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This, in turn, further stimulates a massive intake of products and services, widening the trade deficit.
It is important to note that, despite the fact that U.S. trade deficit has sometimes been associated with low U.S. products and services competitiveness on global markets, this is most likely not the case. According to some critics, this would lead to decreases in export level, encouraging greater levels for the trade deficit. However, the industrial production has surged in the last decades, as well as the exported services in the global markets (American service providers are important players on the market), so we cannot consider a decrease in competitiveness as a cause for increased U.S. trade deficits.
Without proper financial and macroeconomic policies, we are not likely to see any changes in the U.S. trade account in the near future. Despite a devaluated dollar all throughout 2007 and good parts of 2006, the…
1. Griswold, Daniel. The Causes and Consequences of the U.S. Trade Deficit. Testimonybefore the Senate Finance Committee Washington, DC June 11, 1998. On the Internet at http://www.cato.org/testimony/ct-dg061198.html.Last retrieved on June 29, 2007
2. Elwell Craig. The U.S. Trade Deficit: Causes, Consequences, and Cures. Congressional Research Service " the Library of Congress. August 2004. On the Internet at http://astro.temple.edu/~alistair/CRSTRADEDEFICIT.pdf.Last retrieved on June 29, 2007
3. Blecker, Robert. The Causes of the U.S. Trade Deficit. Trade Deficit Review Commission Washington, DC. August 1999. On the Internet at http://www.american.edu/academic.depts/cas/econ/faculty/blecker/statement%20of%200899.pdf.Last retrieved on June 29, 2007
Griswold, Daniel. The Causes and Consequences of the U.S. Trade Deficit. Testimonybefore the Senate Finance Committee Washington, DC June 11, 1998. On the Internet at
One of the current economic issues in America is the trade deficit, which is persistent and in most years growing. The U.S. had a slight trade surplus in the early 1980s, but since then has had a trade deficit. The deficit was growing through the mid-2000s and while it is still quite large, the straight downward trend in the trade deficit has flatlined (Trading Economics, 2014). The U.S. still has the world's largest current account deficit -- by a factor of nearly four (CIA World Factbook, 2014). Petroleum products account for a substantial portion of this, as much as 10%, but the development of fracking has reduced the percentage that oil contributes to the trade deficit, and has helped the trade deficit to flatline (U.S. Census Bureau, 2014). The major import partners are China (19%), Canada (14.1%), Mexico (12%) and Japan (6.4%). Of these, Canada and Mexico are not…
Amadeo, K. (2014). Trade deficit: Definition, causes, effects, role in BoP. About.com. Retrieved November 30, 2014 from http://useconomy.about.com /od/glossary/g/Trade_Deficit.htm
CIA World Factbook: United States. (2014). Retrieved November 30, 2014 from https://www.cia.gov/library/publications/the-world-factbook/ geos/us.html
FRB SF. (2007). Is the U.S. trade deficit a problem? What is the link between the trade deficit and exchange rates? Federal Reserve Bank of San Francisco. Retrieved November 30, 2014 from http://www.frbsf.org/education/publications/doctor-econ/2007/june/trade-deficit-exchange-rate
Trading Economics. (2014). United States balance of trade. TradingEconomics. Retrieved November 30, 2014 from http://www.tradingeconomics.com/united-states/balance-of-trade
S. economy, causing job losses that reach into the most technologically advanced industries in the manufacturing sector and affect every state, according to a January 11 press release by the U.S.-China Economic and Security eview Commission" (U.S. Info State Government, 2005). Also, these job losses not only negatively impact the population, but they also affect the business community. With fewer workers and resources, American companies will no longer be able to compete against foreign organizations. "A high percentage of the layoffs are as a direct result of competition from foreign companies. Eventually, as more and more money leaves the U.S., our businesses will be powerless to prevent further such activity" (American Economic Alert, 2008).
American Economic Alert, 2008, Trade Ticker - the Up-to-the-Second Counter for the U.S. Trade Deficit, http://www.americaneconomicalert.org/ticker_home.asp, last accessed on February 8, 2008
Bater, J., June 13, 2005, Trade Deficit Widens as Prices ise for Oil…
American Economic Alert, 2008, Trade Ticker - the Up-to-the-Second Counter for the U.S. Trade Deficit, http://www.americaneconomicalert.org/ticker_home.asp , last accessed on February 8, 2008
Bater, J., June 13, 2005, Trade Deficit Widens as Prices Rise for Oil and Other Imports, the Wall Street Journal
Central Intelligence Agency, 2008, the World Factbook - United States, https://www.cia.gov/library/publications/the-world-factbook/ geos/us.html, last accessed on February 8, 2008
Griswold, D.T., 1998, the Causes and Consequences of the U.S. Trade Deficit, the Cato Institute, http://www.cato.org/testimony/ct-dg061198.htmllast accessed on February 8, 2008
S. deficit in ATPs in 2004.
In 2004, the U.S. borrowed $665 billion annually from foreign lenders to finance its enormous trade deficit, an amount equivalent to $5,500 per American household (ivens, 2004). This borrowing entails serious consequences for the U.S. economy that have thus far been subdued by low interest rates. However, if the deficit follows current trends, ivens projects that the external debt of the U.S. will rise from 24% of total GDP at the end of 2003 to 64% by 2014 and the cost of servicing just the additional debt incurred from 2004 to 2014 will rise to 1.7% of GDP by 2014 or $250 billion in 2004 dollars. These numbers translate into a painful reduction in the future living standards of American households.
ivens, L.J.(2004, December 14). Debt and the dollar the United States damages future living standards by borrowing itself into a deceptively deep…
Bivens, L.J.(2004, December 14). Debt and the dollar the United States damages future living standards by borrowing itself into a deceptively deep hole. Retrieved July 11, 2005 from Web site: http://www.epinet.org/content.cfm/Issuebrief203
Odessey, B. (2005, February 10). U.S. trade deficit drops in December but hits record for 2004. Retrieved July 11, 2005 from Web site: http://hongkong.usconsulate.gov/usinfo/statis/ft/2004/12.htm
Soaring high-tech and other imports from China, sharply higher oil prices drive trade deficit to new record (2005, February 10). Economic Policy Institute. Retrieved July 11, 2005 from Web site: http://www.epi.org/content.cfm/webfeatures_econindicators_tradepict20050210
Earlier studies based on Bretton oods data were only refuted because the data sets of the later studies were insufficiently long. It may be, therefore, that Himarios is one of many that will now be able to demonstrate that long-term equilibrium is possible. It may that it requires nearly at least three decades' worth of data and a multi-country study in order to see the equilibrium emerge, meaning that previous theories were simply not taking into consideration the time frames that would be required for production, wage and policy shifts to be implemented and have their impact on a nation's balance of trade.
Himarios' findings do suggest that externalities cannot be maintained. hile a single government can maintain consistent economic policy for decades seemingly regardless of the consequences (Cuba or North Korea, for example) a free economy cannot. Eventually a trade deficit will result in a workforce demanding jobs, for…
Ahmad, J. & Yang, J. (2004). Estimation of the J-curve in China. East-West Center Working Paper. No. 67, 2004. Retrieved March 31, 2010 from https://scholarspace.manoa.hawaii.edu/bitstream/10125/3706/1/ECONwp067.pdf
Akbostanci, E. (2002). Dynamics of trade balance: The Turkish J-Curve. Economic Research Center. Retrieved March 31, 2010 from http://www.erc.metu.edu.tr/menu/series02/0205.pdf
Backus, D., Kehoe, P., Kydland, F. (1994). Dynamics of trade balance and the terms of trade: The J-curve? The American Economic Review. Vol. 84 (1) 84-103.
Bahmani-Oskooee, M. & Niroomand, F. (1998). Long-run price elasticities and the Marshall-Lerner condition revisited. Economics Letters. Vol. 61 (1) 101-109
Trade between the United States and Japan [...] trade between the United States and Japan, such as exports and imports of goods, exports and imports of services, tourism, and investments. Japan and the United States are two of the premier forces in trade around the world. The two countries depend heavily on each other in a variety of trade areas, from electronics to tourism and banking. Together, they form a formidable bond of trade that dominates the world market and the world economy.
In 2002, Japan's total foreign trade was 52,109 billion yen. The portion they traded with the United States was 14,873 billion yen, or 28% of the country's total foreign trade ("Yearbook," 2003). Conversely, the United States only trades about 9% of their foreign trade with Japan, so there has been a deficit between the two countries for many years. This seems odd since Japan is a smaller…
S. inflation in check, even during economic boom times.
The debate about increasing protectionism in the U.S. boils down to a clash of cultural values. In the natural course of international trade, there will be those who suffer and those who benefit. International markets are amoral. Trade is conducted between nations with the intent of raising the standard of living for both, but this is on aggregate, not universally. As a result, jobs losses in some sectors, particularly those where the U.S. does not have comparative advantage, are inevitable. To enact protectionist measures to stem those job losses will have three negative impacts.
