Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
International trade and finance essay
International trade and finance essay
International trade and finance essay
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: International trade and finance essay
Governments face all kinds of crises every day, the approaches may be different but the goal is always the same—maintain stability. While, wars and crimes against humanity tend to take a toll on the population, infrastructure and terrain quite literally, financial crises can psychologically cripple a country. There’s something about a financial crisis that conjures a level of panic that could rival the outbreak of a deadly disease. Maybe this is caused by a lack of visible end, as it seems the light at the end of the tunnel is only made clear at the end of the crisis. Even with examples from history to refer to, each financial crisis seems to take on a version all its own like a new strain of a deadly virus. The government tries to administer the correct corresponding solution, but often it feels as though one might as well have gone in blind; as the policies’ true impact are unclear until several years later. Like a vaccine each new version is adjusted and reconfigured in hopes to take care of the new symptoms. Each formula is saved and stored so that experiments and tests can always continue in the future. Today in the modern world we would like to believe that some of these vaccines have reached a status of 100% confidence level. Though, as with the commonly used tools in times of crisis, one can never fully count on a one size fits all packages.
When a financial crisis infects a country they have a few remedies to stabilize the economy: import tariffs, industry subsidies, fiscal stimulus and monetary policy adjustments using interest rates. The method or combination of methods chosen coincides with the current trusted economic school of thought in the country. The American School believes that economic policy should protect...
... middle of paper ...
...- Los Angeles Times. (n.d.). Retrieved from http://articles.latimes.com/2005/jun/06/business/fi-protect6
International trade and finance: New frontiers for research: Essays in honor of Peter B. Kenen Cohen, Benjamin J, ed. Cambridge; New York and Melbourne: Cambridge University Press, 1997.
The modern world economy: Theories and policies
Overbeek, Johannes. Lanham, Md. and London: University Press of America, 1993.
Contemporary issues in applied economics
Bird, Graham; Bird, Heather, eds. Aldershot, U.K. and Brookfield, Vt.: Elgar, 1991.
International economics
Carbaugh, Robert. Third edition Belmont, Calif.: Wadsworth, 1989.
Off the Cliff and Back? Credit Conditions and International Trade during the Global Financial Crisis Davin Chor and Kalina Manova NBER Working Paper No. 16174
July 2010, Revised February 2011 JEL No. F10,F14,F42,G01,G20,G28
The financial crisis of 2007–2008 is considered by many economists the worst financial crisis since the Great Depression of the 1930s. This crisis resulted in the threat of total collapse of large financial institutions, the bailout of banks by national governments, and downturns in stock markets around the world. The crisis led to a series of events including: the 2008–2012 global recessions and the European sovereign-debt crisis. The reasons of this financial crisis are argued by economists. The performance of the Federal Reserve becomes a focal point in this argument.
December of 2007 saw the beginning of the worst economic downturn in memorable history; not since the end of the Great Depression in 1939 has the world seen such a devastating and long-lasting economic breakdown. The Great Recession shook the public’s faith in the capitalist system and silenced those who claimed a modern economy was impervious to another broad collapse like the one in 1929. Discontent and mistrust from the public has built not only with large corporations and the financial sector, but also with the government whose legislature and policies in recent decades seem to coincide with the interests of private corporate power-houses. These lenient policies contributed directly to the recession that affected individuals across the globe. Stunted wages, increased poverty,
Bentley, J., & Ziegler, H. (2008). Trade and encounters a global perspective on the past. (4th ed., Vol. 1, pp. 182-401). New York: McGraw-Hill.
In The Return of Depression Economics and the Crisis of 2008, Paul Krugman warns us that America’s gloomy future might parallel those of other countries. Like diseases that are making a stronger, more resistant comeback, the causes of the Great Depression are looming ahead and much more probable now after the great housing bubble in 2002. In his new and revised book, he emphasizes even more on the busts of Japan and the crises in Latin America (i.e: Argentina), and explains how and why several specific events--recessions, inflationary spiraling, currency devaluations--happened in many countries. Although he still does not give us any solid options or specific steps to take to save America other than those proposed by other economists, he thoroughly examines international policies and coherently explains to us average citizens how the world is globalizing--that the world is becoming flatter and countries are now even more dependent on each other.
Revival following the crisis just when the vulnerabilities in the financial sector have been addressed without endangering the fiscal sustainability. The crisis resolution actions generally involve costly government reorganization of private sector’s and the financial sector’s balance sheet. This can have a long-term negative effect on the public debt levels. Besides,
Disappointment in financial risk management takes various structures, the greater part of which are exemplified in the present emergency. For instance, risk appraisals are regularly taking into account chronicled information, for example, changes in house costs after some time. Yet, fast financial advancement, including securitized subprime contracts, has made such information untrustworthy. Also, a few risks are missed on the grounds that they are covered up in excessively complex reports that leaders cannot get it (Stoian & Stoian, 2016).
Terborgh, Andrew. "The Post-War Rise of World Trade: Does the Bretton Woods System Deserve Credit?” Department of Economic History, London School of Economics. Sept. 2003: p. 1-73.Web. 13 Apr. 2014. .
This paper provides an overview of the crisis, outlines the major causes of the crisis, examine alternative solutions to the problem
Liikanen, E. (2013). The economic crisis and the evolving role of central banks. BIS. Retrieved from http://www.bis.org/review/r131128c.htm.
International finance has two basic parts: integration and technical change. These basic forces have shaped the evolution of international finance for centuries. “Global integration of money and capital markets is an important part of international finance; through such channels purchasing power over real resources today is transferred from areas of the world where expected rates of r...
Firstly, what should be noted here is that international trade has been providing different benefits for firms as they may expand in different new markets and raise productivity by adopting different approaches. Given that nowadays marketplace is more dynamic and characterized by an interdependent economy, the volume of international trade has grown substantially in recent years, reducing the barriers to international trade. However, after experiencing the economic crisis that took its toll in 2008 many countries adopted a different approach in terms of trade barriers by introducing higher tariffs in order to protect domestic firms from foreign competition (Hill). Secondly, in order to better understand the implications of the political arguments for trade it is essential to highlight the main instruments of trade policy (See appendix 1).
After the failed International Trade Organization, Rodrik discusses the Bretton Woods Agreement, the transition from the General Agreement on Tariffs and T...
Warwick J. McKibbin, and Andrew Stoeckel. “The Global Financial Crisis: Causes and Consequences.” Lowy Institute for International Policy 2.09 (2009): 1. PDF file.
The macroeconomic environment is a dynamic environment, which could not remain unchanged (Gajewsky 2015). There are many factors influence the global macroeconomic environment, such as interest rate, exchange rate, GDP,aggregate demand, monetary policy and other macroeconomic variable (Oxelheim and Wihlborg 2008). These factors are closely associated with commodity price.
During the twentieth century, the world began to develop the idea of economic trade. Beginning in the 1960’s, the four Asian Tigers, Hong Kong, Singapore, South Korea and Taiwan, demonstrated that a global economy, which was fueled by an import and export system with other countries, allowed the economy of the home country itself to flourish. Th...