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By 1990, Thatcher was presiding over a dichotomy, decaying industrial cities in the north and a well developed southern economy. As a result, she was replace by John Major (Columbia Encyclopaedia, 2004).
By 2000, GDP was growing at a faster rate than unemployment, possibly due to the fact that Major had obtained an IRA cease-fire, so that Northern Ireland had at least some respite from draining the economy and culture. Indeed, direct rule by Great Britain was abolished in Northern Ireland in 1999, although home rule has resulted in substantial political manoeuvring (Columbia Encyclopaedia, 2004).
By 2005, unemployment was somewhat lower, but GDP had ceased to grow at the rate it enjoyed before 2001, the year of the terrorist attacks on New York City. hile the United Kingdom was not directly affected by the attacks, as a partner with the United States in that nation's stand against the Taliban in…
Works Cited
Demand-deficient or Cyclical unemployment. 1999-2005. Bized web site. 7 September 2005, http://www.bized.ac.uk/virtual/economy/policy/outcomes/iunempth2.htm
Great Britain. Columbia Encyclopaedia, 6th ed., 2004. 7 September 2005, http://www.questia.com .
Michie, Jonathan and John Grieve Smith. Towards Full Employment. Oxford, England; Oxford University, 1996, p. 32.
1
260000
2009
93.7
275000
2010
89.6
290000
2011
91
310000
2012
88
327000
2013
Israel
Government Spending
Consumer Goods
Year
35.1
96000
2009
35.4
103000
2010
44.8
109000
2011
41
111000
2012
39.3
114000
2013
Question 2C
With so much conflict continuing around the world, one can assume that government spending may begin to increase. From that perspective, they can then also be assumed that nonresidential fixed investment may also continue to go down. This is based on the qualitative relationship the two variables have with one another.
Question 3A & B
The last two quarters saw a decrease in nonresidential fixed investments. In fact, the rate dropped to about 3%, on average (Mataloni, 2013). This comes as a reaction to the recent increase seen in government spending over more recent quarters, compared to the last couple years average rates. There is a clear relationship between levels of nonresidential…
(Pettinger) ("Gross National Product")
The GNI is examining the total income that is generated by the citizens of a particular country. It looks at any kind of value that is added plus the taxes associated with the product. However, area such as subsidies and income from abroad are not calculated in these figures. (Pettinger)
The data that is provided is showing how the GNI is concentrating on the total income that is earned by the citizens of a country. This helps economists to determine their standard of living and purchasing power of consumers. In the future, this improves the accuracy of their forecasts by offering them with a tool to objectively compare and analyze each country. ("Calculating GNI) (Pettinger)
The main differences between the GDP, GNP and GNI are the areas of focus that is taken by economists. This is because the GDP is concerned about national output and production.…
Works Cited
"Calculating GDP." Mind Tools, 2013.Web. 24 Feb. 2013
"Calculating GNI." Pemandu, 2013. Web. 25 Feb. 2013
"Gross National Product." Investing Answers, 2013. Web. 25 Feb. 2013 http://www.investinganswers.com/financial-dictionary/economics/gross-national-product-gnp-3176
Pettinger, Tejvan. "Difference between GNP, GDP and GNI." Economics Help, 2012. Web. 24 Feb. 2012.
Government spending (G) may include stimulus packages, investments in infrastructure, or defense spending. The taxpayer funds such spending, but also benefits from such spending. By giving people jobs and hiring private contractors, the government generates more wealth. The newly-employed purchase more goods and services, which has an overall positive effect on the economy. For example, even if a citizen is employed at a grocery store, if workers on a government project have more money to spend and buy more food, the grocery store and its employees can become more financially secure, and escape the grip of the recession.
Net exports (X-M) are the fourth and final component of GDP. Net exports constitute "the amount by which foreign spending on a home country's goods and services exceeds the home country's spending on foreign goods and services. For example, if foreigners buy $200 billion worth of U.S. exports and Americans buy $150…
Reference
Kaplan, Jay. (1999, January). Principles of macroeconomics. University of Colorado.
Retrieved October 31, 2009 at http://www.colorado.edu/Economics/courses/econ2020/section6/GDP-components.html
Net exports. (2009). Investopedia. Retrieved October 31, 2009 at http://www.investopedia.com/terms/n/netexports.asp
GDP -- the production of a pound of hamburger or the production of a pound of caviar? Why?
According to the commonly used Expenditure Method of calculating GDP, the production of a pound of caviar would contribute to a nation's GDP than would the production of a pound of ground beef. The Expenditure Method calculates GDP as follows:
GDP = Private Consumption + Gross Investment + Government Spending + The difference in net exports and net imports.
Noting the simplified nature of this equation, the production-based contributing group is identified quite clearly as gross investment. This category includes all of the necessary inputs required in producing a certain good (caviar in this case). Being that caviar can be considered a luxury item, and costs much more that hamburger meat, it is safe to assume that its production is equally costly. Therefore, while the entire ground beef industry may have the…
Excess relying on Tourism for GDP in Fiji, Seychelles, Costa ica, Hawaii and Caribbean Islands.
Over eliance of Tourism for GDP
Holiday business is a global economic and regional development force. Tourism comes with various costs and benefits. Furthermore, the growing tourism economics contributes in tourism policymaking, planning as well as business practices. In STCC life span, a number of research documents got printed and distributed bringing forth various methods and new perspectives enabling the understanding of how global tourism affects destinations, use of resources, evaluations and business practices (Dwyer & Spurr, 2010).
According to world trade and tourism council (WTTC), tourism is estimated to contribute about 9.2% of the world GDP. It is also forecasted that this trend is likely to continue at a 4% growth per annum in the next decade in order to account for a 9.4% GDP (Dwyer & Spurr, 2010). Expenses associated with Tourism make…
References
Bernard, K., & Cook, S. (2013). Tourism Investment Choices and Flood Risk: illustrative case study on Denarau Island Resort in Fiji. Background Paper Prepared For The Global Assessment Report On Disaster Risk Reduction 2013, (2), 1-15.
Brid, J., & Zapata, S. (2010). Economic Impacts of Cruise Tourism: The Case of Costa Rica. An International Journal of Tourism and Hospitality Research, 21(2), 322-338.
Dwyer, L., & Spurr, R. (2010).Tourism Economics Summary. STCRC Centre For Economics And Policy, 1-8.
First Hawaiian Bank. (2009). Economic Forecast (pp. 1-3).
In the U.S., unemployment benefits last generally for only 6 months. They last two years or longer in Europe. That means that there is less reason for Europeans to get off the dole and go back to work -- this has a detrimental impact on productivity.
Protectionism is higher in Europe. Europe averages higher import tariffs and non-tariff barriers in Europe than in the United States. As a result, protected industries from steel to agricultural products have less incentive to move productivity to world levels. (Stokes)
How can "traditional Europe" turn around these disadvantages and increase productivity? Some clues are given by Tony lair and Margaret Thatcher's policies in Great ritain, and by Nicolas Sarkozy's current campaign for change in France. In both cases, there is a substantial impetus for change. Great ritain reduced top taxes and social welfare benefits in the 1980's, and the country now enjoys higher employment…
Bibliography
Antweiler, W. "Purchasing Power Parity." 2007. UBC. 15 November 2007 http://fx.sauder.ubc.ca/PPP.html .
Economist. Pocket World in Figures. London: Economist, 2008.
Hahn, RW and Litan, RE. "Counting Regulatory Benefits and Costs: Lessons for the U.S. And Europe." AEI Brookings Joint Center for Regulatory Studies (2005): 473-506.
Stokes, B. "Europe Faces Globalization -- II." 18 May 2006. Yale Global. 15 November 2007 http://yaleglobal.yale.edu/display.article?id=7432 .
GDP vs. Inflation
GDP is calculated through a number of measures. One of the most important is the rate of consumption. According to the research, "Consumption often makes up more than 50% of the GDP calculations of most nations. In some places, consumption makes up more than 70% of the GDP calculations" (Conjecture Corporation, 2014). Thus, increases in consumption can be tied to rising GDP reports. Thus, "the main relationship between GDP and consumption is the fact that a rise in the level of consumption translates to a corresponding rise in the level of the GDP" (Conjecture Corporation, 2014). It is thus an appropriate variable to use to represent the overall GDP of an economy.
