Devaluation Of Pakistan's Currency

10 Pages 2476 Words

affect an economy of a country. These factors are:

I. Land.

II. Labor

III. Capital.

These factors are in turn dependent on other factors; such as:

Population – if the working population of a country, also called the labor force, is large then it will have positive effect on the economy. But if dependent population like women, children and the old is greater then this will adversely affect the economy of the country.

Foreign relations – the relations of a county with others is very important for trade. Wars and hostility is a strain on the economy causing depletions of important resources to be spent on defense instead of on the deserving population.

A stable political scenario- a stable government is very important for a stable or an improving economy. This not only encourages foreign investment but also maintain existing economic policies for long-term benefits. Constant upheavals dissuade not only foreign but also local investments and constantly changing economic policies destroys economic development.

These fact...