My Dearest Wife:
Today I need to tell you some good news and some bad news. I decided to tell you the bad news first because when I tell you the good news you will understand the bad news isn’t all that bad. However, before I start it is best to remember our journey together and what we achieved with our lives as a couple and family.
Who ever thought when I first met you in college we would be married. I needed tutoring in calculus and you were a math major. We both went on from college and achieved our professional goals. You become an actuary and I become an economists. I cannot thank you enough for supporting me while I pursued my PhD in Economics.
We then focused our attention on raising two beautiful children, gave them emotional and financial support to help them achieve their passions. Read More →
How each industrialized nation operates is based on their political economic realities. When nations trade those political economic realities play a significant role in the standard of living of each nation.
When company’s offer services for the world market they need to be priced competitively. Other industrialized nations have socialized healthcare. Regardless of the pros and cons of a national health care system one thing is true, some industrialized nations do not have the financial obligation of health care costs being part of their financial statements. That one cost reduction gives a significant advantage to those other industrialized nation’s businesses. Read More →
Having foreign labor support domestic economies tremendously affects a country’s domestic labor force. The obvious is when a major corporation moves operational services to another country. However, it is not just the major corporation doing this it is every business large and small.
A simple analysis is a web portal odesk.com the world’s largest freelance community of labor services from people all over the world. The extent of services offered covers more than 60 different categories ranging from web design to all forms of business services.
Some people might say this is a good thing. A small business owner can find resources to help his/her business grow Read More →
In international economics there is a product life cycle concept. It basically means innovative products that originate in America will eventually be lost to foreign manufacturing. This is mainly caused by cost differences between countries. The only way for the American economic system to stay healthy is to keep being innovative.
The product life cycle has several stages:
- Create and Sell Product Domestically
- Expand Product to Foreign Markets
- Foreign Markets Growth Supports Local Mfg. & Distribution
- Manufacturing & Distribution Cost Cheaper in Foreign Market Export to America
- American Manufacturing is closed
The same company owned both manufacturing facilities, Read More →
There are three stages to industrialism primary, secondary and tertiary. A society starts out with most of its labor force in the primary stage. As industrialism advances the labor force transfers to the secondary stage and on the final level of industrialism where most of the labor force resides in the tertiary stage.
The three stages are also known as agriculture, manufacturing, and services. While all three stages always exist, depending on the stage of industrialism determine what percent of the labor force is in each segment.
As you might suspect industrial economic systems Read More →
To have a global economy would be one of the greatest achievements in human history. All countries regardless of their social and cultural difference would share the same business and economic system rules.
We would have uniform business contract rules (we do now with Incoterms), uniform environmental regulations, one money supply and one legislative body administrating our world economy. We would be one economic system. In addition because we are in a world economy cost would be somewhat equal throughout the world. Read More →