Essays on Balance Of Payments

International finance essay question

Introduction In 2016, Britain shocked the world by voting to exit the EU, China, and other growing markets remained uncertain, with the cost of products still in fall. However, the U.S economy seemed bright by comparison (Laura, & Rafael, 2016). Although, the U.S Federal Reserve kept postponing plans to increase interest rates in spite of the unemployment number falling to 4.9%.

Why forwards is an unbiased predictor of future spot rates?

As growth prospects are analyzed for the global economy, keeping insight the duty of the U.S current account deficit, it becomes difficult to predict the future spot rates. Moreover, the U.S. commercial counterparts on current account deficits continued with ...

ANALYSIS AND FINDINGS

3. Analysis and Findings 3.1. Introduction 3.2. Analytical Tool – Regression Multiple regressions are performed to assess the relationship of single independent variable i.e. crude oil prices (on Brent benchmarking) with all four dependent variables including Indian GDP growth, Indian Balance of Payments, Exchange rate between INR and USD, and the inflation rate in India. 3.3. Measures for Independent Variable – Crude Oil Price Crude oil is the most commonly traded commodity in the international market. Crude oil price stands independent variable in the underlying study, and same is considered for this purpose of analysis. The Periodic time frame for change ...

Describe portfolio investments and FDI. How do they differ and why is it important to distinguish between them?

Foreign portfolio investments (FPI) and foreign direct investments (FDI) are two commonly used and at times easily confused phrases. Foreign portfolio investments refer to investments in financial assets in a foreign country. These financial instruments include instruments like stocks and bonds. Investors love to invest in such instruments in order to diversify and hedge their portfolios. For example, Brexit has caused European banks to shed their values significantly and some international fund managers have already started purchasing these banks to diversify their portfolio and take advantage of attractive stock valuations. On the other hand, foreign direct investment refers to ...

1. Introduction This section defines a systematic approach using tools and techniques of research to carry out a research project (Jha, 2008; Kothari, 2004; Newman & Benz, 1998). 2. Research Approach The research aims to base the underlying study on quantitative approach for data collection. Quantitative methods will be utilized for the collection of theoretical data? A statistical analysis (linear regression analysis) will be conducted to achieve this purpose with the help of the secondary quantitative data relating to chosen economic indicators in India. Past studies can also have some numeric information and inference as well. This way, the study ...

Report for McDonalds

Italy and Russia

Figure 1: GDP per Capita at Constant Prices Figure 2: GDP Growth (Annual %) Figure 3: Inflation Rate CPI Figure 4: Unemployment Rates Figure 5: Policy Interest Rate (%) Figure 6: Russia Interest Rate (%) Figure 7: Current Account Balance in Italy (% of GDP) Figure 8: Current Account Balance in Russia (% of GDP) Figure 9: Russia Interest Rate

List of Tables

BUSINESS OVERVIEW McDonald’s Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across 36,538 outlets. Founded in 1955 by Ray Kroc in Des Plaines, Illinois, 80% of the ...

Executive Summary

This section looks into the inception of Disney Store in South Korea, which is the country of interest. Disney Store is a retail outlet that specializes in sales of merchandise that are unique to Disney. Disney Store traces its roots back in 1987, in Glendale, California. A country analysis of South Korea was done with detailed information being noted as far as population, GDP, per capita income, aesthetics, political system, legal system and the living conditions in the country just to name a few of the areas tackled. This was followed by an economic analysis of South Korea where ...

McDonalds has come to create a network in both Italy and Russia. Italy seems to have better balance of payment and government balance indices, interest rate, trade policy instruments and not needing to lose over currency rates while dealing with Eurozone importers, and even unemployment and GDP growth rates. However, unemployment and the lack of growth indicating poor economic performance and social welfare situation may advantage the brand in Russia through better low-cost labor availability and consumer reorientation on less expensive restaurant offerings. Overall, neither of the country is the ideal market for the brand, yet both have their ...

Abstract

Do the imbalances in current accounts still matter in today’s deep global financial markets that exhibit two-way gross economic flows that dwarf the new outcomes provided by current accounts? Contrasting the adult perception of the world and complete markets, extreme current account imbalances indicate severe financial and macroeconomic stresses, particularly as was the case in the mid-2000s. The increasingly massive valuation differences in nations’ net global investment standards and positions, as well as risk allocations, cannot be relied upon to offset the variations in regional wealth systematically as implied in the current accounts. The same conditions that warrant ...

