Global economic development Essay Example for Free

Global economic development Essay Evaluation of Gwlad’s position within the global economic environment Swot analysis (Hewings, 1995) Strengths – Gwlad as a country should focus on its administrative strength in the public sector. This would allow the country to delivery better services to the public in terms of quick processing of documentary and information needed by the citizens. Secondly, the country has seems to be one of the states in Western Europe which has highest number of population with diverse cultural activities. The Gwlad country’s population diverse cultural work attracts a number of tourists. Weakness- the country offers low level services. It also shows that it has low manufacturing productions. In the overall results, the country has not developed to high production scale hence there is relatively low gross domestic productivity per head. Threats-the fact that the country has no ties with the other neighboring countries is vulnerable to incur high import and exports taxes. Other threats that may exits are those associated with shortages of vital good which are not produced locally. Opportunities- the country being in the region of Western Europe is most likely to be having advanced technology. This means that the wealthy in technology based activity can be worked to increase both the level of manufacturing as well as GDP per head within the country. Suggested policies to follow (Trogen, 1999) Technological policy- the group needs to utilize this policy in curbing the problem associated with the low productivity. In such a policy, the teams must emphasis both on innovation and invention work. Still many efforts should seek technical assistance from part of the globe where possible. Competition policy- in every kind of economic growth of region, amicable environment which allows competition is a must for spurring economic growth and development. This means that the local competition environment should be bestowed to all potential citizens in every particular sector of production. Apart from the local competitors, the policy should encompass other issues that would allow the external competition as part of initiating news ways of economic growth. activity2: yes! The issues that Dai has identified part of the main issues to look when deciding, marketing of Gwlad. It is clear that Dai has taken location, distance and labor as the main factors to consider in this marketing strategy. However, it should be known that security and resources available within the country plays important role in economic developments. Furthermore, the means of communicating available and the accessibility of they location goes hand in hand in determining the attraction external investors to come and invest in a particulars region. Overall, it would be very important to first consider the costs involved in the marketing of the Gwlad to the external world. While business activities are diverse, they entail a lot of interwoven interaction of many sectors. Any decision made within the government directly and indirectly affects the performance of the business. This form the fundamental issues as the governance procedure are final on business prosperity or failure. Hence, incentives and subsidiaries that are offered by the government in Gwlad perhaps would make the citizens and the foreigners’ interest to invest much aroused. Politics and policies enacted in the Gwlad also have enormous impact to business. Services and the rate at which they are available to interested business operators are also major part of marketing the state. This is because delay and bureaucracies in service and information acquisition are both derailing factors in business operations. Activity 3- (Meier, 2004): (I)-no! I do not agree that technological advances are the only key factors to economic development. There are other issues which are also of great importance. This is because economic development focuses on three or more area in its development. One of the focuses is the government policies. In such a field, economist examines issues which are concerned with price stabilities, employment and taxation as well as the policies set to have sustainable growth. as the economic development protocols are integrations of several factors, government operates on many areas which are directly in connection with economic development such monetary policies, trade transaction and taxation policies together with regulation pertaining to financial institutions. The second major area determining the economic development of a place or region is the manner in which policies dealing with services and infrastructures are set. These include highways, housing, security and still parks. Thirdly and the final section in which economic developments is determined is directed to policies of job creation, retention and expansion, technology transfers and marketing as well as neighborhood development. In such consideration, it is vivid that the economic development is not achieved only through technology advancement. Certain factors are physical factors which are needed for the operations of certain economical activities. Other factors are human based availabilities like policy making that affects the economic growth of an area. For instance, trade restriction may be major factor contributing to low rates of economic developments due to lack of competitive environments. Abolition o such trade restrictions create a better environment for potential foreign investors. Financial factors have been seen as prominent factors that enable economic developments as can be revealed in most developing and underdeveloped countries. Their economics developed rates are not associated with inadequate funding for projects based on economic development and projects on research work which brings about technical advances. Thus, human policy factors, financial status factors and technical factors are all attribute to economic development As from the above revelation, I do not agree the three sectors are the core that economic policy should concentrate in. Energy; environmental, telecommunication and ICT are not the core that can bring economic growth in a country without integrating changes in governance. Management of any organization/ institutions is vital. Thus the inclusion of effective management and services delivery would enhance proper utilization of the resources available in the three sectors which would lead to economic growth. Activity4-(Isard, 1985): analysis of inward investment attraction, domestic company development and combination strategies Inward investment Strengths- depending on the financial ability of the surrounding neighbor countries, this form one of the greatest strong hold in which the foreigners can capitalized in. this means that they would be able to provided financial services and their products. Weakness- the fact that the country has got no ties in trade transactions such as free trades areas with the neighboring states, many inwards investments are likely to be heavily taxed and barred in their operations. Generally, unfair treatment to the inward investors is likely to cause low rate of investment. Opportunities- the fact that most neighbors have advanced technology and also they are able to having greater GDP than the Gwlad, it means that the inwards investment would be able to replicate similar productivity phenomenon making trading a competitive issue in the country. This means that the inward investors would enjoy the advantages of large scale production (Pleeter,1990) Threats- following the inwards investors interacting with the locals, there is that possible of technology transfer which the local would gain an advantage of learning the new techniques and therefore begin