Tag: Economy

  • Advantages and Disadvantages of Command Economy

    Advantages and Disadvantages of Command Economy

    Learn about the advantages and disadvantages of a command economy – its impact on resource allocation and prices, how it impacts production decisions, and much more!

    A Comprehensive Guide to the Advantages and Disadvantages of a Command Economy

    Command economy refers to an economic system where the government or a central authority has control over the allocation of resources, production, and distribution of goods and services.

    Advantages and Disadvantages of Command Economy Image
    Photo from ilearnlot.com

    Meaning and Definition of Command Economy

    A command economy is an economic system in which a central authority, usually the government, has significant control over the allocation of resources, production decisions, and distribution of goods and services within a country. In a command economy, the government possesses the power to make key economic decisions and direct the overall functioning of the economy.

    In a command economy, the central authority typically sets production targets, determines resource allocation, and regulates prices. The government may own and control major industries, natural resources, and means of production. Additionally, it often implements comprehensive economic plans that outline specific goals and strategies for achieving them.

    The primary objective of a command economy is to achieve collective goals and prioritize social welfare over individual economic freedoms. The government exercises authority in economic matters to promote equity, social stability, and public interest. Through its control and influence, the government aims to shape the economy according to its vision and policy objectives.

    However, it’s important to recognize that the implementation and extent of command economies can vary significantly. Some countries may have a more centrally planned economic system, where the government has extensive control over all economic activities. While others may adopt elements of a mixed economy, combining command economy principles with market-oriented mechanisms.

    Overall, the key characteristic of a command economy is the dominant role of the central authority in making economic decisions. This sets it apart from market-based systems where decisions stand primarily determined by supply and demand dynamics and individual choices.

    Characteristics of a command economy

    Here are some key characteristics of a command economy:

    • Centralized Planning: A command economy relies on centralized planning, where the government determines the production levels, resource allocation, and distribution of goods and services. This planning is typically done through economic plans and targets set by the government.
    • State Ownership: In a command economy, the government usually owns and controls major industries, infrastructure, and strategic sectors of the economy. State ownership allows the government to direct economic activity according to its priorities and goals.
    • Price Controls: The government sets and controls prices of goods and services in a command economy. Price controls are used to ensure affordability, prevent inflation, and promote equitable distribution of resources. This includes setting price caps, price subsidies, and controlling the pricing of essential goods.
    • Allocation of Resources: In a command economy, the government determines how resources such as labor, capital, and raw materials are allocated. Resource allocation is based on the government’s priorities and objectives, rather than on market forces such as supply and demand.
    • Limited Role of Market Forces: Market forces, such as competition and consumer demand, play a limited role in a command economy. The government makes decisions based on social and economic goals, rather than relying on market mechanisms to determine production levels and resource allocation.

    Additionally features

    • Social Welfare Programs: Command economies often prioritize social welfare programs to ensure access to essential services such as healthcare, education, and housing. These programs are funded and managed by the government to provide support for the less privileged members of society.
    • Income Redistribution: A command economy typically aims to achieve a more equitable distribution of income and wealth. The government implements policies such as progressive taxation, income redistribution programs, and social benefits to reduce income inequality and ensure a more equitable distribution of resources.
    • Long-Term Planning: The government in a command economy engages in long-term planning to set goals and objectives for economic development. This includes investments in infrastructure, research and development, and strategic industries that contribute to the long-term growth and progress of the nation.

    It’s important to note that the features and implementation of a command economy can vary depending on the specific context and policies adopted by each country. What are the advantages and disadvantages of command economy?

    Advantages of Command Economy:

    Here are some key advantages of a command economy:

    Centralized direction and planning: 

    One of the main advantages of a command economy is that the government has significant control and direction over resource allocation, production, and distribution. This centralization enables efficient planning and coordination of economic activities. By having a central authority making decisions regarding what goods and services should be produced. How resources should be allocated, a command economy can prioritize national goals and objectives.

    Social welfare and income distribution: 

    Another advantage of a command economy is the potential for prioritizing social welfare. By actively participating in economic activities, the government can ensure the provision of essential services such as healthcare, education, and housing. This can help reduce inequality by ensuring that basic needs are met and by redistributing wealth and resources. Leading to a more equitable distribution of income and opportunities within society.

    Equitable distribution of wealth and resources: 

    In a command economy, the government can actively intervene in the economy to prevent the excessive accumulation of wealth by a few individuals or corporations. By controlling prices, wages, and profits, a command economy can strive for a more equitable distribution of wealth and resources. This is often achieved through progressive taxation, income redistribution programs, and the provision of social benefits to the less privileged.

    Strategic resource allocation: 

    In times of crisis or national emergencies, a command economy can demonstrate an advantage by quickly mobilizing resources and directing them toward specific sectors or industries. By having centralized decision-making power, the government can ensure a more coordinated response to challenges such as natural disasters or economic recessions. This allows for a more effective allocation of resources to address critical needs and prioritize the nation’s interests.

    Long-term planning and investment: 

    With centralized decision-making, a command economy can engage in long-term planning. By setting national goals and objectives, the government can invest in crucial infrastructure projects, research and development, and other initiatives. That may not yield immediate returns but contribute to the long-term development and progress of the nation. This can help foster sustainable growth and create a foundation for economic prosperity in the future.

    Disadvantages of Command Economy:

    Here are some key disadvantages of a command economy:

    Limited individual freedom and choice: 

    One of the significant disadvantages of a command economy is the limitation it places on individual freedoms and choices. With the government exercising significant control over economic activities, individuals may have restricted autonomy when it comes to making economic decisions. This can stifle entrepreneurial spirit, personal initiative, and creativity. As individuals have less flexibility to pursue their economic interests and ventures.

    Lack of market efficiency and innovation: 

    Centralized planning often struggles to match the efficiency and innovation that market forces bring about in resource allocation. In a command economy, the absence of market competition and price signals can result in inefficiencies and suboptimal outcomes. Without the spur of competition, businesses may lack the motivation to improve productivity, quality, or innovation. As their success does not solely determined by consumer demand and market forces.

    Limited consumer satisfaction and choice: 

    In a command economy, production decisions does typically not solely driven by consumer demand. As a result, there may be a disconnect between the goods and services produced and the preferences and needs of the population. This can lead to limited choices for consumers. As the availability of specific products and services may not adequately reflect consumer demand. Additionally, a command economy can also experience shortages or surpluses of goods and services due to the lack of market-based mechanisms for adjusting production levels.

    Bureaucratic inefficiencies and corruption: 

    Command economies often require a large and complex bureaucracy to implement economic policies and regulations. This bureaucracy can be prone to inefficiencies, corruption, and slow decision-making processes. The lack of market feedback and competition means that there is less pressure for efficiency and innovation within the bureaucracy. This can hinder effective economic management. Decisions are often subject to bureaucratic red tape, leading to delays, inefficiencies, and the potential for corruption.

    Potential for misallocation of resources: 

    Without the market mechanism of price signals and supply-demand dynamics. There is a risk of misallocation of resources in a command economy. Centralized planning may not accurately assess the true value or importance of goods, services, and investment opportunities. This can lead to the misallocation of resources as decisions are made based on factors. Other than the actual market demand and supply conditions. Over time, this can result in inefficiencies, wasted resources, and an economy that does not fully optimize its productive capacity.

    It is important to note that these advantages and disadvantages are generalizations, and the actual performance and outcomes of a command economy can vary based on specific contexts, policies, and the implementation method chosen. Government intervention and control can be both a strength and a weakness depending on how effectively it manages and aligns with the needs and aspirations of the society it serves.

    Bottom line

    A command economy is an economic system where the government has control over resource allocation, production, and distribution. It involves centralized planning, state ownership, price controls, and the limited role of market forces. Command economies prioritize social welfare, income redistribution, and long-term planning. Explain the advantages and disadvantages of command economy.

    The advantages of a command economy include centralized direction, social welfare, equitable distribution of wealth, strategic resource allocation, and long-term planning. Disadvantages include limited individual freedom, lack of market efficiency and innovation, limited consumer satisfaction and choice, bureaucratic inefficiencies and corruption, and potential misallocation of resources. The performance and outcomes of a command economy can vary depending on specific contexts and policies.

  • Advantages and Disadvantages of Traditional Economy

    Advantages and Disadvantages of Traditional Economy

    Explore the advantages and disadvantages of traditional economy: from subsistence-level production to sustainable resource management. Learn the key differences between cultural customs and modern economies with this blog post.

