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Economics in China and South Korea
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DateEconomics in China and South Korea
Economics of the East is one of the most successful economies and home of the world’s largest economies. There has been stable political environment that eases industry and commerce. Cost of labor and supplies which reduces overall cost of doing business. There is also open trade associated with low duties. Moreover, free and flexible labor as well as available market and various factors which enhances business performance within the region. The East Asia region also has a hardworking population with great skills in technology that enable them boost production in the region. In addition, the East economics is accompanied with huge and fast growing consumer market that has largely increased consumption in the region. This article analyses and compares the economics of china and South Korea.
China
China is a densely populated country in the Eastern Asia region whose growth has been extremely commendable in the last few years. It has developed a very good entrepreneurial culture among its population, which has greatly propelled her growth. The population in China has a hardworking and ambitious hence boosting their economies (Lardy 15-18) .China has really released quite a large number of entrepreneurs worldwide who in turn borrowed the Western ideas and comfortably translated them into their respective countries with ease. The technological advancement in China has really been felt by the world. The political stability is thought to be favoring the Chinese growth especially their action during the downturn which lifted the entire Asian region.
South Korea
According to the Heritage Foundation South Korea is one of the Asian Tigers with both high income and market (Web). It enjoys the privilege of being regarded as one of the Next Eleven and further positions herself as one of the fastest growing world economies. South Korea have minimal natural resources but with very high population in a small geographical area. Her large population and small territory which provides small internal consumer growth prompted it to adapt an export oriented economy thus catapulting her economic growth.
South Korea’s economy is ranked 15th in globally by nominal GDP and 12th by purchasing power parity thus making it one of the major economies in the world. Even though the South Korean economy positively grows, her credit rating is normally low due to the aggression by the North Koreans. It however, does very well in national debt and even has fiscal reserves which may help in curbing any form of financial emergency. Because of her stabilized financial systems, South Korea is amongst the many countries that were not affected by the financial crisis (The Heritage Foundation Web).
Economics Based in Both
Apart from their Asian location, China and South Korea are amongst the world’s largest economies with very high population. They largely depend on exports in boosting their economies and have very huge fiscal reserves that may help them in terms of emergencies. China and South Korea have very strong financial systems that helped them to avoid the effects of global financial crisis. Technological advancement and cheap labor are amongst the key factors driving the two economies. Moreover, China and South Korea hugely depends on manufacturing industries and enjoys both regional and global market for their manufactured products.
Methodology
Economics start
China’s reforms and opening up in 1978 as well as adoption of the “five-year-plan greatly helped in supporting her economic growth. The economics have really grown between 1978 and 2005 when it adopted industrial powerhouse that enabled it move beyond initial low wage sector to the more complicated production. According to Lardy Restructuring of industrial, agricultural sector as well as financial sector really catalyzed the phenomenal growth (5-8).
Also, South Korea which after the Korean War became one of the poorest countries for almost 10 years in 1960s introduced modernized technology which catalyzed their production. According to the Heritage Foundation South Korea produced a lot of exports and ploughed back the incentives to expand their industry which employed many people and completely transformed the country (Web). It adopted sophisticated industries which allowed automation of systems thus reducing labor dependency but enhancing global competitiveness.
Economics Now
Both China and South Korea have flourishing economies and have greatly benefited from globalization. The two economics are accompanied with intensive manufacturing industries. Foreign markets have been very favorable for both countries. They are also using a lot of technological knowhow to enhance their economic growth. It is undeniable that industrialization has majorly boosted both China’s and South Korea’s economics.
Conclusion China Economics
China’s economic growth is superb. China is regarded as one of the countries that have really benefited from globalization (Lardy 3-6). China is actually the world’s second largest economy both by GDP and purchasing power and remains the world’s fastest growing economy. China’s growth rate has been commendable in the last 30 years and it is also the largest exporter and the second largest world importer as well as the largest manufacturer globally.
Works Cited
The Heritage Foundation. 2013 Index of Economic Freedom, 2013. Web. 31 Oct. 2013. <http://www.heritage.org/index/country/southkorea>.
