Four Forces Shaping NORC Countries Research Assignment - 1650 Words

Four Forces Shaping NORC Countries Research Assignment (Essay Sample) Content: GeographyStudents NameInstitutional AffiliationUse the ForceGlobalization is a concept that involves the means in which developments in a specific region can quickly result to great consequences for the well-being and security of individuals who are quite far areas of the world (Bytheway Metzler, 2017). Globalization refers to a set of technological, social, and economic forces that make the world interdependent and interconnected. It is evident that the world economy was highly interconnected before the financial crisis that occurred globally between 2008 and 2009. This section will discuss the concept of globalization and increasing demand for resources in relation to the Arctic.The Arctic is influenced by globalization pressures, population concentration, migration, urbanization, and continued economic integration trends. The Arctic is highly placed among other regions in the world context due to the need of building capacity in the Arctic in order to fill the res ource gaps existing at all levels. There are high economic expectations that because of altered accessibility to significant minerals, climate change, and increasing demand for resources from Northern region. There has been the rapid growth of global interest in Arctic economic growth and development (Ã… uszczuk, 2016). The changes in demand and supply for amenities and resources found in the Arctic are significant factors that have contributed to the global concerns in this region. On the cost aspects, it is perceived that the impacts of climate change will reduce ice cover in the Arctic and the broader and access costs of conducting business in five specific sectors that include tourism and fisheries, gas and oil extraction, shipping, and mineral resource extraction.The global demand is increasing for the amenities and resources due to globalization. It is vital to focus on the emerging global trends that have resulted to increase in connectivity between the global level and ar ctic. The emerging trends include dependency ratio, population concentration, economic burden, the aspect of world being smaller as result of its integration, urbanization, inadequate resources, environment, infrastructure, health implications due to aging trend, and the more connected universe that results to global information networks and shopping.The economic growth and development in the Arctic are facing various challenges in form of economic, technical, and natural obstacles. Strategies have been developed and implemented to attempt to overcome these obstacles in order to determine the Arctic future goals and its sustainability for global values and local economy. The economic globalization in the Arctic has resulted to new ideas, altered taste, values, lifestyle preferences, changes in decision-making, ideas, and changes in migration patterns, urbanization, and large consumer bases in various areas. This has been driven by the growing interest or awareness of arctic due to opportunities available in terms of resources (Ã… uszczuk, 2016). Smith notes that the numbers of individuals willing to be informed about artic, exploit or visit grow increasingly grow each year. Many people are migrating from rural to towns and cities in the Arctic. For example, people are migrating from remote sub-Arctic and Arctic where they abandon the small homes and villages to places such as Fort McMurray and Fairbanks (Smith, 2011). There is a need to build capacity in the Arctic because of its continued growth of linkages and connections at the global level. The resource development and future goals are influenced by increased empowerment in economic and political aspects, and transformations and changes in governance and institutional structures at different levels. Therefore, the major economic challenge is how to meet the new and increasing demand for both human and financial resources. Climate change present factors that influence economic growth and development in t he Arctic (Ã… uszczuk, 2016). It is important to develop and implement strategies that will help in mitigation and adaption of climate change with the aim of establishing a viable and sustainable future for the Arctic.The World in 2050People are focusing on the North Pole globally. The North Pole is surrounded by these nations that include Canada, Norway, Denmark, United States, Greenland, Sweden, Finland, and Russia. The NORCs are described as the most law-abiding, economically globalized, and trade friendly nations. It is projected that NORC countries will stand out to be the dominant nations globally by 2050 while nations in the equatorial region will find means of survival in the ever-changing globe. This section will reflect the four global forces, by Laurence C. Smith, to discuss the impacts of the four global forces in relation to NORCs countries.The immigration levels are very low in many NORCs countries. The global warming is likely to reverse this situation and make more individuals immigrate to NORC countries. The rate of immigration has been low in previous years because of the fact that NORC