    Advantages and Disadvantages of Traditional Economy: A Comprehensive Guide

    A traditional economy is an economic system that relies on customs, traditions, and cultural beliefs to determine the production, consumption, and distribution of goods and services. In a traditional economy, economic decisions guide by long-standing customs and practices that have stood passed down from generation to generation. This type of economy often found in rural and indigenous communities. Where the way of life deeply rooted in traditional practices and where self-sufficiency and sustainability are prioritized.

    In a traditional economy, people often engage in subsistence agriculture and hunting, rely on barter for trade, and have limited access to modern technology. While traditional economies may face challenges in the face of globalization and modernization. Also, They have advantages in promoting social cohesion, preserving cultural heritage, and sustainable resource management.

    Advantages and Disadvantages of Traditional Economy Image
    Photo from ilearnlot.com

    Introduction to Traditional Economy

    A traditional economy is an economic system that relies on customs, traditions, and cultural beliefs to determine the production, consumption, and distribution of goods and services. This type of economy primarily found in rural and indigenous communities. Where the way of life deeply rooted in traditional practices and customs. Also, Traditional economies have existed for centuries, enabling communities to sustain themselves and preserve their cultural heritage. Study of Advantages and Disadvantages of Traditional Economy below are;

    Characteristics of Traditional Economy

    1. Barter System: In a traditional economy, the barter system is often used for trade. Goods and services are exchanged directly, without the use of currency. Also, This mutual exchange allows for the satisfaction of diverse needs within the community.
    2. Subsistence Agriculture and Hunting: Agriculture and hunting are the primary means of sustenance in traditional economies. People grow crops and raise livestock for their consumption rather than for commercial purposes. Also, This self-sufficiency helps communities meet their basic needs without excessive reliance on external markets.
    3. Close-knit Community: Traditional economies are typically characterized by close-knit communities where cooperation and communal sharing are highly valued. Each member of the community contributes to the well-being of the whole, fostering a sense of social cohesion and collective responsibility.
    4. Limited Technological Advancements: Traditional economies often have limited access to modern technology and rely on traditional tools and techniques for production. While this may limit productivity compared to technologically advanced economies, it also ensures the preservation of traditional skills and practices.
    5. Custom and Tradition: Economic decisions in traditional economies stand guided by customs, traditions, and societal norms, which pass down from generation to generation. These customs help maintain social order and provide a sense of continuity and identity within the community.
    6. Limited Division of Labor: There is a limited division of labor in traditional economies. With most individuals performing a wide range of tasks necessary for survival. This fosters a sense of self-sufficiency and interdependence among community members.
    7. Sustainability and Resource Management: Traditional economies emphasize sustainable practices and resource management to ensure the long-term well-being of the community. They often have intricate knowledge of local ecosystems and implement strategies for preserving natural resources and maintaining environmental balance.

    Advantages of Traditional Economy

    1. Social Cohesion and Community Identity: Traditional economies emphasize strong social ties and community cooperation. The reliance on communal resources and interdependence fosters a sense of unity and collective responsibility. Traditional economic activities often involve shared labor, mutual support, and reciprocal relationships. Leading to a tightly-knit community where cultural traditions and values are preserved.
    2. Sustainable Resource Management: Traditional economies have historically developed sustainable practices for managing natural resources. They often have a deep understanding of local ecosystems and employ techniques that prioritize long-term resource preservation. Also, This focus on sustainability helps prevent overexploitation and ensures the continued availability of resources for future generations.
    3. Reduced Dependence on Cash Economy: Traditional economies often rely less on cash-based transactions and instead favor bartering or non-monetary exchanges. This can be advantageous in regions where cash is scarce or inaccessible. Bartering allows communities to meet their needs by exchanging goods and services directly. Enabling resource distribution without the need for extensive monetary transactions.
    4. Preserving Cultural Heritage: Traditional economies are intimately tied to cultural values, rituals, and practices. These economies often provide a platform for the preservation and transmission of cultural heritage from one generation to the next. By engaging in traditional economic activities, communities can maintain their unique identity, protect traditional knowledge systems, and pass on essential skills and crafts.

    Disadvantages of Traditional Economy

    1. Limited Economic Growth: Traditional economies often experience limited economic growth and development. This is due to their focus on subsistence and the absence of market-oriented activities. Without a formal market structure, it becomes difficult to accumulate capital and invest in productivity-enhancing technologies. As a result, traditional economies may struggle to generate substantial wealth and expand their economic opportunities.
    2. Technological Disadvantage: Traditional economies face challenges in keeping up with technological advancements. The lack of access to modern tools, machinery, and knowledge can hinder productivity and competitiveness. Without the means to adopt new technologies, traditional economies may find it difficult to increase production or engage in value-added activities. This technological gap can further isolate these economies from the benefits of globalization.
    3. Dependency on Natural Resources: Traditional economies heavily rely on natural resources for sustenance. This can be sustainable when resources are managed properly. It also makes these economies vulnerable to environmental changes and the depletion of resources. Factors such as climate change, deforestation, and overfishing present significant challenges to traditional livelihoods and the overall well-being of the community. This dependency can hinder long-term economic stability.
    4. Limited Access to Infrastructure and Services: Traditional economies often have limited access to modern infrastructure, healthcare, education, and other essential services. The lack of access to these services can perpetuate inequalities between traditional and urban communities. It can also hamper the socioeconomic development of traditional economies. Making it difficult for them to compete with more developed regions. This limited access to infrastructure and services can hinder the overall progress and well-being of the community.

    Challenges of Traditional Economy

    1. Limited Economic Growth: Due to the focus on subsistence and lack of market-oriented activities. Traditional economies may experience limited economic growth and development. The absence of a formal market structure can hinder the accumulation of capital and investment in productivity-enhancing technologies.
    2. Technological Disadvantage: Traditional economies often struggle to keep up with technological advancements, which can hinder productivity and competitiveness. The lack of access to modern tools, machinery, and knowledge may limit their ability to increase production or engage in value-added activities.
    3. Dependency on Natural Resources: Traditional economies heavily rely on natural resources for sustenance. Making them vulnerable to environmental changes and depletion of resources. Factors such as climate change, deforestation, and overfishing can have detrimental effects on traditional livelihoods and the overall well-being of the community.
    4. Limited Access to Infrastructure and Services: Traditional economies may have limited access to modern infrastructure, healthcare, education, and other essential services. This lack of access can hinder socioeconomic development and perpetuate inequalities between traditional and urban communities.

    Conclusion

    Traditional economies play a significant role in preserving cultural heritage and sustainable practices. While they face challenges in a rapidly changing world, their emphasis on communal values, resource management, and adaptability continues to contribute to the resilience of many indigenous communities. Preserving and valuing traditional economies is crucial for maintaining cultural diversity, and environmental sustainability, and fostering inclusive development. What are the Advantages and Disadvantages of Traditional Economy? As we navigate toward a more interconnected global society, recognizing and respecting the contributions of traditional economies can help us strike a balance between progress and the preservation of ancient wisdom.

  • Mixed Economy Definition Characteristics Pros Cons Examples

    Mixed Economy Definition Characteristics Pros Cons Examples

    A mixed economy is an economic system that combines elements of both capitalism and socialism. There is a mix of private ownership and government control in the production and distribution of goods and services. This system allows for a level of economic freedom, as businesses and individuals can operate in the private sector, while also ensuring that the government plays a role in areas such as regulation, public services, and economic planning. The specific mix and degree of government involvement can vary between countries. Overall, the goal of a mixed economy is to promote both economic growth and social welfare.

    Definition, Characteristics, Pros, Cons, and Examples of Mixed Economy: How to be Know

    What is the meaning of Mixed economy? It refers to an economic system that combines elements of both capitalism and socialism. It is characterized by the coexistence of private enterprises and government involvement in economic activities. In a mixed economy, some industries and sectors are privately owned and driven by market forces, while others are controlled or regulated by the government.

    The government plays a role in areas such as infrastructure development, education, healthcare, and social welfare. It may also enact regulations and policies to protect consumer rights, promote fair competition, and prevent monopolies. Additionally, the government may implement fiscal and monetary policies to influence economic growth and stability.

    At the same time, private individuals and businesses have the freedom to engage in economic activities, establish their enterprises, and make decisions based on market forces such as supply and demand. This allows for competition, entrepreneurship, and profit-making potential.

    The specific balance between government intervention and private enterprise can vary across countries and can evolve. Some countries lean more towards a free-market capitalist system, while others have a higher degree of government control and social welfare programs. The term “mixed economy” is often used to describe the economic systems of many modern democratic countries, where a combination of private and public interests shapes the overall economic landscape.

