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Economics, in general, relates to the inter-actions between economic clients that occur within the process of exchange. However, international economics brings in an extra element, that of internationality, and differs from simple microeconomics for the fact that it explains the occurring relations between participants at an international level. In this sense, international economics is important because it provides rules, theories and a specified framework in which international economical relations can work. More so, international economics refers to the whole of the participants (countries, companies, organizations) in the international economical circuit and is thus meant to identify these players.
With the creation of customs unions, such as the EEC, as a general characteristic, trade within the members of the union is encouraged and, at the same time, trade outside the union is discouraged. The main positive effect refers to the creation of trade, that is, to the fact that…
How does the Heckscher-Ohlin theory differ from Ricardian theory in explaining international trade patterns?
In the Ricardian model only one factor of production, labor, is needed to produce goods and services (Suranovic). The productivity of labor is assumed to vary across countries, implying a difference in technology between nations. The difference in technology results in advantageous international trade. On the other hand, the Hecksher-Ohlin model uses two factors of production labor and capital (Carbaugh, 2004). Thus, this model accounts for differing factor-proportions both across and within industries. For example, if one country has a relative abundance of land while another country has a relative abundance of capital, the first country will have a comparative advantage in producing and exporting a land-intensive product while the second country would have a comparative advantage in a capital-intensive product.
The Heckscher-Ohlin theory demonstrates how trade affects the distribution of income within trading…
Boston University Global Trade. Retrieved August 6, 2004 from Web site: http://www.bu.edu/goglobal/courses/intecon/textbookreview.htm
Carbaugh, R.J. (2004). International Economics, 9th edition. Mason, Ohio: Thomson/South-Western.
Kirchbach, F.V. And Mimouni, M. (2003, February). International Trade Forum. Retrieved August 6, 2005 from Web site: http://www.tradeforum.org/news/fullstory.php/aid/552/Market_Access_Barriers:_A_Growing_Issue_for_Developing_Country_Exporters_.html
Suranovic, S. The Heckscher-Ohlin (Factor Proportions) Model. Retrieved August 6, 2005 from Web site: http://internationalecon.com/v1.0/ch60/60c010.html
(a) What are the alleged advantages of a fixed over a flexible exchange rate system?
How do advocates of flexible exchange rates respond?
Fixed exchange rate system guards against wild day-to-day fluctuations which discourage specialization in production and flow of international trade and investment a position that advocates of flexible exchange rate detest. hey aver that destabilizing speculation is less likely to occur when exchange rates adjust continuously.
In the wake of alleged advantages that fixed exchange rate has over flexible exchange rate it has been established that pegging exchange rate at a given unit has its inherent excesses in demand or supply with regard to foreign exchange. Flexible exchange rate is regarded as efficient because exchange rate does not have to change to correct the equilibrium in the nation's balance of payments (Salvatore, 1996). Flexible exchange rates are integral when it comes to correcting balance of payments…
The world today operates under a managed float which was formalized during the 1976 Jamaica Accords. The formation of the European Monetary System and subsequent operationalization of the European Central Bank has eased borrowing pressures from the IMF. There are also other credit facilities that have come up. However, during the gold standard period, the fact that one unit of each currency was fixed, the exchange rates also became fixed (Salvatore, 1996). A country's money supply would fall if a deficit nation loses gold. This subsequently stimulated the amount of goods exported by such countries while also discouraging its imports until the balance of payment deficit is eliminated. The reverse happened for surplus nations.
(b) Why the different economic conditions today would make the reestablishment of a smoothly working gold standard impossible.
Formation of trading blocks like the European Union and operationalization of the European Central Bank among other economic unions has led to reduction of pressure that IMF used to soak in as the only lending agency. Countries can access loan facilities from alternate financial institutions. Exchange rates are also flexible far from what it
Interest rates usually increase to curb inflation as to encourage investment to remove currency from the consumer economy.
