Analysis of Open and Closed Economies

Analysis of Open and Closed Economies Table of Contents (Jump to) TASK1 1.0 DEFINITION OF OPEN ECONOMY AND CLOSE ECONOMY 1.1 DIFFERENCES BETWEEN OPEN ECONOMY AND CLOSE ECONOMY 1.2 COUNTRY WHO PRACTISE OPEN ECONOMY AND CLOSE ECONOMY 1.3 CONSUMPTION AMONG OPEN ECONOMY AND CLOSE ECONOMY 1.4 INVESTMENT AMONG THE OPEN ECONOMY AND CLOSE ECONOMY 1.5 IMPORT AMONG THE OPEN ECONOMY AND CLOSE ECONOMY TASK2 2.0 UTILIZE 2.1 WEALTH DISTRIBUTION 2.3 FOUR PRODUCTION FACTORS EFFICIENTLY AMONG WEALTH DISTRIBUTION 2.4 INTRODUCE NEW TECHNOLOGY AMONG WEALTH DISTRIBUTION 2.5 INVESTMENT IN NEWPLANT AND EQUIPMENT AMONG WEALTH DISTRIBUTION 2.6 ENSURE SUFFICIENT DEMAND AND SUPPLY FOR PRODUCTS AMONG WEALTH DISTRIBUTION 3.0 CONCULUSION 4.0 REFERENCES TASK1 1.0 DEFINITION OF OPEN ECONOMY AND CLOSE ECONOMY An open economy is an economy in which there are economic activities between domestic community and outside, e.g. people, including businesses, can trade in goods and services with other people and businesses in the international community, and flow of funds as investment across the border. Trade can be in the form of managerial exchange, technology transfers, all kinds of goods and services. Although, there are certain exceptions that cannot be exchanged, like, railway services of a country cannot be traded with another to avail this service, a country has to produce its own. This contrasts with a closed economy in which international trade and finance cannot take place. The act of selling goods or services to a foreign country is called exporting. The act of buying goods or services from a foreign country is called importing. Together exporting and importing are collectively called international trade. There are a number of advantages for citizens of a country with an open economy. One primary advantage is that the citizen consumers have a much larger variety of goods and services from which to choose. Additionally, consumers have an opportunity to invest their savings outside of the country. In an open economy, a countrys spending in any given year need not to equal its output of goods and services. A country can spend more money than it produces by borrowing from abroad, or it can spend less than it produces and lend the difference to foreigners. There is no closed economy in todays world. An economy in which no activity is conducted with outside economies. A closed economy is self-sufficient, meaning that no imports are brought in and no exports are sent out. The goal is to provide consumers with everything that they need from within the economys borders. A closed economy is the opposite of an open economy, in which a country will conduct trade with outside regions. 1.1 DIFFERENCES BETWEEN OPEN ECONOMY AND CLOSE ECONOMY 1.2 COUNTRY WHO PRACTISE OPEN ECONOMY AND CLOSE ECONOMY American countries in adopting open economy and free and other trade practices or the United States an open economy is the opposite of a managed economy. It is one that is characteristically market-oriented, with free market policies rather than government-imposed price controls. In an open economy industries tend to be privately owned rather than owned by the government. In the area of international trade an open economy is one whose policies promote free trade over protectionism .On the other hand, a managed or closed economy is characterized by protective tariffs, state-run or nationalized industries, extensive government regulations and price controls, and similar policies indicative of a government-controlled economy. In a managed economy the government typically intervenes to influence the production of goods and services. In an open economy, market forces are allowed to determine production levels. A completely open economy exists only in theory. For example, no country in the world allows unlimited free access to its markets. Most nations have fiscal and monetary policies that attempt to improve their economies. Many economies that are open in some respects may still have government owned, monopolistic industries. A country is considered to have an open economy, however, if its policies allow market forces to determine such matters as production and pricing. 1.3 CONSUMPTION AMONG OPEN ECONOMY AND CLOSE ECONOMY In a closed economy, all output is sold domestically, and expenditure is divided into three components: consumption, investment, and government purchases. Y = C + I + G an open economy, some output is sold domestically and some is exported to be sold abroad. We can divide expenditure on an open economy’s output Y into four components: Cd, consumption of domestic goods and services, Id, investment in domestic goods and services, good government purchases of domestic goods and services, X, exports of domestic goods and services. The division of expenditure into these components is expressed in the identity. 1.4 INVESTMENT AMONG THE OPEN ECONOMY AND CLOSE ECONOMY An open economy is one that engages in international exchange of goods, services, and investments. Exports are goods and services sold to buyers outside the country, while imports are those purchased from foreigners. The difference between exports and imports of goods and services is called net exports. When foreign trade is introduced, domestic demand can differ from national output. Domestic demand comprises consumption, investment, and government purchases (C + I + G). To obtain GDP, exports Ex) must be added and imports (Im) subtracted, GDP = C + I + G + X. 1.5 IMPORT AMONG THE OPEN ECONOMY AND CLOSE ECONOMY The act of selling goods or services to a foreign country is called exporting. The act of buying goods or services from a foreign country is called importing. Together exporting and importing are collectively called international trade. There are a number of advantages for citizens of a country with an open economy. One primary advantage is that the citizen consumers have a much larger variety of goods and services from which to choose. Additionally, consumers have an opportunity to invest their savings outside of the country. TASK2 2.0 UTILIZE Utility, or usefulness, is the ability of something to satisfy needs or wants. Utility is an important concept in economics and game theory, because it represents satisfaction experienced by the consumer of a good. Not coincidentally, a good is something that satisfies human wants and provides utility, for example, to a consumer making a purchase. It was recognized that one cannot directly measure benefit, satisfaction or happiness from a good or service, so instead economists have devised ways of representing and measuring utility in terms of economic choices that can be counted. Economists have attempted to perfect highly abstract methods of comparing utilities by observing and calculating economic choices. In the simplest sense, economists consider utility to be revealed in peoples willingness to pay different amounts for an economic term referring to the total satisfaction received from consuming a good or service. A company that generates transmits and/or distributes electricity , water and/or gas from facilities that it owns and/or operates. 