The Economics of Natural Resource Availability - Essay Example

The Economics of Natural Resource Availability In economics the application of all such variables ends with the word business. The demand and supply of products and services the production and distribution of goods all depends on different types of businesses, mainly the two types of business to be considered that are the sole proprietorship, and partnership. This partnership business may extend from two or more partners, either he or she can buy the running business which is already existed or to start new one. In business economics one should talk about the market structure, entering in any business every business management must design the policy or strategy for the future profits and revenues. Every market strategy should cover the price and output strategy, the reaction of price and output strategy of other competitors in the market. There are large numbers of applications of business in this technological and advanced scenario. There are web and net facilities to all one should have an access to the internet facilities for business helps in advertising the introduction of the products and new designs The computer programming one of the most important things to be consider the work based on software’s introducing different software. Small industries at small scales means the garment factory leather and so on, small educational institutions such as small schools, investments in small business of departmental stores, whole sellers and retailers. QUESTION 2: FOCUS ON ONE MICROECONOMICS ASPECT AND A MACROECONOMIC ONE FROM THOSE YOU HAVE DESCRIBED IN QUESTION 1 AND EXPLAIN USING ECONOMICS THEORY HOW YOU WOULD IMPROVE THE RUNNING OF YOUR COMPANY. Keynesian Economics: Keynes describes the study of unemployment with the business cycle he gives the study of aggregate demand. In Keynes view, using applying the fiscal policy can reduce the fluctuations in business cycle and monetary policy fiscal policy is the government policy and monetary policy concerned with the policy by central bank and the government departments too. The Keynesian economics is based on the 20th century ideas. In Keynesian view there are many macroeconomics variables, which have an impact on the individual’s microeconomics functions. In Keynesian economics the discussion of aggregate demand with the individuals demands for the goods. In his view there are many changes bring by the government by implementing the fiscal and monetary policy to make control over economy and prevent it from downfall. Supply Side Economics: The supply side economics is concerned with the implementation of monetary and fiscal policy it focuses on the monetary policy the study of money demand and its supply monetary policy is only concerned with the changes in the money supply not with the interest rate, the changes in interest rates are managed by the fiscal policy. The value of money is measured by its comparison to gold, fiscal policy deals with he changes in interest rates the investments made by the government fiscal policy expresses the says law which is that the depressions in the economy are not due to the changes in demand and shortage of money supply. QUESTION 3: MACROECONOMICS CONDITION The economic development of countries are the development and wide are of their economic activities there are many economic factors such as the macro economic factors like large number of investment has great impact on the economic development. The effective system of goods and services may result in the economic development of the country. Large number of functions associated with the industrialization and number of increased financial institutions are concerned with the changes in the whole economy because macro economic factors are those factors, which affects the economy as a whole. Now the developed countries have many economic developers to maintain the good health of the economy. The international economic development council was formed by the United Nations and its head office is in Washington. The development t economies are the branch of economics, which deals with the development of the countries and changes in the macro economic factors to reach the development. The reason for studding the development economies is to study the economic growth of the country and those factors which are responsible for the economic growth of the country .the development of economies involves the theories various mathematical methods to develop the economy and policy implementation, macro-economic has the major role in every country’s economic development. According to the Census of Manufacturing Industries there were 924 units engaged in the manufacture of Food and Beverages. According to the UNIDO it is the largest manufacturing industry of the country. Value of production stood at Rs.74.094 billion and manufacturing value added (MVA) stood at Rs.24.287 billion. Food processing is a relatively capital intensive industry. The share of food in the manufacturing industry has declined from 22.66 per cent in 1981-82 to 19.76 per cent in 1990-91. Figures for 1995-96 are not available. The growth rate in the food industry has been estimated at 10.00 per cent per annum. The most rapidly growing items are dairy products fish processed, bakery items, sugar, biscuits and confectioneries, fruit juices and other soft beverages. Rapid export growth has characterized