The first is retaliatory trade measures. Tariffs and other protectionist measures tend to go hand in hand. If a country protects its industries, nations that trade with that country will do the same. This is the classic Smoot-Hawley scenario. To protect American jobs during the…
No author. (2009). Top ten countries with which the U.S. trades. Census.gov. Retrieved December 6, 2009 from http://www.census.gov/foreign-trade/top/dst/current/balance.html
No author. (2007). David Ricardo and comparative advantage. NetMBA.com. Retrieved December 6, 2009 from http://www.netmba.com/econ/micro/comparative-advantage/
US Department of State. (no date). Protectionism in the interwar period. U.S. Department of State. Retrieved December 6, 2009 from http://www.state.gov /r/pa/ho/time/id/17606.htm
Evenett, S. (2009). The G20's assault on world trade. VOX. Retrieved December 6, 2009 from http://www.voxeu.org/index.php?q=node/4008
Reflection Paper – International Trade
There has been a lot of talk lately about NAFTA being put at risk – either the US wanting to pull out of the deal or to significantly re-negotiate its terms. Industries that either benefit from NAFTA or feel that they do not benefit are lining up to express their positions – the latest being the auto industry, which has generally benefited significantly from NAFTA's country of origin rules
This discussion makes one reflect on the objectives of trade policy in general. The entire point of trade policy is to expand the economy by leveraging comparative advantages. While there are high profile instances where Mexico has comparative advantage, and has therefore won some trade away from the United States, the US has the most number of products in which it has a comparative advantage, with Mexico the least (Mzumara, Chingarande & Karambakuwa, 2012).…
4 trillion to about $5 trillion dollars at the end of 2008 to support a rise in U.S. net external debt from $3.3 trillion to $7.4 trillion. (Ibid. 6) Continued financing of the U.S. trade deficits by the rest of the world is also not without its long-term problems: the U.S. would accumulate so much debt over time that the ultimate cost of adjustment would become too high for the U.S. economy. Hence, all indicators regarding the sustainability of the U.S. trade deficit are blinking red, despite the brave face that the Bush administration puts on the issue.
Is China the Source of the Deficit Problem?
The U.S. administration believes that the alleged under-valuation of the Chinese Yuan is the source of its deficit problems since there is a huge and growing trade imbalance between the U.S. exports and imports to China. The U.S. Senate recently passed a bill, threatening…
Balance of Trade." (2005). [Online]. Wikipedia the Free Encyclopedia. Available from: http://en.wikipedia.org/wiki/Trade_deficit [19 April 2005]
Beck, B. (12 April 2005). "It's more than the deficit, stupid!" [Online]. Political gateway. Available from: http://www.politicalgateway.com/main/columns/read.html?col=334[19 April 2005]
Cock-a-doodle-doo" (3 Feb 2005). [Online]. The Economist. Available from: http://internationalecon.com/MyCourses/News%20Stories/Economist_com%20%20China's%20exchange%20rate.htm[19 April 2005]
Mann, C.L. (1999). Is the U.S. Trade Deficit Sustainable? Washington D.C: Institute for International Economics
The depreciating dollar improves the price competitiveness of U.S. exports in the foreign market thus reducing the deficit in the balance of trade. Dollar depreciation has a quicker and stronger impact to the exports than it has to the imports.
The slow effect of depreciating dollar on the trade balance resulted from import volumes increase. The U.S. imports were decreased in response to exchange rates with a dollar depreciating slowing the growth. The rapid shift of trade towards low cost emerging economies continues to corrode U.S. price competitiveness, which would improve the depreciating dollar. The consistence increase in oil prices also acted as a main contributor to the increased depreciation of dollar. This lead to commodity inflation affecting people's lives directly. U.S. enjoyed a period of better economic growth in year 2006 boosting the imports. This helped in increasing the value of the dollar restoring a better economy to the…
The World Economic Forum in its 2010 Global Competitiveness Report ranks the United States as the fourth most competitive economy in the world and the United States has been at or near the top of this ranking since it began in 1979, http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2010-11.pd
China Daily, October 28, 2010, "China's Twelfth Five-Year Plan signifies a new phase in growth," http://www.chinadaily.com.cn/bizchina/2010-10/27/content_11463985.htm and Martin Feldstein, "The End of China's Surplus, Project Syndicate, January 28, 2011, http://www.project-syndicate.org/commentary/feldstein32/English .
Elgin & David, 2011. Social science an Introduction to the Study of the Society. 14th Edition. Allyn and Bacon Publishers. ISBN-13: 978-0-205-70271-8.
Brexit and British Trade: Advantages and Difficulties
In June 2016, the UK voted to leave the European Union (EU). Commonly called "Brexit," the decision has raised a number of questions regarding Britain's current trading arrangements as well as possibilities and obstacles that await the UK post-EU (Hatzigeorgiou, Lodefalk, 2016). From a trade theory and policy perspective, this paper will assess the UK's current trading arrangements along with the potential advantages and difficulties it will likely face as a result of being outside the EU.
From a mercantilist trade theory perspective, Britain's current trading arrangements are based on what is good for the EU member states (Britain formerly being one of them). It is less protectionist from a nationalist point of view and the idea that a country might import less than it exports and thereby have a trade surplus. In the EU, the UK had a 24 billion pound trade…
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
Since Chinese exports to the United States were six times greater than America's exports to China in 2006, it was a clear reflection of America's most imbalanced trading relationship. The debate on whether or not the United States should trade with China began in the early 1990s when America's economy was much healthier and Chinese exports to the United States were smaller. In the recent years, this debate has risen to include concerns on whether China's trade policies are resulting in the transference and loss of many U.S. jobs.
Reasons hy the U.S. Should Not Trade with China:
Given the concern by policymakers and the entire American public, the United States should not trade with China because of various reasons which have a huge impact on the American population. These reasons include:
As mentioned earlier, this is one of the reasons why the United States should not trade…
Morrison, Wayne M. "China-U.S. Trade Issues." Federation of American Scientists. Federation of American Scientists, 1 July 2005. Web. 13 May 2011. .
Scott, Robert E. "Costly Trade With China: Millions of U.S. Jobs Displaced with Net Job Loss in Every State." Economic Policy Institute: Research and Ideas for Shared Prosperity. Economic Policy Institute, 9 Oct. 2007. Web. 13 May 2011. .
Trumbull, Mark. "How Much Does U.S.-China Trade Hurt American Workers? Slowly, a Clearer Picture." The Christian Science Monitor. The Christian Science Monitor, 10 May 2011. Web. 13 May 2011. .
Note: current prices values are expressed in AUD billion.
Australia's Trade Situation
In the June quarter 2007, Australia's exports of goods and services increased by 0.5%, reaching the value of $54.6 billion. This increase follows a series of increases, as for the 2006-2007 financial year, exports increased by 10%, reaching $216 billion. egarding the volume of Australia's exports of goods and services, it increased by 0.8% in the June quarter of 2007, while for the 2006-2007 financial year, increased by 4%. The index of prices received for exports did not have an ascending evolution, since it decreased by 0.3% in the June quarter 2007. However, in the 2006-2007 financial year, export prices increased up to 6% (DFAT, 2007).
egarding rural goods, their exports fell 0.7% reaching $25.1 billion. The rural goods exports volumes fell 4% to 24.4 billion. The evolution of specific rural goods was the following: meat and meat…
S. markets are listed as being:
Also is concern in the presence of the government in the telecommunications market sector. U.S. exporters need to know that shipping of foods and agricultural products must be done to meet Italian requirements whether sealed and bonded or not. Italy has also banned the commercialization of four corn varieties approved by the EU. The biotech corn ban may be in violation of EU regulations. The United States and the European Union are the two regions with the largest amounts of imports in Textile and Clothing as well as in terms of their GDP and power of purchase. There are also investment barriers in place making it a lengthy process and investors are prohibited from the airlines and aircraft manufacturing markets. Government procurement is also a problem as it is fragmented in Italy and there are problems with Conclusion:
Italy: Economy [Online] located at http://www.geographyiq.com/countries/it/Italy_economy_summary.htm
The World Textile and Clothing Trade: Globalization vs. Regionlization [Online] at http://184.108.40.206/search?q=cache:RhDXwbnGQ6KJ:blake.montclair.edu/ 'cibconf/co
2001 Country Reports on Economic Policy and Trade Practices; Bureau of Economic and Business Affairs U.S. Department of State, February 2002
Italy in the World Economy ICE Report 2003-2004
Evolution of International Trade From Static to Dynamic Theories
Evolution of International Trade
Generally, the principles governing the gains from trade can apply in both foreign and domestic trade. Although there is a tendency by states to view the two elements as different, economists on the other hand, suggest that the consequences of international trade were an extension of the laws governing domestic trade. Some of these principles were established very early, but a number of economists, for instance, John Stuart satisfactorily showed that it was possible to use similar principles to explain international and domestic trade. Therefore, economists are now confident that questions pertaining trade are similar, for instance, what is the advantage of trade between two parties? etween regions or countries? If individuals were self-sufficient, and can produce food, cloth or shelter, the living standards would be very low (Appleyard, Field and Cobb, 2005).
On the other hand,…
Appleyard, D., Field, A. & Cobb, S. 2005. International Economics, New York: McGraw-Hill.
Appleyard, D. And Field, A. 2005. International Economics, New York: McGraw-Hill.
Aitken, B., & Harrison, A. (1999). Do domestic firms benefit from direct foreign investment?
