Macroeconomics

behaviour (a microeconomic factor) as the reasons of its location, that is whether it is resource seeking, market-seeking, efficiency-seeking or strategic asset seeking; the main decision is in fact taken on the basis of economic geography, which is a macroeconomic decision as it takes understanding of country-level characteristics (Popovici & Calin, 2014). According to them, the theory enlightened the success of FDI among countries based on the national wealth of a country, such as its natural…

In the clause, “Housing and unemployment: The search for the “American Dream”, by Robert Reed and Ejindu Ume evaluated that there is an important link between labor market actives and the housing market. The two authors will also compose a model of search and bargaining over both markets. They also highlight facts that argue that housing costs and friction in the housing market can hold an immense impact upon both markets. This connection can be seen in the individual worker’s desire to…

Analyse the causes of the recent rise of household debt in advanced economies in the context of the profound changes of government role in society (e.g., welfare, education, health etc...). -Household debt has increased considerably across developed nations -In 1990’s Australia housing debt equalled .5 of a years disposable income, in 2006 it was equivalent to 1.5 years disposable income -Increases in debt have largely been put towards housing in Australia including increased purchase in…

One of the most debated areas of global economic growth is the relation between trade liberalization particularly the openness in trade, and the reduction in trade barriers with poverty alleviation. Many economists, mainly economic liberals view the emerging pattern of global production and decline in poverty as a support for their claim that trade liberalization plays a major role in global poverty alleviation. On the other hand, some scholars argue that trade liberalization brings income…

close to 8% in 2013. As the second largest economy in the world, this growth had a significant contribution to the global GDP growth, with the country contributing 51.3% of the global growth in nominal GDP (IMF, 2015). The country has adopted macroeconomic policies which have triggered a shrink in the current account surplus, making the domestic consumption to become the most important economic growth driver. The country has adopted policies which have been focusing on not just growth, but…

Nike is a United States sportswear company that was founded by Philip H. Knight and Bill Bowerman. The business originated in the 1960’s by Philip H. Knight, which was a mid-state runner at the University of Oregon, and his coach Bill Bowerman. His suggestions were not successful in the beginning. The two tried many different running shoes for years. In an effort to become successful, Knight made contact with a Japanese firm that made athletic shoes. This made arrangement for them to import some…

However, the statement of long-run money neutrality inspires virtually all macroeconomic theory. Mathematical economists depend on this so-called classical separation, or later kinds of it, to forecast the belongings of economic policy. Assume a macroeconomist is reviewing monetary policy from a central bank, such as the Federal Reserve…

Junk South Africa South Africa 's government bond yields have risen to their highest levels in almost five years as worries grow that the rating agencies could bar the country 's to junk status(-BBB) (Frankel, 2005), this is due to the ongoing drought, civil service wage increase and most of all corruption (Chand, 1999). South Africa’s economic growth has been slowing down and yet the finance mister Pravin Gordhan reduced deficit by cutting down government which means a further GDP slowdown…

Classical Model Analysis Tamara Tutor Columbia College ECON 293 Abstract This is an analysis of two economic models. The first is the Classical Model which had its origins in the 1770s, a time of great change. The Classical Model was considered one of the first system-wide examinations of capitalistic elements. One prevailing theorist was Jean-Baptiste Say, who had liberal views and argued in favor of competition, free trade, and lifting restraints on business. He is best known for Say’s Law,…

Nowadays, Australia is facing two crucial economic issues, which are increasing the budget deficit and house affordability. In a long term, those two issues can deteriorate the economy that has been in slow growth in the last three years. First, the increasing budget deficit affects an increase in the Australian debt, which deteriorates the economic growth. Second, as the housing prices are significantly overvalued, the Australian economy grows slowly. (In order to solve the rise in budget…