Economic and social factor analysis Essay Example

( Authors ' work )

Some economic factors that caused USA economic system to worsen

Economic growing rate

Economic growing rate refers to an addition in a state 's one-year end product of goods and services. The rate of economic growing is frequently used as a measuring of alterations in the criterion of life. [ Stanlake ; 2006 ]

Opportunities of economic growing

If the gross domestic production is low the people will acquire encouraged to bring forth goods inside the state.

This production inside state aid to bring forth more so it can be exported and earn a gross for the state.

When there are more merchandises inside the state, they will be able to vie with foreign market.

Menaces of economic growing rate

When there is low GDP of a state means that there is an addition in unemployment rate.

Decline in GDP consequences to diminish the balance of payment history.

Economic growing can make environmental jobs such as addition in noise, air pollution, route conjestions.

Source= ( Author 's work ]

Unemployment rate

Harmonizing to Fernando ( 2010 ) `` Unemployment can be defined as the people do non presently have the occupations, people available to work instantly and people actively seeking for a occupation. ''

Types of unemployment:

Frictional unemployment

The clip period the people spend between occupations can be described as frictional unemployment.

Structural unemployment

This unemployment is caused by when there is alteration in construction of industry and this develops when there is a lasting diminution in the demand of a merchandise.

Cyclic unemployment

When there is a alteration in concern rhythm ( recession ) all the activities of state go down. So concerns besides get affected taking to make unemployment for workers.Source ; ( Author 's work )

Opportunities of

unemployment rate

When the people are cut from their concern they have to pay less rewards so by cut downing the figure of workers they can maintain their net income border invariable.

Workers will acquire unemployment benefits as their neglected from the society.

Menaces of unemployment rate

The people who are unemployed become burdensome to the economic system as they do non lend to the state 's production intents.

Increase in illegal intimacies such as murdering, robbery, etc ;

On the other side businessman lose it 's gross as there is no production in the organisation.

Source= ( Author 's work ]

Exchange rate

Harmonizing to Stanlake ( 2006 ) The rate of exchange is the monetary value of one currency in footings of another. Like other monetary values, the rate of exchange is determined by demand and supply. The rate at which the lb exchanges for other currencies depend upon the demand for and the supply of lbs in the foreign exchange market. ( Stanlake 2006 )

Opportunities of exchange rate

The people can foretell future exchange rates and gain a net income this is known as guess.

If USA 's currency appreciate that means their buying power will increase as they can purchase more merchandises than earlier.

Threats of exchange rate

If the state 's currency depreciate they have pay more to purchase another currency.

When foretelling the exchange rate sometimes the rates increase or decrease quickly so speculators face deficits in hard currency.

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Inflation rate

It is uninterrupted rise in general monetary value degrees of goods and services over a period of clip. Due to rising prices the value of money is falling. It means that when monetary values are increasing the buying

power of money is falling. ( Fernando ; 2010 )

Opportunities of rising prices rate

Inflation may promote houses to spread out. Low and stable rising prices may do man of affairs optimistic about gross revenues.

Inflation reduces the existent load of any debt that family and houses have built up. This means that some families and houses will avoid traveling belly-up.

Menaces of rising prices rate

Inflation causes a autumn in value of money. That means when there is a higher inflaton rate the buying power of money falls quickly.

A autumn in demand for a state 's merchandise may make unemployment.

Inflation will severely impact to equilibrate of payment.

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Interest rate

Harmonizing to Cartwright ( 2001: p106 ) states that `` The refund of loans to both persons and organisation comprises the refund of the capital amount borrowed and an extra sum known as involvement. Interest represents the net incomes made by the loaner and the payment for the typing up of the capital. ''

Opportunities of involvement rate

When there is high involvement rate the people will borrow less money from Bankss so the money in people manus get lessening taking to command rising prices.

Low involvement rate will promote investors to take loans and invest in concerns so this lead addition production inside the state.

Menaces of involvement rate

When there is high involvement rate the people will be given to salvage more instead than adoption, so money in their custodies will diminish so the buying power will diminish taking to a diminution in demand for goods and services.

When involvement rate additions cost of borrowing besides additions and the houses profit will diminish as they have to pay high

involvement so their end product besides lessening.

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Social analysis

Harmonizing to Google ( 2010 ) `` The term societal analysis or social analysis is non ever used in the same sense. In the narrow sense it means an effort to analyse a state of affairs or a societal job objectively, independent of the actor and the intent of the analysis. Therefore, societal analysis is non a ready-for-use tool to work out societal jobs. ''

Social factors that caused USA economic system to worsen

1. Demographics
2. Work spiels
3. Spending wonts
4. Leisure
5. Health
6. Attitude
7. Education

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Work form

The term work form defines how the work revolution has taken topographic point over a period of clip. ( Fernando ; 2010 )

Harmonizing to Cartwright ( 2001 ) it states that `` Government have easy legislated to command the clip without remainder spent at work. First, in the UK and other developed states statute law was enacted curtailing the on the job hours of kids. This was before the passage of statute law doing foremost primary and so secondary instruction compulsory '' .

