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Due to the cases of swine flu in California, the Chinese government issues policies that do not allow the import of any products that have come into contact with California (Workman, 2009). This means that the cargo must be transported to other regions, further increasing operational costs and reducing the efficiency of American organizations exporting to China.
Another characteristic of the international trade policies implemented by the Chinese government refers to the means in which the decisions are made. The western investors point out to a highly centralized system, but argue that the openness to liberalized trade is only possible through the process of decentralization. Otherwise put, they desire that the government allows its regional office to make the decisions that directly affect their region (Goodman and Segal, 1994). The measure is yet to be implemented as the process of development and implementation of international trade policies is highly complex,…
Goodman, D.S.G., Segal, G., 1994, China Deconstructs: Politics, Trade and Regionalism, Routledge, ISBN 0415118344
Keidel, A., Cassidy, R., Ferguson, R., Tuchman Matthews, J., 2007, China's Trade Policy, Carnegie Endowment, http://www.carnegieendowment.org/events/?fa=eventDetail&id=987 last accessed on May 11, 2009
Wang, J., 2007, The Evolution of China's International Trade Policy: Development Through Protection and Liberalization, Economic Development through World Trade, pp.191-213
Workman, D., 2009, Swine Flu Infects Pork Trade Policies in China, WTO Suite 101, http://world-trade-organization.suite101.com/article.cfm/swine_flu_infects_pork_trade_policies_in_china last accessed on May 11, 2009
International Economics Law
International Trade Law
The orld Trade Organization, or TO, is an international body that is located in Geneva, Switzerland and was officially founded in 1995 (The orld Trade Organanization, 2012). There stated purpose is to help trade flow as freely as possible under a number of given restrictions. For example, the TO does not try to get countries to openly trade items that are safety concerns or can cause illnesses without proper restrictions to address such concerns. Basically, the organization tries to maximize trade without bringing in any undesirable side effects that can diminish trade between two countries. However, given consideration of such restrictions, the TO basically tries to open markets up to international importers and exporters.
Much of what the TO does is try to facilitate trade through negotiations. The TO does not have the authority to tell countries what they can and cannot…
Bussolo, M. & Lecomte, H., 2009. Trade Liberalization and Poverty. Overseas Development Institute, 6(1), pp. 1-4.
Edwards, S., 1993. Openness, Trade Liberalization, and Growth in Developing Countries. Journal of Economic Literature, 31(1), pp. 1358-1393.
Goldberg, P., Khandelwal, A., Pavcnik, N. & Topalova, P., 2009. Trade Liberalization and New Imported Inputs. American Economic Review, 99(2), pp. 494-500.
The Economist, 2012. The world in their hands. [Online]
International economic theories and policies have a double role: to explain and to regulate. On one side, the international economic theories explain the international economical environment where exchanges are produced, as well as general laws that govern this environment. The international economic policies create a regulatory environment, with rules under which these exchanges are produced.
The mercantilist view on trade evoked two main characteristics. One of them referred to the fact that the ideal for of richness was money or precious metals. The second basic idea revolved around the idea of profit, its origin and role. The first characteristic implied the fact that the balance of payment always had to be positive, so as to increase the country's reserve.
The absolute advantage was defined by Adam Smith and referred to the fact that the producer on the international market that could commercialize products that had lower production costs had an…
The most major problems currently facing the World Trade Organization come from within. Its image among many poorer nations and certain groups of first world citizens is not the creation of misconceptions, but a reaction to real world consequences of the policies and attitudes that govern the Organization's actions. The World Trade Organization needs to begin operating with more transparency and in tandem with governments, rather than undermining fledgling democracies by restricting bans made for socially responsible reasons and manipulating trade for the benefit of already developed countries and established banks.
The Washington Consensus was originally a list of ten advisements regarding economic policy change for borrower nations of the World Bank. Since the development of the list, the term has come in a broader sense to refer to policy change in general, especially in the neoliberal sense, that has been imposed on the poorer nations of the…
The recent international economic emergency has brought transformed consideration to the inquiry of the convenience of government expenditures as a way of inspiring cumulative economic movement and employment throughout a slouch. Attention to fiscal incentive as an alternative has been very much augmented by the truth that in many nations the short-term nominal interest rate that is used as the main working target for financial policy has arrived at zero which was thought to be very low (Woodford, 2010). People who are concerned with economic development of communities are often faced with the want to approximate forces of economic changes, such as plant openings, closings, expansions, policy transformations or natural tragedies, or to predict population, employment, business action, or public service difficulties. Understanding the inter-workings of the local economy and forces of exterior issues on communities necessitates facts of socioeconomic tendencies, financial base and financial connections within the community.…
Dumas, Lloyd J. (2003). Economic Multipliers and the Economic Impact of DOE
Spending in New Mexico. Retrieved December 3, 2010, from Web site:
Greskee, Karl. (2010). Multiplier Effect - Increase Your Money Flow. Retrieved December 3, 2010, from Ezine Articles Web site:
Exporia's Plea Concerning Ban On Corn Beer
Following the unexpected ban of Exporia's corn beer by Imporia, Exporia in this document outlines concerns regarding the action and associated implications. Exporia hereby states that Imporia erred in the imposition of the ban. This is in violation of the Agreement on the Application of Sanitary and Phytosanitary Measures (the "SPS Agreement") in general; Imporia violated Article 3.3, 5.1, and 5.2 of the SPS Agreement.
In respect to the violation of the SPS Agreement in general, Exporia argues that Imporia erred since the SPS Agreement directly acknowledges that a Member has the right to pick an appropriate level of sanitary and Phytosanitary protection. In addition, Article 3.3 provides that in cases where an international standard are set, there are specific guidelines that govern the right to choose exercise as presented in the Hormones case[footnoteRef:1]. Exporia asserts that Article 3.1 does not give Imporia…
Appellate Body. EC Measures Concerning Meat and Meat products. Geneva, 1998 .
General Agreement on Tariffs and Trade. Sanitary and phytosanitary measures. New York: The World Trade Organization, 2012.
The World Trade Organization . Agreement on Sanitary and Phytosanitary Measures. New York: The World Trade Organization, 2012.
Inability to implement an effective governance arrangement has ignited violent conflicts in Sierra Leone. The conflicts originated from Liberia and ignited a combustive violence in the Mano iver Union in Sierra Leone. During the reign of Charles Taylor, former president of Liberia, the Mano iver Union was the center of conflict that spread to Sierra Leone. Although, the Sierra Leone has attempted to strengthening the democracy and consolidate peace since 2002, however, the issue within the Mano iver Union still remains fragile because of the inability to implement effective governance to enhance a lasting peace and security. Presently, Sierra Leone is one of the top poorest countries in the world ranked 180th out of 187 countries within the Human Development Index. Over 60% of the Sierra Leonean population live below $1.25 a day. Over 70% of the youth are unemployed. (UNDP, 2012). Bad governance that fails to create development in…
Clapham, C. (2009). Liberia and Sierra Leone: an essay in comparative politics. Cambridge University Press
Coker. P. (2003). Sierra Leone -- Building the Road to Recovery, Institute for Security Studies, Monograph no 80.
Conteh-Morgan, E. & M. Dixon-Fyle. (1999). Sierra Leone and the End of the Twentieth Century: history, politics and society. New York: Peter Lang.
Diop, B. (2005). Case Study on Countries in Mano River Region. United Nations, New York Office of the Special Adviser on Africa.
powerful arguments in its favor, has free trade not been the norm?
For over two centuries free trade arguably has been promoted as the most favorable economic policy among nations (Blinder, 2008). Yet it has yet to be implemented as a global trade policy. The reasons for this are many. Economists often favor protectionist policies or other face saving policies that tend to "protect" nations from what economists deem "unfair competition" (Binder, 2008). However, according to many, it makes more sense to pay others that specialize in work to do specialized work, because in the long-term this will save money. Cutting our nation off from specialists will only result in a reduced quality and standard of living in the long-term. This applies to the U.S. And to nations as a whole. Adam Smith noted this, by stating the following: "It is the maxim of every prudent master of a family,…
Blinder, A.S. 2008. The concise encyclopedia of economics. Library of Economics and Liberty.
Destler, I.M. 2005. American trade politics. 4th ed. Washington, D.C. Institute for International
The creation of jobs will be beneficial to Pakistan, as it will lead to: an increase in the standard of living, a decrease in social costs and an improvement in political stability. On the other hand, its neighbor India will benefit from Pakistan's geographical neighbors to include: Iran, Afghanistan, China and Tajikistan. As India would be able to benefit from Iran, due to the fact that: the country is full of natural resources (which could help India in meeting its demand for oil and gas). However, since the WTO agreement requires all the signatories to remove trade barriers, there is a risk that developing countries will suffer at the hands of developed nations. As they (the developed nations) will export various commodities from a particular region, in return for the importing of primary goods. The big challenge is maintaining a balanced relationship, where the more developed nations will not take…
World Trade Organization (1999). The WTO as the basic free trade institution: Ministerial Conference 1999. Retrieved from http://www.wto.org/english/thewto_e/minist_e/min99_e/english/state_e/d5325e.pdf
World Trade Organization (n.d.). About the WTO. Retrieved from http://www.wto.org/english/thewto_e/whatis_e/wto_dg_stat_e.htm
International Monetary Fund (2010). How the IMF promotes global economic stability. Retrieved from http://www.imf.org/external/np/exr/facts/globstab.htm
The '1971 Immigration Act and Immigration estrictions', that are in vogue now has least controversy, compared to restrictions elsewhere. The policy is now well defined.
