Economic environment - Essay Example

Comments (0) Cite this document
For any government there are three major purposes which are maximum employment, stable prices and economic growth. The primary role of…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.2% of users find it useful
Economic environment
Read TextPreview

Extract of sample "Economic environment"

Economic Environment I. Monetary policy and fiscal policy are two different instruments used by governments to help in the economic development of a country. For any government there are three major purposes which are maximum employment, stable prices and economic growth. The primary role of monetary policy is to regulate the circulation of money and increase or reduce the interest rate. This helps to keep the price stable and this will greatly benefit the economic system of a country. This will ensure business sector to perform with confidence as price levels will not fluctuate heavily in the future. This is the case in the United States where the levels of price and wages do not fluctuate beyond a certain measure (Friedman, 1968). The role of fiscal policy is to control the spending power and revenue collection of the government. For instance, during phases of high unemployment government can increase public spending or can reduce taxation. This will also help in increasing the declining demand of products as low taxes will increase the purchasing power of consumers (Eshag, 1983, p.41).
II. Human development index (HDI) is an assessment of the average achievement of human development in a specific period like life expectation, education and per capita income. Australia ranks in the second position with a value of 0.933 while Qatar ranks in the thirty-first position with a value of 0.851 in the HDI table (Human Development Index [Table 1]).
In 2013, the life expectancy of males in Australia was 80.3 years, in Bangladesh it was 69.9 years, and in Uganda it was 58.0 years (Human Development Index [Table 5]). Australia is a developed country and its life expectancy of males is much higher than Bangladesh or Uganda – both of which are developing economies. There are various factors that cause such differences in life expectancy and they are education, employment, government policies, lifestyle like excessive smoking or drinking can cause obesity leading to heart diseases, and so on.
Eshag, E. (1983) Fiscal and Monetary Policies and Problems in Developing Countries, Cambridge University Press
Friedman, M. (1968) The Role of Monetary Policy. The American Economic Review, LVIII(1), 1-17
Human Development Index (2015) UNDP, retrieved on May 20, 2015 from: Read More
Cite this document
  • APA
  • MLA
(“Economic environment Essay Example | Topics and Well Written Essays - 250 words”, n.d.)
Economic environment Essay Example | Topics and Well Written Essays - 250 words. Retrieved from
(Economic Environment Essay Example | Topics and Well Written Essays - 250 Words)
Economic Environment Essay Example | Topics and Well Written Essays - 250 Words.
“Economic Environment Essay Example | Topics and Well Written Essays - 250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Economic environment

Economic Environment in bad condition and needs to restored. The shortages of energy supply may hold back Brazil in terms of its economic growth (Datamonitor 2010). The government is the main buyer in the sector, although some forms of public-private partnerships have been established from 2006 (LAM 2010). The sector is characterised with consolidation and large players, and it has seen an entry of foreign investments in past couple of years. The industry reflects a stable and health growth and opens many opportunities for external players as the business environment in Brazil is improving. At 58th position in the Global Competiveness Report (WEM 2010), Brazil is relatively stable, a result of its two decade long fight...
7 Pages(1750 words)Research Paper

BUSINESS ECONOMIC ENVIRONMENT LBSEC2051 demand for air travel which can directly reduce the number of fares for GoFast Airlines, as which happened with Singapore Airlines earlier in 2011 [Singapore Business News (SBN), 2011]. This will directly affect their low-price flights approach which, mixed with quality service, gained them the customer base they have today. Economic Recession Economic recession is potentially the most important economic factor which could affect the profitability and the market leadership of GoFast Airlines. In times of economic recession, the consumer’s purchasing power is weaker. In such times, although important corporate business trips may be made anyway, the smaller business may...
6 Pages(1500 words)Essay

Regulatory & Economic Environment Assignment

...? Regulatory & Economic Environment XXXXXXXXX XXXXXXXXX XXXXXXXXX XXXXXXXXX XXXXXXXXXX Question Part a Brought Kitchens is an already established company in the market and thus it is not very difficult for the company to engage in a new market and have the suppliers have them as their favorites. However, there is the posing challenge of competition. Like in any industry, competition is one of the factors that exist in business and the manner through which the various players decide to handle this matters a lot. For any new market to have the interest of Brought Kitchens in mind, one major factor to put to put into consideration is the aggressiveness of the company in the market. This is also the same for...
6 Pages(1500 words)Essay