Opportunities of work form

When the work forms are changed the employees do non acquire bored and they will lodge to the concern.

Early old ages people worked from early forenoon until the flushing so they did n't hold any invention but when work form acquire changed the employees came out with workmanship.

Menaces of work form

This reduces the sum of clip as the work forms are changed so they do non acquire much clip for production intents.

As directors of the concern have their ain work pattern the clients get frustrated as they change from clip to clip

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Education

Harmonizing to Brooks and Weatherston ( 2000, p213 ) it states that `` life long acquisition is besides of import because companies need consumers who need to be re-educated to fuel their desire to devour. Learning can make new markets for info-tainment and cultivate gustatory sensations for new life styles '' .

Beginning ; ( statistics of instruction )

Opportunities of instruction

Those with better instruction can lend to the society by introducing new merchandises to the market and thereby viing with international market.

Well nourished literacy rate will bring forth more end product of extremely skilled labor.

Menaces of instruction

Uneducated work force will ever bring forth goods in low quality, more wastages so this consequence to increase monetary values of goods in the market.

If there is more uneducated work force investors will non be attracted towards the state so this arise to more jobs such as rising prices, less production, etc ;

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Leisure

The release of the organic structure with emphasis, tenseness and strain of work can be defined as leisure. And the relaxation is a right of human labor in western universe. ( Yahoo ; 2010 )

Some leisure activities in USA:

Opportunities of leisure

The employees will come out with new thoughts as their heads are relaxed after their leisure clip.

As there is more leisure the workers will repair to the concern as they do non hold to work all on the job yearss.

Businessman can acquire net incomes because when they produce in relax minds the end product will be more so he can maintain the changeless net income border.

Menaces of leisure

Sometimes leisure activities create wellness issues so this affects to the concern.

More leisure will

ensue less clip to get by with production intents.

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Health

Harmonizing to Brooks and Weatherston ( 2000 ) it states that `` Health concerns have been high on most people 's dockets for a figure of old ages. It is apparent that wellness consciousness, for many, is non a passing tablet, but exciting a alteration in life styles. It is holding an impact in many communities and across major concern sectors '' .

Opportunities of wellness

If the employees have good wellness they are able carry their undertaking swimmingly.

Government do non hold to pass on medical installations when the employees are protected from diseases and other harmful effects.

The man of affairs should take necessary stairss to avoid utilizing coffin nails and intoxicant in their mills.

Menaces of wellness

When seniors use these intoxicants and things it gives a bad consequence to the society.

When people die of these diseases their household has to look after by the man of affairs as he had worked in his mill.

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Spending wonts

This refers to the how people spend their money harmonizing to assorted factors.

They are ;

1. The income gained
2. The cost of life
3. The involvement rate and economy
4. Borrowing form

The people with high income will be given to pass on luxury merchandises while the people with lower income degrees probably to pass on basic demands such as nutrient, lodging, etc ; ( Fernando ; 2010 )

Opportunities of disbursement wonts

The people can devour both indispensable and luxury goods if they have high income.

If the involvement rate is high the high income earners can salvage money so they can acquire an involvement.

If the cost of borrowing is low the business

communities can acquire loans and invest in concern intents.

Menaces of disbursement wonts

The people who get low income will fulfill the basic needs so there can be category favoritism.

Low involvement rate will ensue to take more loans by persons so they can be in a state of affairs of losing money and refunding it back.

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Demography

Harmonizing to Brooks et Al ( 2004 ) it states that `` Demography concerns the survey of population and population alteration and can be seen as another of import factor that will impact the concern environment. Whereas many of the environmental indexs such as societal and engineering tendencies are difficult to calculate, the impact of demographic alterations can be more confidently predicted '' .

Opportunities of human ecology

When the population is increasing there is more labour to transport on the production intents.

High decease rate and normal birth rates in USA consequences to hold more goods and services within the state.

They have a low life anticipation so the pensionaries and other people who are retired will non lend to the dependence ratio.

Menaces of human ecology

The major job in increasing population is that the resources will be scared for the state.

The authorities has to pass more money on medical installations as they have a low life anticipation.

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Decision

So when looking into opportutnities and menaces of USA economic and societal factors we can reason that USA has faced many fortunes in their economic system downswing. They have had low gross domestic merchandises, a alteration in rising prices rate, unemployment rate has increased so these have affected more towards the state. So when I reach this

assignment I noticed that now the USA is acquiring back to their normal place.

Reference list:

• World fact book ( 2010 ) , USA INTRODUCTION, ( online ) , available: hypertext transfer protocol: //www.cia.gov/library/publications/the-world-factbook/geos/us.html, [ accessed 18 March 2010 ]
• Shumara Fernando ( 2010 ) , slide on economic factors [ accessed 18 March 2010 ]
• G.F Stanlake ( 2006 ) page 240, STARTING ECONOMICS 25th edition LONGMAN.
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