Thursday, 14 March 2013


Colonial mining in Mexico began when European techniques of production were introduced into the 'New World' to satisfy the insatiable European demand for metals. Within a matter of years, gold and silver started to flow into the Spanish treasury from Mexican mines. During the next 300 years of Spanish rule, many other minerals were extracted from the ground, such as copper, coal, lead and iron.

 

 

• Mexico is the first producer of silver in the world with almost 20% of the global production. The country has other 11 minerals and metals in the top 15 of world production.

• The mining industry represents around 9% of Mexico’s national GDP, the most important minerals for Mexico’s economy are silver, gold and copper.

 

• Still, 70 % of the country’s territory have the potential to store unexplored mineral deposits, indicating a that the sector has the possibility to continue its growth.

 

 

• About 10% of the total foreign investments in Mexico are aimed for the mining sector and the majority have their origin in the U.S. or Canada.

• The mining equipment segment is dominated by foreign companies and two Swedish companies, Sandvik and Atlas Copco, have successfully positioned themselves on the Mexican market.

• As a result, Sweden is the second largest supplier after the US, of machinery to extract or to perforate land and minerals in Mexico.

 

 

Simplified world active mining map


 

Chuquicamata, Chile, site of the largest circumference and second deepest open pit copper mine in the world.

Mining is the extraction of valuable minerals or other geological materials from the earth from an orebody, lode, vein, seam, or reef, which forms the mineralized package of economic interest to the miner.

To gain access to the mineralised package within an area it is often necessary to mine through or to remove waste material which is not of immediate interest to the miner. The total movement of ore and waste constitute the mining process. Often more waste than ore is mined during the life of a mine, depending on the nature and location of the orebody. Waste removal and placement is a major cost to the mining operator, so detailed characterization of the waste material forms an essential part of the geological exploration programme for a mining operation.

The waste is classified as either sterile or mineralised, with acid generating potential, and the movement and storage of this material forms a major part of the mine planning process. When the mineralised package is determined by an economic cut-off, the near-grade mineralised waste is usually dumped separately with view to later treatment should market conditions change and it becomes economic viable. Civil engineering design parameters are used in the design of the waste dumps, and special conditions apply to high-rainfall areas and to seismically active areas. Waste dump designs must meet all regulatory requirements of the country in whose jurisdiction the mine is located. It is also common practice to rehabilitate dumps to an internationally acceptable standard, which in some cases means that higher standards than the local regulatory standard are applied.[citation needed]

Ores recovered by mining include metals, coal and oil shale, gemstones, limestone, and dimension stone, rock salt and potash, gravel, and clay. Mining is required to obtain any material that cannot be grown through agricultural processes, or created artificially in a laboratory or factory. Mining in a wider sense includes extraction of any non-renewable resource such as petroleum, natural gas, or even water.

Mining of stone and metal has been done since pre-historic times. Modern mining processes involve prospecting for ore bodies, analysis of the profit potential of a proposed mine, extraction of the desired materials, and final reclamation of the land after the mine is closed.

The nature of mining processes creates a potential negative impact on the environment both during the mining operations and for years after the mine is closed. This impact has led to most of the world's nations adopting regulations to moderate the negative effects of mining operations. Safety has long been a concern as well, and modern practices have improved safety in mines significantly.

Mining industry


While exploration and mining can sometimes be conducted by individual entrepreneurs or small business, most modern-day mines are large enterprises requiring large amounts of capital to establish. Consequently, the mining sector of the industry is dominated by large, often multinational companies, most of them publicly listed. See this list of Mining Companies, or Mining Companies by Category . It can be argued that what is referred to as the 'mining industry' is actually two sectors, one specializing in exploration for new resources, the other specializing in mining those resources. The exploration sector is typically made up of individuals and small mineral resource companies ("juniors") dependent on venture capital. The mining sector is typically large and multi-national companies sustained by mineral production from their mining operations. In addition to these two sectors, various other industries such as equipment manufacture, environmental testing and metallurgy analysis also rely on and support the mining industry throughout the world. Canadian stock exchanges have a particular focus on mining companies, particularly junior exploration companies through the TSX Venture Exchange; Canadian companies raise capital on these exchanges and then invest the money in exploration globally.[46] Some have argued that below juniors there exists a substantial sector of illegitimate companies primarily focused on manipulating stock prices.[46]

