http://news.bbc.co.uk/2/hi/business/6701865.stm
Continuing about new presidents. President George W Bush has nominated Robert Zoellick, former deputy secretary of state, to be president of the World Bank.
I am not sure all of us know a lot about this organization. I myself learned a lot about it writing that entry. Here is a short description from Yahoo encyclopedia:
"International Bank for Reconstruction and Development - (IBRD), specialized agency of the United Nations, with headquarters at Washington, D.C.; also called the World Bank. It was formally organized in 1945, when 28 countries ratified the agreement; there are now 183 members. The bank not only makes loans to member nations, but, under government guarantee, to private investors, for the purpose of facilitating productive investment, encouraging foreign trade, and discharging burdens of international debt. The bank is self-sustaining and has maintained a profit on its lending activities. It is controlled by a board of governors, one from each member state.
The bank also operates the Economic Development Institute, which offers training in economic development for officials of member countries. Closely affiliated with the bank is the International Finance Corporation (est. 1956), which invests in private enterprises without government guarantee. The bank organized the International Development Association (1960) to extend credit on easier terms, mainly to developing countries. The group of institutions is known as the World Bank Group. Criticism that the IBRD-financed projects were environmentally destructive led the bank to establish an environmental fund (1990) providing low-interest loans for developing countries. Developing nations have complained that the IBRD imposes the free-market system on them, thereby discouraging planning, nationalization, and public investment."
Mr Zoellick would replace Paul Wolfowitz, who steps down on 30 June, because of a scandal in which he was involved. Wolfowitz was accused of a conflict of interest over a pay rise given to ex-bank employee. It wasn't the smartest to give a extremely hight rise only to one person with whom you have personal relations..
The new president was nominated traditionaly by the US side. Europeans nominate people for other offices.
Wednesday, May 30, 2007
Sunday, May 6, 2007
Fear of socialists?...
This is not so much a microecon article, but I thought its important enough. It is better than latest news about Paris sentenced 45 days in jail :)
http://www.forbes.com/feeds/ap/2007/05/04/ap3688594.html
Latest news from Europe! Nicolas Syrakozy won the French presidential election. I have noticed that American media are not paying much attention to what’s happening outside the US or Iraq. However, in nowadays globalized world, global news are important for almost every country. Apparently, US media want to keep international affairs away from American society. Or maybe the US news are so much important? I don’t know. Would you agree with my observation?
Back to the article. French voters had two presidential choices before Jacques Chirac will leave the office. First one- nationalist and socialist- Segolene Royal- who was the first woman so close to the French presidency. Second one, Nicolas Syrakozy, the president- elect, who is more conservative and will continue the policies of his predecessor. The voters turnout was an amazing 85%! This number alone shows how crucial the election was. The French weren't just picking a new president- they were deciding about the future direction of their country.
It is good news for the US business, because of America’s huge investments in France and Syrakozy's free market economical views.
“(…) despite recent political friction between the two countries over the war in Iraq and other issues, the French and U.S. economies remain deeply intertwined. Between 2000 and 2006, U.S. companies put $22.3 billion to work in France, while investing $15 billion in China and $5 billion in India, according to Quinlan's research.”
It is also good news for European Union. The result of the election shows a slow down in recently escalating nationalist attitudes in EU. Europe has too long nationalistic history to unite over a course of 15 years. (’92- the Treaty on European Union). The fast pace of integrating creates a variety of problems (such as struggle to ratify European Constitution). Fortunately enough, in the example of France, Europe is understanding the need to cooperate with others rather than isolate.
http://www.forbes.com/feeds/ap/2007/05/04/ap3688594.html
Latest news from Europe! Nicolas Syrakozy won the French presidential election. I have noticed that American media are not paying much attention to what’s happening outside the US or Iraq. However, in nowadays globalized world, global news are important for almost every country. Apparently, US media want to keep international affairs away from American society. Or maybe the US news are so much important? I don’t know. Would you agree with my observation?
Back to the article. French voters had two presidential choices before Jacques Chirac will leave the office. First one- nationalist and socialist- Segolene Royal- who was the first woman so close to the French presidency. Second one, Nicolas Syrakozy, the president- elect, who is more conservative and will continue the policies of his predecessor. The voters turnout was an amazing 85%! This number alone shows how crucial the election was. The French weren't just picking a new president- they were deciding about the future direction of their country.
