Economics HL - Jacob Solomon's group - Year 1

This article reports that Ukraine is thinking to raise its tariffs on various imported goods. Since Ukraine joined the WTO, its trade deficit has been increasing. The increase in trade deficit suggests that the international market is too competitive for the Ukrainian goods and putting them at a disadvantage. To respond to this issue, the Ukrainian government is thinking to raise tariffs so as to protect the domestic goods from aggressive international competitions.

Many industrial associations in India are displeased with an increase in the power tariff, because "It would not only prevent new industries from coming to the state but may also lead to closure of the existing ones." Power is a service high in demand among large industries, and making it more expensive to use external producers will harm businesses and firms in India.

It is interesting to receive a totally different perspective on the issue that China keeps its currency artificially low. In this article, it actually says that the benefits to the US of China manipulating its currency far outweighs the costs. The reason is that the consumers get cheaper goods, which are essential goods such as toys and clothes. The other reason is that when the Chinese government is constantly buying dollars to keep Chinese yuan low, it helps to stabilize the price level in the US because the imported goods do not become more expensive, and it also helps to keep the interest rate low. This is beneficial to the US economy.

The Swiss national bank (SNB) said it would "no longer tolerate" a euro rate below 1.20 francs. "The SNB will enforce this minimum rate with the utmost determination and is prepared to buy foreign currency in unlimited quantities. The massive overvaluation of the franc poses an acute threat to the Swiss economy and carries the risk of a deflationary development," it said.

Unemployment is a huge issue that is coming from the eurozone economic challenges. There is a negative growth, and increasing unemployment rate. Changing the value of currency, and having difficulties stimulating economic growth are contributing to the problem. The economy is slowing down, which inevitably leads to higher unemployment.

The price of crude oil is said to be the underlying reason for the effect of the Rupee weakening.There is downward pressure from losses in the domestic shares. "Importers looking to meet month-end import commitments weighed"

The United States hit Chinese solar companies with punitive import tariffs of 30 percent or more, ruling they had dumped cut-price solar panels into the U.S. market. Several of the Chinese companies and a solar trade group opposed to the tariffs denounced the duties, and said they would drive up costs for the clean energy source, stunting its fast growth.

The article addresses the trade between the United States and China. The trade between these two countries has swollen to a record $295 billion in 2011. Though, the trade doesn't seem as nice as it actually is, and Obama has filed 8 cases against China at the WTO since 2009. On the other hand there is Romney, who says that Obama hasn't been aggressive enough, so if he gets elected it seems that a lot is going to change.

In order to protect its domestic industries from European subsidized-sugar, Canada places high duties (tariffs) on imported sugar. This article details how local firms are benefiting due to a ruling that allows these trade barriers. While consumers would benefit from free trade because they can purchase sugar at a low price, it would have a harmful effect on domestic firms, which is why protectionist measures are put in place.

IT'S election season in America, which means that China is in the rhetorical crosshairs. Both President Obama and Mitt Romney have been complaining about Chinese economic misbehaviour, but Mr Romney has attacked Mr Obama especially viciously on the subject of currency manipulation and the administration's failure to label China a manipulator and slap it with tariffs. The article is tring to decide whether China should have a number of tariffs put on it to try to stop the number of exports or whether it is to late for this action.