1.    The economy of the United Kingdom is the sixth-largest national economy in the world measured by nominal GDP and seventh-largest measured by purchasing power parity (PPP), and the third-largest in Europe measured by nominal GDP (after Germany and France) and second-largest measured by PPP (after Germany). The UK's GDP per capita is the 20th highest in the world in nominal terms and the 17th highest measured by PPP. The British economy comprises (in descending order of size) the economies of the countries of England, Scotland, Wales and Northern Ireland. The UK is a member of the Commonwealth of Nations, the European Union, the G7, the G8, the G20, the International Monetary Fund, the Organisation for Economic Co-operation and Development, the World Bank, the World Trade Organisation and the United Nations.

In the 18th century the UK was the first country in the world to industrialise,[14] and during the 19th century possessed a dominant role in the global economy.[15] From the late 19th century the Second Industrial Revolution in the United States and the German Empire presented an increasing challenge to Britain's role as leader of the global economy. Despite victory, the costs of fighting both the First World War and Second World War further weakened the relative economic position of the UK, and by 1945 Britain had been superseded by the United States as the world's dominant economic power. However, the UK still maintains a significant role in the world economy.

The UK is one of the world's most globalised countries. London is the world's largest financial centre alongside New York and has the largest city GDP in Europe. As of December 2010 the UK had the third-largest stock of both inward and outward foreign direct investment (in each case after the United States and France). The aerospace industry of the UK is the second- or third-largest national aerospace industry, depending upon the method of measurement. The pharmaceutical industry plays an important role in the UK economy and the country has the third-highest share of global pharmaceutical R&D expenditures (after the United States and Japan). The British economy is boosted by North Sea oil and gas reserves, valued at an estimated £250 billion in 2007. The UK is currently ranked fourth in the world (and first in Europe) in the World Bank's Ease of Doing Business Index.

2.    According to the Oxford English Dictionary, the word "globalisation" was first employed in a publication entitled Towards New Education in 1930, to denote a holistic view of human experience in education.[4] An early description of globalization was penned by the founder of the Bible Student movement Charles Taze Russell who coined the term 'corporate giants' in 1897,[5] although it was not until the 1960s that the term began to be widely used by economists and other social scientists. The term has since then achieved widespread use in the mainstream press by the later half of the 1980s. Since its inception, the concept of globalization has inspired numerous competing definitions and interpretations, with antecedents dating back to the great movements of trade and empire across Asia and the Indian Ocean from the 15th century onwards.[6]

The United Nations ESCWA says globalization "is a widely-used term that can be defined in a number of different ways. When used in an economic context, it refers to the reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, services and labour... although considerable barriers remain to the flow of labor... Globalization is not a new phenomenon. It began towards the end of the nineteenth century, but it slowed down during the period from the start of the First World War until the third quarter of the twentieth century. This slowdown can be attributed to the inward-looking policies pursued by a number of countries in order to protect their respective industries... however, the pace of globalization picked up rapidly during the fourth quarter of the twentieth century..

3.    An economic depression is a severe downturn that lasts several years. Fortunately, the U.S. economy has not experienced an economic depression since The Great Depression of 1929, which lasted ten years. The decline in the GDP growth rates were of a magnitude not seen since:

1930 -8.6%

1931 -6.4%

1932 -13%

1933 -1.3%.

During the Depression, unemployment was 25% and wages (for those who still had jobs) fell 42%. Total U.S. economic output fell from $103 to $55 billion and world trade plummeted 65% as measured in dollars.

The Depression was aggravated by poor monetary policy. Instead of pumping money into the economy, and increasing the money supply, the Federal Reserve allowed the money supply to fall 30%. The "New Deal" created many government programs to end the Depression, but government programs alone could not end it. Unemployment remained in the double-digits until 1941, when the U.S. entry into World War II created defense-related jobs.

An economic depression on the scale of that in 1929 could not happen exactly the way it did before. Many laws and government agencies were put in place because of The Great Depression with the express purpose of preventing that type of cataclysmic economic pain. Central banks around the world, including the Federal Reserve, are so much more aware of the importance of monetary policy in regulating the economy. In fact, central banks did act in a coordinated fashion to prevent a depression in October 2008.

