Economics And Naked Economics: Undressing The Dismal Economy

1022 Words3 Pages
bulb-icon

Recommended: Impact of globalization on underdeveloped countries

A high standard of living is the level of wealth, comfort, material goods and necessities available to a certain socioeconomic class or a certain geographic area. To sum it up, your lifestyle is based on where you live. If you live in an area of poverty, then your setting is most likely surrounded by poverty. Charles Wheelan, author of Naked Economics: Undressing the Dismal Science, stated that Human capital is what makes an individual, productivity is what determines our standard of living (Wheelan,301). Economic growth, measured as the growth rate of per capita real GDP, is the key determinant of living standards in nations across time. (Coppock, ) To avoid such a low standard of living places like The United States of are in the process
International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). International trading has its comparative advantages. Gains arise when a nation specializes in production and exchanges output with a trading partner, Meaning each nation should produce goods they are the best at making. When that happens the transaction leads to lower cost of production and maximizes the combined output of all nation involved. For example California shouldn’t try to produce and sell coconuts, it would be too expensive because they don’t have the right climate, where else in Indonesia it would be cheaper because it has the right climate for
Impoverished countries don’t have the knowledge or material to advance. Like Globalization101 said, these types of countries are in poverty traps, which can be difficult to heal in sustaining a great economy growth. Unlike the U.S the impoverished countries have a better selection of natural resources, where the US has to either trade for it or pay lots of money to produce it themselves. Even with great natural resources to trade the impoverished countries are still not prospering as much as the U.S One of the reasons is that these countries need more factors like the US to sustain a great economy. They have on aspect which is beneficial, but it won’t give them the gain they need to pull out of such harsh

Show More
Related

  • Understanding International Trade: Costs, Benefits, and Agreements

    715 Words  | 2 Pages

    Trade is the most common form of transferring ownership of a product. The concepts are very simple, I give you something (a good or service) and you give me something (a good or service) in return, everyone is happy. However, trade is not limited to two individuals. There are trades that happen outside national borders and we refer to that as international trading. Before a country does international trading, they do research to understand the opportunity costs and marginal costs of their production versus another countries production. Doing this we can increase profit, decrease costs and improve overall trade efficiency. Currently, there are negotiations going on between 11 countries about making a trade agreement called the Trans-Pacific

    Read More

  • Analysis Of Naked Economics

    963 Words  | 2 Pages

    In this chapter of Naked Economics, by Charles Wheelan, he describes many aspects of trade. It begins by showing the capabilities of trade and how it affects everyone as a whole. It makes it so that everyone is better off than normal. To put it into perspective, he put the image in your head of how hard your life would be without trade, you would have to make your own clothes, find a way to get/make your own food, make your own car, etc... After showing some of the advantages to trade, he applies it to a global persona and begins to introduce his opinion on how global trade (globalization) makes us richer. One of the key explanations of this point is that trade frees up time in our busy schedule, therefore allowing us to use that freed up

    Read More

  • Naked Economics Chapter 1 Summary

    2262 Words  | 5 Pages

    An assumption that economists make is that individuals try to benefit their lives as much as possible. Basically they invest in things that don’t necessarily make them happy, but will benefit them in the long run, or just things that give utility. Another assumption is that firms always try to make the most money they can. The joke about why the entrepreneur crossing the road is perfect. The example he gives to prove that maximizing utility doesn’t go hand in hand with selfishness is about a women who died in her nineties who lived her life as a laundress lived in a small apartment with little in her apartment such as a black and white television. She wasn’t poor and even gave away $150,000. Her utility she gained was from saving her money than spending it on lavish things. This goes to show that everyone gets utility from their lives in different ways. Maximizing utility is just a way to live life comfortably. Many things hold utility, even those that are

    Read More

  • Essay On Can Poverty Be Eradicated?

    944 Words  | 2 Pages

    In general, poverty is a widely spread all over the world but there are areas where due to certain factors, it is more common than in others. There are a lot of factors that can cause poverty one of the example is, natural disasters. There are many types of natural disasters such as floods, earthquakes, volcanoes, hurricanes, etc. Over ninety percent of deaths rate are caused by natural disasters take place in poor countries because in poor countries they do not have abilities to prevent the disaster and the houses are made of lower quantity. Compare to the richer countries, poor courtiers are more difficulty to recover because they are already poor and the natural disasters may only make it worse. After the natural disasters, the environment of counties will likely to be polluted wherefore it is more susceptible to disease because less clean water to be use and fewer doctors and health care. In addition, government will need rebuild the houses and infrastructures that have been damaged. (slideshare.net, 2009) Another example is, high divorce rate may increases the poverty especially for

    Read More

  • Comparing Standard of Living and Quality of Life Between Countries Using GDP

    827 Words  | 2 Pages

    Standard of Living, in a purely material dimension is the average amount of GDP per person in a country (therefore determining access to goods and services). However the term has a much broader, non-material dimension involving issues of quality of life and are therefore much more difficult to quantify. There is no single measure of SoL, but a range of indicators, which can be used together to give a good idea of a countries’ SoL. Reasons for GDP figures alone giving an incomplete understanding of SoL in a country will be explained in this essay, along with problems faced when comparing levels of development between countries.

    Read More

  • Poverty In America

    1393 Words  | 3 Pages

    Poverty are the roots of many factors that are involved. It includes lacking jobs for workers, terrible health conditions, unable to access to schools and training facilities, or even having a corrupt government. Poverty affects millions of people worldwide, including families and individuals, it exists in wealthy and poor countries, and affects citizens directly or indirectly. Wars, droughts etc, causes a great impression on the human population and can bring a negative impact to the person's income and their ability to provide for their families. Research tells us that jobs may not always solve the problem of poverty. It is said that one fifth of the people living in

    Read More

  • The Effects of Poverty in Our World

    1593 Words  | 4 Pages

    All over the world, disparities between the rich and poor, even in the wealthiest of nations is rising sharply. Fewer people are becoming increasingly “successful” and wealthy while a disproportionately larger population is also becoming even poorer. There are many issues involved when looking at poverty. It is not simply enough (or correct) to say that the poor are poor due to their own (or their government’s) bad governance and management. In fact, you could quite easily conclude that the poor are poor because the rich are rich and have the power to enforce trade agreements, which favor their interests more than the proper nations. This is a very serious problem in our society today. Poverty is everywhere and it needs to reduced so that our economy will be more stabilized and balanced that it has been. What does it mean to be poor? What does it mean to describe a nation as “developing”? A lack of material wealth does not define one as deprived. A strong economy in a developed nation does not mean much when a significant percentage or a majority of the population is struggling to survive. Development usually implies an improvement in living standards such that a person has enough food, water, and clothing, a stable social environment, freedom, and basic rights to have a fair chance for a decent life. Is this actually progress? On the other hand, are we fooled into believing that it is? The U.S. Department of Health and Human Services placed the poverty level for a family of four at $16,450 in 1998, and the poverty rate in 1996, according to the HHS, was 13.7 percent, or 36.5 million Americans. (Egendorf: 1999, 12). Is there really a way to measure poverty, and to decide exactly what poverty is? Hunger, income level, housing and the economy’s condition of the working poor are just a few example of what needs to be considered when measuring the poverty levels in our nation. Poverty expands and contracts and its definition changes in accordance with temporary exigencies, including the interests of those who propound the definitions do the counting, which means that there is no concrete definition of poverty, except for the numbers. (Valentine: 1968, 13). Poverty is not something that has just recently become an issue; it has been around for many years. The economy has been a major influence on the levels of poverty in our nation. In 1973, poverty increased ...

    Read More

  • Role of Governments in Trade

    1713 Words  | 4 Pages

    In order for international trade to work well, governments must allow the world market to determine how goods are sold, manufactured and traded for all to economically prosper. While all nations may have the capability to produce any goods or services needed by their population, it is not possible for all nations to have a comparative advantage for producing a good due to natural resources of the country or other available resources needed to produce a good or service. The example of trading among states comprising the United States is an example of how free trade works best without the interve...

    Read More

  • Poor Us: An Animated History Of Poverty

    1466 Words  | 3 Pages

    Poverty can be fund in every nation of the world. Poverty can be found in nearly all geographic locations on the earth. Poverty can be found on the streets of New York City in the United States, the slums of India, or the jungles of Africa and South America (Poor Us). The richest and the poorest nation both have poverty. While there may be huge inequalities between the rich and poor countries of the world, they all face large amounts of poverty. What is defined as poverty in these rich and poor countries? In America, poverty could be a young family struggling to pay rent or homeless men and women on the street. In India, poverty could also be a young family struggling or homeless men and women on the street. Poverty does not

    Read More

  • Raising the standard of living for all, would it work?

    558 Words  | 2 Pages

    If you were to ask people from all over the world what the standard of living means to them, you would get different answers from each person. Raising the standard of living would no doubt bring greater life expectancy, fewer diseases also fairness and equality to all. But is it possible to achieve this when the world is living at such different standards and what would the implications be of raising the standard.

    Read More

  • Why Poor Countries Are Poor

    2229 Words  | 5 Pages

    The question of why poor countries are poor may seem simple and one dimensional at first glance. However, the answer to this question is actually quite intricate, as many interweaving aspects must be observed. Although it is impossible to explain why many countries remain in poverty within just a few pages, I will attempt to touch upon some of the broader factors. A poor country or a low-income economy is defined as a country with a Gross National Product per capita of $765 dollars or less. In 1995, the World Bank claimed that 49 countries fell into this category. Geography, colonialism, industrialization, resources, education, overpopulation, infrastructure, government, investment, and debt are only a few of the many interrelated factors that have caused many countries to remain in poverty.

    Read More

  • Solutions to Poverty

    1333 Words  | 3 Pages

    Poverty is a major problem in the United States today. Social, economical, political, and cultural factors all contribute to poverty. Education and economic development are two major issues that will help prevent poverty. The United States Census Bureau defines poverty as an "economic condition in which people lack sufficient income to obtain basic needs for food, housing, clothing, health services and education." In other words, poverty is powerlessness, a lack of representation and freedom. Poverty is an issue that the world faces everyday.

    Read More

  • Causes and Solutions of World Poverty

    1143 Words  | 3 Pages

    There are many reasons why poverty is an increasing problem. The first is delayed modernization. These less-developed countries barely have enough skilled workers and managers and technology. Industrialized countries have four times as many managers and workers as the less-developed countries, also known as LDC's. It is almost impossible for the lower-developed countries to catch up or even compete with the industrialized countries....

    Read More

  • The Free Trade Agreement

    794 Words  | 2 Pages

    The first concept to consider while entering into a Trade Agreement is called the theory of comparative advantage if a country has an advantage in producing some product it means that country is considered the most efficient country to produce that particular product. In other words if a country use the same inputs in their production process for a specific good, then that country can produce more and better quality of that goods compared to all the other countries.

    Read More

  • Advantages And Disadvantages Of International Trade

    921 Words  | 2 Pages

    International trade is an economic practice where countries can import and export goods with no concerns to government intervention which includes tariffs and import/export bans or limitations. International trade has several advantages on developing countries; who are nations with low levels of economic resources or low standard of living. Developing countries can advance their economy through strategic free trade agreements. Free trade generally improves the quality of life of poor nations. Nations can import goods that are not easily available within their borders; importing goods may be cheaper for than trying to produce consumer goods. Many developing nations do not have the production procedures available for translating raw materials into valuable goods.

    Read More

More about Economics And Naked Economics: Undressing The Dismal Economy

Open Document