Free Essay

Economy

In: Business and Management

Submitted By manuelin
Words 2160
Pages 9
1. ¿En qué difieren el producto Interno Bruto y el Producto Nacional Bruto?

El producto interno bruto mide el valor del mercado de todos los productos y servicios producidos o proporcionados dentro de las fronteras de un país representados en un año, y no importa quienes hayan sido los dueños de los factores de la producción los que hayan hecho posible ese producto interno bruto, pueden haber sido empresas extranjeras. La producción puede valorarse de dos formas:
1. Por lo que los compradores pagan por ella
2. Por lo que cuesta a los productores producirla

Por su parte el producto nacional bruto mide la producción generada por los residentes del país sin importar en donde son producidos esos productos, este si se refiere al producto por las empresas Nacionales, de ahí el termino Nacional, en ese sentido incluye tanto el producto que se obtuvo dentro del país como fuera de el. Hasta los años 80’s los términos PIB y PNB eran casi idénticos, pero la diferencia radica en que el PNB se refiere a la producción total que se genera dentro del país hasta la inclusión de la producción en territorio extranjero

El ejemplo de manufactureras trasnacionales tal es el caso de la compañía de vehículos japoneses Toyota, la cual fabrica automóviles japoneses para su venta en el mercado de Estados Unidos, donde el valor de la producción de los vehículos manufacturados en EU contribuye al producto interno bruto de EU igual que las compañías nacionales como General Motors y Ford. Sin embargo las utilidades de la venta de los vehículos japoneses que se transfieren de regreso a Japón serán substraídos del resultado de las ventas dentro de EU.

Técnicamente el producto interno bruto excluye las utilidades pagadas a los inversionistas, donde en ocasiones se les llama Factor de Pagos Internacionales, mientras que el producto nacional bruto los incluye también. El producto interno bruto es frecuentemente considerado una política variable de corto plazo, esta más relacionada con el empleo, la productividad, la producción industrial e inversión que el producto nacional bruto.

Aunque la venta de artículos usados no se incluye en el cálculo del producto interno bruto, la venta de un artículo usado en ocasiones es asociada con la producción o generación de un servicio el cual si es considerado dentro del cálculo del producto interno bruto.

Recientemente muchas agencias dedicadas a estadísticas están utilizando mas el termino de producto nacional bruto en lugar de producto interno bruto. En algunos casos, el producto nacional bruto puede ser considerablemente mas bajo que el producto interno bruto. Esto debe a que solo se cuenta la producción nacional, pero la razón de que lo usen es para tener una idea mas concreta de indicadores como la situación económica real del país, riqueza per capita, etc

Los estándares internacionales para calcular el producto interno bruto se encuentran en el sistema nacional de cuentas (SNA) el cual es publicado por las Naciones Unidas, la comisión de comunidades europeas, el fondo internacional monetario (IMF), la organización de desarrollo y cooperación económica (OECD) y el banco mundial. En el caso particular de México, El Banco de México con datos obtenidos del INEGI.

2. ¿Cual es el principal problema que puede presentarse en el registro de la contabilidad nacional y cómo puede superarse?

La meta tradicional de la cuenta nacional de economía ha sido medir el valor de la producción por nación por un periodo que constituye típicamente un año (PIB nominal). Sin embargo el hacer esto constituye diferentes retos, los economistas han luchado con el problema de la inflación lo cual dificulta la forma de comparar medidas de los resultados a través del tiempo.

Debido a que el producto interno bruto es normalmente calculado en la bases del precio actual expresado en la moneda corriente del país, se requieren ajustes para facilitar las comparaciones a lo largo del país.

La inflación pudiese crear una variación al comparar los resultados de un año con el otro, para comenzar es necesario controlar los cambios en los niveles de precios en comparación con el valor del mercado a través del tiempo. El libro muestra ejemplos, donde en un país suponiendo que se mantiene la producción de un año semejante o igual al siguiente año, pero el precio promedio se incrementa debido a la inflación. En este caso el producto interno bruto nominal pudiese obviamente duplicarse en los cálculos también, aunque la cantidad producida disponible para consumo y por consecuencia los estándares de vida de la nación no cambiaron. Para atender este tipo de problemas, los economistas desarrollaron varios métodos permitiéndoles el control de los cambios en el nivel de precio y por consecuencia realizar cálculos de producción estimados por medio de ajustes a la inflación lo que formaría el PIB real.

