33227749 How Globalization Affects Countries and Markets

8/8/2019 33227749 How Globalization Affects Countries and Markets

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How Globalization affects Countries & Markets

2010-06-18 15:37

Joshua Konov - economics

How Globalization affects Countries & Markets

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This is ongoing - updated article/blog reflecting ever changing GlobalMarketplace and some individual countries' economies

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______While the markets are becoming more globalized and productivity is

being propelled by ever improving high technologies, some

economies as Chinese and Indian are growing rapidly thus becoming

real powers in industrial production, however the old "science" of

Western Economics is changing very slowly not being able to

conceptualize these undergoing changes. The "old" system ofEconomics firmly believes that:

"The main motivations for the rapid expansion of multinational activity are as follows:

Higher profits and a stronger position and market access in global markets

Reduced technological barriers to movement of goods, services and factors of production

Cost considerations a desire to shift production to countries with lower unit labour costs

Forward vertical integration (e.g. establishing production platforms in low cost countries

where intermediate products can be made into finished products at lower cost)

Avoidance of transportation costs and avoidance of tariff and non-tariff barriers

Extending product life-cycles by producing and marketing products in new countries

The urge to merge the financial incentives created by the global deregulation of capital

markets is making it easier to achieve acquisitions and mergers and thereby encouraging the

external growth of a business"

In the foundation of modern days Capitalism arethe Transnational Corporations, however the role ofthese conglomerates is very limited if not negativein solving problems of rising debt, of accelerating
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genuine poverty around the world and ofenvironmental issues;

Introduction Norms controlling activities of TNCs in UDHR and ICESCR Whyand how these TNCs are responsible for environmental damages and harms.Three catastrophic disasters in human history International Guidelines controllingTNCs activities Are these Norms and guidelines are enough to hold these TNCsliable Need of international binding regulations Recommendations Concludingremarks

Transnational corporation liability for environmental harm

Before starting my presentation on present topic that is transnational corporationliability for environmental harm, I would like to say that this seminar presentation

is only an approach paper presenting set of issues involved which in the course ofdirection take us to the steps of suggestions as far as the TNCs liability forenvironmental harms are concerned. Or I can say that this is the first step of myresearch work.

To begin with let me first briefly explain to you, what TNCs or MNCs basicallyare?

Transnational corporation (TNC), also called multinational enterprise (MNE), is acorporation or enterprise that manages production or delivers services in morethan one country. It can also be referred to as an international enterprise.

The Norms specifically define a transnational corporation as an economicentity operating in more than one country or a cluster of economic entitiesoperating in two or more countries whatever their legal form, whether in theirhome country or country of activity, and whether taken individually orcollectively. The working group defines the phrase other business enterprise asany business entity, regardless of the international or domestic nature of itsactivities, including a transnational corporation, contractor, subcontractor,supplier, licensee or distributor; the corporate, partnership, or other legal formused to establish the business entity; and the nature of the ownership of theentity.

Very large multinationals have budgets that exceed some national GDPs.Multinational corporations can have a powerful influence in local economies aswell as the world economy and play an important role in international relationsand globalization. It is beyond dispute that TNCs are now the leading vehiclesfor economic globalization. According to UN Conference on Trade AndDevelopment (UNCTAD). In 2002, global sales of TNCs reached $18 trillion forworld exports.


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Throughout the past half century, states and international organizations havecontinued to expand the codification of international human rights law protectingthe rights of individuals against governmental violations. In parallel withincreasing attention to the development of international criminal law as a response

to war crimes, genocide, and other crimes against humanity, there has beengrowing attention to individual responsibility for grave human rights abuses. Thecreators of this ever-larger web of human rights obligations, however, failed topay sufficient attention to some of the most powerful non state actors in theworld, that is, transnational corporations and other business enterprises. Withpower should come responsibility and international human rights law needs tofocus adequately on these extremely potent international nonstate actors.

Transnational corporations evoke particular concern in relation to recent globaltrends because they are active in some of the most dynamic sectors of nationaleconomies, such as extractive industries, telecommunications, information

technology, electronic consumer goods, footwear and apparel, transport, bankingand finance, insurance, and securities trading. They bring new jobs, capital, andtechnology. Some corporations make real efforts to achieve internationalstandards by improving working conditions and raising local living conditions.They certainly are capable of exerting a positive influence in fosteringdevelopment.

Some transnational corporations, however, do not respect minimum internationalhuman rights standards and can thus be implicated in abuses such as employingchild labourers, discriminating against certain groups of employees, failing toprovide safe and healthy working conditions, attempting to repress independenttrade unions, discouraging the right to bargain collectively, limiting the broaddissemination of appropriate technology and intellectual property, and dumpingtoxic wastes. Some of these abuses disproportionately affect developing countries,children, minorities, and women who work in unsafe and poorly paid productionjobs, as well as indigenous communities and other vulnerable groups.

It is no doubt that environmental consequences of TNCs behaviour are multipleand substantial, and here I am going to discuss these environmental consequencesof TNCs."

"Crediting" is a economic "tool" of the Capitalism to allow

acceleration of startup businesses and higher consumption, however

the "crediting" could properly function in economic growth with

short self adjusting recessions but the most recent developments in

world economies do not support such consistent gradual

development thus "crediting" started bringing negative value

instead;


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By LAURIE WINSLOW World Staff WriterPublished: 6/17/2010 2:20 AM

Last Modified: 6/17/2010 7:09 AM

Over the last two decades, peoples' ability to borrow against their homes orrun up credit card balances during recessions has helped create an

appearance of a safer environment while actually making the economy morefragile.

That is one observation of Mitchell Petersen, professor of finance with theKellogg School of Management at Northwestern University in Illinois. He

spoke Wednesday evening at a private gathering of college alumni at theSummit Club.

Petersen took time before his presentation for a phone interview to talk about

some of the more pervasive, and overlooked, issues he believes have

contributed to the current economic and financial crisis.

While the most visible signs of the current crisis include falling home prices,increasing mortgage defaults and record unemployment, the seeds of today'sproblems were planted well before the housing boom of the last decade,

Petersen says.

"A lot of what we call this economic and financial crisis are problems withindividuals having too much credit card debt and too much consumer debt,"

he said.

Consumer debt was relatively flat through the 1960s and '70s until about1983, when the level of debt started to increase, Petersen said.

He noted that the 1991 and 2001 recessions were relatively mild, asconsumption dropped a bit. Unemployment never hit 8 percent in therecession of the early 1990s, and it barely got above 6 percent in 2001,

Petersen said.

By contrast, the recessions of 1974 and 1981 weremuch more severe.

Normally, during recessions of the 1960s, '70s or early '80s, if employees lost

their jobs, they didn't have the ability to borrow against their houses becausehome equity loans didn't exist and credit cards were scarce.

People decreased their consumption during economic slowdowns and quit

buying things, which made recessions more severe coming down. But oncepeople resumed work, they could start buying again, which caused the

economy to bounce back, Petersen said.

In later years, however, people who lost jobs could take out home equityloans and run up credit card balances and continue consuming, which led to

recessions becoming less severe over the last couple of decades, Petersenexplained.


