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There are more benefits of starting a business in a high cost economy than a low cost economy: Discuss - Essay Example

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Starting a business needs consideration of economy where the business is located with the factors that are available to operate the business and the returns from the start of the business (Champ & Freeman, 2001). The essay brings out the factors that a business should consider…
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There are more benefits of starting a business in a high cost economy than a low cost economy: Discuss
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Extract of sample "There are more benefits of starting a business in a high cost economy than a low cost economy: Discuss"

Download file to see previous pages A high cost economy is an economy with a high growth and security in the economies. There are characteristics that are considered in both the economies to ensure there is satisfaction in the business that is put up in an economy (Cipolla, 2007). The economies are evaluated through the degree of per capita in the countries, the general living standards of those that live in the country, the infrastructure that is available and the level of industrialization. Examples of high cost economies in the world include Italy, Norway, Denmark, Japan, United States, Germany, France and Canada among others (Cipolla, 2007). Low cost economies include most African countries, Vietnam, Afghanistan, Philippines, Pakistan and India.
There are factors that are considered before starting and operating a business. Knowledge and expertise is considered in the success of a business. This will dictate the production in the business. Market and demand are also considered in starting a business. A business is started so that it satisfies the needs of consumers through demand (Hargreaves, 2007). Other factors to be considered include costs of starting the business, capital in the economy, competition and the location of a business.
Starting a business in a high cost economy is better than stating a business in a low cost economy. In operation a business in a high economy, the economy is able to benefit from the high level of literacy in the regions as these results to high trained workforce. The business will be able to acquire the skills that they need for operation. The situation is different for a low economy (Perry, 2002). A low economy is characterised with low level of literacy with low level of skills of the workforce. The economies depend on the government for providing education and have low ratio of public expenditure assigned to education. Operating a business in the low economy ...Download file to see next pagesRead More
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