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The banking crisis of 2007-2008 brought about the worst global recession since World War II. Without the timely interventions of the central banks of different countries, the crisis would no doubt have been worst than it was. We cannot deny the fact that the infusion of money into the ailing economy by different governments helped stave off further economic problems from cropping up.
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The research owing to the complex nature of the subject will mainly be done by use of secondary reliable and credible data sources. In particular, journals, books, atlases, government records, and official websites will be used. Primary data will also be collected from different areas in North Africa.
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The effects of the Industrial Revolution to modern-day production are both positive and negative, as it has civilized yet dehumanized societies. It has civilized societies in the sense that societies are industrialized with people’s standard of living improved and with man’s quest for development further intensified. However, it has dehumanized societies in the sense that man is alienated from his/her produce.
If the industry experiences a decrease in its demand, then its price reduces & output is also reduced to a certain level. The level of profitability shrinks in the industry and causes unprofitable firms to leave the industry. The individual demand of the firm's increases which restores the price and output to come to their original level.
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The intensity of the effect is especially felt in the developing economies which have but a small stock of resources with which to revive their frail economic system. Potency of the crisis seems to be cumbersome particularly because of the financial system of an economy being the more affected segment of the economy.
This research will begin with the statement that thousands of corporations are present in the global economic scenario with millions of employees. Many corporations are economically stronger than a bunch of countries put together. In the new global scenario devices of communication have made the corporate structure even more complex and elaborate.
The theory by Veblen was in no manner an incorrect theory. However, if this is thought about more practically and considering the level of development that the world has faced since his time, this theory cannot be applicable and as Heilbroner suggested, the theory is invalid in the current time (Cooper, Garcia-Penalosa, and Funk 2001).
The paper suggests that the Australian Automotive Industry although has a small domestic market but its market value has a major proportion in the regional markets. The industry remains one of the major contributors to the Australian economy and employs a large workforce throughout the supply chain.
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The conclusion from this study states that the corporations of the new economy should be all set to initiate advantages of the changing terms of trade. The industry of today is basically based upon the knowledge-based processes and the factors of globalization and allied processes have rendered the workforce more informed and talented.
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The study shall produce evidence to either confirm, disprove, or qualify the theory that micro-credit can empower women and significantly improve their family’s economic welfare. The discussion shall also explore links with such issues as the exploitation of women, patriarchal religions, adherence to Islamic law, secular feminism, and the relationship between capitalism and Islamic law.
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This paper will begin with the statement that the “credit crunch”, although preparing for a long time, actually became evident in mid-2007 and all the way into 2008. Globally, the securities markets have gone down, and some of the biggest financial institutions have been bent or bought, and some of the wealthiest governments have had to prepare strategies to rescue their financial systems.
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The reduction in the demand is not only for the high-value items but there is a gradual reduction in the consumer demand for some retail items also. Large UK chains such as M&S, ASDA etc have reported losses because of the low demand and difficult economic conditions. Various economic indicators reflect that the economic situation may not be favorable.
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The service sector has increased multifold to include services like banking, janitorial, education, entertainment, logistics, and healthcare among others. In developed countries, the service sector is the major employer so the impact of globalization and information technologies on the economy cannot be measured without considering the service sector.
The products and services that people enjoy everyday are produced in an economy that consists of thousands of firms. Some companies are big and employ thousands of workers while others are small, owned by a single person or family employing few workers.
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International law has had to evolve tremendously in an era of globalization. Accordingly, globalization is an international phenomenon which has led to the proliferation of international legal standards throughout all four corners of the globe. Thus, international legal precedent resonates from London to Lagos and from New York to New Delhi.
The last century was the century of consumerism. The forces of consumerism not only affected the economic landscape of the countries but their social and political environment also giving rise to the speculation that the different societies are mainly driven by the different forces with the dominant impact of consumers.
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The World Trade Organization was incepted as a consequence of the reforms brought in by the Uruguay Round of GATT which lasted for eight years, from 1986-1994. WTO replaced the GATT as an international body on January 15, 1995. Since, the end of the Second World War, GATT was the main international organization.
