...Economy Systems Handling A Crisis When disaster strikes, it leaves many citizens in disarray. Man-made disasters can sometimes be prevented beforehand, but natural disasters happen and it is out of our control. The most important thing we can do in the event of a disaster is to be prepared to respond. It definitely helps to have an economic system that is able to be the most effective when the effects of a disaster becomes a problem. These effects such as unsanitary resources, homelessness, job loss, crime, and the change in supply and demand for many essential needs become impactful but the right economy system can get things going sometimes even better than how they were before. The best system for handling a crisis such as a natural disaster is that of a mixed-economy. This allows for proper government intervention to help the affected people, and the economic freedom of businesses to keep the economy moving in a positive direction. There are three major economic systems in today’s world. The difference between each lies in the relationship of the amount of control the government has and how much freedom the individuals have on the factors of production. Free-market (or capitalist) economy allows private ownership and individuals choice over what and what not to produce and sell with little Government intervention. A planned (or command) economy in the opposite, in which the government controls most factors of production, make production plans beforehand and...
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...between a command socialist economic system and a capitalism economic system. A command socialist country is where the government controls the goods and services that is being produced and bought, whereas a capitalist is the people control what is being bought and produced. There are advantages and disadvantages for both of these types of governments. In command economies the government controls pretty much everything. For example, Chinas economy is controlled completely by their government. Student’s grades and test scores result in what they are going to do the rest of their life for work. One advantage to this is is insures that everyone will have a job. China has the fastest growing economy in the world. China has the largest manufacturing economy in the world because the government regulates the pay for people which...
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...Macro Economy Systems Macroeconomics AIU Online Abstract In the following paper, I will be discussing the open and closed system of the two circular diagram presented in my textbook. I will explain what a closed system and open system is and provide examples for the both. Next, I will discuss the inner and outer flows of both systems. Then I will define the leakage and injections in an open system. Lastly, I will provide personal examples of the leakage and injection and describe and explain them both. Following the end of this paper, the reader should have a better understanding of and open and closed flows in the macro-economy. Macro Economy Systems It is very imperative that one understands the flows in the macro-economy. There are two flows: an open and a closed flow. In this paper I will be discussing and explain the two types of flows and how they affect the business world. By having this valuable information, consumers will now be aware of how their money is affecting the economic system in a certain way. Closed System A closed system is an economic system model that counts only domestic exchanges but not the foreign agents . This means that in a closed system, the money is built up inside a circular flow. In a closed system, there aren’t any leaks because there aren’t any foreign agents, governments, investments, or system of savings. Also there are not taxes, savings, or extra expenses that aren’t generated back into the economy. An example of a closed...
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...Caribbean History and Culture March 17, 2013 Tourism: Impacts on the Economy and Eco-System How is Caribbean tourism negative for their economy? How does tourism negatively impact ecology? Those are the questions I ask myself, is tourism tearing apart the Caribbean? In some ways there are both positive and negative impacts of tourism on the economy and ecology of the Caribbean. The reason this topic is worth being thoroughly exploring is because of all the lives it impacts on an everyday basis from work to water supply. Through researching I have found that there are a few alliances that their only purpose is to benefit and help keep the eco-system the way it is supposed to be. Now not all resorts are watched under these alliances but I am going to take a closer look at these Alliances and see exactly what they stand for and how they could make positive changes when it comes to helping save the eco-system. In the end I’m going to find statistics on what good and bad is going on, what people are doing to try to improve any of the bad and see just how much tourism affects the lives of the people and lands of the Caribbean. My plan is to look inside of it all, shift out the myths and find the truth on both the Economy and Ecology issues. The purpose of my research project is to look into the different effects tourism has on both the economy and ecology. I’m going to be digging deep into what is really happening to the oceans (Hill, 2013) these beautiful oceans that...
