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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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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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Surprising & Mind-Blowing Facts You Don’t Know about Greece Economy

It seems like the whole world is waiting for Greece and EU leaders to come to an agreement on the bailout deal. Every single day the land of Zeus has to stand against its European creditors in a severe battle. And meanwhile, we have generated a short list of several facts about the Greek economy that may surprise everyone. Make sure to check it out.

Fact 1. Greece’s First Default Occurred in the 4th Century B.C.

It looks like the country has always been into various financial troubles. For instance, in the 4th century B.C., 13 city-states of the Apollo’s motherland borrowed from the Delos Temple. But the thing is that the majority of the borrowers never made good on the loans and the Delos Temple took almost 80% loss on its principal.

Fact 2. Greece Spent 90 Years in Financial Crisis

In 1830 Greece finally gained its independence from the Ottoman Empire. 196 years have passed since that glorious moment, but the fact is that 90 years out of independent ones the country has spent in a deep financial crisis.

Fact 3. 49.7% of Youth in Greece is Jobless

According to the research performed last year, the unemployment rate of young active population in Greece reached 56. 4%. In general, unemployment rate of the country was solidly at 25.6% for March. Thus, it hit the all-time high level of 28% in 2013.

Fact 4. 63.5% of Young People in Greece at the Age of 18-34 Live with Their

Parents

More than 50% of those between the ages of 18-34 live with mom and dad. Since 2010, these numbers have seriously gone up. The thing is that moving out of the parents’ house is a sort of a luxury. In Greece, moving back in with your mom and dad is a loud cry for help. That’s how the things are going in Ellada.

Fact 5. Greeks Like Bribes Just Like Pakistanis and Nigerians Do

As Transparency International informed, 18% of Greece households paid bribes during the last year, while an average bribe paying level in Europe reaches 5%. Due to that number, the country of Olympic games is on par with Pakistan and Nigeria.

Fact 6. The Revenues of Tourism Export Have Gone Down 28% Since 2000

When the question is about the growth of Greece’s economy, there’s an inevitable emphasis on the area of tourism. However, in the last decade tourism has been in a sharp decline. According to the customs data, tourism revenue was €10 bn. In 2010, it fell to €9.6 bn that was a 4.5% drop. But in case we take into account the inflation, the revenues from tourism have gone down to 28% since 2000, reflecting the tourism industry structural flaws that relate to getting more and more travelers that spend less money.

Even though Greece has joined the EU, it was Europe that moved on and Greece was simply left far behind the rest of the Europe.

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Economic Idioms: Make Your Language Richer

Remember good old ABBA singing about money and how important it is for us? It’s not the only case, when pennies are mentioned in the English language. A great way to demonstrate your fluency in the language is to use idiomatic expressions when talking about the ‘ka-ching’. Make sure to read on to learn some of the most popular and useful idioms based on money, in particular on having and not having one.

‘To Pay Through the Nose’ is an expression used to describe the moment, when you’re required to pay a really high price for something. Some language experts tend to say that this expression came into our routine from the Vikings times, when they slit the noses of anyone in the conquered city unwilling to pay their taxes.

The proverb ‘In for a Penny, In for a Pound’ would be a big help in case you start something that you may also finish, even if you will have to exert more efforts than you thought you would. As for the original meaning of the expression, it was that if the punishment was the same, an individual would commit the offence that guarantees the greatest profit.

When you decide to buy a brand new car and all you’re going to have in your wallet is a huge hole, it means that you will most likely ‘Break the Bank’. When using this expression, you’re letting people know you’re left without money and your life is literally financially ruined. But that’s just half the trouble. The bad buy demonstrates that you actually ‘Have More Money than Sense’ or, speaking simply, you’re just being foolish with your finds and your abilities to manage them properly leaves a lot to be desired.

If you feel like buying a shiny-toy car is far beyond your financial limits, it’s time for the ‘penny-pinching’, i.e. saving money in order to carry the back as reasonably as possible. But in case things are going even worse and not only do you not have money, but you have also lost your job, it’s the time when you are ‘Down and Out’. In other words, financial and emotional difficulties are just around the corner!

And finally, it’s good to know that even though we live in a material world, ‘the Best Things in Life Are Free’. In other words, money isn’t everything and all the intellectual values like love, friendship and health can’t be purchased.

English language is full of hilarious expressions and slang word combinations that at some point one may find pretty daunting. The hardest part of it is that many of them are idiomatic, meaning they are used to add certain emphasis on whatever is described. The best way to keep them in mind is to have as much contact with the English language as possible. Media, books and TV shows – choose your own way to memorize the idiomatic expressions to make use of them in everyday life.