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The various economies have developed their competitive advantage purely due to their geographical locations. The production of typical goods and services, therefore, carried the relative competitive advantage over the competitors purely because of the advantages enjoyed owing to the location of the country.
In general, Chinese economic growth has lessons for many other countries. The capital investment is crucial and is necessary but not sufficient for growth. The market-oriented reforms are crucial to harnessing these investments. Together they can unleash productivity spurt, which would be sustainable.
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As the study highlights, there is a need to think outside the box and visualize globalization as a phenomenon that encompasses not only economic issues but also social, political and technological matters. It is also important to think of the anti-globalization activists who view it as a cause of concern to various economies.
Activities of the company include gas exploration, processing, transport, and marketing. Kalotay (2008) studied the implications of the recent rise of Russian transnational corporations including Gazprom to global prominence for the paradigms of international investment. Gazprom has leapfrogged to global status and is a net capital exporter.
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Although Blanchard talked of a political business cycle, Mankiw clarifies that although the term "business cycle" suggests that economic fluctuations are predictable, they are actually not. Over a business cycle, the real wage is expected to be acyclical in the Classical model, countercyclical in the Keynesian model, and procyclical in the New Keynesian model.
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According to the text, "Homo Economicus" is a Latin term that was introduced in 1906 and earlier “Homo economicus”, was called “Economic man”. Reportedly, it is a phrase used for a rough calculation of Homo sapiens which performs to acquire the top likely given available data about opportunities.
Both the countries have kept evolving through crests and troughs throughout centuries and shown their resilience and power to emerge as strong as ever. When we talk about the recent past and present we again find that China and Japan have ruled over the world economy for significant periods, giving a very tough time to other superpowers the USA and the rest.
In this essay, the differences between moral hazard and adverse section and their effects on insurance markets are discussed. The discussion also shows that there can be different solutions to moral hazard depending on different levels of care taken and different levels of cover. These include partial coverage and observation by insurers.
There are prominent barriers to entry into the market, due to the high degree of influence that each seller portrays. These constraints are erected artificially to enable the players to reap abnormal profits. These abnormal profits help the sellers to further decide upon the strategies to override their rivals.
Unbalanced growth is arguably the better one out of the two in case of a scarcely populated economy, since such a region can easily adopt itself to technological improvements. But one point that must be emphasised upon is that, it was out of criticisms for balanced growth that led to the birth of unbalanced growth theories.
Neoclassical economists often think about the classical theorists to be the initiators of neoclassical general competitive evaluation. Competition according to Adam Smith implies free competition. That is to say, everybody should take action according to his or her self-interests. There should be no obstacles to economic actions.
Economists and experts regard the United Kingdom as the sixth-largest economy of the world based on market exchange rates and nominal GDP, seventh-largest when purchasing Power Party (PPP) are taken into account. In addition, it is also the third-largest economy according to the market exchange rates in Europe after Germany and France. History remembers the United Kingdom as the first industrialized country in the world.
It is difficult to achieve competitive advantage in the current world because of heavy competition for making more profit and also to stay in the market. The current market is filled with hundreds of products of the same calibre. For example, the current mobile phone market is filled with lot of similar products from different brands.
Along with Keynesian economics, Neoclassical economics is one of the most vital forms of economics used by economists of the world today. Furthermore, neoclassical economics is widely used in the study of microeconomics. Lately, Neoclassical economics have been subject to a variety of criticisms, especially from the schools of Keynesian economics and the Austrian school.
Government agencies or the monetary authorities in the country are entrusted with an express commission of ensuring that monetary stability in the money markets and the economy is sustained. In order for those charged with the task to maintain this equilibrium hence avoid inflationary and deflationary consequences.
The realization that oil has generated international conflict caused damage to the environment and that its global reserves are fast depleting has caused nations to fast-track the development of renewable energy measures that promote the expansion of sustainable energy sources that are cleaner and as efficient as well.
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Financial sector stability is essential to ensure development of a nation. It assures a high leverage in its domestic as well as international transactions. On the other hand, equal attention must be bestowed upon the education sector of a nation as well for a progress in the quality of human resource within the nation.
