Development of SMEs in Malaysia

Development of SMEs in Malaysia The Global Enterprise Introduction Malaysia is a developing nation with a population of 30 million and currently classified in the upper middle income category. It is situated in the South East Asia Region and is part of the Association of South East Asian Nation; which also comprises of countries such as Brunei, Cambodia, Indonesia, Laos, Myanmar, Philippines, Singapore, as well as Thailand and Vietnam (ASEAN, 2014). Malaysia is a unique country as it is made up of a variety of races such as Malay, Chinese and Indian as well as indigenous races, making it an ethnically heterogeneous nation. This thus sets a very diverse and vibrant cultural backdrop in Malaysia. Important Benchmark in the Malaysian Economic Policy In their study of strengthening entrepreneurship in Malaysia, Ariff et al (2000) describes that during the British colonial rule of Malaya (pre-1957), the British implemented the practice of separating economic activity along racial boundaries. Malaya’s main economic drivers at the time were tin mining and production of rubber. In order to streamline operations of the industry, Indian and Chinese migrant workers were imported to work on the rubber plantations and in the tin mines respectively. The Chinese were allowed to run certain businesses; becoming shopkeepers, peddlers and petty traders in the towns. The Malays were mainly concentrated in the agricultural sector and were the only ethnic-group that was allowed into the bureaucracy. However, only members of the royal or upper-class families of the different states of Malaya were usually allowed into the administration, whereas the majority of Malays were limited to the low-income agricultural sector. This resulted in a ver y multi-layered society, segregated economically and racially with the majority of Malays (Bumiputras) at the bottom rung. To rectify the economic disparity that existed within the country, the representatives of the three major ethnic groups (Malay, Indian and Chinese) agreed that upon independence from colonial rule, the Malays would be given certain â€Å"special rights† in the fields of religion, economics and politics. The main reason for this â€Å"positive discrimination† was to elevate the status of the economically marginalized Malays, and therefore create a more equitable and balanced society. Under the New Economic Policy (NEP) established in 1970, these special rights received more comprehensive enunciation. This was a reaction to the growing discontent about the economic inequalities between the Malays and the other races who were still gaining economic ascendancy. The main objectives of the NEP were to reduce and eventually eradicate poverty, and to accelerate the process of restructuring Malaysian society to correct economic imbalance, so as to reduce and eventually eliminate the identification of race with economic function (Kuala Lumpur: Government Press, 1972) The NEP emphasised on increasing effective Bumiputra ownership and participation in the corporate sector, improving Bumiputra participation in high-income occupations, as well as narrowing income inequality and eradicating poverty. Within these larger policies, the subject of constructing a Bumiputra Commercial and Industrial Community (BCIC), which involves fostering Bumiputra entrepreneurs, professionals and creating a Bumiputra middle-class (Economic Planning Unit, 2001) is deeply prevalent. This has become the backbone of Malaysia’s strategy for strengthening national entrepreneurship, and all related policies and strategies have to take this into consideration. However non-Bumiputra entrepreneurs have not been completely neglected. The State of the Malaysian Economy (2013-2014) Malaysia has a medium-sized but rapidly growing economy. It is self-sufficient in important natural resources, including gas and oil, and has a conducive environment and climate for the production of various crops (oil palm being one of those). Her especially strategic location provides further advantages for the development of its international trade. As of 14 August 2014, Malaysia has posted a Gross Domestic product (GDP) of 6.4%, amounting to RM262.8 billion. This is a very encouraging sign for the national economy. This is a slightly marked improvement from the first quarter of 2014 which was 6.2%. In the fourth quarter of 2013, the nation posted a GDP of 5.1% (Department of Statistics, Malaysia, 2014). This can be seen in Chart 1. The construction sector was the main contributor to the GDP at 9.9%, followed by manufacturing (7.3%), agriculture (7.1%), private consumption (6.5%) and petroleum and mining (2.1%) according to The Star (2014) An additional point to note; the twin tragic disasters that befell Malaysia especially Malaysia Airlines this year (flights MH370 and MH17 respectively) have not significantly affected Malaysia’s bullish economic performance. However, Malaysia Airlines (MAS) have been experiencing heavy losses in the 2nd and 3rd quarters of the year (Malaysia Airlines, 2014) As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, has forced the government to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. The government is also trying to lessen its reliance on state oil producer PETRONAS. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysias exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, the Prime Minister of Malaysia Dato’ Sri Najib Razak earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other assigned interests. In September 2013 Najib launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays, further strengthening the economic stature and power of the Bumiputras in the nation. Malaysia has a diversified and rapidly expanding manufacturing sector. Malaysia was able to join the worlds leaders in some fields although in many areas of manufacturing, it relies on imported technologies and foreign investments. In the 1990s, it became the worlds third-largest producer of integrated circuits and one of the leading producers of domestic appliances. Agriculture is still an important export earner. Malaysia is the worlds second largest producer of palm oil behind Indonesia, amounting to 39% of the world’s palm oil production (Malaysian Palm Oil Council, 2014). Malaysia has always been very open to foreign investment (FDI), especially for export-oriented manufactures, with relatively few restrictions and easy return of profits. This has prompted some of the worlds largest corporations, such as Dell and Microsoft of the United States, NEC and Mitsubishi of Japan, and others, to set up production branches in Malaysia. Small Medium Enterprises (SMEs) in Malaysia Normah Mohd Aris (2007) says that: â€Å"The Malaysian economy is driven and influenced by many factors. Some of these factors include Small and medium enterprises (commonly referred to as SMEs) have been the backbone of economic growth of an economy in driving industrial development. Due to their sheer numbers, size and nature of operations, the role of SMEs in promoting domestic sources of growth and strengthening the infrastructure for accelerated economic expansion and development in Malaysia has been recognised. The interdependence of SMEs and large enterprises in collaborating with each other has led to the further expansion of SMEs.† According to the Malaysian SME Corp website, SMEs are defined by the following features: Manufacturing sector, sales turnover not exceeding RM50 million OR full-time employees not exceeding 200 workers Services and other sectors, sales turnover not exceeding RM20 million OR full-time employees not exceeding 75 workers SMEs are further divided into three different categories as shown in Table 1. SMEs in Malaysia are generally focused in the textile and apparel, food and beverages, metals and metals products and wood and wood products sectors. The majority of manufacturing companies are located in the central parts of Malaysia and around the country’s major industrial regions. Challenges Faced by SMEs in Malaysia According to Muhammad et al., (2010) many previous studies conducted by Saleh and Ndubisi (2006); Samad (2007); Abu Bakar et al. (2006); Aris (2006); Harvie (2004); Wang (2003); Wafa et al. (2005); Ritchie Brindley (2000); Decker et al. (2006) and Foon (2006) various challenges faced SMEs in a globalized environment. The SMEs should mainly concentrate in overcoming the challenges, which include recession, barrier from global sourcing, low productivity, lack of managerial capabilities, and lack of financing, difficulty in accessing management, technology and heavy regulatory burden. In the same way, Teoh and Chong (2008) reasoned that the major hurdles to entrepreneurship development are lack of access to credit, formal business and social networks. Muhammad et al. (2010) identified that the main problems faced by SMEs in Malaysia are the lack of knowledge regarding marketing techniques, branding, customer loyalty and also lack of good contacts with others local and international ent erprises. How the Government is Helping SMEs in Malaysia The Malaysian Government’s commitment to and involvement for the development of SMEs has been palpable since the early 