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ÞThe Nature of Tourism Tourism can be defined as the temporary movement of people outside their normal place of work and residence, together with the activities undertaken during their stay at those destinations and the facilities created to cater for visiting tourists, Tourism is distinguishable from travel undertaken in the past by its mass character, and is now not a luxury only for the upper classes. Tourism is a luxury, with most people in the developed world and increasing numbers of people living in developing countries engaging in tourism at some time in their lives. Tourism is accepted and accustomed, and has become a good indicator of economic status and is considered necessary for good health and personal being. ÞDefining Tourism. Tourism is a productive activity that encompasses human behaviour, use of resources, and interaction with other people, economies and environments. It involves physical movement of tourists to locations other than their normal place of living. It involves consumption of goods and services provided by organisations in the process, and generate a mass productive activity, employment and income. Tourism is a highly complex productive activity. It involves the activities and interests not only of large transport undertakings, owners of tourist sites and attractions, and of various tourist services at the destination but also of all levels of government. Each of these serves the resident population and visitors. For countries delivering the tourist product it makes a significant contribution to GDP, employment, investment and FOREX earnings. It is a major catalyst for economic growth and structural change. It also diversifies employment prospects. ÞTourism is dependant on a large number of economic activities supplying inputs to the industries that directly cater for tourists and producing consumer durables used for tourist activity. Characteristics of tourism are: - Constantly operating industry, seasonal fluctuations - Labour-intensive industry - Lack of barriers to entry - Small business predominates -...
pages: 12 (words: 3108)
comments: 0
added: 02/17/2012
Christopher Williams Economics Thursday, 21 November 2002 Q. Explain what is meant by monetary policy? (b) Discuss the monetary policy measures a government and/or central bank may take to stimulate economic activity. Monetary policy refers to the use of interest rates and the level of money supply to manage the economy. Monetary policy may be used to increase the level of economic activity (reflationary policies) or to decrease the level of economic activity (deflationary policies). A relationship therefore exists between monetary supply and the rate of interest. Economic theories have been suggested as to the extent of this relationship. Nevertheless, the monetary authorities may use various monetary policy measures to stimulate economic activity in the country. The Monetary authorities can establish either the level of money supply or the rate of interest, not both. If the demand for money (liquidity preference) does not change, any change in the supply for money will alter the interest rate. (Refer to monetary policy 1)The diagram supplied shows that an increase in the money supply from MS to MS1 will cause a fall in the interest rate from R to R1. Assuming the monetary authorities fixed the supply of money. A change (increase or decrease) in the demand for money (liquidity preference) will effect a change in the interest rate. The diagram supplied shows that a decrease in the demand for money (L to L1) will reduce the interest rate from R to R1. (Refer to monetary policy 2) Varying views exits as to whether manipulating the interest rate or money supply will easier stimulate economic activity. The Monetarists maintain that a change in the supply of money will have a direct and proportionate effect on interest rates. They believe due to the shape of the Long Run Aggregate Supply curve (LRAS), the price level can be altered but output...
pages: 5 (words: 1117)
comments: 1
added: 12/28/2011
Financial markets play a crucial role in the operation of modern market economies. They provide a return for those who have excess funds or savings, while making loan funds available to those who need additional money. Not only is the financial service industry one of the largest industry in Australia, but its actions also influence all other industries because of its key role in the economy. For this reason, the deregulation of the financial sector in Australia since the 1980s has brought far reaching consequences. Financial markets are commonly divided into two main types - • Primary markets involve direct transactions between purchases and the initial seller of some sort of security. A security is a document entitling its owner to a financial asset, such as a share in a company or interest payments on a debt. When a company is first floated on the stock market, this represents a primary market transaction. Companies that wish to issue securities to the general public via a primary market must follow very specific procedures, such as releasing a prospectus for shares. In a primary market, the money received from investors goes to directly to the company. The release for a prospectus for new Telstra shares is an example of a primary market activity. • Secondary markets involve transactions with securities that have been issued on a primary market some time in the past. The vast majority of financial market transactions are on secondary markets, with existing securities. The company that first issued the security has no involvement with secondary market transactions. For example the Australian Stock Exchange is one of the largest secondary markets in Australia. In various ways all financial intermediaries perform the same basic information – they channel the excess savings from the (net savers) in the economy to those who wish to borrow...
