For many years, we have all heard talk of “globalization.” But what does it really mean? In the simplest of terms it refers to an ongoing process whereby individual countries, large and small, have become increasingly interdependent—what goes on in one country will often have effects, positive and negative, on other countries. In general, a combination of economic, historical, technological, socio-cultural, and political forces have worked over time to bring about increased interconnection. For example, the reach of cable news is worldwide, meaning a development in one region can immediately generate interest and reaction on the other side of the world.
This report focuses on the economic aspects of globalization to show how the deepening recession in the Unites States is having an impact on the rest of the world and how that, in turn, is influencing policies and the process of economic recovery worldwide.
While a discussion of international trade and finance can be complicated, the following examples illustrate the simple concept of trade linkages. The first example is international trade giant Toyota, the world’s largest automobile producer, headquartered in Tokyo, Japan. Toyota’s U.S. sales typically account for about one-third of the company’s total sales. The current recession caused Toyota’s sales in the United States to fall by a whopping 37 percent in December 2008 and by 32 percent in January 2009. This, not surprisingly, led to cutbacks in production, and, consequently, Toyota has announced a reduction in employment—in the form of plant shutdowns and workers laid off.
Download: PDF Ebook The U.S. Financial Crisis: Global Repercussions
http://www.acrobatplanet.com/non-fictions-ebook/pdf-ebook-us-financial-crisis-global-repercussions.html
This report focuses on the economic aspects of globalization to show how the deepening recession in the Unites States is having an impact on the rest of the world and how that, in turn, is influencing policies and the process of economic recovery worldwide.
While a discussion of international trade and finance can be complicated, the following examples illustrate the simple concept of trade linkages. The first example is international trade giant Toyota, the world’s largest automobile producer, headquartered in Tokyo, Japan. Toyota’s U.S. sales typically account for about one-third of the company’s total sales. The current recession caused Toyota’s sales in the United States to fall by a whopping 37 percent in December 2008 and by 32 percent in January 2009. This, not surprisingly, led to cutbacks in production, and, consequently, Toyota has announced a reduction in employment—in the form of plant shutdowns and workers laid off.
Download: PDF Ebook The U.S. Financial Crisis: Global Repercussions
http://www.acrobatplanet.com/non-fictions-ebook/pdf-ebook-us-financial-crisis-global-repercussions.html
6/6 2009 20:01 CHjort 0
13071 How is the Federal Reserve Set Up?
The Federal Reserve (the Fed) was established nearly 100 years ago by the Federal Reserve Act of 1913. And while knowing the date the Federal Reserve was established isn't crucial to your investing success, understanding how the Fed works will help you understand what is happening in the financial markets and who the players are. Let's take a look inside the Federal Reserve and learn more about the following:
- The Board of Governors
- The Federal Reserve Banks
- The Federal Open Market Committee (FOMC)
The Board of Governors
The Board of Governors of the Federal Reserve is a seven-member group that is ultimately responsible for overseeing everything that happens within the Fed. Each of these seven governors is appointed by the President of the United States and must be confirmed by the U.S. Senate. Each member of the board serves a 14-year term. The current members of the Board of Governors are as follows:
- Ben Bernanke
- Donald Kohn
- Kevin Warsh
- Randall Kroszner
- Elizabeth A. Duke
Now, you will notice that I have only listed five people here. At this time, the President and the Senate have not filled all of the seats on the board.
One of the members of the Board of Governors—currently Ben Bernanke—serves as the chairman of the Fed.
Federal Reserve Banks
The Federal Reserve System divides the United States into 12 districts, and each district is overseen by a Federal Reserve Bank. Each Federal Reserve Bank is responsible for overseeing the member banks within its district, monitoring the economic conditions in its district and providing information to the Board of Governors and the Federal Open Market Committee (FOMC). The following is a list of the 12 Federal Reserve Banks.