Lardy, Nicholas R. Sustaining China’s Economic Growth After the Global Financial Crisis. Washington, DC: Peterson Institute for International Economics, 2012. Internet resource.
Economics for global business
Economics for global business
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Introduction
In EMU, the monetary policy is usually assigned to the ECB while the fiscal policy is the remit of each EU member State as an individual. The aim of the treaty on the functioning of the European Union and the provisions on fiscal and monetary funds is to protect the value of the single currency as well as laying down the requirements from national fiscal policies. At times threats on and the financial stability has tremendous influence on both monetary and fiscal policy (Riley, 2012). During the crisis, some of the weaknesses in the national fiscal policies and EMU methods of governance have come to light. For starters it was evident that financial stability, incentive and rules for sound fiscal as well as the macroeconomic policies seemed to be insufficient. The EMU framework lacks a framework for the prevention and identification and correction of macroeconomic imbalances. A stable monetary policy, sound fiscal and financial stability policies are an essential foundation for sustainable growth and employment opportunities in the euros area. This calls for an improved policy framework which will address the identified weaknesses.
The framework must have features that maintain a price stability- oriented monetary policy, incorporate provisions that ensure financial stability and crisis management. The framework should also safeguard sustainable public finances and economic policies.
During the past few years, the combination of sustained fiscal imbalances and a financial crisis has seen a substantial breakdown in the institutional framework and the allowed barriers between the two policies. Unfortunately the pressure comes from both sides. For instance the governments have been pushing central banks to cross their monetary boundaries thus stepping into areas that are not acceptable for an independent central bank (Riley, 2012). There has been a lot of pressure directed to the central bank some have led the banks to engage in fiscal actions.
From the look of things, in the past two years Greece has been in the verge of economic crisis. This issue has invoked the idea of Greece quitting the European Union. The euro crisis can be solved but the problem is it will take long to do so. The EU member states have it wrong since they think the solution to the Euro crisis is a deeper economic and political union which has a single fiscal policy (Riley, 2012). Transfers should be from North to south and also increase the mobility of labor and capital. As a matter of fact, the solution lies within the fiscal and monetary policy. There have been conflicting ideas between Germany and France on the meaning of fiscal union. Unfortunately, the row between the two countries does not seem to have a near end.
Greece is unlikely to meet the requirements or rather the expectations that were imposed by leaders. The main challenge that Greece face is that the imposed plan is unpopular as well as the country being rocked by several rounds of large protests. Governments have fiscal policy and monetary policy as the only available tools. The fiscal policy focuses on the use of government expenditures and revenue to influence economic activities in the country. On the other hand monetary policy concentrates on manipulation of the money supply this is done through interest rates so as to promote economic growth. The monetary policy suggests that the government should keep interests rates lower in order to promote a steady economic growth. All these policies can help improve on the labor productivity and reduce costs hence leading to an increase in export demand as well as domestic
Governments use both the fiscal and monetary policy to manage economic growth and stability. However, it is different with the Eurozone since it encompasses a range of countries that have different economies. Some countries have a larger economy while others have smaller economies thus it is clear that the policies do not work out the same (WordPress, 2011). The crisis-ridden economies of Greece cannot be coordinated the same way as it would be for Germany. The European central bank faces a challenge of finding the perfect line to walk between the two countries. Greece being a member of the Eurozone therefore the European central bank has cut off one of the two policies that would be used to generate a solution to the economic crisis. Although the Greek government has been using the fiscal policy, it becomes hard to use the monetary policy as it is limited. This limitation is serious since the Greek government no longer has the control of their currency.
Leaving the Eurozone will not right the wrongs in fact, it looks Eurozone like Greece will continue to remain at the bottom of the Eurozone countries while Germany will continue being on the lead. The only options left are reaching an agreement with the troika or quitting the Eurozone
The primary objective of Greece’s monetary policy is to make sure that it achieves primary stability. After the evaluation of this objective, it seems that Greece will be achieving an inflation rate below 2% on the medium term (WordPress, 2011). On the other hand the fiscal policy objective has been decreasing the federal budget deficit so as to pay the huge government debt. In order to achieve the budget deficit to 2.6 %of the Gross Domestic product, the government functions are being streamlined so as to quicken the privatization of government property. Their tax systems have to be modernized to reduce the rate of tax evasion. The deficit can also be addressed through the induction of faster economic growth rates.