Exchange rates; primarily floating rates and managed floats
Exchange rates refer to the difference between currency rates when exchanging the base currency (the currency in possession) for the exchanged currency. For example 1 USD:: 1.60 GBP is an exchange rate denoting 1 USD can be readily exchanged for 1.60 GBP. Floating rates are used in developed economies that do not have volatile swings in its currency value and therefore can rely on a market rate with no fiscal intervention. An example of a floating rate economy is the U.S. A managed float requires the value of a specified currency to adjust to a single dominant currency or to a stable measure of value such as gold. An example of a fixed rate is the Chinese Yuan, adjusted by the Chinese government as…
International Economics esearch
In the contemporary, there is continued deliberation regarding the future of the International Monetary System. Subsequent to the international economic and financial crisis, compounded with the rise of China as the second biggest economy and circulation of the Euro, there has been deliberation of other currencies joining the U.S. Dollar as the reserve currency of the IMF. This report is an attempt to examine the prevailing position of the Indian upee in terms of becoming an international currency and its involvement in the International Monetary System. India has materialized as the fastest growing key economy in the world. The enhancement of the nation's economic rudiments has fast-tracked in the year 2015 with the collective impact of strong government reforms. Taking into account the characteristics of an international currency within the international monetary system, such as the U.S. Dollar and the Euro, the current status of the Indian…
Belke, A., Bernoth, K., Fichtner, F. (2011). The Future of the International Monetary System. DIW Economic Bulletin, 4.
Blinder, A. S. (1996). The role of the dollar as an international currency. Eastern Economic Journal, 22(2), 127-136.
Goldberg, L. S. (2010). Is the international role of the dollar changing? Current Issues in Economics and Finance, 16(1).
Goldberg, L. S., & Tille, C. (2008). Vehicle currency use in international trade. Journal of international Economics, 76(2), 177-192.
3. Domestic Envionment
The domestic envionment encompasses all foces within the teitoy of the home county and which foces influence the actions and esults of the Nestle Puina PetCae Company. These national and uncontollable foces efe to the consumption behavio of clients within the United States, the weakening of the U.S. dolla, inceased taxes, a lage national debt and the eal-estate cisis which makes it moe difficult fo companies to eceive loans fom banking institutions.
Othe domestic foces efe to the laws and egulations pomulgated by the U.S. Govenment, laws which egulate the activity of manufactues and national companies. The Commecial Law is the most elevant one and deals with most copoative opeations, including capital, pesonnel o sales opeations. In addition, the domestic envionment is also maked by a skilled and populated labo maket.
4. Foeign Envionment
The foeign envionment is composed fom those foces outside the home county, but…
2008, Official Website of Nestle Purina PetCare Company, http://www.purina.com/,last accessed on January 21, 2008
2008, Nestle Purina PetCare Company, Hoovers, a D&B Company, http://www.hoovers.com/nestl%C3%A9-purina-petcare/--ID__104717 -- /free-co-factsheet.xhtml, last accessed on January, 21, 2008
1995, Ralston Purina, Securities Information, http://www.secinfo.com/d2FU1.a24.htm , last accessed on January 21, 2008
International Business Model
After the crisis, South Korea increased its efforts to regain their economic status and years of growth followed. The state officials have however been accused that their efforts went as far as getting them involved in illegal operations and this then led to increased levels of corruption within the state. In the last couple of years, the rate of economic growth has been at a steady 4% per annum.
The country is able to sustain itself in terms of consumed and produced energy, but when it comes to crude oil and natural gas, they have to import most of it. Therefore, South Korea is increasingly dependent upon the international movements that modify the price of oil.
South Korea hosts next to 50 million inhabitants who continue to support the country in further developing. The workers in Korea have generally high incomes and are able to provide for themselves and their…
You, J.S., 2005, Embedded Autonomy or Crony Capitalism? Explaining Corruption in South Korea, Relative to Taiwan and the Philippines, Focusing on the Role of Land Reform and Industrial Policy, School of International Relations and Pacific Studies, Retrieved at http://irps.ucsd.edu/assets/003/5292.pdfon May 12, 2008
2007, White Band, http://www.whiteband.org/regions/asia/korlast accessed on May 13, 2008
2008, Republic of Korea, Travel State, Bureau of Consular Affairs, the U.S. Department of State, http://travel.state.gov/travel/cis_pa_tw/cis/cis_1018.htmllast accessed on May 12, 2008
2008, the World Factbook - South Korea, Central Intelligence Agency, https://www.cia.gov/library/publications/the-world-factbook/geos/ks.htmllast accessed on May 12, 2008
In fact, religious ideology suggests that the secular, market economy is evil, and worthless, and the real virtue comes from fierce loyalty to tradition, to a band of often persecuted brothers (as most religions have persecution narratives within their frameworks) and presents an easily comprehensible version of the world as 'us vs. them.'
