Importance of Internal and External Factors to Economic Development Introduction Countries throughout the world have achieved varying levels of economic development due to the governance style adopted and external factors influencing them…
Download file to see previous pages...
However, the biggest question in the minds of everyone is what has causes varying rates of economic development in a country. What are the reasons that have seen countries such as Japan and China emerge to become among the greatest economies in the world with a record time? Additionally, one would always want to understand whether the involvement of the government in the economic process causes accelerated economic growth or should the government give the private sector autonomy in determining how they conduct their activities. Additionally, countries do not live in vacuum but have to trade with their neighbors and their security may be threatened by the activities of others and therefore they have to keep into consideration the external factors in economic development. From the foregoing introduction, it is clear that one cannot argue entirely that the level of economic development in a country is attributable to only internal or external factors. Although interplay of both internal and external factors determines the path of economic development of a country, internal factors are the greatest determinants economic development of a country. The major internal factors that determine the pace of economic development in a country is the type of governance adopted. ...
It is undisputable that the leadership of a country determines the level of economic growth that a country is able to achieve. In a country, governments hold much power and are expected to offer leadership in terms of economic and social developments that take place. Consequently, when a government fails to carry out an analysis of the impacts of its policies, this may spell out the starting point of its failure. The argument that governance really plays a role in determining the pace of economic development in a country is collaborated by Gerschenkron. When assessing economic backwardness in different countries, Gerschenkron argued that there is a strong correlation between economic underdevelopment and centralized bureaucracy in a country. The type of governance adopted determines the way in which the required capital for industrialization is mobilized and allocated. In a country where the government encourages private to public sector investment, the rate of economic development is expected to become accelerated due to efficiency in resource allocation and monitoring thereby reducing wastage. In such an economy, the government concentrates in development of the right infrastructure required for development while the private sector provides and invests capital required for industrialization. Countries that promote public-private sector partnership in economy leads to development of free markets that have high productivity and efficiency. In countries where free trade thrives, high productivity is achieved since the owners of such resources closely monitor and control the production process unlike in countries where the government controls production. Government control in the production process leads to
...Download file to see next pagesRead More
These functions are broadly categorized as forecasting, arranging, directing and scheming. Planning is the determination of courses of future actions and considerations of how best they can be done. Organizing is about arranging factors of operations and structures, in a manner that will bring about achievement of the goals that were set at the planning phase.
The company has got eight business divisions with potential to serve the customers adequately. Microsoft follows a mission statement which claims, “We are committed long term to the mission of helping our customers realize their full potential”. The company acquired this position through constant innovation, update and improvement of their products through acceleration of new technologies as they emerge (Microsoft, 2013).
Zu, L. mentions that corporate social responsibility is an integration of companies social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. It is further stated that CSR can result in wide range of stakeholder reactions including political action, purchase decisions, and investment decision.
For AIG, internal factors of influence involve organizational culture and strategic decision-making, company’s vision and mission, staff relations and customer relations, etc. insurance industry is influenced by technological
eila (2004) described globalization as the fact that different cultures and economic systems around the world are becoming connected and similar to each other because of influence of large multinational companies such as Bridgestone and the influence of communication. Technology
Internal communication is a very important component in international marketing and an essential part of multinationals that is far more vital compared to domestic organizations. Internal communication serves different functions in an organization such as expressive function, informative function, social function, and control function.