    Mixed Economy Definition Characteristics Pros Cons Examples Image
    Mixed Economy Definition, Characteristics, Pros, Cons, and Examples; Image by Gerd Altmann from Pixabay.

    Definition of Mixed economy

    It is an economic system that combines elements of both capitalism and socialism. In a mixed economy, there is a balance between private enterprise and government intervention. Private individuals and businesses have the freedom to own and control resources and engage in economic activities, while the government also plays a role in regulating industries, providing public services, and redistributing wealth. The degree of government involvement can vary, but the goal is to promote economic growth, efficiency, and social welfare. This system allows for a combination of market forces and government intervention to address both individual and societal needs.

    Characteristics of a Mixed Economy

    A mixed economy is characterized by the following key features:

    Combination of Private and Public Ownership:

    There is a blend of private enterprises and government-owned or controlled sectors. Certain industries and businesses are owned and operated by private individuals or companies, while others are owned and managed by the government.

    Coexistence of Market Forces and Government Intervention:

    Market forces such as supply and demand play a significant role in determining prices, production, and distribution of goods and services. At the same time, the government intervenes to regulate and control specific areas of the economy to ensure fair competition, protect consumer rights, and address market failures.

    Government Regulation and Control:

    The government in a mixed economy has a regulatory role to protect public interests and ensure the smooth functioning of the economy. This may include implementing laws, regulations, and policies to oversee various sectors, enforce standards, monitor monopolies, and protect the environment.

    Provision of Public Goods and Services:

    The government in a mixed economy is responsible for providing essential public goods and services such as infrastructure development, education, healthcare, and social welfare programs. This ensures that basic needs are met and promotes equal opportunities for all members of society.

    Wealth Redistribution:

    A key characteristic of a mixed economy is the government’s role in redistributing wealth and addressing income inequalities. Through various mechanisms such as progressive taxation, social welfare programs, and wealth redistribution policies, the government aims to promote social equity and reduce disparities.

    Flexibility and Adaptability:

    The degree of government intervention and the specific mix of private and public sectors can vary in a mixed economy. This allows for flexibility and adaptability based on changing economic conditions and societal needs.

    Balancing Economic Growth and Social Welfare:

    The overarching goal of a mixed economy is to promote both economic growth and social welfare. By combining market forces with government intervention, it seeks to strike a balance between profit-making and addressing social concerns.

    Pros and Cons of Mixed Economy

    A mixed economy has both advantages and disadvantages, also Merits and Demerits, as well as Pros and Cons. Let’s explore some of the pros and cons of this economic system:

    Pros or advantages or merits:

    1. Economic Growth and Innovation: They allow private enterprises to drive economic growth through innovation, entrepreneurship, and competition. The profit motive encourages businesses to invest, expand, and create new products and services, which contributes to overall economic progress.
    2. Social Welfare: Government intervention in a mixed economy ensures the provision of essential public services such as education, healthcare, infrastructure, and social welfare programs. This helps to address societal needs and reduce inequality by providing support to those in need.
    3. Regulation and Consumer Protection: Government regulations and policies in a mixed economy protect consumers’ rights and ensure fair competition. This helps prevent monopolies and promotes market efficiency, consumer choice, and product safety.
    4. Stability and Crisis Management: The government’s role in economic planning and intervention allows for stability and crisis management. During turbulent times or economic crises, the government can implement fiscal and monetary policies to stimulate the economy and prevent severe downturns.

    Cons or disadvantages or demerits:

    1. Reduced Economic Freedom: It involves some degree of government control and intervention, which can limit economic freedom. Regulations, taxes, and redistribution policies may place restrictions on private businesses and individuals, potentially slowing down economic growth and innovation.
    2. Inefficiency: The presence of both public and private sectors can sometimes lead to inefficiencies in resource allocation. Bureaucracy and red tape in government institutions can hinder productivity and slow down decision-making processes.
    3. Potential for Corruption and Cronyism: When government intervention is extensive, there is a risk of corruption and favoritism. Private entities may try to influence government policies and regulations to their advantage, leading to unfair competition and unequal distribution of resources.
    4. Difficulty in Achieving Optimal Balance: Striking the right balance between government intervention and free-market dynamics can be challenging. Different countries may have different views on the appropriate mix, making it difficult to find the optimal balance that promotes both economic growth and social welfare.

    It’s important to note that the degree and effectiveness of these pros and cons may vary across countries and can depend on specific contextual factors.

    Examples of Mixed Economy

    A mixed economy can be found in various countries around the world. Here are a few examples:

    1. United States: The United States has a mixed economy where both private businesses and government agencies play significant roles. While private enterprise drives most sectors, the government provides regulations, public services, and social welfare programs.
    2. United Kingdom: The United Kingdom operates with a mixed economy, combining elements of capitalism and government intervention. Private businesses dominate most sectors, but the government provides public services, healthcare, and social welfare programs.
    3. Germany: Germany also has a mixed economy, often referred to as a social market economy. It combines a strong private sector with an extensive social welfare system and government regulation. The government plays a significant role in infrastructure development, education, and healthcare.
    4. Canada: Canada’s economy is considered a mixed market economy. It has a combination of private businesses and government intervention. The government regulates certain industries, provides healthcare, and administers social welfare programs.
    5. Sweden: Sweden follows a model of a mixed economy known as the Nordic model. It combines elements of capitalism with a high degree of government intervention, particularly in healthcare, education, and social welfare.

    These are just a few examples, and it’s important to note that each country’s mixed economy may have different degrees of government involvement and specific policies tailored to their unique contexts.

    Bottom line

    The content in the editor explains what a mixed economy is, its meaning, definition, characteristics, pros and cons, and examples. A mixed economy combines elements of both capitalism and socialism, with a balance between private enterprise and government intervention. It allows for economic freedom while ensuring government regulation in areas such as infrastructure, education, healthcare, and social welfare. The specific mix and degree of government involvement can vary between countries. The goal of a mixed economy is to promote both economic growth and social welfare.

  • Green marketing examples social economy development

    Green marketing examples social economy development

    What advocates now is green consumption. Green marketing examples – As a long-term benefit, green marketing is also essential. Among them, green marketing can increase market share and improve market competitiveness after the whole people have implemented green consumption. Novel marketing will drive the activation and vigorous development of the market. Now that our country’s population is growing, the employment situation is grim, and the environmental impact is becoming more and more serious. The recent smoggy weather is a hot spot, so promoting green marketing is a top priority and urgent.

    Here are the articles to explain, The relationship between green marketing examples social economy development

    After understanding the relationship between social economy and green marketing in the market with examples. To develop this relationship and achieve the goal of building a resource-friendly society. This is what we should do, and it is a topic that must discuss and study. To achieve this goal, consumers, enterprises, and governments should all lead by example, implement marketing, consumption, and other policies under environmental protection, and establish a long-term model of harmonious coexistence between man and nature.

    What is green marketing?

    (1) The concept of green marketing

    Green marketing was proposed abroad as early as the 1980s, and it was implemented abroad in the 1990s. Later, after cultural exchanges, the Fifth Plenary Session of the 16th Central Committee of the Party pointed out that building a friendly society, is essential for green marketing. Green marketing refers to a marketing method or method that takes the protection of the ecological environment as the main purpose, builds a green culture, matches the green consumption of consumers, and satisfies the ecology and consumer concepts.

    When companies promote their products. They all use green consumption as the main theme and promote and advertise the concept of green consumption. That is healthy and environmentally friendly for their products. For example, a long time ago, Acorn International had a green logo that was very eye-catching. Which was the concept of green consumption that was close to nature and close to consumption. Acorn International is an infomercial that promotes a marketing model that is convenient and reduces people’s driving.

    Its products, such as good back and the like, are made of environmentally friendly materials. For example, good back materials use a composite material, especially the imported diving materials used in the improved U9 products. Which are decomposable under certain conditions. Such a healthy consumption concept is deeply rooted in people’s hearts, environmentally friendly, and in line with consumer tastes. Such marketing is a kind of green marketing.

    (2) The difference between green marketing and traditional marketing

    Traditional marketing is general marketing understanding with examples. Which is mainly centered on promoting products and asking consumers to accept products. Rather than green marketing which caters to green consumption. Traditional marketing emphasizes the transaction between the two parties more and achieves the purpose of the transaction. This is the purpose. The only thing they have in common is to introduce the characteristics of the product. But traditional marketing methods, it is closer to people’s living habits.

