DOLLARIZATION : THE CONSUMPTION MASK

In the family 2000, the Ecuadorian Government, by official executive music director decree, adopted the U.S. Dollar as the official local anaesthetic currency. Since that grade on, none of the governments we have chosen (or not) has evaluate in a proper way the consequences that a lack of monetary and fiscal policies would cause in an economy with high dependence on systematic devaluations and emission of currency as anti-inflationary instruments. There be several aspects that most defenders of the current system, such as the chairperson of CAPIG (Small and Medium Enterprises Chamber of Guayas) Joyce De Ginatta, who emphasize that: Dollarization has increased our purchasing humanity power and has brought stability to our economy and thus, have attracted the at tention of irrelevant investors who had considered Ecuador as an emerging economy . Indeed, foreign investment is at once precede in our economy with the highest level of the last ten years. It is demonstrable that a country with no risk of devaluation is lucrative for a foreign company. Moreover, it is more than convenient to earn their local meshing in dollars.

Especially if people who have neer know certain types of products before are now hypnotized by the market bargains that have built a spending block out that permanently increases the demand; another conjectural fact of stinting stability brought by Dollarization. This demand is by and large increased by the attraction of the local consumer to all types of merchandise goods and services that beleaguer our market. Two basic things basically attract, a ccord most merchandising theories, the consu! mer awareness : Price and Quality. Indeed, the Ecuadorian consumer is in the main attracted by the price, no matter how good the product is. This measure has been the main part that has increased the volume of importations in disadvantage of local industries that ingest the loss of their market share, now crammed with foreign goods . As local consumers do not take woodland into consideration, it is necessary to analyze...If you pauperization to get a full essay, do it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay