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University Degree: Political & International Economics
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- Marked by Teachers essays 1
On January 1 2001, the exchange rates of the participating countries were irreversibly set. Member states implemented a common monetary policy and the euro was introduced as legal currency. Eligibility for participation in the single currency depended on satisfying a number of criteria set out in the Treaty of Maastricht. Along with Denmark and Sweden, both also members of the European Union, the UK has decided to withhold its involvement in the single currency. For a country to take part in the single currency, it had to satisfy a series of criteria laid out by the Treaty of Maastricht.
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(I feel that it should be noted that loans between countries is not a new concept and has a history of over 175 years (Sachs, 1989:4) around the same time as capitalism took stronghold across the world). Although theoretically these debts are supposed to be an investment which will be beneficial in the long term, it has become the case in many countries that loans can in fact prohibit the scale of progress that can be made due to the many restrictions of repaying the debts (which are often crippling amounts), meaning LDCs find it very hard to catch up to more developed countries no matter the amount they loan.
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Breaking up Banks and Financial institutions that are Too Big To Fail since they could cause a crisis in the entire financial system (systemic risk) and also great damage to the real economy as a result.
There are two main ways to handle the failed bank. The first is a payoff method. According to it the FDIC (Federal Deposit Insurance Corporation) allows the bank to fail and then pays off all deposits up to $100,000. After the liquidation of the bank the FDIC pays off its debts to other creditors from the liquidated assets. Usually people who have deposits in excess of $100,000 limit get back more than 90 percent of their money, but the process may take several years. The second method is called the purchase and assumption method.
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The turning point was 1968 year when M. Friedman wrote his famous "The role of monetary policy" article where he described advantages and applications of monetary policy and how it should be conducted. Since then the monetary policy have been in wide practice worldwide and through the last 10 or more years it is seen as preferable by many economists and politicians as opposed to fiscal policy. A lot of water has flowed under the bridge since then, financial instruments, markets and the whole economic environment has changed dramatically and so did the monetary policy tools.
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Foreign direct investment (FDI) in India has played an important role in the positive development of the Indian economy.
They also forecasted that India would be one of the top 5 attractive destinations for foreign investors during 2011 - 2012. In the 2010 European Attractiveness Survey done by a global consultancy firm Ernst & Young, India is named fourth as the most attractive FDI destination (with a share of 22%). It also forecasted that in the next 3 years, India would become more attractive and ranked second with a proportion of 61%. This rising level of attractiveness is good for India, as FDI has in a lot of ways enabled India to achieve a certain degree of financial stability, growth and development.
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An argument against optimum currency areas (OCA) is that the single currency and the common interest rate used in an OCA would mean one-size-fits-all monetary policy. Explain this argument
On the other hand there are of course disadvantages to having a common currency or exchange rate regime. Obviously the exchange rate management would no longer be available as a policy tool in specific regions, to encourage foreign investment for example. This would instead be decided by some central authority. Control over monetary policy also would similarly have to be relinquished by regional or national authorities to a common central bank, in the Euro's case the European Central Bank (ECB). In the case of many different currencies or floating exchange rates, individual regions can use interest rates to manage business cycle effects or counteract unexpected demand shocks; raising interest rates to discourage consumption when demand is excessive to combat inflation and lowering them to encourage spending and thus reduce unemployment when demand is low.
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This essay will firstly briefly explain the Marxist economics and then outline the Venezuelan economy strategies since 1998, finally focusing on evaluating how Marxist Political Economics concepts influence the economy.
In other words, Marx believed that in capitalism, the bourgeoisie own the means of products and in order to rising labor productivity for accumulation and expansion, capitalists tended to maximize the input in techniques, capital and minimize the input in labor, which will induce the falling of profit and generate recession and depression (Mattick, 1957). As Marx concerned that by aiming to eliminate the alienation and drawbacks in exchange market, it is necessary to set up a central planning economy which will facilitate the nationalization of means of production, then promote the economy growth and reduce the inequalities (Wood, 1991: 247-248).
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Especially after the world war people yearn for every kind of products - productivity was high. Full employment also been supported by the success of Keynesian economics and the stability of the Phillips Curve. Interestingly, after the war the majority of women who worked in war production no longer needed. They remained in the category of the "economically inactive" (Bertola, 1999). These boom years rapidly collapsed in the 1970s. The energy crises of 1973 and 1979 generated a stagflation. In addition it came to a rising of inflation and a rising of unemployment (in contrary to the Phillips Curve theory). On the European Market it came to a fixed exchange rates pegged to the German mark.
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Bailout Plan. The United States economy is going through an economical crisis. Today, it is harder for businesses to get a line of credit from the bank.
