...settled in America. There were four changes happening in Western Europe that have greatly influenced America. Those changes were economic, political, religious, and intellectual (Fite 15). So why were these changes so important? They were the reasons that England decided to explore and expand in the western part of the world. The decision to expand trade and commerce was the most important advancement in the history of economics (Fite 15). From the time that the Virginia colonies were settled in 1609 up until 1890, farming was the most important aspect of the United States economy (Fite 30). Although manufactured products were worth more than products produced on a farm for the first time in 1889, farming was how the majority of Americans made a living (Fite 30). Despite the fact that agriculture dominated in these early years and the industrialization of the colonies was well under developed, “there was a high degree of specialization in the colonial economy” (Fite 63). For example, there were tobacco crops in the southern colonies which were crops that produced money, and in the northern colonies there was international trade with other continents (Fite 63). All of this called for a well-organized and planned distribution system (Fite 63). America had a significant increase in its economy during the beginning of the 18thcentury (Fite 102). After the Revolutionary War was over, so was the control that the British had over the colonies’ economy. When the U.S Constitution was established...
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...Macroeconomics – Case 1.3 1 Analysis of National Income Trend since 1951 Rate of Change of National Income 12% 10% 8% 6% 4% 2% 0% -2% -4% -6% Rate of Change of National Income 1951-1965: Post independence the country was wrought with economic stagnation and extreme poverty, as a result this phase witnessed rapid industrialization. While the agricultural sector contributed more than 50% to the GDP, the consumer goods industry were completely neglected. As a result the growth rate kept fluctuating during this period. 1966-80: During this period, India’s economic growth can be characterized by one word – “volatile”. The 1971 war with Pakistan, successive changes In Government in the late 1970’s and the huge drought in 1979 which affected nearly 200 million people in the agricultural sector, had a major impact on the national income. 1981-1991: In the 1980s, the businesses were able to drive efficiency and react to supply and demand incentives, the economy took off. The plan laid stress on improving the productivity level of industries by upgrading of technology. So, the national income always increased as depicted by the graph shown. Progress toward that goal was slow but steady. In the late 1980s, however, India relied on foreign borrowing to finance development plans to a greater extent than before. Trend since 1991: Economic liberalization of India began in 1991. The economic abolished license raj, reduced tariffs, removed entry-exit barriers and ended various...
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...and most globalised economies in the world. The UK was also the very first country to industrialise and historically for many decades was the leader of the global economy, however with the rises of China, United States, Germany and many others the UK has much less of a dominant role. Within recent decades the UK economy has faced many serious challenges, including three recessions in the early 80’s, early 90’s and late 00’s. Up until the onset of the recent financial crisis, output growth in the UK exceeded that in many other European countries. The UK’s economic performance remains one of the highest in Europe and it is still one of the most globalized countries in the world. Using 1980 as a base, in recent decades the economic output per head of population in Britain has risen giving significantly higher standards of living however the UK economy has been scarred by recession. The 80’s period saw great social, economic, and general change. Wealth and production progressively migrated to more newly industrialising economies. The early 1980s marked a severe global economic recession that affected much of the developed world. In the UK, the 1980s was a period of economic volatility. At the start of 1980, the biggest problem facing the UK was cost push inflation. In the late 1970s, UK inflation reached over 20%. This was caused by rising oil prices and wage push inflation. Unemployment shot up to 3 million and high unemployment persisted throughout the 1980s. After recovering from...
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...oil rich territory. The conflict also discredited their government. From 1941 to 1964 the Nationalist Revolutionary Movement, or MNR along with President Paz Estenssoro were the government figures that ruled Bolivia. This movement was the most important political party during the 20th century. This political party started out as a leftist/reformist party but has since moved sharply to the right. From 1965 to 2005 Bolivia struggled with electing a president that would be good for economy until they elected President Evo Morales. During the 1900’s indigenous people were not treated like they were citizens of Bolivia. Their living conditions were deplorable and they were forced to work under primitive conditions in the mines and on estates. They were also denied access to education, economic opportunity, and political participation. The indigenous people did not get the respect that the deserved until the current president of Bolivia took office. Minerals have always been in abundance in Bolivia especially tin. Tin was Bolivia’s major money maker of all the mineral exports, but this has gradually declined since World War. Bolivia is one of the poorest countries in South America...
