Sunflower Incorporated.International Business Assignment

Sunflower Incorporated.International Business - Assignment ExampleEconomic growth refers to an increase in the size of a countrys national income. It can also be defined as an increase in the amount of goods and services produced by the economy of a country everyplace a given duration. To measure sparing growth is to quantify the increase in the welfargon of a country and derive with numerical accuracy of this declamatory scale economical and social change. The formula for the calculation of economic growth is outlined below asEconomic Growth= Change in income/ Income of the anterior Period 100 Economic growth is crucial to the national economy well-being of any country and therefore, requires the government to take the necessary actions to help its citizens to resurrect that growth. Many factors that promote strong economic growth are connected to the business framework cycle and efforts directed towards improving the living standards for the consumers. Factors that stimulate economic growth are namely, healthy competition within the market place, innovations in technology, increases in labor supply, and expansion in value and extent of the resources available such(prenominal) as land. Other factors include science progression and productive knowledge, growth of individual skills and government incentives, the cultivation of new markets in emerging nations, and finally the enthronisation in foreign ventures all are stimulants of a strong economic growth. Central bank is a bank that is owned and operated by the government. It is also a government bank and a bankers bank. The central bank stimulates strong economic growth by conducting monetary policy that controls the money supply in the economy and hence generates more production and gamey living standards. The central bank also maintains the stability of exchange rates, ensures equitable distribution of income, stable prices of commodities and high levels of employment as ways of influencing the econo mic expansion. The government banker also sets the official rates of interest that are utilized to manage inflation so that economic growth can be positive and quantifiable. A foxiness deficit arises when a country buys or imports more than it sells or exports to other countries. A alternate deficit is not necessarily undesirable. It bestows benefits and carries some costs and the benefits whitethorn outweigh the costs. Trade deficits are a vehicle for extending the gains from trade, where lending and borrowing among nations can protract to a more saving allocation efficiency, and preferred consumption pattern overtime (Sloman, John & Mark 24). Trade deficits do not necessarily spring slower economic growth or lead to any economy-wide job losses. However, a persistent trade deficit is harmful to the national economy since it may decrease aggregate demand and also reduce the actual Gross Domestic product by diverting manpower and finances from competing ventures like imports and exports where these resources are required most due to their productivity. Another consequence is the high levels of foreign investment into the deficit country. This has the effect of hurting investment local anestheticly as local investors prefer to keep assets than invest them due to their favorable nature. A persistent high trade deficit in a country can occasion economic hardship in the long run in case of changes in political leadership or the beginning of a war. Persistent trade deficits tend to make countries more exposed to global variations in costs and products. This vulnerability though short-lived can produce risks that are highly unexpected for investors. International financial and monetary activities are becoming more integrated since they bring the countries involved more extensive international