Study "Economics / Finance / Banking" Essays 111-165

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Energy Economics and Negative Externality Essay

… The difference between the market demand and supply at that optimal quantity is required to be known. In other words, the government is required to know the marginal social damage caused by pollution at the optimum quantity (Duke and Kammen… [read more]

Economic Variables Essay

… Coffee Industry Economic Environment:

The coffee market is a mature industry in the United States where the dollar sales growth is fueled by consumers paying high prices for this product. The higher prices for coffee is attributed to four major factors including the increasing costs for raw or green coffee beans, tendency by customers to drink premium coffee, ever-increasing thirst for specialty coffee beverages, and exceptional growth of single-serve coffee packet formats. The United States coffee industry or market is classified into two major categories i.e. foodservice outlets and retail outlets for bulk and packaged coffee. The foodservice coffee outlets primarily sell liquid coffee for take-out or instant consumption on the premises while retail outlets sell coffee products to be prepared by consumers at different locations. Notably, there are some outlets such as Starbucks and other supermarkets that sell both kinds of coffee, which implies that they are concurrently foodservice and retail outlets.

Analysis of the Industry's Economic Environment:

In the past decade, the coffee industry has experienced constant growth and profitability that was temporarily slowed down by the 2009 global economic crisis. In addition to the economic slowdown, the coffee market was also affected by changing consumer tastes, though to a lesser extent (Samadi, 2012). The coffee industry economic environment can be understood through examining some economic variables about the industry such as & #8230;


The coffee industry has been a market that has experienced tremendous growth and productivity in the past decade. The productivity of this industry is evident in its annual revenue growth, especially in the past three years after the 2009 economic crisis. While the industry was affected by the global recession in 2009 that contributed to revenue decline of 6.6%, it has experienced significant revenue growth and productivity of 3.0% and 3.1% in 2010 and 2011 respectively. This productivity has also led to estimates that the coffee industry will continue to be productive at an annual rate of 1.2% in the next five years.

Unemployment Rate:

In the past five years, the coffee industry has experienced marginal growth in employment despite of increase in unemployment during this period. Industry employment rose at an average annual rate of 3.6% to 591,277 employees. However, this is a slow growth rate in employment as compared to previous years when the industry underwent an extensive period of rapid expansion. One of the major reasons for the slow growth in the rate of employment is because many operators consolidated certain underperforming outlets. However, it's expected that industry employment will increase at an annual average rate of 2.1%…… [read more]

Economics Mexico How Interest Rates Term Paper

… By March 2013 the inflation rate had neared the government target and growth in some economic sectors was slowing, so the government made a bold move, decreasing interest rates earlier than expected as a result of the decline in certain sectors, with the aim of limited the slow down in growth; they balanced the need to support growth and constrain inflation.


CIA, (2013), Mexico, [online] accessed 29th April 2013 from

Howells P.G.A, Bain, K, (2007), Financial Institutions and Markets, London, Longman

Hughes, E; O'Boyle M, (2013, April 27), Mexico Holds Interest Rates, Watches Capital Inflows, The Globe and Mail, [online] accessed 30 April 2013 from

Index Mundi, (2013), United Kingdom GDP, [online] accessed 30th April 2013 from

Index Mundi, (2013), Japan GDP, [online] accessed 30th April 2013 from

Nellis JG, Parker D, (2000), The Essence of the Economy, London, Prentice Hall

Thompson A, (2013, March 9), Mexico cuts interest rates to record low, Financial Times, [online] accessed 30th April 2013 from

Trading Economics, (2013), Mexico Interest Rate, [Online] accessed 30 April 2013 from

Trading Economics, (2013), United States Interest Rate, [online] accessed 30 April 2013 from

Trading Economics, I2013), United States GDP Growth Rate, [online] accessed 30 April 2013 from http://www.t

Trading Economics, (2013), United Kingdom Interest Rate, [online] accessed 30 April 2013 from http://www.tradinge

Mexico's…… [read more]

Reconstruction Finance Corporation Research Paper

… Reconstruction Finance Corporation

The creation of the Reconstruction Finance Corporation can be attributed to the period when there numerous government interventions in business operations. This was a period that was commonly referred to as the classically liberal political philosophy of many American administrations. This occurred before Herbert Hoover restricted their market interference to seemingly few peacetime interventions. The Reconstruction Finance Corporation was also established through the enactment of an Act by the Congress. Following his signing of the Reconstruction Finance Corporation Act, President Hoover stated that the measure established a powerful organization with enough resources to strengthen weaknesses that may occur in the country's credit, banking, and railway structure. As evident in its history, the Reconstruction Finance Corporation played a critical role in accomplishing its objectives.

Purpose of the Reconstruction Finance Corporation:

The purpose of the Reconstruction Finance Corporation can be identified through President Hoover's statement after he signed the Reconstruction Finance Corporation Act. The enactment of this act established a powerful organization with sufficient resources to foster the limitations that may develop in the country's credit, railway, and banking structure ("Statement about Signing," n.d.). The establishment of this corporation was to enable business and industry to conduct normal activities without any doubt of unexpected shocks and retarding impacts.

According to President Hoover, the main purpose of the Reconstruction Finance Corporation is to end deflation in agriculture and industry, which in turn increases employment through restoration of employees to the ordinary jobs. However, the Reconstruction Finance Corporation was not established to aid bug banks or industries because such institutions have the ability to take care of themselves in light of their operations.

In contrast, the corporation was created for the support of smaller banks and other financial institutions. The corporation was to provide the support to such institutions through depicting their resources liquid in order to offer improved help to business, agriculture, and industry. As a result, this organization would be a crucial part of the country's financial operations since it provides an opportunity to mobilize huge strength for the country in her recovery initiatives.

History of Reconstruction Finance Corporation:

The Reconstruction Finance Corporation was established and started its operations on February 22, 1932 ("Final Report," n.d.). The initial principal function for the Corporation was to expand financial help to commerce, agriculture, and industry through the channels of direct loans to financial institutions, banks, and trust companies. During the initial period of its operations, the Reconstruction Finance Corporation was responsible for loans to railroad companies and their receivers through the approval of the Interstate Commerce Commission.

