A Healthy Home Industry Can Help A Lot
It is very vital for the stability and economic soundness of any country to have a healthy
and grown up home industry regarding the production of goods and services. The more established and strong will be
the home industry the more the nation will be able to produce, and the more a nation produces, the more easier
will it be for that nation to export. Exports are the backbone for the economic stability and power of any
Greater production not only boosts exports but it also helps a lot to reduced imports. High imports
are never considered to be a healthy sign for the economic power and growth of any nation.
So therefore it is sure that in order to keep a healthy and positive balance between imports and exports , it
is necessary for the nation to have strong production units and factories.
Now the reason that why a healthy and positive difference between imports and exports is required is that
high exports help a country to increase it’s GDP, known as gross domestic product and assists in the total annual
income to rise.
While on the other side, a lower figure for imports will assist the government to reduce it’s
annual expenditure and make the home industry grow further. Whenever the positive difference between imports and
exports will be high, it means that the government is enjoying fiscal surplus and fiscal surplus is a very positive
sign of economic stability and power.
The high fiscal surplus not only makes the economy stable but it also helps in avoiding the
borrowing of foreign loans along with the reduction and control in privatization of so many government organization
and this ultimately leads towards reduction ands control of internal monopolies. The restriction of internal
monopolies will help a lot to control the rising prices and this finally assists in controlling the inflation
Apart from the above mentioned positive consequences of a strong home industry another
positive aspect is the availability of jobs and this leads towards a good and positive employment rate within the
country. A healthy employment rate not only provides easy jobs but it also improves the overall national purchasing
power of the people and a high purchasing power ultimately leads towards a healthy GNP, which is known as the gross
national product. The rate of criminal activities and illegal acts will also decline a lot if there is an easy
availability of jobs in a nation.
The home industry could be strengthened by not only the government measures but the firms themselves
also need a lot of things to consider in order to have growth. Out of the many issues related to internal plans and
policies is the issue of Redundancy Payments. It is unfortunate to say that many firms suffer annual loss due to
high and irregular Redundancy Payments. In order to control such redundancy Payment related losses, firms should
try to be consistent in their course of operations and business. Inconsistency in this regards will definitely
bring high Redundancy Payments.
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