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Marenne M

Tanzania scales up efforts to increase foreign direct investment - - 0 views

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    This article describes how the government in Tanzania uses regulations to control and encourage foreign direct investment. All owners of land, in this case both locals and foreigners, are obliged to invest in their land through farming or constructing buildings, thus encouraging economic growth. This means that if a foreigner wishes to own land in Tanzania, they must somehow invest in the economy to help the economic growth of Tanzania
Amanda Anna G

Foreign exchange fines: banks handed £2.6bn in penalties for market rigging |... - 3 views

  • The corruption of the world’s biggest currency dealers was laid bare on Wednesday when regulators imposed £2.6bn of fines on six major banks for rigging the £3.5tn-a-day foreign exchange markets.
  • Two UK and US regulators said they had found a “free for all culture” rife on trading floors which allowed the markets to be rigged for five years, from January 2008 to October 2013.
  • The chancellor, George Osborne, said: “Today we take tough action to clean up corruption by a few so that we have a financial system that works for everyone. It’s part of a long-term plan that is fixing what went wrong in Britain’s banks and our economy.”
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    Regulators have imposed fines on six major banks for rigging foreign exchange markets. George Osborne argues that action have been taken in order to clean up corruption so there will be a financial system that works for everyone. 
Hardy Hewson

Foreign trade drives fourth quarter German growth as domestic demand disappoints - 1 views

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    This article discusses Germany's GDP in detail
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    The attached article compares and contrasts the contribution made to aggregate demand by varying foreign and domestic demand. It states, that despite relative increases in demand overall (especially in public opinion), domestic demand figures are still low. Instead, foreign trade appears to make up the majority of aggregate demand in the overall economy.
Daniel Soto Aggard

Ireland the main beneficiary of US foreign direct investment - 0 views

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    Ireland is the number one destination in the world for US foreign direct investment (FDI), according to a new report. The study, which was commissioned by the American Chamber of Commerce Ireland, reveals that US firms have invested more than $277 billion here since 1990.
Amanda Anna G

U.S. be warned: Default would cause global crisis - CNN.com - 0 views

  • The impact of default could be catastrophic, and not just economically. As Secretary of State John Kerry asserts, this would send a message "of political silliness" that we "can't get our own act together" so we need to "get back on a track the world will respect."
  • As the U.S. partial government shutdown continues into almost a third week, the stakes are growing
  • This builds on earlier studies by the organization, including in 2011-12 which highlighted "intensified speculation about America's long-term stability," partly as a result of the downgrade by Standard & Poor's of the country's credit rating. This was prompted by the last near debt default of Washington in 2011.
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  • Then, as now, however, the country retains attractive qualities for many foreigners, including its popular culture and economic innovation.
  • And the fact remains that, in times of major urgency, Washington can transcend partisan divisions and work in the national interest.
  • This was demonstrated, for instance, during the 2008-9 financial crisis when Congress and the administration acted more swiftly and comprehensively than many other countries to counteract the worst economic turmoil since at least the 1930s. This has been key in enabling the country to recover more quickly from recession than some other areas of the world. While current problems should therefore be put into context, the situation is nonetheless troubling. And this is not the first time this year that a Washington political impasse has threatened negative economic repercussions
  • Only at the 11th hour did Congress in January agree a deal to prevent the U.S. falling off the "fiscal cliff." It is estimated that the automatic tax increases and spending cuts might well have taken the U.S. economy back into recession.
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    This article relates to equilibrium and price mechanism because it describes changes in impacts of the market. Stakes are growing, there are "intensified speculation about America's long-term stability" due to a downgrade in the country's credit rating, and an unstable state at the "fiscal cliff". These worries and a political impasse in Washington are some impacts that has threatened negative economic repercussions in the US, moving the market equilibrium. In response to changes in price, resources are allocated and re-allocated. However, profits are still able to be made making the equilibrium more stable without excess demand and supply, due to that the US has its popular culture and economic innovation, helping the country to retain attractive qualities for many foreigners.
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    I think this is a very serious matter, that could affect the world's over all economy if it goes on for a while. We can see that obviously a majority of the world's largest companies are american and based in america. If this effects any of those companies, the market they operate at will see a big change, both in the good way and the bad one.
Zube Iheobi

