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Fed Faces Pressure from IMF on Rate HikeOpen in a New Window

The Federal Funds Rate (FFR) is designed to either stimulate saving or spending based on the level of economic growth. Following the 2008 financial crisis, the rate was slashed in attempt to temporarily buoy the markets, but the current economy is calling for an increase in the rate. The series of rate increases proposed by the Federal Reserve were set to be enacted sometime around fall of 2015, although more recently analysts predict that the September 16-17 meeting specifically will reflect...

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U.S. Shouldn't Fret Over Cheaper YuanOpen in a New Window

An article written recently by Tomas Hult, Director of Michigan State University's International Business Center, focuses on the devaluation of the yuan and the impact it will have on the U.S. economy. He argues that the impact on U.S. businesses will not be as negative as many people think and cites research to support his position. His article appears in Fortune's online publication and can be accessed by clicking here. 

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Economic Growth Stalls in MexicoOpen in a New Window

Mexican President Enrique Peña Nieto is now at the halfway point of his 6 year presidential term. On Wednesday, he delivered his third State of the Union address, during which he highlighted his plan to boost the Mexican economy. Although a number of measures and reforms were proposed, many Mexican citizens believe that the President’s reforms have not succeeded due to the corruption and economic uncertainties present throughout the country. Since he became president in...

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U.S. Interest Rates and What It Means for the Global EconomyOpen in a New Window

As of late, there has been a lot of talk of whether the United States Federal Reserve Bank will raise interest rates in September. Typically, the Federal Reserve would raise its benchmark interest rate when the economy is growing too fast to encourage people to spend less and save more. This slows the economy down, thereby reducing inflationary pressure. A raise in interest rates signals a perception that inflation is rising and that the economy is healthy and growing. Raising interest rates...

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Greece's Economic Woes Drown Fishing IndustryOpen in a New Window

The last six years of economic crisis have taken a huge toll on Greece’s fishing industry, with fish being the country’s second largest agricultural export. Diminishing household buying power has stifled the demand for fish domestically; a problem that has been exacerbated by a weakened banking sector that is unable to provide sufficient cash to customers. Exporting fish to countries in a more stable economic position could revive this industry, yet even this solution is laden with...

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The Effect of China's 'Black Monday'Open in a New Window

On Monday, August 24th, Chinese stock markets fell by 8.5%, creating a major crash in the Shanghai Composite. Investors have called this day China's 'Black Monday' because of the dent it has left in China's business as well as the consequences it has caused for the global economy. The crash was caused by many factors including the staggering amount of people investing in the Chinese stock market, suffering businesses with high stocks and prices, margin calls, and the...

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Changes in Global Market TradeOpen in a New Window

Even though global market trade has been in a bit of disorder lately, great advances are expected in trade between Asia, Africa, North America, and Europe by the year 2020. Currently, China's trade is growing, just not at margins seen in the past. With only an expected annual growth rate of 5% over the next five years, China's slowing trade growth comes at a cost from weaker growth among emerging markets. This slowing of China's trade will lead to new trade expansion in the...

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A Breakdown of the 2015 Currency WarsOpen in a New Window

The ECB is still struggling to keep Greece above water, while China is dealing with its market crash. The surprise yuan devaluation has agitated global markets further. When the People’s Bank of China (PBOC) decided to weaken its currency to get back on the right track, the USD, JPY, and EUR have been forced to adjust accordingly. Anytime a nation deliberately interferes with its currency, ripples are sent through the markets. China, with its 1.9% devaluation, has made waves. Last year,...

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2015 Could be a Record Year for Takeover DealsOpen in a New Window

With multiple billion-dollar deals already announced this year, total takeover-deal announcements are on pace to reach $4.58 trillion in 2015. This mark would exceed to previous record high of $4.29 trillion set in 2007, just before the global financial meltdown. This sudden surge in Mergers and Acquisitions (M&A) is being driven by a unique macroeconomic landscape. The first major factor is the slowing pace of profit and revenue growth. According to FactSet, profit growth among the...

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Benin Energy Industry OpportunityOpen in a New Window

Earlier this summer, the Millennium Challenge Corporation (MCC) announced a $70 million commitment to bring in one billion dollars in public-private investments for developing countries. This plan will take place over the next five years, and the grant money given to Africa is expected to generate $750 million in investments from the private sector. The MCC is heavily investing in the continent’s energy sector, and the ultimate goal is to reduce poverty, increase economic growth, and...

