The Global Economy Essay. Words9 Pages. The global economy is a complex and multi-faceted system. When one variable changes, such as a dramatic increase in the New Zealand dollar, the spin-off effects can be detrimental to some while increasing the wealth and living-standard of others. This essay will discuss the global economic system we have 7/5/ · Introduction: The field of economics can be defined as the study of how individuals “coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society” Title: Differences between Beta and Sigma Convergences. Example essay. Last modified: 23rd Mar Essay writing. The idea of setting essays is to offer you the chance to make a longer, more complex argument. Nonetheless, in the model we recommend, the fundamentals remain the same. In each paragraph, a flow of main idea (thesis) - explanation / reasoning (justification) - evidence / example (support) is an excellent structure to use
Writing for Economics: Essay writing
In this essay we will discuss about the Economic Development of a Country. After reading this essay you will learn about: 1. Economic Growth and Economic Development 2. Determinants of Economic Development 3. Obstacles or Constraints 4. Pre-Requisites or Need 5. Structural Changes.
Again Mrs, economy essay. In underdeveloped countries the problems are that of initiating and accelerating development. The processes of economic development should not only generate increased or enhanced means of production but it should also make room for equitable distribution of such resources.
Thus by the term economic development we mean a process so as to raise the per capita output with a scope for equitable distribution. On the other hand, changes arising on the factor supply are also related to—capital accumulation, discovery of new resources, introduction of new and more efficient production techniques, increase in size of population and organisational changes.
Cause and consequences of economic development are mostly determined by the time path and velocity of these aforesaid changes. Economic development, being a dynamic concept refers to the continuous increase in production over the changing time path, economy essay.
Secondly, attainment of economic development indicates increase in real per capita income over time. Here the real per capita income of a country simply indicates total money income adjusted to price level changes over time, i.
Thirdly, by the term economic development we mean continuous increase in the level of real national income over longer time period, covering a period, not less than 25 to 30 years. While explaining the distinction between economic development and economic growth, C.
As per this view, the term growth implies higher level of output as well as achievements in terms of increase in the volume of economic variables. Although some economists have observed slight differences between economic development and economic growth but all these differences are imaginary and unreal and thus have little practical value.
In this connection Prof. By economic development we mean attainment of higher level of productivity in almost all the sectors and a better level of living for the general masses. The path of economic development in an underdeveloped economy is full of hurdles or impediments. Attaining higher level of economic development is a function of level of technology, economy essay.
Economic development is thus a process of raising the rate of capital formation, i. both physical capital and human capital. Moreover, the task of economic development is influenced by a number of factors such as—economic, political, social, technological, natural, administrative etc. According to Prof, economy essay. Lewis, there economy essay three principal causes of economic development.
i Efforts to economise, either by reducing the cost of any product or by raising the yield from any given input or other resources, economy essay. While analysing the determinants of economic growth, Prof. Spengler and W. Rostow have made sincere attempts in this regard, economy essay. Spengler has listed about nineteen determinants but Rostow mentioned six propensities having much bearing on economic growth.
All these propensities are showing a clear-cut picture of determinants of economic growth neglecting the non-economic factors totally. Regarding the determinants of economic growth, Prof. Again Prof. Following are some of important economic and non-economic factors determining the pace of economic development in a country:. Population is considered as an important determinant of economic growth. In this respect population is working both as a stimulant as well as hurdles to economic growth.
Firstly, population provides labour and entrepreneurship as an important factor service. Natural resources of the country can be properly exploited with manpower resources. With proper human capital formation, increasing mobility and division of labour, manpower resources can provide useful support to economic development.
On the other hand, economy essay, higher rate of growth of population increases demand for goods and services as a means of consumption leading to increasing consumption requirements, lesser balance for investment and export, lesser capital formation, adverse balance of trade, increasing demand for social and economic infrastructural facilities and higher unemployment problem. Accordingly, higher rate of population growth can put serious hurdles on the path of economy essay development Moreover, growth of population at a higher rate usually eat up all the benefits of economic development leading to a slow growth of per capita income.
But it has also been argued by some modern economists that with the growing momentum of economic development, standard of living of the general masses increases which would ultimately create a better economy essay for the control of economy essay growth, economy essay.
Moreover, Easterlin argued that population pressure may favourably economy essay individual motivation and this may again lead to changes in production techniques. Thus whether growing population in a country practically retards economic growth or contributes to it that solely depends on the prevailing situation and balance of various other factors determining the growth in an economy, economy essay.
Availability of natural resources and its proper utilization are considered as an important determinant of economic development. If the countries are rich in natural resources and adopted modern technology for its economy essay, then they can attain higher level of development at a economy essay pace. Mere possession of natural resources cannot work economy essay a determinant of economic development.
Inspite of having huge variety of natural resources, countries of Asia and Africa could not attain a higher level of development due to lack of its proper utilization. But countries like Britain and France have modernised their agriculture in spite of shortage of land and the country like Japan has developed a solid industrial base despite its deficiency in natural resources.
