Download file to see previous pages...
It is therefore apparent that an economy that lacks adequate financial institutions such as in the developing economies suffers from low savings rate, which in turn leads to low investment hence slow economic growth. Financial institutions also help in reducing poverty traps such as reduction of the information cost that may reduce the level of business investment and furthering slowing economic growth. Developing countries experience low economic growth due to lower rate of investment attributed by low savings and high cost of information.
Financial institutions are very significant in economic development especially to people who utilize them well. It can be argued that developing economies experience slow economic growth contributed by lack of proper financial institution’s framework and political interference with the financial systems. However, if the rule, regulations and independency of these financial institutions can be addressed, they can greatly speed up economic growth in the developing countries. Financial institutions undergo serious challenges in economically repressed areas since low income earners do not normally save. This therefore inhibits growth of the financial institutions and further minimizes investments hence low economic
...Download file to see next pagesRead More
Still if the government plans to impose tariffs over the imported goods, the result would be that other countries will do the same. End result would be increased unemployment in the export competing industries and decreased unemployment in import competing industries.
The country of Germany commands for a relatively large share of mechanical machineries production among the European Union. The production of this type of goods is mainly concentrated in North-Rhine-Westphalia. The production of large machineries and heavy industries is concentrated in this part of the world.
A member of the organization can restrict the importation of a product for a short period of time, with an aim of preventing a serious injury to the domestic industry that produces similar products. According to Brown (2008), such a step is called a safeguard action.
Mercantilism was popular during the 16th to 18th century where exports were encouraged. Nations tried exporting more goods and importing less so as to increase the nation’s wealth. Also, a nation’s wealth was reflected by the presence of more precious metals like gold and silver.
Sugar is a protected commodity in the world market. It is affected by government interventions, price changes, production, and a growing market for sugar substitutes. Sugar is produced in 120 countries with an annual production of 165 million tonnes a year.
Some key facts about Turkish Gold Production are:
The journey of Turkish Gold Industry has seen many ups and downs. It saw its first upsurge in demand when liberalization of gold imports took place in Turkey in 1980.
His less-scholarly work adds to the respect he has gained for the contributions that have gained him the Nobel Prize because he has come up with a new theory of trade in regards to world trade that previous theories could not. Moreover, his theories have become
The countries that restrict international trade use various barriers such as restrictive tariffs and taxes, quotas and product quality standards in order to make the imported goods more expensive than the
According to a recent estimate of 2010, Syria’s total export value stands at $12.84 billion and the total import of Syria is estimated to be $13.57 billion (Younes 11-13). The major export partners of Syria are Iraq, Germany, Lebanon, Saudi Arabia, Egypt and
6 Pages(1500 words)Assignment
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Assignment on topic Production and Trade for FREE!