Businesses can benefit greatly from low interest rates currently available by prioritizing debt reduction in their organizations.
Global Economic Outlook
Global economic news has painted a very grim portrait of the state of the world's economies as demand continues to decrease and governments struggle to deal with lackluster growth.

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The Japanese government recently issued its monthly economic report predicting difficult months ahead for it economy, as industrial output and exports continue to decline. In a similar fashion, U.S. Federal Reserve staff economists reduced their growth forecast for the third straight time in September; economic growth will continue at an even slower pace than previously projected in the second half of 2010.
Mirroring these announcements and those from other world economies, The Bank of Canada announced on October 19, 2010 that the pace of economic growth will be "moderated" by numerous factors compared to previous expectations. The governor of Canada's central bank Mark Carney went on to describe the Canadian economy as "entering a new phase."
A Corporate Response?
Despite improvements in the economic situation in recent times, there remains major hurdles for growth and demand, which ultimately affects your company (and personal) bottom line. Although it's a time to be cautious, it's also a time to look for opportunities. Interest rates are currently at historic lows or have remained steady in many countries. As economic conditions start to improve, interest rates will undoubtedly increase and ultimately cost borrowers more money.

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A fundamental fallacy accepted as fact throughout most of the economic and political communities is private debt is better for the economy than public debt. It is considered a fact beyond dispute that private debt stimulates an economy which leads to expansion while public debt is always a net drain on an economic system since it diverts money from the private sector.
In reality it doesn't matter who borrows the money: The economy cannot tell and doesn't care. To understand why where the borrowed funds originate does matter to the economic system, you have to understand fractional reserve banking.

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In a fractional reserve banking system the banking system can create and lend dollars, that is, purchasing power, out of thin air. Let's assume the current reserve requirements are 10%. This sounds like if a bank has one dollar in new deposits it can only lend ninety cents since it needs to hold ten percent of its deposits in reserve. And this would be true if there were only one bank. But when Bank A lends the ninety cents most, if not all the money, winds up in another account at another bank increasing its reserves by ninety cents. That bank holds onto $0.09 as reserves and lends the $0.81 which ends up in another account at Bank C. Bank C adds $0.08 to its reserves and lends the $0.73. As you can see, that original $1.00 increase in reserves has led to a substantially higher increase in purchasing power. This increase in purchasing power can be inflationary. After all, that is part of the traditional definition of inflation: An increase in purchasing power relative to the goods and services available for purchase. In reality, it's what this created money purchases that determines the benefit or damage to the economy.
If the created purchasing power finances a productive investment, a new factory producing solar panels for example, the new money is backed by real goods available for purchase and the inflationary pressure is minimal or non-existent. But if the new money finances a service such as haircuts or non-productive investments, then we have a problem. There's new money floating about the economy, feeling the full effect of the monetary multiplier, but no new goods or services are available for purchase.
That's why, of the two factors which do matter to the economy, the second, where the money is going, matters most. We can borrow money to initiate new production or we can borrow money to simply maintain the status quo. The difference between the two matters a great deal to the economy. But, again, it doesn't really matter whether it's the government doing the borrowing or if it's the private sector. Either can finance production, which is beneficial, or economic consumption, which is detrimental to the economy.

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2011 in Germany, France and other euro-zone economy, driven by major countries, GDP growth will be close to 2%, a slight improvement over 2010. Spain does not need outside help currently, even if Spain needed help, the European Union, IMF and the European Central Bank will also aid as soon as possible to prevent the spread of the crisis. Therefore, the debt problems of the periphery of Europe will hit the market from time to time, but far from the negative impact of the debt crisis will not be as big of Greece.

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Eurozone growth will be slightly improved
In 2011, the euro-zone economic growth will continue to divide countries, major economies and the edge of the national show economic situation.
Terms of the major countries, Germany and France to the good momentum of economic growth, including the following aspects: First, the pace of recovery between German and French manufacturing faster, PMI index showed a steady upward trend in overall; Second, German and French real estate market improved significantly, Germany has approved the corresponding value of residential construction rose in recent months were more than 5%, the French houses and apartments in the number of months available for sale fell to normal levels in history; the German job market is better than the United States, Germany's unemployment rate from January 2010 to 8.1% to 7.5% in November.
However, by the debt-crisis countries, the euro zone's fourth largest economy, Spain's economic situation is good. Spain, some of the economic leading indicator, such as industrial new orders, consumer confidence index and business confidence compared to 2009 has shown a significant improvement. The economy of Portugal and Greece lack of endogenous growth momentum, coupled with financial constraints, these economies will remain sluggish in 2011, economic growth will be below zero.
Therefore, on the whole, Germany and France account for the total economy of the euro area and half, they will continue to play the "locomotive" role, while some marginal country's economy still plagued by financial constraints, economic growth slower, such as Greece and Portugal. As Greece, Portugal and the economic aggregate of less than 5% share in the euro area, the drag on economic growth in the euro area as a whole is very small. 2011 in Germany, France and other euro-zone economy, driven by major countries, GDP growth will be close to 2%, a slight improvement over 2010.
2011, the biggest risk to the global economy is that the debt crisis in Europe, if a second round of the crisis on the global economic recovery and trends in global capital markets have a tremendous impact. Furthermore, there is likely to set off the crisis in Portugal and Spain.
Portugal as the economy there is a structural problem, its economic foundation is weak, since the subprime crisis slow pace of deficit reduction, progress as Spain and other countries. Its financing needs in 2011 was 385 million euros in the euro area GDP, one of the highest level in a country, coupled with its market has been in increase in state financing costs, the financing of the Portuguese in 2011, the pressure can not be optimistic, and ultimately may seek EU and IMF assistance. Spain is the euro zone's fourth largest economy, the economies of scale are Greece, Ireland and Portugal, and three of the double. If Spain, a huge fiscal deficits in the future or a bank of large-scale collapse of the European Union, IMF and the ECB did not provide timely and effective assistance, then Europe will usher in the second round of the debt crisis, while a major impact on global financial markets.

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We are indeed capable of changing our lifestyles to adopt sustainable practices, but there probably aren't enough incentives for the masses to do so. But if you've read this article and think it's a good idea to become a sustainability practitioner, why not start straight away - and spread the word among a few of your peers. Readers and viewers must know the basic concepts and principles of economic development. After this, will be economic problems and development strategies that is applied in this article. The next part is development policies and programs that has something to do with monetary and fiscal policies in. It will be discovered as a process for an economic planning towards developmental model. Last but not the least, will be the major issues in economic development.

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According to Fajardo in his book, "Economic Development defines as a progressive process of improving human conditions such as reduction or elimination of poverty, unemployment, illiteracy, inequality, disease and exploitations. To understand this meaning carefully, it is an interaction of different factors". The example of this is investing a rice harvest per hectare in your designated ranch, there are various inputs that are combined like fertilizers, insecticides, irrigation, technology, and many other things related to this example.
This development is based on the classifications of countries or what categories do they belong? The categories will be either highly developed countries, intermediate countries, or they belong to less developed countries.
It has also a problem like humans. This development will also give information and at the same time enumerated some countries from different continents that gives economic status of how they performed in their gross national product and gross domestic product.
They must have feedbacks of World History because this will be based on their economic status of how does it developed in the past?
After I end this composition of this article, this is just only the beginning of my content in writing the economic development.
Economics is leading a management thinkers and practitioners that creates their own economic policies either it belongs to monetary or fiscal policies as a new approach and it will force us to think everything we know. This will be an economic revolution in economic management towards the future.
Marketing guru is different in theory and application. The real marketing guru is an actual approach to the economic society. This is dealing with money, finance, investment, business organization whether private or public.
According to James Henry Ting, Chairman and Chief Executive of Hong Kong based Semi-Tech Global Limited said that "Money can do certain things but you've got to motivate people." This was published in the magazine of World's Executive digest.
Globalization is the trend in the modern economics now a days. This is a reality when it comes to global trade business. At present times, it is still existing because it has a well established trade relations from other countries across the globe.
The issue in modern economics are re-engineering the corporation, managing the intelligent enterprise, creating a company of business people.
According to the book of Fajardo which is entitled "Economic Development" that mentions modern theory of employment because it states that "Employment is determined by supply of and demand for labor." This has something to do with labor and employment when it deals with economic labor.
Economics in a modern edition is considered as a management revolution because we are looking forward towards globalization.
Do not wait that our country will collapse due to economic crisis or a next recession will come.
The moral lesson in this article is that we must be prepare in terms of economic crisis at all cost.

