GLOBAL ECONOMIC ENVIRONMENT SAMPLE

Questions

Question 1

The recent literature on growth and development places increasing emphasis on the importance of institutions. Choose a country and explain briefly its institutional framework. In doing so try to think about distinctions between formal and informal institutions and the importance of property rights. Try to offer some thoughts as to how this institutional setting affects incentives and economic growth.

RESEARCH ESSAY

Answer) The world is subjected to subsequent changes and the USA is also not an exception. There are regulatory frameworks for various sectors operating in the country that contribute toward stable globalization and economic prosperity coupled with development. The institutional framework in the country helps in directing vital processes that assist in making effective decisions, in matters of authorization. Also, it helps in gaining approvals from the prevalent local authorities (Cvetanović et al., 2019). It also assists the country in maintaining legal, economic, and underlying rights like property rights. The country’s institutional framework contributes to a great extent toward the legal and regulatory dimension that assists the organization in accomplishing better technical as well as operational flexibility.

The country is determined to lose any ground and acquire the goals put forth in the 2030 Agenda for Sustainable Development. In addition to this, it is also the aim of the country to make sure that no one is lagging in getting the needed new and effective efforts of the public policy. This also ensures that the coverage of development is enhanced along with maintaining quality (Canitez, 2019). There are two types of institutional frameworks and they are formal and informal institutions where the informal ones work at a more implicit level assisting in shaping the perspective of the individual and the adjacent environment. On the contrary, formal institutions help in maintaining financial activities. Both these are important aspects of a country as they hold great potential in shaping the country in terms of better financial growth and stability and accomplishing globalization (Brinkerink and Rondi, 2021).

HC3152 Individual Assignment

The prevalence of the institutional framework in the country helps in protecting property rights which assists the owners in the country to acquire legal ownership of a particular resource that they own. This is monitored and regulated by the country’s legal system and the US government also ensures safety by maintaining effective law and order within the country. This is reflective of the fact that the USA aims towards eradicating undesirable competition for having a hold over financial resources. It is the institutional framework that contributes to accomplishing incentives as well as economic growth (Brinker and Rondi, 2021). This is because it regulates the cost of financial transaction that takes place in the country and encourages development through the enforcement of various contracts. In addition to this, it also helps in safeguarding property rights vividly which raises the efficacy of the financial institutions as well in the country.

All these aspects raise incentives and also help in stabilizing the market system prevailing in the country that has tough competition to have a hold over the monetary resources available. This also facilitates having vast information and this huge availability of information results in diminishing the transaction cost considerably (Brinkerink and Rondi, 2021). In addition to this, it also reduces the risk and the level of uncertainty in terms of financial stability in the country. The country, the USA has a mixed economy and the theory of mixed economic theory reflects traits of both capitalism as well as socialism safeguarding private experts and allowing financial freedom in utilizing capital. It also facilitates the Government in power to interfere in the financial activities for accomplishing social targets for the betterment of the public.

Nursing Assessment And Justification

Question 2

Identify what you think are the main institutional reforms the country should undertake to facilitate growth and development. What might be the barriers to the country doing this?

Answer) The American government has executed the most important institutional changes in recent decades where many aspects of legislatures in the various states comprising about fifteen states have undergone a complete change. However, there are still various changes that need to be incorporated into the country’s working framework. This will help in bringing about better financial stability and also help in accomplishing globalization. It is then that globalization will be able to shower its beneficial aspects. The country must focus more on the developing region like the region of Latin America that is under the control of the USA (Morgan, 2018). Reformation must be implemented to bridge the income gap that raises the aspect of inequality in the region. This is a highly undesirable scenario that destroys financial stability and also diminishes the chances of gaining the benefit of globalization in the long run.

Toxic Charity Reflection 5

There are also issues of unequal distribution of assets across individuals or groups. It implies those assets that help in generating income. This will help the country in driving away inequality as the presence of inequality diminishes efficiency as well as economic growth to a great extent. The area where there are destructive impacts of corruption like issues in the case of seeking rent needs to be eradicated through reformation in the field of trade liberalization (Radieva, 2018). Reformation in trade liberalization will ensure the development of new jobs that are labor-intensive like in the agricultural field or the process of manufacturing. The reformation will help in stabilizing the economic stability of the poor region and developing regions However, it is not that easy to execute these reformations and accomplish the set goal easily (Schleiff et al., 2020). The prevalent system of administration is tough to change and reformation in the public sector needs not only modifications in the internal bureaucratic matters but also raising voice which is quite a task and thus imposes challenges on the pathway of reformation (Acemoglu et al., 2021). Issues are also faced at the time of implementation of new policy and thus are another barrier that comes as an obstacle in implementing reformation effectively and efficiently.