With Global Economy Shaken, Smaller Economies Have New Opportunities

While Trump shakes up the global economy, this might be the prime moment for smaller market economies, like that found in the country of Canada, to rebrand themselves as a unique and perfect model for economic growth.

 

While countries that are home to smaller markets that are very dependent on global trade, President Trump has taken actions against what he deems unfair trade practices and has begun what looks to be a global trade war. This activity makes it difficult for smaller markets, like that of Canada, to plan their course to help their own economy thrive and ensure the welfare of their citizens. This is actually a pivotal moment for these types of economies and rather than hoping this storm passes, they should instead take action to build on this opportunity.

 

The best thing that can be done in this situation is to play the long game in the global economy. This landscape is ever changing, and it is a prime moment for them to rebrand themselves and build themselves into a brand that offers value and a prosperous future. Now that President Trump has withdrawn the United States from the TPP and is threatening to withdraw from NAFTA, other nations have an opportunity to swoop in and fill a void.

 

Some nations are dragging their feet under the assumption that this will pass, others are beginning to claim that globalism is dead, but nothing could be farther from the truth. Canada is home to the CETA, Canada-European Union Comprehensive Economic and Trade Agreement, which is approved and currently being implemented. It will once again establish the Asia-Europe Silk Road trade route from the past. This type of collaboration is exactly the opportunity that is there for smaller nations looking to make money in the global market. With a big player withdrawing and imposing tariffs, a new player in the game could be just what the market is seeking. For more detailed information on this topic, head to Huffington Post.

World Economics: The BBC Examines The Impact of Ebola on Some of The World’s Most Impoverished Nations

A recent BBC article explores life in West Africa after the recent Ebola virus epidemic. The devastating disease created widespread fear. Yet it also exerted an economic impact over the region.

Poverty

The BBC news article described daily life in three struggling nations: Liberia, Sierra Leone, and Guinea. The report concentrated on residents of the slum district of West Point in Monrovia. In the wake of the epidemic, some survivors have thrown themselves into work as they seek to recover from painful personal losses.

Seeking Prosperity

Several people who lost loved ones during the Ebola quarantine now manage small enterprises. Rita Carol invested in a refrigerator, which she uses to sell ice to neighbors. Eva Nah used compensation she received following the death of her grandson during a quarantine protest for tuition for four other young relatives. Slum dweller J. Roberts, a widower after the epidemic, began a business selling heated water. He also rents washing booths so neighbors can bathe. He hopes his small business will support a better life for his four children.

Better Health Care

One byproduct of the tragedy involves improved disease monitoring. This effort in Monrovia now obtains greater funding. A medical facility established to care for Ebola patients still employs a nursing staff. It treats other widespread conditions, such as scabies and malaria. Founded by Reginald Kahweh (who lost both his parents to Ebola), the Kahweh Clinic improves the daily quality of life for many Liberians.

Cybersecurity Was A Main Topic At The World Economic Summit

The Internet of Things (IoT) connects the physical world with the digital world. It is the intersection of economics, technology, and social imperatives. The Internet of Things is always a topic of conversation in industrial conferences, but the recent World Economic Forum in Davos, Switzerland put a lot of emphasis on the topic. The word Superpowers is taking on a whole new meaning on the world economic stage. Superpowers are not just the nations that exert influence on global issues. Superpowers are now the technological superpowers like mobile technology, artificial intelligence, the cloud, and the IoT imperative.

There were several panel discussions about cybersecurity as well as corporate priorities at the Davos conference. A recent estimate claims industrial IoT will add $14 trillion in economic value to the world’s economy by the year 2030. But the cybersecurity piece of the IoT imperative is the piece that got a great deal of attention at the Davos Forum. In the 1950s, a single industrial control system breach would impact a single plant. A single breach today will create global ramifications.

The Davos conference was the perfect setting to discuss not just the advantages of using the Internet of Things, but it also was the backdrop for discussing system vulnerabilities. And the potential for some of those vulnerabilities to become weapons. Standards for cybersecurity must be in place. And insurance companies must play a role in that security in order to create a culture of cybersecurity, according to members of the Davos Forum.

Republicans Want to Add Work Requirements for Federal Benefits

It is possible that Senate Republicans and the Trump Administration will start pushing for new economic policies that encourage poor people to work. Many poor people receive various benefits from the government, regardless of whether they work or not. However, Trump has previously complained about people who do not work and generate more income through welfare than people who do work and generate income through their paycheck.

Senator Orrin Hatch also said that he is unwilling to help people who do not help themselves.

The Republicans tried to get states to add work requirements to Medicaid. Trump is also encouraging states to add work requirements for benefits such as food stamps. Other government officials have said that getting people to be self sufficient is the ultimate way to helping them.