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Green capitalism appears paradoxical. The notion of 'Green' conjures images of frugal living, minimizing our environmental footprint and the propagation of nature, while capitalism as we know it, is associated with money (first and foremost), with mass consumption, rapid development and paranoid competition as its brainchildren. The latter perception is probably sadly misguided; nonetheless the opportunity (and challenge) in the green revolution is to model guilt-free, voguish lifestyles and worldly goals that fuel the spirit of capitalism yet cunningly incentivize Green technologies and business models.

Given the way we live our lives today; that our raison d'être is to achieve higher education, pursue specialist careers and to amass immense personal wealth (and that the sunshine that we don't get to enjoy five days a week isn't something we should covet), we are now at the brink of the opportunity of our lifetime: Green Capitalism. The order of the day is to find the longest lasting battery for the fastest electric car manufactured from bio-degradable materials and to make a pile of dough along the way. In more practical terms this means finding opportunity in:
Commoditizing technologies for clean energy production
Right now the emphasis is on the race to producing alternative energy sources whose production costs can compete with that of fossil fuels. Sustainable food production
Food production done at the expense of biodiversity, such as the tearing down of rainforests, is hardly a sustainable model at all. Novel ways of farming - such as urban agriculture, combined with bioengineering for better yields and resilience, can provide an ideal win-win-win situation of fresher, healthier foods to the customer(since proximity to the source is close), lower distribution cost (monetary & environmental) for the producer, and the environment (biodiversity preserved)
Smart business models
This means finding opportunity in non-traditional business models that improve the efficiency, combine, or eliminate components of the product life cycle - from raw material procurement, production, distribution, consumption and disposal. This satisfies the economic principle of maintaining scarcity - by 'novel' business models - while at the same lowering overall cost.

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Conclusion
To make consumers aware of the total cost of consumption - taking all the intermediate life cycle costs into account - is a mammoth task, but it's necessary to satisfy the psyche of cause and effect, and to bring home the notion that every action has, to some extent, some effect on the environment. Perhaps this should be done using an 'entropy currency', which eliminates or discounts the cost/scarcity bias effect and shows the true effect of our consumption on the natural order - for instance the total cost of the energy from a gallon of gas wouldn't be all that much more than that of, say, that coming from a solar PV cell; however the increase in entropy in the case of burning fossil fuels is a few factors higher.

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In the first article of this series, three sustainability principles were outlined: Conservation, smart business models and the measurement of profitability. From further research into evolving green technology, industry analysis and general business trends, one common theme emanated that has probably not received the attention it deserves: the economics of going green. This is more than just the potential profits or cost savings from sustainable practices that is widely cited; the topic at hand is the moral responsibility to the planet, its non-human inhabitants & our future generations. For many of the Green entrepreneurs it's the allure of sizeable profits, and for the multinationals that pour millions into Green R&D, it's a reputation/business sustainability driver as the foremost incentive. But for the small-timers, the do-or-die corporations and the millions whose consumerist behaviors are encouraged every day, going Green doesn't always carry a direct, immediate or exclusive benefit & is probably of secondary consideration at best.

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What is sustainability?
Although the first article didn't raise this question, the more that it's researched, the most elusive the concept of sustainability becomes. For most, the concept is merely about finding a replacement for fossil fuels. But imagine this utopian scenario:
It the year 2060, and the average human life expectancy is 85 years thanks to nanotechnology & other medical technologies of the day. The latest news report reveals sustainability metrics that are astounding: CO2 levels are at its lowest since 2023 when fossil fuel officially took the back seat to renewable and nuclear energy sources, and Wall Street is rejoicing while the green capitalists' smiles glean a pearly sparkle. On the Discovery channel a show is on about the orangutans in China. Sadly, it doesn't raise their interest, much as Elvis didn't raise Generation Y's interest when they were growing up back in the early 21st> century. Once in a while you take a glimpse outside at the world that is pretty much the way they depicted in the science fiction movies, where you can't really distinguish the personality difference between the robots and real people, where everything that's present has defined function or purpose, and the ubiquity of information and communication portals provides a perfect excuse for never having to go experience for yourself.
We are at such an incredible level and pace of technological advancement that we have been convinced that a lot of the world's fundamental issues will be solved within the next few years with extraordinary scientific breakthroughs (e.g. nuclear fusion for 'clean' energy, nanotechnology for curing serious medical ailments, and biotechnology for resilient mass-scale food production). It is simply a notion that we have a moral responsibility to preserve the planet and ALL of its natural inhabitants, and to ensure that our future generations get to enjoy the same in its elementary form.
Moral Leverage
As a magnificent function of the brain's reticular activating system, we tend to need heroes and villains to ascribe the good and bad things that happen in the world that were beyond our control or means. When a hero does a good deed, we further justify that he had the means, such as cash from a successful business, inherited the family fortune, was a top-of-the class MIT graduate or born on the planet Krypton. We are creatures of immense rational and emotional development to the extent that we can feel the pain of other's suffering, but just enough pain to excuse the inaction especially when watched on the television and the suffering is 7000 miles away, or just outside the limits of our neighborhood. We have an amazingly developed brain that allows us to 'mirror' the feelings of others in suffering; to feel as though such suffering was imposed upon us. And then we have another amazing part of the brain called rationality that allows us to detract from that pitiful feeling, to go on with our daily lives without feeling so much guilt that it causes some action on our part to prioritize our needs for self gratification since that is foremost, we have to make it to the office on time to do a good job so we can make the 10% bonus next year, and with any luck, get noticed enough to make vice president in 20 year's time. Not that ambition should be malevolent, but realistically, we can have much more of an impact with the same effort in the natural world that we could ever in the corporate world.
Incentives
The third principle of sustainability cited in the last article of this series alluded to adopting a mindset of conservation and frugality, which is in stark contradiction to our developmental paradigm of consumption and indulgence. Not surprisingly, responses ranged from boredom (not another feel-good article on sustainability) to ignorance especially from hard individuals who have worked and studied all their lives to better their and their offspring's lives and who rightly believe that they have earned their share of the finer things in life, a little pampering now and then, and bragging rights corresponding with their secular advancement. So, conventional teachings of conservatism, as widely preached by the Green pundits, will likely only change a few, while the rest will probably need to bear witness to a natural disaster of epic proportions before beginning to entertain the notion. And that's just in the developed countries; developing third world nations will continue intensifying the per-capita energy utilization with increasing living standards and affluence.
So the message of conservatism must be re-thought; growing your own corn and/or livestock in the backyard will probably be a fashion for the next couple of years but impractical and inefficient for the masses; energetically self-sufficient buildings a feat of sophisticated engineering with prohibitive capital costs those of average income. Anyways, the pursuit of abundance and wealth cannot and will not be thwarted by any call to environmentalism and sustainability; it is an aspiration pursued for centuries, and in the last few decades made quite realistic and achievable. So to find an incentive for the savvy investor, the eager entrepreneur or the professional with an MBA to change their ambitions, goals and dreams to conserve for the sake of something that isn't going to benefit them immediately, directly and exclusively, will be more than a miracle.