Mining operations can be grouped into five major categories in terms of their respective resources. These are, oil and gas extraction, coal mining, metal ore mining, nonmetallic mineral mining and quarrying, and support activities for mining.[48] Out of all these categories, oil and gas extraction remains one of the largest in terms of its global economic importance. Prospecting potential mining sites, a vital area of concern for the mining industry is now done using sophisticated new technologies such as seismic prospecting and remote-sensing satellites.


 

 

Energy development is the effort to provide sufficient primary energy sources and secondary energy forms for supply, cost, impact on air pollution and water pollution, mitigation of climate change with renewable energy.

Technologically advanced societies have become increasingly dependent on external energy sources for transportation, the production of many manufactured goods, and the delivery of energy services. This energy allows people who can afford the cost to live under otherwise unfavorable climatic conditions through the use of heating, ventilation, and/or air conditioning. Level of use of external energy sources differs across societies, as do the climate, convenience, levels of traffic congestion, pollution and availability of domestic energy sources.


 


 

Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable (naturally replenished). Renewable energy is an alternative to fossil fuels and was commonly called alternative energy in the 1970s and 1980s. In 2009, about 16% of global final energy consumption came from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from hydroelectricity. New renewables (small hydro, modern biomass, wind, solar, geothermal, and biofuels) accounted for another 2.8% and is growing very rapidly. The share of renewables in electricity generation was around 19.4%, with 16.1% of global electricity coming from hydroelectricity and 3.3% from new renewables.[1]

Wind power is growing at the rate of 21% annually, with a worldwide installed capacity of 238 gigawatts (GW) in 2011,[2] and is widely used in Europe, Asia, and the United States.[3] At the end of 2011, cumulative global photovoltaic (PV) installations surpassed 69 GW, an increase of almost 70%,[4] and PV power stations are commonplace in Germany, Italy, and Spain.[5] Solar thermal power stations operate in the USA and Spain, and the largest of these is the 354 megawatt (MW) SEGS power plant in the Mojave Desert.[6] The world's largest geothermal power installation is The Geysers in California, with a rated capacity of 750 MW. Brazil has one of the largest renewable energy programs in the world, involving production of ethanol fuel from sugar cane, and ethanol now provides 18% of the country's automotive fuel.[7] Ethanol fuel is also widely available in the USA.

Climate change concerns, coupled with high oil prices, peak oil, and increasing government support, are driving increasing renewable energy legislation, incentives and commercialization.[8] New government spending, regulation and policies helped the industry weather the global financial crisis better than many other sectors. Scientists have advanced a plan to power 100% of the world's energy with wind, hydroelectric, and solar power by the year 2030, recommending renewable energy subsidies and a price on carbon reflecting its cost for flood and related expenses.

 



 

.Hydroelectric Sources

 

In hydro energy, the gravitational descent of a river is compressed from a long run to a single location with a dam or a flume. This creates a location where concentrated pressure and flow can be used to turn turbines or water wheels, which drive a mechanical mill or an electric generator.[29]

In some cases with hydroelectric dams, there are unexpected results. One study shows that a hydroelectric dam in the Amazon has 3.6 times larger greenhouse effect per kW•h than electricity production from oil, due to large scale emission of methane from decaying organic material[30], though this is most significant as river valleys are initially flooded, and are of much less consequence for more boreal dams.[31] This effect applies in particular to dams created by simply flooding a large area, without first clearing it of vegetation. There are however investigations into underwater turbines that do not require a dam. And pumped-storage hydroelectricity can use water reservoirs at different altitudes to store wind and solar power.