The huge flow of people from abroad, particularly from the Eastern European region, was having a great strain with regard to society, health, jobs, housing and health. Majority of the UK populace view that migrants are responsible the increase in HIV, other types of diseases, crime, as well as taking away the manuals jobs of the local population as a result of their effort to work at low remuneration as well as long working hours. Economists are of the view that the economy has had advantages of about 6 billion annually from the migrant employees. (oberts 2007) This comes from the income tax and VAT, which is a part of the Treasury to be used in creating schools, hospitals and transport. It is true that…
Adler, Leonore Loeb; Gielen, Uwe P. 2003. Migration: Immigration and Emigration in International Perspective. Praeger: Westport, CT.
Balanced Migration. 2008 "PM Misses the big picture on Migration" 12 November,
Champion, Tony. 1999. Migration and British Cities in the 1990's. National Institute
Economics of International Trade China
Exploring the Economics of International Trade: China
"Chinese international trade has experienced rapid expansion together with its dramatic economic growth which has made the country to target the world as its market," and its expansion has only continued to show powerful growth within the international economic marketplace (Sun & Heshmati, 2010, p 1). After China was reopened to trading with the West in 1978, the country has really took off in becoming one of the world's biggest producers and exporters of a plethora of different goods. China has grown tremendously as nations like the United States have become their biggest trading partners. In response, China has helped refuel this growth with the manipulation of their currency and their heavy investment in the U.S. dollar, which ensures them a more competitive position for their exports.
For generations, China had closed itself off to trading and interacting…
American Manufacturing. (2012). China and currency manipulation. Issues. Web. Retrieved September 4, 2012 from http://americanmanufacturing.org/category/issues/china/china-and-currency-manipulation
Barboza, David. (2012). Business and economy in China. New York Times. Web. Retrieved September 4, 2012 from http://topics.nytimes.com/topics/news/international/countriesandterritories/china/business_and_economy/index.html
Congress Quarterly. (1999). The consumer culture. CQ Researcher, 9(44), 1001-1016.
Manzay, Terrance. (2010). China export industry dominates worldwide. Article Snatch. Web. Reprieved September 4, 2012 from http://www.articlesnatch.com/Article/China-Export-Industry-Dominates-Worldwide/3853472#.UEZqYKNIuHY
This paper provides further illustration of trade barrier to provide greater understanding on the method barrier to trade hurts economy. Fig 1 reveals the effects of international trade without trade barrier. From the graph, DD refers to domestic demand and DS means domestic supply, and the price of good is found at P, and the world price is found at P. However, domestic consumer will consume at Qw because the home country could only produce Qd. Thus, the home country must import Qw-Qd worth of goods to enhance efficiency in the economy.
Figure 1. Price without Trade Barrier
However, Fig 2 reveals the economy with trade barrier. It is revealed that the economy will not achieve maximum allocation of scarce resources because trade barriers reduce efficiencies because it would allow companies that would not have existed in a more competitive market environment to exist.
Figure 2. Price with the…
Anderson, Kym. Subsidies and Trade Barriers. University of Adelaide. The Centre for International Economic Studies.2004.
Elwell, C.K (2006). Trade, Trade Barriers, and Trade Deficits: Implications for U.S. Economic Welfare. CRS Report for Congress.
Jeffery Frankel and David Romer, Does Trade Cause Growth?, NBER Working Paper No.
5476, June 1999.
International Risk Management
No profit was ever made without taking some financial risk. However, economists such as John Eatwell and Lance Taylor have argued in their text Global Finance at Risk: The Case for International Regulation that international financial markets are intrinsically and particularly apt to pose the threat of risk to potential investors on an individual and a corporate level. Investors in finance base their decisions on guesses, not only about how other investors within a nation will behave, but also about national stability, which affects the stability of the currency. As markets have grown more global in scope, industrialized countries often have pursued a more cautious monetary policy regarding other nations. However, too much caution can be risky too, Ultimately hesitancy in investment results not only in lost opportunities, but a climate of fear that can at its extremes generates international deflation, a depression in economic growth, and…
Eatwell, John & Lance Taylor. (2000) Global Finance at Risk: The Case for International Regulation. New York: New Press.
Kelly, Michael P. (June/July 2001.)"Foreign Currency Risk: Minimizing Transaction Exposure." International Law. http://www.vsb.org/publications/valawyer/june_july01/kelley.pdf
Schnaue, Frank. (2004). "U.S. trade gap widens as production rises." UPI. http://app.quotemedia.com/data/newsItem.htm?storyId=1533543
Another reason why corporations choose to hold cash balances in a centralized repository is that the variety of accounts can be better managed as a mutual fund more complex investment structure than would be the case if the subsidiary alone managed the funds. A greater quality of information is available for example in the leading financial centers globally that would otherwise not be the case in more remote regions, making it possible to make more informed and correct decisions (Mitsos, 1997). The accuracy, efficiency and speed of decision-making based on more efficient use of information has led to more advanced forms of cash management than would have been the case on a per-subsidiary level (Fresard, Salva, 2010). Lastly, by having a centralized depository of cash for all subsidiaries, firms can hold less accumulated total cash, freeing up financial resources for other investments (Fresard, Salva, 2010). Companies become more efficient at…
Elliott, Graham, & Bewley, Ronald. (1994). The transmission of monetary policy: The relationship between centralized depositories and Monetary policy. Economic Record, 70(208), 19.
Fresard, L., & Salva, C.. (2010). The value of excess cash and corporate governance: Evidence from U.S. cross-listings. Journal of Financial Economics, 98(2), 359.
Hill, C.W.L. (2011). International business: Competing in the global marketplace (8th ed.). New York, NY: McGraw-Hill/Irwin.
Nicholas Mitsos. (1997, November). Virtual Group Treasury. TMA Journal, 17(6), 24-30.
Thus, free trade keeps costs lower for consumers and leads to more efficient production. However, there are exceptions to unabated free trade. Most notably, national security dictates restrictions on the sale of military goods to unfriendly countries. Also, one needs to consider appropriate responses to other countries who do not engage in fair trading policies. Recently, the U.S. has seen huge losses of jobs and a redistribution of wealth to Asian countries such as China and India. Perhaps some form of protectionism might be useful to give time for the U.S. time to make plans to deal with the situation.
Comparative advantage and absolute advantage. EconomicsInteractive.com. Retrieved at http://www.unc.edu/depts/econ/byrns_web/Economicae/Essays/AS_Comp_Adv.htm
Wallenius, H. International economics. http://www.tuta.hut.fi/studies/Courses_and_schedules/Isib/TU-91.2011/lecturenotes/Lecture_4.ppt#256,1,3INTERNATIONAL TRADE POLICY
Comparative advantage and absolute advantage. EconomicsInteractive.com. Retrieved at http://www.unc.edu/depts/econ/byrns_web/Economicae/Essays/ABS_Comp_Adv.htm
Wallenius, H. International economics. http://www.tuta.hut.fi/studies/Courses_and_schedules/Isib/TU-91.2011/lecturenotes/Lecture_4.ppt#256,1,3INTERNATIONAL TRADE POLICY
The Uruguay round would designate that the TO, through its primary role as a mediator, negotiator, and monitor of international trade policies and disputes, serves by design as a gatekeeper of international trade, offering the structural conditions and assembled authority to exact a legitimate level of authority over its member nations.
A good example of how the TO has strengthened the international governing community's ability to provide oversights for its member nations comes from the 1994 rounds of negotiation in Uruguay which essentially defined and forged the TO from the shadows of the GATT. In a consideration, for instance, of the newly afforded power to engage in the process of dispute settlement, we can see that the TO would have an expansive impact on the power of those who had already acted under the propositions of the GATT. The declaration produced by this round of talks would proceed by stating…
AdBrands. (2008). Wal-Mart Stores (U.S.). AdBrands.net.
Beierle, T. (2002). . From Uruguay to Doha: Agricultural Trade Negotiations at the World Trade Organization University of Connecticut: Discussion Papers.
Collins, J.C. (2007). Supply Chain. Accounting Software Research. Online at http://www.asaresearch.com/ecommerce/supplychain.htm .
Doha WTO Ministerial. (2006). Ministerial Declaration. The World Trade Organization.