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The cool thing about economics, unlike other business subjects like marketing and entrepreneurship is that the basic rules haven't changed with the invention of the internet. Supply and demand still works the same way, and economists can still predict our economy's next move. Anyone with a pre-internet economic background can transition to internet selling with ease.

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Supply and demand
Supply and demand are the building blocks of economics. Supply is the amount of goods willing to be sold. Demand is the amount of goods willing to be bought. As price increases, demand will usually decrease. Think about it, if you're going to buy an iPod touch for $230, but when you are ready to buy the price increases to $300, you might not buy it. And if you might not buy it, many other people aren't going to buy it either.
How prices change
Now let's forget about your iPod increasing in price and say it is still $230 (just to make this easier). Let's say 30,000 people are willing to buy this iPod today, so this means there is a high demand. If there are 10,000 iPods willing to be sold, there is a low supply and not all 30,000 people will be able to get an iPod. What sellers will do is increase the price to let's say $300 because as mentioned above when price increases demand decreases. The rest will all pay $300 for an iPod. Sellers benefit from economics because if they had just kept prices where they were and let the consumers duke it out at the store, they would have only made $2,300,000 (230*10,000). Great but I can't set prices like stores can
Realistically however, setting your own price on eBay isn't going to work as well as it does for large retailers. If your prices are too high, buyers will simply buy from the listing right below yours. What you should do is use your knowledge of economics to predict the next big item. Knowing the next hot item is huge.

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Microeconomics, like macroeconomics, is a fundamental method for analyzing the economy as a system. It treats households and firms interacting through individual markets as irreducible elements of the economy, given scarcity and government regulation. A market might be for a product, say fresh corn, or the services of a factor of production, say bricklaying. The theory considers aggregates of quantity demanded by buyers and quantity supplied by sellers at each possible price per unit. It weaves these together to describe how the market may reach equilibrium as to price and quantity or respond to market changes over time.
Such analysis includes the theory of supply and demand.

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It also examines market structures, such as perfect competition and monopoly for implications as to behavior and economic efficiency. Analysis of change in a single market often proceeds from the simplifying assumption that relations in other markets remain unchanged, that is, partial-equilibrium analysis. General-equilibrium theory allows for changes in different markets and aggregates across all markets, including their movements and interactions toward equilibrium.
Economy of a country is influenced by two aspects, one at the micro level and the other at the macro level. A business person should possess the inquisitiveness to understand the magnitude of economic activities occurring both at the micro and macro level and how it influences the behavior of the economy as a whole. Though he plays a small role at the micro level, the synergistic effects of hundreds of such activities boost up the economy to a higher level. Economists are concerned about the overall economic growth of a country that is a clear indication of thriving industrial activity and entrepreneurial development.
What are the fundamental concerns of macro economics?
Business cycles experience crests and troughs due to inflations and recessions. It is still an intriguing factor that unemployment reaches a record high even during times of expansion and production of goods and services fall down during cyclical downturn and millions of people lose their job. If macro economics can find the right solution to these problem situations, better will be the prospects of many people's lives and fortunes.
Monetary and fiscal policies should be formulated in such a way to reduce the severity of business cycles. Monetary policies serve the purpose of stabilizing the prices by managing the expansion and contraction of the volume of money in circulation by the central bank or Federal Reserve, to achieve certain objectives like full employment and stability of exchange rates.
Fiscal policy is associated with the government's stand regarding public revenue, public expenditure and public debt. It strives to reduce inequalities in income and wealth and develop a socially optimum pattern of investment. The investment pattern varies from country to country and it depends on the core economic wealth available in the form of resources and feasibility of such investment. Say, developing countries like India has its concentration of activity centered on telecommunication, power generation through alternate fuel resources and information technology.
Taxation brings economic stability. During inflation, an increase in tax rates will reduce the purchasing power of people thereby reducing the prices in the economy. A reduction in tax rates during depression will stimulate economic investment and consumption.
Can mere introduction of generous subsidies and changes in industrial policies bring desired growth in the economy? A nation should aim to increase its productive potential by providing necessary ingredients of growth in the form of solid infrastructure.
There is no properly laid template for the unending problems of unemployment and inflation. Economists of each nation have to carefully study the previous patterns of business cycles and at the same time find ways to improve the living standards of people by increasing the per capita income, thus increasing the national income.
Back when the internet was new, online selling sites were used exclusively for old and unwanted things that needed a place to go. However, over the years sites like eBay have evolved into a more complex network, full of opportunities. If you were to go onto eBay during the holiday season, you would find a ton of brand new items up for sale priced higher than retail. Are the people bidding on the items crazy? No these sellers know how to use economics to their advantage.

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Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek οἰκονομία (oikonomia, "management of a household, administration") from οἶκος (oikos, "house") + νόμος (nomos, "custom" or "law"), hence "rules of the house(hold)". A primary stimulus for the development of modern economics was the desire to use an empirical approach more akin to the physical sciences.
Economics aims to explain how economies work and how economic agents interact. Economic analysis is applied throughout society, in business, finance and government, but also in crime, education, the family, health, law, politics, religion, social institutions, war, and science. Common distinctions are drawn between various dimensions of economics.

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The primary textbook distinction is between microeconomics, which examines the behavior of basic elements in the economy, including individual markets and agents (such as consumers and firms, buyers and sellers), and macroeconomics, which addresses issues affecting an entire economy, including unemployment, inflation, economic growth, and monetary and fiscal policy. Other distinctions include: between positive economics (describing "what is") and normative economics (advocating "what ought to be"); between economic theory and applied economics; between mainstream economics (more "orthodox" dealing with the "rationality-individualism-equilibrium nexus") and heterodox economics (more "radical" dealing with the "institutions-history-social structure nexus"); and between rational and behavioral economics.

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Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek οἰκονομία (oikonomia, "management of a household, administration") from οἶκος (oikos, "house") + νόμος (nomos, "custom" or "law"), hence "rules of the house(hold)". A primary stimulus for the development of modern economics was the desire to use an empirical approach more akin to the physical sciences.
Economics aims to explain how economies work and how economic agents interact. Economic analysis is applied throughout society, in business, finance and government, but also in crime, education, the family, health, law, politics, religion, social institutions, war, and science. Common distinctions are drawn between various dimensions of economics. The primary textbook distinction is between microeconomics, which examines the behavior of basic elements in the economy, including individual markets and agents (such as consumers and firms, buyers and sellers), and macroeconomics, which addresses issues affecting an entire economy, including unemployment, inflation, economic growth, and monetary and fiscal policy. Other distinctions include: between positive economics (describing "what is") and normative economics (advocating "what ought to be"); between economic theory and applied economics; between mainstream economics (more "orthodox" dealing with the "rationality-individualism-equilibrium nexus") and heterodox economics (more "radical" dealing with the "institutions-history-social structure nexus"); and between rational and behavioral economics.
Microeconomics, like macroeconomics, is a fundamental method for analyzing the economy as a system. It treats households and firms interacting through individual markets as irreducible elements of the economy, given scarcity and government regulation. A market might be for a product, say fresh corn, or the services of a factor of production, say bricklaying. The theory considers aggregates of quantity demanded by buyers and quantity supplied by sellers at each possible price per unit. It weaves these together to describe how the market may reach equilibrium as to price and quantity or respond to market changes over time.
Such analysis includes the theory of supply and demand. It also examines market structures, such as perfect competition and monopoly for implications as to behavior and economic efficiency. Analysis of change in a single market often proceeds from the simplifying assumption that relations in other markets remain unchanged, that is, partial-equilibrium analysis. General-equilibrium theory allows for changes in different markets and aggregates across all markets, including their movements and interactions toward equilibrium.
Economy of a country is influenced by two aspects, one at the micro level and the other at the macro level. A business person should possess the inquisitiveness to understand the magnitude of economic activities occurring both at the micro and macro level and how it influences the behavior of the economy as a whole. Though he plays a small role at the micro level, the synergistic effects of hundreds of such activities boost up the economy to a higher level. Economists are concerned about the overall economic growth of a country that is a clear indication of thriving industrial activity and entrepreneurial development.

