Macro & Microeconomics Essays

The rate of inflation is another important measure of economic performance. Classical economic theory, particularly Irwin Fisher’s equation of exchange, emphasizes that the inflation rate depends on the excessive growth of money supply in the economy. Phillips curve establishes the linkage between the two, with empirical evidence.

The last two decades have witnessed substantial deregulation of the financial services industry across the globe. The liberalization of financial markets took place during the 1970s and 1980s and was characterized by the abolition of credit and interest rate ceilings, the abolition of controls on international movements of capital.

With only one or two service providers operating in the industry, it was a monopolistic market, where the consumer was fleeced for the use of goods and services. However, with government authorities waking up to the situation and forming telecom regulatory authorities, this situation changed. The number of private operators too increased and the market slowly moved towards perfect competition.

Rose (2004a, 2004b) surprisingly shows that there is no strong empirical evidence that the GATT/WTO has systematically played a strong role in stimulating trade. In contrast, Subramanian and Wei (2007) and Balding (2008) find robust evidence that the GATT/WTO has had a strong positive impact on international trade.

Universal healthcare is one οf the most important topics οf the world. Since the tenure οf President Bill Clinton in the United States, universal healthcare has also been an important subject for media because the idea resounds in the desires οf people in this country. A sector οf the US population which is growing at a rapid rate is the poor, including underemployed, and legal and illegal immigrants.

The exchange in foreign market would only create the different in the cost of currency transfer, depending on the value of the currency. In essence, the model outlines that the demand and supply changes have various impacts in trade.

In recent years, Europe has reached an unprecedented economic integration through the European Union (EU). The economic integration to date has never been replicated by any other country, region or area of the world. The economic integration of Europe is an achievement envied by all the other regions worldwide and is a model for future development.

As a result, the economic analysis and appropriate managerial solutions are found to be quite similar. One of the most distinctive features of the New Economy is the importance of the scale and scope of economies. A prime focus now is on the concept and viability of ‘scalability’ - the degree to which the total scale and scope of the business can be increased without a corresponding increase in costs (Mankiw, 2006).   

Surely the economy of South Korea has taken great advantage from globalization and this can be proved by observing the improvements in the economy of the country after the financial crisis of the year 1997. Obviously globalization made them survive and to work hard by observing other countries and by also taking help from other countries which made them able to stabilize their economy.

In order to determine whether a data is set is normally distributed the skewness value is determined, positive or negative skewness value shows that the data is not normally distributed. Another way to determine is using the values of the mean, median and mode, when these values are all equal meaning that the mean = mode = median then the data set is normally distributed.

International discernment of this type of thinking will be critical to ensuring the success rate of economic efficiency initiatives led and instituted by nations with a history of regional and global success. There are many variables in modern times that can impede the efficiency that nations seek in regards to economic efficiency. 

According to the essay, risk happens to be the most crucial and inevitable factor involved in financial investment. Investors at all stages are vulnerable to various types of risks associated with different investments. Shares are riskier than bonds because they do not bear any legal guarantee for the investors to recover their principal amount.

The author states that with the help of the paradox of thrift, Keynesian economics has been able to illustrate the differences between macroeconomics and microeconomics. It shows how microeconomic considerations only will seriously jeopardize the macroeconomic factors and the economy as a whole.

The author states that by shifting demand away from their own goods the resultant effect will be increased imports suggesting a weak currency in value as compared to the other country’s currency. The average value of the exchange rate between two currencies depends on their relative purchasing power.

When there is a rise in the price of a particular good you want to buy, it affects your spending level. In the short-term view, inflation and unemployment are inversely proportional to each other. That means when unemployment is high, the price level keeps low, and when inflation goes high, unemployment takes a downturn.

Amid the credit crunch and subprime crisis of the United States which brought about the bankruptcy of its biggest victim Lehman Brothers, I received a forwarded email which is the published opinion of Rosa Brooks from the Los Angeles Times. This is purportedly a letter to the US from the IMF and World Bank critiquing the recent policies and regulations of the country which lead to its downslide.

In the given work Becker presented the three foundational assumptions of the economic approach as "maximizing behavior, market equilibrium, and stable preferences". Becker defines primary auxiliary assumptions as household production and interdependent preferences and economic approach to the family.