Supply side policies will help Greece economy in recovering since they help in restoring competition. The supply side policies that will work for Greece are reducing the power of trade unions, lowering the tax rates on labor and reducing labor market regulation demand (Pettinger, 2011). If an economy is in a liquidity trap, supply side policies can be effective in improving long-term expectations. If Greece is able to realize effective supply side improvements, it will be easy to gain confidence in having a stable and effective economy.
Conclusion
In summation, Supply side policies should be combined with other economic tools for better results otherwise it will be useless for Greece to rely on the supply side policies alone. It will be possible for Greece to get through the economic crisis if it sticks on the right policies. Fiscal policies and stability-oriented monetary policies will mutually reinforce a sustainable economic growth.
References
Pettinger T. (2011) The Role Of Supply Side Policies In A Recession. Retrieved from http://www.economicshelp.org/blog/4401/economics/the-role-of-supply-side-policies-in-a-recession/ On 27th March 2014
WordPress (2012) The Greek Option: Monetary and fiscal. Retrieved from http://worldpoliticsblog.wordpress.com/2012/10/07/the-greek-option-monetary-and-fiscal-policy/ On 27th March 2014
Riley G, (2012) Managing the economy- Government Fiscal Policy. Retrieved from http://www.tutor2u.net/economics/revision-notes/as-macro-fiscal-policy.html on 27th March, 2014
Final Exam Integrative
Final Exam Integrative Paragraph
[1] This semester, we read the following professional essays and/or viewed the following media as a class in the following order:
Matt Jenkins’ “Maya Gold”
“Farming Women—In Their Own Words”
“This Blessed Earth” (NPR Podcast)
Antonio Burciaga’s “Tortillas”
Bruce Mau’s “Urbanity, Revised: To Imagine the Future, We Must Rethink the Meaning of a City”
Kathianne Kowalski’s “Megacities with Mega Challenges.”
Dustin Roasa’s “Cities of the Future—Made in China”
Cynthia Gurney’s “Life with Loss,” Part I
“The United Nations Earth Charter”
Robert Draper’s “Why Photography Matters”
Chitra Divakaruni’s “Mrs. Dutta Writes a Letter”
[2] While reading or viewing five of these documents, I found that they shared the common theme of adaptation. [3] The first essay or DVD to discuss this theme is Chitra Divakaruni’s “Mrs. Dutta Writes a Letter.” [4] This short story is about Mrs. Dutta, a widow who after prolonged illness decides to join her son and his family in America. [5] Things do not turn out as she expected and is unable to adapt to the new lifestyle. [6] Eventually, she makes up her mind to return to India. [7] The first way the theme appears is when Mrs. Dutta arrived in America and wanted to go and meet Sagar’s neighbors. [8] Mrs. Dutta wanted to meet her new neighbors and share her favorite rasogollas as she had done with Mrs. Basu back in India. Shyamoli, her daughter in-law warned her against it explaining that in California people were busy and visiting them would imply invasion of privacy. [9] In the months that followed Mrs. Dutta was on the lookout hoping to make contacts with neighbors since she was home by herself after her son and his wife left for work and the kids to school. Once she attempted to make contact with a neighbour, but received no response.[10] The second way the theme appears is in the change in the family lifestyle roles.[11] According to Indian culture, women are responsible for household chores, however in her son’s house, Sagars wife assigns him household tasks. [12] When Shyamoli asks Sagar to fold the clothes Mrs.Dutta finds it humiliating and offers to take it upon herself to do it. This annoys her son’s wife who alleges that they are equal since they both go to work and so they should attend to household duties together
[13] The second essay or DVD to discuss this theme is “The United Nations Earth Charter.” [14] This essay or DVD is about the global human responsibility towards a sustainable community by preserving the environment and engaging in favorable economic and social activities. It provides guidelines to ensure global harmony. [15] Building a sustainable global community is a collective responsibility of all humans. [16] Nations should therefore renew commitment to developing a sustainable global community. [17] The first way the theme appears is engaging in activities that preserve the environment. [18] The articles advocate for activities that safeguard nature which includes wild animals and their habitats, recovery of endangered species and ecosystems.[19] The earth is dependent on a sustainable environment, failure to adapt ecological integrity pose a risk to the human existence. [20] The second way the theme appears is by advocating for peaceful co-existence among people. [21] Nations can achieve peaceful co-existence by practicing social, economic and political justice. [22] A peaceful nation provides favorable environment for economic growth and stability which is vital in eradication of poverty.