In order to understand the relationship between inflation and GDP, interest rates will be examined alongside rates of consumption in millions. When there are lower interest rates, consumers spend more because it cost less to…
References
Conjecture Corporation. (2014). What is the relationship between GDP and consumption? Wise Geek. Web. http://www.wisegeek.com/what-is-the-relationship-between-gdp-and-consumption.htm
Lexicon. (2014). Gross fixed capital formation. Financial Times. Web. http://lexicon.ft.com/Term?term=gross-fixed-capital-formation
Roos, David. (2013). How interest rates work. Money. Web. http://money.howstuffworks.com/interest-rate4.htm
Spagnoli, Filip. (2012). Statistics on gross domestic product (GDP) correlations, Human Rights. Web. http://filipspagnoli.wordpress.com/stats-on-human-rights/statistics-on-gross-domestic-product-correlations/
Labor, GDP and the Firm
Labor is an important factor of production for all firms. The most recent unemployment rate is estimated at 9% (January 2011). Economists have identified three types of unemployment. Which type would affect Wal Mart? Explain.
Fractional unemployment would have a major impact on Wal Mart. This is because the majority of Wal Mart's employees will receive salaries at minimum wage levels. In the event that someone quits, these individuals can easily be replaced (thanks in part to the high unemployment rate). The real danger is when the unemployment rate begins to decrease and more people are working in career orientated fields. This will make it difficult for Wal Mart to maintain their lowest cost structure. It is at this point that the company could be forced to pay higher forms of compensation for attracting and retaining employees. This is when the firm's profit margins will…
References
About Us. (2012). Wal Mart. Retrieved from: http://www.walmartstores.com/AboutUs/
Wal Mart. (2012). Yahoo Finance. Retrieved from: http://finance.yahoo.com/q/ae?s=WMT+Analyst+Estimates
Mishra, P. (2009). Wal Mart to Start Outsourcing. Business Week. Retrieved from: http://www.businessweek.com/globalbiz/content/jun2009/gb2009068_435509.htm
Rampwell, C. (2010). In a Job Market Shift. New York Times. Retrieved from: http://www.nytimes.com/2010/05/13/business/economy/13obsolete.html?_r=1&pagewanted=all
Real GDP
Interpreting Economic Data
Real GDP Growth Percentage -- Overview
GDP Overview
Real GDP Overview
Money Aggregates
Money Aggregates Overview
Borrowing and Lending
Inflation
Health of the Australian Economy
Real GDP Growth Percentage -- Overview
GDP Overview
The gross domestic product (GDP) is one of the most basic economic indicators that people use as a benchmark that provides insights into the overall health of an economy (Investopedia, 2007). However, the number by itself does not provide much relevant information. In fact these numbers are so large that it is hard for most people to put this in any kind of perspective. Rather, it is how the number change that helps people to gain a perspective on what the economy is doing on a macro level. For example, if the GDP is stated in terms of it rising or falling over a course of a fiscal year then it has…
Works Cited
Australian Bureau of Statistics, 2012. June Key Figures. [Online]
Available at: http://www.abs.gov.au/ausstats/[email protected]/mf/6401.0
[Accessed 21 August 2012].
Australian Bureau of Statistics, 2012. Quality Declaration - Summary. [Online]
Pharmacy sales in the United States are positive with growth expected to increase 20% 2005-2008 according to data published by benefit management companies and a market intelligence firm. The rate of increase is lower than it has been in the past five years. Trends negatively impacting the market include consolidation, new store openings, increased mail order, drug importation, and the growth of generic pharmaceuticals. Further, if medicare covers prescription drugs at lower reimbursement levels, profitability of the industry could be adversely affected
Given that GDP and retail sales show moderate growth and that pharmacy sales have high growth potential, algreen represents a good investment opportunity. algreen is the top drugstore chain in the United States and is will well prepared to come out ahead in an intensely competitive market to capture a huge portion of the growing market.
orks Cited
GDP Data (Figure 1)
CBO data. Retrieved November 6, 2005…
Works Cited
GDP Data (Figure 1)
CBO data. Retrieved November 6, 2005 at http://www.cbo.gov/showdoc.cfm?index=5773&sequence=1&from=0
Survey of Professional Forecasters data (overseen by Philidelphia FRB). Retrieved November 6, 2005 at http://www.phil.frb.org/econ/spf/index.html
Wachovia Bank data. Retrieved November 6, 2005 at http://www.wachovia.com/ws/econ/view/0,2705,00.pdf
The U.S. economy is currently downshifting. eal GDP appears to be growing nearly 2% annualized -- at most -- in the current quarter. This rate is down from 3% during the first half of 2010 (before impending downward revisions), and 4% during the second half of 2009. Weakening support from the monetary and fiscal stimulus, the fading inventory rotation in manufacturing, and the consequences from Europe's debt crisis are an important aspect of the recovery (Zandi 2010).
Today, the job market is where we see the recovery's weakness. Conceptualizing from the temporary ups and downs of hiring associated to the U.S. census every ten years, job growth slowed down significantly from the spring.
One of the factors related to the slowing is layoffs by state and local governments lacking sufficient resources. There is also a reluctance from private companies to hire. Even though hiring has stabilized somewhat since the recession,…
References:
Action Forex. (2010). U.S. trade deficit soared in June. Action Forex. Retrieved on August 29, 2010, from the Website: http://www.actionforex.com/analysis/daily-forex-fundamentals/u.s.-trade-deficit-soared-in-june-20100811119863/
Adelmann, Bob. (2010). Fiscal challenges: A way out. The Constitutionalist Today.
Retrieved on August 29, 2010, from the Website:
http://www.theconstitutionalisttoday.com/fiscal-challenges/
Labor, GDP and Firm
Labor is an important factor of production for all firms. The most recent unemployment rate is estimated at 9% (January 2011). Economists have identified three types of unemployment. Which type would affect your firm? Explain.
The three types of unemployment include: structural, changes in technology and shifts in tastes. Structural is when there is a lack of demand for workers with particular skill sets. Changes in technology, takes place when innovations and scientific breakthroughs are leading to a shift in the way businesses are operating. This is the point when there is a decrease in the total number of employees working for a particular firm. Shifts in taste are occurring when consumers want to purchase a particular product or service based on the underlying amounts of popularity. During times when there is a change in tastes, is the point that sales will decrease and those employees…
Bibliography
US Consumer Confidence Plunges to Recessionary Levels. Telegraph. Retrieved from: http://www.telegraph.co.uk/finance/economics/8848977/U.S.-consumer-confidence-plunges-to-recession-levels.html
US Unemployment Rate Forecast. (2011). Forecasts. org. Retrieved from: http://www.forecasts.org/unemploy.htm
Moffat, M. (2011). What are the Three Types of Unemployment. About. Retrieved from: http://economics.about.com/od/typesofunemployment/p/three_types_of_unemployment.htm
Healthcare spending and GDP
With the renewed comprehensive healthcare system, the obvious challenge that came with it is how to finance it. The huge projections of the financial inputs needed to efficiently run the program portends a challenge to the government and is likely to spin out of control and be unaffordable in the long run after a few decades from now. This is informed by accompanying supplies and services increasing in cost like the essential original drugs that have been noted to have increased in prices among other services within the healthcare. In many countries people are expected to pay for their own health care. Therefore the ability of people to pay for their health care or the affordability of the healthcare has become a policy issue in many countries and especially an issue of urgency. The issue of healthcare spending has been a topic for debate over the…
Rise in healthcare spending can also be attributed to the use of improved technology, vaccine improvement, antibiotics, introduction of disease care as well as advances in surgery. There have also been improved medical devices like CT scanners, MRI, ultrasounds and defibrillators that can be implanted. At the same time there are developments in pharmaceuticals and administration costs have also contributed to the rise in costs of healthcare. Mostly the heath care costs are due to medical technology which is approximately over 200 billion per year (Wayne, 2012).
The Americans lifestyles also impact the health care industry in significant measures, almost sixty percent of the population is overweight and childhood obesity is rampant. Other factors that have an impact on the healthcare spending are; poor diets, high blood pressure, smoking, lack of exercise, drugs and drinking. It is the people themselves who have pushed the costs of health care up. The high healthcare spending ahs effects not only to families but also to businesses and public budgets. Expenditure on healthcare is seen to rise at a rate that is fast even faster than the state of the economy entirely and the wages of the working people.
