Though a recession is an inevitable component of the economic cycle, it is inevitably succeeded with economic recovery at some point. During the recession, the employment level, discretionary income, and overall consumer spending fall looming hard times for businesses and their employees. All these declines start going up during the recovery signalizing that it is once again safe to hire people and expand industrial capacity. The unemployment rate usually lags a little behind during the recovery. It happens as businesses hesitate to reinvest straight after the downfall. In a business cycle, it is always necessary to halt the recession
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Prices on oil determine the wealth of many countries and economic relationships on the global scale. In the beginning of the 21st century, oil price rose from $30/bl in 2004 to $140/bl in 2007. It formed due to the huge demand of fast-growing Asian economies and many more countries. Though the oil price became stable for a couple of years after the global crisis, it plummeted further in 2014 and reached the point of $26/bl in 2016. Obviously, the demand of large global importers weakened as more conventional and alternative energy resources became available. The change is definitely positive for
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At the present moment, China is the second-largest economy in the world. The country stimulates global growth and economic development with its growing GDP. While the US and some part of Europe take a protectionist policy, China insists on globalization. Free trade and open markets are of utmost importance to the prosperity of the country. To the western economies, China offers new markets and investments as well as a tough competition. Many industries in the west cannot stand the gigantic flow of products from Asia that makes imports cheaper than domestic production. The splendid economic performance of China generated from
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It appears that such noneconomic issues as global warming or loss of biodiversity have financial consequences too. Amazingly, different facets of life in nature and human activity are interrelated even though the link is not visible to all. Rich biodiversity provides conditions for sustainable living that is so popular these days. Besides, tourism is a great incentive to keep the nature as diverse as possible. Reservations, coral reefs, and other places with untouched nature attract more visitors with every year. But for the rest, biodiversity does not bring a huge income. That is why companies and individuals hardly think
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The European Union maintains close economic relationships with China, its second biggest trade partner behind the US. In 2016, the EU mapped out its relationship with China for the next five years. The new strategy included the prospect of negotiations on a Comprehensive Agreement on Investment between the parties. Even after Brexit, the EU – China relationships will not go down despite the volume of trade and investment is likely to decrease. In general, trade policies of China benefit to EU as its primary economic partner. The recent trade policy of China reflects needs of the country in the first
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