...Trent University’s Regulations on Academic Irregularities, including those pertaining to research ethics and Data Protection legislation. Contents: PAGE Abstract 3 Abbreviations 4 List of Tables 5 List of Figures 5 1. Introduction 6 2. Theoretical and Empirical Review 7 2.1 Defining GDP and FDI 7 2.2 Economic Growth in attracting FDI 8 2.3 FDI in promoting Economic Growth 8 2.4 Positive effect of FDI on growth...
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...Analysis of Differences in Marketing Environment between Singapore and the U.S.A. March 05, 2013 Analysis of Differences in Marketing Environments between Singapore and the U.S.A. Abstract My motivation for analyzing the differences in marketing environments between Singapore and the United States was to be able to gain more knowledge of the marketing environment that lies between these two countries. The method that I used to approach this report was reading one book on international marketing and several websites that contained several topics and information regarding these countries. After analyzing the methods that I used, I learned several important facts about Singapore and the United States. Also, I learned that both countries face different problems in diverse cultures. One of the greatest implications is that you cannot market to Singapore the same way you would in the United States because both countries desire different things. Introduction This paper analyses the differences in marketing environments between Singapore and the United States, and is structured into five tables. Table 1 presents general differences between Singapore and the USA; it also gives information on both countries. For example, it shows the differences in land size, population, and GDP. Table 2 discusses trade relationship between Singapore and the USA. It explains the U.S. exports and imports from and to Singapore over the past five years. It also explains the key products and services...
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...1- GDP is a good form of measuring our economic well-being. The reason for this is because GDP is the total market value of all the final goods and services produced within the economy in the year. 2- The trade deficit reduces our GDP because the excess of imports over exports makes the total number of market value of final goods and services made in a year. 3- Nominal GDP is when we use current prices to measure GDP. Real GDP is the measure that controls for changes in prices. I think that between both the most important one is nominal GDP because it is the value of GDP in current dollars. 4- The difference between GNP and GDP and what they produce is that GDP is what their citizens earn while GNP is the gross national product. This GNP is usually not to important to most countries. 5- The reason investment spending is more volatile than consumer spending is because investment spending is more likely to change rapidly and it is also unpredictable. While consumer spending is less liable to change and tends to be more predictable. 6- A consumer confidence is closely watched because if the way a consumer thinks about a business is important. Consumer confidence lets people to still have hope even when in deep in a financial crisis people will still remain to believe on that the economy will get better. Work cited O'Sullivan, Sheffrin, and Perez. Macroeconomics Principles,applications, and Tools. 8th ed. p.97-114.: Pearson, 2014,2012,2010. Print....
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...included in Gross Domestic Product (GDP). “Even real GDP is an imperfect measure of current output and income. Some productive activities are omitted because their value is difficult to determine” (Gwartney et al., p. 143). We know that GDP is only measured in a restricted time frame. Imagine all the goods and services that are redistributed in a year’s time that are not included in GDP. Without all factors being counted the values are not precise in nature. In reference to our assigned text household production, the underground economy, leisure and human costs, quality variation and the introduction of new goods, and harmful side effects and economic “bads” are not included in GDP (Gwartney et al., p. 143-145). In an article, titled, “The Gdp how the Gdp is Calculated and what it does not Count”; (Alpha 2007) mentions several specific factors that impact a faulty GDP. As we are aware a lot of the numbers that are documented are retrieved from companies through forms of surveys. “The governments can obviously use this to their advantage by selecting the companies that they know are steady companies and not choose the smaller companies who are more likely to be erratic.” (Alpha 2007) There is an extreme variance between high-end and smaller rural companies. An extreme difference will have a great impact when calculating GDP. When one individual or company transfers payment in the form cash or check it is not included in GDP. When referencing the Education Portal...
