Macro & Microeconomics Essays

A major factor in China's quick rise has been its vigorous trade activity with the United States. Trade volume between the two nations reached $211.6 billion in 2005, more than eighty times the $2.4 billion exchanged in 1979, the year they established normal trade relations. This has accelerated in recent years.

Several International conventions lay down the rules for the maritime organisations to follow as they are bound by these rules.Environmental rules have made the shipping difficult; but at the same time, it is definitely necessary as the seawater or seabed pollution could create unfortunate results

The key difference between short run and long average cost curve is that in a short run a firm can neither increase its size nor adjust its labor and capital according to fluctuating demand which remains more or less fixed whereas in the long run capital is variable and can be adjusted according to an increase in demand.   

Accounting, as a profession, also grew in importance as the complications regarding the nature of the business also grew simultaneously. The use of creative accounting by the firm have necessitated a large scale changes to take place within accounting literature to suggest more radical approaches to handling many “ creative accounting” issues of importance.

The Commanding Heights is basically focused on globalization and how global markets work and interact with capitalism, and poverty, specifically among developing countries. By just reading the storyline, we can have a better understanding of what is really happening in the different markets in different countries.  

The company should introduce a high-end system that incorporates major technological tools that are vital to the cars produced. These are in line to ensure that the customers get maximum comfort while using the car while at the same time being easy to operate. This company should major in the interior system of the car as it is the most important for customer satisfaction.

Macroeconomic policies include different rules and regulations, which the government of a country sets with the sole intention of having control over the economy (Economic Times 2013). The indicators of an economy, which are influenced by macroeconomic policies involve the aspects of money supply, unemployment rate, national income, inflation, interest rate, and growth rate, among many others.

The IS curve is a downward sloping curve which joins together combinations of the rates of interest and national income at which the real sector is at equilibrium, the IS curve is derived as follows. The IS is derived as shown above, first in diagram A shows the relationship between interest rates (IR)and investment (I).

The author of the paper states that the principles were meant to address the shortcomings of the market mechanisms, the primary detrimental externalities. This concept became the mainstream guide among governments and industries globally, with the hope of advancing societal welfare and market efficiency.

The Board of Directors wants the company to launch just one product each year. This one product can focus on the consumer side or the small business owner side. However this can result in conflicting ideas internally and as well as with conflicting customers.

The talks have had a checkered history. The talks were meant to have been completed by 2004, but several extensions in deadlines, have already been missed with no end in sight. The main reason being the differences in perceptions on tariffs and quotas between the two sides are too wide to be bridged.

According to the report principal macroeconomic variables and government policy instruments change in response to external factors over the course of a business. And, gross national products exported should be increased in order to fill the export markets’ needs. Most wages increase when business profits and prices of basic necessities like food.

The author states that economic growth will increase the number of goods and services that a country can potentially produce. To do this, the quantity or quality of factors of production must be increased. China has registered an unprecedented growth in the GDP. Over the last twenty-five years, the country’s economy grew at an average of 9.6%.

According to Yellen and Akerlof, despite Robert Lucas’ (1987, 2003) conclusion that stabilization policy should not be a macroeconomic priority, it has long been an explicit or implicit objective of monetary policy in most industrial countries, even including those countries with inflation targets (2005, p.1).  

The author states that though there may be other operating systems available, non are comparable to the system that consumers have become dependent on. The ability of Microsoft to dictate not only price but also the products that are introduced, indeed makes it a monopoly. Other manufacturers have attempted to enter into the competition.

The author states that the current financial downgrade will affect credit card loans, home equity loans, and prime mortgages causing a consumer recession. The house prices in 2007 fell by almost 6% and the figure is expected to rise another 15% in 2008. This combined with the unemployment rate which in December was at the highest level.

It is important to know how the different chocolate companies like Hershey, Cadbury, and Nestle were able to achieve success in the chocolate business. This paper discusses the current events that are happening around the chocolate sector in order to provide relevant information to potential clients entering the chocolate market.

Therefore, the private individual disposable income forms the total income, when there is an absence of government spending in that economy. Keynes argue that aggregate demand is the sole cause of instability in the business cycle and consequently the economy, and observes that it is through government intervention that such instability can be applied to stabilize the business cycle (Carbaugh, 132).

