Note: Sample below may appear distorted but all corresponding word document files contain proper formattingExcerpt from Term Paper:
S. economy coupled with slower growth rates in key U.S. trade partners, and not a sign of poor economic health.
Was this an attempt of the administration to put a happy face on bad economic news? Quite simply, U.S. consumers, said the Bush Administration, had more dollars to spend on imported goods, hence the increased gap -- the gap in the short run was a sign of health, said the administration. "We have an economy that is growing faster than most around the world and that can increase the trade deficit," said White House spokesman Scott McClellan. The Commerce Department said the U.S. trade gap widened in October to a record $55.45 billion. (AP Wire, 2004)
Outside analysts also looked to the higher cost of crude oil and petroleum products played a key role in the October figures, putting a not-so happy face on the balance of payments deficit in capital assets in the form of merchandise dollars, one of the key elements of the balance of payments. (Ruby, 1999) the October record deficit broke a record for the United States balance of trade simultaneously as oil prices posted their biggest climb in fourteen years. Demand grew sharply for foreign-made consumer goods in the U.S. true, but the nation as a result bought $17.69 billion of energy-related petroleum products from international sources. At the same time the average price of a barrel of crude jumped to a record $41.79 from $37.62; the $4.17-month-to-month jump was the highest since a $4.45 rise in October 1990.
Thus, oil prices played a key role in the current balance of payment statistics, as well as administration financial policy regarding deficits and spending. The U.S. posted a record $7.2 billion deficit with the members of the Organization of Petroleum Exporting Countries, Commerce said. Also a record was the $9.46 billion in imports from OPEC countries. (AP Wire, 2004)
The Bush administration said the solution to the U.S.'s chronic deficit in the long run was to boost exports and to negotiate new trade agreements as well as enforce existing trade agreements. The administration agreed it should reduce deficits, and it cautioned protectionism was not the answer to rectifying the balance of payments, as "the most important thing for us to do is to continue to expand trade around the world and open markets to American products and producers and to make sure they have a level playing field on which to compete," McClellan said. (AP Wire, 2004)
But the burgeoning United States deficit looms large. Deficits cause concern for international investors, and deficits represent credit owed to lenders, including other nations, which results in record out payments and sways the balance of payment against the United States' favor. The war in Iraq's likely continuation, George Bush's social security overhaul, and the Bush administrations proposed tax cuts all means that in the short run, such deficits are likely to hamper the United States' current rectification of its balance of payments.
Fears remain that the United States, as the force of world opinion turns away, will become a less attractive investment prospect, and that the dollar will continue to weaken as current consumers in the nation remain addicted to cheaper imported goods, all the while decrying outsourcing of jobs with their every breath. Meanwhile, although the U.S. deficit in international trade of goods and services swelled 8.9% from a revised shortfall of $50.93 billion in September, no clear solution has presented itself to the wealth of political and economic problems that cause such debts. Moreover, such a sustained reliance on imports will certainly act as a drag on domestic growth and they may also increase competitive pressures on domestic producers, while an increase in exports could boost domestic production, but exports rose 0.6% to $98.06 billion in October. (AP Wire, 2004)
AP Wire Website. (2004) "U.S. Trade Gap Widens as Production Rises." October 2004.. Retrieved 17 Dec 2004 at http://app.quotemedia.com/data/newsItem.htm?storyId=1533543
Balls, a. (19-20 June 2004) "U.S. current account deficit £1.5bn a day." Financial Times.
Ruby, P. (1999) "Balance of Payments." Digital Economis website last updated 2003. Retrieved 17 Dec 2004 at http://www.digitaleconomist.com/bop_4020.html
Hughes, J. (14-15 August2004)" Record U.S. trade deficit follows rise in imports,." Financial Times.
Hughes, J. (15 September 2004)"Widening deficit reveals U.S. reliance on foreign cash." Financial Times.
Swann, C. (1 March 2004)"America's rocketing external deficit faces a shortage of fuel. Financial Times.
Swann, C. (13 May 2004). "Yawning U.S. deficit fuels fears for the global economy." Financial Times.
Swann, C. (11 March 2004)"Falling dollar fails to narrow U.S. trade gap, C Swann, Financial Times.
Wolf, M. (11 August 2004) "Asia's game with America is a long way from ending." Financial Times.
Wolf, M. (18 August 2004) "America is now on the comfortable path to ruin." Financial Times.
Wolf, M. (25 August 2004) "Why the U.S. current account…[continue]
"Balance Of Payments Explain Briefly" (2004, December 18) Retrieved December 11, 2016, from http://www.paperdue.com/essay/balance-of-payments-explain-briefly-60495
"Balance Of Payments Explain Briefly" 18 December 2004. Web.11 December. 2016. <http://www.paperdue.com/essay/balance-of-payments-explain-briefly-60495>
"Balance Of Payments Explain Briefly", 18 December 2004, Accessed.11 December. 2016, http://www.paperdue.com/essay/balance-of-payments-explain-briefly-60495
macroeconomic policy measures introduced by the UK authorities in response to the global credit crisis and associated UK recession Macro-economic policy measures This essay is based on two scenarios of financial crisis that occurred consecutively in the United Kingdom and other parts of the World. The recent economic recession started in 2007 up to 2010 while the credit crunch was experienced in 2002 up to 2004. In both of the financial
Other tools frequently used in this approach are positioning surveys and moving-average trend following trading rules. Fund managers regularly use these patterns to take informed decisions for short-term investments (Exchange Rate Forecast, 2010). Exchange rate risk affects both revenues and costs, which in turn affects a company's marketing, production, and financial decisions (Shapiro, n.d.). If a company's revenues are down then they might find themselves with less money to produce
Under the arrangement, moreover, a country with efficient production and a favored competitive position (including as enhanced by new capital goods) is rewarded with rising income and reduced unemployment. No grand scheme of state or international planning and direct control is required. Exchange rates are for the most part fixed under the classical gold-flows mechanisms (say, $/£ const. within fixed limits), as stated, and adjustments to trade imbalances
S., France and publicity, Chad was able to renegotiate more favorable contracts with the Bank, expropriate over $450 million in taxes from the private Consortium firms which they claim they had already paid, under the threat of replacement with Chinese firms. Global oil prices spiked, and Chad cleared over $1 billion in revenues in the last year of the Bank's project in 2008. Much of this increased income coincided at
While on one hand, the Nile gets the highest discharge from rainfall on the highlands of Ethiopia and upland plateau of East Africa, located well outside the Middle East region; on the other hand, discharge points of the other two rivers, Euphrates and Tigris, are positioned well within the Middle East region, prevailing mostly in Turkey, Syria along with Iraq. In other areas, recurrent river systems are restricted to
What kind of regional and international cooperation is needed to respond to emigration pressures in many low and medium income countries within EU? In addition to the existing EU standards on migration, what other measures could be taken at the national, regional, and international levels to better protect migrants? Answers to these questions inexplicitly have direct implications for the growth environment and have become more pressing issues as the
Inappropriate exchange rates can spell disaster. A fixed exchange rate is ideal. There are sharp mismatches in the financial and the banking sectors of the countries. The national debts of countries have also become subjects of alarm and controversy. "The global economic upturn seems to be gathering pace -- it certainly is in Asia, now the world's fastest growing region. A period of economic growth offers a chance for