Macro & Microeconomics Essays

Global trade leaders had vowed to uphold free trade principles and rid of themselves the trade protectionism at a summit held in Washington. However, due to the credit crisis hitting the whole world countries are breaking the agreed upon a promise. The main factor leading to the phenomenon is the negatively affected local manufacturers by the imports from foreign countries.

Mexico, a developing country which has embraced economic liberalization and is now a member of NAFTA, has exhibited recent economic gains since joining this regional trade block. With a population of 108.3 million and a GDP of $839 billion, Mexico has benefited tremendously from economic liberalization and market-oriented growth.

The policies adopted by the government of India are quite favorable and encourage foreign investors to establish businesses within the country. Also, its political system is quite stable, a factor that much affects foreign investment in a country – no wonder the United Kingdom has accepted the country as one of its main strategic trading partners.

The decision of outsourcing also results in political overtones in the home country. After a new president took over the establishment in America, there were demands the outsourcing decisions of companies must be reviewed. There were suggestions to the effect that the additional tax burden is put on the companies resorting to such decisions. 

Modigliani and Miller's debt irrelevance proposition holds in perfect markets, where markets are complete, without any imperfections and externalities. In reality, however, capital markets have imperfections and externalities. These provide incentives to firms to borrow, which leads to the three other theories of capital structure.

The case for insufficient demand can be illustrated by the equation (APE < GDP = ASF). The first case is of demand caused recession which reduces the aggregate demand in the economy thus shifting the APE curve to the left direction. Such a reaction can be sparked off in the economy due to higher taxes imposed by a new fiscal policy. 

The paper "Measuring Vietnamese Economic Development" is an outstanding example of macro and microeconomics case study. Economic growth is the measure of how the national income or output or expenditure, usually referred to as Gross Domestic Product (GDP) of a given country increases over time.

As a result of the credit crunch, the UK saw a change in the mortgage market. Mortgages became more expensive. UK Banks continue to face problems too. HBOS (Owner of Halifax) struggled to finance its balance sheet. Like Northern Rock, it financed an expansion of lending by borrowing. Now money markets have frozen up, they couldn’t raise enough money to maintain liquidity. (BBC)

The only possible solution to market failure is laws and regulations, prohibition, taxation and provision of knowledge regarding products. In the OPEC case, the only solution to the cartel problem is the discovery of a substitute, this will create a wider choice and therefore establish a competitive market in the energy industry in the world.

This also provides them a platform for raising their voice against the wrong behavior of the company. But as I have accessed there is no hope for the establishment of unionization in Wal-Mart. I hope that after some time, when new government issues and enforce some strong labor laws, then Wal-Mart unionization can grow for their rights.

Walmart is world-famous for revenue generation and a number of workforces. It has number of stores in almost all parts of America. It also operates stores, but in different names, in some foreign countries like Japan, Brazil, United Kingdom and Argentina. Sam Walton was born in Oklahoma on 29th March 1918. In 1945 he undertook to run a retail store of retail a group namely Ben Franklin.

The investment in agriculture and trading in minerals were the key factors that promoted the European economy which grew rapidly for many years. Africa was the major contributor to the raw materials that were traded as well as labor that was provided by slaves. The largest integrated economy that exists today is attributed to the silver trade.

The selection of the right suppliers is a complex process as a large number of factors need to be evaluated. It is a difficult task to find those vendors who not only have the adequate quality and quantity of the needed raw materials but who also have an attitude of efficiency and display commitment to customer service (Sonmat, 2006).

There would be an increase in earnings which will cause an increase in inflation and thus the expenses that companies will face; by this, the short term aggregate supply curve would take a left shift. The output level as a consequence would go back to the original extent but with prices that are of the maximum level. 

Until September 2008, European policy measures to combat the recession only really existed in a few countries. Many of the bigger economies hadn't done much. Measures were quite limited and mostly focused on tax rebates and trying to fix up the housing sector of the economy which had been devastating to Ireland and Spain for example. 

The increase in the price of domestic goods relative to foreign goods tends to lower net exports by stimulating imports and depressing exports, thereby offsetting the increase in net exports that is directly attributable to the trade restriction. Protectionist policies do however affect the amount of trade that takes place in an open economy. 

