Question

write a report, a summary of two articles selected from a well known newspaper. The topics must be related to economics, and the length of the report is no more that two pages. If you copy the authors' sentences, you will receive a grade of zero

Answer 1

Article on US China Trade War

The biggest issue been surfaced is US China Trade War, Immigration Laws, US National Debt, Foreign Relations policy  

US and china have great history of trade wars however recent times has been largely due to sanctions been imposed on china by USA.

Recently, USA slpped tarrifs on 40% of chinese goods. which has caused prices of US goods to go up substantially becuase cheap imports fro china have been stopped.USA has also stopped cheap imports of steel and as a result Chinese government too has imposed substantial tarrifs on USA goods.

As a result, there has been currency devaluation in China to make it goods look more cheaper and attractive and has started selling Goods in emerging markets. US goods however have become more costlier and hence sales have decreased.

Chinese government has aggravated trade war by imposing fresh round of tarrifs , however before G20 summit which will be held in 2018, such issues will be resolved.

Since, China has imposed tarrifs we see there has been lack of entry of chinese workrs and visas in USA which has nullified the clear cut winner. Because of trade war, India has managed to export steel and aluminium to US markets and hence has been the greatest beneficiary.

Given the Presidential Power following economic strategies need best case implementation :

Resolution of NAFTA deal with negotiation as well as maintenance of great relationships with South Korea on denuclearization by maintaining an eye on all developments
US China pact and removal of tarriffsby signing of MOU and economic cooperation
Immigration laws been relaxed by allowing H1B for Indians who look to create startups IN UsA and generate more employment
Debt refinancing and additional taxation on corporates with large market Capitalization to decrease debt in short term.
Increasing interest rates to appreciate dollar and control inflation and money supply in market  

References:

IMF says Us china Trade war will have spillover effects for EM, by Reuters, October 17th 2019, Business Standard.

Article on Telecommunications Industry in India

Telecommunications industry in India faces an Oligopolistic market structure with combined revenue potential of 30 billion Us dollars and taxation rate at 33 % with 4 large players of equal sizes namely BSNL, Vodafone Idea limited, Bharti Airtel, Reliance Jio. The industry has grown at stagnant rate from 3% to 4% however has been largest contributor to GDP at 11% and contributes 11,00,000 jobs yearly in India. However key challenges remain industrial prices set by Jio as rock bottom, heavy taxation and cumbersome merger acquisition regulations amd strong consumer pressure on low prices.

Industrial output has grown from 22billion dollars ro 30 billion dollars a sper GSMArena, TRAI data, DoT data. FDI in Telecommunications has increased however hummongously by 57%but the consumer demand for data and calls has grown enormously by 322% and so has the prices fallen to 5 Rupees per 1 GB data as compared to 250 rupees for 1 GB data in 2014. The Government has too allowed foreign investment and global players tobid for spectrum auction and hence net FDI is higher and dollar inflow and suprlus too is high.

The biggest drivers of growth pattern are changibg consumption preferences to higher usage plans, lower prices which drive higher affordability, 4G coverage and infrastructure sharing. The Demonetization in 2016 in India saw huge losses to telecoms sector and similarly the 2008 Recession also impactes financial health of 10 players existing erstwhile which led to substandard growth in Telecommunications sector in 2009 era.

Recommendations for expansion including heavy bid for spectrum auctions, cutting down 3G tower and adoption of mass bubdled plans across rural areas for widened coverage and tieups with smartphone vendors becomes the need of the hour.

By and large we conclude and infer that rising taxes and increasing compliance as well as competitive pressures from incumbents coupled with cheap dirt prices will keep industry revenues subdued for while and will only improve after 4 quarters as expected by Crisil and ICRA. With adevent of 5G, we expect the future to cross 100 billion dollar opportunities in India wkth tonnes of commercial use cases and techtonic changes in Technology which will see unprecedented growth as industry stabilises and consolidates itself leading to firm prices and saturated demand and wide scale adoption of 4G and 5G services.

References :

Telecom crisis: Is India sabotaging its big bet at regaining its growth momentum, by Bloomberg, October 30th 2019.