It is good news for the US business, because of America’s huge investments in France and Syrakozy's free market economical views.
“(…) despite recent political friction between the two countries over the war in Iraq and other issues, the French and U.S. economies remain deeply intertwined. Between 2000 and 2006, U.S. companies put $22.3 billion to work in France, while investing $15 billion in China and $5 billion in India, according to Quinlan's research.”
It is also good news for European Union. The result of the election shows a slow down in recently escalating nationalist attitudes in EU. Europe has too long nationalistic history to unite over a course of 15 years. (’92- the Treaty on European Union). The fast pace of integrating creates a variety of problems (such as struggle to ratify European Constitution). Fortunately enough, in the example of France, Europe is understanding the need to cooperate with others rather than isolate.
Saturday, April 21, 2007
When more is too much...
http://news.bbc.co.uk/2/hi/business/6578289.stm
This is an interesting article about China's economy. We all know how much developed economies rely on cheap labor from the East. China is a leading supplier of that cheap labor. As I learned from the article they export annually goods worth 100 billion dollars. Impressive sum, hugh? I guess that this value is calculated from the export prices and not what we, as consumers, pay for it :)
I always thought that cheap labor is enough to lower the prices of the goods to minimum. It turns out that China also controls its currency- yuans. They lower the value of yuans to keep the products cheap and boost the export.
"US trade organizations have argued that by not letting the currency float freely, it gives Chinese firms an unfair edge on US companies, by making Chinese consumer goods artificially cheap."
US trade organizations oppose techniques used by Chinese government. My first thought was that it doesn't make much sense. US trade organizations would want to buy cheap goods and sell them for higher prices to Americans. The catch is that US is a big exporter as well. It is one of the reasons for America being the biggest economical power in the world. In today’s situation, because of Eastern markets, this position is endangered. It is now understandable why USA wants to cool down the pace of Chinas economical growth.
The trade organizations are upset so much, that they are trying to influence foreign economies to reform their currencies. Isn't that a great example of how international the trade is nowadays? A little bit scary but that’s capitalism.
I sometimes wonder what 18th and 19th century economists would say about modern economy. Is that what they thought would happen as a result of free international trade?
This is an interesting article about China's economy. We all know how much developed economies rely on cheap labor from the East. China is a leading supplier of that cheap labor. As I learned from the article they export annually goods worth 100 billion dollars. Impressive sum, hugh? I guess that this value is calculated from the export prices and not what we, as consumers, pay for it :)
I always thought that cheap labor is enough to lower the prices of the goods to minimum. It turns out that China also controls its currency- yuans. They lower the value of yuans to keep the products cheap and boost the export.
"US trade organizations have argued that by not letting the currency float freely, it gives Chinese firms an unfair edge on US companies, by making Chinese consumer goods artificially cheap."
US trade organizations oppose techniques used by Chinese government. My first thought was that it doesn't make much sense. US trade organizations would want to buy cheap goods and sell them for higher prices to Americans. The catch is that US is a big exporter as well. It is one of the reasons for America being the biggest economical power in the world. In today’s situation, because of Eastern markets, this position is endangered. It is now understandable why USA wants to cool down the pace of Chinas economical growth.
The trade organizations are upset so much, that they are trying to influence foreign economies to reform their currencies. Isn't that a great example of how international the trade is nowadays? A little bit scary but that’s capitalism.
I sometimes wonder what 18th and 19th century economists would say about modern economy. Is that what they thought would happen as a result of free international trade?
Sunday, March 4, 2007
Sweet crude oil
http://news.bbc.co.uk/2/hi/business/6399117.stm
This is an article on the ever rising price of oil. This time it is the sweet crude oil that turns out to be a type of petroleum that contains less than 0.5% sulfur. That makes it sweet, compared to a higher level of sulfur in sour crude oil.
