Financial Economics

why is the Australian economy slowing down                                 A ustralian economy possesses the crown for the economy with no recession from past years. Australia is considering land with no depression. The Australian economy has recorded an uninterrupted growth from the last 27 years. The economy of Australia has even successfully overcome from the recession of 2008.  Many strong developed and underdeveloped economies have affected, but the Australian economy has held his ground in an adverse situation, and this is the dream of many economies. Australian Dollar has also shown stability in past years.  When you look at the Australian economy, it doesn't have a large economy like the USA or export-oriented economy like China, etc. which can help to have sustainable growth. When you look at the Australian economy it doesn't have any particular sector or factor which is respo...

1. History of Globalization Theodore Levitt is the person who created the term “Globalization” He was a Harvard Business School professor. He invented term in Harvard Business School review in 1983 the article named as “Globalization of the Market.” Meaning of Globalization in Cambridge Dictionary –                     “The increase of trade around the world, especially by large companies producing and trading goods in many different countries.”    Meaning of Globalization – “The process of interaction and integration among the people, companies and government of different nations, a process driven by international trade and investment and aided by information technology.” In simple words, Globalization refers to the increasingly global relationship of culture, people, and economic activity. It generally used to refer to economic globalization. The glob...

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...

Brexit has been a hot subject in the past few weeks as the UK is nearer to withdraw itself from the EU. As Brexit is around the corner, it's becoming a great topic whether Theresa May cannot present the deal, but also passed this deal through parliament. Till now Theresa May cannot give the bill. There are many problems in the queue such as trade deal, Irish border, and EU people living in the UK and vice versa, but in this blog, we will see why the UK needs Brexit. To understand lets first see what the EU is. The European Union is a political and economic union of 28 member states that located primarily in Europe. They established the EU in 1999 and came into full force in 2002. EU has developed a single internal market through a law to all member nations. The main aim of the EU is to have a free movement of people, goods, services, and capital within the internal market. The EU also makes the rules for trade. In simple words, the EU provides a collective bargi...