Kiwi firms positive outlook
This article talks about the benefits that the Global Financal Crisis had on business. It argues that the GFC "...put Kiwi businesses through the mill. Most have come out the other side leaner, tighter and more focused." According to the article, New Zealand businesses are more agile and can more easily adapt to changing market conditions than can business in Europe, the U.S., and Australia. This is interesting because we have mainly focused on negative effects of the GFC thus far in class, and the article shows how it may have been beneficial in the long run to some.
Friday, June 1, 2012
Reflection
a) I believe that learning how interdependent the world's economies are is directly applicable to understanding how the world works. For example, it is important to know that even though a financial crisis in one part of the world may not immediately hurt the economy of a country on the other side of the globe, eventually there will be some affects. These affects can range from a decrease in foreign demand for domestic goods to a decrease in supply of money for investing.
b) I am interested in learning more about the appreciation and depreciation of currency. I would like to cover the effects of both more in depth.
c) I would tell the student to enjoy the class. With the right attitude, the readings can be very intriguing and researching one's (potential) study abroad destination can get very exciting. I am much more motivated now to studying abroad, particularly in New Zealand, now that I have done some research on the country.
b) I am interested in learning more about the appreciation and depreciation of currency. I would like to cover the effects of both more in depth.
c) I would tell the student to enjoy the class. With the right attitude, the readings can be very intriguing and researching one's (potential) study abroad destination can get very exciting. I am much more motivated now to studying abroad, particularly in New Zealand, now that I have done some research on the country.
Monday, May 28, 2012
Week 9 blog post
Smokers save Govt cash, says report
This article details how smokers can be beneficial to the government deficit. With high tobacco taxes, cigarette smokers contribute a significant amount of money to the government in taxes. In addition, the shorter life expectancy of a smokers reduce the cost of aged care provided by the government. This relates to our class as this has a direct effect on government spending.
The article also talks about the supply and demand of cigarettes. As the government raises the price of cigarettes by 10 cents (through taxation), consumption falls by 5 percent. This shows the effect that price has on quantity demanded of cigarettes, or, the price elasticity. The article relates to the class in that it talks about the relationship between supply and demand.
This article details how smokers can be beneficial to the government deficit. With high tobacco taxes, cigarette smokers contribute a significant amount of money to the government in taxes. In addition, the shorter life expectancy of a smokers reduce the cost of aged care provided by the government. This relates to our class as this has a direct effect on government spending.
The article also talks about the supply and demand of cigarettes. As the government raises the price of cigarettes by 10 cents (through taxation), consumption falls by 5 percent. This shows the effect that price has on quantity demanded of cigarettes, or, the price elasticity. The article relates to the class in that it talks about the relationship between supply and demand.
Wednesday, May 23, 2012
Beware of Greeks Bearing Bonds
a) To me, the most interesting part of the reading was the part about Greeks paying, or rather not paying, taxes.
"The Greek people never learned to pay their taxes. And they never did because no one is punished. No one has ever been punished. It’s a cavalier offense."
Most surprising to me was that even doctors who make millions of dollars per year report incomes under 12,000 - low enough not to pay any taxes. This is drastically different from the culture of the U.S. where tax fraud is not only very strictly monitored but also not socially acceptable.
b) Greece's economy threatens the rest of Europe because their economies are so intertwined. When Greece joined the European Union the convinced the other countries that they would be a safe, stable economy. This led foreign countries and investors to invest in Greece's economy. Not only will those investments be lost, but as Greece uses the Euro, the value of the Euro will depreciate.
c) Raising taxes and decreasing government spending will significantly decrease GDP. After increased taxes, consumption in Greece will presumably decline. In the GDP equation (GDP = C + G +I +Ne) both consumption and government spending will decrease.
"The Greek people never learned to pay their taxes. And they never did because no one is punished. No one has ever been punished. It’s a cavalier offense."
Most surprising to me was that even doctors who make millions of dollars per year report incomes under 12,000 - low enough not to pay any taxes. This is drastically different from the culture of the U.S. where tax fraud is not only very strictly monitored but also not socially acceptable.
b) Greece's economy threatens the rest of Europe because their economies are so intertwined. When Greece joined the European Union the convinced the other countries that they would be a safe, stable economy. This led foreign countries and investors to invest in Greece's economy. Not only will those investments be lost, but as Greece uses the Euro, the value of the Euro will depreciate.
c) Raising taxes and decreasing government spending will significantly decrease GDP. After increased taxes, consumption in Greece will presumably decline. In the GDP equation (GDP = C + G +I +Ne) both consumption and government spending will decrease.
