Financial Economics

Devaluating Yuan   A Masterstroke by China   I have been criticizing China for their aggressive international policy, but one thing I would like to appreciate is their economic policy for handling of their currency in the global market. In the past and currently, many countries are worried about decreasing value of their currency, but China can devaluate Yuan without affecting their economic situation. The economies of those nations have shown an adverse effect, but China is on raising aside. So how did the Chinese economy is not only able to survive but also able to grow at a high pace? What are those steps that help China to achieve this? And how devaluating Yuan helped China? I will try to answer these questions in this blog To understand this, first, we have to understand the difference between the Devaluation of currency and Deprecation of currency. Devaluation of currency – ...

The world was in a shock when it heard about a Boeing 737 Max had crashed in Ethiopia, and this crash killed 157 people. After this crash, some strong steps had taken by many countries, but the question arises, how much this will hit badly to Boeing. In this blog, we will see how economical it will affect Boeing.   Boeing 737 Max is a relatively new plane introduced in August 2011, and it performed its first flight in January 2016. It is a fourth generation aircraft which cost from $99.7 million to $134.9 million for a unit. They consider this plane a modern plane. It is not the first time that a plane has crashed and people died if but it is rare that an aircraft manufacturing company is to be directly blamed for the accident. Here, Boeing is in the fault because of the same model Boeing 737 Max 8 has crashed twice in five months killing all approx. Three hundred forty-six people on board and the pattern was similar in both planes as both crashed within 15 minutes of take-o...

Currently, India and Pakistan’s relation is on the decline side in the past few weeks due to attack on CRPF soldiers killed in bomb blast in the Jammu and Kashmir. In response, the Indian air force attacked a terrorist camp in Pakistan. This caused a warlike, but the question arises how much war can affect Pakistan’s economy? Can does India create a crisis in Pakistan without announcing a war? Then my answer will be partial ‘Yes’ without announcing a war India can create a crisis in Pakistan. So let’s see how India can able to do it. Pakistan’s economy is not a self-sufficient economy; it depends upon other countries to run its day to day life and India can block this to create a crisis. 1. Stopping the exports –                                       The first step that Indian can take is by stopping the exports and imports to Pakistan. India and Pakistan trade was not sign...