...There are two main theories that dominate our world economy- capitalism and socialism. Reviewing the approaches these theories take to operating shows stark contrasts. While each system is founded on their own belief structure, they do borrow ideas from each other. Each party has been critical of the other for taking advantage of their own people. Taken in simple terms there are three main ideas that are the foundation of each system- ownership, pricing, and profitability. In a capitalist economy businesses are owned by individual people, while in a socialist economy businesses are owned by the public, read government. Socialist economies determine the prices of goods and services through a central committee and capitalists believe that supply and demand should drive the market. Some might describe a primary difference of these systems as capitalism is a “for profit” venture while socialism is a “not for profit” concept. Both economic theories have received criticism from their detractors. Capitalism is criticized for creating income inequalities that keep the poor, poor. In this system, the wealthiest individuals dominate the means of production and benefit exclusively from the profits of those ventures. Socialism limits people’s freedoms to choose where they live, work and even the way they are educated. With a system that is based on limited choices, and profitability seen as criminal, critics believe that socialists will find it difficult to keep up with the competition...
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...India is regarded as the world’s richest country in the world and had the world’s largest economy till the 17th century AD in this book. He also had calculated the historical statistic of world’s largest GDP that by 2030 India 2030 India will have 10,074,000 million and China 22,983,000 million since it was resource rich but the actual figure of India’s Gdp in 2014 is worth 2066.90 billion us dollars which is only 3.33 percent of the world economy and China was worth 1036.10 billion US dollar which is only 16.71 percent of the world’s economy as against what Angus had predicted. Even in today’s age colonialism in the garb of imperialism which exploits natural resources because capitalism does not respect it as much as capitalistic labour. This is seen in Africa where resource rich countries are facing resource curse. This paper will elucidate two examples from contemporary history about the scant respect for natural resources on its owners. Sierra...
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...China and India in the World Economy What challenges to the world economy do India and China pose? There are many challenges to having the world’s two most populous countries enter the world trading system. Just the sheer size of these two countries is a challenge to other countries that are smaller. More people in China and India means more opportunities (and increased demand) to grow their economies, to increase education, to manufacture more goods, provide more services, use up more of the world’s resources, etc. These are all challenges that other countries face with India and China. India’s service sector has grown tremendously and many people have begun outsourcing service jobs such as information technology and computer jobs to India as well as other service jobs such as call-center customer service jobs. Outsourcing reduces the price of these services and allows businesses to increase profits by having lower costs. This poses as a challenge to the economies that are outsourcing jobs to lower fare countries because it reduces the number of jobs in its own country and leaves more of its own people unemployed or having to look for other type of work. China has emerged as an export platform and a high volume manufacturer of consumer goods. China has very low wages and its manufacturing wages are estimated to be about one-fourth of the amount paid in Brazil and Mexico. But apart from low wages, China has several other sources of comparative advantage which poses...
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...The future of the world economy lies increasingly in female hands The role of women in society has changed dras4cally throughout the last decades. Looking into history, 70 years ago it was expected of women to stay at home. Even in the mid‐fiBies many educated women led a suburban lifestyle, cooking for the husband, cleaning the house and caring for the children. These were the deeds that society expected from them. The normal family structure consisted of the husband, who would earn the money for the family, his wife and the children. Today it is the excep4on. The women’s libera4on movement throughout the 1960s was the kickoff for the implementa4on of equal rights and payment for women, which passed through both Bri4sh houses in 1975. An4‐discrimina4on laws for women quickly followed in all of Europe, laying the ground stone for women’s success in business. Fields such as medicine, law, and science opened to include more women, whom are now surpassing many males on the level of educa4on. In the United States in women earned 62% of Associate's degrees, 58% of Bachelor's degrees, 60% of Master's degrees, and 50% of Doctorates in 2006. These are impressive results! Being granted equal rights provided women with the opportunity to make their own choices in terms of lifestyle. Women were, and in fact are, no longer dependant on their partners to provide them with a living and have consequently become more demanding in what they expect to find in a rela4onship. In considera4on that women have become capable of ...