185). Components for these products may be manufactured and put together in branches in various countries throughout the world. Thailand, Malaysia, Singapore, and Hong Kong were involved in the earliest types of production sharing, which included assembling electronic components manufactured in other countries. Production sharing, one World Bank study determined, currently contributes to approximately 30% of manufacturers' total global trade. Foreign affiliates' international exports approach over 7% of global GDP, approximately $2 trillion.
The World Trade Organization (WTO), which came into being in 1995, the only worldwide international organization that deals with rules of trade between countries, maintains their goal to be to assist producers and manufacturers of services; goods; exporters; importers in carry out business. ("What..., 2006, para. 1) "One of the youngest of the international organizations, the WTO is the successor to the General Agreement on Tariffs and Trade (GATT) established in the wake of the Second…
Andrews, R., Biggs M., & Seidel, et al. M. (Eds.). (1996). The Columbia World of Quotations.
New York: Columbia University Press. Retrieved on June 7, 2006 at http://www.bartleby.com/66/50/1950.html& ;
Barrera, A. (2004). "Who Benefits from Outsourcing?" Retrieved on June 7, 2006 at http://www.religion-online.org/showarticle.asp?title=3115.
International elations Theory and United Nations Peace:
International elations (I) field normally focuses on the study of how various state systems can be made to work more efficiently to improve the power of law, maintain order, manage interstate affairs peacefully, and lessen prospects of war. The word relation in this field is used to denote the inclusion of more than political affairs to aspects like conflict and peace. International relations field is closely linked administratively to political science departments (O'Connor, 2010). Actually, the field of international relations traces its origin from various subfields including international law, diplomatic history, and international economics. While it's still early to consider international relations as a sovereign field of study, it has broken from the analytical procedures of economics and law as well as the ongoing process of breaking from political science. Consequently, this field has become an important facet because of the conceptualizations of…
Ahmed, S. Keating P. & Solinas, U (2007), 'Shaping the Future of UN Peace Operations: is there
A Doctrine In the House?' Cambridge Review of International Affairs, vol. 20, no. 1, pp. 11-28, viewed 26 November 2011,
Cristol, J (n.d.), International Relations Theory, Oxford Bibliographies Online, viewed 26
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 retton Woods system had a collapse in August 1971. All through the post-retton Woods period, the deutsche mark stayed under pressure. In order to relieve strain within Europe, West Germany and other European states assented to peg their currencies to a special system of comparatively narrow exchange rate bands officially named the 'European narrow-margins agreement' but unofficially identified as the 'snake'. The United States and West Germany performed main roles in attempting to organize a new global monetary system. but, in spite of its willingness to make small exchange-rate alterations for the benefit of new currency arrangements, West Germany…
Little German Reform Would Go a Long Way" (Dec 1, 2003) Business Week. Issue: 3860; pg. 22. Retrieved from home.uchicago.edu/~gbecker / Businessweek/BW/2003/12_01_2003.pdf Accessed on 24 November, 2004
Economic Survey - Germany 2004: Main issues and policy challenges"
Retrieved at http://www.oecd.org/document/17/0,2340,en_2649_201185_33633425_1_1_1_1,00.html . Accessed on 24 November, 2004
Economy of Germany" Wikipedia, the free encyclopedia. Retrieved at http://en.wikipedia.org/wiki/Economy_of_GermanyAccessed on 25 November, 2004
In my opinion, there is no excuse for them not accomplishing the objectives they have been created to attain.
6. egarding the economic situation and the context of the current financial and economic crises, things are not as clear as they are about environmental issues. In my opinion, the policies that must be implemented in the following period of time should take into consideration economic stagnation, and not economic evolution.
The crisis currently affects the real estate market. Then, it will affect the energy market. Eventually, it will affect the food market. In my opinion, the bailouts that everyone complaints about are not such a negative action.
Even if it does not seem fair to pay for other people's mistakes and greed, these bailouts will probably be responsible for saving thousands of jobs domestically and internationally. However, if the bailouts will be used for bonuses, than this measure will obviously…
1. Thoumrungroje et al. (2007). Globalization Effects and Firm Performance. Journal of International Business Research. Retrieved March 30, 2009 from http://findarticles.com/p/articles/mi_qa5539/is_200707/ai_n25417659 .
2. Raphaeli, N. (2008). Saudi Arabia's Waning Influence on the Oil Market. The Middle East Media Research Institute. Inquiry and Analysis, No. 452. Retrieved March 30, 2009 from http://www.memri.org/bin/articles.cgi?Page=archives&Area=ia&ID=IA45208 .
3. Urbanization and Globalization (2001). The United Nations. Retrieved March 30, 2009 from http://unpan1.un.org/intradoc/groups/public/documents/APCITY/UNPAN002543.pdf.
4. The Great Global Schemer (2008). The Washington Post. Retrieved March 30, 2009 from http://www.washingtonpost.com/wp-dyn/content/article/2008/07/16/AR2008071602453.html .
For instance, McDonald's has a solid partnership with Starbucks that came as a natural solution to the increased consumption of coffee in its restaurants. Starbucks happens to be the world's leading specialty coffee retailer with a worldwide presence that matches that of the fast food producer.
Other factors affecting decision
Vietnam is an Asian country with strong oriental cooking habits, which might not be very compatible with McDonald's typical menu of cheeseburgers and fries with a Coke on the side. Furthermore, the local food seems to be relatively healthy, which again is not something that cam be said by McDonald's food.
In 1990s, the company tried to enter this market, but didn't due to the lack of suitable business partners. A few years later, KFC and Lotteria entered the market and consolidated their position. Therefore, at this point the restaurant chain would need a couple of strong breakthrough strategies…
IMF -- International Monetary Fund, accessed June 09, World Economic Outlook - Vietnam.
Ministry of Foreign Affairs, accessed June 09, http://www.mofa.gov.vn/en/cs_doingoai/
Ministry of Planning and Investment: http://fia.mpi.gov.vn/
Thuy, L.T. 2005. Technological Spillovers from Foreign Direct Investment: the Case of Vietnam. University of Tokyo, www.e.u-tokyo.ac.jp
According to Chancellor Helmut chmidt the interest rates of the developed countries in the post1990 era were higher than they had ever been "at any time since Jesus Christ" (http://hdr.undp.org/external/HDR_papers/oc3b.htm). In 1983, in Latin America, whose devaluations were enormous, it was recorded that in one year "the effect on the individual private sector, which in [some] cases had been encouraged by the policies of the authorities to borrow, has been devastating...the amount needed in local currency to service external debt has increased three or four times" (Kuczynski,1983, p. 22). The situation in these countries is such: with the decrease of their currency value, more goods must be sold to pay back their debt plus interest, and since their export prices have been steadily declining in the post war years, their accumulated interest swells to a rate that is higher than the nominal dues stipulated in the original contract (http://hdr.undp.org/external/HDR_papers/oc3b.htm). In…
Developing countries in the international economic system. Accessed on 1/13/2011 from: http://hdr.undp.org/external/HDR_papers/oc3b.htm
InfoPlease, International finance. The International Monetary System. Accessed on 1/13/2011 from: http://www.infoplease.com /cig/economics/international-monetary-system.html
Kahn, a.A. (19-Jan-2009). International monetary system, globalization, and developing countries. The News, Accessed on 1/13/2011 from: www.opfblog.com/3909/international-monetary-system
Kuczynski, P.P. (1983). Latin American Debt: Act Two, Foreign Affairs, 22-29
disrupting America's economic system is a fundamental objective of terrorists
Even as the world continues to struggle with the terrible shock from the September 11 attacks in New York and Washington, one principle lesson has already become clear: disrupting our economic system is a fundamental objective of terrorists.
Prior to September 11, our economic environment was certainly not immune to terror, in comparison to many other nations; we lived relatively terror-free. Now, however, the aftermath of the terrorist attacks serves as a grim reminder that international relations and security developments can dramatically affect economic performance.
US History is replete with countless examples when macro fundamentals are overtaken by what economists refer to as, exogenous shocks -- surprise events that can profoundly and often unpredictably shift political and economic resources, and send even the most accurate forecasts astray. Commodity shocks, such as the two OPEC jolts in the 1970s, are classic…
Bagehot, Walter. 1927. Lombard Street: A Description of the Money Market, John Murray, London.
Balbach, Anatol B. 1981. "How Controllable is Money Growth?" Federal Reserve Bank of St. Louis Review, vol 63, no 4, April, p. 5.
Becker, Gary S, Steven N. Kaplan, Kevin M. Murphy and Edward A Snyder. (2002 / winter). "The Economic Effects of September 11," GSB Magazine, University of Chicago's Graduate School of Business.
Bell, Stephanie. 2000. "Do Taxes and Bonds Finance Government Spending?." Journal of Economic Issues, Vol. 34, no. 3, pp. 603-620.
