...What Is Globalization? Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international tradeand investment and aided by information technology. This process has effects on theenvironment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world. Globalization is not new, though. For thousands of years, people—and, later, corporations—have been buying from and selling to each other in lands at great distances, such as through the famed Silk Road across Central Asia that connected China and Europe during the Middle Ages. Likewise, for centuries, people and corporations have invested in enterprises in other countries. In fact, many of the features of the current wave of globalization are similar to those prevailing before the outbreak of the First World War in 1914. But policy and technological developments of the past few decades have spurred increases in cross-border trade, investment, and migration so large that many observers believe the world has entered a qualitatively new phase in its economic development. Since 1950, for example, the volume of world trade has increased by 20 times, and from just 1997 to 1999 flows of foreign investment nearly doubled, from $468 billion to $827 billion. Distinguishing this current wave of globalization from earlier ones, author Thomas Friedman has said that today...
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...Current Account Imbalance of the Kyrgyz Republic Name Institutional Affiliation Current Account Imbalance of the Kyrgyz Republic A country’s current account is a critical indicator of the economy’s health and delineates the difference between a nation’s investments and savings. Being the sum of the balance of trade, net current transfers and remittances from abroad, a current account has the potential to indicate to investors that whether a country relies on borrowing to funds its operations or lends to others for the same reasons. The objective of this paper is to critically evaluate the current account imbalances of the Kyrgyz Republic, identify the economic contributors to the imbalances and recommend corrective measures through policy development and implementation. The current account deficit can largely be described as a significant percent of a depressed level of the Gross Domestic Product (GDP). Since the deficit emerged early after the country’s transition into an independent state from the Soviet Union, it is largely attributed to the alarming situation where the capital inflows in the country were larger at the beginning of the transition but have since leveled off. In addition, the high demands for imports and exposure of the country to external shocks are among the factors that have caused the country’s foreign exchange reserves and foreign direct investments to declines. These result in a balance of payment crisis that are further exacerbated by the financial...
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...recession. As known to all, financial crisis brought to United States economy slowing down and it has spread globally effecting all countries. Economic recession directly influenced on income level and employment. In addition, consumption levels have fall off drastically. Such two characteristic factors make me interested in the relationship between luxury brand and Economic recession. So I researched the ideas and found a few books which talked about the luxury brands in Asia under economic recession. The literature review will pay attention to a book on the cult of Luxury Brand, Impact of Personal Orientation on Luxury Brand Purchase Value, Shopper Behaviour in Recession and impulsive buying behaviour in recession. Radha Chadha is one of the most famous expert in marketing and consumer research in Asia. In the book of the cult of the Luxury Brand which presented the "lux- plosion" or the explosion of luxury brands in Asia. This book shows up the paradox of the luxury brands management in Asia market and tries to redefine the new age luxury brand...
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...Impact of Global financial crisis On Pakistan By: Nauman Ayubi Butt Roll # 8511 Table of contents 1) Reason of choosing this topic 2) Introduction 3) The term ‘Financial Crises’ 4) Financial Crisis 2007-2009 5) Causes of the crisis 6) The crisis getting global 7) The Financial crisis and Pakistan: 8) Sectoral impact of the crisis in Pakistan: 9) External sector impact i) Exports ii) Imports 10) Financial Sector impact on i) Foreign exchange ii) Banking sector iii) Circular debt iv) Stock market: 11) Inflation 12) Economic business sector impact i) Impact on textile industry 13) Social Sector Impacts 14) Poverty and unemployment: 15) IMF 16) Technique to tackle the situation Reason for choosing this topic: The reason for choosing this topic is that it has a direct relationship with the poverty, unemployment, literacy, wealth distribution and also with the increased level of terrorism in Pakistan. Introduction: Capitalism is an economic system in which land labor production pricing and distribution are all determined by the market. There is a strong history of capitalism that it can shift from extended period of rapid growth to very short periods of contraction The global financial crisis in 2008-09 which are still on the go, they actually started from the 20th century and they have been increasing since then. In the end of 20th century the U.S housing prices after a multiyear started declining, the mortgage prices had been at...