2.1 WEALTH DISTRIBUTION The distribution of wealth is a comparison of the wealth of various members or groups in a society. It differs from the distribution of income in that it looks at the distribution of ownership of the assets in a society; the word wealth is often confused with income. These two terms describe different but related things. Wealth consists of those items of economic value that an individual owns, while income is an inflow of items of economic value (See Stock and flow.) The relation between wealth, income, and expenses is rather than the current income of members of that society. 2.3 FOUR PRODUCTION FACTORS EFFICIENTLY AMONG WEALTH DISTRIBUTION The four factors of production in economics are land, labor, capital and entrepreneurship. In economics, factors of product are the inputs to the production process. Finished goods are the output. Input determines the quantity of output i.e. output depends upon input. Input is the starting point and output is the end point of production process and such input-output relationship is called a production function. There are three basic factors of production: land, labor, capital. Some modern economists also consider entrepreneurship for a factor of production. These factors are also frequently labeled producer goods in order to distinguish them from the goods or services purchased by consumers, which are frequently labeled consumer goods. All three of these are required in combination at a time to produce commodity. In economics, production means creation or an addition of utility. Factors of production (or productive inputs or resources) are any commodities or services used to produce goods or services. Factors of production may also refer specifically to the primary factors, which are stocks including land, labor the ability to work, and capital goods applied to production. Materials and energy are considered as secondary factors in classical economics because they are obtained from land, labor and capital. The primary factors facilitate production but neither become part of the product as with raw materials nor become significantly transformed by the production process as with fuel used to power machinery. Land includes not only the site of production but natural resources above or below the soil. The factor land may, however, for simplification purposes are merged with capital in some case due to land being of little importance in the service sector and manufacturing. Recent usage has distinguished human capital the stock of knowledge in the labor force from labor. Entrepreneurship is also sometimes considered a factor of production. Sometimes the overall state of technology is d escribed as a factor of production. The number and definition of factors varies, depending on theoretical purpose, empirical emphasis, or school of economics. 2.4 INTRODUCE NEW TECHNOLOGY AMONG WEALTH DISTRIBUTION In exchange relations two actors come to an agreement to trade with each other on mutually agreed-upon terms. Something is delivered, and something is expected in return, in a quid pro quo (â€Å"something for something†) relation. In product and labor markets, exchanges typically involve a flow of goods or services from seller to buyer, in return for a monetary payment. The monetary payments in turn create flows of labor and capital income. For example, when customers buy shoes from a mall shoe store, the incomes created include the payment of a wage to the shoe salesperson, rent to the owners of the mall, and profits to the owners of the business. Labor income is compensation received by workers in the form of wages, salaries, and fringe benefits. Capital income includes rents, profits, and interest. (Rent as economists use the term, refers not just to rent for housing, but to payments for the use of any asset). 2.5 INVESTMENT IN NEWPLANT AND EQUIPMENT AMONG WEALTH DISTRIBUTION Distribution of wealth and income, the way in which the wealth and income of a nation are divided among its population, or the way in which the wealth and income of the world are divided among nations. Such patterns of distribution are discerned and studied by various statistical means, all of which are based on data of varying degrees of reliability. Wealth is an accumulated store of possessions and financial claims. It may be given a monetary value if prices can be determined for each of the possessions; this process can be difficult when the possessions are such that they are not likely to be offered for sale. Income is a net total of the flow of payments received in a given time period. Some countries collect statistics on wealth from legally required evaluations of the estates of deceased persons, which may or may not be indicative of what is possessed by the living. In many countries, annual tax statements that measure income provide more or less reliable information. 2.6 ENSURE SUFFICIENT DEMAND AND SUPPLY FOR PRODUCTS AMONG WEALTH DISTRIBUTION Have been described as the most directly observable attributes of goods produced and exchanged in a market economy. The theory of supply and demand is an organizing principle for explaining how prices coordinate the amounts produced and consumed. In microeconomics, it applies to price and output determination for a market with perfect competition, which includes the condition of no buyers or sellers large enough to have price-setting power. For a given market of a commodity, demand is the relation of the quantity that all buyers would be prepared to purchase at each unit price of the good. Demand is often represented by a table or a graph showing price and quantity demanded (as in the figure). Demand theory describes individual consumers as rationally choosing the most preferred quantity of each good, given income, prices, tastes, etc. A term for this is constrained utility maximization (with income and wealth as the constraints on demand). Here, utility refers to the hypothesized relation of each individual consumer for ranking different commodity bundles as more or less preferred. FIGURE 1.2 DEMANDS AND SUPPLY 3.0 CONCULUSION This assignment task one based about open economy and close economy. The task two about utility. The open economy is market economy mostly free trade barriers and where exports and imports form a large percentage of GDP. 4.0 REFERENCES Unknown. Open economy. Available: http://en.wikipedia.org/wiki/Open_economy. Last accessed 19th JUNE. Unknown. . Close economy. Available: http://www.investopedia.com/terms/c/closed-economy.asp. Last accessed 19th June 2014. Unknown. Utility. Available: http://en.wikipedia.org/wiki/Utility. Last accessed 19th June 2014. Unknown. Wealth distribution. Available: http://www. Wealth distribution Last accessed 19th June 2014. Unknown. . Wealth distribution. Available: http://www.wealth distribution. Last accessed 19th June 2014.

