Posts

Showing posts with the label economic hubs

Trade Deficit Shows Need to Improve Exports

The Commerce Department stated on Tuesday that the trade gap increased in September 7.6% to $43.03. It is much larger than the estimated $38.1 billion. It is believed that an improving GDP will lend to improvements in exports but this not what happened. The results may be long-term or short-term but do reflect a need for the U.S. to adjust its policies to return to a higher exportation status unseen since a generation ago. Exportation is a solid reflector on internal capacities of a nation to meet market demands. Much of the recent decline is associated with global economic factors much outside the control of the U.S. The biggest losses were a 6.5% decline in exports to the European Union, 3.2% to China, and 14.7% to Japan. The losses seem to reflect lower economic activity in all three regions of the globe and may simply be a factor of total consumption.   That doesn’t mean the country can’t improve its export capabilities. Outside of a slower global economy are two major

Poll Shows Investors are Optimistic in 2014-Can We Find a Place for Their Money?

Image
A Morgan Stanley poll of high net worth individuals found that 88% of investors are optimistic about their future economic prospects. High net worth individuals are people 25-75 with at least 100K in investable assets. A third of these individuals have at least a million dollars of investment assets and can significantly impact national economic growth if they believe that investing today will earn them higher rates of return in the short, medium, and long-term future.   Investors are expecting a positive investment environment over the next year. Eighty-eight (88%) believe their worth will rise, 84% believe their investment portfolios will stay the same or improve, and 70% envision a better investment climate. This optimism pushes the belief that investment prospects are growing and a few gold nuggets provide for higher growth sectors. Positive impressions are persisting despite some looming problems in the governance and the geo-political issues of our times. A total o

Fostering Economic Development Through Industry Clusters

Image
The development of higher economic states requires linkages between like minded individuals and their resources to start a generative process. A paper by Popa and Vlasceanu (2013) highlights how clusters, policies and sustained economic growth work together to prove development. There is a natural lack of trust between economic elements as well as business and government. It is important for economic actors to find shared perceptions and work together on common principles and goals. Regional clusters should understand their strength and weaknesses and find  competitive strategies. They should also understand how their cluster fits with other clusters and regional economic development. When clusters develop they do so within a wider network of companies and economic activities. Their core competencies and tighter connections separate them from other hub clusters. To develop stronger clusters, policies will need to have the wisdom to work with economic actors to create pro gro

Will The U.S. Soon Be a Hot Manufacturing Nation?

Will American make its way back into leading manufacturing status? A report by the Boston Consulting Group indicates that the U.S. will see increases in manufacturing over the next couple of years as parity is achieved due to lower natural gas prices, stagnated wages in the U.S. and higher costs overseas. With a decline of energy costs from oil shale dropping to 50% and increases in the cost of manufacturing in countries like China there is much to cheer in the U.S. The good times can roar again. American workers are becoming more productive, Chinese workers are more expensive, and the associated costs of manufacturing overseas have risen. A report by the Congressional Research Service found that the U.S. share of global manufacturing declined 30% in 2002 and that number dwindled  to 17.4% in 2012 ( 1 ). The new report by the Boston Consulting Group indicates that the costs of manufacturing in the U.S. versus many other places like China will be about the same giving the U.S.

The Economic System as an Avenue of Needs Fulfillment

Image
The economic system permeates our entire existence from cradle to grave. From our socialized beginning to our elder years we are constantly making choices that impact our social and financial positions in society. Our very first experiences in life help us internalize certain cultural traits that become the foundation for our viewpoints and our ability to compete on the market. Economic hubs and nations are collective traits of our economic values that maintain patterns across society. All systems start with very personal biological, sociological, and psychological choices we may not be fully aware of and make their way throughout society to determine the success or failure of a nation in the global market. Our economic system starts in our biological, psychological, and sociological core. Neuroeconomics is a concept that tries to explain how we make subconscious choices to purchase products, trust one another, or engage in certain activities beyond the simple mathematical equ