Fundamentals and Basics of Economics – Domestic and International Approach

Wherever we go, economy is anywhere in the world and can be on all major continents around the world. This starts in a domestic to a global approach. In my opinion, economics is a social science. There are different branches of economics to deal with and these are: sociology which studies society and culture, physics which studies utility in the production of goods and services which produce machines and electricity, political science as it examines the economic policies of each studies leaders around the world because it influences governments on economic activities History that studies the past, present and future events of economic developments Religion because it will be based on the studies of religious traditions and beliefs that can encourage economic development or discourage.

Readers and viewers need to discover and know the content of economics. This article takes a look at fundamental and basic principles of economics. Fundamentals of economics is focus on banks or banking, business, business cycle, depression, economic freedom, income, inflation, investment, labor force, manufacturing, marketing, money, monopoly and competition, consumer price index, cost of living, physiocrats, price, production, profit , real estate or dealing with real estate business, recession, rent, standard of living, supply and demand, trust, unemployment, value added tax in which I believed this term will be understood by the viewers. The meaning of economics is very simple. According to Fajardo, the author of his book entitled “Economics”, third edition, the meaning of economics is the social science concerned with the proper allocation and efficient use of available resources for the maximum satisfaction of human needs and wants.

Here in economics there is also an economic system and theories to be learned by the readers and viewers. They need to know the information of capitalism, communism, economic determinism, fascism, laissez-faire theory, business cycle theories, manioralism, mercantilism, socialism and syndicalism. They should keep in mind that the economic system is a set of economic institutions that dominate a particular economy. There is also a history in economics from past to present, even into the future. According to Fusfeld, who is acquainted with John Meynard Keynes or known as “Baron Keynes of Tilton”, who has a famous book that has been very popular until now, entitled “Keynes General Theory of Employment, Interest and Money”, which was published in the year was written 1936, one of the most important books on economics. Apart from this, among his other works are A Tract on Monetary Reform written in the year 1923, The End of Laissez Faire Theory written in the year 1926, and also A Treatise on Money written in the year 1930. There is also a future in economics and these are called “ethical economics which I will find out in my next article and the next one is the economic crisis which can’t predict when it will happen so it belongs to the future.

After mentioning the introductory part and the historical background of economics, this time I turn to the domestic approach. The writer of this article will focus on the Philippine financial system to share ideas, thoughts and opinions of other countries. This article is of great help to those who are going to get a Masters or Doctoral Degree in Economics. In the Philippines, the most common financial institutions are based on banks, pawnshops, insurance companies, lenders, financial institutions or lenders. The Banngko Sentral ng Pilipinas or known as BSP (former Central Bank of the Philippines) is the central monetary authority and their purpose is to maintain monetary stability and promote equilibrium and sustainable economic growth.

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The content of the last part will be an international approach, as it deals with the global economy. On our planet Earth, seven continents around the world come together to participate in international trade. For those who are interested in this part of my article, they can find or search it in Tariff, Trade, International Monetary Fund or known as IMF, Asian Development Bank or known as ADB, Export and Import, Common Market, Exchange Rate, World Bank.

To understand the meaning of international trade, James B. Calderwood says, “International trade is the exchange of goods and services between countries and is sometimes called “global trade” or “foreign trade”. To explain this meaning, it makes a nation to produce the goods it can make cheapest and exchange them for goods it finds more expensive to produce from one country to another country That is how international trade means to the economy The prime example that practice is International trade is Japan because they can compete with other countries.

The World Bank, the International Monetary Fund and the Asian Development Bank are our country’s main lenders. Their development funds were focused on economic development, such as agriculture.

After mentioning my content of economics from domestic to global approach, they should bear in mind that we are concerned about social responsibility, this does not refer to the rich or poor people.