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This tendency to borrow when times are tough and then borrow and buy morewhen times get better causes debt to rise, Petersen said.

"That means that a buffer for rainy day is no longer there so when we have a

severe recession like we are in now, our savings essentially have beenconsumed," he said.

This ability of middle America to borrow over the last two decades has created

the appearance of a "less risky and a safer" U.S. economy, and people in turnhave changed behaviors and saved less, Petersen said.

Whereas the average middle American in the 1960s put money in a savings

or checking account, today people put it in the stock market, "which is goodwhen it goes up, but a disaster when it collapses because that wealth

disappears," Petersen said.

The shady business policies that worked so well in a capitalism of

growth and short time self adjustments when "easy" business was

considered kicking off and maintaining economic development hasbegun provoking negative impact under the new conditions; the lack

of business laws and personal liability for the risk management, and

the deregulated contract laws is not anymore spearing such

economic growth and in the opposite:

Late Payments A Serious Problem for Small Businesses By incisiveleadsA recent study has shown that more than half the small businesses in theUK

have to delay payments to suppliers and other parties after being victims oflate payment themselves. If you are a small business owner who has been at

the receiving end of a customer who keeps deferring his payments, you know

how that can disrupt your cash flow. Cracking down on late payments is noteasy either, because most small businesses have few clients to start with andhave to keep them happy.

Well, there is no foolproof way to ensure you get payments on time, but that

does not mean you are completely helpless. One basic rule is to print allterms and conditions on your invoices so there is no misunderstanding

between you and the customer. Any delay in payments should be immediately

followed up, so ensure you have a point of contact that is always available.The Late Payment of Commercial Debts (Interest) Act of 1998 also allows you

to charge an interest on late payments, but be sure to inform the defaulterthat you will be charging an interest. Any payment becomes late beyond

thirty days of the initial payment period, even if nothing was specificallymentioned in the agreement with the client.

However, late payments will happen some time or the other, and as a smallbusiness you need the right tools to tide you over a period of financial crisis.

If you have a cash flow problem and a bunch of unpaid invoices, you shouldgo for invoice factoring. There are quite a few factoring companies who you

can approach, and at our website you can get factoring quotes for free. Allyou have to do isclick right here. It makes the process of deciding on a

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how we could assist you in your business activities,click here and visit our
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website. We can connect you to service providers specializing in businessbanking, invoice factoring, vehicle tracking and a host of other services.

One of the great joys that men in free societies have long enjoyed is

the ability to earn an honest wage for an honest day of work. In

particular, the amazing capitalist engine that powered the U.S.economy for decade after decade greatly rewarded the incredible

hard work and industriousness of the American people. America

was known as the land of opportunity, and we built the largest

middle class in the history of the world by working incredibly hard.

But today, all of that is fundamentally changing. Thanks to rapid

advances in technology, and thanks to the globalization of the work

force, the labor of American workers is rapidly losing value.

Automation, robotics and computers have made many jobs obsolete.

Today one man can do the work that a hundred men used to do. Not

only that, but today American workers literally have to competeagainst workers from all over the globe. Global corporations often

find themselves having to choose whether to build a factory in the

United States or in the third world. But in the third world workers

often earn less than 10% of what American workers earn,

corporations are often not required to provide any benefits to

workers, and there are usually hardly any oppressive government

regulations. How can American workers compete against that?

The truth is that labor is now a global commodity. How can an

American worker compete against a desperate, half-starving worker

in the third world that will work like mad for a dollar an hour?

Though neither by not responding to the very important

Environmental concerns and quickly exhausting Earth resources,

nor to the poor Wealth Distribution and Redistribution of a

deregulated Capitalism that prompted mass Fiscal shortagesand
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poverty proved feasible to get any country out of the Last Global

Recession.

o The coming catastrophe"Under a cuts-only approach,

Social Security recipients would see their cost-of-living

adjustments reduced. Medicare premiums would rise, aswould the public pension retirement age. The Pentagonwould have almost no money for new arms systems or forAfghanistan-scale military operations. All other spendingwould have to be lowered as a share of GDP. If we simplytax our way out of the problem, Penner said, the totalfederal tax burden would increase by 50 percent by 2040.Assuming income tax rates rose in tandem until the toprate took half of an upper earners income, wed also needa value-added tax that ramped up to 7.7 percent by thatdate. Further, Social Security and Medicare taxes wouldalso have to rise. A fiscal cons"

It (the last Global Recession) showed to anyone that if Governments

of the Most Developed Nations of US and EU did not intervene by

expanding Monetary Quantities (through accumulation of high

National debt), pouring capital into Financial Institutions (such as

Fannie Mae, Freddy Mac, and AIG) and even financing Individual

Businesses (such as GM) their Economies and even the Global

Economy could have collapsed under the pressure of the bust after

huge Real Estate over-capitalization succeeded in "Trickle-down"

Capitalism's "freedom" of speculations of deregulated business and

financial structures, the inadequate system of wealth distribution

unable to sustain and raise "demand".

Berlin increases loan guarantees for troubled lender

Groansicht des Bildes mit der Bildunterschrift: Hypo Real

Estate was a prominent casualty of the financial crisis
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A German government banking fund isproviding an extra 10 billion euros inprotection to state-owned bank Hypo RealEstate. The new guarantee comes as markets

grow more sensitive about exposure togovernment debt.

German nationalized bank Hypo Real Estate has receivedan extra 10 billion euros ($12.3 billion) in public loanguarantees to protect it from renewed market turbulence.The German government's bank rescue fund SoFFin saidon Friday that it was extending its guarantee level to 103.5billion euros because of "the current situation on financialmarkets."

Fund head Hannes Rehm said that the bank required theguarantees as it carried out a restructuring program.Any failure of that restructuring process "would have hugeconsequences for the German economy,"

Other reason and not the least important for the deadly Global

Recession of 2007-2009 could be considered the exodus of Industrial

Production and related Capital Investment from the Most

Developed Countries and Markets such as US and EU into China

and India.

o Xinjiang attracts nearly 13 billion yuan of external investments inQ1 - "External investments have played a crucial role in spurringeconomic growth in Xinjiang Uighur Autonomous Region. Xinjiangattracted nearly 13 billion yuan of external investments in the first quarterof 2010, up nearly 46 percent from last year, marking the highest quarterlygrowth rate of paid-in investments since the global financial crisis."

In the past, Social expenses where contra productive for maintaining

Economic growth, thus Economies of most socialized countries such

as of these of the Eastern Block and then China and India (of the

Early and Mid Sixties, Seventies) were not able to keep up enoughsupply to balance the demand for goods and services, however

with the ongoing Globalization and rising Productivity, supported

with huge Capital the system of Social Wealth Distribution is

becoming more economically adequate as the economies of China,

France, Germany, and in its own ways Japan have showed. These
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countries were able to overcome the Global Recession by having

better then US Social Systems for Wealth Distribution.

