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By daigai
One of the main aims of all human activity is the satisfaction of certain basic needs for survival, the most fundamental of which are food and water. Of these, more difficult to obtain is food, unlike water, it does not come from the clouds. To obtain it men have to exert all their energies, mental and physical. It is this search for food that has lead to the development of international trade which now extends to all commodities, including luxuries.

The idea of world trade is of recent origin. International trade began to expand rapidly only after the Industrial Revolution, when men developed the devices for world communication and realized the necessity for obtaining the products of other countries. With the expansion of world trade, the study of Economics became of much importance to those engaged in international trade and commerce. Today, this subject is taught in all the universities and other institutions of learning throughout the world, for it has come to be realized that the study of Economies could lead to the extension of world trade by revealing new advantages of such trade.

From a study of Economics, together with Geography, it has come to be known that almost every country in the world lacks the geographical and geological conditions for the production of certain commodities. A country in which food can be grown in abundance may not be able to produce manufactured goods, and a country which is rich in mineral deposits and has the skills for the manufacture of goods, may not be able to produce food, owing to the absence of certain geographical advantages. Therefore, each country has realized the benefits of participating in world trade.

Studies of Economics have also revealed the wisdom for each country to concentrate on the production of only certain commodities, even though it has the resources for the production of many other goods. Malaysia, for example, could produce mote rice for its people in stead of depending on other countries for it; but it is appreciated that it is more advantageous for her to concentrate on the production of other goods such as rubber and tin. In the same way, many of the industrial countries in Europe could produce more food crops; but they too have realized the advantages of importing good and expanding their resources on the manufacture of goods which many of the other countries require.

This tendency on the part of the countries of the world to produce goods in which they have comparative advantages over others has led to the division of labor on an international scale. Each country specializes in the production of certain commodities and imports other commodities which other countries can produce more skillfully and advantageously. Though such an arrangement sometimes operates to the disadvantage of some countries, especially in times of war when communications is disrupted, yet it has been noted that it is still an advantage to maintain this position, for today there are enough means of averting the commercial disadvantages of war which, fortunately, does not occur too frequently. Even a cursory study of Economics would reveal the advantages of participating in world trade, on the part of the various countries of the world. It could therefore be argued that studies of Economics could make a great contribution to the extension of world trade.

Economics And Construction Studies Economics Essay

Construction is the general used to describe the activity of the creation of physical infrastructure, superstructure and related to facility. Also, this construction can be defined as the “process that consists of the building or assembling of infrastructure” (Adam Smith). Industry is the group of related economic activity which classified according to the types of good and services supplied. Therefore construction industry can be defined as the sector of an economics which construct, alter, repair and demolishes building, civil engineering works and other similar structure. On the other hand, construction industry is very important in the economics which is produce investment goods.

Perhaps, Economics comes from two Greek words, these are “oikos’’ which is meaning the household and “nemin’’ means management. So, economics can be defined as the study of how human and society make a choice on the resources that are becoming scarcity day by day. Or is the sturdy of production, distribution and consumption of wealth in human society. In addition, economics divided into two categories, these are; Macroeconomics is the study of an individual part of economics such as public choice, private choice and business choice. Also, it deals with the behaviour of economics unit, these economics unit are; consumer, workers, owners, business firm and other economics unit that involve in a construction works. And the next type is Microeconomics, this is the type of economics which deals with the economics quantities such as the level and growth rate, national output interest rate, unemployment and inflation.

Economic growth is the increase in the volume of the goods and services manufactured by an economy over period. It is conventionally counted as the percentage of amount to increase in real (GDP) Growth Domestic Product. Growth is commonly calculated in actual rapports or inflation-adjusted rapports in order to remove the distorting effect of rise on the amount of the goods manufactured. In economics, "economic growth or economic growth theory are typically refers to growth of potential output, production at "full employment" (John). In addition, the economic growth in Norway are developed by mixed economics.

