...due to the high levels of unemployment, harsh economic conditions population density. Annotated Bibliography Fougère, D., Kramarz, F., & Pouget, J. (2009). Youth Unemployment and Crime in France. Journal Of The European Economic Association, 7(5), 909-938 Fougère, Kramarz, & Pouget have argued that when there is a large number of youths who are unemployed, the country may have increased criminal activities as most of them are idle and thus, they must find different ways in which they can earn a living to cater for their needs. Additionally, the economic also tends to affect the image of the country in terms of crime. The article seems to have facts that are accurate. This is because the author has presented different examples in order to support his arguments.. This author is a credible source because has a PhD in Economics from Univeriste Paris and he is a Professor at Ensae University. The article supports the statistics in the relation between crime rate rise and unemployment. Edmark, K. (2005). Unemployment and Crime: Is There a Connection?. Scandinavian Journal Of Economics, 107(2), 353-373. The main aim of the above article is to address whether there are any connection between the rate of unemployment and crimes. According to Edmark, lack of job may result in a higher rate of criminal acts. This is due to the fact that most of the people seem to be jobless and thus, they may attempt to do things that are contrary to the law in order to cater for their entire...
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...Land Subdivision Keller Graduate School of Management ECON 545: Macroeconomics Table of Content Executive Summary …………………………………………………………..pg. 3 Introduction……………………………………………………………………pg.3-4 Business Cycle………………………………………………………………... pg.4-5 a. GDP Growth Rate……………………………………………..pg.5-6 b. Inflation………………………………….………………..…..pg.6 c. Unemployment………………………………………………..pg.7 Fiscal Policy and Level of Unemployment……………………………………pg.7-9 Monetary Policy and Interest Rates…..………………………………………..pg.10 d. International Trade…………………………………………….pg.11 I. U.S. International Trade Graph………………………..pg.11 e. Demographics…………………………………………………pg.12 Analysis………………………………………………………………………..pg.13 Recommendations and Economic Justification…………....…………………..pg.13 References……………………………………………………………………..pg.14 Executive Summary After more than 30 years of growing corn, Uncle Dan wishes to leave that market and transition over to what he considers a profitable market. He has 100-acre corn farm which he was thinking of subdividing and utilizing to build shops and homes on. Uncle Dan believes that by building these shops and homes on a large piece of land he can make a greater profit renting or selling them. Subdividing land is a long process in itself and can actually be a big investment also gaining equity. When splitting the land into smaller parcels it can create a multitude of lots however prior to this an estimate needs to be...
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...1.0 Introduction Unemployment is defined as a situation where an individual of working age is not able to get a job but would like to be in full time employment. Unemployment statistics measure the situation and the level of joblessness within an economy. The unemployment rate is the key measure, which is the number of unemployed workers divided by the total individuals in the labor force. There are five types of unemployment which are Frictional Unemployment, Structural Unemployment, Cyclical Unemployment, Technological Unemployment and Seasonal Unemployment. Frictional unemployment is when an individual moving from one job to another; the unemployment temporarily experienced when looking for one’s new job. A structural unemployment is caused by the location of the job, the individual’s skill or the geographical reason. While a cyclical unemployment is caused by a business cycle recession, when there is lack of aggregate demand for labor. The replacement of workers to machineries or advanced technologies is called technological unemployment. Last but not least, the seasonal unemployment occurs when a particular job is not in demand at certain seasons. Unemployment is a crucial issue for every country in the world, especially those developing countries with a remarkable population. High unemployment rate indicates that labor resources are not being used efficiently. Fortunately, the unemployment rate in Malaysia (3.2%) is not as high as in United State, which is...
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...Macroeconomic Analysis: Project II Class: ECON545 4/12/2011 Introduction to Situation The paper analyzes and summarizes how the automotive industry is impacted by the macro economy. In helping my friend Rick expand his small manufacturing plant that produces parts for the auto industry, I’m going to identify a brief history of the automotive industry, how it impacts the GDP, the unemployment rate, and the inflation rate as measured by the Consumer Price Index (CPI). The supply and demand of the automotive industry as well as the profits derived from the sector are clearly impacting by then macroeconomic policies. The industry’s history demonstrates the trends it follows in the business cycle and how economic indicators have impacted the performance of the industry over the years. The measure of production, interest rates, real GDP, automotive sales and inflation and unemployment are some of the most compelling instruments that can be used to assess the state of the automotive industry. Business Cycles The U.S automotive industry saw a steady expansion from its inception until 1978 in which where production reached its all-time peak. The industry showed a small contraction and a quick recovery leading to its peak between 1972 and 1976. In the early 1980 there was a big drop in production units and the industry fell into its first true recession. The industry recovered in the mid 80s peaking in 1988, but never reached its previous high before falling into...
