IB Econ HL Section B

Mortgage payments in the US are starting to be a leak of money, as the government is paying to those retired more than it is earning in taxes. However, these payments cannot cease and a solution will have to be found.

Malaysia is planning to join on the Trans-Pacific Partnership that United States is pushing to help its companies compete with counterparts in China and Europe.

The US Congress is expected to back a set of punitive tariffs on Chinese imports in order to compensate for the artificial lowering of the value of the yuan. China's currency makes its products very cheap. The US is engaging in this protectionism in order to protect domestic workers.

This article mentions a possible tariff to be applied on cheap chinese products in the US. Such protectionism would result in higher prices for consumer, and possible retaliation from China.

This article is about India cautioning the developed world against protectionist methods that prevent developing nations from engaging in specialization and taking advantage of comparative advantage.

Japan who specializes in the manufacturing of high-tech electronics is in a desperate need for rare earth metals. However, in the recent border disputes over an island located between the two countries, China had halted the shipment of the exotic metals.

This article talks about England raising the previously discounted tariff on energy.

This article is about Brazil's desire to buy fighter planes and other military vessels from France. This relates to this week's topic because France has an absolute advantage when it comes to military machines, so Brazil wants to purchase them.

This article is about the Russian automobile industry and it mentions the need for trade to improve technology.

This article is about the UK's record high trade deficit. This means that it imports more goods and services than it exports. This is because it does not hold a comparitive advantage in any production; it is cheaper to import, and have someone else produce a good, than it is to keep production at home.

This article is talking about the unbalance between rich and poor countries in free trade. Here the article is raising the question about whether Africa benefits from free trade, or if it actually hurts the economy.

One of the major problems in the Thailand, a country at political crisis, is the economic inequality between the rich and poor which is aggravating the political situation between the middle-class and low-class. This is relevant to this week's topic because a proper government is not placed in Thailand to redistribute the riches' wealth to the poor population.

This article is about Romania's intentions to cut public sector wages and pensions as a part of an IMF-led rescue plan. These pensions are a form of welfare payments.

This article is an example of the effects unions can have on company policy

This article shows how the stimulus strategy is effective, supporting the notion that Keynsian theory is the most effective economic theory.

This is article is about how Canadian sawmillers will not have to pay as many taxes now due to an increase in lumber prices. The sawmillers had to pay a sliding rate export tax inder a 2006 US-Canadian agreement. The rate of this business tax is now reduces 5%.

The Fedeal Reserve Bank is planning for an extended period of low interests due to American high unemployment rate and increasing inflation rate. This is relevant to this week's topic because lowering interests rates would increase disposable income for more consumption, encouragte the investors to lend more money in prospect of high return rates, and ultimately increase the aggregate demand to nourish the unemployment in US.

In the US, following its slow economic recovery, employment has been going up, people being able to find jobs again, and hearing the the economy is back on foot. However, this has also given people back confidence, and has led them to fell safer when investing, and thus started to invest more, once again. As a result of this increase in demand for loans, interest rates have also increased. The consequences are still unclear.

This article is about how bank customers in the UK are satisfied with the bank accounts. This shows that either they are happy with their current interest rates, or that they know they won't be able to get a higher rate on their deposit.

The Federal Reserve, the central bank of the United States, have promised to keep interest rates at rock-bottom levels for the time being. Low interest rates encourage investment by firms and spending by consumers. Rising interest rates have a negative effect on storable commodities.

This article is talking about Gordon Brown's policy that offers unlimited government guarantees to every bank in the country. It relates to this week's topic because Gordon Brown's aim is to keep interest rates as low to zero as possible.