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...inflation. Macroeconomics concentrate on the progress in the economy as a whole, whereas microeconomics focuses on issues that influence the decisions made by companies and individuals. There are various forms of economic data that make up the fundamentals of macroeconomics, including Gross Domestic Product (GDP), Real GDP, Nominal GDP, Unemployment Rate, Inflation Rate, and Interest Rate. These various form can affect the flow of resources among different entities. To fully understand macroeconomics it is important to understand the following terms: Gross Domestic Product (GDP), Real GDP, Nominal GDP, Unemployment Rate, Inflation Rate, and Interest Rate. Gross Domestic Product focuses on the country monetary value of all finished goods and services produces in a specific time period. According to "Investopedia" (2009) “the gross domestic product is one of the primary indicators used to gauge the health of a country's economy” (para. 1). Real GDP and Nominal GDP are two terms associated with Gross Domestic Product. Real GDP concentrates on the market value of final goods and services produced using prices from a base year. Nominal GDP focuses on the total value of all goods and services produced in a country for a particular year. The difference between Real GDP and Nominal GDP is real values are adjusted for inflation, whereas nominal values are not. Unemployment rate is also vital part of macroeconomics; it helps determine the percentage of the total labor force that is currently...
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...Although many people do not see much difference in micro and macroeconomics, there is in fact a huge difference. Microeconomics is the study from a specific firm’s point of view, as macroeconomics is the study from the full economies point of view. So, what does this all mean? In this paper we will discuss the many factors that make up key elements of macroeconomics. What is economics all about? Is it the study of money? Is it about trade-offs and scarce resources? Is it about inflation, unemployment, and government budget deficits? Is it about eliminating poverty? All of the above are important topics in the study of economics. The main objective of economic research is its ability to explain how we can most optimally achieve the highest standard of living. Thus: Economics is the study of how we can best increase a nation's wealth with the resources that we have available to us. In our country and other relatively free-market economies, the decision as to what and how much to produce is made primarily by the buyers and sellers of the products. The government exerts relatively little control over prices of products. Some say that this is the nation’s wealth, but is it? Wealth by definition includes tangible products, such as cars and houses, as well as intangible products, such as more leisure time and cleaner air. The biggest question associated with wealth, is how to increase it. Some economists support government involvement, price controls, and government rules and regulations...
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...Macroeconomic Short Answer Questions Student’s Name: Professor’s Name: Institution Affiliation: Course Title: Date: 1.2 Suppose the consumption of a good entails rather sizable spillover benefits. How might the resulting misallocation of resources be corrected? Spillover benefits refer to both costs and/or benefits that individuals or groups of people reap through the production or consumption of goods and serves, although they are these person(s) do not take part in decisions that aid the process of production or consumption. These costs and benefits result from both over or under-consumption of goods and services and over or underproduction of goods and services (Gupta, Mandal & Gupta, 2008). As a result, misallocation of resources occurs. In order to correct the misallocation of resources, the source of the costs or the benefits need to be identified. That is, if it is taking place on the production side or the consumption side. Where there spillover benefits occur as a result of production, there is either overproduction or underproduction. In case of underproduction, there is need to boost production and this can be achieved through provision of subsidies in order to encourage firms to produce more. In case of overproduction, the firms’ potential is high and resources available for production meet an output that exceeds the actual demand. To correct this, the firms would have to be taxed more in order to make the production process expensive, bringing...
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...which beginning in July 1997 and raised fears of worldwide economic meltdown due to financial contagion.1 Several countries such as Malaysia, Thailand, Indonesia, the republic of Korea and the Philippines were hit directly while others such as Taiwan province of China, Singapore and especially Hong Kong, China were badly affected. What began as a speculative attack on the Thai baht in July 1997 quickly spread as ‘contagion’ to the other countries. Over a three-month period between July and October 1997, the baht fell nearly 40 per cent, the Malaysian ringgit and Philippine peso by about 27 per cent, the Indonesian rupiah by about 40 per cent and the Korean won approximately 35 per cent against the United States dollar. For countries that had been dubbed “miracle economies” this was a serious blow with wide-ranging economic, social and political ramifications.2 In this paper we would try to undertake an empirical analysis of the factors leading to the crisis by analysing on two major points: 1) How have these countries performed in the years leading to the crisis? 2) What was the policy response to the currency crisis and what similarities/differences were there in policy responses across countries? We try to do this by analysing the macroeconomic data of three countries, Malaysia, Thailand and the Republic of Korea, over a 13-year period, from 1990 to 2002. The 13-year period is divided into three time segments. The period 1990-1996 is the pre-crisis period, 1997 and 1998 is considered...
