Introduction Business outsourcing is a term that is yet to receive a standard definition. In its simplest understanding, it refers to seeking an external help in running business activities. The services offered to a given firm are paid for in monetary form upon agreed terms and conditions. The development of...
European integration Economic and monetary union is important for the future unity of European integration (Lavrač& Grauwe 1999). Monetary union is central in coordinating financial aid to Eastern European countries as well as the rest of the world through structured funds. Economies of countries that are less wealthy such as...
Renewable energy resources are continually used and have no likelihood of running out; they can be used over and over. These resources include solar energy, power from the wind, water power, waves, and tides. Naturally, they have a limited flow which can serve for a very long time. Solar energy...
Culture refers to norms and value systems of any society or a country on a larger scale or a set of shared attitudes, values and practices that are unique to an institution, organization or even a group and it impacts on behaviour and beliefs of those it forms part. Culture...
Adam Smith’s magnum opus “An Inquiry into the causes of the wealth of nations” is a work that encompasses economics and moral sentiments that are concerned with the political and social aspects of the creation of wealth and the relative richness of one nation over the other. The book is...
Introduction The Federal Reserve System is the highest financial institution that governs the country’s financial dealings. It is charged with among many other roles regulating money supply plus dealing with the issues of inflation though it can only put measures to combat it but has no capacity to directly influence...
Introduction In the modern world, it is necessary for a state to maintain close contact relation with the rest of the world. This is more important in the context of the economy. Without a proper network of the economic system with the rest of the global system, it is not...
Introduction The situation in the global energy sector is just unbearable; in fact to be honest the situation is one that almost calls for something like divine intervention if the poor folks of the world today are to be protected from the skyrocketing fuel prices. The grim situation can be...
Introduction To begin with it is necessary to mention that people choose to save their money because of the possibility to gain interests for saving money. Some prefer their money to work and benefit, the others just want to be sure that their finances will be kept safe and inflation...
The current debate on the purview and the content of the canons of international law pertaining to the treatment of corporate entities has mostly concentrated on the deprival of such property. Notable illustrations of diplomatic protection by home states for their nationals deal with the cases when the later are...
Background There are a number of reasons why companies may want to go global. First, it is a way of expanding their market without branching into different kinds of businesses. Second, it allows companies to make economically beneficial alliances in order to maximize their own business, such as outsourcing labor...
When “sustainable” development went mainstream, it became an economic and corporate mantra that even governments supported. The policies that went with sustainability, however, became a challenge with deep-rooted problems that global corporations and even smaller organizations need to address from top to bottom. And as consumers and traders themselves feel...
Introduction Globalization influences the international business to a greater extent. Globalization is used in a context such as processes, perspective and more so in outcomes. It is expressed in various dimensions e.g. from political, economical and socio cultural points of view. (Gultang, 1997). The study of globalization and internationalization examines...
In the recent governance concerns in the Chinese government, inflation is the subject for discussion as the monthly inflation is setting records recently in the economic arena (Harper 2008). This is evident that the CPI (Consumer Price Index) rose by 8.7 percent in February 2008 (Song Garmut 2006), which is...
Introduction The paper aims at explaining two important terms associated with international trade that is free trade and fair trade. Furthermore the paper is also intended to discuss the “fairness of free trade” by analyzing the international trade operations and systems by judging their fairness. The philosophies of fair trade...
The classical school of political economy emerged in the period of origin and approval of the capitalist mode of production. The foundations of market economic relations developed further in the world’s wealthiest countries. It became evident that state intervention in economic activities was not a panacea for overcoming obstacles to...
Introduction This paper would seek to provide an economic understanding –as to the reasons regarding the trends about the government expenditure. The paper would provide a trend analysis of the way Arab governments have spend their funds in order to provide goods and services and as to why the trends...
The creation of the European Economic and Monetary Union, or EMU, has often been called the biggest change in the international monetary system since the collapse of the Bretton-woods system in the early 1970s. The creation of an economic and monetary union among countries representing a GDP almost as large...