Solar Power



 

Solar power involves using solar cells to convert sunlight into electricity, using sunlight hitting solar thermal panels to convert sunlight to heat water or air, using sunlight hitting a parabolic mirror to heat water (producing steam), or using sunlight entering windows for passive solar heating of a building. It would be advantageous to place solar panels in the regions of highest solar radiation.[32]

At the end of 2011, cumulative global photovoltaic (PV) installations surpassed 69 GW[4][33][34] and PV power stations are common in Germany, Italy, and Spain.[5] Solar thermal power stations operate in the USA and Spain, and the largest of these is the 354 megawatt (MW) SEGS power plant in the Mojave Desert.[6]

China is increasing worldwide silicon wafer capacity for photovoltaics to 2,000 metric tons by July 2008, and over 6,000 metric tons by the end of 2010.[35] Significant international investment capital is flowing into China to support this opportunity. China is building large subsidized off-the-grid solar-powered cities in Huangbaiyu and Dongtan Eco City. Much of the design was done by Americans such as William McDonough.[36]

Many solar photovoltaic power stations have been built, mainly in Europe.[37] As of April 2012, the largest photovoltaic (PV) power plants in the world are the Charanka Solar Park (India, 214 MW), and the Golmud Solar Park (China, 200 MW).[37]

Agricultural biomass


 

 

Sugar cane residue can be used as a biofuel

Biomass production involves using garbage or other renewable resources such as corn or other vegetation to generate electricity. When garbage decomposes, the methane produced is captured in pipes and later burned to produce electricity. Vegetation and wood can be burned directly to generate energy, like fossil fuels, or processed to form alcohols. Brazil has one of the largest renewable energy programs in the world, involving production of ethanol fuel from sugar cane, and ethanol now provides 18% of the country's automotive fuel.[7] Ethanol fuel is also widely available in the USA.

Vegetable oil is generated from sunlight, H2O, and CO2 by plants. It is safer to use and store than gasoline or diesel as it has a higher flash point. Straight vegetable oil works in diesel engines if it is heated first. Vegetable oil can also be transesterified to make biodiesel, which burns like normal diesel.


Geothermal


Geothermal energy harnesses the heat energy present underneath the Earth, and is capable of supplying all of our energy.[38] Two wells are drilled. One well injects water into the ground to provide water. The hot rocks heat the water to produce steam. The steam that shoots back up the other hole(s) is purified and is used to drive turbines, which power electric generators. When the water temperature is below the boiling point of water a binary system is used. A low boiling point liquid is used to drive a turbine and generator in a closed system similar to a refrigeration unit running in reverse. There are also natural sources of geothermal energy: some can come from volcanoes, geysers, hot springs, and steam vents.[39] The world's largest geothermal power installation is The Geysers in California, with a rated capacity of 750 MW. Geothermal power has the advantage that it is not variable, like most of the other renewable sources. There are four factors to consider in providing 100% of a country's energy from renewable sources - transmission when local resources are greater or less than needed, storage for the same reason, excess capacity to provide sufficient demand, and use of biomass or geothermal to fill in for when wind and solar are insufficient. While the solutions are not fundamentally different from those used with conventional non-renewable sources, the technology is. For example, transmission lines and storage have been used almost since the beginning of electricity use, but as late as 2008 wind power and solar power provided less than 0.25% of total energy (1/400th).[40] A study in Germany by the University of Kassel showed that a combination of wind, solar, storage, and biomass could supply all of Germany's electricity.[41]

Tidal


Tidal power can be extracted from Moon-gravity-powered tides by locating a water turbine in a tidal current, or by building impoundment pond dams that admit-or-release water through a turbine. The turbine can turn an electrical generator, or a gas compressor, that can then store energy until needed. Coastal tides are a source of clean, free, renewable, and sustainable energy.[42]

Fossil fuels


 

 

The Moss Landing Power Plant burns natural gas to produce electricity in California.

Fossil fuels sources burn coal or hydrocarbon fuels, which are the remains of the decomposition of plants and animals. There are three main types of fossil fuels: coal, petroleum, and natural gas. Another fossil fuel, liquefied petroleum gas (LPG), is principally derived from the production of natural gas. Heat from burning fossil fuel is used either directly for space heating and process heating, or converted to mechanical energy for vehicles, industrial processes, or electrical power generation.