Evidence from Venezuela. American Economic Review, 89 (3), pp. 605-618.
Exchange Rate Volatility on Trade Flows
Exchange Rate Volatility
Impact on International Trade Flows
Exchange Rate Volatility
Impact on International Trade Flows
Trade Flow Responsiveness
The dissolution of the Bretton-oods system in 1973 introduced a new era for international markets. No longer would the exchange rates be pegged and fluctuating exchange rates changed the game for international trade and investment. The newly introduced increase in volatility in the foreign exchange markets also increases the risk of uncertainty for all international transactions. The floating rates produce new complexities that have implications for any individual or organization who buys sells, makes, or trades goods or currencies. These implications directly affect nation's balance of trade; however they also literally indirectly affect every individual's lives in one way or another.
The exchange rate volatility has had mixed theories produced by academia in terms of its effects on trade flows.…
BAHMANI-OSKOOEE, M., & KARA, O. (2003). Relative Responsiveness of Trade Flows to a Change in Prices and Exchange Rate. International Review of Applied Economics, 293-308.
Bahmani-Oskooee, M., & Wang, Y. (2008). IMPACT OF EXCHANGE RATE UNCERTAINTY ON COMMODITY TRADE BETWEEN THE U.S. AND AUSTRALIA. Australian Economic Papers, 235-258.
Cheong, Chongcheul, (2004) "Does the risk of exchange rate fluctuation really affect international trade flows between countries?." Economics Bulletin, Vol. 6, No. 4 pp. 1?8
Hegerty, M.B.-O. (2007). Exchange rate volatility and trade. Journal of Economic Studies, 34 No. 3, 211-255
New Trade Theory
Since the end of the Cold War, the world has been undergoing a major transformation. This is because of globalization and advances in technology are making countries more interdependent upon one another. The basic idea is to reduce trade barriers and increase the total amounts of competition. Over the course of time, this will increase productivity and specialization (which will help to improve the standard of living in specific regions). However, the recent economic implosion from 2007 to 2009, are illustrating how all economic theories are filled with flaws. (Taylor, 2008, pp. 1 -- 11)
As a result, a host of new theories are being introduced to address these issues. In some cases, this involves taking old ideas and combining them with new techniques. While at other times, these views are building off of the mistakes of the past to create the best economic philosophy. To fully…
Gonzalez, M. (2011). Is Porter's Diamond Applicable. International Journal of Business and Social Science, 2 (6), 17 -- 30.
Greenway, R. (2007). Firm Heterogeneity. The Economic Journal, 117, F134 -- F161.
Jones, R. (1994). America's High Tech Industries. Journal of the Economics of Business, 1 (1), 151 -- 157.
Rob, R. (2003). Foreign Direct Investment. Review of Economic Studies 70, 629 -- 648.
The primary advantage of trade, he argued, was that it opened up new markets for surplus goods and also provided some commodities at less cost from abroad than at home.
Mass perception of free trade in the United States is rarely positive. Immediately, people think of lost jobs and our growing trade deficit instead of the free trade promises of a higher standard of living brought about by the theory of comparative advantage and economies of scale. Therefore, many feel that free trade makes this country worse off.
Adam Smith (1723-90)." The Concise Encyclopedia of Economics. Available:
http://www.econlib.org/library/Enc/bios/Smith.html (Accessed 19 Feb. 2005).
David Hume (1711-76)." The Concise Encyclopedia of Economics. Available: http://www.econlib.org/library/Enc/bios/Hume.html (Accessed 19 Feb. 2005).
http://en.wikipedia.org/wiki/Mercantilist (Accessed 19 Feb. 2005)
David Hume (1711-76)." The Concise Encyclopedia of Economics. Available: http://www.econlib.org/library/Enc/bios/Hume.html (Accessed 19 Feb. 2005).
Adam Smith (1723-90)." The Concise Encyclopedia of Economics. Available:
http://www.econlib.org/library/Enc/bios/Smith.html (Accessed 19…
Adam Smith (1723-90)." The Concise Encyclopedia of Economics. Available:
http://www.econlib.org/library/Enc/bios/Smith.html (Accessed 19 Feb. 2005).
David Hume (1711-76)." The Concise Encyclopedia of Economics. Available: http://www.econlib.org/library/Enc/bios/Hume.html (Accessed 19 Feb. 2005).
Risks of the U.S. Current Account Deficit
There are many projected scenarios for the outcome of the ever increasing U.S. current account deficit. The largest immediate risk appears to be the potential reduction of the very large net capital inflows that are required to finance it (ergsten, 2007). This would lead to a decline in the exchange rate of the dollar that would push up the prices of imports and domestic goods. To check inflation, the Federal Reserve would most likely raise interest rates which would probably lead to recession. The economy is already softening, probably to growth of less than three percent for 2007, so increases in interest rates could push it into recession. Even if the current account deficit is sustainable for some time to come, critics are concerned that we have borrowed from our future and that the bill will have to be paid by the next…
Bergsten, C.F. (2007, February 1). The current account deficit and the U.S. economy. http://www.iie.com/publications/papers/paper.cfm?ResearchID=705
Current account balance - United States. http://www.fxwords.com/c/current-account-balance-united-states.html
Current account picture (2006, March 14). http://www.epi.org/content.cfm/webfeat_econindicators_capict_20060314
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alance of trade. Retrieved from Web site: http://en.wikipedia.org/wiki/alance_of_trade
uchanan, P.J. (2005, July 27). CAFTA: Ideology vs. national interests.The American Cause. Retrieved from Web site: http://www.theamericancause.org/a-pjb-050727-cafta.htm
uchanan, P.J. (2006, March 10). The fruits of NAFTA.WorldNetDaily. Retrieved from Web site: http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=49201
uchanan. P.J. (2007, February 27). Free trade and funny math. Retrieved from Web site: http://www.theconservativevoice.com/article/23116.html
CAFTA, trade deficits and jobs. usiness Coalition for U.S.-Central America Trade. Retrieved from Web site: http://www.uscafta.org/policy/view.asp?POLICY_ID=136
Henriques, G. And Patel, R. (2004. February 13). NAFTA, corn, and Mexico's trade liberalization. The Americas Program. Retrieved from Web site: http://220.127.116.11/search?q=cache:G1COehFHM_IJ:americas.irc-online.org/pdf/reports/0402nafta.pdf+agriculture+mexico+nafta&hl=en&gl=us&ct=clnk&cd=8
NAFTA: A strong record of success (2006, March). Office of the United States Trade Representative. Retrieved from Web site: http://www.ustr.gov/assets/Document_Library/Fact_Sheets/2006/asset_upload_file242_9156.pdf
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NAFTA works brochure. International Trade Canada. Retrieved from Web site: http://www.dfait-maeci.gc.ca/nafta-alena/broch-main-en.asp
Peterson, C. (2005, April 12). What USDA and USTR won't tell you about NAFTA…
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Buchanan, P.J. (2006, March 10). The fruits of NAFTA.WorldNetDaily. Retrieved from Web site: http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=49201
Buchanan. P.J. (2007, February 27). Free trade and funny math. Retrieved from Web site: http://www.theconservativevoice.com/article/23116.html
Social Partnership' And
The Implications for Trade Unions
This report attempts to explain what is meant by the term social partnership and it also evaluates some implications of social partnerships on trade unions. Social Partnerships have been elevated to be more of the foundation of industrial relations policies. Industrialized nations in these highly global, competitive and technologically advanced economic situations have all new social demands and issues. Labor parties and management teams today have come to realize and understand that if there are going to be economic success stories in their future, then both sides will be required to put emphasis on the importance of partnerships in the workplace. These partnerships entail new methods for problem solving, quality control and productivity. Today, both sides must understand that partnership agreements will help produce more socially adept workers who are well trained, prepared and competitive. Labor and management must come to a…
Baccaro, Lucio, et al. (1999). "The Brave New World of European Labor: European Trade Unions at the Millennium." Oxford: Berghahn Books.
Boucher, Gerry, & Collins, Grainne (2003). Having One's Cake and Being Eaten Too: Irish Neo-Liberal Corporatism. Review of Social Economy, Vol. 61.
Ferner, A. And Hyman, R. (eds) (1998) "Changing Industrial Relations in Europe." Oxford: Blackwell.
Guest, D.E. And Peccei, R. (2001) "Partnership at work: mutuality and the balance of advantage" British Journal of Industrial Relations, vol. 399 no.2 pp.207-236
Bilateral Trade Agreements: China and Korea
Bilateral trade agreements occur as significant initiatives for the growth of economies in various nations. The China-South Korean trade pact has endeavored to deepen the strategic and cooperative partnership between the two nations. Today, China is South Korea's largest trading partner. Bilateral pacts established the U.S. in China, and South Korea has enabled the U.S. to deepen its trading ties with these Asian countries leading to an increase in trade deficits (White House, 2015). These trade pacts have established a platform for economic progress of these nations leading to increased cooperation and collaboration.
