Article Analysis



Article Analysis

Forum 2, Thread 1: US Current Account Trade Deficit Narrows

Question 1:

The U.S. trade deficit in January widened by 16.5 percent to 44,400 million, after several months of decline by lower imports. The US account trade deficit expands because of the behavior of the macroeconomics saving and spending in the country and abroad (Crutsinger, 2013). The trade defict has expanded in the last four years at its highest peak. The January data, the month in which the deficit increased by 6,300 million compared to December 2012, are within the range expected by analysts, who felt that the trade deficit of the first global economy would increase after late last year reached its lowest level in three years. There are countless negative impact of the trade defict but experts are not sure if it will strain the economy of United States. The three examples of the causes of US account trade deficit to expand are:

A saving-investment imbalance

Changes in the investment and saving patterns in US

Interest Rates and International Capital Flows

Question 3:

The economists are concerned about the US trade deficit because it affects the margins of profits, it results in loss and because of the deficit the market becomes saturated with a specific product. The major reason for the concern is the sustainability issue. The trade deficit might not be sustainable for a long time. It will ultimately exceed the amount of what is being paid to the foreigners. If the United States trade deficit expands more, it will result in the devaluing of the dollar. Ultimately, the reputation of the dollar will be at stake in the global market.

Question 4:

The global imports and exports play a significant role in regards to the trade deficit. The main reason for the trade deficit is that the import of the country exceeds the export of the country. The United States is imports maximum goods from several foreign country but there is a very low percentage of the goods being exported to the foreign country. The country is importing more and more and the gap between the amount of import and the amount of export is expanding. This is the major concern and the main reson of the trade deficit.

Forum 2, Thread 2: South Korea's Hottest Import: Foreign Workers

Question 1:

There will be a negative response towards the foreign workers by the local citizens of South Korea. However, there is a need for the government and the business organizations to ensure the Korean citizens that importing the foreign workers is resulting to be a major benefit for their country. The South Koreans believe that the foreign workers will take over their country and they will lose their won culture and traditions. They view the forign workers as their enemies. This is not the case, the South Koreans need to understand that the foreign workers provide significant benefit to the country. Though, it will take time but trough proper spread of awareness, this racial intolerance can decrease.

Question 2:

Japan will have no other option ...