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Inflation Essay: Methods to Control Inflation

At first, let us give a simple explanation to the phenomenon called ‘inflation’. In short, inflation occurs when the economy is growing due to the increased spending. In case it ever happens, the prices are getting higher and the currency is worth less that usually. This leads to the fact that the currency can buy less than it would before. When this or that country faces with the inflation, the government is required to take a range of actions to stabilize the economy of the land. There is a number of methods that once applied can help the government of the country keep the inflation under control.

– The Control of the Wages

In case the phenomenon is caused by the wage inflation, then the representatives of the government may limit the wage growth. This can help moderate inflation. This kind of actions can help to reduce the cost push inflation as well as balance the demand pull inflation. But the problem is that it may be quite difficult to keep the inflation under control through income policies, especially when the question is about the powerful unions.

– Monetarism

Through monetarism the government of the country can control inflation as well. The representatives of this area tend to think that there is a solid connection between the inflation and the money supply. In case you’re able to keep the money supply growth under control, then you should be able to keep inflation under it as well. The monetarists would point out the policies like control of funds being created by the country’s government; tightening monetary policy and deflationary fiscal policy. But the truth is that the actual connection between the inflation and money supply is not as strong as monetarists tend to believe.

– Side Policies Supply

More often than not, inflation is caused by the constant uncompetitiveness and rising costs. Through the side policies supply one can enable the economy to get more competitive as well as properly moderate all the pressures related to the inflation. Let’s say, the labour markets that are more flexible can help to reduce the pressure caused by the phenomenon. Nonetheless, the side policies supply can take a long period of time and, what is more, is cannot deal with the inflation that is the result of the rising demand.

To cut the long story, the process of controlling inflation is an integral part of the economic activities of any country. Keeping it under control is crucial for the reason that an as unrestrained increase of the prices can lead to the hyperinflation, as well as deflation (excessive fall of the prices). Both of the situations are absolutely unhealthy for the economy, as well as development, of the land and for the overall growth of it.

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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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Sample Essay on Supply and Demand

When we discuss the subject of economics, terms such as supply, demand, and equilibrium price are often mentioned. It is also common to see graphs which contain the supply and demand curve. We might ask, why are these terms so important when discussing economics? The answer is because these terms are the key components in the subject of economics. Therefore, before we can fully understand economics we must first understand the terms and how they are related. (more…)

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World Trade and Economics Essay

The world trade organization has played a significant role in governing the smooth functioning of trade worldwide. The GATT (General Agreement on Tariffs and Trade) and the TBT (technical barriers to Trade) have both helped standardize global trade. Let us analyze the consequences of NAFTA and its impact on the American economy.

The NAFTA and the economic impact on U.S

The NAFTA (North American Free Trade Agreement) is an extensive trade liberalization pact between America, Canada and Mexico, the three North American nations. This agreement, which began in January 1st, 1994, and ends on January 1st, 2008 was aimed primarily at reducing the trade barriers and to facilitate trade cooperation between these nations. Particularly the agricultural sector has benefited immensely from this pact as it allows a stable product and price situation for all commodities irrespective of any accidental and adverse natural conditions. Other than this the United States has free trade agreements with Israel and Jordan. This free trade pact has had a positive impact on US trade performance and economy as a whole.

During the first 5 years of the NAFTA the U.S exports to Canada and Mexico rose steadily averaging an annual growth of 11 percent. The total import and export between the U.S, Canada and Mexico has increased from $293 million in 1993 to $505 million in 1998. This amounts to an increase of over $200 million, which indicates a significant growth in trade. There has been a rapid surge in the U.S exports (to NAFTA nations) since 1993. In 1998 the export of manufactured goods stood at 66%, which is a huge growth, when compared with U.S exports to the rest of the world (47%) at the same period of time. Apparently it is the U.S textile industry, which has been the most benefited from this pact. In 1998 the textile exports to Canada and Mexico stood at $8 billion, which indicates a doubling in exports. The GDP grew by 4.2% in 1999 continuing in the same vein as in 1998 when it was 4.4%. So we see that there is a consistent growth in the American economy after the NAFTA pact was signed.