In 2011 spending on medications, hospital visits as well as other medical care went up with an estimated percentage of 3.9 this consumed about 17.9% of the GDP. This is more than three times the deficit. Much of the money is considered to be spent appropriately which is keeping people alive and healthy but of
Once again however, Shengxia and Baije do not explain their arguments nor do they show exactly how the Chinese GDP evened out the trade balance with the U.S., nor how it supported the economy of its regional neighbors.
In terms of the elements threatening the future stability of the country and its economy, the authors point out that the Chinese authorities have been quick to identify these threats; they will as such address them in an efficient manner. They will for instance instate regulations capping the levels of loans to be granted to the population with the specific aim of reducing inflation and over-consumption. Examples of such measures include the limitation of the bank loans to a 7.5 million Yuan for the year, and a rumored 0.27% increase in the interest rates. At this stage, it is however unclear what exact measures the officials will take, and if these are…
References:
1. Shengxia, S., Baijie, A., January 23, 2010, Still Rolling: China's GDP Hits 8.7%, Alibaba, http://news.alibaba.com/article/detail/business-in-china/100237200-1-still-rolling%253A-china%2527s-gdp-hits.html last accessed on January 25, 2010
2. Chinability, 2009, http://www.chinability.com/GDP.htm last accessed on January 25, 2010
all Street Journal Online was selected due to its discussion of Gross Domestic Product (GDP) regarding the United States and globally. Facebook, Inc. and Alphabet, Inc., the parent company of Google, have very high market valuation, in large part due to their dominance of the mobile advertising market. However, the author believes their very high combined valuation may be unduly optimistic, based on the current percentages of U.S. GDP and global GDP spent on mobile advertising and projected percentages of GDP spent on mobile advertising by 2025. Gross Domestic Product (GDP) is an important facet of Macroeconomics because it is a basic tool for determining a nation's and the world's productivity, income and expenditure. In this article, GDP is discussed, expenditures in particular are discussed and the dramatic effect of adjusting expenditures is shown when examining Facebook's and Alphabet's glowing combined market valuation.
Body
"Facebook and Google: The $230 Billion…
Works Cited
Gottfried, Miriam. "Facebook and Google: The $230 Billion Question; Mobile-Advertising Growth Has Driven a Stunning Rise in the Two Companies' Market Values, but Investors May Be Taking a Glass-Overflowing View." 12 April 2016. www.wsj.com. Web. 18 April 2016.
Economic Advisor to the Prime Minister of Oman
With the upcoming election, it is important for you to understand the economic conditions in which Oman is currently situated. Oman is a country whose main export is petroleum. Like the other oil rich countries in the Middle East, it is highly dependent upon oil for its economy. The recent plunge (2013 to present) in oil prices since reaching a peak of $150 per barrel in June 2008[footnoteRef:1] has placed stress on Oman's economy. Our nation has been rated extremely well by Western ratings agencies in the past. For example Standard and Poor's rating was ranked Stable and still is, with a -/A-3 rating which represents the firm's stable outlook on Oman. S&P in fact indicated that "Oman can broadly maintain its fiscal and external stock positions over 2016-2019 against risks from weakening economic income, fiscal and external flows."[footnoteRef:2] This is a…
Bibliography
Crude Oil Prices -- 70-Year Historical Chart. Macrotrends. Web. 25 July 2016.
Cui, Carolyn. "Oman government sells $2.5 billion of global bonds," The Wall Street
Journal, 9 June 2016. Web. 25 July 2016.
GDP GNI
GDP and GNI Discussion: China and Canada
The country selected for our analysis is China, a nation that has experienced an apparent increase in the rate of its growth in concurrence with the shifts in the global economy. s free trade has opened China up to a greater number of trade partners and to particular trade partners in much larger proportion such as the United States, a great many indicators stand to suggest that China has in fact enjoyed a change in its rate of growth. On the surface, this appears to correspond with the principles of the Harrod-Domar model, which indicates that "the more an economy is able to save -- and invest -- the great will be the GDP growth." (Ghosh, lec3-4.1, p. 11)
s China's role in the global economy has increased, its apparent savings and capital for investment has produced a non-constant growth rate…
As noted above, the actual GDP (annual %) in China rose between the years of 2001 and 2005 steadily and to the end of a 3% point increase. This is a point of reference for the developing nation as compares to the relatively industrialized and fully globalized Canada. According to the World Bank, Canada's actual GDP rates during this period were 1.8, 2.9, 1.9, 3.1 and 3.0. We note several distinctive differences immediately between these indicators and the index produced in China during the exact same period.
Before considering these differences in greater detail, we consider the divergent starting points of the two nations in consideration. According to the World Bank, the GNI per capita, PPP (current international $) may help to underscore the two distinct trends. In China, this number is presented according to world currency standards as $2,948,848,362,904.5 whereas in Canada, this index produces the figure of $851,322,906,082.9. Both figures are drawn from the year 2000 and precede the differing rates of growth between the two nations. Here, we are in the unusual scenario of examining a developing nation whose GNI is significantly higher than that of the developed nation considered. The Solow model helps to bring clarity to this discussion by revealing that with the addition of labour to the equation examining per capita growth, we can understand with greater accuracy the GDP growth there experienced. The enormity of China's economy is driven by this principle, with the Solow model offering the equation of k=K/L as a way of deteriming where K. is technology and L. is labour and where both produce diminishing returns alone but constant returns when combined. (Ghosh, lec3-4.2, p. 33)
Here we gain some explanation for China's greater potential for short-term growth, with its greater labour pool and the more novel infusion of global technology opportunities helping to stimulate a greater and more constant rate of growth for the massive developing nation. To this point, across the years of 2001 and 2005, the average rate of growth for Canada is .24%. For China, the average rate of growth is .6%. Given the relationship between labour and technology and all that we have learned about China's dramatic gains in these areas across the last decade, it is as anticipated that its growth has been faster, greater and of a more constant nature than that seen in Canada. This confirms the initial assumptions of the Solow model, illustrating that when external forces such as the influx of new technologies combine with an already expansive labour force, the opportunity for a more sustained type of growth becomes probable.
The unemployment rate for January 2013 was 7.9%, in December it was 7.8%, this appears to be a deterioration; however, it is usual for unemployment to increase in January as seasonal jobs disappear. Looking at the rate in January 2012 it was 8.3% and in January 2010 it was 9.1%, therefore unemployment rates are decreasing slowly (BLS, 2013). The consumer prices index also shows an increase; in 2012 it rose by 1.6%. Overall, there is an improvement, from a time that has been defined as a recession, the growth is slow and constrained, but expected to improve further, therefore the current economic stage is that of a recovery, or early recovery.
Question 2
The traditional method of assessing the economic growth is by measuring the GDP, with the underlying assumption that where there is growth in the GDP there will be an increase in welfare, with the measure usually being…
U.S. Macro economy
economy which was considered to be the world's largest has still not been able to recover completely from the financial crisis and resulting recession that hit in 2008. At the national level, spending increase to more than 25% of GDP in 2010, later in 2011 gross public debt exceeded 100% of GDP. The process of recovery for U.S. economy in the first quarter turned out to be weaker than expected. From January through March, the gross domestic product (GDP) of the nation grew at a 1.8% annual rate. The economy of U.S. has grown for 15 consecutive quarters; however the pace of those gains was about 2% which was actually in the weakest recoveries since World War II. U.S. economy is being held back by its tightening fiscal policy. In this year, the spending cuts are estimated to be $85 billion and expected to grow to $109…
References
Danielson, A. (1994). The economic surplus. Westport, Conn.: Praeger.
McCarty, Nolan, Keith T. Poole, and Howard Rosenthal (2006). Polarized America: The Dance of Ideology and Unequal Riches. Cambridge, MA: The MIT Press.
Moffatt, M. (1965).The Economic Effect of Tariffs. [online] Retrieved from: http://economics.about.com/cs/taxpolicy/a/tariffs_3.htm [Accessed: 28 Jun 2013].
Ormerod, Paul. (2010). The Current Crisis and the Culpability of Macroeconomic Theory. Twenty-First Century Society.
