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Leaving the European Union without a deal will not represent a clean break for the U.K., but rather usher in a prolonged and severe uncertainty for the year to come.

U.K. leave without a deal, the imposition of tariff and non-tariff barriers between the U.K  and its largest trading partners will be a major shock  to economy, While the continued fall in the pound will drive up the inflation and reduce the real wages.

New barriers to trade for the UK with the EU can directly impact…

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Do BRIC countries overtake the G7 by 2035?

Dreaming with BRICs” where we laid out a vision of what the world might look like in 2050. The collective GDP of the four leading developing countries (the BRICs--Brazil, Russia, India, and China) is likely to match that of today's leading Western nations by 2035. Its economies have progressed remarkably in 16 years, although some of the bloc's members have lost their impetus. Before we turn on to the future, let’s see how the…

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Current Status of U.S. Business Cycle

The International Monetary Fund this week cut its forecast for global gross domestic product to 3% in 2019 and 3.4% next year. That's the weakest outlook in a decade, and down slightly from the lender's projections in July.  The usual warning sign for a recession is low levels of inflation. The U.S. has been hovering around 2% inflation, which in the past would almost always mean a recession was on the horizon. In the present day, however, many economists believe that it can even go as low…

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Attack on Aramco

Two essential oil facilities in Saudi Arabia, Abqaiq, and Khurais were attacked. Yemen's Houthi rebels, supported by Iran, who are battling the Saudi-led coalition, claimed responsibility for the attacks, but their ability to carry out such a complex attack quickly raised doubts. The damage caused by the attacks resulted in an additional 5.7 million barrels of oil supplies interrupting the price of oil by more than 19%. The short-term price hike on the market is understandable, given that…

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President Trump has been a man of controversy in the trade business between many large powerful countries. While not always known for having the best tactics and awareness in the trade business he is certainly known for having many successful bills passed in order for the US to be one up at all times.These tariffs have certainly hurt countries like Canada,Mexico and our biggest competitor China.Although many problems have been caused, Trumps tariffs have definitely increased revenue for the…

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Can trade war be beneficial for China?

Can trade war be beneficial for China?

We can talk about trade war when one country imposes tariffs on imports from other countries. This is supposed to give a comparative advantage to national companies as this would lower domestic production cost. This might work in the short run and even might help to create additional jobs and relocate some of the production units form overseas, but in…

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US Small Businesses and Trade War

American small businesses are losing their position and left wondering how to act with this absurd trade war. They didn’t call it war for nothing, it's not affecting the united states and china alone it’s reaching many countries as it escalates. President trump just added 15% tariff last September 2019 on china which made china return the favor with more tariff on US oil and pharmaceutical products. This back and forth escalation since July 2018 is making other countries businesses wondering…

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Is Our Capitalism as Efficient as Possible?

Anyone who studies the art (or science) of marketing can tell you that consumerism is and has always been linked to emotions in one way or another. Some products/services build on that more than others, but the connection is more or less inevitable. In recent years we have seen the consumer's emotions play more critical roles with purchasing, as well as ethics, as there has been a rise in Corporate Social Responsibility within businesses. We have also seen consumers actively protest against…

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Trade War

In the past couple of years we have been dealing with trade dealings that have since picked up in intensity and have become more and more uncertain. With this being it has taken a toll on the american economy as well as the world. It stems from the current administration looking for a change in the way we are trading with China having an overall goal to reduce the trade deficit and focus on a more domesticated approach to making products. Since the trade wars…

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The Chinese economy has been slowing in recent years. Most recently it grew by only six percent in the third quarter of this year making it the slowest growth for china's economy in 30 years (Weinland, Yu, Liu,2019). This slow in growth in China's GDP is not only bad for China, but also for the world economy as a whole. This slowing growth reduces the production in China and lowers househ0ld income. With China having both the largest workforce and population in the world, the lowering of…

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Not all recessions are a crisis

A common fear that many people within the United States are dealing with nowadays is the thought of the US entering back into a recession, one that would be similar to the one many experience back in 2008 with the financial crisis that went on in the US. A lot of the time when people think of recession in the US they automatically think back to 2008 and assume it will be millions of people losing jobs, businesses shutting down, and GDP growth dropping, but in…

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Corporate Debt Bubble

In today’s economy we have seen a great amount of uncertainty. Uncertainty has led to high volatility at times and can create difficulty for investors. There have been many flashing signals that we are entering a slow down in today’s economy. One of these signals that we should continue to keep an eye on is the corporate debt bubble. Since the 2008 recession caused by the subprime mortgage crisis, corporate…

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Blockchain is the technology which underpins Bitcoin and other digital currencies. It is a database of financial transactions which is saved on multiple computers and which constantly grows as new transactions or "blocks" are added to it, forming a continuous and public chain of data. Blockchains have the potential to give us almost unlimited capabilities as an added value layer for all next generation technologies as well as established and legacy industries. Some believe it will add more…

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Caterpillar is one of the world’s leading supplier and innovators of construction equipment. Caterpillar is expecting profits to be on the lower end of their yearly estimates and expect only moderate sales growth. This is largely due to the economic slowdown in China which has been caused by the implementation of tariffs from the United States. These slowdowns are being seen throughout the entire construction industry in the world. With China being one of the largest and most expansionary…

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Impact of Globalization on Indian Economy

 

Globalization means integrating the economy of our nation with the world economy. Globalization is the process of integration and interaction of national economies into the international economy through trade, foreign direct investment, migration, and the spread of technology. Globalization would help the underdeveloped and developing countries to improve their competitive strength and attains higher economic growth rates.

 The advent of the New Economic Policy in…

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China’s economic growth fell to its slowest pace in three decades. The US and China trade war is just part of the problem, as China is also facing weak investment and customer pessimism. The main factors that have been worsening the economy are China’s addiction to lending and trade war; moreover their automotive sector is shrinking, real estate sector is leveling off, and their pigs have been dying from a swine fever epidemic. According to Larry Hu, the head of economics at Marcquarie…

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It’s that time of the year and once again the DV lottery is opened to enable applicants apply for the DV-2021 lottery year. For most people, it’s a terminology they are not conversant with but for people from other countries particularly the developing ones, it is what we term “Ticket to heaven” which one needs in order to realize the “American Dream”. The lottery is one of the most popular visa programs for foreigners who lack sponsors in the United States and want to immigrate here…

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US-China Conflict Having Global Impact

Elvira Nabiullina, the governor of the Central Bank of Russia, believes that the longer the trade dispute between China and the United States continues, the larger the chances are of this turning into a structural problem of the global economy. According to Nabiullina, if the trade war can be resolved "constructively and fast", the slowdown could be looked at as cyclical, but if it continues to escalate it poses more long-term risk to the global economy. Russia is certainly feeling the…

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The multinational company Facebook introduced in June of 2019 the development of a new cryptocurrency called Libra. Facebook's goal with the new cryptocurrency is to "continuing to build a strong association of some of the world’s leading enterprises, social impact organizations and other stakeholders to achieve a safe, transparent, and consumer-friendly implementation of a global payment system that breaks down financial barriers for billions of people." The Libra Association had been made…

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Britain and the European Union have come to an agreement and it seems that they are moving forward with Brexit; having the U.K. out of the E.U. by the end of the October possibly. Despite arguments on both sides urging to stay, it seems that the majority of leaders are in support of Brexit and are looking forward to what will come from this exit and consequently the deals that were made between the 2 entities.
The deal is unusual due to the ties between Northern Ireland, part of the…

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