Two Articles on International Business Relationship

he economic resource in the world is limited; however, the demand for the people is unlimited. The people have to make economic decisions in order to allocate the resource in the world efficiently to maximize their needs. In order to use the economic resource effectively, people are required to increase the productivity to reach the desire in the society. In the view point of international business, a better resource allocation is carried out, if the nations can use their excess to change what they needed. And it is the reason of the national trading between each country.In order to improve scarcity of the economic resource, globalization is one of the approaches to use the economic resource efficiency and education to the general public is also increased availability of economic resource in the future. In this essay, the analysis is separated into four parts including introduction to two article related to international business, analyze how the implication mentioned in article affect on the general public and implying the international business knowledge to critical the effects. The article “Global Market Overview” mentions the investment changed in the worldwide.It also related to the facts of globalization, global investments, world trading and economic system implications. The article is analyzed the global market in the form of stock changing and financial performance. (Christine Gaylican 2012) The article also divided the global to four areas including America, Europe, Asia Pacific and the rest of the world. Moreover, the numeric data and the change in performance of the global also presented in the article. The other article “Crawford County partnership links education, economic development” states the importance of education to the future economic development in the world.The article noticed that good education is not only benefit to a single company or group of people, it benefit to the rest of the world. (Crawford County partnership links education, economic development )The article also points out the programs of the educational authority to maintain a sustainable future program for obtaining potential workforce. The two articles are all related to the international business area for how the world is benefit by the trading and sustainable growth on education system. And the effect on the economic system development is also mentioned in the article.The article “Global Market Overview” has the relationship between the growth of economy and globalization, and the implications can be separated for Australia government, Australia businesses and multinational corporate. (Anthony Conchel 2012) First of all, while the governments can semi-control the Australia economy by the monetary policy and fiscal policy, the global change of economy performance also affecting the government reaction in Australia. The centre bank in Australia is keeping an open market operation on the monetary policy, so the currency exchange is depended on the foreign demand in the currency market.While the global export and import rate are always determinate by the economy performance of others nations, the demand of Australia currency is depended on the net export rate. If the global economic is expanding, a higher demand of Australia products with appreciate the Australia currency. Alternatively, if the global economic is in recession, the demand of Australia goods is decreased and the currency is depreciated. Therefore, the global economic performance is affecting the gross domestic product of Australia and the reaction of Australia government is necessary to adjust the Australia economy to potential output in equilibrium.Secondly, the Australia businesses are also related to the global performance changed by the fluctuation on pricing of the products. It is because the domestic consumers are not the only determinant of a local company. While some of the domestic companies are supplying to the foreign company, the quantity supply and production is also one of the vectors for the domestic companies. (Stephen, B & John R 2007) The global economic performance is linked to the quantity productions of Australia companies. Moreover, the inventory available in Australia market is varying by the upkeep for export.As a result, the foreign companies buy and sold the goods in Australia market, and the local companies have to adjust the price for maintaining the competitiveness. (Bishop, E 2004) Finally, the multinational corporate are making decisions from the economic performance in each of the nations. It is because the multinational corporate always use the means of outscoring and outsourcing to increase the profit and flexibility, the global performance is affecting their purchasing and reselling decisions.Therefore, the multinational corporate can take the advantage by distributed economic resource effectively from the information of