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...An economy or economic system consists of the production, distribution or trade, and consumption of limited goods and services by different agents in a given geographical location. The economic agents can be individuals, businesses, organizations, or governments. Transactions occur when two parties agree to the value or price of the transacted good or service, commonly expressed in a certain currency. In the past, economic activity was theorized to be bounded by natural resources, labor, and capital. This view ignores the value of technology (automation, accelerator of process, reduction of cost functions), and innovation (new products, services, processes, new markets, expands markets, diversification of markets, niche markets, increases revenue functions), especially that which produces intellectual property. A given economy is the result of a set of processes that involves its culture, values, education, technological evolution, history, social organization, political structure and legal systems, as well as its geography, natural resource endowment, and ecology, as main factors. These factors give context, content, and set the conditions and parameters in which an economy functions. The largest national economy in the Americas is the United States,[1] Germany in Europe,[2] Nigeria in Africa[3] and China in Asia.[4] A market-based economy is where goods and services are produced without obstruction or interference, and exchanged according to demand and supply between participants...
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...Consuelo Winn Mr. Sean Wilcox ENL 201 Writing June 16, 2013 The Impact of Economic Improvement in Ecuador In the last 34 years, since Ecuador returned to democracy and changed to the US Dollar for currency in 2000, life and the economy has drastically improved. Although Ecuador is still considered to be a poor country compared to “Westernized” countries its economy is ranked 8th in Latin America; includes Central and South America. This economy has grown due to two main changes: Governmental policy changes and focusing on increasing production of exports. However, with economic growth also increased environmental problems. One reason why the economy has improved is government policy changes. In 1979 Ecuador returned to democracy after nearly a decade of civilian and military dictatorships. Returning to democracy has given stability to a corrupt government. In 2000, Ecuador adopted the U.S. dollar as its national currency. Dollarization further stabilized the government as well as the economy since the U.S. dollar is seen as a stronger, more reliable currency throughout the world. Returning to democracy and changing to the U.S. dollar made Ecuador more appealing to tourists and investors; both of which added a much needed boost to the economy. One of the best examples of this would be the city of Cuenca. Tourism and investors from abroad has made Cuenca the number one retirement city in the world and has helped the country's economic development in the last decade. Economic...
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...1. Introduction. This project is about the comparison between 2 country that is USA and China in terms of capitalism and democracy their economic growth and their personal growth and growth due to internet 2. Does the growth of the economies of the two nations have any relationship to capitalism and democracy? 3.1 Comparing the U.S. Federal Republic with the Republic of China All the countries in the world don’t have same form of government some work on the belief of their leader and some work on the basis of written constitution For Instance if you compare USA with China both have different system Democratic system of United state of America is strong. Whereas China is Communist which falls under the classification of People Republic United state has a government national organization stand upon 2 thing 1) Separation of Power 2) Federal system US government had a fear that if excess deliberation of power is given in that hand of commen man or in the hand of company it would not be safe for the freedom of the nation, so they revised the organization into 3 branch 1) Legislative 2) Executive 3) Judicial All these power are vested by US system named a Constitution which has 1) President 2) Federal Court 3) Supreme Court which is part of federal court All the power and duties of these 3 branches are clearly explained in act of Congress which also includes formation of department and courts inferior to the Supreme Court All...
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...Vietnam’s Economic Growth in Renovation Period With the pressure of the economy sinking into economic crisis, the Party and the Government of Vietnam decided to intiate an ecomomic renovation policy in 1986. After over 15 years of reforming economy, Vietnam has gained progresses and important achievements widely recognised inside and outside the country. Overall, Vietnam has shifted from a centralized bureaucracy plan subsidized economy to a market-oriented one, from an economy massively developing state sector and groups to a diverse multilateral open economy, from an economy priotising heavy industries to an economy emphasizing 3 strategic econmic plans: food and foodstuff, consumer goods exports. The economic growing process in the past 15 years can be divided into the following periods : The 1986-1991 period It was the period of transition, having the most important meaning in the process of tranfering from a centralised planning mechanism to a market one in the context of severe socio-economic crisis in the early 80s. In this period, Vietnam had to face many difficulties and challenges. Foreign investment environment of Vietnam was quite open but some points in its foreign-investment laws were still inadequate and failed to meet the demands of foreign investors. Vietnam’s facility was outdated, not being suitable for its integration into the regional and the world’ecomony. The heavy bulky management mechanism with spead beraucracy was one of the great hinders to investors...
