Business Economic Essay Example | Topics and Well Written Essays - 4000 words

Business Economic - Essay ExampleAt a general framework, countries measure product by developments of its gross domestic product (GDP) and by the per capita real GDP (Colander, 2001). The secular growth rate movement of economy is 2.5 to 3.5% and the fluctuations experienced within this trend are called the business cycles that are either at its peak, through, upturn or downturn state (p. 154). Unemployment refers to number of unemployed persons divided by the total number of workforce. Unemployment, whether geomorphological or cyclical, is most felt during economic recession and conversely felt when at that place are expansions (p. 154). Global Conditions The Internal Monetary Fund (IMF) pointed that recession caused lazy recovery which morphed countries in an economic quagmire in the 90s to the mid-2000s although hope for growth is placed at European countries. Analysts professed that there is world economic expansion in an annual rate of 51/4% in early part of 2010 however, i ncreasing unemployment remained challenging. There is also an evident financial setback too, which caused markets instability that consequentially discouraged entry of more investments while there is evident decline of stocks in the market (p. 16). This prompted the European Central Banks Securities Markets Program and its European Stabilization Mechanism to initiate fiscal adjustments. IMF further observed that there is reduction of tail risk when Europe redefined their fiscal policies by undergoing adjustments against market demands. It was comprehend that if the basic economic weaknesses persist and economic reform is turtle-paced, growth remains uncertain. Further observations denote that while there is increasing activities to improve tax measures, there is also low investments for real estate and slow residential demands amid increasing prices of houses. IMF professed that the quantitative risk is high as distribution of forecasts for the slope of the yield bow is tilted dow nwards and another upside risks from financial forecasts toward the second quarter of 2011 (p 45). Macroeconomic Trends in UK As this develops, UK forecasted that its exports will aid growth in the nigh term. Financial analysts hope that identified downside risks will not happen that there will be improvement in investment, employment and on consumption. In the perish quarter of 2010, UK has employed labor force at 29.157 million based on a survey (HRM Guide, 2011) which resulted to a growth rate of 2.3% for earnings (HRM Guide, 2011) ascribable to private sector. But UKs unemployment rate as of March 2011 pegged at 8.0% and may increase steadily increase toward 2015. CIPD further report serious youth unemployment problem there is an unemployed 1 person among 8 youths within the age bracket of 16-24 (HRM Guide, 2011). Further, UK officials reportedly spent ?43 billion on debt refer to reduce deficit to stabilize sustained economic growth (HM Treasury, 2010). In a separate devel opment, international trading is severely affected with the natural calamity caused by quakes and tsunami affecting Japan which severely damaged properties and lives as well as caused major threat with the impending meltdown of its nuclear power plants. elsewhere in major areas of the world, e.g.