    After all, green consumption is a new concept for most people, a new term that has never stood exposed to before. In traditional marketing, in the process of marketing, consumers can directly feel the characteristics of the product and the role of the product. In the new green marketing, what customers feel may not be so directly felt. It is more of a healthy consumption method and attitude, as well as an environmentally friendly and healthy product. Which will guide consumers more towards healthy consumption and reasonable consumption.

    Because of the particularity of green marketing, the marketing method tends to carry out in a one-to-one model. It is appropriate to put oneself in a position for the sake of consumers. Green consumption considers for the sake of social interests. For the benefit of the whole society, and the sake of the scientific outlook on Development. Traditional consumption is only for profit, and the purpose of promotion achieve through product and price concessions. Green marketing refers to the energy-saving and environmental protection characteristics of the product with their examples. The product positioning is to choose green, healthy, environmental protection, etc., to serve customers in terms of service and quality.

    The relationship between green marketing and socio-economic development

    (1) modern enterprises must choose the necessary ”green” concept

    Modern science and technology advocate an innovative and green consumption model, and many consumers like healthy products that are suitable for themselves and their needs. Only when there is demand in the market will consumption generate. Enterprises must pay attention to the psychology of consumers in the marketing process. This model is a two-way choice model. Green marketing is a kind of representative of “green” with a healthy color. It brings to enterprises not only the kind of marketing model that consumers intuitively feel but also other psychological hints to maintain ecological balance.

    Because of the continuous introduction of policies, the country attaches great importance to environmental protection and sustainable development, so companies must support policies, otherwise they will be forcibly resisted. Green marketing has a distinctive mark. It integrates into all aspects of the enterprise, including marketing, product research and development, product sales, and product after-sales service. It is a process of full green ecology, attaches importance to environmental protection, and advocates environmental protection. Not long ago, the popular “firewood turkey” promoted a kind of eating healthy wild chicken.

    Other concepts

    The concept of firewood turkey makes people remember the taste of childhood love by consumers. Moreover, the chicken was killed on the spot, fresh and intuitive. Which gave consumers trust, indicating that the chicken was healthy and not less than two patties. But soon, it was closed by the environmental protection department, because when burning firewood. Will produce a lot of thick smoke, which is not only detrimental to health. But also affects the surrounding air quality, especially this year.

    Focus on the improvement of air quality, PM2.5 index. But this firewood turkey violates this, so the business will not last long. Therefore, the production concept of an enterprise must revolve around the protection of the ecological environment and a suitable and healthy green marketing method. Only then will such a business last for a long time, and it will stand the inspection and supervision of time and society.

    (2) Is the driving force for promoting economic development

    For green consumption, there is a market when there is demand. More people pay attention to their health today. Since Chai Jing became ill because of the birth of her daughter, she has started to study smog. What I want to discuss here is that modern people are becoming more and more aware of the protection of the environment and paying more and more attention to their bodies. The number of physical examinations every day is increasing.

    This increase, on the one hand, means that people are now very concerned about their bodies. And at the same time, the environment changes. Fearing that they will affect by an environment that is not particularly healthy now. With such an idea, there is such a demand. In the beginning, many companies began to make changes to some daily chemical products. The changes in many details give consumers an intuitive feeling that the texture of the product is different. The packaging of many products paper-base.

    When customers buy things, they will know the high quality of the product. If they change to plastic, there will be no such texture. They feel that the product is cheap, or even worse. This also promotes the sales of products, which also achieves the effect of environmental protection. There are still many electrical appliances. The development of electricity is not easy. There will be coal and other substances.

    Other Driving force

    Although there are new energy sources, they supply by coal and other substances. Many electrical appliances use energy-saving technologies. Such as variable frequency air conditioners and energy-saving refrigerators. Which are both environmentally friendly and power-saving. Many consumers are willing to consume such products. Besides, when it comes to eating, people take food as the sky, and applying green marketing methods to eating is a multiplier with half the effort.

    For example, the more popular health soup pot is healthier than the hot pot, and it is suitable for a wider range of people. The elder, children, young people, middle-aged, women, and other different strata love it, and they also fancy the concept of healthy eating. It is not so much an idea as a business opportunity. This kind of healthy consumption method is loved by customers, needed by enterprises, and needed by this society. It is the driving force of the entire economy and the foundation for long-term sustainability.

    (3) It is a necessary product for sustainable development

    Sustainable development is a long-term vision. Our life on earth is not only the supply of our generation but also the reproduction of people, which will continue to develop for millions of generations. Therefore, the protection of the environment is a must, and examples of green marketing will be a benchmark for market trends and directions. To implement the concept of sustainable development, it is necessary to pay attention to the impact of products, life, and processing sites on the environment and ecology.

    Therefore, the comparative product of sustainable development is green marketing examples. My country is a large agricultural country. In the early days, the foreign affairs movement began to develop the industry. But at that time, I did not pay attention to the protection of ecology. It was only later that I realized the importance of the ecological environment to us humans. Although at that time, productivity and competitiveness were improved, it affected the environment, which was felt by everyone. The development of refrigerators is such a journey.

    In the past, there were fluoride refrigerators, which caused serious damage to the atmosphere. Later, because of this problem, someone would reform and develop the technology. The current fluorine-free energy-saving refrigerators have not increased the burden on the environment, and the technology has existed improved. It means that this is not only a change of times but also economic and technological development.

    There are also the previous fur clothes. Which are highly sought after, and the killing of animals is illegal, and this practice existed later banned. With the current artificial fur, this is human wisdom, human self-awareness, and the improvement of technical ability. This is how it comes. There is no doubt that the green marketing model promotes economic growth and stimulates market flow.

    How to achieve green marketing.

    (1) Full cooperation between the government and enterprises

    Publicity is a skill, but also a right. If the government cooperates with companies to promote the importance of green consumption and make it deeply rooted in people’s hearts. Through publicity efforts at all levels and vigorous publicity in villages, townships, towns, counties, cities, provinces, etc., the influence is as influential as Chai Jing’s “under the dome”.The government and enterprises should first warn people about the destruction of the ecological environment, how much it affects humans, and the importance of the ecological environment to all of us.

    Secondly, they should develop green education, etc., and carry out publicity in green education, not only in the living community but also in work and study. Companies publicize to employees, teachers publicize to students and delve into the psychological roots. The concept of green consumption can promote through online videos, news and other media, and public service advertisements that combine corporate products can use. This is a win-win solution. Such propaganda has made people realize that this is not only a consumption model, but also a natural form, and the society will eventually tend to have certain economic value.

    (2) In the production process of an enterprise, it is necessary to apply the concept of green consumption

    Some of the green enterprises in our country are still stuck on how to strive for greater profits. Such green consumption stands deeply embedded in the business philosophy of the operators, so the operators of the enterprises need to promote green. It is not easy for companies to do this consciously, so this requires the power, supervision, and supervision of the public. In the production, processing, sales, and after-sales service of products, a fully integrated green model.

    The understanding of ”green“ is to integrate it into the business activities of the enterprise as a ”business philosophy”. For a green marketing combination, don’t pursue immediate benefits, and aim for the long term. As an enterprise, as a CEO, you must have a keen vision and flexibly apply green marketing to every link, from green products, from green prices, from green channels, from green promotions… To cooperate and integrate them. Only in this way can the green marketing examples of enterprises adapt to market demand and be sustainable.

    (3) Formally transform the enterprise

    In the trademark, it is necessary to focus on the meaning of green environmental protection. Furthermore, In advertising and branding, this is not only to baptize the company’s greenness but also to increase its brand effect. In advertising, don’t blindly talk about the intuitive attributes of the product, give customers a healthy attitude from the side, and make the effect of public service advertising.

    In particular, there are some advertising words and advertising slogans that must be clearly stated. That the characteristics of the product are closely related to ecological protection and health. Establishing a good green-friendly image of an enterprise can help enterprises more widely and directly transmit their green reputation to market segments. This is beyond the reach of promotion. It can also improve the competitiveness of enterprises and bring a good reputation and absolute advantages to enterprises.

    Conclusion

    There are many opportunities and challenges facing our country now, and we need to resolve them one by one. In international exchanges, the improvement of technology can minimize costs and maximize benefits. Seek a kind of green and environmentally friendly technical support, spread the green marketing examples, and concepts, receive it and realize mutual learning. Now that the global economy is in line with our country’s basic national policy, we must take the road of sustainable development, implement a scientific outlook on development, and realize a resource-friendly society to perfection.

