Economics is the study of resource allocation by individuals, corporations or nations. This is done to ensure prioritization and maximization of the resource at hand. Economics is studied according to 2 significant branches of specialization. These branches are macroeconomics; the study of the economics of quantity where a holistic approach to the variables that affect the financial positions of large organizations and corporations is considered and microeconomics which specializes in the study of these variables on a specific narrow approach where individuals and smaller organizations are studied. You can visit economics help to get more reasons why economics is important but let us start by considering the following ten reasons of why to study economics.
On the very basic ever, understanding how to allocate and balance the resources that you have makes you into a better financial manager individually. You will learn how to use expenses wisely and prioritize them in order of what is most necessary. Economists study this on a broader scale. Before they practice it in business and organization scenarios, they have already made themselves into better financial managers.
By becoming better financial managers, economists learn how to make sure they still have resources at their disposal. They then go the extra mile to ensure that they are planned for any future expense by saving. After putting money aside in the form of saving, they make sure they have left an amount for financial developments. They can determine the best ways to make these investments.
One of the main reasons for education is to get the expertise necessary for industrial career purposes. Economics is very lucrative in terms of career options and opportunities. With an economics degree, one can have a career in the stock exchange. Economics predict financial trends and help brokers determine which stocks appreciate and which ones depreciate. This is precious information to stock brokers and stock investors.
Economists are sought after in the banking industry to help them develop innovative products for their customers. They use mathematical and computerized models to analyze the markets and then strategize on the policies to craft for the development of financial products according to their target market.
Every new financial year, the government, through its treasury announces and releases it's country's budget for the year in terms of how much they will allocate to each of the sectors. These budgets are always carefully constructed by economists after the analysis of factors like the amount of revenue the country made the past year, the amount of money spent at that time, the inflation rates in the money and banking systems, the industrial and developmental growths of various areas in the country among many other things. It is essential for countries to have economists so that they can provide these services to the country.
A country's financial and industrial growth rate is determined not only by the revenue it collects within its borders but also by the revenue it gets from its relationship with other countries. These business relationships ultimately affect the currency of a country about other international financial markets. The simplest way to understand it is to look at the countries that offer grants and loans for infrastructural developments. They offer these amounts of money according to projections of the effect to the economy that the developments may bring, and the appreciation value of money with relation to the duration that they have given for the recipients to pay up the amount.
International trade and international finance are similar but not the same. They are identical in the manner that they both consider the financial position of one nation holistically to the other. International trade and finance differ in the way that international finance is entirely a macroeconomics branch, but international trade falls both to micro and macroeconomics. It is concerned with how organizations utilize international markets for business.
Corporate social responsibility cannot be effective without complete analysis and projections of how the developments of the element of philanthropy will benefit the target society. Philanthropists use economists to determine what developments will be most beneficial to a particular society.
Major government decisions like relocation of people for purposes of construction of industries or relocation of wild animals, land reclamation, deforestation and other significant decisions that have an impact to the natural position of things require harsh environmental impact assessment and economic value assessment before execution. Nations need economists to consider these projections before execution.
All academic disciplines have an element of necessity, but different people study different subjects for different reasons. Some mathematicians have an interest in how the mathematics of finance and economy operate and decide to pursue economics to get a deeper understanding on this subject.