...Written Assignment 1 India’s Emergence as a Global Economic Leader Drivers of India’s Emergence in Globalization The most interesting part of India’s rise as an economic leader is that India was regarded to many countries as a weak regional power that held little potential for becoming a global leader. Global economic powers such as such as Japan, Germany, and the United States ignored India’s slow market and foreign policies that caused tensions in regards to negotiating trade until the late 1990’s. In 1991, India pursued to employ policies that would liberalize the country and open the door to foreign investment in an attempt to increase the country’s economic development (Feigenbaum, E.). Since the late 1990’s India has attracted a significant amount of foreign investment form other countries for its 1.) agricultural production 2.) industrial output and 3.) service output. Today India has succeeded in improving the country’s economic growth and is on track to become a top-five global economy by 2030 (Feigenbaum, E.). The Globalization of Markets influence on India’s Economy According to McGraw-Hill, “It has been argued for some time that the tastes and preferences of consumers in different nations are beginning to converge on some global norm, thereby helping to create a global market (McGraw-Hill, pg 8). This increase in global norms has played a significant key in the increased agricultural production in India. This global norm of similar tastes and preferences has led...
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...Unit 5 Individual Project: Global Economics Eric Bebber AIU Online 07/08/12 Unit 5 Individual Project: Global Economics The World Bank employs many methods to encourage economic growth in various developing nations. The most crucial of these methods used in Hong Kong and Singapore was the advisement to make the transition from communist command economies to a market economy. This means that rather than the government controlling what goods and services the country produces and controlling the allocation, consumption, and distribution of resources the market determines these factors. Also rather than workers being employed by the state and receiving whatever wages deemed necessary by the government, the workers’ wages are set according to competitive rates. The most developed countries in the world all have market economies. Therefore one can only assume it was appropriate to encourage these countries to transition from command to market economies. Human capital is a very valuable asset to economic growth. This is why the World Bank has placed great emphasis on the education of these countries’ workforces. The better education workers receive, the more apt they will be to fill important jobs. Lastly, a method for growing the economy highly recommended is technological innovation. More technologically advanced facilities mean better efficiency. The more efficient companies are, the greater their profits and the more they stimulate the economy. I would suggest technological...
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...GLOBAL ECONOMICS BY: LANNY JOHNSON SEPTEMBER 22, 2011 MACROECONOMICS ABSTRACT You are asked to research 1 economic concern in a South American country and write a report on our findings. We are then to write 2-3 relationships between the economic concern you selected and that specific country’s economy. The mission of the World Bank is to help develop countries and their people to reach goals by working with our partners to alleviate poverty. The key to a successful economic development is to implement strategies that may include market economy, high saving rates and even investments (World Bank, 2011). Hong Kong and Singapore were; newly industrialized countries during the 1970’s and 80’s. Since it is not possible to become an industrialized nation without a market economy, that strategy needs to be the first priority in a NIC. To have a market economy there must be a division of labor in which the prices of goods and service are determined in a free price set by supply and demand. The methods they used were to bring about industrial stability by dismantling the communist party and fostering discipline with employer-employee relations. This was done to attract multi-nationals companies with existing technologies that were looking for new opportunities to expand globally and maximize the potential of the people so that they can contribute to the most economic growth of the country(How Singapore came, 2010) By dismantling the communist party and fostering discipline...
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...maximize profits, by using the resources efficiently. The essential part of this system is that competition is automatic and balanced, not controlled by external factors. Adam Smith and various liberal thinkers support that the economic system and competition of any country or area should work like this; without manipulating any of the factors that affect demand and supply, in order to create the best profit in the market and utilize resources efficiently. Mercantilism supports the prosperity o a nation, the nation authorities or government is responsible of the capital supply. Capital is supported by bullion (example gold) which creates a positive and “healthy” balance trade among nations. Mercantilism supports government as the “father” of the market, where they must protect certain actors as producers or consumers in order to achieve a balance in the economy. Therefore the point of view of the mercantilists brings as a result unfair competition, compared to the liberals, certain mechanisms of government do not let the market flow and work for themselves, thus creating gaps. Because of these deficiencies the market is no able use resources efficiently and You could say that competition in the commodity markets is unfair, and some have more economic benefits than others. Level of Analysis: the liberals analyze circumstances as individuals, while...