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...金融危机对世界经济的影响 论文关键词:金融危机;经济;措施 论文摘要:金融危机的影响愈演愈烈,形成一种“蝴蝶”效应,引发了国际金融风波。已波及到许多国家的金融机构和银行,其损失和危害正在逐步显露。其最主要特点是,给世界经济带来重大和持续的破坏性影响。 2008年,美国陷入严重的次贷危机,次贷危机及其引致的国际金融危机使我国出口加工业面临严峻形势,包括我国在内的许多企业纷纷大量裁员。 于是,2008年11月美国纽约时报网站报道,内忧外患的美国银行业巨头花旗集团亦在金融危机导致华尔街又一轮的裁员风暴愈演愈烈的情况下继续裁员,其宣布将再次裁掉24000名员工,这使花旗将在短短几个月里的裁员总数达到52000名。IT界亦然逃不脱金融风暴的席卷,美国著名职业咨询公司Challenger,Gray&Christmas发布的研究数据显示,受金融海啸的影响,到2008年年底,全球IT产业将有18万人失业,这些被裁员工来自雅虎、惠普、北电 摩托罗拉等多家知名IT企业。这也是自2003年以来IT产业裁员人数最多的一年。微软今年1月发布的截至2008年12月31日的2009财年第二财季财报显示,净营收166.3亿美元,同比增长仅2%;净利润为41.7亿美元,同比下滑达11%,所以,微软全球CEO鲍尔默给全体员工发了一封邮件,宣布将启动最多3600人的第二轮裁员计划。 接下来,一系列裁员效应开始,直到今天,2009年八月的香港大公报亦然登出即使全美裁员现象相对好转,但系仍然持续,金融危机尚未结束,“美国七月新增裁员人数32.8万人超预期”,“金融危机使美国人存多花少”并且,众多金融界,经济领域,甚至金融分支的股票行业专家分析:美救市短期内无法止跌股市。 众所周知,金融市场有初级市场和二级市场。初级市场由公司通过发行新的股票和债券来筹集资金,而二级市场则能够不仅让投资者可以迅速从事交易以及买到不同风险和收益特征的证券,亦能使金融机构对市场资金效果以及日后证券发放利弊进行评判。所以,一级市场本身就出了问题,接下来二级市场便会如滚雪球一样不断堆积与反馈。西格尔认为,真正的原因在于:金融机构以借贷的资金购买,并且持有大量与抵押贷款相关的高风险资产,以及相应的保险。讽刺的是,这些金融巨头没有必要持有这些证券,所以创造,打包并销售这些证券,如此他们已经赚得盆满钵满了。然而,当AIG的CEO们开着法拉利保时捷叫嚣自己的薪水太低,待遇不公的时候,可否想过,成千上万的市民因为持有这种风险资产与垃圾债券,引发出的多米诺效应若不加与控制,终究会影响到他们自身的利益。另外,本次金融危机集中暴露了美国民众借贷消费生活模式的弊端,相对容易地获得贷款使得美国居民可以在不断扩大自身的财富约束的同时,却亦诱发各种不良资产甚至次贷风险的潜在因素。 具体来说,各种金融非金融风险包括外汇风险、信用风险、流动性风险、市场风险、国家或主权风险、成本因素和经营风险,甚至破产风险等等。在既已发生的金融海啸的国际环境下,市场、政府和企业发生连锁反应,市场低迷直接导致国际需求的变化,同时提升了汇率风险和信用风险;政府通过贸易政策设置壁垒,企业的成本因素受到冲击,经营风险加大,正是由于这些因素的复合作用,出口加工业成本上升、融资困难、外需不振、议价力低的四种压力导致企业大量裁员甚至破产。美国经济学家Fisher(1933)提出的债务—通货紧缩理论首开金融危机理论研究先河。该理论指出未预期到的物价下降在债务人与债权人之间再分配财富,使债务人变得更加富有而使债权人变得更加贫穷。于是过度负债和通货紧缩的相互作用...
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...FT SPECIAL REPORT World Economy Friday October 12 2012 www.ft.com/reports | twitter.com/ftreports Hopes turn to fear and uncertainty Answers to the big issues facing the global economy depend mainly on events in the US and eurozone, writes Chris Giles Meeting of minds: logo for the IMFWorld bank events beginning in Tokyo today Bloomberg Inside » Growth glitches FT specialists report from the eurozone, China, the US and the UK Pages 2, 3 If Obama wins . . . or Romney Some differences seem more symbolic than real Page 4 Cash conundrum The IMF and World Bank have plenty of money but face new challenges Page 5 A threat of double-dip recession is stalking the world economy. Advanced economies are struggling to raise insipid growth rates, while the fast-growing emerging economies cannot maintain their previous momentum. If anything goes wrong – and there are known potential shocks in the coming months – the risk is rising of a dangerous economic slide. The Brookings Institution-Financial Times Tracking Indices for the Global Economic Recovery shows a steep drop in 2012 so far, leading professor Eswar Prasad of Brookings to describe the global economy as “on the ropes”. In the International Monetary Fund’s twice-yearly World Economic Outlook, published this week, Olivier Blanchard, the fund’s chief economist, said the world economy was hamstrung by uncertainty, which was pre- venting companies from investing and households from spending. “Worries about...
