Question

1. An increase in technology within a country has both a positive and negative impact on the economy. Please explain in detail both perspectives. provide examples and show references.

2. Is having a strong currency always a positive? Why or why not? Please provide examples and show references.

3. Explain in detail why the history of a country is important to the current and future economic outlook for a country. Please show references.

Answer 1

1. Technology has proved its might in todays advanced world.It impacts each aspect of human life be it the economical,social or psychological and much more.No doubt it has huge benefits and proved itself to be a boon for the current generation.Still it has some negative effects and some time it proves to be bane sometime.The very first it has made our life smoother,easier and comfortable.It leads to a shift in the production possibility curve of the economy which gives boost to the producing resources and capability in the economy and enhances economic productivity of the economy and its potential growth.It increases capacity,efficiency and performance.Its negative aspects are that a certain technological advancements and improve may require people and worker with new skill and knowledge to operate them which may take time and can prove to be a hindrance in the production process.Still technological advancements has posed a number of security threats,spams,viruses,cyberattacks and security breaches,such thing has caused major economic losses to the economy.For example SMARTPHONE has made our life easier,the world is on fingertips,and has lead to addiction and many a time it has lead to road accidents and other mishappenings.A survey has reflected that smartphone has lead to decrease in working hours and days.Laptops in classes for students has resulted in low learning capability.Inventions in advanced weapons and nuclear bombs is posing great threats to growth and development.Along with the rise in fake news has also increased worries.

2.No,Having a Strong currency is not always good for the economy,it needs to be balanced depending upon the economic conditions of the economy,its growth and developments status.Value of a currency has a number of direct implications on the economy.It directly impacts the foreign trade,purchasing power,capital inflow and outflow,inflation and interest rate and different ways.These variables needs to be cautiously used so that the economic growth can be maximised depending upon the economic status of any nation.For example if a country has strong currency,then its export becomes costlier for the importer nation and this would discourage foreign demand.It will also negatively impact the foreign investment prospects.Imports become cheaper and thus domestic production of goods may be discouraged and this way less investment would take place providing less empolyment opportunities leading to less income generation.An economy growing at a slow rate may worsen its economic growth speed due to strong currency.It may worsen the current account of balance of payment,may lead to deflation due to lower inflation rates and much more.

3.The current and future economic outlooks of an economy depends much on the history.History,in simple terms is the study of the past.when we say past its not only covers a single aspect rather it covers every aspect be it the social,economical,political.In other way,we can say that history forms the basic building blocks and basis of current and future economic outlook.Economy is not only concerned with doing business,producing goods etc.rather it affects the growth and development deeply and is itself deeply affected by the above mentioned factors.History determines the current quantity and quality of resources and prospects of economic developments.The level of economic growth and development is determined by the level and quality of educational development,quality of human resource,social and cultural aspects and much more that has took place in the past.If we take the example of Indian history,it had a rich glorified,prosperous past where it was said to be a golden bird,it enjoyed an upper hand in trade with others and much more.It seemed to have a bright future ahead but today India stands lagging in still many economic and social areas where it has huge unemployment with a considerable section of society in grim poverty and much worrying economic scenario.It would still take many years to be called a developed nation.Whats the reason behind,India has faced a dark history with mass destruction,plundering,looting,low level of economic development,illiteracy,poor health facilities,economic and political unstability in the recent past.It was invaded,plundered and looted by foreigners and made a colony by europeans for nearly 2 centuries that impeded its social,political,economic growth and drained its resources.It caused such a deep setback that damaged its backbone,took and still taking time to overcome and recover from horrible past and prepare itself for rapid economic growth presently and in the coming future.