Download file to see previous pages...
The reason for choosing the US is the ready availability of data for this study, the reliability of the data collected. The sample size of the data collected was sufficient and realistic, hence, suitable for testing the hypotheses of this study. The report will be presented in an analytical and descriptive structure containing the summaries and analysis of the economic variables. The report thus gives recommendation of actions because of economic management policies that had projected economic growth of the debts of US to approximately US$ 430 Billion in the subsequent five years (Cohen 2007, p76). The ultimate purpose of the economy is to do cost and benefit analysis of the US, showing a roadmap to cost balancing between the exports and the imports in alignment with the US economic policies.
There are four study questions, which this study intends to investigate. Using the economic variables, this study investigates whether there is any effect of consumer product demands on the consumer prices or not. It is hypothesized that there is a positive relationship between the two variables. Secondly, it investigates the trend of the consumer demands and consumer price index from the year 1994 to 2013. The hypothesis is that consumer demand decreases with the increase the rate of unemployment in the US. The third research question is to investigate the relationship that exists between the import and export, the hypothesis is that the more the export, the more the import volumes. The fourth study question is to investigate the relationship that exist between the unemployment level and the GDP, as well as the relationship between unemployment and the rate of economic inflation in the US. The hypothesis is that the level of unemployment negatively affects the percentage of GDP in the US economy.
One of the economic reports and national survey of the US economy shows the objectives of the government to
...Download file to see next pagesRead More
This would involve critically analysing the business strategies utilised by competitor companies, and product quality, within these regions. This would enable the company to make informed decisions and implement strategies aimed at handling the competition effectively.
This implies that service sector is not contributing proportionate to its share in the international trade in GDP of each country. Large amount of services are consumed domestically and not traded internationally. (International Trade…) Same is true for U.S.
The effects of uncertainty and timing enable businesses to make various economic choices that concern alternate course of action. International finance refers to the examination of institutions, their practices, and analysis of various cash flows of different countries.
This is possible through conducting a country risk analysis, where the political and economical risks of the country would be evaluated in details in order to take decisions for the same. The country chosen is South Africa and gold would be best option when it comes to choosing mining mineral in South Africa.
Imports become cheaper under expensive local currency. The combined effect will affect balance of payments position negatively. The increase in demand for external currencies due to increase in imports coupled with decrease in export earnings leads to current account deficit.
International trade is, therefore, an international exchange of a country’s product or services with another country. International trade contributes to a large portion of the Gross Domestic Product in many countries all over the world. In recent times, international trade has gained large importance in terms of social, political and economic aspects.
In free trade, there is no tariff, factor movement and policy harmonization. Without any import duty or any other tax, trading is undertaken. In case of Economic union, there is a presence of everything:
While absolute advantage gives a nation an almost monopoly power over certain goods and services, comparative advantage ensures quality goods readily affordable at low price. According to Ricardo, economic
25 Pages(6250 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Economics of International Finance(choosing a country) for FREE!