hummerrr... or ch(ina)ummerrr???

CH.8 - ITS THE 'CHUMMERRR' =)

summary

Hummer is a brand of off-road vehicles sold by General Motors (GM). This article talks about how since 2008, the brand has been reviewed and showed the possibility of being sold or eliminated due to the decreasing demand for large SUVs as a result of higher oil prices. Almost immediately after the announcement, a pair of Indian automakers expressed interest in purchasing all or part of Hummer.

While in the process of whether to sell off or eliminate the Hummer. GM announced bankruptcy. in the announcement, it revealed that the Hummer brand would be discontined. However, the following day, GM announced that instead it has reached a deal to sell the brand to an undisclosed buyer. On June 2, CNN identified the buyer of the Hummer truck unit as China-based - Sichuan Tengzhong Heavy Industrial Machinery Company Ltd.

Tengzhong is expected to keep HUMMER a U.S.-based company, and the HUMMER global headquarters will be in the United States. Under the terms of the agreement, Tengzhong will initially contract production and major components to General Motors.

Connection

This article is related to the topic on types of business enterprises, and foreign ownership. First, the business type established between the China's Tengzhong, and US's Hummer is a partnership eterprise. Which according to the Economics textbook - means that there are two or more persons own an operate the business firm and are liable for its debts. This is shown by that although the Hummer brand is sold off the Tengzong; its based company, and the HUMMER global headquaters will still be U.S. based. Next off, the benefits of this foreign deal is that it creates a market access by introducing the GM brand to the Chinese and the increased exports that result from foreign-owned firms will strengthen the foreign-exchage value of the U.S. Dollars, aiding the U.S. to get back out of the recessionary clouds. There is also technology transfer, where the Americans and the Chinese can share their knowledge and innovate; that includes benefits on research and development and employment, which the deal claimed the preserve 3,000 jobs for the Americans.



Reflection

After reading this article, I have once again felt the power of the global market. How it ties and connects almost everything, and everyone with such ease. The evolvement have created a shortcut for better or worst and the ultimate route to unlimited access. The deal have saved both the possible elimination of the HUMMER brand and jobs for thousands. It is amazing to see how a simple transaction like that could affect largely. I am very exciting to see what the Hummer will become in the future.

CH-8 THE CANADIAN ECONOMY AND ITS IMMIGRATION POLICIES

One of the approach to economic stabilization policies discussed in chapter 8 is The Economy and Immigration. This policy was introduced to stimulate spending and create jobs so in order to control unemployment and inflation rates.

SUMMARY
The article that I have chosen is about Canada's latest immigration news on various changes and new policy implementations. In particular, I have picked out an article that talks on one of the action plan introduced by the Ministry of Immigration - A fast reviewing application process for the federal skilled workers coming into the Canadian boarders. It is said that the amount of time to receive the official response will be reduced from the seemingly endless years, to about 6 -12 months. Which is a very pleasing number for many eager foreigners who are wanting to come.

"Canada is facing a long-term labour shortage so the government is not going to turn off the immigration tap only to have to turn it back on later," stated Citizenship, Immigration, and Multiculturalism Canada Minister Jason Kenney. British Columbia and Alberta alone are going to need an additional 600,000 foreign workers over the next five years, he went on to say, as aging workers retire and their economies continue to expand.

CONNECTION
The new Ministerial implementations are designed to reflect the needs of the Canadian economy and its society. The most involving party in the Ministry of Immigration would probably be the government human resources, who are majorly responsible for national policies aimed at lessening the amount of structural unemployment in economy. This article also touched on the topic of supply-side economy, which is a stabilization policy that stresses increasing the supply of goods and services in order to reduce the level of prices and to create jobs. It emphasizes increased production in order to stimulate employment and take some of the pressure off price increases. If all goes well, and with a decent amount of skilled workers in various needing laobur forces in the country, Canada will have a very bright future despite of the current global-recessionary times many nations are facing.

REFLECTION

Currently, Canada is facing a shortages of various skilled workers in the country, and an example of an occupation are the lack of doctors, nurses, and many other medifield workers. It may seem to us that there isn't a big deal with a few hundred or thousand people unavailable for the country, as compared to the overall population of the country. However, that is a very wrong thinking. These few hundred or thousand of poeple are the curing gems that have the ability to turn our economy back up a knotch and so in a better shape to compete with other and neighbouring nations.

Revision on policies made by the Ministry of Immigration in coorperation with the national human recources department are signs of great efforts in the attempts on boosting the Canadian economy.

ZIMBABWEEE PAPER $$$ WOOT!

This kid may look rich..... but... he is actually not.... :(

SUMMARY

The Zimbabwean government had been hoping the international financial organization - IMF (International Monetary Fund) to write a good report so to gain support forom other donors in order to resotre some stability to its economy.

But at the end of a 15-day visit to the country, an IMF agent issued a statement saying "technical and financial assistance from the IMF will depend on establishing a track record of sound (good) policy implementation, donor support, and a resolution of overdue financial obligations to official creditors."

