...comprises the study of the factors affecting workers. Since all divisions of economics involve workers, it is prudent to evaluate their influence on labor economics and labor market for that matter. Consumption directly affects the supply of labor. If the workers experience an increase in their desire for consumption in relation to leisure, the labor supply curve will shift outwards. The workers will supply more labor at every given wage. The effect of public finance on labor economics may be through government taxation on the workers. If income taxes increase, workers will likely substitute leisure for consumption and supply less labor. Any effects on the supply and demand for labor will ultimately affect the labor market thus are essential in labor economics. Distribution of income may also affect the labor market especially if the distribution is unequal. Inequality in the distribution of income will affect workers and thus affect labor supply. Production of goods and services on the other hand determine the supply and demand for labor. Such effects directly influence the labor market. Table of Contents Abstract 2 Table of Contents 3 Introduction 4 Effect of consumption on the labor market 4 Effect of income distribution on the labor market 5 Effect of exchange on the labor market 6 Effect of production of goods and services on the labor market 7 Effect of public finance on the labor market 7 Conclusion 8 References 9 Introduction Study of labor economics...
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...THE GLOBALIZATION RORSCHACH TEST: INTERNATIONAL ECONOMIC INTEGRATION, INEQUALITY AND THE ROLE OF GOVERNMENT NANCY BRUNE and GEOFFREY GARRETT* November 2004 Forthcoming in Annual Review of Political Science vol. 8, 2005 In this review essay, we address the three principal questions that have dominated the debate over the distributive effects of globalization. First, how has globalization affected inequality among countries? Second, how has globalization affected inequality within countries? Third, how has globalization affected the ability of national governments to redistribute wealth and risk within countries? We conclude that despite the proliferation of social science research on the consequences of globalization, there is no solid consensus in the relevant literatures on any of these questions. This is because scholars disagree about how to measure globalization and about how to draw causal inferences about its effects. Keywords: globalization, inequality, economic growth, government spending, privatization ___________________________________________________________ * Nancy Brune is a doctoral candidate at Yale University. She can be reached at nbrune@isop.ucla.edu. Geoffrey Garrett is Vice Provost and Dean of the International Institute, Director of the Ronald W. Burkle Center for International Relations, and Professor of Political Science at UCLA. He can be reached at ggarrett@international.ucla.edu. The authors Alexandra Guisinger, David Nickerson and Jason Sorens...
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...flow from the more to less developed countries and all nations will gain as a result. However, in reality where market failures and information asymmetries exist, the results of financial globalizations are conflicting with its ideology. Especially in the emerging markets where the economies are even more highly distorted than the developed ones. Studies show mixed results regarding the effects of financial globalization on developing economies. Though the strong supporter of financial globalization are international organization such as IMF, World Bank and United Nations, many academics argued that the theory did not benefit the developing economies, yet worsening them. This essay will be critically analyzed the impacts of financial globalization on emerging countries in economic and social aspects. Growth In principle, financial globalization is greatly beneficial to economic growth in developing countries. Reduction in cost of capital, technology transfer and development of financial sectors are direct advantages from globalizing financial sectors, hence boost economic growth. According to Prasard et al (2003), empirical studies shows that countries with ‘more financially integrated’ (MFI) grew faster than the ‘less financially integrated’ (LFI) countries during 1970 – 1999. MFI developing countries had average per capital output increase almost threefold and six times greater...
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...University of Strathclyde (1992-2004). REPEC (Research Papers in Economics), the body which provides a ranking of all economists in the world, shows that Ronald MacDonald, Adam Smith Professor of Political Economy, is ranked in the top 5% (at number 29) in the world in the field of International Finance. His main areas of research are applied macroeconomics, financial economics and international finance. He has published over 100 refereed journal articles on topics as diverse as the determination of government expenditure and fiscal deficits, the determination of bond yields and stock prices, and the economics of exchange rates. Most of his recent publications have been in the latter area and have involved modeling exchange rate movements in terms of macroeconomic fundamentals, such as money supplies and interest rates, and producing measures of equilibrium exchange rates. He has acted as a consultant to various international organizations, such as the International Monetary Fund and the European Commission, a variety of central banks, including the European Central Bank, the Reserve Bank of New Zealand and the Monetary Authority of Singapore, as well as a number of leading financial institutions. He started his career as...
