Group items tagged

This article is about increased foreign direct investment to China despite its weakening economic growth. Not only does China receive inflowing FDI, but it also invests outflowing FDI into other places such as Japan. The investment comes even as China's economy show signs of slowing from the stellar growth rates of years past as the government looks to shift the emphasis to structural reform rather than growth for its own sake. One pillar of the reform drive is to make the economy driven more by the service sector and consumers, ending its traditional reliance on investment and exports for growth. The obvious reason why foreign-based MNCs want to invest into China is because of increasing sales or decreasing their profits. The question is what kind of pull factors China has to attract such high levels of FDI. Stable economic environment, political environment, low labour costs are primal reasons.

This article is essentially connected to aggregate demand (investments), but the following part can be perfectly analyzed with the this week's topic, aggregate supply: "The investment will also help U.K. energy security by reducing hydrocarbon imports at a time of higher international oil and gas prices. "Too often we've been seen as part of the problem, rather than part of the solution because production output had fallen. But we're stopping the decline and increasing output and that will have a more positive impact on the U.K. economy," Mr. Tholen told The Wall Street Journal. The higher investment in new projects and redevelopment of older fields will help bring another 500,000 barrels of oil equivalent a day onstream by 2017, taking output up to around 2 million barrels of oil and gas a day by 2017 or earlier. The higher investment in new projects and redevelopment of older fields will help bring another 500,000 barrels of oil equivalent a day onstream by 2017, taking output up to around 2 million barrels of oil and gas a day by 2017 or earlier." High international oil and gas prices mean higher average costs of production - change in the costs of raw materials, because oil and gas are widely used in most production processes. This is the reason for the shift of the SRAS inwards. However, higher price level means that the oil production and oil-transforming industries will increase their output. This is also great for the sake of price of imports, which are relatively too high, allowing domestic industries to decrease their average costs of production, meaning that SRAS will increase. So we should consider effects of both aspects and add them up in order to get a real picture (overall effect of current oil and gas prices). Investments are shifting the LRAS curve to the right, because there are likely to be improvements in the quality of the factors of production (technological advancements, discovery of new resources and re-establishing the past (oil) fields,

China has attracted 5.77% more foreign direct investment (FDI) in the first 10 months of the year, compared to 2012. Government figures show FDI totalled $97bn (£60.2bn) over the period. In October alone, the country attracted $8.4bn - an increase on a year earlier but down from September's figure.

India has further eased rules on foreign direct investment in a range of industries in an attempt to support the sliding currency and boost growth.The reforms still need clearance from the full cabinet.

This article talks a lot about the recent "fiscal cliff" that congress or some government branch put together to ensure that the two United States parties, the democrats and the republicans, tried to come to some sort of agreement on where cuts can be made to try and fix the deficit. What's interesting about this article, more than the content itself, is the site it links to which talks a lot about how individual cities are doing their part to try and fix up the country. The fact is, the US has gotten some very bad grades lately (whatever that means), so mayors and representatives are getting citizens to invest in projects that will cost a lot of money but will go a long way toward a better future. Fixing up public resources, like water ways and levies, is crucial to trying to build a better community, even if the effects are long term. This is probably the closest we'll see to a sustainable economy.

This article has no direct correlation to supply side of an economy, as it mainly talks about Cypriot economy's bank crisis - credit crunch, predictions on GDP and changing patterns of banking (limitations to every-day withdrawals from ATMs). But the reason I chose this article is that they should aim at increasing the production side of an economy and so aggregate supply, shifting the LRAS curve to the right, and, in addition to that, structural reforms of the economy which overly depends on the banking. Particularly, Cyprus should undertake interventionist supply side policies, such as investments in infrastructure - roads, railways, harbours, airports and telecommunications all serve to lower production costs of all economic agents in a country. Or perhaps investments in technology and industrial policies which would increase the productive capacity of an economy.

This article opens a question whether circular flow in Britain still operates normally, because firms do not have a wide access to the savings of households (banks) anymore, which leads to the lack of investment (injections to circular flow). This also affects GDP as expenditure method involves spending by firms and means less or even negative GDP growth rate. Lack of the investment spirit is partially present because of the firms' fear of weak demand as well. Yet the latest policies might open the tap, especially the new Funding For Lending Scheme (FFL).

Well, the Saudis are going green, and GE's heading the project. Not only does this show the greater demand across the world for cleaner energy and better health coverage, but this is also a big PR move for GE. There's a lot of politics that go into selling your product, constantly trying to make as many people as possible feel like you're on their side, like you agree with them. Whether it's for the sake of increasing profits or if GE really does care we may never know, but a decision like this helps brand loyalty and will bring in more customers than it loses.