The succession of the Reconstruction Finance Corporation was initially scheduled at 10 years, though new loans could be…… [read more]

Economics Government Regulations Term Paper

… The "perfect market" that is fully self-regulating relies on perfect information and no externalities, two assumptions that do not hold in the real world. Moreover, the process of self-regulation takes time, and will never really be achieved -- equilibrium only… [read more]

Economic Scenarios Higher Interest Rates Essay

… For a different reason, interest rates were very low during World War II. "During World War II, the Fed concentrated on maintaining 'low' interest rates so that the U.S. Treasury could sell enough bonds to finance the war….his policy pumped large quantities of inflationary new money into the monetary system. To hide inflation, the administration and Congress imposed direct controls on prices, wages, and production" (Timberlake 2008).

Higher interest rates, less capital invested

High interest rates with relatively low levels of capital were characteristic of the early 1980s; right after the Fed dramatically increased interest rates to curtail inflation. The U.S. went through a severe recession before the economy began to recover (Solomon 2008).

Which of these four scenarios are most important today? Which scenario is most conducive toward economic growth? Which scenario is the most normal historically?

Today, interest rates are low, but there is relatively little capital being invested because of concern about the economy. The scenario most conducive to economic growth are low interest rates and high levels of capital investment, which means that it is cheap to borrow and there are many incentives and opportunities to invest in expanding enterprises. In general, in America it has been more common for interest rates to be relatively high to combat inflation (given that prices are almost always going up) combined with relatively high rates of capital investment.


Barr, Colin. (2008). The darker side of interest rate cuts. CNN. Retrieved:

Solomon, Paul. (2009). What led to the high interest rates of the 1980s. PBS.

Timberlake, Richard. (2008). The original Federal Reserve System. The Concise Encyclopedia

of Economics. Retrieved:… [read more]

Economic Final Report Term Paper

… The state dictates jobs that individuals will do and sets prices of services and goods. Currently, countries that use command economic systems include North Korea and Cuba (Conklin, 61).

Traditional economic systems are mostly common in non-developed nations. Such systems are being practiced in countries such as Middle East, South America, Asia, and Africa. Economic decisions are governed by customs and technology is not applicable. Gathering, farming, and hunting are carried out using similar methods used in previous generations. Ethnic and family units motivate economic activities. Women and men carry out different economic tasks and roles. In mixed economic systems, individuals and the state participate equally in the process of making decisions. The state regulates and guides the production of services and products in the market place. Individuals make economic decisions that ensure workers and consumers are not exploited by unfair policies. This has been the most effective economic system in the provision of services and goods. In the current world, mixed economies include nations in Western Europe and the U.S.(Gregory and Robert 133).

How each economic system resolves resource allocation issues

In free economic markets, allocation of resources is determined by the willingness and ability of groups and individuals to pay more for goods. Such market principles are applied in the U.S. In command economic systems, the state dictates how resources are allocated. A good example is the U.S.S.R. In mixed economic systems, some resources are allocated using free markets and others are allocated through government dictatorship. A good example of a mixed economic market is whereby the state subsidizes certain economic activities in a free market (Conklin, 88).

The role of government in different economics systems

The government's role in all the economic systems is provision of legal systems enforcing laws and protecting rights of private property. The government provides public goods where the private business sector and individuals cannot provide. The government is responsible for correcting market failures including economic slowdown and external costs. The government provides public goods such as defending people against security invasion, transportation systems such as highways and traffic lights, public education, clean water and air (Gregory and Robert 151).

Factors of production including examples and their role in the production of goods and services

These factors include labor, land, and capital inputs in production. Land is the primary source of all the material richness and immensely importance. Countries appreciate the richness of their land like climate, soil, and rainfall because they influence all economic aspects of life. Energy and materials are categorized as secondary production factors in classical systems of the economy because they originate from capital, labor and land (Keese, Pete and Ge-rard, 37). The factors are used in facilitating production of goods, but they do not form part of the product itself. Similarly, the production process does not cause any significance transformation on them. Land as a primary factor of production, entails the production site, as well as the soil and above all the natural resources. Land, as a production… [read more]

Finance One Difference Between Industries Multiple Chapters

… DQ1, Chapter 5, 6. Investors are seldom made whole with the "make whole" provision. A premium of 0.4% over Treasury is not consistent with the risk level of the firm. The YTM on the bond will reflect the actual credit quality of the bond, but ECY is not nearly large enough to have AAA credit, so the make whole provision does not apply a significant enough risk premium to the bonds -- the investors are not entirely made whole.

7. I would recommend regular coupon issue for a couple of reasons. The first is that the company raises more money in the short run, though it pays out more in interest down the road. However, regular coupon bonds are also more common and therefore have a bigger market. With greater liquidity, ECY can get a slightly better rate of return, since liquidity is a factor in the market price of bonds. I recommend the option that gives ECY more money up front and a bigger market for the issue -- regular coupon bonds. I recommend an ordinary call feature for the bonds. ECY would get more up front for the make whole provision, but there is less certainty with respect to future cash flows -- what it would cost to call the bonds down the road, since that would depend on the Treasury rate.

DQ 2, Chapter 20 Closing Case

5. The company should pursue international sales if these sales have a positive contribution margin. With the 0.73 exchange rate, the company's contribution is as follows:

Gross, €


less comm, €


Net Revenue, €


FX rate


Revenue, $




Operating Profit, $


With the 0.80 rate, the contribution is as follows:

Gross, €


less comm, €


Net Revenue, €


FX rate


Revenue, $




Operating Profit,…… [read more]

Big to Fail Problem?: Economic Growth Term Paper

… ¶ … Big to fail problem?: Economic Growth

As stated by the New Classical Model, economic growth can be attained by collecting labor, wealth and other issues of production. For the reason that most of these factors are going through… [read more]

Economics the Keynesian Economic Theorists Term Paper

… The economic policies imply that the U.S. is ready to reduce trade deficit, find new markets for locally produced goods, increase industry, and manufacturing, increase foreign exchange, increase income through job creation, and reduce unemployment. This leads to a trickle-down effect as a reduction in budget deficit implies a reduction in trade deficit, which in turn will reduce and end currency manipulation by other major currencies like Chinese Yen. The changes in economic policies imply the U.S. will increase regulation and stringent policies on trade, public budgets, jobs, and investment with the aim of ending currency manipulation that is the cause of the decline and near death of American manufacturing.