Las diferencias en el poder adquisitivo han también contribuido de tal forma que para comparar el producto interno bruto entre a lo largo de condados, cada país calcula el producto interno bruto en la moneda corriente de ese país, estimaciones nacionales deben entonces ser convertidas a una moneda común antes de que se efectúen comparaciones entre diferentes países, por ejemplo el dólar es la moneda que comúnmente se ha utilizado hasta la formación de el bloque europeo en donde ahora el euro-dólar esta tomando terreno que anteriormente ocupaba la moneda del país vecino.
La solución estándar para este problema es crear un indexo de “Purchasing Power Parity” (PPP) esencialmente calculando el valor de los artículos y servicios en cada país usando precios de un país común como Estados Unidos.

Sin embargo el reto fundamental de todo es evitar contar la producción varias veces repetidas en diferentes tiempos de producción. Por ejemplo tomar en cuenta las ventas del producto terminado y de los insumos que se generan en otras localidades de país, suponiendo que en otras localidades del país se produce la materia prima o insumos parte del producto final. Claramente esto crearía un cálculo equivocado al contar doblemente el valor de producción del producto final. Para poder tratar este tipo de problemas que pueden originar un problema de error de cálculo, los economistas han desarrollado tres diferentes formas de acercarse o tratar estas situaciones:

1.- La medida del valor agregado, el cual es calculado sumando el valor agregado de cada periodo de producción, cuando valor agregado es definido como las ventas menos los costos de entrada de material.
2.- La medida de las ganancias, Tomando en cuenta que el valor agregado de cada periodo de producción debe finalmente ser representado en forma de ganancia, otra forma de calcular la producción total es medir las ganancias totales. Específicamente los retornos a un factor productivo de la economía, como terreno, mano de obra y capital pueden ser calculados como la suma de las rentas, salarios y ganancias.
3.- La medida de gastos, como un tercer acercamiento, el valor de la producción total es medida calculando los gastos ejercidos en la nación en los productos y servicios. Un producto final o un servicio son considerados solo si no es tomado en cuenta como un dato de entrada en la producción de otro producto o servicio, precisamente para evitar el conteo doble.

3. ¿La leche que adquiere un restaurante y la que adquiere el ama de casa debe recibir el mismo tratamiento en la contabilidad nacional?

Dado que existen dos formas de medir la contabilidad nacional; la primera está enfocada en la producción conformada por el consumo de bienes finales, inversión, compras gubernamentales y exportaciones netas. Por otro lado esta el enfoque en ingresos compuesto por las compensaciones laborales, utilidades corporativas, depreciación, impuestos, etc.

La leche no puede recibir el mismo tratamiento en la contabilidad nacional; pues su uso es muy distinto. Cuando el ama de casa adquiere este bien es una compra que se utilizará para consumo final, mientras que para el restaurante es un consumo intermedio por que será utilizado para ofrecer un bien que es consumido por terceras personas (consumidor final).

Para evitar la doble contabilidad se debe de tener cuidado en sólo incluir los bienes de consumo final en el PIB, y no contar los bienes intermedios, es así como se aplica la doble partida en el caso de la leche, siendo la leche de la ama de casa un bien final y la del restaurante un bien intermedio

Lo que procede en este caso es que la leche que compran las amas de casa como bien final se contabilizan como tal; en el caso de del restaurante, lo que procede es que sólo se contabilice el valor agregado que da el restaurante.

Otro ejemplo de este tipo de casos es el acero, que aunque se contabiliza como un bien final, las empresas automotrices sólo cuenta el valor agregado que le dan a ese acero.

4. ¿En qué omisión contable incurre el método del gasto al medir el Producto Interno Bruto?

El método de gasto contempla cuatro categorías básicas, la de consumos domésticos o del hogar, las inversiones, los gastos de gobierno y las importaciones netas. La suma de ellas constituye el producto interno bruto.