Many terrorists may have failed to gain a strong sense of family ties on a personal level, and the anti-female sentiment of many fundamentalist principles, which may provide a sense of male empowerment, combined with an easy answer to the problems of unemployment and a lack of social and political mobility, make terrorism and religion a volatile mix. Finally, almost to obvious to be articulated -- for desperate individuals for whom the future seems worthless, religion and the promise of a better afterlife can provide a way to give life meaning, or even make the decision to…
The world's trading nations have become increasingly interdependent because advances in communication and transportation have reduced or removed barriers to these activities thereby increasing the demand for trade. Further, major trading nations have for the past several decades actively sought to remove trade barriers between themselves, in order to further encourage trade.
The major arguments for an open trading system is that it will result in more economically efficient trade, thereby raising overall economic activity, and by extension the wealth of nations. Arguments against can be broad -- such as open trading delivers unequal outcomes because those with high amounts of power make the rules, and those rules invariably reflect their own interests above the interests of others. More niche arguments include infant industry arguments and the need for restrictions on trade based on national security concerns.
hapter 2, 1.. Modern trade theory is concerned with the questions…
Chapter 5, 10. The cost of that policy would be higher car prices, the benefit would be to protect U.S. jobs in the auto industry, that might otherwise go to foreign companies. In 1980, the issue was specifically the Japanese auto industry, which through its superior efficiency and quality -- not to mention smaller cars - was winning significant market share away from U.S. automakers. Such a policy would not provide sufficient incentive for the U.S. automakers to innovate, and likely they would continue to produce uncompetitive cars if given such protections.
If Japan exercised auto restraints, that might temporarily reduce the number of Japanese cars available in the U.S., increasing their price. But as demand would remain high, Japanese automakers would likely just set up plants elsewhere -- Korea, Canada, etc. -- in order to produce cars for the American market. They may also choose to produce in the U.S., if that country had competitive advantage in auto production, and in some cases that is what ultimately happened.
Demand for Imported Tea in the United States
According to basic economic theory, the level of demand for the import of any good for consumption is determined by the following factors, though their relative importance may vary from country to country: the real prices of the good; the real prices of its substitute or complementary good; the real income; the size of the population, its composition, and its rate of growth; price elasticity of demand; income elasticity of demand; cross elasticity of demand; shift in the consumers' preference or habits; the availability of foreign exchange; and changes in the trade policies of exporting and importing countries and other non-price factors. The complementary product for tea is coffee.
As far as tea is concerned, as is generally believed, it sets its own prices, using prices of its close substitute i.e. coffee, real income, population, price elasticity, income elasticity, cross elasticity, change…
In terms of output and growth, Canada's real GDP was 2.96% higher than it was a year ago, but the growth trend is slowing down from a growth rate high of 3.81% in Q3 2010. Japan's economy has contracted in Q2 2011 by 0.76%. It's rate has been volatile, growing rapidly over the past year only to contract again. The UK's growth rate is 1.63%, and that country has had fairly stable, if sluggish, real GDP growth. The current GDP growth rate in the United States is 2.33%. Real GDP growth is on a downward trend in the U.S. But has maintained healthy levels since Q4 2009.
All four countries were affected by the recession. Each experienced real GDP declines during the 2008-2009 period. Japan was the hardest hit. Yet each nation recovered in 2010, only to see the rate of economic growth slow again in 2011.
BoC. (2011). Inflation control target. Bank of Canada. Retrieved October 20, 2011 from http://www.bankofcanada.ca/monetary-policy-introduction/framework/inflation-control-target/
Estrella, A. & Trubin, M. (2006). The yield curve as a leading indicator: Some practical issues. Federal Reserve Bank of New York. Retrieved October 20, 2011 from http://www.newyorkfed.org/research/current_issues/ci12-5/ci12-5.html
Investopedia. (2011). Yield curve. Investopedia. Retrieved October 20, 2011 from http://www.investopedia.com/terms/y/yieldcurve.asp#axzz1VCSWJAY8
St. Louis Fed. (2011). International economic trends: August 2011. Federal Reserve Bank of St. Louis. Retrieved October 20, 2011 from http://research.stlouisfed.org/publications/iet/
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 .