Protectionists theory on trade policies argue that international trade contributes to the increase of economic problems like the large and persistent budget and trade deficits, slow economic growth and problems with many industries. The theory believes protectionist trade policies will protect local economy by restricting trade through tariffs and quotas. The theory believes the free trade policies led to liberalization of the market as the U.S. competed with nations like China with a better comparative advantage. This comparative advantage meant the U.S. experienced an unbalanced trade relation that saw the rise of currency manipulation, the weakening of the dollar and the fall of the industrial and manufacturing sectors. This in turn led to an increase in budget deficit as the government moved in the balance and support with surpluses social welfare services. However, under protectionist policies, the domestic production will increase as industries are protected from imports, workers, owners, and suppliers will benefit from using local resources. This also leads to increased tariff revenue on the government as industry and manufacturing grows. In turn, expansion of the domestic production will lead to less competition from imports driving the demand for domestic goods. However, protectionist policies may harm industries as consumption decreases as prices of goods rises, and output declines as prices rise. In the long run, domestic production declines from high prices, revenues, and lack of competition from imports.

Works Cited

Baumol, William J. And Stuart Alan B. "Macroeconomics: Principles & Policy." 12th ed. Mason, OH: South-Western, Cengage Learning, 2012. Print.

Free, Rhona C. "21st Century Economics: A Reference Handbook, Volume 1." Thousand Oaks, California; SAGE Publications, Inc., 2010. Print.

Padalkina, Dina. "The Macroeconomics of De-Growth- Can a De-Growth Strategy be…… [read more]

Basel III in What Sense Term Paper

… There is going to be a further decline in the ROE in the retail-banking activities of the banks that meet the criteria of being global systemically important financial institutions (G-SIFIs). This decline in ROE is expected to be between 0.4… [read more]

Finance Function of Global Corporation Article Review

… ¶ … Finance Function of Global Corporation," discusses the ramifications of the increasingly global marketplace for CFO's and those in organizational decision-making roles as financial operatives. The author uncovers both positive and negative consequences of the opportunities afforded to such employees who must deal with issues at the local, national and worldwide levels while considering the impact of their decisions on both subsidiaries and parent countries. In addition to stratifying contemporary responsibilities according to areas of finance, capital budgeting and risk management, he also offers a series of best practices that allows individuals and entities to take advantage of changes in the emerging global marketplace.

One of the strengths of this document is the author's usage of actual case studies to illustrate many of his concepts. From this point-of-view, he is at his best when detailing the global capital budgeting mistakes of Japan's Asahi Glass or AES's missteps in the early 1990's related to poor valuation decisions for investment opportunities. As elucidating as some of these examples are, however, there are certain points in the article in which there appears to be a dearth of analysis of these case studies. This fact is most eminently reflected in the global capital budgeting section of the article in which he chronicles companies' capital mishaps, yet devotes precious little attention to more profitable approaches. Or rather, he simply alludes to more advantageous measures, cautioning against "adopting a narrow financial approach" that results in "an outcome directly at odds with the company's strategic investment" (Desai, p.2).

Still, it is this sort of understatement which lies at the root of the author's intention in writing this article. In many respects, this piece of literature functions as a means of enlightening financial professionals about the (literal) world of opportunities around them, and urges them to abandon traditional thinking based on a local or domestic view of an organization. The principle theme of the author's article is that because of increasing efforts towards globalization, financial responsibilities for many companies include not only conventional ones but the management of "what amounts to internal markets for capital" (Desai, p.1), which is a reference to the common trend towards having international subsidiaries. Due to differences in currency, local political and economic conditions, the effective management of those subsidiaries requires a wider, less streamlined approach than simply managing a traditional company in one domestic location does.

One of the more effective passages in which the author reinforces his assertion that the financial management of international subsidiaries is substantially different from the conventional notion of financial management is in the section where he discusses a multitude of financing options afforded by international subsidiaries. In this passage, he elucidates a number of specific options that readers can readily take advantage of, which provides the best support for his theme. For instance, he explains how it is possible to exploit differences in tax and interest rates in international settings by the…… [read more]

Economic Situation Term Paper

… In brief, the nation's unemployment rate still hovers just under 8%; the CPI was a -.3 in November 2012, then 0 in December 2012; January 2013 U.S. Import price index moved from -.5 in December to .6, but 4th Quarter productivity statistics are down -2.0 while the employment cost index for 4th Quarter 2012 remains about a steady .5 (Economy at a Glance, 2013).

Still, on an overview, the U.S. economy is the world's largest national economy with a nominal GDP at almost $16 trillion, or about 25% of the global nominal GDP. Growth is sluggish at 1.5% with inflation at 1.7%. Federal, state and local governmental spending account for about 30% of the gross domestic product, and the federal government's debt rose another $1.09 trillion in 1012, or about 100.5% of GDP. The U.S. remains committed to about five major trading partners, all of which affect the economic outlook for 2013 (China at almost 20%, Canada, 14%, Mexico, 12%, Japan 6%, and Germany 5%). Of some alarm, though, is that Standard and Poor's, Moody's and Fitch's economic indicators are all negative for at least the first part of 2013, certainly requiring the Federal Reserve to become more aggressive in its fiscal policies to improve the robustness and quicken the growth of the national economy (Credit Ratings, 2012; Sahadi, 2012; National Economic Trends, 2013).


