International trade

In his book, Economics in One Lesson, Henry Hazlitt (1946) told a simple, yet thought provoking, story about a little town and a broken window. In this story, a baker’s window is broken by a young boy who threw a brick through it. Then, after a crowd has gathered to gaze upon the baker’s misfortune, the crowd mentions that at least the broken window created a new job. Obviously, if the boy had not broken the window, the glazier would never have gotten this job opportunity to fix the window.…

In the chapter 10 he argues that for many countries EU seemed like a way to economic prosperity “Removing barriers to trade and enterprise meant greater economies of scale, which meant a faster growth of income, which meant the growth of democracy” (p. 150). However, opening markets resulted led to social problems, the largest of which is social inequality. “The diversity…

Economy of Australia is one of the largest mixed economies in the world, in 2013 the Australia’s total wealth is AUD$6.4 trillion and in 2015 the GDP of Australia is AUD$1.62 trillion. The taxation in Australia is divided into two parts which is federal taxation and state taxation. Australia government is also striving towards building a more adaptable labour market and augmenting the living standards. The healthy political, huge natural resources and its stable government led to phenomenal…

In Oliver Bertrand's article,''What goes around, comes around: Effects of Offshore Outsourcing on the Export Performance of Firms'' he attempts to find out whether or not offshore outsourcing is beneficial to a company in the long run. Like the 2006 indie movie Outsourced, many European and American companies are looking for ways to reduce their production cost while simultaneously doubling their economic output. Companies are looking for talent in developing countries whom are willing to take…

How to buy Shakeology in Canada? I want to share good news to all Canadian people “you can easily buy in Canada”. Hooray! This is really great news and it also shows that Shakeology takes a step ahead towards globalization of their product. After going through several tests and checks of country customs and laws Shakeology is now allowed to order in Canada. By approving Shakeology doesn’t mean that you can easily buy it from Wal-Mart, Vitamin Shoppe, GNC, Amazon or eBay. The legal and proper way…

Export-Import Bank Overview The Export-Import Bank of the United States of America is a federally funded institution which facilitates the growth of exports in the United States and strengthens economic ties with developing nations. Created by President Roosevelt in 1934, the Export-Import (Ex-Im) Bank, “a wholly owned U.S. government corporation, is the official export credit agency (ECA) of the United States.” Ex-Im Bank provides the following: “(1) direct loans; (2) loan guarantees; (3)…

itself, therefore depending less on other nations. The American System tariff placed a tax on manufactured goods imported from Europe. US manufacturers had sprung up in the years before and during the War of 1812, when the United States had outlawed trade with Great Britain (and for part of that time with France too). But these young businesses had difficulty competing with well-established European factories, which could produce goods much more cheaply. A tariff on imported cloth, clothing,…

Macroeconomics is the growth of the GDP, for that reason it quantifies production— market value of final goods and services sold in a country during a specific time frame. As a result, the key drivers of GDP in the long run are consumers, government, business, and financial organization’s spending. Wealth growth has influence on the U.S. economy, lower interest, lowers cost and effects aggregate demand. This shocks effects wealth growth, interest and exchange rates. As a result, the overall…

Brazil and India have adopted policies in order to fit themselves snuggly into the Golden Straitjacket in order to emerge into the international market. The first tenet for fitting into Friedman’s Golden Straitjacket is “making the private sector the primary engine of its economic growth” (Friedman, p. 61). India and Brazil have both privatized industries that were once strictly controlled by the government. Brazil’s 1988 federal constitution consolidated the state’s monopoly over oil and gas…

The paper has attempted to provide a theoretical structure towards analyzing the influence of globalization, trade liberalization and labour market reform on factor income, sectoral growth, income inequality and informalization of labour. Under restricted capital mobility across formal and informal sector, we obtained that tariff liberalization causes informalization of unskilled labour and widens income inequality. Labour market reform and foreign capital inflow leads to formalization of the…