• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Imports and Exports of a country.

Extracts from this document...


Imports and Exports of a country Countries (developing and industrialized or developed countries) all over the world are engaged in commerce (import and export) that generates revenues. However, global market fluctuations in good and services seasonally may cause depressions in growth and productivity resulting in lower revenues. These problems appear to be greater in developing countries whose population further diminishes increases in revenues. Unrestrained spending or misguided fiscal policies along with slow growth and productivity in the government and private sectors, trade imbalances, excessive national debt and\ combinations of these factors are responsible for poor economic growth or disaster and fiscal chaos. This discussion is focused on measures taken by an industrialized nation and a developing country and how these decisions affect the exchange rate of their respective countries. Here are two examples. The United States of America is one of the most industrialized and developed nations in the Western hemisphere. With a population of over 300 millions inhabitants, this country generates billions of dollars in revenues through trade, manufactures and other businesses in and out of the country. ...read more.


Homeowners were attracted to refinance because of the low interest rates. Homeowners, the banking industries, financial institutions and all associated businesses experienced increases in growth and productivity. The reduced interest rate also helped to sustain the economy by keeping people employed. In related industries, it meant home improvement materials, increased manufacturing and distribution, sales to countries that need such materials for housing. Reduced interest rates also means that the corporate sector can also borrow money at low rates for retooling, improving machinery, building new factories, and manufacturing merchandise, distributing and sales. The decreased interest rate in the US means strong borrowing to do business both at home and oversea. Abroad, the improving US economy and strong revenue collection means strong dollar or comparable exchange rates relative to the host countries. It means that the dollar can buy more, trade deficit can be reduced and jobs can be maintained at home. Overall, a reduced interest rate during a period of reduced productivity or no growth, unemployment and fiscal irresponsibility in the government is a panacea for stimulating an ailing economy. ...read more.


Externally, a weaken economy creates trade deficits and diminish revenue collection as the exchange rates of the currency is devaluated. Given this bleak economic outlook, the government has embarked on bold economic recovery initiatives that will restore fiscal integrity and promote strong exchange rates through the following objectives. To achieve these objectives, the following policies have been adopted: strengthening revenue collection through a speedy rebuilding of the integrity and capacity of the Kenyan Revenue Authority and proper tax system; reducing wage bill as part of total expenditure reformation thus resetting wage standards for public and civil servants and finally restructuring the financial sector to increase efficiency and decrease government liabilities. Fiscal program is aimed at restoring fiscal integrity and debt sustainability, providing resources for poverty reduction spending and positioning the economy on a sustaining, poverty-reducing growth path. Tax reform will improve neutrality, simplicity and revenue-yielding capacity aimed at broadening the tax base. The PRSP will be expanded to tackle poverty by providing opportunities for the poor through reformation in agricultural sector and encouraging medium growth and small-scale enterprises among others. Accepting this loan will enable the government to put strong economic measures in place to combat policy deficiencies that will promote strong exchange rates. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. The Nature of Macroeconomics

    rises --> Y rise via k * When Y rises --> C rises --> induced I rises via a * When induced I rises --> Y rises again via k, C will again rise causing further induced I --> economy moves into boom * As income and demand continue to

  2. The Ohio Pilot Scholarship Program

    It is about monopoly. The public education industry doesn't reflexively oppose choice when it is only within the public education industry itself. It opposes choice when its monopoly position is threatened. That the public education industry is a monopoly is beyond dispute.

  1. Split Votes: A Nation Divided on the Marijuana/Drug Legalization Debate

    The letter reports on "the arrest of virtually the entire Cali drug cartel leadership, the disruption of the Andean air bridge, and the hemispheric drug interdiction effort that has captured about a third of the cocaine produced in South America each year .

  2. Global Imbalances

    but we can't ignore that there are still continual obstacle to the free flow of goods and services across borders. Meanwhile, few capital markets and banking sectors in particularly domestic banking started their operations when there is a rigid and ineffective policies, procedures, rules and regulations and at the same

  1. What makes a country wealthy.

    Capital formation is investment in capital goods that leads to increase in capital stock, national output and income. Investment in capital goods not only raises production but also employment opportunities, it is capital formation that leads to technological progress, which in turn leads to specialization and the economies of large scale production.

  2. China or India? Many companies ask themselves this question. Due to saturated markets, increasing ...

    50% of its sales are in the major cities, where just 8% of the population lives. In terms of labour supply and quality you have to take into account that there is a generation due to the Cultural Revolution that lacks education.

  1. The Famous Grouse - company profile and exports

    holds a segment of the UK market that has been stable for a number of years. The image of The Famous Grouse is also spread through its partnership with the Scottish rugby team, a partnership that has been operating for much of the last decade.

  2. Case Study: The Home Depot

    -Low Prices -Human Resource Policy The core competencies Home Depot can transfer to the international market: We think that Home Depot can transfer with the same competencies they are on the US market already.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work