Current Account College Essays Samples For Students

Introduction

Current account balance (CAB) of a country is the difference between the country’s savings and investments. A positive CAB measures the country’s savings abroad, while negative CAB measures the domestic investments financed by the savings of the foreigners. It is defined by the sum of the imports (both goods and services), plus the net investments outside the country, minus the exports (both goods and services). All the measurements are done in the domestic currency. It measures the country’s competitive strengths and also indicates the stability of the country’s currency.
In 1970s and early 1980s, there ...

Introduction

Governments and nonprofit organizations just like the commercial entities must prepare financial statements, but unlike the commercial entities whose accounting is for measuring profitability, the governments’ and nonprofit organizations’ accounting is for accountability (City of Cambridge Participatory Budgeting, 2016). The nonprofit and government agencies apply an accounting system known as fund accounting, where a fund is made up of several accounts each set apart for a particular purpose in agreement with law and regulations. Unlike the commercial entities which only have a single account called the general ledger for determination of profits, nonprofit and government agencies can have several ...

“Governments should paly active roles in managing short run instability caused by

Unemployment and inflation problems”
Introduction
The reverse of the above statement is true, whereby if governments do not play an active role in fighting inflation and unemployment, the adverse effects associated with these two economic eventualities do sometimes dissipate on their own. Therefore, this paper agrees with the above statement, but will also attempt to show that various economic solutions to the short run instability which is associated with unemployment and inflation can sometimes lead to a worsening of the situation at hand, rather than its subsequent improvements (Quiggin, 2012, pg.13).

Positive Sustainable Economic Growth

According to Mukesh (2015, pg.69), one of the ...

China

1. COUNTRY

We have chosen China as a country for analysis

2. RECOMMENDATION
We have decided to convert US dollar to Chinese yuan on May 24, 2016. The total cost in dollars according to this option is calculated further in question 9.
3. CHINESE ECONOMY OVERVIEW
China’s role in the international arena has been growing in the recent years. Apart from being the most populous country with over 1.3 billion people and one of the largest countries in the world by territory, it has been experiencing substantial economic development in the past decades (Naughton 3). China is the second largest economy in the world after the USA. ...

Q1. Identify two strategies based on the fiscal and monetary policy that would encourage people to spend money in order to create economic growth.
Fiscal and monetary policies are demand side policies that can be strategically employed for realizing economic growth by motivating consumers to spend money. It can be made possible by brining an increase in aggregate demand (AD) if the economy is passing through recession or growth is below the expected level (Pettinger, 2012).
Monetary policy can be the most randomly used tool for impacting economic activity. To encourage AD, the Central Bank of a country can ...

U.S. Trade Deficit
The US has been running the significant trade deficit over the last four decades. As a result, the country is the biggest debtor in the world with almost $3 trillion net debt. Obviously, this situation raises concerns among many researchers and policymakers, as they suggest that the long-run trade and current account deficits might make devastating effect on the growth performance. Actually, the issue is quite controversial and debatable: for example, other researches claim, that trade deficit is merely the result of the effective re-allocation of resources in the global economy and there is no consequences, ...

Mann (2002) outlined three approaches to explaining the account deficit in the USA. The first was the domestic perspective based on the country’s income and the product accounts. Mann (2002) opined that this point of view showed patterns of domestic savings as well as investments and how they reflect in trade and immediate account balances. A trade deficit would occur if the national spending went beyond the domestic production an indication that the country would be "spending beyond its means.”
The second perspective was on international trade. Under this approach, Mann (2002) described the current accounts based on ...

INDICATORS:

Income level: High Income
Population: 35.54 million (“Data” 2014)
GDP at market prices (Current US$): $1.785 trillion (“Data” 2014).

GDP per capita (current US$):

$50,230.8 (“Data” 2014).
GDP growth (annual %): 2.44 (“Data” 2014).
FDI Inflows: $59.6 billion in 2014 (“Trade Policy Review” 5).
FDI Outflows: $58.2 billion in 2014 (“Trade Policy Review” 5).

Balance of Payment:

Current account balance (BoP, current US $): (-) $ 37.47 billion (“Data” 2014).
Current account balance (% of GDP): (-)2.1% (“Data” 2014).
Import of goods and services (BoP, current US$) : $580.7 billion (“Data” 2014).
Exports of goods and services (BoP, current US$) : $564.6 billion (“Data” 2014).
...

Introduction

In 2008, the entire world was rocked by the biggest financial crisis since the Great Depression. The crisis first affected the entire financial system of the United States before then quickly spread globally. The casualties of the crisis included the whole investment banking industry of the US. Other casualties were the US largest insurance company, largest mortgage lender, among other firms in the financial services sector. The US auto industry was severely hit leading to loss of jobs. The US unemployment rate increased by 4.9% points from the third quarter of 2007 to the third quarter of 2009. The ...

Introduction

The changing economic situation and global trends often impact the European economies and Germany is not exempted. Germany has asserted its authority as one of the global economic powers with reduced cases of unemployment and growing economy. In the past decade, German took major steps towards changing the labor market in what turned to be labor reforms. The radical labor market alterations have since yielded the lowest form of unemployment. Economic growth remains critical to every nation’s progress. While economic growth determines the living standards of every member of the nation, the contribution of the citizens towards nation ...

This paper analyzes the factors that determine the long run economic growth and how each factor affects the income growth of per-capita of a country. For this paper, economic growth is taken to mean an increase in a country’s standard of living over a given period. Factors relating to economic growth in the long-run basically focus on those factors which are measured due to the change in per-capita Gross Domestic Product (GDP). Various approaches can be used to explain these factors, for instance, the production function approach. Basically, it organizes the growth in terms of as an aggregate production function. Production ...

The recent Brexit vote has brought about a number if tensions associated with membership in the European Union and a common European economic area. It has also put into serious question the European Project started in the post-World War II era. Please argue for or against Britain being a member of the European Union. Be sure to cover five broad areas of disagreement economics (Benefits/ Costs), political (Benefits/ Costs), Labor market (who wins? Who lose), social (costs/ benefits), and issue ofan identify?
Britain a second-largest economy after Germany is a member of the European Union, has taken up a ...

On May 4, 2016, the New York Times printed an article by Paul Krugman in which he posited his opinion on Real Exchange Rates and European Adjustment. The author pondered initially what the correlation between real exchange rates and trade adjustment would look like. His question arises from common criticism he hears, that devaluation of the local currency either has not worked or is not needed. Krugman then shows a graph (see Appendix) which clearly displays that Ireland, Greece, Portugal and Spain (countries that have experienced currency devaluation) have experienced a higher change in the current account than European ...

Introduction

The term principles of economics as will be used in this study refer to unique techniques and notions that are often utilized by economists in adjusting economic activities. The term is often associated with an economy that designates proficient uses of resources by societies with a rationale to achieve their set goals. A shared understanding of the concept in any society is that irrespective of the geographical position where the concepts are applied, the use of the principles of economics applies in a similar way whatsoever. However, other researchers such as Crawley, (2015) assert that economic principles refer to ...

Evaluation Methods

The fluctuation in oil places has a direct impact on the economy of oil importing nations given that they highly rely on the imported crude oil to run most of their industries. To be specific, the change in oil prices directly affects the economic environment of India in more than many ways. Timilsina asserts that the techniques for evaluating the macroeconomic environment include examination of current account balance, evaluation of the fiscal deficit and oil subsidy, analysis of the rupee exchange rate and inflation rate analysis (2015).

Variables to be evaluated

India imports an estimate of 80 percent of its energy resources. It ...