...Abstract This report explains the connection between international trade and world output. International trade exchanges goods throughout the world through imports and exports which allows customers throughout the world to acquire goods and services that cannot be acquired in their own countries. If the nations of the world were to suddenly cut off all trade with one another, there would great suffrage for many countries. The Relationship between International Trade and World Output According to Businessdictionary.com, international trade is the exchange of goods or services along international borders. This kind of trade allows for greater competition and more competitive pricing in the market and the competition results in more affordable products for the consumer. The exchange of goods also affects the economy of the world as dictated by supply and demand, making goods and services obtainable which may not otherwise be available to consumers globally. World output is defined as the global quantity of economic production observed within a given time frame. An increase in world output would lead to an increase in international trade and if there is a decrease in world output, this leads to a decrease in international trade. An important pattern of international trade is the Heckscher-Ohlin which explains why countries trade goods and services with each other. One condition for trade between two countries is that the countries differ with respect to the availability...
Words: 576 - Pages: 3
...Introduction to International Business May 6, 2012 Abstract When you talk about international trade and world output, you will be describing the relationship between supply and demand. We will be discussing and providing example which is the specific countries which are the United States and China. International trade is the buying and sale exchange of goods and services between two countries. (Griffin, Pustay 2010) International trade is very important for any country to do business with another country specially in exporting of goods and services and also to import goods and services into a country which the country do not have readily accessible too. Trade between two countries provides good choices for the consumer and jobs for many people in difference country. 1. Explain the relation between international trade and world out. The given quantity of world output within a year will cause some changes in the international trade. When countries slow down on it economic output the international trade in volume will slow down. The same thing will happen when the world output is higher the international trade will be higher. Trade will go up and down do, to the consumer not spending to buy or sale their goods and services. When a recession is in a country the consumer will not buy or sale their goods and services. The exchange rates will cause problem in international trade. When a country currency begin to weaken which will cause the other countries a problem...
Words: 642 - Pages: 3
...within a country is called a trade. Through the trading process people of the respective countries or states gain a greater choice of products or services that otherwise would not be available to them. For example let’s take a look at United States and Finland. Although United States has vast forests, they can lack a certain quality that is in demand for the country, in this case the wood- based products from Finland might be of a certain quality that fills a gap in the U.S. marketplace (2008, John J. Wild). In order to fulfill the need U.S. would either purchase, sell, or exchange goods to fulfill there demand. In the olden days trade was done in a form of barter system. This is where commodities were exchanged rather then currency. Commodities that were being exchanged had equal values and were equally desirable to both parties (indianchild.com). In the modern world, money is used for exchange and the barter system is extinct. The concept of trade is centered on the simple activity of the exchange of goods and services. In relation to trade and world output, we must remember that world output almost always will influence the amount of international trade. If the world economic output decides to take a slump then it will cause the level of international trade to slow down. On the flip side if output increases then it will generate a larger amount of International trade (Associated Content, 2009). However, the primary reason why Trade and World Out put are closely related because...
Words: 960 - Pages: 4
...the 1920s, the United States boasted the largest economy in the world. With the destruction wrought by World War I, Europeans struggled while Americans flourished. Upon succeeding to the Presidency, Herbert Hoover predicted that the United States would soon see the day when poverty was eliminated. Then, in a moment of apparent triumph, everything fell apart. The stock market crash of 1929 touched off a chain of events that plunged the United States into its longest, deepest economic crisis of its history. Nine thousand banks failed during the months following the stock market crash of 1929.It is far too simplistic to view the stock market crash as the single cause of the Great Depression. A healthy economy can recover from such a contraction. Long-term underlying causes sent the nation into a downward spiral of despair. First, American firms earned record profits during the 1920s and reinvested much of these funds into expansion. By 1929, companies had expanded to the bubble point. Workers could no longer continue to fuel further expansion, so a slowdown was inevitable. While corporate profits, skyrocketed, wages increased incrementally, which widened the distribution of wealth. The richest one percent of Americans owned over a third of all American assets. Such wealth concentrated in the hands of a few limits economic growth. The wealthy tended to save money that might have been put back into the economy if it were spread among the middle and lower classes. Middle class Americans...
