The determinants of the crises upon the technology firms in turkey Essay

The determinants of the crises upon the technology firms in turkey - Essay Example The business cycle or economic cycle refers to the ups and downs seen somewhat simultaneously in most parts of an economy. The cycle involves shifts over time between periods of relatively rapid growth of output (recovery and prosperity), alternating with periods of relative stagnation or decline (contraction or recession). These fluctuations are often measured using the real gross domestic product. To call those alternances "cycles" is rather misleading as they don't tend to repeat at fairly regular time intervals. Most observers find that their lengths (from peak to peak, or from trough to trough) vary, so that cycles are not mechanical in their regularity. Since no two cycles are alike in their details, some economists dispute the existence of cycles and use the word "fluctuations" (or the like) instead. Others see enough similarities between cycles that the cycle is a valid basis of studying the state of the economy. A key question is whether or not there are similar mechanisms that generate recessions and/or booms that exist in capitalist economies so that the dynamics that appear as a cycle will be seen again and again. Now let us closely observe the main types of business cycles enumerated by Joseph Schumpeter and others in this field have been named after their discoverers or proposers: 1. The Kitchin inventory cycle (3-5 years) -- after Joseph Kitchin. 2. The Juglar fixed investment cycle (7-11 years) -- after Clement Juglar. 3. The Kuznets infrastructural investment cycle (15-25 years) -- after Simon Kuznets, Nobel Laureate. 4. The Kondratiev wave or cycle (45-60 years) -- after Nikolai Kondratiev. Edward R Dewey, who formed The Foundation for the Study of Cycles, studied cycles in everything -- including economic data.... The paper tells that in the Juglar cycle, which is sometimes called "the" business cycle and is the main focus of this entry, recovery, and prosperity are associated with increases in productivity, consumer confidence, aggregate demand, and prices. In the cycles before World War II or that of the late 1990s in the United States, the growth periods usually ended with the failure of speculative investments built on a bubble of confidence that bursts or deflates. In these cycles, the periods of contraction and stagnation reflect a purging of unsuccessful enterprises as resources are transferred by market forces from less productive uses to more productive uses. Cycles between 1945 and the 1990s in the United States were generally more restrained and followed political factors, such as fiscal policy and monetary policy. Automatic stabilization due the government's budget helped moderate the cycle even without conscious action by policy-makers. Because the periods of stagnation are painfu l for many who lose their jobs, pressure arises for politicians to try to smooth out the oscillations. An important goal of all Western nations since the Great Depression has been to limit the dips, and until 2001 or so, a comparable period of economic malaise was avoided. Government intervention in the economy can be risky, however. For instance, some of Herbert Hoover's efforts (including tax increases) are wide, though not universally, believed to have deepened the depression. This was perhaps because his ideas were uninformed by Keynesian economics.

Macro Environment Pepsi Essay Example | Topics and Well Written Essays - 750 words

Macro Environment Pepsi - Essay Example The major factors of social and political organization within the vastly diverse population are language, religion and caste. The economy of India is the fourth-largest in the world as gauged by purchasing power parity (PPP), with a GDP of US $3.36 trillion. When measured in USD exchange-rate terms, it is the tenth largest in the world, with a GDP of US $692 billion (2004). (Kapoor, pp 3-5) India was the second fastest emergent major economy in the world, with a GDP growth rate of 8.1% by the end of the first quarter of 2005-2006. Nevertheless, India's massive population results in a comparatively low per capita income of $3,100 at PPP and is classified as a developing nation. For most of its independent history India has adhered to a socialist-inspired approach, with stringent government control over private sector participation, foreign trade, and foreign direct investment. Since the late 1980s, India has slowly opened up its markets through economic reforms by decreasing government controls on foreign trade and investment. Privatization of public-owned industries and opening up of certain sectors to private and foreign players has advanced slowly in the midst of political debate. India has a work force of 496.4 million of which agriculture forms 61% of it, industry 18%, and services 22%. The unemployment rate is at 9%. Agricultural produce include rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes; cattle, water buffalo, sheep, goats, poultry and fish. Major industries include textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum and machinery. Over the last 10 or so years, India has also capitalized on its huge number of highly educated people who are fluent in the English language to become a vital location for global companies outsourcing customer service and technical support call centers. It is also a main exporter of skillful workers in software services, financial services, and software engineers. India's key trading partners are the United States, the European Union, Japan, China, and the United Arab Emirates. The standard of living in India is continuously improving and beverages play very important role in the lives of Indians. Consuming soft drinks with fast food meal is a common practice in the country. The single most common factor which is used to measure standard of living is the per capita purchasing power parity (PPP) adjusted gross domestic product (GDP). In 2003, the per capita PPP allocated GDP for India was US$ 3100. These statistics can be compared to $32,000 for the USA, $4,800 for China and roughly $26,000 for most western European countries. With one of the most rapidly growing economies in the world, clocked at an average growth rate of 7% between 2000-2003, India is swift on way to becoming a large and globally important consumer economy. (Kapoor, p -4) The Indian middle class, touted to be anywhere between 100 and 300 million depending on the data used, is rapidly getting used to the Western consumer lifestyle. Despite massive inequalities, the standard of living of the average Indian is gradually but certainly rising and, if existing trends continue, will grow to be around one third that of the developed world (in PPP dollars) by the middle of the 21st century. The living standard in India can range in