...What is unemployment? How do we calculate it? What are the different types of unemployment? Which ones do you think are the most difficult for a country to resolve? Explain. Unemployment occurs when people are without work and actively seeking work. Unemployment is a barometer for economic well-being in other sectors of the economy. Unemployment is calculated through the unemployment rate. The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force. Labor force is calculated as Number of Employed + Number of Unemployed (seeking work). During periods of recession, an economy usually experiences a relatively high unemployment rate. There 3 main types of unemployment. The easiest type of unemployment to explain is known as frictional unemployment. Frictional unemployment is unemployment that occurs because it takes workers some time to move from one job to another. It is frictional because the labor market does not automatically match up all available jobs with all available workers. Instead, job search requires time for the right worker to find the right job. Both workers and society benefit when job applicants are matched to the appropriate job. Sources of frictional unemployment include the following: people entering the workforce from school; imperfect information (information about the availability of jobs); people re-entering the...
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...Gladwell’s “Outliers” challenges the theories that success is self-made. He discovers hidden advantages and opportunities that allowed for people to become successful. He defines an outlier as “a person who doesn't fit into our normal understanding of achievement”, and attempts to convince the reader these outliers are beneficiaries or extraordinary opportunity and special circumstances. Part one of “Outliers” is centered around “The Matthew Effect”, stemming from the Bible, as in Matthew, one of the disciples just happened to be at the right place, right time, when Jesus picked him to become a disciple. The statistical advantage of time is looked at extensively in chapter one. After attending a Canadian professional...
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...Carolyn Jackson International Business March 11 2013 Current Economic Status of China The Google definition of an economy is the wealth and resources of a country in terms of the production and consumption of goods and services. When looking at China from an outsider’s perspective the first three words that come to mind are innovative, growth, and mass-production. This is because over the last thirty years, Chinese economic growth in Gross Domestic Profit (GDP) has been a steady 8 to 10 percent making it the second largest economy in the world after the United States. China’s economy has been the envy of many nations and it will continue to grow and serve as a key player in industrial production. This research paper will discuss China’s current economy by looking at its advantages and disadvantages during its development. According to IndexMundi.com, a website that offers an economic overview of china’s economy as of 2012, in 2010 is when China became the world’s largest exporter. China is rapidly becoming a dominant world power. Its economy grew fascinatingly fast and they now have the second largest economy in the world. Even though this growth is very remarkable, China still faces a lot of issues. A major issue is that of the urban rural disparity gap. With a population of 1.3 billion, China is still considered a developing country. “China’s gross national income per capita of $4,940 ranked 114th in the world; and over 170 million people still live below the $1.25-a-day international...
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...X I N G TA I FOCUSED ON THE C A P I T A L CHINESE CONSUMER THIRD QUARTER 2012 REPORT Contents 内容 4 Managing Partner’s Letter 执行合伙人致函 6 XTC Statistics 星泰统计数据 7 About Xingtai Capital 关于星泰投资 8 Xingtai Hallmarks 星泰资质 10 Xingtai Differentiation 星泰差异化 12 Investment Universe 投资环境 14 Investment Opportunity 投资机会 16 Chinese Consumer Growth 中国消费者增长 19 XTC Research: Beijing’s Bicycle Rolls Onwards 星泰研究:北京的自行车继续飞驰 27 XTC Research: The Tribe of Empty Wallets 星泰研究:私募股权投资的前景 31 XTC Research: Hidden Affluence 星泰研究:中国人隐形财富 2 | XINGTAI CAPITAL Xingtai Capital is the only investment manager focused solely on listed Chinese consumer businesses. Xīng Taì (星泰) Xīng (星) – star. Taì (泰) – peaceful; very good state of being. Derived from Xingtai’s history of investment activity in China. 星月齐明, When stars and moon are bright and aligned, 国泰民安 then the country is peaceful and people are satisfied. 星月齐明, When stars and moon are bright and aligned, 保盈持泰 then a peaceful and prosperous state is maintained. XINGTAI CAPITAL | 3 Letter from the Managing Partner 致管理层及投资者： 中国消费群体日渐成长壮大，预示着良好的投资消费行业上市公司的机会， 星泰投资正是基于这样的信念而成立的。 然而，消费品行业只占中国股市的一小部分，对于期望投资中国消费增长 行业的投资者来说，挑战是巨大的。星泰投资能够战胜挑战，为您带来可 观的投资回报。 有意向的投资者和企业可以通过本文了解到我们的工作方法和流程：我们 是怎样研究行业，分析财务信息，以及如何审查商业模式。 我们计划频繁的会面被投资公司和目标投资对象。我们团队的部分成员曾 经是这些上市企业的管理者，可帮助我们提供更好的服务，为您消除疑虑、 抓住机遇。 我们珍惜投资伙伴赋予我们的工作机会，全力打造一个引人注目的专注于 中国消费品行业的投资组合。非常感激您给予的信任，我们时刻奋斗着， 努力成为可靠的透明的受托人。...