The article talks about the increasing investment in African countries due to falling interest rates and lackuster growth. Investing in African bonds gives off a high profit.

Basically, article is about Egypt's endeavor to find foreign investors for financing infrastructure projects and increasing its dwindling foreign currency reserves. Two of the most important terms derived from the week 2 are scarcity and opportunity cost. Turkish investments of $20 bn dollars and 500 mio euros from the EU (depending on Egypt securying the loan from IMF) in Egyptian infrastructure and foreign currency reserves deficit have an opportunity cost of spending that amount of money for other purposes. In this article, Egypt's foreign currency reserves and budget are scarce, so Egypt wants to get money to reduce unemployment rate via economic growth (4.5 %). Here we also have the factor of production - this is capital which comes from investments in physical capital (infrastructure) and in my opinion also human capital (reducing unemployment, improving education and healthcare perhaps ...). One thing that will be crucial for Egypt is the factor of entrepreneurship.

The situation occurring in India right now exemplifies the conflicts behind allowing MNCs to embed themselves in a developing economy. FDI is a great source of income for developing economy, being an instantaneous source of employment for in that economy and being a mutually beneficial setup for MNCs in need of additional labor. The problem is that FDI tends to just be a band-aid approach, helping to sustain the economy and cover its financial issues but not really allowing said economy to progress any further. What certain government parties are saying to the Indian government is that they want MNCs to be forced into some sort of investment in India's future growth if those companies are going to embed themselves in the country.

When you're in a situation like Ukraine's, the last thing you want to worry about is stabilising your countries financial situation. Many western consumers have invested in Ukraine and, with the recent turmoil, some might worry that their investment will be worth nothing, soon. However, Ukraine's Finance Minister has stated that there is a plan to "restructure" the Ukrainian economy without defaulting on all the bonds sold to foreign investors. This might give those anxious investors a bit of comfort, but it's still hard to say whether the minister will be able to keep his word...

This article is about the fluctuation of the bitcoin. A bitcoin is a distributed peer-to-peer digital currency that functions without the intermediation of any central authority, which was created in 2008 to prevent double spending. The bitcoins raised an enormous amount in the last four years. A man by the name of Kristofer Kroch invested about 27$ in 5000 bitcoins in 2009, that in today's rate measure up to 886000$.

The article relates more to monetary policies and demand-side policies but I believe that it can be connected to supply side policies. In fact, the government is spending a lot of money meaning that those money could be invested for supply-side policies. It doesn't say how much money the government will spend, but the increase in government spending could be related to supply side policies and an increase in the supply of products/goods and services.

Well, the title says it all. The governor calls for increased education to "leave a better Commonwealth for the next generation."

Governor Patrick discusses the importance of college and career readiness at the Future Ready Summit at the DCU Center in Worcester.

The article talks about the importance of budget planning and spending.

The article is a good example of how the government funds firms and different projects. The government expenditures are very important in order to keep a stable economy. When the the governmet realises that the economic growth slows down it has to react and invest in order to bring the economy back up.

This is an example of scarcity in the Mexican government. It is scarcity of capital and of labor. The scarcity of capital is the limited quality security resources. The scarcity of labor is not just of people, but as well a scarcity of good people. Many prison guards are corrupt, and there aren't a lot of them. This is also a good example of what I'll call a gambling opportunity cost. The government decided to not invest enough in security with the gamble that there could be a prison break. It would have been a good gamble if there were no prison break, however, it turned for the worse. Not only, of course, did the prisoners escape, but now the government needs to pay the wages of all of the sudden security requirements. They most likely are having to pay as much for the mistake as they would have had to pay to do it right the first time.

The article focuses on the trade relations between Germany and Pakistan. The amount of trade articles has risen from last years 2.32 billion to 2.89 billion dollars. The relations in between these two countries has grown every since the Pakistani ban for importing items because of the mad cow disease (about 10 years ago). Luckily, the ban and the disease blew away and the situation is under control. Germany and Pakistan are working toward a bilateral agreement of trade and looking forward to new investment in the future.

China's economic growth picked up pace in the July-to-September period, the first rise in three quarters. The world's second-biggest economy grew 7.8% from a year earlier, up from 7.5% expansion in the previous quarter. The official figures also showed growth in industrial output, retail sales and fixed asset investment. After years of blistering growth, China has seen its pace of expansion slow recently and there have been fears that growth may slow further. China has set a growth target of 7.5% for the year. Analysts said the latest numbers indicated that it was likely that Beijing would meet this.