Greenhouse gas emissions result from fossil fuel-based electricity generation. Currently governments subsidize fossil fuels by an estimated $500 billion a year.[43]

Nuclear


Fission


Nuclear power stations use nuclear fission to generate energy by the reaction of uranium-235 inside a nuclear reactor. The reactor uses uranium rods, the atoms of which are split in the process of fission, releasing a large amount of energy. The process continues as a chain reaction with other nuclei. The energy heats water to create steam, which spins a turbine generator, producing electricity.

Stated estimates for fission fuel supply at known usage rates vary vastly, from several decades to billions of years; among other differences between the former and the latter estimates, some assume usage only of the currently popular uranium-235, and others assume the factor of a hundred fuel efficiency increase which would come from utilizing uranium-238 through breeder reactors.[44] The Earth's crust contains around 40 trillion tons of uranium and 120 trillion tons of thorium, but, depending on assumptions, reserve figures can be millions of times less for the portion assumed affordable to extract in the future, for the amount of quality ores of far above average crustal concentration.[45][46][47]

At the present rate of use, there are (as of 2007) about 70 years left of presently inventoried uranium-235 reserves identified as economically recoverable at the current natural uranium price of US$130/kg.[48] (For any typical element, though, the amount of proved reserves inventoried at a time may be considered "a poor indicator of the total future supply of a mineral resource";[49] among examples with other elements, tin, copper, iron, lead, and zinc all had both production from 1950 to 2000 and reserves in 2000 much exceed world reserves in 1950, which would be impossible except for how "proved reserves are like an inventory of cars to an auto dealer" at a time rather than the total affordable to extract in the future).[49]

The nuclear industry argues that the cost of fuel is a minor cost factor for fission power; if needed, more expensive, more difficult to extract sources of uranium could be used in the future, such as lower-grade ores, and, if prices increased enough, from sources such as granite and seawater.[48] Increasing the price of uranium would have little effect on the overall cost of nuclear power; a doubling in the cost of natural uranium would increase the total cost of nuclear power with typical present reactors by 5 percent (without considering usage of breeder reactors for handling greater uranium price rise). On the other hand, if the price of natural gas was doubled, the cost of gas-fired power would increase by about 60 percent.[44][50]

The following chart does not include the external costs of using fossil fuels.


█ Conventional oil
█ Unconventional oil
█ Biofuels
█ Coal
█ Nuclear
█ Wind
Colored vertical lines indicate various historical oil prices. From left to right:
— 1990s average
— January 2009
— 1979 peak
— 2008 peak

 

 

 

 

What is the International Monetary Fund

One is an institution of cooperation in which a great amount of countries has entered voluntarily because they recognize the advantages of being able to consult with the other countries in the forum of bottom in order to maintain a system stable of purchase and sale of his respective currencies. The Member States of bottom are convinced that, instead of to privily maintain the measures of economic policy that they try to adopt and that can affect the free change of a currency on the other, is to the benefit of all to maintain informed to the other countries.

Also they consider that a modification of the political measures, when the other countries agree in which this benefits to all, foments the growth of international trade and generates but uses better remunerated, in a world-wide economy in expansion. The bottom only grants to loans to the member nations that have difficulties external financial perform one's duty, but on condition that they undertake reforms economic able to eliminate these difficulties, by its own good and the one of all the others

Contrary to which it is created, the Bottom does not have control some on the internal economic policies of its Member States. The authority that the Bottom exerts strictly limits to supervise the policies that affect in direct form the way in which it is bought and price is sold the currency of each one of the Member States and to what.

At the moment the goal pursueds by the organism are to facilitate the international cooperation, to promote the stability would change and regimes of ordered changes, to help to the establishment of a multilateral system of payments and the elimination of the exchange restrictions and to help to their members when providing temporarily financial resources so that they correct misalignments of his balances of payments.

