Abstract
Abstract Economic models are built primarily following the classical economic theories, but a challenge to build good models with classical theories is needed to define the exact value of the Earth, which is hardly definable. Quite often national gross product indicator calculation reuses the same performance indicators, where the resource and income distribution system is not linked to production factors. The resource and income distribution system is primarily associated with low productivity (execution of a sales plan, execution of a profit plan, profitability level, increase in market share, personnel turnover rate, hours worked per employee). Changes in the productive and economic structures of the markets result in new innovative growth patterns which, based on customer motivation, are linked to the concentration of capital in regional and national markets, the growth of transnational markets and the development of technology. At the same time, extensive economic development through natural resources leads to deforestation, landscape changes, desertification, swamping and soil fertility renewal. So far, it often has been assumed that economic growth depends on the use of natural resources, and natural resources are unlimited. The results are “resource crisis”: resources are running out and resource prices are rising, thus invalidating a particular model. On the other hand, the eco-economy approach is a sustainable future for the economic modelling. The principle of eco-economy is based on a production system, which relies on re-cyclicality (the basis is the production of zero waste production). For this to happen, a transition to a completely new mind-set is needed. The research results were previously approbated during the graduate meeting of the Baltic DBU scholarship holders from 4 to 6 May 2018 in Latvia.
Highlights
The importance of ecology is becoming increasingly important in the 21st century
Society and economists are more frequently searching for an alternative economic model, in which prosperity can be created without harming the environment, because air and water pollution, deforestation are problems that
Geoeconomics is based on a new geopolitical approach from the country, which shows how global wage is disseminated across different countries
Summary
Society and economists are more frequently searching for an alternative economic model, in which prosperity can be created without harming the environment, because air and water pollution, deforestation are problems that. Economics is a system of production, distribution, exchange and consumption of goods and services. In connection with the limited resources and the not limited human needs, it is necessary to save resources. This is the reason for the economy to be considered as a science. The economy in any society should answer the following questions: What goods and services should be produced; how goods and services should be produced; are the produced goods and services demanded; in what quantities; is the production sustainable?
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