The 2012 Global Financial Crisis - 2365 Words

Introduction The 2008 Global Financial Crisis (GFC) was the worst crisis in history, and has wide range and deep effects on the world financial system and relations (Peihani 2012). The vulnerability of the world financial system was exposed from the 2008 GFC (Mohamed 2011). Hence, countries are trying to find a solution for the heavily market-relied global financial system, and protectionism has drawn the attention from a great portion of countries and researchers (Viju and Kerr 2011). Mohanmed (2011) defines protectionism as to support domestic production development, and protect it from global competitions, normally through the methods of Quota and Tariff. This paper is going to expand the findings of my previous briefing paper about the†¦show more content†¦The Congress started to increase the rate of tariff ever since, and reached its peak in 1828 of the rate of nearly 49%. Moreover, after experiencing few ups and downs from 1832 to 1842, the Congress started to decrease the rate of tariff from 1846 to 1857, to the average rate of 20%. The raise of tariff was mean to protect the local production of goods manufactured from wool, iron, hemp, lead, and glass; however, the tariff didn’t achieve its goal of promote domestic infant industries (Bruce 1998). Although the tariffs haven’t treated the American well, however the Republicans was insists on embrace protectionism. Moreover, America citizens were also opposed free trade due to the fact that protectionism could restrict imports and lower the unemployment rate (Bruce 2011). Benjamin Harrison defeated Grover Cleveland in the election of 1888, and passed the McKinley tariff in 1890 (Bruce 1998). The protectionists were arguing that not only infant industries need protections, but also mature industries. Furthermore, due to the fact that tariff was the principal source of revenue for the federal government (Bruce 1998), the Congress often avoid to use tariff for protectionist purpose, which might reduce the number of import and less the revenues (Bruce 2011). The situation has turned around since President William Howard created federal income tax (Bruce 1998), and it has soon replaced the tariff to became the principle revenue of U.S.Show MoreRelatedThe Problem Of Global Fina ncial Crisis1122 Words   |  5 Pagesreceivables and other financial assets are pooled together, with their cash flows or economic values redirected support payments on related securities.† â€Å"Securitization first emerged in the 1970s with the sale of securities backed by residential mortIn the 21st century, economic problems have incurred an increasing number of people s attention as the economic develop rapidly, and these problems are usually caused by human themselves. For instance, the occurrence of Global Financial Crisis (GFC) in 2007Read MoreBanking Sectors and Financial Crisis in the UAE and GCC Countries890 Words   |  4 Pagesï » ¿Banking Sectors Financial Crisis in the UAE GCC Countries Chapter Two Table of Contents I. UAE GCC Countries Economy Overview Overview of the Banking Sector. Islamic and conventional Banking principles. The structure of Islamic Banking in UAE GCC Countries Islamic Banks operating in the UAE GCC Countries Central Bank Federal Law II. The financial crisis in the UAE GCC Countries. Causes of the financial crisis. Effects of the financial crisis. Banking Sector beforeRead More2007-2008 Financial Crisis1327 Words   |  6 PagesThe Global Financial Crisis of 2007-2008 The Global Financial Crisis 2007-2008 Economists and scholars spend years dissecting financial markets and evaluating the causes of booms and busts. 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Investments banks play a very important role in stimulating investments in the United States both from individuals and corporate. The global financial environment has over the last decade experienced enough changes as can be witnessed from the key economic indicators. These changes have significantly impacted various stakeholders such as financial markets, money markets, capital markets and the general micro and macro economics players. Countries have been hit by recession and economic meltdownsRead MoreThe Financial Meltdown Crisis : Luis A. Santiago Gaetan1387 Words   |  6 PagesThe Financial Meltdown Crisis Luis A. Santiago-Gaetan University of Massachusetts-Amherst Introduction In March 2008, the government of the United States was abruptly confronted with the first signals of what later became the greatest financial crisis in U. S. history since the Great Depression. The beginnings of the financial crisis began with the government intervention or bailout of Bear Sterns, the smallest of the five giant Wall Street investment banks, but the first one known to be in financialRead MoreIntroduction Of The Bank Of England986 Words   |  4 Pagesfascinating for one to track on how the global financial integration has been evolving for the past century. Understanding the evolution of output is possible by looking at the measured stocks of the external assets and liabilities; together with the cumulative consequences of the past cross-border capital flows. Global integration of trade and finance started prior to the World War I, at the time when the capital liberalization was last at their peak. Both global integration of trade and finance fellRead MoreThe World Economic Crisis Of 20081701 Words   |  7 Pageseconomic crisis of 2008 was the worst global crisis after the great recession of 1929-30. The most affected economies from the crisis are western European countries. The economic crisis sub sequentially lowers the growth rate of the economies. A large number of American companies incurred heavy losses and it declines in the gross domestic product widely known as GDP of the country. China plays a significant role during the economic crises (Lardy Subramanian, 2012). China was full of financial fundsRead MoreGlobal Financial Crisis : Its Causes And The Global Responses Essay1592 Words   |  7 PagesAssignment topic: Global financial crisis: its cause and the global responses Introduction The global financial crisis or economy crisis is commonly believed to have begun in July 2007 with credit crunch, when a loss of confidence by the US investors in the value of sub-prime mortgages caused a liquidity crisis. On the other hand, due to the big changes that took place over the last 20 to 30 years in the worldwide economy and the influence of 2007 financial crisis, it has re-emerged as one of theRead MoreThe Effects Of Tax Havens On The Globally Economy1161 Words   |  5 Pagesat a low rate, taxes such as income tax and inheritance tax. Offshore banking is when an individual decides to do their banking with a financial intuition that isn’t located in the country in which they reside. The main benefits of banking offshore in tax haven countries are: †¢ Little to no taxes †¢ Added privacy †¢ Security against ‘political, local or financial instability’ (Wikipedia, 2016) At first I didn’t think much of it really, I thought to myself it’s their money they can keep it in whatever