...Effects of credit crunch/policy within the last ten years on political economy decisions in two countries: the UK and France. Introduction: The UK and France are two leading Western European countries having the fifth ($2.9 trillion) and sixth ($2.8 trillion) largest economies respectively. They are both apart of the European Union in which France was a founding member with the UK later joining in 1973. It presently gives them the opportunity to have a single market with all twenty-eight-member states. But their similarities do not stop there with both countries sharing similar statistics in population (UK – 64.1m, France – 66.3m) as well as a similar labour force of around 30 million. However, there are several major differences between the two countries including the currencies they use; France adopted the euro in 1999 whilst the UK opted out of the Maastricht Treaty retaining the British Pound. But the most interesting difference is the way each country handles their economic policy in such contrasting fashion. This paper looks to show which policies were implemented by each government and the economic theories behind them. Political Economy Comparison: 1) State Ownership UK * The David Cameron administration since 2010 has been fast to privatise and sell off state owned companies. They have recently given an IPO to Royal Mail and are keen to sell other assets including its equity in URENCO. Furthermore, from early January ‘under a new Treasury scheme, members...
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...WORKBOOK ANSWERS Edexcel A2 Economics Unit 4 The Global Economy This Answers document provides answers for the questions asked in the workbook. They are intended as a guide to give teachers and students feedback. Topic 1 Poverty and inequality in developed and developing countries Measuring poverty and inequality 1 A standard of living that fails to provide basic needs, such as food, shelter and clothing. (1 mark) Often measured by the number falling below a threshold level of income such as a $1.25 PPP a day. (1 mark) 2 The term refers to those who fall below a certain threshold income or poverty line. (1 mark) A standard of living that falls significantly below the majority. (1 mark) In the UK and EU, this is defined as those earning less than 60% of median income. (1 mark) 3 a Measures the percentage of households that experience overlapping deprivations in three dimensions: education, health and living conditions. (1 mark) A person who is ‘poor’ is deprived in at least 30% of the weighted indicators. (1 mark) b Used to measure absolute poverty in less developed countries (1 mark) and its variables are: the percentage of a population likely to die before the age of 40 years (1 mark); the percentage of people over the age of 15 years who are illiterate (1 mark); the percentage of children under the age of 5 years who are underweight (1 mark); the percentage of people without access to public and private services such as health care and...
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...protectionist trade policy on the domestic industry and economy” Course Name International Economics Course Code FIN: 2210 Submitted To: Shaikh Masrick Hasan Lecturer Department of Finance Jagannath University Submitted By: Sohel Rana On behalf of Group-06 2nd Year 2nd Semester, 6th Batch Department of Finance Jagannath University Date of Submission: 22-02-2014 Group Members SL. NO. | NAME | ID NO. | 1 | SOHEL RANA | B 110203076 | 2 | NURNOBY RAHMAN | 115234 | 3 | UZZWAL HALDER | B 110203046 | 4 | IMAM HOSSAIN | B 110203026 | 5 | FARHANA BHUIYAN | B 110203106 | 6 | SUMAIYA YASMIN | B 110203104 | 7 | HAFIZUR RAHMAN | B 110203025 | 8 | FATEMA AKTER | B 110203006 | 9 | KHALILUR RAHMAN | B 110203055 | 10 | TOHIDUL ISLAM | B 110203024 | Letter of Transmittal Shaikh Masrick Hasan Course Coordinator Money and Banking Dept. of Finance Jagannath University Subject: To submit a report on “Impact of protectionist trade policy on the domestic industry and economy” Sir With a great respect, we are informing you that we have prepared a report on “Impact of protectionist trade policy on domestic industry and economy.” We feel great pleasure for submitting this report to you, which will definitely help us to be successful...