Monday, May 21, 2012
Weekly Blog post - Week 8
NZ rated highly for investment safety
This article reports that New Zealand has been ranked, according to Dun and Bradstreet's global risk (GRI) indicator, fourth in its region and in the top 20 in the world for investment safety. This is the result of New Zealand having relatively low economic uncertainty. While this does show promise for New Zealand, some are still concerned that the uncertainty in Western Europe could lead to some deterioration in New Zealand.
Economic uncertainty is one factor that firms consider when deciding whether or not to expand their business into a country. New Zealand's high world rankings in this category add to the attractiveness of the country as a place to start a new business or expand a business into. This directly relates to our consulting firm project where we had to evaluate our study abroad country based on its economic conditions.
This article reports that New Zealand has been ranked, according to Dun and Bradstreet's global risk (GRI) indicator, fourth in its region and in the top 20 in the world for investment safety. This is the result of New Zealand having relatively low economic uncertainty. While this does show promise for New Zealand, some are still concerned that the uncertainty in Western Europe could lead to some deterioration in New Zealand.
Economic uncertainty is one factor that firms consider when deciding whether or not to expand their business into a country. New Zealand's high world rankings in this category add to the attractiveness of the country as a place to start a new business or expand a business into. This directly relates to our consulting firm project where we had to evaluate our study abroad country based on its economic conditions.
Friday, May 18, 2012
How Walmart Is Changing China
a) I found the passage on the pressure on Walmart to become for environmentally friendly particularly interesting. To me, this is a great example of the "Environmental Kuznets Curve." As Walmart grew into a multi-national corporation, they became more and more concerned with the amount of waste they produce. While this may have been the result of public pressures (the company had earned the label of "environmental despoiler"), it still shows that as income increases past a certain point, pollution decreases.
b) From the article, we see that multi-national (such as Walmart) can have a significant impact on the economics and culture of a country (such as China). As Walmart started to move in to China, new environmental standards began to develop. Not only did Walmart have to comply with these standards, but so did its competitors and suppliers.
c) Multinational firms play a huge role in integrating various cultures. Not only do multinational firms bring in goods from other cultures, but often times bring in workers from other countries as well. As a developed country, New Zealand hosts many multinational firms. These firms make up a significant portion of New Zealand's GDP.
b) From the article, we see that multi-national (such as Walmart) can have a significant impact on the economics and culture of a country (such as China). As Walmart started to move in to China, new environmental standards began to develop. Not only did Walmart have to comply with these standards, but so did its competitors and suppliers.
c) Multinational firms play a huge role in integrating various cultures. Not only do multinational firms bring in goods from other cultures, but often times bring in workers from other countries as well. As a developed country, New Zealand hosts many multinational firms. These firms make up a significant portion of New Zealand's GDP.
Monday, May 14, 2012
Week 7 blog
Kiwi dollar dips after weak retail stats
This article is about the decrease in the exchange rate of the Kiwi dollar. The article attributes this most recent dip to a drop in core retail sales in New Zealand. This article also mentions how both the New Zealand and Australian dollar are greatly affected by the economic status of Europe.
This relates to class, for one, because it has to do with exchange rates from country to country. We just completed a worksheet where we had to convert U.S. dollars to the currency in our country, and after this dip in the Kiwi dollar, the value would have changed. It also relates to the broader concept of our class that is a global economy. What happens in Europe not only affects European countries, but all countries around the world.
This article is about the decrease in the exchange rate of the Kiwi dollar. The article attributes this most recent dip to a drop in core retail sales in New Zealand. This article also mentions how both the New Zealand and Australian dollar are greatly affected by the economic status of Europe.
This relates to class, for one, because it has to do with exchange rates from country to country. We just completed a worksheet where we had to convert U.S. dollars to the currency in our country, and after this dip in the Kiwi dollar, the value would have changed. It also relates to the broader concept of our class that is a global economy. What happens in Europe not only affects European countries, but all countries around the world.
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