Each country in the world are consider the economics in different sector, example of economics sector in the world are; construction industry, agriculture, forestry, fishing, mining, extraction of oil and gas and other economics sector in the world. Base on the housing marketing, the Contractor, Architect, Engineering, Quantity survey and other client in a construction industry are consider the economics during the construction work, for example, material of the building, logistic machinery, financial, quality of the building, cost, and the time of finishing the construction works.

In addition, the best economic housing marketing (Construction Industry) in the world are base on the time, cost and quality of the building. These three component are the goal of construction industry that depend each by each, “increase in cost of the building the result of the time also increase with the greater quality of the building”. However, the best economics country in housing marketing in the world are; China, Malaysia, India, Brazil, Norway, Iceland, United Kingdom, Hong Kong and other best economic country in the world. According to the above explanation with the best economic country, I would like to choice one country and talk about their economic in housing marketing (Norway).


Norway, is the one among the best economic country of housing marketing (Construction Industry) in the world which has a constitutional democracy in Northern Europe with a Population of 4.5 million citizen. On the United National Human Growth Index, Norway are the one among the three top countries in some year. A huge bond of natural resources combined with a capable of labour force and the approval of new technology made Norway a popular nation during the nineteenth 19th and twentieth 20th century. Before the independence, Norway economy was traditionally built on local farming population collective with other types of industry, like wood, timber, glass, and other material along with a housing marketing and international business company. Please refer to the figure one below.

Figure 1

Sources: Mollified Economic Of Construction Industry In Norway Sector.

The points in this figure show the sixteenth 16th century Price Revolution (1530s to 1590s), the Thirty Years War (1618, 1648), the Great Nordic War (1700, 1721), the Napoleonic Wars (1800, 1815), the only age of hyperinflation in Norway World War I (1914, 1918) and the stagflation period. The great amounts of increase joint with a slowdown in marketing, in the 1970s and early 1980s. And after the independence, in 1830 to 2003 Norway developed in GDP (Growth Domestic Product). The sequences, with few exceptions, reveal balanced growth rates with little huge variations. Perhaps, economic developed as a more or less continuous process happening in the 1840s. We can also determine the growth process slowed down through the last three decades of the 19th century. The years 1914, 1945 were more instable than any other age in question, although there was a moving and steady rate of growth until the mid-1970s and from then on slower growth. After the war the contest was to restructure the economy and re-establish governmental and economic order. The Labour Party, in office from 1935, grabbed the opportunity to establish a strict social democratic rule, with a growing public sector and widespread centralized economic planning. Norway first declined the U.S. proposition of financial aid after the world. Although, due to lack of hard exchanges they accepted the Marshall Aid program. By receiving 400 million dollars from 1948 to 1952, Norway was one of the biggest per capita recipients in every economics sector like industry, housing marketing, trade and others.


The direction of economic policy has been the main issue in Norway post-war history, especially as linked to assessment and the degree of government intervention in private industry and designed to stabilize and respond unemployment and inflation, to encourage growth and to encouragement the structure of industry. Economic planning was introduced, and several state-owned enterprises have been established. Earlier to the mid-1970s, Labour Party-dominated governments enjoyed a broad public consensus for their foreign and armed policies. All through, the previous 40th forty years in Norway housing markets were liberalized, block (bricks) and mortar subsidies were phased out, and a common policy aimed at all supporters of society was replaced with rules fixed at marginalized groups. In 1994, the national government introduced a new on-reserve housing policy, introducing an additional $100 million to First Nations housing over 3 years and developing a new program in order to allow the taxes to reach the societies. In fact, a new Advanced Housing Fund offers $1 million annually in allowances to innovative methods in construction industry, housing design with energy sources (electricity), and a Housing Preparation Stock provides $500,000 per annum in construction work.

