Essay About Important Economic Facts And International Economics

International Economics and Business History – Term Paper – rosma96
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International Economics and Business History
0. INTRODUCTIONEconomic History• Provides a background of the most important economic facts and processes.• It is useful to relate abstract economic theory with present and past economic facts.• Present decisions are conditioned by the past (path dependency).• Different economic schools:– Divergent explanations of historical facts.– Changing ideological and theoretical background for economic policies.Business History• Variables like space, time, culture, and technology have an impact on companies’ shapes.• The historical context influence firms and entrepreneurial actions, providing opportunities and putting constraints on entrepreneurs and enterprises’.• Firms’ strategies have change along history.Economic growth vs. economic development• What is economic growth?– It is the process of constant and self-sustainingincrease of income per capita.– It is a multidimensional process (Todaro, 1985):• Reorganization of economic and social systems, not limited to the increase of income and production.• Essential transformation of institutional, social and administrative institutions.• Modification in people attitudes, even habits and beliefs.• Its diffusion may involve a transformation of the international economic and social system.Economic growth vs. economic development• When did it take place?– United Kingdom, end of 18th century.– It spread during 19th and 20th centuries.• It is a regional phenomenon:– Limited to Western World and Japan until 1950. – Diffusion, mainly to Asia, after 1950.• How do we measure it? GDP and GDP per capita– Problems: GDP fetishism (Stiglitz).• What is economic development?“development can be understood (…) as a process of expansion of capacities and real freedom that individuals can enjoy.” (Amartya Sen)What “freedom” or “capacities”? Political freedom.Economic freedom.Social opportunities (education, health)• How do we measure development? Human Development Index (HDI). Elements:– Income per capita.– Life expectancy, mortality, infant mortality.– Literacy rate and schooling rate.• From 1993 it includes political and civil rights (Quality of life index ).

• It is correlated to income but this correlation is not perfect.World economic growth World GDP per capita (1990 US dollars)[pic 1]• 1500-1820: Annual growth rate: 0,05%.• 1820-2000: Each generation has enjoyed a 1/3 higher income (in average) than the previous generation.Has all the world grown the same?[pic 2][pic 3]EUROPEAN PREINDUSTRIAL ECONOMIESOrganic economies• In an agrarian economy agriculture generates the majority of the added value and the main part of income is spent in agricultural products.• Agrarian economies are organic economies.• In an organic economy, production of any good is based in organic raw materials, energetic sources and transport systems, this is, obtained directly or indirectly from the conversion of solar radiation in bio-mass through photosynthesis.Limits to growth• Production of different goods competed for fertile land.• Limits to growth: the amount and quality of the available soil.• Diminishing returns: in an organic economy, an increase in production entailed diminishing returns: production increased less than proportionally than the increase in factors of production.• Classical economists: In the long term, the existence of diminishing returns leads to a stationary stage.• “In a country which had acquired that full complement of riches which the nature of its soil and climate, and its situation with respect to other countries allowed it to acquire; which could, therefore, advance no further, and which was not going backwards, both the wages of labour and the profits of stock would probably be very low.” Adam Smith, The Wealth of Nations, 1776• “But when poor lands are taken into cultivation, or when more capital and labour are expended on the old land, with a less return of produce, the effect must be permanent. […] Each man may, and probably will, have a less absolute quantity; but as more labourers are employed in proportion to the whole produce retained by the farmer, the value of a greater proportion of the whole produce will be absorbed by wages, and consequently the value of a smaller proportion will be devoted to profits. This will necessarily be rendered permanent by the laws of nature, which have limited the productive powers of the land.” David Ricardo, Principles of Political Economy and Taxation, 1817

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(2015, 10). International Economics and Business History. EssaysForStudent.com. Retrieved 10, 2015, from
“International Economics and Business History” EssaysForStudent.com. 10 2015. 2015. 10 2015 < "International Economics and Business History." EssaysForStudent.com. EssaysForStudent.com, 10 2015. Web. 10 2015. < "International Economics and Business History." EssaysForStudent.com. 10, 2015. Accessed 10, 2015. Essay Preview By: rosma96 Submitted: October 30, 2015 Essay Length: 2,907 Words / 12 Pages Paper type: Term Paper Views: 501 Report this essay Tweet Related Essays Business History Эn the United States at the End of the Twentieth Century Business History Эn The United States At The End Of The Twentieth Century The History of Business history Business history in the united states at 1,123 Words  |  5 Pages International Economic - Malaysia Trading Partner INTERNATIONAL ECONOMICS MALAYSIAN TRADING PARTNERS TABLE OF CONTENT 1.0 INTRODUCTION 1 2.0 MALAYSIA MAJOR TRADING 2 2.1 MALAYSIA TOP 5 MAJOR TRADE 2 2.2 4,371 Words  |  18 Pages Beo 3368 International Economics and Finance BEO3368 INTERNATIONAL ECONOMICS AND FINANCE SEMESTER 2, 2008 ASSIGNMENT 1- I.D 3723708 PART A Using appropriate diagrams illustrate how the (static) efficiency gains from the 1,001 Words  |  5 Pages Understanding the International Economic Order, 2017 Understanding the international economic order, 2017 Corvinus University of Budapest Gábor Kutasi, [email protected], associate professor Aims of the class The class examines the relationship between 1,508 Words  |  7 Pages Similar Topics International Business Economics Business Get Access to 89,000+ Essays and Term Papers Join 209,000+ Other Students High Quality Essays and Documents Sign up © 2008–2020 EssaysForStudent.comFree Essays, Book Reports, Term Papers and Research Papers Essays Sign up Sign in Contact us Site Map Privacy Policy Terms of Service Facebook Twitter