...Thailand is performing well in its international trade, as seen from a remarkable increase in exports recorded in 2010 and a healthy outlook for 2011. According to the Director-General of the Department of Export Promotion, Mrs. Nuntawan Sakuntanag, Thai exports in 2010 are likely to expand by 24-25 percent, or 189-190 billion US dollars. For 2011, the Ministry of Commerce has set a target of export growth at 10 percent, or 207.9-209.6 billion dollars in value. The target growth is based on the value of 30 baht per US dollar and a crude oil price of 76-77 dollars per barrel. The Ministry of Commerce will work closely with the private sector in pushing Thai exports this year. Small and medium-sized enterprises (SMEs) will receive greater attention in terms of capacity-building, market development, cluster network development, and financial support and risk management. More emphasis will be placed on penetrating foreign markets that have high potential, such as ASEAN, China, India, and Russia. In addition, the Ministry of Commerce will attach great importance to developing and promoting value creation through creativity, innovation, branding, and environmentally friendly production. Although Thai exports in 2011 are expected to increase steadily, there are several key risk factors. For instance, the appreciation of the baht, higher production costs because of higher oil prices, and an increase in interest rates would have an impact on Thailand’s international trade. ...
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...international market and unknown export environment are encountered with greater the environmental uncertainty. Under turbulent conditions, there is greater likelihood that that company’s products aren’t to suit customers 'needs and competitors' products and consequently reduced the effectiveness of company actions. So in a more turbulent environment of export, exporters require lot of information that increases identify them as a means of changing conditions of export. Market- orientation is caused that companies focus on continuous collecting information on associated with the needs target customers and competitors capabilities and apply this information toward creating superior value for customers (Doaei & Hosseini Robat, 2010). It`s clear that mutual effort of governments and people is the critical element for the progression of companies and actual promotion of their activity levels (Rezvani, Gilaninia& et al, 2011;Gilaninia et al,2012) Development and survival of companies and economic growth in many countries is associated with a better understanding of the determining factors of export performance. During past four decades, numerous studies have been conducted in connection with one or several determining factors in export performance. However, most of them an internal perspective (managerial or organizational factors) or a local approach (environmental factors) have accepted, while only a few examples of both of these studies have examined these factors simultaneously ...
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...Does export lead to growth? Hoang Ngoc Anh – 1001010026 – CTTTk49 Abtracts The export-led growth hypothesis (ELG) hypothesis states that export is one of the key factors of economic growth. It rose to prominence in the late 1970s and became part of a new consensus among economists about the benefits of economic openness. This study aims to discover the relation of export and economic development, digging into past data and empirical study to give a conclusion that export is a key factor for economic growth. Does export lead to growth? Introduction Economic Growth is perhaps the foreground goal of all nations. Across time, in pursuing this objective, varies economic hypothesis and strategies have been developed and applied within different countries. Among these strategies, exportled growth has gained its popular among economists and policy makers due to the success of this policy in many new developed countries in the late 20 th century, especially the miracle growth of the 4 Tigers of South East Asian and China. The idea that trade can be the engine of economic growth states that promotion of the export sector is the best way to achieve economic growth. This hypothesis is verified to be valid through many economic data thorough history and also there are many explanations as to why exports are a crucial way to obtain growth. Firstly, the economy of scale argument of the new trade theory is that domestic markets severely limit the scope for sales of a domestically produced...
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...An Emperical Study of Export ,Import And Economic Growth in Malaysia Meloney Antong & Kartini Binti Kapin Department of Economics, Faculty Economics and Business Universiti Malaysia Sarawak ------------------------------------------------- Abstract This paper investigates the relationship between export and import to economic growth. This paper is an attempt to carry out an empirical examination of the hypothesis on export-led growth. It also determines the direction of causality between exports, import and output, and investigates short and long-run dynamic impact of exports, imports on GDP growth in case of Malaysia. ------------------------------------------------- Keywords : Economic Growth, GDP, Export and Import. 1. Introduction Development is the main aim of any economy. The basic of economic development is economic growth. In order to promote economic growth, export-led growth is considered as the key to accelerate the rewards of all factors of production. Economic growth can related to many various factor. The main aim for any economy is development and economic growth is the basic of economic development. Export can be define as the goods and services that produce in the country and sold to the other countries. While, import is the goods and services that bought into other country for trade purpose. But, its depend to the import quotas, tariffs and agreement between the country. Export will represent the important sources of foreign exchange...