Credit Ratings: How Fitch, Moody's and S&P Rate. (2012). The U.K. Guardian. Retrieved from:

Economy at a Glance -- The United States. (2013). U.S. Department of Labor Bureau of Labor Statistics. Retrieved from:

Jobless Claims Fall More than Expected. (February 14, 2013). The New York Times. Retrieved from:

National Economic Trends. (January 30, 2013). The Federal Reserve (St. Louis). Retrieved from:

Recap of Obama's 2013 State of the Union Address. (February 13, 2013). The New York Times. Retrieved from:

Retail Sales Show a Slight Increase. (February 13, 2013). The New York Times. Retrieved from:

Perlo, A. (February 13, 2012). The U.S. Economic Situation and the 2012 Elections. Political Retrieved from:

Rampell, C. (December 16, 2012). Forecast is Sunnier, but Washington Casts a Big Shadow. The New York Times. Retrieved from:

Sahadi, J. (October 5, 2012). Deficit Tops $1 trillion for 4th Straight Year. CNN MONEY. Retrieved from:… [read more]

Economic Indicators Assessment

… Economic Indicators

Savings Rate

Economic Indicator- the savings rate is the income that is not spent and is instead differed for consumption. In some instances, saving can also include reducing recurring costs such as a cell phone, or cable bill.… [read more]

Private Sector Investment and Economic Literature Review

… Further considerations on the unlikely eventualities are incorporated. In this case in order for sustainable development to occur through private investment there is need not only for saving to provide borrowing funds. There is also the need for stability and… [read more]

Economic and Quantitative Analysis Topics Term Paper

… The United States has shifted in a major way on two different occasions over its existence. First, they went from an agrarian economy to an industrial one and now they are shifting to a service/knowledge foundation while the once dominant manufacturing industry in that country is becoming an afterthought except when speaking of advance/high-tech manufacturing. If someone were to analyze the United States economy over its entire existence, using a singular and fixed model would be asinine and obtuse because of these seismic changes that have occurred. Looking at the United States economy now through a year 1840 lens would be silly.

In a similar vein, looking at Nigeria now would require a certain model and that model would exhibit certain patterns and trends. However, all of the above would change demonstrably over time and the model would have to be adjusted with variables having to be adjusted, removed or added as time goes on. Any adjustments to the model would need to be based on real-world results and patterns and not simple conjecture and theory.

Analysis Summary

As already noted above, using regression analysis can be instructive and useful and can indeed yield some great insights. However, factors and variables that are external to the primary variables and metrics being looked at should not be ignored when they can and would affect the variables that are the primary focus. As long as the primary variables being looked at are not being looked at using tunnel-vision, then the primary variables should be the focus and those variables will be what get the job done unless they're wrong or there's not enough being looked at in an exhaustive fashion.

One very large variable that complicates research is noted by Temple and Johnson (1998) when they make reference to social capability. This is something that makes a lot of people froth at the mouth but the social norms and structure of a country certainly have an effect on economic patterns and outcomes. Islam (1995) says much the same thing when it is noted that the production function and performance will vary from country to country. The model of Solow, as mentioned by Mankiw et al. (1992) show a correlation between per capita income and poverty and the exports vs. service sector paradigm in Nigeria certainly feeds that model's results and proves it to be right.


In conclusion, regression analysis in an economic context can and does work but it must be done in a common-sense way. Data and external elements that should be taken serious and should be included in any analysis should be retained while elements and variables that are indeed not consequential to the situation should be ignored or at least put on the periphery for further review later as needed. Lastly, economics is absolutely one of those sectors where politics and biases can pollute everything. Many people are Keynesian purists while others swear by supply-side theory until they die. There is no singular answer to the economic questions… [read more]

China and the Economy Chinese Research Paper

… A pro-consumer policy can go a long way to alleviate this dependency. It will allow growth internally in regards to wealth and GDP. Instead of being reliant on foreign consumers, China can instead rely on its internal citizenry. In order… [read more]

Great Recession Term Paper

… ¶ … Policy Choices of the Future Path of the Economy

I left school in 2006 to begin service in South Korea's military. In 2007, many South Koreans were taken by surprise by the news that the U.S. economy was… [read more]

Sustainable Development and Economic Growth? Essay

… It must integrate the best thoughts that are from the market economy nonetheless stress collaboration rather than competition (Hennicke, 2005). Experts believe that they need a shared principle that gives all people the chance to understand one's potential, within the natural boundaries of earth (Hettiarachchi, 2012). Experts that only then people can start to trust that there will someday be enough cake for everyone to have

In conclusion, it is clear that 'economic growth' does indeed constitute a crucial element of 'sustainable development. With a worldwide economy, it is on right that people need to rethink the fundamentals of economics for the reason that with the monetary organization we are given with in these times, sustainable development and economic growth will not be able to achieve simultaneously, it just will not be possible.


Abstracts from the society for clinical trials annual meeting, Miami, may 21-23, 2012. (2012). Clinical Trials, 9(4), 450-554.

Hennicke, P. (2005). Long-term scenarios and options for sustainable energy systems and for climate protection: A short overview. International Journal of Environmental Science and Technology: (IJEST), 2(2), 181-191.

Hettiarachchi, S. (2012). Sufficiency and material development: A post-secular reflection in the light of Buddhist thought. European Review, 20(1), 114-130.

Huesemann, M.H. (2003). The limits of technological solutions to sustainable development. Clean…… [read more]

Argentina Political Factors Research Paper

… Argentina

Political System

Argentina was founded in 1816 as the United Province of Rio Plata, and today's nation is what remained after Bolivia, Paraguay and Uruguay split from that country (CIA World Factbook, 2012). Argentina is a republic, and throughout… [read more]

International Finance Asia Essay

… ¶ … Asian Miracle to an Asian Century? Economic Transformation in the 2000s and Prospects for the 2010s, Yiping Huang and Bijun Wang concern themselves with the transformation of Asian economies in the past decade. The authors further speculate on… [read more]

Marxian Economics Karl Research Paper

… The variable capital reflects the labor force, which produces value through its own input, as well creates excess; its value varies across time and space.


The concept of the surplus value reveals the generation of profits, as what is resulted from the difference between the resources invested and the final results of the process. According to Karl Marx, who also assesses the surplus value through the lenses of labor:

"The consumption of labor power is at one and the same time the production of commodities and of surplus value. […] The surplus of the total value of the product, over the sum of values of its constituent factors, is surplus of the expanded capital over the capital originally advanced" (Munro).