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...they are: Sole Trader: A person who runs unincorporated business on his or her own. Sometimes it is known as "sole proprietor" or "sole practitioner". Partnership: A partnership is an association of two or more people formed for the purpose of carrying on a business. Partnerships are governed by the Partnership Act (1890). Incorporated Company: Incorporating business actions into a company confers life on the business as a "separate legal person", Profits and losses are the company's and it has its own debts and obligations. Types of the Business Organization: Private Company: A company whose ownership is private. Private companies may issue stock and have shareholders. Public Company: Public Company may be defined as, A company that has issued securities through an initial public offering (IPO) and is traded on at least one stock exchange or in the over the counter market. Government Company: Government Company may be defined by, it is a legal entity created by a government to start money-making activities on behalf of a proprietor government. Voluntary Organization: Voluntary organizations may be defined as, organizations are non-profit ambitious, self-directed and non-statutory, that are run by persons who accomplish not obtain salaried. Its main plan is to bring social advantage. Cooperative Organization: A cooperative organization is owned by and operated for the advantage of those persons using its services. Cooperative organization also known...
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...Business environment is composed of two words ‘Business’ and ‘Environment’. In economic sense ‘Business’ means human activities like production, purchase or extraction or sales of products or services that are performed to earn money. Meanwhile ‘Environment’ means the aspect of surroundings. Business environment is the set of conditions institutional, political, economical, legal or social that is uncontrollable and affects the functions of the organization. Business environment consists of two components: external environment and internal environment. Internal environment includes of 5 M’s like management, money, machinery, material and man. On the other hand, External environment consists of demo-graphical factors, socio-cultural factors, political factors, geo-physical factors, government and legal factors. 5. Understand the organizational purpose of business 1.1 Identify the purpose of different types of organizations There are different types of organizations and mainly all kinds of organizations are divided in three sectors: public sectors, private sectors and voluntary sector organizations. The purposes of those organizations are not same. Public sector is owned and run by the government for the people. People pay taxes to the government and this money is used to finance most of the public sectors. The main purposes of public sectors organizations are to provide essential public services and to use resources well for the benefit of the community. Private...
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...European Economic Policies 1. THE MULTIPLE DIMENSIONS OF AN ENLARGED EUROPE 1.1 THE HISTORICAL DIMENSION Many unprecedented achievements characterize the Europe we see today; for the first time since Charlemagneʼs Holy Roman Empire in the 9th century in the ninth century, most of the European continent (400 million citizens) is again united and in peace. For the first time (at least since the last century) a set of countries have autonomously decided to relinquish to a supranational authority the control of one of the key symbols of a nation, its currency, without renouncing their identity or independence (along with numerous innovations). All this in less than 60 years. Historically, a period of war in Europe has ended with one or more treaty (e.g. 30 years war → Westfalia, Napoleonic war → Vienna Congress, WW1 → Versailles) The end of WW2 produced a series of treaties which, among other things (UN), laid down the founding pillars of the modern European Union The First 40 years (1950 – 89) Its acknowledged that the start of the European integration can be identified in the “Schuman declaration” a speech by French foreign minister in 1950. He proposed that France and Germany and other nations wishing to join, pool their coal and steel resources. It was an opening of credit to Germany (only 5 years after the first tank left Paris) and it implicitly recognized the new world order with france and germany allied with the US. It was also a security measure for France with respect to Germany...
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...all goods and services produced in an economy in a given price level and time period. AD = C + G + I + (X – M) C means consumer expenditure. This makes up the majority of AD in most countries (about 65% of the total). I means investment in capital goods from firms, and this is the most volatile component of AD. This typically accounts for 15-20% of GDP, and the majority (75%) is from private sector businesses. G means government spending on state-provided goods and services. Transfer payments (state benefits) do not count because these payments are not producing an output – they are a transfer of money from one group to another. X means exports; M means imports. Exports are goods sold to overseas countries and imports are what the UK buys from foreign countries. (X – M) represents net exports. If this is positive, there is a trade surplus which adds to AD. Conversely, a negative net exports value means there is a trade deficit, which reduces AD. Consumer Expenditure Consumer expenditure is influenced by… The amount of real disposable income is the main influence on consumer expenditure. Households and economies with more disposable income tend to spend more in total than poorer ones. The proportion of income that is spent is called the average propensity to consume (APC). Wealth (the value of a stock of assets) affects C. Wealthier people tend to spend more. Wealth can be spent and can be used to borrow against. It also results in greater consumer confidence....