The recent financial crash had a ruinous effect on the economic positions of a large number of developing nations around the world. Its sudden occurrence has forced the administrations of many nations globally, to postpone their efforts to accomplish a number of other projects waiting in line, and focus their full attention to this single problem. The problem needs to be attended promptly so as to avoid any difficulty arising.
Most of the macroeconomists agree that the inflation level and employment level are the prime indicators of the performance of an economy. These variables provide a clear picture of the implementation of policies, and whether they are hitting the bull’s eye or not? Any economy would want inflation to be as low as possible and would like to achieve a high rate of employment.
The entire process of evaluating the present state of the economy and then deciding upon the suitable interest rate targets and adequate money supply is undertaken by the FOMC. In essence, it is the part of the Fed that administers the effective money supply for the nation through open market operations and interest rate targeting.
In the process, it had also attained the status of an economic and military superpower. But with the onset of globalization, countries with an abundance of cheap labor such as India and China are primed to assume the leadership position in another 10-15 years. India has a huge pool of skilled workers who have the added advantage of proficiency in the English language.
Western nations opted to cut sharply interest rates (Hammes & Douglas, p. 501-509). They viewed inflation only as a secondary concern. To some extent, this measure resulted in stagflation which lengthened and deepened the unfavorable effects of the crisis. To date, suspicion hangs in the air in the public domain.
While economists may argue that local and national governments should not try what can be performed by individuals, socialists answer back by stating that labour that targets service is a better one that encourages personal profit. Private and market-driven companies have always been viewed as better performers in terms of production.
Most of these poor countries are usually heavily burdened by debts. According to the World Bank, 40 countries are identified to be Heavily Indebted Poor Countries (HIPC). Most of these HIPC are in sub-Saharan Africa (The World Bank, 2009).Several suggestions have been made on how poor countries of the world could be assisted to overcome their challenges.
Since to understand the notion of a Pigouvian tax it is imperative to perceive the notion of economic externalities, the essay shall start by introducing the concept of an economic externality and what problems it leads to. It shall thereon move on to discuss what exactly is meant by a Pigouvian tax and how that can solve the urgent problems.
A growing share of foreign trade in Polish GDP (in 2007 a percentage share of exports in GDP was as high as 41%, and for imports, it exceeded 43%) reflects the progressing process of opening of the Polish economy and the resulting increased interrelation with the processes which take place in the global economy.
This research will begin with the statement that Mortgage-Backed Securities (MBS) are debt obligations purchased from banks, mortgage companies, and other financial institutions. These obligations are assembled into pools by either a governmental, quasi-governmental or private entity. The institutions then sell the securities to investors.
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Recession leads to major changes in society. It brings tremendous movement in the structure of companies, in the management strategies implemented by the companies and behaviors of the people toward spending. The sudden rise in unemployment, issues salaries and other employment benefits coupled with the decline of interest affects consumer behavior
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Last and not least, the government is responsible in promoting stability. The federal government is the one responsible for coming up with a framework that can be used to maintain macroeconomic stability. The U.S. Federal Reserve ensures that there is the full employment of resources and stability in prices
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According to the paper, in the 20th century, focused on the entrepreneur's drive for innovation and improvement and how he creates upheaval and change. According to Schumpeter, entrepreneurship is a force of "creative destruction." The entrepreneur tries out "new combinations" and renders old industries obsolete.
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As the paper highlights the global banking industry has undergone a series of transformational phases which has redefined the business processes of the banking industry. The technological and innovative approaches have helped the banking industry to serve beyond the basic banking services with many other financial services.
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As the paper outlines, heroic volunteerism was also seen in the efforts of the conductors who worked in the Underground Railroad in the 19th century. Then you will see how lots of money can help out a cause such as Oprah Winfrey’s work with girls in South Africa, though it may not have been necessary to spend so much money to achieve success.
This, on one hand, can be achieved through the provision of education particularly on entrepreneurship and conducting research and development, particularly in market surveys to remain competitive and relevant (Rodrigues, 2003). In my view, these two aspects of the strategy will be necessary for revitalizing the economy currently on its knees.