The term trade cycle also referred to as economic cycle or business cycle. Trade cycles essential means a phenomenon of cyclic fluctuations of growth and fall in the market economy. These cyclic fluctuations takes place over a long period of time, consisting of several years and are associated with the long term trend of economic activity. Trade cycles occur in various phases, they begin with periods of rapid economic growth which are subsequently followed by periods of sluggishness or stagnation and then periods of slow growth. This process continues in a cyclic phase and one such cycle is called a trade cycle.
However, despite the limitation enunciated above, sustainable and persistent increase in per capita output and net national output is a good description of economic growth (Dwivedi, 2006). DFID (2011) elaborates that economic growth occurs through persistent increase and improvement in the ability to satisfy demand for goods and services as a result of increased level of
Economic growth means an increase in real GDP. This increase in real GDP means there is an increase in the value of national output / national expenditure. The benefits of economic growth include: Higher average incomes. This enables consumers to enjoy more goods and services and enjoy better standards of living. Lower unemployment With higher output and positive economic growth firms tend to employ more workers creating more employment UK unemployment rises during a recession – falls during periods of economic growth.
Unemployment “An economy witnesses a number of business cycles in its life. These business cycles involve phases of high or even low level of economic activities” (Business Cycle, 2013). During high periods, jobs tend to be overflowing, since companies need more workers to keep up with demand. When unemployment is low, consumer spending tends to be high because most people have income to spend, which is good for businesses and helps drive growth. When unemployment is high, consumer spending tends to be low because unemployed people don't have excess income to spend.
INTRODUCTION Economic growth is defined as the increased capacity of an economy to be able to produce goods and services in comparison from one period of time to another. This is figured by the genuine Gross Domestic Product (GDP) and development, and is measured by utilizing genuine terms such as “Balanced Inflation”. These terms help to remove any distorted views on the perceived outcome of inflation on the cost of merchandises produced. Likewise, Economic growth is related to the high expectations in a person’s standard of living. If the standards are high, it wouldn’t be beneficial for the economy as the working class individuals will face a lot of trouble.
5. Boom: This is an optimal stage of the business life cycle, since there is a balance between external factors, internal factors and management objectives, so that all stakeholders feel good within the firm. Thus the firm operates with maximum efficiency and this stage could be classified as a transition between growth and maturation. At this stage of life, the level of the firm's risk is low; it is still likely to attract investors to the realization of new projects. 6.
That is, the gross domestic product increases as a result of an increase in per capita income as the country experiences a technological progress which increases its productive efficiency. This is because such increase in productive efficiency increases capital and labor consumption. The second assumption is that the government does not engage in any trade as this will influence policy and change it into endogenous trade rather than exogenous trade. In addition, there should be no international trade (Agénor, 2004; Barro & Sala-i-Martin, 2004; Barro,
A Business cycle refers to alternating periods of contraction and expansion in the economic activity. The main essence of quoting business cycle in this context is to say that business cycles will not damage the organisation if they are predicted with some reliability. While business cycles affect all industries, each industry also undergoes specific types of changes. The author(s) tried to explain other forces like competition, technology and institutional rules, the joint impact of all those forces are to be carefully
The economic growth at the first stage is increase from 2.16% in year 1996 to 3.37% in year 1997. But GDP drops significantly to 0.04% in year 1998. In year 1999, the GDP growth slightly to 0.25% and continues increase dramatically to 4.30% in year 2000. The GDP decreases sharply from 4.30% to 1.32%in year 2001. After that, the turning back of economic growth increases to 2.65% in year 2002.
During mature phase the nature of competition has been established and a company often comes up with various strategies which involves product differentiation or niche marketing (Porter, 1980). Unlike growth phase, mature phase is more predictable in term of its industry dynamics. As a result, the growth of the market is more limited as the product perforation has reached its saturation (Aitken, Childerhouse & Towill, 2003). Besides, the price setting improves due to the better understanding of the market. Smith (2012) states that customer interest is more on the price-setting issues.