However, there is only so much monetary policy can do without fiscal policy. In 2009, the economic stimulus bill helped prevent an economic depression by stimulating the economy. However, the incredible size of the national debt limits further government spending to stimulate the economy. Both monetary and fiscal policy are needed to prevent a global depression. (Updated December 21, 2009)

4.    The Depression of 1893

In its impact on industry and employment, the depression of the 1890s was on a par with the Great Depression of the 1930s. In some places it began before 1890, in a deep agricultural crisis that hit Southern cotton-growing regions and the Great Plains in the late 1880s. The shock hit Wall Street and urban areas in 1893, as part of a massive worldwide economic crisis. A quarter of the nation's railroads went bankrupt; in some cities, unemployment among industrial workers exceeded 20 or even 25 percent.

Americans of different incomes experienced the depression in markedly different ways. In the bitter winter months, some poor families starved and others became wanderers. Unemployed "tramps" crisscrossed the countryside, walking or hiding on freight trains. Many appeared at the back doors of middle-class houses, pleading for work or food.

Despite the obvious structural crisis, many Americans blamed those who could not find work, accusing them of laziness or begging. Some among the unemployed blamed themselves, and stories of despair and suicide ran almost daily in many newspapers.

Many in the comfortable classes feared violence and anarchy. A series of bitter labor conflicts--such as the Homestead strike at the Carnegie Steel Works, and the Pullman strike in Chicago--captured the nation's attention before and during the depression itself. In such situations, many respectable Americans blamed violence on the strikers, though others sympathized with the plight of the underpaid and unemployed.

In 1894, Ohio businessman Jacob Coxey organized an "Industrial Army" to protest the federal government's inaction in the face of economic crisis. Coxey proposed many programs that would later win acceptance during the New Deal, but which were considered extremely radical in the 1890s. Most notably he advocated the creation of government jobs, through which unemployed men could improve the nation's roads and build public works, while also supporting their families. This project, he argued, could be financed through the issue of government bonds.

Coxey's Army picked up many allies and sympathizers on its march to Washington, but it also stirred panic among those who feared an insurrection of the unemployed. When the members of the Army reached Washington they were driven from the Capitol lawn. Coxey, who tried to read a prepared statement on the Capitol steps, was jailed for trespassing, though allies later read his speech into the Congressional Record. Coxey, who founded the newspaper Sound Money, went on to run for U.S. Representative from Ohio in 1894 (he lost to a Republican) and to serve as a delegate to the 1896 Populist convention. Because of his high profile in the party, many commentators associated Populism with "Coxeyism."

The depression remained severe in 1896, making economic conditions a crucial issue of the campaign. The sitting Democratic president, Grover Cleveland, was wildly unpopular because of the depression--a fact that helped foster a deep rift in the Democratic party, and also made Bryan's campaign an uphill battle from the start. During the first two years of McKinley's presidency the nation returned to prosperity, bringing new issues to the fore in 1898 and beyond.

5.    According to the U.S. National Bureau of Economic Research (the official arbiter of U.S. recessions) the recession began in December 2007.  The financial crisis is linked to reckless lending practices by financial institutions and the growing trend of securitization of real estate mortgages in the United States. The US mortgage-backed securities, which had risks that were hard to assess, were marketed around the world. A more broad based credit boom fed a global speculative bubble in real estate and equities, which served to reinforce the risky lending practices.[11][12] The precarious financial situation was made more difficult by a sharp increase in oil and food prices. The emergence of Sub-prime loan losses in 2007 began the crisis and exposed other risky loans and over-inflated asset prices. With loan losses mounting and the fall of Lehman Brothers on September 15, 2008, a major panic broke out on the inter-bank loan market. As share and housing prices declined, many large and well established investment and commercial banks in the United States and Europe suffered huge losses and even faced bankruptcy, resulting in massive public financial assistance.