Overview of labor relations Origin and purposes of trade unions The history of labor relations and collective bargaining can be traced back to the medieval times in the western world. The main workers of these times were the craftsmen who were involved in various handicraft occupations, from iron smelting to...
Introduction Globalization is whereby local and regional trends are changed into worldwide trends. It is marked by the unification of the world’s people into a single cultural setting and is capable of functioning together. It involves the integration of economic, socio-cultural, political and technological know how throughout the world. It...
The NIKE, Inc., which is engaged in the manufacture and sale of sports shoes as the main products, as well as related sports accessories and clothing, is the largest company that supplies sports goods worldwide. The company recognizes that it occupies a stable place in the market and its competitiveness...
Abstract This paper discusses the impact and importance of the euro on the European economy. First, it looks at the European economy and then forces on the formation of the European Union as a common. The paper explains the circumstance leading to its formation and the road to its formation....
Introduction Consumer needs satisfaction has continued to grow over the past years. It is within the companies’ main agenda to satisfy these needs. With the growing competition, companies must work extra hard to fight for consumers’ limited resources. Companies attain this by implementing techniques, which can draw the consumer’s attention...
Introduction Globalization, integration, cooperation… All these words are suggesting the idea of unity; they represent all people of the world as one global community, one friendly family. It sounds very optimistic, however, in this global unity and happiness, there is one very disturbing thing. How can we be one family...
Introduction What is a dollar? A dollar is the currency that is used as a medium of exchange in the United States of America. U.S. dollar has been used as the official currency of some other countries like Zimbabwe (due to high inflation).100 cents equals one dollar. (www.businessweek.com).The world currency...
Introduction In this era of globalization, world economics affects every country and its economic scenario. The policies for international trade that are adopted by the country would decide on the success or failure of its industries. It is, therefore, very important that the country spends a considerable amount of time...
Introduction The trade relationship between Japan and The United States dates back almost 200 years with many fruitless attempts to establish trade before that. The first American explorations began not long after America gained its dependence on Great Britain. However, it was not until 1848 when Captain James Glynn arrived...
Executive Summary The availability of different methods of hedging against currency risks provides companies with the flexibility of choosing the ones that meet their needs best. The most common methods in the global hedging business include Euro bank account, currency forward contract, futures contract, currency options. The availability of several...
Introduction The sub prime lending is the practice of making loans to borrowers who do not quality for market interest rates due to factors that are considered such a income levels which are low, the size of down payment, there credit history and the employment status. Such people can be...
The opportunity and even necessity of an increase in the number of members of the European integration association have been incorporated in the idea and fixed in the Roman contract of 1957. As the former chancellor of Germany Helmut Schmidt has declared in one of the interviews, “the fact is...
Trade is one of the oldest activities of man since time immemorial. For many years, man has never been able to survive and stay as an independent unit. There has been the interaction of people from diverse parts of the world, as a result of diverse wealth and commodity distribution....
Introduction There is a strong relationship between the risk associated with a project and its net present value. Adequate and reasonable calculation of the net present value of an investment is possible only with an appropriate assessment of risk. Incorrect consideration of risk factors and wrong calculation of potential losses...
Research strategy The research strategy involves gaining an understanding of problems and applying materials and design expertise to provide solutions. Whilst this approach has been extremely successful and will remain a primary route for product development, increasingly seeking solutions based on active repair where stimulus can enhance or accelerate the...
Summary: goals of monetary policy, history of monetary policy in the U.S. economy. Inflation targeting, maintaining macroeconomic stability: assuring policy goals. The main objective of any government fiscal policy is to sustain economic growth, price stability, and employment rates (Riley, 2006). In the U.S., the monetary policy is determined by...
China’s economic growth The freefall of the global economy forced Chinese economic growth to fall to a low of 9.2%. The GDP growth had been steadily growing from 1999 to a high of 14.2% in 2007. The real GDP did not reduce due to the global financial crisis. The Gross...