Los consumos incluyen todas las adquisiciones de artículos domésticos nuevos y servicios para uso común. Las inversiones incluyen gastos que se realizan para incrementar la producción futura y servicios. Gastos de Gobierno incurridos en artículos y servicios a todos niveles de gobierno federal, estatal y local. Exportaciones netas es simplemente la diferencia entre las exportaciones y las importaciones.

En algunos casos un artículo en particular puede ser utilizado en diferentes formas, dependiendo quien lo compra y con que propósito lo adquiere. El caso de David Moss y Sarah Brennan (Nacional Economic Accouting) muestra como ejemplo cómo la compra de una cafetera para el hogar es clasificada como un consumo doméstico, considerando que la misma cafetera puede ser adquirida para uso en un restaurante y es clasificado como inversión. Si por alguna razón un restaurante en Italia compra la cafetera en Seattle, esto cuenta como exportación y es contemplado como un consumo doméstico en el cálculo del producto interno bruto. A la inversa, si un restaurante localizado en Seattle adquiere una cafetera manufacturada en Italia, este gasto cuenta como una inversión doméstica pero también como una importación, la cual es deducida del gasto doméstico. Debido a que la inversión, lo cual significa una adición y la importación lo cual significa una substracción se cancelan entre ellas, la importación de la cafetera no ejercerá un efecto neto en el calculo de el producto interno bruto, lo cual es apropiado debido a que no se producto en el país.

Esta situación varia en cada país, como se menciona en el caso hay elementos que no se toman en cuenta en México, Estados Unidos y Zimbabwe, el hecho que se toma en cuenta para la medición del producto interno bruto PIB el mantenimiento de granjas, actividades ilegales como las apuestas y prostitución y la economía informal. De esta manera existen variaciones y omisiones incontrolables que intervienen en la comparación del PIB por parte de los países. Actualmente se están tomando medidas estandarizadas de omisiones desarrollada por las Naciones Unidas UN. Las medidas de omisiones realizadas por parte de las Naciones Unidas permite clasificar a cada uno de los países dentro de estas, es decir, si México, Chile o Argentina omiten las mismas clasificaciones es aquí donde se aplica una comparación directa entre el PIB de estos 3 países. Si se aplican este tipo de omisiones el porcentaje varia considerablemente, tal y como sucede en el caso de Zimbabwe el cual aumentó un 20%.

5. Usando uno de los tres métodos de medición del PIB (valor agregado, ingreso o gasto) obtenga el desglose del Producto Interno Bruto para su país para el año más reciente

Los componentes que integran el PIB los podemos identificar en dos factores, el enfoque de la producción y el enfoque de las percepciones. El enfoque de la producción como su nombre lo dice tiene que ver con todo lo que se produce. El enfoque de las percepciones también se llama valor agregado, por lo que todos los factores que participan en la producción reciben un pago a cambio, por ejemplo los trabajadores reciben un sueldo por agregar valor a la materia prima, en caso de capital tenemos las rentas, etc.

La siguiente tabla muestra desglosado el PIB para nuestro país para los 3 últimos cuartos del 2006, los cuatro cuartos de 2006 y el primer cuarto de este año 2007 tomando en cuenta la producción, caso semejante al que se utiliza en la primera opción de las filminas proporcionadas por el Tecnológico de Monterrey en la materia Entorno Económico.

Bibliografías:
• Instituto Nacional de Estadística Geografía e Informática (INEGI). "Sistema de Cuentas Nacionales de México. Cuentas de Bienes y Servicios" http://www.inegi.gob.mx/est/default.aspx?c=1618 • Macroeconomía, Michael Parking, Quinta edición, Ed. Addison Wesley
• Economía, Samuelson Nordhaus, Decimoctava edición, Mc Graw Hill.
Nature and purpose of national accounts. Disponible en línea: http://www.abs.gov.au/Ausstats/abs@.nsf/66f306f503e529a5ca25697e0017661f/6508C000A7DE4A02CA2569A400061617?opendocument…...

