A growth company tends to have very profitable reinvestment opportunities for its own retained earnings. Economic growth will affect Etisalat as it would increase their profits due to more people wanting more products and wanting to spend their money. As people have more money to spend on luxuries instead of the essentials it means that the higher value products will be brought. For example the Andrex toilet rolls will be brought instead of Etisalat value, because of this it means more money is being spent in the store which is an advantage for Etisalat. Recession occurs when people involved in business become more cautious and: * Customers cut back on spending, and start to save more * Manufactures and sellers cut back on their orders, produce fewer goods and start to cut back costs in general, including by laying off workers.
Task 1 Tesco For this task I chose to review’s Tesco organisations because I like how they are improving their growth in low economy percentage and demand. The image of business cycle: Growth Growth Define boom and recession Boom- The boom stage is when everyone feels good. At this stage demand increased, unemployment is very low, high competition at the job places. The business confidence is high so they invest more and expand themselves. The customers feel good.
This means that the TNC can pay workers less, not worry about providing good working conditions. All of these factors greatly benefit TNCs because they can produce their products or components for a fraction of a price that they would have to pay in their country of origin. Another thing that has enabled companies to spread out over the globe is the fact that global communications and travel has improved. Emails make it much easier to communicate with colleagues in other countries and not have to worry about time differences. Satellite links have allowed people to have video meetings even if the people taking part are miles apart.
Immigration helps to make up for the low fertility rate and shortfall in the number of births needed to contribute to economic growth. Immigrants can be either foreign talent, who are educated skilled professionals or foreign workers, who work in jobs that most citizens in the host country (country they migrated to) do not take. This is a source of economic gain because both groups will contribute to economic growth – foreign talent adds to the talent pool of the country that will attract investment and/or help to fill in labour shortage in certain jobs such doctors and nurses while foreign workers are a source of low-cost labour (in lowly skilled jobs such as in construction or manufacturing) to reduce the cost of production and price of goods and services, benefiting consumers. These are also jobs that few locals want to work at. Thus Singapore will remain competitive against other countries.
TMA02 Outline the argument that rubbish is not worthless. Over the past century as people have become more affluent, we have moved in to a consumer society. With this shift we are now generating more rubbish than ever before. In this paper I will be outlining and discussing how not all rubbish, waste or things we consider to have zero value are worthless. As with every argument there are two sides, while the reusing and revaluing of rubbish has positive effects on society economically and creating a healthier and more sustainable environment, sometimes getting materials to this stage can have detrimental effects.
The city has much more potential to be an engine for economic growth because unlike the rural area, the city is always productive. The city has, over the years also managed to sustain and supplement high urban productivity for the country’s economic growth This is because more than half of the population of many countries resides in cities as a result of that more human resources are available to generate wealth in the city which leads to economic growth. In addition to that a city also has the adequate infrastructure needed to economic growth. Challenges and opportunities for development posed by the informal economy The informal economy is also known as informal sector. Previously it was a by –product of the over population.
Even though they may have a good price for the quality and quantity the monies is not helping our economy grow. Once again we are sending money out helping other countries grow while we as a whole are here in the U.S. struggling. I can understand the need to buy steal, iron or any other manufactory goods cheaper if they can be found on foreign land, even though it make take away plenty of money. However, the use of these materials may be used to build new stuff that will help the grow economy and cause more jobs. I believe with using the foreign countries we as the United States need to make sure the steel, manufacture goods and anything else is of good material and we will not put out more money than needed because “we” decided to trust them.
3. People often feel that tariffs, quotas, and other import restrictions will save jobs and promote a higher level of employment. But trade restrictions that reduce the volume of imports will also reduce exports. Question 4: What do researchers have to say about the relationship between firm’s productivity and exposure to global competition? Answer: Question No.5: When is international trade an opportunity for workers?
Not only have countries been given the opportunity to exploit their comparative advantages but they can also change their comparative advantages using technology, this gives them the chance to move up the value chain, which improves the living standards of people in poverty and increases their income. However globalization has also had a negative affect on countries. It puts countries, poor countries in particular, in risk. “A housing loan crisis in the US eventually translates into rocketing youth unemployment in Spain. A banking crisis in Cyprus sends shares on the world’s stock exchanges lower.
In poorer countries, globalization brings the chance to sell their relatively low cost labor onto world markets. It brings the investment that creates jobs, and although those jobs pay less than their counterparts in rich economies, they represent a step up for people in recipient countries because they usually pay more than do the more traditional jobs available there. In addition to this, information via the internet is available to many people because of globalization. The case studies book mentions the specific example of the Darfur crisis. Because of globalization and the access to information, attention was able to be drawn to the cause and help put a stop to it.