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What are the fundamental concerns of macro economics?
Business cycles experience crests and troughs due to inflations and recessions. It is still an intriguing factor that unemployment reaches a record high even during times of expansion and production of goods and services fall down during cyclical downturn and millions of people lose their job. If macro economics can find the right solution to these problem situations, better will be the prospects of many people's lives and fortunes.
Monetary and fiscal policies should be formulated in such a way to reduce the severity of business cycles. Monetary policies serve the purpose of stabilizing the prices by managing the expansion and contraction of the volume of money in circulation by the central bank or Federal Reserve, to achieve certain objectives like full employment and stability of exchange rates.
Fiscal policy is associated with the government's stand regarding public revenue, public expenditure and public debt. It strives to reduce inequalities in income and wealth and develop a socially optimum pattern of investment. The investment pattern varies from country to country and it depends on the core economic wealth available in the form of resources and feasibility of such investment. Say, developing countries like India has its concentration of activity centered on telecommunication, power generation through alternate fuel resources and information technology.
Taxation brings economic stability. During inflation, an increase in tax rates will reduce the purchasing power of people thereby reducing the prices in the economy. A reduction in tax rates during depression will stimulate economic investment and consumption.
Can mere introduction of generous subsidies and changes in industrial policies bring desired growth in the economy? A nation should aim to increase its productive potential by providing necessary ingredients of growth in the form of solid infrastructure.
There is no properly laid template for the unending problems of unemployment and inflation. Economists of each nation have to carefully study the previous patterns of business cycles and at the same time find ways to improve the living standards of people by increasing the per capita income, thus increasing the national income.
Back when the internet was new, online selling sites were used exclusively for old and unwanted things that needed a place to go. However, over the years sites like eBay have evolved into a more complex network, full of opportunities. If you were to go onto eBay during the holiday season, you would find a ton of brand new items up for sale priced higher than retail. Are the people bidding on the items crazy? No these sellers know how to use economics to their advantage.

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Because if you haven't diversified with gold or silver up to this point, you may not exactly be in great shape heading into the rest of 2008.
Why?
Do you really need any reminding of just how troubled America's economy is today? Some analysts actually liken it to the beginning of the Great Depression-in fact, there's been a startling increase in the use of the word "depression" in the media over the last few weeks. Certainly the news makes sure you get your daily dose of spooky economic developments.

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HARD MONEY INVESTORS ALREADY KNOW
Of all the people on earth concerned about the dangers of these scary days, investors who read articles like this have got to be among the most warned and forewarned of anybody.
Of course...all the warnings and alerts we've received have also come double-edged.
On the one edge, fears over our economic future can be cut right down to size as we diversify our portfolios with the gold and silver we've been advised to get since just about forever.
But, on the other edge, we can be cut right to the bone if we haven't diversified when tough economic times do overtake us, (and we're left wondering, among other things, where our stock-based retirement plans are headed).
GOLDEN WHEAT
So if you've managed to procrastinate the gold diversification decision up to today, the big question is...is it too late now?
Fortunately that answer is no...You already know part of that answer if you've been to a supermarket lately. Simply put, food prices are up.
Take wheat, for instance. For years, wheat typically traded in a $3 to $5 a bushel range. But last February, that price shot up to $24 a bushel.
Well, it tells us that inflation is rocketing right through the roof. It tells us that, just like in the late 70s, we'll be piling up less food in our grocery carts for the same dollars. And it tells us that the price tag of just about everything we need, thanks to the ridiculous run-up in oil prices, is going to get scary big.
So, with inflation off and running, with the dollar bearing a spooky resemblance to a third-world currency, with banks toppling like one of those falling domino demonstrations, your investment dollars will now buy you a lot less gold than they could have just six months ago.
GLEAMING FAITH
Remember, if anything, gold is like this shiny bobber floating on floodwaters. Doesn't matter how high those floodwaters get, that bobber will still stay on top of it all.
So there's a decent chance that the higher inflation gets and the more wretched the economy becomes the more comfortable gold ownership will make you feel.
In fact, if ever there was a time for gold, this might be the moment. But...shouldn't it bother you that gold has hit the vaunted $1,000 an ounce mark? Isn't that a sign that gold is overbought and, like most investments that have had a breathtaking run, is now ready to head south? Many analysts would probably be thrilled to death if it did exactly that.
Because that might signify an economy getting back on track.
Sadly, it's possible that the return to wonderful normalcy may still be quite a ways down the road. Since there are likely some wild twists and turns yet ahead of us, getting out of gold-or not getting into it at this point-may be like lowering your shield just as the economy comes swinging its mighty ax at you.
Sure, for many traditional stock-and-bond investors, diversifying a portfolio with gold involves a little bit of faith. But, judging by the ominous look of today's economy, it's not as much faith as you would have needed even six months ago.

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The vast majority of an educated modern populace has developed a pretty vivid tapestry of what life was like during the "Great Depression". The visions of struggling dirt farmers like the Joad's in Steinbeck's "The Grapes of Wrath", the big city soup lines, the tent cities for thousands of homeless and photographs of men selling apples on street corners have burnished in many of us a searing image of hopelessness and despair.

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Today, the United States is sharing the most serious economic malady since the "Great Depression" with countries all over the world. While not approaching the absolute calamity of the 1930's, the damage done to our wallets and psyches is nevertheless daunting and bruising. Businesses, organizations and individuals are understandably fearful and have curtailed spending in lieu of conserving capital. Risk taking, the key to maximizing gain, has been virtually shut down. Small business growth and development has been strangled. In times like these it pays to study the lessons of history. People were desperate to make every purchase count, to leverage every dollar spent and obtain maximum value. The result was that an exciting array of creative breakthroughs came to market to satisfy the greater demand for economy.
The importance of consumer advertising was magnified and became a much more critical tool utilized by packaged goods manufacturers to woo value conscious consumers. Heinz ketchup, Palmolive soap, Campbell soup, Westinghouse appliances, Revlon and Max Factor cosmetics and Hormel Spam enjoyed an explosion of growth created by new sales promotion concepts. Billboards, mass advertising, coupons and sampling became ubiquitous. Local, regional and national agencies evolved to assist manufacturers in promoting their products in new, exciting ways. Barn advertising for tobacco products and Burma Shave road signs added needed revenue to beleaguered farmers and roadside landowners.
The Studebaker Motor Company had evolved from a 19th century maker of hand carts and wheelbarrows to a struggling auto carriage manufacturer. The Company enjoyed modest success until the Great Depression. Recognizing opportunity, Studebaker went back to its roots as a maker of work conveyances and began to produce the Studebaker paneled work truck. At a price of around $600, this workhorse vehicle enabled thousands of laborers, handymen and small contractors to eke out a living hauling, building and scratch farming.
The ball point pen, nylon, the radio, radar, the Land camera, the photocopier, sticky tape, the television, FM radio band, the helicopter, the jet engine and the electric razor are only a few of the inventions that were perfected and came to market during the 1930's. Inventors did not stop their pursuit of fresh, valuable innovations. They seized the reality they were confronted with and targeted practical solutions to problems that needed to be addressed at that time.
The opportunity to create products or services that offer great utility and excellent value is appreciated by the consumer more than at any time in recent memory. There is a rush to basics, store brands, no frills products that perform and are sturdy. The inventor that can address these contemporary needs will find a willing acceptance from investors, consumers and retailers.
There is never a better time than NOW to launch a product, start a business or license a product. There are always excuses made for not making a sale, not closing a deal or not taking that chance, that chance that can change one's life. Every economic age offers the opportunity for success for those willing to address real needs with inventiveness. History offers us plenty of proof.

