Moreover, it prevented the currency in being a commodity, and stabilized the value of medium of exchange. The standardization of currency simplified trade procedures, reduced confusions, hence encouraged foreign investment in China. The building of infrastructure also improved China’s economy in economic terms. Railways and roads were expanded in order to improve accessibility of China. From 1931 to 1937, railways with an average of 700 miles were added in China each year.
This gives us a clear comparison and to let us see who has the better GDP. GNP statistics reveal huge differences in wealth between nations. So this can be considered of worth. Reasons it can be considered of worth is that GGNP statistics indicate changes in a countries overall production and the direction of its economy, it can also measure how an economy is functioning, this is very useful when looking at wealth as you would be able to see which countries are thriving and the best to trade with, and which ones are not doing so good. Other reasons statistics are of meaning and worth are because it helps us to identify that the poorest countries actually have a declining GNP.
Tourists wouldn’t have to exchange their money when travelling and the risk of having problems would be reduced when transferring a large amount of money abroad. This would lead to an increase in the country’s GDP by 2% by year which is an advantage. * Having a common currency in the EU leads to cheaper interest rate and that’s due to some countries taking charge in of the fiscal responsibility. This would lead to more investment, more jobs and lower mortgages. * The interest rates are set by the ECB (European central bank) for the whole Eurozone.
In the wake of the second world war consumers’ preferences had changed significantly. Having tasted the benefits of self-service, and more confident thanks to new government standards, consumers were ready to try cheaper, self-service retailers. Wal Mart developed a cost leadership strategy, by cutting expenses at all levels, unique for the retailing industry. Wal-Mart has lower operating expenses than the industry average. The primary cost advantage is Wal-Mart’s superior distribution capability (location of stores, inside-out growth patterns, cross-docking, superior information management).
This is as the economy is larger in developed countries, their currency appreciates and is much higher compared to less developed countries, thus labor is cheaper to be paid in less developed countries. As many companies carry out manufacturing off-shores, companies that refuses to do so would be left behind as their manufacturing cost would be higher and thus less profit is made. This is as said by David Manners where stated that as manufacturing in China and India is cheaper compared to most countries, and as globalisation is part of the economy now, it is best to welcome and not go against it. Due to this in 2000-2004, UK gained a
This element relates directly to the disadvantage of a liberal perspective. While the rich become more affluent and cheaper workers are available in struggling nations, there are fewer opportunities for the skilled worker to find employment and in turn contribute to the economy. The liberal approach to free
With the higher government spending on investments (lowering interest rates decreased investment expenditures) it was possible to hire more people and lower the unemployment. The Keynesian model succeeded in
Market-Oriented supply-side policies are changed when the government reduces ordinance and make the market to work more freely. For example, reducing or elimination the power of trades unions and minimum wages can reduce labor market inflexibility’s. Using the tax system to furnish encourage and reward to help irritate factor output, rather than to alter demand. This general means reducing direct tax rates, including income and corporation tax. Lower income tax will act as a reward for unemployed workers to join the labor market, or for existing workers to work harder.
As well as increasing living standards, it also benefits the government, as they will see an increase in revenue collected in income tax. This will allow the government to further improve public services such as healthcare, and as the quality of healthcare increases, so does the quality of life for the population. Another benefit of economic growth is that unemployment will fall. As companies and services expand, they can output a great deal more, and therefore more labour is demanded, this means that unemployment will fall. If unemployment falls, less people will be claiming unemployment benefits and other similar pay-outs from the government, this will allow a lot of tax to be spent on other things, such as expanding public services further, which also leads to an increase in living standards.
From that it can be said that a healthy economy would help to decrease crime rates. Some reasons for this might be that the long term unemployment rate is lower and average weekly earnings are higher. The purchasing power of the dollar tends to be greater and people are more likely to be able to purchase items legitimately rather than steal them. Over the time period there were developments in security technology which enabled people to fit immobilisers into motor vehicles as well as burglar alarms and security screens into residences. Research has shown that both these devices reduce offences respectively.