Impact Of International Trade On Emerging Economies Essay Example

Introduction

The impact of international trade on emerging economies is discussed globally by modern economists. Emerging economies are the countries that are developing at rapid rates and have the foundations of a market economy. They have the potential to be developed markets, but they lack internal private capital and it causes the slow development of a capital market. They can be characterized by relatively big amounts of foreign investments in a structure of capital funds. Market infrastructure is not yet developed, including underdeveloped financial services and informational opacity, lack a set of investment tools compared to developed countries. Many financial institutions model their portfolio investments according to a set of formal standards. There are additional possibilities for the involvement of foreign capital for emerging economies. An emerging economy must have an effective economic structure with a satisfactory level of international competitiveness. A successful political economy is dependent on macroeconomic stability. A relatively low level of inflation is important, as it leads to stability of currency exchange rates because it is easier for corporations to make long-term investments.

Main body

International trade is an exchange of products and services between national economies, connected with a general internationalization of economics and intensification of the international division of labor. Advantages of international trade include an increase in the intensity of manufacturing and industrial development. Opportunities for mass production often arise for countries that participate in international trade. Export of capital is important for the development of international trade. Foreign capital used to be invested mostly in developed countries, however recently it has become popular to invest in developed markets. Foreign investments are required when an emerging economy has reached a point at which it cannot develop any further. Nowadays emerging economies of India, China, and Eastern Europe are important for international trade, and they change the whole structure of a global economy. Eastern Europe, India, and China have shown exponential growth during the last few years. It is dangerous to invest in emerging economies; nevertheless, investors are interested in Eastern Europe. Therefore, such emerging economies as Poland and the Czech Republic are expected to see huge growth in the future because they are not too dependent on foreign capital. Poland’s top exports in 2014 include $27B worth of machines, engines, and pumps, $25B worth of electronic equipment, and $22B worth of vehicles (Workman, 2015c). Russia’s top exports in 2014 include $288B worth of oil, $20B worth of iron and steel, and $11B worth of gems, precious metals, and coins (Workman, 2015d). India, one of the biggest emerging economies, currently has a huge budget deficit. However, it actively develops the tourism sector, and it is gaining momentum as an exporter of software and services. India’s top exports in 2014 include $40B worth of other petroleum oils, $22B worth of diamonds, and $19B worth of light petroleum oils in 2014 (Workman, 2015b). On the other hand, China shows the most rapid economic growth compared to other emerging economies because of cautious financial policy, a budget surplus, and growing domestic demand, even though it is often criticized for the low exchange rate of their currency. China’s top exports in 2014 include $571B worth of electronic equipment, $400B worth of machines, engines, and pumps, and $93B worth of furniture, lighting, and signs (Workman, 2015a). Additionally, China has helped other countries during a global economic crisis, because of its resilience. Kose (2011) states that “more financially integrated economies are able to attract relatively large foreign direct investment flows, which have the potential to generate productivity spillovers” (p. 16). It means that local productivity may escalate with increased foreign investments. Therefore, emerging economies have a huge impact on international trade because they help to form new trade patterns between countries.

The emerging economy must become even less dependent on external help, and the size of debts should be reduced. Additionally, an increase in economic growth is possible with the support of foreign countries. Emerging economies are prone to be affected by both internal and external factors. Moreover, demand is not as massive as it used to be. Therefore, it will be hard to keep the pace of the development of the economies. Nowadays the main risk for emerging economies is a potentially negative connection between the level of activity in the real sector and the economic environment. It may be hard to accomplish an economic balance considering an increase in interest rates in the United States. Geopolitical tensions are significant risk factors for economic development. Nevertheless, economic influence at the sub-regional level, caused by a conflict and sanctions may lead to even slower growth.

Tihanyi, Banalieva, Devinney, and Pedersen (2015) state that “future research can explore how the timing of institutional development affects the internalization, governance, or innovative strategies of emerging economy firms” (p. 59). This means that currently, available data is not enough to accurately predict the development of emerging markets in the future. Indonesia, Bangladesh, Tanzania, Philippines, Colombia, Ethiopia, Kenya, Sri Lanka, and Zambia are the most recently discovered emerging markets. Their advantage is that they are less reliant on trade with advanced economies. An increase in the growth of the economy of Brazil, India, Turkey, and South Africa and a slight decrease in the economic growth of China is predicted. Therefore, there are still significant risks of an even further decrease in economic growth and a long period of slight economic growth in China. However, the impact of China on international trade cannot be overlooked because it is one of the biggest exporters and one of the largest importers. An economic model of China is also used in Latin America, Africa, and other Asian countries. According to analytics, China should double its GDP by 2030 (Smialek, 2015). Additionally, it is expected that India will overtake the spot of China because its GDP growth is supposed to accelerate in the next 50 years. Meanwhile, the future is not that bright for Eastern Europe. A crisis in Ukraine and Russian stagnation both have led to serious economic consequences. Therefore, Ukrainian and Russian economies are expected to grow really slow. And this situation is not expected to stabilize anytime soon. However, a more active economic development of Hungary, Poland, and the Czech Republic are expected in the next 50 years because of an increase in industrial production and overall economic growth, which will have an impact on international trade. Nonetheless, all of these emerging economies have huge problems, such as a budget deficit, disproportional inflation, and financial stability risks.

Conclusion

In conclusion, some countries with emerging economies will have huge economic growth in the future and increasingly effective assets, however currently biggest ones may face huge losses in financial markets. It is caused by changes in the economic environment, which is not as stable as expected. The impact of emerging economies of international trade cannot be overlooked because they are becoming leading exporters. Consequently, it can be stated that international trade and emerging economies are interconnected. Therefore, it is important to cooperate at the international level to reduce risks faced by emerging economies. Under the current circumstances, the management of international financial institutions should be reformed. Overall, the elimination of current issues should lead to financial stabilization and an increase in the overall development of the global economy.