Banks brace for £3bn fine over foreign exchange rigging | The Times - 0 views

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    foreign exchange rigging displays the vitalness and potential benefits that can com from aving a good value to your currency
Marenne M

Companies with foreign debt likely to feel the heat when US hikes rate - 0 views

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    This article describes how the strengthening of the USD will cause problem for the countries which are in debt with the US. As the value of the US dollar rises, the countries in debt will have to compensate for a larger amount of money due to the increase in value of the USD. As a result, their debt increases.
Hardy Hewson

Mexico Ends National Crude Oil Monopoly - 4 views

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    After 75 years of barring foreign investment into her oil fields, the Mexican government (particularly President Enrique Pena) is set to repeal laws that had previously ensured a state monopoly of Mexican crude oil. As one of the biggest crude resources in the Western Hemisphere, this move poses a dramatic increase in North American crude exports, which will rise to second in quantity behind only Saudi Arabia. The bill to end the monopoly was approved by the Mexican Congress in mid-December and could see foreign investment eventually rise to approximately $15 billion per year. However, potential issues arise in the form of material delays, local opposition to drilling and a lack of pre-existing infrastructure.
Yassine G

BBC News - Apple, Microsoft and Adobe summoned by Australia - 1 views

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    This article talks about price discrimination. In Australia, the government things that the prices are higher than anywhere else in the world ( prices charged by foreign companies). In my opinion, this is because these major companies had the ability to discriminate, due to income, which is found to be higher and the geographical destination. It is a third degree discrimination. All the required conditions for discrimination were available. The companies have ability to set prices, as they are in an oligopoly competition. The consumers in other parts in the world are not likely to by the product and sell it to Australians. And price elasticity in Australis is found to be higher due to the higher income they have, 
Yassine G

Vote On Account 2014: Focus to shift back to the macros, says Religare Capital - Econom... - 0 views

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    This article really relates to the concept of macroeconomics and how it is influenced. It illustrates how elections could affect macroeconomics in addition to external and foreign factors. 
Pip Dop

News.Az - Programs for import substitution in Russia to be ready by April - deputy PM - 0 views

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    This article is very interesting with regards to one of this week's topics: import substitution. The concept of import substitution is often applied to LEDC's, reducing their dependancy on foreign imports and improving domestic output. However, this article is about Russia, who is adopting import substitution in response to deteriorating political relations with other nations. The Ministry of Industry and Trade wishes to minimise dependancy on imports from abroad, conjointly limiting the manipulating power of foreign nations.
Daniel Soto Aggard

Five banks fined €2.5 BILLION over rigging foreign exchange rates - 0 views

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    This article concerns the banks in the area of the UK. Banks such as: citibank, HSBC, UBS, and Royal Bank of Scotland. These banks have been fined at total of 2.5 billion pounds for rigging exchange rates. In order to receive more income.
Clemence Lafeuille

South Korea proposes 513% tariff on foreign rice after import caps scrapped - 4 views

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    This article explains how South Korea is now imposing an extremely high tariff of 513% on foreign rice (mainly from China) on top of the already existing quotas to try to protect the domestic market even more
Mariam P

Russians boost foreign-currency deposits in October -central bank data - 6 views

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    Russians had 3.856 trillion roubles' ($82.27 billion) worth of foreign-currency deposits as of Nov. 1, compared to 3.421 trillion roubles on Oct. 1, an increase of more than 12 percent. Their rouble deposits fell by 0.3 percent to 13.829 trillion roubles over the same period, according to the central bank.
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    The article presents an insight on what seems to be the most significant economic effect of the sanctions the EU has imposed on it in response to their invasion of the Ukraine.
Aleksi B

