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The major impediment to economic growth at the present has been the uncertainty on the part of the key economic factors, namely businesspersons and consumers. The businessmen are hesitant to hire and invest whereas the consumers are hesitant to spend because of uncertainty about their prospects.
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Most of the Asian economies have weathered the recent economic crisis through either the strength of their domestic demand in countries like India, the Philippines, Indonesia, and Vietnam or through the use of healthy fiscal resources to support exports in countries like China. This good showing of economies in Asia is what holds promise for quickening the pace of the slow recovery in the developed nations.
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He answers this question by stating that it is difficult to state if unethical business practices are on the increase in the recent past, or not, though he adds that it appears like it. A contributing factor is an increase in public awareness regarding ethical conduct, with the media actively reporting corrupt cases, scandals, and corporate failures.
What Caused the Bubble and Bust in the US Mortgage Market?
The objective of this paper is to study the structure and mechanism of the mortgage market and in the light of these characteristics, analyze the factors that led to its ultimate demise. Identification of the problematic areas within this subject will facilitate the process of finding adequate solutions to those problems through policy changes and other measures that will restore the economy back to its original progressive stance.
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China is set to take over the American economy in the near future. This statement is being used by economy pundits these days with more frequency than ever before. Over the last decade, China has seen periods of tremendous growth and prosperity. Not only the Gross Domestic Product of the economy increased.
The proposals by Weiner are brilliant, but there may be some hindrance. The application of social network principles may not be effective in the end, considering the evils of social networks. Some social sites have experienced a gross violation of their regulations, like impersonation and false identity.
What is Economics?
For the individuals, it means giving one`s abilities and spending one`s income in such a way that gives us the most benefit and utility, and for the community as a whole it means using peoples skill, energy and abilities, the land, the building and other economic resources so as to obtain highest possible standards of living .
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They also led to the implementation of laws regarding bank-rating methodologies with an aim of improving security for financial capital markets. Saunders, Allen, and Saunders (2010) offer new approaches for value at risk and also provide some paradigms for managing credit risks; thus contributing to successful business performance in the financial markets.
According to this lending scheme the banks giving cheap loans to small and medium sized businesses will be given more incentives. But unfortunately this scheme has not really produced the results which were expected as lesser then expected loans were provided.
Macro & Micro economics Introduction China is one of the fastest growing economies in the world. Being the second-largest economy, China has shown tremendous growth in the last three decades. According to the estimate of 2012, China’s GDP is US $12.38 trillion (CIA, 2013).
If government interventions and directions are not properly designed and implemented they will not suit the businesses and brings wasteful outcomes. Nations with mixed economies would have gained better business growth and economic growth if they had considered implementing the free market economic system.
Nevertheless, the article notes that a better assistance program will replace the expiring federal unemployment insurance. The federal and state government finances the federal unemployment insurance where retrenched employees get cash assistance on a weekly basis until they find a new job or up to 26 weeks (Mulligan 1).
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When general prices of goods and services in a country rise, the value of money drops. This in return leads to inflation. Inflation then in the long run leads to the decrease of purchasing power of a currency. The occurrence of inflation has led to many central banks around the world to operate on a monetary policy regime of inflation targeting.
In order to increase economic growth in the country and increase the level of employment in the economy the government should implement expansionary measures thus the government should increases its expenditure and also reduce taxes. In addition, this action by the government increases the level disposable income thus increasing consumption.
And stressing upon this assumption coupled with the evidence of the behavior of the agents (the domain of social interaction), economics has been able to develop various stylized theoretical models for analyzing those interacting patterns and generating optimal solutions for the attainment of the general welfare of the people.
You own a local sub shop in a college town. You primarily serve two groups of people: local residents (both students and other local residents) and visitors to your town. Devise a price discrimination strategy that will increase your revenues compared to a single-pricing strategy.
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Globalization is a significant but not a new economic phenomenon. World Bank throws out that there were three main globalization waves since 1870 where the global economy, capital flow and migration have been increasing dramatically.
How many students will still have a demand for it and how many students will not join? We also measured the elasticity of demand. We also wanted to find out how the trends were among females and males, were they different or were they pretty much the same or they both were indifferent towards such changes?
