The geographical dispersion of the people has resulted in to a great difficulty for the government to approach those individuals and ensure that they are being provided with the basic facilities. This enhances the importance of advance technology to reach the people that are dwelling in the western china and the ones that are geographically dispersed and divided on the basis of ethnicity (Zhao, 1997)
The rural population of china form about 80% of the total population and about 7% of this population cannot become the part of the productive workforce due to the fact that they are not trained appropriately to mange work with their disability. At this point of time the sardonic act of the Chinese government that is worth mentioning is that, China has been investing and lending funds across the globe to device gadgets that can facilitate the working and ease the life of physically disable people, Pakistan is one of the centers of china's such investments (Zhu, 2004)
The general theory is that "in the absence of evidence to the contrary, […] the business will continue to trade in the normal way into the foreseeable future. This enables the account to assume that stock will eventually be sold, that fixed assets will continue to be used, and so on" (Alexander and Britton, 2004)
A difference is however available at this point, and it materializes in that despite their offer to retail and corporate consumers and their competition against domestic banks, international institutions generally offer a wider and different palette of financial products and services that domestic banks do. The basic product and service offering of international banks includes: "money transmission and cash management, credit facilities (loans, overdrafts, standby lines of credit and other facilities), syndicated loans, debt finance via bond issuance, other debt financing including asset-backed financing, domestic and international equity, securities underwriting ands fund management services, risk management and information management services, and foreign exchange transactions and trade finance" (Casu, Girardone and Molyneux, 2006)
"There is no single interest rate for any economy; rather, there is an independent structure of interest rates. The interest rate that a borrower has to pay depends on a myriad of factors" (Fabozzi and Mann, 2005)
In this order of ideas, domestic banking "provides a broad range of financial products and services to retail, small business, commercial and wealth management customers across" the respective country (Website of the Scotiabank). International banking on the other hand, is defined as the "cross-border and cross-currency facets of banking business" (Lewis and Davis, 1987)
Upon entering the Forex market, the investor has to meet several criteria, such as a minimum of capital. The criteria are set and implemented by the SEC (Securities and Exchange Commission) and they make the market superior to the stock market (Miliaresis, 2005)
"According to the model interventions (purchases of foreign currency) will be negatively correlated with interest rate deviations from the steady state level but positively correlated with interest rate deviations pertaining to non-stabilizing motives or a binding zero lower bound. The model also predicts that interventions will be decreasing in inflation expectations and in the real exchange rate but increasing the expected interventions" (Post, 2006)
The following guidelines have to be analyzed when central banks set the base interest rate: the main objective is to achieve a more effective regulation of the banking system liquidity the actual calculi of the base interest rate is to be achieved through an analysis of monetary developments (projected and recorded), inflation movements and expectations, as well as the expected and previous movements in the national currency all operations on the money market will be influenced by the established base interest rate (National Bank of Serbia) The central bank will sometimes set a maximum rate on the interest rate and this is generally due to a political agenda. It revolves around the desire to "channel cheap funds to favoured enterprises or individuals (and to government itself), using administrative discretion over the rationing of funds made necessary by demand exceeding supply at the capped interest rate" (Shipman, 2002)
It also tends to affect the price of financial assets, such as bonds and shares, and the exchange rate, which affect consumer and business demand in a variety of ways. Lowering or raising interest rates affects spending in the economy" (Website of the Bank of England)
exists. In our contemporary market economic system, the government has assumed the responsibility to take corrective actions in order to protect citizens from the adverse effects of such spillovers" (Litchka, 2007)
. The primary, most pressing problem of the human race - not only of the human race but of the whole biological kingdom from the beginnings of life" (Keynes, 4)
These weaker individuals are "…always under the dominion of the superstition of government, and, forgetting that a government produces nothing at all, they leave out of sight the first fact to be remembered in all social discussion - that the State cannot get a cent for any man without taking it from some other man, and this latter must be a man who has produced and saved it. This latter is the Forgotten Man" (Sumner)
" Smith argued that surplus stems from the process of production, and supported the notion that both "agriculture and industry create wealth." (Brumback, 2003)
Menger's theories concentrated primarily on economic values to satisfy an individuals desires for satisfying of basic needs including food, shelter, wealth and production (Younkins, 2004). Carl Menger is sometimes referred to as a leader of the "Marginalist Revolution"; he believed in a marginalist value theory, "using the concept of subjective value to underpin all of economics" (Foncesca, 2003)
Jean Baptiste Say Say- Jean Baptiste Say believed that value resulted from the interaction between the utility theory of demand and the cost theory of supply, which can be attributed to Smith's school of thought (Foncesca, 2003). Say's ideas might be summed up as Say's Law of Markets, which state that "supply creates its own demand" which implies that temporary overproductions will adjust themselves as sellers work harder to decrease the surplus output resulting from overproductions; thus supply is creating demand for a product (Hart, 1004)
Each of these schools of thought is explored in greater detail below. Marx claimed that value is a physical and social substance or "social labor" (Kim, 1998)
Menger Menger began what is often referred to as the "modern period" of economic thought. Menger is considered realist, who stated that "we could know what the world is like through both common sense and scientific method" (Younkins, 2004)
So, the general question is, why do high budget deficits matter? In order to understand this, we need to understand the concepts of economic growth and decline. What is economic growth: "Economic growth occurs primarily with the increase in value of goods and services produced by an economy" (Case et