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"Strength and growth come only through continuous effort and struggle." As what Napoleon Hill said. It means that in order for a country to have a high economic growth, the people must have a determination and must struggle their problem.
An Economic growth is measured according to the ups and downs of GNP and GDP. Economic growth is a universal concern that includes all countries, rich or poor, in any environment or season. Rich nations strive to maintain their wealth and some share their blessings with the less fortunate countries while poor countries finds ways or strategies that will help them attain their vision of progress and prosperity.
Problems that confront nations are basic and urgent - they include health, food, education, and employment, housing and social justice. Most of the countries are experiencing these problems but the government is doing the best they can in order to prevent these problems.
It is important to know what economic growth is, without economic growth it is very difficult to make any meaningful and continuous decrease in poverty. This is especially important in developing economies.
This assignment is going to discuss about economic growth, which country has a slow economic growth and what are the problems they are encountering and what can be the solution for these problems.
2.1. Economic Growth
Economic Growth is measured according to the ups and downs of GNP and GDP. Increases in GNP and GDP may indicate economic development if growth is sustained and shared by the various sectors of society.
Increases in economic growth or GNP may also occur without economic development. Such growth may have resulted from the expansion of just one economic sector, such as the export sector and this can be misleading.
2.2. Country with low economic growth
The history of Haiti is unique. It is a country whose people were generated by the kidnapping and enslavement of hundreds of thousands of Africans by Spain and France in the 17th and 18th centuries. Haiti's people today are the descendants of these slaves. It is said that Haiti is a land of great misery and poverty but it populated by people of amazing strength and spirit, a spirit that inspires and amazes those who have experienced their calm nature.
Several native groups of the Caribbean occupied the island of Hispaniola for centuries prior to its discovery by Columbus in 1492. It is here, on the island that was later to become the Dominican Republic and Haiti, which he first landed. The native population was soon entirely eliminated through struggle and the introduction of European diseases and then came slavery.
Haiti was an island of wonderful rain forests and fertile plains requiring thousands of slaves to work the sugar cane and other farming industries. The forests were slowly eliminated over the years by lumbering, and thus exposing the mountainsides to irreversible erosion. Now, Haiti is environmentally devastated, its remaining brush forests are being consumed for cooking fuel.
Spain and France divided Hispaniola in the early 1700's; the western 1/3 became Haiti that is ruled by the French. Enslavement of the Africans continued until history took a strange turn; the slaves revolted in 1804, creating the first black republic. Unfortunately for the Haitians, the United States still condoned slavery. Haitian freedom could not be recognized in which they were isolated.
Northern and southern Haiti initially developed as 2 separate entities, ruled by all-powerful Haitian emperors. For the past 200 years, foreign commercial interests have continued to control Haiti's economy, creating a very small and dominant upper class. Haiti exists as a single political entity today that experienced dozens of leaders and dictators in which each one replaced by coup d'état.
From 1915 through 1934, the United States actually occupied Haiti in the interests of commercial control, killing thousands of rebels in the process. Today, Haiti has no significant health care for its poorest. Food is largely imported which are donated by the UN and other foreign philanthropies.
For now, things are peaceful, but at least 75% of Haiti's people remain unemployed and continue to live in the poorest country. Haiti is now considered to be one of the "least developing" of all the third world countries.
2.3. Problems faced by the country
As we all know, the economy growth of Haiti has been slow. Haiti is now known as one of the poorest and least developed country. They have struggled with problems such as continuous political confusion, health disasters, and environmental deprivation.
To start with, their problems when it comes to politics. Haitian politics have been argumentative. They have experienced political violence throughout the generation. Haiti has suffered 32 coups or overthrow. Haiti is the only country in the Western Hemisphere that undergoes a successful slave revolution. Haiti's largest slum is in Port-au-Prince in which the United Nation called "the most dangerous place on Earth. It is also said that Haiti is heavily corrupt. Every year most of the charitable support is taken by officials. The political people are also involved in various criminal businesses. Since 1980's, the leaders of the police and military have cooperated with illegal drug trade. In the recent years, the powerful people were arrested such as Michel François, the Chief of National Police were accused of drug smuggling. Until now, most of the people who corrupt and do drug dealing are not yet arrested.
Secondly, there problem in the environment, Haiti was an island of wonderful rain forests but the forest was cut down which causes soil erosion and flooding. Last 2004, over 3,000 people were killed because of the flood and at the same year, a tropical storm killed 3,006 people. Haiti was again pummeled by tropical storm last 2008. It produced heavy winds and rain and due to the weak soil, Haiti experienced massive flooding in which it diminished their resources. Recently, a devastating earthquake with a magnitude of 7.0 magnitudes struck and devastated Haiti. It is the country's most severe earthquake in over 200 years. An estimated 316,000 people were killed by this earthquake and buildings, homes and businesses were destroyed. The Presidential Palace was badly damaged. The Haitian Parliament building and National Cathedral were also destroyed. As many as one million Haitians were left homeless.
