Financial Economics

Black Gold, Blood of an economy, etc. These are a few phrases given to the oil. Oil is one of the most fundamental parts of any economy. It has driven economies for ages and been at the heart of every economic activity in the world. Countries have fought many wars to influence the oil industry. Oil has helped some small and weak states to develop into one of the world’s wealthiest nations. Oil also has created a crisis in the world’s biggest economy and compelled it to revise its foreign policies. This industry has created the world’s biggest company and one of the biggest empires. In the past decade, oil has given immense power to nations to manipulate things as they will. If a state possesses an oil reservoir, it has thrived and archived the unthinkable growth in a few decades, but possessing an oil reserve doesn’t mean a nation will prosper. Many nations have fallen after having a mammoth amount of oil reservoirs. The nations have to use these reserves statistically. To...

The novel Corona Virus is also known as the COVID-19 is the newest member of the Corona Virus family. This virus has been first discovered in Wuhan, China. This COVID-19 now has spared worldwide and impacted around 787,000 and 38,540 casualties have been reported (Till the date). This virus has been reached on every continent of the globe. Europe has now become a new battleground. People are dying daily and WHO has declared coronavirus as Pandemic. As the world is trying to revive from this virus, the world economy is starting to feel the impact of the coronavirus. The developed economies along with the developing economies all are facing recession. As per experts, the worst is yet to come. Many people are comparing this recession with the recession of 2008. As per the ILO (International Labour Organisation) almost 25 million people are likely to lose their jobs due to the crisis. So how a virus lead the world economy into crisis and cause an axe on 25 Million people job? In th...

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 – ...