Expo 2020
The Expo 2020 has many positive impacts of the economy of United Arab Emirates. The Dubai is hosting the international expo 2020 which has been started from October 2020 and will remain continue till 20th April 2021. The Dubai is host of international expo 2020 which has a very strong impact of the economy of United Arab Emirates. This expo is opening is numerous opportunities related to production, manufacturing business, employment. The international expo 2020 is effecting all the departments in positive manners. The production business is increasing rapidly after the scheduling of international expo.
- Impacts of expo on UAE economy
The Dubai is hosting the international expo 2020 which will remain continue till April 2021, this has greater impact on the transportation business in the United Arab Emirates. It has been analyzed that international expo 2020 has increased thirty percent business of the Dubai airline. The businesses are rapidly increasing in the whole United Arab Emirates. The researchers have analyzed that the international expo has increased the growth domestic product of United Arab Emirates by forty percent. The international expo proves a positive trend in the economy of the whole world especially of United Arab Emirates (Bhavani and Kukunuru, 2016). The businesses are making a lot revenues and profit from the international expo 2020. The employment opportunities have increased with the help of international expo. Many individuals and organizations have planned to start new business which will create a lot of employment opportunities this will ultimately leads toward the economic growth and development. These employment opportunities are mainly linked the travelling and tourism sectors because these two businesses are rapidly increasing after the start of international expo. The foreign direct investment has very positive impact on the economy it directly increase the growth domestic product. The international expo has developed various businesses like, retail, hospitality, communication and transportation (Haneef, Ansari and Bhavani, 2019).
- The impact of recession on aggregate demand
The recession is one of the main components of economic growth cycle. This is the negative phase of the economic growth which has many negative impacts on the economy. In the recession period the growth of economy becomes very slow. The production and manufacturing business are become slow due to the decrease in the demand of products. Due to the less demand the business usually slow down their production process and supply become less in the economy (Bjornland, 2000). The recession period increase the unemployment rate. All these factors negatively affect the economic growth. The events like Dubai expo can be help full for recovery of the recession period. This international expo is beneficial for the companies and for individuals as well. The employees are getting extra benefits from the organizations and businesses. The employees of the Dubai companies are giving additional benefits and bonus for the international expo 2020. This expo is inviting the foreign investors to make investment in United Arab Emirates which will boost the whole economy (Tobin, 1975).
- Impact of Inflation on the economy
Inflation is about the increase in the prices of the product and services. There are many positive and negative impacts of the inflation on the economy. The two main factors are demand and supply which mainly decide the inflation rate in the economy. It is important for the government of country to maintain the inflation rate by adopting various strategies. The increase in inflation rate increases the investment activities (Chandra and Bahner, 1985). The businesses are become more efficient in the production processes and the real estate businesses are also grown. But on the same time the increase in inflation rate decrease the demand and buying power of the individual. The increase in inflation rate has positive impact on the exports of the country but on the other hand it harms the imports of the country. Therefore, it is necessary for the country to maintain inflation rate. To keep the inflation rate on reasonable level help to run the economy smoothly (Bjornland, 2000).
- Trade of between inflation and unemployment
There is an indirect relationship between the inflation and unemployment. The unemployment reduces the buying power of the individuals due to which they do not demand more for the products. The decrease in demand ultimately reduces the inflation rate of the economy. Similarly, the increase in employment rate increases the inflation rate because the buying power of the individual become increased (Brechling, 1968). Therefore, it is necessary for the government to maintain the employment rate and inflation rate in the economy; this will help to run the economy smoothly.
- Impacts of fiscal and monetary policies on aggregate demand
The fiscal and monetary policies are typical related to the financial planning of the state. In the fiscal policies the government prepares the budget of all the sectors of the economy. The state expenses and revenues are also part of financial planning and actions. The monetary policy can be positively impact the aggregate demand but it totally depends upon the financial planning and actions (Aschauer, 1985). The aggregate demand depends upon the buying power of the individuals and industries. When the economies have high employment rate its implies that individual of that economy have strong buying power which increase the aggregate demand. The monetary policies can be affecting negatively to the economy, like when the monetary policy increases the money supply in the country it raises inflation rate which is not the healthy sing for economy. But if the interest rate increases it help to increase the government revenues (Tobin and Buiter, 1976). The fiscal policy and monetary policy also plays a significant role for the economic development and stability. The strong financial planning stabilizes the economy position. The strong monetary policy controls the supply of money in the economy which supports to maintain the inflation of country which ultimately leads toward the economic growth and development (Jawadi, Mallick and Sousa, 2016).
- References
Aschauer, D. A. (1985). Fiscal policy and aggregate demand. The American Economic Review, 75(1), 117-127.
Bhavani, G., & Kukunuru, S. G. (2016). Impact of EXPO 2020 on Dubai Financial Market–An event study on banks, investment and insurance sectors. International Journal of Financial Research, 7(2), 163.
Bjørnland, H. C. (2000). The dynamic effects of aggregate demand, supply and oil price shocks—a comparative study. The Manchester School, 68(5), 578-607.
Brechling, F. (1968). The trade-off between inflation and unemployment. Journal of Political Economy, 76(4, Part 2), 712-737.
Chandra, M. J., & Bahner, M. L. (1985). The effects of inflation and the time value of money on some inventory systems. International Journal of Production Research, 23(4), 723-730.
Haneef, S. K., Ansari, Z., & Bhavani, G. (2019). Attractions of Dubai and Expo 2020: an exploratory study. Worldwide Hospitality and Tourism Themes.
Jawadi, F., Mallick, S. K., & Sousa, R. M. (2016). Fiscal and monetary policies in the BRICS: A panel VAR approach. Economic Modelling, 58, 535-542.
U-college 