Open-Economy and Closed Economy
closed-economy: Here is a list of subtopics related to open-economy and closed-economy: Open economy Trade Comparative advantage Absolute advantage Terms of trade Capital flows InvestmentInvestment
Economics
Net Factor Income
Unlocking the Power of Net Factor Income: A Comprehensive Guide Net factor income, a crucial component of national income accounting, often remains shrouded in mystery for many. This article aims to shed light on this essential economic concept, exploring its definition, calculation, significance, and its impact on various aspects of economic analysis. Defining Net Factor … Read more
Balance of Trade
The Balance of Trade: A Vital Indicator of Economic Health The balance of trade, a fundamental concept in international economics, refers to the difference between a country’s exports and imports of goods and services over a specific period. It provides a crucial snapshot of a nation’s economic performance and its position in the global marketplace. … Read more
Current Account Deficit
The Current Account Deficit: A Tale of Two Sides The current account deficit (CAD) is a key economic indicator that reflects a nation’s financial health and its position in the global economy. It represents the difference between a country’s total earnings from exports and its total spending on imports. A deficit arises when a country … Read more
Foreign Direct Investment (FDI)
Foreign Direct Investment: A Catalyst for Global Growth and Development Foreign direct investment (FDI) plays a pivotal role in the global economy, acting as a catalyst for economic growth, technological advancement, and job creation. It involves long-term investments made by companies from one country (the source country) into enterprises in another country (the host country). … Read more
Balance of Payment Deficit
The Balance of Payments Deficit: A Comprehensive Guide The balance of payments (BOP) is a record of all economic transactions between a country and the rest of the world over a specific period, typically a quarter or a year. It essentially tracks the flow of money into and out of a country. A balance of … Read more
Fixed Exchange Rate
The Fixed Exchange Rate: A Balancing Act Between Stability and Flexibility The exchange rate, the price of one currency in terms of another, plays a crucial role in the global economy. It influences trade, investment, and the overall economic performance of nations. While floating exchange rates, determined by market forces, are the norm in today’s … Read more
Floating Exchange rate
The Dance of Supply and Demand: Understanding Floating Exchange Rates The global economy is a complex web of interconnected markets, and one of the most crucial elements in this web is the exchange rate. This seemingly simple number, representing the value of one currency against another, holds immense power, influencing trade, investment, and even the … Read more
Desalinization
What is desalination? Desalination is the process of removing salt from seawater to make it drinkable. It is a vital process in many parts of the world where fresh water is scarce. Water Scarcity Context Types of Desalination Technologies Thermal Processes Membrane Processes Energy Requirements Brine Disposal and Environmental Impacts Costs and Economic Considerations Current … Read more
Amber Box Subsidy
The Amber Box Subsidy: A Complex and Controversial Tool in Agricultural Trade The global agricultural trade landscape is a complex web of policies, subsidies, and regulations. One of the most contentious issues in this landscape is the use of Amber Box subsidies, a form of government support that directly distorts market prices and trade flows. … Read more