Bilateral trade pacts are easier to negotiate based on the aspect that they only involve two nations. As a result, they can materialize quick enough to enable both the nations to benefit economically. The U.S.-China bilateral agreement has enabled the two nations to benefit economically on a large scale. U.S.…
BBC News (2014, Sept 2). EU enlargement: The next seven. BBC News. Retrieved from http://www.bbc.com/news/world-europe-11283616
The White House (2015, Sept 25). Office of the Press Secretary. FACT SHEET: U.S.-China Economic Relations. Retrieved from https://www.whitehouse.gov/the-press-office/2015/09/25/fact-sheet-us-china-economic-relations
The World Bank (2015). Data: Turkey. Retrieved from http://data.worldbank.org/country/turkey
On 4th May 2016 The Trade Union Bill received royal assent to become the Trade Union Act 2016.
Employment Minister Nick Boles said:
These changes will ensure people are only ever disrupted by industrial action when it is supported by a reasonable proportion of union members. The Trade Union Act means the rights of the public to go about their lives are fairly balanced with members ability to strike.
Unite General Secretary Len McCluskey said:
The bills progress today is a dark day for workers and for those who speak up in their defence when power is misused.
(Adapted from Moss (2016) Trade Union act 2016 becomes law, Personnel Today available at http://www.personneltoday.com/hr/trade-union-act-2016-becomes-law/ )
The Trade Union Act (2016) has been a controversial piece of legislation and did not have a smooth passage through parliament. The draft regulations are set to come into force on 1st March 2017.…
3 billion and in the exports of other goods of $0.7 billion in October compared to September. However, other goods categories reported decreases, like: foods, feeds and beverages (decrease was $0.5 billion), consumer goods (decrease was $0.4 billion), and industrial supplies and materials (decrease was $0.2 billion). Exports in categories like automotive parts, vehicle, and engine remained constant.
October imports of goods increased in the following categories: industrial supplies and materials with $1.9 billion, consumer goods with $0.4 billion, and automotive parts, vehicle, and engine with $0.5 billion. Imports of capital goods decreased with $0.5 billion, while imports of foods, feeds, and beverages decreased with $0.1 billion compared to the previous month. Other goods did not show any modification regarding imports.
Exports of services also increased October compared to September. The increase was of $0.5 billion. The most significant increases were reported in other private services (including business, professional, and…
1. U.S. International Trade in Goods and Services: October (2007). U.S. Census Bureau. U.S. Bureau of Economic Analysis. Retrieved December 17, 2007 at http://www.census.gov/foreign-trade/Press-Release/current_press_release/ftdpress.pdf .
The goods deficit with the European Union increased from $6.4 billion in September to $11.9 billion in October; the goods deficit with Japan increased from $6.2 billion in September to $8.0 billion in October; and the goods deficit with China increased from $23.8 billion in September to $25.9 billion in October.
Which product groups had the largest increases in exports?
The September to October export of goods increase resulted from increases in capital goods ($1.3 billion) and other goods ($0.7 billion). The September to October change in exports of services resulted from increases in other private services ($0.2 billion), which includes items such as business, professional, and technical services, insurance services, and financial services; travel ($0.1 billion), and other transportation ($0.1 billion), which includes freight and port services.
Which had the largest increases in imports?
The September to October increased in imports of goods resulted from increases in industrial supplies…
U.S. International Trade in Goods and Services Highlights (2007, December 12). U.S. Census Bureau Retrieved from Web site: http://www.census.gov/indicator/www/ustrade.html
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,
Country Study: China
International trade and finance
China Economic Issues with Trade
Suggestions for improving trading practices
COUNTY STUDY: CHINA
COUNTY STUDY: CHINA
COUNTY STUDY: CHINA
China, officially the People's epublic of China (PC), is considered to be a sovereign state located in East Asia. It is the world's most populous country, with a population that has over 1.35 billion. The People epublic of China is a single-party state which is supervised by the Communist Party, with its seat of government in the capital city of Beijing (Naughton, 2012). It handles a regions that is over some 22 provinces, five of them are autonomous districts, four are direct-regulated cities (Beijing, Tianjin, Shanghai, and Chongqing), and two typically self-governing special administrative districts (Macau and Hong Kong ). (Snyder, 2011)The PC People epublic of China likewise makes the claim that Taiwan -- which is mostly controlled by the epublic of…
Lin, Cai and Li, The China Miracle. (2003, September 26). Retrieved from Chinese University Press: http://books.google.com/books?id=_OEwbLZ2vYwC&printsec=frontcover&dq=Lin,+Cai+and+Li,+The+China+Miracle,+Chinese+University+Press,+2003&hl=en&sa=X&ei=8CRCUqmkFaTx2QX01oGwDg&ved=0CDEQuwUwAA#v=onepage&q&f=false
Penn World Tables. (2013, September 7). Long run time series of comparable main economic aggregates for many countries in the world. https://pwt.sas.upenn.edu/.
World bank World Development Indicators. (2013, September). Time series of economic and social indicators for every country in the world (annual frequency). http://databank.worldbank.org/data/home.aspx .
Assem Reda, A.H. (2012). Exploring egypt-china bilateral trade: Dynamics and prospects. Journal of Economic Studies, 39(3), 314-326.
Application to International Trade
Evaluation of New Governance
Application of New Governance to International Trade for Free Market
In today's robust world, scholars as well as the think tanks and tools of democracy and beaurcracy have been using a term "governance" or good governance rather frequently. Where governance in needed in every aspect of corporate management and public administration, it is important to understand how the very concept of governance has evolved over time. Old theory of governance has been replaced by its contemporary version which can be seen as a pre-requisite for the free trade regime especially for exporters. Where the new governance theory has a considerable impact on international trade; its effectiveness in public and private sector cannot be ignored.
Background of New Governance
Over past two decades, public and private organizations have followed a path of evolution. 'ayner's aiders' and the '3Es' of economy, efficiency…
Brown, A.G. & Stern, R.M. 2011. 'Free trade agreements and governance of the global trading'. University of Michigan.
Cleveland, Harland. 1972. The future executive: a guide for tomorrow's managers. New York: Harper & Row.
Heinrich, Carolyn J. And Laurence E. Lynn Jr., eds. 2000. Governance and performance: new perspectives. Washington, DC: Georgetown University Press.
Lynn, Laurence E. Jr., Carolyn Henrich, and Carolyn J. Hill. 2001. Improving governance: a new logic for empirical research. Washington, DC: Georgetown University Press.
Exchange Rate Fluctuations
Forex's opening trade on February 14, 2012 for the U.S. Dollar- Euro was one Dollar for .7593 Euros (Google Finance.com. February 14, 2012). Over the period covering the "Great Recession" and the subsequent recovery, the Euro has moved in a yo-yo pattern, at times buoyed by a weak dollar policy of the U.S., and alternately battered by a flight to safety as investors seek the relative strength of the world's reserve currency. Most recently the Dollar- Euro trade has seen the impact of a contagion sovereign debt crisis which has caused vicissitude swings in the currency trade. At the core of these movements however, is the fundamental question of what are the causes and factors of exchange rate fluctuations, and ultimately who are the beneficiaries?
Causes and Factors of Exchange Rate Fluctuations
hen discussing the exchange rate there are two components; the nominal exchange rate and the…
When discussing the exchange rate there are two components; the nominal exchange rate and the real. The former referring to "the rate at which a person can trade the currency of one country for the currency of another" (Mankiw, G.N. 2004), while the latter is " the rate at which a person can trade the goods and services of one country for the goods and services of another" (Mankiw, G.N. 2004). While the nominal exchange rate of one Dollar for .7593 Euros (Google Finance.com. February 14, 2012) garners the headline attention, it is the real exchange rate which is "a key determinant of how much a country exports and imports" (Mankiw, G.N. 2004). The practical application of the exchange rate is the appreciation or depreciation of a currency and the impact of that move on the affordability of goods and services.
Economists cite multiple factors for the movement of currencies relative to one another: inflation differentials, interest rate differentials, current account deficits, public debt, and political stability-economic performance (Investopedia.com. July 23, 2010). In the context of the Dollar-Euro trade, only a few of these factors directly play into the determination of the exchange rate. Inflation differentials mean very little due to the fact that Eurozone inflation year over year is averaging 2.748%, while the U.S.is averaging 2.96% (Global Rates.com. 2012). If there were a significant differential in inflation, lower inflation nations would have comparably stronger currencies. Interest rate differentials also have negligible impact in the Dollar-Euro currency trade. The Federal Reserve and European Central Bank have kept short-term interest rates under one percent for several years to encourage borrowing and liquidity. A large differential would indicate the country with higher rates would experience higher capital inflows and a currency appreciation. Both the Eurozone and U.S. run considerable current account deficits, the former 100 billion U.S. dollars in 2011 (Feldstein, M. November 30, 2011), while the latter experienced a 110 billion deficit in the third quarter of 2011 (U.S. Department of Commerce. 2012).
It is the last two factors which explain the largest movements in the Dollar/Euro trade; debt issuance and political stability and economic growth. The 800 pound gorilla in the room is that the Eurozone is in the midst of sovereign debt crisis which has poisoned the well of economic growth across the European economies. Greece, Spain, Portugal, Ireland and others are rife with high debt to GDP ratios which are strangling private sector opportunities. Germany and France remain the stalwarts of the EU economy, yet even these engines of growth are suffering from the ever increasing debt burden of ECB bailouts and the concomitant surge in possible sovereign credit defaults. While the U.S.