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...push exports on anvil Our Economy Bureau 3 September 2004 New Delhi: A day after doling out sops to exporters, commerce and industry minister Kamal Nath today said that the government would bring out a trade leveraging policy apart from a special package for textiles, tea and coffee sectors to further push up exports. "India is one of the few countries in the world which will have incremental growth in its human skill resources in the coming years. We have never leveraged trade. I am going to work on trade leveraging policy. We have to see trade not only as a foreign exchange earner but also as a net employment generator," Nath said at a FICCI seminar on the foreign trade policy. Since the multi-fibre agreement is coming to an end in 2005, the minister said that the government would look at the entire textile chain and come out with a textile policy. Nath said that his ministry would also organise a seminar on textiles in the next one month to discuss issues emerging in the post quota regime. Stating that the days of government subsidising inefficiency were over, Nath said that the industry would have to match the strength of its competitors in order to achieve a quantum jump in its exports. He said issues like the inverted duty structure needed to provide a level playing field to the domestic industry particularly under regional and bilateral agreement would be addressed soon. The minister also admitted that infrastructure was the weakest link in the export chain...
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...across the pacific regions. If no governmental changes or outside influence occurred it could have ended up as a Soviet state. This led to American intervention to stop the Soviet Union gaining more power and to rebuild Japan. America started off the rehabilitation by occupying the country giving aid and assistance which was followed up by interventionism by the Japanese government leading to huge privatisation and capital projects funded by Japanese businesses encouraged to invest; kick-starting an economic rejuvenation. How each stage of the recovery is implemented will be discussed in further detail in each section including American Intervention, Japanese government intervention, MITI (Ministry of International Trade and Industry)/Keiretsu and the overview of the ‘Golden Sixties’. American Intervention The American government under order of SCAP (Supreme Commander of the Allied Powers) intervened by occupying Japan to prevent Soviet communism from commencing and to help rebuild the Japanese economy with a view to democratize and demilitarise the country. Special procurements were paid to the Japanese government due to military hostilities in the Korean Peninsula boosting the economy these payments amounting to 27% of Japans export trade. America added Japan temporarily to GATT (General agreement on Trades and Tariffs) to help expand their export / import potential creating a benefit for the economy. Land reforms were instigated to benefit farmers and reduce power of landowners...
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...is a ‘cumulative causation’between foreign direct investment and exports and economic growth. Heclaimed that foreign direct investment (FDI) had a huge influence on the export performance of the developing countries, the degree of exports stimulates economy growth thus attract more FDI. There are some evidences exist to prove his claim. China isone of the good examplesto indicate that. Song and Zhang (2001) stated that there was a strong link between foreign direct investment and exports in China. Exports which generated by FDI had attracted more FDI into China. It also provided the evidence that only 1 percentage of FDI level changed in 2000 was related to 0.29 percentages rise in exports in 2001 (Song and Zhang). Moreover, foreign investment has played a vital role in both China’s economy and fast growth (Whalley&Xin, 2010). According according to Whalley and Xin (2010), their research result has shown that ‘China’s growth rate may have been around 3.4 percentage points lower in the past few years’ without FDI(Whalley&Xin, 2010). While on the other hand, this ‘cumulative causation’ application may be affected by current global situation. The export-led growth strategy for those least developed countries seem to be not so effective in recent years. According to Stewart (2011), Unctadsuggeststhat the least developed countries may come up with some effective growth strategies instead of their current export-led strategy. Chinese cheap products exporting strategy may not work...