Lastly, there economic problem, Haiti is the poorest country in America. Haiti is falling behind other low- income developing countries. About 80% of the population was living in poverty. Haiti has 50% illiteracy and most of the college graduates immigrated to other country. Due to poverty, the children in Haiti are forced to work as an unpaid household servant. There is a high level of unemployment and underemployment, and the attendant frustrations have led many young people to join gangs, in which some appears to be involved to criminal elements such as drug traffickers.
2.4. Recommendation to the country
Some of the problems that Haiti has encountered are avoidable and some are unavoidable. The problem in politics which is the corruption and the dealing of drugs are based on the people that are in power. We cannot say that all the powerful people are committing crimes. We just have to think who are worthy of the power and the people who won't abuse it. As for the political leader, the people in Haiti choose you because they trust you so you must do what are the right thing and what will be the good thing for your people.
The problem when it comes to the natural disaster is unavoidable. The damage has already done. We can only avoid the number loss of life. We must prepare for the possible disaster that might occur. We must always be alert and listen to the news so that we will know what will come. Erosion and flooding can be prevented; we can start by planting trees and by not cutting the forest because this is one way that can help the people in Haiti. Other countries gave helping aid by donating money to Haiti, you can start by rebuilding houses and businesses.
Poverty is the most common problem faced by almost all the country. If both the people in Haiti and the political leader help each other, the economic growth of the country will be high. Thus, the country will have low poverty and less people who are unemployed.
"No matter how rich or abundant a country's natural, human or agricultural resources are, if the government or the person running the country is not competent, honest and concern about its people's welfare, economic growth will be in a slow pace." It means that the economic growth of a country does not only base on its natural resources or the product that it produces but it also depends on the relationship of the people and the government.
Economic Growth is important, one reason is because it helps in reducing poverty and reduces unemployment. Economic growth is essential to improve government's budget deficits. If economic growth increases, it improves public service like education and health care that is important for the people. Having a high economic growth benefits us in a way that there is a higher income which enable consumers to enjoy more goods and services. The money can also be spent on protecting the environment.
Countries with slow economic growth like Haiti, does not mean that they will have slow economic growth in the future. It can change as the time past, it is just in our hands and the hands of the government to change it and make the country a better place to live in.
"You have to think anyway, so why not think big?"Â This statement is according to Donald Trump. Most of us know who is Donald Trump; he is one of the successful business men in the world. How did he become successful? It is by his determination, hard work and as to what he said, he thinks big. We can also be successful like Donald Trump. It is just in our hands on what path we will choose.
In starting a business, we have to consider a lot of things such as what will be the type of our business. We have to consider what we will produce, how we will produce it and for whom we will produce it. But now, the business world is wide. There are lots of competition and just one wrong move; it can destroy everything that you work so hard for.
The business world is something that we risk and in which we can gain profit. There are different types of business. Business is not only about gaining profits but it is also about the product that the consumers need and the satisfaction of the consumers.
In this assignment, it will explain what a private business is and the various types of business organization existing in the private sector.
2.1. Private Business
The private business are owned and operated by certain people. They are working for and they are relying on the business for their livelihood. Their objective is to produce profit.
2.2. Types of private businesses
2.2.1. Sole Trader
Sole traders or Sole Proprietors or can also be called as the "one man show". They are the people who enter into a business with the use of his own money as a capital although the capital is low in which he as the owner has to make the decision alone. It is considered as the simplest, oldest and most common type of business. In setting up this business, a less formal procedure is required. The business affairs are kept confidential. Also, he will be able to save time on making decisions for the business. The profit is shared by oneself. The sole trader can served the costumer personally but he has to work for a long hours. Sometimes, his sickness can lead to business difficulties. There is also unlimited liability. The expansion for the business is also limited and there is a lack of continuity. The suppliers can give high amount of products.
In a partnership, 2 to 20 people are working together with a common aim. Partners are people who contribute capital within the business. Their aims is to achieve larger scale through increased capital, shared responsibility, reduce competition and shared experiences, skills, expertise and ideas. In entering into a partnership business, there is a Partnership Agreement and Partnership Act 1890. A Partnership Agreement must be made in order to settle any disagreement in which its specify the partnership name, business address, duration of partnership, nature of business, capital contribution, duties of partners, provision of salaries, distribution of profits and losses and the methods of resolving a conflict. In the Partnership Act 1890, it will be used when there is absence of Partnership Agreement or there is any aspect not specified in Partnership Agreement in which it specify the equal distribution of profits and losses, interest on capital contribution is not allowed, there is equal rights for all partners and no salaries allowed that the accounts must be kept on business premises. There are two types of partnership; these are the ordinary and limited partnership. In ordinary partnership, all partners are ordinary who have unlimited liabilities in which unlimited liabilities mean the partner have to bear all losses. There must be permissions from everyone in making a decision and there is an equal right. In the limited partnership, everyone have limited liabilities but at least one ordinary partner must have unlimited liability. The ordinary partner manage the business which means only the ordinary partner can take part in the management and the limited partner can inspect the partnership's financial records and give advice.