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. ...

“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 ...

At the termination of the American Revolution, Alexander Hamilton firmly believed in a strong centralized government. He had worked as a major in the American army during this era of revolution, where he noted detrimental consequences of a weak federal authority. However, the majority of the Americans were skeptical and doubted the increased centralization of government due to various reasons. Hamilton’s structure did not consider democracy; instead, it held that the United States’ government should be modeled on the British method of governance where voters could not be given any power to take part in the decision-making process ...

Introduction

The economy of Japan has seen a downturn with the economic crisis in the year 2008. Every country has been faced with the consequences that resulted in different impacts. The paper will present the economic indicators and overall economic situations in the Japan. The background of the country’s economic policies will be present, with international and regional trade agreements. The focus will be on presenting the specific economic data along with the definitions and interpretations. Further on, the current state of the country’s economy will be examined in the light of trade, fiscal and monetary policy.

Background on the country and recent economic policies

Japan ...

Q1. An overview of the selected company (history, financial status, etc.) Chrysler is the recognized as the third largest Detroit’s auto firms around the globe. The invention of the Chrysler can be traced from the Maxwell Motor Company that was formed in 1913. In the early 1920s, the company faced financial constraints, and they sold their rights to Walter P. Chrysler. I think that Walter approach to revitalizing the company was unique, and this is the reason the company bounced back to reign the automobile market. Chrysler is presumed as the pioneer to convince the firms to manufacture ...

Specifications of today's processes of the globalization in the world economy have a significant impact on the economic growth of the developing countries. Increased globalization is manifested in the fact that foreign capital has become an important component of any economy. International capital flows are carried out at different levels of the economy, as well as different forms of capital. These forms are international loans, foreign direct investment and foreign portfolio investment. However, it appears that foreign direct investment is the best form of raising capital. The purpose of this article is to demonstrate the role of a foreign ...

International Monetary System  

Introduction The exchange rate has a significant impact on foreign trade of the country, because the competitiveness of country’s products on world markets largely depends on the level of exchange rate. The exchange rate affects the direction of international capital flows. The decision about investing of the national capital in assets of any country is taken on the basis of the expected real return on invested capital, which depends on the interest rate and the expected changes in the exchange rate (Brigham and Houston, 2011). The currency parity is at the heart rates of convertible currencies. However, the ...

IMF Role and its Determination in Exchange Rate Variation

It is imperative to appreciate that managers need to understand how exchange-rate changes impact on business decisions and the different operations that are carried out in an organization. Moreover, it is also important to appreciate the meaning of exchange rate as the cumulative number of units that one currency is exchanged for another. It is for this significant reason that administrators of any organization need to understand the different issues that are taken into consideration by the government in setting the exchange rate and factors behind the exchange rate variation so as to anticipate effectively for the change. The ...

An essay exploring the effect of the macroeconomic environment in Italy and Russia as it relates to Proctor and Gamble’s international economic activity. Procter and Gamble [P&G] is the world’s top producer of household products. P&G manufactures a wide range of products from toilet paper and sanitary products to food and cleaners. It can be said that the company produces everything a consumer could need to stock their homes comfortably. June 2014, P&G reported over eighty-three million dollars in revenues during that fiscal year (MarketLine, 2015). P&G’s headquarters are located in Cincinnati, Ohio but the massive ...

The Reasons Explaining Why Governments are involved in Tourism Development

“The thing about tourism is that the reality of a place is quite different from the mythology of it.” –Martin Parr The above quotation by Martin Parr illustrates one of the negative attributes of tourism, which is to sell a fantastic presentation of a country rather than the real aspects of it. However, it should be understood that this is done to market and brand the country as an attractive tourism product. However, tourism is not a source of income that can be relied on throughout the year by governments. This is because tourism relies on specific seasons and ...

It is known that Greece has constant problems that arise within its economic system, leading to social and political disruptions. In order to understand the core problems lying behind its crises we can use different statistical statements and sources, but one of the best options is the Balance of Payments. It characterizes the general development of foreign trade, the level of production, rate of employment and consumption. Its figures let us realize the ways the country uses to bring the foreign investments and the instruments it employs to cover its foreign debt. Overall, the BOP is the prior source ...

