Every country in this world has its own economic to develop their country also to rich their country. Each country has their own economic goals to improve their monetary conditions. You can find four major economic goals are price stability, economic growth faster than population growth, low unemployment of resources and equitable distribution of income and wealth. Every country, through its government, will endeavour to do this economic. It is very importance for every country to attain these economical goals. By attaining this goals, the united states economical will be stable and can develop the country. Moreover, more foreign investor will invests in their country if the countries monetary is stable and good.
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Price stability is one of the importance economic goals that every country must achieve. What's price stability? Price Stability is the economic term used to refer to a situation where in fact the general price level covering consumer goods remains unchanged or if it can change, it happens at a minimal rate such that it is not strong enough to make any significant influence on economic. In other word, price stability is the minimum fluctuations in the price tag on goods and services. Price stability is also a predicament where prices in an economy don't change much over time.
In the marketplace economy, price changes are a phenomenon depending on demand for and offer of goods and services. It isn't common for an economy to acquire price stability. Price stability means an economy wouldn't normally experience not experience inflation and deflation. Every country must maintain their price stability to minimise drastic price changes, to prevent inflation and keep up with the purchasing power of its currency. For example, if the price tag on the sugar increases, the consumer maybe will not buy the sugar. If the price tag on a goods and services keep increases and price is not stable, it'll lead a country to inflation.
What is inflation? Inflation is an increase in the general standard of prices of goods and services in an economy over a period of time. When the purchase price level rises, each unit of currency buys fewer goods and services; consequently, twelve-monthly inflation is also an erosion in the purchasing power of money. Purchasing power of money is a lack of real value in the internal medium of exchange and unit of account throughout the market. Inflation's influence on an economy can be simultaneously positive and negative. Unwanted effects of inflation add a decrease in the real value of money and other monetary items as time passes meanwhile the positive effects of inflation add a mitigation of economic recessions, and debt relief by reducing the real level of debt. It is every important for every country to achieve this monetary goal. Every country must maintain its price stability of goods and services to avoid inflation also to avoid the united states into debt. Achieving and maintaining a low and a well balanced inflation is a foundation for most of the monetary and social objectives that most people would want to see achieved?
Economic Growth Faster Than Population Growth
Economic growth is needed to spur the people and improve their quality lifestyle, which is determined by the ratio between monetary growths over population growth. Standard of living is a generally measured by standards such as real, example like inflation adjusted income per person and poverty rate. Economic growth is a positive change in the level of production of goods and services by a country over the certain period of time. Economic growth is usually brought about by technological innovation and positive external forces.
What is population growth? Population growth is the change in a population with time, and can be quantified as the change in the number of people of any species in a population using "per unit time" for measurement. If the country's population growth grows faster than the economy, then there will be a decline in living standards which will lead to numerous social and economical problems like inflation. If the population of the country increases, the country has also to increases it economy. The government also have need to escalates the price of goods and services, therefore people must pay more than the original price for a certain product. People who have fix income maybe could not afford or buy lesser the product.
Therefore, the country economic have to grow faster to support the increases population growth. If the economics of the united states increases and stable, the government can support the increases population of the united states and to develop the country's economy.
Low Unemployment of Resources
Low unemployment of resources is a important to ensure that available resources of a country is fully employed to produce more goods and services. What is unemployment? Unemployment describes the state of a worker who's able and willing to have work but cannot find it. The factors of production or productive inputs are the resources employed to produce goods and services. They facilitate production but do not become part of the product as with recycleables or become significantly transformed by the production process much like fuel used to power machinery. You will discover four main factor of production of low unemployment of resources which can be capital, land, labour, and entrepreneurship.
Capital is one of all important factor of production. In economics, capital, capital goods, or real capital are factors of production used to produce goods or services that are not themselves significantly consumed though they may depreciate in the production process. Capital goods may be acquired with money or financial capital. Capital also generally refers to saved-up financial wealth especially which used to begin or maintain a business. Land is one of the four factors of production. In economics, land comprises all naturally occurring resources whose supply is inherently fixed. Land has comprised with different kind of natural resource like tin ore, gold, mineral resources and so many more. Natural resource also comprise of air, water, wind and many more. Natural resources are key to the production of all goods, including capital goods.
Labour is another factor of production of low employment. In economics, labour is a way of measuring the task done by humans. Labour also refer as human capital that are referring to the abilities that employees possess, definitely not their actual work. The last factor of production is entrepreneurship. Entrepreneurship is the act to be an entrepreneur, which is person who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods. Entrepreneurship is a individual who is an entrepreneur can best be described as a risk-taker. Entrepreneur is the individual who identifies as a do not need to met by the market up to now, new markets for existing product and new process by which products can be produced.
High unemployment in a country will generally have more economical problems and social problems. Such problems are, higher crime rates and corruption activities happen as people may resort to against the law means to get money. Other problem such as medical condition and malnutrition as since some individuals won't earn enough to eat or even to have an effective dish. Moreover, a high unemployment rate generally indicates an economy in recession with few job opportunities. The country must achieve these economical goals because they has to minimise the high unemployment. Low unemployment can escalates the country economics to accomplish a stable economics.
Equitable Distribution of Income and Wealth
Distribution in economics refers to the way total output or income is distributed among individuals or among the list of four factors of production. These economical goals it's important for each country to truly have a fair distribution of monetary and wealth among its people. The gap between the rich and the indegent in a country mist not is fantastic or big. An equitable distribution resource allocation system needs to be practice by the government of every country.