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The Great Depressions, by far was the biggest economic downturn of the 21st century. Jobs were gone overnight. Banks ruined. Companies became bankrupt. Stock market plunged. Entire economic system paralyzed. Life for many was never the same.
The aftermath of the Depression in 1930 was that people stopped trusting the bank and started saving money for the future. Then the economy again picked up. The industry was at once rewarding, innovative, and frustrating. Then the recession again struck the market. A situation like this floods your mind with questions like: Is your industry strong enough to emerge from recession? Is your job recession proof and should you stick on to it?

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Every cloud has a silver lining. Even in gloom and doom people and organizations are finding their way out. As the market is recovering from recession we are seeing a sea of change in the financial psychology worldwide. People are saving and keeping a close watch on the market. Many became risk-averse and are refusing debt.
Take advantage of this tough experience. Now is the time to reevaluate your career and the future of your industry, your company, your job, and your skills.
Be frugal and save for tomorrow
This recession has taught everyone to be penny-pinching. Layoffs has given the idea to people that spending more than they can earn is not smart as everything can be snatched away overnight. If you are lucky enough not to be hit by layoff, yet chances of escaping the pay-cuts was thin. Hence, all these point towards only one thing that saving and spending smartly is wise. This is the high time to realize the importance of living below your means and putting some money in the bank for emergencies.
Acknowledge the power of change
Change is the integral part of business. Modification of policies and compliance are the biggest challenge for any company. Many organizations are realizing that adherence to policies was missing. There were not much loopholes in the policies and procedures but in its compliance. Moreover, the business model which has made the company successful so far does not guarantee a steady success in future. However this fear should not be so great that the companies go into survival mode. Reassessing policies and business model and improvising on them for a better future is the responsibility of all organization.
People are looking for job opening and willing to change their career. Thus to retain employees organizations has to restructure their HR policies and work on upgrading their skill-sets. Thus when confronted with change a wise person should think about the desired outcome and figure out strategies ways to reach it. Even when a job seeker needs to change in career, lots of research and planning is required. Check out the pros and cons of the new industry and the embrace change.
Take calculated risk
When it comes to money, after recession nobody wants to be a risk taker and is suspicious of any kind of investments. But playing it safe without trying more prospective options is a risk not worth taking. Taking no risk is worse than taking any risk. Instead of hiding from risk it is better to understand and learn to manage them. As the saying goes don't put all your eggs in one basket, hence, look for additional income-generating opportunities and invest accordingly.
Plan for the road ahead
No point for guessing that poor planning led to the dilapidated financial conditions of many in the recession. With proper planning such situations can be avoided in future. However, when it comes to finance planning people find it hard to seek out assistance. A good planner will educate you about the hazards and rewards involved with investing. It was all about business
When the economy was staggering, creditors and lenders started showing their true colors. Interest rates were raised and credit limits were reduced. People were shocked to learn that creditors and lenders meant only business and no sympathy was extended. Even people with excellent credit limit were hit and lenders are not extra careful about confirming creditworthiness. Some important lessons learnt here are:
Just because a lender approves your loan doesn't mean that you can afford to pay it back. Learn to manage your finances. Keep an eye on your expenses and take responsibility of your expenses and try to pay it off as soon as possible.
Prioritize debt, start from paying off your highest interest rate first.
This too shall pass
Trust me, the nation has seen tough economic times before and has emerged successfully from it. This time too it will survive. The economy will change and will open the door for new opportunities.
In the difficult times, the companies have lowered their budgets and worked within the limited means yet they survived by re-planning and not compromising on the training and development. On the individual level, proper financial and debt management helped many to sail through this recession and avoid crisis. Lessons from past will help anyone to resurface from recession.

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Let's say you are at an auction. This auction features rare painting, unique artwork and period pieces. 1. You only have 25 dollars to bid with.
2. You can only use that 25 dollars to bid. You cannot use your own outside or other people's money.
The first piece comes out. The curator describes the piece and the artist and how meticulously and lovingly the artist has worked on this one piece over the last 2 years. The auctioneer then begins the auction. people look at each other as the bidding begins. The auctioneer starts the auction at 5 dollars. The bid is 5 dollars. A nod from a gentleman in the corner raises the bid to 7.50. A matron in a comely dress raises the bid to 10 dollars. The auctioneer continues his spiel but there are no further bids. The delicate piece of art is sold to the woman for 10 dollars.

