International Business Concepts
International Business Concepts
1st Concept: Sovereign Wealth Funds
Sovereign Wealth Funds are investment funds controlled by governments holding great amount of stakes in foreign businesses aiming to gain profits and stimulate its national economy. Charles Ortel, reporting for Washington Times, expresses our urgency as a nation to create an American Sovereign Wealth Fund. If our government soon capitalizes $1 trillion, America can succeed in reaching and over passing other countries that currently have a head start with their SWFs. But that is merely leverage. The leading reason as to why we absolutely need a SWF is to recover from our national debt. Ever since the survival of the 1945 World War, our debt is no longer $345 billion. Instead, it has heightened to a depressing amount of $17 plus trillion. The ratios of our total debt to private sector incomes are distant values, causing a substantial deficit. The debt we have accumulated to this day is almost unfathomable. But if there is a will, there is a way out. If America were willing to have a politically independent Sovereign Wealth Fund, it would act as an economic stimulus. Our financial dilemma would be revived soon enough. But the SWF must be dealt with phenomenal management in order to gain substantial returns. Also, to evade interrupting America’s market prices, it would be wise to only invest internationally. Once America’s SWF is established, the capital investment of $1 trillion will achieve immense profits, in turn accumulating wealth to subside our national debt. Therefore, relieving our country from financial stress, rejuvenating America’s credit rating, and rehabilitating our economy. An American Sovereign Wealth Fund will create a brighter and prosperous future.
2nd Concept: North American Free Trade Agreement (NAFTA)
North American Free Trade Agreement created a free-trade area among the United States, Canada, and Mexico. The three countries agreed to expand the flow of goods,
1st Concept: Sovereign Wealth Funds
Sovereign Wealth Funds are investment funds controlled by governments holding great amount of stakes in foreign businesses aiming to gain profits and stimulate its national economy. Charles Ortel, reporting for Washington Times, expresses our urgency as a nation to create an American Sovereign Wealth Fund. If our government soon capitalizes $1 trillion, America can succeed in reaching and over passing other countries that currently have a head start with their SWFs. But that is merely leverage. The leading reason as to why we absolutely need a SWF is to recover from our national debt. Ever since the survival of the 1945 World War, our debt is no longer $345 billion. Instead, it has heightened to a depressing amount of $17 plus trillion. The ratios of our total debt to private sector incomes are distant values, causing a substantial deficit. The debt we have accumulated to this day is almost unfathomable. But if there is a will, there is a way out. If America were willing to have a politically independent Sovereign Wealth Fund, it would act as an economic stimulus. Our financial dilemma would be revived soon enough. But the SWF must be dealt with phenomenal management in order to gain substantial returns. Also, to evade interrupting America’s market prices, it would be wise to only invest internationally. Once America’s SWF is established, the capital investment of $1 trillion will achieve immense profits, in turn accumulating wealth to subside our national debt. Therefore, relieving our country from financial stress, rejuvenating America’s credit rating, and rehabilitating our economy. An American Sovereign Wealth Fund will create a brighter and prosperous future.
2nd Concept: North American Free Trade Agreement (NAFTA)
North American Free Trade Agreement created a free-trade area among the United States, Canada, and Mexico. The three countries agreed to expand the flow of goods,
Cited: Bowman, Robert. "A Growing Hostility To Free Trade Has Put NAFTA On Life Support." Forbes. 2 July 2014. Web. 6 Sept. 2014. . McHugh, Williams, Susan McHugh, and William Nickels. "Doing Business in Global Markets." Understanding Business. 10th ed. New York: McGraw-Hill/Irwin, 2013. 71, 79. Print. Ortel, Charles. "Create An American Sovereign Wealth Fund." Washington Times. 21 Aug. 2014. Web. 6 Sept. 2014. http://www.washingtontimes.com/news/2014/aug/21/ortel-create-american-sovereign-wealth-fund/?page=all> .