2.2. Neoclassical Trade theory This is also known as Comparative Advantage. (David Ricardo1817) stated that even if one country has an absolute advantage in producing two products over another country, trading with that other country will still yield more output for both countries than if the more efficient
This is popularly known as the business cycle model (Fig 1.2). High GDP figures aren’t all that. Economic growth is a good sign, but for an economy to thrive, it needs to develop as well. Economic development is the qualitative measure of the economy. This pays more attention to the qualitative side of things.
Globalization and Labor Sweatshop Globalization is indeed a significant effect on the system's employment. This is because globalization has increased the integration of the world, especially in the economic field that directly participate impact on the flow of capital and labor. Capital and labor flows have strong linkages with each other. Then with the easy flow of capital engaged in international economic activity then automatically flows of labor would be more flexible. Then the consequences are increased competitiveness in the employment opportunities.
According to Gray (1991), It is believed that dynamic industries create rent for a country and the spillover results of such industries are of great value to the home nation and as a result, increases the country’s standard of living and welfare through such economic growth. Paul Krugman (1994) criticised the concept of National Competitiveness
7 The employment level is expected to be positively affected by trade liberalization due to ease access to cheap raw material and capital machinery, which promote development opportunities in a country. Trade Liberalization It is the openness index which is represented by trade-GDP ratio i.e the sum of export and imports to that of the GDP. TL= (X+M)/GDP Where X Total exports of country M Total Imports of country GDP Gross Domestic Product of India As export increases the value of trade liberalization also increases and vice versa. . Hence, more openness Human Capital It can be expressed as the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.Here,
First and foremost, it is generally believed that a nation with a positive population growth has the ability to avoid it from suffering ineffective state of economy (Easterlin, 1967; Simon, 1981). It means that the nation will have a greater chance to achieve an “economics of scale” sate which in turn contributes to the increase in nation productivity (number of output per unit of labor). A country with a rapid population growth rate will result in a larger population size and will eventually make a larger the market size in that nation. As such, it is important to ensure an effective and great performance to be developed in order to meet the product demand of the large market size. In view of this, there is a tendency for the nation to reduce the costs incurred during the production process for each output.
The Heckscher-Ohlin model (H-O Model) states that a country should specialize in production and export using the factors that are most abundant, and thus the cheapest or the country should export that product whose production required nation’s abundant factor intensively. Now, New Trade Theory (NTT) is the economic critique of international free trade from the perspective of increasing returns to scale and the network effect that leads to higher productivity and
Improving the manpower and creating the job are the two tasks to boost the economist. The foreign investments always want to receive much more revenue, maintain the position, after that they always use the labor cheap in the invested country. Foreign Direct Investment makes the good impact through some projects. Some individuals working in many enterprises have the choice to approach the higher technology, to learn the higher leadership management and the best science technology. Moreover, the nation has the choice to enhance the level of the labor, to train the labor to use effectively the modern machine, then it can impulse the economist develops fast, the company can receive much more revenue and more reputations.
CHAPTER 1 Introduction 1.1 Background Of Study: Trade is the engine of economic growth and development, the trade liberalization or international trade the important part of a growth and gain more profit. Trade of the countries is the main source of improvement in the process of industrialization and moreover advancement of modern technologies it brings the development experience in trade structure on the basis of enough comparative advantage Hultman (1967). An empirical analysis by Adenikinju and Olefin (2000) showed that international trade and policies can improve the industrial sector and their growth also improves the domestic market and domestic industrial sector. The international trade improves the modern technology
A research by(Howorth & Westhead, 2003) and (Afza & Nazir, 2007)suggests that firms often keep an optimal level of working capital which helps in the maximization of firm value. Moreover, a research by (Gardner, Mills, & Pope, 1986), (Weinraub & Visscher, 1998) confirms that aggressive working capital policies are associated with higher return and higher risk for the firm. We use the above mentioned studies and take working capital as a aggressive financing measure and thereby we find out the relation between facial width to height ratio and aggressive working capital management policies of the financial managers or