Macroeconomics Principles For A Changing World - 1001 Words

In reviewing the textbook, Macroeconomics: Principles for a Changing World, one topic of interest was Chapter 2, Production, Economic Growth, and Trade. There were numerous articles relating to the assigned reading and class instructions. Three of these articles are summarized below, then linked to the class material. The chosen articles are UK economy suffers slashed growth outlooks and lacklustre trade data by Josie Cox and Ben Chu, For Dignity and Development, East Africa Curbs Used Clothes Imports by Kimiko de Freytas-Tamura, and Thai growth revised upwards to 3.9 per cent. All of these sources focus on the aspects of economic growth and trade. The first article talks about how the United Kingdoms future of economic growth†¦show more content†¦Two nations that trade with each other can both benefit, but the trade should have few, if any, inhibitions. The second article discusses how the eastern part of Africa is attempting to stop buying foreign clothing. It is not going well, as imports are a main source of goods for many Africans. However, many also believe that imported clothes inhibit not only business for local industries, but the peoples dignity as well. In addition, people in the region are trying to export final goods, not just the resources for making them, and they believe that the United States is acting like a bully because of it. For countries with relatively low amounts of natural resources, the building of local businesses is necessary to aid development. Last year, East African countries tried raising tariffs on foreign outfits, but they paid the price for it. The United States, believing that trading with certain countries would not benefit them, threatened to remove a majority of the nations which were a part of the Africa Growth and Opportunity Act. This act was intended to help trade, and the United States wan ted to prevent people from losing jobs and grant free access to small markets. This article shows that international trade can have practical limitations. The textbook explains that one of these limitations is the fact that while two countries can both benefit by trading with each other, excessive trade canShow MoreRelatedNew Classical Macroeconomics And Macroeconomics Essay1555 Words   |  7 Pagesclassical Macroeconomics is an important school of macroeconomics development since 1970s. New Classical Macroeconomics is originally evolved from the school of Rational Expectations and monetarism. New classical Macroeconomics is also referred to the Macroeconomics of the rational expectations, or equilibrium method for Macroeconomics. New classical Macroeconomics abides by traditions of the classical economics and believes in the effectiveness of market forces. 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