the global performance. The article “Crawford County partnership links education, economic development” has the association between the growth of economy and education, and the implications can be separated for Australia government, Australia businesses and multinational corporate. As the beginning, one of the responsibility of government is reduced the unemployment rate in order to decrease the negative impact of economic downturn.While the unemployment rate is directly proportional to the crime rate, domestic violent and others social problem, Australia government has to create the job opportunities for the local citizens. (Harris, J 2012) Moreover, the wages and welfare condition is inversely related to the unemployment rate, and the intelligent and ability of labor force reflecting the price level. Consequently, the Australia government has to encourage the education level of the general public in the aim of lower the unemployment rate and prolong with a sustainable growth of the economy in the future.In the article, it also points out that the domestic education is also benefit to the rest of the world. The reason of other nation can also be advantaged is the growth in technology and nation coherence. If Australia is improved by a better technology or economic expansion, the imports and national trading rate are also increased at the same time. The nations are not independent to each other, so the effect of economic expansion is spreading out in the world. ( Liu, W & Sawyer, K 2003) Secondly, the Australia businesses are also implicated by the local education level, which has been stated in the article.As the educational level implies knowledge and the level of techniques of the labor force, the domestic businesses have a higher probability to employee more intelligent workforce in the labor market. As a result, the productivity of the company will be increased and the profitability of the business is also enhanced by a high level of margin. The other advantages of the increased in education level is the increase of quality in the labor force. When the employee are skillful enough to handle multitask at the same time, the costs of acquisition by the companies become lower. Louis, R 2011)If the costs of the production are decreased, the domestic company can increase the markup rate of the products for increasing the profit margin or lower the price to increase the competitiveness among the industry. Nevertheless, the multinational corporate are beneficial by the improvement and development in the education system. While the multinational corporate is dealing with a large budget of investments, the professional employee is desirable for those enterprises. Many unexpected problems, such as overtaking by another enterprise, may happen from time to time.Therefore, the multinational corporate are requiring the elite workers to overcome the sudden situations. On the other hand, multinational corporate always deal with the large projects worth billions of dollars, so the information and data is essential to be accurate and interrelated to the plans. For the article “Global Market Overview”, the globalization and economic system are relevant to the message of the article. As the aim of globalization is encouraging free trade and minimize the barriers on the resource exchange between the countries, the resource allocation is more efficient and improving the productivity.Globalization in the economy helps the world to reduce the wealth gap and improve the economic performance all together. As the countries around the world are developing in different rate, the countries with the advance technology become wealthier than the developing countries. The wealth gap is implying the inequality between the nations, which involving inefficient on allocating the economic resource. While labor force is also one of the economic resource in the view points of economy, the wealth gap weaken the usage the human resource. Chapman, R 2010) The wealth gap has to reduce for improving the resource allocation and global productivity in order to reach a high level of preference. During the trading between nations, the new technology and nature resource trade between nations. Accordingly, the developing countries can enhance the quality of production, and the well-developed countries can improve the quantity of production. (Semyonov, M & Lewin, N 2011) As a result, the global wealth is increased and redistributed in the global economy.Conversely, the information in the article also related to the economic system. The globalization gives more opportunities to the companies to select their investments choices. As the oversea investment is available in the global market, the investments are helping all the nations to growth and increase productivity. When the money can shift between nations, the total quantities of investments are increased in the global market. Then, the companies can use