Elements That Hinder Economics

Elements That Hinder Economics

Apart from government bodies altering their expense plans and drastic increase in the prices of materials, there are many other factors that will affect the economic growth of every country becomes a very crucial problem since it affects the standard of living as well. The people, the country, the government and the entire nation suffers due to this. Below are listed some more factors that will have a major effect on the economic growth

  • Human Resource: This is considered as one of the most important factors to affect the economic growth of the country. How good or bad the country‚Äôs human resource is and the number of human resources provided by the country will have a direct effect on the economic growth. When we say the quality of the human resource it means the skillsets they have, creative capability, appropriate training and qualified education. If the people in the human resource are provided with great skills and training it is obvious that its outcome will be of great quality as well.

Even if the labors are in excess number and there is lack of skilled people this will affect the economic growth because of the quality and quantity both matter. Having only quantity and no quality are of no use. Similarly, human resource is important for trading, for more information, continue reading.

  • Natural Resource: This affects the economic growth of the country drastically. When we say natural resources it means the resources that are naturally available in nature which might be either on the land or inside the land. We can characterize them into 2 there are recourses like:
  1. Plants, resources got from water and landscape will come under resources above the land.
  2. Oil, minerals, metals, natural gas, non-metals are all considered under resources below the land.

The climatic conditions of the country and the environmental constraints will decide what natural resources that a country will have. A country that has several natural resources will have a good economic growth when compared to countries that have less natural resources.

The natural resources are again dependent on human resources because there will good growth only if the natural resources are utilized effectively or are exploited appropriately by human resource who again need to have proper skills, technology, and sufficient fund. If the country has both skilled and well-educated personnel and has a good natural resource it will lead the economy on the right path. An example of such a combination can be developed countries like United States, United Kingdom, Germany, and France.