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...Letter to Editor of Xin Hua News. Dear Editor, What would happen to a child with no parents to take care of them during their childhood? Nowadays in China, many children are living in the countryside without their parents. The Chinese economy is rapidly growing, causing a big income inequality between the urban areas and rural villages. More and more people from the countryside are moving to the cities to work. However, their children have to stay in the rural area because their parents cannot afford to raise them in the city. Normally, these parents come back home once a year and stay for less than one week. So, children hardly have any time to spend with their parents during their childhood. According to a recent survey, there are more than 61 million (equal to the whole population of the United Kindom) stay-at-home children in China. 57.2% of them are taken care of by one of their parents, but for 42.8% of them, both parents are absent. Of the children living without their parents, 79.7% of them are taken care of by their grandparents,13% are cared for by the parents’ friends or relatives, and for 7.3% of them it is not known who is taking care of them. As we all know, an adult’s care is important to children. Without parents to take care of them, the mental health status of the stay-at-home children may be a big hidden trouble in the future. Some people think these children still have grandparents or relatives taking care of them. However, their grandparents also need to...
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...A. Income. in macroeconomics is more than the income received by employees in the form of salaries or wages. example, for households and individuals, income is the sum of all the wages, salaries, profits, interest s payments, rents and other forms of earning received in a given period of time. B. Consumption. Consumption means the expenditures made by households on goods and services. Example, consumer durable products like washing machines are consumed immediately after purchase. C. Multiplier Concept. The process of generating income through the circular flow exchanges between the households and firms. Example, We focus on current consumption on such goods as food and household items like washing machines and oven toaster. this is in contract to expenditures on capital goods such as housing which service as prepayments of long-run consumption. D. Savings, the portion of disposable income not spend on consumption of consumer goods but accumulated or invested directly in capital equipment or in paying off a home mortgage, or indirectly through purchase of securities. E. Taste and preferences. Taste and preferences depend on how products satisfy one's desires. A chance in collective attitude can change aggregate taste and preference, and in turn change the consumption level and marginal propensity to consume. Example, a family residing in Ilocos may consume less of every peso of income than a family of the same income level in living in an urbanized area like Makati...
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...integrate many countries into the global trade market. Countries in the Global North such as China and India have benefitted greatly by opening up their trade market. This provided people with job opportunities and higher incomes. But while the countries of the Global North continue to economically increase of because of trade market, the demand for imports and exports from the Global South become inevitable. As the Global North demand for more resources from the Global South, countries of the Global South don’t benefit from the situation. Countries such as Africa and Uganda have their resources exploited and continue to suffer from economic globalization. Within decades, globalization has continuously benefited the Global North. Countries such as China and India are great examples. Meredith, Hoppough, and Basu all explained the prosperity that the people have received from globalization. Economic globalization allowed China and India to create more business while providing more job opportunities for many people with the idea of higher wages. However, poverty rates continued to decline. According to Meredith and Hoppough, over 200 million people in China escaped poverty in the 1990s due to globalization. But not only did these people escape poverty; many of them were given the opportunity to upgrade to the middle class. While the number of people in poverty continues to decrease in China, the number of people being employed in India is also continuing to increase. Basu explains...
