Question

Name at least three trends or factors that have shaped economic development practices?

Answer 1

Economic development is important to be successful in business. Basically, it includes modifying standard of living, migrating to new technologies, changing the economy from traditional level into industry level and thus paves the way for successful and convenient leading of business or an industry. Thus, leads to the prosperity and development of a nation.

Economic development practices are shaped properly with the help of some factors or trends that the economy requires. There are so many. Following are some of them:

• Capital Formation
• Natural resources
• Technological resources

Capital Formation

Accumulating capital in business is one of the most important factor for the development of the economy. Accumulation can be made possible not only by generating capital, but such capital should be saved in an appropriate manner. Such accumulated capital can only be available for investment in business requirements. Labor hires and wages can be paid utilizing this capital. In such a way, avoiding foreign capital can be made possible. Lots of job vacancies will be created with the rise in accumulated capital. Thus, it can be said that capital formation is one of the very important economic development factor.

Natural Resources

It includes availability of land, trees, types of soil, freshwater rivers, availability of minerals etc. which are available naturally. In the absence of these natural resources, other countries should be depended. If there are sufficient natural resources, they can be exported, thus making more job opportunities and more revenue can be generated. Interest to these natural resources in the international level is the criterion for determining the value. Thus, natural resources should be well-preserved and can be utilized for the purpose of economic development.

Technological resources

This sounds somewhat new. Utilization of highly advanced technologies are the weapons here. Resources which are not natural, but technically advanced in order to increase the possibilities of business and thus, providing better quality life. Devices such as laptops, mobile phones etc. are examples. In this busy and rushing world, it is inevitable to have these technologically advanced resources to be a part of the business for the development of economy.