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 Trade: Trends in International Trade and the Economy
In recent years many developments are occurring within the world of international trade. These developments are vital to ones understanding of world economy and trade. As technology continues to advance the rate at which corporations can communicate across distant localities, more and more organizations are finding new ways to not only communicate but also trade products and services.
This paper will focus on recent trends and patterns in trade and their effects on the economy. The paper will also examine the potential benefits international trade has to offer participating nations compared with any negative effects free trade may have on the economy or citizens of a particularly nation. One of the more recent developments in international trade is recognition by economists of the importance of understanding industrial organizations from a theoretical perspective (Grimwade, 2000). Hence this paper will also attempt to…
Grimwade, N. International Trade: New Patterns of Trade, Production & Investment.
London: Routledge, 2000.
Kitson, M. And Michie, J. (1995). Trade and growth: A historical perspective. Chapter 1. In
J. Mitchie and J. Grieve Smith (eds.), Managing the global economy. Oxford: Oxford University Press.
The Chinese currency was selected as the focus of this study for several reasons. The primary reason behind this selection is the rising importance of the Chinese currency's valuation compared to other major world currencies. This is because of China's already large and still-growing trade presence in all global markets and the artificial nature of its currency's valuation, as the government manipulates the exchange rate for the enminbi by tying it to certain other currencies rather than allowing it to "float" with market forces as do most other countries in the developed and developing world (India Times 2010). Despite this artificial hold on the currency, however, the enminbi has been allowed to appreciate in value at an increasing rate, and this is beginning to have an effect on the significant trade surplus that the country has long maintained (India Times 2010). The fact that China is the world's second…
India Times. (2010). U.S.-China trade and currency row rumbles on at APEC summit. Accessed 27 January. http://economictimes.indiatimes.com/news/international-business/U.S.-China-trade-and-currency-row-rumbles-on-at-APEC-summit/articleshow/6921709.cms
Lin, J. (2004). Lessons of China's Transition from a Planned Economy to a Market Economy. Leon Kozminski Academy of Entrepreneurship and Management (WSPiZ) and TIGER Distinguished Lectures Series n. 16.
Each of the children received one of four possible treatments over a fourteen-month period - behavioral treatment, medication management, combination of the two, or usual community care. The results of this study showed that children who were treated with medication alone, which was carefully managed and individually tailored, and children who received both medication management and behavioral treatment had the best outcomes with respect to improvement of ADHD symptoms. The best results in terms of the proportion of children showing excellent response regarding were provided by ADHD combination treatment and oppositional symptoms, and in other areas of functioning. Overall, those who received closely monitored medical management had greater improvement in their ADHD symptoms than children who received either intensive behavioral treatment without medication or community care with less carefully monitored medication.
Treatment for ADHD is not without controversy. For most children with the disorder, medication is an integral part of…
Attention Deficit Hyperactivity Disorder (ADHD)." Center for Disease Control. 28 June 2005. 27 July 2005 http://www.cdc.gov/ncbddd/adhd/default.htm .
Attention Deficit Hyperactivity Disorder (Overview)." National Institue of Mental Health. 2001. 28 July 2005 http://www.nimh.nih.gov/publicat/helpchild.cfm .
Barkley, R. Attention deficit hyperactivity disorders: A handbook for diagnosis and treatment. New York: Guilford Press, 1998.
Bateman, B, JO Warner, E Hutchinson, T Dean, P Rowlandson, C Gant, J Grundy, C Fitzgerald and J. Stevenson. "The effects of a double blind, placebo controlled, artificial food colourings and benzoate preservative challenge on hyperactivity in a general population sample of preschool children." BMJ Publishing Group & Royal College of Paediatrics and Child Health. 14 September 2003. 28 July 2005 http://adc.bmjjournals.com/cgi/content/full/89/6/506 .
National Economic Policies
Economic policies refer to the crucial action that the government takes to control the economic aspects that might affect the cash flows in any given nation. The government is essential in ensuring that all the economic activities in the nation maintained to secure the profitable margins of the nation. The economic policies control almost every activity in the nation, which are vital in controlling the economy. The national economic policies control the large economic fields of a given region to ensure that the nations make profits (Cohen 123). Most of the national, economical aspects are more vital in controlling the imports and exports into nations. The national economic policies generated by international institutions, established by the member state nations. In creating the management team of the international institution, each nation is required to give a leader that will assist in creating the policies to govern the economy…
Cohen, Stephen D. The Making of United States International Economic Policy: Principles,
Problems, and Proposals for Reform. Westport, Conn: Praeger, 2000. Print.
Persson, Torsten, & Guido E. Tabellini. Political Economics: Explaining Economic Policy.
Cambridge, Mass. [u.a.: MIT Press, 2000. Print.
United States' current international position writing a speech 750 words amateur reporters simple terms concepts. This assignment student evaluate effects surplus imports effects GDP, domestic international markets, students.
United States' current international position
When conducting international trade, the scope of any country is that of maximizing its revenues through exports; nevertheless, in an increasingly open global market place, countries must also open their own boundaries to imports from other regions. The balance between the exports and the imports reveals the country's trade; if the exports exceed the imports, then the country has a trade surplus; if, on the other hand, the country imports more than it exports, then there is a trade deficit.
In a context of a surplus of imports, namely a trade deficit, the country faces several issues. For once, it becomes less able to generate revenues from its own exports and it spends more on paying for…
Scott, R.E., Wething, H. (2012). Jobs in the U.S. auto parts industry are at risk due to subsidized and unfairly traded Chinese auto parts. Economic Policy Institute. http://www.epi.org/publication/bp336-us-china-auto-parts-industry / accessed on October 5, 2012
Wang, P. (2009). The economics of foreign exchange and global finance. Springer
S. economy coupled with slower growth rates in key U.S. trade partners, and not a sign of poor economic health.
as this an attempt of the administration to put a happy face on bad economic news? Quite simply, U.S. consumers, said the Bush Administration, had more dollars to spend on imported goods, hence the increased gap -- the gap in the short run was a sign of health, said the administration. "e have an economy that is growing faster than most around the world and that can increase the trade deficit," said hite House spokesman Scott McClellan. The Commerce Department said the U.S. trade gap widened in October to a record $55.45 billion. (AP ire, 2004)
Outside analysts also looked to the higher cost of crude oil and petroleum products played a key role in the October figures, putting a not-so happy face on the balance of payments deficit in…
AP Wire Website. (2004) "U.S. Trade Gap Widens as Production Rises." October 2004.. Retrieved 17 Dec 2004 at http://app.quotemedia.com/data/newsItem.htm?storyId=1533543
Balls, a. (19-20 June 2004) "U.S. current account deficit £1.5bn a day." Financial Times.
Ruby, P. (1999) "Balance of Payments." Digital Economis website last updated 2003. Retrieved 17 Dec 2004 at http://www.digitaleconomist.com/bop_4020.html
Hughes, J. (14-15 August2004)" Record U.S. trade deficit follows rise in imports,." Financial Times.
For instance the World Trade Organization reports having "allowed First World countries to raise trade barriers protecting their companies, even as we have served as their forum for insisting that Third World countries lower their trade barriers more and more." (WTO,
The truth is that if richer nations were to open their markets to the LDC countries for increase opportunities of export, generated would be approximately $700 billion in additional trade for developing countries. (UNCTAD Trade and Development Report, 1999; in WTO,
The World Trade Organization relates that no known causal link exists between foreign investment and the reduction of poverty as approximately eighty percent of foreign direct investment in "in the form of mergers and acquisitions, little in the form of productive investment that creates jobs and exports."
WORLD ECONOMY in the LAST TWO DECADES
The work entitled: "The North American Integration Regime and Its Implications for the World…
Sporleder, Thomas L. And Martin, Larry J. (nd) Economic Perspectives on Competitiveness Under WTO, NAFTA, and FTAA.
Abbott, Frederick M. (1999) the North American Integration Regime and Its Implications for the World Trading System - the NAFTA in the WTO System NYU School of law Online available at http://www.jeanmonnetprogram.org/papers/99/990201.html
Answering the Critics: The Myths and Realities of Trade Liberalization. Business Roundtable. Online available at http://trade.businessroundtable.org/trade_basics/answering_critics.html
Trade Liberalization Statistics (2008) World Trade Organization. Online available at http://www.gatt.org/trastat_e.html
Marketing and Economics Question Set
Compare and contrast core beliefs/values and secondary beliefs/values. Provide an example of each and discuss the potential impact marketers have on each.
Core beliefs and values are those which have been passed down from parents to their children, before becoming reinforced through the teaching and instruction offered by schools and churches, and government. Conversely, secondary beliefs and values are flexible and adaptable in nature, allowing for the individual propensity for progression in terms of personal worldview. The belief that couples should marry before having children would be a core belief; while the preference that people marry early in life constitutes a secondary belief. From a marketing standpoint secondary beliefs are of more interest, because these views can be altered through advertising and other methods, while core beliefs are typically engrained and inflexible.
Compare and contrast a company's microenvironment with a company's macroenvironment.
A company's microenvironment…
CIPD. (2013). PESTLE analysis: Resource summary. Available: http://www.cipd.co.uk/hr-resources/factsheets/pestle-analysis.aspx . Last accessed 4th Oct 2013.