The Difference Between the Official Cash Rate and the Market Rate of Interest The Official Cash Rate (OFC) can be defined as the interest rate that gets charged between financial intermediaries, on overnight loans (Lien, 2009). OFC relies on the general supply of cash, or else deposits, in the short-term...
Description of the Research Topic The topic for this research is centred on investigating the effects of globalization on developing economies. It emerges from conflicting views of experts, observers and pundits who disagree on the effects of economic integration on developing nations (Shahbaz et al. 2018; Raza & Karim 2018)....
Introduction Japan is one of the top ten leading economies in the world. It has managed to stay aloof because of the monetary policies it puts in place to manage its economy. The Bank of Japan Governor is usually in charge of the changes at the Treasury. Whenever there is...
Oil export Ecuador relies on petroleum resources substantially (CIA, 2013). Petroleum exports account for more than 50% of its export earnings per year (CIA, 2013). In early 2000, the banking crisis had a large impact on Eduardo’s economy. Ecuador’s GDP shrunk by 5.3% prompting policymakers to adopt the U.S. Dollar...
Fiscal policy definition Fiscal policy refers to the process by which a government regulates its spending levels to ensure a stable economy. Fiscal policy work together with monetary policy and they are both implemented by the Central bank of the country. The fiscal policy aims to stimulate the pattern of...
Despite the continued globalization efforts, the United States increasingly resisted trade liberalization in some sectors. Moreover, the American labor movements view American trade policies as unregulated and disfranchising to the American workers. They link this to the aspect of outsourcing of jobs from the overseas markets. This is not true...
Draw a graph showing the demand and supply at various price levels and mark the equilibrium price and equilibrium quantity. Equilibrium price of commodities in the market is determined by the interaction of the demand and supply curves. Equilibrium price refers to the price level whereby the amount of goods...
Can you identify international trade policies and agreements that are impacting Australia’s international marketing opportunities? The Australian government has been a signatory to trade agreements such as bilateral and free trade agreements. It has existing vital agreements with other partners and is currently involved in other trade policy negotiations. These...
The Globalization of Services chapter focuses on the current conditions of the globalizing world and how they can be addressed by businesses (Shameem). The international market presents interest as it holds the potential for the growth of revenues. However, there are some risks that companies are facing when trying to...
What is meant by Fiscal Policy? Fiscal policy is a demand management policy that entails the use of government spending, taxation, and borrowing to control the pattern of economic activity as well as influence the level and growth of overall demand, production, and employment. Changing the fiscal policy directly affects...
United Nations ‘‘Policy’’: An Argument with Three Illustrations “In this article, we initiate a long overdue conversation on the subject of ‘‘UN policy.’’ First, we speculate as to whether and, if yes, in what sense there is such a thing. Second, as the world organization’s comparative advantage is its unique...
Introduction This study was meant to delve into the wide area of trade liberalization as an issue that is gaining many roots in this new world order and influencing the economic growths of the participating countries. It lays a lot of emphasis on the pertinent aspects of trade liberalization and...
Case Summary The price of a gallon of paint increases from $3.00 a gallon to $3.50 a gallon. The painter’s usage of paint drops from 35 gallons a month to 20 gallons a month. The price elasticity of demand for paint The concept of price elasticity of demand for a...
Oil Price will go up Energy is the most precious natural resource that changes the balance of an economy, the modern world would turn into a world of junk without energy. Among all available energy sources, oil is the most demanded energy carrier, and this high oil demand is the...
Introduction Some nations around the world may create policies that impair other countries from trading competitively in various markets. This state of affairs introduces a trade imbalance that directly hinders development in the affected nations if appropriate rules and checks in the form of trading pacts are not introduced in...
Causes of Inflation Emergence Disproportion among a country’s goods and money supply; Increasing the amount of money for large expenses; Mass use of currency for credit programs; The absence of mechanisms for regulating monopolists’ prices; The influence of trade unions blocking wage distribution; Reducing the parameters of the state’s GDP;...