Rose And Graff :: essays research papers

Two professors of different backgrounds, Mike Rose of California, and Gerald Graff, of Illinois, discuss the problems college students face today in America. Though similar in slight variations, both professors view the problem in different regards and prepare solutions that solve what they feel to be the heart of this academic problem.   Ã‚  Ã‚  Ã‚  Ã‚  Mike Rose, author of The Politics of Remediation, explains that “linguistic exclusion'; is the barrier that prevents many new college students from excelling in the academics at any given university. Gerald Graff, on the other hand, feels that the problem comes from the lack of communication between professors, and that many of the times the students are taught the same concepts but through opposite understandings and in a bias fashion.   Ã‚  Ã‚  Ã‚  Ã‚  Mike Rose met many struggling students at UCLA’s Tutorial Center, the Writing Research Project, and the school’s Summer program. He first describes the loneliness students feel upon arriving at college, and that as they try to find themselves, they all to often lose themselves because they are bombarded with ideas that are so foreign to them. He introduces his audiences to Andrea, a bright young girl out of high school who, despite hours of memorizing in her textbook, could not obtain a passing grade on her Chemistry mid-term. How is this possible if she spent so much time studding? Rose explains that she failed because in college, and in this course in particular, it is not enough for a student to know the material, but rather, to be able to apply it in a various amount of problems. Yet the problem Andrea faces is that she was never taught this in high school.   Ã‚  Ã‚  Ã‚  Ã‚   Rose writes of other students he tried to help as they sat in front of him with eyes that were both sad and confused. From young, jocks, to a twenty-eight year old mother, and an insecure girl that was so afraid to use her own ideas, she turns to plagiarism. Rose explains this situation in great detail, “Students were coming to college with limited exposure to certain kinds of writing and reading and with conceptions and beliefs that were dissonant with those in the lower-division curriculum they encountered.';   Ã‚  Ã‚  Ã‚  Ã‚  Rose places great blame on the professors who assume that these students are culturally prepared to address, and analyze, ideas and concepts that they have never even heard of before. Students, who come from different cultures and backgrounds, are not prepared (especially on their own) to give up everything that have spent the past eight-teen years believing in, in order to write the prefect college essay.