Cole attempts to contradict what he terms the five ‘current myths that distort public debate and government policy relating to immigrants’. While his points are generally popular, they still represent an entirely biased viewpoint. The immigration issue is an emotional one for many and is usually one of the more important issues for voters.
After all, no economy is safe from depression and market forces continue to follow cyclical trends. The discussion below will tackle some of the important aspects related to depression. These subjects affect all players in the economy. In addition, some concepts will be explored and discussed in relation to depression.
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Now, views are being raised about the possibility of reintroducing the Gold Standard as the common currency for transaction, with economic experts favoring as well as opposing it. With the earlier practiced Gold Standard exhibiting both benefits as well as negative results, the current plan could also have similar advantages and disadvantages.
Particularly, the developing countries become a victim of such situation. Thailand, Indonesia and other countries of East Asia during late 1990s are particular examples. The situation is clearly described by Professor Joseph Stiglitz, a chief economist and vice president of World Bank during 1997 to 2000.
The company has been propelled to greater heights by its good managing performances, which have consequently enabled it to develop into what it is today. In addition, the British Airlines Company is one of the best companies in the aviation industry. It is now a dominant player in the aviation industry, having managed to withstand competition from other airlines, especially low-cost airlines.
Countries that have a high rate of unemployment are said to underutilize their resources. As the world’s population grows, job opportunities continue to shrink. This situation is getting worse by the day, as countries that have demonstrated their ability to eradicate unemployment has fallen into it again. For instance, in 2011, the USA plunged into its worst unemployment rate in decades, 7%.
The government exercises its borrowing authority when there is a shortfall between its expenditure. This occurs after the Canadian Parliament authorizes the government to do so through main estimates and in interim supply. The government borrows majorly through issuing treasury bills and marketable bonds in domestic and foreign markets.
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Algeria is a North African country that borders the Mediterranean Sea, Morocco, and Tunisia. Most of the country's land is plateau and desert with arid to semiarid climatic conditions. The Algerian economy is highly dependent on oil and natural gas export in addition to Agriculture. About 45% of Algerians live in urban areas.
In our everyday lives we are faced with various choices we have to make and in most cases, we have to forego one option in favour of the other. This is what economics is all about; making choices among alternatives bearing in mind the scarcity of resources. In other words, economics is about the efficient allocation of scarce resources (Wessels, 2006).
An oligopoly is best defined as a market structure in which there are is small volume of sellers that dominate the industry (Hirschey 2009; Hirschey and Pappas 1995). The sellers involved in the oligopolistic market structure are usually quite large, therefore their actions and strategic intentions strongly impact the market.
The second determinant is time which affects the price elasticity of demand in such a way that when the consumers are faced with a longer time to adjust to the product prices, then the more elastic the demand of the product becomes. Total revenue also affects the price elasticity of demand in a way that when the price decreases, the quantity demanded will increase thus increasing the total revenue.
Macro & Micro economics Contents Contents 2 Introduction 3 Causes and Mechanisms of the collapse of the world trade 3 Current Trade Policies in Response to the Global Recessions 7 Policy responses on negative impact on the trade balance were implemented in the UK 8 Effectiveness of the EU trade policies in the long run 9 Conclusion 11 References 12 Introduction The Great Depression was one of the most severe economic downturn that the world faced during the twentieth century in the pre-World War era.
The equation, which determines this relationship, is presented as: E(Ri) = RF + ?i [E(RM) - RF] (Giovanis, 2010) The CAPM model is based on various assumptions, which in turn have implications on the application of the model in the actual scenarios. By assuming that investors in general tend to avoid risk and prefer such investment opportunities only by considering the returns associated with them together with the variations in the returns related to assets.
Greenhouse gas emissions and price elasticity of transport fuel demand in Belgium. In the article, “Greenhouse gas emissions and price elasticities of transport fuel demand in Belgium” the price elasticity of demand for fuel plays a significant role in analyzing the reduction of greenhouse gas emission from Belgium transport sector through intervention by the Belgian government.