According to an article by the FOX News network, President George W. Bush stated that the credit crunch is threatening the availability of student loans, and in Bush's weekly radio address, he quotes "A slowdown in the economy shouldn't mean a downturn in educational opportunities." Bush also stated that the Education Department was stepping up efforts to make loans directly available to students. President Bush signed the $700 billion Emergency Economic Stabilization Act, which went into effect October. 3. The bill expanded its bailout plan to include buying student loans held by banks.
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Plutonium was also found in soil nearby the area of the plant. These were all a sign for Japan that one, or even more, of the reactors had suffered meltdown. Natural disasters do often represent globalisation; presenting the best and the worst prospects. The Fukushima incident which struck Japan in March, for this reason, aids as a perfect example at explaining globalisation, and how it services our society. Numerous factors of globalisation are highlighted, consistent with the incident, illustrating just how planet earth, as a whole, will be impacted and therefore affecting some of globalization's processes.
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Having been in an economic depression, the UK government believed a third runway would help allow for a major economic boost, as it is one of the busiest airports in the world. Being a main airport hub in Europe, Heathrow wanted a third runway in order to keep its status as one of the major airports. With only two runways, Heathrow seemed to be falling behind other major airports in Europe with multiple runways. This provided motivation for airport officials and the government to promote motivation for the building of a third runway.
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Greek Financial Crisis. This essay will begin by identifying the financial problems and analyze its causes, followed by a discussion of the fiscal and monetary policies that can be applied especially in the eurozone context,
Loss of credibility makes the situation worse as interest rates on existing debts rise, and Greece needs to borrow �50 billion this year to repay its bills (The Times 2010). Consequently, the European monetary union is put at risk, and the euro is likely to depreciate against other currencies. ?? Greece's financial problems are structural and they had a long period of incubation. Years of excessive government spending and failure to reform the economy have driven Greece into the hardest situation ever since the birth of the eurozone.
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This paper will focus on how the inputs and linkages between each key phase of the American t-shirt would change if produced in a true free trade market.
to the genetically modified (GM) cotton seed. Collectively, these innovations have reduced the need for seasonal labor and significantly increased the overall yield of cotton. The GM technology increased U.S. cotton farmers' income approx. $1 billion. In addition, further USDA research helped transform the cotton farmers' waste products into revenue by recycling and/or reusing in items ranging from cattle feed to corn oil. After all this, the government subsidies kick-in. Based on the above factors, I believe that a free trade market for American t-shirts would not change the activities instituted by the Virtuous Circle as the technological advances minus the government subsidies would still generate enough profits to appropriate amongst the shareholders.
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Balance of Payments. It follows from double-entry bookkeeping that the balance of payments must always balance : total debits equal total credits . When we speak therefore of a positive or negative balance or a surplus or deficit , we evidently have in m
When we speak therefore of a positive or negative balance or a surplus or deficit , we evidently have in mind some particular group or classification of accounts . For example , a positive balance of trade refers to an excess of merchandise exports over merchandisse imports (item 1) and vice versa for a negative balance of trade . Similarly , a current-account surplus or deficit refers to the difference between receipts and payments coming from exports and imports merchandise and services ( items 1-5 )
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Research topic outline. Transition of Chinas environment policy and its impact on developing economy
Chinese economy heavily relies upon coal-based industry which is the cheapest but most polluting source of energy, so it is not easy for China to give up main source of their revenues just only for environment. In this research, therefore, I would like to examine whether there is positive or negative economic impact so as to assess the need of strong environment policy in the stage of economic development in China. Literature Review A lot of work is theoretically done to define the role of environmental policy in encouraging or discouraging productivity growth.
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This suggests that there is considerable scope for the euro to continue expanding its role as global currency. In this paper, we are going to further address the matters above and discuss the Role of the Euro compared to the Dollar, gauge the Euro's weight in third countries as well as in global financial markets, and finally give an excursion about present challenges and issues (the current Greek crisis). History of Euro On January 1, 1999 the Euro became the official currency for more than 300 million people in Europe. It was first introduced as an accounting or electronic currency in 2001 (ECU), and in 2002 became legal tender in 12 EU member states.
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Prospects for Mongolian growth. With ample mineral reserves and increasing demand for resource globally, Mongolia will experience rapid economic growth in the next decades. The relative stable and democratic political system dramatically reduces the poli
Mainly focus on the mining industry, Mongolia has shared large portion of the benefit from the rapidly development from Asia countries, especially steel industry from China and India. Though the commodity price has been volatile recently, the substantial customer and trading partner will provide Mongolia impressive profit from its reserve. As a result of rapidly growth of real GDP, the government current account balance has been improved from -4.6% of GDP in 2009 to expected 6.5% in 2011 and increased foreign exchange reserve to 2.288 billion in 2010*.