- District 1: Federal Rerserve Bank of Boston
- District 2: Federal Rerserve Bank of New York
- District 3: Federal Rerserve Bank of Philadelphia
- District 4: Federal Rerserve Bank of Cleveland
- District 5: Federal Rerserve Bank of Richmond
- District 6: Federal Rerserve Bank of Atlanta
- District 7: Federal Rerserve Bank of Chicago
- District 8: Federal Rerserve Bank of St. Louis
- District 9: Federal Rerserve Bank of Minneapolis
- District 10: Federal Rerserve Bank of Kansas City
- District 11: Federal Rerserve Bank of Dallas
- District 12: Federal Rerserve Bank of San Francisco
The Federal Open Market Committee (FOMC)
The Federal Open Market Committee (FOMC) is the entity that determines what the federal funds rate should be and oversees the implementation of its interest-rate policies in the Fed's open market operations. The FOMC consists of the seven members of the Board of Governors, the President of the Federal Reserve Bank of New York and a rotating group of four presidents from other Federal Reserve Banks. The President of the Federal Reserve Bank of New York is a permanent member of the FOMC because the Open Market Operations (OMO) trading desk is located at the Federal Reserve Bank of New York. The FOMC meets eight times per year to discuss the Fed's monetary policy.
The Federal Reserve (the Fed) was established nearly 100 years ago by the Federal Reserve Act of 1913. And while knowing the date the Federal Reserve was established isn't crucial to your investing success, understanding how the Fed works will help you understand what is happening in the financial markets and who the players are. Let's take a look inside the Federal Reserve and learn more about the following:
- The Board of Governors
- The Federal Reserve Banks
- The Federal Open Market Committee (FOMC)
The Board of Governors
The Board of Governors of the Federal Reserve is a seven-member group that is ultimately responsible for overseeing everything that happens within the Fed. Each of these seven governors is appointed by the President of the United States and must be confirmed by the U.S. Senate. Each member of the board serves a 14-year term. The current members of the Board of Governors are as follows:
- Ben Bernanke
- Donald Kohn
- Kevin Warsh
- Randall Kroszner
- Elizabeth A. Duke
Now, you will notice that I have only listed five people here. At this time, the President and the Senate have not filled all of the seats on the board.
One of the members of the Board of Governors—currently Ben Bernanke—serves as the chairman of the Fed.
Federal Reserve Banks
The Federal Reserve System divides the United States into 12 districts, and each district is overseen by a Federal Reserve Bank. Each Federal Reserve Bank is responsible for overseeing the member banks within its district, monitoring the economic conditions in its district and providing information to the Board of Governors and the Federal Open Market Committee (FOMC). The following is a list of the 12 Federal Reserve Banks.
- District 1: Federal Rerserve Bank of Boston
- District 2: Federal Rerserve Bank of New York
- District 3: Federal Rerserve Bank of Philadelphia
- District 4: Federal Rerserve Bank of Cleveland
- District 5: Federal Rerserve Bank of Richmond
- District 6: Federal Rerserve Bank of Atlanta
- District 7: Federal Rerserve Bank of Chicago
- District 8: Federal Rerserve Bank of St. Louis
- District 9: Federal Rerserve Bank of Minneapolis
- District 10: Federal Rerserve Bank of Kansas City
- District 11: Federal Rerserve Bank of Dallas
- District 12: Federal Rerserve Bank of San Francisco
The Federal Open Market Committee (FOMC)
The Federal Open Market Committee (FOMC) is the entity that determines what the federal funds rate should be and oversees the implementation of its interest-rate policies in the Fed's open market operations. The FOMC consists of the seven members of the Board of Governors, the President of the Federal Reserve Bank of New York and a rotating group of four presidents from other Federal Reserve Banks. The President of the Federal Reserve Bank of New York is a permanent member of the FOMC because the Open Market Operations (OMO) trading desk is located at the Federal Reserve Bank of New York. The FOMC meets eight times per year to discuss the Fed's monetary policy.