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Another piece of art is presented. Again this astonishing, valuable piece is described in complete detail. It is considered highly valuable; one of the most highly valued pieces at this auction. Again the bidding begins; 5 dollars, 6 dollars, 7 dollars, 10. The bid finally rests at 12 dollars, nearly half of what any one person can spend in the room.
The next piece, a rare commodity, is presented. The auction begins at 7 dollars and quickly increases to 15 dollars. At this point it slows to a crawl but continues its upward climb. At 20 dollars there is another bidding war and the price finally reaches the maximum of 25 dollars. A very pleased young man has won the auction. Being the sole bidder at the maximum allotment, he is very pleased to be able to take this distinguished artwork home.
The lesson to be learned here is that no one individual can bid anymore than 25 dollars. No piece of artwork, regardless of its estimated value can be worth any more than 25 dollars because that's the maximum that can be spent on any one piece.
This is what happens in a zero inflation economy. The prices of commodities and goods remain connected to the price of the currency. Only extraordinary events in supply or demand or outside factors can influence the price of the artwork in the room. Of course, a zero inflation economy is impractical in a modern world of fluctuating supply and demand from one market to another, but price hikes and shortages would not be dependent upon the value of the currency, they would solely be dependent on factors Other than the value of the currency.
Now let's say a wealthy gentleman enters the room. He gives each person in the room an additional 25 dollars. The rules are adjusted permitting each person to bid up to 50 dollars. The auction continues but the prices of artwork sold have increased. Does this mean the artwork has increased in value? Did the inherent worth of the art suddenly jump up in value? No, the artwork is still made of the same material. The same artists still created their beautiful pieces. And the time involved in creating each piece has not changed. The only thing that has changed is the amount of money in the room. More money equals inflation; nothing else can affect inflation. Only the money supply in the marketplace establishes the rate of inflation.
We are back at the auction. This time, instead of entering the room the wealthy gentleman stands just outside of it. Each person in the room has their 25 dollars but each hour they are given another dollar. Not only that, but the wealthy gentleman outside of the room has declared that whatever the price of a piece may rise to, within "reasonable" limits, he will guarantee that the winning bidder can borrow the money to cover the difference.
The auctioneer, the auction house owner and the curator meet for a hurried conference. they understand that each person in the room will receive 1 dollar for each hour that passes. They decide to extend several breaks to extend the duration of the auction. This alone will put more money in their pocket. The auctioneer, auction house owner and curator also decide upon an additional strategy: Over time, they can raise the initial bid on each piece - within "reasonable limits." After all, the wealthy gentleman - an uncle of several people in the room - has guaranteed to loan the money for a winning bidder to purchase a piece they really like by allowing them to borrow the money. The auctioneer, the auction house owner and the curator all resume their positions. The auction house owner stands at the back of the room, a big smile on his face. The auction begins anew.
First, the first piece of art does indeed begin at a higher bid, 7 dollars rather than the customary 5 dollars for a rather ordinary piece. The people in the room, not entirely certain of how this process will play out bid warily. This piece goes to 20 dollars, a little high perhaps but still within the range of the maximum it could have been. The next piece is also introduced at 7 dollars. Bidding goes a little higher with each piece until the magic 25 dollar limit is passed. The next bidder bids 27 dollars and glances at his uncle who nods his head, his bid will be covered, acknowledging his bid he wins the bid. The auction continues.
The auction continues and more and more people bid on each piece. More and more people become accustomed to the process; the old way of bidding is becoming a forgotten memory. The auction seems to be taking on an almost game like atmosphere. With the guarantee of the rich uncle at the back of the room, bidders feel encouraged to bid the price of the art higher and higher. Because the rich uncle has guaranteed their bid, the bidders bid more and more with some even bidding more than their 25 dollars and borrowing 25 dollars or more from their uncle. The auctioneer, the auction house owner and the curator are of course, quite pleased because each of them will receive a portion of the profits.
As the auction continues, the auctioneer begins each bid at a slightly higher bid than the previous bid - at a price he feels is "reasonable" If the rich uncle at the back of the room indicates the bid is unreasonable, the auctioneer lowers the bid until the wealthy uncle agrees that the bid is reasonable. This newer "reasonable" starting point is always, of course, a bit higher than the previous initial bidding price.
What we see is this: with the rich uncle guaranteeing the price of each purchased artwork, it is inevitable that the price of the artwork will rise over time. Another event we may not have expected is that some people bid everything they have, knowing that anything they "really" need or want will be covered by the rich uncle. They are discouraged from saving money because they know their rich uncle will cover their needs, and they are encouraged to spend money freely to generate a higher standard of living. They are also encouraged to borrow money freely to increase their "income." But their income is not actually increasing, it is in fact declining, because their money buys less and less at a rate which cannot keep pace with the increases.
Others not only bid everything they have, they also borrow heavily from the rich uncle simply to achieve more expensive artwork. An unintended consequence and perhaps one that will escape our attention is this: because the rich uncle has lent money to the winning bidders, the winning bidders have used the artwork they have won as collateral for the loan the uncle provided them. In essence, the uncle now owns nearly all the artwork in the room. All the assets have transferred to the rich uncle while much of the cash has transferred to the auctioneer, the auction house owner and the curator. The winning bidders are essentially left only with loan notes which they must pay back to their uncle. The winning bidders can enjoy their fine artwork, they may display their artwork proudly, but they are all living on borrowed time because the rich uncle is the true owner of the artwork and may call in the loan at any time.
To complicate things further what if the auctioneer, the auction house owner and the curator are all working in conjunction with the rich uncle? Wouldn't these four then split all the cash and all the assets between them leaving the bidders with worthless pieces of paper? Now what would happen if at some point - after the majority of bidders find themselves indebted to the uncle but still borrowing heavily - the rich uncle suddenly stops supplying the bidders with more money? The auction probably won't stop as a few dollars are most likely still in possession of many people in the room, but the affect would be to cause a large downturn in the process. prices may drop, more and more people would find themselves "inactive", unable to participate in the auction because the weight of the debts is too heavy and the income they were receiving was only borrowed money from their uncle. In order to raise cash, the bidders can sell their few pieces of artwork to the auction house. This then transfers some of the artwork back to the auction house where they can hold it or sell it again at auction as they see fit. After a time, the uncle begins loaning money again and the process begins anew. With the auction house and the uncle working together, these "boom and bust" cycles can be initiated at regular intervals calculated to move the most amount of assets and cash to both the rich uncle and the auction house partners.
If the government stopped loaning many to schools and hospitals, for healthcare and tuition, we may experience a difficult period in which we need to relearn the rules of personal finance and the principles of a new economy, but in the long term, it would be much better for us as a people.

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The file of behavioral economics repeatedly shows that we are not as rational as we think when making financial decisions. No big surprise there. But can we become more rational with our money? We can if we learn to spot our irrational tendencies and correct them. The Sunk-Cost Fallacy
The idea of "sunk costs" in economics is that once money is spent it is gone and should no longer be a part of a rational decision making process. For example, if you have spent a thousand dollars repairing your old car, and it now has more problems, you are inclined to keep spending because of the money already "invested." But that money is gone, and shouldn't be a part of the question of whether you should spend more on the car or just sell it.

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You will likely feel you have to continue spending on the car, especially if you just spent a thousand dollars and the car could only be sold for $500. Scientists have studied this effect of sunk costs in a number of ways. In one experiment they found that people are much more likely to attend a concert or other event if they paid for tickets rather than getting them free - even though the objective value of a given event is clearly not changed by how a person gains admittance. Again, the money is spent and so rationally has no relevance to whether or not a person should attend. But we feel a greater loss throwing away tickets that are paid for than those we got free.
To get back to the car repairs, let's put some numbers to the scenario. Suppose you just spent a thousand dollars on repairs, and you just discovered that the car needs six hundred more in repairs. You could sell the car for five hundred dollars as it is. Do you sell or put more money into it? Most people would be tempted to throw another six hundred at the problem car so they don't "lose" the thousand already spent. But of course that money is already "lost."
Think of it this way: if the car will still be worth just five hundred dollars when repaired, does it make sense to effectively buy it for eleven hundred? You should be able to buy a car that is worth eleven hundred for eleven hundred, right? You can see that it's easy to get sucked into the sunk cost fallacy, thinking you somehow can salvage money already spent. Watch for this in yourself if you want to avoid expensive mistakes.
Extremeness Aversion
Another of the many ways in which we act irrationally in the marketplace is through what economists call "extremeness aversion." To state it simply, we have a tendency to avoid the extremes for no rational reason. In other words, we are more likely to buy something other than the cheapest or most expensive couch when shopping for furniture. This may not seem like a problem, but behavioral economics research shows exactly how pervasive and irrational this tendency is.
For example, suppose you are looking at patio tables and the store has four models, priced at $140, $170, $200, and $500. The chances are good that you'll buy one of the ones that costs $170 or $200. But interestingly, the research shows that if the store owners want to sell more of the $500 tables, all they have to do is add one that costs say $900. The technique has been proven to increase sales. If the $200 one is sufficient and a good value, this tendency to value things by comparisons with the extremes can be expensive.
These are just two examples of the kinds of tendencies being explored by the science of behavioral economics.

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While people in other parts of the United Kingdom and in Europe enjoyed a relatively high standard of living Ireland lagged far behind. Today Ireland is rated one of the best countries in the world in which to live. Ireland boasts the fourth highest gross domestic product per person and very low unemployment. University tuition is free and there are a high percentage of skilled positions available.