Economic Value Added
Economic Value Added is an analytical tool which was developed in 1982 by Joel Stern and G. Bennett Stewart and has been widely accepted as a means of measuring a company's real profitability. This tool is unique because it involves calculating "the firm's residual profitability, net of both the direct cost of debt capital and the indirect cost of equity capital." (Grant, p. 2) Debt capital can be defined as the amount of money a company must spend on its current debt, including interest and other fees. However, because most interest expenses can be deducted from taxes, the calculation is often measured after taxes. Equity capital is a much more complicated factor in the equation because it deals with the value of all the assets of the company, which would normally be owned by the shareholders, but are necessary for the running of the company. This…
Bremer, Catherine. (2010, Feb. 7). "Mexico sets 250,000 tonne 2010 sugar import quota." Reuters. Retrieved from http://www.reuters.com/article/2010/02/07/mexico-sugar-idUSN0716673520100207
"China to increase coal exports quota to 38 million tonnes for 2011." (2011, Mar. 21) China Mining Association. Retrieved from http://www.chinamining.org/News/2011-03-21/1300668416d43907.html
"Economic Value Added" Whole Foods Website Retrieved from http://www.wholefoodsmarket.com/company/eva.php
Ehmke, Cole, Joan Fulton and Jayson Lusk. "Marketing's Four P's: First Steps for New Entrepreneurs." Purdue University Agriculture and Commercialization Center. Retrieved from http://www.ces.purdue.edu/extmedia/ec/ec-730.pdf
International Accounting and Auditing Standards
International public sector accounting standards (IPSAS) are developed and put forth by the International Public Sector Accounting Standards Board of the International Federation of Accountants (IFAC). International private sector accounting standards are known as International Financial Reporting Standards (IFRS). They are put together and put forth by the International Accounting Standards Board (IASB), a self-governing standard generating body of the International Accounting Standards Committee Foundation. The IFRS for SME's is a self enclosed standard, intended to meet the requirements and abilities of small and medium-sized entities (SME's), which are anticipated to comprise over ninety five per cent of all corporations worldwide. It is constructed on the basis of full IFRSs, yet, a lot of the principles for distinguishing and gauging assets, liabilities, earnings and expenses have been cut down, subjects not relevant to SME's have been left out, and the amount of necessary revelations…
Barth, Mary E. "Global Financial Reporting: Implications for U.S. Academics." Accounting
Review 83.5 (2008): 1159-1179. Business Source Premier. EBSCO. Web. 6 July 2011.
Hail, Luzi, Christian Leuz, and Peter Wysocki. "Global Accounting Convergence and the Potential Adoption of IFRS by the U.S. (Part II): Political Factors and Future Scenarios
for U.S. Accounting Standards." Accounting Horizons 24.4 (2010): 567-588. Business
Scientific and Political Aspects
of Genetically Modified Foods
While there is little controversy over many aspects of biotechnology and its application, genetically modified (GM) foods have become the target of intense controversy. This controversy in the marketplace has resulted in a firestorm of public debate, scientific discussion, and media coverage. The countries most affected by this debate are Middle Eastern and third world countries, who stand to reap the benefits of solving widespread starvation, and countries such as the United States, as strong suppliers of genetically modified foods. The world's population is predicted to double in the next 50 years and ensuring an adequate food supply for this booming population is already a challenge. Scientists hope to meet that challenge through the production of genetically modified food plants that can help in warding off starvation as the world's population grows.
Although "biotechnology" and "genetic modification" commonly are used interchangeably, GM…
"A Rice Dilemma." Social Issues Research Center. 2002. Social Issues Research. 13 Dec. 2004
Bredahl, Lone. "Attitudes and Decision Making With Regard to Genetically Engineered Food
Products -- A Review of Literature and a Prescription of Models for Future Research." Journal
International Political Economy and Globalization
1- Exercise your reasoning skills by using clear points and illustrations from Global Trade and Economy Industries, give two or more reasons which justify the definitions of Globalization. Use a reasonable meaning regardless of its rigidity and typical nature.
Globalization refers to the growing international dependency of worldwide nations and organizations as a result of cross-border trading of amenities, cultures, technological concepts as well as information. (Mingst and Arreguin 2011. 161)
Furthermore, the basic principle of globalization originates from the comparative advantage model. This model is of the notion that nations that are renowned globally to produce certain commodities are at an advantage of exporting those commodities to nations that are not capable of generating such goods. On the other hand, the less capable nation is also able to trade what it is best able to produce to the former nations. This results in trade…
International Monetary System and Exchange ate Policies
A report/essay: chapter 17, multinational companies. select topic research write: Multinational vs. domestic financial management exchange rates international trade international monetary system exchange rate policies trading foreign exchange european monetary union interest
rate parity/purchasing power parity international capital structures.
The international monetary system and exchange rate policies
International Monetary systems
These are a set of rules and that regulate how international trade and payments are handled. It facilitates the exchange of capital, goods and services among countries. However, this system does not have a physical presence but, it consists of interlacing rules and procedures and is influenced by the market of foreign exchange. An example of an international monetary system is the International monetary fund. These interlacing rules and procedures are referred to as exchange rate Policies.
Exchange rate policies
These are rules that officials of public finance from different nations have developed…
Eichengreen. (2011). Exorbitant Privilege: The Rise and Fall of the Dollar and the Future of the International Monetary System
Goyal, M., Raman, Wang, and Ahmed; . ( 2011). Financial Deepening and International Monetary Stability.
Michael C. Ehrhardt, & Eugene F. Brigham. (2011). Corporate Finance (4th ed.): Cengage.
OECD. (2011). The Effects of Oil Price Hikes on Economic Activity and Inflation.
International Financial Markets and Institutions:
Throughout the globe, today's landscape of international financial market and institutions has continued to experience several changes that require practitioners to examine new models. The need for practitioners to examine new models that are relevant to the state of these markets and institutions has also been necessitated by the recent events that contribute to financial crises, which have been very dramatic. Actually, the recent financial crisis has had significant impacts on the financial institutions and markets resulting in the need for changes. International financial markets and institutions have become an important aspect of economies because they affect daily life. This is primarily because they involve the huge flow of different types of funds in the entire economy that in turn impact the profits of businesses, production of goods and services, and economic well-being of countries. In some cases, the events in these institutions and markets…
Accounting Education (2010), International Capital Market, Accounting Education, viewed 7
Australian Securities Exchange (n.d.), Absolute Return Funds, Australian Securities Exchange,
viewed 7 June 2012,
Economic Crisis Policies
US current economic crisis is considered to be started from real estate sector. The real sector started to decline in 2006 and it accelerated in 2007 and 2008. Housing prices have fallen from the peak from about 25% so far. The decline in prices left homeowners with no option and they were unable to refinance their mortgages and causes default of mortgages. This default of mortgages and loans swallowed the banks and financial markets such as falling of Lehman's brothers and other anks and blow to rest of economy happened as the whole economy was relying on banks and ultimately it slows down investment in the country and capital flows to other parts of the world like China and India. ank losses cause reduction of bank capital which in turn requires capital reduction thus saving bank from lending. It is estimated that every $100 loss and reduction…
ISR international socialist review. (2009, april). Retrieved from The U.S. economic crisis:causes and solutions: http://www.isreview.org/issues/64/feat-moseley.shtml
Journal of accountancy. (2009, october). Retrieved from The U.S. economic crisis: root causes and road to recovery: www.journalofaccountancy.com/Issues/2009/Oct/20091781
Eyes on wall street. (2011, april). Retrieved from Levin coburn investigates casues of financial crisis: http://www.eyesonwallstreet.com/2011/04/articles/financial-crisis/levincoburn-report-investigates-causes-of-the-financial-crisis/
Rude, C. (2009). World Economic Crisis and Fed Reserve Response to it. Studies in Political Economy.
"Opening up the financial system to foreign capital flows can lead, and has led, to disastrous financial crises, which have resulted in great pain, suffering and even violence" (Mishkin, 2006, p.9).
Directly linked to the previous disadvantage and the basic definition of globalization, is the fact that the interdependence of sectors and institutions increases in a global market. In this instance then, a financial crisis within one country or within one institution is likely to generate negative effects upon its partners. The most relevant example of chain reaction to a financial crisis is the current situation, in which the global community is threatened with economic collapse due to the financial difficulties of the United States. The situation is similar in terms of politics or the social environment.
Globalization has often been assimilated with Americanization, meaning by this the desire of the American corporations to transcend boundaries and get access to…
Ervin, J., Smith, Z.A., 2008, Globalization: A Reference Handbook, ABC-CLIO
Geddes, P., 2004, the Benefits of Globalization, Foundation for Research on Economics and the Environment, http://www.free-eco.org/articleDisplay.php?id=378last accessed on January 19, 2009
Holm, H.H., Globalization and What the Governments make of it, European Institute Firenze, Retrieved at http://www.djh.dk/pdf/forskning/global.pdfon January 20, 2009
Kolodko, G.W., 2003, Emerging Market Economies: Globalization and Development, Ashgate Publishing
Additionally, its taxation advatantages may erode due to pressure from EU and implicitly its wages will increase as taxes increase. Competition from emerging countries, namely Eastern Europe will become stronger as Ireland allings its strong points to EU standards. Moreover, the country's inflationary problem persistance may strengthen EU pressure on the authorities to reduce it through its fiscal policy.