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...International Trade and Finance Speech James DeBose ECO/372 January 17, 2013 Professor Pretzsch International Trade and Finance Speech This speech will discuss several topics concerning international trade and finance. The first topic of discussion will explain what happens when there is a surplus of imports brought into the United States, and the specific example used will be China trade surplus as it jumped in July 2012. China exports to the United States rose 13.6% to $165.3 billion and their exports to Europe fell 0.8%. The increase in the surplus of imports causes businesses to have more products to offer consumers, lower the prices of the products, and leads to consumers purchasing more products. Purchasing more products increases the revenue for businesses, and causes major movement of money. The next topic that will be discussed is the effects of international trade to GDP, domestic markets, and university students. International Trade helps our government and markets earn income from foreign countries. International Trade affects university students by offering school supplies such as computers more affordable because they are made and sold at a cheaper rate. University students are able to achieve a higher education when the school supplies are produced in a domestic market where the college student resides, and leaves the student more money for tuition. A government choice on tariffs and quotas has different affects on international relations and trade....
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...global financial and economic crisis, which erupted in the financial systems of developed countries in the autumn of 2008 by the wake of the collapse of Lehman Brothers, has affected quickly all economies throughout the world (Torres, 2011). In the OECD countries, which are the first affected by the crisis, the main impact was the high level of unemployment generate by job losses, enterprise bankruptcies and cuts in the incomes of millions of people. Indeed, in April 2013, 8% of the OECD labour force was unemployed representing over 48 million people, almost 16 million more than in 2007 (Scarpetta, 2013). Despite the economic recovery in some of OECD countries mainly the United States, this trend could not improve until mid- 2014 so that we can observe a decrease in unemployment again. The governments should be concerned about the impact the unemployment because in general, this phenomenon affect not just the person himself but also his/her family and in the long run the society where he lives, which in turn affect negatively the functioning of the economy. Some of the well-known effects of unemployment on the economy are: * Unemployment financial costs: the government has to pay the unemployed some benefits, so the greater the number of the unemployed or the longer they are without work the more money the government has to shell out , * Spending power: the spending power of an unemployed person...
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...transfer of money from one group to another. X means exports; M means imports. Exports are goods sold to overseas countries and imports are what the UK buys from foreign countries. (X – M) represents net exports. If this is positive, there is a trade surplus which adds to AD. Conversely, a negative net exports value means there is a trade deficit, which reduces AD. Consumer Expenditure Consumer expenditure is influenced by… The amount of real disposable income is the main influence on consumer expenditure. Households and economies with more disposable income tend to spend more in total than poorer ones. The proportion of income that is spent is called the average propensity to consume (APC). Wealth (the value of a stock of assets) affects C. Wealthier people tend to spend more. Wealth can be spent and can be used to borrow against. It also results in greater consumer confidence. For example, an increase in house prices will make homeowners feel more wealthy, and this encourages them to spend more. Consumer confidence and expectations have a significant influence on consumer spending. When consumers feel optimistic about the future (expecting good wages and job prospects), then they tend to spend...
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...produce a specific good with fewer resources (per unit of output) that other countries. 2. Calculate unemployment rate Unemployment rate = # of unemployed people/labor force (only those actively seeking employment) 3. What happens when a bank makes a loan When a bank creates a loan it is creating money because transaction accounts are included in money supply. 4. Types of unemployment Seasonal: unemployment due to seasonal changes in employment or labor supply Frictional: brief periods of unemployment experienced by people moving between jobs or into the labor market. Structural: unemployment caused by a mismatch between the skills of job seekers and the requirements of available jobs Cyclical: unemployment attributable to a lack of job vacancies no economic growth = no jobs 5. Calculating a bank’s excess reserves Reserve ration=bank reserves/total deposits Required reserves=required reserve ratio X total deposits Excess Reserves=total reserves – required reserves 6. Differences in computing GNP and GDP GNP includes all outputs of a nation even if they are made outside the country. GDP only totals what is produce in the borders of a nation even if the company is foreign 7. Why does inflation affect production decision Price uncertainties during times of inflation can affect how a firm expands and invest. If prices are changing rapidly a firm can decide to hold off on investing...