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...go on to; identify the purposes of different types of businesses, describe how an organisation meets the objectives of different stakeholders and explain the responsibilities of an organisation and strategies employed to meet them. ‘’ In our lives we come into contact with a great assortment of organisations with many form types and usually with very different objectives.’’ (Business Essentials, 2007, p. 3) In order to understand the importance of diversity within a business it is important to first identify the varying purposes of different organisations. The purpose of an organisation can differentiate hugely depending on why they were set up. Examples of this would be that Starbucks operate to make a profit, whilst Help for Heroes on the other hand does not as it is a voluntary organisation. There are many different types of organisations serving different purposes to meet a variety of needs. There are three predominant classifications of industry in which organisations operate dependent on its purpose. These are the primary, secondary and tertiary sectors. The primary sector involves making direct use of natural resources and obtaining raw materials. In contrast the secondary sector produces manufactures goods. This is the process by which everything is put together. The tertiary sector of the economy is...
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...of the UK leaving the EU claim that there would be little trouble negotiating a free trade agreement with the EU once it left, because the UK has a large trade deficit with the rest of the Union. If trade barriers between Britain and the remaining member-states were erected upon exit, the EU would lose more exports earnings from Britain than vice versa. At the same time, the UK would be freed from the burdens of EU regulation and hence able to boost trade with faster growing parts of the world, nations such as China, US and emerging markets that include India that are not part of Europe. This could be done by eliminating tariffs and signing trade agreements without the constraints of EU membership. Undermining this assertion is the belief that the UK is a big enough economy to be an effective trade negotiator in its own right. As a result it might be concluded that the UK would see little impact from leaving the EU except perhaps a minor reduction in trade while new arrangements were made. However, it would be ill judged to assume that the UK would be able to dictate terms with the EU simply because it is running a trade deficit. Primarily, the EU buys half of Britain's exports whereas the UK accounts for little over 10 per cent of exports from the rest of the EU, so the UK would be in a weak position to negotiate access on its terms. Furthermore, it could be argued that the UK's access to many non-EU markets comes as a result of its EU membership. On its own, the UK only accounts...
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...This article was downloaded by: [Edith Cowan University] On: 31 March 2015, At: 12:08 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK Development in Practice Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/cdip20 Globalisation Shalmali Guttal a a Focus on the Global South, CUSRI , Chulalongkorn University , Wisit Prachuabmoh Building, Bangkok, 10330, Thailand E-mail: Published online: 18 Nov 2010. To cite this article: Shalmali Guttal (2007) Globalisation, Development in Practice, 17:4-5, 523-531, DOI: 10.1080/09614520701469492 To link to this article: http://dx.doi.org/10.1080/09614520701469492 PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and views of the authors, and are not the views of or endorsed by Taylor & Francis. The accuracy of the Content should not be relied upon and should be independently verified with primary sources of information. Taylor and Francis shall not be liable for any losses, actions...
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...|Terminology |Definition | |Absolute Advantage |Absolute Advantage occurs when one country can produce more of a good or service with the same or resources | | |and more cheaply than another country | |Absolute poverty |Absolute poverty describes the amount of people living on less than $1.50 a day | |Ad Valorem Tax |Ad Valorem Tax is levied as a percentage of the price of a good or service. Currently in England, the | | |Value-Added Tax is 20% of the price of goods and services. It is an indirect tax collected by a third party, | | |usually the seller, who in turn add the tax to the cost of the goods. | |Aggregate Demand (AD) |AD is the total demand for goods and services in the economy: AD= C+I+G+(X-M). | | |C= Total consumption /Expenditure in the economy | | |I= Total investment | | ...