After the fall of the Eastern Block and the Chinas entering into

WTO the Globalization stepped on to establish economic conditions

for incredibly fast industrialization of China and now of India; very

accessible and easy movable highly technologically advanced

industrial equipment for manufacturing combined with already

highly capitalized US financial markets leering for ROI found

prospective on vastly populated Chinese marketplace (of educated

and skilled labor) to move industrial production, outsource and

invest huge capital into industrial production and related

technologies.

o India's Rising Thirst

UCLA economics historian Robert Brenner makes the case that the

current economic unrest is due to global overcapacity and not financialshenanigans. Essentially, he believes the world is able to produce farmore goods than it logically needs. As a result, profits will continue to

decline until a permanent solution is found to remedy thisovercapacity. What are investors to do? One strategy is to find

companies participating in markets with a pent-up demand for aproduct or service. A good example is India and the liquor trade.

According to United Spirits, which is the second largest company of itskind in the world, over 50% of India's 1.2 billion population has yet to

reach legal drinking age. You don't have to be a genius to see theunlimited potential of selling liquor in India. If only 10% of those

currently underage take to drinking, we're talking about 60 millionpeople. That's almost twice the population of Canada. We'll look at

what public companies are doing in the world's second most populatedcountry.US, China announce anti-dumping steps"(AP) BEIJING - The United States andChina have announced new anti-dumping steps against each other over aluminum, nylonand optical fiber, possibly reviving strains over trade and currency that had eased inrecent weeks."

In the Sixties and Seventies a similar to the Chinese and Indian

industrialization was experienced by Germany and Japan, however

the vastness of the Chinese and Indian Economies and Marketplaces

were not remotely matched by German and Japanese Economies

and Marketplaces therefore to suggest that most recentGlobalization and Industrialization was ever historically

experienced is not feasible.

What really changed in the 21stCentury is a first time experience of

Vast Marketplaces of China and India's Economies joining US,

Germany and Japan into a Global industrial production, but

because China and India are vast and with educated inexpensive
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labor-force, and most important with a very practical Confucian

system of Economics mixing Capitalism, Socialism and even

Communism systems of Economics (however comes: whatever goes)

These "system-internal" organizations can be distinguished from their "system-external"

counterparts not only because they number among the state and collective forms of ownership, butalso because they assume numerous socioeconomic and work-related functions in order to attainvarious objectives.the majority of political, economic, social, and work-related resources as wellare also redistributed via the work units. Monopolistic control and distribution of variousresources in conjunction with a corresponding attitude of expectation in the unit""s members mayprovide individuals with a sense of security and assurance, but at the same time create a strongdependence on the respective work unit. Thus mechanisms for social integration as well as socialcontrol are established. In other words, authority is exercised on the basis of monoplistic controland distribution of resources; this makes it possible for the will of the authority to be imposed onmaterial, political, and ideological levels, and for obedience to be compelled. In contrast,"systemexternal" organizations must use the persuasive capacities usual for that culture as well aslegal means as the main ways of imposing the will of the authority.

"China will adjust its monetary policy in accordance with changes of economic

indicatorsand feedbacks from policy implementation, said central bankgovernor Zhou Xiaochuan Saturday.

Zhou made the remarks at a press conference held on the sidelines of theannual session of the National People's Congress (NPC), the country's top

legislature.China targets a rise of consumer price of around 3 percent this year,

according to the government work report delivered by Premier Wen JiabaoFriday.

"It's difficult for us to anticipate all the possible scenarios and changes inindicators. Therefore, our plicy will be adjusted according to changes in

economic indicators and feedbacks from implementation," said Zhou.

"We are going to continue with a moderately easy monetary policy but at the

same time closely follow inflation and changes in other economic indicators,"

he said, noting that inflation control will be very complicated this year.

China will enhance the focus and flexibility of the policy according to newconditions and strike a balance between inflation expectation management

and maintaining a sound growth, he said."

these countries are manipulating markets to maintain sustained

developmentand they are succeeding on an unimaginable scale.

China's Barbie Doll EconomicsOft-quoted, Dong Tao, a heavyweight economist atUBS in Hong Kong, once said: "A Barbie doll costs $20, but China only gets about 35cents of that." He was talking about global trade statistics at the time, but thatproclamation might help explain why Chinese companies are increasingly shopping forand successfully acquiring storied brands, most recently, Ford's Volvo.The lesson: the bigmoney is in owning the brand, not just making it for foreign companies, writes the AP'sWilliam Foreman.

Frequency of interest rate the central bank

statement touched a sensitive nerve point large
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differences speculation"Zhou Xiaochuan at theInternational Monetary and Financial Committee meetingmade the following statements. He said China will makecomprehensive use of monetary, fiscal and other policytools, pay close attention to price movements and to

manage inflation expectations, and effectively prevent andresolve all potential systemic risk."

Capacity (Equity) building as a China's National Policies is a

balance between Free Enterprises rising Productivity and Social and

Fiscal Policies and Infrastructure

Equity, capacity and sustainability "The concept of equity in the context of

capacity building is not sheer ethical. It''s mixed with certain practical social andeconomic meaning, therefore inseparable from sustainability.Equity here containsthree folds of meanings: 1) equity between existing generation and futuregenerations; 2) Equity between different social members under the samegeneration; and 3) Equity in responsibility and obligation that different socialmembers or groups have to achieve sustainable development.

Equity between generations, to much extent, is subject to ethical area. The currentgeneration, in moral sense, should avoid "eat rice from ancestors while breakfuture generations''pot". They have no right to overconsume and damage naturalenvironment and resources that the future generations will live in. This point was

made very clear in the World Committee on Environment and DevelopmentReport. In its definition of sustainable development, that not to harm the futuregenerations to meet the need of their own was established as a condition.Although capacity building of the current generation is helpful to equity betweengenerations, this equity however is not the most important problem to solve in thearea of capacity building.

The equity between different social members under the same generation is closerrelated to sustainability. On the one hand, from the perspective of social justice,it''s necessary that the society takes into consideration the poor''s interests so as toreduce the gap between the rich and the poor. This was emphasized in the

Brundland Report. That is, The basic needs of the poor in the world should be putat the top priority. On the other hand, equity between different social membersunder the same generation is also a condition to sustainable development. It seemsthat there is not much connection between equity and sustainability, or not sodirect. However by some analysis, can you find that different socialmembers''unequally possession of the resources is an important reason fordifficult sustainable development.This is because that even though the society ingeneral is rich in resources averagely speaking, yet the gap in term of resources
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possession will force the social members short of resources to overuse or abusetheir limited resources to make a living. Since the environmental problems areinterrelated and intereffected, some part of unsustainability in the society willlikely lead to an overall sustainability. Therefore, equity is also a condition to thesustainable development process.

Sustainable environment and equity of social responsibility and obligation havebeen an issue that developed countries and developing countries keep debating on.Who has polluted the environment? Who is making the environment worse andworse? This is an issue of responsibility and obligation. Even though it''s an issueof equity between different social members or groups under the same generation,in essence, it''s a practical issue in international politics and economics. However,even if every social member or group is willing to assume the obligation, does hehave the capacity to realize the commitment? There you find that equity, capacityand sustainability are closely related with one and another."

