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A low dollar for instance increases the competitiveness of the sales, as well as the sales volume, but decreases their value and weakens the positive results in the balance of payments. Subsequently, a high dollar decreases competitiveness within the international market place, but strengthens the balance of payments (Wang, 2009).
Then, aside from the exchange rate, the balance of payments is also influenced by the balance trade in the meaning that this tends to "move markets on release" (FX Words). The same impact is generated by the current account balance, as well as by the net purchases of foreign security (FX Words). All these factors are directly or indirectly generated by the political field and they, as such, represent political causes for changes in the balance of payments.
Finally, Jain, Ohri and Majhi also point out to the existence of several political factors causing changes in the balance of payments. They as such point out the following:
The expansion of the U.S. embassies and their maintenance, which engage vast resources and negatively impact investments and...
trade policy: theory and evidence, Columbia University, http://www.columbia.edu/~so33/PublishedPapers/IO94.pdflast accessed on August 14, 2012
Wang, P., 2009, the economics of foreign exchange and global finance, Springer
Balance of payments reports by country, FX Words, http://www.fxwords.com/b/balance-of-payments-reports-by-country.html#us last accessed on August 14, 2012
Effects of exchange rates on trade balance, Euroactive, http://www.euractiv.com/euro/effects-exchange-rates-trade-balance/article-110398 last accessed on August 14, 2012
References:
Jain, T.R., Ohri, V.K., Majhi, B.D., Principles of macroeconomics, FK Publications
Lohmann, S., O'Halloran, S., 2001, Divided government and U.S. trade policy: theory and evidence, Columbia University, http://www.columbia.edu/~so33/PublishedPapers/IO94.pdflast accessed on August 14, 2012
Wang, P., 2009, the economics of foreign exchange and global finance, Springer
Balance of payments reports by country, FX Words, http://www.fxwords.com/b/balance-of-payments-reports-by-country.html#us last accessed on August 14, 2012
Effects of exchange rates on trade balance, Euroactive, http://www.euractiv.com/euro/effects-exchange-rates-trade-balance/article-110398 last accessed on August 14, 2012
For the period of the late 1960s and early 1970s, West Germany strived to assist the dollar. The United States and many other nations pushed West Germany to reassess so as to make up for the dollar excess. (Germany in the World Economy) At last, after escalating waves of conjectures, the Bretton Woods system had a collapse in August 1971. All through the post-Bretton Woods period, the deutsche mark stayed
V. Summary Point: Your State's Core Foreign Policy Position(s). Estonia as a whole, seeks to maintain its security and promote its national interest through a variety of means. It is now formally part of the European Union, with adoption of the Euro slated for 2011, and it is also a formal and active member of NATO. This allows Estonia to benefit from the technological, economic, and political capital that more powerful
Despite the fact that it is considered to be responsible for the immense inequalities in the economic sector, it also provides the progress for least developed countries and the environment for the maintenance of the developed countries. The existence of trade blocks such as NAFTA or ASEAN are even more reasons to consider globalization as a means of improvement in terms of politics, economic, and social aspects of life. References ASEAN.
" (Patterson, 2003) However, such hypothesis are not scientifically testable unless populations in Malta are surveyed to determine the influence Western political thought has had on their own belief system and on how Malta citizens see their ability to influence political decision-making. According to Bebbington (2009), "The environment has become both a vehicle and an objective of contentious Focus on institutional failures is very much in line with arguments around theories
" (Hamilton, 2003) the work entitled: "The Dynamic Culture of the Middle Ages" states that there were differences in opinions among religious groups at this time. The Cathars or Albigensians, and the Waldensians and the Spiritual Franciscans placed an emphasis on spiritual life while at the same time offering criticism to the church for its' materialism and as well challenged the authority of the church. The Roman Catholic church in
Of course, consumers knowing the country of origin of Toyota vehicles have done little to harm the dominance of that car over traditional American manufacturers like GM and Ford. But in some instances, if a particular nation has received bad press regarding its labor practices, mandatory labeling as an imported good might act as an additional invisible trade barrier. Also, if a nation is being subject to a particularly damaging