Friday, October 4, 2013

Asian Manufacturing Indexes Show Strong Export Orders

The article “Asian Manufacturing Indexes Show Strong Export Orders” wrote by Natasha Brereton-Fukui and Tom Wright describes the uprising of the economic rates in Asian countries. In particular, those countries which economies are export-oriented have benefited the most from the recovery of U.S. and European markets. The thing is that countries of this region is specializing in electronics where higher value could be added to end products and since the latter are quite costly only or mostly customers from developed countries could afford such purchases. Thus, such countries as Taiwan, South Korea, Vietnam and China improved their economic position. However, experts doubt whether such effect is a lasting one because the U.S. is about to end the program of monetary stimulus of its economy in order to escape budget's deficit. That means that if the recent improvement of the economic situation in the mentioned Asian countries  was the direct result of monetary injections on behalf of the U.S. Federal Reserve then there is no reason to be happy. If that was the only reason why the purchasing power of Europeans and Americans increased then an even bigger economic problem is about to happen since next time there would be no resources to spare which the U.S. Federal Reserve was kind enough to provide this time.

  Everyone was affected by the global recession therefore, no wonder that common people monitor related news. This particular news article is a very informative one because it helps to make a far-reaching conclusions. It also shows how interrelated the modern world has become and what threats such transformation holds. However, this article also gives examples of some possible solutions which countries and even businesses could use to decrease the negative effect of recession. Autarky could be such a solution, at least temporarily. Countries can stimulate demand at home and thus keep “the game going on”.


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