Money obviously plays a vital role in the economic development of a country.
It is said that money makes the world go round and this is certainly true when studying economic development.
You simply cannot progress or get a lot done without money becoming an issue and put simply, the more money you have available the faster the development.
Countries are mainly judged on the state of their economy and are even put into classifications such as:
• Economic superpower
• Developing country
• Third-world country
The main economic superpowers are USA and now China. They are said to have the most control of the world economy and if these two countries were to withdraw all their trade and handouts then the global economy would be in serious jeopardy.
The Gross Domestic Product or GDP is also judged as a country's economic health and a good GDP can mean that a lot of countries will want to trade with them and go into business deals together. However a low GDP can be an indicator of poor infrastructure, corruption and few business opportunities, which will put a lot of potential traders off.
The government and national banks are usually the people holding the purse strings of a country's economy and therefore their decisions on how it is spent can dramatically affect businesses and the population as a whole. A country may have plenty of money but if it is not spent wisely and invested appropriately then they will not see any economic development.
Like with any business, the books need to be balanced or a profit needs to be made in order to develop and move forward and this is not always easy to achieve with a country's economy. A whole magnitude of factors can contribute to more money going out than coming back in and so policies and strategies need to be put in place in order for a economic development to be achieved.
It is said that money makes the world go round and this is certainly true when studying economic development.
You simply cannot progress or get a lot done without money becoming an issue and put simply, the more money you have available the faster the development.
Countries are mainly judged on the state of their economy and are even put into classifications such as:
• Economic superpower
• Developing country
• Third-world country
The main economic superpowers are USA and now China. They are said to have the most control of the world economy and if these two countries were to withdraw all their trade and handouts then the global economy would be in serious jeopardy.
The Gross Domestic Product or GDP is also judged as a country's economic health and a good GDP can mean that a lot of countries will want to trade with them and go into business deals together. However a low GDP can be an indicator of poor infrastructure, corruption and few business opportunities, which will put a lot of potential traders off.
The government and national banks are usually the people holding the purse strings of a country's economy and therefore their decisions on how it is spent can dramatically affect businesses and the population as a whole. A country may have plenty of money but if it is not spent wisely and invested appropriately then they will not see any economic development.
Like with any business, the books need to be balanced or a profit needs to be made in order to develop and move forward and this is not always easy to achieve with a country's economy. A whole magnitude of factors can contribute to more money going out than coming back in and so policies and strategies need to be put in place in order for a economic development to be achieved.