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... Page no Introduction Introduction Rational of the study 01 Objective of the study 02 Scope of the study 02 Methodology of the study 02 Limitations of the study Chapter- 01 01 02 Body of the term paper Monetary Policy Reason of publishing 04 Types of Monetary Policy 05 Monetary Policy in Bangladesh 06 Tools & Strategy of Monetary Policy 06 Major tools used by Bangladesh Bank 07 Policy Target 12 Limitations of Monetary Policy 13 Findings of the study Chapter-03 03 Scope & Objective of Monetary Policy Chapter- 02 03 14 Conclusion 14 Bibliography 14 Chapter- 01 Introduction “Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment. Monetary theory provides insight into how to craft optimal monetary policy. It is referred to as either being expansionary or contractionary, where an expansionary policy increases the total supply of money in the economy more rapidly than usual, and contractionary policy expands the money supply more slowly than usual or even shrinks it. Expansionary policy is traditionally used to try to combat unemployment in a recession by loIring interest rates in the hope that easy credit will entice businesses into...
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...has been observed not only in the area of external trade; it is seen also in terms of capital flows, aid, technology transfer, international migration, etc. All of these have seen significant expansion in the period of reforms, even if this has been on a scale far smaller than in South East Asia and the other faster growing developing economies. Globalization has definitely created opportunities for various parts of the economy to gain access to larger pools of resources as well as markets. While this may generally be perceived to have impacted positively on the beneficiaries, there are also indications that globalization has introduced new risks to environments that were hitherto closed to those risks. The increased risk may, in some cases, have accentuated poverty and worsened income distribution in parts of the country. While poverty has always been generally closely associated with the condition of African states, its link with globalization is a more recent development, and is much less understood. The relationship between globalization and poverty is obscured by the fact that for long poverty was more generally associated with rural economies and societies than urban ones, while globalization was expected to reflect the transactions of the more urban sections of African societies. But there are indications that urban poverty is growing and the links between rural and urban economies are...
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...by certain long term objectives. In case of our Five Year plans, the long-term objectives are: (i) A high rate of growth with a view to improvement in standard of living. (ii) Economic self-reliance; (iii) Social justice and (iv) Modernization of the economy (v) Economic stability (i) High Rate of Growth All the Indian Five Year Plans have given primary importance to higher growth of real national income. During the British rule, Indian economy was stagnant and the people were living in a state of abject poverty. The Britishers exploited the economy both through foreign trade and colonial administration. While the European industries flourished, the Indian economy was caught in a vicious circle of poverty. The pervasive poverty and misery were the most important problem that has to be tackled through Five Year Plan. During the first three decades of planning, the rate of economic growth was not so encouraging in our economy Till 1980, the average annual growth rate of Gross Domestic Product was 3.73 percent against the average annual growth rate of population at 2.5 percent. Hence the per-capita income grew only around 1 percent. But from the 6th plan onwards, there has been considerable change in the Indian economy. In the Sixth, Seventh and Eight plan the growth rate was 5.4 percent, 5.8 percent and 6.8 percent respectively. The Ninth Plan, started in 1997 targeted a growth rate of 6.5 percent per annum and the actual growth rate was 6.8 percent in 1998 - 99 and 6.4...
