Essay on The Real Economy in the Long Run

User Generated

ntet

Economics

Description

Students examine the long-run determinants of both the level and the growth rate of real GDP per person and the factors that determine the productivity of workers and what governments might do to improve the productivity of their citizens. Students will learn how saving and investment are coordinated by the loanable funds market and will see the effects of taxes and government deficits on saving, investment, the accumulation of capital, and ultimately, the growth rate of output. Students will be introduced to tools that people use when they participate in financial markets. Students will see how people compare different sums of money at different points in time, how they manage risk, and how these concepts combine to help determine the value of a financial asset, such as a share of stock. Students will be introduced to the labor market and how economists measure the performance of the labor market using unemployment statistics. Students will address a number of sources of unemployment and some policies that the government might use to lower certain types of unemployment.

Assignment Steps

Resources: National Bureau of Economic Research

Scenario: The organization's strategic plan calls for an aggressive growth plan, requiring investment in facilities and equipment, growth in productivity, and labor over the next five years. It is your team's task to determine where, outside the United States, your organization should locate its new manufacturing plant. **The organization chosen is Phoenix Real Estate and the place outside the United states is China.

Write a 1,050-word report recommending an off-shore country and support your choice with the following data:

  • The factors determining the country's productivity
  • How the country's policies influence its productivity growth
  • How the country's financial system is related to key macroeconomic variables
  • How your organization can reduce the risk they would face in relocating
  • The current and projected unemployment over the next five years

Cite a minimum of three peer-reviewed sources not including your textbook.

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Explanation & Answer

Please find attached. Let me know if you need edits.

Running head: REAL ECONOMY IN THE LONG RUN

Real Economy in the Long Run
Student's Name
Course Number-Name of Course
Instructor’s Name
Date

REAL ECONOMY IN THE LONG RUN

2

Real Economy in the Long Run
Investment is a sensitive element for any businessperson, organization, industry or even
the country since there is a lot of resources which are put at risk (Zhang and Da, 2015). The
failure of a given investment means that several resources have been wasted. This will not only
affect a business in the short run but also in the long run. It is apparent that an assessment of
various economic pull factors has to be put into consideration before deciding on the type and
location of a given investment (Yu, 2014). The author of this paper seeks to illuminate on the
investments made by Phoenix Real Estate in China. The factors which influence China’s
productivity, the existing policies, and the relation of financial, macroeconomic variables as well
as the projected rate of unemployment in the next five years will be addressed. Besides, the
techniques of the dealing with various risks will be elucidated.
Factors Determining the Country's Productivity
China is arguably one of the countries with the best business climate for both the local
and international investors. This is underlined by the fact that China is open to the regional and
international trade. This turns out to be one of the best nectars to foreign direct investments.
Therefore, Phoenix Real Estate stands a chance to grow and develop once it is introduced to
China. The local market in addition to the foreign market lays the foundation for a concrete and
stable market which promises an expansion of the real estate (Zhang and Da, 2015). Economic
growth in the short-run and the long-run is influenced by t...


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