Foreign Health Care Policy
Over the last several years, issues affecting the U.S. health care system have been increasingly brought to the forefront. This is because rising costs are impacting demand for different services. What has been happening is these increases are forcing insurance companies, employers and providers to pass on more of these fees to the individual. This is problematic, as they are unable to afford these costs and premiums for coverage. When this happens, the total number of people who are uninsured will increase exponentially. Evidence of this can be seen with the fact that there are 48 million Americans who have no form of health care coverage. (Johnson, 2010) (Harrington, 2009)
While in Germany, the costs of care are lower and 90% of the population is insured. This is because they are using a different model. To fully understand which system is better requires comparing the two…
References
Armstrong, E. (2011). The Health Care Dilemma. Singapore: World Scientific.
Greenwald, H. (2010). Health Care in the United States. San Francisco, CA: Jossey Bass.
Harrington, C. (2009). Health Policy. Sudbury, MA: Jones and Bartlett.
Johnson, J. (2010). Comparative Health Systems. Sudbury, MA: Jones and Bartlett.
GDP forecast for the next 18 months is bound to have an impact on the industrial figures in general and, in particular, on the automobile industry, in terms of production and revenues.
First of all, a GDP forecast will influence the foreign investments in the United States. The reason for this is quite simple and it revolves around the confidence concept. A positive GDP forecast will mean that the American economy is presently performing well and, even more important, that it will continue to perform well into the future as well, with an ascending GDP trend.
For a foreign investor, this will mean that acquiring American assets is a less risky and more profitable action than in a different situation. The fact that you have a positive forecast for the next 18 months is bound to show that the economy is producing, that the figures are satisfactory and that you…
DQ #1. An economy's output is also its income because its output is calculated as the measurement of all the goods and services produced by the economy, and also being channeled back into the economy in the form of purchases in other economic sectors, savings, and investments. Expenditures measured in the form of GDP tally the production of goods and services on U.S. soil while GNP measures the production of goods and services produced anywhere by the U.S. residents. Both can generate income for U.S. companies and consumers that can be funneled back into the economy in exchange for other durable and nondurable goods, and services, as well as reinvested into other sectors. However, imported goods are subtracted out of the calculation of a national income, because the funds generated by the foreign production companies will be funneled back to the base, foreign nation. U.S. consumers may buy foreign goods,…
Increases in manufacturing reveal benefits early, one can track the benefit at all stages and report the benefits to the public quickly. According to a statement released by the Center for American Progress, "solar panels don't install themselves. Wind turbines don't manufacture themselves. Homes and buildings don't retrofit or weatherize themselves. In our industrial society, trees don't even PLANT themselves, anymore. eal people must do all of that work." The public wants a quick fix, they want to start hearing that the economy is doing better and a focus on manufacturing will accomplish this. Additionally, there has been increasing pressure on the White House to focuses on alternative energy sources. Such a policy would gain favor with democratic and liberal environmentalists.
4. Do you consider your views to be more aligned with a classical or Keynesian approach to economic thinking? Explain. (There is no right or wrong answer). See module…
REFERENCE LIST
Chea S., (2010). "Manufacturers' Orders as an Economic Indicator." Associated Content February, 2010. Retrieved from http://www.associatedcontent.com/article/2685879/manufacturers_orders_as_an_economic_pg2.html?cat=3 .
Federal Reserve bank of New York. Durable Goods. Retrieved from http://www.newyorkfed.org/education/bythe.html#durgoods .
Hoexter, M., (2009). "Cap and Trade: An Unserious Policy Framework.. Towards a Serious Climate Policy -- Part 2."Climate Policy, Energy Policy, Sustainable Thinking, December 2009.
Podesta, J., Stern T., (2007). "Capturing the Energy Opportunity: Creating a Low-Carbon Economy." The Center for American Progress, Nov. 2007. Retrieved http://www.americanprogress.org .
Jamaica and United States: An Analysis of GDP
Comparison of Jamaica and U.S. GDP
In 2009 U.S. dollars Jamaica's Gross Domestic Product (GDP) based on purchasing power parity registered at 23.76 billion (CIA Factbook- Jamaica). In contrast the United States of America produced a Gross Domestic Product of 14.12 trillion dollars in 2009 dollars (CIA Factbook- U.S.). espectively these figures translate to a per capita GDP of $8,400.00 dollars for Jamaica (CIA Factbook- Jamaica) and $46,000.00 for the United States (CIA Factbook- U.S.). Given the distinct disparities in GDP, an analysis of the components comprising the GDP calculation provides useful insight into the similarities and differences inherent in the two nations.
GDP is comprised of four components: consumption expenditures, investment expenditures, government purchases, and net exports. Taken in aggregate these components detail "the market value of all final goods and services produced within a country in a given period of…
References
CIA.gov. CIA Factbook: Jamaica. (November 17, 2010). Retrieved December 02, 2010 from
1% and agriculture 6.0%. ("Jamaica," 2010) The U.S. is more heavily focused on services, with this accounting for 76.9% of the GDP. This is followed by: industry (coming in at 21.9%) and agriculture (accounting for 1.2%). ("United States," 2010)
Labor Force
The labor force of Jamaica is currently 1.311 million people. ("Jamaica," 2010) While the labor force of the United States is 154.2 million. ("United States," 2010)
Labor Force by Occupation
The labor force by occupation for Jamaica would include: 64% working in services, 19% in industry and 17% in agriculture. ("Jamaica," 2010) In the U.S. The labor force is divided differently with: 37% working in managerial / professional positions, 24.2% in sales / services, 20.3% in manufacturing, 17.6% in other services and .7% in farming. ("United States," 2010)
Population below the Poverty Line
The total population that is living below the poverty line in Jamaica is: 14.8%. ("Jamaica," 2010)…
Bibliography
Country Comparison GDP Purchasing Power Parity. (2010). CIA World Fact Book. Retrieved from:
Rational firms will choose the lowest-cost option between the two. The market is expected to be efficient, so that while some firms will find it cheaper to pollute, other firms will find it cheaper to install pollution abatement mechanisms.
Ultimately, the system will seek to deliver the lowest per-unit cost of abatement. This will be achieved because the firms that are going to abate their pollution are the ones for whom the cost of abatement is lower than the cost of polluting. With these firms focused on their abatement efforts, they will deliver a greater degree of pollution abatement at a lower per-unit cost with the marketable permits than any other system.
To see the value in this system, the alternative must be considered. If firms are mandated to reduce pollution, they will do so to bring themselves under the maximum allowable pollution levels. However, firms will have no economic…
Economics - Country Analysis
Country Overview and Current Events (News)
Ethiopia, traditionally known as Abyssinia, is a landlocked Sub-Saharan country located at the Horn of Africa in East Africa, bordering Somalia, Kenya, Eritrea, Djibouti, Sudan, and the newly-created South Sudan. It covers approximately 1,126,829km2 of land; about the size of the state of Texas, and was, until the split of Sudan, the second-largest country in Africa. Being landlocked, Ethiopia largely relies on the port of Djibouti, to which it is connected by both rail and road. Economic elements such as this, together with the country's history, population, geography and economic performance have been explored in the subsequent sections of this text.
Population: the U.S. Census Bureau, in June 2013, estimated Ethiopia's population to be 93,877,025; a figure that makes the country the second-most populous in Africa, after Nigeria (orld Bank, Index Mundi). Ethiopia's population has been on a steady increase…
Works Cited
AFDB. "Inflation Dynamics in Selected East African Countries: Ethiopia, Kenya, Tanzania and Uganda." AFDB Brief, 2012. Web. 18 March 2014 http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/07022012Inflatin%20East%20Africa%20-%20ENG%20-%20Internal.pdf
This article analyses the trend in Ethiopia's inflation rates vis-a-vis those of other countries in the Sub-Saharan region and was a valuable source of regional statistics, which formed the main basis for comparison.
Broussar, Nzinga, and Tekleselassie Tsegay. "Youth Unemployment: Ethiopia; Country Study." International Growth Center, 2012. Web. 18 March 2014 http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/07022012Inflation%20East%20Africa%20-%20ENG%20-%20Internal.pdf
This article analyzes the trend in Ethiopia's employment patterns. It reinforced my arguments that unemployment is more prevalent in urban Ethiopia, and that the country's informal sector contributes more to GDP than the formal sector.
There are 346 cars per 1000 population in the country (The Economist, 2011).
Andorra has an adult literacy rate of 100%. Life expectancy at birth is 82.43 years and the infant mortality rate 3.8 deaths per 1000 live births. The unemployment rate is 2.9%. The country has 64,500 cellular phones for 84,825 people, a rate of 0.76. The rate of landlines is 44.6%. There are 67,100 Internet users, or 79.1% of the population. There are no figures given by the Economist of the number of cars in Andorra.