Words: 1533 - Pages: 7
...day started normally in the World Trade Center. In the Twin Towers the usual number of employees was 14,154. Approximately 14,000 people were present at the time the first commercial aircraft hit the North Tower. American Airlines Flight 11 crashed into the North Tower at 8:46:40 a.m. The aircraft cut a swath through 8 floors–from the 93rd to the 100th–as it hit at about 450 miles an hour. At least 60 people jumped from the North Tower rather than burn to death. One firefighter was killed after being hit by one of the jumpers. Not only is this unfortunate, but also we lost many people, and some of them were firefighters at the World Trade Center. The firefighters never had a chance to put out the fire because it was a high-rise fire. A high-rise fire can only be extinguished from inside the building because no ladder truck and no stream of water can reach that high, making it the most dangerous type of fire to fight. In many cases, the only hope is that the building remains standing and the fire burns itself out. However, the firefighters took risks to save a number of people. Also, many firefighters were too tired to keep moving during the search and rescue operation. Some of those did not want to face the danger again of the crashing building. They were scared to go in but had to go, even if they had to sacrifice themselves because of their responsibility. As many people illustrate, firefighting is the riskiest profession in the world for the following three reasons:...
Words: 1371 - Pages: 6
...I. Introduction Free trade, the ever present driving force behind our national and world economy, is a trade policy embroiled in controversy. It is considered by most economists to be an almost perfect trade policy, barring a few negative effects. Free trade has been shown to increase production, output and income levels in an economy. However, there are many people that view free trade as destroyer of economies and a catalyst of poverty. Critics of free trade have pointed out that in the short-run, free trade causes a loss of jobs which in turn causes a rise in poverty levels. It is interesting to note that the argument for free trade and the argument against free trade are inverses of each other. Proponents of free trade see it as a tool to stimulate an economy while detractors see it as a policy which exacerbates poverty, causes dependency and reduces economic stability. In general, there is no consensus on free trade. Economists see free trade as the devil that we know. While imperfect, it is the best we have to work with. Popular opinion sees free trade as a cause of inequality. Even though it alleviates poverty and causes economic stimulation in the long-run, it can cause the exact opposite in the short run. The pros and the cons of free trade must then be weighed, which will then allow us to determine if free trade is truly a beneficial trade policy. Therefore, this discussion will weigh the benefits and harms of free trade and will prove that although...
Words: 3285 - Pages: 14
...Abstract This assignment is submitted as partial requirement of Global Trade. This report depicts the sequences of Berlin Wall. The Berlin Wall, erected November 13, 1961, served to separate communist East Germany from Western influences. Intended to "protect" East Germans, the wall actually was erected to prevent them from leaving the country. The Wall finally came down August 13, 1989, reuniting families and symbolizing the end of the cold war was near. The initial plans for Allied occupation of Germany were prepared in 1944 in London by the European Advisory Commission. In this agreement, Germany would be divided into four occupational zones governed by Great Britain, the United States, France, and the Soviet Union. The city of Berlin, which would be in the Soviet occupational zone, would be divided among the four powers as well. By the time of the blockade, there was a major contrast between the East and West Berlin. West Berlin was a thriving democratic, capitalist city, while East Berlin was in drab poverty. Trying to escape the forced collectivization of goods and agriculture, numerous shortages, and a police state, many fled to West Berlin. To maintain the stability of the communist regime, the East German leaders felt that these floods of people had to be stopped. TABLE OF CONTENTS Page 1. Introduction…………………………………………………………..….3 1.1 Summary...
Words: 1554 - Pages: 7
...concern. What's worse, they don't have the capacity to do much about it. Greece can't artificially change the buying power of their currency because they are part of the eurozone, and they can't easily raise taxes because they don't have an efficient or well-developed system of collecting taxes. If all of that isn't enough, the citizens of Greece are growing increasingly upset with their government, which is causing political turmoil as well as economic. Greece owes so much money to other countries that each citizen owes $40,000! 1. We Live in a Global World The world is no longer a collection of countries, many of which have little effect on each other. Because of the large-scale innovations in technology over the past 20 years, the world is now completely interconnected. When something happens to one country, the entire globe is affected. How does Greece directly affect citizens on the other side of the world? Reuters reports that North American banks only have approximately $32.7 billion tied up in Greece but this is...