A global recession has resulted in a sharp drop in international trade, rising unemployment and slumping commodity prices. In December 2008, the National Bureau of Economic Research (NBER) declared that the United States had been in recession since December 2007. Several economists have predicted that recovery may not appear until 2011 and that the recession will be the worst since the Great Depression of the 1930s. Paul Krugman, who won the Nobel Memorial Prize in Economics, once commented on this as seemingly the beginning of "a second Great Depression." The conditions leading up to the crisis, characterized by an exorbitant rise in asset prices and associated boom in economic demand, are considered a result of the extended period of easily available credit  and inadequate regulation and oversight.

The recession has renewed interest in Keynesian economic ideas on how to combat recessionary conditions. Fiscal and monetary policies have been significantly eased to stem the recession and financial risks. Economists advise that the stimulus should be withdrawn as soon as the economies recover enough to "chart a path to sustainable growth".

6.    Developments since 1997

Vietnam's economic stance following the 1997 Asian Financial Crisis, East Asian recession has been a cautious one, emphasizing macroeconomic stability rather than growth. While the country has shifted toward a more market-oriented economy, the Vietnamese government still continues to hold a tight rein over major state sectors of the economy, such as the banking system, state-owned enterprises, and areas of foreign trade.[12] GDP growth fell to 6% in 1998 and 5% in 1999.

The July 13, 2000, signing of the Bilateral Trade Agreement (BTA) between the USA and Vietnam was a significant milestone for Vietnam's economy. The BTA provided for Normal Trade Relations (NTR) status of Vietnamese goods in the U.S. market. Access to the U.S. market is expected to allow Vietnam to hasten its transformation into a manufacturing-based, export-oriented economy. It would also concomitantly attract foreign investment to Vietnam, not only from the U.S., but also from Europe, Asia, and other regions.

In 2001 the ruling Communist Party of Vietnam approved a 10-year economic plan that enhanced the role of the private sector while reaffirming the primacy of the state.[11] Growth then rose to 6% to 7% in 2000-02 even against the background of global recession, making it the world's second-fastest growing economy. Simultaneously, investment grew threefold and domestic savings quintupled.

In 2003 the private sector accounted for more than one-quarter of all industrial output.[11] However, between 2003 and 2005 Vietnam fell dramatically in the World Economic Forum's Global Competitiveness Report rankings, largely due to negative perceptions of the effectiveness of government institutions.[11] Official corruption is endemic, and Vietnam lags in property rights, the efficient regulation of markets, and labor and financial market reforms.[11]

Vietnam had an average growth in GDP of 7.1% per year from 2000 to 2004. The GDP growth was 8.4% in 2005, the second largest growth in Asia, trailing only China's. Government figures of GDP growth in 2006, was 8.17%. According to Vietnam's Minister of Planning and Investment, the government targets a GDP growth of around 8.5% for 2007.[13]

On November 7, 2006, Vietnam became the World Trade Organization (WTO)'s 150th member, after 11 years of preparation, including 8 years of negotiation. Vietnam's access to WTO was intended to provide an important boost to Vietnam's economy, to ensure the continuation of liberalizing reforms and create options for trade expansion. However, WTO accession also brings serious challenges, requiring Vietnam's economic sectors to open the door to increased foreign competition.

Although Vietnam’s economy, which continues to expand at an annual rate in excess of 7 percent, is one of the fastest growing in the world, the economy is growing from an extremely low base, reflecting the crippling effect of the Vietnam War (1954–75) and austerity measures introduced in its aftermath.[11

EU Warns of Multi-Billion Dollar Sanctions Against US

Scott Stearns

White House

05 Nov 2003, 20:14 UTC

The European Union says the United States is facing billions of dollars of trade sanctions if the US Congress does not eliminate overseas tax shelters for American exporters. The Bush administration says it is working with lawmakers to avoid those sanctions.

The trade dispute centers on a ruling three years ago that found the United States violating World Trade Organization rules by allowing overseas tax shelters.

Scott McClellan     

European leaders say they have waited long enough for American legislators to change the law, and they are now threatening a series of sanctions if Congress does not act quickly.

Sanctions that could ultimately total $4 billion may gradually be imposed on American exports beginning next March.

White House spokesman Scott McClellan says President Bush is working with Congress to repeal those provisions and avoid what could be crippling trade sanctions at the start of an election year.

"We are continuing to work with Congress to address that issue and to avoid triggering sanctions and to insure that we are in compliance with the WTO decision," he said.