NAFTA and Employment

It can be seen that the NAFTA pact has helped increase the employment opportunities within the United States. This can be asserted by the fact that before the implementation of NAFTA there was a decrease in the US manufacturing employment of up to 1.3 million (6.8%). Ever since NAFTA was signed there was an addition of 40,0000 jobs in the manufacturing sector. During the period of 1993 to 1998 the hourly and weekly earnings have increased by 5.7% and 6% respectively. According to Delta Woodside Industries Inc, South Carolina,” Due to provisions implemented under NAFTA, we have invested well over $100 million in a new U.S.-based plant and equipment to upgrade our woven textile business in the United States. We now have several new programs with companies which until recently had sourced virtually all of their products from Asia.” So wee see that the NAFTA agreement has significantly boosted the trading prospects of these nations. The American Soyabean Association reports that, “The effects of the NAFTA can be seen on both a micro and macro level. On the micro level, you can now walk into a supermarket in Mexico and see agricultural products produced in the USA. On the macro level, NAFTA generated over $9 billion of agricultural trade between Mexico and the United States in 1996.” We should also consider that the American agricultural export to NAFTA countries is around one fourth of its export to the rest of the world. This has helped the US balance the decrease in exports to the Asian countries and sustain its agricultural growth. The following graphs tell us the economic growth of the US And the other NAFTA countries after the signing of the pact.

The NAFTA agreement has helped strengthen and stabilize the US economy in a significant manner. It has helped the United States to weather the global economic recession from affecting its exports and thereby facilitated a consistent economic surge that is reflected in its growing GDP.

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The Goals of Macroeconomic Policy Essay

Macroeconomics is concerned with the study of the economy as a whole. The main goals of macroeconomics are to achieve:

  • An improvement in the standard of living of the population;
  • A low unemployment rate;
  • A low inflation rate.

A low rate of inflation is desirable in itself but also because it may help promote the other two objectives. These three objectives have to be achieved subject to two important financial constraints. The government must maintain a long run balance in the public finances and the balance of payments. There are also real constraints due to the availability of factors of production. Here we will consider these objectives, the associated constraints and the relationship between them.

1.1. A Rising Standard of Living
Economics is above all concerned with the factors that contribute to improving people’s well-being over the long run. In order to track the performance of an economy over time and to compare it with other economies, we have to measure the output of all the goods and services being produced. One measure of this is known as Gross National Product (GNP). Closely related to GNP is the concept of National Income. This is the total amount of income received by residents in the country. The nation’s output is closely linked to the nation’s income; the more a nation produces, the more income is generated. A principal aim of macroeconomic policy is to find ways of increasing GNP and national income. If this is achieved, then the standard of living of the population is raised. Thus we use changes in income as a proxy measure for changes in the standard of living. (more…)

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Macroeconomics Sample Essay

Macroeconomics came to exist when modern governments collected and disseminated economic statistics. In order to explain fluctuations in output and production, it is useful for corporations to know what the economy’s overall level of output and production is (Lieberman, 2002). With knowledge about the economy as a whole, macroeconomic forecasts can help individual firms make microeconomic decisions. The following paragraphs will discuss several macroeconomic forecasts created by different institutions discuss terminology of economic data and its implications to N. County ADHC- a local health care center in Mira Mesa.

Forecasts under evaluation were obtained from Carmetrics, The Ministry of Economy, The Economic Resource Bureau, RREEF Research, Census Bureau and the San Diego Regional Economic Corporation. Significant data contained in the text included GDP, growth rate, employment and unemployment, inflation and economic growth. Some of the differences among these forecasts included the differences in data analysis that individual agencies choose to evaluate. For instance, the San Diego Regional Economic Corporation stressed population growth and divided its categories in terms of gender, age, jurisdiction and ethnic composition. The RREEF concentrated on U.S Retail market conditions and projected economic trends occurring in major U.S. cities. The most similar information came from Carmetrics, and the Ministry of the economy which both focused on the same categories such as GDP and the labor market which forecasts employment and unemployment. Although many of actual numerical values were different from each other, the figures appeared to be in agreement with regards to the direction the economy was headed towards.

A specific example was the increase of GDP from 2002 to 2003. Gross domestic product is “The total value of all final goods and services produced for the marketplace during a given year within the nation’s borders” (Lieberman, 2002). As GDP rises< it reflects that the economy standard of living rises. GDP is important to the goal of an adult day health care center because it can provide signals or clues about the economy’s future (p.360). It is a reflection of consumption of goods and services purchased by households and government agencies. Since one of the operational goals of HOPE ADHC is to expand its healthcare service to more patients, assessing a positive direction of GDP will provide clues that the center is also heading in the right direction.

(more…)

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