Economics is one of those fields that have its own importance and significance in a broad nutshell. When it comes to businesses all over the world, then the name of economics is the most vital one. There are numerous things and economic indicators that have been found in the countries on that the entire productivity of an organization is dependant.
Economic indicators like low unemployment rate, high Gross Domestic Product (GDP), Foreign Direct Investment (FDI), and others are important from the viewpoint of a country in particular. Economic growth and development are some of the major things from the standpoint of the country as it is related to the astounding financial position of the company as a whole. The definition proposed by Adam Smith and Alfred Marshal about was not enough because these definitions were never defined the stance of economic growth in the economic crisis (Jackson, p.34). This is the main reason number of criticism has been posted on the same level, as every author has had came with the same analysis in particular. The main theme of this paper is to answer two different questions relate to economics and development. It is required to choose and use a certain book for the same analysis. The name of the book is “The Quest for Prosperity”, written by Justin Lin. It is required to answer both of the problems according to the context of the same analysis in particular. The first question is about economic growth and development.
It is required to answer a specific question regarding the economic growth and development according to the book of Justin Lin. The book is written effectively and in a comprehensive manner, and it has number of points that have been raised accordingly related to economic growth and development. According to the book, the entire concept of economic growth and development have emerged tremendously well and according to the modern thinking, economic growth and development is extremely vital for the economy.
According to the book, economic growth could be found only by seeing and evaluating the total number of employed personnel. If the amount of employed people is on a higher scale, then the economy would have been regarded as a sound country in terms of economically. The book has mentioned the number of examples like Singapore, Korea and others, wherein the amount of middle class is on a higher scale. The recent economic growth and development depends upon this particular factor, and there is a big name as well associated with the same as India and others. Apart from this factor, the thing that brings revolution in the economic consequences of an economy is the amount of Foreign Direct Investment (FDI) in particular (McEachern, p.76). The FDI is the name of direct investment towards a company from external and foreign investors. Most of the times, FDI would have been done by other countries to a specific company.
According to this book, FDI of the economy should be increased accordingly at a higher level as it is related to the economic growth and development of the country, and economically sound countries always try to enhance the level of FDI, as it not only increase the foreign reserves of a country but also increase the level of travel and tourism in a certain country. The book has highlighted a major indicator of economic growth that is the low amount of unemployment rate. According to the main crux of the book, unemployment of the country should be placed on a lower level as it is the most important thing to increase the Gross Domestic Product (GDP) of a country tremendously well. There are the number of examples are there that have been highlighted in the book as well, that are higher in the FDI and lower in the unemployment rate in that the name of Singapore and Korea are two of them. Justin Lin has also identified the strategies that have been taken into account for the same thing. According to the analysis, supplying the jobs according to its demand is a major aspect from the viewpoint of the countries and economies to prevent them from the high amount of unemployment. If these things would have been taken into consideration, then financial competitiveness could have been achieved comprehensively.
This particular answer requires reading Chapter-4 of the same book. It is required to analyze the lesson learned from the countries that have a catch-up growth during the second half of the 20th century. Catch-up growth is a term introduced by Prader, Tanner & von Harnace in order to describe the increased growth velocity that occurs in children after a period of growth retardation when the cause of the growth retardation is removed.
According to the book, there are major four countries who envisaged an astounding growth in the second half of the 20th century, that particularly are Brazil, Russia, India and China (BRIC). All of these four countries were the one that performed excellence even at the time of current economic crisis, as well. The lesson that has been learned from the analysis of these four countries financial and economic situation is that the debt should be placed on the lower level by a country otherwise it will bring negative effects on the economies. These countries had restricted their citizens to not to shop and use the credit cards from a certain limit otherwise problems would have been taken place. How the confidence level of the investors would be increased, has been identified and mentioned in the book under the name of this particular analysis. It is also required that economies should consider effective things in order to become economically active and should prevent them from any economic crisis or downturn, and if these strategies would have been considered then effective results could have been considered.
Economics is a broad term, and it has its influence in almost every walk of life. There are a number of things that have been count under the name of Economics. It is found that economic growth and development are some of the major things that have their own significance and importance, and there are the number of authors who described the same themes accordingly. The main theme of this paper is to answer two different questions relate to economics and development. It is required to choose and use a certain book for the same analysis. The name of the book is “The Quest for Prosperity”, written by Justin Lin. Both of the questions have been answered accordingly and according to the concepts of a given book.
Jackson, Tim. Prosperity Without Growth: Economics for a Finite Planet. New York: Routledge, 2011.
McEachern, William A. Economics: A Contemporary Introduction. Chicago: Cengage Learning, 2011.