India Plans Price Controls on Patented Drugs - WSJ.com - 0 views

  • India plans to widen the scope of price controls on pharmaceuticals
  • The new proposals would extend price restrictions beyond generic medicines to apply for the first time to patented drugs
  • The plans come as Bayer AG BAYN.XE -0.17% Bayer AG Germany: Xetra €94.89 -0.16 -0.17% Nov. 15, 2013 5:35 pm Volume : 2.67M P/E Ratio 25.24 Market Cap €78.47 Billion Dividend Yield 2.00% Rev. per Employee €363,176 10/31/13 Bayer Boosted by New Drugs 09/13/13 Bayer Under Scrutiny in China More quote details and news » BAYN.XE in Your Value Your Change Short position is fighting an order from India's patent authority that required the Germany company to issue a license allowing an Indian generic-drug company to sell a less expensive copy of Bayer's patented cancer drug Nexavar.
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  • India sets prices for 74 generic medicines and is considering increasing the number of medicines covered by price caps to 348
  • Any attempt to restrict prices of patented drugs likely will rankle foreign pharmaceutical companies
  • The move raised fears in India that without price controls patented drugs might be unaffordable for a majority of the country's 1.2 billion people.
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    The article explains on how India are planning to put price controls on their drugs making them go for lower prices so that people can afford them.
Haydn W

Royal Mail shares soar 38% as Labour complains of knockdown price | UK news | The Guardian - 0 views

  • Royal Mail shares soar 38% as Labour complains of knockdown price
  • Ed Miliband blames government for underpricing in 'fire-sale of a great British insititution' as investors make £284 paper profit
  • The government has been accused of shortchanging taxpayers by selling off Royal Mail at a knockdown price after shares in the privatised postal service rose by 38%
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  • Miliband, the Labour leader, said the jump in the share price – which made an immediate £284 paper profit for almost 700,000 Royal Mail investors – showed that the privatisation was a "fire sale of a great British institution"
  • Royal Mail stock, which the government sold at 330p, leapt to 455p
  • Royal Mail's market value rose by £1bn to £4.3bn – confirming that it will join the FTSE 100 list of Britain's biggest companies.
  • The government had valued Royal Mail at a maximum of £3.3bn, and had attacked analysts' valuation of £4.5bn as "way out".
  • Frances O'Grady, general secretary of the TUC, tweeted: "Privatising #RoyalMail has become little different from selling five pound notes for four quid."
  • George Osborne said the privatisation had been a huge success.
  • Asked whether the shares had been sold too cheaply, the chancellor said: "All privatisations are done at a discount.
  • The National Audit Office, the public spending watchdog, will investigate the pricing of the float, but Cable dismissed the huge share price rise – which was bigger than that experienced on the 1980s flotation of BT and British Gas – as "froth and speculation" and said "what matters is where the price eventually settles".
  • The stockbrokers Peel Hunt said: "This is not 'froth'; it's real people buying, selling."
  • Joe Rundle, head of trading at ETX Capital, described the share price surge as a "dazzling stock market debut".
  • Private investors who bought their shares directly from the government will have to wait until at least Tuesday if they want to sell. About 690,000 people were granted 227 Royal Mail shares worth £749.10 (at the 330p float price) following overwhelming public demand for the shares.
  • The public applied for more than seven times the number of shares available to them, which meant nearly everyone did not get as many shares as they had asked for.
  • More than 36,000 people who applied for more than £10,000 worth of shares were prevented from buying any at all. About 40 people applied for shares worth £1m or more.
  • It is understood that about 20% of the shares available have gone to sovereign wealth funds – including those of Kuwait, Norway and Singapore – and other foreign funds. Royal Mail's 150,000 employees collected 10% of the shares free of charge, worth about £2,200 each at the flotation price and now worth £2,900. Employees were also allowed to buy a further £10,000 worth, but are not allowed to sell for three years
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    This article shows how demand for shares in the newly floated UK postal service Royal Mail has pushed the price up from 330p a share to 450p. This is the price in which demand is seen to be equal to supply, something the UK Government are being criticised for failing to notice as they believed 450p was a far to high price. The move itself if highly controversial and has been a hotly debated topic ever since it's proposal with many employees fearing that jobs will be lost.
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    I think this is really normal. Simply because private companies tend to have higher efficiency rates and therefore make more profits, this is the business part of the reason. Now if we consider the economical reason, I think that higher profits (deviants) will attract a lot more shareholders, this means higher demand. from the other side, shareholders will be willing to keep their shares as the company is making more and more profits, therefore less shares supply. So in short, more demand, less supply of shares could not lead to anything else except hiher prices and greater value of the company.
Haydn W