The concept of the time value of money stands for the idea that the value of money that will be obtained in the future is lower than that of money available at the moment (Magloff, 2018). In the time value of money, the value of funds that are on hand...
Introduction The financial crisis is one of the events that have dominated debates in the United States and other parts of the world in the recent past. The crisis, whose origin started within the American banking sector, has had a great impact on the global financial system. Many economies across...
Global Meltdown and Indian Economy The evident connections between macroeconomics, money, and finance are one of the primary aspects to focus on when entering a market in a foreign country. Thus, to enter the Indian market and start developing the business there, it is crucial to get information on its...
Introduction Promoting economic welfare and creating the environment in which international trade and business communication could be a possibility is a crucial requirement for the existence of the contemporary global market. The significance of international trade can hardly be overrated; it allows building international ties all over the world, enhancing...
Introduction The contemporary society is characterized by drastic changes that arise from globalization. Globalization facilitates the realization of a world society interconnected by structures that make it appear like a village. Mainly, technological advancements experienced today have aided the transformation of the world economies, as seen in the intensification of...
The Great Recession and the consequently provoked global economic crisis of 2008-2009 had led the USA to the fundamental changes in monetary and fiscal policies. Due to the several unfolding crises – the mortgage lending and credit crisis that developed into a financial crisis – the US government was compelled...
5 strategies to reduce income inequality within a country Peters asserts that progressive taxation is the most efficient way to reduce income inequalities in a society (72). In this approach, high-income earners pay more taxes than the low-income earners. This reduces income inequalities and ensures that the government spends income...
Utility of GDP Economic growth has been the measure of countries’ well-being for almost a century with Gross Domestic Product (GDP) being the primary instrument for this. Even though GDP has proven its usefulness over the years, there are opinions that it is a faulty method that tells little about...
Fiscal Policy Fiscal policy refers to the approach that a government employs in collecting and spending money to achieve economic stability within a given period, usually one year (Belmann, 2010, p. 3). Therefore, each government introduces its fiscal policy annually to direct economic activities with a view of achieving growth...
Foreign direct investment (FDI) is the net flow of investment into a foreign economy with the ultimate aim of acquiring a lasting interest in the business. This is achieved through different avenues such as purchasing shares in an enterprise of interest, incorporating an entirely owned subsidiary or enterprise or through...
Introduction Multinational corporations (MNCs) refer to businesses that operate across borders. These kinds of business entities typically have their headquarters in one country and other business locations spread across other countries. Multinationals are also called transnational corporations (TNC) or multinational enterprise (MNE). MNCs can take advantage of their global presence...
During the crisis, the central banks, with the lead of the American Federal Reserve Board, built up, installed, and in the majority of instances later secured, numerous tools intended to inject liquidity and backing monetary markets. After the predicament, the Federal Reserve reacted assertively to the monetary crisis, encompassing the...
Definition of Total Consumption Total Consumption: this refers to the total expenditures of a person (or entity) and consumption of specific goods incurred by households. Disposable Income: This is the income available for spending or saving after deduction of mandatory charges and taxes. Autonomous Consumption: Graham and Seldon (2013) define...
In today’s dynamic and competitive world, firms strive to focus on activities to facilitate reciprocally beneficial exchanges. Firms confront grave challenges and search for opportunities. The firms focus on establishing multi-dimensional relationships with their customer so they could be viewed as partners. By establishing a successful partnership with the customers,...
Abstract This paper explores the returns of private funds and the returns of the S&P 500, to ascertain which returns are more favorable for investors for investing. The study will make use of quantitative research methodology in the collection of the required data for use in making comprehensive conclusions on...
Outline a Plan for Managers The frozen food market in the US is undergoing a deceleration since 2014, especially for the ready-to-eat segment, which was one of the most lucrative segments even in 2014 (Frozen Food Industry, 2015). As the market forecast predicts a deceleration in business, managers are eager...