These figures confirm the hypothesis that Andorra, despite having a lower GDP per capita, enjoys a higher quality of life. It has fewer cell phones, for example, in part because it has better landline connectivity. ith respect to human measures, however, Andorra's superior literacy rate, life expectancy and infant mortality rates point to a higher degree of success in developing human successes.…
Works Cited:
CIA World Factbook, various pages. (2011). Central Intelligence Agency. Retrieved May 10, 2011 from https://www.cia.gov/library/publications/the-world-factbook
Germany has established itself as a successful country with a growing and stable economy. In terms of its economic policies, since 2014 its score has fallen by .2 placing it into rank 5 within the international top ranks. Of its many efforts to stabilize the country, the most notable is increased regulation, meaning pension-system expansions and a minimum wage (). Along with economic policies favoring regulation, Germany has remained strong in terms of employment growth and export performance, allowing for low unemployment rates and rising wages. While Germany has improved and stabilized, the rising influx of refugees has put a damper on the country's ability to create new policies for the labor-market.
Regardless, there are many positives in Germany's economic policies that has boosted tax revenue. The boost also comes in terms of reduction of debt-to-GDP ratio even with rising debt. Germany has done an amazing job of successfully addressing…
Turmoil and Instability of He 1970s
The subject of this study will be the 1970s. The 1970s were a turbulent time with several major events that influenced the economic growth. This decade was chosen because economists still argue about the causes of the economic downturn in 1973 and 1974. The oil embargo was blamed for many of the economic woes of the 1970s. However, there are some that claim that the oil crisis was fabricated and the situation was entirely fabricated by economic policy makers. The controversy surrounding this time period makes it an interesting subject of study.
How many goods and services a country produces is a good indication of the economic health of that country. The Gross Domestic Product (GDP) measures the production level of the country. Inflation and unemployment service to enhance the data obtained by the GDP and give us a good overall picture of who…
Works Cited
DeLong, J.B. America's Only Peacetime Inflation: The 1970s. National Bureau of Economic
Research NBER Working Paper No. h0084. Issued in May 1996 as published in Reducing Inflation: Motivation and Strategy, C. Romer and D.Romer Chicago: University of Chicago Press, 1997.
Layard, Richard, Stephen Nickell, and Richard Jackman. Unemployment:
Macroeconomic Performance and the Labour Market. Oxford: Oxford University Press.
Since 1970, the economic growth in U.S. had increased in real terms at a rate of 3.16% per annum, up to 2001, when the American economy registered a slow down period and the economic growth amounted 1.7%. Since 2003, the growth rate averaged 4.62% per annum. Currently, the economic growth is heavily influenced by fiscal relaxation policy that led to increased investments and economic growth level. The average return rate on investment was of 14.6%, especially in the computer software and telecommunication sector.
Employment
The U.S. Labour Statistics office gives the data on the employment situation of the American society. This is important due to the fact that a high level of unemployment depicts the situation of a possible recession, while a low level of unemployment indicates that a certain nation cannot provide staff for the interested companies, and the labour force is insufficient for the demand on the market.…
Bibliography
1) Official Federal Reserve's website: http://www.federalreserve.gov/,Retrieved date: 10th of October
2) the Bureau of Economic Analysis website:
www.bea.gov, retrieved on 9th of October
3) National Bureau of Economic Research Website: http://www.nber.org/,retrieved on 10th of October
As such, the amount repaid to the lender does not accurately reflect adjustments in its purchasing power. To compensate, nominal interest rates float; they change with inflation rates. Real interest rates, on the other hand, do factor in inflation rates. With this type of return rate, the borrower experiences an increase in purchasing power.
9. Cyclical unemployment arises out of a nation's reduction in productivity; it occurs when an economy produces less. Logically, this type of unemployment explodes during recessions and falls during times of recovery and/or prosperity; it follows the business cycle. Structural unemployment refers to a decreased demand of workers; it may be due to increased automation, outdated skills, or geographical incongruencies. Frictional unemployment occurs when workers are in between jobs; it is by nature temporary unemployment and reflects ordinary transitions in the labor market.
11. There exists a close relationship between technological change and the growth rate…
ECONOMICS
The industrial age was an age of giant, mega corporations that were often bogged down by inefficient and outdated distribution, innovation, and production techniques. y contrast, the information age of the past 20 years or so has brought forth a new business form, a fluid congregation of businesses, sometimes highly structured, sometimes amorphous, that come together on the internet to create value for customers and wealth for their shareholders. This phenomenon has been commonly referred to as "digital capital," "information technology revolution," or "new economy." However, as both the Dow Jones Industrial Average and the Nasdaq soared to historic highs and record volatility in just a few short years, a widespread and quite fundamental disagreement emerged concerning whether or not the high-tech boom was nothing more than one huge bubble.
This paper analyzes and examines the present condition of the United States economy. Part II discusses what phase of…
Bibliography
Bedroussian, Armen, Devol, Ross C., Fogelbach, Frank, Goetz, Nathaniel H., Gonzalez, Ramon, R., and Wong, Perry. "The Impact of September 11 on Metropolitan Economies." January 2002. Retrieved at http://www.milken-inst.org/presrel/NationalMetroImpact Report.pdf on July 21, 2002.
Jordan, Meredith. "Economists: Turnaround in Early 2002." Retrieved at http://atlanta.bizjournals.com/atlanta/stories/2001/07/09/story5.html . onJuly 21, 2002.
Moore, Geoffrey H. Business Cycles, Inflation and Forecasting, 2nd edition, 1983. Ballinger Publishing Co., Cambridge, MA.
EconEd Link." Retrieved at http://www.econedlink.org/datalinks/index.cfmonJuly 21, 2002.
An interesting trend has been registered in the service industry, especially in the field of tourism. One of the main engines of Spanish economy in the past, now tourism in this country faces fierce competition from Eastern Europe countries. The beautiful resorts in Palma del Majorca and Costa rava must compete with low cost sea side resort, which offer similar services at incredibly low prices. Another field which needs reforms and reformulation policy is the agricultural and fishery one, which accounts only 4.1% out of GDP, although the important political forces attached to this sensible sector.
In order to be able to face the challenges and the opportunities on the regional and global market, Spain needs reforms in most fields of activity. Unemployment level is one of the highest in EU 9.2% at the end of 2005, while the rate of inflation was around 3.4 per cent in 2005, which…
Bibliography
1) Carol Matlack and Joan Tarzian - 'Spain: Immigrants Welcome', Business Week, May 21, 2007
2) 'Plain sailing no longer', the Economist print edition, 3rd of March 2007.
3) 'Spanish property - the pain in Spain', 26th of April 2007.
4) Human Development Index report, for the year 2006
.....gas station owners have no control over the price that they pay for petroleum, and only limited control over what they will end up charging the customer. The base price for crude oil is set on the basis of global supply and demand. Local prices reflect a variety of factor -- the crude price, cost of refining, cost of transportation, oil company markups and taxes (EIA, 2016). The price that consumers pay therefore reflects a variety of factors, almost none of which either the consumer nor the gas station owner has control over. This paper will discuss these factors in further detail, in order to clarify the dynamics of the oil market to better prepare to make a decision on buying four gas stations.
GDP Growth Rate
There are two dynamics at play here. First, the GDP of the area in which the stations are located influences gasoline consumption, by…
Note: current prices values are expressed in AUD billion.
