It is rather crude to suggest that the United States, or any world economy for that matter, could end its dependence on oil by switching to renewable energies. The oil beneath our feet does far more than just provide gasoline, diesel fuel, and home heating oil. Oil is refined to produce fuels, plastics and hundreds of different petroleum-based products the modern world would be lost without – including some of the most important components in our smartphones. As such, the price of oil on the open market has a profound effect on the overall economy.
The reasons why China has flatter business cycles than the US:
1. A major part of China economy is comprised of state-owned businesses / national enterprises with very large capacities and economic powers. Anything bad that happens to the economy can be immediately and silently negated without going public. Fluctuations are there, just not known to people.
The world economic system refers to the world’s nations, their individual financial systems, and the associations that connect them in an international marketplace. However, the total collapse of the American housing market  and the global economic disruption that trailed in 2008 brought the phrase “economic meltdown” into focus. For people crushed under a heavy load of credit card debt, a debt settlement program provides them with a sigh of relief. Times are tough and it’s now an accepted fact that a majority of the people are handling some sort of debt or the other. Whether it’s US or Europe, people are finding it difficult to make ends meet, despite working hard.
In recent years there has been plenty of evidence to show just how closely the different economies around the world depend on each other. In order to fully understand our own economy it is now vital to understand it within the global perspective. There have been a number of great books written on this subject. Here are the top 5 best global economics books reviewed.
Different countries around the world have trade agreements with other countries. The most important and influential of all trading agreements is the North America Free Trade Agreement (NAFTA). The members of NAFTA are the US, Canada, and Mexico and it is sometimes referred to as a trilateral trading block. The reason why NAFTA is so important is that between the three of these members there is the largest GDP of any trading block in the world.
Dependency theory has been put forward by social science theorists in an attempt to explain how developed and developing nations affect each other. It implies that the resources flow from poorer countries to the wealthier countries. It is viewed as an opposing view to the notion of a free market economy as it points out deficiencies in that system. This theory has been highly influenced by the work of Hans Singer and Raul Prebisch.
Capitalism and socialism are too very different ways of managing an economy. These two conflicting approaches have been used by different countries around the world and both sides continue to have strong support. There have also been countries like the UK that have attempted to mix the two economic philosophies. The main difference between capitalism and socialism is in regards to how resources in a country should be owned and controlled.
You will likely have noticed that currency exchange rates don’t tend to be static; in fact they can vary greatly from day to day. Some people actually use the fluctuation currency exchange rates as a means to make a profit; buying at one rate and selling at another. You may be wondering though, how exactly are these currency rates decided in the first place. Who decides how much a dollar is worth when compared to the Euro? You may also be asking yourself why they just don’t pick an exchange rate and just stick with it; instead of this constant fluctuation.