the investments to increase the capital for production, and he productivity of the economy is increased. Consequently, the gross domestic product of the nations is going to be increased and the household income is also raised. After the household income increase, the investments from household is also lifted up and distributed into the market again. (Wible, B 2011) As the result of the chain effect, the global economy will better off and sustainable growth together. The article “Crawford County partnership links education, economic development” is connected to the political economy and economic development.The education system is affecting by the government direction and the sponsorship from the private company, and the education level is directly related to the economic activities. (Benson, P 2011) As the democracy is a political system that government is selected by the residents, the residents can affect the decision on economy and education by elected representatives. Furthermore, the economic system is mixed, so government can control the main direction of economic growth by varying interest rate, taxation and government expenditure. Edwards, A & Shevlin, T 2011) And certain sectors in the market are left to the companies and corporate performance to adjust. Alternatively, the residents also have the freedom to choose their education area and levels, so the economic can maintain a sustainable growth. On the other hand, the education level of the citizen is also the determinants of the economic growth rate and productivity. The higher average level of education also equals to a higher innovation and creativity in the society, so the economic can have a better development and increase the quality of life. Jeremy, G, Juan, S & Cheng, W 2012) Nonetheless, the economic development is depending on the knowledge and culture of the society, so the education level is important to increase the wealth of the society. As human is also one of the economic resource, a higher level of global output can be reached, which is occupying the human resource efficiently. In conclusion, two of the article mentions the importance of globalization and education to the growth of economy. It is also performing different benefit to the Australia government; Australia businesses and multinational enterprise by allocate the economic resource efficient.And the benefit of globalization and economic system is stated in the “Global Market Overview”, while the political economy and economic development mentions in ‘Crawford County partnership links education, economic development’. Globalization is one of the approaches to use the economic resource efficiency and education to the general public is also increased availability of economic resource in the future. And the implication, which has been stated in article affecting the general public and the society. Appendices:Article 1: Global Markets Overview – 08/29/2012 By Christine Gaylican U. S. STOCK MARKETS Stocks ended mostly lower Tuesday as an upbeat reading on U. S. housing prices was offset by a dour report on consumer confidence. The Dow Jones Industrial Average slipped 21. 68 points, or 0. 17%, to 13102. 99. The blue-chip benchmark fell for the sixth time in seven sessions, a choppy stretch during which the Dow has fallen 172 points, or 1. 3%. The Standard & Poor’s 500-stock index edged down 1. 14 points, or 0. 08%, to 1409. 30.The Nasdaq Composite Index gained 3. 95 points, or 0. 13%, to 3077. 14. Energy stocks gained, moving in tandem with crude-oil prices as Isaac, upgraded to a Category-One hurricane, gathered strength as it approached oil rigs and refineries along the Gulf Coast. Chevron rose as the Dow’s second-best performer. Lexmark International soared after the company said it would cut 1,700 jobs, or roughly 13% of its workforce, as part of a restructuring for the printer marker that includes an exit from the inkjet-hardware business.KLA-Tencor, which makes systems that monitor microchip production, was among the biggest decliners in the S&P 500 after analysts at Deutsche Bank cut the stock to sell from hold, warning of a slowing business environment. Investors digested a string of economic news. Home prices rose during June across major metropolitan areas for the first time since 2010, according to S&P/Case-Shiller home-price indexes. But consumer confidence in August fell short of expectations, dropping to its lowest reading since 2011, according to the Conference Board.Separately, a report on manufacturers in the Central Atlantic region saw a contraction in economic activity this month, though at a slower pace than in July. Investors are keenly awaiting Federal Reserve Chairman Ben Bernanke’s speech in Jackson Hole on Friday for signals that the U. S. central bank could undertake additional measures to stimulate the economy. EUROPEAN STOCK MARKETS European stock markets suffered broad-based losses Tuesday, after Spain’s Catalonia region said it would ask for a bailout and as investors fretted about the slowdown in global economic growth after Japan lowered its growth forecast.The Stoxx Europe 600 index lost 0. 