1970s. The ‘New Economic Policy’, which mainly aimed to improve people’s welfare and restructure ethnic economic imbalances, was introduced in 1971. The government’s commitment to the development of SMEs is also evident in the second Industrial Master Plan (IMP2), which is then followed by the Third Industrial Master Plan (IMP3) 2006–2020; to coincide with the country’s vision for 2020.The Malaysian Government has implemented various policies and strategies under these plans. (Saleh et al, 2006) Further understanding the role of SMEs, the government’s commitment towards the development of SMEs was emphasized when the National SME Development Council (NSDC), was established in 2004. This Council embodies the highest-level policy making body to chart the direction and strategies for the development of SMEs. Some of the initiatives announced include the formulation of targeted strategies for the development of SMEs across all sectors; the establishment of a comprehensive National SME database and the expansion of development support programmes and facilities to enhance access to financing and accessibility of markets for export (Bank Negara Malaysia, 2006). The Small and Medium Industries Development Corporation (SMIDEC) was also set up, with the goal of developing capable and resilient Malaysian SMEs to be competitive in the global market. In 2007, the NSDC decided to appoint a single dedicated agency to formulate overall policies. SMIDEC was chosen to tackle this role and was transformed into the Small and Medium Enterprise Corporation Malaysia (SME Corp. Malaysia). SME Corp. Malaysia is now the central point of reference for information and advisory services for all SMEs in Malaysia. (Small and Medium Enterprise Corporation Malaysia, 2014) Saleh et al (2006) have also identified other key areas in which the Malaysian government have been helping SMEs. These areas include: 1. Developing Access to Markets The Malaysian External Trade Development Corporation (MATRADE) facilitates the participation of SMEs at trade fairs and trade exhibitions by financing their participation costs. This gives the SMEs a platform to market and showcase their companies. 2. Upgrading Technology Technology provides SMEs with the opportunity to increase their efficiency and productivity with tools to better manage their business amidst the growing demands of the current market. 3. Promoting the Application of ICT ICT allows effective and speedy communications and can ensure timely responses to market requirements. 4. Research Development (R D) and Innovation A total of RM280million was allocated to the Industry Research and Development Grant Scheme (IGS) and Commercialization of Research and Development Findings (CRDF) schemes under the 8th Malaysian Plan. 5. Productivity and Quality Assistance programs are aimed at encouraging SMEs to acquire quality standards (health, safety, environment and labour) that will assist them to leverage their strengths. 6. Awards and Recognition The government introduced various award programs to acknowledge companies that have attained excellence. Such programs include: The Prime Minister’s Industry Excellence Award Productivity and Quality management Award (PQMA) Enterprise 50 Award (E50) 7. Access to Financing and Grants The government has allocated substantial funds for borrowing by SMEs. 8. Supply of Skilled Labour In regard to SMEs, SME Corp. Malaysia collaborates with around 20 skill centres to provide training to local SMEs in technical and managerial proficiencies. The Electrical and Electronics, automotive, machinery and engineering services are some of sectors receiving priority in terms of training. References Ariff, M. and Abubakar, S.Y. (2004) Strengthening Entrepreneurship in Malaysia, pp. 2-12 Aris, N. M. (2006) SMEs: building blocks for economic growth. http://www.statistics.gov.my/conference/download.php?cat=1id_file=22. accessed 20/10/2014 ASEAN (2014) ASEAN Member States. http://www.asean.org/asean/asean-member-states accessed 15/10/2014 BNM – Bank Negara Malaysia (2004), â€Å"National SME Council Meeting†, Press Release, Bank Negara Malaysia. Foon, L. S. Eu-Gene, S. (2006) The Changing of Education in the Globalized World. Proceedings of Persidangan Kebangsaan IKS 2006, Kuala Lumpur: Universiti Utara Malaysia. Decker, M., Schiefer, G. Bulander, R. (2006). Specific challenges for small and medium-sized enterprises (SME) in M-business: a SME-suitable framework for mobile services. Proceedings of the International Conference on E-Business (ICE-B 2006), Setà ºbal, Portugal: INSTICC. Department of Statistics, Malaysia (2014) Press Release Gross Domestic Product, 2nd Quarter of 2014. http://www.statistics.gov.my/portal/images/stories/files/LatestReleases/gdp/2014/GDP_PRESS_RELEASE_Q2_2014.pdf accessed 20/10/2014 Economic Planning Unit, Prime Minister’s Department. Eighth Malaysia Plan, 2001-2005. Kuala Lumpur: Government Printers, 2001 Harvie, C. (2004) East Asian SME capacity building, competitiveness and market opportunities in a global economy, pp 2-10 Index Mundi (2014), Malaysia Economy Profile 2014. http://www.indexmundi.com/malaysia/economy_profile.html accessed 25/10/2014 Malaysia Airlines (2014) IMPACT OF MH370 TRAGEDY DENTS MALAYSIA AIRLINES Q2 2014 RESULTS http://www.malaysiaairlines.com/my/en/corporate-info/press-room/latest/mas_q2_2014_result.html accessed 5/11/2014 Malaysian Palm Oil Council (2014) Malaysian Palm Oil Industry. http://www.mpoc.org.my/Malaysian_Palm_Oil_Industry.aspx accessed 5/11/2014 Ministry of International Trade and Industry, ‘MITI’ (1996) â€Å"Second Industrial Master Plan, 1996–2005 — Executive Summary†, MITI, Malaysia, pp. 10–13. Ministry of International Trade and industry, ‘MITI’ (2005), â€Å"The Third Industrial Master Plan (IMP3)† http://www.miti.gov.my/miti-imp3.html accessed 25/10/2014 Yusoff, M.B., Hasan, F.A., Jalil, S.A., (2000) Globalisation, Economic Policy, and Equity: The Case of Malaysia, pp. 6-15 http://www.oecd.org/countries/malaysia/2682426.pdf accessed 20/10/2014 Muhammad, Mohd Zulkifli, Char, Abdul Kamal , Yasoa, Mohd Rushdan bin and Hassan Zakiah, 2010. Small and Medium Enterprises (SMEs) Competing in the Global Business Environment: A Case of Malaysia. International Business Research, Vol.3, No1, pp. 66-72 Saleh, A.S. and Ndubisi, N.O. (2006) SME development in Malaysia: domestic and global challenges, pp. 12-25 Samad, N. A. (2007) Positioning Malaysian SMEs in the global. Proceedings of Persidangan Kebangsaan IKS 2007,Kota Kinabalu: Universiti Utara Malaysia. Second Malaysia Plan 1971-1975 (Kuala Lumpur: Government Press, 1971), p. 1. 2 SME Corp Malaysia (2014) About SME Corporation Malaysia. http://www.smecorp.gov.my/vn2/node/40 accesssed 27/10/2014 Teoh, W. M. Y. Chong, S. C. (2008) Improving Women Entrepreneurs in Small and Medium Enterprises in Malaysia: Policy Recommendations. Communication of the IBIMA, 2, pp. 31-38. The Star (2014), Malaysia’s services sector to contribute more to economy. http://www.thestar.com.my/Business/Business-News/2014/08/18/Malaysias-services-sector-to-contribute-more-to-economy/?style=biz – accessed 25/10/2014 Ritchie, B. Brindley, C. (2000). Disintermediation, disintegration and risk in the SME global supply chain. Management Decision, 38(8), 575-583. Wafa, S. A., Noordin, R. Kim-Man, M. (2005). Strategy and performance of small and medium-size enterprises in Malaysia. Proceedings of the International Conference in Economics and Finance (ICEF), Labuan: Universiti Malaysia Sabah. Wang, S. D. (2003). The implications of e-financing: implications for SMEs. Bulletin on Asia-Pacific Perspective 2003/2004. New York: United Nations. Chart 1: GDP and Annual Percentage Change

HMS Bounty Essay -- essays research papers

HMS Bounty The HMS Bounty set sail in 1789. Captain William Bligh and his many crewmembers ran the ship. There was an upset between the crew and the Captain. Even though the men violated the â€Å"Articles of War† it was justifiable that they should not be punished.  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  The Crew of Captain Bligh, under penalty of law and the Captain, had no right to commit mutiny and remove the Captain from the ship. The â€Å"Articles of War† clearly state that if any crewmember conceals any traitorous practice or design shall suffer death or any other punishment as a court martial shall think fit. That is exactly what Captain Bligh’s crew took upon themselves. The crew had no reason to blame him for the rations of water because he was doing it to keep the breadfruit alive which was the whole reason for the mission. Indubitably the crews actions were unlawful. The Captain of the HMS Bounty was William Bligh. He was very strict in his actions and in his punishment. He followed the â€Å"Articles of War† like the Pope of the Roman Catholic Church followed the Bible. When they were in port the Captain was very courteous and polite to everyone on the ship. He treated everyone equally and didn’t abuse his rank. That soon changed as the ship set out for the open seas and Tahiti.  Ã‚  Ã‚  Ã‚  Ã‚   The crew started to challenge the Captain and he punished each person that defied him. Many of his actions were unjustifiable and should in turn be pu...

