Group items tagged

the free trade between Korea and US have barrier from politics.

Japan, as we know, was devastated by the earthquake last year. This article is just thanking the world for all the aid. This article indirectly shows that the right sort of aid to a country with a stable political sector will ultimately help the country. 

This is an article about how there is more FDI going towards Nigeria and other parts of Africa. This will help the African nations if the politics around the investment are controlled. Usually there will be a increase in the wealthier population and an increase in the poorer population without much growth to the middle class

This article is saying how a land as barren as that of Nevada, can still make for good trade. Nevada has made itself a place where questionable events may be held. By doing this they give them self the comparative advantage in tourism. Tourism may not seem like a good but it is. Nevada, by hosting these events, give the tourist an incentive to come. Nevada has made itself more profitable than other tourist destinations by having things such as Boxing and Prostitution. In the interstate/international market for tourism, Nevada has made itself a top competitor.  In the economic terms, Nevada can produce certain services (prostitution, casinos, boxing,...etc) with less opportunity costs (prison, fines, fees,...etc) than the leading competitor. Also it is in a prime location. People from all over the states can fly or drive to Nevada to see the shows and events that would be illegal elsewhere.  This truly shows that with smart planning, any country/entity has the ability to trade successfully. 

Egypt is wanting a $3.2 billion loan from the International Monetary Fund to prevent a decline in the Egyptian economy, mainly caused by the political instability in the recent years. However leaders are concerned about the high level of debt as a result of borrowing loans.

The price on alcohol drinks are set to a minimum price. Not only it is illegal, but it is also to reduce the number of alcohol drink being consumed by the consumers.

This article talks about a British car plant which closes with no industrial action. It can be seen as a market failure.

"Chancellor tells Tory conference in Birmingham that benefits cap will ensure no unemployed family receives more money than families who work" (from the article)

This article is about how the Argentinian government is protecting the domestic production of BlackBerrys in order to "cut foreigners' share of Argentina's mobile-phone market". Even though this seems to be a valid case of protectionism, it will "cost $23m upfront, plus $4,500-5,000 a month per worker, some 15 times more than in Asia". This is because Asian laborers and factories have already perfected the production of cell phones. They have the 'factor endowment' in the production of cell phones. This is because to start a factory in Asia, the price is already low. Also the labor is cheap and skilled. The start up price for this endeavor is already going to be $23m, they will also have to train the workers and pay them more than they would if the Argentinian companies outsourced the production to Asia. Another problem with the domestic production of cell phones in Argentina is that Argentina, at this moment, is not known for their production of cell phones. They are not a place in which companies like Motorola or Nokia look for to manufacture their products.  Argentina could do this but it will take them a long time before they clean of their capital debt. In the short run, they will not make any money but nobody knows for sure what the long run has in store for this unorthodox market. In my opinion, Argentina should focus its money on something that will be profitable not only in the long run but also in the short run. This is possible. Argentina has a factor endowment, its tourism. It does not take that much money and effort to increase the amount of tourism in a country that is obviously beautiful and worth seeing. Even if they were not to invest in tourism, they could focus on, for instance, the exporting of more beef or fish. These are things that people already are accustomed to getting from Argentina. It all bundles down to this: when you think about Japanese production, you think cars and phones. When you think about Argentinian production, you

In this article, the writer states that people should trust government iflation numbers. However, I do not agree with the article because government plans everything according to politics and economics.

Excellent article, Ozge, and I agree with you, maybe we should trust our pockets more than the government numbers when it comes to inflation.

The article is about the EU spending increase and the UK's objection to that.

The might have some right as this might cause problems.