The graying of the population is an example of

. What challenges do graying populations create for companies?

Since there are more people retiring, there will be fewer working people in the labor market. Companies will find it hard to source for workers in a labor market that comprises of the elderly. (David E. 2011).

Since elderly people are regarded as less productive, the quality of the work force will be reduced. Companies that hire a graying population will have its production output slowed down by this demography thus making the company less competitive. (David E. 2011).

Pension companies will be burdened while trying to pay for pension funds for this huge demography. (David E. 2011).

Since there will be a change in taste and preference, spending habits as well as lifestyle, spending on some products will decrease as more people enter this age bracket (David E. 2011). For example;

· A change in taste and preference in the case whereby the aging want to eat much healthier foods will have an effect on the food industry.

· A change in lifestyle will have some products such as sugary and high fat foods reduced thus affecting the companies which produce them.

· A change in spending habits will see the demand for some products abandoned since individuals in this demography will want to save more because they will be no longer working.

2. What opportunities do graying populations create for firms?

There will be a demand for Private Nursing homes and hospitals. (Liping Hou 2011).

There will be demand for Cancer treating drugs as well as life prolonging drugs for Pharmaceutical companies. (Cassindy 2011).

There will be a higher demand for products such as healthier foods as well as high demand for products offered by recreational facilities. (Liping Hou 2011).

3. How will demographic changes affect the competitiveness of countries in the international marketplace?

Since elderly people are regarded as less productive, the quality of the Chinese work force will be reduced. Since the economy will have more aging people, the country’s output as well as competitiveness will be reduced as compared to economies with a much younger population. (David E. 2011).

The increasing aging population might cause investment capital to flow from a country whose population in comparatively older to the one whose population is comparatively younger and consequently whose rewarding rate of the capital will be high. (Liping Hou 2011).

4. What has been the impact of the one-child policy on China’s economic fortunes?

Positive impacts

The individual savings rate has increased since the one-child policy was introduced which gives many Chinese more money with which they can save as well as invest. ( Marcus Roberts 2011).

Since the saving rate has increased, money can be spent on other necessities for the family which spurs economic growth. ( Marcus Roberts 2011).

Poverty rates have reduced due to increased saving and investment rates. ( Marcus Roberts 2011).

Negative impacts

The policy has reduced the demand of natural resources as well as the rate of resource exploitation due to a reduction in the demand for products by the lower demography. ( Marcus Roberts 2011).

It has also reduced the rate of investments in private education because the policy has created a reduced turnout at schools. ( Marcus Roberts 2011).

References

http://www.hsph.harvard.edu/pgda/WorkingPapers/2011/PGDA_WP_71.pdf

http://www.wikinvest.com/concept/China%27s_Aging_Population

http://www.na-businesspress.com/ijcm/HouWeb.pdf

http://www.mercatornet.com/demography/view/9013

http://www.pewglobal.org/2008/07/22/the-chinese-celebrate-their-roaring-economy-as-they-struggle-with-its-costs/