In addition, the high record in property price in 2012 the commotion in Norway housing market are estimated to reach in 2013 as a new policies are presented. House prices will still rise this year, but the percentage would be somewhere between 4 and 6, after a 7.7% confound in 2012, “high activity, strong confidence indicators and low interest rates have resulted in great demand and pressure on housing prices,” (Laugen). However, Norway’s economy is expected to increase the percentage of economic in about 30% in 2013. Housing related components of social assistance in Norway are involved about $ 1.7 billion which includes heating and utilities supply costs, and a ‘shelter’ component for rent in loan-financed housing.


Basic Economic Principle.

The study of production, distribution and consumption of wealth in human known as Economic. Economic principle are the statement which explain the inter relationship among the economic factor which clarify what may cause what, or what may happen under specific situation. Economic principle are the limited supply of a good, joined with a great demand for the good results in a disparity between the wanted supply and demand stability. In evaluating theory, the scarcity principle proposes that the price for a scarce good should increase until the balance of good is reached between supply and demand. Although, this result in the limited exclusion of the good only for those who can have enough money, If the scarce resource occurs to be ounce. For example, individuals will not be able to attain their basicness. It’s logical that the market are commonly refer to the process in which the amount and prices of good are examining by how much people are willing to pay and accept for their product.

In addition, for every action in economic has its cost, this occur once you do anything, you can get the chance to make another. For example, you can have almost unlimited range of options. You can eat, sleep, work or chat with friends, family, but you choose to read this assignment of economic and construction studies. Your best play is the cost of reading this tasks. If you take the organising for the first class takes five hours and your next best alternative is working for $8 per hour, then preparing for class has cost you the opportunity to earn $40. In this technique, everybody are producer and consumer at the similar time, in such away one person’s spending another’s income. This relationship, with the transferability of currency, enables an economy to be self-sustaining – the flow of money, once set in motion, continues around the economy. Perhaps, this process is easily proved by succeeds a simple contract. For example, the procurement (buying) of hammer or tractor for the construction work, this purchase are obtained from the local hammer trade which cover by both cost of the construction of the hammer, the cost of the storage and for the repair of the hammer.


As we all know, that economics is the study of how people use their limited resources in order to satisfy their unlimited needs and desires. Also, David N. Hyman defined economic as a “study of how scarce resources are allocated among the alternative uses”. Each country in the world has their own economic factor in difference sector, example, industrial, construction industry, agriculture, forestry, fishing, mining, extraction of oil and gas and other economics sector in the world. Perhaps, a consideration which base on how a customer’s disposable income and other additional financial resources that incline to impact their buying activities are known as Economic Factor, for example, a marketing team of an engineering commercial are influences to do analysis of how the changing occur for each major economic factor relevant to their goal customers market that incline to effect a consumption pattern for their manufacturing goods. Also economic factor can be define as “all the unit required in the economic activity of production of goods and services with the effective and efficient utility and resources and fulfil the consumption demand in any market and nation economic”(K.E Case), Or “The set of fundamental information that affects a business or an investment's value”(R.C Fair). A various economic factors requirement to be taken into account once we determining of the current and expectable future value of industrial commercial or investment collection, For industrial commercial the main economic factors include labour, capital land and enterprise. In addition, foreign trade is a dangerous economic factor in Norway which exports to get in over 40% of the GDP (Growth Domestic Product). As a trading nation without a great housing market, Norway was mainly exposed to the effects of the global decline of the early 1980s and is sensitive to variations in world prices, mostly from those of oil, gas, and shipping. From the time when the early 1980s, Norway's exports have been dominated by petroleum and natural gas, which produce one-third of product exports by value of GDP.