Words: 7912 - Pages: 32
...Margin buying in particular proceeded at a feverish pace as customers borrowed up to 75 percent of the purchase price of stocks. That easy credit lured more speculators and less creditworthy investors into the stock market. (http://www.gusmorino.com/pag3/greatdepression/) The Federal Reserve board warned member banks not to lend money for stock speculation because if prices dropped, many investors would not be able to pay back their debts. No one listened. The stock market began sliding in early September, but people ignored the warning. Then on "black Thursday" (October 24, 1929) and again on "black Tuesday" (October 29, 1929) the ball dropped. More than 28 million shares changed hands in frantic trading. Overextended investors, suddenly finding themselves in heavily in debt, began selling their stocks. Many found that no one would buy anything at any price. Overnight, stock values fell from a peak value of 87 billion dollars to 55 billion dollars. (http://www.geocities.com/greatdepressioninfo/classic_tan.html) The crash was felt far beyond the trading floors. Speculators who borrowed money from the banks to buy...
Words: 1071 - Pages: 5
...Is there a coming economic collapse? When will this happen? How will this affect us? Many wonder what the future is for the global economy. Over the last few years economists have been expressing increasing concerns about the direction the global economy is going in, and the possibility of a worldwide depression. They have been warning about the growing global imbalances in the world economy, and the consequences if not corrected. Yet we live in a time where the global economy is booming, especially in the Anglo-Saxon and Asian economies. Consumer spending is up. House prices around the world have risen dramatically. Unemployment remains low. The global economy has experienced the longest period of sustained economic growth in recent history. The US$ continues to remain stable. Why has the global economy experienced such strong growth? Will this growth continue? What does the future hold? Interestingly, some of the stimulus for the growth the global economy has recently experienced is a result of decisions made following Sept 11th. Already, prior to Sept 11th the US Federal Reserve was maintaining a loose fiscal policy in an effort to stimulate economic growth in the US economy, which had slowed down following years of strong growth during the Clinton administration. Then along came Sept 11th, which threatened to destabilize the American banking system. To prevent this happening, the Fed injected billions into the banking system to provide sufficient...
Words: 2156 - Pages: 9
...Part I: Pre-crisis time, what caused crisis, reasons of collapse In 1920s the economic progress in United States seemed everywhere, as Americans emerged from the self-imposed rationing and sacrifice of World War I and went on a buying spree. Millions of people across the country bought their first everything—their first automobile, washing machine, camera, radio, refrigerator. These products came off America’s assembly lines in an endless stream. More people were at work in U.S. factories and production plants than ever before, producing more goods than ever before. The U.S. economy was sometimes compared to an economic miracle. Consumers in the United States were not the only ones to experience good times. U.S. investors had also had a field day. Overseas, U.S. investments nearly doubled from $3.98 billion in 1919 to $7.5 billion by 1929. The New York Stock Exchange, which served for many as the truest indicator of the nation’s economic pulse, enjoyed phenomenal growth, especially after 1923. Stock purchases on the Exchange increased four-fold between 1923 and 1930. And stock sales were only outstripped by the rise in stock prices. Altogether, investment in the stock market and in bonds rose sharper than any other economic indicator during the decade, faster, in fact, than the actual production or sales of manufactured goods. During the 1920s a would-be investor could make his or her stock purchases largely on credit. Under the rules in place for the New York Stock Exchange,...