Similar Documents

Premium Essay

Economy

...Most commentators are of the view that the key for US economic recovery is drastically lowering the number of unemployed Americans. Once more people will be employed, this is going to lift overall spending in the economy and consequently general economic activity will follow suit, so it is held. We suggest that unemployment is not the key issue for economic growth. What matters for individuals is not whether they are employed as such but the purchasing power of their earnings. The key for this is the infrastructure individuals utilize in the production of goods and services. What permits an increase of the production of goods and services and hence raises people’s living standards is an expansion and enhancement of infrastructure. What in turn permits this is an expanding pool of real savings. Contrary to popular thinking, the Fed’s and the government policies that are aiming at lowering unemployment don’t improve people’s living standards, but on the contrary they undermine the process of real wealth generation and thus set in motion an economic impoverishment. In fact the latest government data indicates that many more Americans have fallen below the poverty line in 2009 despite all the massive stimulus packages. For the time being, the latest US economic data remains subdued. Also in China a visible fall in the growth momentum of money supply M1 raises the likelihood of a visible fall ahead in economic activity indicators. Is a reduction in unemployment the key to US......

Words: 2786 - Pages: 12

Free Essay

Economy

...Kenya has a very diverse economy but it has been traditionally based on agriculture. Over the years the economy of this country has changed with new ideas being out into action, new and profitable companies from abroad investing in Kenya, and new companies joining the stock exchange. The economy is divided up into three sectors that include the primary sector, secondary sector, and tertiary sector. All of these specific sectors have significant value on the economy with each sector bringing in profits. Although during the past decades the growth of industry and tourism has decreased agriculture's dominance, but farming activity still accounts for the major part of the country's economy. The country is still able to export tea, coffee, flowers and vegetables. Both, tea and coffee exports have brought a large share of foreign exchange earnings. The economy used to rely on tourists, attracted by Kenya’s abundant wildlife and beaches. The companies in the country are privately owned and also publicly owned. The private sector does a lot to make the economy grow and also improve them. While public companies also add value to the economy. But government owned companies do not play a huge role in supporting the economy as corruption is a rising problem in the country. To remove this, the government is planning to privatize most government owned companies, to increase efficiency. The tourism sector in the country is doing well as Kenya is a tourist destination. Many tourists come...

Words: 305 - Pages: 2

Free Essay

Economy

...problems on Wall Street versus the problems on Main Street. As we're finding out from the postings, we all hail from different areas in the United States and internationally. Do you think we're all experiencing the same economic challenges or do you think different local economies are experiencing different challenges? Provide some examples to support your answer. In my opinion I think we’re all experiencing the same economic challenges to include different local economies. From a military point of view we too are experience an economic challenge. With the drawdown of forces in Iraq and eventually Afghanistan (to be determined) the military will have to cut down the forces to help reduce Defense spending. And if anyone can remember the Desert Storm/Shield conflict the military was nearly cut in half after it. As for the rest of America it seems as though the days of spending unreservedly are over with. With the recession affecting everyone people are now out of jobs and small businesses are out of work and trying desperately to keep themselves a float. This can especially be seen in the housing market where you have big name cities at an all time high foreclosure rate. In the end I believed the economy became what it is today due to our frugal lifestyle. I admit I was the same way but in the end it caught us all by surprise and now we have to figure out how to fix it and hopefully regain some or all the jobs lost by everyone back....

Words: 284 - Pages: 2

Free Essay

Economy

...INTRODUCTION A market is any place where buyers and sellers come together to exchange a product/service for money. There are three types of economy: a free market economy, a planned economy and a mixed market economy. This report describes features of Scotland’s economy and four aspects of the Scottish economy which are unemployment, growth, tourism and National Health Service. FEATURES OF SCOTLAND’S ECONOMY Scotland has a mixed economy. The reason Scotland has got this type of economy is because it has both markets which work freely and markets which are provided by the Government for everyone to benefit from. Scotland has a lot of privately owned businesses such as fishing, oil and gas, energy, manufacturing, whisky, construction, banking, tourism etc. and businesses owned by the local and central Government such as refuse collection, street lighting, transport, justice, public parks and museums etc. A good example of both privately and publicly owned organisations are education and healthcare. ASPECTS OF THE SCOTTISH ECONOMY Employment/Unemployment Unemployment occurs when people are without work and actively seeking work. These people often claim Job Seekers Allowance. The number of people claiming workless benefits in Scotland went down by 1,100 from October to 139,500 in November (2012_ - 3,100 fewer than the same period in 2011. According to Office for National Statistics (ONS) figures, unemployment in Scotland fell by 19,000 to 204,000 over...