State Employment is used as a balance for higher wages in Non StateEmployment instead of used by the Economics of Capitalism (mostly

and only) Employment Market Forces.

. The Institutional Transition Under the Dual Labor Market

From our analysis of the features of employment absorption and wage determination in the twoparallel urban labor markets we can make the judgment that the labor market in the newlyestablished sector determined by market forces represent the future direction of development. Inother words,the process of transformation from the SOE''s employment system to NES''s is theprocess of the formation of the labor and wage system of the market economy. How will thissystem transition take place? Since the two systems of labor and wage in the two kinds of sectorsdominate their respective labor market, the competition for laborers between these two kinds of

enterprises and therefore the expansion of one labor market and the reducement of another willrealize the transition from one system to another. This is the first form that the transition ofemployment system will take. In the process of expansion and reducements of the two labormarkets, caused by the competition between the two kinds of enterprises, the traditional system ofthe state sector will respond accordingly, namely by introducing reform in order to survive in thecompetition and shift to a market economy. In this way the second form of system transition takesplace.

First, we will look into how the first system transition that is characterized by employmenttransfers between the two kinds of enterprises occurs and the features of its transformation. If wesuppose the urban labor market is closed off for outsiders, laborers are distributed merely betweenthe SOEs and NESs. Chart 1 indicates the competitive relations between these two sectors as wellas the process of expansion and reducement of the two labor markets.The horizontal axis stands

for the labor volume. From O1 to the right, the labor volume of the SOEs can be measured; fromO2 to the left that of the NESs can be measured. The domain between O1 and O2stands for totalsupply of labor. The vertical axis stands for the marginal productivity of labors or the wage level.The curve tilting downwards from the right to the left is the curve of marginal productivity oflabors in the NESs. It tilts because their marginal productivity of labors decreases with theincrease of the employed labor''s size. At the same time, the marginal productivity of labors in theSOEs increases with the number of workers leaving their enterprises.Thus, the curve tiltingdownwards from the left to the right is the curve of marginal productivity of labors in the SOEs.The curve that is steeper, is the curve of marginal productivity of labors in the SOEs under theassumption that their wage level is determined by the market (see name in quotation marks). In


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this situation, this curve intersects at the point A with the curve of the marginal productivity oflabors of NESs during their employed labor volume expansion. This means the wage level of thetwo kinds of enterprises are equal to the point Wa, and the expansion of labors''volume in NESs nolonger continues. Then the labor''s volume in the SOEs is O1A while that of NESs is AO2.

Since the SOEs are overstaffed and wage is not determined by the marginal productivity of labors,however, their curve of marginal productivity should be more flat (might be a horizontal beelinewithout elasticity), i. e. the curve whose name is without quotation marks that intersects at thepoint B with the curve of the marginal productivity of labors in the NESs. It is at this point thatNESs stop expanding their labor volume, here the wage rate is Wb. As the wage is determinedinstitutionally NESs need to pay higher wage to attract laborers; and the transformation of thelaborers from the SOEs to NESs becomes smaller. In the real laborer''s distribution, the laborer''svolume employed by the SOEs is O1B instead of O1A, that for newly established enterprises isBO2 instead of AO2. So the NESs are limited by their ability to pay higher wage, the differencebetween labor volume they really employ and that they should employ is indicated by the distancebetween A and B in the chart.

Chart 1 Labor Transfers between Two Sectors

Our theoretical analysis reflect the reality of transformation of laborers between the two sectors.One characteristic of NESs is very labor intense. It is not feasible for NESs to pay very high wageto attract employees from SOEs if NESs are to keep their advantage in laborer''s resource. Socompetition of employment is limited by the scope of their ability to pay high wages. Within thisscope, however, NESs can certainly attract relatively high qualified workers to form the backboneof their enterprises without taking cost into account. As it is not possible for the NESs to obtain allthe laborers they need from the state sector it is necessary to have other channels to find labor. IfNESs had not have other such channels, this sector would not have been able to develop to thepresent stage.

Our analysis above was made under the assumption that the urban labor market was closed off foroutsiders, in our further analysis we will give up this assumption. NESs obtain highly qualified

workers from the SOEs by paying higher wage in order to satisfy their needs for technology. Theother source is laborers with common skills from the rural areas.

China has discovered that globalization and

international competition work in its favour.

Great exportations "China overtakes Germany to become the biggest

exporter of all""CHINAS rise has long appeared inexorable. Despite adecline in total world trade, China has seen its exports fall less than thoseof other big powers. A new report by the World Trade Organisation

calculates that the total value of merchandise exports fell by a staggering23% in 2009. Among the top ten exporters, Japans shipments were worstaffected (falling by 26%). Although China's exports also fell (by 16%), thecontraction was less painful than in Germany (down by 22%). As a resultChina is now the single largest exporter. The global downturn has helpedto reduce global imbalances; the leading three exporters accounted for26.7% of total world exports in 2009 down from a third of the total in2008. The WTO expects trade to rebound by nearly 10% this year."
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The Real Reason China Resists on the RMB"As I see it, China is asking

a question to which there is no easy answer; what right does the US haveto lecture anyone on economic matters now, having played so large a partin causing the current global recession through loose monetary policy,poor risk management by some of our most prestigious companies and

monumental regulatory failures? They are responding to the continued USbelief in American exceptionalism, that we can do whatever we do, rightor wrong, and ignore the criticisms and demands of other countries whooften bear the consequences of our actions, while we continue to insist onour right to criticize and make demands on them. As Brad Delong andStephen Cohen have pointed out, the US simply no longer has theeconomic clout to get away with this any longer, and who better thanChina to stand up to it?

The problem of the Rest of the World is the ideological almost blind

following of Marx's' Das Kapital financial system controlled by

the rules of trickle-down Capitalism that happen to be quiteimpractical even when this system built North Americas, Great

Britain, France and Germany: Great Powers envied by anyone in

the World, however looking in History things sometime have to

change; it happened to Rome, Persia, Victorian Empires, and etc.,

thus change could be considered as ongoing now affecting different

countries and markets in different ways, but the trend is quite

similar ( In the Worlds short term history: once mostly

agriculturally driven GDP changed into mostly industrial

production driven GDP, now to change into mostly artificially

balanced Demand-to-Supply Market Economics GDP).

(For parameters see my research Philosophy of the Economy)

If these new developments of Globalization have harmful effect on

the Most Developed Countries of North America, France, Germany

and Japan to the rest of the World their effect is deadly: rising

national debt or genuine poverty are everywhere: Latin Americas,

Africa, Eastern Europe, and elsewhere;

Credit Swaps at Record High as Greek Debt Crisis Infects

Europe"April 27 (Bloomberg) -- Credit-default swaps on Europeansovereign debt surged to records on concern that Greeces fiscal crisis isstarting to hurt the borrowing ability of indebted nations throughout theregion. Contracts tied to Greek government bonds climbed 54 basis pointsto 764, Portugal rose 38 basis points to 349 and Spain increased 16 basispoints to 204, according to CMA DataVision. Yields on Greek two-yearnotes surged above 15 percent, the highest since at least 1998, on concern
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bondholders will be forced to take losses as the country grapples with thehighest debt ratios in the European Union.