countries experience warmth seasonally. NORC countries experience large temperature variations from winter season to the summer season that causes the existence of frozen soil that usually takes a long period to thaw. This aspect influences many activities in NORCs such as difficulty in building a new infrastructure, the season of construction is very short, small farm outputs, and extremely cold temperatures that make it difficult for people to carry out activities successfully. These conditions were the limiting factor for immigrants interested with NORCs since they would find it hard to work and accomplish their goals effectively. The global warming has made the NORCs more desirable for people to live and work. It has made the resources to start thawing out from the permafrost soil where they were frozen in the past. Natural resources have been the majo r incentive for people immigrating to NORC countries since they provide economic opportunities. Many individuals globally will be interested to immigrate to NORC countries because of its natural resources and due to decline in temperatures; residing in these countries will be more desirable and bearable. Smith predicted that the NORCs will be more desirable by 2050 for immigrants globally and this will result in economic growth and development in these countries.Smith indicates that the world is going through urban civilization process where big cities will be built, thus increasing the demand for natural resources. NORCs have huge natural resources that highly demanded by the rest of the globe. It is projected that agriculture will improve, immigration will increase, and the weather will become a bit better. Smith highlights that the main socioeconomic function in the 21st century of Northern Rim Countries will be equivalent to the role played by Northern Ontario in the 20th Centu ry. The role involved shoveling fish, minerals, oil, and gas into the wide global maw. According to Smith, there will be a high shortage of water and deserts will be growing in the south by 2050 (Smith, 2011). He insists that there will be huge amounts of methane that will be released due to warming of the seas and vanishing of permafrost from large areas. He further notes that the ice will also melt. The four global forces that include demography, growing demand, globalization, and climate change will have various impacts on NORCs by 2050.Many rural dwellers are migrating to towns and cities at a rapid rate to make more earnings. The reason for the migration is due to growing economies in urban areas and the decreasing employment opportunities in an agricultural sector that have focused on using technology ton mechanize agricultural processes and also commercializing the sector, thus making it export-oriented. There has been a rapid decline in employment in agricultural sectors compared to other sectors, for example, in 2006 the employment rates in service sector surpassed agricultural industry. It is evident that any urban dweller becomes a potential consumer in the city. The urban dwellers purchase more electronics, foods, and other items. It is important to note that more job opportunities are created for managerial positions for an increased number of people in cities. The shifts in migration have led to demographic changes in the globe. The numbers of people in urban areas in the world will double projected by 2050, that is, it estimated that the 3.3 billion of urban dwellers in 2006 would rise to 6.4 billion by 2050 (Smith, 2011). It is also projected that the human population in NORC countries expect Russia will be larger by 2050. Globalization has shaped the worldwide production processes and development strategies and has made the global economy much more interconnected. The demand for natural resources of the north is increasing worldwide.Smith hig...

Asian Financial Crisis in 1997 and effect to Latin America - 2200 Words

Asian Financial Crisis in 1997 and effect to Latin America (Essay Sample) Content: Impact of the Asian Financial Crisis in 1997 and effect to Latin AmericaName:Institution:Date:AbstractIn 1997, the Asian Financial Crisis spread rapidly all over the Asia and affected almost all the economies in the world. Prior to the Asian Financial Crisis, the Asian countries such as Thailand, Malaysia, South Korea, Indonesia, Hong Kong and Singapore experienced a remarkable growth in the economy that was considered the highest in the world. These Asian economies increased by a notable proportion of 6 to 10 percent annually in the GDP. However, what had been regarded as an Asian miracle seemed to crumple down rapidly 1997 when these Asian countries were faced with a severe financial crisis in their local stock and currency markets. When the economies started recovering from the crisis in 1998, the stock markets in several countries had considerably lost more than 70 percent of their worth, while their currencies depreciated in comparison to the US dollar (Pettis, 2 001). The Asian Financial Crisis also affected several nations in the Latin America as they experienced a relentless economic meltdown that had detrimental effects to the economies. For instance, the financial crisis force multinational firms