It noted, however, that "IMF staff stand ready to continue to assist the authorities through policy advice."

10 Million for some candies?!?!?!?!

CONNECTION

The supply of money in a given situation is an important determinant of the economic condition of a given economy. It repersents the amount of purchasing power available. If the supply of money were to increase, then purchases of goods and services would increase as well. The increased spending would mean more jobs and possibly higher prices. But this wasn't the case for the Zimbabweans currency as the government started printing huge amounts of cheap money with unacceptably sky-high values on them, making their money worth = virtually nothing.

REFLECTION

From the news that I've read and watched, the Zimbabwean's economic crisis has stretched for months. Its inflation rate became the highest in the world last year, fueled by severe shortages of all essentials, including food, fuel and electricity.

And a big part of this was due to its worthless legal tender.

No matter if the zimbabwean's leader was trying to repay it debts or whatever, it is clearly not working at all. Until its economic stabalizes (which is going to take a LONG LONG time...) The Zimbabwean better take on the IMF's advices and work hard through its way for the glimpse of light.

GDP GROWTH NO MORE FOR 2009?!?!?!?!?!?

The International Monetary Fund (IMF) is an international organization that oversees the global financial system by following the macroeconomic policies of its member countries, in particular those with an impact on exchange rates and the balance of payments, which measures the payments that flow between any individual country and all other countries. It is an organization formed to stabalize international exchange rates and facilitate development.

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SUMMARY

The International Monetary Fund announced on Wednesday, January 28th, 2009 that the global economy slowdown in 2009 will drag Canada fortunes down for at least two years.

According to its latest economic updates, they believe that the global economy will barely expand at all - growing a mere 0.5 % in 2009, the lowest rate in 60 years.

But even with the weaker forecast, it is expected that Canada will continue to outperform the U.S. economy in the following years due to the heavy crush down by the national mortgage turmoil while under the rule of Bush.

CONNECTION

During these economy downturns, the Keynsian economic theory is often taken into effect, where governments are actively involving in the growth and maintenance of the economy by increasing government spending to support the demand for goods and services, and hopefully, preserve employment.

Currently, job loss is a major concern for many. People’s disposable income is decreasing, and this will lead to low consumption in goods and services within the nation and therefore, decreasing the overall national GDP level.

REFLECTION

With the global economy coming to a virual halt, nations around the world is trying their best in controlling their financial budget and maintaining a steady flow of economic activities ties among the national / international market.

Now a days, we see a lot of hesitatinos in buyers. People are thinking more about how they spend their $, and everyone is trying to save as much as possible. In this case, most people save their money in the banks. With less money circulating and along with the multiplier effect, the negative impact on the economy is going be quite a hit. This is the reason why an effective governemnt and its ability (decisions made) to get itself back to tract is crucial to a country’s wellbeing.

JOBLESSS?!?!?!?!?!

This is The Labour Force Survey provided by Statistics Canada in regarding with the monthly measure of the number of unemployed in Canada. This measure provides an indication of the country's economic condition.

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SUMMARY
Canada has never seen a monthly job drop like this, Statistics Canada said Friday, not even during the recessions of the early 1980s and 1990s. The unemployment rate soared to 7.2 per cent, from 6.6 per cent in December. That is approximately 129,000 jobs in loss in the economy -- the biggest monthly decline for more than three decades. On top of that, almost all of the Canadian job losses were full-time positions, and unemployment rate fell mostly among core-age adults, 25 to 54 years, as well as among youths aged 15 to 24.

Our Federal Finance Minister, Jim Flaherty, have been working closely with the federal government and other involving parties in jumpstarting the budget for the stimulus plan.

- "If it is necessary to do more, we will do more," said Flaherty.

- "Canada is in for a very difficulty year. We, regrettably, are going to have to expect continuing job losses in Canada." Flaherty told reporters.

CONNECTION

This article talks about how Canada is currently experiencing the foremost breakdown in employment rate since the 1980s. A report from Statistics Canada shows that a shocking increased in percentage (0.6%) from the participation rate has been fired / laid off in just a month time since last year December.
One of the main reasons for the existing lack of employment opportunities in the current Canadian market was the stock market crash-down in 2008; which, like an unstoppable whirlpool that drowned the rest of the global economy down within it.

The series of dreadful events that it brought have cause many individual's disposable income to decrease dramatically and government/corporations' investments have been reduced and reduced.

REFLECTION

I have noticed the quietness in the malls, and in other major department stores.People are not spending like they use to be, everyone is trying to save as much as they can, consumers are thinking twice before what they buy.

When employers are having difficulty in selling their products they will not need as many workers. A decrease in the level of spending by consumers will result in reduced sales for businesses. If consumers are not spending money on goods and services, employers will not need to hire as many. This results in unemployment.

People who are unemployed will not spend money and those who are still employed are afraid of spending. Ultimately, economy is going to decline even more because spending is the main factor of keeping a good economy. Hence, government should impose a tax free financial investment plan or some sort of decrease in tax. This will allow individuals to slowly increase their income.