Boers Case And War

Boers Case and War

Introduction

In the present work a small approach to the composition of the balance of payments of the United Kingdom and its evolution is made during the last 15 years, to later analyze the results of the same compared to the scales of three countries that, in addition to beingSimilar economies regarding the level of income, number of inhabitants or form of government, are part of the main commercial partners.

The United Kingdom of Great Britain and Ireland of the North is located to the northwest of the European continent, covering the territories of Wales, Scotland, the island of Great Britain, the northeastern part of the island of Ireland and many small islands. According to the Atlas of Economic Complexity of Harvard University, it is the richest 19th economy of 133 countries studied with a $ 42 -per capita GDP.491.36 by the end of 2018;And despite having a great economic complexity, it has worsened in recent years due to the little diversity in its exports. 

Developing

The balance of payments “records all economic transactions between the residents of the declarant and the residents of other countries for a certain period of time is monthly, quarterly, annual, etc.”Reflecting the increase or decrease in the assets posed by the country’s residents, in terms of goods, services, portfolio assets;It is also a record of international reserves and errors and omissions that arise when reporting these movements.

As for the balance of payments in the United Kingdom, the influence of the events given in certain years, which, for this work will be described below:

2008 economic crisis

For the vast majority of countries, this has been the worst financial crisis they have lived, which was due to the collapse of a real estate bubble in the United States in 2006, then going to generate the so -called subprime mortgages crisis in 2007, which, whichIn turn, for 2008 it brought great negative consequences such as lack of liquidity, a world food crisis, among others. Developed countries, despite being also very affected, had to start donating or supporting underdeveloped countries, together with the help of the World Bank.

“The financial commitments of the World Bank Group since July 2008, just before the worst of the financial crisis was triggered, amount to US $ 100 billion to the institution to the countries to deal with the economic slowdown to the institution to dateWorld and recover from it. 

This level of support is not preceded in the Bank as a world development institution and covers protection networks for the poor, infrastructure for job creation and the establishment of the bases for recovery, agriculture in support of small farmers and microfinance forHelp small business and microenterprise."

“After the worst crisis in 50 years, the world economy faces an uncertain and uneven recovery with new risks to employment and growth. The World Bank group is performing a historically important function of protection of the poor and establishing the bases for recovery." 

Brexit

Brexit basically consists of the separation of the United Kingdom from the European Union;As we know, the US is a regional commercial agreement that implies a common market, which, according to Carbaugh allows the free mobility of products and services between member countries and the free flow of production factors through the borders of these countries. Despite being a concept that many people consider that it will negatively affect the United Kingdom, in terms of decreased GDP, the increase in the flow of production factors and slowdown to British economic growth, it is a fact that 31October of this year will happen.

“The referendum to decide the departure of the United Kingdom from the European Union and the presidential elections in the United States have shown, among other things, that the lack of public confidence in global integration is increasing. This distrust could derail the new trade agreements that are in the process of negotiation and prevent others from starting in the future."" The implicit danger of this scenario should not be underestimated. Isolationism and protectionism, taken to the extreme, could endanger the economic engine of trade that has brought peace and prosperity to the world for decades." 

Current account

As Carbaughla says current account, it covers the transactions of goods and services from and to the commercial balance country, the income flows of factors and international transfers. In the graph there can be a strong and constant participation of the commercial balance, followed by unilateral transfers and finally the rental of factors. The deficit result in this account means that there have been more outputs than entries in the concepts that compose it, which are described below.

The commercial balance of the commercial balance, as Carbaugh says, reflects the movements of goods and services. A surplus in this account implies that the country has transferred more resources than it has received from abroad. Taking into account the above and what is managed to appreciate in graph 2, during the 15 years analyzed a commercial deficit is presented, which translates into an amount of imports greater than exports from the United Kingdom in the period 2003-2018.

During the first two years the deficit in the trade balance managed to overcome the total deficit in the current account;From the fifth year a decrease in the deficit magnitude is perceived, which is due to an increase in exports held until 2011 where its highest peak is evidenced;After this period the trade balance, although it shows an increase in imports, manages to maintain a balance in which there is no deficit as representative for the country as in the first years of the analysis. 

According to the statistics set forth in Table 2, it can be seen that the commercial relations of the United Kingdom occur very strongly with 9 countries that are within the first 10 both in the countries of origin of imports and in countriesexport destination;These countries are Germany, the United States, China, the Netherlands, France, Belgium Luxembourg, Ireland, Italy and Spain. 

conclusion

With these countries there are 56% of imports and 61% of exports, which indicates that they are important commercial partners of the country in analysis. In most cases they are countries belonging to the euro zone, which facilitates the flow of goods and the provision of services from one country to another. In the case of the United States and China, trade can be justified by the size of the economies, and according to the products that the United Kingdom imports and exports.

Surely it is given by the phenomenon of intra -industrial trade, which is defined by Carbaugh as the two -way trade of a similar product, that is, that despite trade products similar to those of its commercial partners, due to the multiple categories they presentThey are given the foundations for trade between the country studied and said partners.  Graph 5: Own elaboration with data from the International Monetary Fund

For comparative analysis in the United Kingdom’s trade balance with the rest of the countries to consider, it is important to bring up the facts of the economic crisis of the European Union in 2008, since this caused a decrease in the movement of goods and servicesIn the world, since countries did not have enough resources to import and continue buying, they should focus on recovering internally and supporting their local businesses.