Economic Environment - Case Study Example

ECONOMICS 0 Introduction The economic is the study of how the people use their resources. The economic carries important role in the growth and development of a country and its citizens. The developments of the countries depend on how the people and the nation handle their economic condition for the growth and development of that country. The most of the developed countries succeeded in the appropriate utilization of the economic condition and development of these conditions avoiding the barriers to the development. 2.0 Barriers to Growth and Development In the world some countries are more developed than others, and they are also more economically stable. The United State is more developed and economically stable than Columbia like that United Kingdom is more developed than Angola. In poor countries the economic development is lesser and barrier to the development is dominated over the progress. Overcoming the barriers to the development and growth is the important for each and every country to the way to improvement of their financial and economical condition. (Ghatak, Pg.23) The barriers to the economic development are mainly categories in to two, internal and external barriers. The internal barriers are those, which is affecting or those are inside the geographical are of the country. The major internal barrier to the economical development is, in equality in the distribution of wealth, income and land. In the poor countries the wealth and land will control by the some group of people and others are in below the poverty line. The groups who have the more income and wealth control the power of the society. The second major barrier to the development of the country is the development of the infrastructures like road, transport system, electricity and water supply etc. Without the development of these basic needs of infrastructure, the country cannot improve their financial and economical conditions. The under developed educational system, high illiteracy and lack of knowledge in the modern technology are the major threat to the development and growth of the poor countries. Unidentified natural resources and non-exploitation of these resources are also causes of under development of poor countries. Under developed financial system, unstable financial market, poor legal systems etc. are the barriers to the development and growth of a country. (Cypher, Dietz. Pg.21) The external barriers to the development and growth of the poor countries are the International dimensions of labour and pattern of international trade, which is controlled by super powers of the world, and they dominate over the poor countries. The influence of large economical powers and their dominants over the trade and technology, which neutralize the effort of poor countries and narrow-down their development and growth. The flow from the capital, goods and services from foreign countries across the border demolish local market and financial system of the poor countries and it will cause for de-growth of these countries. (Cypher, Dietz. Pg.22) 3.0 Globalisation and Economic Environment The globalisation is an integration of markets, national states and technologies across the geographical area. The globalisation drives the individual, corporate and states faster and farther around the world. Through globalisation the flow of goods, services and capital across the national borders increases and create more independent and integrated economy. Globalisation has social, cultural, political, environmental and economical dimensions. Through the interdependency of market and production across the geographical borders for the trade of goods and transfer of technologies implies the international division of labour and fragmentation of production process. (Nankervis Pg.45) Through the transportation of goods from the one country to another, which helps to reduce the price of the goods in the imported country to the price of manufacturing country. It will help to avail the products and goods in the poor country in the similar cost in the manufacturer country. But this will affect the local manufacturer in the poor country where they will struggle to survive in the competition with the high technology, and better goods from the developed countries. The technology changes in the world will enter to the under developed country through globalisation, and it will help them to understand and practice the new technologies and improve their skills and be more cost effective. But these changes will affect the local economical conditions, the sudden upgrading the technologies reduce the manpower, which will lead to unemployment. And also the introduction of new technologies will sweep off the old and traditional method of production, which will demolish local industries in the poor countries. The globalisation invites the foreign investment in the country through the de-regulation of global financial market. By opening up of capital markets, the foreign direct investment increases and enhance the flow of money across the geographical boundaries. In poor countries these foreign investment will affect adversely to the economic condition. The financial market of such countries will control by the foreign investors and the state have to depend on them for their financial stability. The foreign investor will decide the financial condition of these countries through investing and withdrawing the money form those countries. (OECD. Pg.186-189) The globalisation is good for the development and improvement of the countries, they can avail the technologies, goods and services from across the world, which will help to improve their domestic supply and development, but adversely it will affect the domestic manufacturers, labours and financial situation of the country. 4.0 Unemployment and Remedies for Unemployment The unemployment is the state of worklessness. The cause s of worklessess is the non-availability of job or non-availability of qualified employees. The unemployment is a major concern in the under developed countries and this major threat to the financial and economical condition and development of the country. The unemployment is mainly differentiated in to two, voluntary unemployment and in-voluntary unemployment. In the voluntary un employment, a person is out of job by his own will, it may be because the wages is not tallying the persons requirement or he/she doesn’t want to work at all. This is a social disorganization, which cause, social upheaval, revolution, political corruption, economical and financial crisis, crime etc. The in voluntary un-employment, the person is capable of employment and earning wages, but separated from the employment. The involuntary unemployment is controlled by different factors, like, financial crisis, which forced to remove the employees from the employment, the failure of industries is cause sudden removal of employees from the employment and in the seasonal industries, they remove the employees after the season of their business. And also the age, vocational fitness, physical disabilities etc are also different causes for the unemployment. (Rothschild. Pg.21) The government can take adequate measure to over come the unemployment and which will help the country to grow and develop economical y and financially. The government needs to design the educational program, through which the people can learn and acquire adequate and necessary education, which will help them to make employable and meet the specific requirement for employment. The government can introduce the vocational training system, which should meet the requirement of skilled employees in the country and the industrial requirement. The government can also develop employee-retaining program through which they can retail the seasonal employees and deploy them to other works during off-season period according to their skills. The government also should promote the health programs, which will help the people fit and vigorous, which will reduce the unemployment or non-availability to the employment because of the illness and unfitness. Through maintaining health and fitness, the employees can spend more time in employment and more productive. (Coricelli. Pg.110) 5.0 Conclusion The understanding of the economic development and growth of the country is the difficult task. The development and growth of the country is depend on the economical, sociological, environmental, and political factors and understanding these factors and over coming the barriers leads to the remedies for the growth of the less developed countries, which is not quick and easy job. Work Cited Subrata Ghatak. Introduction to Development of Economics. Routledge (2003). James M. Cypher, James L. Dietz. The process of Economic Development. Routledge (2004). Alan r Nankervis. Managing Services. Cambridge University Press (2005). OECD. OECD Economic Outlook, OECD Publishing. Volume-2007, Issue-1. Kurt Wilchelm Rothschild. Employment, Wages and Income Distribution. Routledge (1993). Fabrizio Coricelli, Macroeconomics Policies and Development of Markets in Transition Economics. CEL Press (1998). Read More