Words: 708 - Pages: 3

Premium Essay

Economy

...Indian economy is a open economy.In 1991 Manmohan Singh, then finance minister, took a historical step and open up the indian market to the world. Exchange boundaries and expense rates descended. State restraining infrastructures were separated. Furthermore the license raj was enormously diminished.The ability of the Indian individuals was unleashed, and the results represent themselves. Yearly development rates of 8-10% got to be regular. What's more Indian organizations like Tata, Wipro, Infosys and Reliance got to be universally famous. India has tagged along speedier than anybody would have expected, and there are great motivations to accept these patterns can proceed. Trade and commerce have been the backbone of the Indian economy right from old days. Textiles and spices were the usual products which was exported by India. A significant boost to India’s trade in the late twentieth century resulted in the country getting the notion of emerging economy. India’s foreign exchange are undervalued.In India Rs25 can get one kilogram of good quality rice.In United States of America 1$ can buy 1kg of same quality of rice. The rice is almost same in both the cases,1$ should be equal to Rs25. But one get in the banks or elsewhere about Rs60 for 1$.This means that Indian Rupee is undervalued by more than 2times. In the past Indian Rupee was undervalued by 3-4 times. Gradually economy will grow and will become stronger.May be in the upcoming years, with the expansion of economy,......

Words: 758 - Pages: 4

Premium Essay

Economy

...the strongest components why the economy is collapsing and now we are on tipping end of a dangerous bout of deflation.  The problem of deflation is that it renders any and all debts dangerous and a country as indebted as the United States of America, simply cannot risk that outcome of it. The economy is affected by many factors that determine if it is strong enough or simply too weak. These factors have to do with buyers consuming goods and services and how often they do this. Do the goods and services that are consumed by people create wealth, jobs, and a better overall economy for a country? In this paper I will discuss how the oil practices affect the economy and to what extent. Throughout history we have seen evidence of some economies that have evolved faster and stronger than others. Policies that the government places on industry, technology and the environment can all affect the prosperity of an economy. Of the factors that affect economic growth the industry of oil and gas is one that holds a dominant spot in the world's and America's economy today. When evaluating the economic growth factor of economy and specifically oil and gas one must consider some factors such as: the relationship that it have with the whole economy, the way it affect economic growth, what it a cause or effect of economic growth, along with a few others. In respect to how economy is affected by oil and gas all of these are a serious factor. The economy in the United States today......

Words: 1653 - Pages: 7

Premium Essay

Economy

...Macroeconomics examines either the economy as a whole or its basic subdivisions or aggregates, such as the government, household, and business sectors. Microeconomics is the study of parts of economics concerned with particular markets, and segments. This study looks at analysis in a single household, a company, or a specific industry. Microeconomics looks closely at supply and demand in single markets, consumer’s behaviors and choices. However, Macroeconomics is the study of the economy as a whole unit or its elementary sectors or aggregates, such as the government, household, and business subdivisions. Class based on what you have read in this chapter, explain the law of demand. Why does a demand curve slope downward? How is a market demand curve derived from individual demand curves? Based on this chapter, law of demand is when other factors are the same, the quantity of demand increase as prices falls, and the demanded quantity decreases as prices rises. The demand curve slope downward reflects the demand law philosophy because there a negative relationship between price changes and the demanded quantity of a particular product. If there are two buyer representing two different individual demand curves There are a variety of modern definitions of economics. Some of the differences may reflect evolving views of the subject itself or different views among economists.[1] The earlier term for 'economics' was political economy. It is adapted from the French......

