Sample EC501 International Economic Development Report 2

EC501 International Economic Development Report 2 Sample

Assignment Details

Students will complete an issue report which addresses one major issue that impacts upon international economic development. Each student will choose an issue from weeks (topics) 3, 4, 5 or 6 and will address theory, empirical evidence and recommendations for government and business responses.

Purpose

The purpose of this assessment item is for each student to develop and demonstrate a deeper knowledge and understanding of an issue in international economic development than is possible during the class session on the issue. Each student will become the class expert on their chosen issue.

The Task

Students should chose an issue from topics 3, 4, 5 or 6 that interests them. There is considerable scope provided in these topics and a number relate directly to agribusiness. Students should choose their issue as early as possible and read widely. Special attention should be paid to all the material used or referred to in the relevant class session (presentation). Issues that could potentially be addressed include:

- Trade in primary commodities as a barrier to economic growth in developing economies

- Economic enclaves as an impediment to economic growth in developing economies

- Application of dependency theory to economic development in the Global South

- Costs and benefits of international migration flows among nations

- The role of international aid in relieving foreign currency shortages

- Costs and benefits of industrialisation as a growth strategy

The written report should outline the chosen issue and state why it is of interest in the context of international economic development. Contributions to analysis of the issue from both theoretical and empirical perspectives should be presented, noting areas of agreement and disagreement and identifying any gaps in the literature that could be addressed by future research. Lessons or implications for government and business should be discussed. Students will then each present their report.

Format

The format required for the report is set out here. This format contains eight sections.

Cover Page (not included in word count)

List of contents (not included in word count)

Executive Summary (around 200 words) (this is the last section to be written)

Introduction (around 500 words)

- Identify the chosen issue

- Describe briefly the nature of the issue

- Summarise briefly the analysis to follow

Analysis (around 1,500 words)

- Provide a review of the theoretical and empirical literature relevant to the issue

- Use algebraic or geometric models to demonstrate mastery of the issue (use of such models is not compulsory but a model can sometimes convey an idea succinctly without using too many words)

- Carefully identify areas of agreement and disagreement among various contributors to the literature

- Identify any area(s) that should be the focus of future research

Conclusion (around 300 words)

References (not included in word count)

Appendices (if any) (not included in word count)

Solution

1. Introduction

Common problems the host countries experience include pressure on the economy because of rising demand in areas such as health, education, and accommodations. Sometimes the social problems are due to interaction with strangers for a certain time and change of the population, manifesting in conflict between groups. The industry often influences employment prospects, and job markets have limited positions for newcomers, as with locals and immigrants (Safarian, 2024). Furthermore, capacity is also strained where infrastructure reaches its optimum and the services offered dilute.

The nature of the issues is mostly related to the economic and cultural factors of the host countries. As follows the economy, this report highlighted the problems of unskilled employment. In addition, it highlighted the issues of immigration and the cultural burden issues in host countries for the assignment helpline.

This report highlighted major problems associated with the structures of host countries. In addition, it served the thoughts of literature and revealed a model of capital mobility to highlight the problems associated with the host countries. Some of the economic developments are additionally revealed, which can help to develop the capacity of the host countries' business effectiveness.

2. Analysis

2.1 Review of the theoretical and empirical literature

One of the relevant reasons for wishing the host countries suffered the most is their unskilled wages. According to Demireva and Zwysen (2020), an oversupply of employment in the sectors of low skills leads to the suppression of wages. As for that, the levels of employment benefits are getting lower by 4.9%. Disappointment, the earning capabilities of the skilled employees have fallen in those host countries. As per Livermore and Revesz (2020), the cost-benefit analysis theory helps to analyse the relationships between business costs against the benefits they receive. Using this theory and the thoughts of Wahba (2021) revealed differences in economic cost effects on the host countries. The rising demands for different public services like education and healthcare facilities have raised their economic stain. In addition, infrastructural pressures like the development of public transportation additionally affected their budgetary works.

From the viewpoint of Bilir et al. (2019), multinational companies play a huge role in the parts of trade developments as well as technological developments in host countries. For the lower employment costs, the multinational companies receive more benefited employability environments. It helps them to raise their structures of productivity with a minimum of employment costs. According to Lyailya and Zagida (2020), the host countries are additionally suffering from migration problems. The political influence of these countries influenced most of the young people. It is the cause of cultural shifts and concerns about job security environments.

2.2 Model of Capital Mobility

As follows the model of capital mobility, the effects of reward factors as well as international migations are analysed between two countries. As follows the model, the poor structures of labour mobilities of host countries affected their levels of employee effectiveness. As for the unskilled employees of those host countries, their capital can be moved faster in the international markets (Gerking and Mutti, 1983). However, it can bring lower returns on their international capital as well as employees' capital.