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...constitute the households' incomes. What firms and government pay (to households) for the resources they buy to produce goods and services will constitute their costs of production. Firms' costs of production are reflected in the prices they put on the goods and services they produce, and these costs are recovered when those goods and services are sold in the product market. Governments recover their costs of production (of services) by collecting taxes (or borrowing.) Thus, households' incomes are spent on paying taxes, buying goods and services (produced by firms), or saving which would directly or indirectly lead to investment; investment is simply purchase of capital goods or inventory. We can measure the value of the output of the economy either buy counting the income dollars received by households for their resources (an income approach) or we can measure it when they spent their incomes (an expenditures approach.) Money income from Amount spent to the sale of resources purchase the economy's used to produce the = output economy's output Rents +Wages + Interest + Profits + Adjustments = Consumption + Investment + Government purchases of goods and services + Net export A formal measure of the value of the output of an economy is its gross national product, GDP. Gross National Product An economy's annual aggregate output is measured by its GDP or gross domestic product: the...
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...(Microsoft Word or compatible). Each question is worth 15 marks. 1. Are per capita increases in GDP (gross domestic product) a good indicator of economic development? Explain your answer. GDP per capita is often a very lacking indicator of economic development. There are many other factors that affect economic development. The three core values of development are: sustenance, self-esteem, and freedom. While growing GDP and GNI can help attain these, particularly sustenance, it is not enough. Often incomes are not distributed evenly, in both developing and developed nations. Sustenance is basic goods and services, including food, shelter, clothing; the basic needs for survival. GDP can help achieve this but it has less effect on the other two core values. Self-esteem can be described as a feeling of worthiness that a society enjoys when it’s social, political, and economic system and institutions promote human values including respect, dignity, integrity, and self-determination. A large GDP/capita increase was seen in many Middle Eastern countries, yet most of the population was left out of the growth, women are treated as second citizens, and poverty is still wide spread. Freedom is a situation in which a society has a variety of alternatives which to satisfy its wants and individuals enjoy choices according to their preferences. A growing GDP will not bring Freedom in all cases. Many times money goes to only a small subset of the population, who...
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...Flaws of GDP As a measure of economic development, GDP is a useful but fundamentally flawed statistic. Some examples of the deficiencies of GDP as a measure of economic development are detailed below. Imputations When computing GDP, goods and services sold in the marketplace are valued at market prices. However, some goods are not sold in the marketplace, and these do not have market prices. Thus the value of these items has to be estimated, or imputed. This is especially true of housing. When people rent housing, their rent is counted as part of GDP, as it is both income (for the landlord) and expenditure (on the part of the tenant). For people who live in their own homes, an estimated market value for the rent that would be paid for the property if they were renting it is computed and a part of GDP. However, there are limits to imputations. Whilst the value of housing services are imputed, the value of other durable goods, e.g. the cost, or ‘rent paid’ towards running cars, fridges and other durable goods are not accounted for in GDP. Additionally, if outputs are produced which do not make it to the marketplace, such as meals cooked at home, these are not included in GDP either. The fact that these items are not included means that GDP may understate economic well-being. For example, a meal produced at home is no different from meals cooked in a restaurant, but the latter is included in GDP whilst the former is not. Therefore GDP is deficient at showing the...
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...Quiz Note: It is recommended that you save your response as you complete each question. Question 1 (1 point) Senator Brown wants to increase taxes on people with high incomes and use the money to help the poor. Senator Johnson argues that such a tax will discourage successful people from working and will therefore make society worse off. An economist would say that Question 1 options: we should agree with Senator Brown. we should agree with Senator Johnson. a good decision requires that we recognize both viewpoints. there are no tradeoffs between equity and efficiency. Save Question 2 (1 point) When you calculate your true costs of going to college, what portion of your room-and-board expenses should be included? Question 2 options: Your full room-and-board expenses should always be included. None of your room-and-board expenses should ever be included. You should include only the amount by which your room-and-board expenses exceed the income you earn while attending college. You should include only the amount by which your room-and-board expenses exceed the expenses for rent and food if you were not in college. Save Question 3 (1 point) Which of the following is not generally regarded by economists as a legitimate reason for the government to intervene in a market? Question 3 options: to promote efficiency to promote equality to enforce property rights to protect an industry from foreign competition ...