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...The article ‘Beware China and the Business Cycle’ featured in The Financial Review discusses the potential impacts of China’s slowing growth rates on the global environment. The issue is that the Chinese economy has become a significant world player and “the evolution” of its business cycle will have severe knock-on effects on the rest of the world economy, particularly in Australia. The article highlights the economic implications of China’s slowing growth rates as Australia’s most important trading partner; for example Boyd reports that China’s imminent economic performance “will have a direct bearing on the Australian dollar” which is a “proxy for investment in developing Asia”. Boyd also argues that “Australia is at stake...if China’s economy stumbles” because China is a major investor in Australian resources and infrastructure. Boyd emphasises that due to Chinese demand for Australian commodities, a downturn in the US economy no longer has an immediate impact on the Australian economy. Further, of global lending, Boyd says that “banks are still pumping money into China” because they are heavily relying on the “Chinese miracle economy” to grow for some time. The article reports that high-inflation and a decrease in money supply are causing the Chinese economy to contract. As China is a globalising economy, these contractionary factors have implications not only for China, but for global economies. The reported downturn of China’s economy relates to aspects of CISS2001. This...
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...Term Project ON Euro Crisis: Origin, consequences and impact on world and Indian economy Submitted By: Ajay Sharma 2011SMF6623 Nitesh Goyal 2011SMF66 Sajal Agarwal 2011SMF66 Contents Description | Page No. | | | | | | | | | | | | | | | | | | | | | | | Impact on India | | Impact of FDI in India | | Snapshot of impact on India | | Conclusion | | References | | Impact on India Though India is primarily a domestic economy, India’s exports are positively linked to the global economic growth. This is likely to adversely impact India’s export growth in the coming months. However, growth will be only marginally affected by the slowdown in the euro region debt stricken countries as our exposure is low. Software services and other export oriented sectors would benefit from the rupee depreciation. FDI has not been significantly affected by the crisis while the FIIs are showing outflow in the last couple of months. International commodity price moderation is not being translated in domestic prices. Inflationary Concerns: Further, exchange rate depreciation would worsen the inflationary conditions in the economy. Therefore, the RBI would have to continue with its anti-inflationary stance in the near term if domestic conditions do not improve Source: World Bank, Ministry of Commerce, Government of India Interpretation of Graph - Graph 1 show that the share of the euro zone exports...
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...Monday report. Meanwhile, positive factory production is another bright spot, with annual industrial output expanding 4.2 percent in July, 6.3 percent in August and 3.6 percent in September. The upshot is ultimately buoyed growth, but it's still far from full-throttle, said Vishnu Varathan, senior economist at Mizuho Bank. "Admittedly, with softer inflation boosting consumption, a less dire-than-expected monsoon outcome and nascent industrial uptick, India is still the bright spot in Asia. But growth momentum is not, as yet, on a solid footing." Experts widely agree that India's biggest problem is a negative output gap, i.e. the difference between actual production and what could be produced under full capacity. "We believe that the root cause of the challenging macro environment in India over the past few years has been the sharp deterioration in the productivity dynamic. This stemmed from a high fiscal deficit, high rural wage growth, negative real interest rates and slowdown in the government's executive decision-making process," Morgan Stanley said. The Reserve Bank of India (RBI) has slashed interest rates by a total of 125 basis points throughout the 2015 calendar year, but that's failed to...
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...| INDIA AND SUBPRIME CRISIS | | INDIA AND SUB-PRIME CRISIS Sub-prime, as the word suggests, is something that is not prime. In the Sub-prime crisis context it simply means lending money to Sub-prime borrowers i.e. lending to people with low or poor credit worthiness. Sub-prime crisis was caused because the lending norms in the USA were very lax. It is joked about in the academic circles that any man who was not on a respirator was given a loan without any regard to his or her creditworthiness. This was brought about by the “Spend yourself out of the post dot com bust recession” policy of the American government at that time. The end result of the Sub-prime crisis is manifesting itself in myriad ways. There are direct and indirect implications not only for the United States but for the entire world. The Sub-prime that was brought upon by the American financial system upon itself is spreading its tentacles around the world. People who were not even remotely connected with the Sub-prime crisis are being adversely affected. National Bureau of Economic Research (NBER) National Bureau of Economic Research (NBER) is the official agency in charge of declaring that the economy is in a state of recession. They define recession as: “significant decline in economic activity lasting more than a few months, which is normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales”. BUSINESS CYCLE The term business cycle (or economic cycle)...
