Asian countries like as Singapore have achieved tremendous economic growth in the last forty years of development. The key success factors has been macroeconomic stability in these countries.
Many Asian countries such as Singapore, HK, and South Korea have achieved tremendous economic growth in the last forty years of development. One of the key success factors has been macroeconomic stability in these countries.
Multiplier effect --- population
Talk aboit the characteristic of Asian countries-past 40 years –deveoping country –vast raw material
1
Economic growth is defined as an increased in the level of production of goods and services by a country over a certain period of time. Economic growth can be in terms of real economic growth or potential economic growth. I agree with the author that one of the key factors that have allowed many Asian countries to have achieved economic growth has been macroeconomic stability such as low inflation, low unemployment rate and stable exchange rate in the currency market. However these Asian Countries have achieved tremendous economic growth are also due to other supporting key success factors such as globalisation and political stability enjoyed in these countries which I will explain in this essay.
2.Low Inflation
I agree that macroeconomic stability due to low inflation is one key success factor that leads to economic growth in many Asian countries. Inflation is defined as the sustained increased in general price level. When there is low inflation in these Asian countries, it helps to ensure a competitive export industry. This implies that its exports will have a higher price competitiveness over their trading partner hence its export will increased. For example, Singapore, a small and open economy with no natural resources depends mainly on its trade for its economic growth. Hence having a low inflation allows Singapore goods to be relatively cheaper than foreign goods and this cause the net export of Singapore to increase.(…………….).Low inflation protects domestic industry away from foreign goods competition as the price of the domestic goods is cheaper than foreign goods will cause the demand for
Multiplier effect --- population
Talk aboit the characteristic of Asian countries-past 40 years –deveoping country –vast raw material
1
Economic growth is defined as an increased in the level of production of goods and services by a country over a certain period of time. Economic growth can be in terms of real economic growth or potential economic growth. I agree with the author that one of the key factors that have allowed many Asian countries to have achieved economic growth has been macroeconomic stability such as low inflation, low unemployment rate and stable exchange rate in the currency market. However these Asian Countries have achieved tremendous economic growth are also due to other supporting key success factors such as globalisation and political stability enjoyed in these countries which I will explain in this essay.
2.Low Inflation
I agree that macroeconomic stability due to low inflation is one key success factor that leads to economic growth in many Asian countries. Inflation is defined as the sustained increased in general price level. When there is low inflation in these Asian countries, it helps to ensure a competitive export industry. This implies that its exports will have a higher price competitiveness over their trading partner hence its export will increased. For example, Singapore, a small and open economy with no natural resources depends mainly on its trade for its economic growth. Hence having a low inflation allows Singapore goods to be relatively cheaper than foreign goods and this cause the net export of Singapore to increase.(…………….).Low inflation protects domestic industry away from foreign goods competition as the price of the domestic goods is cheaper than foreign goods will cause the demand for