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How did Ireland accomplish such a dramatic turnaround?
New Economic Policies
Economists who have analyzed the emergence of the "Celtic Tiger" (a popular nickname for this period of unprecedented economic growth) have identified economic policies that encouraged growth. Beginning in the 50's and 60"s Ireland began to shift away from protectionism and started to plan long-term for expansion and to increase international trade. Corporate tax rates were lowered and tax incentives were offered to foreign investors. Initiatives to expand exports were adopted.
In the 70's the currency was strengthened and stabilized with Ireland's entry into the EU. EU membership also provided Ireland access to substantial subsidies from France and Germany which was invested into public works projects to improve and expand infrastructure and education. Ireland now had greatly expanded access to European markets and began to increase exports. As its economy began to respond, Ireland focused on lowering its public debt and eventually achieved a 35% debt ratio, lower than most of other countries in the EU. As her financial position improved Ireland initiated several new programs that were aimed specifically at attracting high tech businesses and other growth industries. Ireland now offered an unbeatable combination of stability, favorable tax and trade policies, and a well educated English speaking labor force available at relatively low wages. This brought in employers from all over the world to do business in Ireland. Ireland is not the only country to follow this basic formula for economic expansion (think of China, Brazil, Russia, India, and Mexico). Yet Ireland seemed to reap much higher dividends than most of the other counties adopting a similar approach. Looking at other changes in Irish society that occurred in concert with the changes in economic policy reveals that other factors may have played a critical role in the phenomenal success of the Celtic Tiger expansion.
Long-Term Planning and Investment in Basic Infrastructure
It is important to note that Ireland committed to a long-term plan for growth nearly 20 years before the Celtic Tiger expansion really took off. Ireland was willing to commit to new economic policies and maintain fiscal discipline for many years before substantial results were forthcoming, although there were clear signs of growth after the first five year plan was implemented. Ireland also invested for the long-term by initiating many public works projects designed to strengthen her infrastructure and education system. This increased Ireland's production capacity and the quality of its workforce while creating jobs - which in turn increased income per capita and with it, consumer spending. By investing in the long-term Ireland was perfectly poised to take full advantage of favorable economic conditions when they occurred years later.
Energy Independence
Some of the public works projects that Ireland committed to prior to the expansion included investing in her capacity to generate energy. Ireland invested in hydroelectric plants. The island's numerous peat bogs were utilized to create a fuel for heating from dried peat products, and local off-shore gas fields were tapped. Prior to and during Celtic Tiger Ireland could operate without the financial burden of dependence on foreign oil. It is worth noting that as Ireland's demand for energy began to surpass the capacity of her local energy sources her economic growth slowed in concert with her increasing dependence on foreign oil. Apparently these lessons on energy production were not wasted on the Irish. Today, Ireland is creating new capacity by developing wind based power generation facilities.
Political and Social Reforms
Prior to this renaissance Ireland had suffered from rampant corruption in high political offices. Civil liberties were restrictive compared to other modern countries. These factors coupled with high unemployment and low wages caused Ireland to suffer from a kind of social and economic pessimism.
By the 80's Ireland had cleared up much of its political corruption and began to develop a more cooperative political climate. Government, employers and trade unions forged landmark compromises to work together to bring in trade and investment. Universal education made it possible to maintain a highly educated workforce. More women pursued advanced education and entered the workforce. Birth rates per capita dropped as more women pursued careers. This reduced the ratio of dependents to wage earners and helped to lift the gross domestic product per capita.
During the most robust phase of the expansion Ireland benefited from the leadership of President Mary Robinson who garnered a 93% approval rating during her term. President Robinson was a true diplomat bringing together parties within Ireland and forming cooperative relationships with other nations. Robinson was also instrumental in expanding civil liberties. Shortly after Robinson left office to become the United Nations High Commissioner on Human Rights, the Belfast Agreement was signed bringing together political and religious foes to work to end the violence in Northern Ireland. All of these changes lifted the spirits of the Irish people and helped them feel better about their future.
The Power of Optimism
One could characterize the Celtic Tiger expansion as a journey from pessimism to optimism. An optimistic social climate is a powerful economic stimulus. What made the Celtic Tiger different is that the economic policies were supported by a cooperative political and social climate, a willingness to invest for the long-term and social policies and leaders who fostered optimism.

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The impact of the crises started to diminish. Still, all key players, including top executives, regulators and investors, have much to learn from the global financial failures. The Organisation for Economic Co-operation and Development (OECD) Steering group has issued a report entitled Corporate Governance Lessons from the Financial Crisis. This Report concludes that among major contributors to the financial crisis are failures and weaknesses in corporate governance arrangements. When they were put to a test, corporate governance routines did not serve their purpose to safeguard against excessive risk taking in a number of financial services institutions.

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Other key contributors to the global financial crises include failures in transparency, failures in lending standards; failures in prudential standards; failures in risk-management.
As to the remuneration of top executives, the real problem was not the amount they receive; it is how companies pay them. The bad bonus culture encourages a short-term thinking: hit as many deals as you can this year and get a larger bonus! That approach pushed executives to focus their attention to achieving short term objectives at the expense of sustainable growth objectives.
Most financial institutions link compensation to quarterly performance, encouraging short-term gambles. When the bets win, executives get the rewards, but when the bets sour, as they have in the latest financial crunch, the executives who took the risks do not have to return their fat-cat bonuses. The executives were, in most cases, no longer gambling with their own net worth. The right approach if we are going to keep the financial system from being misused by top executives' greed again is to maintain a partnership between the top executives and have their net worth tied to the organisations' well-being. As a result, they would be cautious about taking big risks and discourage the malpractice of running after short terms gains. Also, we need to replace bonuses with better, longer-term compensation such as deferred cash pay and restricted stock.
The directors of the troubled institutions appear to have provided only the thin-surfaced supervision to control the greed of top executives. The boards of the collapsed firms carry the full responsibility. However the troubled firms just ticked the boxes for good corporate governance in their annual reports. In other words, there organisations presented an obvious example of the cosmetic corporate governance to fool different stockholders including investors, rating agencies and regulators!
The current global financial crisis has shed light on how poor risk management could lead to catastrophic results. The risk management systems have failed in many cases due to corporate governance procedures rather than the inadequacy of computer models alone.
With the advent of new products such as sophisticated derivatives and certificate of deposits, they posed unknown risks. Risk management may not have been up to the task since many of the standard quantitative models and users of these models regularly misjudged the systematic nature of risks. To some extent this was due to product complexity and over-reliance on quantitative analysis. Sadly, many risk evaluations were wrong including those provided by rating agencies.
The directors of the collapsed financial institutions should have better understanding of the risk implication at the time of taking decisions related to sophisticated products such as derivatives. The reality is many board members had inadequate knowledge on the sophisticated new products and likely were embarrassed to show that they lack the adequate knowledge! Here where directors' education and orientation fails as best corporate governance best practice. Each director must receive customized orientation programs in areas where he\she lack adequate knowledge in order to be able to effectively undertake the fiduciary oversight role.
Finally, the concept that in bad times companies would be more interested in supporting their profitability and accordingly will not have time for corporate governance is irrational. The integrity cannot be compromised because corporate governance is not seasonal - it is for all times and must be embedded in senior corporate executives and directors. Companies must not put corporate governance on the shelf in bad times.

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The world economy, particularly that of developed countries has faced a serious downturn during 2008. Many hope that it is a temporary situation that will go away soon. The fact that the developed countries faced an unprecedented period of prosperity over the last half a century may be a historical exception rather than the rule. Children who grew up in this period, that includes most of us, have become accustomed to this prosperity and now find ourselves at a loss as to what to do.

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Always, there are lessons to be learnt from any bad situation in life. The first lesson from this economic downturn is that we would have to return to basics such as darning our clothes rather than depositing them in a donation bin, cooking food from scratch like flour, growing our own vegetables, warming ourselves by the fireside rather than through central heating etc. All such measures will cut down on expenses.
The second lesson to be learnt is that one cannot live on credit. It is a habit that vested business interests have encouraged for their own gain. Even governments have become great adepts at it. Living on credit presupposes an uninterrupted and increasing source of future income. No doubt the change to a new way of life will be painful. However eventually it will be good for mankind. It will return mankind to the simpler pleasures of life and real joy rather than a life fueled by unsustainable consumption, greed, stress and unhappy human relationships.