IMF warns against Japan's fiscal deterioration"WASHINGTON A

top official of the International Monetary Fund on Sunday warned againstrising vulnerability in Japans fiscal conditions amid snowballing public

debts and called for an accelerated effort to put the nations finances inorder. Although Japans problem should not be treated in the same wayas the Greece debt crisis, its fiscal vulnerability is rising fairly high, IMFDeputy Managing Director Naoyuki Shinohara said in an interview withKyodo News." Japanese fiscal deficits have been financed by the nationshigh savings so far, but the pace of fiscal deterioration is pretty high,Shinohara said."

Greek budget deficit 13.6 percent of GDP in 2009"(AP) LONDON -

Financially-stricken Greece had an even bigger budget deficit for 2009than previously thought, official figures showed Thursday-at a time thecountry is considering whether to tap a bailout facility from its 15 partners

in the eurozone and the International Monetary Fund."

Greece, Portugal, Spain, and Bulgaria are among many

economically struggling to couple with ever lack of Fiscal and

Monetary quantities countries: to maintain the rising productivity of

Germany, Japan and China or to industrialize themselves is just

futile so they are cursed to high National Debt like Greece, Portugal

and Spain or to high Poverty like Bulgaria whose Government was

"hired" by the World Bankand IMF to maintain strict financial

order:

World Bank, IMF end Spring Meetings with solid step in voice reform"The World

Bank and the International Monetary Fund (IMF) ended their Spring Meetings

in Washington on Sunday, with a solid step in the long-expected voice reform, a

cautious note on exit strategy and a call for global cooperation amid uncertain

recovery prospects. STRIDES IN VOICE REFORM The meetings approved a

plan to increase the developing countries' voting power in the International

Bank for Reconstruction and Development (IBRD) by 3.13 percentage points to

47.19 percent, representing a total shift of 4.59 percent to developing and

transition countries since 2008."

Rating Agency Data Aided Wall Street in Mortgage Deals"In essence,

banks started with the answers and worked backward, reverse-engineeringtop-flight ratings for investments that were, in some cases, riskier thanratings suggested, according to former agency employees. The majorcredit rating agencies, Moodys, Standard & Poors and Fitch, drewrenewed criticism on Friday on Capitol Hill for failing to warn of thedangers posed by complex investments like the one that has drawnGoldman Sachs into a legal whirlwind. But while the agencies have come
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under fire before, the extent to which they collaborated with Wall Streetbanks has drawn less notice.

U.S., EU call on Tokyo to ensure fair competition against Japan Post

TOKYO

"The Japanese government has received a letter from the United Statesambassador and his European Union counterpart calling on Tokyo toensure fair competition when revising the nations postal privatizationplan, Chief Cabinet Secretary Hirofumi Hirano said Friday. In the letter,U.S. Ambassador to Japan John Roos and Hugh Richardson, ambassadorand head of the delegation of the European Commission in Japan, arebelieved to have claimed that Tokyos plan on raising the deposit cap onJapan Post Holdings Cos banking unit may breach World TradeOrganization agreements."Commentary: This is very suspicious to say the least. As the internationalcriminal bankster gangsters enrich themselves by creating havoc aroundthe world(Greece, Ireland, Iceland, Spain, Italy, Portugal, US,)and getcountries under their control, a national safe haven for savings is veryimportant.US ans EU are claiming unfair competition because Japan wantsto enable a safe haven for people's savings. Japan, hold strong to yournational sovereignty, do not let these criminal scumbags and there NewWorld Order agenda in. World Trade Organization creating problems andenriching those at the top through neo-mercantilism."

However neither of these two approaches (the one that Governments

keep raising National Debt nor the one which Governments

maintain strict Budgetary austerity) happen to bring "prosperity"to these countries: "high deficit" or "financial austerity" both are

not going to make Spain, Portugal and Greece nor Bulgaria

"industrial powers" thus they could cover their ever arising Social

Expenses and Infrastructural Deterioration to ever shrinking Fiscal

Reserves.

Profit of Bulgarian Banks Down by 37% in 2010 Q1 "The profit generated by the

Bulgarian banking system in the first quarter of 2010 amounts to BGN 170 M, which is a37.2% drop year-on-year. At the same time, however, the profit of the Bulgarian banksgrew by 7.5% in January-March 2010 compared to the last quarter of 2009, showed dataof the Bulgarian National Bank released Thursday.

Fed chief: Joblessness, housing still problematic Despite a more stabilized

economy, he says, the U.S. is "far from being out of the woods.""WASHINGTON Problems in the housing market and highunemployment are the biggest economic challenges the nation faces,Federal Reserve Chairman Ben Bernanke said Wednesday. After suffering
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through the worst recession since the 1930s, the economy seems to havestabilized and is growing again, Bernanke said. But he warned: "We arefar from being out of the woods. Many Americans are still grappling withunemployment or foreclosure or both." In prepared remarks to businesspeople in Dallas, Bernanke said he saw no evidence of a "sustained

recovery" in the housing market, noting that foreclosures keep rising.Commercial real estate remains a trouble spot, too. The toughest problemsare in the job market. Even though layoffs have slowed, hiring is "veryweak," Bernanke said. He noted that unemployment, now at 9.7 percent, isstill close to its highest levels since the early 1980s."

ADDRESSING THE PARALYZED HOUSING MARKET

"Some in the US (especially the democrats) have beencalling for a housing stimulus bill that will help thestruggling home owners stay in their homes and also stopthe house prices from falling further. President Obamarecently announced an expected plan to fight a deepening

housing crisis by committing up to US 275 billion to stopthe wave of foreclosures sweeping the US. The plan aimsto help around 9 million American families. Under theproposed plan a US 75 billion fund will be formed to reducethe monthly payments for homeowners and provide thema buffer of up to $ 6,000 against any decline in the valueof the houses. The treasury will also agree to double itsfinancial aid to Fannie Mae and Freddie Mac enabling themto play a bigger role in supporting the housing sector. Theaim is obviously to increase the confidence in Fannie andFreddie ensuring the strength and security of the mortgagemarket and to help maintain mortgage affordability.G20 sounds warning note over new bank rules "One of thelessons of the crisis is that facing global challenges weneed to have global answers," IMF Managing DirectorDominique Strauss-Kahn told the Romanian parliamentduring a flying visit to Bucharest. "This lesson is about tobe lost," he said. The IMF chief said individual countrieswere working on new regulations and creating newsupervisory bodies. "The only problem is, they don't fittogether," he added. The G20's steering countries said in a

letter to all group members that governments mustrecommit and deliver on reforms they agreed to inPittsburgh."We all have a mutual responsibility to deliveron all our commitments to address the weaknesses thatled to the financial crisis," the letter said."This will requirethat we maintain our vigilance to address the requiredreforms and guard against complacency as our economies
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recover," it added. Bank of England director of financialstability Andrew Haldane said it is possible that no amountof capital or liquidity will be enough to totally shieldtaxpayers as profit incentives may place risk one stepbeyond regulation. "That means banking reform may need