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...History of Shanghai Stock Exchange China Securities history can be traced back to the late Ming and early Qing Dynasty, in some high-income high-risk business areas, the mode of "investment funds, joint ventures" was operated, and the contract signed between the participants, to become China's first stock prototype. Before the Opium War between Britain and China, west countries international traders not only brought the opium to China, but also brought the advanced finance model and knowledge to china. The first foreign security was issued by a foreign enterprise in 1840s. In 1872, the first Chinese stock was issued by China's first joint-stock companies and the Chinese people. Securities promote the development of securities transactions and capital market. The beginning the Securities and Exchange were only foreigners, and later the Chinese businessmen started to use the securities transactions. China's first stock trading securities companies was established in 1869. One of Shanghai stock company was established in September 1882 and developed the relevant articles of association, the Securities and Exchange haphazard development has become more standardized. In 1891, the Shanghai Share brokers Association was established, which was regarded as the primitive form of stock bourses in china. In 1920 the Shanghai Securities & Commodities Exchange was established, and a year later the Shanghai Chinese Merchant Exchange began. They were combined in 1929, and were then named...
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... The Advantages and Disadvantages of China’s Apparel Manufacturing Industry China leads in the apparel manufacturing industry like the United States leads in cotton production. However, China’s dominance is much different than that of the United States. China is competitive in the apparel manufacturing industry with its quick and cheap labor. However, their low price of production comes at a high price of workers’ quality of life. Thus, China’s dominance has mainly been a disadvantage to workers, yet the hardships within China’s apparel manufacturing industry have surprisingly resulted in advantages. In order to understand the advantages of China’s apparel manufacturing, one must consider the history of China, the workers’ characteristics, and the positive effects of global trade. Historically, China was not expected to dominate the apparel manufacturing industry. Instead, Chinese families worked slowly, yet efficiently to produce and create clothing. However, Britain surpassed the Chinese with the Industrial Revolution. Inventions like the spinning jenny spurred apparel manufacturing. New England slyly acquired Britain’s patented technology and spearheaded apparel manufacturing. Later, the South dominated manufacturing because of slavery and sharecroppers. However, Southern farmers exported to Japan, who had cheaper labor. Soon, China, Taiwan, and Korea surpassed Japan. “Today, China is not only the largest buyer of American cotton, it is also projected to soon produce...
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...Disadvantages Of Obamacare Many Americans today living in the U.S. are insured with Obamacare. On the other hand, Americans need to realize that Obamacare also have many disadvantages on it's side too. Obamacare's main disadvantages include high costs on most plans, hidden fees, and expensive taxes. For instance, Americans need to do their homework and study their plans because some plans can be ridiculously expensive. If they're not careful of choosing what plans that fits their needs, they can drain all the money out of their pockets real quickly. Ever since the Affordable Care Act was signed in 2009, high-deductible plans have doubled. By 2018, many employers are moving to less generous plans so that they can dodge a tax penalty. Americans who are insured through their job has the greatest deal but it's going to turn ugly once they go through the ObamaCare plan. According to an IBD analysis, in eight states an average price for the lowest-cost Obamacare is the "bronze" plan which is 122% higher than the cheapest plan currently available in those states.(Investors Business Daily. 8/5/2013, pA01. 1p.) Here are some ridiculous prices of the "bronze" plan for the eight states: · Ohio: A 25-year-old will pay $1,956 a year. This is insane because the price is THREE times higher than the cheapest plan in that state today. · Virginia: In this state the "bronze" premium is $1,608 and it's 252% higher than the cheapest plan in that state today. · Maryland: ObamaCare plan...
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...“LAST TRAIN HOME” A CASE STUDY OF THE CHINESE RURAL MIGRANT WORKER Introduction China's massive population has always been a major difficulty for the government as it has struggled to provide for it. The major economic changes of China in the last decade have brought on new and different economic and social challenges. Some of these issues are depicted in the documentary film “Last Train to China.” The purpose of this paper is to discuss some of these points that the film brings to light and see how they affect China today. Media reports on social and economic conditions in China present a contradictory picture. The cliché that hundreds of millions of people have been 'lifted out of poverty' is repeated again and again, alongside lurid accounts of worsening social problems which threaten to engulf the country in conflict. Both of these claims have a basis in fact. Most people, not only the rising class of millionaires, have gained materially as a result of China's huge increase in GDP. However, because of the increased role of the influence of the market and the breakdown of socialist institutions, this added wealth has been accompanied by many damaging effects such as mass unemployment, inhumane and dangerous working conditions, and inadequate health care. Some of these effects and the consequent breakdown of the traditional Chinese social structures, especially in the rural areas are seen in real life in the “Last Train”, and will be analyzed in this paper. ...
