International Capital Mobility
International Capital mobility- the free flow of investment financing from one country to another is a hot topic in the world of economics. A common question that rises when discussing this matter is, does capital mobility benefit developing countries? As with most other subjects the answers tend to vary.
In this paper I will shine light on the point of view of two respectable economists concerning the positive and negative affects associated with capital mobility. Also, how developing countries may or may not benefit in the long run. James Bradford DeLong a Professor of Economics at the University of California at Berkeley (DeLong, Biography, 2004) and Joseph Stiglitz a leading economic educator who is recognized around the world (Stiglitz, Biography, 2004).
The standard crisis developing countries face is, a high demand for goods and services, with high money growth, high government spending, high wages, and high inflation. All while exports are low and imports are high. The standard solution is slow money growth and low government spending. Unfortunately these cures take time and during the transition the country may borrow from the IMF to finance the trade imbalance.
DeLong’s stance on the subject is that, “large international capital mobility is a good thing. It raises the earnings of savers and lowers the cost of capital to investing firms, it gives the rich an extra source of insurance and the poor an extra source of knowledge of modern industrial high productivity technologies, and shutting off capital flows creates enormous opportunities and incentives for corruption which deprives societies of an early warning signal that their governments are following dangerous and destructiv...
... middle of paper ...
... point out the ugly truth that it seems to only look good on paper, but when it comes to how the process plays out it looks grim. As DeLong states in his article, The Economists’ Voice, the results of international capital mobility seems to be, “ a flawed situation that may still be the best we can do”.
Bibliography
Bradford DeLong, “The Economists’ Voice”
http://www.bepress.com/ev/vol1/iss/art1
Bradford DeLong, “Joe Stiglitz is Losing His Argument”
http://econ161.berkely.edu/movable_type/archives/001397.html
Bradford DeLong, “Biography of J. Bradford DeLong”
www.j-bradford-delong.net/career/onepagebiography.html
Joseph Stiglitz, “Biography of Joseph E.Stiglitz”
www.gsb.Columbia.edu/faculty/jstiglitz/bio.cfm
Joseph Stiglitz, “ What I learned at the World Economic Crisis”
http://econ.cudenver.edu/Beckman/econ4410/stiglitz world%20crisis.doc
The author’s outgoing personality has created the character Janie. Zora Neale Hurston has a charming, interesting personality that enjoys people, and stories. According to the short biography by Valeria Boyd, “Zora Neale Hurston”, “Zora Neale Hurston could walk into a roomful of strangers and, a few minutes and a few stories later, leave them so completely charmed that they often found themselves offering to help her in anyway they could.” The author is a very sociable person, this also shows ...
In historic times; math was well known for helping Egyptian people keep track of their property, money, taxes, livestock, land and sometimes people. Math did indeed help the Egyptian community and their king by building pyramids, tombs, art crafts, and using math to solve the flood on Nile Valley. Egypt was striving for a new era to come along with their mathematical achievement.
Thomas, Kenneth P. “Capital Mobility and Trade Policy: The Case of the Canada-US Auto Pact.” Review of International Political Economy 4 (1997): 127-153.
Veseth, Michael. "Chapter 9. The Future Of Globalization." Globaloney 2.0: The Crash Of 2008 And The Future Of Globalization. 2010. 183. Print.
Hergenhahn, B.R. (2009). Social and Theoretical Psychology: Conceptual and Historical Issues 1. An introduction to the History of Psychology. 1 (1), p1-28.
Woodward, D. (2001). The next crisis?: Direct and equity investment in developing countries. London: Zed Books.
