Nobody downloaded yet

Growth and Development of Global Economy - Economics - Essay Example

Comments (0) Cite this document
Summary
The global trade arena with regards to cotton import/export in contemporary times involves players from the diametrically opposite nations of the world in terms of development, i.e. the USA and the West African nations along with other nations of the world such as China. The…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.5% of users find it useful
Growth and Development of Global Economy - Economics
Read TextPreview

Extract of sample "Growth and Development of Global Economy - Economics"

Download file to see previous pages On the contrary, they are stuck in the vicious cycle due to the US subsidies which crowds the efficient producer’s market, since without subsidies the US cotton production would not be economical. The US government harms the poorer nations through subsidizing their own domestic cotton production more than it helps them through foreign aid, as proved by statistical data in The Oxfam Briefing Paper (Oxfam International, 2004, pages 1-40). The subsidies does not only affect the Balance of Payments, but has a trigger down effect, it lowers the income of farmers, thus reducing the income available for expenditure, further strengthening the economic crisis by lowering aggregate demand, the multiplier sets into a negative action, and poverty sets in, thus making West African nations vulnerable to US cotton subsidies, furthermore in accordance with Anderson and Valenzuela (Anderson and Valenzuela, 2006, page 19) the usage of Genetically Modified Organism for the cotton production in developing nations would have a greater positive effect than eliminating subsidies completely. However, since it is a time-consuming process to convert every small farm to GM technology, hence from the West African nation’s perspective, the USA should eliminate its cotton subsidies in order to aid the developing nations in coming out of the economic crisis and poverty situation.
The US political policies focus on hardcore protectionism with regards to the cotton market; the subsidies are unfair and distort the free trade system. According to the multiplier effect, protectionism in the cotton industry also leads to indirect help of US domestic textile and apparels industry, as presented in The Oxfam Briefing Paper. However, these subsidies focus on helping only the larger farms, despite publicizing otherwise, since 67% of the US farms are ineligible to attain the subsidy benefits, and it is generally the top 10% ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Growth and Development of Global Economy - Economics Essay”, n.d.)
Growth and Development of Global Economy - Economics Essay. Retrieved from https://studentshare.org/miscellaneous/1570609-growth-and-development-of-global-economy-economics
(Growth and Development of Global Economy - Economics Essay)
Growth and Development of Global Economy - Economics Essay. https://studentshare.org/miscellaneous/1570609-growth-and-development-of-global-economy-economics.
“Growth and Development of Global Economy - Economics Essay”, n.d. https://studentshare.org/miscellaneous/1570609-growth-and-development-of-global-economy-economics.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Growth and Development of Global Economy - Economics

Global economy

..., to encourage economic growth and slow down the economic downturn. Controversial and radical, the decision to apply to quantitative easing became one of the most actively discussed issues in economics. That quantitative easing has far-reaching implications for the domestic and global economy cannot be denied, but its role in the development and expansion of the positive economic growth is yet to be defined. At the end of 2010, the Central Bank of America announced its decision to pump up additional $600bn into the domestic economy (Elliott & Inman 2010). The decision to...
10 Pages(2500 words)Essay

Growth in the Economy

...?Growth in the Economy Table of Contents Fiscal and Monetary Policies to Improve the GDP Growth and the Employment Rate 3 Difference in the Impact ofPolicies on a Closed Economy versus an Open Economy 7 Concept of Multiplier and its Impact 8 Impact of Growing Federal Budget Deficit on the Economic Growth 9 References 10 Fiscal and Monetary Policies to Improve the GDP Growth and the Employment Rate The government and the Fed’s main goal should be to increase the level of employment in the country and provide a stable economic growth while maintaining low inflation rate. In...
8 Pages(2000 words)Coursework

Global Economics

...to be disciplined by the establishment of a currency board and this requires political will from the establishment. At least initially, Argentina bureaucrats played by the rules of the game. But they were perhaps emboldened and the discipline was lost in the late 90's when Argentina picked where it had left from and proceeded to ruin its economy by running persistent deficits. Argentina Convertibility Plan: Mission Impossible. The convertibility plan got its name from the currency board arrangement that was at the centre of economic program in Argentina. At first, it experienced a measure of success and was credited with the growth and stability experienced there in the first half on...
3 Pages(750 words)Essay

