Future Economists

Seeds of future prosperity lies in today's children,
Let's join our hands to nurture the seed,
To its fullest growth,
for the greater welfare of Society.
Let's be united to remove the
poverty and corruption.


Thursday, December 01, 2011

number 1 answer, 9Buss

1. manage exchange rate system is a exchange rate system that is controlled by the government. in manage exchange rate system, government controls and manages the fluctuation of the currency. Government will not allow the currency to appreciate too high or depreciate too low, because it may be unbeneficial for both importers and exporters. example of country that has manage exchange rate system is Canada.

2. Depreciation of currency should have increased the competitiveness of export in the market, but instead of increasing export, the export decreased.
one of the reason for this decrease despite the depreciating currency is the Europe crisis.
in the article, it was said European countries account for 11 percent of the global demand for natural rubber (something that Indonesia produces and exports). Because European countries are now experiencing crisis, they try to reduce import (to reduce their expenses and keep the balance of payment as favourable as possible).
Second reason to this decline might be because the goods produced by Indonesia are mostly raw materials, and they are price elastic.
It means that the goods produced by Indonesia can be easily replaced by products from other country. The quality of products produced by Indonesia might be not as good as other countries'. Because the quality doesn't match up with the other countries', it loses demand even though the price of the product has decreased.
The condition will be different, however, if Indonesia produces goods that are price inelastic such as versatile electronics and gadgets, such as Japan and America.


3. Stability of the Currency (Rupiah) is one of the important factor of growth in Indonesian economy.
If the rupiah of Indonesia is stable, then
- More foreign investment, because investors are looking for country with stable economy good future prospects
- rupiah will be favoured in the market by the speculators. if the speculators buy a lot of rupiahs then the demand for rupiah will keep rising, and rising demand means appreciation of rupiah. Appreciation of rupiah increases the price of export in market. this can be good for the short run; the price is high so Indonesia will earn more. but in the long run, demand for the exports might go down. decreasing demand for export will decrease the production of Indonesian producers and hence it decreases GDP of Indonesia. Decreasing GDP will reduce the growth of Indonesian economy.
- higher investment means government has more money to spend for the welfare and benefit of society (it can be successfully done if there is no corrupt government individuals in Indonesia). Government can use the money to increase the education in Indonesia (to increase literacy rate, which is a parameter for a growth of economy in a country)and improve the health care (increase the life expectancy, another parameter for growth of economy in a country).




number three continuation and four is coming, and i don't know why i cannot post comment..
Sandra

Tuesday, November 29, 2011

Crisis in World Economy

Activity for the 11B_A2 Students

World economy is facing a problem of second recession. Economic Growth is faultering in world's major economies. Growth forecasts have been downgraded for fast growing economies. Credit rating of developed economies are under pressure. Bond rates are rising, exchange rates are volatile and and signs of revival seems to be distant with business confidence are touching their nadir.

Present your views for the topics mentioned below with facts, references and in the light of theoretical evaluation: Maximum Marks allocation  is 25.
1) Discuss the causes of the economic recession. Angelica
2) Discuss the consequences for the world economy as a result to second wave of recession: Eveline
3) Discuss the role of government in finding the way out of this recession. Jason
4) Evaluate the measure undertaken by the various governments. Chirskevin

Resource1 : OECD calls for urgent action to boost ailing global economy

Exporters See Demand Drop Despite Declining Rupiah

Wednesday, November 23, 2011

Corporate Argument

We as the Corporate believe the action of implementing nuclear power on indonesia is the best action. Nuclear power will provide enormous power source with so little and so lot benefits for the society. Nuclear power is by far the most power supplying fuel and only create really tiny pollution. The construction of the nuclear power plan itself would bring a lot of job for the unemployed, giving the government time to figure out other job for the temporary worker. Although the construction need nuclear expert team, but minimal number of them is needed for the construction. The equipment itself is fragile so it leave job opportunity for the jobless to take role as a watcher on latter day of operation. Other than the employment opportunity, we also decide to invest on indonesia, creating a strong alliance between indonesia and our country. The investment itself valued at 10 million dollar US, showing our willingness to have indonesia develop and showing our good incentive on world economy. You government, citizen, environmentalist only need to imagine how beneficial this money is for your development. Surely there are no argument against us as we show our goodwill by providing this technology and our quality assurance on any accident. If this is not enough, we will also fund education and human development, to show our corporate responsibility and our realization on human development as a way to help your country grow and to show how good is our corporate responsibility is. If this is still unsatisfactory for you government and citizen, think about the benefit of cheap electricity for development of business and education. Think of the assurance and comfort, knowing that your electricity would not goes off suddenly. Think of world of more, coming from cheap electricity. Education, entertainment, business, and much more.
We'll end our argument now. Comment and critics are welcomed of course.

Thomas Cook shares dive 75% on news of bank talks

Monday, November 21, 2011

FDI: Nuclear Power Plant


Topic : Investment on Nuclear Power Plant in Indonesia
Group A: CEO Mr. Johan
                GM1 Miss. Eunike and GM2 Mr. Nicolas
                JEN Multinational Company
                New York, USA.

Group B: Government Representatives
                Mr. Randy (Power Minister)
                Miss Sandra, Miss Jesslyn (Minister of State)

Group C: Save Indonesia (Enironmentatlists)
                CEO. Mr. James
                Dr. Miss Princilla (Nuclear Scientist)
                Dr. Lydia (Expert Nuclear Waste Disposal)

Wednesday, May 18, 2011

Yuan: Dollar Drop? You Ain't Seen Nothin' Yet if Yuan Jumps - CNBC

What are the measures that China is using in order to avoid appreciation and why?
Examine the benefits of appreciation of dollar to the world economy.[12]