BBC news channel. 2004. Ireland is Named 'Best Country', published on Nov 17, http://news.bbc.co.uk/1/hi/world/europe/4020523.stm.
Barry, F. And Bradley, J. 1997. FDI and Trade: The Irish Host-Country Experience. The Economic Journal, vol. 107(445): pp. 1798-1811, http://www.res.org.uk/
Berry, . 2001. U.S. Foreign Direct Investment in Ireland: Making the Most of Other's People Money. Perspectives on Business and Economics, vol. 19.
Cassidy, Mark, 2002. The Irish Economy: ecent Experience and Prospects. in: Aronson, ., Munley, V., Thornton, . (Eds.). The Irish Economy in Transition: Successes, Problems and Prospects. Elsevier Science, Amsterdam: pp.…
BBC news channel. 2004. Ireland is Named 'Best Country', published on Nov 17, http://news.bbc.co.uk/1/hi/world/europe/4020523.stm .
Barry, F. And Bradley, J. 1997. FDI and Trade: The Irish Host-Country Experience. The Economic Journal, vol. 107(445): pp. 1798-1811, http://www.res.org.uk/
Berry, R. 2001. U.S. Foreign Direct Investment in Ireland: Making the Most of Other's People Money. Perspectives on Business and Economics, vol. 19.
Cassidy, Mark, 2002. The Irish Economy: Recent Experience and Prospects. in: Aronson, R., Munley, V., Thornton, R. (Eds.). The Irish Economy in Transition: Successes, Problems and Prospects. Elsevier Science, Amsterdam: pp. 5-30.
International Pol. Ec.
The four different scenarios laid out by the orld Economic Forum in 2009 paint distinctly different visions of the development of global financial markets. The four scenarios are financial regionalism, re-engineered estern centralism, fragmented protectionism and rebalanced multilateralism (yman, 2009). Of these four different scenarios, there is evidence late in 2010 that would support the evolution of two of these different scenarios. These scenarios, in particular the one with the most support, will be given primary consideration in this paper. The implications for these scenarios for my chosen company, an IT firm with a local focus, will also be discussed in this paper.
The EF scenario that fits the world best as of late 2010 is the first scenario, financial regionalism. This scenario relies on post-crisis blame-shifting, something that can be seen in the global political environment at present. The United States has raised serious issues about…
Chan, S. & Ewing, J. (2010). Echoing Obama, Bernanke presses China on imbalances. New York Times. Retrieved November 19, 2010 from http://www.nytimes.com/2010/11/19/business/economy/19fed.html?_r=1&hp
Euro Intelligence. (2010). European panic over QE2. Euro Intelligence. Retrieved November 19, 2010 from http://www.eurointelligence.com/index.php?id=581&tx_ttnews[tt_news]=2948&tx_ttnews[backPid]=743&cHash=8bec5d30ed
Garrett, G. (2010). G2 in G20: China, the United States and the World after the global financial crisis. Global Policy. Vol. 1 (1) 29-39.
IMF. (2010). Reports for select countries and subjects. IMF. Retrieved November 19, 2010 from http://www.imf.org/external/pubs/ft/weo/2010/02/weodata/weorept.aspx ?
International Monetary System
In world trade, varied national currencies are swapped for each other by means of rules and procedures set by a system called the international monetary system. To delineate a general standard of value for the world's currencies, such a system is believed to be necessary.
The global monetary structure has always adhered to the organizational framework of the international discipline. In each stage of the financial capitalism there exists a corresponding monetary approach. The monetary structure during the postwar periods catered to the dominance of the United States. This was applied as a tool during the period to enforce the U.S. dominance over all its allies and the developing countries, irrespective of the socialist countries isolated themselves being unconnected from the influence of the financial and monetary disciplines of the global capitalism.
Gold standard was the first contemporary international monetary system. The gold standard contributed for the…
Amin, Samir. Replacing the International Monetary System? - Current Failures of Global Economic Policy. Monthly Review. Volume: 8; No: 1; October, 1993. pp: 93-98
Holloway, Thomas. M. The International Monetary System: Essays in World Economics. - Book Reviews. Monthly Labor Review. Volume: 12; No: 1; January, 1998. pp: 158-164
International Monetary System. The Columbia Encyclopedia. Sixth Edition. 2001. Retrieved from http://www.bartleby.com/65/in/intlmone.html Accessed on 12 November, 2004.
Little, Jane Sneddon; Oliveri, Giovanni. P. Rethinking the International Monetary System: An Overview. New England Economic Review. Volume: 16; No: 1; November, 1999. pp: 24-29
Only a few decades ago, China was a struggling economy. It is much newer in the free market economy system as compared to the already established economical giants, given the country's communist history. China, a country with an extremely high population, put its resources to its best possible advantage and that was something which contributed towards the country's rapid growth. China has one of the cheapest labor and energy and power resources available for its production. As a result, the industries can achieve economies of scale and thus can cut down on their cost of production. As a result, China enjoys a greater absolute advantage over its competitors. Importers around the world have realized the fact that importing goods from China is relatively much cheaper as compared to imports from other developed economies. These cheaper imports allow them a greater profit margin. Moreover, given the fragile economic conditions and declining…
Kreh, W. (2008). Money, Debt and Wealth of Nations. Canada: COMER publications
Lipsey, R. & Chrystal, K. (1997). An Introduction to Positive Economics. London: Oxford University Press.
Zweig, D. & Jianhai, B. (2005). China's global hunt for energy. Foreign Affairs, 84(5), 25-38.
Hale, D. & Hale, L. (2003). China takes off. Foreign Affairs, 82(36).
Given the high degree to which AIDS impedes global economic integration, in particular of sub-Saharan Africa, it would be reasonable to think that such a transnational issue would bring nations and institutions together to a much higher degree than we see.
Overall, the various aspects of the international system have enabled the expansion of global economic integration. Regimes, institutions, and regional interests bring nations together to meet common objectives. As rational actors, nations sometimes impede global integration, be it over a domestic issue or a transnational one. No aspect of the current international system, however, specifically impedes global economic integration. Only when a nation takes itself out of the international system, as has occurred in North Korea, Cuba, Zimbabwe and a handful of other countries, does economic integration become fully impeded. Therefore we can reasonably conclude that the international system, on balance and with a modicum of cooperation on the…
Goldstein, Judith; Rivers, Douglas & Tomz, Michael. (2003). How does the Trade Regime Affect International Trade? Stanford University. Retrieved December 21, 2008 at http://www.allacademic.com//meta/p_mla_apa_research_citation/0/6/4/3/7/pages64379/p64379-1.php
Wayne, E. Anthony. (2004). NAFTA: Ten Years After. U.S. Department of State. Retrieved December 21, 2008 at http://www.state.gov/e/eeb/rls/rm/31645.htm
No author. (2003). Trade Reforms and Food Security: Conceptualizing the Linkages United Nations. Retrieved December 21, 2008 at http://www.fao.org/docrep/005/y4671e/y4671e00.htm#Contents
Capdevila, Gustavo. (2008). The Death of Doha. Asia Times. Retrieved December 21, 2008 at http://www.atimes.com/atimes/Global_Economy/JG31Dj02.html
Liquidity shocks on the international arena can have a strong negative impact on less developed countries whose access to funding sources is already reduced.
The clearing risk is a specific risk, which combines credit risk, in the sense that it results from a counterparty's inability to meet its liabilities, market risk in the sense that it is caused by market shifts (general and specific market risk) between the time a transaction is executed and the time it is cleared, as well as liquidity and systemic risk." (Casanova, 2000). The clearing risk is assumed by clearing houses, which guarantee the proper settlement of transactions done by the members. These institutions engage themselves to bear potential replacement costs if either one of the trade counterparties can't fulfill its obligations. In international markets this risk is increased as the international arena as mentioned before it more dynamic and volatile and the chance of…
Casanova, J - F. 2000 - Role Played by Risk Management and Clearing Systems in the Economy of Future Exchanges and ECNs. UNCTAD, www.unctad.org
Eichengreen, B. 1990a. Trends and Cycles in Foreign Lending. CEPR - Center for Economic Policy Research. Working Paper N"451.
Eichengreen, B. 1990b, Economic Policy - International Lending, Center for Economic Policy Research. Working Paper N"452.
Investopedia, Accessed October 2008, www.investopedia.com
27-29) This provoked financial demands and awareness of the people in different parts of the world. People and businesses are dissatisfied with the traditional financial systems due to lack of opportunities for investors. Businesses today require more diversified portfolios for investments because this will reduce their investment risks and increase the probability of future capital flows.
Increased capital mobility has increased the importance of exchange rates which is serving as a monetary policy channel in some industrialized economies. In mid 2000s, there was a sharp shift in the flow of international investments and savings (geographic pattern) resulting in the segmentation of current account imbalances. This was also a major contributing factor. Additionally, the domestic financial markets were also affected by the change in regulatory environment. The two important factors for this are as follows:
1. apid growth of OTC (over-the-counter) markets of derivatives in terms of complexity as well as…
Bekaert, G., Harvey, C. And Lundblad, C. 2005. Does financial liberalization spur growth? Journal of Financial Economics 77, 3 -- 55.