Analysis of Dickens’ Description of Fog In London in Great Expectations Essay

Dickens uses repetition of the word â€Å"fog† throughout this passage. The use of the repetition helps reinforces and emphasises how foggy it is, constantly reminding the reader of the peculiar weather. It also conveys the idea that it isn’t just a normal foggy day but a day with fog so peculiar and heavy that you have to repeat it several times to portray the idea of a heavy, unusual fogbound city. It is constantly repeated to remind us of how thick and strange it is. Usually fog isn’t particularly interesting to be repeated so many times.H e emphasise and focus is put on the fog to try and express and give an impression of an unusual and intense foggy atmosphere to the reader. Dickens also uses various prepositions in this passage.For example he uses prepositions in this quotes : â€Å"Fog up the river† ; † fog down the river† ; † fog on the Essex marshes†; â€Å"fog in the stem and bowl† ; â€Å"fog wheezing by†. The uses of these various prepositions help emphasise and convey the fact that fog is indeed everywhere (â€Å"fog everywhere†). In and out, up and down,quite literally everywhere which makes the reader vividly picture all London covered in heavy thick fog. Another way Dickens uses language to convey the idea of a fog bound London is through the technique personification. â€Å"Fog creeping in†, â€Å"fog cruelly pinching toes and fingers†, â€Å"fog wheezing by†. The use of personification brings the fog to life. The adverb â€Å"creepily† conveys an idea of the fog being a mysterious, sinister but yet eerily quiet being. â€Å"Cruelly pinching toes†, by using this personification it links to the idea that the fog is a sinister, sly being. The adjective â€Å"cruelly†, portrays the fog as a brutal, wicked person, it shows no remorse even though he if pinching † of a shivering little ‘prentice boy†. It shows the reader the force and greatness of the fog (even though it is serene and quiet as implied by the word â€Å"creeping†) which connects to the intensity and strength of the fog as mentioned before- creating an impression of a fog bound city. This contrasts against our normal impression of fog as a misty, subtle delicate weather but transforms this idea into a great menacing bully in the form of a mysterious fog. the phrase † wheezing by could make the fog seem like acranky old man, creeping in and out preying on young children. pinching, creeping,cruelly all have negative connotations portraying the fog as an evil dark being.

Money Economy Example For Free - Free Essay Example

Sample details Pages: 5 Words: 1405 Downloads: 10 Date added: 2017/06/26 Category Economics Essay Type Argumentative essay Tags: Economy Essay Money Essay Did you like this example? Persistence problems in the U.S. deal with the sluggish employment growth, the slowdown of household consumption, and the limitations in furthering the fiscal policy. Also, a combination of excessive liquidity, low interest rates, high leverage, poor risk management, excessive risk-taking had possibly let too many assets, emerging market debt prices. Even though the US is the richest country it does (like any other country) have issues that hurt our economic performance. Monetary policy plays a key role for the development of our economys rate of inflation which is the Central Banks responsibility. The Fed has 3 primary functions which are to regulate the banking industry, act as Bankers Bank, and most important conducts monetary policy which the FOMC controls money supply. If the central bank fails to do so inflation can cause a plethora of problems. In todays economy, targeting the levels of real variables and trying to pursue detection of where the unemploym ent rate will settle may take away from lowering inflation. GDP and the unemployment rate fluctuate throughout each year that it could raise or fall immediately and inflation could creep up even when demand is settle. William Poole shares his example; he states, â€Å"Weve seen substantial wage increases in the airline industry; if airlines are to be profitable over time they will have to recover those costs through some combination of productivity gains and price increases, even though travel demand is not currently strong.† The higher wages in the airlines industry are directly related to inflation rising. Wages and salaries usually keep up with inflation. For instance, 2% inflation means wages will increase by 2%. In 2001, the Fed Fund rates increase 11 times to a rate of 1.75%. The following year the economy recovered but the faltering in the US recovery in the fall of 2002 and the risk of a double dip recession led the fed to reduce the Fed Funds to as low as 1%. A jo bless recovery had then emerged during and continued after the war with Iraq. Inflation started to increase with growth of output and the jobs that had picked up. Will the Fed Funds rate and will that cut prevent a hard landing? Another U.S. economy vulnerability is people are saving-less and debt is a stand out. The high levels of household indebtedness (mortgages, consumer credit, etc.) with debt service costs now rising because of a credit crunch. There are a number of negative shocks such as: falling home prices, and falling home equity withdraw. Housing recession and its first fall in home process has been since the 1930s. The housing recession to worsening rather than bottoming out. The US and global recessions are associated with oil prices rising. After the Iraq war oil prices remained the same in 