    In the future development of enterprises, they must restrain their behavior, not carry away by immediate interests, respect society and nature, and take the road of sustainable development where population, economy, society, environment, and resources promote and coordinate each other. To adapt to the times, change, and innovate, we must conform to the laws of natural development, and achieve reasonable green marketing and reasonable green consumption. Civilization takes small steps and policies stand vigorously pursued. The whole society must work together to build a resource-friendly society, jointly achieve economic growth, and achieve the goal of common prosperity. It will not be far away.

    Green marketing examples social economy development Image
    Green marketing examples social economy development; Photo by Markus Spiske on Unsplash.
  • Infrastructure Project Management in a Low Carbon Economy

    Infrastructure Project Management in a Low Carbon Economy

    Definition of Infrastructure Project Management under a Low Carbon Economy; With the continuous development of the economy, society, and economy, more non-renewable energy sources stand continuously consumed; which makes the global warming trend more apparent and has a great impact on people’s daily life.

    Here are the articles to explain, What is Infrastructure Project Management? under a Low Carbon Economy!

    Therefore, the concept of a low-carbon economy is Born from this. While the city’s urbanization is progressing more smoothly and the speed of industrialization is accelerating; the low carbon economy definition, they should take as the most important guiding concept at present; and, it should add to the construction of industrialization and urbanization; to promote the synchronization of the natural environment protection and economic development conduct.

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    Introduction;

    At present, as the world develops faster, it will cause a series of environmental and resource problems. For example, resource waste, global warming, continuous consumption, etc., have led to the continuous reduction of resource types; which has gradually changed the traditional economic development model of various countries and has continued to develop in the direction of low emissions, low energy consumption, and low pollution. In terms of degree, infrastructure project management construction serves as a mirror for urban development and vividly reflects the situation.

    At present, during the construction of infrastructure project management in my country; due to the constraints brought by low-carbon technologies, cost constraints, and weak low-carbon awareness of personnel; as well as the ineffective supervision of relevant departments and inadequate auditing, etc.; prompting the frequent occurrence of serious environmental pollution and waste of resources in my country; which will not only affect the healthy life of urban people; but also seriously hinder the process of building a resource-saving and environment-friendly socialist society in my country.

    Therefore, in the construction process, how to better implement the low-carbon economy concept; and achieve the purpose of low-carbon energy saving has become a cumbersome and arduous task.

    The concept of the low carbon economy;

    The low-carbon economy mainly refers to a brand-new economic system established based on the scientific concept of development and the concept of sustainable development; with development and stability as the two major goals. Low-carbon economy mainly uses innovative technologies, innovative energy development, industrial restructuring, institutional innovation, and other methods to reduce the consumption of wood, coal, oil, and other resources in the process of economic construction, and to make energy consumption.

    Efficiency has stood improved to ensure that low-polluting energy and renewable energy stand fully utilized. Starting from social development, economic construction, ecological protection, and other aspects, a new situation of development, construction, and protection of a comprehensive harvest has stood achieved, and the environment, social ecology, and ecology have existed better developed.

    Low-carbon economy occupies an extremely important and significant position in the process of infrastructure construction; which stands mainly reflected in the following two aspects; First, the low-carbon economy can better save costs, and a low-carbon economy mainly emphasizes the saving of high energy consumption and high waste. As the price of resources continues to rise and resources are increasingly tight, by implementing a low-carbon economy, municipal engineering and costs can save, and construction units and engineering construction can achieve good economic benefits and comprehensive benefits.

    Industry value of low carbon economy;

    Infrastructure project management construction is an important part of social and economic development; and, the concept of a low-carbon economy has a high value in industry application and practice. On the one hand, it is because the concept of the low-carbon economy can guide the construction of basic projects, effectively reduce the consumption of energy, avoid excessive environmental pollution and harm, avoid affecting the normal life of citizens, and better. Alleviate the contradiction between urban environment and engineering construction; also open up a new road for the city to carry out basic project construction.

    In addition, with the current global resource shortage and high resource prices; the cost of infrastructure project construction has continued to rise. The emergence of the concept of the low-carbon economy can give full play to its advantages and better realize the high efficiency of resources; low energy consumption, and other characteristics; which can reduce the application cost required for the construction of infrastructure project management.

    The low-carbon economy has a systematic role and plays a high role in management, technology, resources, and other aspects. It can continuously improve the utilization efficiency of basic project construction projects, and at the same time; it can also improve the construction quality and construction efficiency of projects.

    Problems and main manifestations of inconsistency with the low-carbon economy in the construction of infrastructure projects;

    At present, my country has been applying a low-carbon economy for some time, and in the process of application; it has stood actively encouraged and advocated by people; and, all sectors of society can better implement the concept of low-carbon economy development. The construction of basic engineering has also firmly followed the pace of its development.

    Although good achievements have stood made in some aspects; it has not been fully implemented due to the influence of the low-carbon concept and is also limited by low-carbon technology and cost. With the weak low-carbon awareness of construction workers; the weak supervision of relevant departments, and the lack of auditing and other factors; there will still be many performance problems that are difficult to match with the low-carbon economy.

    Influenced by traditional concepts, the concept of the low-carbon economy cannot be implemented;

    Consciousness is the forerunner of the first action. At present, under the concept of a low-carbon economy, in the process of basic engineering construction, most of the construction personnel fail to have a high understanding of it. The significance of low-carbon engineering has not stood fully understood and recognized. At the same time, coupled with the influence of people’s traditional thinking, such as the concept of waste first, then saving, and the concept of pollution first, then governance of economic development, this has caused serious obstacles to the implementation of the low-carbon economy by the public in our country and has also made low-carbon;

    The economic concept is difficult to implement in basic projects, and at the same time, the desired effect has not stood achieved. In addition, the competent authorities and regulatory authorities failed to attach great importance to the concept of a low-carbon economy. In the construction process, the lack of comprehensive guidance has made it difficult to apply and popularize the concept of a low-carbon economy in the construction of infrastructure project management.

    Restricted by cost factors, there is a lack of low-carbon concept when selecting materials;

    Under the premise of the implementation of a low-carbon economy, people require to use green, energy-saving, and low-polluting materials. At present, municipal engineering often falls into a misunderstanding when choosing building materials, thinking that because of the limitation of capital cost, the price of ordinary quality materials is cheaper than low carbon materials, so as long as these quality materials The inferior materials are reasonable, then they will choose these inferior materials.

    From the short-term treatment effect; although it is reasonable, from a long-term perspective, more funds need to invest in the later stage; and it is difficult to meet the requirements of the current urban environment improvement. Low-carbon materials have many advantages such as low pollution and low energy consumption. In the process of later energy input and pollutant treatment, they can obtain better development space; but low-carbon technology has not stood fully popularized, and energy has low energy consumption. usage efficiency.

    At present, due to the various factors brought about by the lack of technology, talent, and the development of science and technology, in addition, infrastructure construction units have failed to attach great importance to a low-carbon economy, which makes low-carbon technology difficult to popularize and underutilize. In addition, due to the use of some backward technologies, the promoted new technologies are also difficult to meet the current social needs, which makes it impossible to improve the efficiency of resource utilization, resulting in the continuous waste of a large number of resources and the inability to discharge pollutants and wastes. The proposed requirements continue to increase the cost of pollution and have a serious impact on the environment.

    Countermeasures for low carbonization in the construction process of basic engineering;

    The following construction below are;

    Continuously promote the concept of green construction;

    From the perspective of the life cycle of infrastructure, green construction, as an essential part of the project, can not only better implement the concept of sustainable development but also bring more convenience to the saving of project costs and resources. During the construction process, if the construction unit of the construction project can truly implement the concept of green construction into all aspects of the construction, it will not only ensure a higher quality of construction equipment and materials but also start from a fundamental perspective and try to prevent it as much as possible.

    There are many problems such as high technical energy consumption or low construction efficiency. In addition, construction personnel also need to choose some construction techniques; with higher environmental performance as much as possible and innovate their management concepts.

    By doing a good job of scientific management of new construction equipment, especially some equipment that is often in the production line, it is necessary to formulate a more complete maintenance plan and maintenance plan, and for this mechanical equipment with high energy consumption, do a good job Timely maintenance and improvement work. Starting from a fundamental point of view, continuously reduce the amount of CO2 emissions and make it have a lower impact on the surrounding area.

