StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Principles of Economics - Essay Example

Cite this document
Summary
Principle of Economics Question one Despite the tremendous performance of its economy, China is still a developing country because of several reasons. In terms of per capita GDP, China is yet to achieve a developed country status because it does not exceed US$10,000 that is required of a developed country status…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.7% of users find it useful
Principles of Economics
Read Text Preview

Extract of sample "Principles of Economics"

Download file to see previous pages

For example, this figure is equivalent to 9% of the German and 8% of the United States’ per capita GDP. Furthermore, in terms of nature of resources, China has somewhat a small holds of resources based on per capita criteria, which is not even comparable to a developed country of a modest character. These facts reveal the extent of the economic gap between China and the developed countries, which sets it trailing behind (Wolf, 2005). To sustain the country on an economic growth path, the Chinese Government has the responsibility of making significant policy adjustments.

These policies should be aimed at transitioning the country from middle-income to high-income status. This includes finding measures to address the social and environment imbalances, improving the access to healthcare and education, setting targets to reduce pollution, expanding social protection, and increasing the country’s energy efficiency (Wolf, 2005). The government should also make efforts to discover a new road to industrialization, and modify the approach of economic development by developing a circular economy, changing the industrial structure, improving the traditional industries and supporting the strategic and emerging industries.

The government of China should also promote use of information technology to support industrialization, which in turn can spur the country’s competitive advantage especially in respect to its expansive manufacturing industry. It would also be extremely important for the government of China to continue focusing on its regional development strategies, including turning around the tendency of widening regional economic gap such as supporting the development of the western regions. The idea of supporting development on certain priority zones can be achieved by setting the national spatial development in an orderly and coordinated manner, which should also include coordinating between urban and rural areas development (Sun, 2003).

Question 2 When we say that we are engaged in a ‘global economy’, we mean that we are engaged in economic activities that are beyond a particular country’s borders. This includes a situation where international corporations stop relying on production within the mother country and extend their activities to many countries around the world. The global economy is concerned with globalization of production in areas such as finance, markets, labor force and communications (Ernst & Ozawa, 2002).

When we talk of free trade, we are referring to a situation where the government of a certain nation eliminates all the artificial barriers to trade, which are usually established to protect the domestic producers from competition from the international market, particularly originating from the trading nations. Free trade is known to increase production because nations are given an opportunity to concentrate in production of those products that they have a competitive advantage. This enables countries to enjoy efficiencies that come from increased output and economies of scale.

Free trade also promotes the efficiency of resource allocation hence spurring production efficiency. This is because individual countries are able to exercise efficient use of resources, which potentially results to higher output (Ernst & Ozawa, 2002). On the other hand, despite the many benefits, there a number of disadvantages associated with free trade. This includes creation of structural unemployment as a result of removal of trade

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Principles of Economics Essay Example | Topics and Well Written Essays - 750 words - 4”, n.d.)
Principles of Economics Essay Example | Topics and Well Written Essays - 750 words - 4. Retrieved from https://studentshare.org/business/1471421-principles-of-economics
(Principles of Economics Essay Example | Topics and Well Written Essays - 750 Words - 4)
Principles of Economics Essay Example | Topics and Well Written Essays - 750 Words - 4. https://studentshare.org/business/1471421-principles-of-economics.
“Principles of Economics Essay Example | Topics and Well Written Essays - 750 Words - 4”, n.d. https://studentshare.org/business/1471421-principles-of-economics.
  • Cited: 0 times

CHECK THESE SAMPLES OF Principles of Economics

Principles of Economics: Learn by Doing

In the paper “Principles of Economics: Learn by Doing” the author discusses a highly contentious issue about the extent that businesses benefit, not only from the levels of output at which they currently produce but from the past levels, because of the experience thus gained....
10 Pages (2500 words) Research Proposal

Consumer Price Index

Measuring the Cost of Living" Principles of Economics pp.... CPI is a much better measure of consumer spending power than GDP deflator that reflects the prices of goods and services that are domestically produced, but not necessarily bought by the typical consumers.... In that aspect CPI is a better gauge of the cost of living of consumers. … Fixing the goods and services in the consumer basket isolates the effect of price changes from the effect of quantity changes....
1 Pages (250 words) Essay

Basic principles of economics and business strategy

Basic Principles of Economics and business strategy are intrinsically linked to the people and therefore any business and economic decision that is made, must take into consideration of the impact that they are going to have on the society at large.... Basic Principles of Economics and business strategy are intrinsically linked to the people and therefore any business and economic decision that are made, must take into consideration of the impact that they are going to have on the society at large....
2 Pages (500 words) Essay

Principles of Economics: Inflation

This article "Principles of Economics: Inflation" will aim at discussing the causes, effects, impacts, and importance of inflation in an economy.... However, in economics inflation has broader meaning (Frisch 9).... Inflation has different components, phases, and forms....
11 Pages (2750 words) Article

Assignment 1: Principles of Economics

In recognizing Assignment Principles of Economics Chen ed the article, ‘Profit surge for AT&T, Outstripping expectations,' which the New York Times published on January 28, 2013.... Engineering economics.... One of the points that the article highlights is the factors to the company's rise in revenues that the author links to factors to demand… According to the author, efficiency of the company's wireless business, and the company's “U-verse phone, and internet, and television service,” and other products contributed to the better performance (Chen, 2014, p....
2 Pages (500 words) Assignment

Principles Of Economics In Action

The paper "Principles of Economics In Action" discusses John Maynard Keynes' ideas that changed the macroeconomics field.... economics, which is the social study of the production, is classified into two fields; one is macroeconomics the other is microeconomics.... hellip; A decrease in consumer income resulting from resignation or laying off of workers will result in a decline in the demand for a given price of goods....
12 Pages (3000 words) Research Paper

Principles of Economics Continuous Assessment

This essay "Principles of Economics Continuous Assessment" discusses the Minimum efficient scale that helps business entities to produce goods or services at the lowest cost possible.... The Minimum efficient scale in a particular industry depends on the nature of costs of production....
7 Pages (1750 words) Essay

Principles of Economics: Supply and Demand

… The paper "Principles of Economics: Supply and Demand" is an exceptional example of an essay on macro and microeconomics.... The paper "Principles of Economics: Supply and Demand" is an exceptional example of an essay on macro and microeconomics.... As a student of economics, it is certain that I knew, long before reading this text, that supply refers to the number of goods or services a trader is willing and able to sell.... s a student of economics, it is certain that I knew, long before reading this text, that supply refers to the number of goods or services a trader is willing and able to sell....
1 Pages (250 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us