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...macroeconomic issue has been further spread by the bad labor market of 09-10 o Inflation rate • High inflation means that prices on average are rising rapidly while a low inflation rate means that prices on average are rising slowly. 0 means essentially the same over time. Retired people lose the most because what they have saved buy less. High inflation helps those who have borrowed. Creates uncertainty o Productivity growth • The aggregate output per hour of work that a nation produces in total goods and services • The faster aggregate productivity grows the easier it is for each member of society to improve his or her standard of living. • If growth rate stays the same we have to sacrifice going forward by building fewer hospitals and schools. Called zero-sum society because any extra good or service enjoyed by one person requires that something be taken away from another. • Many argue that the achievement of rapid productivity growth and the avoidance of a zero-sum society form the most important macroeconomic challenge of all • Aggregates o The totals of the economy (3 central concepts) o Use simplified theories to ignore differences among households • GDP o Higher the level of output, lower the unemployment rate o Higher the level of output, faster...
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...[Cover page] Policy Analysis Unit (PAU) Working Paper Series: WP 0604 Inflation and Economic Growth in Bangladesh: 1981-2005 Shamim Ahmed Md. Golam Mortaza December 2005 Policy Analysis Unit (PAU) Research Department, Bangladesh Bank Head Office, Dhaka, Bangladesh (www.bangladeshbank.org.bd) (www.bangladesh-bank.org) Policy Analysis Unit* (PAU) Working Paper Series: WP 0604 Inflation and Economic Growth in Bangladesh: 1981-2005 Shamim Ahmed Research Economist, Policy Analysis Unit Research Department Bangladesh Bank Md. Golam Mortaza Senior Research Associate Centre for Policy Dialogue December 2005 Copyright © 2005 by Bangladesh Bank * The Bangladesh Bank (BB), in cooperation with the World Bank Institute (WBI), has formed the Policy Analysis Unit (PAU) within its Research Department in July 2005. The aim behind this initiative is to upgrade the capacity for research and policy analysis at BB. As part of its mandate PAU will publish, among other, several Working Papers on macroeconomic research completed by its staff every quarter. The precise topics of these papers are chosen by the Resident Economic Adviser in consultation with the PAU members. These papers reflect research in progress, and as such comments are most welcome. It is anticipated that a majority of these papers will eventually be published in learned journals after the due review process. Neither the Board of Directors nor the management of Bangladesh Bank, nor WBI, nor any agency...
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...josef.brada@asu.edu Ali M. Kutan Southern Illinois University at Edwardsville Edwardsville, IL 62026-1102 USA akutan@siue.edu Goran Vukšić Institute of Public Finance, Zagreb, Croatia goran@ijf.hr ABSTRACT We estimate capital flight from twelve transition economies of Central and Eastern Europe (CEE) for the period 1995-2005 using the residual method. Capital flight from some of these transition economies, when adjusted for country size, is comparable to the more highly publicized capital outflows from Russia despite East Europe’s seemingly better transition and reform performance and greater political stability. We find that capital flight from CEE is mainly an economic phenomenon, driven by differences in interest rates and investors’ expectations about future macroeconomic conditions in their countries. Our empirical results are thus consistent with the mainstream explanations of capital flight and they mirror results obtained for other countries and time periods, suggesting that transition-related phenomena are not important factors in capital flight from CEE. JEL Classification Numbers: E26, F31, F32, P33, P37 Key words: capital flight, external sector liberalization, money laundering, transition economies I. Introduction A great deal of attention has been paid to measuring and explaining the causes of capital flight from Russia. For example, Abalkin and Whalley (1999) estimated capital flight from...
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