As evident from the formula given above price elasticity of demand is calculated using percentage changes in quantity demanded and price. This is because elasticity is independent of the type of measure used. Average values for quantity and price are used so as to eliminate discrepancies arising due to movement from lower to higher or vice versa.

Claire Sterling in her book, “The Terror Network”, convincingly made the case that the Soviet Union was supporting international terrorism as a way to destabilize the west in general and the United States in particular. The foreign policy principles of the Reagan-Bush administration were friends of Sterling’s hypothesis.

The model of intertemporal trade is one of the simplest models which make up the foundations of contemporary economics. In its simplicity, this model gives significant information about the functioning of the entire economy. Micro-foundation models help us understand larger more complicated economic situations by starting at the basics.

The paper will include a report of the chosen business with data and statistics about the industry’s growth and competitors in the business. The purpose of the paper is to work on a detailed business review report touching on topics like price, income and cross elasticity,

This essay focuses on determining the influence of Hurricane Katrina on macroeconomic indicators, measured in the definite figures. Major relevant factors are discussed, such as labor force, GDP, inflation, trade and energy supply and prices. Macroeconomic effect of Katrina is deemed less dramatic, since affected states account to a small portion of economy.

The decision to consume one product usually comes with the trade-off of giving up the consumption of something else (Investopedia, 2009). The phrase ‘There is no such thing as a free lunch’ believed to be originated from some shops in the United States which offered free lunch to their customers who purchase a drink. 

The last part analyses the strengths and weaknesses of the economy as a location for FDI or foreign direct investments. The Appendix contains the summary of the key indicators for each of the three countries in this analysis.  Most of the data used in this paper came from one source, the latest Factbook of the Central Intelligence Agency (CIA, 2007).

The article “Corporate Income Tax” gives a clear definition of the corporate income tax, which is beneficial to the research. It defines corporate income tax as “a direct tax levied on a juristic company or partnership which is established under Thai or foreign law and carries on business in Thai or derive certain types of income from Thailand.”

The UK economy is suspended for its initial depression ever since the early 1990s. An idyllic tornado of growing price rises on the backside of the high product charges, a failing house financing, loans, financial market in addition to the tattered monetary segment have combined to darken the skies. 

Since it helps the economy to produce more, more goods are produced and everyone has more goods for consumption, living standard in the economy increases. This is why economists rate economic growth as a matter of great importance. If an economy is growing at 2.5%, the economic growth or total output will double from the current level in 70/2.5= 28 years.

According to the paper, tied aid does not help recipient countries as much as untied aid. First, tied aid is less cost-effective . Second, the recipient is not able to buy local goods or hire local companies. Just four countries (Norway, Denmark, the Netherlands and the UK) were breaking away from the idea of “tied aid” to the “untied aid”.

The three objectives of banks today are solvency, liquidity and of course profitability which despite their conflicting nature are still being pursued simultaneously. Today banks in allocating credit will rather prefer firms with a track record and not by political or other unprofessional considerations.

In the Post Industrial Revolution era, the economies of many countries have experienced tremendous growth, which has resulted in the shape of economic strength and high living standards in the countries such as United States, UK, and Japan. Despite the tremendous progress the economies of these countries also face periodical economic shocks.

David Ricardo coined the comparative advantage theory of trade. He considered two countries, two products and two factors of production. In his theory he stated that even if one country had an absolute advantage in the production of the two goods they would still gain by trading, absolute advantage according to Adam Smith refers to the cost advantage country posses in the production of goods.

The forward market is one of the various tools available to mitigate the risks involved in foreign exchange risk. The forward market is an OTC market where traders can buy or sell currency at a pre-specified rate for delivery on a pre-specified date. The exporter can sell the forward contract to hedge his/her receivables and the importer can buy forward contract to hedge his/her payables.

A lot of background work goes in before some company decides to expand in other countries. Once decided and implemented, this penetration process is very difficult to change. Issue of how to reach buyers effectively and efficiently and thereby maintain the profitability of the organisation is the prime concern of the distribution process. 

