Economy

The American economy is the largest economy in the world. It can be seen from the nominal Gross Domestic Products of her in 2011 has reached USD 15 billion are expected to be a quarter of total world GDP. Although Europe actually has economic power is no less great, but it must be realized also that Europe is a union of several countries. While America consists of only one state alone. So, when seen from the comparison, the U.S. economy remains the largest economy in the world.
 Besides having a high GDP, the U.S. economy was also shown to have a high purchasing power nilay whose value is about one-fifth of domestic revenue bruto value the world's purchasing power. Of the value of output produced by the United States, which in 2011 succeeded in bringing America into the highest ranked 7 in the world, make America became the richest country in the world. This is supported by the United States as a state predicate biggest trading centers in the world where three of America's largest trading partner is now Canada, China, and Mexico.
 American economic system is a mixed economy. The economic system is proven to have managed to maintain a growth rate of gross domestic product, reducing the unemployment rate, to a high rate of investment growth. It can be seen from the 500 largest companies in the world, including 133 companies headquartered in the United States so that it reinforces the U.S. as the world's largest manufacturer although most economic activity is classified as a service.
 From the available data there is no mention that the American economy is the largest economy in the world since 1890. Although a number of times hit by serious economic problems, America was able to prove through a variety of economic crisis that hit the country of Uncle Sam. The growth rate of the American economy grew at an average - average 3.8% until 1973. Until after 1973 the economic growth rate was slow and stagnant, average - average of 2.7%, resulting in an increase in income per year was only 0.3%. The main thing is why the American economy grew so rapidly is because the U.S. government to give freedom to private companies to make decisions - decisions that relate to the people. The latest data says that up to now in America there are 29.6 million small businesses, 30% of world's millionaires, 40% of people with wealth in units trillion world, as well as 133 companies included in the list of 500 major companies in the world.

INVESTMENT IN CAPITAL MARKET GROWS

In the current era of globalization, where economic barriers fade, shift the flow of funds from the surplus to the deficit will be more rapid and unimpeded. Capital market as the investment of fund flows from the excess wealth (surplus) to the cash-strapped (deficit) to act as financial intermediaries. Investors here is a party in relation to the financial surplus.
Who are the parties this surplus? In relation to the investment and use of funds, investors can be divided. First, is that domestic investors are investors who come from the country that make up the portfolio of assets in domestic capital markets. Both are foreign investors, ie investors who have some funds from abroad that make up a portfolio of assets in a number of different countries.
Foreign investment coming to other countries actually have a classic motif that includes, motive raw materials or natural resources, find new markets and minimize costs. From classical motifs are sometimes investors have other motives are motives to develop the technology. Investors are channeling their funds to other countries usually only carry one motive but can be due to several motives as well.
There are at least four ways investors can enter a country: Distressed asset investment, strategic investment, direct investment and portfolio investment. Distressed asset investment is an investment made to acquire ownership or purchase of debt of a company in financial difficulty. Second, the general strategic investment by foreign investors to acquire a company that has a wide enough market share and are in the business segment and location factors that support the company's expansion strategy investors. Third namely direct investment (direct investment) usually takes place in less developed sectors, such as technology-laden construction or development in the automotive sector, usually the company. Fourth is the investment portfolio is invested in bonds and stocks in the capital market.
Portfolio investment is what has been the concern of many practitioners in the field of capital markets. Why is that? Because this type of investor is the fastest moving exposures in a country if there is turmoil (political, economic, exchange rate) which is interpreted as uncertainty. They also are investors who have the most extensive selection compared to the above three types of investors. So that if certain events occur both at the macro, sekoral or government regulations, investors are more vulnerable and sensitive to the reflection on that information. The value of foreign investment in or out, practically will also affect the overall market due to the large volume of transactions.
The role of foreign capital in the country's development has long been discussed by experts in economic development. Broadly speaking, according Chereney and Carter firstly, external funding (foreign capital) can be exploited by emerging country as a base to accelerate investment and economic growth. Second, increased economic growth needs to be followed by changes in the structure of production and trade. Third, foreign capital can play an important role in the mobilization of funds and structural transformation. Fourth, the need for foreign capital to be dropped as soon as the structural changes actually happen (although foreign capital is more productive in the next period).

Earthquake rattles Canada, Tsunami Warning in Hawaii

WASHINGTON, KOMPAS.com - An earthquake measuring 7.7 magnitude shook the west coast of Canada, on Sunday (10/28/2012). The Pacific Tsunami Warning Center (PTWC), warned that the quake triggered a tsunami that led to one of the U.S. states, Hawaii.

"The tsunami could cause damage along coastlines and islands in Hawaii," said the announcement of the PTWC.

The tsunami is expected to reach Hawaii at around 10.28pm local time (08:28 GMT or 15:28 pm GMT).

The announcement came after a magnitude 7.7 rocked the Queen Charlotte Islands off Canada's west coast Sunday, at 03:04 GMT.

USGS said the epicenter was located at 139 km south of the town of Masset.

Laos Log WTO

Vietiane, (AFP). After working for 15 years, Laos on Friday (26/10) officially became a member of the World Trade Organization (WTO) is the 158.
All of the ten ASEAN member countries have now become members of the WTO. Chinese Ambassador to Laos Bu Jianguo and senior China expert Xu Ningning ASEAN family appreciates it.

China had played a role in the process of Laos in the WTO membership. Talking about the meaning of the entry of Laos in the WTO, Chinese Ambassador Bu Jianguo said,

"The entry of Laos in the WTO beneficial to Laos to participate in the process of economic globalization, attracting foreign investment, encouraging foreign trade, in order to promote reform and opening up, accelerate economic and social development, and achieve development targets formulated the 9th Congress of the Lao People's Revolutionary Party . Meanwhile, Laos in the WTO membership will also be driving the region and the world economy, contributing to realize the ASEAN economic integration. "

Senior expert of China to ASEAN business, Xu Ningning also appreciate the positive sense coalescence Laos to the WTO.

Xu said, "To build the ASEAN economic entities in 2015, ASEAN integration and internal economic cooperation is entering a new phase. For Laos who is a member of ASEAN, it is a strong endorsement. Process of ASEAN economic integration has encouraged openness to the outside world Laos , as well as providing assistance to Laos to minimize the economic progress with other ASEAN countries. for Laos, the WTO is a vehicle to commercialize developments in a broader scope. "