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... | Executive Summary This report first analyzes the economy of Chile in terms of strengths, which are the abundance in natural resources, and the weakness of heavy reliance on copper. Then identified two severe threats the nation was facing in 1998: Asian financial crisis and current account deficit. The two threats interact with the characteristics of Chilean economy which lead to the risks of currency crisis and a economic slowdown. The second section then investigates Chile’s current policies on inflation, trade and exchange rate. In terms of inflation, the central bank uses tight monetary policy and controls on capital inflows such as Unremunerated Reserve Requirement. For trade, the country relies on entering free trade agreements. For foreign exchange policy, Chile maintains a crawling peg system but is increasing the trading band. Facing the current challenges, we recommend that Chile should focus first on solving the potential currency crisis, then the economic slowdown. To avoid a currency crisis, the central bank of Chile should continue the tight monetary policy by raising interest rate. This practice can stabilizes the domestic currency value, attracts international capital and increases domestic savings. Focus directly at reducing current account deficit, Chile should also...
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...Financial Markets & Institutions Group Assignment Yuan Devaluation Group 2 Group Members Kouadio Dieudonne XPGDM-18 Rohit Khandelwal XPGDM-28 Shruti Tibrewal XPGDM-32 COUNTRY AT A GLANCE Population | 1.364 billion | 2014 | GDP | $10.35 trillion | 2014 | GDP growth | 7.3% | 2014 | Inflation | 2.0% | 2014 | CHINA Economic Overview The Chinese economy experienced astonishing growth in the last few decades that catapulted the country to become the world's second largest economy. In 1978—when China started the program of economic reforms—the country ranked ninth in nominal gross domestic product (GDP) with USD 214 billion; 35 years later it jumped up to second place with a nominal GDP of USD 9.2 trillion. Since the introduction of the economic reforms in 1978, China has become the world’s manufacturing hub, where the secondary sector (comprising industry and construction) represented the largest share of GDP. However, in recent years, China’s modernization propelled the tertiary sector and, in 2013, it became the largest category of GDP with a share of 46.1%, while the secondary sector still accounted for a sizeable 45.0% of the country’s total output. Meanwhile, the primary sector’s weight in GDP has shrunk dramatically since the country opened to the world. China weathered the global economic crisis better than most other countries. In November 2008, the State Council unveiled a CNY 4.0 trillion (USD 585 billion) stimulus package in an...
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...World Economic and Financial Sur veys Regional Economic Outlook Middle East and Central Asia 09 I N T E R N A T I O N A L M O N E T A R Y M AY F U N D W o r l d E c o n o m i c a n d F in a n c i a l S u r v e y s Regional Economic Outlook Middle East and Central Asia •••••••••••••••••••••• 09 I N T E R N A T I O N A L M O N E T A R Y F MAY U N D ©2009 International Monetary Fund Cataloging-in-Publication Data Regional economic outlook : Middle East and Central Asia. – [Washington, D.C.] : International Monetary Fund, 2009. p. ; cm. – (World economic and financial surveys, 0258-7440) ISBN 978-1-58906-842-1 “MAY09.” Includes bibliographical references. 1. Economic forecasting – Middle East. 2. Economic forecasting – Asia, Central. 3. Middle East – Economic conditions. 4. Middle East – Economic conditions – Statistics. 5. Asia, Central – Economic conditions. 6. Asia, Central – Economic conditions – Statistics. I. International Monetary Fund. II. Series: World economic and financial surveys. HC415.15.R445 2009 Please send orders to: International Monetary Fund, Publication Services 700 19th St. N.W., Washington, D.C. 20431, U.S.A. Tel.: (202) 623-7430 Fax: (202) 623-7201 E-mail: publications@imf.org Internet: www.imfbookstore.org The views expressed in this publication are those of the contributors...
