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How to Use Economic Analysis in Your Economic Essay

economic analysis essayJust like any other essay, the economic essay writing process starts with understanding the question. Make sure you are fully aware of the essential point that stands behind essay question. If necessary, feel free to break the question down into smaller and simpler version.

Then, in the process of pre-research and essay writing, make sure to keep reminding the question in order to come up with the most suitable answer. It’s not a rare thing that a lot of students start the project confidently and always stick to the point, but as they approach the end, they seem to forget what it all is about. Remember, once you lose your essential question, you will most likely get a low mark.

Use Economic Analysis

When the matter concerns economic essay, your tutor will most likely require you to use economic analysis to complete the project. What is it about? First of all, economic analysis is the application of various data to the theory of how individuals provide trade as well as make use of services and products.

In the economic essay, it is recommended to use both quantitative and qualitative tools. For instance, once you are provided with a theoretical material on the basic causes of unemployment, you can take the data in order to reveal its true causes, as well as compare them to original theory. Bear in mind that economic analysis used in the essay can be colored greatly by the preconceived notions of the author, to the point in what some of the data is under- or overemphasized in order to prove and support one’s viewpoint. On the other hand, economic analysis within the economic essay is highly crucial if the author wants to find the very truth regarding what makes economy properly work.

Even if you think that economic essay is considered a highly complicated and serious project, make sure to write it in simple sentences. Don’t combine too many ideas and terms within one sentence. The other thing is to always answer the essay question. A lot of students seem to have efficient knowledge of economics, but when it’s all about the essay writing, they fail to answer the main question. As a result, they get no points for the question. It’s not fair, you may say, but once there is no answer – there is no mark.

When reaching the end of the paragraph, ask yourself – how does the paragraph add to the answer? If required, provide just one-sentence summary that gives a direct answer to the question. There’s no need to wait till the last word of the paper to realize you dealt with the wrong question. Whether you make use of economic analysis to deal with the use of scarce recourses, some monetary terms or any other aspects, ensure to use a variety of information sources to support your statements and make sure your essay reflects the reality.

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Sample Essay on the Economy of India: Current Threats

essay on economy on indiaEven if it sounds somewhat cruel, the current state of the Indian economy is pretty similar to the one of a sinking ship. The never-ending rupee fall is one of the most significant signs of an economy that is simply going down. Both – local and foreign experts are skeptical about the rupee bottom price, as well as about the Indian government’s incapability to restore confidence among the foreign investors.

The Finance Minister and the Prime Minister – all together they exert every effort in order to prevent the economy from going from bad to even worse. So, what are the biggest threats that India’s economy is faced with and that need to be worked out?

Credible Fiscal Policy

The increasing fiscal deficit that is caused by the disbalance between the government’s expenditure and revenue is a serious threat. The figure of the fiscal deficit has shot up from the level of 3,5% in 2008 to 5,8% in 2012. Experts recommend that all wages and subsidies expenditures must be minimized as well as directed at heath care, education and infrastructure fields.

Providing a Great Number of People with Food

In case the Food Security Bill is out there in the country, it will definitely add to the problem of exchequer. According to it, the government of India is going to provide a bunch of people with grains that are purchased at the sky high prices set within the market. Even though the government representatives try really hard to bring down the percent of the fiscal deficit, sticking to the current plan it all looks like a dream that is not going to become reality.

Low % of Skilled Population

Even though more than 13 billion people join the workforce of the country every year, 20% of them can boast of having some good skills. Highly proficient individuals are required to create new business segments that help to develop India. The government of the country has to take a range of measures in order to educate people and finally turn them into experienced and qualified segments of economy.

Black Money and Fraud

There’s a well-known fact that foreign banks have lots of black money coming from India. The sad fact about it is that it costs really a lot to the Indian economy. The specialists of the Global Financial Integrity have stated that at the moment India is at the eighth position among the world nations to deal with the most illegal finances. All the funds that are considered black money act like the aspect that weakens the whole segment of Indian economy. Some of the banks that represent the large international private sector do not even try to work in accordance with the range of regulations and restrictions set by the central banks. What is more, they cash in huge sums of black money in various assets like gold. This in turn has an enormous effect on the economy of the country.

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First-rate Microeconomics Topics for Research Papers

microeconomics research topicsA lot of students sometimes find it hard to tell the difference between microeconomics and macroeconomics. So, make sure you know one. To cut the long story short, the difference is that microeconomics is focused on supply and demand, as well as the markets where individuals buy or sell goods. If the task is to choose the right topic for the research paper in microeconomics, make sure to consider the ones discussed below.

