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The reasons for the balance of payments deficit are many and varied. However, in simple terms, it can also be said that the people in the country consumes more than what they produce. Some of the areas that the UK has always been traditionally strong in the past no more hold good now. For example, at least until 1980, the UK had a vibrant and competitive manufacturing sector with ever-burgeoning exports across the world. As time passed by, the manufacturing sector began losing its grip on the international markets on cost, innovation and quality aspects.
It is a fact that in growing economy, energy needs of the country also keeps on rising and when domestic resources are not sufficient enough to meet those rising energy needs of the country then the country is forced to import the same. It is pertaining to note that before 2004, the UK was exporting oil and gas being an energy surplus country; however, the production of gas and oil went on falling since 2004 onwards. Due to reduced production, not only it lost the status of energy exporting country but also it became a net importer to meet its energy needs.
The above mentioned graph shows how production went on falling since its peak in year 2000 with almost steady consumption in all these years. It is obvious that all energy shortfalls should be met with imports. The year-wise energy imports have been presented in the table as per the following.
Chakrabortty (2011) argues that the manufacturing sector in the UK has reduced in size significantly. Currently, the manufacturing sector constitutes only 11 percent of the national income employing only 2.5 million people. The de-industrialisaiton has happened because industries have not remained competitive enough and in the era of liberalization much of the industrial activities have moved to the third-world countries such
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It is the indicator that is most frequently in case of market activity and to denote the change in GDP over a specific time. GDP is the principal indicator for economic growth. GDP is at the top level of the entire System of National Accounts, and the methodology followed in it is rigorously defined and is highly standardized, which enables international comparison and in aggregation.
a. Reasoning 5 2. b. Change in Methods of Production of Australia 6 2. c. Why Do Tourists Pay Higher Prices for Goods and Services in a Foreign City than the Local Residents of That Country? 7 3.0. Complementary Products: Bread and Butter 7 Condition (a) 8 Condition (b) 9 4.
Monetary policy: The monetary policy refers to changes in money supply brought about via government interventions. The government may change money supply using various tools. One of the ways is by using monetary base control; the government has full control over the money supply in the economy (the total currency held by the non bank public, volt cash held by banks and reserves of commercial banks with the central bank.
On the buyer side, it is an efficient system as well. Price signals what good is wanted by the consumers, and hence resource movement to that industry leads to the efficient product of that good or services. This is how consumer well being is ensured and they get what they want through their price signals.
Economic growth is measured as percentage change in real GDP. There is an implicit link between economic growth and GDP. The GDP is often referred to be the proxy for human development as well as well being. But it is difficult to judge the relation between economic growths with well being.
The theories like, Theory of Demand, Theory of Market Structure and Theory of Long Run business, would be used by the researcher to conduct the analysis. The researcher would use several real life evidences to show the empirical verification of the analysis.
In an attempt to completely understand and describe the monopoly, causes, types and relevant issues, it becomes necessary to approach the subject from as a simplistic nature as possible, to stay aligned with the underlying microeconomic structure.
Another flaw of the neoclassical assumption, actually brought on by the complexity of market behavior, is that it is difficult for firms to identify their profit maximizing output, as they cannot accurately calculate marginal revenue and marginal
An example of oligopoly market structure is the health insurers.
Oligopolies and monopolies consist of large organizations in the market; they also hold considerable market shares over specific services and products in the industry.
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