Economyentails trade and consumption of goods that involves the productionand distribution within a specified geographical location. Thesustenance of humanity purely circulates around the economy. However, there can either be a poor or strong economy. In both ways,people are affected differently. A strong economy is determined by anumber of factors that work together to form a strong effect. On theother, when an economy of a place is poor it means that there will bea lot of financial struggles for people living in that particulararea. Economic activity is determined by production that exploitsnatural resources, capital, and labor (Fan & Zhu 2014). Thereare numerous factors that determine and shape the status of theeconomy. The economy is the cornerstone upon which humanity whollydepends on for day to day sustenance.
Availabilityof a Skilled Workforce
Basedon the fact that the economy entails the production and supply ofgoods and services, the workforce is a very important factor. Askilled personnel is crucial in that it provides that requiredexpertise to produce, manufacture and create new products in themarket. The economist of a specific area is shaped by culture,education legal systems, political structures and social organization(Huang & Wang, 2013). For instance, the most common example ofhow a skilled population can lead to a stronger economy isdemonstrated by the developed countries. These counties had theircivilization begin many years ago in which education was emphasized. As a result, they ended up having a highly educated and skilled laborforce. With this advantage, the economy benefits in that differentaspects are run by these employees. On the other hand, the developingcountries do not have adequate skilled labor force (Bhagat, 2013).Thus, their economies are not strong.
Considerably,strategists who understand more about the building of an economy areable to formulate workable ideas that can stimulate the economy. Oneof the most significant aspects that can grow an economy is theinfrastructure. With an effective transport and communicationsystems, the movement of produced goods to the consumers can easilybe executed. It takes the effort of skilled workers to determinethat these aspects are crucial (Fan & Zhu 2014). Moreover, thecost of the labor force should be considerably cheaper but ensuringthe workers gets value for their services. The relation between askilled labor force and the economy is so strong that one cannotsurvive without the other (Bhagat, 2013). The world governments tendto work by this ideology when they emphasize on the importanceeducation to their people. In turn, educated citizens work indifferent sectors of the economy hence making it stronger.
Reductionin Immigration Barriers
Removalof immigration barriers can have both positive and negative effects.When the immigration barriers are removed, people can come and occupyvarious jobs. For instance, if the immigration barriers in the UnitedStates of America are removed, there are two possible outcomes thatare expected. First, there will be an abundant supply of labor. Theproduction of services and goods will increase thus strengthening theeconomy of the U.S. Second there will be more income generationactivities that will come with the increased population. On theother hand, this can also have a negative effect. For example, theremight be an increase of unemployment which can lead to other crimessuch as robbery (Bhagat, 2013). Unemployed people spend but do notearn thus raising questions on where they get the money. Also, if theimmigration barriers are removed, law breakers such as terroristmight get into the U.S and conduct their terrorist activities thatdiscourage economic activity. Therefore, as much as this has somebenefits, it disadvantages should also be determined.
Limitof Access to Capital
Oneof the major limitations to the economic growth is the lack of littleaccess to capital. The Lack of capital means that people will notspend on goods. These will slow down the rate of circulation ofmoney. The major cause of limit to capital is the lack ofemployment. Countries that are poor are faced with these challengesin that people live only on less than one dollar per day (Mankiw,2016). Jobs can be acquired when one goes to school that will enablethem to get a job in the future. However, there are other jobs thatneed no education qualification. Economists encourage uncontrolledaccess to funds because this is what will move the economy (Huang &Wang, 2013).
Inconclusion, the economy is a very crucial aspect of the developmentof a nation. A strong economy means that the needs of everybody willwell be taken care of. The skilled labor force is pertinent to thegrowth of the economy. Workers are needed to control various sectorsthat are pivotal to the economy. Additionally, immigration affectsthe economy in many ways either negatively or positively. Howeverwhat is more important is the access to adequate capital that iscrucial to the development of a strong economy.
Bhagat,R. (2013, May 20). `The economy, the economy, the economy`.Businessline Retrieved fromhttp://search.proquest.com/docview/1353198312?accountid=45049
Fan,D., & Zhu, C. J. (2014). How do Chinese multinationals perceivefactors affecting the integration-responsiveness framework?International Journal of Emerging Markets, 9(2), 181-204.Retrieved fromhttp://search.proquest.com/docview/1520636114?accountid=45049
Huang,X., & Wang, W. (2013). Evaluating industrialeconomy-ecology-coordinated development level by grey target theory.Grey Systems, 3(3), 338-348.doi:http://dx.doi.org/10.1108/GS-08-2013-0020
Mankiw,N.G. (2016). Principlesof microeconomics.Place of publication not identified: Cengage Learning.