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...establishment of a single global economy. China is current the world’s second largest economy and in the past two decades has been the worlds fastest growing economy, sustaining an average rate of growth in real GDP of 10% per annum. The effect of globalisation on China’s economy can be seen in the areas of economic growth, economic development, quality of life, economic stability and environmental sustainability. Economic growth refers to the increase in a country’s GDP over a period of time. The influence of globalisation on China has been profound with economic growth being sustained between 8 and 10 percent in the past 2 decades. This is due to China moving away from being an ecnomy with a domestic focus to a trade oriented economy, highly integreated with the global economy to take advantage of globalisation. This increased integration has seen China’s share of world exports in goods and services rise to 9.4%, and its share of world GDP estimated at 14.3%. The effect of this increased integration is evident as China is now the worlds second largest economy in the world measured by the nominal value of GDP in US dollars. Economic development can be measured through growth in GDP per capita as well as other qualitative measures. China’s rapid rate of economic growth has been based on its export oriented strategies financed by foreign investment which has increased substantially as a result of China’s involvement with the global economy. This has resulted in a rise of 9.4% in GDP...
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...million people located in the south of Malay Peninsula, has been considered one of the most powerful global economies. Despite of the remarkable growth experienced during the period 2000-2007, in 2008-2009 coinciding with the financial crisis, the economy constrained causing a sharp deceleration in the GDP growth. Surprisingly, the country recovered so fast achieving an unprecedented growth of 14.8% in the year 2010. How can a small country like Singapore avoid the economic recession and become one of the world-fastest growing economies? This study tries to response these questions analyzing different social, economic, political and cultural aspects. Manufacturing industry and exports driving growth recovery Singapore´s economy is very dependent on the global trade. In contrast with other recessions, this one has affected all the industries and services sectors globally, damaging the economy of the country. Manufacturing is the most important industry and the cornerstone of the country economy, accounting for 20% of Singapore´s GDP. In the course of the economic downturn Singapore evidenced a substantial downtrend in the manufacturing industry. Having overcome the worst of the global crisis, 2010 marked a strong change in the productive trend of Singapore when the Industrial production Index rose by 29.7% over the previous year mainly led by the biomedical manufacturing sector especially by pharmaceutical products. In addition other sectors such as semi-conductors that accounts...
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...39357800 Ext: 6844 yareshb.kothari@angelbroking.com Automobile Sector Steady growth Automakers maintained their strong volume momentum in March 2011, recording double-digit sales growth. Despite expectations of a slowdown in demand due to higher interest rates and product price increases, volume growth remained buoyant on the back of positive consumer sentiment and heavy discounts offered by OEMs and dealers to clear their year-end inventory. Among the majors, Maruti, Hero Honda, TVS Motor and Ashok Leyland reported better-than-expected numbers for the month. Going ahead, however, hikes in product prices, increased fuel price along with higher interest rates would be the major headwinds that could impact performance of the players. Tata Motors (TML) reported 10.9% yoy (7.5% mom) growth in total volumes, led by better-than-expected numbers in the commercial vehicles (CV) segment. Growth in the CV segment was led by a bounce back in M&HCV and LCV sales, which registered strong growth of 11.8% (30.6% mom) and 23.1% yoy (15.7% mom), respectively. In the PV segment, TML reported a 0.4% yoy (12.9% mom) drop in offtake, largely due to a 40.3% yoy (30.9% mom) decline in Indica dispatches. Nano volumes remained strong, posting 84.9% yoy growth. Ashok Leyland (ALL) posted better-than-expected numbers during the month, registering a strong 20.9% yoy (24.2% mom) increase in volumes to 12,168 units. Volume growth during the month was aided by strong performance from the M&HCV goods segment...
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...decreasing to AD2, as lower export demand and greater spending on imports causing a fall in domestic AD. This reduces economic growth, shown by a decrease of Y1 to Y2. Furthermore we would see lower inflation, shown by P1 decreasing to P2 as import prices are cheaper, as well as lower AD leading to lower demand pull inflation and manufacturers having greater incentives to cut costs to remain competitive. This is assuming demand is relatively elastic - if the demand was more inelastic, the result will be vastly different - there will be less of a decrease in economic growth and inflation. Assuming demand is elastic, an appreciation of the currency price would worsen the current account position. As exports are more expensive and imports are cheaper, we see a decrease and an increase in both respectively. This will cause a bigger deficit on the current account, having negative implications upon the economy such as becoming uncompetitive and leading to a further decrease in export led economic growth. However, the impact on the current account isn't certain - an appreciation will tend to reduce inflation, making UK goods more competitive and leading to stronger exports in the long term and benefiting the current account. Furthermore the overall impact on the current account depends on the elasticity of demand as stated at the start of the paragraph. If demand for imports and exports is inelastic instead of elastic, the current account could actually improve. Exports are more expensive but...