producing local products that would halt the utilization of the investors’s products Domestic company development: strength- the country seems to be lagging behind in all the areas. This implies it has very limited strengths on which it can take an advantage over its neighbors. (Peterson, 2001) Weakness- the country is portrayed to lag behind in general productivity which implies that their is low trade activities in the regions Opportunities- the country having a score of learned individuals within its boundaries can be utilized both in the management level to bring technology to its required standards enhancing production which is a core to level of trade activities in country. Threats- the domestic company development are likely to be threaten when the country goes to inwards investment. The inward investors being more competitive than the domestic companies would render the local companies uncompetitive in terms of quality of products, price and in marketing strategies. For the above consideration of the analysis, I would choose the combined strategy the main reason for choosing this particular mode is because, with proper policy formulation and enactment for both internal and external investor companies, there are high chances of mutual benefits. Technology advancement, financial investment availability leading to higher production of the products would enhance the general growth of the economy of the country. Activity 5:- (Bulmer-Thomas, 1992, Leistritz, 1991): the GDEAD’s members are supposed to come up with policies which would enable low cost in the supply chains. These policies includes:- The policy of strategic vision and concrete actions in cooperating in the supply of the material and the distribution of the products to all parts on the country Reduction of taxes in the products produced locally the investors Development of local infrastructures that will enhance logistics from one area to another Recruitment and training of human resources to enable smooth distribution of the products Policies to enable persuasion of U. S multinationals in financing, marketing and RD in Gwlad The GDEAD must come with policy that allows globalization of market in Gwlad The team should use merger systems of the a few industries so that they begin venturing in to the same market in which the multinationals are operating to break monopoly of the U. S automotive companies. The team should advocate for new methods of technology in information and communication to enhance global advertising both from local and multinational companies. Activity 6:- (Dewhurst, 1991) Pros of the EU are that the EU members have several methods in which its negotiations and terms are based. First, the EU group has strong negotiating power than any other union. This means that the pooling together of efforts in the negotiating process makes the members to have great influence in international trade. Its members are said to be first in the leading in foreign direct investment. The united stated are depicted as the second while they remain the first for foreign investment. While the EU operations are undertaken within the 130 countries, it commands a relative open economy that accounts over 14% of the international trade of its gross domestic products. In comparison with the United States gross domestic products, it commands of 12%. It implies that the EU association with the Gwlads is of more advantageous than joining any other of the above state. (Bull, 1995) I would make arrangements of integration type in joining EU for the Gwlad. This because the EU integration would protect the local first and then from the integration the other collaborating states would have an influence in Gwlad in political, security, technology and other areas in which economic issues are connected. He Gwlad would be changed in its institutions through the established rules and regulations of the EU integration that sets the culture and philosophical basis of government as well as other authoritative bodies which could change economic Institutions. However, free trade would definitely bring in unfair competitions to the locals industries and communities leading to the poorly performing ones. (Dewhurst, 1991) Activity7:- (Grady, 1989) The clusters economic development established in this region is not of best nature. Locating an economic zone far 100km from each other is like creation of monopoly of the various institutions established. Secondly, the interaction of the various institutions when they are far from one and yet they are no quicker means of communication implies less information transfers/ ineffectiveness or delay actions would be frequent. This implies especial in the health, bioscience, financial services/ products and professional services. Similar disadvantages would exist in creative, automotive and aerospace zone. However, the distance would be of advantage to automotive and aerospace in advancing the technological world as this would be determined by increased needs to travel from one zone to another. In organizing the above sectors, I will use different policy as they all differ in the application of creating and reduction economic growth. While the bioscience and the health sectors are there for the purpose of ensuring fitness of the community, the automotives and aerospace are established for saving time in production. Thus health and bioscience would policies towards health facilities and proper nutrition while the latter two would venture policy on technology of speedy safer means. Activity8:- (Grady, 1989, Brace, 1993) Costs and benefits of meeting the demands of the aerospace industry The costs of the meeting the demands of the aerospace industry involves the productions costs. This would require importation of new materials for the manufacture of the aerospace device. Second is the maintenance cost, which will be cut through the use of the correct quality materials. Thirdly is the training cost which will be an essence in having potential skilled human resources and engineers who work on the technological manufacture of the aero plane as well As maintaining them. Finally, the country would have to invest in R D that would enhance development of modern aerospace using the most advanced technologies than any other competing companies Suggested policy to GDEAD: (Hunter, 1999, Walsh, 1996) The GDEAD should come u p with a policy for which given the current financial situation, it would be able to meet the same demands, but through institution establishment and collaboration with the industry, it would support them in the research work. Reference: Brace, P. (1993). State government and economic performance: Johns Bull, A. (1995): The economics of travel and tourism: Longman. Bulmer-Thomas, V. (1992): Input-output analysis in developing countries: Wiley Dewhurst, J. (1991): Regional input-output modeling / new development and interpretation: Avebury Grady, D. (1989): Governors and economic development policy: vol. 17, pp 870-84 Hewings, G. (1995): Regional input-output analysis, Beverly Hills: Sage Publications Hopkins University Press Hunter, K. (1999): Interest groups and state economic development policies: Praeger Publishers Isard, W. (1985): Introduction to regional science: Prentice Hall. Leistritz, F. (1991): The socioeconomic impact of resource development: Westview Press. Meier, G. (2004): Leading issues in economic development. Oxford Peterson, W. (2001): technology, planning, and Development: Oxford University Press. Pleeter, Saul (1990). Economic impact analysis: Boston: Maritinus Nijhoff Publishing Trogen, P. (1999): Which economic development policies work: retrieved from http:// University Press Walsh, R. (1996): Recreation economic decisions: Venture Publishing, Inc www. spaef. com, on 1st December 2008