In the most simplistic formulation then, the surplus value represents the profit of the business agent. According to Marx, the profit is then composed of three important elements, namely the interest on capital, the rent on land and the physical capital, and last, the normal profit of the entrepreneur, or the wages of entrepreneurship.


While the entrepreneurs often seek to increase their profits, the actual profitability rate tends to decrease within the long-term. This conclusion was reached by all economists from Adam Smith, to David Ricardo and even Karl Marx, yet each had their on explanation for the phenomenon. Marx as such contended that the economic agents come to focus more on development and advancement, and that they come to invest more and more in this direction. In other words, they spend larger portions of their capitals on new investments and this decision negatively impacts the ultimate profitability rate.


Last, the final focus of the Marxian economics falls on the definition of the concepts of monopoly capitalism, impoverishment and crisis. The concept of the monopoly is explained through the accumulation of wealth, through repetitive actions and advantages, in the hands of a few. In the monopolistic market place, the smaller companies will either be driven out of business as uncompetitive, or will be absorbed into the monopoly.

The monopolies, almost always, thrive through the exploitation of labor and they seek to maximize profits; they nevertheless fall into the same pattern of long-term decreases in the profitability rates. The monopolies will seek to counter act this trend by further exploiting labor, which will generate additional unemployment (further supported by technology integration). The working classes will as such be exploited and impoverishment will be created, alongside with the emergence of crisis situations. This virtually reflects the contradiction of capitalism (Richards, 2002).


Munro, J.H.. Some basic principles of Marxian economics. University of Toronto. accessed on October 1, 2012

Prychitko, D.L. Marxism. Library of Economics and Liberty. accessed on October 1, 2012

Richards, A. (2002). Development and modes of production in Marxian economics: Harwood fundamentals of applied economics. Routledge Roemer, J.E. (1989). Analytical foundations of Marxian economic theory. Cambridge University Press

(2012). Marxian economics. accessed on October 1,…… [read more]

Business Economics the Limitations Essay

… As a result, there are high chances of upgrading productions and increasing revenue especially in enhancing innovations. For instance, frictional unemployment can lead to people changing profession to engage in businesses that suite a person's interest. This is clearly a way of improving performance in the business and employment industry. In addition, it is important t note that by working passionately one can produce more than one who is working under pressure. Similarly is the importance of frictional unemployment in a nation.

Once the government and leadership of a nation have realized this aspects and it implications then the government can come up with additional job opportunities, business forums, and entrepreneur programs that will lead to economic recovery. However, it is crucial to note that it is an individual effort that can easily eliminate such a situation. Therefore, it calls for team work to reduce frictional unemployment.

Chapter 16, Question 11

Types of Unemployment

The three types of unemployment are

i) Frictional unemployment: this refers to the category of people with capabilities of performing well in their areas of work. They are people who may have drooped out of their employment, school leaver etc. They are people that are temporarily waiting and looking forward for better opportunities to earn a living. On the other hand, it refers to the state of seeking for preferred employees in a given company. This is likely to a short-term circumstance (Tucker 170).

Frictional unemployment can be worked out by government temporary jobs. For instance, summer job programs that serve for a short while can provide temporary employment for school leavers.

ii) Structural unemployment: it is a long-term situation that arises from the mismatch of employment. Often it comes up when people with less skill are fired from their employment due to under performance. Therefore, in this category there are vacancies but the people may be under qualified. This calls for extra effort for one to improve in skills and knowledge to get employed (Tucker 171).

iii) Structural employment can be combated by introducing programs that equip people with basic skills that can help them come up with small businesses to cater for their primary needs. On the other hand, rural area development programs playa leading role in reducing structural unemployment.

iv) Cyclical unemployment: this is unemployment that results from business cycles. For instance there are times when the GDP falls. At this time companies may prefer to reduce their workers thus leading to a scramble for the few jobs left. Factors which can contribute to this state of affairs include increased government spending, consumption, or investments thus affecting production rate. Cyclical unemployment pushed people to the edge to find extra means of earning (Tucker 172).

EAP program are a reliable means for the government to reduce cyclical unemployment because such programs come with compensation that is given automatically. That is all those who have gained from any inflation are made to compensate those who have lost.

Works Cited

Gwartney, James D., Stroup, Richard L.,… [read more]

Securities and Exchange Commission (SEC) Essay

… For example, when a company conducts an IPO, it is tapping the investing public for capital and is therefore using the capital markets. This is also true when a country's government issues Treasury bonds in the bond market to fund its spending initiatives (Sanusi,1984).

The laws that govern the securities industry in America stem from a simple concept: all investors, whether large institutions or private individuals, should have access to certain basic facts about an investment prior to buying it, and so long as they hold it. To achieve this, the SEC

requires public companies to disclose meaningful financial and other information to the public.

This provides a common pool of knowledge for all investors to use to judge for themselves whether to buy, sell, or hold a particular security. Only through the steady flow of timely, comprehensive, and accurate information can people make sound investment decisions.

The SEC oversees the key participants in the securities world, including securities exchanges, securities brokers and dealers, investment advisors, and mutual funds. Here the SEC

is concerned primarily with promoting the disclosure of important market-related information, maintaining fair dealing, and protecting against fraud. The SEC's effectiveness in each of these areas is its enforcement authority. Each year the SEC brings hundreds of civil enforcement actions against individuals and companies for violation of the securities laws. Typical infractions include insider trading, accounting fraud, and providing false or misleading information about securities and the companies that issue them.


S.E.C. (1982). "The Role on the Capital Market in the Structural Adjustment Programme (SAP)," Lagos, SEC Quarterly June, Vol 4, No 2.

Sanusi, J.O (1984). The Capital Market: A Boost to Economic development (The banking Aspect)" Seminar Paper on the Capital Market, Lagos.

