Economics and globalization
The economy is an issue that deals with human behavior in the context of several social events. The consumption of goods and the production of goods in the market show how people behave in terms of supply and demand for goods and how it affects the market. Supply and demand is perhaps one of the most fundamental concepts of the economy and is the backbone of the market economy. In general, it results in a market balance, in which the products demanded at a price are equal to the products supplied at that price.
The demand depends on the price of the product and refers to the amount of a product or service that buyers want. The quantity demanded is the amount of a product that people are willing to buy at a certain price;The relationship between the price and the quantity demanded is known as the demand ratio.
The offer depends not only on the price that can be obtained for the basic product, but also on the prices of similar products and represents how much the market can offer. The amount offered refers to the amount of a certain good that producers are willing to supply when they receive a certain price. The correlation between the price and the amount of a good or service that is supplied to the market is known as the offer ratio.
The relationship between demand and supply underlies forces that drive the allocation of resources. In market economy theories, supply and demand theory will assign resources in the most efficient way possible.
By investigating the concepts of economy, we understand that shortage plays an important role in the support of other concepts, such as supply and demand. The production of goods is carried out according to consumer demands. Production sources are limited, but human desires are unlimited. When people demand a specific product, producers produce the maximum amount for sale. When the amount increases, prices fall and producers turn to another product of the same raw material to earn money. This is the market trend.
Through globalization, countries, companies and individuals are more interconnected and interdependent, thanks to the increase in trade in goods and services, cross -border investment and labor migration from one nation to another.
It is not inevitable that globalization will increase income and wealth inequality. Important changes in workforce and income have been observed among the different groups, but, in my opinion, they are not only consequences of globalization. A paradox of globalization is that it probably reduced inequality between countries, but increased within nations. What matters is how governments respond to the challenge of improving access to knowledge and skills and ensuring that the benefits of cross -border investment provide sufficient fiscal income to pay affordable and high quality public services.
Leave feedback