Abstract Consumer behavior is the responsiveness of clients towards a product in the market. Influential factors, which dictate consumer willingness to purchase a product, are personal, psychological, cultural, situational, and social factors. The influential factors have a hierarchy based on their influential powers. Personal, psychological, cultural, situational, and social factors...
Introduction The significance of monetary policies in an economy is eminent. Their objectives are usually distinct and focused on economic factors. For instance, these policies aim to lower the average rate of inflation. Monetary policies also tend to reduce the inflation rate. In addition, they minimize the gap observed in...
The Evolving Balance of Economic Power Shift from the West to East Economy power has been shifting in the last decade towards east from the west. The shift has resulted from increasing business and knowledge base in China and India due to their large population and resent economic growth and...
Abstract In every part of the world, businesses face an uphill task to conform to the laid down environmentally friendly practices and regulations. The increased economic activities in the United Arab Emirates result in the production of more energy to meet the demands of a growing economy. Trade and massive...
Introduction The world has some important international organizations that are somewhat confusing in their operations and their global functions. In the world, Steil (2013) explains that there exists the World Bank and the International Monetary Fund. According to Steil (2013), people often confuse their functions. Due to such confusion, this...
Introduction The concept of the global economy is not easy to understand because it requires a certain portion of knowledge in the spheres of politics and economics at the same time.1 Different authors and researchers introduce their approaches to how people should define the global economy and comprehends the peculiar...
The concept of globalization is inevitable and, therefore, it affects almost every aspect of human existence with a considerable influence on three major areas, including economic, social, and political dimensions (Olimpia and Stela 29). Economically, countries and trade regions in the world are increasingly becoming interconnected (Olimpia and Stela 31;...
Introduction Over the years, Canada has shown the capability to establish and maintain a stable and reliable political and social system, in addition to a healthy and flourishing economy. Even though empirical evidence indicates Canada to have a comparatively small population in relation to its outsized territory, it is remarkable...
Introduction Globalisation has offered countries a tremendous chance of economic development. Nevertheless, not all countries are growing at the same pace. While a majority of the developing countries are struggling to integrate into the global market, developed countries are already enjoying the benefits of globalisation. Globalisation enables developed countries to...
Introduction Regional economic integration refers to an international business strategy that creates a healthy environment for international business enterprises in different countries to collaborate in order to create wealth and economic stability for citizens. Ordinarily, the participating countries sign agreements that give the details of how the collaboration will be...
Abstract While there are numerous studies conducted on consumer behavior, no single study has developed a universally acceptable model. This report evaluates the historical development of consumer science especially with regards to consumer decision making process. The paper highlights and evaluates major underpinnings as well as shortcomings of traditional models....
Introduction By considering certifiable markets and their results, economists have identified a number of market attributes that if present leads to positive results and if missing leads to negative or even unattractive results. In the event that all these attributes are present, a market would be regarded to be a...
Introduction Demand is an economic term used to refer to the quantity of goods or services a consumer is able and willing to purchase at a given price over a given time period (Todd, 2010, p.1). Supply is an economic terminology used to refer to goods or services a producer...
Introduction Politicians and economists have all along been advocating for free trade, which they point out will guarantee that resources reach out to consumers at lower costs. Developed countries, especially Europe, are reaching out to African countries with the aim of signing an economic partnership agreement (EPAs) (Mankiw, 2009, p.549)....
Homeownership in modern industrialized nations has become a commodity in the real estate market. It no longer represents an idolized dream of creating a family home. However, the value of homeownership as a factor in individual and social stability is significantly underestimated. Housing is a significant social asset, providing financial...
The perfect competition is a model of the market in which many sellers and buyers interact. At the same time, all subjects of the market relations have equal rights and opportunities. For example, the market of cars may be designed so that new companies can easily enter it and offer...
