Question

Critically evaluate the importance of understanding the economic transformation system? give an example of the company input, output, feedback, the mechanism and the business role.

Answer 1

Economic transformation is a complete overhaul structure of a country's economic system.and which essential for both the poverty and wealth of the nation. This movement of resources from lower productivity to higher productivity activities is a key driver of economic development. Within the sector, growth entails the adoption of new technology and management practices that increases the efficiency of the organization.

Company input-output- is related to capital, land, machinery. Economic well being is created production process, meaning all economic activities that aim directly or indirectly to satisfy needs and wants. The degree to which the needs satisfied is often accepted as a measure of economic well-being and development. They are improving the quality-price ratio of goods and services and increasing incomes from growing and more efficient market production or total production which help in GDP. The most important forms of production are-

1)Market production.

2)Public production.

3)Household production.

Economic transformation means a process of upward change whereby the real per capita income of a country increases over a period of time. Business serves as a catalyst in the process of industrialization and economic growth.It is the businesses who puts and use capital,labor,and technology in the econmy.

Businesses initiate and sustain the economy development-

1)Capital formation.

2)Improvement of per capita income

3)Generation of employment.

4)Economic independance.