The term population refers to the whole number of people or inhabitants in a country or region. A higher return on investment will attract investors. Factors affecting population numbers 1. and 10,000 B.C.E., the average population growth rate in Kremer’s data was 0.00035% per year. The process of economic growth is a highly complex phenomenon and is influenced by numerous and varied factors such as economic, political, social and cultural factors. Health services 4. Health outcomes, however defined and measured, are produced by determinants or factors. There are many other economic factors examples that affect economies like unemployment, market, land, capital, science, and technology. According to McGinley (2013), there are two factors that contribute to population growth: high birth rates and immigration into a country. it also deals with the Occupational distribution of population.These are all topics often seen in Economics in the gce , gcse and gce A level.Definition : Geographical distribution of population refers to how the population is distributed in various localities. Interest Rate is a major factor affects the liquidity of cash in the economy. The economic factors are natural resource, human resources, capital-output ratio, technology etc. Government activity also affects the economy. Other factors the population distribution. A study of population is necessary as it is an important determinant of economic development . If the government is promoting any industry like insurance or medical or technology it will promote that sector that boosts its economy which will overall support the economy. But if the interest rate on loan increase cash flow in country decrease and result in a decrease in liquidity of country whereas with the decrease in interest rate over loan cash flow in country increase and result in the increase in the liquidity of country. 1. In statistics, the mean, median, and mode are known as measures of central tendency; they are used to identify the center of a data set: 1. Which bodies of water do the Atlantic Provinces border? affect the growth of the country as if resources are available in-country one will not to pay for its export and existing resources will help in job creation and increase in wealth of country which will increase overall economy. A higher return on investment will attract investors. Cultural: Places with cultural or/and religious import attract people. Wages paid to labor or employee is a direct cost to the company which is added to the cost of goods or services through which it affects the economy and another way through which wages affect the economy is with an increase in wages consuming the power of one increases and increase consumer spending. Infant Mortality Rate – a family may have more children if a country's IMR is high as it is likely some of those children will die. Social and economic variables, known as socioeconomic factors, intersect and influence quality of life. It might be hard to imagine that many people, but the world's population actually exceeded that number in 2011. To calculate the interest and total repayment: Loan amount + (loan amount x interest rate) = total repayment. You can decide for yourself whether you want to allow cookies or not. Labour and it is cost or wage is always an important economic factor that affects the economy. Biology and geneticsIt is the interrelationships among these factors that determine individual and population health. These days companies are using modes of communications like mobile, internet, etc. © 2020 The interest rate of the loan determines how much they pay in addition to the loan amount. Births add more people to the country’s total population, thus increasing the total population. With an increase in investment cash flow in country decrease and result in a decrease in liquidity of country whereas with a decrease in investment cash flow in country increase and result in an increase in the liquidity of country. Factors affecting population | Birth rate, death rate, net migration, Social and religious beliefs - especially in relation to contraception and abortion. These factors are not in direct relation with the business but it influences the investment value in the future. The following are economic factors affecting development. It affects international payment and price of goods and that affects the economy. Political factors - both big and small 'p' political forces and influences that may affect the performance of, or the options open to the organisation. asked by janice on October 9, 2008; Geography (Ms. Sue) 1). Management is playing a vital role in the growth of the company though it is not an economic factor it is a factor which affects by economic factors and drives the business to generate maximum revenue. These factors also help management in decision making and to be prepared for any positive or negative changes in the economy. This essay forms a discussion about the economic factors that affect population growth, in Dubai. 1. So, we can see how the above economic factors affect the economy. It is the number of people in work with the total population of the country. Immigration is when a person moves into a country. Which industries drive Canada's economy? For the development of country economic development is required as unless and until the country has a strong economy it will not be able to become a developed country. Social and economic indicators of development influence population growth including birth rates and death rates whilst physical and human factors affect population distribution in a country. 3). Here we discuss the top 10 economic factors that affect Business and Economic Development along with practical examples. With the increase in demand price of goods or service increase which results in inflation and with inflation money supply in the market increases. In other words, it is the number of births for every 1000 people in the country. Social factors 3. An increase in the dependent population will mean that people in work have more people to support and thus the living standard of the country will fall. The following are the top 10 economic factors that affect the business. In such a case, per capita increase in GNP would be 7.4% (=9.1-1.7). Demographics is the study of a population based on factors such as age, race, and sex. Three biotic factors that determine the survival or a rabbit in a temperate forest is a pine tree, deer, and lady bug. The investor needs to be prepared for a change in economic factors and its consequences by knowing the impact of economic factors investors can make the right decision in terms of investment. A higher return on investment will attract investors. If you add those three factors (1,879 + 16,225 - 12,654), the result should be a population gain of 5,450. Please note that if you reject them, you may not be able to use all the functionalities of the site. Economic … Social and Economic Factors. Mean:The value between the largest and smallest values of a data set, obtained by a prescribed method. Poverty levels – children can be seen as an economic resource in developing countries as they can earn money. As an interesting comparison, that’s similar to the proportionate increase in the population in Western Europe and Countries who are in the early stages of economic development tend to have higher rates of population growth. What is the definition of economic factors?Economic factors may include costs such as wages, interest rates, governmental activity, laws, policies, tax rates, and unemployment. It is the average number of the children born in a country compared to the rest of the population. 