7% to close at 267. 32. Drug makers fell after J. P. Morgan Cazenove cut the sector to underweight from neutral. Novartis AG lost 1. 1% and Roche Holding AG lost 0. 7%. Nokia Corp. dropped 7. 8%, pulling back from a 7. 7% gain Monday, when an Apple Inc. court victory helped the Finnish firm’s shares to rally. In the other direction, Vestas Wind Systems AS surged 18. 5% after the wind-turbine maker confirmed it’s in talks with Mitsubishi Heavy Industries on a potential strategic cooperation. Spanish stocks tumbled after Catalonia, Spain’s most indebted region, said it would ask for 5. 02 billion euros ($6. 8 billion) in financial aid as it struggles to pay for services such as hospitals and schools. The IBEX 35 index fell 0. 9% to 7,333. 50; Santander SA nudged 0. 8% lower. FTSE MIB index fell 0. 1% to 14,993. 01. Italy succeeded in selling a maximum targeted EUR3. 75 billion of government debt at mostly lower borrowing costs. Heavyweight miners were among notable decliners in Europe, tracking metals prices lower. Rio Tinto PLC fell 1. 7%, Vedanta Resources PLC lost 2. 2% and Anglo American inched 1% lower. Security firm G4S PLC dropped 2% after it confirmed it booked a 50 million pound ($78. 92 million) loss on its Olympic Games contract.The losses weighed on the FTSE 100 index, which closed marginally lower at 5,775. 71. In France, steelmaker ArcelorMittal lost 2. 7%, weighing on the CAC 40 index. The benchmark index fell 0. 9% to 3,431. 55. German stocks were lower overall despite better-than-expected consumer-sentiment data. The DAX 30 index lost 0. 6% to 7,002. 68. Deutsche Lufthansa fell 0. 8%. German labor union UFO said it was preparing for strikes after negotiations with the airline broke down. ASIA-PACIFIC STOCK MARKETS Asian shares were mixed Tuesday as markets waited for clearer signals from the Federal Reserve at Friday’s annual Jackson Hole, Wyo. symposium over whether it will provide more stimulus. In China, the Shanghai Composite ended up 0. 9% at 2073. 15, after trading flat for much of the session. Blue chips followed Baoshan Iron & Steel Co. higher, as the steelmaker climbed 10% after it announced a 5 billion yuan share buyback. Other state-owned companies gained, with PetroChina and China Petroleum & Chemical Corp. up 2. 1% and 5. 4%, respectively, on hopes they will announce similar plans, analysts said. The positive outcome for the A-share market provided some support in Hong Kong, where the Hang Seng Index ended up less than 0. 1% at 19,811. 80.There were also some poor earnings: China Southern Airlines dropped 2. 8% after its first-half net profit sank 85% due to high fuel prices and losses on foreign exchange. The Nikkei was down 0. 6% at 9033. 29, as the dollar weakened against the yen after the Japanese government cut its view of the economy in August for the first time in 10 months, as slowing exports hindered production and consumer spending failed to expand. Aozora Bank, however, leaped 13. 8% after it announced a buyback of 330 million shares approximately 20% of shares issued–and set a dividend payout ratio of 40%. South Korea’s Kospi was less than 0. % lower at 1916. 33 as the index’s single largest constituent, Samsung Electronics, bounced back 1. 3% from its heavy falls Monday. Hyundai Motor was down 1. 4% as its union plans to strike for three additional days this week, increasing concerns that lengthy industrial action could affect the car maker’s earnings in the second half. COMMODITIES Base metals closed mostly moderately lower on the London Metal Exchange Tuesday, with a weakening dollar helping prices scale back some of the losses made earlier in the session as investors tracked currency moves for direction while awaiting key news from the U. S.Federal Reserve later in the week. At the close, LME three-month copper was 0. 4% lower from Friday’s close at $7,605 a metric ton. Lead was in positive territory, gaining 0. 3% to $1,975/ton. Crude-oil futures ended higher Tuesday, breaking a three-day losing streak, as traders grew concerned about Hurricane Isaac’s impact on oil production in the Gulf of Mexico. Gasoline futures meanwhile gave back some of their prior-day gains. Front-month oil futures for delivery on the New York Mercantile Exchange settled at $96. 33 a barrel, up 86 cents or 0. 9% after a report dismissed the chance of an emergency oil stockpile release.Gasoline futures, which jumped 2. 5% Monday, closed at $3. 126 per gallon, down 2. 87 cents, or 0. 9%. Brent futures settled at $112. 58, up 32 cents. Gold futures pared their losses on data showing a sharp decline in U. S. consumer confidence but settled lower amid renewed concerns about Europe. The most-actively traded contract, for December delivery, fell $5. 90, or 0. 