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...compared to what came soon after. Under the Hegemonic leadership of Great Britain, Trade and the movement of people with and within Europe grew at rates that were then unprecedented. All these gains crumbled just before the start of the Great War of 1914. For the next thirty years attempts were made to bring the world economy to its glory years without any success. At this point, nation states had retreated back to protectionism and a wave of national identity and anger of one state against another was sweeping across Europe. State debts, the just ended war, Fascism, Nazism and other various anti-International economic policies and philosophies made it difficult for cooperation amongst states. Cooperation and success was not realized until another undisputed economic power (United sates of America) rose to the occasion in the summer of 1944, to plan and re-arrange the post war economic order. If we were to follow the same naming style as the above mentioned, then this period would in turn be termed Mach-2. Once again the world united under a new Hegemonic leadership. Just as in the previous hegemon, Markets began to recover the good practices of the classical economic system were adopted and the lessons learnt in the thirty years of economic turmoil since the first world war were also in-cooperated. In this essay I will explain, compare and contrast the similarities and differences of the two hegemonic leaderships during the two periods of world economic dominance. I will focus more...
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...Firstly, since independence in 1960, the Nigerian political system has been volatile, there have been 7 military coups, and this has made the investment climate unattractive because the nation appears insecure for the foreign investor. Secondly, they are too many arbitrary and sudden changes in government policies and regulations which have led to a great deal of uncertainty. Foreign banks are scared from funding any project with a long gestation period. With this fear, most of these banks are now turning to major cash centres, that is, they are basically involved in deposits and disbursement of funds without getting involved in long term project financing. Thirdly corruption is endemic and has spread to every facet of the economy. It is widely prevalent in many government and public agencies and foreign banks believe that business operations may come to a halt if they is “no greasing of palms’’ Another major finding is that of weak legal system, the legal system has also has had its shortfall arising from the executive meddling in their affairs. Those who contravened the laws are not easily brought to book, those involved in trade malpractice or breach of contractual agreements are not properly prosecuted to serve as a deterrent to others. Based on these, most foreign banks tend to be worried about validity and enforcement of contractual agreements. Foreign banks require healthy private sector that can earn reasonable rate of return in a stable economic environment, that...
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...Case study – The U.S. Economy, 2009 Executive Summary In this paper, we will make research on the US economy development from 1990s till today. In the beginning, we will discuss the US economy historical path that shaped its structure and key forces defined the U.S. adaptability to changing economic environment. In the major part, we will evaluate the sources of the U.S. productivity and economic growth in terms of key economic indicators and success factors, including the government role. Finally, we will analyze the causes of the U.S. financial and economic crisis, commenting on the reforms undertaken and their impact to date. 1. Evaluate the forces underlying U.S. adaptability to changing economic forces. Key forces of the US adaptability to changing economic forces were low-wage competition from foreign countries, and the growth of new high-tech industries. Mexico and China’s low-wage competition forced to intensify changes and adjustments to compete effectively with, while many cities with skilled workforce and university research centers enabled technological capability for new high-tech businesses, small and medium (Cadieux, 2009). Differences in economic structure, forced by the differences in regional economic performance, were one of the key forces that created a unique system of US adaptability to changing economic forces. These forces shaped the US regions to adapt and “specialize” in the way that provided competitive advantage for each region. Northeast...
