Africa’s energy deficits are pretty well known, however, of recent we have been hearing a lot of policy makers talk openly about nuclear power on the continent. Many kept wondering who the potential supplier would be – China or Russia and if the United Nations would approve it. While many top trading countries continue to fight over investments in Africa, Russia has been wooing African states in an attempt to gain influence in the continent and earn billions of pounds and have beaten their compe
Hedge fund titan Ray Dalio said trade war has been going on between the US and China for the past two years, would develop into a full-blown capital investment war that could eventually lead to changes in the global reserve currency. The economic war between the world’s two largest countries could soon turn into a melee for the dollar’s long-term status as the world’s preferred form of the exchange rate. “There is a trade war, there is a technological war, there is a geopolitical war, and there
The global airport industry has been ever growing since planes were taking off and landing in grassy fields. People realized the potential these machines had to expand the world and transport people and goods around the globe faster than ever before. Now, more people are flying on a daily basis than they ever have; with planes being able to land in regions they never had before. This trend has set forth a global demand for better designed, better equipped and in general more airports around the
The article taken into consideration deals illustrates whether U.S. President Donald Trump would impose the tariff on European car manufacturers or not. According to Jean-Claude Juncker, who is the outgoing president of the EU commission, the president of the united states had only time till November 13th to decide upon is the tariff is to be levied or not. However, the EU Commission believes that the tariff would not be imposed even if Donald Trump ruffles a bit. It has been observed that the t
Since the failed fixed-rate system of Bretton Woods in 1971, the US has always been in the center as the focus of the global monetary system. Large countries usually float their currencies, and smaller sizer alleviates theirs to the US dollar. The dollar has some form of dominance in the world. It is the highest used currency in the world, with euro following behind.
When currencies are stabilized to the US dollar, it means these countries can be at an advantage, gaining the opportunity to lower
Jerome Powell, the Federal Reserve Chair said, "The Fed won’t be able to fight the next recession all by itself — it’s going to need help from Congress." (Smith, 2019). It is true what Powell said, that the fiscal policy will play a huge role in any response to the next crisis, however the Fed also needs a better monetary agenda. With the current economic conditions, it will be hard for the Fed to lower interest rates enough to completely alleviate a recession. Historically during a downturn, th
When sitting in an economics class at any University in world, students are continuously taught about the on goings of cultures and economies other than their own, but it is always taught and perceived from the point of view of their home country. Although the policies and statistics remain the same no matter where you are learning the information, the message and purpose can easily be shifted by the country the lesson is given. In the Global Economy course I am currently enrolled in at t
The countries across Southeast Asia, where giants like Nokia and Huawei are working on implementing 5G cellular networks are experiencing increased revenues and profits in a region that’s being contested between the United states and China. According to the survey by management consulting firm A.T. Kearney says that the introduction of the 5G networks could offer about $900 million increase to Malaysian telecom companies beginning in 2025.
The report adds that Indonesia is predicted to be the
The U.S.-China trade war has seemed long and grueling for many American business and consumers. It has blow up to the point that "American tariffs now cover more than two-thirds of the products imported from China, while Chinese tariffs cover 58 percent of China’s imports from the United States." According to recent data, "American consumers and businesses have paid an additional $38 billion in tariffs between February 2018 and September 2019" on Chinese imports, even though the current administ
We all are very aware that the global economy is shifting. But in what direction is it shifting and what are the major causes for this movement? It is projected that the BRIC economies (Brazil, Russia, India, and China) will soon overtake the G7 (United States, Canada, Japan, Germany, France, United Kingdom, and Italy). China is leading this charge as it is currently 2/3 the size of the U.S. economy and is projected to be 10% larger than the U.S. in 2039 with India right behind the United States
According to the CNBC news article, it appears that the world’s two largest economies, the United States and China, are making progress and the result is that both countries markets are showing signs of improvement. Gao Feng, a ministry spokesperson for China’s Commerce Ministry, said “that both sides had agreed to simultaneously cancel some existing tariffs on another’s goods.” The spokesperson also states that both sides are closer to a “phase one” trade agreement after negotiating for two we
India is ducking out of one of the largest free trade agreements, as it wants to protect its framers and local business. Indian prime minister Narender Modi decided not to sign the agreement on Monday at a summit in Bangkok. As the Indian prime minister is considered about the trade of balance and fairness for the entire country.
India was worried that the entire market would be flourished with Chinese products and agriculture and dairy products from Australia and New Zealand, which was one of th
China is desperately trying to solve its financial crisis as one of its largest banks was forced to shut down and more and more are needing to be bailed out after years of messy growth. For decades China had been the world's leader in growth, taking over many industries by becoming the top producer in manufacturing goods for people all over the world. Now, it looks like their growth was not sustainable as the country is facing many financial situations as word comes out that top banks were hidin
While researching a group project for my economics class, I found a very useful article by Amanda Connolly on the Global News Canada website, with an update on the USMCA agreement that may soon replace the NAFTA agreement. The article is based on an interview summarizing some democratic points of view and how it is believed that democrats in Canada want to pass USMCA, in some part, to show that they can part take in bipartisan agreements.
The USMCA agreement was signed by Mexico, the US and Canad
John Heywood, a very prominent English playwright in the 15th Century once posited that “Rome wasn’t built in a day, but they were laying bricks every hour”. This is the perfect quotation that best describes the current relationship between China and Africa in China’s quest to dominate global trade in recent times. China has now turned its attention to the African continent mainly because according to UNEP (2019), Africa possesses about 33 per cent of the world’s natural resources in total, this
China and the United States have been stuck in a trade feud for 16 months, and no initial deal has been made.
China's trade surplus with the United States in October was $26.42 billion while $25.88 in September. October trade surplus was up a bit based on customs data from Reuters.
In August, China’s exports in U.S. dollars unexpectedly fell by 1% year-over-year, while imports were dropped 5.6% in the same period. That brought its trade surplus to $34.83 billion. China’s exports in September was 0
Globalization and the World Economy
What does “globalization” mean?
The worldwide development toward monetary, financial, trade, and interchanges incorporation.
Globalization infers the opening of nearby and nationalistic points of view to a more extensive standpoint of an interconnected and reliant world with free move of capital, goods, and services crosswise over national wildernesses. Be that as it may, it does exclude unhindered development of work and, as proposed by certain financial ex
We all know another recession is coming eventually. It’s part of the natural business cycle. The real question though, is how bad will the next recession be? Can we expect something as bad as the 2008 recession?
The short answer is most likely not. Overall, the 2008 recession was “generally terrible”. A typical recession will see a 30% drop in the S&P, while the 2008 recession saw around a 50-60% drop. We also saw a huge hit on GDP in 2008, 5.1 percentage points. In the past, we have seen GDP hit
United Nations Stated that India made a smaller but Substantial additional export gain of 755 million to the U.S in the first half of 2019 following trade diversion effects of USA’s tariff war with china.
The trade war between the two economic powers stands at $21 billion for the 1st half of 2019 with countries like Canada, India and south Korea are amongst the most beneficiaries of the trade war.
China has lost approximately $35 billion in exports this year in the U.S. market and $21 billion spac
As we know the US trade deal with China has affected global trade, while certain economies are being challenged, some economies are reaping the benefits. In recent economic news, China signed a $15 billion contract with France. This contract represents trade deals between the two countries in terms of aeronautics, as well as energy and agriculture; this contract also led to the approval of 20 French companies to export poultry, beef and pork to China. China and France also discussed agreements s
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