Australia's Trade Situation
In the June quarter 2007, Australia's exports of goods and services increased by 0.5%, reaching the value of $54.6 billion. This increase follows a series of increases, as for the 2006-2007 financial year, exports increased by 10%, reaching $216 billion. egarding the volume of Australia's exports of goods and services, it increased by 0.8% in the June quarter of 2007, while for the 2006-2007 financial year, increased by 4%. The index of prices received for exports did not have an ascending evolution, since it decreased by 0.3% in the June quarter 2007. However, in the 2006-2007 financial year, export prices increased up to 6% (DFAT, 2007).
egarding rural goods, their exports fell 0.7% reaching $25.1 billion. The rural goods exports volumes fell 4% to 24.4 billion. The evolution of specific rural goods was the following: meat and meat…
Reference List
Australia (2007). Central Intelligence Agency. The World Factbook. Retrieved December 7, 2007 from
The government of Canada has outstanding debt of approximately $550 billion. To service the debt, it issues bonds. The government has also announced previously that it is committed to fighting inflation. Please explain clearly how government debt management policy can lend credibility to the government's fight against inflation. In doing so, provide a clear explanation of the key differences between indexed and nominal debt.
hen a government wishes to curb inflation, one of the most effective ways to use the monetary supply to do so is to sell securities, in short through the sale of government bonds. By selling government securities, the government takes money or liquid capital out of the economy, and makes it more attractive to save rather than to spend money. Also, selling government bonds can reduce government debt. Reducing government debt is an important goal for any administration because the higher the debt, the less that…
Works Cited
Alfaro, Laura & Fabio Kanczuk. "Nominal vs. Indexed Debt: A Quantitative Horse
Race." Harvard Business School. January 2006. 20 Oct 2007. http://www.people.hbs.edu/lalfaro/Nominal%20versus%20Indexed%20Debt.pdf
U.S. Government Spending as a Percentage of GDP." Carried Away. Oct 2003. 20 Oct 2007. http://carriedaway.blogs.com/carried_away/2003/10/us_government_s.html
Economic Environment
The economic environment of Greece is that of a capitalist economy, but with significant public sector contribution – about 40% of total GDP is from government activity. This speaks more to the relatively small size of the Greek private sector than to excessive government ownership of industry. Tourism is one of the major drivers of the Greek economy, accounting for 18% of GDP (CIA World Factbook, 2017). Thus Greece would be characterized as a mixed economy with some government-owned entities. Greece is a member of the EU, but has also received several bailouts in recent years, and struggles with tax collection, and overall economic development. Tax evasion ranges between 6-9% of total GDP in Greece, which makes it a significant economic problem (Georgakopoulos, 2016).
Recent Macroeconomic Data
In recent years, Greece\'s economy has flatlined. The country has received several infusions of capital from other EU countries, but there…
Global Economic Conditions
Apple operates in over 100 countries already, but there are still some markets available for the company. The one that has been chosen for the next international expansion in Myanmar. Apple already has a presence in most other Southeast Asian countries, but Myanmar has only recently become a democracy. It is a poor country, but relatively large, and is starting to see some strong economic growth. Foreign companies are starting to make their market entry. The trends for Myanmar are all quite recent. Five years ago there was little economic activity in the country, regular brownouts and a military junta. Today, there are signs of economic life. Moreover, where five years ago there was almost no broadband and it was prohibitively expensive, broadband in the country has been rolled out to most populated areas and is affordable.
Myanmar\'s economic story is mostly internal, but there is some…
Exports are also down significantly, yet despite these changes, the Chinese economy appears to be "independent and strong enough to not only cope with the global economic crisis but also to establish itself" as a major world economic powerhouse ("China Economy," 2009, Internet).
One of China's greatest economic strengths is based on foreign direct investment, for the World Bank estimates that around $80 billion U.S. dollars are invested in China on a yearly basis. However, one of its most important weaknesses is the existence of corruption at the local level, a situation which the Chinese government has attempted to eliminate through a slow and long-drawn out process. Nonetheless, economists predict that China, "via a sustained rate of growth will enable it to surpass the U.S." To become the world's largest and most powerful economy sometime in the early years of the 21st century ("China Economy," 2009, Internet).
As to unemployment…
REFERENCES
"China Economy." (2009). EconomyWatch. Internet. Accessed June 23, 2009 from http://www.economywatch.com/world_economy/china .
Huntington, Samuel P. (1996). The Clash of Civilizations and the Remaking of World
Order. New York: Touchstone Books (Simon & Schuster).
With the Fed shifting from quantitative easing (QE) to quantitative tightening (QT) in recent years, and the end of unconventional monetary policy, interest rates are set to continue to rise as the central bank reduces its balance sheet. With bond yields already going up and volatility at all-time lows, questions remain about how the market will react to this normalization process. One thing is for certain, however: the recent rise of prices across several asset classes has coincided with the years of QE beginning in 2008. Home prices have soared, bond prices have soared, equity prices have soared, college tuition has soared, and even precious metals have soared (along with cryptocurrencies in recent months). While some commentators are alleging that we are now in the “everything bubble,” the reality is that what is being seen is really nothing more than inflation in the works. The trillions of dollars of liquidity…
However, the recovery has not, as some might expect, included improvements to the unemployment figures or an increase in inflation. The unemployment figures can be explained partially in that unemployment is considered to be a lagging indicator. Inflation, however, is not a lagging indicator. As such, it would be expected to increase if the economy was increasing strongly, given that interest rates are very low. Not only is inflation not increasing, but it is decreasing, and long-term interest rates do not indicate that that the U.S. needs to be concerned with inflationary pressure either.
The case for fiscal stimulus is that government spending is going to increase the GDP. Given the equation GDP = C + I + G + X -- M, we can understand that consumer expenditures are going to remain relatively low in the current economy as the result of the high rate of unemployment. Business investment…
Works Cited:
Bureau of Economic Analysis: Real GDP percent change from previous period. BEA. Retrieved June 17, 2010 from http://www.bea.gov/national/index.htm#gdp
Bureau of Labor Statistics: CPI Detailed Report, April 2010. BLS. Retrieved June 17, 2010 from http://www.bls.gov/cpi/cpid1004.pdf
Bureau of Labor Statistics: Table a-10 Select unemployment indicators, seasonally adjusted. BLS. Retrieved June 17, 2010 from http://www.bls.gov/news.release/empsit.t10.htm
remedy for the U.S. economy as the country has started to recover from the shock of September 11. Though the tragedy of September has drastically effected the economic growth of the country but the forces of recovery will soon lift the economy out of the recession. However, this turnaround is going to go a long way. The general opinion about the economy of the United States is that the recession will end around the first quarter of the year 2002 and the growth in real gross domestic product for the year 2002 is expected to be about 2.5% which will be definitely a huge achievement. However, this growth is expected to be slow but with a constant pace. According to the economic analysts the real GDP growth will pick up by the second half of the year 2002 and therefore most of the investors are expecting a reduction in the…
Works Cited
1) Business Week Online: This Recovery Will Be a Slog: from the World Wide Web: http://www.businessweek.com:/print/magazine/conten
2) The Revenue Outlook: from the World Wide Web: http://retailindustry.about.com/gi/dynamic/offsite.htm?site=http%3A%2F%2Fwww.cbo.gov%2Fbyclasscat.cfm%3Fclass%3D0%26cat%3D0
3) The Economic Outlook: from the World Wide Web: http://retailindustry.about.com/gi/dynamic/offsite.htm?site=http%3A%2F%2Fwww.cbo.gov%2Fbyclasscat.cfm%3Fclass%3D0%26cat%3D0
4) Economist Online: The Economic forecast: http://www.economist.com/displayStory.cfm?Story_ID=S&+H0 *Q1#%
Eurozone Maastricht Treaty
Euro zone Treaty
The European Community established the convergence criteria. These criteria was established in order to allow its EU Member states to take part in the Euro Zone, and using the Euro, as an official currency. The members of the European Union formed the Maastricht Treaty in 1992. The principle goals of the treaty were to establish an economic and monetary union, strengthen the democratic legitimacy of its institutions, better the effectiveness of its institutions, come up with the community social dimension, and also establish a unified foreign and security policy (Charles 1998).
The criteria contain several principles governing inflation rates, government finance, exchange rate, and long-term interest rates. The percentage points for inflation rates should not be 1.5 higher than the average the top three members states in performance of the EU. Government finance covers both the annual government deficit and the government debt. Under…
References
Charles K. (1998). Interest Rates: A Decision-Making Approach. New York, NY: Dryden
Press
David, J.H. (1999). "Advertising's Overdue Revolution" Speech delivered at the week
New York, NY: John Wiley & Sons
Economic Events: 1980-1989
the decade of greed. The era of onald eagan when the rich got richer and the poor got poorer. Despite this common wisdom, 1980 started off auspiciously. On May 8, 1980 the World Health Organization hailed "one of the century's greatest medical accomplishments," the final and total eradication of smallpox (Dickson 247). But how quickly times change - barely a quarter century has passed and this same disease is making headlines once again.