A deadweight loss refers to specific forms of benefits that consumers or producers lose due to inefficiency within market operations. In most cases, such inefficiencies are caused by monopoly pricing or taxation (Brent 89). In other words, a deadweight loss can be termed as the total surplus resulting from market distortion especially from the side of government regulations on prices and in most cases the levied taxes.
The preamble of GATT describes the motives and purpose of forming it. Full employment, increased standards of living through steady growth of income and making full use of world resources to expand the production base and exchange of goods were the motives behind the formation of the GATT (World Trade Organization).
The exchange rate is one of the important measures of economic development of a country. Exchange rate of a country is governed by several factors. Increase in value of local currency makes the country’s exports expensive in the global markets which will affect exports. Imports become cheaper under expensive local currency.
The model lays emphasis on the manner in which exposure to international trade is likely to induce the entrance of more productive firms into the export market. At the same time, the least productive firms will be forced out and only produce for the domestic market, this in turn will also lead to the exit of the least productive firms.
This paper aims to highlight three major differences of Islamic banking with regular banking system. Differences between Islamic Banking and Regular Banking With and Without Interest on Loans The banking institutions in any economy play a crucial role in the progress of the economy.
Macro environment
Macro environment factors are also external to the firm and cannot be controlled. These factors hardly have any effect the marketing capability but affect the decisions of marketing within the company. Macro environmental factors may include the following:
Both these definitions illustrate that economics is a science applied in our everyday life, rather than it is one of the abstract studies. Everyday people have needs and wants they seek to satisfy. Even though these needs and wants are changing, and depend on many various factors, they are continuous.
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Critically, health policy is vital in facilitating infrastructural set up to enhance the provision of timely health treatment to victims of lifestyle diseases. It provides requisite capacity through legislation on various economic measures, for example, initiation of price controls to balance supply and consumption.
The two countries participation in trade blocks in the region is beneficial, both politically and economically. Indeed for the two countries, closer ties in Free Trade Area of the Americas (FTAA) have served the purpose.
This essay highlights macroeconomic objectives of the June 2010 Budget and focuses on the analysis of macroeconomic problems, that were identified in the Budget report. According to the essay, the present UK Government appears very genuinely committed and focused upon controlling and reducing the budget deficit in the UK over a five year period
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This paper examines the strategies used by China to enter the various African extraction markets. It goes further to look at the China-Africa Development Fund . It then looks at the various expansion into the extractive industry of the continent by examining deal flows and profitability of these Sino-African mining and drilling ventures.
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In general, if the government removes or reduces tax deduction on mortgage interest, the demand for houses shall decline since its marginal cost increases. Government increases income tax, leaving people with less disposable income, hence low purchasing power again reducing purchasing power for houses.
The major turn around in the value of oil was seen after the 1973 oil embargo of the oil producing countries from around the world, which shook the entire base of world economics. It was after this the major players in the world economics understood that oil it just not just a black liquid it is the black gold and the need for the survival of every country in the world.
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Recently there is a co-authored by Senator Schumer (D-NY) and Mike Lee (R-UT), US VISA offering a three year residential visa to foreigners who will spend at least $500,000 on a residential house, be it a single family house, a townhouse or condominium. The breakdowns were as follows, the $250,000 must be spent on a residential house.
When president Obama took charge of the presidential office, US had already lost over 8.8 million jobs and the Obama’s stimulus program which was made to create 4 million jobs was not enough to counter the entire problem. The problem is going to further elevate as the job created through the stimulus package were coming to an end as the projects started with the stimulus money were coming to an end.
According to the study conducted all the students attending college do not have to earn for their expenses. Sometimes students are dependent on their parents who take the responsibility of paying for all of their son’s or daughter’s expenses. Attending college and pursuing a degree course also requires a student to study harder and appear for examinations.
If trade was absent it would have been difficult for a country to meet the expense of producing a particular good. The result would have been higher prices for the consumers. Decision-makers will choose the most efficient and economical way to produce a particular product. Thus it can be assumed that the country will decide upon the amount of trade that will benefit the country as a whole.
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Generally speaking, the recession was a big blow to the global economy. Very many countries were affected Northeast England and Scotland were not left behind. They are trying to recover from the problem with many of them preferring direct investments in the country and building on education and improving skills.