Thus the dichotomy of conceptual paradigms associated with the sovereign power of the consumer and the corporate power, have to be delineated against this larger picture of Galbraith's ideas (Friedman, 1977). In short Galbraith's penchant for criticism of the so-called conventional wisdom of neo-classical economic theory was essentially characterized by a greater degree of leaning by him on the concept of "affluent society".

While the world economy underwent sluggish growth in the 1970s and the 1980s, the performance of the Japanese economy was somewhat successful. Nevertheless, "Japan's Miracle" ended in the beginning of the 1990s. Since then, the Japanese economy has fallen into an acute and long slump and has entered into a new transition phase

 Architects, property developers, and town planners are forging an alliance that promises to champion the cause of progressive design in projects as diverse as apartments, individual houses, hotels, and commercial complexes. Security is of primary concern to people living in new small townships that are mushrooming all over Australia.

His conclusion is arrived at after extensive research and the research was primarily conducted on European companies. In Saudi Arabia, modern markets began about six months ago. The capital raised from equity is much better than the capital raised by binds, companies get into a partnership agreement with other big companies and this is how they make money through equity.

Long after the time of these tragic events, discussions on global and national developments are likely to be dominated by comparative narratives on what exactly held before the events of that day and how things changed thereafter. The 9/11 accelerated and aggravated already evident negative financial trends in the airline industry. The terrorist attacks exacted a terrible toll not only on human lives but also on the nation’s economic vitality.

And it is not only the sale of goods that may be an outcome of such international relations. It may also come in the form of foreign investments. For example, Luxembourg imports foodstuff from France. In exchange, France would invest a certain amount of money to create companies to boost employment in Luxembourg.

Under the Act of 1998, the Director-General of Fair Trading may possibly look into suspected infringes and, if he comes across either of the prohibitions has been infringed, has authorities to fine the corporations concerned more than 10 per cent of their twelve-monthly profits for more than three years. 

The continuation of this expansion and contraction trend in the economy is known as the business cycle. The subject matter of macroeconomic theory mainly constitutes the business cycle theory. The effects of the declining trends in economy expand to all the areas such as production, income, consumption and employment level.

Economists typically assume that the efficiency wage is too high and so leads to unemployment that is also too high. Regarding a model of costly labor turnover, Stiglitz writes, firms are likely to pay too high wages. But it should be emphasized that it is possible that the competitive wage is too low.

The author states that routine checks and audits can reduce the possibility of employee error and eliminate the possibility of vendor abuse. The flowchart of the manufacturing company that is represented in Bodnar and Hopwood, is overly complicated and omits several key components that are required to give the firm the necessary control.

According to the report there are two major types of coffee beans, namely Arabica and Robusta. Arabica is a better brand than Robusta and is basically grown where there is high elevation and optimal climatic condition for the same to grow. Coffee is more than just a drink; it has become a global commodity over the years.

This essay mainly focuses on the dispersion of the production process globally and its measurement through various indicators. Also, analysis was conducted in the essay, regarding the causes of inequality and steps taken to integrate the process of economic integration into the economic planning of various countries.

The statement states that interest rates in the past ten years have been low compared to the past forty years of interest rates, this means that in the last 10 years interest rates have remained low and declines, it also means that the last ten year period has recorded the lowest interest rates ever. 

Globalization aims at ensuring that there is free trade between the nations. Globalization aims at increasing the goods and services available in the economy. It opens up labor markets and competition among the producers in the nation ensuring that quality commodities and opportunities are available in the economy.

The Federalist Era began in 1789 with George Washington as the first president of the United States and John Adams as his vice president. They had with them the Articles of Confederation, the first governing document with which to preside over the country. Although it allowed for several possibilities − making war, negotiating diplomatic agreements.

Major banking institutions in the world have experienced some of the worst times, microfinance sectors continue experiencing a heightened expansion rate. One of the Pakistani managers of microfinance says that the business of microfinance is highly diversified. A microfinance institution called Dutch Oiko credit entirely depends upon its funds.

This paper will discuss chapter 12 and the Fourth Generation.Shortly after Jiang Zemen and his 3rd generation of leaders took over power from Den Xiaopeng and other revolutionaries, China began to face a new political succession. Most of the 3rd generation were in their 70's at the time.