...Chapter 02 National Differences in Political Economy True / False Questions 1. A country's political economy and culture are independent of each other. True False 2. It is not possible to have democratic societies that emphasize a mix of collectivism and individualism. True False 3. The communists believed that socialism could be achieved by democratic means, and turned their backs on violent revolution and dictatorship. True False 4. In an individualist society, the welfare of society is best served by letting people pursue their own economic self-interest. True False 5. The central message of collectivism is that individual economic and political freedoms are the ground rules on which a society should be based. True False 6. There is a global trend of societies shifting from individualism toward collectivism. True False 7. It is possible to have a democratic state where collective values predominate. True False 8. It is possible to have a totalitarian state that is hostile to collectivism and where some degree of individualism is encouraged. True False 9. The most practical form of democracy is direct democracy. True False 10. Most modern democratic states practice representative democracy. True False 11. In a market economy, if demand for a product exceeds supply, prices will rise, signaling to producers to produce more. True False ...
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...The Gross National Product (GNP) is commonly used as a measure of the performance of the economy. Discuss the advantages and disadvantages of using it to measure the economy of Kenya The Gross National Product (GNP) is the total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens including income of those located abroad. It does not include income of non-residents located in that country. Therefore, GNP measures the value of goods and services that the country's citizens produced regardless of their location. GNP is one measure of the economic condition of a country, under the assumption that a higher GNP leads to a higher quality of living, all other things being equal. But this notion has been challenged in recent years given the failure of the traditional measures of countries’ economic health to take into account non-monetary and informal nature of the economies, especially in the developing world. This paper looks at the advantages and the disadvantages of using the GNP to measure the health of the Kenya economy. The advantages of using GNP to measure the economy of Kenya are that GNP is not subjective so you can evaluate Kenya’s economic performance scientifically and without bias. It is easier to measure than other things- such as output per worker which would be a nightmare to collate for all the different jobs in an economy. GNP is universal. You can use it to examine all economies...
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...THE NATIONAL ECONOMIES OF THE WORLD. 1. To improve our understanding of international business and trade, we must first look at the global picture, that is the national economies, or countries. 2. There are approximately 200 countries, or economies in the world, of varying sizes and positions. 3. Students are encouraged to study the world map to understand these economies better. 4. We look at national economies on two aspects first, population size, and economic size (GDP). 5. The world population is about 7 billion people, and the largest countries in terms of population are China and India (billion club), followed by the hundred millions club, like the USA, Japan et cetera, then the rest of the countries. 6. Students need to look at the list of the countries by population and memorize some of these figures (approximation). For example, the USA has a population of 320 million, Japan 127 million, Indonesia about 200 million, Singapore about 5 to 6 million people. These figures are important for us to understand IBM. 7. Another aspect to look at is economic size. The world economy is worth about USD 72 trillion, and students may look at the top 10 largest economies in the world since they play a big role in IBT (International Business and Trade). 8. The largest economy is the USA with USD17 trillion, followed by China (USD 9 trillion), Japan etc. 9. We may also look at regions, and the three most significant regions, called the Triad, is North America, Western Europe...
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...solving one’s own problems for oneself on one’s own responsibility under all circumstances. The DPRK claims that juche is Kim Il Sung’s creative application of Marxist-Leninist principles to the modern political realities in North Korea.2 Kim Il Sung and his son Kim Jong Il have successfully wielded the juche idea as a political shibboleth to evoke a fiercely nationalistic drive for North Korean independence and to justify policies of self-reliance and self-denial in the face of famine and economic stagnation in North Korea. Kim Il Sung envisioned three specific applications of juche philosophy: political and ideological independence, especially from the Soviet Union and China; economic self-reliance and self-sufficiency; and a viable national defense system.3 This paper begins with a discussion of the three key components of the juche ideology – political, economic and military independence – as promulgated by the DPRK. The second section is a discussion of the ideological origins of the juche philosophy, followed by a third section on the philosophical bases of the juche idea. The paper concludes with an examination of juche as a political body of thought and an evaluation of the success with...
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... National Differences in Political Economy By: Roberta Gandy National University November 30, 2014 There are many differences between business in the United States and other countries with the way the political, economic and legal systems are setup. Cultural practices have an influence with the growth of business to include the size of the population, education and the skills learned and practiced for business. Cost, risks, and benefits will help international businesses decide if they want to do business in other countries. The two differences in communist and democratic political systems have a big difference to how some organizations could run and can affect the business even more. I will focus on the political economy which talks about the political, economic and legal systems in the forefront for discussion. Poland grew 1.5% during the 2008-09 financial crisis while others contracted. 1989 Poland became a democracy after four decades of communist rule. 2004 Poland joined European Union giving access to the large consumer markets. Poland embraced market-based economic policies and exports 40% GDP making it a major exporter. Poland kept public debt in check by not allowing it to expand, like other countries did, during a recession. Poland achieved investor confidence and was able to prevent large outflow of funds during economic turmoil. Other countries had their investor pull money out of these economies causing growing...