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...Management of Organizations in Brazil Brazil belongs to BRIC, which is a grouping acronym that refers to the countries of Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development. According to Goldman Sachs, since the four BRIC countries are developing rapidly, by 2050 their combined economies could eclipse the combined economies of the current richest countries of the world. These four countries, combined, currently account for more than a quarter of the world's land area and more than 40% of the world’s population. Brazil is one of the countries, which are among the biggest and fastest growing emerging markets. It is now the 6th largest economy in the world after United States, China, Japan, Germany and France. This fast development is also accompanied by socio-economic changes, and more particularly to an evolution of social classes. Does Brazil really become a sustainable middle-class country? In order to answer to this problematic question, we are going to explain why the Brazilian middle-class can be qualified with the adjective « new », why it differs from middle-class existing in others developed countries and why there are some risks class C setbacks. Then, we are going to demonstrate, according to the definition of « middle-class », that Brazil owns every characteristics which allow to qualify her as a sustainable middle-class country. One of the most impressive results of Brazil's...
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...intra-family stage); the meso stage (manufacturing, banking, state organizations, taxation); and the macro stage (countrywide including internationally). The micro, meso, and macro stages of money have turned to be further inter-associated with internationalization. For instance, credits to growing nations from the International Monetary Fund (IMF) and the World Bank increase to the home supply of finance, causing high government spending and venture and/ or lowered foreign exchange deficits. Bilateral growth co-operation and World Bank lending always promote home credit organizations and schedules in growing nations. Through this manner, the 8-10 million families that take credit from micro-credit schedules are not directly reliant on international sources of money. Remittances from migrant employees create a considerable basis of foreign exchange in nations such as Philippines and Bangladesh. Accepting this appreciating of international fund like a firmly woven mesh of macro, meso, and micro stipulations, this essay studies the way international fund affects, and is affected through the distinguished economic ranks of women and men (The World Bank Group, 2013). In this essay, four sex biases of international fund are handled, which are: * The low number standing for females in monetary resolution making; * High sex gaps in the economic ranks of females and males; * The sex-founded instability of monetary markets; and * Ineffective resource allotment in monetary markets because...
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...Although Latin America has faced many social, political, and economic issues within the last three centuries, inequality remains one of the most important, historical, and omnipresent aspects of the region’s culture. As Europeans took over Latin America during the time of colonization, they implemented many elitist social structures that have held strong and are evident today (Harris). Income inequality is the most visible and greatest disparity that the region faces; yet inequality between gender, ethnicities, and education remain strong and significant problems with a necessity for improvement. Inequality of wealth and disparity of power and influence are Latin American’s greatest curses and are at the root of many of the developmental, social, criminal, and political problems that continue to plague the region (De Ferranti). Since inequality has pervaded into every feature of Latin American society, it is important to measure inequality accurately in order to obstruct the causes of the discrimination and prevent new ones from beginning. The Gini Coefficient is an effective way that people indicate the inequality of a country by measuring a frequency distribution of income or wealth. Using the "Gini Index" of inequality in the distribution of income and consumption, the researchers found that Latin America and the Caribbean, from the 1970s through the 1990s, measured nearly 10 points more unequal than Asia, 17.5 points more unequal than the 30 countries in the Organization...
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...Effects of FDI by MNCs in Developing Countries What are Multinational corporations? What motives do they have for foreign direct investment? This paper explores these questions and seeks to find explanations by exploring key economic theories. The impact of FDI on developing nations is discussed with analysis and evaluation of the positive and negative effects. The findings of this essay are that FDI is neither entirely good nor bad for a country. Instead its effects vary and depend on a number of factors. Whilst firms have different strategies and objectives, the aim is ultimately to gain profits. In some instances this comes at the detriment of the welfare in the host nations, but it can also have benefits for these developing countries. | Introduction Foreign direct investment (FDI) has played an important role in developing countries with these nations receiving an increasing share of world FDI inflows (see Fig.1 below). From 1985 to 1990, the FDI inflow into developing nations was 17.4% of the total global flow. This increased to 31-40% in the four years leading up to the financial crisis (Hill, 2014). FDI acts as a major contributor to capital formation in developing countries and can promote growth and sustainable development. However, there are many challenges that the host country can face when dealing with multinational corporations (MNCs). By looking at key issues and analysing empirical evidence, the positive and negative effects that foreign direct investment...
