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New Asia-Pacific Trade Agreement

The RCEP is a free trade agreement formed between the Asia-Pacific Nations, which include:

  • Australia
  • Brunei
  • Cambodia
  • China
  • Indonesia
  • Japan
  • Laos
  • Malaysia
  • Myanmar
  • New Zealand
  • the Philippines
  • Singapore
  • South Korea
  • Thailand
  • Vietnam

The RCEP spans 2.2 billion people, or nearly 30% of the world’s population and 29% of its GDP.

The introduction and signing of the new Trade Agreement in 2020 states that it would eliminate tariffs and quotas on 65% of the goods that are traded in the region of these countries. This is great news for the World Investment Trade! It will particularly aid the economies of the Asia-Pacific Nations and support the post-COVID-19 economic recovery process of the whole world.

However, it may not be entirely clear on the impact that the agreement will have on the Global Trading relationship, particularly between China and the USA. Currently, a shift in the regional dynamic and economic growth is in favor of China. Nevertheless, the latest American Elections and Biden’s new plans may cause that to change.

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News

The US Election Of 2020

After a nail-biting election, Joe Biden has been named President-Elect. Today, his lead continued to increase in the state of Pennsylvania, giving him 20 additional electoral points and making him surpass the needed 270. President Trump has called for re-counts which have little to no merit as Biden carries states with margins of thousands that won’t be affected by a recount. Pennsylvania is vital in re-establishing the Blue Wall which the Democrats lost in 2016. All trends continue to show a clear Biden lead in the states of Arizona, Nevada, Georgia and Pennsylvania. If Biden manages to win all those states, he will have the same electoral number as Trump did when he beat Hillary Clinton in the 2016 elections. Major news outlets such as CNN and the BBC have called Biden the new incoming president. This election marks a key turning point in history as Kamala Harris will be the first female and first colored Vice-President, while Joe Biden will be the oldest President of the USA. Traditionally, the sitting President calls the newly elected one, but as of today Trump has not called Biden. The Biden-Harris team will have its first public speech at 8 PM EST on the 8th of November. The following months will be crucial for them as they have the task of somehow uniting a split America. Biden might have won the popular vote by approximately four million, yet around 70 million Americans still voted for Trump. After the winning announcement, celebrations of joy erupted throughout America. However, these celebrations are being overshadowed by the coronavirus outbreak; America had its highest increase in the number of cases reported in 24 hours (132,797) on the 6th of November. As the election draws to a close, it will be interesting to see how the world reacts, specifically looking at the markets.

To read more about the election press the following links:

NBC News

CNN

BBC

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Analysis News

The 2020 Nobel Prize in Economics

On the 12th of October, american economists Paul Milgrom and Robert Wilson were awarded the 2020 Nobel Prize in economics. The two professors are based at the University of Stanford and were recognized for their work in auction theory. This new theory describes new formats for auctioning many interrelated objects on behalf of a seller motivated by doing good for society rather than simply achieving the highest price possible. These formats were used in 1994, when US authorities wanted to fairly privatize radio broadcasting stations throughout the country. The new development is all about avoiding the ‘winner’s curse’, this phenomenon has the tendency for the winning bid of an auction to exceed the true worth of the item.

For more information, follow these links:

Nobel Prize Webpage

Categories
News

2020 Nobel Prize in Economics

On the 12th of October, American economists Paul Milgrom and Robert Wilson were awarded the 2020 Nobel Prize in economics. The two professors are based at the University of Stanford and were recognized for their work in auction theory. This new theory describes new formats for auctioning many interrelated objects on behalf of a seller motivated by doing good for society rather than simply achieving the highest price possible. These formats were used in 1994, when US authorities wanted to fairly privatize radio broadcasting stations throughout the country. The new development is all about avoiding the ‘winner’s curse’, this phenomenon has the tendency for the winning bid of an auction to exceed the true worth of the item.