Week 4 Online Assignment

Group 3

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Q1

Let's assume that CEO is running office stationery supply in special offices, Institutions, and
government departments.

Challenges and Issues

 Product scarcity: In office supply business, scarcity of products can lead to huge problem.
With the shortage of any item, entire supply channel of product can be interrupted.

 Geographical location: Choosing an unfavorable area from which the material to be

imported can affect the profitability of the firm

 Quality of raw material: Raw material is the blood of any business, so it is vital to choose
perfect quality of raw material.

 Data regulation: Irregulating of bookkeeping and improper maintenance of record

history can halt the organization.

 Delivery: Delivery of products and services is also a critical part in business as one must
be prompt as well low-cost delivery options available

Solution for the above problems or risk

 Proper stocking of products: For smooth running of business, bulk availability of goods and
services is boon for organization in case of emergency.

 Favorable geographical area: In order to reduce the expenditure of the firm, it is necessary to
choose suitable area of business where natural resources are easily available.

 Regular quality check of material: Business doesn’t have to compromises with the quality of
materials. If they provide best quality products, then it will ultimately attract customers.

 Proper record: To solve the problem of distribution of efficiently goods and services, proper
data management is highly imperative.

 Fast delivery approach: Transportation, courier services and own vehicle for delivery
options are very helpful, and it should be quick and reasonable delivery.

REFERENCES
Demographics of India (2022, June 8). In Wikipedia .
https://en.wikipedia.org/wiki/Demographics_of_India
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Q2
India has a huge population of about 130 crore people which is the second-largest population in the
world after China (The Economic Times, 2021). According to the UN’s World Population Prospects 2019
report, India is projected to become the most populous country by 2027 surpassing China, and host
1.64 billion people by 2050. The fertility rate in the country still lies in the range of 2.1-4

India constitute highest percentage of demographic dividend (working age population 15 to 64)than
non working age population. According to national family health survey report of government of India
India have sex ratio of 1020 women for 1000 males in India. This will ensure a smooth transition in
demographic process ..how ever, countries like Japan and Russia facing shrinking population along
with declining sex ratio may adversely effect their demographic equilibrium.

When compared to other countries:

1) India has the advantage of having a large demographic dividend.

For instance countries like Japan, and eastern European countries (Bulgaria, Latvia, etc)observed
shrinking population (depopulation)

2) By 2050, according to various reports, India will become the most populous country in the world.

3) India can become the engine of economic growth.

4) Current global leader countries like USA, Russia and European countries will face a shortage of
demographic dividends and may decelerate their economic growth.

5) Countries like China, India, and Bangladesh will come to the forefront of the global leadership
board.

6) In India, less aging population reduces dependencies and reduces social security expenditure
however countries like most European countries will be drawn into the bracket of highest revenue
expenditure with low capital expenditure which further slows down economic growth.

Impact:

1) Large demographic dividend fuels economic growth.

2) Cheap labor attracts a lot of foreign direct investments and becomes a large investment based
market economy.

3) Large demographic dividend opens a window into great economic opportunities.

4) In this era of globalization, a huge share of the diaspora is an advantage to India..( to become the
great receiver of remittances, to become a global leader in soft power diplomacy, India us nuclear deal)

5) A global supplier of cheap but quality products.

Is population growth of a country necessarily brings economic growth??

Countries like Nigeria, and Algeria have large populations but do not have enough economic growth.
Countries like the African nation such as Sudan, Nigeria, and Algeria don't have sufficient economic
growth despite having huge populations. So it concludes that economic growth is not confined to the
idea of population.

It needs a huge investment in human capital. Poor countries like most African nations suffer from a
lack of infrastructure in health and education. Which pulls them back into a poverty state. more or less

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this is also the same with the case of India .....as it lays less emphasis on human capital expenditure
like health, and education. So in order to reap demographic dividends sufficient development in
education health, digitalization, financial inclusion, etc are needed.

REFERENCES
The Economic Times. (2021, May 12). India may overtake China as most populous country sooner than
UN projections of 2027: Report. https://economictimes.indiatimes.com/news/india/india-may-
overtake-china-as-most-populous-country-sooner-than-un-projections-of-2027-
report/articleshow/82576669.cms?from=mdr

The Economic Times. (2021, May 12). India may overtake China as most populous country sooner than
UN projections of 2027: Report. https://economictimes.indiatimes.com/news/india/india-may-
overtake-china-as-most-populous-country-sooner-than-un-projections-of-2027-
report/articleshow/82576669.cms?from=mdr

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Q3 will be answered in two sections A and B.

A) The term Global Economy refers to the aggregate of economic activities that occur both within and
across countries (Wikipedia, 2019).