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...country chosen for business must promise the new business with growth, diversification profit. A lot has been said about the countries of the West regarding their age old stable systems and their efficiency at handling business. However, western markets are highly saturated and suffer from several issues, including sanctions, clandestine policies and reduced distribution of power. Newly developed or developing countries, on the other hand, have the potential to not only accommodate a new business in their markets. Amongst the top developing countries in the world, India is considered as one of the fastest developing economies (Thapar, 2002). It is also claimed that setting up a business in this economy is beneficial in terms of growth and profit. Research of information available in the market and the media is required to understand how and why India can be considered as an option of a new market for the purpose of expanding business. India is the seventh largest country in the world, the second most in population levels and the largest democracy in the world. The government system in the country is quasi-federal, which means that it has a bipartisan political system that is based on American federal government as well on the Westminster system of the United Kingdom which has followed a two house system. The states have their own government and are superseded by the central government. The cabinet forms the core of the democracy with the Prime Minister as the leader and the President...
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...Rodrigue and Dr. Theo Notteboom1. The Economic Importance of Transportation Like many economic activities that are intensive in infrastructures, the transport sector is an important component of the economy impacting on development and the welfare of populations. When transport systems are efficient, they provide economic and social opportunities and benefits that result in positive multipliers effects such as better accessibility to markets, employment and additional investments. When transport systems are deficient in terms of capacity or reliability, they can have an economic cost such as reduced or missed opportunities. Efficient transportation reduces costs, while inefficient transportation increases costs. The impacts of transportation are not always intended, and can have unforeseen or unintended consequences such as congestion. Transport also carries an important social and environmental load, which cannot be neglected.The added value and employment effects of transport services usually extend beyond employment and added value generated by that activity; indirect effects are salient. For instance, transportation companies purchase a part of their inputs from local suppliers. The production of these inputs generates additional value-added and employment in the local economy. The suppliers in turn purchase goods and services from other local firms. There are further rounds of local re-spending which generate additional value-added and employment. Similarly, households that...
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...and Trade Tutor: Professor Dong Yinguo Author: Hake Feka Student ID: 13D62241 Abstract The result of the market-oriented reforms in China along with its opening up to the outside world were rapid industrialization and integration in international trade. The service sector has perceived a fast, continued development and has made huge contributions to the overall economy in terms of its share of gross domestic product (GDP) and employment. However, the development of the service sector has been inadequate and has lagged behind its overall stage of development according to international norms. Table of Contents 1. INTRODUCTION 2 2. THE IMPACT OF SERVICE SECTOR IN CHINA 2 3. DIFFERENCES AND GAPS 4 4. OBSTACLES AND RESTRICTIONS 6 5. RECOMMANDATIONS AND CONCLUSION 10 REFERENCES 12 1. INTRODUCTION The result of the market-oriented reforms in China along with its opening up to the outside world were rapid industrialization and integration in international trade. The service sector has perceived a fast, continued development and has made huge contributions to the overall economy in terms of its share of gross domestic product (GDP) and employment. The increasing of the service sector has caught up with the manufacturing sector, which indicates that China is moving into a new stage of development with both sectors driving economic growth. As China is a developing country with a middle-income status, the development of the...
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...the rise of China, following the enhanced economic and trade relationship between China and Asian economies, and China’s increasing importance in the world economy, China’s national currency, the renminbi (RMB) will be getting global from Asia. As regional internationalization of RMB is doubleedged, in order to eliminate the financial risks brought by this process, maximize the benefits, it is necessary for China to consider the trade off between costs and benefits of RMB internationalization. RMB internationalization is a dynamic process, in accordance with the different level of the process, the phased strategy should be implemented, and the corresponding policies should be pursued too. Key word: RMB internationalization Cost and benefit Roadmap Introduction If you travel in the Asian region, you will notice that the Chinese renminbi is appearing more often in shops and restaurants, driven by the rapid growth in mainland tourist volumes. Will Chinese Renminbi be the next world currency? Since 2000, RMB internationalization has attracted great attention from the policymakers and the academics both at home and abroad. There is sizable RMB circulation in China’s neighboring countries and economies, even RMB can be fully convertible in some developed countries, some of neighboring countries and economies treated RMB as a reserve currency. This is a new economic phenomenon for both China and the world. Because in economic development history...
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