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...been in the making Summary: In the wake of events that followed the Global Financial Crisis, the EU was facing its toughest time since its inception, and a major catalyst to these problems was Greece. There were major speculations about a possible default on behalf of Greece, which would create a domino effect and take down a number EU members along with it and the EU could in no way let that happen. But Greece’s problems were not current. A series of events that had been occurring ever since the 1980’s eventually lead to the position Greece is in today and major bailout plan was needed, immediately. Economic events that lead to Greece’s current state: Beginning in the 1980’s, the situation of Greece had already started deteriorating, economically. Many of these occurring’s are what can be attributed to, as being one of the few primary reasons for the current state of Greece. * With the trade balance increasing from -6.7% between the years 1975-79 to -7.9% in 1985-89 and finally touching -10% in 1990-94 and then averaging to -9.5% from 2001 through 2009, things had already started looking bleak for Greece. (Exhibit 4) * In addition to that, the Real GDP growth reduced from 8.5% in 1960-69 to -0.2% in 1980-84 and then averaging to a 2.45 % up till 2009, never to touch its golden ear of the 1960’s * Between the 1980’s and 1990’s the public debt as a percent of GDP almost tripled from a 28% to a whopping 89% * With the advent of the Global financial crisis...
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...1.0 Introduction This report talks about china s accounting systems and how it has developed and changed continuously till present. It looks into the history of Chinese accounting, followed by explaining how the institutional factors have had an impact and is backed up by 2 theorist, Hofestede and Grays model. It identifies the significant changes that occurred during its journey in adapting to the IFRS standards starting from 1949. Culture is a main aspect of china and has been incorporated into its accounting systems as well. To conclude it explains future problems that may arise and whether or not china will fully adapt to the IFRS system. 2.0 Brief history of accounting Previously there was no real accounting system in china with the exception of providing financial reports, therefore the Chinese government wanted to implement an accounting system. In 1949 the people Republic of China (PRC) a communist party came into power and adopted a communist accounting approach from Russia to achieve socio economic development without the reliance on developed nations. 2.1 Significant changes that have taken place 2.2 Great Leap Forward The regime of the Great Leap Forward 1958 – 59 was an effort to strengthen china’s economy, and catch up with the western world, but ended during the Cultural Revolution. A series of natural disasters like shortage of water, starvation led to the worst period in china’s history. 2.3 Cultural Revolution However the Cultural Revolution...
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...which is written about emergence of casual labour market and workers of south. The informal-sector model was developed in the 1970s as a theoretical device to account for the reality of under employment, a category derived from the formal labour markets of the industrialised economies of the north. It assumed exclusion of workers from the formal economy and their absorption in the informal economy of small enterprises, often employing family members (Munck, 2002). Correspondingly, International Labour Organization (1972) and Hart (1973) crystallised the phenomenon of unregulated economic activity into the term “informal sector”. There was little anticipation that this sector could become the centre of attraction within a few decades in many countries. Once through of as a precipitate of formal activities, the informal sector gradually expanded in as many forms as imaginable in a complex economy (Marjit and Kar, 2011). Further, waves of globalisation and related maze of actions are smearing the boundaries of formality and informality (Marjit and Kar, 2011). Another view presented by Barbara-Harris White in her book, “Indian market society” that two third of Indian economy is reckoned to be social regulated economy accounting for ninety percent of...