Edison, H., Klein, M., Ricci, L. And Slok, T. 2004. Capital account liberalization and economic performance: survey and synthesis. IMF Staff Papers 51, 111 -- 115.
Kaminsky, G. And Reinhart, C. 1999. The twin crises: the causes of banking and balance-of payments problems. American Economic Review 89, 473 -- 500.
Klein, M. 2005. Capital account liberalization, institutional quality and economic growth: theory and evidence. Working Paper No. 11112. Cambridge, MA: NBER, pp.19-21.
Historical Trends and Developments. Eichengreen (2004) argues that there have been several major historical "regimes" that have had differentiated approaches to international capital flows. Prior to I, the free flow of capital across borders reached heights never seen before of since. This was followed by effort in the 1920s to establish international controls for the international flow of capital. The financial disaster of the 1930s began a period of tight regulation of international transactions. In the 1970s another period of free-flowing capital was begun, culminating in the boom of international capital flows of the 1990s (4).
In the 1990s, financial crises in Asia, Mexico, Turkey, and Russia led to a period of increased interest in international controls, as the level of global economic development was shown to be effected by problems in different regions of the world and the shockwaves these crises sent to other regions (Taskin and Muradoglu, 2003).…
Eichengreen, B. (2004). Capital flows and crises. Cambridge, MA: MIT.
Feldstein, M. (1997). International capital flows. National Bureau of Economic Research. 12 December 2009. Retrieved from http://www.nber.org/feldstein/woodstock_intro.html .
Ott, M. (2008). International capital flows. Library of Economics and Liberty. 12 December 2009. Retrieved from http://www.econlib.org/index.html .
Taskin, F., and Muradoglu, G. (2003, September-December). Financial liberalisation: from segmented to integrated economies. Journal of Economics and Business, 55 (5-6): 529-555.
The UAE has one of the most open economies in the world. And its vigorous economic partnership with the United States reflects the UAE's function as a regional leader in terms of economic restructuring, openness to international trade and investment, and political stability (UAE-U.S. Economic elationship, 2011)
The volume of U.S. exports and foreign direct investment into the UAE in recent years has grown considerably and is likely to continue to grow in the future. This growth reflects the progressively more diversified UAE economy as well as the country's leading role as a modernizing power in the Arab world.
The country is the biggest export market for the United States in the Middle East and, in 2010, was the 21st largest export market for the United States internationally.
The UAE buys goods from every state in the United States, as well as the District of Columbia, Puerto ico, and the…
Doing business in the UAE. (2009). Retrieved from http://www.pkf.com/media/131854/doing%20business%20in%20the%20uae.pdf
Hill, Charles W.L. (2007) International Business: Competing in the Global Marketplace
(6/E), Irwin publishers, London.
Overseas Business Risk -- United Arab Emirates. (2011). Retrieved from http://www.ukti.gov.uk/export/countries/asiapacific/middleeast/unitedarabemirates/ov erseasbusinessrisk.html
Socialist states use a command and control management structure as a substitute for the profit motive. This structure is less efficient, so production levels cannot match those of capitalist states. Ultimately, the lack of productivity and the large number of distortions lead to economic collapse (Tesche, 1993).
Since the collapse of the Soviet Union, the pace and nature of economic reforms has differed greatly in the former Soviet states. These range from regions with a virtual continuation of communist dictatorship (Belarus, Transnistria) to full-scale embrace of the free market (Estonia in particular). Russia's economy has only opened somewhat, and only to small and medium sized enterprises (SMEs). For the most part, the major firms in the economy are controlled by powerful businessmen with close ties to government. Freedom of capital flows has improved slightly, but the Russian economy overall remains under significant government control. The economy has grown substantially since…
No author. (2009). Smithsonian agreement. Investopedia. Retrieved December 13, 2009 from http://www.investopedia.com/terms/s/smithsonian-agreement.asp
Eichengreen, B. (2004). Capital flows and crises. MIT Press. Retrieved December 13, 2009 from http://mitpress.mit.edu/catalog/item/default.asp?tid=10369&ttype=2
Pollard, P. (2001). The creation of the euro and the role of the dollar in international markets. Federal Reserve Bank of St. Louis. Retrieved December 13, 2009 from http://research.stlouisfed.org/publications/review/01/09/0109pp.pdf
Sheppard, M. (2004). The politics of the oversight of OTC derivatives markets: Is there any evidence of systemic risk? Paper presented at the annual meeting of the International Studies Association, Le Centre Sheraton Hotel, Montreal, March 17, 2004. Retrieved December 13, 2009 from http://www.allacademic.com/meta/p_mla_apa_research_citation/0/7/3/4/2/p73424_index.html
Mercantilism as a philosophy may be dead, but special interests that lead to trade controls are alive and well (Mercantilism today: how a dead philosophy comes back to life, 2003). Trade controls that affect price and indirectly quantity include tariffs, subsidies, arbitrary customs-valuation and special fees (Daniels, Radebaugh, and Sullivan, 2007). Trade controls that directly affect quantity and indirectly affect price include quotas, voluntary export restrictions, "buy local" legislation, arbitrary standards, licensing arrangements, foreign-exchange controls, administrative delays and requirements to take goods in exchange for selling (Daniels, Radebaugh, and Sullivan, 2007).
Finally, businesses must also consider trade organizations and regional economic integration when deciding where to conduct business. The World Trade Organization promotes trade liberalization and mediates trade disputes and enforcing agreements (Daniels, Radebaugh, and Sullivan, 2007). Major regional trading groups include the European Union, the North American Free Trade Agreement, the Central American Common Market, the Caribbean Community and…
Daniels, J.D., Radebaugh, L.H., & Sullivan, D.P. (2007) International business: Environments and operations. Upper Saddle River, NJ: Pearson/Prentice Hall. ISBN: 0131869426.
Kokko, a., Matha, T., and Gustavsson, P. (2006). Regional integration and trade diversion in Europe. http://ideas.repec.org/p/hhs/eijswp/0231.html
Mercantilism today: how a dead philosophy comes back to life (2003, September 19). National Review. http://www.policynetwork.net/main/article.php?article_id=584
This type of international fraud occurs due to a desire to develop a climate that allows investors to benefit from the comparative advantages of countries such as Mali and Senegal (Barney and Hunt). These countries generally compete against other African states in order to attract more investors and, when the resources are insufficient to convince these foreigners, state officials engage in frauds.
4. Impact on International Business Setting
The increased levels of fraud generate a series of chain reactions upon the business setting within Senegal and Mali. First of all, they reduce general trust in the economic and political systems. This then means that foreign investors are not attracted to the region and that developmental opportunities are reduced. This in turn materializes in the lack of new jobs. It means as such that the federal authorities are unable to cash in taxes from foreign investors conducting business operations within Senegal…
Altman, L.K., Broad, W.J., Global Trend: More Science, More Fraud, December 20, 2005
Barney (1986) and Hunt (1990), Resource-Based View of the Firm
Humphreys, M., Mohamed, H.A., Understanding Civil War -- Senegal and Mali
Peng, M.W., Wang, D.Y., Jiang, Y., An Institution-Based View of International Business Strategy: A Focus on Emerging Economies, Journal of International Business Studies, 2008
The economic policy tools that were employed just after the war subsequently underwent some changes. From 1947 to 1950 direct controls on wages and distribution were eliminated followed by removal of trade controls in 1958. However, the government continued to maintain its hold over prices and credit distribution which made it different from many of its neighboring states in the postwar period. The French Ministry of Finance exerted greater control over the economy than the Bank of France. This led to a greater predilection to resort to devaluation when external equilibrium resulted due to the state failure to control incomes. In France, the period between 1945 and 1975 was known as the "thirty glorious years" because of the phenomenal economic performance. During this period, the average growth rate of GDP was around 6.8% which was quite remarkable considering that Britain's average GDP growth rate was 2.4% and Germany's…
Bathelt, Harald; Wiseman, Clare; Zakrzewski, Guido. Unit 1: Post-war development and structure of the German economy.
Buchanan, Tom. Europe's troubled peace, 1945-2000.
DeLong, J. Bradford. Grasping reality with both hands: A Fair, Balanced, Reality-Based,
International Business in South Florida
Premise and Conclusion
The location of any business entity, but especially one engaged in international commerce, is a complex and critical pre-condition for serving customers, providing a nurturing and productive environment for employees, and achieving profitable operations. Of the many factors management must consider, the following are generally thought to be the most influential: access to capital, favorable tax advantages, excellent transportation and technological infrastructure, and a skilled multilingual and multicultural workforce. (web eFlorida 2010)
South Florida, comprising Miami-Dade, Broward, and Palm Beach counties, does not present a perfect record on any of the success factors, but a close examination of the efforts made and the resulting accomplishments leads to a favorable recommendation for the formation or expansion of international business functions in the region.