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...| Has Market Economy approach led the world to the current economic situation? | | | | By:Divya Padmanabhan IES Management College and Research Centre Mumbai, India | Executive summary: “If war is God’s way of teaching geography to the world, recession is His way of teaching everyone a little economics”. The global financial crisis has questioned the efficacy of the existing institutional framework and forced us to rethink on how our financial systems are regulated. It has also posed an important question whether the root cause of this global crisis has been the highly praised ‘Open Market Approach’. The inter linkages in the global economy has ensured that no country remains isolated and unhindered by the crisis. With the economic crisis looming over the people at large, unemployment seems to be at all time high and the whole world having a pessimistic view of the future, capitalism seems to be at loss of reason for this crisis, let alone a find solution for it. There was a time when being a capitalist economy was a matter of pride and people were excited to be part of the “free” economy but somewhere down the line the excitement seemed to have vanished. What was thought to be an epitome of equality, turned out to be the cause of inequality. In an article by Joseph E. Stiglitz “Of the 1%, By the 1%, For the 1%”, 1 percent of the people in USA take nearly a quarter of the nation’s...
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...G-20 Major economies Project by: Sahib Deol Sec. A Sem. 3 DECLARATION I, Sahib Deol, student of BBA 3nd Semester of SCMS (UG) NOIDA, hereby declare that the Project on “ G-20 Major Economies” is for the partial fulfillment of course objectives for the BBA Degree. I assure that this project is the result of my own efforts and all the information and facts furnished in this Project are based on our intensive study. Date: 15/10/2012 Name:Sahib Deol Place: Noida Introduction The Group of Twenty Finance Ministers and Central Bank Governors (also known as the G-20, G20, and Group of Twenty) is a group of finance ministers and central bank governors from 20 major economies: 19 countries plus the European Union, which is represented by the President of the European Council and by the European Central Bank. The G-20 heads of government or heads of state have also periodically conferred at summits since their initial meeting in 2008. Collectively, the G-20 economies account for more than 80 percent of the gross world product (GWP),00 80 percent of world trade (including EU intra-trade), and two-thirds of the world population. They furthermore account for 84.1 percent and 82.2 percent of the world's economic growth by nominal GDP and GDP (PPP) respectively from the years 2010 to 2016, according to the International Monetary Fund (IMF). The G-20 was proposed by former Canadian Prime Minister Paul Martin[5] as a forum for...
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...MBA World Economy 4.703 Assignment: “Both in France and Greece the incoming governments have promised to get their economies to grow again by increasing government expenditure, rather than implement policies designed to get back into budget surplus. Explain whether/or not you think that the government of New Zealand also should follow a similar policy” TOPIC PAGE Introduction.........................................................................................................3-4 Greece/France Policies and effects…………………………............................5 Root cause of Greece and France problems…………………..........................5-6 Differences: New Zealand and Greece/France……………….........................6-7 Keynes Doctrine Expansion Policy....................................................................7-8 Keynesian Doctrine as applied to New Zealand...............................................8-9 Unemployment: Effects and Benefits…………………………........................9-10 Trade Life Cycle/Superannuation/Inflation: New Zealand…………………10-11 External Debt…………………………………………………….…………….11-12 Conclusion………………………………………………………………………12 References………………………………………………………………………13-14 Introduction Source diagram: Google, (2012). The Great...
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...businesses. Topics we will cover include: What determines exchange rate fluctuations and currency crises? How do they affect the domestic economies and firms’ international competitiveness? What determines trade and investment across countries? How do culture, politics and international organizations interact with the global marketplace? Given the unique challenges and opportunities of operating across borders, how do firms make sourcing, manufacturing and distribution decisions on a global basis? We emphasize a deep appreciation for, and understanding of, the interdependence and interrelatedness in the world economy; knowledge of specific countries will not be the focus of this course. Classes will use a combination of lectures, case analysis, and analytical discussion of key topics and current events, with students expected to play an active role in the classroom. This course provides students with the concepts, tools, and skill sets necessary to conduct in-depth analysis of the global economic landscape. The goal is to understand the underlying market and institutional mechanisms that drive globalization, shape the international business environment, and influence strategies of individual businesses. Topics we will cover include: What determines exchange rate fluctuations and currency crises? How do they affect the domestic economies and firms’ international competitiveness? What determines trade and investment across countries? How do culture, politics and international...
