Business has always been viewed as an industry to be reckoned with, a venture for the ambitious entrepreneur and a source of constant struggle for those at the feet of the working class. As times have changed, business has become more sophisticated. It is no longer simply about providing goods and services to people. Business today also includes aspects such as financial management, technology and information systems.
Business economics is a discipline in applied economics that makes use of statistical techniques and mathematical analysis to study the inter-relationships among companies and the factors that affect their production, prices and employment. The journal of the Economic Record is one of the prominent economics journals. In the March issue of the journal, “Market economy: The state of the national economy and its implications for economic planning, policy, and social activity,” the authorials include: “The Endogenous Recession,” by Edward C. Grammer and Lawrence H. Summers; “Inflation and Employment,” by David S. Norton and William D. Diets; “Broadband, broadband speed and business prosperity,” by Joseph W. B.ergheim and Joseph A. Loe; and “What Are the Benefits of Outsourcing?,” by Gregory M. Korte. These are just a few of the more recent articles that focus on the impact of globalization on the economy. It provides jobs for thousands of workers in the United States and other first world countries.
Many economists argue that in a market economy, competition usually drives productivity and costs down. Therefore, it provides jobs for all. But this view is disputed by some, because they believe that technology has an even larger effect on the economy than competition. The rising costs of communications, computers, entertainment and other electronic products has increased the demand for highly educated workers in specific fields, such as engineering or computer science. Moreover, advanced technology requires large numbers of highly skilled workers because these workers must be specially trained for jobs that do not merely substitute for manual labor.
Because globalization has affected every country around the world, it is important for everyone to adjust their thinking towards the changes that have taken place. Many businesses, for example, have been forced to re-evaluate their strategies in order to survive in the changed economic environment. People need to understand that the primary source of growth is business, not government. Furthermore, people need to understand that markets for goods and services will not expand dramatically unless people need those goods and services.
A growing economy requires that people have access to basic infrastructure: water, electricity, transportation, health care, and schools. Without these things, life will not exist. As the needs of humans continue to increase, so will the size of the populations in developing economies. In fact, most developing economies are experiencing what economists call “income poverty.” This means that most people are not living in relative affluence.
The developed economies of the world have always given more value to the products that they produce than any other country has ever done. However, in recent years, this has changed. In developed countries, businesses have not always invested the profits that they receive from selling their products back into their societies.
People all over the world have become aware of the incredible power of markets, capital, and technology. In fact, many people are actually asking, “What is an economy?” Because it provides the resources that people need in order to live, work, and create products and goods, an efficient economy is the engine of development. And, because it is so easy to measure and observe, many people are starting to see how important it is to develop an open-door policy when it comes to international trade. Developing countries are starting to look at themselves as competitors rather than as subordinates of the U.S., European Union, and other Western-dominant countries.
Developed countries are now looking for opportunities outside the North American Free Trade Agreement (NAFTA). In fact, these newly developed economies are starting to use their newfound wealth to develop products and services that they can export and sell to the rest of the world at a higher price. So, although China does not currently have the surplus wealth of the European Union or Japan, it is starting to play a very important role in the global economy and is playing an increasingly important role as a manufacturer and exporter of goods and services for other nations.