Global Economics

...developing countries to the universal path of free trade and private property as the motivator of economic life. (Shahin & Dibeh, p. 111) The end result is that the benefits of Western capitalism were transmitted with the opening of these economies. As we have learned, globalization and all the terms that come with it encouraged the integration of the global market, the increase in capital dynamism as well as the growth in production output. Indeed, there is a wealth of literature criticizing the IMF and its failures but we cannot really downplay its importance in the world economic stage. I would like to endorse a...
2 Pages(500 words)Essay

(Economics) DEVELOPMENT ECONOMICS

...positive interventions such as the Bangladesh’s food-for schooling programme and Mexicos’ Progresa. The only way to end child labour and build long term human capital is to give incentive to parents to send their children to school. Of course, as economies move from developing to developed, the instances of child labour automatically reduce as seen in the cases of developed nations. Bibliography Basu, K., “Child Labor: Cause, Consequence, and Cure, with Remarks on International Labor Standards”, Journal of Economic Literature, vol. 37, no. 3, September 1999, pp. 1083-1119. Basu, K., Pham Hoang Van, “The Economics of Child Labor”, The...
6 Pages(1500 words)Essay

Global Economy

..., The Great Cras , 1929 explores which factors lead to the Great Depression in 1929 and seeks to provide a comprehensive analysis of the precursors to the worst economic crisis in American history. The United States, the UK and much of the Western world remain in one of the worst financial crises since the Great Crash of 1929. In the wake of the Cold War, the United States emerged as the dominant global economic and military power and ushered in a new world order of capitalist-inspired economic growth and prosperity. Virtually uncontested at the helm of the world’s strongest economy, the United States has recently witnessed ominous...
10 Pages(2500 words)Essay

Global Economics

...Global Economics Inflation Inflation is the rise in the general price levels of commodities in an economy. Inflation leads to a decline in purchasing power of a nation due to reduction in value for money. There are various causes of inflation which depend on demand and supply factors. Supply factors of inflation include those causes of inflation that emanate from the supply side of the economy. Cost push inflation emanates from the supply factors. Cost push inflation arises when firms react to increasing production costs by increasing the prices with an aim of sustaining their profit margins. There are various reasons which may lead to increase in costs. The first...
4 Pages(1000 words)Essay

Global economy

...and regulation among others. Secondly, more information on the advantages and disadvantages of the race to the bottom needs to be incorporated. Thirdly, although the history of the concept has been given, this discussion is brief. More information needs to be added to make the reader fully understand the history of race to the bottom and how several scholars and researchers have defined it. Finally, the article needs to discuss deeply how international bodies such IMF and WTO have contributed and/or hindered the race to the bottom. The concepts covered in class and those relating to globalization have been partially incorporated in the article. For example, some of the key concepts covered include: free trade, working...
1 Pages(250 words)Assignment

Global Economy

...Perspectives on the World Economy. Cambridge: Cambridge University Press. Song, L., Garnaut, R. and Fang, C., 2014. Deepening Reform for China’s Long-term Growth and Development. Acton: Australian National University. The Economist, 2013. China’s outward investment: The second wave. [Online] Retrieved from: [Accessed 15 January 2015]. World Bank, 2012. Rise of non-tariff protectionism amid global uncertainty. [Online] Retrieved from: growth/rise-non-tariff-protectionism-amid-global-uncertainty>...
8 Pages(2000 words)Essay

Global Economy

...that the needs of both the present and future generations will be met. Globalisation is definitely changing the global environment. Some believe that globalisation has a favourable effect on sustainable development, as a phenomenon of growth and higher living standards. It cultivates economic development and supportive organisations, both needed in the long term to deal with the global environment. Others view globalisation’s effect as detrimental, as a phenomenon reducing the world into a swamp of environmental deterioration. It is speeding up the disastrous process of overexploitation of natural resources without regard for social...
12 Pages(3000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Growth and Development of Global Economy - Economics for FREE!

Contact Us