Back to the story... The weather is also a factor that influences the local demand for heating oil. It is not surprising, that when a snow storms hit the biggest consumer of oil - US, the price of oil goes up. This is a natural rise caused by a shift of the whole demand curve. What intrigued me in the article is the OPEC policy to cut the supply of oil during the winter time. Not only the demand is higher but the supply is also smaller. Those facts combined with an unstable situation in Middle East, are the cause of the rise in price. It is just a shift of a line on a graph, but has such serious consequences.
The article also made me think about how important the price of oil is for the world economy. The statement that we live in an oil era is not exaggerated. The VC of most of businesses is depended on oil price. That means that it doesn't only influence the cost of using our cars but the price of every good or even service that we pay for.
This is an article on the ever rising price of oil. This time it is the sweet crude oil that turns out to be a type of petroleum that contains less than 0.5% sulfur. That makes it sweet, compared to a higher level of sulfur in sour crude oil.
Back to the story... The weather is also a factor that influences the local demand for heating oil. It is not surprising, that when a snow storms hit the biggest consumer of oil - US, the price of oil goes up. This is a natural rise caused by a shift of the whole demand curve. What intrigued me in the article is the OPEC policy to cut the supply of oil during the winter time. Not only the demand is higher but the supply is also smaller. Those facts combined with an unstable situation in Middle East, are the cause of the rise in price. It is just a shift of a line on a graph, but has such serious consequences.
The article also made me think about how important the price of oil is for the world economy. The statement that we live in an oil era is not exaggerated. The VC of most of businesses is depended on oil price. That means that it doesn't only influence the cost of using our cars but the price of every good or even service that we pay for.
Wednesday, February 14, 2007
" I see trees of green, red roses too"
http://news.yahoo.com/s/wisc/20070213/lo_wisc/10993944
This is local news about roses. Everybody buy roses for St. Valentines Day- this is an example of increase in demand in the period of time before this day that drives the prices up as well as the quantity demanded. I am not sure, but these changes in demand are caused by expectations for future.
What happened to supply and demand for roses this year is more than the natural increase in demand. Because of frosts in California this year roses crops decreased dramatically- just like after a hurricane in Connecticut this caused a decrease in supply of apples. Supply for roses was cut what caused an increase in price and a decrease quantity demanded.
In this situation, opposite to the ones that we talk about during class, those two changes happen in the same time. The roses market is much more complex than a graph with 2, 3 or 4 lines, but we can illustrate it using them what makes it easier to see why suddenly the price for roses doubles.
It happens because of a increase in demand and decrease in supply, which both contribute to this unusual jump of the prices.
This is local news about roses. Everybody buy roses for St. Valentines Day- this is an example of increase in demand in the period of time before this day that drives the prices up as well as the quantity demanded. I am not sure, but these changes in demand are caused by expectations for future.
What happened to supply and demand for roses this year is more than the natural increase in demand. Because of frosts in California this year roses crops decreased dramatically- just like after a hurricane in Connecticut this caused a decrease in supply of apples. Supply for roses was cut what caused an increase in price and a decrease quantity demanded.
In this situation, opposite to the ones that we talk about during class, those two changes happen in the same time. The roses market is much more complex than a graph with 2, 3 or 4 lines, but we can illustrate it using them what makes it easier to see why suddenly the price for roses doubles.
It happens because of a increase in demand and decrease in supply, which both contribute to this unusual jump of the prices.
Monday, February 5, 2007
More about the Super Bowl Ads
This is an article on Super Bowl Ads, that we discussed on the "main blog". I found more background to it in this article. The fact is that the bar is set higher and higher every year. Those commercials are the best of what producers can come up with. They are paying $2.6 mln for 30 sec of air time. This is the price for showing it to ablut 100mln viewers..
An interesting insight in this issue is that the ideas for three of those extremelly expensive ads came form the amateurs.
The article gives a link to all Super Bowl commercials. (HERE)
Its fun to see them againg.
Saturday, January 27, 2007
Lets get it started.
OK, so here it is- my ECON blog. I don't know how it's going to work but we'll find out soon. My experiences with online assignments are rather negative- I hope this would be different.
Ms. Mcdaniel, could you show us a sample blog, done as you would like our to be done?
Ms. Mcdaniel, could you show us a sample blog, done as you would like our to be done?
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