This has led to little hope for improvements in export position, which is crucial in its potential, export oriented growth. Liberalization has led to increased income inequalities between the world’s richest countries and the world’s poorest countries. As long as there exists an ignorance for the side effects of the neo-liberal economics, development and just growth is seen as relatively farfetched, even in the long run. External factors are the foundation for the underdevelopment in most developing countries and are still hindering development by allowing more developed countries to exploit them. Even though internal adjustments must also take place in order to see development, the external factors must change first allowing for internal
Their central assistances usually advance from the assumption that the international trade of competitive products is accomplished in imperfect markets established through the scale properties that encourage economic attention, and validate that it is not only due to variances in resource endowments that exist between countries, but also to the connections of their economic activity. But a trade policy also courses the fluctuations in the government role. Being the economy in another best state, it offers new opinions in favor of involvement and discusses abundant significance to the theory of commercial policy. In the first circumstance, because the market structure stops it from getting Pertain optimality and in the subsequent, because governments have now motivations for developing active commercial policies, mostly concerned with towards the involvement in imperfect markets, regulatory international companies, and protecting spillovers producing
As aggregate demand affects the supply (production, employment and inflation) they saw it as the government's role to build it back up using monetary and fiscal policies. Similar to Classical economists, Keynesian believe the economy comprises the same part: consumer spending, government spending, and business investments. However the major difference is that Keynesians believed government spending could help account for the lack of consumer spending and investment. The Keynesian theory also was based on the idea that wages and prices were sticky and that is would give aggregate supply a horizontal line in the short run. Overall, the main idea of the Keynesian Economist was to save and create jobs and
Anderson (2008) and Weiss and Anderson (1992) also applied TCT when exploring selection of integrated versus independent sales forces by manufacturing firms. One major problem that can be identified in franchising in the context of TCT is the potential of quasi-rent appropriation. A quasi-rent represents the difference between the value of an asset and its salvage value (Klein et al., 1990). Quasi-rent appropriation is especially risky when initial fees are high. Franchisees will consequently ask for higher rates of return that allow them to depreciate the value of their investment in order to balance out this type of inefficient risk-bearing.
Trading company must be profitable. Not only that, all the businesses produce lots of product and because of employment rate is higher, economics growth rapidly. To prevent saving money in a bank, the central bank conducts a monetary policy and low interest rate encourage people to spend more money. Fiscal policy is conducted too. As was When Government expenditure cut for trying to stop stagflation that causes of economic down turn in stagflation, it is important to stimulate the supply side for that company have to create a new effective machine and reduce cost of manufacturing then aggregate demand of other countries will up.
Nation state became a central figure of economic thinking. Security of the state is he main issue as it is closely linked to the power while interacting with other states. Strong army and the “acquisition of wealth” are the ways to strengthen the state. Maximised tax revenues and ‘export more, import less’ principle were seen as ways to enhance the level of wealth the country owns. The goal of a state is to own a surplus in its trade balance.
In international trade, the term “Dumping” is used to name a phenomenon consisting substantially in a predatory pricing practice. In fact, Dumping occurs when a country or a company export a product at a price which is lower in the foreign market with respect to the domestic one. Basically this represents a way through which exporting companies/countries strive to gain foreign market share in order to be more competitive in the international context. However, since Dumping often involves substantial volumes when exporting a product, it is said to be dangerous to the financial viability of the producers/manufacturers of that same product in the importing country. This happens because it could be that domestically produced goods may result to be more expensive with respect to the imported and dumped ones.
Financial inclusion is the outcome of financial exclusion. 'Financial exclusion ' is a situation where people do not have opportunities and access to grab financial product and services such as banking, credit cards, home insurance, education loan and other essential utilities. Financial illiteracy is the main cause of financial exclusion which proves to be the greatest hindrance for the economic growth of the country. Large sections of the society depend on the private money lenders at immoderate rates to fulfill their financial needs and wants. Even after 60 years of independence, financial facilities through banks, has not been reached to rural segments and disadvantaged and low level income groups.
1. Introduction Poverty has been one of the drawbacks in economic development activities. Coleman (1999) argues that the lack of access to capital in less developed countries resulted in severe poverty in those countries. Everything around the people in Less Developed Countries (LDCs) revolves in a cyclical and unpredictable manner, whereby access to little or no capital and the production on a very small-scale basis makes it more unbear-able for the individuals to accumulate savings, acquire relevant assets and plough back their returns into more productive activities. Poverty in LDCs can be associated with the existence of little or no profit generating ventures, most especially in the rural areas, no or little financial support, overpopula-tion and poor infrastructure which lead to low productivity and persistent poverty in LDCs.
Although the economy observed a comfortable current account balance, the decreasing rate of remittance and manpower exports might cause a serious hamper to the economy by reducing employment opportunities and output levels. One way of looking at a trade deficit is that we’re getting richer, we’re gaining access to more imports, the very thing we conduct trade for in the first place. Imports are the reason that we trade, exports being just the hard work we’ve got to do to be able to afford them. Historically, Bangladesh faces trade deficit balances because we have to import various items in order to meet our domestic demand. We are lagging behind in exporting because of our inefficiency in the utilization of our indigenous resources.