Economics

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In the simplest terms, inbound tourism occurs when a foreigner or non-resident visits a particular country, and outbound tourism occurs when a resident of a particular country leaves it in order to visit another one.

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  • How Does Monetary Policy Affect Unemployment?

    Q: How Does Monetary Policy Affect Unemployment?

    A: Monetary policy, established by the federal government, affects unemployment by setting inflation rates and influencing demand for and production of goods and services. Additionally, having stable prices and high demand for products encourages firms to hire workers, which reduces rates of unemployment. In the United States, the Federal Reserve holds responsibility for instituting a national monetary policy. Sometimes, such as during economic downturns, the Federal Reserve asserts its control by implementing long-term and short-term measures to stimulate economic production.
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  • What Are the Positive Impacts of Tourism?

    Q: What Are the Positive Impacts of Tourism?

    A: Increased opportunities for business income and employment are primary economic advantages gained from tourism. Visitors often come with the intent of spending money on food and lodging, entertainment and souvenirs. Companies providing products and services that appeal to tourists see greater income than they would without the tourists.
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  • What Type of Economic System Does Colombia Have?

    Q: What Type of Economic System Does Colombia Have?

    A: As of 2014, Colombia runs a mixed economic system with major commercial and investment ties to the United States. A mixed economy is one in which both the private sector and the government direct the economy. Colombia's main exports are oil and coal.
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  • What Are the Advantages and Disadvantages of Globalization?

    Q: What Are the Advantages and Disadvantages of Globalization?

    A: The advantages of globalization include employment and education while the disadvantages include loss of culture and health issues. Globalization brings countries together to trade and do business with each other.
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  • What Is Civil Construction?

    Q: What Is Civil Construction?

    A: Civil construction is a segment of the broader construction industry focused on building core infrastructure like pipelines, telecommunications, sewers, water treatment systems, highways, roads, bridges, subway tunnels and light rail transit lines. Companies operating in this field design, build and maintain physical assets that support economic growth and development and public health and safety.
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  • What Type of Economic System Does Japan Have?

    Q: What Type of Economic System Does Japan Have?

    A: Japan has an industrialized global free market economy. A free market economy is a competitive economic system in which businesses compete with each other for profit and the prices of goods and services are based on supply and demand. Japan's economic system is very similar to that of the United States.
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  • What Drives Globalization?

    Q: What Drives Globalization?

    A: Globalization is driven by international trade and investment and aided by information technology. It is the process of interaction and integration among the people, companies and governments of different nations, states Globalization 101, a website of the Levin Institute.
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  • Who Is the Father of Economics?

    Q: Who Is the Father of Economics?

    A: Adam Smith is often considered the father of economics. Much of what is considered the standard of market theory was written by him over the course of two books, the "Theory of Moral Sentiments" and "An Inquiry into the Nature and Causes of the Wealth of Nations."
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  • What Is the Importance of Entrepreneurs in the Economy?

    Q: What Is the Importance of Entrepreneurs in the Economy?

    A: Entrepreneurs play key roles in the economy by creating a substantial amount of wealth, and by owning and operating small business and even large corporations. Entrepreneurs are crucial in providing some degree of economic stability. They hold jobs in all sectors of the economy, and are valuable assets in all areas of the country.
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  • What Is a Monetary Instrument?

    Q: What Is a Monetary Instrument?

    A: A monetary instrument is a form of domestic or foreign currency that includes, but is not limited to, checks, certain investments, traveler’s checks and money orders, according to the State of Connecticut Judicial Branch. This is the legal definition that government bodies use.
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  • What Is the Primary Purpose of Business?

    Q: What Is the Primary Purpose of Business?

    A: The primary purpose of business is to make money. A business may sell a product or provide a service in its effort to make money for its owner or owners.
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  • What Is the Definition of Urban Decline?

    Q: What Is the Definition of Urban Decline?

    A: Urban decline is the deterioration of a city as a result of poor maintenance and lack of investment. The characteristics of urban decline include increased unemployment rates, decreased economic performance, and poor housing and health facilities.
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  • What Are the Main Industries of France?

    Q: What Are the Main Industries of France?

    A: France has the largest aerospace and nuclear industries of any European country, and it ranks second for agri-food and chemical industries. It is also Europe's third most important country for information and communication technology (ICT) and pharmaceutical sectors.
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  • What Is the Largest Component of GDP?

    Q: What Is the Largest Component of GDP?

    A: The largest component of GDP is consumer consumption. GDP is the acronym for gross domestic product, which is a measure of economic output.
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  • What Are Some Advantages of Economies of Scale?

    Q: What Are Some Advantages of Economies of Scale?

    A: The most significant advantage of achieving economies of scale is a reduced cost per unit of production. Most other advantages stem from this primary benefit. A lower cost per unit allows a business to earn greater profit even when maintaining a similar price point. The company could pass on cost savings to customers by operating with a low-price strategy.
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  • What Is the Paradox of Thrift?

    Q: What Is the Paradox of Thrift?

    A: The paradox of thrift is an economic theory that asserts that individuals choosing to save rather than spend their money can make a recession worse, and that individual saving can collectively be harmful. The paradox of thrift, like many economic theories, is not universally accepted as true.
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  • What Are the Drivers of Globalization?

    Q: What Are the Drivers of Globalization?

    A: The primary drivers of globalization are rapid advancements in technology, culture, economics and politics. With each passing year, the speed at which transactions take place and the spreading influence of cultural forces serve to integrate international societies. The most prominent driver of this trend is the advancement of technology.
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  • What Is a Domestic Business?

    Q: What Is a Domestic Business?

    A: A domestic business is a company that operates only within the borders of a single country. A domestic U.S. company is the opposite of a global company that does business in many countries. Domestic businesses only have to worry about domestic business operations, record-keeping and tax obligations.
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  • What Are the Advantages of Importing Goods?

    Q: What Are the Advantages of Importing Goods?

    A: According to the World Trade Organization, the chief advantage to importing products is an increase in market choices. With the importation of products, local markets can improve the variety of their offerings, providing consumers with goods that are either not available locally or items that can serve as competition to locally produced goods.
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  • What Are the G7 Countries?

    Q: What Are the G7 Countries?

    A: The member states of the G7 are the United States, United Kingdom, France, Canada, Italy, Japan and Germany. They are collectively known as the "Group of Seven," and represent the world's largest industrialized economies. The G7's finance ministers and heads of state meet periodically to set international economic policy.
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  • Who Uses the Barter System Today?

    Q: Who Uses the Barter System Today?

    A: Bartering is a popular form of trade for individuals, families and businesses seeking to save money. Some small- and medium-sized businesses join bartering networks to exchange various goods and services. Barter networks help businesses grow by brokering deals to exchange items such as copiers, phone systems, work shirts, carpet cleaning and even real estate.
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