Supply and Demand

It’s not a bad idea to talk about supply and demand, as well as how these issues influence the market prices. Besides, you can discuss how fluctuating markets can affect people. Describe various aspects that are related to the supply and demand matter, such as seasonal changes, the market of labour and manufacturing costs. These issues will help you to provide your reader with a clear overview of the current situation in the supply and demand segment.

Structures of the Market

It’s good to perform detailed research of various market structures, such as cartels, monopolies, oligopolies and many more. Talk about in what way they can influence the prices of various items. The topic is pretty popular since it gives you an opportunity to work with the latest statistical data in order to draw solid conclusions.

Labor Market

Research paper will definitely get some extra scores due to the wining topic. Discuss how labor market can affect supply and demand, talk about labor unions and how they influence the market. Research all possible effects of boycotts and strikes for the labor markets globally. The topic is quite simple to work on; however, it provides you with a clear view on the labor market changes and its causes that is useful information for you, as a potential job seeker.

Pricing Effect

Use your research paper to talk about how pricing affects purchasing trends of various individual households. Combine supply and demand, the labor market and the structure of the market and see how altogether they affect the pricing matter. Consider also the effects that advertising has on the number of people, who would like to pay for this or that item.

The World Banks

Ponder over the role of the banks within the market and in what manner the increasing debts and credits can affect the pricing, spending of any individual. Think about the students’ loan as well as how the global banks can manage them and in what way they can affect the spending of every individual.

Health Care

It is highly recommended to conduct a research on the impact that a lot of health care systems have on the households and individuals. The research paper project is a great chance for the author to ponder over the pros and cons of the health care systems that are controlled by the government, as well as the ones that are privatized. By means of your research, you have a chance to reveal some truly important problems in modern society in what is related to the health care segment.

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Sample Essay on the Present State of Global Banks

global banksNowadays, the sovereign and financial debt crises have strongly shaken the global banking industry. Due to the world problems, the global banks went from the period of relative calm and wealth to the indecision that requires certain measures to be taken. As the shock is slowly wearing off and the global industry adapts, some of the most crucial themes are popping up here and there and will most likely affect the models of international banking for the next several decades.

Globalism versus Nationalism: Global Banking Limits

A range of new economic challenges will definitely make a lot of countries adopt some of the approaches of the protectionist trade. This turn will influence the banking ability to enter, as well as exit, markets and constrain various ownership structures and funds repatriation.

State Capitalism or Meet the New Force in the Area of International Banking

Taking into account the fact that the exact architecture of global regulation is still in progress, the involvement of the country in both – everyday operation of the bank industry and its structure – is growing inevitably. In spite of all the barriers that new regulation brings, this shift is going to also develop new business models as the governments with scarce resources welcome solid partnerships with institutions that possess operational and capital skills, and can generate fresh ideas.

Trade Flows: Instability and Opportunity

Since the majority of trade segments take place within regions, international banking will require to accurately leverage the expertise of the most trusted regional partners. Working in accordance with this scheme, the most successful international banks will also be known for the top-notch standards in the nearest future.

More Urban Generation in the World Demographics

It’s a well-known fact that in the nearest future demographics will be the drive force of the banking field. According to the most recent forecasts, global inhabitants are going to surpass eight billion soon – a population that will turn to be ever more elderly. And the new models of banking business will have to serve this aging.

Clients Relationship Will Be More Trusted and Personal 

Customers seem to take more control of the relationships built in the banking business field than ever. And experts say that this trend is going to become more and more popular. For instance, by 2030, the representatives of the business segment will deepen their personal connections with the clients with the help of special data analysis technique that will boost today’s’ standards. Taking a look from the outside we will most likely see the business model for a dingle world bank that is represented like hundreds of small banks with incomparable customer approaches and supreme quality products.

Energy Production to Challenge the Old Order

Various environmental and political factors that are related to the area of energy production, in a combination with the new modern technology, will need brand-new financial products. The latter will definitely take in fundraising and financing support for the grandiose projects in the energy field.

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Supply and Demand Disequilibrium Essay

balance of paymentsBefore we delve deeper into the details of supply and demand disequilibrium, it’s necessary to clarify what the market disequilibrium actually is. What we are discussing is the market state that occurs when the supply and demand opposing market forces achieve the balances and there’s an evident tendency for the further change. In other words, market disequilibrium is a direct result of state when the market isn’t well-balanced. To be clearer, market disequilibrium is the result of the market situation, when the supply price isn’t equal to that of the demand and the quality level that is supplied isn’t equal to the quality that is demanded.