As for this model utilisation, two host countries are taken into consideration, which are the United States and Mexico. To understand the problems of this host country, two basic elements, their labour and capital, are taken into consideration. For that, the US contained an unskilled labour range of 5.7 million between the session of 2024 (International Labour Office, 2024). At this time, the country contained a growth rate of 37% on their capital infrastructures (International Labour Office, 2024). This shortage of labour in the US is greater than the shortage of unskilled labourers in Mexico. However, the country contained capital growth of 27% which is lower than the US (Deloitte, 2024). As follows the capital-labour ratios of these host countries, they both suffered from the issue of labour shortage and rising unfilled demands of skillful employment.

Table 1: Labour shortage
(source: International Labour Office, 2024)

2.3 Areas of Agreement and Disagreement

The main area of agreement is the employment issues in the host countries. In the global international market, there are 13 countries that face similar issues, where Israel is in the top position for the matters of unskilled employment (Yahoo, 2024). As for that, there was a rise in migrant employment visualised in the global job market, which reached 169 million last year. Additionally, from the global economy, the imigations lecvels of the unskilled employees are visaulised from 20% to 60% (Yahoo, 2024). It effected the efficiency rates and productional capabilities of the countries.

The disagreement factor of the literature is the attraction of multinational companies for the host countries. In host countries, the multinational business can receive employment benefits. However, it can affect their cost structures most (Hunter, 2024). It can raise the risks of exchange rates within the business. The differences in exchange rates between the countries can lead the multinational business financial consequences (Hunter, 2024). As like the poor exchange rate of Iran, the relationship with its multinationals is being affected (VoA, 2024). Additionally, the cultural risks can additionally reduce the production capacity of the company.

As for that, the gap in the thought literature is visualised for the analysis of output levels of unskilled employees. The capacity of unskilled employees for effective production, as well as the factors of capital-labour ratio, is not utilised by the thought of literature.

2.4 Area of Further Research

The area which will be considered for further research is the return on investment rates. It will analyse the levels of returns the international business can receive from their operational procedures in the host countries. Multinational companies face differences in internal and external issues during the time of their operational work in host countries. In addition, it will additionally serve to research the factors or challenges the multinational companies can face during the session of operations in these countries.

2.5 Current Developments

AI and Automation- One of the effective developments in the international economy is automation technologies. By using AI and automation technologies, international businesses utilise their digital services as well as productivity facilities (Cugurullo, 2020). As per the world's economic theory, the AI foundation model can help to serve dynamic market control (World Economic Forum, 2024). For that, it can bring equitable benefits of market distributions.

Global Supply Chain- For reasons of the COVID-19 pandemic, different countries faced geopolitical issues. As for that, the countries utilised their supply chain management procedures and served their focus for the diversity of supply chain management (Guan et al. 2020). Fort the COVID, the transportation costs for supplements are raised by 1.5%, whereas the costs of consumer purchases are raised by 7.5% (UNCTAD, 2024). By these moves, the business can manage its supply chain from international countries and reduce its supply costs (UNCTAD, 2024). It can additionally help to reduce their productivity price in features.

2.6 Evaluation

In the host countries, businesses face illegal migration issues. As for that, the US faced the highest number of migration issues during the time of 2018 as it contained a migration level of 23%, which is the highest level of migration (Immigration Council, 2021). In the current session, the country contained levels of immigrant population of 13.8%, which affected the economic levels deeply (Immigration Council, 2021). As for the reasons for migration, thousands of people travelled from north to southern countries. It deeply affected the levels of populations of different countries. In addition, of the rising levels of illegal migrants in economically developed countries, the employment levels of those areas are affected the most (Wihtol de Wenden, 2023). It additionally impacted the levels of their economic structures and raised the demand for public transportation as well as the public services offered by the governments.

Figure 1: Immigrant population in the US
(Source: Immigration Council, 2021)

3. Conclusion

This report served as a detailed analysis of the problems associated with the host countries. As the major problem, this report served unskilled employees at different levels of the country. In addition, it analysed the difficulties faced by the host countries during the time of their economic management. By using the capital mobility model, this report highlighted the differences in capital modalities between the US and Mexico. It additionally revealed some of the effective agreement thoughts as well as disagreement thoughts of literature. As follows the theory of cost benefits analysis, the major difficulties are revealed in the portions of cost structures of host countries.

As follows, the host countries suffer from economic burdens as well as cultural difficulties during the time of their operational process. Additionally, highlighted the difficulties of analysing the involvement of multinational companies in creating better economic and employment structures for the host countries. As for the significance, these lessons highlighted the developments of the economy and technologies. It highlighted international economic developments by using authoritative tools as well as the utilisation of the global supply chains. It additionally described the shifts of business needs for new technological skills that can help support the development of host countries.

References