The idea behind Capitalism – to make profits from an investment. Products are manufactured from raw materials then sold at a price higher than the cost of production. By viewing products and services as currencies of money, everything about capitalism involves applying interests on services and products provided.

Oil is one of the key raw materials in the world and is used for various purposes. The refining of oil results into a number of different by-products which have multiple uses of their own and serve as raw material for many industries. Oil products such as petroleum, kerosene, paraffin, wax, vegetable oils, diesel etc. are used in many industries.

The extent of the increase in global prices exceeds that in the domestic prices, but the trend is uni-directional. The domestic price of HR in the USA has gone up from $ 349 in Oct-Dec'03 quarter to $ 728 in July-Sept'04 quarter, a rise of 109 percent within a span of 9 months. In Germany, the domestic prices of HR during the same period has been raised by 58 percent.

As the paper outlines, the government should encourage free markets to ensure efficient use of resources, the demand and supply should be the driving force in the decision of price levels. Fiscal policies and monetary policies are used by governments to aid in case of a recession that leads to depression; the two policies are used depending on the level of inflation in an economy.

In the study of Cowen and Mueller, there has been an effort to show the loss in social welfare with the help of a mathematical approach. The derivation of the loss in social welfare is based on the assumption that the change in quantity follows a change in price which was not found in the earlier form of calculation of the loss in social welfare.

This case study also offers a critique of Keynes’ notion of stabilization, on its face and its mechanisms.  Finally, this paper addresses “modern” Keynesian thought and its counterarguments. This paper seeks to demonstrate that, even in the neo-Keynesian context, the fundamental tenets of the theory offer neither a cohesive method to understand today’s economic realities nor do they prescribe ways to improve economic functioning.

 The data used to build and refine the econometric model was extracted from the Economic Trend Annual Supplement (ETAS) presented by the British Office for National Statistics (ONS). This was accomplished by applying fundamental econometric methods such as linear regression, misspecification testing, and hypothesis testing using the computer package E-Views. 

The author states that China’s consistent growth in GDP has given them an appearance of having a strong economy; in fact, theirs is one of the fasting growing in the world in terms of production. However, when we contrast their GDP against their population, China’s GDP per capita is at the same level as a developing country.

Smith's theory of international trade was based on the concept of the division of labor that widened the market and gave vent to the resources which, in the absence of trade, would remain unemployed or underemployed. International trade, by overcoming the narrowness of the domestic market, ensures that the division of labor is carried to the highest perfection.

The rest of the paper is organized as follows: Section 2 looks at how the crisis occurred,  section three looks at the causes of the crisis that is why the crisis occurred; Section 3 looks at the regulatory environment and current solutions; and the last section provides some conclusions and recommendations.

The real business cycle model developed by Finn Kydland and Edward Prescott asserts that productivity shock triggers a rise in output, investment, and labor above the normal trend.  As a result there occurs a positive or negative deviation that is known as a boom or recession respectively.  It is easy to focus on the production cycle as the main cause of business cycle fluctuations.    

The author states that the removal of restrictions on capital flows allowed banks to invest into cross border projects thus assuming more risks but also allowed them to indulge into banking practices which were more risky for the overall health of the financial institutions. The subprime mortgage market failure, however, forced many experts.

Globalization is “to make global or worldwide in scope or application”, as defined by The American Heritage® Dictionary of the English Language. “The tendency of investment funds and businesses to move beyond domestic and national markets to other markets around the globe, thereby increasing the interconnectedness of different markets”

US Labour statistics figures show the tendency to improve the current situation on the Labour market: the level of unemployment is lower in comparison with the previous year results: from 5.4% (Dec 2004) to 5.1% (May 2005). The level of average hourly earning rose from 15.85 to 16.03%. 

Globalization is an international phenomenon with far-reaching consequences in the social, political and economic realms. Economic globalization, namely the spread of neoliberalism and capitalist-inspired consumerism as the dominant engine of economic growth, has both the supporters and the detractors.

The IMF was originally established in order to encourage international co-operation to cope with recession and protectionism on a world scale and to discourage individual countries from pursuing policies that would beggar their neighbours. The desire to improve on the international chaos of the 1930s led to the Bretton Woods Conference.