Words: 982 - Pages: 4

Premium Essay

Economy

...Strategies for Reviving the Japanese Economy Introduction 1. Assessment of the Current Economy The Japanese economy has begun to show some signs of change as the effects of recent large-scale economic packages have gradually helped to stop the severe economic downturn. But despite this progress, private demand as a whole remains stagnant. Therefore, the economic prospects for self-supported recovery are still uncertain once the economic effects of the last packages have phased out. The fundamental problems pertinent to the weak economy are twofold. First, the true adjustment of the burst of the bubble economy is still insufficient. Second, against the background of the sharp decline in the number of births and the rapid aging of the population, the pace of which has not been experienced in other industrialized nations, the "Japanese system"--the engine of the country's astonishing high growth in the postwar era--has turned problematic with regard to economic growth. First, fears about employment prospects, future pension plans, and the sharp rise in government deficits are obviously restraining an economic turnaround. These fears are attributable to eroding sustainability in the Japanese-style wage and employment systems and the generous social security system. To cope with the situation, provisions of renewed safety nets are urgently needed. Furthermore, the rising fiscal deficits are restraining economic upturn by making people serious about future tax hikes...

Words: 2068 - Pages: 9

Free Essay

Economy

...The American Economy has undergone some serious changes since September 11th 2001. The American Economy has undergone alot of controversial scrutiny in the past couple years because of a major debt and deficit. During the Clinton Administration the American economy had gained an annual surplus of two hundred billion dollars. Most of that is due to the sudden rise and hype of the dot com companies. Maybe Clinton was lucky. When Bush was nominated a sudden unfortunate rise of lay-offs sprung up. Thousands have been laid off since his nomination. The manufacturing and computer industries were the main industries seriously hurt. It is almost impossible for an individual to get a job from Computer Science, MIS, and information technologies. Hundreds of electrical and computer engineers were laid off as companies lost revenues. With less employees you need less accountants and managers and so forth. The goverment has spent millions on The War on Terror which I beleive was neccessary. More money is being spent and lives are being lost over seas. The United States needs financial help and is asking other nations for millitary aid in Iraq or even financial aid. President Bush's approval rating has fallen to a certain degree. It seems as though the purpose of Iraq is not clear anymore. People feel that Bush needs to concentrate on America's ailing economy rather than funding for wars. The confidence in the American people is low right now regarding the economy. Everyone is scared and......

Words: 299 - Pages: 2

Free Essay

Economy

...An economy (Greek οίκος – "household" and νέμoμαι – "manage") is an area of the production, distribution or trade, and consumption of goods and services by different agents in a given geographical location. The economic agents can be individuals, businesses, organizations, or governments. Transactions occur when two parties agree to the value or price of the transacted good or service, commonly expressed in a certain currency. Economic activity is spurred by production which uses natural resources, labor, and capital. It has changed over time due to technology (automation, accelerator of process, reduction of cost functions), innovation (new products, services, processes, new markets, expands markets, diversification of markets, niche markets, increases revenue functions) such as that which produces intellectual property and changes in industrial relations (child labor being replaced with universal access to education). A given economy is the result of a set of processes that involves its culture, values, education, technological evolution, history, social organization, political structure and legal systems, as well as its geography, natural resource endowment, and ecology, as main factors. These factors give context, content, and set the conditions and parameters in which an economy functions. A market-based economy is where goods and services are produced and exchanged according to demand and supply between participants (economic agents) by barter or a medium of......

Words: 363 - Pages: 2

Premium Essay

Economy

...Monetary policy controls a recession and inflation by setting how much money is supplied in an economy. Monetary policy is given by central bank. When an economy is in a recession phase, the central bank will typically increase the money supplied which will help reduce interest rates; increasing spending. When inflation is a problem, the central bank will typically decrease the money supply, which will increase interest rates; slowing spending. Fiscal policy controls the taxes. It is given by government. A fiscal policy is when the government changes taxation and increases government spending. Through an expansionary fiscal policy it aims at increasing the amount of disposable income people will have. This income will, depending on the marginal propensity to consume, be spent in the economy. The result of this will be that aggregate demand will increase thus eliminating the deflationary gap which is caused by either growth or unemployment. Moreover fiscal policy aims at increasing government spending. If government spending increases the investment in the economy which will be translated as an increase of investment in the economy and which will in turn close the deflationary gap. [pic] Pure competition: In economic theory, perfect competition describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. Demand and Supply In a perfectly competitive market, a firm's demand curve is perfectly......

