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In recent years a major topic of discussion when it comes to international economics has been the effects of the current U.S. administration's trade war. Most instances where this topic came up involved the agricultural industry where many farmers have been being hit extremely hard due to tariffs and retaliatory measures from other nations. Along with that though another industry has been taking a hit with not much attention being paid to it and that industry is…

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Small Business in E-Commerce

For my article, I wanted to find something about how technology has helped small businesses interact with the global market and take part in international trade. I ended up finding a journal that goes into the details of the value created by e-commerce, while also offering some great insight into the market and the challenges it has faced.

E-businesses (or e-commerce) is in the grand scheme of things, a relatively new concept, with thousands of different sites online that you can…

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After reading the article, there were several issues noted down. Operating in an interdependent market can sometimes, if not always, be challenging. One of the challenges mostly faced is the fact that interdependent economies may tag each other along in the case of failure. This means that in case one of the economies fails, other economies that rely on that specific economy will also be doomed to fail. This failure may come as a result of purely internal issues that…

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This past week Greece elected a new prime minister, Kyriakos Mitsotakis. The former banker and Harvard grad won the election running away due to his previous experience and general outlook on where Greece needs to head in the coming years to regain full self-sustainability within the EU and get the country back to a global leader. Mitsotakis took a very central political approach to start the unify a country who has been in turmoil over the past decade. He stated himself as “being a…

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Global Economic Challenges Today

The article I chose to review talks about some of the economic threats in the global economy. It was posted by the Financial Times, a Japanese financial newspaper and gave good insights on the economic challenges the world faces today. It is very evident that the International Monetary Fund (IMF) believes these main threats are a no-deal Brexit, unfair trading, and other countries with economic instability. Because of these three factors, global growth is expected to drop to the lowest rate…

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Does the SEC consider bitcoin a security?

As we know in today’s world cryptocurrency is as well-known digital currency exchange in which encryption / cryptography techniques which operate as independent currency and well adopted for financial transactions and generation of various currencies and transfer of funds. The significant factor is that it operates without any regulatory or independent of any central bank.

Now a days, “bitcoin” is flowing in the market and are used for the accumulation of wealth by the corporates and…

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As U.S banks are awaiting an impending decision regarding the Federal Reserve rate, bankers across Africa are anxious to see whether the rate will rise or fall as well. In the article “Africa could be about to benefit from dovish policy shifts in the US, experts predict”, an economic analysis by Elliot Smith from NBC, Smith discusses and analyzes the anticipated benefits Africa’s economy could have if the U.S interest rate declines. The African economy is dependent on U.S policy because of…

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Challenges for the global economy

The article I choose to review discusses the challenges that the global economy has to face today. The global economy has slowed to its slowest pace in three years. Investment, international trade, and economic activity (particularly in the Euro Area) have been weaker than anticipated for 2019. This loss in economic momentum is creating challenges in both major and developing economies. There were multiple challenges discussed in the article, but the two most significant were debt reckoning…

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Threats to the Global Economy

The article that I reviewed was about the risks that the global economy is facing today. The author spoke with a man named Tao Zhang, who is a deputy managing director for the International Monetary Fund. He explains that there are three main issues that the global economy is facing. Those are trade front tensions, fiscal and financial risks, and not being able to grow inclusively.

Zhang goes on to explain that with the growing trade pressures between China and the United States there…

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China and the United States have been at ends with each other for several years now, as each nation perceives the other as an economic threat to the other. In a world where the U.S. has been perceived as the top-ranking nation and China number two, the roles are slowly reversing in some eyes with China’s ever-increasing knowledge in the technology field. Stephen Bannon even stated “these two…

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The Real Threats to Global Economy

Uncertainty remains a big threat that is leading the global economy to come to a slow down. One of the major reasons of uncertainty is the ongoing trade war between the United States and China. Not only the large impact of tariffs, but this conflict has put doubts on the future of global economic connectivity and resulted in lowering investment and consumption in both countries and among their trading partners.…

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Mexico’s president is attempting to change the stigma of their country as well as their economic status. As any great leader would do he’s made several changes that will improve life for his people. But as we recently looked at in class the GDP may not be in president Andres favor. Economist have reported that Mexico is to only see about a 2% GDP increase which is below the average rate for being considering sustainable improvement. His changes have brought the average house hold…

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The Benefits of Open Trade in India

The Benefits of Open Trade in India

I decided to read an article about the Bombay Stock Exchange in Mumbai, India. The article was written by President and Chief Executive Officer, William C. Dudley, and was prefaced by stating that the article contained his opinion and not the views of the Federal Open Market Committee or the Federal Reserve System. Dudley then broke down his article into three themes: “the important role that trade plays in promoting higher standards of living…

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The article “The Only Way Is Down for Central Bankers Already at Peak Rates” published by Bloomberg earlier this month summarizes the current state of the global economy and position of global interest rates very well. Economists for Bloomberg state that, “The Federal Reserve and other leading central banks are declaring the peak in global interest rates has been reached and are readying to start the march down.” Keep in mind that the United States is currently in a lengthy expansion period,…

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An article written in the Los Angeles times discusses how China’s economic growth is at the lowest it’s been in 26 years. It is said that the current tariff war between the US and China is not helping the situation. China’s economy grew 2% less than it did last quarter with a growth rate of 6.2% compared to 6.4%. In addition, quarterly growth was the lowest since 1993 when China began reporting it.

“The burden to support the family is fairly heavy.” A Chinese…

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Are interest rates about to go up? Or down? And how might this affect us personally and globally?

Last week the Federal Reserve Chairman, Jerome Powell had created speculation about whether interest rates would be cut at the end of July. This would mean that the benchmark federal funds rate be decreased but would alternatively cause consumer debt interest rates to rise, due to heightened risk. These statements were made before Capitol Hill in prepared remarks before the House of…

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The Global Economy

The article I chose to review it talks about the challenges for the future due to a mountain of debt that makes markets nervous. The article opens with the political forces in the United States and how it will affect economic performance in the long run. Spence then moves on to discuss the United Kingdom and the Brexit process and how Europe needs France and Germany to work together to reform the European Union. He then discusses Asia and how India’s economy is growing, and suggests that the…

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What is a yield curve?

 

              There has been a lot of talk recently in the business and economic media about the “inverted yield curve” and what it means with respect to economic conditions.  This post will try to explain what a yield curve is for those of you who aren’t finance majors.

              Consumers, companies and governments all borrow money, lots of it.  Car loans, credit cards, mortgages, CD’s and bonds are all forms…

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