Essay on Economic Growth

Submitted By aeeliyar
Words: 1503
Pages: 7
Open Document
Contents
1 Introduction
2 What is an economy?
3 The UK economy
4 Economic Globalization
5 Economic Growth & Measurement
6 Growth and Environmental Gains
7 Environmental Losses and Repair
8 National Well-being, Health and Happiness
9 Alternative Measurements 7
10 Conclusion
11 References

1
1. Introduction
Economies around the world are varied and the wealth of the country is portrayed by its economic growth countries with high economic growth are referred to as developed countries and those with lesser growth are considered to be developing countries.
As we all know that economic growth brings wealth to the country but in this report we will find out whether economic growth can bring health and happiness also.

What is an economy?
An economy is a system to control the income, assets, resources and wealth of a country it includes the production, consumption, distribution, imports and exports of goods, it also controls the prices and consumption of goods in a western society like the UK by controlling how much is consumed and what prices are paid the demand and supply of goods can be controlled.

The UK Economy
The UK government collects various taxes for example Health care, education, free meals and various benefits which are provided by the Government. The UK economy is one of the largest 7 economies globally and is recognized as a developed country. The majority of countries in the east are seen as developing due to their lower economy except Australia, New Zealand and Japan as detailed in Figure 1 (Fribbance, 2009, p. 18). The UK has various regions which are measured for its Gross Value Added (GVA) it determines the contribution

2 made by each region to the national economy in terms of industries and production excluding taxes. Each region is measured for its GVA per head, as a percentage of the UK average, by residence and the UK average by percentage of the workplace. London has the highest GVA and the North East the lowest, however it must be noted that London is a world city, therefore, a centre for business and finance unlike the North East, see Table 2 (Fribbance, 2009, p.27).

Economic Globalization
The UK is classed as an “open market” where people are free to:
• Trade in goods/services with other countries.
• Import Cheap goods
• Out-source call centres
(International trade levels for the UK are comparably higher than other countries, for example the OECD(2008) figures for 1992 show, the UK traded 24% of the value of its economy whereby USA only traded 10% (Fribbance, 2009, p.19)). * Make inwards and outwards foreign direct investments (FDI) e.g * Land Rover, Jaguar, Corus steel, Tetley tea * Barclays * GlaxoSmithKline
Whilst this openness with TNC’s helps the global economy, some argue it’s at the loss of jobs and production in the UK (Fribbance, 2009, p.21). The UK economy growth is only possible with connections to the global economies (Pryke, 2009, p.104)

3 Economic Growth and Measurement:
Economic growth brings wealth to a country the rate of growth and level of growth are measured by FDI and Gross Domestic Product (GDP). GDP is a measurement of income per person between 1992 and 2003 the UK saw a large increase in both inward and outward FDI showing:
• Increased foreign assets for UK firms/households
• Outsourced manufacturing services
• Banking, IT, insurance services and consultancy growth
• Better competition in global market
By 2008 when the recession took place the UK had become better off than 20 years earlier according to GDP figures. Table 1 shows the UK ranked 7th out of the group of 7 major developed countries in 1997 – however in 2005, UK was ranked 3rd (Fribbance, 2009, p.24-26) with a GDP of $32,860 (US), a rise of 47%.

Growth &
Show More

Related Documents: Essay on Economic Growth

Economic Growth And Economic Factors

Economic Factors Factors Businesses are affected by the economy An economy describes how a country spends its money This is determined by 5 factors Economic Economic Growth Growth Exchange Exchange Rates Rates Inflation Inflation Economic Economic Factors Factors Balance Balanceof of Payments Payments Unemployment Unemployment © Business Studies Online: Slide 1 Economic Growth Growth This measures how much extra an economy has produced this year compared to last year The total amount produced in an economy is called:…

