concepts economy lie in the institutional basis of economic activities of the whole society, the aggregate relationships that develop in the system of production, distribution, exchange and consumption.
economic environment is in constant motion and actively affects both the state as a whole, and on businesses in particular.Guarantee the effective functioning of the company is the implementation of a complete analysis and accurate forecasting of trends in the economic environment changes.Any successful organization needs to be able to adapt to the time change.
The term "economic growth" would increase the gross national product in a certain period of time.This indicator is measured by average annual growth rate and is expressed as a percentage.
economic growth can bring some benefits to entrepreneurs through the opening with the help of new market alternatives in an ever-expanding economy.When the economic downturn reduces the company supplies its products, reducing production and number of employees.Performance indicators characterizes the economic growth of any company.
Many prominent economists think about the question of what causes economic growth, and find answers to the following factors:
- The presence of rich natural resources, which are quite beneficial impact on economic growth, but not enough, and clear evidence serve the Japanese economy, Taiwan, Singapore, Hong Kong and Korea.These are countries in which virtually no natural resources.
- Human factor expressed in the presence of human resources, which should have the basic properties - education and hard work.
- Due to its geographical position the government has the ability to generate additional revenue through the implementation of transportation of goods through its territory.A striking example is the country, located on the shores of the seas.
- The volume of investment and capital.
- Scientific and technological progress and increases the impact of science and technology in the production process.
In any society, there are two main ways of economic growth - is intense and extensive.In this article, more pay attention to the second type.
extensive economic growth can be achieved by a quantitative increase in production factors while maintaining the same level of technical base.For example, to increase twice the production volume at the plant is necessary to put into operation additional equipment to increase the number of employees and invested capital.
extensive economic growth observed over long periods in the history of some states.Its duration may be determined by the amount of investment, human and natural resources.However, regardless of their volume, they still have the ability to gradually depleted.That is why it is advisable to reach the economic growth not only extensive method.
extensive economic growth - the original path to expanded reproduction.That is why it is possible to note some negative properties, which show the imperfection of the term (as indicated above - natural resources are depleted over time, the human need to train more than one year, etc.).
Despite all its shortcomings, extensive economic growth is the basis of economic development in the future.For example, this type of economy contributes to employment and reduce unemployment.