Construction Economics is the construction Plan to training on how persons and groups make choices with limited resources as to greatest mollify client's wants, needs, and desires. This construction economic are commonly deals with the question of the executive form of an organization and the preparation of goods investment with the construction product, also construction economic, its conduct in the economic productivity of wealth investment. According to Li Shirong's “Construction economics are the studies of the resources of capital construction and the effectiveness of their utilization, including questions relating to the development of the material and technical basis, fixed capital stock and its reproduction, the creation of normative circulating capital in the construction industry, the training and utilization of personnel, the organization and improvement of labour productivity, the improvement of the wage system, and the organization of the system of material and technical supply” Or “Construction economics is associated with national economic planning, with a number of special economic disciplines (finance and credit, statistics, accounting, and analysis of economic performance), and with sciences that study the production technology of construction. It serves as a necessary methodological basis for determining the effectiveness of technical solutions to problems in the designing of construction projects and in the performance of construction work” (Li Shirong’s). Base on the above explanation of the construction economics, the whole construction team such as Contractor, Architect, Engineering and other client, are manage their economics in each project in a construction and determine the effectiveness of a critical solution in designing, measurement of construction project and in the performance of construction work. In conclusion, according to the above explanation of economic factor and construction economic, a transport of material from the industry to the site, buying of material, fixed capital stock, self and health of the employ are the economic factor which consider during the construction work.



Housing (Building) is the structure that is constructed from material which includes all attached apparatus and equipment that cannot be removed without cutting the wall and floors, or can be defined as anything the cover and protect the external influences such as weather condition, rain, sun and other. Marketing is the technique of companies which relate with customers to build a relationships that are beneficial to both parties. Also Marketing can be define as the “process of communicating the value of a product or services to customers” (Adam Smith). However, Markets work at the similar way for housing as an additional goods in the economy, the examining value based on supply and demand. It is both a worthy, a presence of consumed by the consumer, as well as an investment, established on its resale value, hence the reality and strength of the resale market plays an essential part in determining the worth of housing and its growth over time. However, Housing (building) arrangements are typically attraction on economic financial or offering technique to increase the basic capital for large-scale payments. The common logic behind such technique is to putting a capital from different sources, and the addition of loans from this pool with some form of payment for the facility of borrowing.


“Housing marketing is the general marketing of housing that being purchased and solid between buyer and seller either direct by owner or indirect through brokers” (John 1960). Perhaps, according to the above definition the effect of housing marketing in a construction industry are the conflicts between the contractor and client. This occur when the client wants to purchase the housing (building) from the company (contactor), for example, let pretend like you are the contactor and I am the client, As you’re a contractor is your responsibility to construct the building base on the three component that is the goal in a construction industry, these are Cost, Time and Quality of the housing (building). But you fail to manage these three component by construct a simple housing with high cost, low quality of the building and you spend too much time to construct that building. And as I am the client I came to your company and purchase that building in RM 300,000 but you sell in RM 430,000 which is too expensive for that building, all because the building are low quality and simple housing (building). Therefore, in this case it’s may cause a quarrel between the client and the contractor, and may affect the housing marketing in the construction company.


Housing marketing are commonly indicate the upcoming of economic in the construction company development but also can affect the future economic of housing marketing in Construction Company. This occur when the company construct a lot of housing (building) in the present time by depending a future economic development of housing marketing in the company, and hope to get the difference clients to purchase the buildings, then when the future time comes there are new style of the building. Therefore, economic in the construction industry can be effected by housing marketing in such a way that the contractor will not get the client in the future time and get the low future economic in the company, this is because of the new building style while the past building are still not purchase to the any customer. Also, Housing rates may affect economic activity through capital effects on private consumption and a increase in house prices also increase the value of housing relative to construction costs, that is the Tobin q (Tobin, 1969) for residential investments in Norway.

The economy of Norway is a developed mixed economy with heavy state-ownership in strategic areas of the economy. Although sensitive to global business cycles, the economy of Norway has shown robust growth since the start of the industrial era. Shipping has long been a support of Norway's export sector, but much of Norway's economic growth has been fueled by an abundance of natural resources, including petroleum exploration and production, hydroelectric power, and fisheries. Agriculture and traditional heavy manufacturing have suffered relative decline compared to services and oil-related industries, and the public sector is among the largest in the world as a percentage of the overall gross domestic product. The country has a very high standard of living compared with other European countries, and a strongly integrated welfare system. Norway's modern manufacturing and welfare system rely on the financial reserve from the resourcefulness exploitation on the North Sea oil. [7][8][9][10][11]

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