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Christopher P

China January foreign direct investment rises in sign of confidence - 0 views

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    Although the rate of economic growth in China has slowed recently, a high amount of Foreign Direct Investment in China shows that there is still a large amount of confidence in the economy. Investment increased 16.1% over last year, up to $10.76 billion. Growth has shifted away from manufacturing towards services, partly due to an effort by the government to restructure the economy. In addition, the FDI by China to foreign countries has increased by nearly 50% to $7.23 billion, showing that the country receives nearly the same amount in FDI as it provides to other countries, reflecting balanced investment,
Adil R

UAE, Russia in $5 billion investment deal - Khaleej Times - 0 views

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    I remember stumbling upon this article a couple of months ago and now i realise its relevance. The UAE is investing $5bn to Russia to improve its infrastructure which will not only benefit Russia and its citizens, but also leads to remittances back into UAE. This also leads to economic growth in every aspect for Russia, so it is mutually beneficial.
Landon F

China fuels Bitcoin surge to record high - Nov. 12, 2013 - 0 views

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    This article talks about how optimism in the Bitcoin from China has led to investment in it, which leads to a higher demand and higher value.
anonymous

The Rush to Coin Virtual Money With Real Value - 0 views

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    Money has become virtual with the introduction of virtual currencies such as bitcoin and ripple. Through sites such as bitcoin and ripple, which were the forerunners for online currencies, people can invest, transfer and convert money on the web with ease. It is simple and efficient. It is similare to an online bank. Bitcoin producer states that he made bitcoin to provide a more efficient "way to send money around the world". True to his word, it is efficient. A person interested in sending money online can open a bitcoin account. The individual would than transfer the amount of money he/she wishes to send to his account and send it to the designated individual person or place. Of course this transaction is not free, it requires bitcoins. A bitcoin is essentially 1/1000 of a penny. Amazing right. However, virtual currency is not real. If the police and government decide to crack down , the system will have to shut down. But for the most part, it seems they dont have the intention to.
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    Money has become virtual with the introduction of virtual currencies such as bitcoin and ripple. Through sites such as bitcoin and ripple, which were the forerunners for online currencies, people can invest, transfer and convert money on the web with ease. It is simple and efficient. It is similare to an online bank. Bitcoin producer states that he made bitcoin to provide a more efficient "way to send money around the world". True to his word, it is efficient. A person interested in sending money online can open a bitcoin account. The individual would than transfer the amount of money he/she wishes to send to his account and send it to the designated individual person or place. Of course this transaction is not free, it requires bitcoins. A bitcoin is essentially 1/1000 of a penny. Amazing right. However, virtual currency is not real. If the police and government decide to crack down , the system will have to shut down. But for the most part, it seems they dont have the intention to.
Paul J

The Chevy Volt's $89,000 production cost: A waste of money? - 0 views

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    This article discusses the new Chevy volt hybrid and debates it's future. it can be said that the company, in regards to this car, is going to start benefiting from economies of scale as in the article it states that the production cost will become cheaper however it is obvious that the company is not producing at the minimum efficient scale as allegedly for each volt it sells, the company loses $49,000
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    Currently, the Chevy Volt costs $89,000 per car to produce. However, GM is selling the car at about $40,000, offering even more discounts in certain places to reel in customers. GM argues that in the long run, the production cost will decrease and begin to bring in profit.
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    This article is an excellent example of the concept of long term vs. short term decision making by a company. Right now, GM is losing massive amounts of money whenever they make and sell another Chevy Volt, but they hope the investment will pay off in the long run.
anonymous

Brazil fails to cover external gap with foreign investment - 0 views

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    This article explains how much Brazil depended on foreign investments to aid the Brazilian economy. It also explains how there was much more of an account deficit than anticipated and thus the investments made in Brazil could not rebalance the economy.
Adil R

Obama Needs to Learn "Opportunity Cost" - 1 views

    • Adil R
       
      This article asses Obama's stimulus plan. It talks off how congress passed the ARRA stimulus package which injected $787billion into the government sector. Obama stated that this package wouldnt allow the unemployment rate to pass 8% however it reached 10%. Obama said that the depth of the recession couldnt be foreseen however there were many people who predicted it.
  • that unemployment with his bailout would likely reach 10 percent.
  • he also doesn’t understand basic economic concepts such as “opportunity cost.
  • ...38 more annotations...
  • experts promised that unemployment rates wouldn’t pass eight percent
  • creates money out of thin air via the Federal Reserve
  • as the cost paid when something is given up to get something else.
  • The federal government can’t spend money on “stimulus” projects without siphoning the money out of the economy as a whole
  • resulting inflation of the money supply dimishes the purchasing power
    • Adil R
       