In a partnership business there is more capital, risk are shared by more than one person, strengths are shared such as experiences, skills, expertise and ideas, less tax burden and the business is kept confidential. The profit shared in partnership is called profit and loss. But the problem in partnership is that there is an unlimited liability. The time is wasted in making a decision; the number of partners is limited within 20 people. There might be disagreements between partners and the death of one partner may cause dissolution of business. Some of the reasons for dissolution of partnership is when one partner dies, bankrupt, unsound mind which can be physically or mentally, the aim is achieved, the duration of partnership ends and new laws are made.
2.2.3 Limited Companies
A limited company can either be unlimited or limited liabilities. The unlimited liabilities means that the person or partners have to bear all losses that both his business assets and personal assets would be acquired by the creditors while the limited liabilities means that the business partners or shareholders' liability is limited to the amount contributed as capital. Only his business assets and the amount contributed can be acquired by the creditors. It can either be limited by share or limited by guarantee. The limited company is established under the Regulation of Companies Act (1948 - 1989). The capital contributions are in the form of shares and the people who contribute capitals are known as shareholders, they are the owners of the company and they have limited liability. The ownership and management of the company is separated. The company is managed by board of directors; they are the person who was elected by the shareholders. The board of directors is headed by a chairperson who is titular head of the company. The board of directors is responsible for the control of the directors' meetings and they are the one representing the company's interests in external affairs. The managing director is responsible for implementing board policy and the daily running of the firm. The profits gain will be distributed in the form of dividends. The two types of limited companies are the private limited and public limited companies.
126.96.36.199 Private Limited Business
In the private limited, there are 2 to 50 shareholders in which the shared are normally owned by small group of people that are usually family members. The shares are not traded in the stock exchange and the transfer or disposal arrangement of shares needs the consent agreement of all other shareholders. All the shareholders have limited liability. The company account must be audited and made public which means the people will know whether your company is making profit or not. The advantages of having a private limited company are that it can be set up easily; there is a larger amount of capital. There is an assurance of continuity which the managing director manages the business. Larger scale business brings economies of scale. There is limited liability. But there are also problems that you can encounter in private limited such as heavy tax burden. The tax that you have to pay is your individual income tax and corporation tax. The capital accumulated is less than public limited companies. In shares transferring or disposing off, you need permission to other shareholders. The audited account must be sent to the Register of Companies.
188.8.131.52 Public Limited Business
The public limited company has at least 2 shareholders. Unlike the private limited, the shares are traded in stocks exchange. Permission is not necessary in transferring or disposing of shares which mean you can sell and buy shares anytime. The account must be audited and made public. The benefit of public limited business is there is a greater amount of capital. The economy of scale is achieved. There is limited liability. The continuity is assured because the shareholders and company are different entities. The weakness of public limited business is the complexity set up procedures and management. The audited account must be published. There is a higher tax burden. The board of directors might abuse or misuse the power because they are the one who is managing the company. And there is a risk of takeover by other companies.
Franchising is 'ready make' business which means that the business already exists. In franchising, two people are involved that is the franchisor and franchisee. The potential owner or franchisee pays to use the name, products, and services of the franchisor who receives a lump sum and a share of profits of the business.
The franchisor is the person giving the concession which provides a well-known trade name together with technical and administrative training. The advantage of being a franchisor is that you can expand your business without capital investment. There are benefits from the contributions to overheads and operating costs from the franchisee. The franchisee may be contracted to purchase certain goods from the franchisor. But there is also some problems being a franchisor, it will be difficult to control franchisees. The image might be influenced which means the reputation of the whole company might be ruined because of one franchisee.
The franchisee is the person to whom the concessions is given which undertakes in return to sell only the franchisor's products and conform to specified standards. The benefit of being the franchisee is the product is a proven product which means the consumers already know this product. There are trainings in all aspects of the business, help and advice with administrative matters. Your business will be a part of a well-known group. The problem is that, the franchisee may feel that the constraints place upon them such as what they can sell, their hours of work, pricing policy and layout of the shop which means that there might be disagreement between the franchisor and franchisee about the what the contracts says.
"Whenever you see a successful business, someone once made a courageous decision" by Peter F. Drucker. In every business, we have to make certain decisions. We do not know whether this decision will be good or bad for our business but we have to try. We may fail but failure is part of our life. No one succeeded that never fails. It is just in our hands whether we will continue or we will give up. You will encounter many problems in the business world but these problems shouldn't stop us. We will be able to succeed by our hard work and determination. Different types of business means different characteristics but they are unique in their own way. Businesses had taken risk to survive in this competitive market, to achieve economies of scale and to gain profits. Although sole trader has the least capability in surviving in the business world due to the small capital of the business but it inclines to be on top. Partnership may have difficulties or arguments in dealing with decisions but because of the experiences, skills, ideas shared by the partners, they will be able to solve whatever problem that they might encounter. Limited company which can either be private or public limited, it is important in the industry because it can produce world production that the people get benefit for. Lastly, franchising, it is a famous business because the product are proven to the consumers. These are the type of business that people would normally have. In the world of business, we have to remember that failure does not mean that have to give up easily; it is just one of the things that will help us to succeed.