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...competitiveness were considered to be the following: technological developments; proximity to major markets and the role of quick response; requirements for high quality production; access to technology and management, design and marketing skills; the increasing importance of offshore, joint venture and contract production and some more country–specific factors such as political and infrastructure constraints and the availability of raw materials and components. The importance of trade barriers and quotas may also diminish with China’s admission to the WTO. Trade barriers and existing quotas in the EU and the United states would fall and the possibility for China to negotiate worldwide reductions on import duties would be open. The global supply chain of footwear which developed in the last decade and which is replacing the traditional pattern of integrated shoemaking (leather processing, tanning, finishing and shoe manufacturing in many developed countries) has been an agent for the transfer of designs, the introduction of modern management practices, quick response, and technology and quality improvement to producing developing countries participating in outsourcing, and has provided the producer countries with indirect access to...
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...Economics for the Global Manager BUS610 AIU Abstract This paper will discuss Boeing’s global operations as it pertains to its activities outside the U.S. It will identify the economic concepts that apply to this firm and how the concepts can be used to address the firm’s problems and opportunities. It will identify the economic and political policies that affect this firm and how the policies impact business decisions. It will discuss how the firm uses technology for strategic advantages and the impact of globalization for the firm. Economics for the Global Manager Introduction The world’s largest; Boeing is an aerospace company that leads the manufacturing of commercial jetliners. Boeing also has manufacturer defense, space, and security systems (About Us, 2013). Boeing’s global operations have supply and manufacturer activities outside the U.S. (Backgrounder, 2013). The economic concepts that apply to this firm are manufacturing of commercial jetliners as well as defense, space, and security systems and these concepts can be used to address the firm’s problems and opportunities (About Us, 2013). The economic and political policies that affect this firm are economic growth and political turmoil and these policies impact business decisions (Long-Term Market, 2013). The firm uses technology for strategic advantages by ¬making plans in its research and development investments to maximize potential returns and the impact of globalization for the firm (Arkell, 2005)...
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...CHAPTER 2 THE GLOBAL ECONOMIC ENVIRONMENT SUMMARY A. The economic environment is a major determinant of global market potential and opportunity. In today’s global economy, capital movements are the driving force, production is uncoupled from employment, and capitalism has vanquished communism. Based on patterns of resource allocation and ownership, the world's economies can be categorized as market capitalism, centrally-planned capitalism, centrally-planned socialism, and market socialism. The final years of the twentieth century were marked by transitions toward market capitalism in many countries that had been centrally controlled. However, great disparity still exists among the nations of the world in terms of economic freedom. B. Countries can be categorized in terms of their stage of economic development: low income, lower middle income, upper middle income, and high income. Gross domestic product (GDP) and gross national income (GNI) are commonly used measures of economic development. The 50 poorest countries in the low-income category are sometimes referred to as least-developed countries (LDCs). Upper middle-income countries with high growth are often called newly industrializing economies (NIEs). Several of the world’s economies are notable for their fast growth; the BRIC nations include Brazil, Russia, India, and China. The Group of Seven (G7), Group of Eight (G-8), and Organization for Economic Cooperation and Development (OECD) represent...
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...Global Economic Environment Generally, global economic environment is influenced by various factors such as technological, environment, political, socio-cultural, and demographic that directly affects businesses. Economic environment refers to the nature of economic systems and policies, distribution of income and wealth, and level of income. Indeed, economic environment has a complex and very dynamic nature; it is continually changing along with the changes in political situations and government policies. Global Economic Environment Mainly, global economic environment is comprised of several components including the economic systems, conditions, policies, legislations, and environment. Indeed, the economic policies being imposed in every business unit are significantly influences by the overall condition of economy. This includes the improvements that occurred in economic conditions such as the purchasing power of the public, standard of living, distribution of income, and supply and demand. Mainly, these factors reflect the size of the market. Another factor reflecting the economic condition is the business cycle, which is critical to every business unit. It refers to the different stages such as prosperity, boom, decline, depression, and recovery. The economic condition of a country can be understood through its national income, per capita income, and distribution of income, demand and supply trends, inflation rate, industrial growth rate, trends in industrial sickness...