to look beyond regulation to the underlying structure offinance if we are not to risk another sparrow toppling thedominos," Haldane said. PAY RULES PATCHY But G20leaders said there can be no let-up on efforts to agree anew set of bank capital and liquidity rules -- dubbed BaselIII -- for implementation by the end of 2012. They singledout the need to still include a leverage ratio or cap in BaselIII as some countries like France have expressed concernsabout its impact. The letter also said all countries musthave adopted the existing Basel II bank capital frameworkby 2011, a reminder to the United States which has yet toimplement it in full. They also reiterated the need toregulate over-the-counter derivatives by the end of 2012and implement the G20's principles aimed at curbing bigbonuses for excessive risk- taking at banks. The FinancialStability Board, tasked by the G20 to implement itsregulatory pledges, said several countries have yet to fullyapply the remuneration principles. They were agreed inpart to help quell public outrage at the return of bigbonuses in a sector that had to be shored up by taxpayersduring the financial crisis. "Firms will need to maintain

momentum toward reforming their compensation practicesthrough 2010 and beyond," FSB Chairman Mario Draghisaid. Many of the major financial centers like the UnitedStates, Britain, Germany, France, Japan and Hong Konghave taken the regulatory or supervisory steps needed toimplement the code. Argentina, Brazil, Singapore, India,Indonesia, Mexico, Russia and Turkey lag, the FSB said.

Sarkozy urges new world finance rules in US speech"Sarkozy wants the

United States to champion firm regulations of financial systems, from taxhavens to hedge funds. His ideas were shared by many in the immediatewake of the financial crisis but momentum for dramatic changes has sinceslowed. "We should invent a new global monetary order," he saidMonday, insisting that new regulations would "save capitalism."

Impossibility for many countries to industrialize joined by constant

lack of capital means no solution under the control of the World
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Lenders (World Bank. IMF, WTO) that control their borrowers

tightly.

Could not be denied that some of these less developed countries

might have corruption, improper bureaucracy, insufficient markets,

and etc. but whatever WB and IMF could present as reasonable forlack of development: the ongoing processes of Fiscal shortages for

these and many other countries are to be unavoidable: and because

most of the World economies are 80%+ based on consumption these

countries lower life standards prompt weak market demand

boomeranging back to the Most Developed Industrial Countries

export and so it goes on and on.

Unless in the Past, these new conditions of decreasing industrial

production, following consumption and demand affect US, many

countries in EU, and the rest of the World in a very harmful ways

seen at the Last Global Recession.

US

U.S. rebound on good footing: Fed's Fisher (Reuters) - The U.S. economic

recovery is gathering speed as business activity picks up pace, despite

lingering weakness in employment, Dallas Federal Reserve BankPresident Richard Fisher said on Tuesday.

I'm Sure Glad The Recession Ended "It's a good thing the

recession ended. Otherwise, key economic charts mightlook something like this.

Alternatives to appreciating the Chinese yuan "Recent debate has focused onhow to increase US exports and savings and increase Chinese imports and consumptionin order to correct the trade imbalance between the US and China. In America inparticular, focus has been placed on Chinese exchange rate policy. American leaderswould like the RMB to appreciate significantly and quickly. They hope that this wouldlead to an increase in US exports and employment."

H-man - Thursday March 04, 2010 08:06AM EST "I was a manufacturing executive for

the past 30 years. I directly observed our manufacturing base disassembled andoutsourced. The pace only increased and unfortunately continues unabated. Themanufacturing jobs sent out of the country were much better paying than the service jobsthat replaced them. The bottom line is now Americans can no longer just "BUYAMERICAN" and don't have the $ to do so anyway. Greed (Corporate, Political,Individual) has killed the Amercian Dream.

The New Poor "Economists fear that the nascent recovery will leave more peoplebehind than in past recessions, failing to create jobs in sufficient numbers to absorb the
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record-setting ranks of the long-term unemployed. Call them the new poor: people longaccustomed to the comforts of middle-class life who are now relying on public assistancefor the first time in their lives -- potentially for years to come."

America tied-up by Record Debt

"Smoothing out the economy's ups and downs, however,

has a cost which is now tying America's hands. At this timewhen fears of a double-dip recession are rising, it's anobvious moment for the government to apply morestimulus spending as it has in the past. But the U.S. findsitself more leveraged than ever before, limiting itsoptions."

Small businesses need a disaster plan and plan B(AP) NEW YORK - Small business owners in the Upper Midwesthave just gone through a disaster preparation drill as the

Red River rose and threatened to repeat last year'scatastrophic flooding. The region dodged a bullet this time,but more floods may well come, and other parts of thecountry could see tornadoes and hurricanes. Disasterpreparation is one of those tasks that many small businessowners say they'll get around to, soon. But it often getspushed down the priority list, especially when a companyis focused on bringing in new business or improving cashflow.

President Obama is doing a lot of positive economic actions in attempt to

revive US economy: currently signed in laws Health Reform, imposed

support for homeowners mortgage defaults, financing SMB and helping

Student Financing are moves into a right direction. In regard WealthDistribution by following the last Global Recession facts are showing

indiscriminate link between using Social and Infrastructural Expenses as

Economic "tools" for balancing "demand-to-supply" ratios. Such trend

could be changed by using an enhanced Stock and Commodities Exchanges

regulated structures that would be sufficiently allowing Small to Medium

Investors to invest Globally and to be able to profit from thus going Global

growth: the ROI (return on investment) such SMI (small and mediuminvestors) could become Market driven ways for Wealth Distribution; Other

Market related ways for such Wealth Distribution could be by imposing

common Global Markets' regulations (for making SMB equally competitive

to the Large International Corporations) , enhancing Business Contracts and

Bonding Laws, enhancing Intellectual Properties laws and Risk Management

Personal Liability laws to prompt SMB Global expansion.
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Lack of funds & late payments force MSEs to perform billow

capacity

Dearths of funds and delayed payments have forced the Micro andSmall Enterprise (MSE) sector to perform below capacity, a study conducted bythe industry lobby ASSOCHAM said Sunday. "Most of the MSEs are running atclose to 70 percent capacity utilization due to paucity of funds, arising out ofunduly delayed payment of their dues, resulting in serious suffocation," says theASSOCHAM study.

There is a Global trend toward enhancing Personal Liability laws for

Corporate Risk Management. (article: "Quantum Economics-Philosophy ofThe Economy: Corporate and Business Structures in Market Economics")

Mutual fund workers get whistle-blower cover: judge(Reuters) - A U.S. law

protecting whistle-blowers at publicly traded companies also covers mutual

fund firms, a federal judge ruled in a case involving two former Fidelity

Investments employees.

Monetary and Fiscal Policies are to be adjusted to the Globalization and

rising Productivity by Global Centralized Banking System

EU

Greek turmoil puts pressure on markets as loan

costs soar: "The yield or return on Greek 10-year bondstopped 7.5 percent for the first time since Athens adoptedthe euro in 2001 but later came back to 7.35 percent --still more than double the rate on the German 10-yearbond at 3.09 percent. Finance Minister George

Papaconstantinou said Athens "is borrowing and will keepon borrowing" despite the record high costs imposed byfinancial markets.