However, as CNN reports, many people on welfare can not work. Some are children. Some are senior citizens who are too old to work. Others are disabled and can not work.

Of those who are of working age, forty percent do work or are students. Experts have weighed in and said that most people on welfare either can not work or do work and still do not earn enough to live on. The reason for this often lies with the low minimum wage. It is rare for people to actually sit around and not work and still get welfare just because they can.

With Government Shutdown Looming The World Markets Tremble

It is always a shock to the political and economic systems of the world when the United States government effectively shuts down. This has happened a number of times in the past when Republicans and Democrats could not get together to hash out a spending deal that both sides could agree on. Now, it looks like this very well may happen again.

Top Congressional Democrats Nancy Pelosi and Chuck Schumer have cancelled a scheduled meeting with the President reports CNBC. This coming after the President tweeted that he could not envision any kind of deal being struck between himself and the Democrats to avert a government shutdown.

The Democratic leaders who had the meeting scheduled with the President pounced on his words saying that they would just as soon meet with Republicans in Congress to work on a deal with them since the President so obviously did not see a way forward himself. They cancelled the meeting and presumably will try to meet with other Republicans in Congress instead.

The Federal Government is slated to run out of funds on December 8th. If the two sides cannot come together and get something passed, then the government will begin to shut down. In the past, the two sides have come together to pass what is known as a continuing resolution (or CI) to essentially punt the decision away to a later date. That could be something that comes up in discussion quite frequently in the coming weeks as the two parties try to figure out some plan that will work.

Latest News Concerning the World Economics and Economic Policy

World economics is the global trade of goods and services in the form of cash. At times, some people refer global economy as the global or international financial system. The rise or fall of the economy is the determining factor for the expansion of international businesses. Consistent stock exchange results in the quick development of the world economy.

Economic policy is the steps taken by various governments in the world to venture into the trade and industrial fields. Additionally, it involves setting heights of interest rates, labor markets, national budgets, tax variations and supply of money. Economic policy is majorly for the thriving of the world economics. Hence, a well set economic policy results in a tremendous growth of the global economy.

Top World Economies

Currently, United States has the best economy in the world. However, its position is lately in a threat by the China’s fast growing economy. The advanced technology, plentiful natural resources, and outstanding infrastructure are the factors that have made U.S feature out as the superpower of the world economy since the beginning of ranking in 1871.

According to the 2017 estimates by the International Monetary Fund’s World Economic Outlook Database, the top ten world economies include United States, China, Japan, Germany, United Kingdom, India, Brazil, Italy, and Canada simultaneously. The nominal rates of the ten economies contribute more than half of the world economy.

China’s Rise and Threat to the World economic Superpower

For the last 30years, the economic development performance of China has been impressive. According to the World financial analysis, China posted the highest gross domestic product surpassing the U.S economy in 2014. Since then, it has been a significant threat to the United States.

United States Financial Plan to Raise Their Economy

The stiff competition from various nations like China makes the U.S economists come up with new unique economic ideas. Currently, they have come up with a strategic plan to improve their economy. The method includes inoculation of capital for the banks to absorb unpredictable losses and to open out Fed’s program to sustain lending of services to the consumers. U.S focuses on maintaining their pace as the economic giants in the globe.

What’s Happening To The World’s Economy?

The world’s economic situation is going through a monumental change, according to economists. The wealthy and powerful nations are not as important on the world’s economic stage thanks to China and other Asian countries. But Asia is not the only fly in the economic ointment. Brazil, Mexico, South Africa, and India are also playing a role in the declining importance of wealthy nations on the world’s economic stage. Emerging countries are more important because they can produce products that cost less. Plus, there is a population explosion in emerging markets.

Economic convergence is the result of technological advancements in emerging markets. Technology is playing a major role in the shift of economic power. And according to Northwestern University’s social science Professor, Robert Gordon the U.S. economy is not as productive as was during the years between 1920 and 1970. The United States had productivity growth from 1994 to 2014 thanks to the Internet, but that productivity is ancient history, according to Professor Gordon.

So what is the prognosis for the world’s economy? One thing is sure. Globalization is not breaking down. It is reshaping itself. By the year 2022, economic output in Asia will be the same as the output in the wealthy Western countries. China’s share of the world’s economic output will jump to more than 20 percent, and India’s output could jump by more than 10 percent by 2022.

The other factor that will shift economic power to emerging markets in Asia is population growth. The share of the world’s population in the wealthy Western countries went from 27 percent in the 1950s to 15 percent in 2015. China’s share is 19 percent, and India’s share will be more than any other country, by the end of 2025. African countries will also increase their population share over the next five years. Africa’s population share could be more than 20 percent by 2025.