Intellectual property refers to the works or inventions that are as a result of creativity, including a manuscript or a design, to which one has exclusive rights or for which one may apply for a patent, trademark or copyright. If a person or organization registers their original works such as inventions, ideas, innovations, writings and artistic performances among many others, with the relevant government and they own the exclusive rights for a particular period of time, this is referred to as intellectual property.

Intellectual property has become a major issue in recent rounds of international trade negotiations because of a number of factors. One, the costs ...

International trade is the trade that occurs between a country and its trade partners which are foreign countries. Countries practice international trade for various reasons such as to get foreign exchange, to get goods and services that are not found in the home country and so on. The United States of America carries out international trade with many countries worldwide. This involves exporting and importing goods and services to and from these countries. Foreign exchange rates are the rates at which the ...

Slide 1:

The monetary policy actions by the Bank of England determines the amount the bank will charge as interest when it lends to other banks. This interest rate is vital in determining the rates at which banks will lend to their customers such as businesses and institutions.

If the bank of England charges higher rates of interest to banks, this obviously increases the costs of these loans and in retrospect, the banks must raise their lending rates to customers. Higher lending rates means few customers will be willing to borrow from banks and may switch to other lending institutions ...

Globalization entails the internal integration that arises due to exchange of ideas, products, worldviews, and other aspects of culture in a nation. The United States government has shown tremendous strengths, aiming at increasing the output and the productivity of the nation. The concern of the U.S government is on improving the free-trade environment between the United States and other countries (Bertho et al 76). Improving the free-trade environment will enhance the draining of jobs from the economy of the U.S, to other countries in which the workers command low remuneration. Globalization includes the flow of economic activity in two directions. ...

1. Critically evaluate the following suggestion: “If the price elasticity of demand for food is low, therefore if you own a restaurant, you can charge higher price to increase revenue”.

Consumers’ sensitivity to price is known as the price elasticity of demand. Simply put, it measures the degree of responsiveness of consumers to a given change in price. A good with an elastic demand will have a value greater than 1 and will experience that people are very sensitive to a given change in price. Products with an inelastic demand will find that even if price increases by a small amount, the quantity ...

Discuss the measures that a government can take to improve the balance of trade in the short- term

A depreciation in the value of currency exchange of a country should help boost oversees’ demand for U.S. exports because American firms will be able to supply more cheaply internationally (Keeler, 2007). A country can devalue its currency by a large margin in one or two installments in quick successions so that foreigners can find goods and services of a country cheaper to buy and boost exports rapidly.

Another method that a government can use to improve balance of trade over the short term is to reduce demand in the economy thereby reducing consumer spending in the economy. The government can use fiscal ...

Argentina is located in the southeastern part of South America. Its neighboring countries are Brazil, Paraguay, Chile and Uruguay. The size in square kilometers of Argentina is 2,736, 690.00. In 2012, the recorded population of people in Argentina was 41.3 million. Argentina is a federal presidential representative democratic Republic. The President of Argentina is The head of Government and Head of State. Legislative power is vested in the Argentine National Congress and the president. The Judiciary in Argentina is independent of the Legislature and the Executive. The country holds regular elections on n a multi-party system. The Head of Government ...

Every nation has independence to choose, which exchange rate system it will follow. The choice for selecting a suitable exchange rate ranges from a flexible exchange rate or fixed exchange rate system. Under floating exchange rate system, the value of the currency is decided by market forces, while, under fixed exchange rate systems, the currency of the country is pegged against some standard of value. The choice of exchange rate is a tough task and depends significantly on the freedom of capital to flow in and out of the country. However, one negative effect of allowing the free capital flows is that ...

Summary of Main Issues Discussed within the Case Study

Further, the author talks about OPT contracts and how they have been beneficial to countries located within Europe. OPT contracts refer to agreements through which firms within the Euro Zone are protected from stiff competition from other regions such as China due to the production costs differential. One of the privileges they enjoy is the freedom to export temporarily. One of the countries that have gained from OPT agreements is Romania, which is one of the poorest countries in Western Europe. This is because OPT agreements led to a significant increase in the orders made from Europe. This in turn ...

ITERNATIONAL MONETARY SYSTEMS

Abstract The purpose of this paper was to study three main monetary systems: the Gold Standard, the Bretton Woods, and post-Bretton Woods. International monetary system is a set of methods, tools and intergovernmental bodies, with the help of which the mutual payment and settlement turnover function within the global economy. There existed and succeeded each other three international monetary system. The first one, the Gold standard, was based on gold which was the main form of money. National currencies were pegged to gold, and the gold content of the currencies was correlated with each other at a fixed exchange ...

