’ In a more modern context ‘The notion of ‘total war’ is commonly used within military history to describe a totality of effort, meaning the full mobilization of civil, economic and military sectors for war.’ This, however, is only one of several depictions of ‘total war’. It can be argued that ‘total war’ only is an ideology, and furthermore that it always existed only as a theory. ‘Both Ernst Jünger and Erich Ludendorff did not accepts the totality of the Great War, dissatisfied with the outcome of the war and Germany’s loss, they argued that their country had not committed fully, and both felt that
Productivity is a variable that permits a nation to maintain high wages, a strong money, and handsome return to investment and with all of them a high level standard of living. Global economy is not a zero-sum game and various countries can expand their richness if they can start improving productivity [World Economic Forum (2005)]. Competitiveness defined as: A set of factors, institutions and policies which establish the level of productivity of a nation and therefore, manage the level of prosperity that can be assessing by an economy [World Economic Forum (2005)]. Productivity is a main driver of the rates of return on investment, which in turn reflects the level of aggregate growth rate of the economy. So, a more competitive economy is the one that is expected to grow more rapidly over the way to long term.
His stance is in opposition to the position of Richard Posner. And as we know, Richard Posner presents his overall disposition more so in the stance of economic liberalism. He has been very clear about his belief that the best economic decision is one in which the total earning capacity of the economy is maximized even when that earning capacity is mainly held by a single individual. Posner would have strongly argued against the ruling, claiming that an increase in overall profits due to the proposed structural changes of Penn Station would provide a longer-term and greater total benefit to the economy (Leiter 1). Expanding on the benefit of the economy, he suggests that the increase in total earning capacity of the individual owner of Penn station is a better economic investment than the retention of less profitable, albeit more historical, landmarks in the community (Leff, 1).
We support the statement ‘Monopolies have led to the success of many economies in the world, and therefore, they should be maintained by government if they want their economies to continue enjoying economic growth and prosperity’. This is because monopolies are large in size, they benefit from economies of scale and are able to generate a huge amount of profit- larger than other market structures. With this money, they can invest in research & development, improving their existing products and creating new ones. Moreover, monopolies have a great impact on a country’s economy. Two very large monopolies that positively impacted the United States economy is Standard oil and Steel Company.
It is the human capital investment, knowledge and innovation that contribute significantly to the economic growth. The theory also gives a focus to the spillover effects and the positive externalities from the knowledge-based economy that leads to economic development. It is from these perspectives that this theory holds policy measures as the key determinants of economic growth. For instance, subsidies to research institutions or the provision of education may lead to an increased endogenous growth as a result of the increased incentive for innovation. On the other hand, exogenous growth theorists gave their support to that economic growth highly depends on either the rate of savings or the technical progress rate (Solow model).
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.
[44,pp 242-3] The standard case for free trade is based on a number of assumptions and simplifications. Much of the literature ignores the macroeconomic context. For eg. Kaldor argues that the ricardian rationale for free trade is dependent on the assumptions of constant returns to scale. However, the existence of economies of scale in manufacturing means that a nation that is successfully competing in foreign trade can expect that the advantage of an expanding market will increase it competitiveness.
These factors determine the flows of FDI in the country for the economic benefits of the country. The higher return helps the employees to reinvest in the sector which actually act as the beneficial factors for the country’s economy. However, different authors think about the market size differently. Chakrabarti (2001) believes that for the effective usage of the resources requires the large markets in the country. The larger the markets, the better will be the utilization of resources and this ensures the economies of scale in the market.
ROA, is a financial ration that shows the company ability to generate profit out the used asset. Murniati (2016) found the higher the ROA of a company, the higher the value of the company 's assets and lead to higher stock prices as much in demand by investors. ROE, measures the ability of a company to generate profit on a certain equity. Although, there is no clear link between ROE and stock prices, Rotblut (2013) believe that it works effectively when combined with other indicators. He explained that ROE provide a quantitative measurement of management 's effectiveness at generating profits from a company 's net assets which lead to better trust on the company capability to generate profit and consequently higher demand on its share.
The role of the foreign direct investment (FDI) has been generally recognized as a growth enhancing factor in the developing countries (Khan, 2007). Most developing countries like Pakistan consider FDI as the major source of capital funding. If we talk about today’s world it’s very important for a country like Pakistan to attract foreign direct investment with respect to ongoing projects like CPEC in Gawadar can surely attract a good amount of foreign direct investment which may help in boosting the economic development. FDI alleviate economic growth in the developing countries, this has greater attention and significant for the economists and policy makers, due to following reasons: First, FDI provides an ease to developing countries to access and learn new technology, make management and labor skilled and effective. Second, through FDI, host countries increase the surplus of capital account and help to improve or rectify the trade balances.