[23] The third essay or DVD to discuss this theme is “For Widows, Life After Loss By Cynthia Gorney.” [24] This essay or DVD is about the vulnerability and abuse of women after the loss of their husbands. [25] The widows of Vrindavan, India, after the death of their husband are abandoned by their families and property taken away from them.[26] However, the widows have united to fight back against abuse and a chance to lead a life free of cultures that deprive them of their livelihoods. [27] The first way the theme appears is the change in their livelihood. [28] The widows are abandoned and live a life of poverty after they are denied their inheritance. [29] They are disregarded by relatives and exposed to the culture of inheritance where any other willing member of the family can remarry them. [30] The second way the theme appears is that the widows have to adopt a different way of dressing to symbolize widowhood or mourning. [31] They stop wearing colorful Saris and are only allowed to dress in white a sari which was a signifier that her husband is dead. [32] Some widows in India have their hair cut off since their beauty appealed only to their husbands who are already dead.
[33] The fourth essay to discuss this theme is Bruce Mau’s “Urbanity, Revised: To Imagine the Future, We Must Rethink the Meaning of a City.” [34] This essay is about Urbanization and the possible effects of environment and society. [35] It emphasizes the need for people to embrace change and take advantage of new innovations that present an opportunity to live better lives.[36] In the process of urbanization, caution should be taken not to destroy cultural and environmental reserves. [37] The first way the theme appears is embracing technological capacities. [38] It involves the development of global information technology and the Internet. [39]The system has accelerated the development of new tools like geographic information systems and global mapping. [40] The second way the theme appears is Innovations on old technology to develop more efficient and environmental friendly machines.[41] Traditional motor vehicles caused noise and air pollution as a result of excess smoke and loud engines.[42] The new cars present a combination of beauty and freedom to its users and preserve the environment.
[43] The fifth essay or DVD to discuss this theme is “Farming Women—In Their Own Words” [44] This essay or DVD is about a woman who gives up her career as a lawyer to give in to farming. [45] The woman’s life revolves around taking care of her family and farm animals.[46] She is not pleased with the rural life and advocates for change in the lifestyle. [47] The first way the theme appears is when she gives up her career to become a stay- at-home mum. [48] Instead she devoted her time to taking care of her daughter, poultry and cats at the farm. [49] This leads her to a life of isolation with no leisure activities. [50] The second way the theme appears is when she changes her line of career from law to education. [51] When she changes her line of career from law to education. [52] Eventually she lands a part-time job for a charity and also approves foster carers for Norfolk County Council.
[53] This semester, I read five documents pertaining to the theme of adaptation. [54] The first document deals with the theme because the character moves to a new environment that requires Mrs. Dutta to adapt to a new lifestyle. [55] The second document deals with the theme because of the need for the world to adapt recommended measures so as to achieve a sustainable global community. [56] The third document deals with the theme because the widows of India need to adapt to the dynamics of life after the death of their husbands. [57] The fourth document deals with the theme because urbanization brings new and better innovations which people need to adapt to disregarding traditional modes.[58] The fifth document deals with the theme because the woman gives up her career to live in the rural area and adapts to farming and family life.[59] From the five essays, it’s evident that change is inevitable and occurs in all aspects of life and therefore the need to embrace. [60] With active adaptation, the society can reap the benefits of positive change.