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...has played an important part in the economic development of countries around the world but has also led to increased damage to the environment. To illustrate this, India and Australia will be used as examples. India's economic development strategies built up a number of problems over the period 1965 to the late 1980s. A key problem was declining investment expenditure from an average growth of 5% to 3.7% over the course of two decades and the fact that the government sector was spending much more than it taxed. In response to this, the Indian government of Narasimha Rao in 1991 introduced significant reforms in the Indian economic system by following globalisation trends across the world and making India a more active participant in the global economy. India began to move away from 'self-reliance' as it liberalised its protection policies e.g. reducing tariffs. India became more involved in global capital markets which brought in funding and capital as well as intellectual knowledge. India's currency was floated in 1991 which resulted in significant depreciation of the rupee (approximately 20%). This made its exports more competitive, provided cheaper labour for foreign companies and encouraged foreign investment. INSERT FLOATING CURRENCY GRAPHS Since 2000 the Indian economy achieved higher rates of economic growth than those of the 1990s. Not only has economic growth been extremely strong, levels of investment are very strong with much of the investment being private...
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...Assignment Currency Devaluation Introduction Devaluation refers to a decrease in a currency's value. A currency devalues when its value declines in relation to one or more other currencies. It affects the demand for exports and imports. Currency devaluation is evaluated in terms of the foreign exchange rate. Exchange rate is the value between two currencies shows how much one currency is worth in terms of other currency. The depth and intensity of exchange rate volatility and its impact on the volume of international trade was recognized during 1970s when the world economy shifted from fixed exchange rate to free floating exchange rate. If the exchange rate volatility is higher, then it will generate uncertainty of the future profit from export trade. In this assignment we will discuss on such issues like exchange rate volatility I addition to currency devaluation and its impact on the volume of international trade of developing country focusing Bangladesh. This assignment is based on the exchange rate and its volatility in addition to devaluation that affect on the on international trade of Bangladesh. The concept of the study is taken from the academic activity of ECN-201 course instructed by Mrs. Nahid ferdousi, lecturer of Department of Business Administration of University of Asia Pacific. This paper consists of three parts. In first part we will give a short description of currency valuation and factors that affects the currency valuation, and then we animated...
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...After decades of slow economic growth real GDP per capita has picked up. However, since agriculture represents about of half of the country’s output, economic performance remains highly vulnerable to shocks. GDP contracted in the drought years of 1993/94 and 1997/98. Nonetheless, a rise in productivity was observed in agriculture through the implementation of Agricultural Development Led Industraization (ADLI) strategy that enhanced the implementation of fertilizer usage and extension...
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...result of increased globalisation in China, it has been vulnerable to the Global Financial Crisis in 2008. In the period between 2006 and 2007 China was operating with high GDP growth rates, with an average of 12%. When the GFC hit in 2008, the impact was clear when: * GDP growth rate had dropped down to 9% in 2008 and 8.5% in 2009. The decrease in GDP growth rate was due to worldwide demand for the Chinese exports decreasing and TNC’s closing down factories and putting millions out of work, leading to a stall in domestic industrial production. * Inflationary rate was negatively affected. In 2007 China’s inflation rate was 4.7%, in 2008 it grew to 6%, and when the GFC hit, the impact was clear when inflation had dropped down to negative 0.6% in 2009. * China’s unemployment rate had increased from 4% in 2008 to 4.3% in 2009. * China’s government debt as a % of GDP rose from 16% in 2007 to 19.5% in 2008 In November 2008 the Chinese government introduced a stimulus package worth $586 billion, which was aimed at encouraging growth and domestic consumption. After 2009 China experienced gradual increases in GDP growth, 9% in 2010 and 10% in 2011. Strategies to promote economic growth and development There are many strategies that the Chinese economy is using to promote their economic growth...
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