economics

Introduction About GDP Gross Domestic Product (GDP) is a useful indicator of the status of the economy of a country. GDP measures the total value of goods and services produced in a country within a given period. This is commonly measured either monthly, quarterly, semi-annually, or annually. Measuring GDP is a challenge for an economist […]

Interest rates are a tool for Federal Bank (Fed) to control the money supply in the economy. In other words, interest rate is the rate at which the Fed lends to commercial banks. When there is an increase in demand for loanable fund, and increased interest rate will ensure that, all who demand funds will […]

The Product Life Cycle assumptions that there are four stages in which a product goes through in order to reach international markets, assumes that believes that all businesses starts from low levels and then grow to high levels. This is a partial theory that believes that all businesses start at the same level hence follow […]

Introduction A firm is said to have gone global, when it has expanded its operations beyond the geographical boundaries where it was incepted, to other continents. Globalization itself means the process by which, various countries have made agreements; which either reduce or completely remove barriers that hinder foreign trade. The weakening of the dollar, decline […]

The problem Greek economic crisis is threatening the future of the euro and euro zone. If Greece defaults, the whole of Europe, and the world economy by extension, would be thrown into a recession. According to newspaper reports, the Greek government fiscal indiscipline after joining the euro is responsible for the problem. Austerity measures imposed […]

In business and economics, globalization can be regarded as the process of adverse integration of capital markets, services, technology and goods around the globe, which reduces international barriers of trade and investments in foreign nations. Globalization broadens and deepens international relationships, trade, investment, technology, and portfolio development. Globalization is mainly driven by increased development in […]

The government is forced to purchase the domestic currency when an expansionary monetary policy is used in a fixed exchange rate. It reduces the money supply. It causes aggregate demand to decline, which reduces imports. It causes a surplus on the balance of payments (Carbaugh, 2013). An expansionary fiscal policy involves increased government spending financed […]