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This then lead to a subprime mortgage crisis and many consumers became worried about their finances. They decided to take out their money from the banks for fear the banks could go under. This resulted in many banks needing government assistance, as they did not have the finance to run themselves. The United Kingdom and United States of America operates in what is known as 'free market economies'. There is very little government intervention in free market economies which may explain why these countries are currently in a financial crisis. Many economists disagree with the definition of a free market.
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The triad economies have a total contribution of 84% of the world in FDI (UNCTAD 1991).With, World Bank releasing figures. United States having a GDP of $5,930,700,000,000 in the same year (World Bank). United States is undoubtedly the biggest economy and still is the biggest economy. The triad economies had already strong foundations. After the Second World War, they were able to have great advantages due to technological advances during the industrial revolution. Able to be market leaders in particular sectors such as IT, Finance and Manufacturing.
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It is the world's second largest economy by both nominal GDP and purchasing power parity (PPP) (Nypost: 2010) and a permanent member of the United Nations Security Council. After discussing China's communist historical background and its need for reform and growth, this essay will go in depth on the four major economic institutions that needed to be reformed in order for China to become a market economy. It will then go briefly into China joining the WTO, and so concluding with China's economic situation at present. Since the establishment of the Communist regime in 1949, Chinese economic policies and institutes have undergone a number of excessive modifications.
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Monetizing carbon credits - Carbon trading is an application of an emissions trading approach. Greenhouse gas emissions are capped and then markets are used to allocate the emissions among the group of regulated sources. The goal is to allow market mechan
Once approved, these units are termed Certified Emission Reductions, or CERs. The Protocol allows these projects to be constructed and credited in advance of the Kyoto trading period. The Kyoto Protocol : The protocol is an international agreement linked to the UNFCCC that sets binding targets for 37 industrialized countries and the EC for reducing GHG emissions. These targets amount to an average 5 per cent reduction from 1990 levels over the five-year period 2008-2012. The protocol was adopted in 1997 and entered into force in February 2005. It provides for three mechanisms that enable countries or operators in developed countries to acquire greenhouse gas reduction credit.
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Private businesses and capitalism did not exist. The People's Republic of China was self-closed throughout its first three decades. To propel the country towards a modern industrialized communist society, Mao Zedong instituted the Great Leap Forward in 1958 which concerned the development of agriculture and industry. He wanted China to compete with the USA, but his plan failed. In 1978, Deng Xiaoping established a Chinese economic reform which aimed to transform China's stagnant, impoverished planned economy into a market economy capable of generating strong economic growth. This reform was a success and has permitted China to become one of the most important countries in the world.
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Chandler stwierdza iz strategia to okreslenie gl�wnych, dlugofalowych cel�w firmy i przyjecie takich kierunk�w dzialania oraz taka alokacja zasob�w, kt�re sa konieczne dla zrealizowania cel�w [ Chandler, 1962, s.13 ]. Inne podejscie, zwracajace uwage na cechy egzogeniczne, ma H.Mintzberg, kt�ry definiuje strategie jako "spos�b ksztaltowania relacji miedzy organizacja i jej otoczeniem: sp�jnymi wzorcami w strumieniach decyzji organizacyjnych dotyczacych otoczenia" [ Mintzberg 1979, s.25]. Kompromisem wydaje sie byc definicja H. Kreikebauma: "Strategie w przedsiebiorstwie odzwierciedlaja spos�b, w jaki przedsiebiorstwo stosuje swoje obecnie istniejace i potencjalne sily, by sprostac zmianom zachodzacym w otoczeniu, realizujac przy tym wlasne cele".
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Health issues - there is still no definitive public opinion on the effect of mobile phone usage by people and also the possible health effects of the closeness of phone masts to schools. � Economical Factors ? Cost of licences - the cost of acquiring mobile phone licences is very high. ? 3G - the bidding war for 3G licences happened at the height of an economic boom and consequently the price paid for them was extreme. This with the cost of building the network will require a lot of revenue to break even, but if the price is too high, the standard will not take off.
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An investigative study of the pros and cons of custom duties as a source of government revenue on the Bahamian economy.
There are various forms of taxation that can be enforced by the government. However, in The Bahamas, the main form of taxation is tariffs. Most of the revenue that is obtained by the Bahamian government is collected through tourism, banking and tariffs. Tariffs, also known as custom duties are the main form of taxation imposed in The Bahamas. In this coursework my aims are to: 1. Examine taxation and the principles of taxation 2. Examine the functions of taxation 3. Examine the methods of taxation 4. Investigate the different forms of taxation 5.
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