Falling oil prices offer the west a great chance to refashion itself. Let's seize it | ... - 1 views

  • Falling oil prices offer the west a great chance to refashion itself. Let’s seize it
  • For the past 18 months, the world’s biggest oil producer has been the US.
  • One first good result of this oil price shift, however, was witnessed at Opec’s meeting in Vienna last week. The once feared cartel of oil-exporting countries, with Saudi Arabia at its core, a cartel that at one time commanded more than half of global production, is now a shadow of its former self.
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  • the US will maintain this new standing for the foreseeable future, according to official projections.
  • It should be no surprise, then, that in the past rising oil prices were associated with recessions and falling oil prices with booms. If the oil price carries on falling back towards $50 a barrel, and if history is any guide, the western economy should respond – to the good.
  • But although particular companies may lose out, the first-round effect of this fall should provide good news. High oil prices depress economic activity. They suck money from consumer spending and redirect it to oil-exporting countries, which typically hoard it in elephantine foreign exchange reserves or unspent  bank deposits. It is a tax by the few on the many.
  • With the US needing to buy less oil on international markets and China’s growth sinking to its lowest mark for 40 years, there is now, amazingly, the prospect of an oil glut. The oil price instantly nosedived to its lowest level for four years, around $70 a barrel – down more than a third in three months.
  • Suddenly, the balance of economic advantage with Russia, no less dependent on oil and gas exports, will flip. Russia’s 2014 budget was based on an oil price of $100 a barrel. At $70 a barrel, the economy will contract by at least 3% in 2015, the country will run a balance of payments deficit and the government’s finances will spin out of control.
  • The chances of Russia sustaining a surrogate war in Ukraine have suddenly been reduced. All good news.
  • But western governments cannot hope that economic benefits will arrive automatically. These are new times.
  • Uncertainty and fear abound. Interest rates in Britain alone have been pegged at 0.5% for more than five years. But still business is reluctant to invest, not knowing what technologies to back or not knowing how much demand there will be for new products and services. We live in an era of stagnation, “secular stagnation”
  • So falling oil prices offer the world economy a great opportunity. But if it is not leapt upon purposefully by aggressively expansionary economic policy, secular stagnation might worsen.
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    The recent fall in oil prices, largely due to America's newfound dominance in the market, will cause Russia to experience a balance of payments deficit, according to this article from the Guardian. This is based on Russia's overestimate of the forecast for the global oil price and can be said to be an example of how global prices often influence balance of payments for countries, especially when it concerns national resources.
Samuel Choi

RBI cautious on response to gold import surge - 0 views

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    India, the world's second-largest gold-consuming country, is battling a balance of payments crisis as the gold import industry grew exponentially in a short amount of time. Though the spike in the import numbers is clear, no clear action has been taken yet; policymakers, however, agree that restrictions must be placed on private trading houses. Private jewelry exporters are the main customers and account for a massive number of the bulk for the demand of gold. "India sharply restricted gold imports in early 2013 as the country battled a balance of payments crisis triggered by the U.S. Federal Reserve's announcement that it would start to ease its programme of quantitative easing. But it eased some of the measures after India's current account deficit fell sharply from the record high of 4.8 percent of gross domestic product in the fiscal year ended in March 2013 to 1.7 percent in the quarter ending in June."
Amanda Anna G

Balance of payments narrows but remains in surplus for fourth year in a row | The Finan... - 0 views

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    This article talks about the balance of payments in India. The trade deficit rose which caused an increase in foreign exchange reserves.
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    This article is about the balance of payment in India. It has narrowed, but still a surplus remains for the fourth year in a row
Clemence Lafeuille

China to invest $20bn in struggling Venezuela - 0 views

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    This article is about China's FDI into Venezuela. Because of the recent drop in oil prices, Venezuela is suffering so China is placing FDIs in deals that include technology, housing and urban planning. The hope here is to develop a relationship between the two nations, but as we have seen in class it might not be truly beneficial to the LEDC.
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