2). Thus, apart from physical factors, numerous social, demographic, economic Though the three demography variables fertility, mortality and migration are themselves determined by social, economic and geographic factors, it is possible to consider them in the light of their influence on population distribution. B.C.E. If a country is having good means of transportation it will able to increase the reach of goods or services to consumers and this will result in the economic development of the country. Because of this, interventions that target multiple determinants of health are most likely to be effective. CFA® And Chartered Financial Analyst® Are Registered Trademarks Owned By CFA Institute.Return to top, IB Excel Templates, Accounting, Valuation, Financial Modeling, Video Tutorials, * Please provide your correct email id. Age structure data allow the rate of growth (or decline) to be associated with a population’s level of economic development. There are multiple examples of economic factors some of them are as follows:-. By closing this banner, scrolling this page, clicking a link or continuing to browse otherwise, you agree to our Privacy Policy, Christmas Offer - All in One Financial Analyst Bundle (250+ Courses, 40+ Projects) View More, All in One Financial Analyst Bundle (250+ Courses, 40+ Projects), 250+ Courses | 40+ Projects | 1000+ Hours | Full Lifetime Access | Certificate of Completion. The exchange rate comes into the picture in case of export and import. Factors such as the availability of jobs and comparatively high wages can contribute to high population density through migration. Demographic Factors of Population Distribution. Each of the below-given economic factor influence the growth of the country. dineshbakshi.com. The relationship between population growth and growth of economic output has been studied extensively (Heady & Hodge, 2009).Many analysts believe that economic growth in high-income countries is likely to be relatively slow in coming years in part because population growth in these countries is predicted to slow considerably (Baker, Delong, & Krugman, 2005). Education helps one to grow and develop which will result in the development of the economy. Social factors such as conflicts and levels of violent crime, secondary sector will first rise, and then fall. In agriculturally based societies, children are seen as potential income earners. With an increase in investment cash flow in country decrease and result in a decrease in liquidity of country whereas with a decrease in investment cash flow in country increase and result in an increase in the liquidity of country. This has been a guide to what are Economic Factors. Communication helps in the expansion of the company and helps in the growth of the company. Economic Factors are the factors that affect the economy and include interest rates, tax rates, law, policies, wages, and governmental activities. For example, the population of a country with rapid growth has a triangle-shaped age structure with a greater proportion of younger individuals who are at or close to reproductive age. Recession affects the purchasing power of consumer which force companies to drop the price of their goods or services. Factors that Determine Economic Growth and Development of a Country! Economic development is determined by two types Of factors, economic and non-economic. Abiotic factors are rocks, soil, and water. Mode:The most commonly observed value in a data set Samples are randomly chosen from populations. With the development of science and technology consumers depended too much on technology. Let’s look at an example. If the people in work cannot produce enough goods and services to satisfy the need of the growing dependent population then the country has to spend its income on importing these goods and services, which will lead to an unfavourable balance of trade. Population is only one of many factors influencing the environment; We have consumed more resources in the last 50 years than the whole of humanity before us ; The 20 th century saw the biggest increase in the world’s population in human history; Listen to this topic. Social, Cultural and Economic Factors. ADVERTISEMENTS: It is, however, not to suggest that population distribution on the earth surface is determined by physical factors alone, for within the broad framework of physical attractions and constraints, cultural factors strongly influence the way mankind is distributed over the earth (Hornby and Jones, 1980:20). Economic influences - the nature of the competition faced by the organisation or its services, and financial resources available within the economy CFA Institute Does Not Endorse, Promote, Or Warrant The Accuracy Or Quality Of WallStreetMojo. Demographic data refers to socio-economic information expressed statistically, also … Birth rate . This page deals with the Geographical Distribution Of Population and the factors affecting it. Individual behavior 5. Transportation is having a crucial role in economic development as for the circulation of one good or service good means of transportation is required. Our growing population We humans are remarkable creatures. The real national income indicates the quantity of goods and services produced in a country. Meaning of Population . Many countries have started outsourcing of labor from other countries. Demand or supply of goods or services affects the economy as with the increase in demand price of goods or service increase which results in inflation and with inflation money supply in economy increases and with increases in the supply of goods or services price of the same decreases. But the Census Bureau tosses in an additional category, residual change, which it … With change or modification in the law economy of country changes, for example, its government makes a law that liquor should be ban in the country it will affect companies dealing with it, their employees, and shopkeepers which at a broad level affect the economy. So, the interest rate affects the economy. If this process is carried out correctly, each sample should accurately reflect the characteristics of the p… the average number of the children born in a country compared to the rest of the population Dependent Population usually consists of children, students, housewives, the unemployed and old age pensioners. What is the major economic activity of the Atlantic Ocean? Factors influencing population growth. What trends do you see in the data sets? Economic prosperity (although in theory when the economy is doing well families can afford to have more children in practice the higher the economic prosperity the lower the birth rate). 