Economics 15: Research paper

Markets – late 19th Century/early 20th Century Monopoly, Oligopoly and Trusts The late 19th - early 20th century was the time of rapid development of American industry. In 1895, the majority of industries were competitive with no dominating companies. As a result of intense competition, many weak and small companies “disappeared”. Large and successful capitalistic associations based primarily on a system of participation got the name of trusts and corporations. One after another, the industries occurred in the hands of small groups of entrepreneurs, who used any methods to achieve complete control over these sectors of the economy. By 1904, ...

What is the structural adjustment?

Structural Adjustment Programs were instituted to offer countries in need, the opportunity to avail loans from the International Monetary Fund or the World Bank. In place since the first half of the 1980s as an economic policy as such developing countries affiliated with World Bank and International Monetary Fund (IMF) can benefit from it, by the provision of loans qualified on the espousal of such policies(W.H.O, 2014). Elaborating, the loans are associated with circumstances akin to substantial policy reforms, the framework of which must be complied prior to availing the loan (Abugre, 2000).It was intended atevolving the ...

Role of China in US Debt Crisis

Article Summary James Dorn (2013) has described the pressures within China that force it to hold a substantial proportion of US debt. Dorn proposes measures to ease the internal fiscal pressures of China so that global financial stability and harmony can follow (Dorn). China holds 8.4 % of the US gross public debt. The Chinese holdings of US Treasury bonds are, however, only the consequence US debt, not the cause. The real cause of US debt is overspending and excessive entitlements in Medicaid and Medicare. However, the financial repression of the Chinese economy has had an impact on the ...

Introduction

In order to critically analyze the theories surrounding the development of tourism, it is crucial that this paper provide a brief picture of the situation of tourism sector in developing states. For the past few centuries, the definition of tourism as well as travel has evolved tremendously (Cohen 2010, p.5). For decades, traveling has been known to be a simple and temporary journey that focuses on leisure, pleasure and recreational reasons, in other terms, a luxury item. The 20th Century proved this wrong by ushering in a paradigm shift in regard to tourism. The transition has been found to have taken move between ...

Development Theory

The development theory failed during 1790s. There are several reasons or the failure of the developmental theory. These reasons include increase in the indebtedness, the return of funds to the United States immediately after second war with England, and increase in the debt in the war year. The debt has impacted the economy of the United States badly, and the purpose of economic development remained behind. The developmental theory in which the economic growth and development was emphasized, however, could not be implemented due to the poor condition of the economy. In 1790s, most of the economies have shown ...

Introduction

Initially, wealth can be defined as the entirety of abundant and valuable resources which may belong to an individual, organization of society. In modern perception, stipulates that the presence of ample economic wealth is the significance the wellbeing of the personalities. This is because it creates a status of wellbeing of the people (Friedman, 1982). However, any significant wealth of any country is represented by the presence of any capital be it human or financial where qualitative and quantitative analysis is deemed to give a detailed composition of the country’s wealth (Backhouse & Medema, 2009). Any country that has a stable ...

Application of Trade Manipulating Instruments in the Year 2013/2014

Countries have adopted various trade regulatory instruments in order to ensure that there trade flourishes in the international market. Essentially, in the international market it is difficult for all countries to subscribe to free trade because each country has interests to accomplish. Coupled with the financial challenges and the desire to achieve national development, most countries seem to have adopted the protectionism as a means of surviving in the wavy unbalanced international market. For instance, in Africa, Nigeria has been in the forefront of protectionism especially targeted to limit agricultural imports from other countries. Effective from the year 2013, the ...

Answer 1

Corporate bonds can be defined as the bonds issued by corporations to raise their capital for their daily operations. Different countries have different rules on the way corporate bonds are auctioned to the public. Even though there are some similarities. In America the par value of shares is not expected to be below $1,000, this is not so in foreign nations. In USA, there is transparency in the sale of the bonds that are not always so in other nations. Though there are these differences, there are also similarities such as in all nations shares are entitled to ...