      The article then goes on by stating Obama does not know the concept of opportunity cost. $787billion was taken out of the federal reserve to pay for federal programs resulting into the weakening of the current dollar value and inflation. This had an impact on everyone, nearly $7000 per household. Government jobs do not make a salary and therefore do not stimulate the economy. This can also lead to an increase in taxes whilst still barely benefiting the community. Opportunity cost kicks in here as the obama administration thought that this was the next big thing as apposed to injecting it to private sector. The article too talks about how private businesses contribute to the economy even if the company is failing as it still receives services and eventually the more efficient company will take over. Moreover they can make profits and they can better the economy by hiring or purchasing consumer goods.
  • taxpayers would likely spend or invest nearly all of that money taken from them
  • dollars with more valu
  • nvest more in their company, or pay higher dividends to investors
  • save the money and invest it in business growth
  • more consumer goods
  • $7,000 per household
  • defined
  • teachers, police officers,
  • irefighters on state
  • payrolls doesn’t stimulate the national economy
  • hurts
  • Government jobs
  • do not make a profit
  • Governments
  • hire employees and build overpriced buildings and roads
  • money is gone.
  • putting more funds into the hands of government is not efficient
  • reinvest those profits in the manufacture of new goods, jobs, and more efficient factories.
  • businesses employ people for a profit
  • replaced with more efficient businesses
  • allowed
  • to fail
  • government entities subsidize inefficient private corporations
  • allowed to fail
  • hey should
  • free market inefficient businesses
  • inefficient governments
  • never happens
  • government jobs require constant transfusions of taxes
  • static number of people employed
  • private sector is the only area of the economy that can lead to self-sustaining job growth and economic recovery
  • He should know that opportunity costs under ARRA demonstrate that the “stimulus” bill tipped the unemployment figures higher and worsened the economic recession.
Nehir D

PGG seeking alliance with multinational corporation - 0 views

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    This article talks about how Pendleton Grain Growers are seeking an alliance with CHS inc. to promote growth.
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    PGG is seeking approval from members to pursue an alliance with multinational corporation CHS Inc.Pendleton Grain Growers, a longtime local farmers' cooperative with roots back to the Great Depression, is looking to partner with a multinational agribusiness collective to spur new growth and investment.
Adil R

Man buys $27 of bitcoin, forgets about them, finds they're now worth $886k - 0 views

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    Since our topic this week is on exchange rates i thought it would be a good time to address a topic of interest to me - virtual money. the bitcoin is accepted as a form of currency by many and from the article, we can deduce that it has a high exchange rate. A norwegian man had bout $27 worth of bitcoins which now translates to $886,000. this value and exchange rate is un-paramounted and extremely high but there are reasons for this. Bitcoins are now being used as a form of currency for illegal trading - forged documentation serving as an example. This increase in demand has lead to appreciation for the value however many countries are just starting to recognise the bitcoins currency value. many owners are just starting to accept bitcoins as a form of payment in the hopes that it can appreciate and they can sell it for more in the future. However in the article we get an understanding that the bitcoin fluctuates greatly. This detracts consumer confidence however the sheer idea of investing in virtual money is enticing to many, increasing the demand for the bitcoin.
Christopher P

CAD narrows, but capital account fumbles: India Ratings - 0 views

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    The current account deficit in India has improve somewhat, to its lowest percentage of GDP in several years, due mostly to an increase in exports accompanied by a sharp decrease in the importing of gold. However, this improvement has been met by a similar change in the capital account, which has decreased and is expected to decrease further in the future due to a variety of factors involving foreign direct investment, commercial banking, and portfolio investment.
anonymous

America has unnderinvested in public goods that support job growth - 0 views

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    This interesting article from the economist, explains the crisis behind the fact that America is not investing enough in public education. This is a problem due to the fact that the future of the working force depends on the educational system.
Nehir D

Gold prices continue to crash: No need for Indian investors to worry? - 0 views

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    The article is talking about India is projected to grow by 6 per cent in the current fiscal while growth is expected to be steady in most of the Asia Pacific economies.It, however, cautioned that a weaker global risk appetite and a poor monsoon would pull down growth to around 5 per cent in 2013-14 fiscal. In India, poor monsoon seasons would pull growth down to around 5 per cent in 2013 and would reach 6.5 per cent.India's growth forecast has been lowered to 6 per cent in 2013 and 6.7 per cent in 2014 on weaker consumption and exports.
anonymous