Consumers’ Income Normal goods are those products or services whose demand increases when the consumers’ level of income increases. A reduction in the income levels of the consumers causes a drop in the demand for the product or service. On the other hand, when the demand for inferior goods decreases,...
The problem that CEOs Face in the Dubai Realty Sector A major problem facing CEOs in the real estate sector in Dubai is the uncertainty in the property business. CEOs in the real estate business are worried about the demand as well as the future of profitability in the housing...
Factors that affect short run production Upward sloping supply curve characterizes short run production. The supply curve emanates from the law of diminishing marginal utility. The law states that as additional units of variable factors are added to the fixed factors of production, output rises but eventually falls. Producer’s response...
Introduction The industrial revolution in France took part later in the 19th century, and it was associated with slow growth compared to the growth in industrialization in other European nations. France has always relied on the Agriculture sector for the growth in GDP. While modern France has seen tremendous growth...
Introduction The understanding of the market equilibrium concept and its importance in macroeconomics is an invaluable skill for business managers. The concept of market equilibrium has surfaced severally in the American financial market (Ball, 2009). However, this paper defines the concept of market equilibrium through the 2007/2008 housing bubble that...
How will the balance of payment accounts of the developing countries change, given the rapid increase in exports from, and FDI flow to these countries? Balance of payment (BoP) accounts refers to any accounting records of monetary transactions made between one country and the rest of the world. These transactions...
Article summary The article titled “when the supply shocks are demand shocks and the demand shocks are supply shocks” discusses the effect of changes in oil price on the economy of the United States. According to the writer, high oil prices that result from high demand affect the economy negatively...
An international monetary system comprises rules, institutions, and conventions that are agreed upon by countries of the world for the primary purpose of facilitating trade, capital reallocation, and cross-border investments. It provides a means through which buyers and sellers can trade, make and receive payments. The current monetary system was...
Derivation of the DD Curve A DD curve usually plots a GNP, which is at equilibrium, and the possible exchange rate that may prevail at any point in time. As such, any point on this curve represents a value, which is the equilibrium. The DD curve tends to have a...
Introduction The global financial crisis of 2008 is the most significant economic upheaval since the Great Depression that became the source of many fears and considerations of economists around the globe. High unemployment rates, low real income, changes in policymaking, increased debt levels, and universal economists’ credibility issues are just...
What is money? The concept of money can be viewed from different perspectives. For example, money can be used as an asset serving as a unit of account, as a medium of exchange as a store of value Money Supply Measures M1-This money measure consists of liquid assets. They include...
Describe the difference between fixed and flexible exchange rates Fixed exchange rates refer to the predetermined nominal rates of exchange that are arbitrarily set by a government. To this end, a government, through a fiscal monetary policy organ such as a central bank, issues the thresholds for the permissible exchange...
Introduction Trade policies have traditionally constituted one of the most debated economic matters, and the question of whether imposed tariffs on imports improve the economy of a nation or not arises cyclically. The recent trade war between the USA and China has fueled the debate, with the proponents of protectionism...
Perfect competition denotes a market setting in which all companies deal with a similar product and cannot control the price of the commodities. Since market share does not affect price, the consumers have a great influence as they have adequate information concerning products and costs in each firm (Azevedo &...
Price elasticity of demand measures the sensitivity of quantity demanded of a commodity to a unit change in the price of the commodity holding other factors affecting demand constantly. An increase in the price of commodity results in a decline in quantity demanded. A commodity has a perfectly inelastic demand...
Description The use case under analysis describes the procedure concerning withdrawing money from a bank account by a customer. The relevant process implies four principal actors: the customer, the bank system, the service administrator, and the security administrator. The authenticate customer is an additional actor. Among the necessary preconditions, one...
Economic diversification is key to the economy of UAE, most recently, UAE rates the most diversified economy in the GCC countries, what do we mean by diversification and what are the key sectors that are key for diversification in the UAE? In economics, diversification is defined as a process by...