More on the agenda Stiffening legislation, increased competition and a focus on cost stability has triggered a de-risking of the global automotive value chain. Heightened competition between countries to attract new production facilities, as well as efforts to maintain their current footprint, has become the norm. In a world where the average vehicle production facility manufacturesunits annually, directly employs 3, workers and an economic spin-off which can reach 10 times this level, the stakes are high. To maintain long-term competitiveness, companies are likely to seek new ways to build vehicles for consumers with an eye to building greater financial stability, aka de-risking on a global scale.
Economists generally agree that economic development and growth are influenced by four factors: Highly developed countries have governments that focus on these areas.
Less-developed countries, even those with high amounts of natural resources, will lag behind when they fail to promote research in technology and improve the skills and education of their workers. Human Resources The skills, education and training of the labor force have a direct effect on the growth of an economy.
A skilled, well-trained workforce is more productive and will produce a high-quality output that adds efficiency to an economy. A shortage of skilled labor can be a deterrent to economic growth.
An under-utilized, illiterate and unskilled workforce will become a drag on an economy and may possibly lead to higher unemployment. Physical Capital Improvements and increased investment in physical capital - such as roadways, machinery and factories - will reduce the cost and increase the efficiency of economic output.
Factories and equipment that are modern and well-maintained are more productive than physical labor. Higher productivity leads to increased output. Labor becomes more productive as the ratio of capital expenditures per worker increases. An improvement in labor productivity increases the growth rate of the economy.
Natural Resources The quantity and availability of natural resources affect the rate of economic growth. The discovery of more natural resources, such as oil or mineral deposits, will give a boost to the economy by increasing a country's production capacity. The effectiveness of a county at utilizing and exploiting its natural resources is a function of the skills of the labor force, type of technology and the availability of capital.
Skilled and educated workers are able to use these natural resource to spur the growth of the economy. Technology Improvements in technology have a high impact on economic growth.
As the scientific community makes more discoveries, managers find ways to apply these innovations as more sophisticated production techniques.
The application of better technology means the same amount of labor will be more productive, and economic growth will advance at a lower cost.
Countries that recognize the importance of the four factors that affect economic growth will have higher growth rates and improved standards of living for their people. Technological innovation and more education for workers will improve economic output which lead to a better living environment for everyone.
Increases in labor productivity are much easier to achieve when investments are made on better equipment that require less physical work from the labor force.May 15, · Key Macroeconomic Factors That Affect Software Industry. Introduction This paper will analyze key macroeconomic factors that affect software industry and will identify challenges and opportunities exist in this the operating environment.
The revolution in IT is apparent by rising in number of new products available in the market place, including PCs, PDAs. Major Economic Factors Affecting the Industry. Porter's Five Forces. SAR I Conclusion. SAR II. Performance Analysis companies also use the same software and components as competitors in an effort to cut costs.
Many factors influence the demand for personal computers such as individual’s preferences as well as brand loyalty. Typical macroeconomic factors affecting the economy at a national or regional level include: On a national level, macroeconomic output is a country's gross domestic product, or GDP.
This includes everything the country produces and sells to generate income. the software development lifecycle will improve the success rate of software projects.
Introduction According to Pfleeger (), most software products are not . May 15, · Check out our top Free Essays on Macroeconomic Factors Affecting Software Industry to help you write your own Essay. Introduction This paper will analyze key macroeconomic factors that affect software industry and will identify challenges and opportunities exist in this the operating environment.