Adam Smith, regarded as the father of economics, published his renowned multi-volume economics book entitled “Wealth of Nations” in 1776. Among his widely recognized concepts, the invisible hand theory, which suggests that markets converge to their equilibrium as if...
This study tries to empirically show that trade openness does, in fact, decrease the most readily available measure of militarism: military spending as a proportion of gross domestic product. By using data from twelve countries over a period twenty years, a linear regression model will be able to show the best estimated effects of several variables, including a measure of trade openness on military spending of gross domestic product.
This report examines the effects of corruption on a country’s ability to progress as a global economic power, and the implications of such effects on the country of Brazil. Already the largest economy in South America, Brazil has recently emerged as a major player in the global economy. However, the country has had a long standing battle with corruption throughout its history, an issue that threatens to derail its economic potential. How corruption affects a country’s economic progress as well as the sources of corruption in Brazil and possible solutions in combating it conclude the main discussion and analysis of the paper.
This research focuses on Slovakia, a fast developing Eastern European country, and a current member of the European Union. In recent years Slovakia has become a major attraction for foreign direct investment, in particular in the car manufacturing industry. It is important to understand the country’s background, as well as its economic progress in order to be able to see the country’s future potential. This research is set to prove a positive correlation between Slovakia’s entry in the EU (as well as adoption of the common currency - Euro) on the car manufacturing industry. The methods used to support this research include a literature review, as well as the historical and financial analysis of the three major car manufacturers in the country: Volkswagen Slovakia a.s., Kia Motors Slovakia, and PSA Peugeot Citroën. The analysis of the literature written on the subject, as well as the data collected during the research indicate that there is a positive relationship between Slovakia’s entry to the EU and the amount of FDI; therefore there is a positive correlation between the entry to EU and the car manufacturing industry. The adoption of the common currency can’t be positively linked to the amount of FDI in the car industry due to financial crises in Europe during the year following the adoption of the currency. Slovakia definitely remains on the radar of future investors due to its stable political and legal environment, attractive geographic location, and its continuous economic growth.
This paper will conduct research on the impact of the US - Peru Free Trade Agreement on both the United States and Peru. Taken into account will be the impact on export, import, labor right, biodiversity and the indigenous people. Furthermore, this research will investigate the possible impact of the US - Colombian Free Trade Agreement that was signed recently.
This paper explores the implications and policy considerations associated with the question as to whether or not Switzerland should forego their national currency (Swiss Franc) and pursue membership in European Monetary Union. Collectively analyzing existing research relating to this topic, this paper describes the many factors that need to be considered when attempting to answer this question including the currency union’s possible effects on trade and exchange rates, potential impact on the Swiss Francs role as a global safe haven currency, and also effects on seigiorage and government financing. Additional research questions are also mentioned as important areas of study that need greater analysis to help aid Swiss policy makers in deciding whether or not to join the European Monetary Union.
This paper provides an analysis on foreign direct investment and international trade, and how these two relate to each other. In addition, it attempts to analyze the possible effect of political instability on FDI, and thereby trade, for the country specific case of Algeria. It discusses numerous relevant preceding research papers, and it provides a country analysis and a research proposal which form the basis for a conclusion on these topics.
Unbalanced trade between the United States and China has existed for over 20 years. The U.S. trade deficit with China is one of the most serious economic issues for U.S. government and businesses. This paper analyzes the causes and impacts of the unbalanced trade between these two countries by comparing the history and current situations and testing the possible variables that may cause the unbalanced trade. The findings are significant. While U.S government argues that Chinese RMB’s undervaluation directly results in the U.S. trade deficit with China, the findings show that exchange rate doesn’t impact the trade strongly. Moreover, the fast growing GDP of China is a major cause of the unbalanced trade.