Words: 4815 - Pages: 20
... Even during the robust economy of the late 1990s, many large Companies were shedding jobs at an incredible pace. Terms such as downsizing and rightsizing may suggest a one-time fix, but many experts view this as an ongoing process for organizations of the future (Richman, LS, 1993). So what is organizational change? Organizational changes are departures from the status quo for smooth trends (Huber, GP, 1995). It is the process of altering or modifying the current state in terms of behaviors or functions (Harrington, N, 2008). The forces of change are everywhere, they can be found within the organization itself and they can be found in the external environment. The internal environment is affected by the organization’s management policies and styles, system and procedures as well as employee attitudes. The external environment is affected by political, social, technological and economic stimuli outside of the organization that causes changes (Benowitz, EA, 2011). Why do organizations change? Organizations change for many reasons but there are six broad forces that bring about change: workforce changes, such as diversity; technology changes, such as mobile computing; economic changes, such as stock market fluctuations; competitive factors, such as mergers and acquisition, social trends and world political factors, such as china opening up for trade (Robbins, SP, 2005). Here, we are going to focus on world political factors as they are major factors that cause organizational change...
Words: 2351 - Pages: 10
...----------------------------13-15 Works Cited-----------------------------------------------------------------------------------------------16 Section 1: Introduction The United States should institute a blanket reform of its international trade policies. Its current protectionist practices are both in violation of current World Trade Organization suggestions and mandates and, far from being beneficial to the American economy, for the most part serve to hurt both American and foreign consumers. There are few American markets not protected in some way by the Federal Government in the form of tariffs, quotas, or domestic subsidies. While these practices are touted as an aid to domestic manufacturing process, true economic analysis shows that most if not all protectionist measures actually serve to limit economic growth. The arguments given to justify protectionism range from the poorly-disguised corporate handout to downright racism, while the few good reasons for it such as to protect 'sunrise' or developing industries do not apply to the United States. Section 2: What is Protectionism? Protectionism, defined simply, is any form of barrier to free trade that a governing body places on a market. By this definition, any trade legislation that the government...
Words: 3525 - Pages: 15
...all learn to regret. The initial response to the devastation was all focused of middle-eastern terrorists. “The West is under attack,”(Posner 89), reported the USA Today. Every news and television station had the latest expert on the middle east telling the nation that we were victims of jihad, holy war. It only took a few quick days to realize that we were wrong and the problem, the terrorist, was strictly domestic. But it was too late. The damage had been done. Because America jumped to conclusions then, America was later blind to see the impending attack of 9/11. The responsibility, however, is not to be placed on the America people. The public couldn’t stand to hear any talk of terrorism, so in turn the White House irresponsibly took a similar attitude. They concentrated on high public opinion and issues that were relevant to Americans everyday. The government didn’t want to deal with another public blunder like the one in Oklahoma City. A former FBI analyst recalls, “when I went to headquarters (Washington, D.C.) later that year no one was interested in hearing anything about Arab money connections unless it had something to do with funding domestic groups. We stumbled so badly on pinpointing the Middle East right off the bat on the Murrah bombing. No one wanted to get caught like that again,”(Posner 90). All of these decisions, made at the hands of the faint-hearted, opened the doors wide open, and practically begged for a terrorist attack. So who’s fault is it? The public’s...
Words: 2211 - Pages: 9
...the morale of the continental army was at the lowest point of the war. Congress was bankrupt due to rampant inflation caused by the mass production of continental dollars. The continental army was being trounced in the south by the British who had regained South Carolina and Georgia. Also many of the men in the continental army were mutinying. However in July of 1780 a French force landed in Newport, Rhode Island and this boosted American morale greatly (Fleming 11-13). Russia had suggested peace negotiations between the Americans and the British however the Americans were sure that they would not be allowed their freedom or unity as the thirteen colonies. If they had entered peace negotiations without new major victories then even if they had gained their freedom they would not have been unified and would have quickly been taken over by the British once more. Washington planned to gain a major victory by recapturing New York from the British. He had sent the Marquis de Lafayette to counter the British invasion of Virginia and had sent him a message regarding his plans towards New York, however the message was captured by the British and the plans were discovered (Fleming 14–16). General Rochambeau dissuaded Washington of attacking New York and persuaded him to rather attack Cornwallis. Cornwallis had given up his campaign in the Carolinas because he had been defeated by Daniel Morgan in the Battle of Cowpens and had won a Pyrrhic victory against Nathaniel Greene in the Battle...
Words: 3545 - Pages: 15
