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.
Social globalization describes an exchange of values, ideas and it has facilitated the promotion of equality, dignity and human rights. Finally, the major effect of globalization is produced in the world economy. The aim of globalization is the growth of the global economy by giving firms a superior competitive position with lower cost through free trade and by increasing the number of consumers, products and services. Some people said it helps developing nation-states to “catch up” the industrialized ones and it improves the overall standard of living. Nonetheless, there is a risk for smaller companies that cannot compete in an international market and world governments should promote international investments and try to eliminate barriers to trade even if it causes them some
Despite the fact that these migrant workers will increase the crime rate, however , it is important to take the big picture into consideration, this benefits from having cheap labor force clearly outweighed the negative consequences of migrant workers . This is because the influence of a country mostly depends on the economic development. To conclude, it seems that the effect of migrant workers is more positive than disadvantages. Although migrant worker might raise social unstable factors and increase the crime rate , the Cheap labor force would help to boost the economy since host country does
Exports can improve a country’s position in the balance of trade (Barrett, 1990). When a country exports, they gain access to foreign exchange resources. Additionally, exports enable a county to sell the excess production capacity. This will enhance the economy and will promote global expansion for the local businesses. Exports will also potentially bring stability to otherwise fluctuating market demands.
This revenue can be used by the government to invest in other, struggling sectors and human capital. Entrepreneurs are similarly, if not more, critical when the economy is doing badly. At the point when unemployment is high and the economy is contracting or stagnating, dynamic entrepreneurship could turn the economy around. By developing novel products or increasing competition, new firms can boost demand, which could in turn create new job opportunities and reduce unemployment. For instance, For example, Capitalist economies are not the only one in empowering entrepreneurs.
The term economic growth, meaning an increase in the production of goods and services over a period (normally linked with population), at a superficial level seems unequivocally good: what negatives could there even be? This simplification will be considered in this essay whilst also considering the definite negatives of economic growth. I will also end with a statement about the best source of economic growth for the general population – in my eyes the ones who matter most. One of the most directly potent benefits of economic growth is an increase in the standard of living within the population. This growth is demonstrated in the AD/AS graph above.
Entrepreneurships always use their advantages to make the economic grow well. The advantages can include that they provide the employment and improve people’s consuming ability; moreover, they make a contribution to nation’ tax and education. When the unemployment rate increases, the enterprise can provide opportunities to people who hunt for work to earn a living. When the world is eager for finding out
It will affect compensation and benefits negatively and positively. The positive thing when a country decides to diversify economy they will have the chance to attract businesses and tourists from different countries which will lead to a high rate of increasing the growth and diversification limits an investor's risk extending from an individual company or type of investments Also, it's will "improve national youth employment, improve export, given the opportunity to explore human capabilities, Reduce over-dependent on some unrealistic economic opportunities, and it's will Reduce the risk of land crashing into unexpected economic crisis”. (Kademi, 2008). The negative thing is that having a lot of sectors there will be a violation of the ethics of business administration such as bribery or exchange of utility between companies also this challenge could cause overcrowding and lack of expertise for example If a car company takes over a food distribution company, for example, it should retain proper expertise from the original company or it may find itself in
The importance of FDI and trade openness was the notorious features trend toward globalization in recent years and has emerged as one of the talking points by the economist when explaining the growth of developing countries. As this two component is assumed to have a parallel relation, the positive trade openness contributes to nation growth by improving productivity and export capability. Trade openness also provides a greater efficiency, It is found that the countries with more openness relatively outperformed their economy than less opened countries because they indirectly promoting the FDI to their countries thus enjoying the benefits of
Other than macroeconomic variables volatility, there also underlying factor will affect the stock market volatility. The first factor is economic growth in develop and developing countries. The better the economic growth, households will demand more goods and services and this will help firm generate more profit. Thus, it can increase the organization share price and organization dividends. Other than that, stability also is one of the factor will affect the stock market volatility.