Similarly, Britain has developed its industrial sector by importing some minerals and raw materials from abroad. However, economy essay, an economy having deficiency in natural resources is forced to depend on foreign country for the supply of minerals and other raw materials in order to run its industry. Thus in conclusion it can be observed that availability of natural resources and its proper utilization is still working as an important determinant of economic growth.
Capital formation and capital accumulation are playing an important role in the process of economic development of the country. Here capital means the stock of physical reproducible economy essay required for production.
The increase in the volume of capital formation leads to capital accumulation. Thus it is quite important to raise the rate of capital formation so as to accumulate a large stock of machines, tools and equipment by the community for gearing up production.
Thus Prof. Moreover, capital formation requires the suitable skill formation so as to utilise physical apparatus or equipment for raising the productivity level. In an economy, capital accumulation can help to attain faster economic development in the following manner:. a Capital plays economy essay diversified role in raising the volume of national output through changes in the scale or technology of production.
b Capital accumulation is quite essential to provide necessary tools and inputs for raising the volume of production and also to increase employment opportunities for the growing number of labour force. c Increase in capital accumulation at a faster rate results increased supply of tools and machinery per worker. Various developed countries like Japan have been able to attain higher rate of capital formation to trigger rapid economic growth. Normally, the rate of capital formation in underdeveloped countries is very poor.
Economy essay, they must take proper economy essay, viz. In order to attain a rapid economic growth, the rate of domestic savings and investment must be raised to 20 per cent, economy essay.
Naturally, in the initial period, it is not possible to step up the rate of capital formation at the required rate by domestic savings alone. Initially, to step up the rate of investment in the economy, inflow of foreign capital to some extent is important. But with the gradual growth of domestic savings in the subsequent years of development, the dependence on foreign capital must economy essay be diminished.
Being a technologically backward country, India has decided to permit foreign direct investment in order to imbibe advanced technology for attaining international competitiveness under the present world trade and industrial scenario, economy essay. Capital-output ratio is also considered as an important determinant of economic development in a country.
By capital-output ratio we mean number of units of capital required economy essay produce per unit of output. It also refers to productivity of capital of different sectors at a definite point of time. But the capital output ratio in a country is also determined by stage of economic development reached and the judicial mix of investment pattern, economy essay.
Moreover, capital-output ratio along with national savings ratio can determine the rate of growth of national income. This is a simplified version of Harrod-Domar Model. This equation shows that rate of growth of GNP is directly related to savings ratio and inversely related to capital-outlet ratio.
Thus to achieve a higher rate of growth of national income, the country will have to take the following two steps:.
Favourable investment pattern is an important determinant of economic development in a country. This requires proper selection of industries as per investment priorities and choice of production techniques so as to realise a low capital-output economy essay and also for achieving maximum productivity. Thus in order to attain economic development at a suitable rate, the Government of the country should make a choice of suitable investment criteria for the betterment of the economy, economy essay.
The suitable investment criteria should maximise the social marginal productivity and also make a balance between labour intensive and capital intensive techniques. Another determinant of economic development is the occupational structure of the working population of the country, economy essay. Too much dependence on agricultural sector is not an encouraging situation for economic development.
Increasing pressure of working population on agriculture and other primary occupations must be shifted gradually to the secondary and tertiary or services sector through gradual development of these sectors. In India, economy essay, as per census, about As per World Development Report,whereas about 45 to 66 per cent of the work force of developed countries was employed in the tertiary sector but India could absorb only 18 per cent of the total work force in this sector.
The rate of economic development and the level of per capita income increase as more and more work force shift from primary sector to secondary and tertiary sector.
to secondary activities of all kinds and to a still greater extent into tertiary production, economy essay. Thus to attain a high rate of economic development, inter-sectoral transfer of work force economy essay very much necessary.
The extent and pace of inter-sectoral transfer of work force depend very much on the rate of increase economy essay productivity in the primary sector in relation to other sectors. Extent of the market is also economy essay as an important determinant of economic development.
Expansion of the scale of production and its diversification depend very much on the size of the market prevailing in the country. Moreover, economy essay, market created in the foreign country is also working as a useful stimulant for the expansion of both primary, secondary and tertiary sector of the country leading to its economic development. Japan and England are among those countries which have successfully extended market for its product to different foreign countries.
An Essay on Economic Theory (Part 1: Production, Distribution, and Consumption) by Richard Cantillon
, time: 1:45:02Essay on the Economic Development of a Country
Essays on Economics. One must have a clear understanding of economics in order to fully understand the issues that are plaguing the world today. Many of these issues pertinent to our time, such as overpopulation, inflation, and unemployment, are related to deep economic problems that are negatively affecting nations all around the world In this essay we will discuss about the Economic Development of a Country. After reading this essay you will learn about: 1. Economic Growth and Economic Development 2. Determinants of Economic Development 3. Obstacles or Constraints 4. Pre-Requisites or Need 5. Structural Changes. Contents: Essay on the Meaning of Economic DevelopmentEstimated Reading Time: 9 mins The American economy of the s is commonly associated with excessive economic growth and prosperity. However, the horrific consequences and underlying social problems associated with this growth are contrasted in Marry Harrons film American Psycho. The film equates the excessive consumer culture of the yuppie society to the sadistic evil
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