Generally, supply and demand disequilibrium happens when there’s an imbalance of the opposing forces. When it comes down to the market disequilibrium, the imbalanced opposing forces are supply and demand. Once these two forces are out of balance, a surplus or a shortage occurs, which brings on the price changes. Both – a shortage or a surplus – exist because of the inequality between the quantity that is supplied and the quantity that is demanded.

To speak of a shortage, it usually occurs when the quantity that is demanded at the moment exceeds the supplied quantity. The state described before exists in case the market price is lower than the equilibrium one. In such case, buyers have no opportunity to buy the sufficient amount of goods at the currently set price. Some consumers will definitely find the increase of the price too hard to bear. This, in turn, will make them no longer demand a particular service or product. In the meantime, the increased quantity of available service or product will be pretty satisfying for the other buyers. In the long run, the desired equilibrium will be successfully reached.

As for the surplus matter, it comes about when the supplied quantity exceeds the quantity that is currently demanded at a particular price. This condition occurs within the market if its price is above the equilibrium price. The situation is that the sellers are deprived of the opportunity to sell the desired amount of products at the current price. That is why they tend to lower the price. In response to the lower price, the buyers tend to increase the quantity demanded, which moves the market toward the quantity and price equilibrium. If this happens, excessive supply lies heavy on the downward pressure on the product price.

Market disequilibrium emerges with a shortage or a surplus for the reason that the price always changes. The very inequality between the quantity supplied and the demanded quantity incites the price changes. A shortage causes the price rise, while a surplus causes the drop of prices.

It is worth considering that shortage and surplus in supply usually have an extensive impact on the specific service or good price, as well as the overall quantity eventually sold. Various moves in the supply availability cause disequilibrium between the demands and supply levels that prevail nowadays.

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Meet the World’s Worst Economic Policies

On the one hand, “something new” is always a good idea, but all those worst economic ideas that are being applied all over the globe can make any ship go down sooner or later.

Obama Era: the Workforce of the Public Sector Must Be Cut

While almost every small government conservative considers Barak Obama a real savior of the public sector jobs, the reality is actually next to opposite. According to the latest investigations, during the recovery the public workforce has gone down to the 600 000 level – the activities that have never been experienced before. The gap in the area of public sector jobs (the difference between the actual situation within the public sector employment and how the things would go if it had grown together with the growth of the population) is almost 1.5 million. Public spending cut will bring unprecedented consequences that will result in tons of missing paychecks.

Venezuela: Disastrous Foreign Currency Control

Chávez’s government imposed the foreign currency control, fearing that the instability of Venezuela may cause a significant capital flight. Besides, its members also wanted to control the movement of people. From the time, the citizens have had to approach the government leaders to get dollars, or, as an alternative, exchange them in the so-called “parallel market”. The currency price within the “parallel market” is free to rise and fall depending on the market forces. These actions have led to the situation, when the foreign currency – US dollar – has two prices that are absolutely different. The official or legal price is the lower one, while the second price or the parallel one shows the actual value of the currency. Venezuela absurd policies led to the truly disastrous results for the country’s economy. Who knows, maybe the cancer that has struck the national leader, will bring some kind of relief to the country?

Worst Performing Economy: Macau Wins

If you consider Ukraine or Greece’s economies leave a lot to be desired, the world gambling oasis – Chinese Macau – is in the worse shape than those countries ever been into. By means of his anti-corruption campaign, president Xi Jinping has hammered the VIP gaming in the region.  The campaign organized by the president has caused a real plunge in the gaming revenue. The latter slumped 39% in April 2015 that is an 11th straight turn down.

Ukraine: the Worst Is Yet to Come

Although the country can boast of having rich mineral and farmland resources, and it could easily get the status of a leading economy within the EU, the reality is pretty gloomy.  The per-capita GDP position is set far behind such countries as Bulgaria and Serbia. Who’s the one to blame? Poor corporate governance, corruption, as well as weak contract law enforcement by courts.

To cut the long story, economic profession is a unique opportunity to upgrade the economy level of the country. However, for some political leaders it is a chance to produce and apply some zombie ideas that will lead the country directly into crisis.