Attitudes change also. While many in this day and age would still agree that the 1980's was a selfish period in American history, a sea-change has occurred in the rhetoric issuing forth from Washington D.C. In a very fundamental way, party politics has been thrust aside as concerns for homeland security take precedence over petty partisanship. Michael Barone notes this in his analysis of a speech made by Democrat ichard Gephardt in the Summer…
References
Barone, Michael. "The loyal opposition." U.S. News and World Report. 13 June 2003. 14
March 2003 http://www.usnews.com/usnews/opinion/baroneweb/mb_020613.htm.
Case, Karl E., and Ray C. Fair. "Principles of Economics." Prentice Hall, Inc. Englewood
Cliffs, NJ 1992.
China's Economy During and After the Economic Crisis
All of these factors created major growth for China for the three decades following the beginnings of its economic reforms, and then the financial crisis hit. China began the twenty-first century with a growth rate of 8.4% in 2000, peaking in 2007 with a 13% growth rate (IMF 2010). In 2008, this rate fell to 9.6% -- a significant drop, but still a significant growth rate as well (IMF 2010). The estimated growth rate in 2009 showed a slower drop to 8.7%, and forecasted growth in 2010 showed the rate climbing back up to 10%, with an average rate for the decade still at 9.9% despite the hiccup caused by the global downturn (IMF 2010).
A large reason hat China was so insulated form the economic shock that was so devastating in other parts of the world was because of the swift…
References
CIA. (2010). "China." World Factbook. Accessed 3 November 2010.
The National Housing Act indirectly promoted the idea of lenders offering much longer-term mortgages with the currently accepted concept of monthly payments with the dual interest and principal payment scale. Amortized real estate mortgages opened the door for an average person to purchase and own a single family home.
As a result of the National Housing Act, the United States government inadvertently committed itself along with private lenders to insure long-term mortgages that could be held for as long as twenty or more years at an interest rate that was affordable. Although the process at first was bogged down by paperwork and bureaucracy it eventually caught on.
Part of the reason the process took hold was because in addition to guaranteeing the loans, the National Housing Act through the formation of the Federal Housing Administration also investigated properties and neighborhoods which added an extra measure of security and guaranteed real-estate…
Works Cited continued
Housing: The Key to Economic Recovery. Ed. NAHB. Natioanal Association of Home Builders. 5 Nov. 2004 http://www.nahb.org/fileUpload_details.aspx?contentTypeID=7&contentID=46 .
Longman, Phillip. "The Mortgaged Generation: Why the Young Can't Afford a House." Washington Monthly, Vol. 18 April 1986.
Meyerson, Martin, Barbara Terrett, and William L.C. Wheaton. Housing, People and Cities. New York: McGraw-Hill, 1962.
Peterson, James R. "Housing Plays Politics to Keep Growth Strong." ABA Banking Journal Vol. 92 (2000).
As a means to gain access to several million people who live a estern lifestyle, South Africa can be a good country to enter, but as a growth story it is much less exciting. Only when the GDP per capita of black and mixed-race South Africans begins to grow rapidly will the country be a truly attractive one for most companies. Arguably, the Human Development Index is a better measure, because it can reflect the overall potential of a nation like South Africa, where the development of one segment of the population is more critical to the market's potential than GDP, which is driven by another segment of the population.
A fourth reason why average per-capita income is not always the best indicator of an emerging market's potential lies in the Gulf States. Many Gulf States have very high average GDP per capita figures, driven by oil revenues. The lifestyle…
Works Cited:
Gibson, K. (2002). A case for the family-owned conglomerate. McKinsey Quarterly. Retrieved October 18, 2012 from http://www.mckinseyquarterly.com/A_case_for_the_family-owned_conglomerate_1238
Rajwani, S. (2011). How should firms deal with political risk? Cranfield University. Retrieved October 18, 2012 from http://www.som.cranfield.ac.uk/som/p16495/Think-Cranfield/2011/May-2011/How-Should-Firms-Deal-with-Political-Risk
Sargeant, N. (2006). What risks do organizations face when engaging in international finance activities? Investopedia. Retrieved October 18, 2012 from http://www.investopedia.com/ask/answers/06/internationalfinancerisks.asp#axzz29f2QIadw
Tata.com (2012). Heritage. Tata Group. Retrieved October 18, 2012 from http://www.tata.com/htm/heritage/HeritageOption1.html
Macroeconomic Objectives
Briefly outline the five macroeconomic objectives governments generally seek to achieve
In each economy, the government always put forward some five macroeconomic objectives, which will help in keeping track of the economic growth. The five macroeconomic objectives are increase economic growth, control of inflation, reduction in unemployment, more equal distribution of income, protection of the environment.
Increase in economic growth
Increased economic growth acts as an agent for increased living standard which is always the aim of every government. The governments always seek in increasing the job creations to offer a source of income to the citizens. The government can only achieve this if it put forward strategies for increasing the economic growth. The increased economic growth has a direct relationship to the expansion of national production which acts as a prerequisite for economic development (Jonkhoff, 2011). The government also aim in increasing the national economic growth because…
References
Barras, R. (2009). Building cycles and urban development. Oxford: Wiley-Blackwell.
Barro, R.J., & Sala-i-Martin, X. (2003). Economic growth. Cambridge, Mass: MIT Press.
Great Britain. (2006). Sustainable development reporting by Government departments: Seventh
report of Session 2005-06. London: Stationery Office.
GDP went down due to weak domestic demand, which went further down after a decline. Somehow, it again rose by 0.1% in the first quarter and appeared to have pulled the economy out of recession. ut Portugal retained big trouble. In the last quarter of 2002, its GDP plummeted.8% from the third quarter and in the last quarter, it contracted by 1.3% from the previous year until the.3% in the third quarter of 2002. The economy continued to sag until the ank of Portugal itself observed the fall of business confidence to its lowest recorded level since the 1993 recession. Official unemployment rate increased to a high 49.6%, rising by 26.3% from 2001 (O'Flynn).
Unemployment was 6.7% in 2003, compared with 4.3% in 2002 (O'Flynn 2003). Labor unions in Portugal claimed it was more than 7.6% as against the 5% ceiling set by the EU, despite the fact that the…
Bibliography
Clapp, D. (2005). Spain's Economy is Vibrating and Growing. Group Communications, Inc. http://www.facilitycity.com/busfac/bf_04_03_global1.asp
Development Assistance Committee (2001). Portugal Development Cooperation Review. Organization for the Economic Cooperation and Development. http://www.oecd.org/document/31/0,2340.en_2649_201185_1883871_1_1_1_1,00.html
Giomo, C. And Jimenez, M. (2001). Economic Survey of Spain. Building Partnership for Progress. Organization for the Economic Cooperation and Development. http://www.oecd.org/document/36/0.2340.en_2649_201185_1912676_1_1_1_1.00.html
Internal Study Programs (2004). Portugal. http://www.studyprograms.com/focus_portugal.htm
It was the smallest monthly jobs growth since August 2003, when only 2,000 jobs were added, according to revised figures from the Labor Department.
6. How does the current structure affect the threat of cost push inflation or deflation?
There are no inflationary or deflationary signs in recent reports.
7. What is the growth rate of GDP?
The current growth rate of the Gross Domestic Product (GDP), which is the output of goods and services produced by labor and property located in the United States, increased at an annual rate of 3.5% in the first quarter of 2005, according to preliminary estimates released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 3.8%. The major contributors to the increase in real GDP, in the first quarter were personal consumption expenditures, private inventory investment, exports, residential fixed investment, and equipment and software. Imports, which are subtracted from…
References
Bureau of economic analysis (2005). Retrieved June 19, 2005, from Bureau of Economic Analysis Web site: http://www.bea.doc.gov/bea/newsrel/gdpnewsrelease.htm
Bureau of labor statistics (2005). Retrieved June 18, 2005, from Bureau of Labor Statistics Web site: http://www.bls.gov/news.release/pdf/laus.pdf
CNN (2005). CNN Money. Retrieved June 18, 2005, from CNN Web site: http://money.cnn.com/
Social security solvency stimulator (2004). Retrieved June 19, 2005, from SS Web site: http://www.sscommonsense.org/Assumptions.html#GDP
BRICs
There is a tradeoff between the opportunity in a market and the risk of that market. The tradeoff between risk and reward can be seen most clearly with the comparison between the United States and the developing market countries. The U.S. has the best credit rating -- a relatively imperfect measure of market risk since it only truly reflects the risk of default on sovereign debt -- and the highest score for business environment. The U.S. also has, however, the lowest expected future GDP growth rate. Thus, the ideal BRIC nation to enter would be one that has the lowest risk and highest growth rate, but given that they all have roughly the same risk, the growth rate is probably going to be the best option for market entry.