to close down due to liquidation, the banking system deteriorated and this forced high levels of lay-offs leading to unemployment. In addition, the financial crisis resulted in the loss of the peopleà ¢Ã¢â€š ¬s purchasing power in the Latin American while nations turned to the International Monetary Fund for monetary assistance. This research paper explains the occurrence of the Asian Financial Crisis, the impact of the crisis and the effects it had on the Latin American countriesà ¢Ã¢â€š ¬ economy.Asian Financial Crisis in 1997The Asian financial crisis took place in mid 1997 gripping several countries in Asia and this raised concerns with regards to a potential global collapse of economies as a result of the financial contagion. Thailand wa s the first country that experienced the financial crisis after the financial meltdown of the Thailand baht following the governmentà ¢Ã¢â€š ¬s move to float the baht. Thailand had accumulated a considerable amount of foreign debts making the nation bankrupt prior to the collapse of the currency. As the financial disaster increased several countries in Asia and experienced crashing currencies and diminished stock markets while the private debts increased significantly. The financial crisis severely affected the economies of Indonesia, Thailand and South Korea while the effects of the crisis spread evenly across the globe and almost all the countries that trade with the Asia nations experienced the effects of the crisis (Haggard, 2000).The Asian financial crisis spread swiftly across the world economies through Russia, Brazil and finally to the Latin America as a result of financial contagion. What started as a financial crisis in Asia quickly spread over to Latin America, particula rly in into Brazil and it swiftly enclosed the entire Latin America continent. The economy of Brazil had put in place economic policies that resembled the policies in the East Asian nations that maintained high interest rates so as draw foreign capital and also defend the fixed exchange rates against the dollar (Hunter, 1999). As a result, this resulted in a huge inflow of unstable capital and this increased Brazilà ¢Ã¢â€š ¬s susceptibility to external financial challenges from any form of financial crisis.Impact of the Asian Financial Crisis on the Latin American EconomyDuring the peak of the Asian financial crisis, the Russian financial crisis enhanced the fears concerning the viability of the economy of Brazil and as a result more US$20 billion was drained from the country. Regardless of the negotiations for support grant from the IMF and the United States Treasury, the monetary drainage persisted and Brazil was forced to devalue its currency. As a result, the Brazilian governme nt authorized the real to float, while it abandoned linking its currency to the U.S. dollar. The financial crisis in Brazil spread out rapidly to other nations in Latin America and as a result several billions of dollars were drained from these countries and this hindered the trade exchange with the United States. As a result, the nations in the Latin America experienced one of the nastiest economic recession that was mainly fuelled by the Asian financial crisis. The effect of the financial disaster was predominantly severe in the Latin Americaà ¢Ã¢â€š ¬s small economies, for instance Bolivia, Uruguay, Ecuador, Chile and, Argentina and Colombia (Hunter, 1999).Petti (2001) argues that financial shocks can move rapidly throughout the nations within similar regions as it was revealed by the Mexican peso disaster that occurred in the year 1994. Similarly, the financial crisis that affected the Asian countries proved to be a regional financial crisis and it threatened geographically dis tant vibrant economies mostly in the Latin America. The Latin America countries began experiencing the effects of the Asian financial crisis in 1997 after the currency devaluation in Asia put pressure on other markets. Accordingly, this threatened to alter the regional financial crisis to a wider financial crisis mostly to the developing economies in the Latin America. The Asian Financial Crisis impacted the Latin America countries economy through two key channels that are finance and trade.Financial ImpactPrior to the Asian financial crisis, the emerging markets in Latin America experienced enhanced access to global financing and this resulted in the gross influx of large capital that amounted to more than US$ 80 billion in 1997. On the other hand, the foreign direct investment increased in the Latin American countries with a capital inflow of almost US$ 44 billion. After the outbreak of the financial crisis in 1997, the spreads increased in the Asian nations that were directly hit by the crisis while there was a stable or slight decline in Latin American nations. However, the situation rapidly changed in due the peak of the crisis when there was an abrupt decline in the stock market leading to a sudden increase of the risk premiums in the developing economies in the Latin America (Haggard, 2000).The abrupt drop of capital flow to the nations in the Latin America economies in 1997 was related to the financial disaster in Asia. According to Pettis (2001), the international