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If you are specialising in economics, or perhaps getting it as a requirement, it may be an intensive course. Learning this will help you to become a more conscious and effective participant in the worldwide economic system, as a developer as well as a buyer. In our days political and financial scenery, your knowledge is power, and university or college economics programs are usually created to provide you that education in order to understand easier the procedures that form things. In college or university economics programs, the best study routines tend to be essential for understanding the materials at hand. In case you are signed up in one, or you're considering to enroll in college or university economics courses, below are several recommendations to guide you study efficiently and really see good results.

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1) Utilizing your syllabus as a guideline, study the materials ahead of time. Whenever you follow a lecture, the materials your teacher goes over should not be new. This is a common study practice that you need to develop to have a better succeed in almost all of your courses, and is quite useful if you are working with complicated financial aspects.
2) You should start reading more frequently to get practice of it. You need to dive deeper into the materials to help you comprehend the main aspects.You must pay attention to titles, subtitles and strong words. 3) Once you have finished studying the chapters and also have rewritten your notes, you must try to make your personal written summaries of the chapters. 4) If you have done most of this, and you can´t headaway this, you should get in touch with college or university instructors. Tutors are specialized to assist college students who can not understand the materials. There are also online economics courses that can be more useful to students.

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Economics deals with the laws and principles which govern the functioning of an economy and its various parts. An economy exists because of two basic facts. Firstly, human wants for goods and services are unlimited and secondly, productive resources with which to produce goods and services are scarce. It is this basic problem of scarcity which gives rise to many of the economic problems.

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There has been a lot of controversy among economist about the true content of economic theory or its subjects matter. The subject matter and scope of economics has been variously defined. Each definition is incomplete inadequate and because of various conflicting definition, some confusion has been created about the nature and scope of economics.
The subject matter of economics has been divided into two parts: microeconomics and macroeconomics. In Microeconomics we study the economic behavour of an individual, firm or industry in the national economy.It is thus a study of a particular unit rather than all the units combined.We mainly study the following in microeconomics:
1) Product pricing
2) Consumer behavior
3) Factor pricing
4) Economic conditions of a section of the people
5) Study of a firm and
6) Location of a industry.
In macro economics, we study the economic behavior of the large aggregates such as the overall conditions of the economy such as total production, total consumption, total saving and total investment in it.It includes:
1) National income and output
2) General price level
3) Balance of trade and payments
4) External value of money
5) Saving and investment and
6) Employment and economic growth.
The problem of scarcity and choice making can be depicted using the tool of production possibilities curve. If it gives the whole charge of the economy, to private ownership we get capitalist economy, to public ownership we get socialist economy and jointly to private and public ownership we get mixed economy.

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Economics is referred to the study of the factors that indicate how the resources of the society are being used and helping towards the satisfaction of the wants and needs of the people. There are several aspects of economics and a lot has been written and talked about economics but one common question that always rise in minds of people includes the fact that why do we need to study economics.

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Well, as far as the need to study economics is concerned, there are several factors that are associated with this study and are basically understood and managed due to this study. For instance the study of resources and other related factors help the authorities and the people understand the scarcity of the available resources and the need to use them efficiently. This study further helps the governments along with overall population help manage their funds properly in order to meet their overall needs and requirements.
Economics study helps the citizens decide about choosing their governments based on the overall working of the existing government in terms of management of the national funds, which again is determined by such studies. Economics needs to be studied due to various other reasons as well. People want proper and sufficient amount of information as consumers in order to ensure that that they spend their limited resources in the right manner and this is one factor why studying economics is important.

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If you already have basic knowledge in economics or majoring in commerce, you can actually consider the pursuit of economics MBA online program to further enhance your job prospect. The professional master's degree in economics will be a potential channel towards higher level of economic theories and learning aspects. From the course content and practice of skills, you will elevate your career to a higher level. And if attending basic campus lectures is a trouble to you, try contemplating the online program.

Download Drill of Economics UN Exam - Senior High School Social Program

Drill of UN 2011, Download Question and Download Solutions

The online MBA in economics course is specially invented to complement the demand of the market yet compatibly crafted to suit the time and convenience of students. This is indeed an ideal opportunity for people to intend to raise their qualification in the field of economy. Studying via the internet can provide flexibility, save trouble, cost and time. You can easily take up the online program even if you are already working, without interrupting your current existing job.
If you are skeptical of how the economics MBA online program can help enhance your career, you should first fathom about the benefits of the course. Should you determine that economics is your field of expansion then you should be able to expand your knowledge about the global market, economical sector, finance industry, public sector and the business industry, all via this master's program. You will also be exposed to the economical and financial aspect and how these factors influence a business' organization. The content of skills includes trading, commerce, making budgets, predicting inflation and other market trends.
With the qualification of MBA in economics, you need not be worried about your career prospects. The business and economic skills can bring you into opportunities such as finance law consultant, finance advisor, financial analyst, financial officer, economist and many more. If you are able to succeed academically, be prepare for amazing offers from private or government bodies either in the finance, insurance, banks, retail or even entertainment sectors.

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At an economics college, you'll learn about many aspects of business, management, finance, marketing and corporate planning, in addition to the money management issues of today. The majority of people working in applied economics hold positions as forecasters, analysts, market researchers, government workers and client support personnel.
As you may have heard, the choice of school and the pursuit of a degree are extremely important in determining your success in economics. Just about every school offers macro economics and microeconomics courses, but to really get ahead, you'll want to get into a graduate school with the best department of Economics you can find. The best schools may offer more passionate teachers, better internship options, more extensive areas of study and the sort of prestige you'll need when looking to start your career in the competitive labor market.

Download Drill of Economics UN Exam - Senior High School Social Program

Drill of UN 2011, Download Question and Download Solutions

When choosing classes from a school's department of Economics, the best advice is to take more math courses! It can be easy to fall behind in your studies if you aren't crystal clear on the statistics, calculus and mathematical concepts. When you were trying to get your bachelor's degree in economics, you were likely scanning the course options for "easy electives" and ways of pulling your GPA up. Be sure you take real analysis, calculus and econometrics, as these classes will be vital to your understanding.
To get an undergrad degree in Business Economics, students attending an accredited economics university will need to take courses like macro economics, microeconomics, financial accounting and reporting, calculus, economics statistics, econometrics, money/banking/credit, business writing, the stock market, labor economics, monetary economics, international trade theory, law and economics, industrial organization, economics and business strategy, organizational psychology, formal organizations and politics and the economy.
The average starting salary for economists is $38,000 for a bachelor's degree, $48,000 for a master's and $70,000 for a PhD, according to a 2002 National Association of Business Economics survey. The median income for the economics major is higher than any other major, experts say. Economics research also suggests that economics majors earn 20% more than business administration majors, 19% more than accounting majors, 18% more than marketing majors and 15% more than finance majors. When a potential employer sees this major on a resume, he or she immediately understands that you have a solid foundation of math, politics, business and economic theory. Your degree also shows that you have the capacity to process complex subjects and problem solve, which is valuable in any field.
According to US News & World Report, Harvard University in Boston, Massachusetts is the top-rated school for Business Economics. The second-best university in this field is Stanford in California and Northwestern University in Illinois. After the top-three, other economics college options include the University of Pennsylvania (Wharton) in Philadelphia, the Massachusetts Institute of Technology (Sloan) in Cambridge, the University of Chicago, UC-Berkeley in California, Dartmouth College in New Hampshire, Columbia University in New York City and Yale University in Connecticut. It's highly recommended that individuals looking to remain competitive in their field pursue advanced education with Master's or PhD's.
Unlike undergrad, the department of Economics in grad schools looks to cultivate the best and brightest talent. Most students are granted a fellowship, assistantship, grant, tuition remission or monthly stipend to cover the cost of the program and living expenses. If a lot of students are admitted, then you may still need to pay or seek NSF grants on your own. The good news is that, after all their hard work, 99% of graduate students get placed into applied economics positions right out of grad school.

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