Question

What are the four factors that determined the current modern economy? • How have these factors changed over the course of the 30 years? • How do the shifts manifest in the world economy? Give at least five examples. • What are the implications for business in North America? Great Britain? Hong Kong? • Initiate a discussion based upon your country of choice and the state of the economy there. • Look at the history of your country’s economy basis, and how it has changed over the past 30 years.

Answer 1

Factors of modern economy: changed over the course of the 30 years:

Interest rates

Inflation

Unemployment

Supply and demand

Foreign exchange rates

Interest rates: the rate in which individual or industry take the loan. Interest rate is the additional amount plus borrowed amount.

Inflation: prices of goods and services slowly rise in the number of year’s .but when the price of goods and services increases quickly it said to be the situation of inflation.

Unemployment: unemployment is that situation where people have not work.

Supply and demand: it is most important factor in the business the amount for the purchase is refers to the situation of supply. On the other hand how much the consumer wants to buy the goods and services is refers to the demand. Both demand and supply have a great effect on the prices.

Foreign exchange rates: The name for the exchange rate is called foreign exchange rates. Foreign exchange rate is that rate in which one country currency is converts into another country currency.

Implications for business in North America:

The amount which earn by the US Company.

The states in which business operates

The largely structure of the US company

The states in which the business operates.

Implications of business in Britain:

Implications regarding free trade or common market of nationalisms and sub nationalisms.

Free trade votes does not exist

Against the London, hinterland gave the negative vote.

Implications for the Hong -Kong:

Implication regarding peace

Implication regarding development and sustainability

Implication regarding long term stability and prosperity.

History of country economy over the past 30 years:

In the current fiscal year, the Indian economy faced the situation of inflation. And it is due to depreciation sharp rupee, known as RBI (Reserve Bank of India).