Economic Essay 1
Import goods is machinery, electronics and electronic equipment, oil, steel, transport equipment, organic chemicals, plastics. Gross external debt is $333.6 billion (2009). For public finances, Public debt is 23.5% of GDP (2009). Revenues is $199.9 billion (2009 est.). Expenses is $213.7 billion (2009 est.). Economic aid is ODA, $900 million (donor) (2009) aid to North Korea excluded. Credit rating is Aa2. Foreign reserves is $270.9 billion (November 2009).
(*Based on purchasing power equivalencies to the U.S dollar. Source: CIA World Fact Book, 2008, www.cia.gov.)
Diseconomies of scale occur when a business grows so large that the costs per unit increase.
Diseconomies of scale occur for several reasons, but all as a result of the difficulties of managing a larger workforce.
As the business expands communicating between different departments and along the chain of command becomes more difficult. There are more layers in the hierarchy that can distort a message and wider spans of control for managers. This may result in workers having less clear instructions from management about what they are supposed to do when.
In addition, there may be more written forms of communication (e.g. newsletters, notice boards, e-mails) and less face-to-face meetings, which can result in less feedback and therefore less effective communication.
Lack of motivation
Workers can often feel more isolated and less appreciated in a larger business and so their