Matthew Shane., 1970. Capital Markets and the Process of Economic Growth, 77 i.e.…… [read more]

Deregulation and the Impact on Global Finance Research Paper

… Glass Steagall

"Bring back the Glass-Steagall Act of 1933 which led to half a century, free of financial crises" (Denning, S. July 25, 2012. PP. 1). Articulating this position was not a democratic senator looing to harness in the power and influence of the Wall Street money center banks, but rather the architect in the late 1990's of the global mega financial institution; Mr. Sandy Weill former CEO of Citigroup. Weill is a pivotal figure in the timeline of Glass- Steagall's repeal in 1999 via the Financial Services Modernization Act, and the legislation's role in sowing the seeds of the global financial crisis of 2007-2009. Weill's July 2012 statement regarding Glass- Steagall demonstrates the enormous impact which Wall Street exerted over the economic landscape throughout the last two decades, and the importance of a strong and reasoned regulatory infrastructure to oversee its activities.

Glass- Steagall

Following the stock market crash of 1929 and the four subsequent years of the Great Depression, America's financial system had deteriorated with the banking system in tatters, savers ruined, and credit and lending brought to a standstill. As part of the ameliorative effort to bring soundness and solvency to the system, the FDR Administration promoted multiple fixes to the regulatory regime: FDIC, national banking holiday, Reconstruction Finance Corporation, and the Securities and Exchange Commission. Yet, perhaps no piece of legislation was more critical to the nation's restoration of the embattled financial system than the Glass-Steagall Act. "In 1933, Senator Carter Glass (D-Va.) and Congressman Henry Steagall (D-Ala.) introduced the historic legislation that bears their name, seeking to limit the conflicts of interest created when commercial banks are permitted to underwrite stocks or bonds" ( N.D. PP. 1). In the simplest context, Glass- Steagall erected a…… [read more]

Greece's Debt Crisis Causes and Solutions Essay


The current crisis that surrounds the Greek economy has been the first ordeal that has been felt in the market of Eurozone area. Such conception is certain to draw attention on academic research on… [read more]

Define Economics Research Paper

… Models enable experiments. For instance, economists can manipulate interest rates to understand their impact or test to see if fiscal stimulus packages will produce the desired results in the economy. The model allows for more definitive statements to be made about causality (Stapleford, 2012).

There are downsides to models, however. They rely on assumptions which are often not based in reality. If the assumptions are incorrect, the conclusions drawn for models will also be invalid (Encyclopedia Britannica, 2009). Thus, it is an important task of economists to constantly refine models and compare them against actual data. By adjusting models in areas that underperform under this comparison, improvements can be made to provide strong insights and intuition into how the world works (Funderburk, 2012).

The debate of whether economics can be referred to as an actual science is a challenging one. One of the more interesting arguments is that economics is simply an artifact of human imagination with no basis in physical reality other than what is identified by the players (humans) to be components (Funderburk, 2012). Properties are determined by and limited only by the beliefs of the players.

In order to build economic models, one must assume certain features, and the models become part of the generators of the results. Since none of this is fundamentally tied to physical and biological reality, the model fails time and again as our physical and biological world view changes -- or as people believe the physical and biological world exists. Thus, critics argue, economics is in large part merely a reflection of human belief systems.


"Economics." Britannica Concise Encyclopedia. Chicago: Encyclopedia Britannica, 2009. Credo Reference. 3 Sept. 2010. Web. 10 Aug. 2012.

Funderburk, D.R. (2012). Is the "New Economics" Either New or Economics?. National Social Science Journal, 38(2), 20-28.

Stapleford, T.A. (2012). Measuring America:…… [read more]

Economics There Is a Belief Term Paper

… Phillips Curve

Theories offer possible solutions to problems that do not have sufficient hard evidence to make one solution likely. In the case of economies, the process through which they are controlled is not known, and the interactions between elements… [read more]

Globalization and the Impacts in the Politics of Authority Essay

… Globalization and the Impacts in the Politics of Authority

Does globalization impact in triggering recent economic recession?

The current financial crisis will be remembered as one of the most serious in the history of world capitalism. The increasing difficulty experienced… [read more]

Macro-Economics Macro Economics There Are Numerous Issues Term Paper

… Macro-Economics

Macro Economics

There are numerous issues that governments must refer to when developing the strategy that the budget must be based on. Such issues are represented by fiscal and monetary policies. Fiscal policy is represented by the strategy developed… [read more]

European Union Economy Issues and Policies Essay

… ¶ … country leave the EU or the euro zone?

This policy paper is for the attention of the Prime Minister of the United Kingdom, David Cameron. It explores whether the UK should depart from the European Union amidst the… [read more]

Communism to Capitalism: Vietnam's Economic Case Study

… 4 billion in 2001 to $6.4 in 2004 (Van Khai, 2005). As relations between the two countries continue to grow through efforts implemented by both to put behind the past and move into the future, it is expected that trade exports will increase to the United States. Efforts between the both include a joined effort to find the remains of soldiers lost during the war.

3. Some critics have argued that Cuba is more deserving of diplomatic and trade relations with the United States than Vietnam. What are some of the factors behind this argument?

Critics have argued that the embargo against Cuba has not resulted in the intended consequences that were expected when the embargos were first initiated in the early 1960s and that in order for the country to reform; they need encouragement with political and economic reform (Wall, 1994). Opposition has occurred with the United States government because they believe if the restrictions are lifted, Fidel Castro will continue his ways of government with no open elections and lack of human rights (Greenhouse, 1994). Being Castro is no longer considered a threat to the United States with the downfall of Communism; many see no reason not to reopen trade with the country, because they argue that by not doing so, we are only causing harm to the citizens of Cuba, and not Castro.

Works Cited

Greenhouse, Steven. "New Calls To Lift Embargo On Cuba." New York Times 20 Feb. 1994: 4. MasterFILE Premier. Web. 8 May 2012. Retrieved from, uid&db=f5h&AN=30375796&site=ehost-live

Van Khai, Phan. "Putting Behind The Past And Looking Toward The Future." Foreign Affairs 84.5 (2005): 1. MasterFILE Premier. Web. 8 May 2012. Retrieved from, uid&db=f5h&AN=18035092&site=ehost-live

Wall, James M. "If Vietnam, Why Not Cuba?" Christian Century 111.5 (1994): 155. MasterFILE Premier. Web. 8 May 2012. Retrieved from, uid&db=f5h&AN=9403174526&site=ehost-live… [read more]

Global Financial Crisis and the Banking Systems in Australia Canada and United States Essay

… Global Financial Crisis and the Banking Systems in Australia, Canada and United States

What common features of the banking systems of Australia and Canada might be behind the relative 'good' performance of both of these country's banks through the global… [read more]

International Labour Case Study

… France

Provide a statistical profile of your allocated country's labor market and present an overview of the most important trends and developments in this country's labor market over the past decade.

