Closed Economy Essay Example | Topics and Well Written Essays - 3000 words

Closed Economy - Essay Example The question here is that why it is not concerned with the threats of United States. Let us not answer this question now and move a little further before answering this question. Official Statistics show that North Korea had an average annual growth rate of around 1.6 percent for the period of 2002-2007 (Walters, pp. 55-57, 2008). However, it shocked the world when it posted a growth rate of more than 3.7 percent in the year 2008 (Library of Congress, pp. 15-19, 2009). Not only had this shock came because this growth is the highest for North Korea for at least the past two decades but also because many neighboring countries of North Korea and even many other countries had either showed negative growth rates for the year 2008 due to the global financial recession. The second question is that what magic lamp North Korea had to show this comparatively unusual and high growth rate during the period of global financial recession and why there was no effect of the recession on its growth. The answers to both these questions lie in the economic structure of North Korea. North Korea is the country, which is the nearest of being called as a closed economy or autarky. It is one of the five remaining socialist states of the world with an entire government planned, state-owned and commands economy where the government intervenes largely. Interestingly, North Korea is a completely nationalized state and the state owns all the assets of the country. Moreover, the citizens do not have to pay any taxes.

Free trade agreements' negative effects on U.S economic Assignment - 1

Free trade agreements' negative effects on U.S economic - Assignment Example This forms the need to write this report. NAFTA is an example of trading bloc in USA, which came into effect in January 1 1994. It is the largest trading bloc in the world and for this reason; we have used it as a basis of our argument. We have also used other trade deficits to back up our arguments. A free trade area is a form of integration in the countries represented. The countries enter to either a bilateral trade agreement or multilateral trade agreement. We shall define the meaning of the two different types of trade and give an example on each. USA has entered into a number of agreements with different countries for reasons such as: boosting trade, gaining a wider market for its finished and unfinished products among others. Trade barriers such as customs duty and tariffs have been removed facilitating free movement of goods and services in the countries (Davidson 1990). Agreements such as NAFTA agreement that was precendented by United States – Canada trade agreement has had both positive and negative effects in the growth of economy of the country. In the next pages we shall look both at the positive impacts of trade agreements made by USA and dwell more on the negative impacts of the trade. We shall use the NAFTA agreement as the basis of our arguments and othe r trade deficits to backup these arguments. Also illustrations will be used to show the situation in the ground. Business free trade agreements are treaties made between two people or countries to remove barriers of trade between them. These barriers may include tariffs and taxes. These free trade agreements between countries also allow people to move freely with minimum or no restrictions in member countries. The business free trade agreements help in liberalization of international movement of goods and services across countries. Countries that have business free trade agreements sign a