Saturday, August 10, 2019

When a bigger economy eats smaller economy.



Image: NASA


When a bigger economy eats smaller economy. 

The image of the cannibal galaxy is fitting as the perfect symbol of the economical areas. The bigger economical area just sucks the capital goods of the smaller or weaker economic areas. This phenomenon is visible in the areas, where has been many small shops, but when the big shopping center has been built in the same area, the shopping center would pull all customers of the small shops in it. This thing is happening in small areas, but the thing is that the same effects, what are influencing in the microeconomic are conducting to macroeconomics. 

The macroeconomic has many similarities with the microeconomics, but the thing is that everything happens there on a larger scale, and in this kind of areas, what has the size of the one state, or even the continent, the thing is that those areas many more things are influential than just how cheap the production might be. The thing what is called as "socioeconomy" means the internal situation and condition in the area. 

If the economical condition of are is poor and authorities are corrupted, that would give a negative image of the products, and that kind of things are causing carefully in the financial investments. And if there are internal problems in some areas like crimes or danger that the investments would be impounded, that means the problems for marketing products, what are made in that area. 

Here I must say, that if the lawbook of the country is very thin, there might be impossible to break laws or get prosecutions about environmental or corruption. Because if there are no laws, what are controlling those things, the company doesn't break any laws, even they would put all their waste to nature. 

This is the thing in choosing the operational area. The image of the product must also be good because if the production happens in the conditions, what are risking the life or health of the workers, that is very bad for the product. 

But when we are thinking about the mass of some economical area, we must realize, how well-known it is. The thing that some well-known enterprise-class actors are operating in that area is giving more marketing booster for it, than some well-known beach. Of course, things like nature are very interesting if the employer operates in areas like tourism. 

The thing is that the natural environment is very important for many things, is not warming actors like carmakers or chemical industry, because if in the area would be some kind of nature park, that means that company must leave. The thing is that when we are thinking about economics and political decisions, we must understand that politicians are addicted by the votes, what they can get. 

And if some politician makes design what destroys the national scene, that will cost the career of that person. In modern economics things like natural friendly and carbon dioxide are very important things. Those things are highlighting in the modern world, where people are concerning things like climate changing and pollution more than ever before. 

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