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....5 RECOMMENDATION………………………………………………..5 BIBLIOGRAPHY……………………………………………………...6 INTRODUCTION Rice continues to be the most important commodity in the Philippines, accounting for about 15 % of gross value added in agriculture. It is grown on nearly two-thirds of the Country's Arable land and is a major source of livelihood of many small farmers and agricultural landless households. Rice also remains to be the main food staple, contributing 35 % of the population's total calorie intake on average, and as much as 60-65 % of the households in the lowest income quartile. Rice constitutes about 11% of total household expenditure, and double that ratio among the poor households. ( "Paper presented at the workshop on "Projecti0i;s and Policy Implications •of Medium and Long Term Rice Supply and Demand, .i'Beijing, Cbi:_ Ap/i! 23-26, 1995) Because of the political and economic importance of rice in the Country, the rice sector has historically been the central focus of government agricultural policy. Government interventions have been aimed to achieve several, often conflicting, objectives -- to stabilize prices, raise farm incomes, provide low prices to consumers, and attain rice self-sufficiency in pursuit of food security. Over the past three decades, however, the level and nature of these government interventions and the relative importance of policy objectives have changed in...
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...had a civil war that began in 1992, and Algeria still struggles with semi-authoritarian rule. I believe that Algeria can learn from Mexico about how to transition governmental systems as Algeria is currently in a similar situation as Mexico in the 1980’s. Mexico, although rigged elections in favor of the PRI candidate; never had a legitimacy problem until the 1980’s when the Mexican economy crashed because the...
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...S.R. Luthra Institute of Management, Surat 2011-2013 A Comprehensive Project On SouthKorea Economy Submitted to Ms. Delnaz Kasturwala By INTRODUCTION: South Korea has a market economy which ranks 15th in the world by nominal GDP and 12th by purchasing power parity (PPP), identifying it as one of the G-20 major economies. It is ahigh-income developed country, with a developed market, and is a member of OECD. South Korea is one of the Asian Tigers, and is the only developed country so far to have been included in the group of Next Eleven countries. South Korea had one of the world's fastest growing economies from the early 1960s to the late 1990s, and South Korea is still one of the fastest growing developed countries in the 2000s, along with Hong Kong, Singapore, and Taiwan, the other three members of Asian Tigers. South Koreans refer to this growth as the Miracle on the Han River. Having almost no natural resources and always suffering from overpopulation in its small territory, which deterred continued population growth and the formation of a large internal consumer market, South Korea adapted an export-oriented economic strategy to fuel its economy, and in 2010, South Korea was the seventh largest exporter and tenth largest importer in the world. Despite the South Korean economy's high growth potential and apparent structural stability, South Korea suffers perpetual damage to its credit rating in the stock market due to the belligerence of North Korea in times of deep military...
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...Freshman Japan's dream deflates Interest rates and Keiretsu Dan Baker blames you Introduction This essay examines the performance of the Japanese economy over the period 1985 to 2002 with reference to key economic variables, such as GDP growth, price stability performance, employment, and the public debt to GDP ratio, etc. We focus on the path the economy has taken since the bursting of the “bubble economy” early in 1990, and in particular on the phenomenon of deflation, which appeared as a persistent problem towards the end of the 1990s. This paper will investigate the underlying causes of recession and deflation in Japan, and examine the main problems associated with the latter. Finally, a number of policy solutions will be suggested to combat the deflationary pressures in Japan, and more generally, to help stimulate economic growth. What’s wrong with Japan? Before the bubble burst - Japan as Number One During the 1980s it was a popularly held belief that Japan was rapidly and inexorably catching up on America as the world’s number one economy. From a state of near-complete devastation at the end of World War II, Japan had transformed itself into a global economic powerhouse second only to America in terms of productive output, and unequalled in terms of growth1. Not surprisingly, Japan was considered by many to be the model economy, which “year after year 1 During the 1960s, Japan’s GDP growth amounted to over 10% per annum as compared to 3% in the USA. (Jones) 153 ...
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...Moderation,” for short. This case study was written by Diego Comin and was published by the Harvard Business School (Comin, 2011). The author begins by giving us a background on the situation that he analyzed. The case in question has often been referred to as the Great Moderation. After thoroughly describing this time period, Comin then provides us with some rationalizations for this occurrence (Comin, 2011). Next, the topics of the variance of stocks and reduced amplification were covered (Comin, 2011). There were also other possible causes of changes in volatility discussed; such as globalization, inventory management, policy, demographics, and technological diffusion (Comin, 2011). Well put together, the case study is an excellent example of how one can analyze an economic situation. To begin, let’s take a look at what happened during the time period known as the great moderation. During this time period, which began in the 80’s, there was a reduction in the volatility of output (Comin, 2011). Exactly what does this mean? In terms of economics, volatility can be defined as “a measure of risk based on the standard deviation of the asset return” (Volatility, 2013). In lamens terms, it is the measure of how far above or below the normal; the output will rise or fall. Much like in the general definition of volatile, economic volatility could describe a period of erratic unpredictable rises or falls in levels of output. During the Great Moderation, levels of volatility...
