Economic Analyses - Netherlands

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Netherlands
National Economy: 2008-2012

Compulsory Assignment

April 24 2012
Spur: MM 2nd Sem.
Subject: Descriptive Economics

Table of contents _ Introduction…………………………………….………………………………………………..……………………………………………………2 GDP………………………………………………………………………………………………….…….……………………………………………….3 Unemployment Rate...............................................................................................................................…...6 Inflation Rate……………………………………..…………………………………………………………………………………………………9 Conclusion…………………………………………………………………………………………………………………………………….…….12 Bibliography………………………………………………………………………………………………………………………………..………13
Introduction
_ This report is written for the purpose of the completion of a compulsory assignment that was allotted to the second semester students of the Marketing and Management spur. The theory and data that is described herein is related to the subject of descriptive of economics which is a branch of macroeconomic studies. The specifics of the assignment are, according to my understanding, to find a national economy of our choice; analyze the nation’s recent economic growth rate known as GDP (Gross Domestic Product); analyze the inflation rate; analyze the unemployment rate; present visual data to support the written information; explain in advance what GDP, inflation and unemployment is from the definitive perspective. The national economy that I have chosen to analyze is that of the Netherlands. The reason that I have specifically chosen this economy is twofold. Firstly, the Dutch economy it is one of many economies within the European Union that is having difficulties recovering from the global financial crisis of 2008/9 and the current crisis that is further evolving in the European Union, more specific insight to this developing may prove beneficial in the post-graduation period when exploring possible job opportunities. Secondly, the NGO Spark that is channeling capital into International Business College Mitrovica is located in Amsterdam, Netherlands; therefore it is interesting to know what economic environment the organization is surrounded by.

Dutch Economy

The Netherlands have a long history of trading with other countries in the world and have throughout time become very dependent on trade. The Dutch economy is based on a free market economy system with the government’s main purpose being to set regulations and taxations in the economy. Furthermore, the Netherlands are part of the European Union and have closely bound their economy to the EU by joining the European Monetary Union, that is to say the euro. The Dutch are advocators of free international trade and the reduction and removal of tariffs since it is obvious that they would benefit from more free trade. Past expansions of the Dutch economy were mainly due to an emphasis being put on increasing foreign trade, consumer spending and investment. When compare to other economies the Netherlands rank as the fifth largest economy in Europe with relatively stable industrial relations. When it comes to industrial activities, Netherlands are primarily occupied with food processing. The country is highly technologically advanced when it comes to agricultural development and uses a relatively small labor force to regulate agricultural cultivation. Currently it holds an estimated population of 17 million people. Average unemployment rate in the country is 4.77 percent; average inflation rate is 2.08 percent; average GDP growth rate is 0.61 percent per quarter.

Gross Domestic Product (GDP)
GDP is the sum in market value of all goods and...
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