The author states that when economist John Maynard Keynes published his book The General Theory of Unemployment, Interest, and Money in 1936 which challenged the classical norms of economics, he opened the door to a new economic theory called macroeconomics. Thus, the study of economics has formally divided itself into two broad fields.

In order to come out of the vortex of the subprime mortgage lending crisis, the U.S. government has taken some fiscal measures. These measures include providing low-interest debts to banks for short term loans, loan modification processes such as providing benefits for avoiding foreclosure and providing alternatives to various investments so that the losses come down to the minimum.

International trade theory provides a very comprehensive framework about how and why international trade takes place between countries. Theories of international trade, therefore, are as old as the beginning of economics on the more modern footings. However, the question remains as to why the nations engage in international trade?

It is necessary to investigate the components of the work in the service industry and to further our understanding of how the same happens. I will provide a definition of the service industry, describe what it comprises of, and depict the benefits as well as drawbacks of being employed in the service sector.

The author states that the modern world is full of ambiguity. Given the current turmoil in the global markets, firms have to be very careful in their decision-making process giving importance to the macroeconomic events happening in the outside world. This can be achieved only through the integration of theories of economics with business practices.

The paper "The Effect of Unemployment, Rate of Unemployment in Australia" is a perfect example of a macro and microeconomics assignment. Unemployment is defined as the situation that arises when a person who is actively looking for work, and who is available to take a job remains without work (Australian Bureau of Statistics 2007).

Following the two great wars, Britain’s existence as the prime colonial power and its global dominance met its end. On the other hand, apart from America, all other developed nations suffered the atrocities of the Second World War. This combined with the formation of the Bretton Woods system promoted the US as the leading nation of the world.

We will describe the loss aversion bias which is a component of emotional bias. This bias was observed in individuals who have a stronger impulse to avoid losses than to acquire gains. It stops people from removing unprofitable investments from their portfolio even if they foresee no chance of a turnaround.

The paper "Conceptualization of Values in Economics " is a great example of macro and macroeconomics coursework.

As China's economy grows in leaps and bounds, many firms are making big profits that they are using to power up and expand their businesses. These even include some of the state-owned monopolies such as China Mobile. The force of the country's profit-driven investment boom is making it harder for the central government to slow down the economy.  

In 1998, the National Standards for Criteria Air Pollutants was formally organized (Environmental Protection and Heritage Council 2008). The organizational members in collaboration with government and non-government organizations instituted environmental policies. A scientifically acceptable scale of pollution emission was formulated.

Type II organizations mentioned in this paper should understand that unethical practices can not be the solution for problems in business in the long term. Organizations should not wait to be governed by ethical codes and rules instead have high moral and ethical values themselves and should have an honest interest in serving its stakeholders. 

Gross Domestic Product (GDP) is the total market value of the final products produced and the services offered by a country in a given set of periods. This value is equal to the total of the spending by the consumer, investors and the government added with the value of the products and services exported after deducting the total value of imports.

The efforts of the working class in a society must be rewarded once these human beings reached their golden years. The creation of social security in 1935 was a great idea that ensured that the elderly and disabled would have a guaranteed income stream for retirement in order to cover their living expenses.

The paper "Emerging Market Economy - India’s Industrial Structure " is an outstanding example of a macro and microeconomics case study. OECD breakdown of the patterns of trade and growth in six of the biggest non-OECD economies, which are: Brazil, Russia, India, Indonesia, China and South Africa, BRIICS shows that countries, as well as sectors that have largely opened, benefited the most in terms of growth.

The paper "Analysis of Malaysian Economy" is a great example of macro and microeconomics case study. The chosen emerging economy for this assignment is Malaysia. Malaysia is among the best emerging economies in the world. Its economic growth rate is because of the policies the government has put in place to ensure a good relationship with trading partners.

The paper "Distortions to Multinational Firm Organization" is a great example of a Macro and Microeconomics Case Study. When one is selling goods or products online it is important to know whether you do it as a source of income or as a hobby. If it is a hobby then it is not taxable while when it is a source of income, then it is taxable (Grounds 2003). 

International trade has enabled countries to develop, this is demonstrated by the mercantile school of thought, and they argued that developed countries developed as a result of foreign trade, these countries put much weight on retaining and acquiring gold. They considered foreign trade as the only source of gold. 

