With the influence of globalization every country certainly can not meet all of its own needs. each country must be ready to open up with other countries to cooperate with overseas communities. Role of overseas community is what causes the circular flow of economic activity are better able to describe the economic model which conforms to reality.

In the four sectors of the economy there will be two groups of economic actors, namely the community of foreign and domestic society. On the foreign community there are households, firms, and governments. Likewise, the economic actors in the country. They interact with each other to form a system of rotation of goods and services, factors of production, and money between economic actors in domestic and foreign economic actors.

These interactions can occur at the goods market and factor markets. In the market of goods occurs the flow of goods and services in the export and import the results of production. Exports of goods and services causing no flow of foreign exchange (foreign currency) into the country. Vice versa, with imports means a foreign country to send overseas. Meanwhile, in the market of production factors are the flow of factors of production and remuneration in the form of foreign exchange flows.

Incoming Terms:

• Economic circular flow of an open economy
• describe the economic circular flow of a four sector open economy
• economic circular flow of a four sector open economy
• participants in an open economy
• four sector open economy
• dailytape com the-economic-circular-flow-of-a-4-sector-open-economy
• circular flow in a four sector open economy
• four sector economy circular flow
• economic circular flow of a 4 sector Open economy
• four participants in the circular flow
• four sector economy
• Discuss the interaction between the four major participants in the open economy circular flow model
• Discuss in detail the interaction between the four participants in the open economy circular flow model
• an open economy circular flow model illustrates the ecomonic interaction between the four participants
• Circular flow upto four sector economy
• explain the circular flow model of an open economy
• four sector economy definition
• four sector model
• the economic circular flow in an open economy
• four participants in the open economy circular flow model
• roles played by all the participants in an open economy
• money flow in four sector open economy
• four participants in the open economy
• four participant in the open circular flow model
• discuss the circular flow model in open economy

Money is a vital tool in our lives today. Without money, we will not be able to meet the needs and desires in life. Money is one object among many objects in the economic sense. Each object has a value, although the value of a single object with other objects is not the same. Society gives value to a thing, because it provides benefits to the community concerned. Only objects that have value to her request. So as for why people give value to something that matter, is because it was requested by the communities concerned, in other words because it gives benefits or to meet the specific needs of the communities concerned. The greater the benefits or needs can be met by something object, the higher the value of the object in question. Conversely the less the benefits provided by some things, the lower the value assigned by society to him.

Why does money have value? This question is not difficult to answer if it was accepted that the money that too is an object. Money as an object can not be separated from the description mentioned above. Clearly the money has value, because the public making a request to it. Furthermore, that money has value because it can meet the needs of the community in many ways. Indeed it is only as an intermediary tool alone, but because the money was to benefit as an intermediary tool then that money has value. Thus did the changes the value of money is closely linked to demand changes to it.

Whenever such a rising demand for money, then the value of money rises, the opposite if the demand for money is a little money and even then the value will decline. Rise and fall of demand for money we can see from the speed of the velocity of money. The faster the velocity of money means less demand for money, meaning money fled to the goods. Conversely, the slower velocity of money, the greater the demand for money, in other words the more people want to save some of his wealth in the form of money. In the circumstances the velocity of money very fast which means lower demand for money, value for money will fall. Furthermore, in a state of very slow turnover, which means rising demand for money, value for money will rise.

Incoming Terms:

• velocity exchange rate

Income people either fixed or not fixed will be influenced by the presence of inflation, including:
1. in times of inflation, property values ​​continue to experience price increases exceeded inflation. Real income of not fixed-income residents has decreased or declined. Thus inflation will widen the gap of income distribution among the members of the community.
2. inflation is detrimental to society that have a stable income, because the wages or salary earned can not keep up or adjust the price increase, so become the burden on society.
3. inflation causes people not want to save money and encourage reluctant to seek loans in order to adjust incomes. This will inhibit the development of the business world.

Housewife who has the money from a number of family incomes, trying to use the money, with a careful and full consideration. This they did with the intention of:
1. to determine which items are truly needed
2. adjust between income and expenditure has been planned
3. not outdated, according to the local community
4. for the sake of pride or prestige in the association
5. do not be wasteful
6. carefully before buying, researching the quality of the goods or types of goods to be purchased

Consideration of these mothers or who the consumer is important because many consumers fail to shop. In a sense after the shop had a different impression: the quality is not good, its size does not fit, color and type does not fit, not durable, and others.

The market as a meeting place between buyers and sellers to conduct sale and purchase of goods and services, has several functions, namely:
a. Price-forming functions, which can be used to determine the appropriate price for the users of goods and services.
b. Distribution function, namely to distribute the products to the interests of users of goods and services.
c. Promotional function, which is used to introduce the products to the public.
d. The function of organizing production, which can be used to define or calculate the number of profitable production and to determine the production of desired by the community.

Economic Sciences, is part of the social sciences. The social science has its object of community and each science is reviewing its object from a certain angle only. Economics review its object the community from the point of his efforts to achieve prosperity. Thus, the definition of economics is as follows: “Economics is a science which studies people in their efforts to achieve prosperity. ” What is prosperity? Prosperity is a condition in which people can meet their needs, either in the form of goods or services.

From the above definition, it is clear that to achieve prosperity, people have to tried. Man must devote energy and mind to get goods and services needed. Goods and services must be sought and should strive to be owned. Humans should try to get it, because these goods and services less numerous when compared with the request to it. In general, goods have economic nature, meaning in order to get it must to give up something. There are items that do not have to sacrifice something to get it. Objects like this are called objects are not economical or free items. Objects such as this does not make concern of economics. The concern of economics is the objects that are economical.

In general, developed countries in the world, most economies are supported by industry sector. Industrial development provides many positive impacts for the life of the nation, including the following:
1. community needs are met by the domestic industry, so on-made goods overseas usage is reduced
2. industry helped increase the income of foreign exchange
3. industrial development requires the employment of means which will reduce unemployment
4. increase people’s income
5. allow the opening of other businesses outside the industry, such as transportation services, banking, and housing
6. encourage people to think more advanced and economical
7. young people delay marriage age

Incoming Terms:

• positive effects of industrial development
• good effects of industrial development
• positive impact of industrial development
• positive impacts of industrial development
• industrial development positive impacts
• industrial and industrial development positive effect
• impact of industrial development on development
• Positive impact of industry
• positive impacts industrial development
• positive impacts of industrial
• positive impacts of industrial developement

Factors that become obstacles to the smooth operation of industries, among others, as follows:
1. shortage of working capital
2. limited skilled manpower and technical experts
3. marketing of industrial products are substandard
4. produced low-quality goods
5. Inadequate infrastructure
6. components of certain raw materials still rely on foreign
7. mental attitude of the community who prefer foreign products only because of prestige or status
8. the existence of an unhealthy business climate

Money has been encouraging people to extort power and thought. The money has led humans to create various kinds of satisfying needs. As if the money has become the goal of human life. Money has caused everyone is basically an accountant. This means that all his actions always take into account gains and losses.

Money has caused an agreement within a family on the basis of money. Furthermore, the use of money in the community have eliminate mutual help properties that are characteristic of the society before money exist. Money has played a very important role in all branches of the field of human life.

In general, people trying to collect money as much as possible during his life with his efforts. It seems as if money was the goal of every human being with all sorts of activities. That is money, there are positive and negative influences caused.

Incoming Terms:

• why is money important to our society
• why is money important to society
• why is money important in our society
• why is money needed in our society?