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Selecting the Right Risk Management Tool

business coachingRisk management is a highly complicated field of study, of necessity dealing with numerous factors, probabilities and variables. As a result, defining even an individual risk may be a very difficult task, further complicated by the fact that risks may be measured in a wide variety of ‘units’ (such as monetary costs, time, reputation, etc.) and that it is hardly possible to define in what ways different risks influence the probability of each other and how their overall possibility should be calculated.

Risk management tools exist for the sole purpose of alleviating the task of planners by creating some system, illustrated by metrics, parameters, priorities and suchlike that allows them to make some sense of this vastly contradictory, fluctuating and ambiguous set of factors.

When selecting the right tool for a particular organization it is important to study the company’s risk analysis and management process, define what is important for it, what its goals are, and then ask oneself some questions concerning how well this or that tool correlates with the declared task. Does the company intend to carry out a separate risk analysis or to organize an ongoing risk management process? Can the tool in question provide all the information necessary for the company? Does it provide the necessary level of detail? Can it be aligned with other project management tools?

While there is hardly such a thing as a tool that would be universally ideal for any company, there are still requirements that any serious tool should meet. First of all, it should support the four basic stages of risk management.

Firstly, risk identification – meaning that it should help define probable risks and the way they relate to each other.

Secondly, the assessment of risk impact – meaning that it should provide estimates of probability of particular events happening and the severity of their impact.

Thirdly, risk prioritization – meaning the tool should help define which risks are more crucial and which are less, and grade them according to the degree of severity.

Fourthly, planning of risk mitigation and ongoing monitoring – meaning that the more severe risks should be analyzed for the ways of their mitigation, less severe ones – tracked lest they grow in importance.

A full-fledged risk management tool should incorporate all these stages to be truly effective. However, when choosing a tool, an organization should keep in mind that it has to be in accordance with the organization’s nature, size and degree of complexity. For a small company it may be enough to run a risk analysis from time to time. For a large multinational corporation dealing with innumerable variables influencing its activities, risk assessment, analysis and management should turn into an ongoing process integrated into the workings of the organization, for in this case we deal with a much more complex entity in which things can go wrong in innumerable different ways.

One, however, should remember that risk management matters irrespectively of the organization’s size. With the world steadily growing more complicated and volatile, no business is simple enough to ignore analyzing its possible weaknesses.

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Essay on Economic Benefits of Outsourcing

human resource outsourcingThe idea of contracting some business processes of a company to a third party isn’t a new one, but the technology allowing to make this practice viable and widespread wasn’t around until quite recently. About a decade or two ago outsourcing was one of the most important and widely used buzzword in business – and albeit today it isn’t as hot a topic as then, it still remains an incredibly important factor in global economy.

Although the changing economic situation has recently forced a number of businesses to drift back to perform most tasks within the parent company, there are still a number of notable benefits to outsourcing no one can deny.

1. Cost Effectiveness

The most self-evident reason to outsource is to save money. And the most self-evident way to do so is to contract some activity out to a country with lower average wages than where you live. The latter was especially popular for the last several decades, to the point that some nations such as India have become favorite outsourcing destinations for the entire Western world. Lower wages doesn’t necessarily mean lower quality – there are thousands of well-educated specialists in Asia and South America who would be eager to work for half as much as such a job would cost in the USA.

2. Time Zone Benefits

If you live in America it may be a good idea to outsource some activities to the Old World, and vice versa. The reason? Difference in time zones means that your outsourcers will toil while you sleep without asking extra for working odd hours and you will be presented with the results of their work first thing in the morning. It is a viable idea for hiring customer support this way as well, at least if you don’t mind their not always very good English.

3. Infrastructure and Technology Savings

One may contract some activity out to another company or business that specializes in rendering particular services and is well-equipped for this, thus freeing oneself from the necessity of purchasing specialized equipment.

4. Personnel Recruiting and Training Savings

Outsourcing allows you to maximize the benefits of one of the core principles of economy – specialization. It gives you an opportunity to avoid hiring experts or training your current employees to perform activities that are secondary to your business by hiring another company that is already well-equipped for dealing with this assignment.

5. Concentration on Core Activities

Outsourcing allows you not only to avoid extra costs, but to keep your business smaller and more manageable without sacrificing its overall output. You keep only those employees that perform functions that belong to the core activities of your company without having to support many additional departments.