Origins

The origins of bottom go back to the great depression that whipped to the world-wide economy in the decade of 1930. This decay was not limited the visible economy, but it extended to the world of the international finances and the markets of changes.

The lack of confidence in paper money provoked such demand of gold that was not possible to cover it with the national treasures. Several countries, after the initiative of the United Kingdom, were forced to leave the gold standard that, when defining the value of each currency based on a certain amount of gold, had granted him to the money a well-known and stable value during years.

With the ruling uncertainty about a value of money that no longer had fixed relation with gold, it became very difficult the currency exchange between the countries which they followed with the gold standard, which contracted the quantity still more and the frequency of the monetary transactions between the countries, eliminated jobs and made to go down the standards of life.


They were summoned to several international conferences at the beginning of the Thirties to tackle world-wide the monetary problems, but all failed. It was evident that it solves partisans to them and provisional they were inadequate. What it was needed was the cooperation from all the nations on a scale without precedent to establish a new international monetary system.

On the initiative of Harry White in the USA and John Maynard the Keyneses in the United Kingdom who agreed in proposing principles of the Forties the plan of a system of that nature that would be supervised by a permanent organization of cooperation and not by occasional international meetings.

This system, like reaction before the needs of the time, on the other, made the unrestricted conversion possible of a currency the establishment of a clear and unequivocal value for each currency and the elimination of restrictions and practices such as the competitive devaluations that the investment and the commerce had paralyzed during the Thirties. After prolonged negotiations the international community accepted the system and the organization in charge to supervise it.

 

Operations

When entering like member, all country is forced to maintain informed to the others of regime by means of which the value of its currency in relation to the other countries will settle down, to abstain to impose restrictions to the change of its currency by foreign currency and to adopt policies economic able to increase in form constructive ordinate and its own national wealth the one of all the Member States.

It must stand out that they are the Member States that commit itself to follow this code of conduct. The bottom does not have coercion means so that the countries respect these obligations, although exerts pressures morals so that the countries rely on the norms and regulations that free voluntarily and have allowed to obey. If a country ignores its obligations in repeated form, the other Member States can, through bottom, declare disqualified it to obtain loans or, as a last resort, to solicit from him that it retires of the institution.

With running of time, the Member States have assigned to the Bottom a series of assignments in agreement with the needs of every time and the institution has demonstrated to be a flexible instrument in the performance of its assignments. At present, the responsibility has been assigned to him to the Bottom to supervise the system of change ordered of the national currencies, to grant loans to the Member States so that they reorganize his economy in order that they can cooperate better within the system and serve auxiliary to help to Member States with the management of the external debt and other financial policies.

 

Main services of the IMF

Agreement Stand By, quick attendance of short term when there is deficit of temporary or cyclical character that affects the balance of payments. The advance payments are obtained by stages and its concession depends on which certain criteria of surrender are fulfilled

Service extended of bottom, supports programs of medium term to overcome difficulties of balance of payments product of macroeconomic problems and structural, it applies surrender criteria.

Reinforced service of structural adjustment, for the Member States of low income that have prolonged problems of balance of payments, granting to them loans of low interest. This loan lasts of three years, interest rates of 0.5 annual, with a period of grace of 5 years and amortization of 10 years.

Compensatory service of financing for contingencies, special service that gives financial attendance to the members that undergo temporary deficits in their exports and offers compensatory financing by excessive costs of cereal imports, are also used for external contingencies that affect the adjustments of the IMF

Additionally, it offers technical attendance to the countries that do not count on specialized personnel, through consultations or shipment of professionals enabled in different areas from public administration.

Also thanks to the access that it has to the data of all the economies of world, it publishes monthly and annual statistical editions in order to maintain informed to the Member States on the financial situation into the others, which they are profiteers by banks and diverse financial organizations, pamphlets that explain their programs, bulletins, to paper and national articles on public finances and economies.

What is the World Bank

MANDATE: To help to reduce the poverty and to elevate the standard of life of the developing countries, channeling towards them financial resources of the developed countries.

General information on the Bank

History: The Bank the International of Reconstruction and promotion (BIRF), more known as World Bank were created in Bretton Woods, the United States in 1944 (July). , it began his activities in the month of June of 1946.