References

Kose, M. A. (2011). Emerging markets: resilience and growth amid global turmoil. Washington, D.C.: Brookings Institution Press.

Smialek, J. (2015). These will be the world’s 20 largest economies in 2030. Web.

Tihanyi, L., Banalieva, E. R., Devinney T. M., & T. Pedersen (2015). Emerging economies and multinational enterprises. Bingley, United Kingdom: Emerald.

Workman, D. (2015a). China’s Top 10 Exports. Web.

Workman, D. (2015b). Highest Value Indian Export Products.Web.

Workman, D. (2015c). Poland’s Top 10 Exports. Web.

Workman, D. (2015d). Russia’s Top 10 Exports. Web.

“Cinderella” By Randall Jarrell

Introduction

“Cinderella” by Randall Jarrell talks about an old woman who is sitting by the fire place imagining things. The literal subject matter of the poem is about a woman who is imagining things about life. She sees herself young with her grown up playmate. The speaker continues to talk about men. The godmother of the girl is cautioning the girl about men. The old woman is wishing to listen to the things they used to be told by the godmothers. She then talks of the gown and celebration in which her and her sisters are celebrating. At the end we see that the woman is just imagining and she is lonely with no one to tell stories. Randall as a modern poet employs the self-conscious aspects of modern writing.

Analysis and Explanation

In the Cinderella poem, Randall uses simple diction. The language used is characterized by simple vocabulary that can be understood easily by the reader. This is a major element in the modern poetry unlike the traditional poetry which used complex diction that could be understood by few selected audience. The ordinary language draws the reader closer to the everyday experiences.

Randall uses repetition as a technique. Some phrases have been repeated in order to bring out emphasis. In addition, the repeated sentence structures bring out rhyme and thus easy to remember as well as stressing actions and characteristics. For example “gossip, gossip” and “we know”.

He has also employed a unique imagery. He uses imagery so as to present the ordinary thing in a usual manner. For example he uses words such as flame, sea and wings. These are images that indicate the state of being young and active. The old woman is visualizing the past days when her friend her were still young. During those days, life was good and she was not lonely.

Rhythm is another device that has been used in this poem for instance the end of line 2-glances and 3-ashes. Rhyme creates rhythm and has been used in the first stanza where it coincides with the idea being expressed. The images portrayed are active hence creating the notion of movement.

Randall maintains naturalness in his poem by avoiding mimicry. This ensures that the poem exhibit the intended importance and the meaning. In addition, the structure used of one stanza to another ensures flow of the ideas. First, Randall portrays the young age of the old woman. He talks of the wedding and then the marriage life. He describes this life as that of sullen wife and a reluctant mother. Finally, he portrays a lonely old woman with many grandchildren but with no one to tell stories.

The title “Cinderella” has been used to imply what this old woman wishes to be. She wishes to be young again with her playmate. She wishes to listen to the stories they used to be told by their godmothers about men. But this is not the case; the woman is old and lonely.

Conclusion

Randall uses modern technique of writing a poem to make people understand the meaning. He makes people to think about the poem and not to passively receive the words only. The modern poets should compose poems that can be understood clearly by the readers. The language should be simple at the same time exhibit creativity so as to express their ideas in the most effective way.

Play’s Role In Development, Creativity, And Fantasy

The relationship between play and development can be viewed in three separate ways. These include cognitive functioning, social rules, and social-cultural functioning. Cognitive functioning is identified as one of the critical aspects of play, where the performance of a child is often compared to his or her future performance as an individual.

The fact that the basis of cognitive functioning lies in the different people who associate with the child in his or her young life, means that it encompasses the most basic forms of play. These allow a child to perceive his or her environment positively and identify with the reality in the environment. Social rules can be identified through an evaluation of the academic and interactive aspects of play (Johnson, Christie, and Wardle 134). These are quite valuable in ensuring that a child completes the transition from his or her attachment with the basic environment that the child is used to and interact more with his or her peers and teachers as well as other people in the society that he or she grows up in.

The interaction between children and different adults in their lives, who may not necessarily be their parents or their peers, dictate their development process mentally as well as socially. Social-cultural functioning is identified to dictate the development of children as they grow older towards their teens (Johnson, Christie, and Wardle 141). The development of a child concerning the expectations of the society that he or she lives in is often dictated by his or her perception of the environment and the individuals in the environment. This means that there are distinctive differences between children who grow up in different societies.

These differences are often dictated by the several types of play that they take up as children. The fact that play in most societies is tailored to fit the parents’ conventions and whatever they believe is best for their children, means that the socio-cultural aspects of play contribute heavily to the child’s development (Johnson, Christie and Wardle 142).

The study of play and development is often characterized by a couple of challenges. The differences in cognition between different children have been identified as challenging when studying play in an environment that provides children with options. The fact that each child perceives the environment differently means that there is a whole range of cognitive aspects that one has to work with when studying play (Johnson, Christie and Wardle 187). The fact that play and child development depend heavily on parental guidance especially when the child is young, means that some adult psychological issues have to be considered in the study of play.

There is, however, a reprieve when it comes to the teachers who have to guide the child in his or her later years since they have a specific curriculum and structure that is quite definitive and specific. Several psychological aspects are constantly changing as far as the study of child psychology is concerned. This means that those studying play have to be on the lookout for different theories that present different options on how to maximize the positive results of play in children. The need to understand play even better means that those studying play have to contend with the wide aspects that are associated with the field. Some of these aspects span across sociology and psychology fields.

Works Cited

Johnson, James, Christie James, and Wardle Francis. Play, Development, and Early Education. Boston: Pearson Education, Inc. 2005. Print.