Words: 377 - Pages: 2

Free Essay

Economy

...The People's Republic of China ranks since 2010 as the world's second largest economy after the United States. It has been the world's fastest-growing major economy, with consistent growth rates of around 10% over the past 30 years. China is also the largest exporter and second largest importer of goods in the world. The country's per capita GDP (PPP) was $7,544 (International Monetary Fund, 94th in the world) in 2010. The provinces in the coastal regions of China tend to be more industrialized, while regions in the hinterland are less developed. As China's economic importance has grown, so has attention to the structure and health of that economy. China’s population can be divided into roughly 3 parts: farmers (about 700-800 million), rural migrants (150-250 million) and urban residents (250-350 million). Demographically and politically, China’s rural sector is the most important. The Chinese Communist Party owes its initial success to rural residents; Mao Zedong depended heavily on soldiers from rural areas in his battles against both the Chinese Nationalists (Kuomintang) and invading Japanese soldiers. Biggest Challenges to China’s economy Since 1978 the Chinese economy has maintained economic growth at an average of nearly 8%. By western standards this is remarkable. The UK, by contrast, has grown at an average rate of 2.5%. However, despite the impressive figures there are many serious economic problems resulting from economic growth. 1. Pollution/......

Words: 3286 - Pages: 14

Free Essay

The Economy

...In this day and time we live in the economy is in a down slop. There are plenty of people who would love to purchase their dream home such as myself and there are a lot of people who become trapped in mortgages that they can no longer afford and eventually lose the house that they worked so hard for. Now they can no longer afford to buy a home so they move into rental properties where it is much easier for them to afford. I am a renter and have been for many years. There are a lot of advantages to being a renter and there are disadvantages as well. Owning a home is a dream that I wish to accomplish one day. With the way that economy is going I choose to continue on with renting for my housing needs. The advantage of being a renter is that your monthly payments are fixed for the term of your lease. The feeling of having a fixed monthly payment is good because you always know how much money you will need to put to the side each month for your payments. With knowing how much money you have to spend each month you are better able to plan and budget for future activities and trips. On the other hand with having a house you have a mortgage payment. A mortgage payment is the amount of money that you pay a bank or other financial institute back ...

Words: 317 - Pages: 2

Premium Essay

Economy

...actual subject of analysis. Political Legislation (current and pending) Laws relating to the industry Tax laws Regulation of transfer for capital and labour Stability of the political system Membership in free trade areas Economical Development of relevant economic indicators Business cycles Unemployment Availability of relevant resources Key industries, industrial clusters Industry structures Socio-Cultural Population and demographics Distribution of income Mobility Level of education Customer behaviour Savings rates Preferences for branded / unbranded products Technological Technological level of The economy The own industry Supplier and customer industries State and private R&D expenses Lifecycle phases of relevant products Application Regarding the subject of analysis, the PEST tool can be used to analyse business segments, industries, particular markets or whole economies. Thus the PEST provides a summary of the driving forces in the macro environment. It identifies drivers that were of high importance in the past, indicates to what extend they might change in future and how this will interfere with the organization or the whole industry. Depending on the objective of the analysis, a distinction between the current situation and potential future changes may be helpful. In order to gain really meaningful results it is not enough to understand the PEST as a mere list of drivers. It rather is a starting point for further analysis of the external environment: For......

Words: 1013 - Pages: 5

Premium Essay

Economy

...themselves. That means less work for general contractors. Economic factors and trends - Housing construction usually dips before a recession hits and bounces back before the general economy does. While the number and dollar value of Port Alberni residential building permits dropped steadily between 1996 and 2000 (BC Stats), many think this trend is now reversing because of low interest rates and a strengthening local economy. Regulatory factors and trends - A general contracting license is required to bid for projects costing more than $500. To become licensed in British Columbia, one must pass a licensing exam after working for four years as a journeyman, foreman, contractor, or owner-builder. This means that Upright Construction's competitors all have a certain level of skill. Environmental factors and trends - Increasingly, homeowners prefer environmentally-friendly building materials and techniques. As a result, general contractors have to keep up with new "green" building practices and products. Industry Outlook The advantage of using a more efficient market to produce the same quality or better products creates a trend that many of the end retailars are looking for. The trend of fashion that Calgary has will create more demand for the industry. At the same time, our Company expects a strengthening economy and increased disposable income among Baby Boomers to cause the local market to grow in the near future. Market Size Based on Trendex, the Canadian footwear......

Words: 2271 - Pages: 10