Their largest export is the sale of oil and gas, and Iran holds what is estimated to be 10% of the world's oil reserves, so their economy is growing again, and they are successfully paying off old debt that was restructured in the 1980s (Editors). While Iran was sinking into a depression, Israel, on the other hand, was gaining ground in many areas of their economy. While they still have to import oil, and that continued during the 1975-1985 time period, their economy has modernized and gained much more ground and diversity than Iran's, at least today. However, from 1975 to 1985, the economy was a very different story. While Iran was undergoing a boom because of oil prices, Israel enjoyed no such luxury. In fact, their resources were depleted after the 1973 Yom Kippur War, and their economy was on a severe downslide. An economist notes, "Not only was Israel's economic growth rate much lower after 1972, it was also far less stable. The reasons most often cited for this slowdown include a sharp increase in defense spending, the 1982-83 energy crisis, and increased expenditures on social welfare" (Coutsoukis). Because their defense expenditures were so high during this time, Israel's growth stagnated, and they had to take foreign aid from other countries, (specifically the United States), and they had difficulty exporting enough items to create a healthy economy. The defense investments of Iran during this time helped ease some of the burden on Israel's population, and the oil agreement and pipeline investments helped ensure Israel would survive internally. However, during the period between 1975 and 1985, defense spending accounted for 25% of Israel's Gross National Product (GNP), an enormous amount no matter what the situation surrounding them was like (Coutsoukis). This was made up largely of military imports, because Israel has to import most all of its defense machinery and weaponry, and the U.S. helped out with about one-third of those defense costs during that time (Coutsoukis). By the end of 1985, the defense spending had been reduced to about 10% of the GNP, a more manageable number. In addition, the value of exports increased by the same time, which meant a reduced GNP, which meant Israel's economy was coming back on track and was ready to grow, just when Iran was reaching one of its lowest points. Social services also increased in Israel during this time, which added yet another burden to their economy, and social services had to increase in Iran during this same period, because there was more unemployment and cries out for economic reform. Many Iranian leaders and the highly educated left during this time, and immigrated to Israel and other countries like the United States...
Israel has no oil resources of its own, and has to import all its oil from other countries, and so, the price increases in the 1970s really added a burden to their economy. Iran, on the other hand, holds massive oil reserves, and is one of the premier members of the Organization of the Petroleum Exporting Countries (OPEC), and so their economy was helped by these rising oil prices, both before and after the Islamic Revolution in 1979. Therefore, while Iran was on the decline, Israel was on the rise, and today, Israel has a healthy economy, and Iran is basking in the spoils of the oil price increases of this year.
Government and Business Over the last 100 years, the issue of government regulation has been increasingly brought to the forefront. Part of the reason for this, is because there has been a need for various laws to be enacted to protect the safety and interests of the general public. However, due to the fact that United States is a capitalist-based economy, means that there have been calls to limit the kinds
Economics Business' (Micro Economics) required write assignment response question: Compare contrast ' forces' analysis competitive structure S-C-P (Structure Conduct Performance) models perfect competition, monopoly oligopoly. Five Forces vs. SCP model The SCP model of market development suggests that there are three basic market structures which exist, that of perfect competition, monopoly and oligopoly. In a model of perfect competition, consumers are extremely powerful. "Perfect competition is characterized by many buyers and
Both these techniques have an inverse relationship with each other. If the Government chooses to make its operations more efficient, it will be able to utilize the same level of capacity efficiently and increase the level of production. On the other hand, it can make more investments to increase the capacity so that the current and projected demand can be met effectively (Landskroner 2001). The best way to manage the
All it is really accomplishes is forcibly transferring wealth from one party to another. These transfers can actually create new market failures by forming barriers to market entry, and creating unfair competitive advantages through subsidies, tariffs, tax-breaks and regulations that favor one party over another. Fundamental to the notion of government regulation is that its purpose is to eliminate unfairness in competition. However, powerful businesses have huge influences on policy making in
Subway Economic Analysis Subway Corporation: Economic Business Analysis Subway Corporation: Economic Business Analysis Why Subway? Microeconomics centers on the study of the economic makeup of individual households, firms, and government. As franchise firms fall into this category, it is clear that small business owners, such as franchise owners, face the day-to-day task of dealing with many economic decisions in order to keep their businesses both functional and successful in order to turn a profit. One
It is most likely that we can conclude that the Vietnamese currency was more or less unaffected by the sending money trend. Bibliography 1. Anh, Dang Nguyen. Migration in Vietnam. Migration Development and Pro-Poor Policy Choices in Asia. June 2003. On the Internet at http://www.livelihoods.org/hot_topics/docs/Dhaka_CP_7.pdf.Last retrieved on December 6, 2006 http://www.oanda.com/convert/fxhistory.Last retrieved on December 6, 2006 3. Pham Duc Trung et co. Regulation of Interest Rate by the State Bank of Vietnam.
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