The U.S. Economy of Euro Falls Research Paper Example | Topics and Well Written Essays - 1000 words

The U.S. Economy of Euro Falls - Research Paper Example The conclusion Teulon (2011) garnered was also accordance with that of Calomiris (1999): that the probability of the fall of euro is high. For Teulon (2011), the question is no longer whether the euro will survive, but rather on how long the euro will last. With the threat of the impending fall of the euro, one of the important questions that this leads to is its effect to the dollar. In the event the euro will fall, will this affect the economy of United States? This inquiry aims to give some answer to this question. International trade in this globalized world is highly efficient. It is through engaging in the global commerce that a local economy is affected by the economic performance of its trading partners. The exchange rate of the local to the international currency is important since this determines the prices of goods and services from abroad in terms of the local currency. Hence the exchange rate of euro to the dollar plays a significant role in the trade that occurs between them. The countries included in the European Monetary Union are also the trading partners of the United States. The members of the E.M.U. are the following: Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, and Spain. Table A (found in the Appendix) shows the trade in goods of the United States with each country of the E.M.U in 2011. The country imports more goods from the euro area by 87,860 millions of dollars than it exports there. This data might show that somehow, the U.S. depends a little on the products of the euro area for its consumption. As a source of income however, the country doesn’t depend there too much since it buys more from them than what it was able to sell to them. Nevertheless, this data only shows the trade of the U.S. with the euro area. Let us consider another set of data so a more meaningful analysis can be done. Table 1. U.S. Gross Domestic Product for 2011* Com ponent of G.D.P. $ Billions % of G.D.P. Consumption 10,726.4 0.71 Investment 1,914.6 0.13 Net Exports -576.9 -0.04 Government Expenditures 3,030.2 0.20 G.D.P. 15,094.4 100 Table 2. The Net Exports of the United States for 2011* $ Billions % of G.D.P. Exports 2,087.5 0.13 Goods 1,474.4 0.09 Services 613.2 0.04 Imports 2,664.4 0.18 Goods 2,238.0 0.14 Services 426.4 0.03 Net Exports -576.9 -0.04 *Source: Bureau of Economic Analysis. 2012. Gross Domestic Product and Related Measures: Level and Change From Preceding Period. GROSS DOMESTIC PRODUCT: FOURTH QUARTER AND ANNUAL 2011 (SECOND ESTIMATE). Retrieved from http://www.bea.gov/newsreleases/national/gdp/2012/pdf/gdp4q11_2nd.pdf Table 1 shows important information about the economy of the United States. First, the country is not dependent on international trade for its income or output. The net export is -.04 percent of G.P.D. The country spends more rather than gaining more from it. Since the data used for the trade between the U.S. an d E.M.U. countries has been on the net exports on goods only. From Table 2 we can infer that the net export on goods is equal to -763.6. The U.S. does not earn more dollars in trading with the E.M.U. countries. Instead, it is the euro area that gains more from its trade with U.S. amounting 87,860 millions of dollars in 2011. From these data we can see that in the event that euro falls, the economy of th

The Stiry about Misunderstanding Essay Example | Topics and Well Written Essays - 750 words

The Stiry about Misunderstanding - Essay Example I headed towards an empty table, under a window. The sun shone iridescently through the window pane onto the table. I sat directly under the sunlight. The sunrays felt exhilarating, yet calming and peaceful. It's a good thing my daily moisturizer had sunscreen. If not, I would have been bleached by now. I sat there content, with my overflowing tray of food, sunshine, and solace, in the much larger sea of the noisy cafeteria. I was about to eat. Suddenly, he appeared. I hadn't noticed him come in. That was unlike me. I always notice him. He stood in front of me, with a tray overflowing with food as well. My stomach instantly began to churn as if small currents of electricity bounced around the insides of my intestines. The sound of his voice resounded in my ear. It was a voice that I was very familiar with. It was the first thing I noticed about him a few weeks ago, in class. He was invisible to me until I heard him speak. There was nothing special about his appearance. His style was unappealing. However, it was his voice that had its own presence. One day, the teacher had asked him a question in front of the rest of the class. When he spoke, my soul could hear, and opened like a flower, that absorbed each one of his words, as if they were rays of nourishing sunlight feeding my existence. His voice had a greatness that didn't ask for permission. He spoke with a confident indifference of how he was perceived, as if he were certain of his purpose and aware of the strength of his presence. His voice spoke to a part of me that I was unaware of. His strength and defiance represented everything that I wanted to be. I couldn't stop noticing him afterwards. In the cafeteria, as he stood in front of me with the tray of food in his hand, he took off his book bag, put it in the chair next to me, and sat down in the chair directly across from my seat. I wanted to run and hide. My body didn't understand basic functions anymore. I felt paralyzed, awkward. I looked at my plate; it was now a blurry painting of different colors without any smell. Unable to pick up my fork, I looked across the room, and then at different tables, and finally out the window, anywhere except at him. I took a sip of juice. It tasted like acid. I felt as if my hand shook. I quickly put the glass back down. I couldn't believe he was sitting here. Did he know that I had been watching him Had he noticed me too Was he following me Was he making an excuse to sit with me I wanted to say something but couldn't. How much longer was he going to sit here I wished he would hurry up and finish. Yet, at the same time, I wanted him to stay, at my table, sitting directly across from me, stuffing sausage in his mouth. But, what did he really want Why did he sit here What was he thinking My stomach gurgled with the electric currents that now crouched and kicked like a Russian Folk Dancer. He hungrily stuffed his face with several more Italian sausages, two strips of bacon, some scrambled eggs, and drank some orange juice. Then he looked up at me."So, what do you think of the teacher" he said, in between mouthfuls of