pages: 7 (words: 1911)
comments: 0
added: 02/19/2012
On November 10, 2001 the world ultimately granted China membership into coveted trade organization, the WTO. Not since Deng Xiaoping's economic reforms of 1978 has China made such a giant leap toward the creation of a market economy. The World Trade Organization (WTO) finally opened its door on Saturday to China, the world's most populous ?C and one of the most robust ?C economy, sending a positive signal to the world economy loitering on the brink of a full-blown recession?(Xinhua, Financial Times) With the completion this fifteen year negotiation, China will now be forced to abide by international trade regulations so as to completely open its doors with ten years. WTO membership will provide countless economic benefits to China's burgeoning economy but the initial adjust period will certainly cause massive unemployment and possible political unrest. With economists projecting that if current growth rates continue the Chinese economy will surpass Japan, China is on the brink of dominating the Asian economy. Although there are many circumstances that may derail this progress, the Chinese now have the tools necessary to develop the powerhouse economists have been citing for the past decade. China's entry into the WTO was particularly slow (fifteen years of negotiating) for a variety of disparities; from trade barriers to individual market reforms. During negotiations the American delegation was particularly stringent on removing China's tariff and non-tariff barriers to trade. For instance, so as to protect China's infant car industry, the government established a one hundred percent import duty on all foreign automobiles. Non-tariff barriers such as quotas and licensing also made business difficult for foreign companies. To purchase foreign appliances Chinese citizens were often forced to purchase a license to have the unit installed. These anti-competitive devices needed to be abolished so as to comply with the spirit of fair competition...
pages: 7 (words: 1804)
comments: 3
added: 03/16/2011
Political, Economic & Social effects of Accounting Standard Setters 'The view that accounting standard setters consider the economic, political and social consequences of accounting standards is consistent with the view that accounting reports, if compiled in accordance with accounting standards and other generally accepted principles, will be neutral and objective' SYNOPSIS Objectivity and neutrality are the ultimate goals of general purpose financial reporting. However there are many factors involved that make this goal almost impossible to attain. Economic, political and social issues are huge influences on the Accounting Standard setting process, and these influences spill over into everyday accounting, with personal gain often ahead of reliability and objectivity. Users of financial reports have demands that need to be satisfied, and regulatory boards involved in Standard setting have done their best to ensure that information is clear and reliable. Considering these factors, Accounting does not exist in a vacuum, Accountants are human beings, not robots and the profession has strict guidelines and heavy penalties for unprofessional or fraudulent activity. It is thus clear that every attempt is made to acknowledge the operating societal factors, gauge the impact they have on different industries at different times and move from that point. The result than, has to be, the best attempt at a neutral and objective report by the professional accountant. Economic, political and social issues are powerful driving forces within any society. These issues therefore need to be focused on when major decisions in industries, are being made. One industry that heavily relies on, and incorporates economic, political and social issues in its' decision-making, is that of Accounting. The Accounting profession is made up of many standards and regulatory boards that govern the way in which entities maintain their general-purpose financial reports. Accounting standards set minimum benchmarks of the quality required in financial reporting. They specify that...
pages: 9 (words: 2267)
comments: 2
added: 11/13/2011
It was a terrible time for the people in the United States' Great Plains when a seemingly endless drought followed excessive plowing of the soil and caused the earth to let loose it's hold on it's very skin. The stripped red soil boiled up into the air, infiltrating every crevice it could find, inanimate or alive. The Dream Wheat was a treasure crop in the 1920s. With more and more farmers owning tractors and combines they were seeing greater yields and profits than ever before. As a result they planted more wheat, and still more wheat. They expected the world market to continue buying it up as they had in the first few years of rapid production. 1931 saw record wheat crops and profits. Things were looking good. The Market Over Flow The market became glutted with wheat and prices plummeted in July of 1931. Farmers who made 68 cents a bushel in July 1930 made scarcely 25 cents a bushel a year later. Many farmers went broke and abandoned their fields all across the region. Throughout the decade people would be starved out of their homes. John Steinbeck's novel, "The Grapes Of Wrath" was published in 1939 and offers a vivid description of this desperate time. "And then the dispossessed were drawn west- from Kansas, Oklahoma, Texas, New Mexico; from Nevada and Arkansas, families, tribes, dusted out, tractored out. Car-loads, caravans, homeless and hungry; twenty thousand and fifty thousand and a hundred thousand and two hundred thousand." John Steinbeck, "The Grapes Of Wrath". The Ruined Land The other part of the problem was that the grasslands were considered worthless and were plowed under so that farmers could grow rich off of wheat. But it turned out that the roots of those scrappy dried out plains grasses were all that was holding the earth together. Without their...
pages: 4 (words: 955)
comments: 1
added: 01/15/2012
Why was there economic prosperity in American in the 1920's? I know that America on it's surface was prosperous during the 1920's. I know this because of the physical signs, and the evidence I have found supporting this concept. Some of the physical signs of the then prosperity are evident today, like the skyscrapers and Empire State building. There were the inventions of manufactured fabrics and materials such as Bakelite, artificial silk and Cellophane. Airlines carried almost half a million passengers a year, which compared to Europe at the same time, was a massive number of people. In this essay I will analyse all the reasons behind the economic prosperity in 1920. World War 1 assisted America's latter prosperity. Throughout the war American industry benefited, because countries that couldn't buy goods from Europe, did so from America. And along with this Europe bought products from America, products that they weren't producing while they were fighting. Furthermore, during the First World War, American banks lent money to their European Allies. In the 1920's, this was being paid back with interest. The war had also led to advances in technology, such as mechanism and manufactured materials. Production of Iron Ore, coal, petrol and wheat and exportation of chemicals, wheat, iron and steal all had increased considerably by the end of the war. By the end of the war, America had decided to isolate itself from the problems of Europe, and set itself about making the most profit in business. This isolationism built up the confidence of the American people. An increase in personal wealth, demand and output production all helped America's prosperity. Banks were eager to lend money to businesses and individual's. With this easy money, and the introduction of hire-purchase schemes, the demand for products increased. Consumer spending was incredibly high, which is reflected...