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...the strength of its portfolio and its presence in more than 180 countries, P&G's performance in global markets is far from amazing. Global growth has roughly been 3% on a dollar basis for the past few years. Considering that there's an emerging middle-class in emerging economies, P&G could not only find a growth catalyst but also find high-profit situations abroad. Big companies such as Procter & Gamble target emerging markets because they are determined to grow. Their strategy is to capture as much customers as they can. Procter & Gamble had a goal of reaching a billion more consumers by penetrating the emerging markets with the most population and development such as India and China. Besides, the survey from Millward Brown in 2013 does show a promising market in China for Procter and Gamble. By doing this, they are creating a profitable future; with their net sales grew 5% ($82.6 billion) for...
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...In 2008, during the financial and economic crisis which swamped the world economy in 2008 had impacts on foreign direct investment (FDI) that had become the major driver of the globalization process. The Chinese stimulus program to get the country through the global crisis was much criticized by western experts, because it was thought to extend the Chinese development model which is strongly based on exports and investments in infrastructure and favors state-owned enterprises. Yet, during the global financial and economic crisis China succeeded to remain a much favored location for inward FDI compared to other destinations of FDI and already registered an early rebound of the incoming flows at the end of 2009. Also despite the crisis China’s outbound FDI continued to expand, not only to get hold of scarce resources in mineral rich countries, but even more so for market seeking reasons in developed countries. Factors Influencing FDI into China China has many precise advantages...
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...Americans do significantly poorer in education. And for those who do finish college, there is a lower return on investment as Asians are found to make less than their equivalent white counterparts. Immigrant Asians are also many times relatively privileged to begin with. It is because of their privilege that they are able to immigrate in the first place. Another factor that skews that data when looking at successfulness is the size of Asian households and how that affects household incomes. Because of how family dynamics work for Asians, sometimes Asian households consist of more than just the nuclear family of a mother, father, and children. It may also include the grandparents and cousins or children of working age, all contributing to the household income thereby making it appear that Asian American households have higher incomes than white households even though there are more people contributing to it and more people dependent on it. Asians also many times reside geographically in cities where their income is higher, but so too is the cost of living. Perhaps the greatest example of the misrepresentation is when Asians are then broken up to different ethnic groups. By doing so, it can then be seen that not all Asians are doing well. For those that seem like they are doing well, they still are not rising to what their exact white counterparts are in terms of management. The second reason that the model minority myth is rejected is that it is used to also demean other races. Particularly...
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...Microeconomics Paper: Economic systems Yang Cong Professor Memmos Aug 1st, 2012 Table of Contents 1, Introduction of economic systems 2, the analysis of capitalism 3, Example of capitalism: the U.S. 4, the analysis of socialism 5, Example of socialism: China 6, the analysis of communism 7, Example of communism: North Korea 8, my favorite one is socialism 9, Conclusion There are three main economic systems in the world which are capitalism, socialism and communism. Nowadays, most developed countries are capitalism and they have certified that capitalism is better; the greatest developing country which owns the second high GDP in the world, China, is socialism, it seems that socialism is not bad; only a few countries are still communism like North Korea which has a low economic increment speed. Different systems have their own advantages and disadvantages, so it is necessary for the government to figure out which one is suitable for their countries. “Capitalism is an economic system that is based on private ownership of the means of production and the creation of goods or services for profit. Competitive markets, wage labor, capital accumulation, voluntary exchange, and personal finance are also considered capitalistic (Wikipedia).” Capitalism can greatly promote economic development, this is the main feature of capitalism. The necessary material of human is produced by human labor, the purpose of economic activity is to save labor time which is also the greatest...
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