Friday, July 23, 2010
Saturday, July 17, 2010
Explains the contradictory situation which the United States faces: enjoys being a net recipient of interest payments despite a large external debt.
Discusses the advantages and disadvantages of international borrowing, and compares these borrowings compared with direct foreign investment.
International borrowing (Isgut 2001) is beneficial to (developing) countries: such finance can help speed up capital accumulation and encourage economic growth, allowing a smoother distribution of consumption expenses, making it possible to improve the living standard of citizens before the fruits of economic growth materialize. For example, prior to the Asian financial crisis, wealth created by export-led growth contributed to an investment boom in commercial/residential property, industrial assets and infrastructure. Thus, the construction industry flourished (i.e. more employment): much of this construction was financed via heavy borrowing from (foreign) banks, which were willing to lend as long as the value of property continued to rise (Hill, The Asian Financial Crisis)...Read more>>
Tuesday, July 13, 2010
As advancement in technology makes a vast amount of improvement each year, it's hard not to wonder whether society is starting to become controlled by technology. The vast majority of people believe that society is slowly being controlled by technology, although there are some who may beg to differ as they believe that humans have full control over technology, and that technology is a tool used for our convenience. But the fact remains that as long as we are reliant on technology, no matter how much control we seem to have over it, we are slowly being controlled by it as it ebbs its way into our daily lives...Read more>>