Economic growth - is the path to well-being in the state

click fraud protection

Any economic environment can not be at rest.She has the ability to actively influence any changes in the company.At the same time such an impact can be both positive and negative.Guarantee the effective functioning of a business entity is its ability not only to analyze, but also to predict any changes in the economic environment and be able to adapt to them.

economic growth - is one of the goals of the state, which implies an increase in the economic potential of the economy, the growth of domestic product, calculated per capita, and to achieve a high level of living of citizens.

concrete benefits for the business sector brings economic growth.The discovery of new market alternatives in a developing economy.

general state of the economy can have a significant impact on consumers' ability to pay and generate demand, as a result of which there is a certain value at the consumed resources.When the economic downturn business entity significantly reduces the volume of finished goods in warehouses, reducing production while reducing the number of employees.

As to the level of individual companies and the state in general economic growth - the increase of financial results and performance, using tools such as extensification and intensification.

Thus, extensive economic growth - the increase in the indicators of the economy due to the additional involvement in the production of the means of labor, additional working life, and even the construction of new production facilities.

intensive economic growth - a process in which gains at the expense of quality of renovation of production facilities using new advanced technologies.

extensive methods of growth in the economic sector have a number of negative properties, which are reflected in the production in the future.This is, firstly, unthrifty use of resources due to the increasing amount of their consumption.Secondly, due to the additional construction of new production facilities and increasing the likelihood of increased environmental pollution.The only positive aspect of using this tool to achieve positive dynamics of economic indicators - new jobs by increasing the staff, which contributes to a significant reduction in unemployment.

the positive properties of the method of intensive economic growth include:

- capital ratio, at which the increase in production achieved by increasing the volume of output at constant cost;

- fondosberegaemost characterizes the excess growth rate of manufacturing growth rate of all the resources that support it.

increase in production only by means of upgrading (improving) the factors of production only provides intensive economic growth.This is an essential tool contributing to the implementation of new technologies in the production process, which allows the use of natural resources to make more economical, rational, and monitors the continuous training of workers.Improved economic performance is achieved by increasing the return on assets of a business entity.In other words - to achieve the increase in finished products is not necessary to build another plant.Positive results can be obtained using a conventional reconstruction of the production.