Essay On Open Economy For Emerging Market

An emerging market moves from a closed to an open economy while an account is maintained within the system. For example, the Soviet Union and Eastern Block countries. As a growing economy the growing reprogrammed to strengthen the economy will make the economy much stronger than before. A firm economy invites more foreign collaborators or investors seeing the nature of the economy. Thus, its exchange rate system is also reformed for the better. Many large donors invest their money in huge stakes. When the economy sees a good amount of growth or promising economy, then all will accept and would like to invest in it. The crisis created in free market capitalism kind is by its own. It is untrue that the market can be operated on its own. The United Nations has evaluated many reasons for the impact of economic shocks to the economy  which are excessive changes in exchange rates, increasing budget deficits, decreasing income from tax and fiscal rate, reduced usage of tax and trade financing, underfeeding of confidence in finance companies to generate more and more of money due to bad economy, lessening of trading among the world, lessened income from tourism which is a vital part of income for any and every economy, negativity in balance and trade balances especially, all cater largely to bad economy or deteriorating economy.  For example, Tesco PLC has been under pressure by the government a lot of times to achieve even a better output of their activities. Supply, demand, elasticity of demand and reactions of customers for their new products, scale of economy and the cost of manufacturing all force any company to change their policies as per the market and even because of the government. Tesco PLC has to make decisions as per the supply and the demand of the market. Considering the high demand even the company will produce a higher quantity of goods demanded by the buyers. Tesco evaluates the reactions of their customers before and after introducing a new product in the market to assess its value. By keeping the price level under control they can keep a check on the quality of the products sold by them. Tesco PLC can easily produce a good amount of goods at one time as they need a good response from the customers for those particular product then there would absolutely be of no use at all if the reaction or the demand is bad by the customers. So, if the demand is high, then there are definitely higher chances of producing large scale of products in the market in order to satisfy their customers to the fullest. If the cost of the product rises along with its price than the company will produce  a larger amount of products which will lead to more profit making for the firm. The need of the customers will also be fulfilled by this as the product would be available in the market at most of the times.