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...Discussion Paper 99 JOBLESS GROWTH IN INDIAN MANUFACTURING: A KALDORIAN APPROACH Michele Alessandrini* November 2009 Abstract Despite the remarkable economic performance in the last twenty-five years, India maintains a high discrepancy between the rate of growth of the economy and the rate of growth of employment. Labour elasticity to output has decreased over time and the capability of the Indian economy to generate employment seems to be limited. As a result, more than 60 percent of Indian workers are still employed in agriculture and 94 percent of total labour force can be found in the unregistered segment of the economy. This paper analyzes the jobless growth problem in India in terms of a Kaldorian framework where the linkages between agriculture and industry enter the labour demand through the changes in the terms of trade between the two sectors. Moreover, we investigate the role of the unorganized sector in influencing the growth of the registered employment. Using a dynamic panel dataset on registered manufacturing from the 15 major Indian states over the period 1980-2004, our System-GMM estimates show that states with a higher growth of demand for industrial goods originating from agriculture also exhibit a higher growth of employment. In addition, in those states where the weight of the unregistered manufacturing has risen over time, the jobless growth problem has worsened. Keywords: India, jobless growth, manufacturing, intersectoral terms...
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...THE U. S. IN A GLOBAL ECONOMY >The chapter provides background for ongoing changes in the American economy that link it increasingly to economic events in the rest of the world Increasing Importance of Trade >[Instructor’s note: Trade patterns can be divided into two major types of exchanges: merchandise meaning goods which are tangible such as cars and chocolates and services meaning items which are intangible such as insurance or financial products] >Figure 1.1 shows the trend in U. S. merchandise trade flows from 1869 to 2007; exports and imports were constant at about 7% of GDP until falling during the post-World War I decades but recovered to historic rates in the 1950s until taking off at a rapid pace of increase in the 1970s -According to the Council of Economic Advisors merchandise exports were $1.3 billion or 9.1 % of GDP and merchandise imports were $2.1 billion or 14.8 % of GDP in 2008 -[Instructor’s note: according to the Bureau of Economic Analysis the merchandise exports and imports were 8.7% and 13.3% of GDP in 2010] -Two recent divergences between the two streams of exports and imports as a percentage of GDP were the post world war II years when the American economy ran a trade surplus vastly out-producing the rest of the world and the period since 1980 when we have run a persistent trade deficit in merchandise imports >The trend in both percentages has been steadily upward since 1970 marking the pace of globalization >Although some economists early...
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...Sintetos Alex Vela ECON317 Sec:0301 Chile Chile has been one of the most studied economies in recent history due to its impressive feats during global recessions. Being a small, copper export dependent economy until the 1980s, Chile often went under the radar on the global marketplace. Due to policy changes starting in 1985 and a political regime change in 1990, Chile began to thrive. Chile now boasts an economic model which encourages economic freedom, competitiveness, and investment. This model has allowed for Chile to have the highest per capita income in Latin America. Although Chile has had successes with its economy, it is still considered a developing country. Large efforts have been made for the past century to secure development. While these efforts have brought Chile closer to its goal, high inequality and a relative dependency on copper prices has made it difficult for any of these efforts to have a final impact allowing for the actual transition to developed status. This paper analyzes the timeline of Chile’s economy, focusing specifically on the period of high growth of 1985 to present day and any recessions that fell between these dates. It also aims to highlight the successes and failures of the policy reforms of the past as a way to determine what will be effective in the future for allowing Chile to achieve its goal of development. Before the arrival of the Spanish in the 1500’s, the Inca ruled the northern part of Chile while the Mapuche inhabited the central...
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