Economic Environment of China

...? Economic Environment of China Introduction Chinese Economic system is an example of the socialist economy in the world. This implementation of the socialist system in the economy has contributed to the prosperity of the country and has led to remarkable growth rates over the period of time. The system in which the Chinese markets work has made it the fastest growing economies of the world. The international trade of the country is also quite pronounced and it has made the country one of the dominant players in the world market. This paper makes the attempt to analyze how far the socialist structure of economy has been implemented in China and how it has contributed to the GDP growth and...
17 Pages(4250 words)Essay

Global economic environment &marketing

...Business Global Economic Environment &Marketing Part A Question Four 4 There are various issues and problems that the World Trade Organisation faces that led to the premature ending of the summit in Cancun that resulted in the summits failure. One problem the organisation encountered was the increasing domestic economic repercussions and technical complexity of issues that were being discussed by the summit. This is where each country experienced different economic situations hence wanted policies that would be advantageous to them individually. Secondly, the fact that there was emphasis on the achievement of fairness rather than focusing of liberalization of trade also...
6 Pages(1500 words)Essay

Regulatory and Economic environment Essay

...23 November 2006 United Kingdom and Sweden: Economic and Regulatory Environment The Kingdom of Sweden is the fifth largest country in Europe, according to land area. It is known for having an even distribution of income among its inhabitants. In fact, Sweden is one of the most evenly income distributed countries in the world. ("Sweden."). The average per capita income in Sweden is currently at 20,828 or 280,746 Swedish Kroner (SEK). The United Kingdom is a member of the G8, with the fifth largest economy in the world. It ranks third in population among the European Union states. (EU). What are some similarities and differences in Sweden and the United Kingdoms' regulatory economic...
6 Pages(1500 words)Essay

Regulatory and Economic environment

...Regulatory and Economic environment China is country which has seen great changes in its economic environment since its inception. China is one of the oldest civilizations in the world today. Time to time it has seen booms and declines in its economy. Chinese economy is recognized as the sixth largest economy in the world. China emerged itself into a powerful economic entity from an agricultural society. In addition, according to a report, China is the third largest economy in the world based on purchasing power parity. 'When one examines the pace and progress of economic reform in the People's Republic of China (PRC), one has to...
6 Pages(1500 words)Essay


...The process of the last expansion of the European Union from the economic point of view had some prominent features. First of all, it was a joining of ten countries with essentially lower social and economic indices in comparison with the European Union-15 that proves a crucial opportunity of association for different by the level of development groups of countries not only on principles of free trade or a customs union, but also the economic union. Secondly, the expansion of the Union became the important stage of the soft enough (without any economic shocks) adaptation of the economy of the European Union-10 to new conditions of the competitive...
5 Pages(1250 words)Essay


...-developed. Without a proper base for development with sufficient infrastructure and means for trade and investment, attracting R&D initiatives from foreign sources is still a challenge for most of the developing countries than an opportunity. A well-developed environment for innovation both in private and public sector has drawn and is likely to draw innumerous economic agents. One way is to improve and nurture researchers and various institutions to bring about a total development in local knowledge base and make the universities and institutions that deal with technical innovation, more attractive. This forms the formal part of the R&D expenditures. More of knowledge process outsourcing will be...
15 Pages(3750 words)Essay

Venezuela's economic environment

... in the geopolitical structure of the world. Economic indices Venezuela, at 2013, is the world’s 34th largest economy with a GDP of $ 407.4 billion (Central Intelligence Agency 1). It experienced a growth rate of 1.6 percent, which is attributed to a slow and unstable recovery from the 2008’s world recession. In 2012, it experienced a growth rate of 5.6 percent. Besides, it has Per Capita GDP of $ 13, 600. This is the world’s 99th largest PPP. Oil forms a major part of Venezuelan economy since it contributes 96 percent of its export earnings, 12 percent of its GDP, and 45 percent of its annual budget. Manufacturing forms a huge percent of Venezuelan’s economy as the country exports steel, cement, and aluminum. The industry sector... ...
5 Pages(1250 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Economic environment for FREE!

Contact Us