Big brother and the oil company - 0 views

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    I really enjoyed this article, though it may be a little to subjective at times. However it still arises a great point, this article goes in depth about how the U.S. government has been giving out subsidies to big oil companies. This article also gives a little history and historical background on the topic dating back to when hugo chavez took power in south america. All in all it is a great article.
Jacques DP

Why Tyson Foods Is a Buy - 0 views

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    The article is an analysis of the Tyson Foods company. The article starts by surmising that the company is 30% undervalued. The article also continues into justifying why there might possible be the reduced price. The article also mentions some food products and talks about their elasticity or in-elasticity. According to the article many foods are inelastic because people buy only as much as they want to buy and the foods have a strong consumer base.
Nehir D

Partnership Will Help Kenyan Health Facilities Buy Equipment Read more: http://iipdigi... - 0 views

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    Nairobi, Kenya - A new partnership among Kenya Commercial Bank (KCB), the U.S. Agency for International Development (USAID) and General Electric Company (GE) will make $10 million in local financing available to small and medium enterprises in Kenya to develop private health facilities such as small clinics, diagnostic centers and hospitals."This first-of-its-kind transaction was designed in response to the lack of local credit for health facilities in Kenya to purchase much-needed medical and diagnostic imaging equipment. The risk-sharing agreement with USAID will allow KCB to take additional lending risks for clients in the health sector seeking to purchase GE equipment," USAID said in a January 28 press release.
Christopher P

South Africa: Economic Development Tops City's Agenda - 0 views

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    Ekurhuleni, a city in South Africa, is currently carrying out an agenda to fuel economic development in the city. The primary aim is to encourage investment in certain city-owned facilities, mainly a new airport, to combat unemployment, poverty, and inequality. The city is already in position to achieve economic growth, as it has several advantages including convenient location and highway access. This, combined with the ideas of the mayor Mondli Gungubele, are very good signs that Ekurhuleni will be able to gain investors and develop over time.
Nehir D

The Rut We Can't Get Out Of - 0 views

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    The article is talking about the federal government which has shut down today because of an impasse over the budge and in two weeks, the nation is set to hit its borrowing limit.The major problem in the articles is that there is an oversupply of global labor, an oversupply of global productive capacity and an oversupply of global capital. The jobs created low wages and part time. Growth in domestic manufacturing is still slow which will prevent the development of a country in their own production and prevent the large amount of profit they will get as a result of the domestic production.Business spending has fallen, rents of the houses falling where home prices have increased. The reason why its hard to get out from the rut is because they are no longer faced with a world in which supply-side economic remedies, easy money, reduced taxation, fiscal belt-tightening and deregulation can spur new capacity and the creation of well-paying private sector jobs.Countries that were recently poor find themselves with huge surpluses and sovereign wealth funds. The rich countries of the world, while still rich, struggle with monumental levels of debt, both private and public, and unsettling questions about whether they can compete globally.Also to clear this mess,developed nations need to put the huge surplus of underemployed workers back to work by any means, including big public sector investments to improve infrastructure and competitiveness.Moreover, a new economic multilateral ism with the developing world, to encourage them to re balance their economics away from savings and toward consumption, while we in the West must curb our addiction to credit and consumption is necessary.
anonymous

China to Push Rate Liberalization, Capital Account Opening in Shanghai Zone - 0 views

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    this article explores how china's central bank pledged to push forward with market-driven reforms on interest rates and capital account opening in a pilot free-trade zone set up in Shanghai.
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    China's central bank has resolved to push market driven reforms on interest rates and capital accounts. Residents will be allowed to do cross-border investments.
Nehir D

The balance of payments BoP until you drop - 0 views

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    this article talks about the balance of payment in china, and also explains how that for the first time in a very long time (1999) the country is experiencing more money leaving the country than enters it.
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    The article is talking about China which starts as for the first time since 1998 more money leaves China than enters it mainland China can now boast over 1m wealthy citizens (qianwan fuweng) each with over 10m yuan ($1.6m), says the latest edition of the "Hurun Report", which keeps track of China's capitalist high-roaders. But the mainland seems to be having trouble keeping them. According to the report, published on July 31st, more than 16% of China's rich have already emigrated, or handed in immigration papers for another country, while 44% intend to do so soon. Over 85% are planning to send their children abroad for their education, and one-third own assets overseas.
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