data is one of the most critical components of a current situation analysis. This data may be gleaned through customer surveys or even simple observation. Some of the items to analyze might include the age, gender, income level, educational background, or marital status of a typical customer.
So it is very much necessary to evaluate the actual performance of a company and compare it with the expected performance. In this project, the study has been focused towards the evaluating the different financial performance of a company and how the company is performing. This study is very important because, when making the proper evaluation it is very much helpful for a company in identifying the actual financial performance of a company it can be compared with how it is deviated from the actual. By making the proper evaluation the study is focused on finding the gap that has been existed in financial performance of a company and how to fill this gap by taking and implementing the corrective actions and suitable measures. Thus, this study is primarily focused towards financial movement of a company, how it is performing if any deviations in the performance taking corrective steps in solving it.
To know the investors who bring along best global practices of management. To study its influence in increasing employment. To study its impact on Customer Support. OBJECTIVES To Study the pattern of FDI in Insurance Sector and the Government regulation involved in them. To Study the current trend in Insurance Sector, the challenges and the prospects ahead.
Definition Entrepreneurship, economists, politicians, community leaders and citizenship are usually interested in the economic growth of a country and how it affects business cycles in the end. Mohr et al. (2015:410) define economic growth as the annual rate of increase in the total production or income in the economy while Noel, T. P. (2012) refers economic growth as an increase in the productive capacity of an economy as a result of which the economy is capable of producing additional quantities of goods and services. The importance of economic growth From economists’ perspective, economists must be able to analyze a country’s current economic environment. Mohr et al.
Economic growth is an increase in a country’s capacity to produce goods and services. This occurs when there is a rising demand and an increase in productive capacity. Economic growth in a nation can have several impacts. For example, it can reduce the amount of poverty which leads to people having a higher quality of life and better living standards. Economic growth will give the country more income which means that the government are able to spend more on healthcare, education and technology.
In the first chapter of this book, the introduction shows the approach to macroeconomics that we take in foreshadows the basic macroeconomic ideas and issues that we develop in later chapters. Macroeconomics is given a definition and thoroughly explained, and then primary interest to macroeconomist: economic growth and business cycles are further explained at how they apply in our everyday lives. In the second chapter of the book, measurement is introduced and the importance of calculating variables. The objective in this chapter is to discover how variables such as the measurement of GDP and its components are enforced, and the measurement of prices, savings, wealth, capital, and labor market variables. In this paper I will analyze all of
Economic growth refers to the increase in the amount of the goods and services produced by an economy over time (Jones, 1996); an increase in the total output of a country. Economist measure growth by real GDP and per capita real GDP to compare how economies grow over time. A rise in real GDP signals growth in the economy and tends to translate as an increase in productivity. If the economy’s growth is an increase in the total output of a country then the total input plays a key role (total output = total input) In this study I will briefly describe five sources/ determinants of growth and explain which one I believe is most important when assessing economic growth. Economists have identified five important sources of growth; Productive resources (land, labour, capital and entrepreneurship) and Technological advances.