bonds issued from the Latin America countries reduced drastically to below $5 billion during the last quarter of 1997 in comparison to more than U.S. $21billion during the quarter before the financial crisis. In the same way, the stock indexes across the Latin America lost a considerable ground during the same period. The Brazilian equities deteriorated due to the investorsà ¢Ã¢â€š ¬ concerns about the nation's "managed floats" that are as a result of Brazil's substantial deficit in the cur rent account combined with the fiscal deficits. In addition, the market in Argentina suffered from opinion that the country is twice susceptible as a result of the fixed exchange rate system and its reliance on the Brazilian economy as trading partners.The changes to the climate of the global financial market, chiefly for the developing economies hit the financial security of the nations. As a result, the Asian crisis directly impacted on most of the sectors that were susceptible to external capital movements due to the need for dollars for trading. The financial crisis in Asia prompted several global investors in the Latin America to seek for profits in the country so as to cover for the losses in the stock markets and also sustain their liquidity. The financial impact of the Asian financial crisis was initial apparent through the fall in prices in the Latin America stock exchange markets. Accordingly, as the crisis continued, with slight variation from nation to nation, the stock market declined and tight terms were introduced in accessing the external capital (Hunter, 1999). As a result, the financial crisis affected the foreign exchange market in the Latin America, the banking systems and also the inflow of the global capital market.Trade ImpactThe financial impacts in Latin American economies was manifested immediately as the aftermath of the Asian financial crisis while the trade effects took some ti... Asian Financial Crisis in 1997 and effect to Latin America - 2200 Words Asian Financial Crisis in 1997 and effect to Latin America (Essay Sample) Content: Impact of the Asian Financial Crisis in 1997 and effect to Latin AmericaName:Institution:Date:AbstractIn 1997, the Asian Financial Crisis spread rapidly all over the Asia and affected almost all the economies in the world. Prior to the Asian Financial Crisis, the Asian countries such as Thailand, Malaysia, South Korea, Indonesia, Hong Kong and Singapore experienced a remarkable growth in the economy that was considered the highest in the world. These Asian economies increased by a notable proportion of 6 to 10 percent annually in the GDP. However, what had been regarded as an Asian miracle seemed to crumple down rapidly 1997 when these Asian countries were faced with a severe financial crisis in their local stock and currency markets. When the economies started recovering from the crisis in 1998, the stock markets in several countries had considerably lost more than 70 percent of their worth, while their currencies depreciated in comparison to the US dollar (Pettis, 2 001). The Asian Financial Crisis also affected several nations in the Latin America as they experienced a relentless economic meltdown that had detrimental effects to the economies. For instance, the financial crisis force multinational firms to close down due to liquidation, the banking system deteriorated and this forced high levels of lay-offs leading to unemployment. In addition, the financial crisis resulted in the loss of the peopleà ¢Ã¢â€š ¬s purchasing power in the Latin American while nations turned to the International Monetary Fund for monetary assistance. This research paper explains the occurrence of the Asian Financial Crisis, the impact of the crisis and the effects it had on the Latin American countriesà ¢Ã¢â€š ¬ economy.Asian Financial Crisis in 1997The Asian financial crisis took place in mid 1997 gripping several countries in Asia and this raised concerns with regards to a potential global collapse of economies as a result of the financial contagion. Thailand wa s the first country that experienced the financial crisis after the financial meltdown of the Thailand baht following the governmentà ¢Ã¢â€š ¬s move to float the baht. Thailand had accumulated a considerable amount of foreign debts making the nation bankrupt prior to the collapse of the currency. As the financial disaster increased several countries in Asia and experienced crashing currencies and diminished stock markets while the private debts increased significantly. The financial crisis severely affected the economies of Indonesia, Thailand and South Korea while the effects of the crisis spread evenly across the globe and almost all the countries that trade with the Asia nations experienced the effects of the crisis (Haggard, 2000).The Asian financial crisis spread swiftly across the world economies through Russia, Brazil and finally to the Latin America as a result of financial contagion. What started as a financial crisis in Asia quickly spread over to Latin America, particula rly in into Brazil and it swiftly enclosed the entire Latin America continent. The economy of Brazil had put in place economic policies that resembled the policies in the East