    Continuously improve the degree of refinement of basic engineering construction project management;

    Before the construction of the foundation project starts, the construction management personnel need to formulate a plan with the highest feasibility and proceed from the actual situation of the construction site, to solve the problems for the configuration of construction equipment, transportation, and procurement of raw materials, etc. Second, after the construction of the project starts, the management personnel of the construction unit must not only do a good job in the management of the site, but also need to plan the construction sequence of the project, and adopt a dynamic management method for the completion of the construction progress. The cost payment and visa etc. are put into practice.

    However, after the completion of the construction; the management personnel of the construction unit needs to do the final accounts and audit work in the later stage; including the delivery documents of various projects during the construction process, etc.; to ensure that the concept of the low-carbon economy stands better implemented in infrastructure construction, and at the same time; It is also necessary to ensure that all links can link together and cooperate; to maintain the good use of infrastructure construction in the future and lay a solid foundation.

    Incorporate rationalized construction technology into it;

    From the perspective of low-carbon construction technology; how to continuously improve construction quality and reduce construction pollution has become a very difficult issue at present. During the construction process, the low-carbon construction technology of the construction project includes the following aspects: water resource regeneration, reuse technology, water ecological restoration technology, solar energy technology, and biological intelligent system.

    The construction unit also needs to choose some more advanced construction technology; and, environmental protection equipment as far as possible from the actual conditions of the project. Therefore, we can ensure that my country’s infrastructure project management stands better implemented; and the concept of sustainable development will stand implemented throughout.

    Establish low-carbon awareness;

    In the current infrastructure project construction process, the low-carbon concept should stand integrated into it. As a construction unit, we should do a good job of educating construction personnel on environmental protection awareness and saving awareness; so that they can establish correct low-carbon construction goals, and ensure that low-carbon culture can penetrate all aspects of enterprise construction. Under the premise of protecting the environment, by carrying out infrastructure construction work; it is possible to promote the sustainable and coordinated development of environmental protection and economic construction.

    Promote low-carbon technologies and continuously improve energy efficiency;

    To achieve the goal of high efficiency and low energy consumption; the carbonization of construction technology during the construction of basic projects has become the most important factor. Due to the influence of various factors, my country’s low-carbon economy concepts and technologies have not been implemented in the construction of infrastructure projects; but major enterprises have begun to exert their subjective initiative and take the initiative to strengthen their relationship with enterprises. In addition, through the development of low-carbon technology and a large amount of investment; low-carbon technology can be better applied, costs can be effectively saved, and the comprehensive utilization efficiency of energy can be continuously improved.

    Conclusion;

    To sum up, infrastructure project construction is an integral part of social and economic development; and the concept of a low-carbon economy has a high value in industrial application and practice. Human beings stand currently faced with various problems such as global warming and declining environmental quality. Therefore, countries must make full use of low-carbon economic concepts and technologies and implement them in all walks of life.

    The infrastructure construction process is no exception. In the process of urban construction, infrastructure construction can see everywhere and plays an important role; which directly affects the health and stability of people’s lives. As a mirror of urban development and image, basic engineering construction is also the main tool for the continuous enrichment and expansion of urban functions. As a necessary part of urban construction and development, the low-carbon economy must run through the concept of urban development.

    It has a more effective role in improving the ecological environment and urban social environment. In addition, in the process of infrastructure construction, using the concept of a low-carbon economy can also help to create an environment-friendly and resource-saving society in my country, ensure that ecological resources stand fully protected, and build a more harmonious society. The new society ensures that the social development process and people’s lives synchronize.

    Definition of Infrastructure Project Management under a Low Carbon Economy Image
    Definition of Infrastructure Project Management under a Low Carbon Economy; Photo by Alvaro Reyes on Unsplash.
  • How to Impact Entrepreneurs on the Economy?

    How to Impact Entrepreneurs on the Economy?

    Impact Entrepreneurs; As economies continue to integrate due to globalization and formally closed economies like India and China, march in the direction of total liberalization, entrepreneurship is on the boom. A near analysis of evolved and industrialized economies indicates a not unusual denominator that sticks out among all of them.

    Here are the articles to explain, Impact Entrepreneurs on the Economy!

    The Entrepreneurship Impact on the Economy; This is the most critical role played by way of entrepreneurship and marketers in such economies. This phenomenon has proved to us that; if an economy is to develop absolutely, entrepreneurship needs to be allowed to flourish. Consequently, it is the goal of this paper to seriously analyze the impact of marketers on any given financial system. In this paper, the author will identify and talk about the numerous blessings afforded to an economy; through entrepreneurs and entrepreneurship and the hazards of the identical and conclude the general impact of the marketers.

    Innovation;

    People often resort to entrepreneurship for one of the following motives; they find a marketplace niche and feature the answer to make the most of such niche; they were unable to locate appropriate employment or a suitable method of profits; and, therefore have resorted to the use of their creativity to generate an income for themselves; or, they have the technological expertise and the financial sources (or capable of supplying all the above) necessary to generate income via gratifying a need inside the market. No matter which of the above led a man or woman to become an entrepreneur; it is clear that innovation and creativity is the driving factor, and therefore; it can state that the biggest effect of marketers on a financial system is the revolutionary contribution that they make.

    Activity advent;

    As stated in the previous segment, one of the major reasons that people tend to come to be marketers is the fact they are not able to locate appropriate jobs. As a result, with the aid of being enterprising, innovative, and locating a marketplace niche, now not only are they able to generate an income for themselves but additionally to employ other people in their commercial enterprise operations. Consequently, one of the most high-quality effects that marketers make on the financial system is job advent and the discount of unemployment degrees. In evolved nations, we see that nearly 40 – 50% of the staff stands employed in small and medium-scale business organizations that have stood started up by very enterprising individuals.

    Likewise in international locations like India; we see that hundreds of thousands of women have been in a position to pull; their families out of poverty through self-employment and entrepreneurship; which has been made viable with the aid of exclusive non-governmental businesses; and due to the provision of such sources through microfinance, and so forth. Africa is some other right instance of small-scale entrepreneurs helping to lessen poverty and supporting many to avoid destitution. Therefore, primarily based on everything that has stood said; above it is obvious that entrepreneurs can cause a high-quality diploma of effect on an economic system; through task advent and earnings technology.

    Accelerated opposition;

    The other high-quality impact of entrepreneurship on an economy is the increasing degree of competition; as new entrepreneurs join the fray in existing domestic markets. While one may additionally assignment to mention that this could only result in market saturation; the upside of such a phenomenon is that it reasons all the players in the market to reexamine; their operational skills, boom cost addition, lower prices, and emerge as greater green. For that reason, it can stand said that competition reduces the probability of monopolies and oligopolies; within the marketplace, and is useful to the purchaser and the financial system as a whole.

    Increased productivity;

    One of the blessings of increased opposition in an economy is that people and companies continue to source strategies that can better improve their operations, use sources greater efficaciously, and most significantly, lessen prices at the same time as adding fees. All this often results in growth in productiveness in an economic system and an increase in the gross home product (GDP), which is indeed a gain for the economy.

    Even as combatants tend to state that when productiveness will increase the unemployment can regularly increase, accordingly decreasing the fine impacts, it is the opinion of the author that multiplied productiveness leading to improved unemployment will then purpose extra people to be creative, discover niche markets, become marketers and begin producing extra employment opportunities, hence re-inventing the wheel and driving the economic system forward.

    New markets;

    As said in the preceding segment, multiplied opposition inside the market can cause saturation and as a result; many marketers can push to search for new markets for their services and products or adapt marketplace penetration tactics. Both ways, this sort of phenomenon of accelerated competition; which ultimately motivates people to look for new markets; can take into consideration as having a tremendous impact on the financial system. Consequently, marketers may take into consideration playing a crucial position in the economy.

    As the mixing of economies maintains because of globalization, entrepreneurs frequently tend to search for markets that are outdoor in their home sphere, as a result, generating foreign sales and growing the prosperity of the economy as an entire. While this may be a completely simplistic rationalization of the effect that entrepreneurs make on a financial system, it is also secure to say that the employment technology, improved opposition, market enlargement, market penetration, and sourcing of the latest markets all result in profits era that ultimately allows a financial system to come to be greater wealthy, drawing millions out of poverty and generating price range for social welfare sports that in the long run uplift the dwelling requirements of its citizenry.

    Poor influences of marketers;

    The biggest negative impact of marketers on an economic system is the plundering of assets; which can have a disastrous impact on the environment. Even though such bad influences exist mitigated to a point in evolved economies due to the enforcement of environmental protection standards and rules; this isn’t always the case in developing economies. In addition, entrepreneurship calls for a positive degree of commercial enterprise knowledge and understanding, without which entrepreneurial ventures can often fail; which also can cause many economic hardships that during intense instances may even cause destitution.

