The development of communication and new technologies, and the use of Internet have made huge economic and political transformations. People, banks and industries use the cyberspace to trade their capitals among national and regional economies. Moreover, economic integration and economic globalization have shrunk economic connections across the globe. Goods and Services can be easily trade among nations because there are several facilities of transportation, control, and payment. The increase flows of capital mediated by digital technology have stimulated several transactions. However, the uncontrollable use of capital flows has also triggered economic issues like economic crises, deficits in the balance of payments, capital outflows, and inconveniences with the exchange rate. Although capital flows could be considered risky, it is important to consider the evolution of international economy and the interaction of its economic actors to determine if capital flows trigger benefits.
According with Steger, the contemporary economic globalization started with the emergence of Bretton Woods. The United States and Grain Britain resolved to create a more stable money exchange system in which the value of each country’s currency was attached to a fixed gold value of the US dollar (p.38). This institution also set the institutional foundation for the three new institutional economic organizations the international Monetary Found (IMF), the World Bank and the General Agreement on…
Economic inequality is a growing issue on a global scale with many believing that it is part of the world we live in and there is nothing that can be done to solve it. In fact, there are many different contributors to economic inequality that can be solved individually to reduce its overall impact. Economic inequality is the difference between the rich and poor and has been an issue for quite some time. An economic balance must be found as a large wealth gap can hinder long…
Without any background knowledge in economics, neither business I must say it was difficult to understand the principles of economics. However, after reading and attending lectures I was able to learn and understand a great deal of economics and how it relates to the economy. I will therefore seek to explain three important lessons that I have learnt from the course. Firstly, I will define economics and its relations to real life experiences. Secondly I will look at demand and supply and last…
The development of the fashion industry and trends are highly dependent upon the economic factors such as the recession, inflation, and economic growth. During bad economic times, it was hard for customers to keep up with the latest fashion trends, so most people cut down their purchasing on clothes. Some of the fashion brands tried to collaborate with high-end brands in some collections instead of surviving by themselves. Several factories reduced the cost by changing materials and making…
What Are The Real Effects?
United States - Colombia Free Trade Agreement
Gross Domestic Product (GDP)
Lost of the Internal Market Share
Colombia is one of the oldest democracies in Latin America with solid functioning institutions, progressive laws, an active…
Economics is defined as the branch of knowledge concerned with the production, consumption, and transfer of wealth. By definition it may sound simple, but in reality it is far from it. Beyond our personal economic life there is a whole world of complex economic systems that rely on each other to keep the economy afloat and to protect investors in the process. From small businesses (microeconomics) to government spending (macroeconomics) to different economic policies like Fiscal and Monetary…
According to Microsoft’s Unlimited Potential document on enabling sustained economic and social responsibility for the next five billion people it stated the mission was “to bring together the company’s and business strategy and citizenship goals in a coordinated effort to help address the diverse social and economic issues faced by those who currently receive little or no benefit from technology.” Microsoft program is to globalize newer technology to countries without it in order to catch these…
where T=the real income and total value of transactions and K=the real value of assets turned in to cash every time a transfer takes place. This incurs a total brokerage fee of b(T/K) as all income is spent, where b is the real cost of turning assets into cash.
Conversely, if money is held instead of bonds no interest rate is paid and this is also treated as a cost. Since expenditure is assumed to be smoothed over the period, average money holding for the period is K/2, half the receipts for…
The book Atlas of Economic Complexity proposes an index that measures how complex an economy is. The index is based on the hypothesis that what a country produces and exports is a measure of its economic complexity. They argue that in order to produce certain products, specific knowledge is necessary and that knowledge has to be in that society and must be channeled efficiently (Hidalgo and Hausmann, The Atlas of Economic Complexity 2011). In their book they suggest that their…
The economic and cultural divide between developed and developing countries has been apparent throughout history, so the existence of this ever growing “gap” is no secret to any global citizen. Although this gap has been evident for decades, we must ask ourselves how has this gap continued to grow as the world advances. How can one measure the size of this gap if it is not actually visible? By comparing the economic statues of multiple developed and developing countries along with their levels…