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Iraq's Financial CrisisOpen in a New Window

Iraq’s economic stability has been impacted by budget deficits that have been worsened by low global oil prices. Since early 2014, Iraq has experienced massive economic decline due to territory that has been lost to militants in extremist groups, such as the Islamic State. Oil revenue comprises nearly 90% of revenue for the national budget, and the market price of oil is about half of what is needed to break even. In July, oil revenue stood at $31.5 billion and its average daily export...

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Greece's New BailoutOpen in a New Window

Greece's woes have been a well-publicized global topic over the past year. Between its staggering debt, its default on these debts, and discussion of its exile from the European Union, Greece has struggled with pulling its way through an web of economic troubles. There is, however, a glint of optimism for the country. On August 14th, Eurozone finance ministers approved Greece for a new bailout package, its third such deal in five years. The package was agreed upon after a half-year's...

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Current Pressures on Emerging Market CurrenciesOpen in a New Window

There are presently many different happenings all across the globe that are affecting emerging market (EM) currencies. A lessening demand for commodities, a devaluation of China's currency, stalled global trade, and an expectation that the Federal Reserve will increase interest rates are all bearing down on EM currencies. Some of the countries on the more drastic end of this are Russia, Colombia, and Brazil, whose currencies have fallen more than 30% over the past year, according to...

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United States Oil Industry’s Response to Global GlutOpen in a New Window

To say the global oil industry has had a turbulent year would be an understatement. The industry has been thrown into a violent tailspin, which has culminated in oil trading for under half the price it was fourteen months ago. While the initial cause of the crash was oversupply, several recent international developments, including the Chinese market downturn and the proposed Iran nuclear deal, have only accentuated the demise. More information about the underlying causes and the current state...

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Is China's Yuan Devaluation Enough?Open in a New Window

The fire may have died down in China, but the burns it left in its wake are still raw, as the Chinese government attempts to bring back some stability by weakening the yuan. Devaluing its currency is proving to be rather injurious for Australian, New Zealand, Singapore, and Taiwanese dollars, as they took a rough tumble earlier this week. Luckily for America though, this drop has proven successful for the USD, as investors are getting bullish on its outcome in coming weeks. But this move on...

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NAFTA and the TPP: A ComparisonOpen in a New Window

As far as regional trade agreements are concerned, the upcoming Trans-Pacific Partnership (TPP) is constantly being compared to the North American Free Trade Agreement (NAFTA). United States citizens in particular are concerned as to whether free trade is actually beneficial to the U.S. economy and its workers. When NAFTA entered into force in 1994, tariffs were cut and laws were changed in order to allow free trade between the U.S., Canada, and Mexico. While many proponents of the agreement...

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Milennials Not Leaving the NestOpen in a New Window

At the end of the past decade, many millennials began to move in with their parents in order to save money throughout the recession and declining job market. Despite the belief that these young adults would move back to living independently once the economy improved, there are even more of them living at home than there were before according to a study by Pew Research Center. The national unemployment rate for young adults declined to 7.7% in the first four months of this year, compared to the...

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Economic Impact of Hosting the OlympicsOpen in a New Window

Sporting events, such as the Olympics, have been thought to be large magnets for foreign investment, and large sums of money are often spent on developing state-of-the-art facilities. These sporting events have played a large role in raising awareness for the host country on the global stage and developing infrastructure. The 2015 Special Olympics World Games were recently hosted Los Angeles, California, and Brazil will be hosting the 2016 Summer Olympics in Rio de Janeiro. China...

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Trans-Pacific Partnership ControversiesOpen in a New Window

The Trans-Pacific Partnership (TPP) is a trade agreement between twelve Pacific Rim countries with the goal of lowering or eliminating trade barriers, including tariffs, quotas, and other restrictions, between the nations involved. Major nations such as Canada, Japan, the United States, and Mexico all have stakes in the partnership. The proposal has undergone negotiations for several years, with plans to finalize the agreement going back to 2012. The...

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The Power is in Being PreparedOpen in a New Window

The business risk companies are now facing has increased greatly due to global interconnectivity and its associated danger. These risks are quick to evolve and there is little a company can do besides being prepared, which hopefully allows it to bounce back and emerge even stronger. There currently are two events occurring in the world that are having a tremendous effect on global risk. One is the Greek debt crisis and its threat to Europe's political stability. The second is...

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