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...Question of the Day No.1 Read the Introduction to part IV & Chapter 16 A New World Economy The present state of the “Modern Part” is the result of the early modern period. Major events during the period between 1450 and the early 1500’s occurred so developments resulted in the manufacture and use of several technologies. Examples of this would be the rise of empire independence of countries, the discovery of America in the 1940’s, and the industrial revolution in late 18th century Europe. Economy was being dominant mostly because of Europe’s leadership in the industrial revolution with basic inventions such as steam engine. The first theme of these period was the introduction of Americas into the full global economic system helped intensify regional trade which is the second theme of this period and also typically forwarded biological exchange between Americas and the rest of the world which are called Columbian exchange. And parts of this biological exchange included people (Slaves). The result of this biological exchange was improving global food supplies. The increase in interregional trade has many sides. Some as referred by scholars is a proto globalization indicating a direct link between the acceleration of now international contacts and more contemporary patterns. The variety of goods expanded, many societies became dependent on imported goods, trade routes shifted. The Atlantic became a major artery trade. Trade within the Mediterranean became less important...
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...Economics 2: The World Economy Unit Student Guide Scottish Qualifications Authority Contents 1 2 Introduction to the Scottish Qualifications Authority Introduction to the Unit 2.1 2.2 2.3 2.4 2.5 2.6 3 What is the Purpose of this Unit? What are the Outcomes of this Unit? What do I Need to be Able to do in Order to Achieve this Unit? Approximate Study Time for This Unit Equipment/Material Required for this Unit Symbols Used in this Unit 1 2 2 2 2 3 3 4 5 5 6 7 7 11 18 24 31 37 41 51 60 68 75 DE3H 35 Assessment Information for this Unit 3.1 What Do I Have to Do to Achieve This Unit? 4 5 Suggested Lesson Plan Learning Material 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 Setting the Scene Outcome 1 - Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Outcome 2 - Section 1 Section 2 Section 3 Section 4 © Scottish Qualifications Authority 2004 Economics 2: The World Economy Unit Student Guide Scottish Qualifications Authority 5.12 5.13 5.14 5.15 5.16 5.17 5.18 6 7 8 9 Section 5 Section 6 Outcome 3 - Section 1 Section 2 Section 3 Section 4 Section 5 85 92 99 104 108 112 115 119 121 135 135 Additional Reading Material Solutions to Self Assessed Questions and Activities Copyright References Acknowledgements © Scottish Qualifications Authority 2004 DE3H 35 Economics 2: The World Economy Unit Student Guide Scottish Qualifications Authority 1 Introduction to the Scottish Qualifications Authority This Unit DE3H 35 Economics...
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...Article summary The article I looked at was... Oil and the world economy The new grease? How to assess the risks of a 2012 oil shock This was from the 10th of March online Print edition of the Economist The article looks at increasing oil prices, reasons for the increases and the effects on individual countries and the global economy. Next slide High oil prices have become the latest source of worry for the world economy, and the four main questions everyone is asking in assessing the dangers posed by more expensive oil are: What is driving up the oil price? How high could it go? What is the likely economic impact of rises so far? And what damage could future increases do? The article starts by explaining that the price of Brent crude increased by more than $5 a barrel on March 1st, to $128, after an Iranian press report stated that explosions had destroyed a vital Saudi Arabian oil pipeline. After the Saudis denied the claim, the price fell back to $125, however this is still 16% higher than at the start of the year. Next slide It goes on to discuss reasons for the increase in oil prices such as a move by investors who are now investing into hard assets especially oil, increased global prospects which have increased expectation for oil demand and disruptions in supply. The article concludes that supply shocks, do more damage to global growth than higher prices that are the consequence of stronger demand. Next slide Even though this chart shows Saudi Arabia is...
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...Free Trade Free trade may also be called International Trade. Free Trade occurs when goods and services are traded between countries without the use of import controls. For most of the late twentieth century, the prevailing wisdom has been that free trade can lead to improvements in economic welfare in the global economy. However this has not prevented regular trade disputes between countries - often when one country feels that unfair trade practices have caused the benefits from trade to become distorted. Free trade is very important to all developed countries as there are likely to be economies of scale - when producing for larger markets (foreign markets), average costs of production will be lower. There is likely to be a wider choice of products for consumers to buy and prices are likely to be lower because of lower costs. There is likely to be more efficient use of resources because countries will specialise in producing goods and services where opportunity cost is lowest, i.e. countries will produce goods and services that they can make more efficiently. There is likely to be an increased global output of goods and services without using more inputs. Another reason for importance is there is likely to be a higher standard of living for consumers. There may be political benefits because dealing with other countries will improve relationships. Maquiladoras (Mexican factories which take in imported raw materials and produce goods for export) have become the landmark...
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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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