Of course, outsourcing is not a magical cure-all for all economic problems of a business. Nor is it without drawbacks – but still, there are many situations in which cleverly organized outsourcing may mean the difference between a business that is manageable, profitable and developing and a business that is overcomplicated, middling and stagnant.

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Essay Topics on Economic History

time and historyEconomic history is a vast and complicated discipline; and it is only natural that when you get an opportunity to choose a topic to write an essay on you may feel overwhelmed. It is a common misconception that freedom of choice makes such job easier; it doesn’t. It certainly makes the things much more interesting, but there is something deeply comforting about having a topic defined for you.

When choosing a topic for your essay, you can make use of the dubious nature of the discipline itself. After all, neither historians nor economists have a very clear idea of what, when all is said and done, economic history is (at least they tend to offer extensive explanations with numerous minute details, contradicting and opposing each other more often than not). What is economic history? The study of how economies performed in the past? The study of economic aspects of past societies? The history of the ways resources, labor and capital tended to be used? Take your pick, research the matter, offer your own opinion – write an essay.

Or you may take a diametrically opposite approach, and instead of generalizing your topic narrow it down as much as possible. Take some historical event or phenomenon and study in which ways it influenced local and global economy. Let’s for example, take slavery in America – it alone offers dozens of possible takes and approaches. What were the economic reasons for slavery? In what ways did the influx of African slaves impact American economy? How did the resulting Atlantic triangular trade influence the global economy? What lead to the abolition of slavery – purely altruistic motives or was it based on changing economic situation? What were the economic results of abolition of slavery? It is just a tip of just one iceberg, showing that virtually anything in history is at least partially caused by economic reasons or has long-lasting economic implications.

Another approach worth mentioning is a study of the history of a particular phenomenon throughout the entirety of its existence. For example, child labor in industrial era – you may study the economic reasons for its emergence, in what forms it existed, when and why it was prohibited.

For those who like to analyze and draw conclusions there is always the parallel approach – study an event or phenomenon in economic history and draw parallels with something that happens in the world now. For example, if you don’t shy away from controversial topics, you may compare modern war on drugs with Prohibition and its results. Both of them set the goal of eliminating or at least curtailing some kind of activity, and both seem to show little to no intended effect, instead creating fertile ground for criminal organizations – perhaps some conclusions are in order?

The fact that economic history is grounded in the past opens up an enormous venue for research, experimentation and creativity (however weird the word ‘creativity’ may sound in the same sentence with ‘economic history’). Just try to avoid the most commonplace and trite topics that spring to mind, and you will find what you need.

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Supply and Demand Essay: Law Basics

In order to make the economy properly function, the producers are required to supply all goods that are required by the consumers. This is what they call the supply and demand law. When the matter concerns “supply”, it is related to the overall amount of goods that can be produced within the market. At the same time, “demand” is usually related to the amount of goods that the consumers want to purchase. Being combined these elements form the most important principle of the economic theory.

When one is aware of the supply and demand law, it is easier to get an idea of how the goods’ prices are set within the market. As a rule, the process if started the very moment the consumers require some goods. In case the demand is high, the producers have an opportunity charge high prices for the items they sell. Ability to earn huge sums of money makes the producers provide goods in order to meet the consumers’ demands. But according to the law of demand, in case the prices are sky high, only a small amount of consumers will ever buy the goods. This means that the demand will soon get unmet. In order to comply with the demand, the producers are required to set a price that will lead to the desired amount of sales, as well as personal profits.

The very moment that supply is getting absolutely balanced with demand, the market reaches equilibrium. At this point, all the resources are usually used at the maximum efficiency. In general, it’s not a mistake to state that the whole study of economics is mainly related to how the market economies can reach the desired equilibrium. That is why a economists from all parts of the globe spend a lot of time and efforts analyzing the aspects of relationship between supply and demand.

The law of supply and demand provides us with the explanations regarding why the individuals take these or those actions in a market economy. Moreover, it can also be used in order to predict certain economic outcomes. The producers, who wish to set the highest prices for their goods, make use of inventory management protocols and spend a lot of funds on advertising in order to encourage their potential clients to purchase their products. All the consumers, who tend to value a low price over the product quality shop at various discount shops, while the ones who give preference to popularity over the price buy goods from the retail shops at the market height.

To sum up, it is important to mention that the law of supply and demand is not just limited to the goods’ sales. It is also successfully applied when one needs to provide explanations for almost every economic phenomenon. Thus, the law of supply and demand is not only crucial for the economic theory as a whole, but it serves as a basis for the economics itself.

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