If the market access conditions have increase and been influenced by bilateral trade agreements. Trade agreements provide trading partners with lower tariffs. But it have made it harder for developing countries to take full advantage of poverty reduction and rapid growth since the government of particular country will apply different level of tariff rate to similar product depending on their origin. For exporter, markets access not only the disadvantages that the exporter faces to domestic producers and also on the relative pros and cons that it has compared to competitors from other countries (Fugazza & McLaren,
Therefore, government could use supply side policies to deal with the unemployment situation such as in interventionist supply-side policies will increase the levels of human capital of an economy by support education and training institutions with subsidies or tax benefits and for market-based supply-side policies will reduce trade union power. Trade union power will lower the costs of production to firms and increase the number of workers that firms may hire. Although supply side policies can decrease unemployment,
Malthusian indicates that when population increases, land will reduce due to the limited land. The debate of between positive and negative effects of population on economic growth is being ongoing of issues either population is beneficial or deteriorates to economic growth in developing countries. But there are researcher that agreed with Malthus. As referred to Golley and Wei (2015). There are negative impact on GDP growth when population
This growth is demonstrated in the AD/AS graph above. Having a higher GDP output from Y1 to Y2 means that we had a higher AD (a shift out to the right). As the UK has a high AD proportion in consumption this reduces unemployment as labour is derived. This leads to higher incomes (and thus a wage spiral occurs), so people tend to spend more, leading to a better standard of living. The wage spiral occurs as we are getting closer to the maximum employment so people tend to want a higher wage as the competition has reduced.
In the same time there is also reduction of cost of recruitment. However, we may considered that in the case of Barclays, the retention cost represents a little part of all the cost of the company. One other important question is, what may motivate workers to be more productive? The motivation offers by a higher wage, or pressure induce to recover this additional cost for the
The consequences of adopting this definition will be illustrated to bring out its meaning. For example, research studies might find more poverty, according to this definition, in certain wealthy than in certain less wealthy societies, although the poor in the former might be better off, according to some criteria, than the poor in the latter. Again, despite continued economic growth over a period of years, the proportion of the population of an advanced industrial society which is found to be in poverty might rise. Certainly some of the assumptions that are currently made in comparing and contrasting the more developed with the less developed societies, and in judging progress in overcoming poverty in affluent societies, would have to be revised. POWERTY FACTS AND STATS More than
Economic development affects the evolution of institutions and political change. According to Jong-a-Pin (2009) “the higher degrees of political instability lead to lower economic growth”. Political instability also reduces governmental prospects affecting the economy
RELATIVE STRENGTH OF OTHER CURRENCIES Currency valuations are also equally affected by global parameters. Country’s economic strength is compared with other countries strength and if other countries are strong money moves to those countries. It ultimately reduces valuation of the country with comparatively poor health of the economy. MACROECONOMIC AND GEOPOLITICAL EVENTS In the case of events like elections, wars, monetary policy changes, financial crisis, currency of the country is highly affected. Such macroeconomic and geopolitical events also affect other parameters.
But, when they considered simple access to microfinance institutions, they found that simple access to microfinance institutions has significantly higher average effect on poverty reduction in the urban areas than the access to the loans for productive purposes. However, there remains much debate regarding the microfinance effect on poverty reduction. Rutherford (2009) argues that evaluating microfinance impact on poverty reduction is not an easy task. It is difficult to affirm that in a certain area only microfinance increases income, creates new jobs through small businesses or stimulates the poor people for self-employment. But, without doubt, it can affirmed that if microfinance banks or institutions are able to satisfy the demands of their clients and clients can invest their borrowed money in a proper way, microfinance can have a positive impact on reducing
There are few benefits come under trade liberalization to the term of economic development will be discussed. Poverty Reduction First benefit of free trade or low-tariff or taxes in global trade in developing country will be poverty reduction according to many researches. Literally income of poor in developing countries will increase in the result of increasing in export or import. Some advanced countries set high tariff or restriction to protect domestic industries but once they lower down the tariffs or remove restriction, export from developing countries will increase eventually. Developing countries access new market and increase export result in create more jobs, increase income of poor, increase in foreign direct investment.