pages: 4 (words: 1072)
comments: 0
added: 12/25/2011
The economy is affected by many factors that determine if it is strong or weak. These factors have to do with buyers consuming goods and services and at what rate they do this. Do the goods and services that are consumed by people created wealth, jobs and a better overall economy for a country. Throughout history some economies have evolved faster and stronger than others. Policies that the government places on industry, technology and the environment can all affect the prosperity of an economy. Of the factors that affect economic growth the industry of oil and gas is one that holds a stronghold in the world's and America's economy today. Oil and gas is a resource that can be used up if not conserved properly. That is why OPEC was formed, as well as organizations such as NAFTA to help regulate trade of these commodities and bring organization to a disorganized status. O.P.E.C. which stands for Organization of Petroleum Exporting Countries, is made up of 13 countries: Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Qatar, Indonesia, Libya, United Arab Emirates, Algeria, Nigeria, Ecuador, and Gabon. O.P.E.C. was founded in Baghdad, Iraq in September of 1960. It was organized in response to oil producing countries that did not consult with the Middle Eastern oil states before lowering their crude oil prices. The producers feared that other countries would establish monopolies. The aim of O.P.E.C. was to create a universal price between the countries, in order to ensure peace between oil producers throughout the world. Countries representing OPEC all live and die by the constant production of oil. While this factor is used to stimulate their countries economic growth, it should be used to stimulate the building of a country's infrastructure. Oil-rich countries should use the positive affect oil has had on their countries to...
pages: 4 (words: 1001)
comments: 2
added: 01/10/2012
Globalization is a highly charged issue. It is considered both good and bad, depending on the angle you are looking from. Globalization enables the flow of international information that facilitates trade and investment. The rapid decrease in the cost of telecommunications and transportation made human interaction across countries extremely simple. The international flow of knowledge of management practices and methods of work organization is another benefit of globalization. A major advantage of globalization is that countries that have a deficiency in a specific resource or skill can make use of foreign skills and resources to satisfy their needs. Besides, efficiency will improve if production of certain goods is done by those who can do it better, hence achieving highest quality at a lower cost. Globalization diminished national borders –the fall of protection barriers has stimulated free movement of capital and enabled companies to set up several bases around the world. However, on the other hand, globalization can cause destruction. The fall of borders results in the powerful dominating the weak. A globalized world is not a very democratic world since it belongs to the powerful dominant countries. They will impose their will on the rest. "In practice, the decision-making process at the WTO is used to advance the agendas of the majors, and particularly those of the USA and Western Europe." Globalization means interdependence, but unfortunately developing countries are forced to depend on developed countries and developed countries are using it as an opportunity to take advantage of developing countries. Large corporations tend to produce their products at countries where labor is cheapest, health and safety standards are the weakest, and environmental laws are least restrictive in order to minimize costs and maximize profits. Developed countries are trying to unfairly misuse the natural resources of underdeveloped countries. This means that poor countries run...
pages: 3 (words: 666)
comments: 1
added: 10/06/2011
The latter part of the nineteenth century was a time of unprecedented economic growth in the United States. The advances made during, and the effects of, the industrial revolution of the late eighteenth century put the US on a course for increased productivity and economic growth in the late nineteenth century. The nation now stretched across the North American continent from the Atlantic to the pacific coasts. Connected by railroad lines, transportation between the cities and far off areas of the nation now took days rather than weeks and months. The industrialized northeast was able to quickly and efficiently receive the resources it needed to manufacture goods and transport them for sale elsewhere. The west was also able to take advantage of the new transcontinental railroad as the abundant resources of the nation now could be transported from coast to coast and all places in-between quickly and cheaply, increasing productivity and reducing prices. From different areas came cattle, fruits, vegetables, lumber, steel, coal, cotton, oil and much more. Abundance indeed. As productivity grew due to increased industry, American cities began to grow larger. Railroads once again provided a quick and inexpensive means of transportation for the ever-increasing number of people from all over the nation to take advantage of the ever-growing job market in the cities. American farm families flocked to the cities to work as well as millions of European immigrants. Between the 1870's and 1880's, eight million European immigrants came to the United States. The "unlimited immigration" policy at this time served to increase the size of the population and labor force. Immigrants provided cheap labor usually in factories and mines. The huge increase in the population raised production, and as the number of workers increased so did the number of consumers to purchase goods and services. Technological progress was crucial to...
pages: 3 (words: 566)
comments: 1
added: 10/04/2011
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