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...Financial Crisis and the National Economy PART A Initial balance sheet Liabilities | £m | Assets | £m | Risk Weighting | Risk Adjusted Assets (£m) | Deposits | | Cash | | | | Current accounts | 195 | Cash in Tills | 5 | (0%) | 0 | Time deposits | 94 | Money at call | 5 | (0%) | 0 | | | | | | | Total Liabilities | 289 | Available for sale assets | | | | | Gove' Bonds & Bills | 10 | (10%) | 1 | | | Other Bonds & Bills | 40 | (20%) | 8 | Equity | | | | | | Shareholder Capital | 13 | Other assets | | | | Retained Profits | 3 | Loans and Advances | 125 | (100%) | 125 | | | Mortgages | 120 | (50%) | 60 | Total Equity | 16 | | | | | | | | | | | Total Liabilities + Equity | 305 | Total Assets | 305 | Total Risk Adj’ | 194 | UK Liquidity Ratio | 3.5% | Leverage Ratio | 5.2% | Capital Ratio | 8.2% | Balance sheet after £6m write-down Liabilities | £m | Assets | £m | Risk Weighting | Risk Adjusted Assets (£m) | Deposits | | Cash | | | | Current accounts | 195 | Cash in Tills | 5 | (0%) | 0 | Time deposits | 94 | Money at call | 5 | (0%) | 0 | | | | | | | Total Liabilities | 289 | Available for sale assets | | | | | Gove' Bonds & Bills | 10 | (10%) | 1 | | | Other Bonds & Bills | 40 | (20%) | 8 | Equity | | | | | | Shareholder Capital | 7 | Other assets | | | | Retained Profits | 3 | Loans and Advances |...
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...Characteristics of LDCs Exports of Primary Goods: The primary and agricultural products are the main exports of these countries. The international trade. For example the main exports products of Pakistan are rice, cotton yarn, fish and garments etc. Capital Deficiency: The deficiency of capital in an important feature of developing countries. Therefore they are often called capital poor economies. The shortage of capital is reflected in the very low capital labour ratio in these countries. Over Dependence on Agriculture: 68% population in Pakistan is living in 46,894 villages, back-ward agriculture is the major occupation of the population. Agriculture sector is back ward due to old and traditional methods of cultivation. In-efficient farmers, tack of credit facilities, unorganized agriculture market etc. 66.7% population is directly or indirectly depending on agriculture sector in Pakistan. Natural Resources: Mostly there is shortage of natural resources in developing nations and this is also a cause of their economic backwardness. In various poor countries natural resources are available but they remain un- utilized under-utilized and miss- utilized due to capital shortage, less efficiency of labour, lack of skill and knowledge and limited home market. Out Flow of Best Brain: The brilliant and brightest students of developing countries go to developed countries for higher education. After completing their education, they do not want to come back in their own country due to...
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...Macroeconomics: The Study of Our National Economy Macroeconomics: The study of Our National Economy “Our new economic approach is rooted in ideas which stress the importance of macro-economics, post neo-classical endogenous growth theory and the symbiotic relationships between growth and investment, and people and infrastructure”. (Brown) As we have seen here in the past few years, but more so in the last year, the economy is ever changing. Macroeconomics is the backbone of America and without a stable economy we have serious hurdles in front of us to overcome. John Maynard Keynes developed the Keynesian Theory, which has become the foundation of our government’s economic decisions. During the course of this paper I will outline Keynesian Theorists and Monetary Theorists approach to promote long-run macroeconomic stability, the impact of persistent budget deficits on the trade deficit, options available to policy makers when national savings presents opportunity to improve the trade deficit, appraise the position of the supply side as it relates to government deficits and evaluate recent national economic policies as they relate to the magnitude of the trade deficit. In essence, the inner workings and use of macroeconomics as a financial tool of study to determine how a national economy is managed and sustained. To begin, Keynesian theorists approach to promote long-run macroeconomic stability is somewhat unique. Economist who agree...
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...Faheem, Dost & Abdullah 2011, p. 293). The increasing irrelevance of national borders, including social, economic, cultural and technological borders, is one of the fundamental characteristics of the incident of globalization. Innovative technologies such as the Internet have facilitated the dismantling of national boundaries. As a consequence, the world is rapidly turning into one massive village; not only in political terms, but economic terms as well (Kemeny 2011, p. 17). At present, global exchanges and interactions continue to be the order of the day. All areas of society, including the economic aspects, are constantly being reshaped by the process of globalization as forces that outweigh and transcend national borders exert their influence. The rate of global change is quite rapid today; consequently, the emergence of global economies makes national economies, as well as strategies geared towards national economic management, irrelevant or entirely obsolete. Economic globalization has resulted in the proliferation of global economies, which surmount the powers held by national economies to influence economic occurrences within their national borders. Fundamentally, national economies are interdependent as they depend on the cross-border movement of capital, technology, and goods and services to facilitate growth and intensification (Giddens 2000, p. 157). In essence, the establishment of global economies is geared towards obliteration of deterrents to global trade, for...