    Social entrepreneurship;

    Today we see the world of social entrepreneurship growing exponentially that’s a superb signal and has helped to draw hundreds of thousands out of poverty, lower unemployment, decrease the range of people depending on social welfare, and all in all uplift the living standards and first-rate lifestyles of millions. Further social entrepreneurship initiatives exist also often seen as ‘inexperienced initiatives that; take into consideration the impact on the herbal surroundings and consequently try to maintain this at a minimum. This increases attention approximately such issues, avoids the plundering of herbal assets, and conserves the surroundings anyplace viable. Consequently, it can state that the negative impacts of marketers on an economy may mitigate to a point via social entrepreneurship.

    Conclusion;

    Based totally on the entirety that has stood mentioned above; it’s far apparent that the fantastic impacts of marketers on a financial system, in ways outweigh the poor influences. Task advent, discount in unemployment ranges, improved competition, the opening of new markets, growing productiveness, overseas earnings era, and poverty remedy are some wonderful influences that impact entrepreneurs have on an economy. However, this is not to say that there are not any negative impacts; such as the wastage and plundering of assets; but taken as a whole it’s far obvious that entrepreneurs positively impact an economy.

    How to Impact Entrepreneurs on the Economy Image
    How to Impact Entrepreneurs on the Economy? Image by Mohamed Hassan from Pixabay.
  • Positive and Negative impacts of Globalization on Economy

    Positive and Negative impacts of Globalization on Economy

    Positive, Good, Negative, and Bad impacts or effects of Globalization on Economy; Globalization makes business management easier and efficient for the company. Based on my research, Globalization simplifies business management in the world. This is due to the advancement in technology, transport, communication, education, and regulations of trade that makes trade fair to all parties. This attracts more people to engage in international business and international trade. Managers within the global face a lot of challenges due to high competition in the industry; good decisions must make to satisfy and maintain their customers and attract more customers for their products. 

    Here is the article to explain, What are the Positive, Good, Negative, and Bad impacts or effects of Globalization on Economy?

    Companies enjoy economies of scale in the business due to the reduction of cost in the management. This report explores a range of interlinking questions, starting with what is globalization, what are the impacts or effects of globalization in developing countries and developed countries, this is in terms of positive and negative impacts or effects on the economy. Globalization is something that affects all of us, no matter what our profession or interest is.

    Globalization is a very wide and very important focus of discussion. I spent time researching what it is and the effects it has in developed countries and developing countries. So in this report, I will define what globalization is and the effects according based on my research. Globalization despite having benefits to the world also has negative impacts or effects of it.

    The following Positive, Good, Negative, and Bad impacts or effects of Globalization on the Economy below are;

    Globalisation has brought benefits in developed countries as well as negative impacts or effects, while positive. The positive impacts or effects include several factors which are education, trade, technology, competition, investments and capital flows, employment, culture, and organization structure.

    Positive impacts or effects;

    It would be rather difficult to discuss the extent of the positives that globalization has had on the world at large. But still, here are some of the positive impacts or effects of globalisation and the negative impacts or effects they have had on so many demographic segments of society.

    Global market.

    Most successful emerging markets in developed countries are a result of the privatization of state-owned industries. For these industries to increase consumer demand many of them are attempting to expand and extend their value chain to an international level. The impact of globalization on business management see by the sudden increase in the number of transactions across the borders.

    In protecting yields and maintaining competitiveness, businesses are continuing to develop a wide range of their footprint as it lowers cost and enjoys economies of scale. Multinational corporations are a result of globalization. They occupy a central role within the process of globalization as evidenced through global foreign direct investment inflows.

    Their concentrations within Europe in western economies have led to size constraints, therefore there is a need for new geographical areas to operate whereby they will face a lot of competition in the market. Through this they will enlarge their market and enjoy economies of scale as globalization facilitates time-space compression, economies compete at all levels including that of attracting investors.

    Cross-cultural management.

    Globalization tends to be the realm of the elite because in many parts of the world they are the only people who are affluent enough to buy many of the products available in the global marketplace. Highly educated and wealthy people from different backgrounds interact within a westernized milieu. Western styles, since are symbols of affluence and power, the elite often embraces western styles of products and patterns of behavior to impress others.

    Today Western culture and patterns of behavior and language are staples of international business. United states have a powerful impact upon many other countries and societies. The world today has a popular cultural force. The popular consumer culture of the economically dominant West is relentlessly and inevitably transforming other regions, cultures, nations, and societies.

    In addition, such perspective implies that technological change, mass media, and consumer-oriented marketing campaigns work in tandem to remake whatever they touch in their image. Even attitudes and ideas about society, religion and, technology transformed by cultural diffusion brought by globalization. For example, in America McDonalds, represent fast, cheap,p and convenient food while it is not the same worldwide. It’s of high price in other countries like China and Russia where it involves cultural experience.

    Foreign trade.

    Globalization has created and expanded foreign trade in the world. Things that were only found in developed countries can now be found in other countries across the world. People can now get whatever they want and from any country. Through this developed countries can export their goods to other countries. Countries do business through international trade, whereby they import and export goods across the globe. These countries that export goods get comparative advantages.

    Organizations have been established to control and regulate the trade activities of the countries in the world to have fair trade. World trade organizations emerged a powerful international or organizations able to effectively influence individual governments to follow international trade rules, copyrights, policies on subsidies, taxes, and tariffs. Nations can not break rules without facing economic consequences. The number of nations that are dependent on trade, foreign capital, and the world financial markets increased greatly.

    Countries engaged in foreign trade enjoy a comparative advantage. The post-Recardianan trade theories predicted that specialization in labor and capital-intensive goods would bridge enormous wage gaps between the poor and the rich countries, that is the developing and developed countries, sparing the latter from massive labor immigration.

    Resource Imperative.

    Developed countries need the natural and human resources of the developing countries while developing countries need the capital, techno, logy, and brainpower of the wealthier countries. Developed countries’ economies are increasingly dependent on the natural and human resources of developing nations. The growing interdependence of nations and their activities on one another fosters by the depletion of natural resources; as well as overpopulation.

    Foreign investment.

    One of the most visible positive impacts or effects of globalization in India is the flow of foreign capital. A lot of companies have directly invested in India, by starting production units in India, but what we also need to see is the amount of Foreign Investment Inflow that flows into the developing countries. Indian companies which have been performing well, both in India and off the shores, will attract a lot of foreign investment, and thus pushes up the reserve of foreign exchange available in India.

    This is also one of the positive impacts or effects of globalization in the US and other developed countries as developing countries give them a good investment proposition. Managers’ objectives might not be the same as those of stockholders in some situations. The more complex the corporation the more difficult it is for shareholders to monitor management’s actions whereby it provides the managers more freedom to act in their self-interest at the expense of shareholders.

    Multinational firms are more complex than national firms. Managers might favor international diversification because it reduces firm-specific risk or adds to their prestige. These goals might be of little interest to shareholders. This divergence of interests between shareholders and managers might reduce the value of multinationals relative to domestic firms.

    Competition.

    One of the most visible positive impacts or effects of globalization is the improved quality of products due to global competition. Customer service and the ‘customer is the king’ approaches to production have led to improved quality of products and services. As domestic companies have to fight out foreign competition; they compel to raise their standards and customer satisfaction levels to survive in the market. Besides, when a global brand enters a new country, it comes in riding on some goodwill, which it has to live up to. This creates competition in the market and a survival of the fittest situation.

    Culture.

    The positive impacts or effects of globalization on culture are many! Not all good practices were born in one civilization. The world that we live in today is a result of several cultures coming together. People of one culture, if receptive, tend to see the flaws in their culture and pick up the culture which is more correct or in tune with the times.

    Societies have become larger as they have welcomed people of other civilizations and backgrounds and created a whole new culture of their own. Cooking styles, languages, and customs have spread all due to globalization. The same can say about movies, musical styles, and other art forms. They too have moved from one country to another, leaving an impression on a culture that has adopted them.

    Legal Effects.

    Increased media coverage draws the attention of the world to human rights violations. This leads to improvement in human rights. Global economic growth does not necessarily make people happier, worldwide free trade should also benefit humanity as well as protect nature, not just reward managers and stockholders. Those who would be authentic leaders need to address inequalities.

    Globalization should promote openness and information along with exchange with greater democracy and prosperity. Gone are the days where the limited jurisdiction became a hindrance in the prosecution of criminals. These days due to international courts of justice, these criminals can no longer seek asylum in a foreign country but will be brought forward and there will be justice.