Effects of urbanization on the Global Economy :-

 First, let us discuss the benefits of Urbanization that have impacted the global economy:

1) Improved Global Transportation- With the help of urbanization, governments are putting
increasing emphasis on developing strong transportation networks so that citizens can conveniently
commute and public/private sector companies may acquire, sell, deliver and ship items inside the
country as well as around the world. Improvements in transportation systems have resulted in less air
freights, greater rail networks, more trucks and larger cargo ships allowing countries to trade globally
more effectively and efficiently.

2) Better Communication System- The communication system is greatly impacted by urbanization. It

has never been easy to speak with anyone, anywhere in the world but thanks to advancement to the
internet which enables countries to establish close ties with one another and businesses to simply
build headquarters in one country and grow their operations globally to increase profits.

3) Technology Advancement - Advances in technology lower the cost of transportation,

communication between countries, making global procurement of raw materials and other inputs
easier. Patented technology promotes globalization since the company that owns the patent cab
profit from foreign markets with little competition. The global village has emerged as a result of
information technology. The internet, for instance, has lower the barriers of time and place in
economic transactions. Buyers and sellers can now transact at any time from any location on the earth.

4) High Standard of Living - Due to urbanization persons enjoy a better quality of life in the urban
cities or some high-tech cities where they have more job opportunities, high income level jobs, better
medical facilities, strong connectivity, luxury items, necessities and comforts to meet the wants and
interests and demand of the people. All these factors help them to maintain a good and healthy
lifestyle.

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 Second, to answer the question, lets discuss the effects of urbanization on the Global
economy:

1) Higher gross domestic product (GDP)- The World Bank (2020) states that “More than 80% of the
global GDP is generated in cities.” Evidently, the increase in urbanization will have a positive impact
on the growth of GDP for a nation. This implies that the increase in urbanization throughout the globe
will positively impact the global economy.

2) Increase in the number of Multinational corporations (MNCs)- Urbanization has increased the
convenience of shipping, logistics, and distribution even across a country’s boundaries. This has
encouraged trade overseas and given rise to several MNCs, which positively contribute to the increase
in revenue for the global economy.

3) Eliminated physical transportation and communication boundaries significantly, easing business

processes- As urbanization is the development of advanced cities, the improved infrastructure and
modes of communication/transport have almost eliminated the physical trade boundaries between
nations. Thus, a product can be easily manufactured by acquiring raw materials from one nation, parts
produced in another, assembled in the third, and sold globally. This has up-scaled the global economy.

4) Allowed the emergence of new economies- New economies have emerged due to the
advancement of technology, ease of transport and communication, and globalization. This means
added revenue from the global-economy viewpoint.

B) Trade-offs for Rural area and City

 Trade-offs for rural areas

1) Significant decrease in population- The migration of people from the rural areas to urban areas in
search of better opportunities and lifestyle has isolated these areas. This has led to an imbalance in
resource availability and caused rural areas to remain in their current state, that is, stagnant in terms
of growth.
2) Lack of basic infrastructure- The development of rural areas is neglected because the cities
primarily contribute to the global economy (The World Bank, 2020). Thus, the people face difficult in
obtaining proper transportation, telecommunication, schooling, and health facilities.
3) Considerable reduction in employment opportunities- As most people migrate, very few are left
behind. This hampers the growth of businesses in rural areas and thus results in insufficient
employment opportunities.

 Trade-offs for cities

1) Increase in pollution- Urbanization adds to the number of businesses and factories with a
compromise on the environment. A higher proportion of lands are used as land-fills and the water
bodies are polluted as well. For example, disposal of radioactive, plastic, and electronic waste
continues to be a problem in cities. A toll on the environment can also mean the spread of diseases.

2) Overcrowding and population explosion- Cities are full of people and population has become a
concern. A high aging population may also mean low GDP. Overcrowding brings several other issues
with it, which are discussed below.

3) Increase in prices of basic necessities- Due to high population, there is a competition for basic
goods and services, such as Internet spectrum. This causes the prices to increase considerably and
may cause inflation if the salaries do no increase hand in hand.

4) Unemployment- Overcrowding causes a decrease in employment opportunities as there is a

significant competition for each job listing out there.

5) May cause recession- If the prices of commodities keep increasing due to shortage and population

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explosion and the salaries remain constant due to excessive and cheap labor available because of high
population, recession is inevitable.

6) Traffic congestion- This is a major issue that not only impacts the lay person and everyday
commuter but also business. For example, Delivery and logistics become unpredictable and delayed
due to traffic congestion.

7) Natural resource shortage: There is a shortage of water, land, and food grain. Although they can be
imported, this is a cumbersome process and expensive due to transportation. For example, to bring
water from rural areas additional and expensive pipelines have to be laid out.

REFERENCES
World Economy. (2022, May 19). In Wikipedia. https://en.wikipedia.org/wiki/World_economy

The World Bank (2020, April). Urban Development.

https://www.worldbank.org/en/topic/urbandevelopment/overview#1