Big to Fail Problem?: Economic Term Paper

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There are studies done by researchers that endorse that foreign direct investment effects the economic growth by means of different networks. Firstly, by means of the technological modification where the worth of human capital plays a vital position in attracting the technology. Secondly, the environmental circumstance of the host (receiver) nation likewise effects financial growth. The ecological situation was evaluated utilizing the expansion of the local monetary system. The answers reinforced the study done by the researchers. The development of technology through the monetary system can aid in the means of assigning foreign direct investment funds more professionally.

Internal Relations

International relation is another vital environmental aspect that can be a solution for economic growth. This is good because it will be able to measure the political friendliness that goes on among nations. If there is no friendliness among the nations than it will be very hard to receive any kind of backing or support with financial issues. It can also hinder the investment strategies. This falls is in line with Ricardo (2007) view on social capital idea. This social capital idea that mostly denotes to the interacting within and among social networks in addition to within individuals is recognized as relationship interacting. In macroeconomic viewpoint, international dealings are measured to be a vital variable in appealing to foreign investment to the host nation. The researcher believes that this is the best solution because as mentioned earlier, without the help of other nations, it is hard to have help with the financial growth of any country. This is not a battle that can be fought a lone, the more friends along for the ride the better.

Congress Involvement

As many have examined the horizon and looked at the issues that lawmakers today are being faced with, the likely assumption is that the 113th Congress will be another stimulating era for many political leaders due to the economic growth issue.

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Some in congress propose that regulatory reform necessary for economic growth. There is actually a divide that is occurring when it comes to the question of whether politicians in Congress need to go ahead and follow policy that enables growth. And one of the unquestionable directions to facilitating growth -- and cheering on the stability that stockholders and job makers need to shape that growth -- is to reform the obscure and incompetent regulatory system. Incompetent, redundant and unnecessary regulations have had a marked undermining effect on job recovery and growth. The system is totally old-fashioned, and it is loaded with too many rules that are not effective or have been forgotten. It should not be of a surprise to any person, then, that companies big and small are selecting not to invest, enlarge and hire for the reason of the doubt neighboring the present regulatory system.

Conclusion

It is clear that when it comes to economic growth, political theater, and it does not even matter how persuasive, may not be the solution in fix what ails some economies especially in the U.S. Growth, determined by small businesses all over the country, will essentially be the engine that transmits the economy further than the episodic economic disasters that have defined our current experience. It is possible that Washington could help spike financial growth today by positioning in place a regulatory system that does not permit, but also cheers, a different economic increase.

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