fish preparation, fruit preserves, dry fruits, some beverages and sugar, and honey preparation. Food products (except rice) do not however, make up a significant proportion of Pakistani exports and there is a considerable potential for expanding such exports, especially to Europe and the Gulf region. As many as 86 food manufacturing companies are on the list of Karachi Stock Exchange out of total 783 companies (end January 1997). The paid-up capital of food companies stood at Rs.7.519 billion as end December 1996. They include some of the biggest groups in the market such as Bawany, Crescent, Habib, Fecto, Premier, Lakson, Burma Oil (producing vegetable oils) Brooke Bond, Clover Foods, Lever Brothers and National Foods. The food manufacturing firms have generally performed well on the stock exchange in 1994-95 with capitalization registering an above average increase. Net profit as percentage of share holder's equity has averaged at about 22 per cent during 1990-93 for the sugar and allied group, and about 25 per cent for the vegetable oil groups. The net profit ratio for the tobacco sub sector has been 30 per cent. This compares well with the overall net profit ratio for KSE companies during this period, and averages to about 19 per cent. Thus, there is a significant scope for investment expansion in the food manufacturing sectors. Domestic demand is buoyant and export prospects are bright-although they are yet to be adequately explored. Several major companies including well known multinationals have substantial investment commitments and there are also a large number of middle sized upward mobile domestic firms. Scope, thus exists both for the establishment of wholly owned subsidiaries. There is also a need for technology transfer agreements which can facilitate the access of Pakistani companies, to modern technology and know-how in the areas of processing, preservation and packaging of food manufactures. Several Pakistani firms have developed ambitious modernization programs. Food Manufacturing Industries Listed on the Karachi Stock Exchange: No. of Companies Paid-up Capital Market Value Sugar and Allied 38 466.594 4,430.194 Tobacco 7 541.011 1,823.451 Edible Oil 19 395.702 257.125 Food & Allied 22 1,921.244 14,391.079 86 7,519.551 20,901.850 Pakistan's Food Potentials According to an eminent agriculture expert, Pakistan through intensive cultivation can increase its cereal grain production more than three times the amount currently produced in the country. The present cereal production is around 26.3 million tones. A production target of 54 million tones of cereal production would be sufficient to meet Pakistan's entire food needs and also to enable it to be the major exporter of grains to South Asia and the Middle East. Thus Pakistan has immense potential to turn into the food granary for the countries of Asia and Africa in view of its vast potential of water resources and its biggest canal system in the world. Moreover, Pakistan's soil and climate are conducive to year round crop production. We briefly present the food potential and their future development discusses the potentials of food resources of their future development. Major sources of dietary proteins are cereals, pulses, fruits, vegetables and animals. In the case of rice Pakistan already exports more than a million tones of rice to Middle Eastern and South Asia countries. Against the requirement of 20 million tones the production of wheat would be less than 18 million tones this year. Per Capita Availability of Food (Kg./per capita/year) 2005-06 207-08 2008-09 2009-10 2010-11 Cereals 149.61 161.11 167.51 153.31 154.60 Pulses 5.66 6.82 5.00 5.65 6.21 Sugar 26.77 28.10 31.65 31.27 30.80 Milk 111.11 113.26 115.76 118.38 121.48 Meat 17.98 18.99 20.29 20.85 21.38 Eggs 2.30 2.25 2.20 2.40 2.45 Edible Oil 11.83 12.50 10.50 12.19 12.60 Caloric & Protein Availability: Calories per day 24.35 25.95 26.29 25.44 25.70 Protein per day 63.44 67.66 68.20 66.12 67.88 Production of Pulses and Area Area: 000 Hectares Production: 000 Tons 2010-11 2009-10 Pulses Area Production Pulses Area Production Gram 1102.3 767.1 Gram 1057.4 699.5 Masoor 64.8 37.1 Masoor 67.9 39.3 Moong 195.4 88.9 Moong 196.9 91.5 Mash 49 25.8 Mash 46 25.2 Total 1411.5 918.9 Total 1400.2 855.5 Source: Economic Survey of Pakistan 2010-11 Production of Fruits in Pakistan 2010-11 Fruits Area Production Mangoes 93,000 916,000 Dates 75,000 537,000 Guava 56,800 455,000 Bananas 26,000 94,000 Apple 44,000 573,000 Apricot 12,100 189,000 Peaches 4,400 46,500 Pears 2,800 35,600 Plums 6,700 78,400 Grapes 8,700 74,300 Almonds 10,700 49,100 Pomegranates 6,400 104,200 Other Fruits 96,800 1,104,600 REFERENCES 1. Adelman, M.A. (1993). The Economics of Petroleum Supply: Papers by M.A. Adelman 1962-1993. Cambridge, MA: MIT Press. 2. Barnett, H.J. and C. Morse (1963). Scarcity and Growth: The Economics of Natural Resource Availability. 3. El-Mokadem, A.M., D. Hawdon, C. Robinson, and P.J. Stevens (1984). OPEC and the World Oil Market 1973-1983, Eastlords Publishing. 4. Horsnell, P. and R. Mabro (1993). Oil Markets and Prices: The Brent Market and the Formation of World Oil Prices. Oxford: Oxford University Press. 5. Stevens, P. (1993a). Oil and Politics: The Post War Gulf Royal Institute of International Affairs, Middle East Programme Report, London. 6. Economic Survey of Pakistan, 2010 – 2011. 7. Economic Survey of Pakistan, 2009 – 2010. Read More