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...the past several decades, which stimulates the development of organizations and better corporate performance. There are different kinds of national business systems with their distinctive characteristics varying among countries. Then ‘early’ and ‘late’ industrialization is applied to describe two main types of national businesses that existing in developed and developing countries, which explains the key institutional and organizational differences among countries in particular to some extend. Each country has fallowed different pathway and carried out their industrialization in different period. It is known that the UK is the first country that achieved early industrialization revolution, which was followed by the US. And then in the late twentieth century, Germany, Japan and China implemented their industrialization process with dramatic change on their economic performance. The purpose of this essay is to use the conception of ‘early’ and ‘late’ industrialization to explain the key institutional and organizational characteristics of national business systems by comparative perspective. First of all, the theories of industrialization will be displayed. Then this paper will concentrate on five main comparative countries, which are United States, Japan, Britain, Germany and China, to clarify major differences of national business systems. Moreover, further implications and debates upon these countries long-term national competitiveness will be given to assess the...
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...we address the implications for strategy. Some trends, we argue, remain firmly on track, but uncertainties are cropping up around others. We also see signs of new forces emerging, which we will be exploring in more detail in the months ahead. The overall picture is of an altered business landscape. It does seem there will be no going back to the precrisis world. hbr.org Are these the right trends to watch? Share your thoughts with the authors at landscape.hbr.org. business executives are looking again to the future. As they reengage in strategic thinking, many are struck by a sense that the world has changed: The turmoil was not merely another turn of the business cycle but a restructuring of the economic order. Is that impression accurate? To answer this question, it is necessary to examine the underlying forces that shape the business environment and to look for discontinuities. McKinsey & Company tracks the most important of these forces, from the growth of emerging markets Lorenzo Petrantoni Eric Beinhocker is a senior fellow at the McKinsey Global Institute, McKinsey & Company’s economics research arm, where he leads research on economic, management, and public policy issues; he is based in London. Ian Davis, also based in London, is McKinsey’s th managing director. Lenny Mendonca is the chair of the McKinsey Global Institute and a director in the firm’s San Francisco o ce. hbr.org | July–August 2009 | Harvard Business Review 55 STRATEGY in the ...
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...Free Trade Free trade may also be called International Trade. Free Trade occurs when goods and services are traded between countries without the use of import controls. For most of the late twentieth century, the prevailing wisdom has been that free trade can lead to improvements in economic welfare in the global economy. However this has not prevented regular trade disputes between countries - often when one country feels that unfair trade practices have caused the benefits from trade to become distorted. Free trade is very important to all developed countries as there are likely to be economies of scale - when producing for larger markets (foreign markets), average costs of production will be lower. There is likely to be a wider choice of products for consumers to buy and prices are likely to be lower because of lower costs. There is likely to be more efficient use of resources because countries will specialise in producing goods and services where opportunity cost is lowest, i.e. countries will produce goods and services that they can make more efficiently. There is likely to be an increased global output of goods and services without using more inputs. Another reason for importance is there is likely to be a higher standard of living for consumers. There may be political benefits because dealing with other countries will improve relationships. Maquiladoras (Mexican factories which take in imported raw materials and produce goods for export) have become the landmark...
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...world as organisations increase demand for their products by expanding from a national to an international market. Initially, the nature of the international business environment will be considered by looking at the size and importance of international markets. Governments encourage businesses to trade internationally but protectionism is also common. International business is regulated not just by national governments but also by transnational trading arrangements promoted by trading blocs such as the European Union and global agencies such as the World Trade Organization (WTO). Both large and small businesses trade internationally but doing business internationally is often more complex than doing business in the home market. Consideration will be given to the issues facing a domestic (UK) business when it expands its operations into the international sphere. However, some insights can be made by considering issues faced by overseas businesses as they have expanded their operations by moving into the UK market. Tesco has had very limited success in extending operations into France and Carrefour has had similar problems in establishing operations in the UK. However, they both have had more success in Malaysia and China respectively. Working internationally requires businesses to look at strategies and techniques that promote international working. Functional business activities need to be developed and put into an international context. Activities such as production...
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