Ireland hits banks with hefty penalty, to inject

billions (Reuters) - Ireland hit its banks with a heftypenalty to take loans off their hands and said they neededat least 22 billion euros ($30 billion) in extra funds to
http://smetimes.tradeindia.com/smetimes/news/top-stories/2010/Apr/12/lack-of-funds-late-payments-force-mses-to-perform-billow-capac.htmlhttp://smetimes.tradeindia.com/smetimes/news/top-stories/2010/Apr/12/lack-of-funds-late-payments-force-mses-to-perform-billow-capac.htmlhttps://docs.google.com/Doc?docid=0Aa4oeiDzuYSuZGdoejhxaGhfMTA3ZHdwM3h3Z2Y&hl=enhttps://docs.google.com/Doc?docid=0Aa4oeiDzuYSuZGdoejhxaGhfMTA3ZHdwM3h3Z2Y&hl=enhttp://www.reuters.com/article/idUSTRE62U5AY20100331?feedType=nl&feedName=ustopnewslatehttp://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home/http://www.france24.com/en/20100408-greece-sinks-deeper-crisis-loan-costs-soar-markets-sliphttp://www.france24.com/en/20100408-greece-sinks-deeper-crisis-loan-costs-soar-markets-sliphttp://www.france24.com/en/20100408-greece-sinks-deeper-crisis-loan-costs-soar-markets-sliphttp://www.reuters.com/article/idUSLDE62T0L920100330?loomia_ow=t0:s0:a49:g43:r4:c0.050000:b32354576:z0http://www.reuters.com/article/idUSLDE62T0L920100330?loomia_ow=t0:s0:a49:g43:r4:c0.050000:b32354576:z0http://www.reuters.com/article/idUSLDE62T0L920100330?loomia_ow=t0:s0:a49:g43:r4:c0.050000:b32354576:z0http://smetimes.tradeindia.com/smetimes/news/top-stories/2010/Apr/12/lack-of-funds-late-payments-force-mses-to-perform-billow-capac.htmlhttp://smetimes.tradeindia.com/smetimes/news/top-stories/2010/Apr/12/lack-of-funds-late-payments-force-mses-to-perform-billow-capac.htmlhttps://docs.google.com/Doc?docid=0Aa4oeiDzuYSuZGdoejhxaGhfMTA3ZHdwM3h3Z2Y&hl=enhttps://docs.google.com/Doc?docid=0Aa4oeiDzuYSuZGdoejhxaGhfMTA3ZHdwM3h3Z2Y&hl=enhttp://www.reuters.com/article/idUSTRE62U5AY20100331?feedType=nl&feedName=ustopnewslatehttp://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home/http://www.france24.com/en/20100408-greece-sinks-deeper-crisis-loan-costs-soar-markets-sliphttp://www.france24.com/en/20100408-greece-sinks-deeper-crisis-loan-costs-soar-markets-sliphttp://www.reuters.com/article/idUSLDE62T0L920100330?loomia_ow=t0:s0:a49:g43:r4:c0.050000:b32354576:z0http://www.reuters.com/article/idUSLDE62T0L920100330?loomia_ow=t0:s0:a49:g43:r4:c0.050000:b32354576:z0


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recover from a property collapse that was worse thanfeared.

U.S. Stocks Retreat as Iceland, Greece Temper

Economic Data March 30 (Bloomberg) -- U.S. stocksretreated as concern that deteriorating government

finances will derail the global economic recoveryovershadowed better-than-estimated reports on Americanconsumer confidence and home prices. Citigroup Inc.,Goldman Sachs Group Inc. and Bank of America Corp. lostmore than 1.6 percent as Standard & Poors cut Icelandscredit rating and Greece failed to sell half the 12-yearbonds it offered. Exxon Mobil Corp. and Chevron Corp.retreated as oil declined after yesterdays 2.7 percent rally.Stocks also fell after London-based Gartmore Group Ltd.suspended the manager of its two biggest hedge funds

amid an investigation. Ten Years of Pension Reform in

Bulgaria: Achievements and Challenges These aredifficult times for Bulgaria, Europe and the world. For morethan ten years the World Bank in Bulgaria has been asteady partner, supporting reforms in the area of socialsecurity and pensions, both in terms of investing in themodernization of the social security administration and interms of analytical support to ensure fiscal sustainability ofthe pension system and we are delighted to respond tothe Ministers request for continued support and work with

all partners towards an effective, just and sustainablepension system.

Government aims to boost sluggish export growth

" The Economy Minister rejected recent criticism of Germany's export

boom voiced by his French counterpart Christine Lagarde. Last weekLagarde argued that Germany's huge trade surpluses with countries in

Europe had created imbalances that were partly responsible for thebudget problems in Greece and other EU nations."Such criticism is

unfounded," Bruederle said. "Germany's exports are increasinglybecoming a motor for the economies of other European Union

countries to overcome the crisis."

Greece: It's a Deal

France and Germany have brokered an emergencyfinancing mechanism to help Greece, following extensivebilateral negotiations between the two sides earlier onThursday (25 March). Under the deal, approved byeurozone leaders after late evening talks, a fundingpackage will be created, made up of voluntarycontributions from euro area countries and cash from the
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International Monetary Fund.The Pain in Spain: An Economy in Crisis JesusManson323Spain is a leech economy. Much of its "new economy" isjust Ber nie Madoff-style banking sucking blood out of LatinAmerica. It really says something that Spain did NOT start

Europe's Industrial Revolution, despite being an earlycolonial power that imported massive amounts of gold andsilver from North/South America.

Latin America

Some Latin Currencies May Be Too Strong

"That will be a big challenge, because right now the region gets only 2

percent of the world's overall investments in research and development,compared with 28 percent received by Asian countries, according toRICYT, a region-wide science and technology research network. WhileChina invests 1.4 percent of its gross domestic product in research anddevelopment, Brazil is investing 1 percent, Argentina 0.6 percent, Mexico0.4 percent and Colombia and Peru 0.1 percent, respectively, RICYT says.Even more worrisome, the bulk of Latin America's investments in researchand development are state-funded projects on theoretical issues of nocommercial value. Consider this: While South Korea registered 80,000patents worldwide last year, Brazil registered only 580, Mexico 330, andArgentina 80, according to the World Intellectual Property Organization.