Gross Domestic Product per Capita

This economic term refers to the overall national output of a country divided by the total number of people in the country. This is expressed in US dollars for every person for the year for which the data used is published. The gross national product per capita of Egypt has increased exponentially over the years since 1990. The graph below shows the data for gross domestic product per capita since the year 2004.

Economic growth

The economic growth of a country is measured through the consideration of many factors. The economy of a country also takes many forms inspired by the ideals of political ...

Objective of the paper: The paper seeks to establish what impact have been seen in the different countries, both developed as well as developing, of the global recession and economic turmoil which has been in place for over two years now. In general, the paper seeks to analyze the situation from the point of view of producers, consumers, employment, debt and the steps that the countries have been taking to pump money back into the economy and bring it out of recession. Since each economy is different from the others, it would be interesting to see different measures that ...

Introduction

International Monetary Fund and World Bank are two well-reputed financial institutions that try to ensure that the global economy is in healthy state and the economic disparity among people and nations are reduced as much as possible. The basic goals of these institutions are focused around developing nations. Developing nations across the world have many basic problems impeding their progress. Many people in those countries are ridden with problems like the lack of access to clean water, lack of sanitation facilities, no access to primary and secondary education, disparity among girl and boy child, lack of health facilities and ...

Executive Summary

Pettis observes the trade imbalance in the countries' balance of payments. Some developed countries have a large amount of debt because they import much more than they export while some other developed countries have large surpluses in their balance of payments. This trade imbalance in the balance of payments is not sustainable according to him. While China continues to make massive investments by using the advantage of cheap labor in the country and Japan continues fighting against stagnation, U.S. and Europe has important problems of producing and growing. In a world like that all the countries are facing structural problems and ...

[Insert Name] [Insert ]

Does Trade with Low-Wage Countries Cause a Trade Deficit in the High-Wage Country? The United States Business and Industry Council claims in their website americaneconomicalert.org that the US economy is in a manufacturing emergency (USBIC To save American Manufacturing 1). They claim that the reliance on imports from third world countries with lower wages is threatening the survival of the manufacturing sector in the country. This perspective can be assessed using economic analysis. The expenditure approach gives a mathematical formula for measuring the real GDP of an economy. Real GDP is the sum ...

Introduction

The economic rationale for aid is to boost rate of growth in the developing nations. Ghana is a developing country that has relied on economic aid from independence. Aid from the international financial institutions are mainly invested which is fundamental aspect in enhancing growth. Ghana has been a regular recipient of these funds since domestic funds are not enough to meet investments desires and also the challenge in balance of payments where imports are more expensive than exports. As such, country needs to borrow funds to cover the deficit. Foreign aid has been used to finance various public services that ...

In any economy, several tools can be used to control the amount of money in circulation. The most common tools of controlling money in circulation in any economy are in form of policies like monetary and fiscal policies. Monetary policy addresses the issue of money supplied in the economy by either expansionary or contractionary policies which regulate the amount of money in circulation (Michael 2008.). Since money can be claimed to be the main factor that dictates employment, inflation and of the economy related issues in a region, its supply has direct impact on the mentioned spheres of the ...

David Ricardo is renown economist who advocated for international trade based on comparative advantage of a country. The main tenets of his discussion were to disagree with Adam Smith tenets of concentration of wealth within a country. Ricardo mainly advocated for a free trade where goods and services were allowed to flow from one country to another but on the assumption that the level of technology is constant (Peach). Through the concept of comparative advantage, he suggested that trade between two countries has a positive impact on their real incomes. He compared this to the simple idea of evolution via natural selection. This ...

Introduction

The budget deficit and the amount of public debt is an important indicator of an economy. This area of concern has traditionally received much attention. The budget process involves the balancing of public revenues and expenditures. Budget imbalance means quantitative disparity between income and expenditure budget. The excess of expenditure over budget revenues is called the “budget deficit.” The unbalanced budget could lead to the emergence of a surplus, ie excess of income over the expenditure. However, in practice, almost all countries now, there is significant scope for excess government expenditure over income. The result is a rapid increase in budget ...

Introduction

Economic growth and policies are important for a nation like China which is considered the second most powerful nation in the world. When such an economy faces slow growth despite potential investments, there is a concern amongst its policy makers. This report discusses how China’s economists are planning to increase their economic growth as well as in depth analysis of economic concepts discussed in the newspaper article that has been chosen.

Article’s Summary

World’s second – largest economy, China faces an export slowdown and the reason for this situation is said to be Europe’s debt crisis. Considering the export slowdown, Chinese ...