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...International Economics Paper Hercillia C. Henderson ECO/372 October 21, 2015 Professor Watson Ragin The Role of the President and Congress in Stimulating and Contracting the Economy Both the President of the United States and the United States’ Congress are capable of enacting policies that may have the effect of either stimulating or contracting the economy. The President is able to stimulate the economy in a variety of ways. One is to propose a Congressional budget that includes increases in spending for the purpose of creating a stimulus, or proposing tax cuts that likewise are intended to have a stimulus effect. The President may also issue executive orders in certain areas that have the effect of creating a stimulus or contracting the economy. These might include appointing like-minded people to the Federal Reserve Board, adjusting certain tax rates by means of changes in revenue collection policy, adjustments to trade policy, and the like. Congress possesses similar powers in that Congress may appropriate spending for purposes of a imposing a stimulus package, adjusting rates of taxation for the purpose of generating economic growth, adjusting trade policy, such as lowering tariffs, for a similar purpose, and creating public works programs. Budgets and legislation that are proposed by the President must ultimately be approved by Congress, although the executive branch of the federal...
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...Social Integration (Unemployment) Name Professor SOC 100 1/24/2014 Challenges of Social Integration (Unemployment) Unemployment is a situation whereby there are people in the society with the desire to work, but without enough jobs for everyone. Presently, unemployment is amongst the biggest problems that affects many countries globally. Unemployment is caused by numerous challenges. One of the reasons that lead to unemployment is that numerous people are dissatisfied with their salaries. This is a feeling that many people undergo because they feel they are not earning enough money for their work. In turn, they prefer taking unemployment benefits instead of taking up any job. Another reason is because presently there are few companies in most of the countries. In every society there must be people who are unemployed. There are various different types of unemployment, which include hard-core, structural, seasonal, frictional and cyclical. Statistics about unemployment around the globe are numerous. Several researchers gained interest of understanding the challenges behind unemployment. For instance the United States, there is financial crisis and ensuing deep recession associated to the sharp increase of unemployment. The U.S. unemployment rate peaked at 10.1% in October 2009. By looking at the adjustment of changes in demographic composition of the labor force, it is evident that this is the highest rate of unemployment ever witnessed since...
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...Unit 1: Business Environment Assignment 3 Apple is the company that I am going to be talking about in this assignment; I will be talking about how different economic environments affect two countries Apple operates in (China, USA) and what countries they are manufactured and assembled in. They’re stores are usually located in the central main shopping centre of a city especially their stores in the UK. The company Apple is a private limited company and the company is open to the public to buy shares in the organisation. The company is based in the secondary sector of business. Here is a table stating some of the economic factors that may affect Apple. China United Kingdom GDP China GDP is worth 5879 billion dollars or 9.48% of the world economy, according to the World Bank. from 1960 until 2010, China's average GDP was 839.37 billion dollars reaching a massive rate 5878.63 billion dollars in December of 2010 and a record low of 46.46 billion dollars in December of 1962 The United Kingdom GDP is worth 2246 billion dollars or 3.62% of the world economy, according to the World Bank. From 1960 until 2010 the United Kingdom's average Gross Domestic Product was 862.04 billion dollars reaching 2810.97 billion dollars in 2010. Inflation The inflation rate in China was last reported at 4.1 percent in December of 2011. From 1994 until 2010, the average inflation rate in China was 4.25% reaching 27.70 percent in October of 1994 and a record low of -2.20% in March of 1999. The...