Fidgeon, T. (2012). PESTLE Macro Environmental Analysis. Available:
Analysis_11_31. Last accessed 4th Oct 2013.
In a slumping economy, imports decrease, but exports may hold steady. Another way in which the business cycle is related to the current account is that measure taken to address business cycle issues, such as trade barriers, subsidies or exchange rate policy can impact the current account by altering the balance of trade. However, it would take a substantial change in the business cycle in order to affect the current account at this point. The country would need to reduce imports dramatically, as happened in Argentina following their currency collapse. Regular business cycle shifts will impact the current account but the deficit is presently so large that it these impacts will not reverse the current trends unless the change in the business cycle is catastrophic.
hat is the relationship between a country's net financial inflows & its current account?
The relationship between the net financial flow and the current account…
2008 Economic Report of the President. (2008). Executive Office of the President of the United States. Retrieved November 7, 2008 at http://www.gpoaccess.gov/eop/tables08.html
Nguyen, Elena L. & Gohrband, Christopher a. (2006). U.S. International Investment Position 2005. U.S. Department of Commerce. Retrieved November 7, 2008 at http://www.bea.gov/bea/newsrel/intinvnewsrelease.htm
Korporaal, Glenda. (2007). Greenspan Gives our Deficit his Blessing. The Australian. Retrieved November 7, 2008 at http://www.theaustralian.news.com.au/story/0,25197,22,00.html
Humpage, Owen F. (2004). A Hitchhiker's Guide to the U.S. Current Account Deficit. Federal Reserve Bank of Cleveland. Retrieved November 7, 2008 at http://findarticles.com/p/articles/mi_qa5294/is_200410/ai_n24288457
China's currency policy may make that country the main country with whom the U.S. has a current account deficit, but if not for China the U.S. would have the same problems, just with another country for the protectionists to scapegoat.
3) I think an aggressive legislative posture is the best approach to take with regards to China's currency position. Ultimately, China is an economic actor the same as any other. They are going to do what they feel is best for their country (Wolf, 2006). Thus, in a situation like this where their currency policy is viewed to be doing harm to the U.S. economy, the best approach to make them reconsider such policy is to alter the economics of that policy. Thus, tariffs, sanctions and anti-dumping fines are the most effective means.
In the specific case of China, the notion that a WTO ruling is going to change their…
Martin Wolf, "How China has Managed to keep the Renminbi Pinned Down," Financial Times, October 11, 2006, p.13
Sue Kirchhoff, "First step: China Will Stop Pegging Yuan to Dollar," USA Today, July 22, 2005, pp. 1B, 2B
Keith Bradsher, " a Chinese Revaluation May Not Help U.S.," the New York Times, January 4, 2005, pp. C1, C5
Ronald McKinnon, "The International Dollar Standard and Sustainability of the U.S. Current Account Deficit," Stanford University, March 29/30, 2001, retrieved online June 11, 2008 at http://www-econ.stanford.edu/faculty/workp/swp01013.pdf
Canada International Trade
International trade accounts for a dominant share of the Canadian economy, led by exports of natural resources. Exports accounted for approximately 25% of Canada's GDP in 2010. Agricultural, energy, forestry and mining exports accounted for about 58% of total exports. Machinery, equipment, automotive products and other manufactured goods accounted for a further 38% of exports. The United States is by far its largest trading partner, accounting for about 75% of exports and 51% of imports (followed by China 11% and Mexico 5%.) Canada's combined exports and imports ranked 8th among all nations. Canada recorded a positive balance of trade overall in 2010: exports C$407B and imports C$ 406B. Canada enjoyed a substantial positive balance of trade with the United States in 2007 and 2008, but slipped into the red in 2009 and 2010. (See Exhibit 1) (CIA, 2010)
Among the world's wealthiest nations, Canada has the ninth…
CIA World Fact Book, (2010). Retrieved March 17, 2011 from https://www.cia.gov/library/publications/the-world-factbook/
Dung, T., (1998), "Exchange Rate Determination" Wright State University. Retrieved March 17, 2011 from http://www.wright.edu/~tdung/Lec_and_excer_on_Exchange_rate_determination.pdf
Encylopedia of the Nations, (2010). Retrieved March 17, 2011 from www.nationsencylopedia.com/economics/Canada-International-trade.html#ixzz1Gn4sLCd2
Foreign Affairs and International Trade Canada, "The NAFTA's Impact." Retrieved March 17, 2011 from http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/nafta-alena/nafta5_section04.aspx?lang=en
Bush implied unemployment figures were declining and Kerry touted very high unemployment figures. In hindsight, it appears that the labor department statistics concurred with the Kerry camp. When Bush still won, unemployment trend indicators seem to be coming true now and there seems to be more problems on the horizon for the economy. The Bureau of Labor Statistics indicated recently that new jobs being created in the economy were the types of jobs that cannot fuel economic growth. Thus, the economy is and will continue to lose jobs to cheaper labor markets around the globe.
The Federal eserve has dictated the cost of capital for businesses to borrow. Trends show that cash shortages in corporate American are increasing and borrowing heavily will be a likely result. Therefore, future actions of the Federal eserve impacts a major aspect of America's future. Trends to observe by the Fed relate to consumer consumption…
Employment Situation Summary. Ed. Bureau of Labor Statistics. 12/3/2003. Department of Labor. Retrieved on 4/13/2005, from http://www.bls.gov/news.release/empsit.nr0.htm .
Heilbroner, Robert, & Thurow, Lester (1982). Economics Explained: Everything You Need to Know About How the Economy Works and Where it Is Going. Englewood Cliffs: Prentice Hall.
Marx, Karl (1977). Capital, Volume 1. New York: Random House.
Marx, Karl (1978). Capital, Volume 2. New York: Random House.
The Dilemma of a Ethical Practices and Profitability of Trading with China
China continues to have one of the world's strongest and most resilient economies, achieving a 10.3% Gross Domestic Product (GDP) growth rate in 2010 compared to the world average of 4.2% and the United States' 2.9%. U.S. Lawmakers continue to question the $4M in foreign aid that Congressional budgets are requesting for one of the fastest growing economies globally today (Pennington, 2011). Despite the rationalization that this significant amount of investment is necessary for clean energy primary research, the rationalization is weak when compared to the many economic challenges and hardships the U.S. continues to face (Pennington, 2011). As of October, 2011 the cumulative 2011 trade deficit with China is today at $217B, down from a high of $270B earlier in the year. Arguably China could more afford to provide foreign aid to the U.S., not vice…
Ho, C., & Redfern, K.. (2010). Consideration of the Role of Guanxi in the Ethical Judgments of Chinese Managers. Journal of Business Ethics, 96(2), 207-221.
M Islam, & M. Gowing. (2003). Some empirical evidence of Chinese accounting system and business management practices from an ethical perspective. Journal of Business Ethics, 42(4), 353-378.
Lawrence, W., & Sun, W.. (2010). A Cluster Approach towards Enhancing Chinese- American Trade Opportunities. International Journal of Business and Management, 5(2), 44-51.
Pennington, M. (2011, November 15). Lawmakers scrutinize u.s. foreign aid to china. Washington Times. Retrieved from http://www.washingtontimes.com/news/2011/nov/15/lawmakers-scrutinize-us-foreign-aid-china/
hat is the basis for support of free trade agreements and what benefits are derived?
The conservative Heritage Foundation takes the position that free trade allows American workers to "specialize in goods and services that they produce more efficiently" than anywhere else in the world; then, those goods can be (and are) exchanged for services and goods "that other countries produce at higher quality and lower cost" (Eiras, 2004). This policy helps America become more "competitive and innovative," Eiras writes; and by being innovative, America then produces new technologies which offer opportunities to produce even more goods and services (p. 1). The benefits for America vis-a-vis free trade agreements include: a) the chance to cure more diseases; b) improved educational facilities and institutions; c) less pollution; d) and greater economic growth and a greater "range of investment opportunities" (Eiras, p. 1).
hen there is strong economic growth, which…
Amadeo, K. (2013). Advantages of NAFTA. About.com. Retrieved August 9, 2014, from http://useconomy.about.com .
Amadeo, K. (2013). Disadvantages of NAFTA. About.com. Retrieved August 9, 2014, from
S., which has the potential to widen the already gaping trade gap between the two super economies. The U.S. is really in no position economically to begin to demand that China shape up its currency valuation policies and trade agreements toward the west. Crook's argument for action is compelling, and leaves the reader to wonder why the current U.S. presidential administration has really done nothing to remedy the ever-growing problem of U.S. And Chinese trade disagreements.