Wealth in economics is the net worth of the person, household, or nation, that is, the value of all assets owned net of all liabilities owed at a spot with time. In economics, income is the flow that is, measured per unit of energy of revenue accruing to a person or nation from labour services and from ownership of land and capital. That is a very important monetary goal for the federal government to achieve because it encourage the less fortunate people to have education and also to able stand on their own feet. In addition, it reduce social problems such as theft, burglary, murder and many more, if the individuals are educate and have a good job. Additionally it is to left people have fair chance in competing and surviving in a rigid social world.
CONCLUSION
For a country to attain a stable economic, they need to achieve all the four monetary goals. These financial goals can not be achieved by the federal government only, the people of the country also need to contribute they part to achieve all these goals. By achieving these goals, every country can have a well balanced and a good economic also to support the people of its country.
Question 2
The globalization structure today has created a tendency which international trade has become an extremely importance economical resource for most of the countries on the planet. Discuss how Malaysia has benefited from international trade.
INTRODUCTION
What is international trade? International trade is an exchange of goods, capitals, and services across international borders and territories. International trade is a principal not different from domestic trade as the motivation and the behaviour of parties involved with a trade do not change fundamentally whether or not trade is across a border or not. Increasing international trade is vital to the continuance of globalization. Without international trade, nations would be limited to the products and services produced within their own border.
Malaysia's international trade experienced tremendous growth throughout the last three decades. The Malaysian government welcomed export-oriented industries, created a very positive investment environment in the united states, and fostered close relations between government and private businesses. The government established a few barriers on the importation of goods and services, though it often chosen selective intervention as well as for protecting some sectors of the national economy. Over five years, Malaysia more than doubled its exports from US$29. 416 billion in 1990 to US$74. 037 billion in 1995. After the 1997 regional financial turmoil, Malaysia experienced economical recession, although this recession was much smaller and less destructive than that in South Korea or in Indonesia. Because of tough economic measures, Malaysia's exports recovered and reached US$83. 5 billion in 1999.
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Total World Production
This is specialization by two countries by using absolute advantages as the basic to increases the total world production of goods and services between two countries. This allows both or all the countries in this world to take pleasure from more quantities of good than before.
United States of America is definitely one of Malaysia's largest trading partners, its exports to america has reaching 21. 9 % in 1999, per year where it was the United States' 12th greatest trading partner. Trade between these two countries consisted mainly of assembled electrical goods and manufactured electronic product.
Trade (expressed in vast amounts of US$): Malaysia
Exports
Imports
1975
3. 843
3. 566
1980
12. 958
10. 820
1985
15. 442
12. 301
1990
29. 416
29. 258
1995
74. 037
77. 751
1998
73. 304
58. 326
SOURCE: International Monetary Fund. International Financial Statistics Yearbook 1999.
From the table above, international trade between United States and Malaysia have increases. By this international trade, Malaysia has imported all lot of assembled electrical goods and produced electronic product from the States. They have got imported more quality electronic product. Neighbouring Singapore is traditionally the second-largest export market with Malaysia, with the proportion of goods to Singapore reaching 16. 5 % and dominated by electrical and electronic equipment, machinery, metals, and mineral fuels. Japan is in third place at 11. 6%, and, once more, exports are dominated by electrical and electronic equipment, machinery and mineral fuels.
Improved Product Quality and Production Efficiency
Goods products for exports will often have better quality, finishing design, innovation, and pricing to become competiveness. Most Malaysian imports originate from Japan, with the Japanese share of imported products, and consisting mainly of electrical and electronic equipment and machinery. Examples of products that are imported into Malaysia are Japanese cars like Honda, Nissan, Mazda, Suzuki and many more. Electrical and electronic equipment like popular brand Sony are imported into Malaysia. If quality products are imported into Malaysia, Malaysian will love using quality and better goods and services. Although imported productare expensive, Malaysian are enjoying to utilize foreign brand product than local product.
Malaysian exports shifted from the sale of agricultural products, raw and processed natural resources, and labour-intensive produced goods including clothing, footwear, and textiles to the sale of skill-intensive products, including electrical and electronic equipment and parts, and services. The proportion of exported electrical machinery, appliances, and parts including semiconductors, electronic equipment, and electrical appliance. The other important export products were commodities, chemicals and chemical products, made metal products, and textiles, clothing, and footwear.
Increased Selection of Goods and Services
International trade has allowed every country to take pleasure from a bigger basket of goods and services from different parts of the worlds. International trade also has allowed a country to take other country goods and services that can't produce itself. Other than enjoying Malaysian goods and services, Malaysian can also enjoy other country goods and services.
For example, instead for buy Malaysian made cars like Proton and Perodua, Malaysian can buy imported cars such as Toyota, Honda, Mazda, Nissan and many more. Furthermore, varieties of electrical product are imported into Malaysia such as Sony, Toshiba, Acer, Dell, Sharp, Panasonic and so many more. Imported goods and services are more quality and lost lasting than local goods and services. Malaysia are also exporting their local made goods to other in exchange with their local made product.
CONCLUSION
Although Malaysia's industrialization and economical growth is highly dependent on international trade, the Malaysian government was less supportive of full monetary liberalization than neighbouring Singapore. Malaysia has were able to maintain a confident trade balance, exporting more goods than it imports. Even through the recession of 1997 and 1998, the united states had a large trade surplus of US$4. 0 billion in 1997 and US$17. 7 billion in 1998. International trade is not only to import or export goods and services to other country but it can bond the country's political and social. International trade is also to keeo maintain and grew a relationship or patternship between two country
