Economics Downturn That Causes Decrease in Demand for Factories Export Trades

stinting Downturn That Causes Decrease In Demand for Factories merchandise Trades Introduction An economic downturn go forth squander an adverse relate on many sectors. One of which is the manufacturing sector. Companies seek to reduce manufacturing cost by sourcing for cheaper alternatives. For instance, importing raw materials from cheaper nations will help in cost reduction. As such, demand for local manufacturing and production will decrease. The article capital of Singapore factory activity shrink for seventh straight month (2 February, 2012) reflects on this issue. The author, Ms Melissa Tan, extend the latest statistics of Singapores purchasing managers index (PMI) to be 48.7, where a reading below 50 signifies contractions. On the contrary, the PMI for China, India, Taiwan and Korea have increased significantly. Accordingly, the author mentioned that the reason for the decrease in Singapores PMI is out-of-pocket to fewer new export scores. These figures non only places pressure on the manufacturing companies but also on the workers and judicatures. The following paper aims to explore the issues on how the decrease in demand of local manufacturing affects gross domestic product.

Policy recommendations concerning how the government can play a part in dowery the economy will also be discussed Singapores Economic for the year 2012 Singapores 2012 economic growth is forecasted to be around 0 percent on the first-quarter and subsequently 3 to 4.8 for the second to fourth quarter of the year. (Ryan Huang, 2011) In contrast with stretch out year, individual sectors such as industry, financial services, manufacturing and hotels/restaurants are pass judgment to grow at a slower pace. (refer to appendix 1.1, chart that shows the decrease in percentage from year 2011 to year 2012 in individual sector). Singapore is a nation that is dependent on export trades and global growth to boost its economy due to a lack of natural resources. However, the recent Europe debt crisis and Thailands mop up flood in... If you want to get a full essay, order it on our website: Ordercustompaper.com

Ordercustompaper.com is a professional essay writing service at which you can buy essays on any topics and disciplines! All custom essays are written by professional writers!