As far as direct actions that the U.S. could take to fight back against the Chinese trade deficit, it would be quite easy and politically savvy for the Obama administration to begin taxing or discouraging outsourcing of U.S. production jobs to China, and begin to implement tariffs on Chinese goods. This would help reduce the incentives that U.S. companies have to move their labor elsewhere while at the same time raising the bar on…
Crook, Clive. (2010). "Time to get tough with China." Financial Times. Published 10
Oct, 2010. Available online at: http://www.ft.com/cms/s/0/2b931da6-d49a-11df-b230-00144feabdc0.html .
role of innovation in determining long-term economic growth and provide three public policies that are likely to encourage innovation. Provide an example of a recent innovation that has the potential to have a significant impact in one or more industries.
he nation needs to experience a situation where its exports are greater than its imports. his causes it to become wealthy and prevents many problems of economic hardship such as unemployment, the output and income in the economy, the price level, and burden of debt, inflation, national discontentment, and market inefficiencies and non-equilibrium that may will be the result of the reverse called a balance of trade deficit. here may also be preference for foreign products as opposed to locally-produced products which results in less of the local products being sold and in increase of their price. Whilst surplus of imports may be good for individual consumers who may end…
The Business Journal Obama vs. Romney on 7 innovation policy issues, 2012. http://www.bizjournals.com/bizjournals/washingtonbureau/2012/09/12/obama-vs.-romney-on-7-innovation.html?page=al
Rising to the Challenge: U.S. Innovation Policy for Global Economy
China - United States Trade Analysis
Chinese Economic Development
China's Growing Resource Needs
China and Globalization
Protecting Intellectual Property
orking with Government Bureaucracy
International Management Considerations
Modes of Market Entry into China
Recommendations for International Expansions
China financial integration has significantly developed over the past three decades. The total of U.S.-China trade balances grew from $5 billion in 1980 to $409 billion in 2008. Both economies were significantly affected by the global financial crisis and the 2008 balance was reduced by a little over ten percent in 2009. However, the United States is still the world biggest importer of Chinese goods and the Chinese market as represent the third largest importer of U.S. exports. The total amount of trade between these two financial powerhouses is enormous. Furthermore, the Chinese population is already staggering and it is developing economically in historical rates. Thus China also represents a key strategic…
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Gallagher, P. "CHINESE TRADE GROWTH IN HISTORICAL, REGIONAL CONTEXT." Trade & Public Policy . June 14, 2005. http://petergallagher.com.au/index.php/site/article/chinese-trade-growth-in-historical-regional-context (accessed August 30, 2011 ).
Inocencio, R. "The 'American Age' to end in 2016?" CNN Business. April 27, 2011. http://business.blogs.cnn.com/2011/04/27/the-american-age-ends-in-2016 / (accessed August 29, 2011).
Mankiw, G. "China's Trade and U.S. Manufacturing Jobs." Havard Economics. October 2003, 2003. http://www.economics.harvard.edu/files/faculty/40_testi_hcwm.pdf (accessed August 29, 2011).
USD/CNY Currency Exchange elationship
The amount of money passing through a foreign exchange market was pegged at $4.0 trillion per day in April 2010 (Bank for International Settlements, 2010). Among the many currencies traded on the open market, the U.S. dollar (USD) continued to lead the pack by a wide margin; a full 84.9% of all trades involved the USD. By comparison, the Chinese currency (CNY) increased its share of the global FX market from 0.1 to 0.9% between April of 20004 and 2010. To better understand how trade with China impacts the exchange rate this essay will examine monetary policy for both countries.
USD/CNY Foreign Exchange Market
The sum of the current (CA) and capital (CAP) accounts will theoretically be zero if the exchange rate between two currencies is flexible (MacDonald, 2007, p. 7). Since M = + D, where M. is the base money supply, is the…
Bank for International Settlements. (2010). Triennial Central Bank Survey. Report on Global Foreign Exchange Market Activity in 2010. Retrieved 22 May 2014 from http://www.bis.org/publ/rpfxf10t.pdf .
ECR Research. (2014). China's exchange rate policy. Retrieved 22 May 2014 from http://www.ecrresearch.com/chinas-exchange-rate-policy .
ETF Database. (2014). CYB -- Dreyfus Chinese Yuan Fund. Retrieved 22 May 2014 from http://etfdb.com/etf/CYB/ .
MacDonald, R. (2007). Exchange Rate Economies: Theories and Evidence. New York: Routledge.
Cross-Country Capital Flows and Currency
overseas investment .
GLOBAL INSTITUTES IN INTERNATIONAL FINANCE .
INTERNATIONAL FINANCE CORPORATION .
ORLD BANK .
ORLD TRADE ORGANIZATION
INTERNATIONAL MONTARY FUND .
INTERNATIONAL FINANCE IN CHINA .
THE EXCHANGE RATE FIASCO
FINANCIAL CRISIS IMPACTS ON SINO-AMERICAN RELATIONSHIP
RECESSION'S AFFECT ON CHINA .
ASIAN MONETARY FUND .
CHINA'S TRADE POLICIES AND THEIR CONTRIBUTION TO THE FINANCIAL CRISIS
Monetary policy is the study of circulation of money, the granting of credit, the making of investments and the provision of banking facilities and international finance is studying it on an international level.[footnoteRef:2] Usually the affect can be seen in exchange rate and foreign investment and international trade. This includes the analysis of global financial markets, cross-country capital flows and currency, international projects, and overseas investments. [2: Merriam-ebster Online Dictionary: http://www.merriam-webster.com/]
US Monetary Policies have a far reaching effect on the other…
Alta villa, Carlo, and Matteo Ciccarelli. "The Effects of Monetary Policy on Unemployment Dynamics under Model Uncertainty: Evidence from the United States and the Euro Area." Journal of Money, Credit & Banking 41.7 (2009): 1265+. Questia. Web. 18 Mar. 2011.
Auerbach, Robert D. Deception and Abuse at the Fed: Henry B. Gonzalez Battles Alan Greenspan's Bank. Austin, TX: University of Texas Press, 2008. Questia. Web. 18 Mar. 2011.
Barron, Jacob. "Jobs, Exports and the Yuan: Pressure Builds on China for Currency Reform." Business Credit May 2010: 30+. Questia. Web. 18 Mar. 2011.
Bi, Jianhai. "An Asian Monetary Fund? Jianhai Bi Outlines Asian Efforts to Protect Their Economies during the Global Financial Crisis and Predicts Long and Difficult Negotiations." New Zealand International Review 34.6 (2009): 8+. Questia. Web. 18 Mar. 2011.
Alan Greenspan's testimony starts with a comparison between the state of the U.S. economy in July 2004, time of his present testimony, and the state of the economy in February 2004, the time of his previous testimony in front of the U.S. Congress.
In February 2004, the main problem of the U.S. economy, as identified by Greenspan, was the fact that the company's increase in income and net profits were related to a better use of human resources rather than on an increase in employment. In other words, despite the fact that the economy was on the rise, it failed to produce new jobs. This was a direct consequence, in Greenspan's opinion, of the risks associated with increased employments, more notably "corporate accounting and governance scandals," a "decline in stock prices" and the overall "geopolitical tensions"
As compared to the unemployment situation in February 2004, the period up to July…
1. Testimony of Chairman Alan Greenspan Federal Reserve Board's semiannual Monetary Policy Report to the Congress. July 2004. On the Internet at http://www.federalreserve.gov/boarddocs/hh/2004/july/testimony.htm
2. CBO's Current Economic Projections. January 2005. On the Internet at http://www.cbo.gov/showdoc.cfm?index=1824& ; sequence=0#table3
3. Yen Heads for Fourth Straight Week of Declines on Economic Growth Concern. Bloomberg. On the Internet at http://www.bloomberg.com/news/markets/currencies.html
4. International Monetary Fund World Economic Outlook. Chapter 2 -- The Global Implications of the U.S. Fiscal Deficit and of China's Growth. Page 64. On the Internet at http://www.imf.org/external/pubs/ft/weo/2004/01/pdf/chapter2.pdf
The forecast provided by Allen Sinai gave the reader a somewhat accurate analysis of the macroeconomic phenomenon. However, there are also a few problems. Sinai estimates a 0.4% increase in 2005 for the consumer price index, which is not actually correct, but it's not to far from reality either. Given the increase of the interest rate, people will probably feel not so comfortable in buying as much as during the previous years, so a slight decrease can be expected. After all, January is known as a slow month. 0.4% means about 4% a year, which is much more than the economy is currently able to take.
The estimated trade balance was larger than the recorded one, therefore proving the pessimism of Mr. Sinai. After all, many analysts expected worse trade deficit results than the one that were published in November 2004. It would seem that the low-value dollar policy promoted…
1. Testimony of Chairman Alan Greenspan Federal Reserve Board's semiannual Monetary Policy Report to the Congress. July 2004. On the Internet at http://www.federalreserve.gov/boarddocs/hh/2004/july/testimony.htm
2. CBO's Current Economic Projections. January 2005. On the Internet at http://www.cbo.gov/showdoc.cfm?index=1824& ;sequence=0#table3
3. International Monetary Fund World Economic Outlook. Chapter 2 - the Global Implications of the U.S. Fiscal Deficit and of China's Growth. Page 64. On the Internet at http://www.imf.org/external/pubs/ft/weo/2004/01/pdf/chapter2.pdf
Agregate Demand, IS-LM, AD-as information on the Internet at 4. www-rcf.usc.edu/~yongkim/305n2004p2.pdf
Account Deficiency in U.S.
