Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
The biggest advantages that this is providing to everyone are: increased exports. According to the Office of the U.S. Trade Representative, this is resulting in a sharp rise in sales for the following products including: vehicle parts ($56.7 billion), machinery ($63.3 billion), electrical machinery ($56.2 billion) mineral fuel / oil ($26.7 billion), plastics ($22.6 billion), grains ($2.2 million), red meats ($2.7 billion), fruits ($1.9 billion), vegetables ($1.8 billion) and private commercial services ($63.8 billion). These areas are offering competitive advantages for both countries. This is because they are reducing the costs that consumers have to pay for a host of products and services. ("North American Free Trade Agreement," 2013)
The benefits are that wholesale and retail prices are more stable from this kind of agreement. This helps to create economic growth by reducing inflation and allowing consumers to spend more money in other areas. At the same time, this is increasing the standard of living in countries such as Mexico. This is because many different firms will establish operations inside these locations from the low costs of labor. Over the course of time, this will help Mexico to expand the middle class and improve its standard of...
("North American Free Trade Agreement," 2013)
The disadvantages are that many established industries in the U.S. are outsourcing jobs to these locations. This creates a situation where many cities will experience rising levels of unemployment and economic blight. When this happens, more people will be forced to go to other locations where there are higher paying jobs. This has negative effects on cities such as Detroit. As they will have trouble adjusting with these changes and attracting new industry in order to keep higher paying jobs inside these locations. In the future, this places more pressure on local governments to maintain traditional services from a declining revenue base. ("North American Free Trade Agreement," 2013) ("The Abandoned City of Detroit," 2012)
References
Fed Keeps Stimulus in Place. (2012). Reuters. Retrieved from: http://www.reuters.com/article/2013/01/30/us-usa-fed-idUSBRE90T0TF20130130
North American Free Trade Agreement. (2013). USTR. Retrieved from: http://www.ustr.gov/trade-agreements/free-trade-agreements/north-american-free-trade-agreement-nafta
The Abandoned City of Detroit. (2012). ZFein. Retrieved from: http://zfein.com/photography/detroit/index.html
Federal Reserve Board is the most powerful financial institution in the country and is actually the Central bank of United States. This institution is responsible for regulating financial system of the country by formulating monetary policies and by changing the fund rates. The Fed is not completely independent and works together with the administration and the Department of the Treasury. It is responsible for formulating and implementing monetary policies in
Federal Reserve The key information in the January 14, 2004 Federal Reserve summary ranged from mildly encouraging to 'no change' as far as the economy was concerned. Virtually all areas were experiencing small amounts of employment growth, although there were pockets of decline as well. ("Beige Book," January 14, 2004) In fact, retail sales were up a small amount, mainly because upscale retail stores were having a good season, although the lower
Rather than propping up "bad blood" and allowing the "illusion" of wealth to continue to be fostered, the Federal Reserve should allow the market to flush out the "bad blood" and operate the way it is intended. Conclusion In conclusion, the good that the Federal Reserve does is to monitor economic policy, encourage maximum employment and long-term stability. The way it does so, however, especially in times of crisis such as
Federal Reserve Operations in the United States Functions of the Federal System in Control of Money Supply The discount rate, according to the federal system, is the interest rate, which the Federal Reserve imposes on the loans it gives to Federal Banks that are troubled and need financial support. Processing of lending to the banks is done through the 'discount window', which in most cases is controlled by the Reserve Banks. Factors influencing
Federal Reserve Policies 2000- The first decade of the 21st century saw the U.S. economy on a peripatetic through tumultuous events, euphoric highs, and abysmal lows. The ten-year window highlighted three periods: 2000-2004, 2004-2007, and 2007-2010 in which the Federal Reserve actively utilized their policy levers to achieve their dual policy mandate of full employment and low inflation. The Fed's policy bag includes: the Fed funds rate, open market operations, discount
" (Structure of the Federal Reserve System) The 12 Federal Reserve Banks extend banking service to the depository institutions and also to the federal government. To the financial institutions it takes the responsibility of maintaining reserve and clearing out accounts and entails various payment services incorporating checks, electronically transferring funds and circulating and receiving coins and currency notes. As the banker of the Federal Government they function as fiscal agents. They