Sunflower Incorporated.International Business Assignment

Sunflower Incorporated.International Business - Assignment Example Economic growth refers to an increase in the size of a country’s national income. It can also be defined as an increase in the amount of goods and services produced by the economy of a country over a given duration. To measure economic growth is to quantify the increase in the welfare of a country and derive with numerical accuracy of this large scale economic and social change. The formula for the calculation of economic growth is outlined below as; Economic Growth= Change in income/ Income of the Previous PeriodÃâ€" 100 Economic growth is crucial to the national economy well-being of any country and; therefore, requires the government to take the necessary actions to help its citizens to enhance that growth. Many factors that promote strong economic growth are connected to the business framework cycle and efforts directed towards improving the living standards for the consumers. Factors that stimulate economic growth are namely, healthy competition within the market place, innovations in technology, increases in labor supply, and expansion in value and extent of the resources available such as land. Other factors include; science progression and productive knowledge, growth of individual skills and government incentives, the cultivation of new markets in emerging nations, and finally the investment in foreign ventures all are stimulants of a strong economic growth. Central bank is a bank that is owned and operated by the government. It is also a government bank and a banker’s bank. The centr al bank stimulates strong economic growth by conducting monetary policy that controls the money supply in the economy and hence generates more production and high living standards. The central bank also maintains the stability of exchange rates, ensures equitable distribution of income, stable prices of commodities and high levels of employment as ways of influencing the economic expansion. The government banker also sets the official rates of interest that are utilized to manage inflation so that economic growth can be positive and quantifiable. A trade deficit arises when a country buys or imports more than it sells or exports to other countries. A trade deficit is not necessarily undesirable. It bestows benefits and carries some costs and the benefits may outweigh the costs. Trade deficits are a vehicle for extending the gains from trade, where lending and borrowing among nations can lead to a more saving allocation efficiency, and preferred consumption pattern overtime (Sloman, John & Mark 24). Trade deficits do not necessarily cause slower economic growth or lead to any economy-wide job losses. However, a persistent trade deficit is harmful to the national economy since it may decrease aggregate demand and also reduce the actual Gross Domestic product by diverting manpower and finances from competing ventures like imports and exports where these resources are required most due to their productivity. Another consequence is the high levels of foreign investment into the deficit country. This has the effect of hurting investment locally as local investors prefer to keep assets than invest them due to their favorable nature. A persistent high trade deficit in a country can cause economic hardship in the long run in case of changes in political leadership or the beginning of a war. Persistent trade deficits tend to make countries more exposed to global variations in costs and products. This vulnerability though short-lived can produce risks that are highly une xpected for investors. International financial and monetary activities are becoming more integrated since they bring the countries involved more extensive international

Advantage and Disadvantage of Globalization Research Paper

Advantage and Disadvantage of Globalization - Research Paper Example Globalization comprises economic incorporation, the relocation of the policies across the borders, sharing of knowledge, cultural stability, the reproduction and discourse of power. It is a global procedure, a concept and the development of global market which is free from socio-political control. Globalization tends to include all these aspects. The concepts related to globalization have been defined since long period of time with certain suggestions referring to progress, development and constancy, incorporation as well as cooperation. While few others referred to the concept as regression, destabilization and colonialism. Although there are certain challenges, this term brings with it numerous hidden agendas. These are an individual’s political thoughts, geographic spot, social position, cultural setting along with racial and religious relationship that offers the conditions determining how globalization is interpreted (Stallings) By its characteristics, globalization compr ises of numerous disciplines, communities as well as cultures. This permits for numerous viewpoints such as economic, political as well as social. Globalization is considered as an evolutionary term and is considered as a fluid procedure which is constantly changing with the progress of the human society (Goyal). The main objective of this paper is to identify the advantage and the disadvantage of globalization in the United States and other countries. At the onset, the paper will try to offer clear definition of the term globalization. Then, it will try to identify the impact of globalization on various countries and abroad. The paper will mainly concentrate upon the advantages and disadvantages of globalization to the United States and other countries as well. Meaning of the Term Globalization Globalization is the hastening and strengthening of communication among the people, companies as well as governments of numerous nations. It can be stated that value tends to play a vital ro le in describing globalization. A definition of the term globalization as â€Å"Americanization† or possibly, the â€Å"McDonaldization†, of the world demonstrates globalization as one of the procedures derived by American consumer culture that in turn affects other cultures (Al-Rodhan). There are three main tensions related with globalization. The three tensions demonstrate the contradictory values at stake in the procedure of globalization. By evaluating the controversies regarding globalization via the prism of these three main tensions, one can easily comprehend the positive as well as the negative impacts of numerous components of globalization and the ways to locate the balance thereby reproducing their values. The first tension is related to individual choice and societal choice. A conflict arises when an individual, practicing his/her right to make use of a particular lifestyle, to purchase a particular product, or to consider a particular thought is generally not matching with what society as a whole states is most preferable for the society at large. For example, a few of the people in the society may prefer smoking and