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...globalisation as ‘the growing economic interdependence of countries worldwide through the increasing volume and variety of cross border transactions in goods, services and international capital flow’ (IMF, 1997). There was an increasing importance of an integrated economic platform in this new era. Nigeria made significant progress since it was first introduced into the globalisation process with Structural Adjustment Program, marking with a shift from protectionist policies to promoting free trade and economic growth. This essay will illustrate the pros of GDP growth and Foreign Direct Investment (FDI) manifested in economic globalisation of Nigeria, but evaluation will be made on the societal impact into the economy, such as income inequalities and labour exploitation. Capital inflows into Nigeria had grown immensely over the last decade in the process of economic liberalisation. It was considered as the 120th freest economy in the 2013 Index (Index of Economic Freedom, 2013). The FDI reached 11billion USD in 2009, ranking Nigeria at 19th to receive the most FDI in the world. Most prominent investors include USA Chevron Texaco and UK Shell penetrating the oil sector. China was becoming an important source of FDI recently, seeking to expand trade relationships, and Chinese investment reported worth 6billion USD. These investments were injections to enhance the capital of Nigeria, bringing about foreign expertise and technology, and also encouraged job creations, raising standard...
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...1 POLICY REFORMS AND TRADE LIBERALIZATION IN BANGLADESH I. MAIN FEATURES OF BANGLADESH ECONOMY GDP and its composition. During the fiscal year 2002-2003, the GDP of Bangladesh stood at around $52 billion. The growth rate of GDP has picked up in recent years. Thus, during 1980-90, it grew annually at 3.7 per cent on average, barely above the population growth rate. On the other hand, it approached an average annual rate of 5 per cent during 1991-2002. The relative shares of consumption and savings in the GDP witnessed modest changes during this period. In 1991, consumption accounted for over 86 per cent of the GDP, while in 2002 it fell to nearly 82 per cent. Correspondingly, the shares of savings in GDP rose by a quarter over this period. During the same period, the investment/GDP ratio increased from 17 per cent to 23 per cent. Within this, the ration of public investment to GDP remained stagnant around 7 per cent, while that of private investment increased from 10 per cent to 17 per cent of GDP. Changing sectoral distribution. As indicated by changes in the sectoral distribution of the GDP, the economy of Bangladesh underwent important structural transformations over the last three decades. At independence in 1971, agriculture was the dominant sectors accounting for over 55 per cent of the total GDP. The industrial sector was small, contributing less than 10 per cent of the GDP. The services including transportation and power accounted for the rest of the GDP. The...
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...1. Income inequality is one of the most discussed topics today, especially when economies shift from manufacturing to services and information exchange. Does the proliferation of information technologies contribute to greater income inequality? There is general agreement among economists that technical change in the United States and the OECD in the course of recent years, or even over the previous century, has been aptitude one-sided. That is on the grounds that the previous 60 years have seen a substantial increment in the supply of more taught laborers, yet comes back to training have risen. Without generous expertise predisposition in innovation, the huge increment in the supply of gifted specialists would have discouraged the aptitude...
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...global hegemony and dominance that establishes control through financial domination and capital exploitation. This paper focuses on this process of domination by examining the effects of neoliberal policies and structural reforms using the nation of Brazil as the unit of analysis. As will be discussed later in this report the government of Brazil has undergone significant structural changes over the last few decades that have resulted in an economic shift towards neoliberal policies. Policies promoting free enterprise capitalism, privatization of national assets, deregulation, tax reforms, flexible interest rates, trade liberalization and reductions in public expenditure have resulted in devastating outcomes for poor and marginalized groups within Brazil. These economic reforms have reordered government priorities resulting in cuts in social spending, worsening of wage inequality, displacement of workers, intensification of national debt and the weakening of labor bargaining and the conditions for meaningful work. The argument that this paper seeks to prove is that neoliberal policies in Brazil have altered political and social structures resulting in economic imbalance and economic, social and cultural human rights infringements. In order to fully understand the impacts of globalization in Brazil it is necessary to examine the process...
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