Journal Writing Essay

During this class I have made two self- discoveries that will positively impact my career goals. Those self- discoveries has helped to mold, and shape me into a student that I have never thought I would be. Those discoveries were that I am an organized learner, because I made a study plan to help me determine when, and how I would study. Being that I have five children, I had to make sure that I had set a schedule so that my course work including study time would not affect my family time and take away from spending time with my children and fiance`. Since these are the competing priorities in my life right now learning to obtain trust and consistency in the home while I have been attending school has also improved because not only do I see my success so does my children and fiancà ©. Knowing that I had that support also has made it possible to do my best in school, setting the pace for them to do the same in school also, whether it be good grades, sports, etc. I know that they will continue to be good at what they do and have proven to do so time after time. Another self- discovery that I have made that will positively impact my career goals is my willpower. Willpower has become my greatest strength. Being able to control what I do, leaded to personal improvement. I realize that lack of willpower not only causes you to lose focus it also allows you to fail to achieve goals. My ability to resist short-term temptations have helped me to meet some of my long term goals already. There has never been a day that I thought that I could not achieve my goals. I kept a positive mindset just so I could keep going. Negativity takes a lot of willpower from you and I think success is a part of having a positive mindset. Having that determination was not easy at first I can say that, but having that willpower and thinking about my future will positively impact my career goals. Two self-discoveries that I believe will positively impact my personal life, o ne is my happiness. If I am not happy there is nothing good that will come out of being unhappy. In my life I noticed that unhappy people wait for something to make them happy. Happy people make themselves happy without hesitation because they choose to have  positivity surround them in all areas of their lives. I am that happy person, I do not feel like being unhappy because it drains energy, it drains potential, it sucks the life out of you, and it keeps you from becoming successful. I am happy because I am not afraid of change, I am valued, and I attend school knowing that I am a success story. I learned to create positive changes in my life. In doing so this has made a positive impact on my personal life. My character will also have a positive impact on my life. Knowing who I am, my beliefs, values, and morals. The clearer I became about what I value and what I believed in the more effective I became not only for me, but for my family, my friends, and my peers. I have this thirst for knowledge and a thirst to make the best out of any situation and this impacts my personal life in so many positive ways because when I know who I am , my children will learn their true identity because they are my children and they share the same DNA. My grandmother use to tell me that I can be different from everyone else and still be blessed and fabulous, and I believed her.So this has played a part in my self- identity. I also had to explore what my heart wanted, so that I could truly identify who I was, the most beautiful thing that could have happened to me was unfolding that I was an excellent mother, a great friend, and a superb student. Knowing these few things lead me to know who I was in the beginning and knowing this has made a positive impact in my personal life. My biggest take way from this course is keeping a growth mindset and knowing that I always have room for improvement. I want to keep ownership over my learning experience. I am in control of my success. I am able to keep this in mind and always grow with it. This is something that I had to develop because when I was younger I had a fixed mindset I did not want to change because I was set in my ways and it felt like everything I was doing had failed me, so I figured that I would quit trying and give up. One day that change I started thinking of other approaches of how to be better and I used trial and error as a way of figuring out what I needed to do. So as I was thinking and applying I realized that I had that growth mindset and I have kept it all through the years. While learning about the fixed mindset and growth mindset I gained a better understanding on what life is really about also and I saw the bigger picture. The way I perceived it to be is to  noticed that if something is not working right the way you are doing it, then try another way and if that works out better than stick with it, but have fun with it and be creative and then you will be successful that way . Life is about trial and error and never giving up no matter what.

INTERNSHIP REPORT ON FOREIGN EXCHANGE OF BANKS - 1069 Words

LETTER OF SUBMISSION Date: February 08, 2008 To Chairman Department of Marketing Studies International Marketing University of Chittagong. Through, Supervisor Department of Marketing Studies International Marketing University of Chittagong. Sub : Submission of Internship Report. Dear Sir, Here is my report on â€Å"Foreign Exchange policy of EXIM BANK Limited : A Critical Evaluation † submitted to your honor. A methodological research was conducted to prepare the report for fulfillment of the requirement of Internship Program, an integral part to the academic curriculum for MBA. This report has been prepared on the basis of the findings out of the research work with practical knowledge, which includes collection of†¦show more content†¦Service from banking is seemed to vary from service provider organization to another service provider organization. This sensitive part gets more sensitivity when individual as well as country’s potentiality like â€Å"Foreign exchange policy â€Å" of a bank involves in there. And, it becomes more complex if that bank owned by a private sector and its also Shariah based banking institution. This is why, I feel myself fortunate enough to win a chance for undergoing an internship program EXIM Bank limited special reference with CDA avenue branch. Foreign Exchange policy of our country approved by Bangladesh Bank. This specific policy must be follow by the all other bank. We know Export and import is the most important issue for every country. Every country’s national bank determined its policy, which are highly related to the country’s welfare. In our country our national bank Bangladesh Bank determined this policy. This profile reflects the unique position of the† Foreign Exchange Policy of EXIM Bank Bangladesh limited† is enjoying. So, i think a deep-rooted study may explore the mystery of its success side by side indicating the reason behind failure one to another service provider organizations. This study will comprise the exploratory findings of EXIM Bank Bangladesh limited its General Banking, Loan investment, Specially Foreign exchange policy,