" (S. M. Lele, Sustainable Development" A Critical Review, p. 611)
The main objectives of the sustainable development are to: revive growth, change the quality of growth, satisfy the basic needs for jobs and subsidiary services, ensure a sustainable level of population, preserve the resources, reorient technology and control risk, consider both economy and environment in the decision making process, and reorient international economic relationships. (S. M. Lele, Sustainable Development" A Critical Review, p. 611)
Connections between the two
Harriss promotes the idea of disciplined economics and governance based on rules. Lele promotes the sustainable development, again a form of governance based on a strict set of rules. The idea at the basis of these two theories is practically the same: governance, economy and the entire human behavior should be based on a set of rules previously elaborated to protect the interests of the participants as well as the environment's.…
Jamie Joseph, Development in Practice, Volume 11, Numbers 2 & 3, May 2001; Sustainable Development and Democracy in the Megacities
Joseph T. Siegle, Michael M. Weinstein, and Morton H. Halperin, Why Democracies Excel, Foreign Affairs September/October 2004
Mick Moore, Political Underdevelopment, What causes 'bad governance', Volume 3, Taylor and Francis Ltd., 2001
Lionel Cliff and Robin Luckham, Complex political emergencies and the state: failure and the fate of the state, Third World Quarterly, Vol 20, No 1, pp 27A± 50, 1999
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,
Has the 2008 financial meltdown in the U.S. And the ongoing economic crisis in Europe have practically ended the era of economic globalization?
Following the financial crisis that marred the U.S. economy along with other global economies as well as the ongoing Eurozone debt crisis, there have been projected concerns that this predicament would end economic globalization. The purpose of this paper is to assess this claim. Going by Immanuel Wallenstein's World Systems Theory, the political economy of Third World economies and developed economies of the West are mutually dependent. Wallenstein's conjecture is that the growth and expansion of Third World economies relies on constant interaction with Western developed economies seeing as the world is characterized by a structural division of labor where the developing nations of the Third World provide cheap labor and raw materials while the developed economies are the holders of capital and controllers of…
Ebrahimi, H, 2012, "John Lewis warns Amazon's tax avoidance 'will drive UK companies out of business" The Telegraph
Held, David; The Open University, eds. (2004). A Globalizing World?: Culture, Economics, Politics (2nd ed.). London; New York: Routledge, in association with the Open University. p. 84.
Katz, I & Christie, R (2011) "Geithner Called Housing Giants Biggest 'Moral Hazard'" Bloomberg
Lynch, Katherine (2003). The Forces of Economic Globalization. Kluwer Law International
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 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 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 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.
"The explosive growth of the global economy threatens the natural systems that sustain life on Earth. Despite some significant successes in reducing industrial pollution and increasing efficiency, globalization is devastating natural habitats, speeding global warming, and increasing air and water pollution" (Anonymous). It is in the nature of such an economic globalization to cause negative effects. Globalization has its benefits as well which hold substantial weight.
Advocates for economic globalization state that it is aimed at removing poverty and increasing wealth among the poor. This has been seen not to be entirely true and the gain of wealth is seen only in the upper or elite classes. The rich are getting richer while the poor are getting poorer. Although food has increased, hunger rates have also increased. It is seen that the top class is becoming multibillionaires and today there are more billionaires than yesterday. However the lower class is…
1) Anonymous - Economic Globalization. [Online website] Available at http://ucatlas.ucsc.edu/economic.php[Accessed on: 10/11/2005]
2) Anonymous - Mennonite Central Committee "Economic Globalization." [Online website] Available at http://www.mcc.org/us/globalization/ [Accessed on: 10/11/2005]
3) John N. Pearson, Jeffrey S. Bracker, Richard E. White - Article Title: Operations Management Activities of Small, High Growth Electronics Firms. Journal Title: Journal of Small Business Management. Volume: 28. Issue: 1. Publication Year: 1990. Page Number: 20+.
4) World Council of Churches - REPORT OF THE POLICY REFERENCE COMMITTEE II. [Online website] Available at http://www.wcc-coe.org/wcc/who/cc2001/pr-ii3-e.html#glob [Accessed on: 10/11/2005]
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/