One cannot discuss the country's labor markets without discussing… [read more]

Economic Development Is a Key Term Paper

… System of incentivizing workers to increase productivity was also introduced.

(Chenery) in a comparative framework for assessing performance of China in comparison to other developing countries says that China has achieved the adequate industrial structure and investment structure of a… [read more]

Economics Is the Study of How Markets Essay

… Economics is the study of how markets work. It is based around describing the patterns and interrelations of the production, distribution and consumption of goods and services. Microeconomics is concerned with the economics of individual decision making. By understanding the rational for individual-level decisions, microeconomics helps to provide insight into the specific patterns of production, distribution and consumption that we see in society.

Two key points in microeconomics are the law of supply and the law of demand. The law of supply holds that all other things being equal, as the price of a good increases, supply of that good will increase. This is because producers can increase their profits, and produce more in order to do so. The law of demand holds that all other things being equal, as the price of a good increases, demand for the good will decrease. An important underlying factor in the law of demand is the concept of utility. Utility is the value that a consumer gains from a product or service. That value is often difficult to measure quantitatively, but is known qualitatively as utility -- what the consumer gets out of the bargain. Rational consumers will only purchase a product if the utility they expect to gain from that product exceeds the cost of that product. Thus, as the price of the product increases, fewer consumers will find that the product delivers more value in utility than the cost of the good. As a result, demand for the good decreases as the price increases.

The New Housing Market -- Factors to Consider

When we look at the new housing market, there are a number of different factors that go into a change in supply. Generally, supply is led by expected demand in the new housing market. Because of the high sunk costs, and the inability to move the finished product, developers only build when they expect to sell, so all three of those factors play into the supply decision. In addition, government action plays into the decision, since governments must license land for development. There is a balance between offering ample land for development (which developers like to see -- ease of access to a key input) and too much access to land, which risks market saturation.

The factors that have an impact on demand are perhaps more complicated. The prevailing price of new homes is important. This means that all the costs associated with a new home purchase are a factor, including interest rates. Indeed, interest rates are a key driver in new housing demand because of their impact on total purchase cost. New home sales fell, however, despite low rates, indicating that there are also other factors at work. One such other factor is the expected state of the economy. Home ownership is a…… [read more]

Government Subsidized Student Loans Thesis

… Higher education is taken to be a safeguard against unemployment with statistics indicating that unemployment among university graduates was 4.4% whereas for people who had not completed secondary school, unemployment was near 11.5%. (The Economist, 2011)

Although the phenomenon, with… [read more]

Financial Policy on Advance Medical Technology Essay

… Finance

There are a number of reasons for the company's need for additional financing. AMD has high levels of research and development spending, has expanded its sales force significantly and has focused on entering new markets. Thus, the company has… [read more]

Process of Economic Development Essay

… Economic Development

Role of Geography and institutions in economic development

Over the years, there have been debates on the role that geography of a nation or continent plays in contribution to the economy of a region. On one hand, there… [read more]

Corporate Finance Tools in Daily Essay

… While interest rates are low it may be tempting to take a bond or set term savings account with interest rates fixed for a period of time. However, although interest rates may be currently low, they might not remain this… [read more]

Regulation of Banks Essay

… Investment banks also underwrite stock offerings just as they do bond offerings. In the stock offering process, a company sells a portion of the equity (or ownership) of itself to the investing public. The very first time a company chooses… [read more]

Banking Website Research Proposal

… This helps the firm to be able to provide customers with products that can address specific needs. A few of the most notable include: weekend trading, foreign exchange services, ATM's and coin / deposit / change machines. These elements are… [read more]

Strategic Planning the Internationalized Economic Crisis Research Paper

… Strategic Planning

The internationalized economic crisis has generated new pressures for economic agents across the globe. By far, the most severely affected sector is represented by the financial sector, where fiscal companies went bankrupt or were subjected to nationalization in… [read more]

Bank Finance Management Book Report

… Bank Finance Management

The global economic crisis, that has its roots in the global financial crisis of 2007 and 2008 started off from the collapse of giant financial institutions such as Bears Stearns, Lehman Brothers and Citi Bank. In the… [read more]

Personal Finance Goal Essay

… Personal Finance Goal: Buying a New Home and Saving in my Roth IRA

One of the most powerful aspects of goals is that they have the ability to energize and focus people's efforts to attain greater accomplishments than if they had just let fate or circumstance guide them. It's been my experience that the more passionate someone is about a goal, the greater the five principles of goal setting work together to keep the accomplishment in greater focus and more attainable as a result. My goals are to buy a home and also save $15,000 in my Roth IRA.

It's been my experience that the factors affecting this goal include ongoing costs, some fixed yet many variable, including the price of food, gasoline, electricity, entertainment and leisure travel. Cutting back on all of these elements has helped also get me more focused on my two very, challenging economic goals. The decisions to not spend have been more efficient, there's not so much time wasted debating the value of spending vs. saving when the goals of a new home and $15,000 in a Roth IRA are engrained in my way of seeing trade-offs now when it comes to budgeting and spending.