Mr. McClellan says the president is strongly urging both the House and Senate to pass legislation this year complying with the WTO decision.

But it is not just Congress that must act to avoid penalties. More than $2 billion worth of European-trade sanctions could begin in December if President Bush does not lift U.S. steel tariffs.

He imposed those tariffs to win support from steel-producing states that were losing jobs to cheaper imports, but those tariffs have also resulted in higher costs for American manufacturers that use steel.

US Economy Adds Jobs for Third Month in Row

Meredith Buel

Washington

07 Nov 2003, 19:20 UTC

The U.S. economy has gained jobs for a third month in a row.

New figures released by the U.S. Labor Department show businesses hired 126,000 people in October. That is twice the number expected by economists.

The jobless rate fell by .1 percent to six percent, indicating economic growth in the United States has translated into more jobs.

The economy grew at a sizzling 7.2 percent in the third quarter. But partly due to large gains in productivity, the job market has been lagging behind other indications of the economic recovery.

A major portion of the increase in payrolls came from the service sector. Jobs were also created in the retail industry, education and health care.

Manufacturing continued to lose jobs in October, but at a slower pace than in previous months.

Economist Ken Mayland says business owners and managers are now feeling more confident about the economy, and have started to hire new workers.

"I think we are finally breaking through to the point where there is some increasing belief that, hey, maybe this economy is on a sustainable path to decent economic growth, and now it is time to put some bodies to work in the form of permanent new hires," he said.

Unemployment is an important political issue ahead of next year's presidential election, because the U.S. economy has lost at least 2.6 million jobs since President Bush took office in January 2001.

Mr. Mayland says he expects, with the improving economy, two million new jobs will be created between now and when voters go to the polls next November.

"With this economy now producing meaningful job gain, I think we are going to see some significant decline of the unemployment rate, maybe as much as a half a percentage point," he said. "If that in fact happens, that is going to figure prominently in President Bush's re-election chances. That is an economic call, that is not a political call on my part."

Mr. Mayland says the increase in hiring puts to rest what some economists have been calling the "jobless recovery."

He expects consumer confidence to rise as unemployment rates fall.

Mr. Mayland says the good economic news comes at the best possible time for businesses, just as the holiday shopping season is about to get under way.

Japanese Automaker Toyota Reports Record Earnings

Amy Bickers

Tokyo

07 Nov 2003, 14:31 UTC

Japan's largest automaker reports record earnings while the country's top cosmetic maker sees its profit slide.

Toyota Motor is powering ahead, becoming Japan's largest company by market value and reporting record sales and profit for the first six months of the year.

Toyota's market capitalization, the value of its shares, on the Tokyo Stock Exchange now totals about $112 billion, surpassing mobile phone giant NTT DoCoMo, the previous market leader.

Toyota said this week that its net profit rose 23 percent to $4.8 billion for the first half of the year compared with the same period last year. Revenue rose eight percent to $75 billion. Toyota credits cost cutting and global marketing efforts for its strong results.

Managing Director Takeshi Suzuki tells reporters that he is pleased with the company's performance. He adds that the automaker is increasing local production around the world to minimize the effects of volatile currency exchange rates.

Toyota says it aims to control 15 percent of the world auto market by 2010, up from the current level of just over 10 percent.

Japan's second biggest automaker, Honda, is recalling almost 700,000 vehicles in the United States and Canada because of a defect.

Honda says it will recall five models including the popular Accord sedan because of a faulty mechanism that causes parked cars to roll. The recall will cost the company $32 million.

The U.S. National Highway Traffic Safety Administration says there have been four injuries linked to the defect and more than 100 complaints have been made about it.

Japan's biggest cosmetics maker posted weak earnings. Shiseido say its net profit declined 34 percent in the first half of the fiscal year to $60 million, from the same period a year earlier.

Overseas sales, which account for a quarter of the company's revenue, were down sharply. Many Japanese women buy cosmetics overseas at duty-free shops where they are less expensive. But many would-be travelers stayed home this year because of the U.S.-led war in Iraq and the outbreak of Severe Acute Respiratory Syndrome.