Monetary Economics Essay Example | Topics and Well Written Essays - 2000 words - 1

Monetary Economics - Essay Example Monetary Economic growth is generally thought of as one-dimensional and is measured by increase in income. Monetary Economic development involves structural and functional changes and appropriate system of money supply. In the absence of effective measures of the latter however, states of development are estimated by the growth of income. Ordinarily, levels of income and rates of increase are given on a per capita basis, to approximate measures of efficiency and welfare (Shin, 2005, 1117). There are broadly three periods in the early history of monetary economic thought. The first is the period of early industrialisation in Europe, the second is the period of industrial revolution in England, i.e. the period from about 1775 to 1832, and the third period falls in the third quarter of the nineteenth century when other countries like Germany and the United States began to catch up with Britain and finally overtook it as the leading industrial power of the world. But monetary economic development as a discipline comprising systematic and scientific study may be said to have developed over the last few decades (Hahn, 2001). According to Malthus, as long as the wage level is above a certain minimum w0/ population tend to grow very rapidly. Since the actual w never rises above w0/ any short-run increase of the wage is sufficient to provoke a large enough upsurge in population to bring the wage down to a minimum level. Thus, if once the whole world were inhabited, population would increase in an arithmetic ratio as resources do, and not show a tendency of increasing in a geometric ratio, and then there would be progress. But this progress would consist of a proportional increase in the total quantity of capital and the total number of workers. There would be no increase in the standard of living since by hypothesis, every increase in the living standards, i.e.

Internal and External Business Environments Research Paper

Internal and External Business Environments - Research Paper Example Answer of Question 1 The main five segments of the of the general business environment that tend to have significant effect on an industry and all the companies belonging to an industry (irrespective of the size and revenue) happens to be macro environmental forces in the form of political, economic, social, technological, legal and environmental or better known as PESTLE. Although it is needless to say that all the factors are of great significance but as per the requirement of the study economic and social factors have been chosen as the two most significant forces to reckon with. The main reason for such choice is the fact that these two factors only affects the businesses & the industry but also have a close interrelation with the other forces and corresponding affect on the businesses and the industry (Porter, 1980). Economic factors The retail industry in U.S. happens to be second largest industry in the country. The industry is responsible for 12% of the overall employment of the country. Majority of the retail industry is dominated by the organized retail chains. The country has the presence of some f the major global retailers in the form of Wal-Mart (the largest in the world) followed by Kroger, Target, Best Buy, the Home Depot, etc. However, like many other industries the retail industry is also looking to combat the wrath of the 2008 economic downturns. The economic downturn coupled the high level of competition has meant that the growth rate of the industry is going to be slow as the economy is still going through a stage of downturn. The economic downturn has also increased the unemployment rate and reduced the disposable income which most certainly will continue be a reason for the slow growth rate. It is needless to say that Wal-Mart has been affected by the economic conditions just like any other retailers. However, there have been certain opportunities that have been available to the industry such as the free trade zone. Also in the year 2009, the retailer awarded benefits worth $2 billion that included bonuses, contributions, profit sharing and attractive merchandise discounts. Here it is to be noted that this was a move that was respected by the employees and the government also most of the retailers were looking to cut down on costs and employee benefits during that period of time. But from the perspective of growth it is to be said that the company needs to focus a lot more on the operations in the emerging economies. Simply because, the economy of Germany, UK, USA is matured in nature and provide very little opportunity for growth; On the contrary the emerging economies like India and china have a relatively un-taped market and hence would provide would provide a lot more opportunity for growth than some of the matured economies. Social Factors Off late the retail industry in the country has witnessed a paradigm of shift in the domain of consumer behavior. This actually has been an affect multiple factors. Due to th e environmental concern regarding global warming the customers have become a lot more environmental conscious and like to consume green products. Consumers have also become a lot of health conscious too. Also, as mentioned above the due to the economic downturn there has been a rise in the unemployment rate and dip in the disposable income of the people. Unlike earlier due the hectic and complex schedules and high fuel costs the people prefer to