4%, to $1,669. 70 a troy ounce on the Comex division of the New York Mercantile Exchange. Compiled from MORRISON SECURITIES PTY. LTD. Web link: http://au. ibtimes. com/articles/378315/20120829/ftse-hang-seng-index-shanghai-korea-japan. htm#. UEw18LSaqQIArticle 2: |Crawford County partnership links education, economic development |mansfieldnewsjournal. com | Written by Anthony Conchel News Journal Aug 30, 2012 BUCYRUS — Adding the word education isn’t just a change in semantics for a local group. The Crawford County Education & Economic Development Partnership met with Crawford County commissioners Wednesday for an update and to emphasize training opportunities. “This involves the future of our county, and that’s why we believe economic development and education are so important,” said Steve Crall, of IB-Tech and president of the partnership.Crall was one of seven members of the group who met to sign another memorandum of understanding between the two entities. “The challenges our county is faced with require us to step up as a whole and talk to each other, not talk past each other,” he said. The group is proud of a program that involves seniors at all six Crawford County high schools. “We’re the only county doing it in the country as a whole county,” said Janet Pry, of the Bucyrus Area Community Foundation. “This helps freshmen plan a career. They end up shadowing a company, doing a research paper and an oral presentation as a requirement to graduate in 2014. Having an educated and prepared crop of graduates is essential for local manufacturers. “We need a good workforce,” said Annie Carter of Carter Machine Co. of Galion. “We have resources here. We have good jobs and we need to join together and pick ourselves back up (from the economic downturn). “This isn’t about landing a big Honda plant like some people hope for. It’s about the detail that’s involved to fix our problems. ” The group thinks training programs are an important asset to link high school graduates with the right careers.County Auditor Robin Hildebrand credits Director Dave Williamson and the partnership with taking the right steps. The partnership was formed in 2006 and Williamson joined in February 2007. “We have companies willing to invest in drug-free, good employees,” Hildebrand said. “People can get trained and get good jobs here. ” Crall thinks stopping the brain drain from Crawford County is important. “We qualify our workforce,” he said. “We have hired some young employees with passion and desire. I see that. “There are some awesome opportunities in this county. This is about stabilization and retention. Commissioner Mo Ressallat said he’s pleased with the work the group has done. “When I leave this office, I’ll know something good is happening here,” he said. Web link: http://www. mansfieldnewsjournal. com/article/20120830/NEWS01/208300304/ Reference list: Anthony Conchel 2012, ‘Crawford County partnership links education, economic development’, Mansfieldnewsjournal, 30 Audust, viewed 8 September 2012, Benson, P 2011, “Development The contribution of the developmental assets framework to positive youth development theory and practice”, Advances in child development and behavior, vol. 1, no. 1, p. 197, Macquarie University Library, viewed 8 September 2012 Bishop, E 2004, Finance of International Trade, Elsevier Ltd, Sciencedirect, viewed 8 September 2012 Chapman, R 2010, Culture wars: an encyclopedia of issues, viewpoints, and voices: Wealth Gap, M. E. Sharpe, Armonk Christine Gaylican 2012, ‘Global Market Overview’, International Business, 29 Audust, viewed 8 September 2012, Edwards, A & Shevlin, T 2011, “The value of a flow-through entity in an integrated corporate tax system”, Journal of Financial Economics, vol. 101, no. , pp. 473-491, Macquarie University Library, viewed 8 September 2012 Harris, J 2012, “Unemployment”, Archives of General Psychiatry, vol. 69, no. 5, pp. 445-445, Macquarie University Library, viewed 8 September 2012 Jeremy, G, Juan, S & Cheng, W 2012, Quantifying the impact of financial development on economic development, Review of Economic Dynamics, viewed 8 September 2012 Liu, W & Sawyer, K 2003, “How free are free trading options”, Pacific-Basin Finance Journal, vol. 11, no. 5, pp. 573-591, Macquarie University Library, viewed 8 September 2012Louis, R 2011, “Education”, SIAM Review, vol. 53, no. 2011, p. 559, Macquarie University Library, viewed 8 September 2012 Semyonov, M & Lewin, N 2011, “Wealth Inequality: Ethnic Disparities in Israeli Society”, Social Forces, vol. 89, no. 3, p. 935-959, Macquarie University Library, viewed 8 September 2012 Stephen, B & John R 2007, Microeconometric Models of Investment and Employment, Handbook of Econometrics, viewed 8 September 2012 Wible, B 2011, “Resource Investment”, Science, vol. 334, no. 6054, pp. 290-290, Macquarie University Library, viewed 8 September 2012

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