Words 832 - Pages 4

Economic Growth Essay

Name: Andy Chan Yin Loong Student ID: 27439 Assessment 1 Group Presentations & Tutorial Participation Management 302 Business Economics The Economic Problem Through the presentation, I have explained the 2 main topics which are the Economic problem and the demand and supply analysis. I have used graph to explain them and explained how we read the graphs. Production Possibilities and Opportunity Cost This will be explained as where with the amount of resources available and by the…

Words 759 - Pages 4

Economic Growth Essay

Describe the influence of two contrasting economic environments on business activities within a selected organisation (P5) Economic growth Economic growth is a long-term expansion of a country’s productive potential, growth is the way the country’s economy increases over a course of time. Recession A significant decline in activity across the economy, lasting longer than a few months. This can result in people losing jobs and the only spend the amount of money they can afford. Recession will…

Words 837 - Pages 4

Economic Growth Essay

This Coursework will permit me to look briefly at the China growth process, GDP per capital average annual growth rate, and compare it with the Sub-Saharan African Region. Table 1. GDP per capita average annual growth rate for Four Decades (1970-2010) |Region |Subgroup | Year |Value% |Year |Value% | |Africa |Total |1970-1990 |0.9 |1990-2010 |2.1 | |China…

Words 2459 - Pages 10

Questions On Economic Growth

1. Economic growth can lead to not only to growth with the goods people can buy, but also can lead to lower poverty rates and longer life expectancies. Because of this economic growth, people can afford better medical care, more nutritious foods, and more relaxation in order to reduce stress. Small differences in growth can lead to dramatic differences in income due to the effect of compounding. Compounding is the ability of growth to build on previous growth. It allows GDP to increase over time…

Words 547 - Pages 3

Economic Growth Essay

Economic Growth Sunny Economic growth is an increase in real GDP. Economic growth could raise living standards and reduce poverty by increasing job opportunities and by increasing the amount of tax revenue the government has spend on helping people who are unable to work. There are two main sides of factors that cause economic growth, which are supply side and demand side. The demand side factors influence the growth of aggregate demand, the first factor that affect aggregate demand is the…

Words 422 - Pages 2

Economics and Overall Economic Growth Essay

The economic state of the country and consumer confidence can help the growth and development or harm it. “In recessionary times, consumers begin limiting their purchases to the essentials, foregoing luxury or big-ticket items. Companies also scale back production, hiring and the development of new products and services to ensure that their finances can weather the storm. In periods of overall economic growth, these companies once again expand”. (Mohr, 2014) The opposite is true in businesses that…

Words 468 - Pages 2

Economic Growth and Development Essay

ECONOMIC GROWTH AND DEVELOPMENT Introduction Economies grow and develop, they expand and advance, and they progress and prosper. There are phases when they decline too, and there are economies that experience continuous decay. If one considers long stretches of human history, one knows that economies (civilizations) disappeared altogether. We will not take into account such long stretches of time. We shall not consider too distant a past either. We will leave them to historians, may be, economic…

Words 1989 - Pages 8

Role Of Capital In Economic Growth

8 Why Do Economies Grow? Chapter Summary In this chapter, we explored the mechanisms of economic growth. Although economists do not have a complete understanding of what leads to growth, they regard increases in capital per worker, technological progress, human capital, and governmental institutions as key factors. Here are the main points of the chapter: • Per capita, GDP varies greatly throughout the world. There is debate about whether poorer countries in the world are converging in per capita…

Words 6309 - Pages 26

Essay on Euroarea Economic Growth

Economic Growth "Simply, if all of us do everything that we agreed to, then Europe will blossom and grow, in fact in all parts…But we still have a way to go." – Wolfgang Schäuble, Germany’s Finance Minister (Thomas) Wolfgang Schäuble was quoted recently in a news article announcing Germany’s 2015 budget. For the first time since 1969, Germany will not acquire new debt and will spend what they take in until 2018 (Thomas). The goal is to drive their debt-to-GDP ratio below 60%, which is a goal set…

Words 1248 - Pages 5