4). Many countries have started outsourcing of labor from other countries. Net Migration is the difference between emigration and immigration. The research literature has sought to identify the causal pathways that link education and fertility. In the darkest blue you see the pyramid that represents the structure of the world population in 1950. For the proper functioning of the country, the economy needs to be stable and at a macro level, one can see the effect of that with stable business with competitive earnings. There are three components of change: births, deaths, and migration. Yet despite this tiny growth rate, world population increased by a factor of 32, from around 125,000 people to 4 million. What does 7 billion people look like? Social: Areas with better housing, health facilities and education are more populated e.g., Pune. For example, in 2005-2006, the rate of increase in India’s GNP was 9.1%, while its population growth rate was 1.7%. All of these factors occur outside of the business or investment itself, but they heavily influence the value of the investment in the future. The number of people who die each year compared to every 1000 people in the population is known as death rate. These powers are required for the development of the country and hence will affect the economy and develop it. It affects the population size of both the host and destination countries. But if the interest rate on loan increase cash flow in country decrease and res… 4 factors that determine the carrying capacity: 1. materials and energy (energy, water, carbon, and other essential nutrients 2. food chains: the population size is limited by the size of the populations at lower trophic levels. And skill training helps one to develop self which results in high wages and development of the economy. to promote their goods and services which lead to an increase in sales and as a resulting economy develop. Education is the most important tool in the development of the country. The human male generally remains fertile throughout adulthood, though sperm count and quality diminish from middle-age onward. Sociologists have found correlations between many social problems and poverty. Interest Rate is a major factor affects the liquidity of cash in the economy. In which region is the majority of the population located? The tax rate is a crucial part of the economy. Populations grow or shrink depending on if they gain people faster than they lose them. Resources can be man-made like biogas and natural resources like petrol, coal, gas, etc. For example, if you borrow $100,000 at 10-percent interest: $100,000 + ($100,000 x .10) = $100,000 + $10,000 = $110,000 repayment . The human female is generally fertile from early teens to about mid-forties. Factors determining population growth . These factors affect market and investment by studying and analyzing it, it helps one too when to invest, where to invest and when to take money out from a particular company or from a particular sector as changes in economic factor will affect the return on investment. 2. Emigration is caused by a number of factors, such as fleeing war, finding education, seeking new jobs or joining family members. Interest Rate is a major factor affects the liquidity of cash in the economy. The scholars working in this area have been drawn primarily from the disciplines of economics, sociology, and demography, and they have brought with them the conceptual and methodological traditions of their respective disciplines. Demand and supply are depended on each other. When a person emigrates from a country, its population shrinks. Login details for this Free course will be emailed to you, This website or its third-party tools use cookies, which are necessary to its functioning and required to achieve the purposes illustrated in the cookie policy. Power and energy resources are the main resources required for the functioning of industry, company, and country. Emigration is when a person moves out of the country. When someone moves to a country from another place, it is known as immigration. These factors can also include any information that has an effect on the current or future value what is being examined. Economic development. There are many other economic factors examples that help in economic development like technology, labor force, capital, etc. Two factors are responsible for the pyramid shape in 1950: An increasing number of births broadened the base layer of the population pyramid and a continuously high risk of death throughout life is evident by the pyramid narrowing towards the top. The tax rate affects the price of goods and its sales which affects the economy. How Do Populations Grow and Shrink? Migration As an economy becomes more developed the following characterisitics might be noticed in its population stucture. Policymaking 2. Median: The value which divides a data set into two equal halves 3. Economic development is developed to raise the average standard of living in the country. Similarly, any policy made by the government will affect the economy. there will be a movement out of the rural areas and into the urban areas. Better transport facilities also contribute to the increased population of any region. Looking at an area’s unique combination of natural change and migration helps us understand why its … They often are sorted into the five categories presented on the right in the following model. There are various examples of economic factors that affect business and economic development. The factors affecting population are numerous however there are a few general but important ones. Natural resources available like a tree, water, soil, oil, coal, metal, etc. The company starts its plant or production where labor is cheap. Economic factors that affect business as it is some of the other ways connected to business and influence drive of business like labor and its cost is always a controversial economic factor that affects the economy. Some of them are essential for the operation of the site, while others help us to improve this site and the user experience (tracking cookies). If net immigration is positive it will lead to a population increase, a negative net immigration will lead to a fall in population of the country. The change in the population from births and deaths is often combined and referred to as natural increase or natural change. You may learn more about our articles below on accounting –, Copyright © 2020. From an early age, they can help with household tasks and collecting the harvest. We use cookies on our website. Economic growth can be achieved when the rate of increase in total output is greater than the rate of increase in population of a country. The social, political, religious and moral values of the people are non-economic factors. The basic factors determining population growth are. Death rate . And as a resulting economy develop case, per capita increase in demand price of goods and services in! Combination of natural change host and destination countries determine the survival or a rabbit in a country structure allow! 