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...phenomenon. During these years, the real Gross Domestic Product (GDP) growth of the world (annual percent change - A% c) averages 3,83. It is worth mentioning that the above referenced countries reached 6,01 (157,02% more); and Advanced Economies - not yet recovered since the last financial crisis - reached 1,6 (47,78%). Meanwhile, different measuring models have found that in the world, just the top 20% of the population controls over 70% of the global revenue. These economies have been growing as well. The importance of this investigation is answering the questions: Are they reversing this lack of equality trend? And, Would be relevant to add equity in the development agenda?. This paper offers an analysis of these points and studies them as a strategy for sustainability and continuous growth. Key words: BRICS countries growth; National income distribution; Equity in the development agenda. 1. Introduction BRICS Countries are leading the growth of the economy in the world, and have done so for over 10 years. The International Monetary Fund (IMF) projected that from 2013 to 2017 it will maintain its growth at least 26% above World Growth GDP. Note: GDP, will be the measure utilized in this paper when referring to growing economies. This information comes from the IMF data base and calculations made by the author. Income distribution refers to how a nation’s total GDP is distributed among its population (Sullivan and Sheffrin, 2003)....
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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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...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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...[pic]31 [pic]0 [pic]0 [pic] There is no doubt that the Nigerian Government has carefully set a plan to become one of the 20 largest economies of the world by the year 2020. Tagged vision 20:2020, the plan seeks to mobilize and coordinate human and financial resources towards providing accelerated human security, economic growth and social development. While opinions may vary regarding the nation’s ability to achieve this goal, statistics so far indicate that it is achievable if political will is sustained. For instance, in 2009, Nigeria ranked 44th in global GDP index, but two years after, it climbed five steps to 39th largest economy in the world. A year later, Nigeria climbed two more steps by finishing 37th position. It is expected that the numbers for last year, when computed, would take Nigeria closer to her vision, given the stability and high growth recorded in the year. The present administration’s Transformation Agenda remains a critical catalyst for achieving this national vision. It is common knowledge that the National Planning Commission has progressively spearheaded Nigeria’s return to strategic development planning after about three decades drift of the economy in no clear direction, especially under military rule. To ensure effective implementation of the Government’s Development Agenda: National Vision 20:2020, First National Implementation Plan and the Transformation Agenda, the Government has established a specialized department of Monitoring and Evaluation...
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...of comparative advantage and the principle theories of why trade occurs. 2. Analyze and discuss the sources of comparative advantage in national economies. 3. Analyze the international movement of productive factors in order to identify business opportunities and/or threats. 4. Explain the economic effect of tariffs, nontariff barriers, and various forms of trade policies adopted by national governments. Activity mode aims to provide quality study notes and tutorials to the students of ECO 305 WK 4 Assignment 1 International economics in order to ace their studies. ECO 305 WK 4 ASSIGNMENT 1 INTERNATIONAL ECONOMICS To purchase this visit here: http://www.activitymode.com/product/eco-305-wk-4-assignment-1-international-economics/ Contact us at: SUPPORT@ACTIVITYMODE.COM ECO 305 WK 4 ASSIGNMENT 1 INTERNATIONAL ECONOMICS ECO 305 WK 4 Assignment 1 - International economics Part 1 Write a 4-6 page paper in which you: 1. Explain the concept of comparative advantage and the principle theories of why trade occurs. 2. Analyze and discuss the sources of comparative advantage in national economies. 3. Analyze the international movement of productive factors in order to identify business opportunities and/or threats. 4. Explain the economic effect of tariffs, nontariff barriers, and various forms of trade policies adopted by national governments. Activity mode aims to provide quality study notes and tutorials to the students of ECO 305 WK 4 Assignment 1 International...
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...International Business Chapter 1 What is international Business Key Concepts In International Business * International Trade - describes the exchange of products and services across national borders * Exchanges can be made through exporting or can also take the form of: * Importing or Global Sourcing - the procurement of products or services from suppliers located abroad for consumption in the home country or a third country. * International Investment - refers to the transfer of assets to another country or the acquisition of assets in that country. Economists refer to such assets as factors of production and they include capital, technology, managerial talent and manufacturing infrastructure. * Foreign Direct Investment - is an internationalisation strategy in which the firm establishes a physical presence abroad through acquisition of productive assets such as land, plant, equipment, capital and technology. It is a foreign-market entry strategy that gives investors partial or full ownership of a productive enterprise. * International portfolio investment - refers to the passive ownership of foreign securities such as stocks and bonds for the purpose of generating financial returns. International portfolio investment and foreign direct investment are the two essential types of cross-border investment. The Nature of International Investment Foreign direct investment (FDI) is the ultimate stage in internationalisation and encompasses the...
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