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...Economics for the Global Manager BUS610 AIU Abstract This paper’s objective is to discuss the differences between microeconomics and macroeconomics and examples of each. It will discuss a personal microeconomic example with the factors that contributed to the decision. It will also discuss an example of a macroeconomic phenomenon and the results of the decision. Economics for the Global Manager Microeconomics is an analysis of how individuals and firms will make themselves as successful as possible in a world of shortages and the penalty of those individual decisions for markets and the entire economy. It will study how individuals and firms make decisions and how the individual decisions will affect markets (Perloff, 2012). Macroeconomic is an analysis of the performance of the whole economic system. It can forecast the national income by studying the major economic factors that have predictable patterns or trends and the influence they have on one another. The factors used are prices, balance of payment positions, gross national product, and employment / unemployment (Macroeconomics, 2013). The difference between microeconomics and macroeconomics is clear. Microeconomics is the study of the individuals / firms markets. It looks at the allocations of resources and the prices of goods. Macroeconomics is a study of the whole economic system. It looks at gross national product and how it affects unemployment. A microeconomic phenomenon example is taking a looks...
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...Economics for the Global Manager BUS610 AIU Abstract An economic company has contracted out to establish the financial structure and potential actions of the Organization of Petroleum Exporting Countries, or OPEC. The purpose of this paper is to discuss the difference between a monopoly, an oligopoly, and a cartel along with examples of each. It will discuss the welfare effects of monopolies and oligopolies. It will discuss how game theory explains the relations of firms within oligopolies and cartels and the financial purpose of OPEC and the past five years of the oil prices. Economics for the Global Manager The Organization of Petroleum Exporting Countries, or OPEC, economic structure and future actions are predicated on a contract from an economic firm. The difference between a monopoly, an oligopoly, and a cartel are simple and examples of each will be given. The welfare effects of monopolies and oligopolies will be discussed. Game theory explains the relations of firms within oligopolies and cartels. The economic purpose of OPEC and what has happened to oil prices over the past five year will be discussed. Differences /Examples One seller of a good or service which has no close substitute and has substantial control over the price and protection from rivalry through a barrier to entry is a monopoly. An industry that has moderately diminutive number of firms, barriers to access, price searching behavior and mutual interdependence is an oligopoly. A cartel...
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...BUS610-1005A-01 - Economics for the Global Manager 13 November 2010 Introduction In economics, there are many things which take places. They include performance, organization, activities and decision making. Economics, like many other subjects in life, can be studied at different levels. These things can be conducted at individual level, or at a common level. What we mean by individual level is they may be by individual company, firm or an entity business person. The way the different entities behave may differ due to their different demands and supply. What we mean by decision made at a common level is that it looks at the entire activities and behavior of the entire economy. This may be at national level, regional level or even global level. Difference between microeconomics and macroeconomics Economics is primarily split into two major sections, this are the macroeconomics and the microeconomics. The two are so much connected. Adjustment in one affects the other. Both of them work together in the world of economy. The macroeconomics can be considered to be the summation of microeconomics. However there exists a difference in the two. We shall be discussing on the distinction between the two in the subsequent few paragraphs. To begin with, the naming denotes that there is a difference between macro and microeconomics.’ macro’ stands for large in Greek, while 'micro’ stands for small in Greek. This is to explain that microeconomics covers the...
