The Upside of an Economy in Transition

Upside of an Economy in Transition

When an economy is in transition it simply means that there is a lowering and rising of trade barriers as well as a lot of government transitions.  Often during this time there is also a period where the roles of governments are redefined and there is more demand to keep up with supply.  Although an economy in transition can be stressful most often for politicians and officials there is also an upside to the situation.  There is often a lot of inflation during these periods that can be hard on the average citizen but again there are always positive things that arise out of the negative.  One positive that comes from a transitional economy is the fact that there are more and greater opportunities for investments.

So what is the upside of an economy in transition?  Firstly when an economy is changing it is often going from a planned economy to a free market economy or an open market economy like that of the United States.  The transition itself can be difficult and long and often will be difficult for the average citizen to handle as the inflation of prices can be high.  However there is an upside to this as it opens many different foreign capital and exchange options and can help to stabilize market pricing.

Another advantage of a transitional economy is that by opening up new relations with foreign countries it allows for professionals to not only travel to other countries but to also practice professionally there.  This is a great opportunity for individuals to expand their horizons and for companies to branch out and go global.  This is especially the case in medical and scientific research positions.

When the economy is in transition there are many downsides but also upsides for those that look for them.  For private label and smaller companies a transitional economy can really benefit them as they often sell their products for lesser prices than name brand products.  Since the economy can be tough on a family’s income many are turning to private label or off brand products to get what they need.  This is not only helpful to the smaller private label companies but it is also increasing the quality of the product that they are putting out.

An economy in transition can also be good for individuals that are looking to get into investing whether it is in stocks or in properties.  When an economy is in transition stocks are going to fluctuate and an investor can likely purchase a stock for far less than it would usually be worth and then in the future trade it for a large difference.  The same goes for the real estate market.  When the economy is down and transitioning properties can be sold for far less and then later flipped for a profit.

An economy in transition can be hard on everyone as it often impacts the state officials, the government, and the people.  However, there is always a silver lining that includes the rise of private and small owned companies, and international trade.

One Response to “The Upside of an Economy in Transition”

  1. Esteban
    July 17, 2014 at 5:37 pm #

    I like it when individuals come together and share
    thoughts. Great website, stick with it!

Leave a Reply

Leave your opinion here. Please be nice. Your Email address will be kept private.