Significant increases in the national debt, with no relief or plans to deal with the problem, and its effect on the economy An increase in national budget, with no relief or plans to deal with the problem, will result in a deficit, or more spending with less national input. Repercussions for a budget deficit can mean more borrowings for the national government from the private sector, such as the selling of bonds or gilts to the private sector. The debate over the budget deficit has two opposing views. The first one is that the deficit is destructive to the ...
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Saudi Arabia is the world's largest exporter or crude oil, with the country exporting 68% the product to the Asian market. The nation enjoys a market share of 40%, enabling the government to fund a significant proportion of the budget from oil revenue. Consequently, Saudi Arabia was able to accumulate vast financial reserves in the years preceding the current low oil-prices when the price per barrel stood at $120 (Baumeister, & Kilian, 2016). However, the state of affairs has changed in the last couple of years following the drastic decline in oil prices. As a result, the country has experienced ...
Introduction
The rationale of the above paper is to outline the difference amid budget deficit and national debt while at the same time indicating their significance. The paper seeks to justify as to whether different governments in the global setting should operate with a balanced budget or not. In the article, budget deficit is defined as the amounts of cash spend in excess by the government over the government income generated from tax revenue during a set time as part of government expenditure (Furgang & Furgang, 2012). The shortfall in tax revenue is therefore compensated through borrowing or currency emission as ...
National debts are caused by budget deficits that are as a result of spending more than what is received from taxes. This results in harsh economic times for countries as they strive to adjust to the national debts that occur during the period. Several theories have been put in place to argue and relate to the issue concerning national debt. Keynesian economists bring forth arguments that strive to balance the budgets and appropriate times to increase the deficit. Economist John Keynes was against the idea that the state was in need of a balanced budget (Tobin 1975). His argument ...
Introduction
For many years, financial crises have been pervasive. According to Collardi (2012), the frequency of occurrence of financial crises in the recent decades has doubled the occurrence during the Bretton Woods Period and the Gold Standard Era. Nevertheless, the occurrence of the 2007-2008 financial crisis came as a great surprise to many individuals. Initially, the crisis was seen as difficulties that were being experienced in the United States subprime mortgage market. This, however, spilled rapidly to the financial markets before spilling over to the real economy. This paper discusses the causes of the financial crisis and the measures that ...
For any finished product to reach the final consumer, a set of operations has to be coordinated. These logistics sees the transformation of goods and services from the manufacturer or producer to the wholesaler, the retailer and finally to the consumer completing a chain that involves sourcing, transportation, and storage among the main activities to ensure that the inventory reaches the intended consumer. Despite concerted by the dealers to make this trade effective, some external forces influenced in one way or another this activity. Politics, internal or global directly affects commerce. Every major security or political move registers significant ...