Introduction

The currency of a nation is used as a medium of exchange and reference in all domestic financial transactions of a country. With globalisation and integration of economies, international business has become a common phenomenon. International business requires buying, selling and exchange of money between two nations. Since, economies across the world have their own currencies and value of each of these currencies vary at any given point in time, relative value of one currency with respect to another becomes an important aspect during international financial transactions. This has concerted international focus on the concept of foreign exchange, which deals with the relative ...

After the financial crisis which peaked in the year 2008, the United States economy has seen several changes. One of the changes has been on the international economic activities. There have been notable changes in the balance of trade and the international capital flows. During the financial crisis, the level of imports reduced at a faster rate compared to exports, this resulted in almost a surplus balance of payment.

However, with the crisis over, the imports for the United States have recovered significantly resulting in a high level of imports compared to exports. This has resulted in a deficit balance of payments. The ...

International Finance

A floating currency refers to a system of currency valuation where by the exchange rate of a country’s currency depends on the supply and demand of that currency relative to foreign currencies. Floating rates of exchange usually vary freely because they are determined by trade activities in the forex market. A floating system of currency valuation is the complete opposite of the fixed rate of exchange. The fixed rate of exchange regime is where by the rate of exchanging the currency in relation to other foreign currencies is set at a constant rate. Countries can either choose the fixed rate ...

Abstract

Multilateral organizations, such the International Monetary Fund, play a major role in our society, working in the areas of technical and financial assistance through structural adjustments in developing countries, as well as funding and sector-specific policy guidance. This domain has an inherent dynamism, and must be understood by analyzing the historical trajectory of these organizations and understanding that their actions are guided by the ideology that sustains the society we live in, which is rooted in the capitalist mode of production. This led me to ask the simple question: to what extant has the IMF been a force for good in ...

Based on the economic state of affairs in Greece, the Greek government in collaboration with international economic organizations, especially the International Monetary Fund (IMF), is in the verge of implementing various structural revenue-side and spending-side economic reforms. Besides, the government, alongside IMF strongly advocate for the mass privatization program to help open investment opportunities, increase level of funds and to boost the country’s growth potential. The IMF is a financial institution recognized internationally for its promotion of exchange rate and monetary stabilization. Specifically, the International Monetary Fund has advocated for the following to help stabilize Greece exchange rate and ...

Task

Compare the corporate form of organization with the sole proprietorship and the partnership.

Describe the principles dealing with ways of creating value and economic efficiency

The major principles include comparative advantage and absolute advantage. Comparative advantage is the ability of a country to produce a particular commodity in a more efficient way than other countries. Countries that have modern machinery are likely to produce machine intensive products than other countries. Absolute advantage is the ability of a county to be able to produce a particular commodity that other countries do not produce. For instance, a country that is endowed with a unique mineral that is not produced by other countries can be said to have absolute advantage ...

Introduction

Multinational Corporations are enterprises that manage the production or the delivery of services in more than one country. Multinational Corporations can also be referred to as International Corporations. According to the International Labor Organization, MNCs can be referred to as the Corporations that have their management headquarters in one country and then operate in several other countries. There are several multinational corporations across the world operating in different sectors of the economy. Some Multinational corporations have huge budgets that exceed the GDP of some nations. Big MNCs have powerful influence in the local economies and also play a very important ...

Introduction

Multilateral trade agreements are agreements on trade performed between many countries at one time. It is usually very difficult to negotiate but once they go through, they form a very powerful base. Once a multilateral trade has been signed, all parties that have signed the agreement are treated equally (Choueiri, 2005). This is usually a very big advantage especially to the poorer countries which are usually less competitive in nature. There are several multilateral trade agreements which have been formed. In the recent past, Doha round table multilateral trade agreements is one of the biggest agreements formed which were between all the ...

The statistics, published today in the UK, is disappointing. Final figures for GDP in the first quarter was worse initial estimates and significantly below forecasts (Appendix 1). According to the ONS (Office of National Statistics), the economy has lost in the first quarter of this year about 2,4% (previously reported decline of 1.9%), while the decline for the first quarter of last year (2010) was amounted to 4,9% against the earlier estimate of 4.1%. The starting point of a recession is now called the second quarter of 2008, whereas previously talked about the zero dynamics in this period. ...