There are consequences when the amount of money a country spends abroad is very different from what the country receives from the outside world. The current account balance is an abstruse economic concept. In countries that are, spending more outside more than they are taking in then the current account is the point at which the international economies come to terms with the political reality. When countries that have large deficits, trade unions, businesses and parliamentarians are quick to point fingers at the trading partners and make amendments due to their unfair practices. Tension between China and United States is primarily as a result of trade imbalance between these two which has thrown a spotlight on broader consequences of the international financial systems when some of the countries run large and the persistent current account deficits and others accumulate large surpluses.
The current account can be…
Ghosh, AS. & Ramakrishnan, U. (2012). Current Account Deficits: Is There a Problem? Retrieved July 25, 2014 from http://www.imf.org/external/pubs/ft/fandd/basics/current.htm
Moneycontrol.Com. (2013). Current account deficit: How does it impact economy? Retrieved July 25, 2014 from http://www.moneycontrol.com/news/advertising/current-account-deficit-how-does-it-impact-economy_822620.html
Bergsten, F. (2007). The Current Account Deficit and the U.S. Economy. Retrieved July 25, 2014 from http://www.iie.com/publications/testimony/print.cfm?researchid=705&doc=pub
The National Housing Act indirectly promoted the idea of lenders offering much longer-term mortgages with the currently accepted concept of monthly payments with the dual interest and principal payment scale. Amortized real estate mortgages opened the door for an average person to purchase and own a single family home.
As a result of the National Housing Act, the United States government inadvertently committed itself along with private lenders to insure long-term mortgages that could be held for as long as twenty or more years at an interest rate that was affordable. Although the process at first was bogged down by paperwork and bureaucracy it eventually caught on.
Part of the reason the process took hold was because in addition to guaranteeing the loans, the National Housing Act through the formation of the Federal Housing Administration also investigated properties and neighborhoods which added an extra measure of security and guaranteed real-estate…
Works Cited continued
Housing: The Key to Economic Recovery. Ed. NAHB. Natioanal Association of Home Builders. 5 Nov. 2004 http://www.nahb.org/fileUpload_details.aspx?contentTypeID=7&contentID=46 .
Longman, Phillip. "The Mortgaged Generation: Why the Young Can't Afford a House." Washington Monthly, Vol. 18 April 1986.
Meyerson, Martin, Barbara Terrett, and William L.C. Wheaton. Housing, People and Cities. New York: McGraw-Hill, 1962.
Peterson, James R. "Housing Plays Politics to Keep Growth Strong." ABA Banking Journal Vol. 92 (2000).
The Chinese invented gunpowder, but they do not use it to make guns to invade others, the Chinese invented the compass, but they do not use it to make warships to prowl about the four seas. At the United Nations, Chinese leaders once promised to the world that "China will never seek hegemony." China has settled all boundary questions with its neighbors through peace negotiations, consultations on an equal footing and on the basis of mutual understanding and mutual accommodation, it has never imposed its own will on others. So, from the perspective of security, the view holding that China, after it is developed, would constitute a threat to others is entirely groundless."
China's rapid success is seen by Americans as a threat. But the U.S. is actually in a position to turn this shift into an opportunity to grow. China's rapid economic growth has changed the world and helped…
Kurlantzick, J. (September, 2003). Are Chinese Companies a Threat to Your Small Business? Entrepreneur.
Lardy, Nicholas. (2002). The Economic Rise of China: Threat or Opportunity? Federal Reserve Bank of Cleveland.
Nolan P. (2004). Transforming China Globalization, Transition and Development. Anthem Press.
People's Daily Online. (August, 2005). China: Is it a threat, or an opportunity?
Economic Integration of GCC Countries: Developments Since
Economic Integration of GCC Countries: Latest Developments Since 2010
It is important to examine the Gulf Cooperation Council (GCC) Key Economic Indicators. Primarily, 2014 Key economic indicators will present statistical information, which will seek to foster economic determination and engineer the determination of current and future performances. A collective economic indicator examines aggregate earning reports, list of economic summaries relating to this region and as well as, reflecting on various macroeconomic indices. This report will prove that the GCC (2014) economic indicators are collective in answering aggregate macroeconomic challenges. This study is a collective possible research leading to the construction of key economic indicators (2014) analysis as adopted by GCC partners. GCC economies have been growing tremendously in the past ten years. This study focuses solely on some of the serious economic developments and polices evident in the region in the past four…
Al-Busaidi, Samir. "Modelling Macroeconomic Shocks in the GCC: Is Monetary Unification Viable?" Review of Middle East Economics and Finance 9.1 (2013): 1-36
Cevik, Serhan, and Katerina Teksoz. "Lost In Transmission? The Effectiveness Of Monetary Policy Transmission Channels In The GCC Countries." Middle East Development Journal 05.03 (2013): 1350018. Print
Espinoza, Raphael A, Ghada Fayad, and A Prasad. The Macroeconomics of the Arab States of the Gulf. 2013. Print
Espinoza, Raphael. Williams, Oral., & Prasad, Ananthakrishnan. Regional Financial Integration in the GCC. New York: International Monetary Fund, 2010. Print.
It is necessary to underscore this importance given the current fragility of the international trading system amid a global resurgence of protectionist pressures due to the deepening economic crisis (Bown, 2009).
In 2006, and in response to increased political pressure by the U.S. Congress, Washington initiated the current U.S. strategy of using the judicial forum of the WTO to manage bilateral trade frictions with Beijing. In March 2006, Canada and the European Community (EC) joined the United States in the first dispute by challenging China's discriminatory treatment of imported automobile parts. In 2007, the United States and Mexico disputed China's system of subsidizing domestic industries. Also in 2007, the United States initiated two complementary disputes over China's treatment of imported movies, music, and books, both Beijing's failure to enforce American intellectual property rights protection and its creation of regulatory hurdles that impede Hollywood film studios and other media and publishing…
Bown, Chad P. (2009). U.S. -- China Trade Conflicts and the Future of the WTO. Retrieved April
0, 2010 from Web site: http://fletcher.tufts.edu/forum/archives/pdfs/33-1pdfs/Bown.pdf
Gross, Daniel. (2009). Chicken Feet and Chump Change. Retrieved April 20, 2010, from Newsweek Web site: http://www.newsweek.com/id/216754
Lum, Thomas and Nanto, Dick K. (2007). China's Trade with the United States and the World.
The other implication is the impact of the balance of payments on the business. The negative balance of payments represents an outflow of wealth, which slows domestic economic growth. The U.S. becomes less competitive as a result. For most companies, this places downward pressure on costs. In many cases, the downward cost pressure results in offshoring, which exacerbates the balance of payments deficit. Griswold (1999) argues that this is beneficial to the U.S. economy overall. Increases in the trade deficit are correlated with positive economic outcomes. For a company involved in importing it certainly means a higher level of activity -- more goods are coming in because more people are buying them.
Conclusion: Trade transactions are directly reflected in, and an important component of, the balance of payments. For business, the balance of payments is relevant for its impact on the economy. A negative balance of payments places downward pressure…
Pugel, T. () International Economics.
No author. (2009). Balance of payments. Federal Reserve Bank of New York. Retrieved March 15, 2010 from http://www.newyorkfed.org/aboutthefed/fedpoint/fed40.html
Scott, R. (2007). Wal-mart's reliance on Chinese imports costs U.S. jobs. Economic Policy Institute. Retrieved March 15, 2010 from http://www.epi.org/economic_snapshots/entry/webfeatures_snapshots_20070627/
Griswold, D. (1999). A rising trade deficit signals good times for U.S. economy. Cato Institute. Retrieved March 15, 2010 from http://www.cato.org/pub_display.php?pub_id=4995
9 times greater" than the daily average imported in 1973 (www.ecologicinvestor.com). The importation of oil is the "largest single component" in the U.S. annual trade deficit; the U.S. Bureau of Economic Analysis, quoted by Ecologic Investor, points to the trade deficit for the first 8 months of 2008 -- $281.14 billion. That translates to $4.21 billion annually (estimated).
Saudi Arabia needless to say generates a majority of its revenue from the exporting of petroleum; and while the U.S. trade deficit grows based on oil imports, Saudi Arabia accumulates a surplus, based on oil exports. And meantime Saudi Arabia and fellow members of the Gulf Cooperation Council (GCC) have been attempting to "promote higher levels of trade between themselves by removing barriers to the free exchange of goods, services and capital," but their efforts are being challenged by the lack of a "common external tariff" (Nations Encyclopedia). That goes to indicate…
Bundy, William P. "Elements of Power." Foreign Affairs, 56.1 (1977): 1-26.
Ecologic Investor. "35th Anniversary of 1973 Oil Embargo." Retrieved May 3, 2009,
From http://www.ecologicinvestor.com (2008).
Hakes, Jay. "35 Years After the Arab Oil Embargo." Journal of Energy Security.
Carrabine, Lee and South 193)
As has been said before, the UK no longer makes anything, builds anything or sells anything tangible. The decline in industrial production has resulted in an overall decline in employment of industrial workers, who have not been aided by a failing system to transition to other work.
Some would say that the changes occurring in the UK, at this time with the increased importance of service industry work and intelligence rather than physical labor employment is a natural byproduct of globalization and an evolutionary product of the next phase as a "developed" nation.
They evidence this by observing that all developed nations are leaning in this direction. Yet, the transition has not and will not be easy, whether it is normal or not, a point which remains to be proven.
ith the education system in the UK in serious need of reform…