The PDI is an important consideration, since the different markets differ in their composition. hile the EIU 5-year forecasts required…
Works Cited:
Economist Intelligence Unit modules:
Brazil, retrieved from http://country.eiu.com.ezproxy.fiu.edu/Brazil
China, retrieved from http://country.eiu.com.ezproxy.fiu.edu/China
India, retrieved from http://country.eiu.com.ezproxy.fiu.edu/India
00). This is below the EU, where they have a rating of 42 or a PPP of $32,500.00. (Czech epublic 2010) 1 When you compare the two numbers, the purchasing power is lower in the Czech epublic in comparison with the EU. This means, that labor costs are much lower in relation to the rest of Europe. When you put this together with the increases in the GDP over the last two quarters and the fact that the banking sector, was undamaged from the financial crisis; means the Czech epublic has outstanding opportunities for addressing the needs of the company. As the country's costs, the business friendly atmosphere and prudent practices of government policies are creating the ideal environment for a European call center to flourish.
isks
Despite the obvious advantages, there are risks of relocating to the Czech epublic the most notable would include: the underlying cost structure. While…
Reference List
1. Czech Republic, 2010, CIA World Factbooks. Available from
It is worth noting that two economic consequences are likely to occur, particularly in the event of a V-shaped recovery. The first is that the Federal Reserve is going to wait to increase rates until the last possible moment, in the hopes of spurring greater investment and therefore job growth. This means that inflation is expected at some point this year. This inflation means that factor inputs will increase in cost. Larson can gain advantage over competitors if it can hold its wholesale cost stable in the face of an increase in the cost of factor inputs, since competitors may be forced to increase their prices. Careful control over its cost structure will allow Larson to do this while maintaining profitability.
Another potential economic consequence is a decline in the value of the Euro. Normally, Larson exporting products from America to Germany would be fairly easy given Germany's current account…
Works Cited:
CNN. (2010). Battle for downtown Bangkok hits economy. CNN. Retrieved May 15, 2010 from http://edition.cnn.com/2010/Business/05/14/battle.bangkok.economy/index.html?hpt=T1
Kirschbaum, E. (2010). Euro in danger of becoming unstable. Reuters. Retrieved May 15, 2010 from http://www.reuters.com/article/idUSTRE6150N020100206
Federal Reserve Bank of New York. (2010). Federal funds data. Federal Reserve Bank of New York. Retrieved May 15, 2010 from http://www.newyorkfed.org/markets/omo/dmm/fedfundsdata.cfm
BEA (2010). Personal income and outlays, March 2010. Bureau of Economic Analysis. Retrieved May 15, 2010 from http://www.bea.gov/newsreleases/national/pi/pinewsrelease.htm
Citizens in the region's poorest countries, Paraguay and Honduras, make just above $4,000 per year, while those in the wealthiest countries, Chile and Mexico, make almost $15,000. The institutional legacy in the region is one clouded by inequality and corruption. In its brief on the region, the World Bank emphasizes the role of institutional development to alleviate poverty among vulnerable groups, a result in part of the lasting legacy of inequality due to colonial influences.
Asia. This region ranges widely from very poor nations such as Nepal (GDPpc of $1,100) to very wealthy nations like ingapore ($51,600). Because colonial dominance of this region was carried out by a relatively few European settlers, it was ultimately incomplete, leaving many of the region's own institutions intact or enhanced. The World Bank's comments on how governments across the region are reacting to the recent economic turndown are in line with an expectation that…
Sources of Economic Growth in China, 1952-1998. Issues in Political Economy, Vol 17.
World Bank. (2009). Regional Briefs. www.WorldBank.org. December 13, 2009. Retrieved from http://www.worldbank.org/ .
Appendix 1
Relation Between IPRI and GDP Per Capita by Region
Source: International Property Rights Index, 2009. (http://internationalpropertyrightsindex.org/UserFiles/File/ex4_9relationbtwniprigdpbyreg.pdf).
There are consumer movements and environmental lobbyists serving as watchdogs on businesses. These organizations may take businesses whose activities are affecting people or environment to court and ask that businesses to pay for damages. Government has also passed tougher health and safety laws that businesses should adopt while conducting business activities.
Findings
The findings of this paper reveal that New Zealand is a country that welcomes foreign investment based on the country economic development. While the economic development of the country may not be comparable to the economic development of European countries, Canada or USA, the country has established legal structures that protect foreign investment. Moreover, people in the country enjoy high standard of living compare to some European countries making New Zealander to have high purchasing power parity. While the country might have been affected by the economic recession in 2009 and 2010, the country has recovered in 2011,…
References
Department of States, (2011). New Zealand. U.S. Departments of States.
Link, A.N.(2001). Evaluation of Technology New Zealand. A report for the Ministry of Research, Science & Technology Infometrics Ltd. In association with Decision Research Ltd.
World Bank (2011). New Zealand. World Bank Data.
marginal propensity to consume refers to the proportion of an increase in pay that is spent on the consumption of goods (Investopedia, 2012). The marginal propensity to save is the opposite -- the increase in savings that derives from an increase in pay. The two are opposites because it is assumed that whatever portion of a pay increase is not spent on consumption goes into savings. The two should, when put together, account for an entire pay increase.
The GDP of an economy is a function of consumption, business investment, government spending and net exports. Thus, there is a relationship between the marginal propensities and the GDP. hen wages rise, consumers will save some of those wages and spend some. The portion that is spent increases "C," or consumer consumption, causing an increase in GDP.
If somebody wanted to calculate how much of an increase GDP would occur from an…
Works Cited:
ECON Marco 2d edtion, by William A. McEachern
Investopedia. (2012). Marginal propensity to consume. Investopedia. Retrieved May 17, 2012 from http://www.investopedia.com/terms/m/marginalpropensitytoconsume.asp
Macroeconomics
Abbott Labs and Macroeconomics
It is a fact that the recent economic downturn affected every individual and company in some way, but companies that had solid business plans prior to the start of the crisis were better able to weather the financial storm. For example, a company that had a diverse range of business that included both products that depended the level of a consumer's disposable income and another group of products that are indispensable would probably be able to meet its financial goals despite global economic issues. Such a company is Abbott Laboratories. Because the primary business of Abbott is producing medical devices, pharmaceuticals and tests that are widely considered standards in the medical community (Abbott Laboratories, 2012), the company has been able to maintain its profitability throughout the economic crisis. However, macroeconomic indicators do have an effect on the continued economic viability of the company and they…
References
Abbott Laboratories. (2012). 2011 annual report. Retrieved from http://www.abbott.com/static/content/microsite/annual_report/2011/yearinreview . php
Angell, M. (2012). Excess in the pharmaceutical industry. Canadian Medical Association Journal, 171(12).
Barnes, R. (2012). Economic indicators: Overview. Retrieved from http://www.investopedia.com/university/releases/#axzz23ADx6TVd
Roerhig, C., Turner, A., Hughes-Cromwick, P. & Miller, G. (2012). When the health cost curve bent: Pre-recession moderation in healthcare spending. New England Journal of Medicine. Retrieved from http://www.nejm.org/doi/full/10.1056/NEJMp1205958
This also implies inadequacies in fiscal sustainability, which influences investments in private sectors.
The second channel happens through the level, composition and quality involved within the public investment, which shows the level at which the public investment replaces the private investments (Schmidt- Hebbel, Serven, & Solimano, 1996).
The final channel regards the level of taxation on the corporate earnings and the rules applicable in depreciations.
There have been arguments that fiscal policy and public expenditure reduces the private investments in two different manners. These include increasing the interest rates or lowering the private funds involved in financing the investments.
According to the neoclassical theory, the interest rate is also an imperative variable in finding the level of investment. Consequently, it results into a negative effect because it upsurges the interest payable in investments. Concurrently, McKinnon and Shaw, contends that this is likely to cause a positive relationship between the investment…
References
Shrestha, M.B. (2005), "ARDL Modelling Aproach to Cointegration Test," Proceedings of the 46th Annual Conference of New Zealand Association of Economists, Paper
No. 13, Wellington, July 2005.
Keynes, J.M. (1936). General Theory on Employment, Interest and Money., London,
Macmillan.