Industrial Production moved to the Fast Developing Vast Countries

as China and India

China

India, China to Reap Reward of Global Power Shift, "Roubini SaysThe

size of the emerging markets is going to become larger and larger, and itsgoing to become greater than the GDP of the United States, Roubini said.It may take 20 to 30 years, depending on relative economic growth, butthe process will occur and we should get used to it.As the U.S., Europeand Japan struggle to recover from the worst recession since World WarII, Indias main stock-market index has soared over the last 12 months andits economy may grow 8.2 percent in the year starting April 1, the fastestin two years, the Finance Ministry said in February. Chinese gross
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domestic product grew 10.7 percent in the three months throughDecember, the quickest pace since the fourth quarter of 2007.China hasbeen a hare and India a tortoise but growth is accelerating in India,Roubini said. Emerging markets are set for a V-shaped recovery, even asIndia still has a massive need for human and financial capital as well as

economic-policy changes to achieve double-digit growth like China, hesaid. Its Chinas World Were Just Living in It "It's easy to forget that big international

bodies like the IMF and the World Bank were created by just a few nations, led by theUnited States. These economic organizations have global reach, but that globe used to bedominated by the American superpower, and their policies were suffused with U.S.values. When Beijing was a small-stakes player its leaders didn't always like the setup,but they lived with it, even facing down fierce grassroots opposition to join the WorldTrade Organization. But now China has more worldwide clout, and public opinion athome has taken on a combative (and sometimes downright jingoistic) tone. So with oneeye on China's national interests and the other on domestic critics accusing the regime of"coddling" the West, Beijing has begun to push harder to reshape international systems tomake them more China-friendly (and, in the process, to raise the regime's chances of

survival). China Exports Soar 45% Growth" CHINA reported Wednesday

exports soared for the third straight month in February.The fastest pace in three years as most analysts believe itcould leave Beijing more open to a stronger yuan.Overseas shipments grew 45.7 % on-year last month toUS$94.5 billion, the China customs bureau announced. Theconsistent data cements a turnaround that began inDecember when a year-long

The success of China and India is not because of the cheap labor only:

such cheap labor could be found around the Globe, neither it is becauseof the vast population only: as a whole South America counts about400M but could not succeed consistent economic growth, nor because of"right time in history": for the last 20 years number of recessions have

plagued the World Economy (1999,2008 deadliest ), hence, why thesecountries succeeded in economic growth even when recessions wereongoing?Countries with very strong Social policies and Wealth distribution andredistribution? - Maybe just because in the modern Capitalism the

biggest problem is Wealth distribution and redistribution, maybe becausethey ignored following the taboos of "trickle-down" economics and usedflexible economic policies "as it comes as it goes", maybe because theGreat Industrial Nations of US, Japan and some in EU were not flexibleenough in adjusting their Economic policies to succeed Economicsgrowth, maybe because the Big Internationals and Big Inverstors movedto China and India as a better choice: ther consistent at the same timeflexible economic policies, social stability, vast population, work ethics
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and discipline, or finally, may be because China and India pretty muchignored the Parish Club, the World Bank and the IMF in the ways theyconducted their Economic Policies: supported by strong foreigninvestments they changed the rules of the economic game "as it comes:as it goes": example is the devaluation of the Chinese Currency, thestrong business and financial laws against Corporate Risk Managementfraud, and etc.

India

"Industrial output in February grew at a slower rate of 15.1 percent,

official data showed on Monday. The production in January

was 16.7 percent. The index of industrial production (IIP),which measures factory output, stood at 10.1 percentduring April 2009-February 2010 against 3 percent in thesame period of 2008-09, data released by the CentralStatistical Organisation showed. While basic goods grew8.4 percent during the period under review, capital goodsgrew 44.4 percent. Consumer durables and consumer non-durables recorded growth of 29.9 percent and 2.3 percentrespectively."

'Extension of interest subvention for garment sector by April'

Namrata Kath Hazarika | 30 Mar, 2010The extension of two percent interest subvention to the garment

sector should be given by April 2010 Read more.... Many of the govt.

schemes for MSMEs are irrelevant: Anil Bhardwaj Budget allocation

would address the additional needs of SMEs: H.P.Kumar 'Increase in

rural demand will accelerate growth of SMEs' 'Hardware + Tools

exhibition a solid platform for industry players' Consolidation need of the

hour for SMEs in textile industry

'Indo-Canada trade standing at USD 4 bn annually'"He also

mentioned that India stands out in the world, as anemerging market with a strong democratic base, fully
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da-trade-standing-at-usd-4-bn-annually61060.html


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functional in English the worldwide accepted businesslanguage, as a country where the rule of law pervades andas a country that survived the economic recession. Duringthe interactive session with Canadian business associations Canadian Council of Chief Executives and Canada-India

Business Council, organized by CII, it was widelyrecognized that India's growing middle class and nationwide policies for inclusive growth present tremendousopportunity for participation by Canadian companies.

Govt. clears 23 foreign direct investment proposals"Among the

approved proposals were Tikona Digital Network's Rs.1,142.21 crore offer for rasing the FDI to 74 percent byissue of compulsorily convertible debentures and Pune-based Bharat Forge's plan to issue warrants worth Rs.576crore. Opto Circuits India's proposal to issue convertiblewarrants worth Rs.376.27 crore and a request by IntelCapital -- the Mauritius-based investment arm of thecomputer chip major Intel -- to acquire equity in the MultiCommodity Exchange of India for Rs.66 lakh also receivedthe nod. The government put off decision on severalproposals, including the offer of Gurgaon-based S TelPrivate Ltd, a joint venture between Chennai-based ShivaGroup and Bahrain Telecom, to issue fully paid-up freshequity shares to undertake the business of providingtelecom services in India.

Indo-African trade to grow by 22 pc in next two years'

The bilateral trade between India and Africa is likely togrow by 22 percent in next two years, according to anASSOCHAM paper released in the capital on Friday. "It isprojected that bilateral trade between India and Africacould be around USD 55 billion in 2012 from the currentlevels of close to USD 45 billion," said Arun Agarwal,chairman of ASSOCHAM's Africa Committee.

The exodus of Capital from North America and E.U. had a deadly

effect on their Fiscal Quantities (GDP of any country in the World

and the most of Developed Industrialized Nations is based mostly on

Industrial Production and Return On Investment ROI mostly from

Industrial Production).
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Japan, Germany and France succeeded in retaining some of their

High Tech Industrial Production but both Japan and Germany

among others were overrun by China: Japan as the Biggest World

Economy and Germany as the Biggest Industrial Exporter, however

Germany, France and Japan have balanced their internal demand

by strong Social and Infrastructural Policies much better then many

other countries have done it.

Japan

Applications for employment adjustment subsidies fall in Feb The government

grants subsidies to companies which have opted to maintain employment

instead of dismissing workers by shortening the hours they work, for example.

The subsidies are to make up for a wage decrease resulting from shorterworking hours. The number of workers for whom subsidies were applied came

to 1,608,149, down 119,066 from January, the ministry said.

The Global Debt Bomb: "Today Japan can borrow all it wants

from its own citizens. Over the decades they have dutifully(if mechanically) piled up a $7.7 trillion cache of savingsthey keep mostly in low-yielding bank deposits. Thosesavings equal two-thirds of the total household wealth ofGermany, France and the U.K. combined, says JohnRichards, North American head of strategy at RBS"

Japan's consumer prices continue to fall

By Roland BuerkBBC News, Tokyo

Japanese

33227749 How Globalization Affects Countries and Markets

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Transcript of 33227749 How Globalization Affects Countries and Markets