The five principles of goal setting including clarity, challenge, commitment, feedback and task complexity are all critical foundational elements for any goal to be attained. In defining the goal of buying a new home, the clarity of the specific type of house, the price range I can afford, and most important of all, the size of the down payment all are clearly defined. The clarity of the goal for getting $15,000 saving in a Roth IRA leads me to say "no" to spending on other items I would typically say "yes" to. I am finding the greater the clarity of the goal, the easier it is to shut out distractions and other potential detracting elements and stay entirely committed to accomplishing it. The clarity of the home and…… [read more]

Economic Theory Since the Great Research Paper

… This is significant, because it is a sign that various protectionist policies are ineffective at addressing the underlying challenges facing the nation. ("Hawley Smoot Tariff," 2011) (Griswold, 1998)

Clearly, Keynesian economic policies can stabilize the economy. Yet, they are not the end all solution to different economic challenges. While, supply side economics can help to address certain aspects of the different issues facing the nation. However, in both cases they have played a role in helping to contribute to the consistent amount of trade deficits. As a result, some individuals have called for protectionist policies to deal with these challenges. The problem is that this will only make the underlying economic situation worse. Therefore, an approach needs to be taken that will look at the different views and create some kind of balanced approach when dealing with these kinds of issues. (1,651 words)


Hawley Smoot Tariff. (2011). Info Please. Retrieved from:

New Keynesian Economics. (2011). Investopedia. Retrieved from:

Griswold, D. (1998). America's Maligned Trade Deficit. Cato. Retrieved from:

Lipsey, R. (2007). The Keynesian Approach. Oxford University Press. Retrieved from:

MacEnzie, B. (2011). U.S. Trade Deficit. IIP Digital. Retrieved from:

Roubini, N. (1997). Supply Side Economics. NYU. Retrieved from:… [read more]

Public Finance Is an Area Research Paper

… For this reason local governments have to take into consideration the impact that property taxes can have on the local population.

In addition to urban sprawl there are other impacts or influences that are associated with property taxes. Some are… [read more]

My Internship in SCFB Term Paper

… Internship at SCFB

I worked in the Standard Chartered First Bank in Seoul, Korea. At the bank's headquarters, I worked in the Risk Finance Department. The Standard Chartered first Bank began its existence in the year 1929 as Chosun Savings… [read more]

Public/Government Finance Public (Government) Research Paper

… While the implications of that requirement are outside the scope of this paper, job creation presents its own painful challenges.

The Implications and Measuring Success

There is furious debate around the country about funding for social programs, so almost any recommendation will be considered controversial. Having said that, the obvious solution is tax reform that eliminates tax breaks and closes tax loopholes for wealthy individuals and corporations. This philosophy does not sit well with a number of people, but who else has the money? Certainly not the shrinking middle class or the growing disadvantaged class of people living near or below poverty levels. Moreover, the current tax structure makes no economic sense, nor does it advance any worthwhile social policy, in so far as it allows Bill Gates to pay a lower effective tax rate than does his administrative assistant.

As for measuring the success or failure of this recommendation, the ultimate measure of how well a program like unemployment benefits works is whether people continue to believe in the American dream, that if they work hard they can advance. There is no ability to work hard when unemployment remains at record levels, when job creation remains at 18,000 net new jobs per month while 14 million are out of work, when the ratio of job applicants to jobs available is nearly 5 to 1 according to the Economic Policy Institute.

In practical terms, there need to be better methods for measuring unemployment that take into account the actual number of people looking for work and available for work, like the underemployed working less than 40 hours per week, new college graduates who cannot find work, the chronically unemployed etc. who are not counted in the current unemployment rate of 9.2%. In the meantime, our society has to rely on economic reports and forecasts to measure whether unemployment benefits support economic stimulus, and whether job creation and unemployment statistics as currently calculated are accurate enough to inform the development of worthwhile social programs.

Public (Government) Finance Works Cited (2010). The case against an unemployment benefits extension: the three main arguments and their rebuttals. Secrets about Unemployment website. Retrieved July 13, 2011 from

Bureau of Labor Statistics. (2011). Employment Situation Summary. BLS web site. Retrieved July 13, 2011 from (2009). Making the case for and against unemployment benefit extension. CNBC Guest Blog. Retrieved July 13, 2011 from

Doyle, A. (2011). Unemployment Extension. website. Retrieved July 13, 2011 from

National Public Radio. (2010). How unemployment benefits stimulate economy. NPR website. Retrieved July 13, 2011 from

PRWeb. (2011). President Obama re-authorizes federal unemployment extension for 2012 due to continuously high unemployment numbers. Retrieved July 13, 2011 from

PRWeb. (2011)b. Unemployment extension: Record high 13.7 million Americans currently collect unemployment as of May 2011. San Francisco Chronicle website. Retrieved July 13, 2011 from

Tracy, B. (2011). Chronic unemployment highest since Great depression. CBS Retrieved July 13, 2011 from

Unemployment Extension: Federal extended… [read more]

Finances Critical Book Reviews "America's Oligarchy" Johnson Book Review

… Finances

Critical Book Reviews

"America's Oligarchy"

Johnson, Simon., & Kwak, James. (2010). The wall street takeover and the next financial Meltdown. New York: Pantheon Books.

Paperback: $15.95

ISBN: 030747660X

Knopf Doubleday Publishing Group

Simon Johnson is one of the most… [read more]

Economic History of America Research Paper

… ¶ … United States Central Bank

The economic history of the United States from the time since the Reconstruction period of the Civil War has certainly varied through epochs of both prosperity and of despair. Analysis of the trends which… [read more]

Fed Raise Interest Rates Research Paper

… Interest Rates

Federal Reserve Interest Rates and Economic Recovery

The recent global economic collapse brought many specific features of the financial world into sharp relief. The role that government policy plays in shaping financial security and long-term stability has been… [read more]

Managerial Economics the Three Articles Analyzed Essay

… Managerial Economics

The three articles analyzed in this paper include the Confucian Consumer: Seven reasons why the Chinese save, when they really should be spending by Nouriel Roubini, Explaining Growth by Douglas Clement, and FDI, Trade, and Product Innovation: Theory… [read more]

Herding in Bank Panics Term Paper

… The researchers noted that "decisions under uncertainty . . . draw upon different neural processes." (Prechter and Parker, nd, p.14) Conclusions stated are reported as follows: "Depending on the circumstances, moods and emotions can play useful as well as disruptive… [read more]

Foreign Aid vs. Economic Growth Dissertation

… The nation specific studies too have not succeeded in the production of conclusive results. The example being the bivariate Granger causality test performed by Dhakal et al. (1996) that involved four Asian nations (India, Nepal, [1: The most up-to-date analysis… [read more]

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