The author states that multifarious factors can help to achieve macro-economic equilibrium under both fixed and floating exchange rate systems. Firstly, the money supply and interest rates is an important factor in this regard. The amount of money circulating in the economy are charged by the government and those fixed by the banks.

In December 2000, the Global Trends 2015 (GT 2015), a paper published by the National Intelligence Council (NIC) described a “networked global economy” primarily driven by rapid and largely unrestricted flows of information, ideas, cultural values, capital, goods and services, and people. However, GT 2015 cautioned that a resilient global economy will be contingent on avoiding several potential brakes to growth of future global markets.

The moment the word Fast food rings in the authors ears, he only thinks of America which is known for its obsession with junk foods and Fast foods.  This certainly kindles the spirit of any aspiring business novice with a spirit of entrepreneurship to venture into this Industry.  Not much of investment and perhaps the widening demography of fast food consumption in the US is very attractive. 

Pаrticulаrly flows of foreign direct investment (FDI) hаve increаsed rаpidly during the pаst decаde аnd impаcted the economy of developing countries: in 2004, developing countries received 37.2 percent of the globаl flows of FDI thаt equаls to $147 billion. Furthermore, given the relаtively smаll economic size of these economies cаn аccount for а lаrge percentаge of their totаl investment.

Stiff competition in the business arena calls for adequate strategies by organizations in order to remain competitive. Some of the key aspects that companies have adopted in order to expand their market power are mergers and acquisitions. One of the most notable mergers that have recently been announced involves AT&T and T-Mobile companies.

Crane and Amawi (1997) maintain that targeted protectionism can be conducive to economic growth and development, on the one hand, and is not inconsistent with free trade on the other. In order to explain this in greater detail, it is necessary to refer to specific protectionist policies practised by different countries.

At the price $2 and quaintly 40, the area below the curve is greater than at the new situation when price increase to $4 and quantity is 18 units. This area represents the revenue and hence we can conclude that the smaller area means lesser revenue and how an elastic curve makes it unfavorable for the producers to increase prices.

Agriculture is intensive, highly mechanized and efficient by European standards, producing about 60% of food needs with less than 2% of the labor force. The UK has large coal, natural gas, and oil reserves; primary energy production accounts for 10% of GDP, one of the highest shares of any industrial nation.

It is no place for amateurs looking to make a fast buck. Most analysts also advise that investments in the stock market should be made with a long-term perspective of at least five years. Over the long-term minor fluctuations usually, average out with each successive peak being higher than the previous one.

Amongst the several reasons for interaction, some are the development of Trade and Commerce, ensuring friendly ties to assure assistance in times of need, and countries having common goals are helpful to each other in assisting the same. Of these few reasons, the one that is essentially important is Development of Trade and Commerce.  

The United States is known to have taken its position in line with global competitiveness ahead of Germany. The reason is that it has a national advantage over the other nations. Its locality has also played a big role in its success in relation to competitiveness. Research shows that there is greater efficiency that is quite evident in the United States.

State of Oregon projects that GDP will fall by 2.6% a rate that is not alarming in the short run given the resilience the economy has shown. Unemployment rate: Projections for unemployment (% of the labor force) are that the rate will be 5.2%.

The paper will further detail the effects of hyperinflation on the macroeconomic conditions of a country by choosing a country so affected. The country chosen to explain and analyze a macroeconomic scenario during hyperinflation is Argentina. Argentina, because it is a country that tops the list in hyperinflation during the 20th century.

The author states that resources are abundant and sufficient for the existing population. However, with new inventions and discoveries, scarcities are likely. When a new invention comes, the old becomes obsolete and loses its value. People start demanding new stuff and if are not producing it, you are very likely near extinction.

The trade relationship between China and the United States of America has gone through lots of ups and downs. This trade relationship began in the 17th century when both the countries agreed to trade with each other. However this relationship underwent some hard times when the communist party took over China.1 But it came back on the track in the 1970s when both agree to trade with each other again.

The article is one on the Inflation of the Economy, in the Asian continent. The Asian economy is one that is prone to inflationary tendencies. Today, the whole world is experiencing a boom in the economy. The inflation in Asia, corresponding to the worldwide phenomenon, is also surmounting.