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...package 5 2.2 Government’s guarantees 5 2.3 Mining Boom5 3. Australian economic growth6 3.1 Investment of mineral resources 6 3.2 China’s economic development6 3.3 Low interest rates6 4. Australian economic vulnerabilities (weaknesses)7 4.1 Crisis in banking sector of European and United States 7 4.2 Development slowdown in China7 4.3 Global Climate 7 5. Recommendation8 5.1 Recommend and supporting reason8 Reference List9 Executive Summary The purpose of this report is to explore and analyse the topic of ‘Australia’s economic growth relies on Asia’s continuing demand for resources’. This has been done by finding Australian economy, Australian economic growth and the vulnerabilities of its economy. This report has found out that Australian economy able to cope crisis because of the stimulus package, government’s guarantees and mining boom. For the growth of demand in mineral resources are affected by the investment, China’s economic development and low interest rates. Nevertheless, there’re several vulnerabilities of Australian economy which are slowdown in China, crisis in European and US and the climate. The report recommends that diversify its industries and export markets will be the best way to reduce its vulnerabilities on Asian demand. 1. Introduction 1.1 Overview of the task This report will deal with the issue of Australia’s economic growth which is depends on Asia’s continuing demand for...
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...exposed its defects with increasing of the resources and environmental issues. Like the news article write, although China's GDP in recent years has greatly improved, China and developed countries still have a big gap. GDP does not reflect the real employment situation and the improvement of social welfare. The GDP slowdown of China is a good opportunity for structural adjustment. One of the most important measures is to remove the irritating policy and turned to rely on economic endogenous forces to achieve growth. Premier Wen said that China's economy has downward pressure, but reducing speed is mainly to structural adjustment and truly achieve the real high-quality growth. This was also his request on the "quality" of economic growth. Keith (2012) states that “Slower growth partly reflects a government attempt to shift the economy more toward personal consumption, with less emphasis on exports and investment in big domestic construction and infrastructure projects.” As the economy moves into 2008, it faces a growing multiplex of problems. Export growth is expected to continue to temper as the negative impact of the U.S. downturn is compounded by slowdown in the European Union and Japan. As downside risks mount in the external environment, more aggressive monetary tightening is required to contain risks generated by the sustaining investment boom while high inflation will undermine consumer spending power. However, aggressive monetary tightening could rob the economy of...
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...particular concern (Stewart 2012). Application of Concepts Both economic environment and the concept of corporate social responsibility (CSR) can be demonstrated in this article. In particular, the nature of BHP's mining business, which is regarded as a significant contributor to Australian economy (Maddock and McLean 1987) determines its need to pay close attention to the opportunities and threats posed by the global economic environment (Blainey 2003). For example, slowdown in China's economic growth and recent European economic recession have impact on Australia's resource exports (Stevens 2012). The Australian mining industry which has once benefited from the surge in demand driven by the rapid growth of emerging economies in Asia since 2003 and the shortage of global supply (Stevens 2012) is now facing a difficult period signaled by the drop of China's GDP growth from 10 per cent to a mere 8 per cent (Connolly and Orsmond 2011). China's demand for resources has declined as a result of its slowdown in industrialisation and urbanisation, causing a significant decrease in global steel prices and thus a huge downward influence on BHP's profits (Stevens 2012). CSR raises issue on BHP's reputation by job cuts to sustain profitability. It is conflicting to BHP's attempts to put sustainability a first priority including reducing personnel exposure in underground mining and...
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...By Prof. Dipika Lecturer in P.G. Dept. of Commerce K.L.S.D. College Ludhiana Global Recession and Impact on Various Sectors of Indian Economy ABSTRACT The word 'Recession' denotes a temporary period of economic decline during which trade and Individual activities are reduced. Till date, the world has witnessed a number of economic recessions that brought the trade market to a standstill and left the economists and analysts with valuable lessons to be learnt for future. Globalization and liberalization have contributed a lot in making the entire world a close knit economic unit. In an interconnected global economy recession and economic turbulence in one part of the world has the potential to disrupt the economies of other countries in a major way. The economic slowdown in US economy in 2008 caused by the burst of housing bubble engulfed the entire world in its grip. This research paper aims to give a detailed account of US Recession-2008 and its impact on Indian Economy. The financial crisis has not only affected United States of America, but also European Union, U.K and Asia. The Indian Economy too has felt the impact of the crisis to some extent. Though it is difficult to quantify the impact of the crisis on India, it is felt that certain sectors of the economy would be affected by the spill over effects of the financial crisis. INTRODUCTION The current global financial crisis is rooted in the subprime crisis which surfaced over a year ago in the United...
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