    Due to globalization, there is also an understanding between the security agencies and the police of two or more different countries who will come together to curb global terrorism. Hence, it is now possible to catch the perpetrators of crime irrespective of which country they choose to hide in. This is undoubtedly one of the greatest positive, good, negative, and bad impacts or effects of globalization on society or the economy.

    Negative impacts or effects;

    Globalization also has its side effects on developed nations. These include some factors which are jobs insecurity, fluctuation in prices, terrorism, fluctuation in currency, capital flows, and so on.

    Jobs Insecurity.

    In developed countries, people have jobs insecurity. People are losing their jobs. Developed nations have outsourced manufacturing and white-collar jobs. That means fewer jobs for their people. This is because the manufacturing work is outsourced to countries; where the costs of manufacturing goods and wages are lower than in their countries. They have outsourced to developing countries like China and India.

    Most people like accountants, programmers, editors,s, and scientists have lost jobs due to outsourcing to cheaper locations like India. Globalization has led to the exploitation of labor. Safety standards are ignored to produce cheap goods. “In practice, however, the recent experience in Latin America has been that many such open-handed multinationals moved their operations too; for example, China or South East Asia because of cost and market considerations”.

    Fluctuation in Prices.

    Globalization has led to a fluctuation in price. Due to the increase in competition, developed countries are forced to lower down; their prices for their products, this is because other countries like China produce goods at a lower cost; making goods to be cheaper than the ones produced in developed countries. So, for the developed countries to maintain their customers they are, forced to reduce the prices of their goods. This is a disadvantage to them because it reduces the ability to sustain social welfare in their countries.

    Positive Good Negative and Bad impacts or effects of Globalization on Economy Image
    Positive, Good, Negative, and Bad impacts or effects of Globalization on Economy; Image by Fathromi Ramdlon from Pixabay.

    References; Positive and Negative effects of Globalization. Retrieved from https://www.ukessays.com/essays/economics/positive-and-negative-effects-of-globalisation-for-business-economics-essay.php?vref=1

  • Capitalist Economy: Meaning, Definition, Features, Merits, and Demerits

    Capitalist Economy: Meaning, Definition, Features, Merits, and Demerits

    What does mean Capitalist Economy? Meaning; It is one of the oldest economic systems and its origin is at the time of mid-eighteenth century in England in the wake of the Industrial Revolution. It is that system, where means of production are owned by private individuals, profit is the main motive and there is no interference by the government in the economic activities of the economy. They are free to use them with a view of making the profit. Everybody is free to take up one line of production he likes and is free to enter into any contract with others for his profit. Hence, it is known as the free market economy. So, what is the topic we are going to discuss; Capitalist Economy: Meaning, Definition, Features, Merits, and Demerits.

    Here are explained; What is the Capitalist Economy? with Meaning, Definition, Features, Merits, and finally Demerits.

    What is the Capitalist Economic System of India? Capitalism is the most prominent in our current global economic system. Its main characteristic is that it most means of production and property are privately owned by individuals and companies. The government has a limited role in such an economy limited to management and control measures. So a capitalist economy is a liberal economy. This means only the free market will determine the supply, demand, and prices of the products.

    Definition of Capitalist Economy:

    According to Wright,

    “Capitalism is a system in which, on average, much of the greater portion of economic life and particularly of net new investment is carried on by private (i.e. non-government) units under conditions of active and substantially free competition and avowedly at the least, under the incentive of hope for profit.”

    In the words of Loucks,

    “Capitalism is a system of economic organization featured by private ownership and use for private profit of man-made and nature-made capital.”

    According to Ferguson,

    “Capitalism is a free-market form or capitalistic economy may be characterized as an automatic self-regulating system motivated by self-interest of individuals and regulated by competitions.”

    Features of Capitalist Economy:

    Capitalist economy has the following main features:

    • Private Property: In this economy, private property is allowed. All means of production like machines, implements, mines, and factories etc. come under private property.
    • Price Mechanism: The Capitalist economy is gained by the price mechanism. Here prices are determined by the interaction of demand and supply without the interference of any kind by the government or any other external forces.
    • Freedom of Enterprise: In this system, every individual is independent to his means of production in any occupation that one likes.
    • The sovereignty of that consumer: Under this system, the consumer plays the most vital role. The entire production pattern is based on the desires, wishes and the demand of the consumer.
    • Profit Motive: The maximization of profit is the main motive of the producer. Profit guides the production in this type of economy.
    • No Government Interference: Under a capitalistic system, the government does not interfere in day-to-day economic activities. This means producers and consumers are free to make decisions.
    • Democratic: The capitalistic system is more democratic in comparison to other economic systems as there are more changes to chancel according to new environments of the economy.
    • Self-Interest: The inspiring force in this system is self-interest. It leads to hard work and to earn maximum income by satisfying their consumers.

    Capitalist Economy Meaning Definition Features Merits and Demerits
    Capitalist Economy: Meaning, Definition, Features, Merits, and Demerits. Image credit from #Pixabay.

    Merits of the Capitalist System:

    The following advantages or merits below are:

    • Individual Motivation: The capitalist economic system motivates the businessmen to develop new items, produce in good quality and undertakes innovative activities because of the initiative of larger profits.
    • Flexible and Dynamic Economy: Motivated by profits, individual initiatives and competition among the traders and businessmen, there is dynamism in the capitalist economy continuously goes ahead with changes and innovative activities.
    • The benefit of Perfect Competition: There exist perfect competition between different traders and creditors who benefit from the capitalist economy. There is no change of monopolistic profits because of perfect competition. The existence of competition initiates more economic welfare. According to George Steiner, from the point of view of public welfare, competition serves as a regulator and reducer of prices as an incentive to improved production efficiency. Without competition, the capitalist economy would become stagnant, unproductive and exploitative.
    • Capital Formation: The capitalist economy encourages for the formation of capital, wealth and assets in the society. New industrial and commercial institutions are set up with the objectives of profits and also encourages the creation of additional employment, income, and savings. 
    • The economic growth of an economy is also faster and higher in a capitalist economy. This is because the investors will also invest in projects that are profitable for them. There is no pressure to produce any goods or services if they do not wish to do so for the sake of the public.
    • Consumers also benefit in a capitalist economy. Firstly they have the freedom to choose whichever products or services they wish to buy. Also, the competition is high and the producers are motivated to make their best products in large quantities at reasonable prices.
    • Capitalism also promotes fundamental rights of freedom and choice for both the consumer and the producers.

    Demerits of Capitalist System:

    The countries which have become independent after the 1950s adopted mostly the socialistic economic system because of the demerits of the capitalist economic system. Human welfare aspect has completely disappeared in the capitalist system and it has created disparity in income and wealth. H.D. Dickinson writes, “Capitalism. …is fundamentally blind, purposeless, and irrational and is incapable of satisfying many of the urgent human needs.

    Some of the important disadvantages or demerits of capitalism are:

    • Increase Inequalities: It increases inequalities in wealth, income and opportunities. Increase in economic inequalities creates economic and social problems.
    • Economic Instability: It is difficult to establish a balance between the demand and supply. There will be a trade boom or recession or the frequent fluctuations in prices. All the decisions relating to production are taken by the capitalist and due to wrong estimates of future requirements; imbalance in production is generally found. Due to fluctuations in prices industrial and other economic activities become unstable and this will have an adverse impact on economic development and expansion.
    • Inefficient Production: The capitalist always produces with the motive of profit only. He always produces goods for use by the higher income class of the community so that maximum profits can be obtained. There is no place in the mind of the capitalist to produce for consumption by common people. Goods and service are not produced by keeping in view the interest and wants of the common man, but with the motive of capitalist’s profits.
    • Class Conflicts: The capitalist economy divides the community into two parts; on the first side the top capitalists and on the other side labor class which depends on the capitalists to fill their stomach. Since the production resources are controlled by the capitalists they exploit the labor from their reasonable reward.
    • Unemployment: In a capitalist economy, full employment situation cannot be brought due to lack of central economic planning. With the result, optimum use of resources cannot be possible. This brings the situation of unemployment.
    • Monopoly and Exploitation: The establishment of large-scale business, improvement in technology, the motive of maximization of profits, formation of combinations and acute competition are the reasons for the creation of monopoly and exploitation of customers.
    • Neglect of National Interest: They are mainly oriented towards self-interest of maximization of profits for which they compete with each other. They neglect the social interests. They do not undertake their activities keeping in view the national interest.