The paper 'Effect of Construction on Economy' is a perfect example of a Macro and Microeconomics Assignment. Fiscal policy is one of the intervention tools that are employed by the government to make the economy grow. Government spending on projects makes the economy grow. The construction will create more opportunities for work and will be plenty of money in circulation (Barro & Sala-i-Martin 2004, p. 78). The creation of jobs will increase the disposable income available at any of the households in the country and hence raising the standards of living of the people.
The government has other alternatives to making the economy realize a positive growth but the growth resulting from construction will be the best. The economy will expand as donors look for ways of pumping money into the project. If people have money in their pockets, they are likely to spend it on education, health care, nutrition, and security through the provision of better homes. A working nation has to be healthy, and possess required potential energy; construction will empower many individuals, who will be in a position to meet expenses which they were not able to accomplish previously (Novales, Ruí z & Ferná ndez 2010, p.
456). Government spending is one of the key ways of stimulating the economy to grow in order to obtain a positive rate. Idle money that was kept away without being invested will be invested in the construction project and, therefore, giving the citizens an opportunity to see how the taxpayer's money is used. Impact of Increased Exports of Oil and Minerals Increased export of oil and minerals will bring about a balance of trade. There will be no incidence where the country will be faced with a shortage of foreign currency to buy anything since they will get the money from the export.
When the imports are more than the export a country is said to be experiencing an imbalance of trade, on the other hand, when the exports are more than the imports then the country is experiencing a balance of trade. This balance of trade will make the currency of the country gain more value in the international market making it to be very attractive to investors (Allan 2005, p.
34). Oil and mineral salts will be a good avenue of forging foreign ties with countries in possession of other types of valuable resources. The improved infrastructure will cut down the costs of transportation and enhance business. The country will be better placed to compete on the international scene as compared to others that do not have such kind of resources (Ransome 2010). Countries that rely on horticulture and agriculture cannot compete favorably with countries that possess oil and mineral salts. Impact of Increased Tourism Increased tourism activity will open the country to more international trade; bilateral and multilateral.
People who come as tourists will end up investing in the country. The education level will go up as investors will want to put up learning institutions that can cater to the growing demand for education. A growing economy creates an urge for investments in every corner of the country and no one wants to be left behind. Increased tourism activities will make the country to be well prepared to take on any adversity owing to increased foreign exchange.
Tourism is like an intangible good that is being exported, and this means that more foreign exchange will lead to a balance of trade like in the case of oil and minerals (Weil 2005, p. 72). Increased tourism activity will lead to the creation of jobs as people move to provide services to tourists. Jobs created in the tourism sector are very many. Tourists need lodging and hotels which will in turn employ very many people both from the formal and informal sectors.
Allan, K 2005, Explorations in classical sociological theory: seeing the social world, Ontario, Pine Forge Press.
Andersen, LM & Taylor, HF 2007, Sociology: understanding a diverse society, Cengage Learning, New York.
Atkinson, BA 1999, The economic consequences of rolling back the welfare state, MIT Press, London.
Barro, JR & Sala-i-Martin, X 2004, Economic growth, MIT Press, London.
Novales, A, Ruíz, J & Fernández , E 2010, Economic Growth: Theory and Numerical Solution Methods, Springer, Mexico City.
Ransome, PE 2010, Social Theory for Beginners, The Policy Press, New Delhi.
Weil, DN 2005, Business & Economics, Addison-Wesley, London.