The paper "How Oil Prices Affect Economy" is a perfect example of a Macro and Microeconomics Assignment. In later 2014, the sudden decline in the prices of crude oil marked an end to four years of stable prices, which had been pegged at around $105 per barrel. The fall in prices was far greater than the non-oil commodity price indices of 2011 (Bjornland & Thorsrud 2014).    

Real estate economics is the utilization of economic performances in real estate markets. This economics tries to explain, describe and predict patterns of supply, demand, and prices. The closely related housing economics field is a narrow scope which concentrates on residential real estate markets while the research of real estate trends mainly focus on the structural and business changes impacting the housing industry.

If one needs to buy a good, he or she will have to buy it from the monopoly firm. In addition, the output demand produced by the monopoly firm becomes the market demand thus taking control of the market (Tucker 227). Being that monopoly is the market controller, it doesn’t equate price with marginal cost and, therefore, it cannot allocate resources.

Storms are natural disasters which have no particular time or do not come with a warning (Elisabeth M. Benders-Hyde, 2003). These generally lead to irreparable damage along with augmenting the death toll (Whipple & Addison, 1982). When it comes to the economic impact of the storms on building that is the infrastructure we see that it not only is the reason for troubles in commuting of people but also the businesses suffer a setback.

Over the recent past, directors’ packages have risen dramatically relative to corporate profitability or the average worker in the UK economy (Thomas & Hill, 2012 p. 330). On the other hand, some analysts assert that high compensation packages are justified since they attract and retain talented directors. Additionally, high packages encourage risk-taking in corporate strategy thus leading to more profitability and competitiveness in the industry.

A clear-cut division of labor within the international development system is required. The EU should be allowed a larger role and the developing countries should be allowed to voice their opinions and suggestions. The Bretton Woods Institution recommends the weight of the developing countries should be strengthened at the IMF and the World Bank.

The theories of economics have also been developed consistently to view that the welfare of the coming future generations has to be weighted as equally and important as the welfare of the existing generation. Children being born today have as much the right to have the same opportunities, if not better, as today’s generation has.

The author states that Goldman Sachs in its report predicted that India would become the third-largest economy by 2035 based on a predicted growth rate of 5.3 to 6.1%. With 54% of the 1.1billion population in the age group of 15 - 35 years, India has one of the youngest working populations in the world.

The plan to reduce borrowing while significantly promoting the reduction of the prevalent structural deficits was firmly pegged on the cuts to public spending, which aimed to reduce the annual spending of national income from 47.4% to 39.3 % by the end of the sixth year starting from 2010 (Walayaat, 2010).

The paper "Command Economy and Free Market Economy" is a perfect example of a macro and microeconomics assignment. The two extremes of economy type are the command economy and the free-market economy. Different countries have different factors that make each of the two economy extremes suitable and applicable in their unique context.

The paper “Comparison between the Cost of Consumer Goods in Australia, the US, and the UK“ is an informative variant of a statistics project on macro & microeconomics. The first task will present a basket of goods needed to calculate an index for comparing the purchasing power in Australia, the US, and the UK.

Many proponents have indulged in research and studies about standardization in the past. However, as a wide field, more research is needed to facilitate the understanding of standardization. In the contemporary world, standardization has developed to become a very fundamental element that determines the development of numerous activities.

In explaining the difficulty in showing a correlation between purchasing power parity and real exchange rates in the long run, Whitt (1992) points out the views of several experts such as Sims (1998) and Dickey-Fuller (1979) who are of the view that tests used in existing empirical work on real exchange rates are fundamentally flawed because they are based on unit-roots.

An understanding of the relationship between institutions and their assistance to economic growth has major inference. For instance, institutions and social capital that result in the diminution of transactions costs and enlarged effectiveness will lead to the expansion of economic actions and an outward shift of the “Economic Activity Frontier”.

In U.K infant mortality and life expectancy are worse. In work place they are offering benefits for a shorter duration. The minimum wage is also quite low than average wage. These inefficiencies have risen the unemployment rates in U.K although in other advanced countries unemployment is comparatively higher. 

In general, the paper "Impact of Foreign Investment on China’s Economy " is a great example of macro and microeconomics case study. China is evidently one of the fast-developing economies globally. This seeming economic growth is attributed to the growing foreign investments that are being made in China.