Current Economic Trends
An economy is the management and utilization of a country’s resources to create the desired stability in terms of industry, money, and trade. Economies of countries rely on a network of purchase and sale of goods, taxes, and savings made by the central bank in terms of investment (Pons, 2000). A country’s economic stability is achieved when the wealth the industry and service sector are producing outweigh the money being spent. Trends refer to the socio-economic advancements of interests among commodities, music, films, fashion, and finance. Trends are mostly affected or influenced by affluent individuals or groups in society. In the 21st century trends have earned a position in the financial and economic sectors of the world as economy determining factors.
Industries are setups used to collect raw material of different kinds and manufacture and process them to attain a finer product than the original raw material. Around the world global consumerism has resulted in the construction of varieties of industries ranging from food, textiles, machinery, and agriculture. Industries may either be service or manufacture and processing. Modernization promotes the industrial revolution due to the demand for complex and efficient products (Baten, 2016). The availability of a vast selection of products has seen an annual influx of newer companies that offer better and more complex products. Economically there are two types of industries; cyclical and non-cyclical industries.
Cyclical industries are business or organization tied to market and price variations. Fluctuation within a business’s year affects the cyclical industry directly. Positive growth within the business boosts the business while negative growth results in the collapse of a business (Gordon & Robert J, 2000). Cyclical industries' activities move with an annual or seasonal business cycle. Examples of cyclical industries include the auto, airlines, housing, furniture, appliance, and financial services industries. Non-cyclical industries maintain their overall business performance all year round. Differences in productivity have little to no effect on business operations. Non-cyclical industries remain fairly constant over time. These include such industries as food, pharmaceuticals, utilities, and cosmetics.
American airlines have recently merged with US airlines expressing a steady growth percentage of 93%. Lawsuits, devastating weather patterns, and competition have seen the airline struggle through the past years with the stock prices dropping and insignificantly rising through it all. Apple, a technological giant amongst mobile and personal computer manufactures, has been on the rocks for quite some time. A collapse in iPhone sales has seen the company struggle to maintain the productivity of its stock. This is due to iPhones making up 60% of Apple’s revenue. Bank of America has seen a steady decline in the value of its stock resulting in poor economic efficacy.
Ameren, an electrical company has seen a steady rise in earnings the past year with plans to venture into wind technology to increase production. Competition from various electrical companies has seen a decline in prices prompting newer investment ventures. GlaxoSmithKline pharmaceuticals the past financial year experienced a revenue generation of $24 billion. The company’s growth has seen it buying companies like Tesoro. Global food industries have invested in building additional production industries to keep up with on-trend items and consumer demands.
Global demand has seen an increase in the gross domestic product due to the expansion of the industrial world into Asia and Europe. This means available market possibilities for exports and competition are just but a few benefits (Zipfe, 2012). Rising middle class create a market platform for foreign goods around the world. Investments opportunities are some of the major reforms the economic sector has undertaken. The leniency of tax on specified sectors and goods leaves consumers with more to spend promoting faster growth and increased GDP and the overall economy.
Volatile deployment of funds creates opportunities, increasing average returns, fixed incomes, and currencies while creating market equality. Rate-sensitive assets should be allocated less in order to reduce the negative effects of rising rates. Incorporation of international assets promotes steady growth and stabilization of currencies. Cyclical industries are the major drivers of a state’s economy despite the consistency of non-cyclical industries.
References
Baten, Jörg (2016). A History of the Global Economy. From 1500 to the Present. Cambridge University Press
Gordon, Robert J. (2000), Long term productivity in the U.S.
Pons, Jordi (January 2000). Journal of Forecasting. Wiley. 19 (1): 53–63.
Zipfel, F., 2012. Economic and European Policy issues. Deutsche Bank AG
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