Access to Capital
Depending on the stage of company development, a business may need venture capital, commercial bank lenders, or…
Enterprise Florida, Inc., 2010, a public-private partnership serving as Florida's primary organization devoted to statewide economic development. www.eFlorida.com
Florida International Bankers Association, 2010, a non-profit trade association founded in 1979. http://www.fiba.net
Florida Development Finance Corporation. 2010 Created by special state statute as an issuer of tax-exempt revenue bonds. www.floridafinance.org
Fodor's South Florida, 2010. Word of mouth tips from fellow travelers. www.fodors.com/guidebooks/9781400004775/
Comparative advantage states that mutually beneficial exchange is possible whenever relative production costs differ prior to trade. Nations gain by producing goods at relatively low costs and exchanging their outputs for different goods produced by others at relatively low cost. Thus, consumers can gain enormously through appropriate specialization and exchange. A country has an absolute advantage in producing a good if production of the good absorbs fewer resources than are required in other countries or by other individuals or firms.
Specialization leads to economies of scale (Globalization) where more units of a good or a service can be produced on a larger scale, yet with (on average) less input costs. An increasingly competitive global economy drives companies to gain larger global market shares so that they can exploit the benefits of economies of scale (Daniels, Radebaugh, and Sullivan, 2007).
Of course, a harmonious political climate and international embracement of free…
Comparative advantage and absolute advantage. EconomicsInteractive.com. Retrieved from http://www.unc.edu/depts/econ/byrns_web/Economicae/Essays/ABS_Comp_Adv.htm
Daniels, J.D., Radebaugh, L.H., & Sullivan, D.P. (2007) International business: Environments and operations. Upper Saddle River, NJ: Pearson/Prentice Hall. ISBN: 0131869426
Fergusson, I.F. (2007, May 9). The World Trade Organization: Background and issues. http://www.nationalaglawcenter.org/assets/crs/98-928.pdf
Two alternative solutions are available. The first sees that the U.S. federal authority uses the budget allocated to support the development of the national industries, without raising barriers to imports. The second possible solution is for the United States to strive to increase its exports by focusing more on international operations.
Criteria / goals
The evaluation criteria for the proposed solutions revolve around the benefits they generate, as well as the costs they imply. Otherwise put, the decision will be made in accordance with the arguments in favour and against each of the two alternatives, and by the solution's ability to meet the established goals. These goals include the insurance of economic stability within the United States (for all population, corporations and the entire system), the maintenance or even development of international relations, as well as the sustained development of the domestic industries.
Evaluation of alternatives
January 29, 2009, Buying American, the Economist, last accessed on February 5, 2009
Steps in the P.A.C.E.D. Model, the Gus a. Stavros Center for Free Enterprise and Economic Education
http://stavros.coedu.usf.edu/EconomicLiteracy/sld019.html. Ast accessed on February 5, 2009
International Business and the egions
In the era of globalization, the primary scope of agencies, institutions and players across the world seems the creation of a free international market place. The efforts so far made have however been insufficient to create such a market place, but impressive successes were observed in terms of the creation of regional market places. In other words, the modern day economic society has managed to support and concretize its efforts in the direction of regional economic development.
egional economic integration
egional economic development is virtually understood as a context in which countries in the same global region direct their endeavors in the sense of creating an economically integrated region. They virtually focus on free trade and migration of goods, people, commodities, technologies and capitals and they strive to reduce the barriers between the respective economies. Jacques Pelkmans (2006) defines economic integration as "the elimination of…
Buckley, P.J., Clegg, J., Forsans, N., Reilly, Increasing the size of the 'country': regional economic integration and foreign direct investment in a globalized world economy, http://findarticles.com/p/articles/mi_hb3265/is_3_41/ai_n28873065 / last accessed on May 27, 2011
Czinkota, M.C., Ronkainen, I.A., 2007, International marketing, 8th edition, Cengage Learning, ISBN 0324317026
Day, B., The NAFTA Nightmare, Multinational Monitor, http://multinationalmonitor.org/hyper/issues/1992/10/mm1092_10.html last accessed on May 27, 2011
Dodge, D.., 2003, Economic integration in North America, Bank of Canada http://www.bankofcanada.ca/2003/08/speeches/economic-integration-north-america-2 / last accessed on May 27, 2011
International Trade: Pros and Cons
In our globally interconnected world in which it seems that every possible pairing of trading partners is occurring at all times, the idea that international trade is anything but the best system for supporting the global economy can seem quaint if not absolutely absurd. But simply because the world now exists as an increasingly integrated market in which fewer and fewer tariffs or sanctions have significant power does not mean that it is not significant to examine on a continuous basis the advantages and disadvantages of international trade.
Of course, there is no single assessment as to whether international trade is advantageous or disadvantageous because international trade affects different nations (and even different regions within the same nations) differentially. For the purposes of this paper, I shall focus on the effects of international trade on the United States as representative of the ways in which…
Hubbard, R. & O'Brien, A. (2010). Applying International Trade Concepts simulation Economics (3rd ed.). Boston, MA: Pearson Hall.
In the case of United States, Article 9 of the Uniform Commercial Code provides for practically all types of security agreements for owned property that are both for own use as also for commercial purposes. This type of agreements includes fixtures which mean personal property that is attached to the property, and the ready example can be a water heater. This does not include other liens taken on the property like the lien of a mechanic are not covered by this act, but are covered by the individual laws that govern them. There is also a statute of frauds and that requires a security agreement to be in writing for it to be valid, unless the property has been pledged for getting the loan. This sort of a pledge takes place when the borrowing party shifts the collateral to the lender of money in exchange for the loan that he…
9-203. Attachment and Enforceability of Security Interest; Proceeds: Formal Requisites.
Retrieved at http://www.law.cornell.edu/ucc/9/9-203.html . Accessed 10 November, 2005
Bailey, Sue. PM defensive over election threat. Retrieved at http://cnews.canoe.ca/CNEWS/World/2005/11/03/1291616-cp.html . Accessed 10 November, 2005
Banking: An overview. Retrieved at http://www.law.cornell.edu/topics/banking.html . Accessed 10 November, 2005
The structural issues that underlie the crisis remain unresolved. The austerity measures that have been implemented have failed miserably to restore business confidence -- they are crippling any economic recovery and have not given investors any reason to be confident about resolving the long-run debt problems faced by any of the peripheral Eurozone nations. The specter of increased Eurozone interest rates to meet the needs of Germany will only hurt the recovery of the peripheral economies further. As a result, a resolution of the sovereign debt crisis in the Eurozone does not appear to be on the horizon. Economists have made a number of proposals for the resolution of the crisis, none of which appear to have any political traction: a single Eurobond (De Grauwe & Moesen, 2009); addressing the divergence between Euro-level monetary policy and sovereign-level fiscal policy…
Arezki, R.; Amadou, N. & Candelon, B. (2010). Bad news spreads. Finance & Development. Retrieved March 22, 2011 from http://www.perjacobsson.org/external/pubs/ft/fandd/2010/12/pdf/arezki.pdf
BBC. (2011). Greece debt rating cut further by Moody's. British Broadcasting Corporation. Retrieved March 22, 2011 from http://www.bbc.co.uk/news/business-12664681
CIA World Factbook. (2011). Greece: Economy. Central Intelligence Agency. Retrieved March 22, 2011 from https://www.cia.gov/library/publications/the-world-factbook/geos/gr.html
De Grauwe, P. (2010). The Greek crisis and the future of the Eurozone. U. Leuven. Retrieved March 22, 2011 from http://www.econ.kuleuven.be/ew/academic/intecon/Degrauwe/PDG-papers/Discussion_papers/EuroIntelligence-March-2010.pdf
Therefore, when corporate responsibility is linked with certain broader national intentions like health and international development and also trade and the environment, then it would be better for all concerned, instead of the corporation aiming for economic development and gains and nothing else. (Ping Sustainable Future: Toward a New Vision for Corporate esponsibility in Canada)
Canada is one country, in which it is easy to improve competitiveness and to enlarge the global influence that it is capable of exerting by being able to mobilize the human capital within the state, and also being able to pioneer advances in technology. Therefore, it can be concluded that an MNE does have the responsibility of working towards a better global efficiency, and not to just consider economic factors during the process of country selection. (Ping Sustainable Future: Toward a New Vision for Corporate esponsibility in Canada)
Globalization: International Trade and Migration" etrieved…
Globalization: International Trade and Migration" Retrieved at http://www.worldbank.org/depweb/english/beyond/global/chapter12.html Accessed on 1/3/2005
Ping Sustainable Future: Toward a New Vision for Corporate Responsibility in Canada" (March, 2003) Retrieved From www.fivewinds.com/uploadedfiles_shared/CSR%2520Mapping%2520Future.pdf" http://www.fivewinds.com/uploadedfiles_shared/CSR%20Mapping%20Future.pdf . Accessed on 1/3/2005
Political Analysis and Strategy" Retrieved at http://pacific.commerce.ubc.ca/john/crisk.htm. Accessed on 1/3/2005
International Labor Organization: History And Feasibility of Standards
When it comes to the promotion of social justice and the enhancement of labor rights, the relevance of the International Labor Organization (ILO) cannot be overstated.
