Long-run U.S. Economic Growth Essay Example | Topics and Well Written Essays - 5000 words

Long-run U.S. Economic Growth - Essay Example Real GDP moves around the potential GDP. This is how GDP can be measured from the supply side. Again from demand side perspective GDP is determined by total consumption, investment and government expenditure in a closed economy and by an additional component called net exports in open economy. It has been statistically proven that industrial growth of a nation is closely associated with GDP growth. Also, industrialization forms the platform for structural changes in imports and exports. The economic developments underwent by the United States exemplifies how an underdeveloped economy could grow into an immense and affluent industrial state and show remarkable economic growth despite being intervened by short term downs. In more developed economies labor force seems to be distributed more towards the industrial and services sector and importance of agriculture is lessened (Cypher and Dietz, 272). After gaining independence along with 13 colonies, they came together to collaborate into a nation of 4 million people. During 1790, four fifth of the labor force in US belonged to the farm while the capital goods and technology along with finished products were imported from overseas. At present the major part of the nation belongs to the industries with more than 170 million people who are generating their own capital and technology in a society which is persistently expanding. It might be important to state that if supply of labor was the key to industrial growth, then other countries with high population like China and India could show similar levels of improvement. United States possessed several natural advantages for this growth to be sustained. Some of these were derived from the natural situation of the country. The nation had fertile lands and immense natural resources. The climate supported health and generated energy. There was no problem of overpopulation or pressure on existing resources and on the other hand, this scarcity also promoted growth and develop ment as it necessitated economic growth. The population was advanced in terms of culture, moral and political status. Most of them were literate and understood the law and adept in of self-government. The legacy of Calvinism enforced the resolution to earn and save and also democracy brought about an ability to consume as well as enjoy. All these factors combined made economic growth irresistible. Thus work, democracy, innovation and education made a combined effort towards taking the economy along the path of growth. The labor force was committed to work such their earnings went beyond subsistence and devoted long labor hours. The ex-colonies decided to amalgamate after independence and this led the growth of an internal market which provided stimulus to economic growth. Social mobility was utilized to serve as a tool for growth. The urge to be involved with new materials, technologies, machines all contributed towards different methods for improvement (Harris, 3). Again their devo tion towards expanding the education base promoted learning and improvement of human resources with time. All these factors combined to rebuild the continent from the colonial status and pushed it into the current stage of growth and development. Overview of Economic Growth in the late Eighteenth and Nineteenth century Net National Product of a country normally serves as a convenient measure of the

Higher & Higher Coursework Example | Topics and Well Written Essays - 1250 words

Higher & Higher - Coursework Example Why? 5 4. Do you think of Zhang’s goals for his company? What must the company do to exploit its resources and capabilities in order to reach these goals? 6 Reference 8 1. What resources and capabilities does the Haier Group appear to have? Are any of these capabilities distinctive? Explain. What will it take to make its capabilities distinctive? One of the most prominent capabilities developed by the company is its diverse variety of products in the home appliance market inclusive of consumer electronic products, air conditioners, computers, mobile phones, washing machines, microwave ovens, televisions, refrigerators etc. This wide diversity of products allows the company to capture a considerably large portion of the market including households and large corporate also (Hunt, p.2-5). Sound technology used by the company clearly distinguishes it from its competitors. In many nations, such as India the company was able to acquire large proportions of the market using technolog ical and innovative changes in its products and product lines in order to cater to the changing needs and requirements of customers (Hunt, p.2-5). Strong innovation initiatives are one aspect which distinguishes the company for its competitors. The company has always strived to add value to its products and product lines with the purpose of serving the niche markets in a better way compared to its competitors. This is particularly helped the company in attaining the faith and loyalty of customers as one of the most trusted brand names and superior deliverer of quality products in the global market (Hunt, p.2-5). One of the most distinctive capabilities of the company has been cater to individual needs of the nations where it had operated. Its strategies have been different for different countries, like India, China etc. For example, although its e-business strategies were not really welcome in China because of its lack of technical knowhow and infrastructure and consumers remain rel uctant to use the internet as a common medium for doing business, the company has been successful in penetrating into the Chinese market by successfully implementing an e-business strategy that was particularly customised for the Chinese market (Roger, p.651). 2. What strengths and weaknesses does the Haier Group appear to have? How could it prevent its strengths from becoming weaknesses? Strengths One of the main strengths of the company is its wide range of innovative products which has successfully made its entry into the global economy. For example, one of its most prominent and innovative products was the frog shaped television console which could be doubled like a night light and which would automatically ask questions on maths problems to the kids before they switched it off. Some of the other innovative products included compact refrigerators, office refrigerators and wine coolers. The company has also successfully shown radical improvement in its product qualities driven by the initiative of its CEO Ruimin. Clear vision, strict discipline coupled with requisite efforts from the part of the CEO has acted as an active strength for the company in expanding its size across the international market and beat some of the major competitor players in the market like Whirlpool, General Electric, Electrolux and LG Electronics (Alon, p.62). Weaknesses The Chinese brands have inherently carried the name of low end and low quality of products. This image has spread worldwide which consistently acts as a