2004-05 because of high demand from the US and China. The issues in 2004-05 with oil prices and energy led to concerns about stagflation (low growth plus inflation). Each bar rel of oil was about $70.00 and either stayed the same or increased for several months. The reason why the oil shock didnt lead to an economic slowdown was the high demand rather than stagflation supply shocks. Will the recent high oil prices carry over to a global slowdown in 07-08? Many times today we look at the American economy and we do an internal SWOT analysis, one of the things I have learned is the U.S. economy is not the only successful economy. There are many other nations that have thriving economies that are showing tremendous growth. Africa is one the up and coming economies these days after many years of stagnation Africa has showed potential for growth since 2001 there has been around 4.9% growth annually in domestic profit. You may ask yourself about uncertainty despite the optimism you may feel about investing in the African economy you have to notice that it is experiencing the highest growth since the 1970s.The basic economic question has to be brought to the forefront consumers are getting more involved with the everyday structure of business and when and why they do well. We have to answer the question of why there is a large economic difference between south and North Korea, East and West Germany, Mainland China and Hong Kong, these are situations that we have to explain and without the theories and studies the would be no clarity. These countries have to allow the government to interfere and even things out with the intentions of growth for the whole nation and not just tourist destinations, and prime factory areas. This class has taught me that equilibrium is basically left up to the consumer and the person offering the service they have to come to an agreement on the amount of service rendered and an accepted medium of exchange that is best for both parties. Entrepreneurship is a staple of American business it allows business owners to be open to innovation and not be afraid to have some uniqueness to the products or services of fered. Asia is one of the most thriving economies but what we fail to see that since 1998 the have been in a severe recession, they also have instituted an IMF bailout plan was brought forward to help the situation. The thing is that the IMF plan has done more bad than good because of the employment conditions have gone down causing the economy participation rate to go down also. North Korea has many opportunities for growth they have an abundance of coal, and other minerals and metals. North Korea has been a very good example for other nations alike. Korea has done many things to equip themselves for the future the companies they develop are made to last, and continue success for many years to come. The U.S. has set the tone copying the central bank. What the Fed can do, at least to some extent, is prevent problems in specific sectors from becoming general problems. That is exactly how to view monetary policy this year. Tech investment is down, but housing investment and c onsumption have been maintained pretty well. Declining interest rates have certainly assisted in supporting aggregate demand. This is the whole story behind the U.S. economy and it has been very successful in doing this, but there are so many other things that have influenced the success experienced by the U.S. economy. China is another one of the strong economies of today China uses a strategy that calls for stability as the main objective, and today the communist party is putting economic stability in the forefront which also allows for great results when a company thinks of the long run instead of quarterly they have a tendency to perform better. Now we have to continue to remember that no matter what your plan is the goal has to be that supply will have to meet demand. I was looking at monetary policy for the U.S. and I read that investors fear turmoil in the credit sector, this means that all the financial institutions will all take a cut because of the failure of the bor rowers to repay loans given by the credit agencies. In whole one of the things I have learned is that many nations are just like a business they need accountants and economist to come in and monitor operations as far as spending, loans, and balancing all accounts .Its the failure of the nation in a whole that have caused this its nothing we can say specifically was caused by any one group of people it is a hard fought battle for the Fed and the government to get this deficit balanced. In conclusion, along with all the advantages of having one the best economies comes with disadvantages as well. The recent high oil prices for the US will lead to a global slowdown and were still trillions of dollars in debt with the number still growing. The actions the US economy takes effects not only America but other countries as well such as: foreign market, real variables, nominal variables, fiscal policy, and household consumption. Everyone knows that the U.S. is the strongest economy but as of lately other countries economies are rising. For instance countries like Africa, China, and Germanys domestic profit growth continues to rise with time. More countries are coming to see that capitalism might just be the road to riches, and a route that the U.S. has been traveling for a number of decades. Don’t waste time! Our writers will create an original "Money Economy Example For Free" essay for you Create order