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...Assignment 1 Questions Derrick Shoemaker 10/14/2012 MBA6008 - Global Economic Environment Assignment 1 Questions Question 5 page 21 a) Chart of production possibities, the production function shows the relationship between the quantity of inputs used in production and the quantity of output resulting from production. b) Economy is at "C" then automobile will be at "6" and forklifts would be at "19" Notice that the production possibility curve slopes downward from left to right that means that there is an inverse relationship between automobiles and forklifts. So this would be a representation of its shape. c) In the law of opportunity when the slop is steep there's a high opportunity cost for automobiles and low opportunity for forklifts. But that of that it being flat of 3 automobiles to 20 forklifts the opportunity for forklifts are higher to automobiles. d) 1. No 2. When technology improves, when more resources are discovered it will give more output with the same inputs. What I mean is that when technology improves the entire production possibility curve shifts outward. 3. As with technology this would also increase in international growth which would lead to growth in the production curve. This also would state that current production possibilities could outgrow it production curve. Income per year | | Savings per year | | | | 20,000 | | 1500 | 15,000 | | 1000 | 10,000 | | 500 | 5,000 | | 0 | 0 | | -500...
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...Global Service Economics 10.9.15 Development of national and regional society Mechanism in global economy including macro-economic condition Micro-economy (looking at a single tree) Try to observe ages of economy Macro-economy (looking at the forest) Understanding the whole society Business economics – start looking at the business and how it works * Revenue * Costs * Etc The law of supply: Everytime a price is raised, we are willing to produce/offer more “The law of supply is a fundamental principle of economic theory which states that, all else equal, an increase in price results in an increase in quantity supplied. In other words, there is a direct relationship between price and quantity: quantities respond in the same direction as price changes.” The law of demand: “The law of demand states that other factors being constant (cetris peribus), price and quantity demand of any good and service are inversely related to each other. When the price of a product increases, the demand for the same product will fall.” Important word: Scarcity Having less resources than we want ------------------------------------------------- Example 1.1: Why is the price for a big mac menu not the same in Denmark, Norway and the UK? Exchange rate Tax rate Salaries: Purchasing Power Market Different lifestyles GDP – Gross Domestic Product: good indicator of the wealth of a country - good to look at gdp per capita Y=C+I+G+(X-M) Yield (GDP)...
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...Global Social and Ethical Responsibilities Expanding to a global organization will present some ethical challenges to any organization. Every country has their own set of ethics, values, and moral standards. Most of these standards, ethics and values are set because of the economic status, religion and or the legal system of the country. In most instances the ethical and social responsibility can be extended to the company’s belief system of the country. When a company is venturing out, it is important that the company understand the other companies’ beliefs. The company must understand what is considered showing respect, what is an insult and what is different from day to day life in their country. It is necessary for a business to ensure that they know all the desires of the stockholders and attempt to meet most of those expectations in order for a business to be successful. When a domestic-only organization expands into the global arena it is a responsibility of the company to provide for quality research and training. The research will guide the training. The company staff and the different teams must be aware of the many different legal requirements of the host country as well as the strings of attachment still maintained here in the continental United States. Different protocols are extremely important, for example business takes place in some countries only after social affairs and meetings are done. Taking care of business over a meal or show is very...
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...Economic Incentives and Global Competition Florida Institute of Technology MGT 5100 The primary goal of state and municipal governments offering economic incentives was intended to encourage job creation. Because global competition facing U.S. companies has progressively increased over the years, domestic companies have been faced with two primary options in order to remain competitive; move their operations to lower labor cost regions outside of the United States or invest in technologies that lessened the necessity for expensive labor within the U.S., in which both would result in reductions in jobs and earnings within states and municipalities. Job retention became the primary focus after that. Financial incentives would be necessary to back programs in place to keep companies open and employees employed. Without it, the programs would plummet. State and local governments have been slow to react in changing their incentive programs to help keep jobs in tact, while foreign governments have reacted almost immediately, making their incentive programs much more attractive. This has affected several industries. While some states have experienced growth, there are more that are experiencing or have experienced reduction in operations and the closing of facilities. This eventually caused local governments to want to help out a little more. They have begun to arrange economic incentives for the purpose of keeping automotive operations and other industry operations and their...
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