Causes of Globalization While it is truethat state ventures (or adventures) have at times driven the process, e.g. the colonial conquests, the globalization process has largely reflected market forces, specifically, the exploitation by large and smaller businesses in the world of benefits from trade in commodities, goods, services, capital, and even labor, and of opportunities for new investments and markets. The process of global economic integration was perpetrated at the behest of
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BOFIT Discussion Papers 15 • 2011 John Knight and Wei Wang China's macroeconomic imbalances: Causes and consequences Bank of Finland, BOFIT Institute for Economies in Transition BOFIT Discussion Papers Editor-in-Chief Laura Solanko BOFIT Discussion Papers 15/2011 20.06.2011 John Knight and Wei Wang: China's macroeconomic imbalances: Causes and consequences ISBN 978-952-462-711-5 ISSN 1456-5889 (online) This paper can be downloaded without charge from http://www.bof.fi/bofit
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1. Definition: Fiscal policy in economics is to use the government revenue collection and the expenditure to have an impact on economy. The policy is based on John Maynard Keynes, the British economist, who stated the increase or decrease in the aggregate demand and expenditures will influence the economic system factors. (Sullivan,A.&Steven M,S 2005,p387) The changes in tax and government expenditure are regarded as the major fiscal policy instruments. Government revenue collection (taxes) plays
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International Business: Japan – Culture, Infrastructure, & Foreign Investment Strategy Historically, Japan has remained one of the most culturally separate identities in Asia, carefully guarding its way against foreign incursions. In modern trends though, a significant portion of its population has begun to travel abroad, while the majority of the remainder has largely remained ethnically indigenous. While Japan has gradually started to open itself toward foreign investment in measured
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Question 1 (i) Trade balance, GDP and Ratio of the trade balance to GDP in Finland(1980-2006) | Year | Trade Balance | GDP | Ratio of the trade balance to GDP | | Billion (euro) | Billion (euro) | | | (TB) | (Y) | (TB/Y) | 1980 | -0.461 | 33.267 | -0.01 | 1981 | 0.363 | 37.593 | 0.01 | 1982 | 0.049 | 42.258 | 0.00 | 1983 | -0.040 | 47.163 | 0.00 | 1984 | 1.298 | 52.695 | 0.02 | 1985 | 0.479 | 57.345 | 0.01 | 1986 | 0.678 | 61.492 | 0.01 | 1987 | 0
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1. Give two reasons why there may be a short-run tradeoff between unexpected inflation and the unemployment rate? Unexpected inflation reduces real wages W/P, so labor becomes cheaper (adaptive expectations). So with cheaper labor firms hire more workers to satisfy equilibrium condition of MRPL=W/P MRPL - Marginal revenue product of labor W/P - real wage W - nominal wage P - price level (change means inflation). Expected inflation is assumed making labor contract, which does not in general
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A. Suppose that real GDP is currently $97 billion per year and natural real GDP is currently $100 billion. Measured as a percentage, what is the GDP gap? Natural Real GDP – Real GDP/ Natural Real GDP $100 - $97/100 = 3 The GDP gap is 3% B. Suppose natural real GDP is growing by $4 billion per year. By how much must real GDP have risen after two years to close the GDP? By the second year the natural real GDP will be $108. In order for the gap to close the real GDP would have to rise by the
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COMPONENTS OF ECONOMIC FREEDOM AND GROWTH: An Empirical Study Eliezer B. Ayal and Georgios Karras University of Illinois at Chicago * Published in the Journal of Developing Areas, Vol.32, No.3, Spring 1998, 327-338. Publisher: Western Illinois University Abstract Out of thirteen recently isolated components of economic freedom our study identifies six which are shown to be statistically significantly related to multifactor productivity and capital accumulation. Policy implications, which
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Industrial Policy – 1991 Introduction The Industrial Policy announced on July 24, 1991 by the Finance Minister Dr. Manmohan Singh heralded the economic reforms in India and sought to drastically alter the industrial scenario in our country. The Industrial Policy Statement of 1991 stated that “the Government will continue to pursue a sound policy framework encompassing encouragement of entrepreneurship, development of indigenous technology through investment in research and development, bringing
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Why we need a second stimulus package ? The concern about debt in this country is mounting by the day as we have more and more government spending in order to get us out of the recession. Do we need to continue that spending in order to prop up the economy and then worry about the debt? You might say no because the country is far too deep with their debt but The answer is yes and here’s why. As you cut back expenditure the economy goes down, tax revenue go down, you don’t improve the
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