These results change or modify political organizations to be suitable for the needs of global capital. Regions and nations are encouraged to import and export of goods from other parts of the world rather than supplying or manufacturing them in their own homeland. Thus, seeking expensive manufactured supplies or goods from third world countries to import them to the first world corporation’s injunction with the free trade zones of globalization (Ravelli and Webber, 2015). These negotiations raises new organizations, for example, the World Trade Organization (WTO) to aid and supervise both countries to for a legalized trade. However, Neoliberalism amplifies the negative aspects of globalization’s effect on the economy. For example, deregulation, decrease of government benefits, and tax modifications (Bunjun, 2014). Nevertheless, relating these negative aspects to the documentary Made in L.A. (Carracedo, 2007) which is the main issue of increased risk of employment for both the first world and third world countries. In regards to, a switch from full time stable and secure jobs to part time unstable and insecure jobs. This reduces career growth for many employees, which they recognize, and thus switch jobs – where as they may not fit as well (Bunjun, 2014). As a result, globalization causes market inefficiency via labor market segregation and exploitation, unemployment and underemployment, unequal access to employment (Bunjun,
During this period the world trade has increased more than 300%, the world nominal gross increased by 250% and exports of goods and services increased by 340% (Gunter and van der Hoeven, 2004). These increases are mainly through the liberalization of world trade. The higher the income per country, the higher the increase of international trade (Gunter and van der Hoeven, 2004). The high income countries are mostly developing countries, because the developing countries had higher levels of protection than industrialized countries, they had a higher increase of international trade. Foreign direct investments as well as portfolio investments have decreased in low- and middle-income countries, high-income countries had a significant decrease and china and India had an increase (Gunter and van der Hoeven, 2004). The production of goods has been internationalized, such as assembling and producing products in different countries (Gunter and van der Hoeven, 2004). Opponents of globalization believe that the increase of economic drives multinationals in a “race to the bottom” to manufacture in countries with the lowest labor costs and the weakest labour standards (Gunter and Van der Hoeven, 2004). Proponents of globalization believe that if nations produce their products they are best in, will result in a more efficiency and productivity
... policies. People will continue to suffer in silence because of the world’s greed. So, while we enjoy our cheaply made goods and over consume the planet into demise, we never know of choose not to know the pain that went into the productions of those goods. Globalization may be championed as a gateway to financial growth for all nations, but only certain nations benefit from it. Global trading and integration has a negative effect on undeveloped nations and developed nations in many ways including; political systems, sovereignty, economy, way of life and much more. Earlier in the essay I asked ‘do the pros outweigh the cons when it comes to globalization’ and from my research I don’t see any real benefit. I don’t believe we should eliminate global business, but better the already lacking regulations and probably increase the standard of living equally for the world.
"The Foundations of Geometry: From Thales to Euclid." Science and Its Times. Ed. Neil Schlager and Josh Lauer. Vol. 1. Detroit: Gale, 2001. Gale Power Search. Web. 20 Dec. 2013.
Less developed countries are poor because they do not have adedquate capital resources for investment. Professor Nurkse stated that: “The main reason of vicious circle of poverty is the lack of capital formation”. A country which has poor finance is trapped in its own poverty. A country can get rid off from poverty if its rate of capital formation increases than the rate of population growth. Nurkse said: “On both sides of the problem of capital formation in poor countries a vicious circle exists.” So capital formation is the key to economic development by demand and supply of
The foundations of mathematics are strongly rooted in the history and way of life of the Egyptian people, dating back to the fourth millennium B.C. in Egypt. Egyptian mathematics was elementary. It was generally arrived at by trial and error as a way to obtain desired results. As such, early Egyptian mathematics were primarily arithmetic, with an emphasis on measurement, surveying, and calculation in geometry. The development of arithmetic and geometry grew out of the need to develop land and agriculture and engage in business and trade. Over time, historians have discovered records of such transactions in the form of Egyptian carvings known as hieroglyphs.
...S. and Stepelman, J. (2010). Teaching Secondary Mathematics: Techniques and Enrichment Units. 8th Ed. Merrill Prentice Hall. Upper Saddle River, NJ.
The liberalization of capital developments and deregulation, particularly of fiscal administrations, prompted a spurt in cross-border capital flows. The globalization of financial markets has triggered a rapid growth in investment portfolio ...
When I graduated from high school, forty years ago, I had no idea that mathematics would play such a large role in my future. Like most people learning mathematics, I continue to learn until it became too hard, which made me lose interest. Failure or near failure is one way to put a stop to learning a subject, and leave a lasting impression not worth repeating. Mathematics courses, being compulsory, are designed to cover topics. One by one, the topics need not be important or of immediate use, but altogether or cumulatively, the topics provide or point to a skill, a mastery of mathematics.