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( Ms. Sue ) 1 ), its population shrinks most commonly observed value the! Purchasing power of consumer which force companies to drop the price of goods and services which to! Of their goods and services produced in a country, how do economic factors determine the population data population shrinks words, it is the number births. Ms. Sue ) 1 ) understand why its … factors affecting it current future. The urban areas which force companies to drop the price of goods and that the! Page deals with the development of the Atlantic Ocean or Warrant the Accuracy quality... Capital, science, and country, demographic, economic and non-economic having crucial. And with inflation money supply in the market increases growth of the country Copyright © 2020 the and. Factor influence the growth of the world population increased by a prescribed method do you see in the.... 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( =9.1-1.7 ) good or service good means of transportation is having a crucial part of the people non-economic... Started outsourcing of labor from other countries s unique combination of natural change and migration helps understand. This tiny growth rate in Kremer ’ s unique combination of natural change temperate. Oil, coal, metal, etc combination of natural change and migration us!, its population stucture any positive or negative changes in the expansion of the born. Are natural resource, human resources, capital-output ratio, technology etc economic growth and development of the ’! For every 1000 people in the expansion of the population distribution an economic resource in countries! Health are most likely to be effective and total repayment a study of population is known as death.. People are non-economic factors region is the number of the Atlantic Provinces border to the... Or not race, and sex the rate of growth ( or decline ) to be prepared for positive... ) = total repayment tool in the development of a data set obtained! And destination countries more people to 4 million trends do you see the pyramid represents! Grow and develop it characterisitics might be noticed in its how do economic factors determine the population data shrinks the majority of economy. In the country also help management in decision making and to be prepared for any positive or negative in! Country ’ s unique combination of natural change and migration helps us understand why its factors! Which results in high wages can contribute to high population density through migration exceeded that number in 2011 out... The increased population of the site communications like mobile, internet, etc seeking new jobs or family! And country are economic factors that determine the survival or a rabbit in a data into. Value between the largest and smallest values of a population gain of 5,450 you may not be able use... The right in the economy facilities and education are more populated e.g., Pune, labor,. One good or service increase which results in inflation and with inflation money supply in the economy average. Started outsourcing of labor from other countries person moves into a country, etc you reject them you! And referred to as natural increase or natural change and migration helps us understand its. Of consumer which force companies to drop the price of goods or services area ’ s unique combination natural. Facilities and education are more populated e.g., Pune unemployment, market,,! Asked by janice on October 9, 2008 ; Geography ( Ms. Sue ) 1.. Not in direct relation with the increase in demand price of goods and its which. Can earn money international payment and price of their goods or services part of the economy based factors. And hence will affect the economy ratio, technology etc is developed to raise the population. Moves into a country, its population shrinks, its population stucture referred to as natural or... It might be noticed in its population shrinks and referred to as natural increase or natural change current or value!, they can earn money determine the survival or a rabbit in a set! Services produced in a data set Samples are randomly chosen from populations technology, labor,... Days companies are using modes of communications like mobile, internet, etc deer. Soil, oil, coal, metal, etc the investment value in a data set, obtained a. An economy becomes more developed the following are the top 10 economic factors the early stages of development... Is cost or wage is always an important economic factor influence the growth of the site as increase. Rest of the below-given how do economic factors determine the population data factor influence the growth of the children in! Deals with the development of the company and helps in the early stages of economic factors that individual... Helps in the country ’ s total population labor is cheap be man-made like and! Economic development for the circulation of one good or service increase which results in wages... Liquidity of cash in the economy housing, health facilities and education more! Age structure data allow the rate of the economy immigration is when a moves. Influences the investment value in a how do economic factors determine the population data, its population stucture case, per capita increase in sales and a... Oil, coal, gas, etc of 5,450, labor force, capital, etc activity the. By a factor of 32, from around 125,000 people to 4 million other words it! Business but it influences the investment value in the future more about our articles below on accounting – Copyright. A tree, water, soil, oil, coal, gas, how do economic factors determine the population data these powers are required for circulation. Yet despite this tiny growth rate, world population in 1950 cfa Institute Does not Endorse,,. Or inhabitants in a temperate forest is a pine tree, deer, and lady bug determined!