A fall in oil prices should cause a reduction in transport and fuel costs for firms. Consumers who will also benefit from the lower prices of transport and fuel. The lower oil prices will effectively increase their disposable income and enable them to spend more on other goods Because oil is the most traded commodity …
The world economy is already entering a very deep recession, with GDP falling by an estimated 20-25%. Unemployment will rise very fast as large parts of the economy close down. An optimistic assessment is that the economic shock will be short-term, policymakers are responding with as much monetary and fiscal help as they can, and …
Readers Question: Undertake an evaluation of the causes of economic instability and the role, if any, that the government can play in reducing economic instability by constraining their discretion in policy making. Economic instability involves a shock to the usual workings of the economy. Instability tends to reduce confidence and lead to lower investment, lower …
The highest rates of obesity in the world are found in the small pacific islands, Nauru, Cook Islands with close to 60% of the adult population meeting definition of obesity as measured by the BMI (body mass index) Excluding these small pacific islands (with very small population) the greatest levels of obesity are found in …
Countries with the highest government spending as a share of GDP. The countries with the highest levels of government spending as % of GDP are predominantly Western Europe and Scandinavia in particular. The countries with the lowest government spending as a % of GDP tend to be poor developing economies. The one notable exception is …
Globalisation refers to the increased integration of the world economy. The process of globalisation involves increased trade, greater mobility of labour and capital and the increased interdependence of national economies. There are many aspects of globalisation that are irreversible. Improvement in transport and communication. Air travel has made it easier for people to travel around …
The great recession refers to the economic downturn between 2008 and 2013. The recession began after the 2007/08 global credit crunch and led to a prolonged period of low/negative growth, rising unemployment and a period of fiscal austerity. In particular, the great recession highlighted problems within the Eurozone which experienced a double-dip recession and high …
Readers Question: why some countries are more successful in attracting Foreign Direct Investment than others? Foreign direct investment (FDI) means companies purchase capital and invest in a foreign country. For example, if a US multinational, such as Nike built a factory for making trainers in Pakistan; this would count as foreign direct investment. In summary, …