This text will concern itself with the history of this crucial organization and the feasibility of international labor standards. Further, the paper will address not only the advantages but also the disadvantages of standards.
The ILO describes itself as "the international organization responsible for drawing up and overseeing international labor standards" (ILO, 2012). On its Website, the ILO clearly defines its history from the time it was formed/created to its earlier days and recent times. Formed in 1919, the ILO was originally "part of the Treaty of Versailles that ended World War 1" (ILO, 2012). According to the organization, a number of considerations at the time led to its formation. These considerations were largely of a…
Budd, J.W. (2004). Employment with a Human Face: Balancing Efficiency, Equity, and Voice. New York: Cornell University Press.
McElrath, R.G. (Ed.). (2003). Monitoring International Labor Standards: Summary of Domestic Forums. Washington, DC: National Academic Press.
The International Labor Organization -- ILO (2012). International Labor Organization: Promoting Jobs, Protecting People. Retrieved July 19, 2012, from the International Labor Organization website: http://www.ilo.org/global/lang -- en/index.htm
hen I understand what drives people to buy bottled water, I will be in a better position to forecast demand. I expect disposable income, distribution saturation, cleanliness and taste of tap water and price of bottled water will all factor. ith this information, I could understand the price elasticity of demand, for example, or the elasticity of demand relating to any other variable. Going international I would focus on the same, but I would also understand the currency exchange dynamics and the image that my country or region has overseas. In general, however, the types of information I need would be mainly the same, with respect to marketing. ith respect to culture (marketing message) or other such variables unrelated to the economics of the decision, there are undoubtedly some different forms of information that I would need.
Second student: I would want to know what the trends are for bottled…
Investopedia. (2011). Economics basics: Elasticity. Investopedia.com. Retrieved March 11, 2011 from http://www.investopedia.com/university/economics/economics4.asp
No author. (2011). Demand forecasting. Author unknown. Retrieved March 11, 2011 from 10.212.115.113:81/.../Managerial%20Economics/Demand/Demand%20Forecasting.ppt
Energy costs increased substantially and the yen's exchange rate was shifted to a floating rate. The eventual recession reduced expectations of future growth and reduced private investment. Economic growth went down from 10% to 3.6% during the period 1974-79 and to 4.4% in the decade of the 80s. ut despite the oil crisis and its consequences, Japan's major export industries stayed competitive through its cost-cutting policy and increasing efficiency. It reduced industrial energy demands and allowed the automobile industry, along with other industries, to improve. y the late 70s, the computer, semiconductor and other technology and information-intensive industries entered a period of rapid growth. During this high-growth era, exports continued to support Japan's robust economic growth in the 70s and in the 80s. However, the problems encountered on account of its growing balance of payments surplus urged for the opening of domestic markets and a stronger focus on domestic demands…
Answers.com. (2007). Shigeru Yoshida. 4 pages. Encyclopedia Britannica: Answers Corporation
Bernier, B. (1980). The Japanese peasantry and economic growth since the land reform of 1946-47. 40 pages. Vol 12 issue 1. Bulletin of Concerned Asian Scholars: Questia Media America, Inc.
Luu, L.T. et al. (1996). Summary report on Japan. Team # 6. Chinman: University of Hawaii..
Retrieved March 14, 2007 at http://www2/hawai.edu/~chiman/file2,htm
The stricter immigration laws that have recently been adopted have kept many willing immigrants with large reserves of intellectual capital out of the country. ather, America is still relying on the more fundamental mercantilist idea of dominance. The situations of China and ussia are also explained and related to the theme of elevator assets and the importance of intellectual capital before the author concludes.
Article # 4: WTO
Matthews' (2013) recent article about the World Trade Organization (WTO) previewed their General Council's selection to head its organization by reviewing nine of the most probable candidates to fill that role.
The article begins by noting the deceptive power that this organization still holds. The author used the example of the WTO's ruling that the United States had violated international trade law in 2002 in dealing with steel tariffs. The article then transitions into identifying Pascal Lamy, the current head of the…
Cohen, M. & Arkhipov, I. (2013). BRICS Nations Plan New Bank to Bypass World Bank, IMF. Bloomberg, 26 Mar 2013. Retrieved from http://www.bloomberg.com/news/2013-03 - 25/brics-nations-plan-new-bank-to-bypass-world-bank-imf.html
Goldberg, E. (2013). Elevator Assets and the Rules for the New Mercantilism-- Israel, Russia, China and the United States. Huffington Post, 7 April, 2013. Retrieved from http://www.huffingtonpost.com/edward-goldberg/elevator-assets-the - rules_b_3034608.html
Heath, M. (2013). Last Hawk Stevens Faces Currency War Fallout in New Term. Bloomberg, 3 April 2013. Retrieved from http://www.bloomberg.com/news/2013-04-03/-last-hawk - stevens-faces-currency-war-fallout-in-new-rba-term.html
Laker, F. (2012). Five Challenges for Tomorrow's Global Marketing Leaders: Study. Forbes, 21 Aug 2012. Retrieved from http://www.forbes.com/sites/onmarketing/2012/08/21/five - challenges-for-tomorrows-global-marketing-leaders-study/
Economic Environment of a Business
The objective of this work is to summarize the economic environment of a business including information relating to microeconomics, macroeconomics, and international trade aspects
The business organization is a "micro-economic unit" and the business environment is that which makes provision of the "macro-economic context within which firm operates." (eddy, ) The business environment can be categorized into the 'economic' and non-economic' and the 'micro- and macro-environment. (eddy,, paraphrased) The firm is an economic institution in a market system with the behavior of the firm reflecting the result of the decisions that were economic in nature that the manager of the firm made.
The economic environment of a business in today's globalized business society is complex in nature. There is an inherent link between the business sector and it relationship with the government, capital market, household sector and the international business sector -- all of which…
Palwar, V.K. (2010) Economic Environment of Business 2nd Ed. PHI Learning Pvt. Ltd. Retrieved from: http://books.google.com/books?id=hNBEId591wYC&dq=Economic+Environment+of+a+Business&source=gbs_navlinks_s
Reddy, R.I. (2004) Business Environment. APH Publishing. Retrieved from: http://books.google.com/books?id=NQv9vKgF_3MC&dq=Economic+Environment+of+a+Business&source=gbs_navlinks_s
Economic Challenges Canada Faces
In recent years, the challenging economic condition in Canada has emerged as a concern for citizens, policy makers and the government alike. Canada faces challenges in terms of creating a more innovative society, as the country continues to experience a significant productivity gap compared to other advanced industrial economies. The Canadian industry appears to be slower in successfully developing, applying and marketing innovative products, processes and services than a majority of other nations. This lack of innovation is the cause of Canada's low productivity growth and competitiveness, and therefore must be addressed in order to increase employment growth, a higher standard of living and an improved quality of life for all Canadians.
Current research predicts that although Canada's economic performance will gradually strengthen out of the recent mild slowdown into a better pattern of growth in 2004, Canada's economy still faces the longer-term challenge of increasing…
Department of Finance Canada. (2004). The Economy in Brief. Retrieved March 8,
2005, from the Department of Finance Web site: http://www.fin.gc.ca/ECONBR/ecbr04- 12e.html
Economic Survey Canada. (2004). Building Partnerships for Progress. Retrieved March 8, 2005, from the Economic Survey Canada Web site: http://www.oecd.org/document/24/0.02340.en_2649
Environment Canada, Informing Canadians on Pollution. (2002) Highlights of the 2002 National Pollutant Release Inventory, Environment Canada.
If a person wishes to become a lawyer, rather than a farmer like his father, or if a person wants to move far away from his hometown and to start anew in a new city -- these dreams are only possible in societies with high degrees of social mobility. Social mobility allows for individual choice and creative thinking.
Free trade occurs when a government does not attempt to influence through quotas or duties what its citizens can buy from another country or what they can produce and sell to another country. Present and describe a current example.
An excellent example of unfettered free trade may be found in the current example of the European Community, where goods and services may pass unrestricted through borders. Free trade has been greatly beneficial to consumers and producers within the EU. The EU has become one of the most powerful economic entities in the…
International Monetary Econ
The price of a Big Mac varies around the world, and has been used (albeit not seriously) as a means of testing currency exchange rate parity. The prices of a Big Mac around the world are gathered in the Big Mac Index found on Oanda. The price of a Big Mac in U.S. dollar terms using current spot rates and July 28, 2011 Big Mac prices are as follows:
To calculate the predicted exchange rate, the local currency price should be divided by dollars. Thus the exchange rate implied by the price of a Big Mac is as follows:
Implied Exchange Rate
According to the Big Mac parity theory, currencies whose values diverge…