Asian nations that maintained high interest rates so as draw foreign capital and also defend the fixed exchange rates against the dollar (Hunter, 1999). As a result, this resulted in a huge inflow of unstable capital and this increased Brazilà ¢Ã¢â€š ¬s susceptibility to external financial challenges from any form of financial crisis.Impact of the Asian Financial Crisis on the Latin American EconomyDuring the peak of the Asian financial crisis, the Russian financial crisis enhanced the fears concerning the viability of the economy of Brazil and as a result more US$20 billion was drained from the country. Regardless of the negotiations for support grant from the IMF and the United States Treasury, the monetary drainage persisted and Brazil was forced to devalue its currency. As a result, the Brazilian governme nt authorized the real to float, while it abandoned linking its currency to the U.S. dollar. The financial crisis in Brazil spread out rapidly to other nations in Latin America and as a result several billions of dollars were drained from these countries and this hindered the trade exchange with the United States. As a result, the nations in the Latin America experienced one of the nastiest economic recession that was mainly fuelled by the Asian financial crisis. The effect of the financial disaster was predominantly severe in the Latin Americaà ¢Ã¢â€š ¬s small economies, for instance Bolivia, Uruguay, Ecuador, Chile and, Argentina and Colombia (Hunter, 1999).Petti (2001) argues that financial shocks can move rapidly throughout the nations within similar regions as it was revealed by the Mexican peso disaster that occurred in the year 1994. Similarly, the financial crisis that affected the Asian countries proved to be a regional financial crisis and it threatened geographically dis tant vibrant economies mostly in the Latin America. The Latin America countries began experiencing the effects of the Asian financial crisis in 1997 after the currency devaluation in Asia put pressure on other markets. Accordingly, this threatened to alter the regional financial crisis to a wider financial crisis mostly to the developing economies in the Latin America. The Asian Financial Crisis impacted the Latin America countries economy through two key channels that are finance and trade.Financial ImpactPrior to the Asian financial crisis, the emerging markets in Latin America experienced enhanced access to global financing and this resulted in the gross influx of large capital that amounted to more than US$ 80 billion in 1997. On the other hand, the foreign direct investment increased in the Latin American countries with a capital inflow of almost US$ 44 billion. After the outbreak of the financial crisis in 1997, the spreads increased in the Asian nations that were directly hit by the crisis while there was a stable or slight decline in Latin American nations. However, the situation rapidly changed in due the peak of the crisis when there was an abrupt decline in the stock market leading to a sudden increase of the risk premiums in the developing economies in the Latin America (Haggard, 2000).The abrupt drop of capital flow to the nations in the Latin America economies in 1997 was related to the financial disaster in Asia. According to Pettis (2001), the international bonds issued from the Latin America countries reduced drastically to below $5 billion during the last quarter of 1997 in comparison to more than U.S. $21billion during the quarter before the financial crisis. In the same way, the stock indexes across the Latin America lost a considerable ground during the same period. The Brazilian equities deteriorated due to the investorsà ¢Ã¢â€š ¬ concerns about the nation's "managed floats" that are as a result of Brazil's substantial deficit in the cur rent account combined with the fiscal deficits. In addition, the market in Argentina suffered from opinion that the country is twice susceptible as a result of the fixed exchange rate system and its reliance on the Brazilian economy as trading partners.The changes to the climate of the global financial market, chiefly for the developing economies hit the financial security of the nations. As a result, the Asian crisis directly impacted on most of the sectors that were susceptible to external capital movements due to the need for dollars for trading. The financial crisis in Asia prompted several global investors in the Latin America to seek for profits in the country so as to cover for the losses in the stock markets and also sustain their liquidity. The financial impact of the Asian financial crisis was initial apparent through the fall in prices in the Latin America stock exchange markets. Accordingly, as the crisis continued, with slight variation from nation to nation, the stock market declined and tight terms were introduced in accessing the external capital (Hunter, 1999). As a result, the financial crisis affected the foreign exchange market in the Latin America, the banking systems and also the inflow of the global capital market.Trade ImpactThe financial impacts in Latin American economies was manifested immediately as the aftermath of the Asian financial crisis while the trade effects took some ti...