The trend of economic is growing every year which is benefit not only for individual country but also for the whole world. The policy has less restricted on international trade after the Wall Street Crash in 1929; therefore, it assists every country to trade and it introduces new trade organisations. The growth of economic is also affects by the development of technology which can discover new resources. For the demand side, consumers used to consider the function of products but now it is focus on consumers taste and choice. There are some main determinants for growth of economic in reality. Meanwhile, the figures for the main determinants act in the UK and then compare with developing country in China. And I will examine the subjective opinions and my perspective with benefits and risks for economic growth. Main issues and effects for economic growth
The main determinants of economic growth are: internal impact of change in productivity and inputs and external effect of alter in international trade, unemployment rate and real gross domestic product (real GDP). The internal aspect of the change in productivity can show how every nation utilize the factors of production not to ahead the diminishing returns. Meantime, inputs are influence the growth of economic which are include land, labour, capital, raw material and technology. Economic growth is decide by the way of improving the quality of fixed land, increasing the amount of skilled or cheap labour, utilizing the capital, consuming depletable or renewable resources and introducing new invention for the technology of research and development. Balance of trade is one of the external sides measuring the growth of economic which shows the amount of trade annually. Robert J. Barro notes that “Changes in the terms of trade have often been stressed as important influences on developing countries, which typically specialize their exports in a few primary products”.(1997, P.28) As this above, international trade is to analyses the economic growth in particular country by providing different inputs between nations. The figure of international trade will help every country to control their growth in economic from terms of trade. Another prospect in the external side is unemployment rate. Unemployment rate can show the economic is growth or not as a result of falls in unemployment rate will increase in demand and hence higher inflation. To add up inner and outer sides of main determinants of economic growth is shows the real gross domestic product which is display in the short-term and the long-term. In the short-term of real gross domestic product is shows as business cycle and it is gradually increase in every short-term. Potential growth in the short and long term of real GDP is increase in every year. In the meantime, actual growth in both the short and long term is tends to be more fluctuated but it is also growing all the time. In short, the internal and external sides of determinant economic growth are sum up the chief deciding how it growth in overall economic. Real GDP is one determinant for economic which helps us to measure how the economy works in reality. Economic growth acts in the UK & compare with developing country in China Alter in internal impact of inputs and efficiency is reflects to three external effect on unemployment rate, balance of trade and real gross domestic product in the UK. To compare with developing country in China will help everyone to understand how the UK current situation acts in reality. (Source: International Monetary Fund & Trading Economics) First of all, labour is one of the inputs which can influence the rate of unemployment by manufacturing goods and services more efficiently. The figure 1 is the joblessness rate from 1997 to 2009. From 1997, the unemployment rate has gradually reduced because the UK joined the World Trade Organisation on 1 of January in 19951. It cut down the restriction on exports and the UK starts...
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