Chinese savings kept down US interest rates. Chinese labor kept down US wage costs. As a result, it was remarkably cheap to borrow money and remarkably profitable to run a corporation. Thanks to Chimerica, global real interest rates...sank by more than a third below their average over the past fifteen years. Thanks to Chimerica, US corporate profits in 2006 rose by the same proportion above their average share of GDP.” Basically the more China was willing to lend to the United States, the more Americans were willing to borrow.
Why did the stock price of FedEx outpace UPS after 2004? What does this say about the two firms entering a new market? Both stock prices for FedEx and UPS rose after 2004 because of the air transportation agreement between China and the US. There was a great deal of market opportunity during this time in China for both companies. FedEx had high stock prices because they had a larger presence in China then UPS did.
This means that Costco is doing a very efficient job in using its assets in creating sales. Costco’s equity multiplier has ranged from 1.88 to 2.27 from 1999 to 2008. The average equity multiplier in this time period was 2.06 compared to the industry average of2.34. Costco is slightly lower than the industry average. To increase their financial performance the company should increase their financial leverage and rely on more debt to finance their assets.
Immigrants from China built the Transcontinental Railroad, which brought our country together by connecting the East and West. Many have become scientists or engineers and have created numerous ideas and inventions to make our lives better. Immigration is the largest factor contributing to population growth and contributes over 2.25 million people to the U.S. population annually. (Elbel) The chart shows the U.S. has traditionally allowed relatively small numbers to immigrate, thus allowing for decades of assimilation. After the peak of about 8.7 million in the first decade of the 20th century, numbers went steadily down.
If we do not buy imported goods then they will not buy ours and without export revenue and foreign investments we would not be able to function financially. When exports increase so does the Gross Domestic Product (GDP). GDP is the dollar amount of all goods and services produced within the United States. When the GDP is high it signifies that our economy is healthy and stable. When companies can produce more due to demand they are able to hire more workers, which can lower the unemployment rate.
China is getting better and better by the second. The infant mortality rate is decreasing, literacy and education increasing, life expectancy higher and basic necessities like food, water, and shelter more available. Many of the problems they had with population are starting to go away with some new restrictions the put up. Their population mass could create the big armies and armadas of china and turn them into a well oiled war machine are could hone the economic status of china probably both though. With China having all these major points they could be on the rise for the next superpower
India which had well under two-thirds of China’s population half a century ago is projected to surpass China by 200 million people around 2050. Acceptance of Nobel economic laureate, Amartya Sen’s view that development is freedom, the greater opportunities available to young women when fertility is reduced or delayed is itself a keep indicator of development success and population policy can help realize these goals. It is well know that as incomes rise, fertility falls since women experience an increase of opportunity cost for their time. The causality between fertility and economic growth runs in both directions. China’s rapid economic growth since the early 1980’s can be attributed to its lower fertility rate.
The Influence of China’s demand for Australia’s resources on our Economy Globalisation has been occurring rapidly in the recent decades throughout the world which has resulted in the free movement of people, the advancement in technology and an increase in global trade. This has allowed countries around the world to integrate and influence foreign economies more dramatically. Trading can even go back to the times of World War 2 to the times of 2000 when Australia’s globalisation was increasing trade with Asia like China. China is a small country who has a population over just over 1.3 Billion, there economic growth rate stands at 9.6% [1] and as a result they have a reasonably high inflation rate of 6.2%. [2] The influence of China’s
Was The Great Wall of China Worth it? By Avi Parshan The Great Wall of China Is huge, it was built over a 2,000-year period, and GPS satellites measured it to be 5,488 miles long. The benefits of The Great Wall of China outweighed the costs of building the Great Wall because it helped the economy, improved protection and helped the country’s publicity. The Great Wall helped the economy. The amount of jobs in China increased because people were working on building the Great Wall, and the soldiers had to watch them.
In addition, the service industry in the U.S. keeps employing large numbers of illegal immigrants simply because they are a kind of cheap labor source that stays around for many years due to their sturdy work. (Mirande 61) Immigrants are added sources of economic growth spending billions with massive U.S. companies like credit cards, mortgage lenders, banks, insurers, phone carriers, and other consumer corporations. They bring roughly 600,000 to 700,000 new consumers to the economy every year. (LULAC 1) According to Business Week, 84% of immigrants are between the ages of 18 to 44, in their prime spending ages versus 60% of legal residents. By allowing illegal immigrants to obtain legal status to work and live in the U.S., they add a potential benefit to our economy by spending the money they work hard for and put back into our economy.