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Answer IESL Sylabus

The document discusses economic growth of a country and factors that influence maintaining healthy growth. It defines key economic terms like GNP, GDP, trade balance, and balance of payments. It also discusses how countries like Vietnam, Sri Lanka, China, and India achieved economic growth through various factors such as political stability, foreign investment, competitive production costs, and self-sufficiency in key industries.

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35 views2 pages

Answer IESL Sylabus

The document discusses economic growth of a country and factors that influence maintaining healthy growth. It defines key economic terms like GNP, GDP, trade balance, and balance of payments. It also discusses how countries like Vietnam, Sri Lanka, China, and India achieved economic growth through various factors such as political stability, foreign investment, competitive production costs, and self-sufficiency in key industries.

Uploaded by

Dilina De Silva
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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2013-06-29

Question: 3

 What is meant by Economic growth of a country?


 What are GNP, GDP, Trade Balance and BOP of the economy?
 Discuss the factors that influence to maintain healthy growth of our economy?

Answers:

 Economy in its jargon is wealth. It is true to the household, company, a country and the world as
whole. In this era economy of the world is globalized. The trade and manufacturing product,
goods and services provided by the country.

When the population of the country increases, it is needed to enhance the growth of the country to
facilitate them. That means while increasing the population their needs, such as food, shelter and
infrastructure facilities etc...are increasing simultaneously. Therefore, the country itself has to make
more agricultural products, food and other infrastructure facilities…etc...etc to enhance the growth of
the economy.

According to the media, Vietnam brought forward the wealth of the country after the war producing
better facilities before they treat. In order to enhance the growth of the country they have had a good
political stability. For any countries wealth it is necessary to have good legislation institute.

It is appreciable to state that our country Sri Lanka become more attractive growth soon after the war
devastated during three decades. Government wants speedy growth of the country and limited imports
and produces fast moving food more, such as rise and big onion. In order to serve the people with better
facilities, enhance people to grow, manufacture local products which can help to bring the country’s
wealth rapidly. Also the government opens the door to foreign investors to invest their trades in the
country. This type of action helps fast growth of the country too.

Similarly, there are several sectors effective to the growth of the economy of the country. They are
namely Apparel sector, Agricultural sector, Tourism sector, industrial sector and finally the Trade sector.
In addition to the above private and public sector organizations in the country are contributing
commendable service to the growth of the country economy too. Also the people of the country
contribute to increase the economy of the country by having self employments providing goods and
services to the nation too.

However, the government should assist the tradesmen, foreign investors, self employees for more and
more contributions towards the growth of economy by providing tax incentives etc…, and whatever
possible aid in order to make their profits to deploy more capital for their investments.

Countries like China and India successfully achieve their growth of economy by hardworking and
willingness to use less cost products and services. Finally they merged to the biggest economy of the
world.
 GNP – is known as the Gross National Production of the Country. Basically the addition of GDP
(Gross Domestic Production) and the Investment cost from outside countries.
 GDP – is known as the Gross Domestic Production which occurs from the internal production by
domestic activities. Such as Tea, Rubber and Coconut..etc which creates money within the
country.
 Trade Balance – is known as the balance of the trade imports and exports. To make trade
surplus must make more trade investors.
 BOP – Balance of payment position of the current account balance of the country. This is the
difference of hard currency go out and come in. if this is negative bankrupted the country’s
economy.

Discuss the factors that influence to maintain healthy growth of our economy?

 By reducing the unit production cost of goods and services at a competitive foreign market like
China and India will influence to maintain the growth of the economy of the country. By enhancing our
agricultural products more, catch the foreign market rapidly. Such as, big onion, vegetables, etc.. cut
down the cost of production and to be self sufficient with the products.
 Invite more foreign investors to join hands with our country by assuring their protection by not
having any incidents during their era. And not to make differences between expatriates and
countrymen unless giving enhance facilities. Legislation is in need for their protection.
 By encouraging capabilities of local investors and local productions more similar to India, using
their Motor vehicles locally manufactured such as Ambassador cars, Ashok Leyland buses .etc..etc

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