Concepts
Free Trade Zones
What is a free trade zone?
Free trade zones, describe an arrangement where different trading entities, usually member countries, agree to cut or scrap taxes in order to lower business costs and remove bureaucracy. They are also known as “special economic zones” and are mostly found in developing economies. The aim is to give a massive [...]
UK economy continues to shrink
Britain’s economy shrank more than twice as fast as analysts had expected in the second quarter of this year, according to the latest figures from the Office for National Statistics.
The fall between April and June means a speedy recovery from the recession looks much more unlikely.
What is a Stock Exchange?
Stock exchange is a market where shares of public limited companies are bought and sold. Shares are at first issued by a Public Limited company through a ‘public offer’. Potential investors read the ‘Prospectus’ of the company which contains vital information about the nature of company, its directors, risk involved in investment and so [...]
What is a Recession?
Merry Christmas and a happy and prosperous new year.
But this New Year may not bring good news as many economies plunges into a recession. Unemployment rates is increasing and GDP growth rate is falling. Everyone is talking about ECONOMY and FINANCIAL CRISIS. For IGCSE and GCSE students this ‘RECESSION’ might be a new term altogether. [...]
US interest rates slashed to 1%
The Federal Reserve has cut its key interest rate from 1.5% to 1% in a widely expected move, as it aims to avoid a possible US recession.
The question arises
Why do Central Bank cuts interest rates?
What is the impact of interest rate cuts?
Interest rates are reduced in order to increase the aggregate demand in the [...]