Cours d'anglais

Cours d’anglais cours du 11/10/17

Chapitre 5 : dernier chapitre QCM

1.2 the role of the euro 

1991 the soviet-union was disolved. A new power have to be created in Europe in order to challenge US hegemony. The euro had an important role because he added liquidity and flexibility to financial markets.

The euro today is the 2nd most important international currency after the US dollar.

• Advantages of the euro:  

- no fluctuating exchange rates.

- it also eliminated exchange costs.

These advantages are obvious when you travel abroad or when you shop online on websites that are based in an other European country.

-easier for companies and businesses to cross-border trade. Easier to trade with other countries.

- more choice for consumers.

1.3 The Eurozone 

the term Eurozone refers to the countries that use the euro as a single currency. Now there are 28 countries. But 19/28. The 19 form the euro zone. It represents 338.6 million people use the euro.

• The Eurozone : the biggest economy is the Germany followed by France.

PIIGS : Portugal ; Ireland; Italy; Greece; Spain.

-austria, Belgium, Cyprus, Estonia, Finland, Latvia, Lithuania, Luxembourg, malta, the Netherlands; the Netherlands, Slovakia, Slovenia.

Countries who don’t use euro : Swenden but it will have to join the Eurozone in the future, the Czech republic, Hungary, Poland and Romania are not qualified to enter in the euro zone because they do not comply criteria.

Denmark and UK : “opt-out”

In 2000 reject the adoption of the euro in a referendum. It was a choice.

The UK is out of the Eurozone and will also leave the European union after voting for Brexit in june 2016.

2. the growth of China and India as world financial powers:

China and India= 1/3 of the world’s population. There rise as financial powers has been extraordinary.

• China: astonishing economic growth in the last few decades:

This growth is a result of a real programme:

-1978: China implemented program of reforms at the economic level to increase its GDP.

They was in  the 9th rank and in 2013 China became the 2nd. This vast program was a huge success for China.

-1.3 M of millionaires in China.

In the past China and India= cheap labour and manufacturing. That’s why many countries and companies decided to outsourcing work and production to make more profits.

When a company outsources (délocaliser) it pais to have part of his work by another company.

Today it still the case but now many companies decide to stay in China and India because they can find talented and skilled professionals especially in high tech firms.

More scientists and engineers are trained in China and India each year.

-in the city of Bangalore you can find the internationally competitive IT communities.

In terms of technology the balance of power is moving west to east. From the US to China and India.

This shift puts some pressure on investors and businesses: because they are obliged to increase there knowledge of the legal and cultural systems to adapt there products to the needs of their new costumers.

But life is not beautiful for everyone in China and India. Poverty still exist especially in rural.

• Extensive and rural poverty (2010)

-China: 100-130 M people earned less than 1.25 dollar a day.

- India : 54% of the population below the bank’s benchmarck.

Industrial power can not be the only solution to solve economics problems.

3. 2007: the collapse of the subprime market= the subprime mortgage crisis

to understand that we have to go back to 2001.

> 2001: 9/11 terrorist attacks were a real shock for the American economy. The economy decline rapidly. Reaction from the federal reserve cut interest rates to historically low levels. Positive influence especially in the housing market increased very rapidly for several years. Many Americans wanted to buy their own house. It was an opportunity for lenders to capitalise.

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