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...between rising US unemployment and the rise of the Canadian dollar? Canada’s financial stability depends on the health of America’s economy, as international trade accounts for 45% of Canada’s Gross Domestic Product (GDP) and 79% of exports are to the United States. Canadian and American unemployment rates are positively correlated for that reason, as exemplified in early 2009. Canada’s unemployment rate quickly steepened as the United States’ rate gradually increased to about 10% (refer to graph 1 and 2). During this time, Canada’s growing trade surplus became a deficit in only a few months (refer to graph 3). From this data, one can determine that Canada’s exports decreased rapidly due to rising economic turmoil in the United States. The effects on the dollar seemed to positively correlate. Canada’s dollar decreased in value compared to the US dollar; however, concluding that the reason for this change was due to the U.S. unemployment rate is inaccurate. The ever-changing exchange rate of the dollar is determined by many factors. As of 2011, Canadian and American unemployment rates remain high at approximately 7.3% and 9%, respectively. In addition, a trade deficit continues to exist in Canada. Nevertheless, the Canadian dollar is gaining strength over the American dollar, which contrasts with the weakened exchange rate in 2009 when the same conditions existed (refer to graph 4). Therefore, rising U.S. unemployment can have a positive or negative affect on the Canadian...
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...individual decisions of a single business entity. It consists of analyzing the price of a particular product, the capacity production of a product, and how the price of each product in the market is affected by the forces of supply and demand. It considers regulations, taxes, and analyzes markets in order to effectively set a value for a specific good or service. The decisions made on a microeconomic level are very pinpointed and precise. The outcome directly affects the supply and demand chain as well as other forces that determine the price levels seen in the economy. For example, microeconomics would access how a specific business could maximize its production so it could lower prices and compete more fiercely with its competitors. In order to come up with these solutions, microeconomics considers various variables such as the relationship of a firm with the market and the appropriate price of a product to maximize profits. On the other hand, Macroeconomics is a broader study that involves the economy as a whole, not just one particular company since it assesses entire industries. For example, macroeconomics covers subjects such as an economy’s GDP and how it is closely linked to unemployment rates, since they mutually influence one another. Besides from GDP, topics such as interest rates, economic growth, and inflation are very commonly studied in macroeconomics. Therefore, the main difference between microeconomics and macroeconomics is the extent of their spectrums. By that I mean...
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... surplus, and debt of the nation have an effect on many aspects of the nation’s economy. Taxpayers carry heavy burdens, both today and in the future, to support the economy as it recovers from a recession. Future Social Security and Medicare users face uncertainty and possible poverty as current negative cash-flow eats away at the integrity of future Social Security and Medicare. The effects of a high unemployment rate create a ripple effect that certainly will reach into the economy of coming years. Gross Domestic Product is affected as international trade and deficit fluctuate with the country’s interest rates, inflation, and dollar buying power. Even University of Phoenix students see the effect of these economic aspects in their tuition. Although these are not the only issues of concern in the current economy, these serious issues are affected by the deficit, surplus, and debt of the nation. According to experts, the taxpayers eventually will pay the costs of today’s deficit tomorrow. To finance last year’s trade gap, Americans had to borrow $503 billion in international markets. Foreigners will buy billions of dollars’ worth of United States corporate mortgages, and government bonds. They lend Americans the money needed to import more from the rest of the world (Ackerman, 2004). The additional expense is the burden of the American taxpayer. Meanwhile, inflation occurs and prices increase. This causes the value of money to decrease and people do not have as much purchasing...
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...Analyse The Wal Marts Case Study Management Essay ukessays.com /essays/management/analyse-the-wal-marts-case-study-management-essay.php Wal-Mart Stores, Inc. opened in 1962 by Sam Walton and his brother. Nowadays, it is ranks as the largest corporation in the World. In early 1990s, the company announced that it would initiate the international operations, which commenced in 1991 in some countries like Canada, Puerto Rico, Argentina, China, etc. (Reference for Business, 2012). PEST Analysis In order to analyse the Wal-Mart's case study we are going to apply the PEST analysis which is 'A type of situation analysis in which political-legal, economic, socio-cultural and technological factors are examined to chart an organization's long-term plans' (Business Dictionary, 2012). II.1. Political Factors When a firm desires to undertake businesses in a foreign country there are some factors to investigate before taking a final decision, for example, the system of the government, law and local trade unions, language, religious and ethical values. Wal-Mart faced numerous complications on the legal and political front in many countries. For example, in Mexico the company participated in an aggressive lobbying campaign to amend the long-standing U.S. anti-bribery law that the company might have violated. The 1977 law, well-known as the Foreign Corrupt Practices Act, prohibits U.S. firms from offering fees or gifts to foreign officials to advance corporate interests (Hamburger, Dennis & Yang...
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