Economic consequences of political instability

Economic consequences of political instability

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Economic consequences of political instability

Political instability can have profound economic consequences on a country. When a nation is politically unstable, it can affect investor confidence, disrupt trade, deter foreign investment, and create an uncertain business environment. This, in turn, can lead to negative economic consequences such as recession, inflation, high unemployment rates, and reduced economic growth.

Investor Confidence: Political instability can have a direct impact on investor confidence. When investors are unsure about the political climate of a country, they become hesitant to invest their money there. This can lead to a decrease in investment, which can result in a decline in economic growth. A lack of investor confidence can also lead to a decrease in the value of a country’s currency, making it more expensive to import goods and services.

Trade Disruptions: Political instability can disrupt international trade. Trade agreements may be broken, tariffs may be imposed, and goods may be subject to increased scrutiny at borders. All of these factors can lead to increased costs and reduced trade. This can impact the country’s exports, which can be damaging to industries that rely heavily on international trade.

Foreign Investment: Foreign investment can be an important source of capital for a country. Political instability can deter foreign investment, as investors are wary of investing in a country with an uncertain political climate. This can be particularly problematic for developing countries that rely on foreign investment to finance their economic growth.

Business Environment: Political instability can create an uncertain business environment. Changes in government policies and regulations can impact the operations of businesses, leading to increased costs and reduced profits. In addition, political instability can create a culture of corruption, which can make it difficult for businesses to operate ethically.

Recession: Political instability can lead to a recession. A recession is defined as a period of economic decline, typically characterized by a decline in GDP, high unemployment rates, and reduced economic activity. Political instability can disrupt the economy, leading to reduced investment, decreased trade, and an uncertain business environment. All of these factors can contribute to a recession.

Inflation: Political instability can also lead to inflation. Inflation is defined as a sustained increase in the general price level of goods and services in an economy. Political instability can lead to inflation as a result of increased government spending, decreased foreign investment, and a decline in the value of the country’s currency. Inflation can be particularly damaging to low-income individuals, who may struggle to afford basic necessities.

High Unemployment Rates: Political instability can also lead to high unemployment rates. When the economy is disrupted, businesses may be forced to lay off employees. High unemployment rates can be particularly damaging to young people, who may struggle to find work and establish a career.

Reduced Economic Growth: Finally, political instability can lead to reduced economic growth. Economic growth is defined as an increase in the production of goods and services in an economy over time. Political instability can disrupt the economy, leading to decreased investment, reduced trade, and an uncertain business environment. All of these factors can contribute to reduced economic growth, which can have a long-lasting impact on a country’s economy.

In conclusion, political instability can have significant economic consequences for a country. It can disrupt investor confidence, trade, foreign investment, and create an uncertain business environment. This can lead to negative economic outcomes such as recession, inflation, high unemployment rates, and reduced economic growth. It is, therefore, essential for policymakers to prioritize political stability in order to maintain a healthy and thriving economy.

RUBRIC QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points:  Student failed to submit the final paper. 20 points out of 50:  The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50:  The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately.  Elements of the required response may also be lacking. 40 points out of 50:  The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples.  The answer is complete. 50 points:  The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples.  No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points:  Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points:  Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points:  References to scholarly sources are occasionally given; many statements seem unsubstantiated.  Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points:  Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented.  APA 6th Edition is used with only a few minor errors.  There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points:  Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented.  APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points:  Student failed to submit the final paper. 5 points out of 20:  The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors  10 points out 20:  The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20:  The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points:  The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points:  Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements.  The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper.
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