At the beginning of his activities of Bank it collaborated in the task of reconstruction of Europe, and Japan, polished in World War II. At the moment their actions orient towards the reduction of the poverty and the elevation of standard of life of the people by means of the promotion of economic growth and the financing of sustainable development.

Objectives

1-Stimulate economic reforms that promote the equitable and sustainable development and reduce the poverty.

2-Take part in health programs, nutrition and familiar planning.

3-Protect the environment so that the economic growth and the reduction of the poverty are sustainable in the future.

4-Develop the private sector and re to orient to the government towards those activities in whom is but efficient.

The World Bank grants loans to the Member States or public or deprived institutions that receives guarantees of government to interest rates which they reflect the conditions of the markets of capitals (7% in 1995).

The term of amortization is of 10 to 15 years and the period of grace is d 5 anuses.

The agencies affiliates are three:

The AIF: Association the International of Promotion.

Created in 1960. Objective. Directed to give aid to the developing countries more poor men.

The credits come more from special contributions of the developed countries.

They amortize in 50 anuses. They do not happen interests, they pay a small commission and they have a period of grace of 10 anuses.

Members: All the Member States of BIRF can be member of the AIF.

IFC: Financial corporation the International.

Created in 1956.

Objective: To contribute less to the economic development of the countries developed, by means of loans direct to the private sector.

It invests his bottoms in the productive private companies of the Member States.

In order to enter he is requisite to be member of BIRF.

OMIGI: Multilateral organism of Guarantee of Investments.

Created in 1988. Object: To foment the direct investments in the developing countries being attenuated the barriers of noncommercial character that prevent this investment. Adviser to the Governments to promote the foreign investments. To the 31 of May of 1995, 128 countries were member. The World Bank, puts emphasis in the structural economic reforms. The reason, is that they are convinced that the angular stone of sustainable development and reduction of the poverty, is to redefine the roll of State and to promote the competition and the mechanisms of market.

Structure

The supervising agencies of each country are the meeting of governors and the directory of executives. The meeting of governors, this composed by a governor and substitute appointed by each one of the 178 Member States. The executive directory are 24 executive directors. 5 named by main shareholders (the USA. Japan. Great Britain. Germany. France). And 19 chosen by the governors of the remaining members. President: chosen by a period of 5 anuses and she is the person in charge of the administration of bank.

Directors, managers and vice-president: 3 managing directors exist and 18 vice-presidents.

Financing

The BIRF belongs to the Governments of 178 countries that subscribe the capital according to the number of action that they own. Recuérdese that the participation in the capital determines the votes of each country. Present capital U$S 175,358 million. Subscriber by the countries, paid are U$S 10,825 million. Their operations of credit are financed by:

·         1 - Loans obtained in the markets of world-wide capitals.

·         2 - Capital paid by the countries partners.

·         3 - Benefits nondistributed

·         4 - Repago of the loans.

·         5 - In order to increase the capital, the World Bank is needed 75% the votes of total of members.

 

Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time. GDP per capita is often considered an indicator of a country's standard of living;[2][3] GDP per capita is not a measure of personal income (See Standard of living and GDP). Under economic theory, GDP per capita exactly equals the gross domestic income (GDI) per capita (See Gross domestic income).

GDP is related to national accounts, a subject in macroeconomics. GDP is not to be confused with gross national product (GNP) which allocates production based on ownership.

GDP was first developed by Simon Kuznets for a US Congress report in 1934.[4] In this report, Kuznets warned against its use as a measure of welfare (see below under limitations and criticisms). After the Bretton Woods conference in 1944, GDP became the main tool for measuring a country's economy.[5]

 

 

 

 

Determining GDP

Economics
Economies by country
General classifications
Technical methods
Fields and subfields
Lists

GDP can be determined in three ways, all of which should, in principle, give the same result. They are the product (or output) approach, the income approach, and the expenditure approach.

The most direct of the three is the product approach, which sums the outputs of every class of enterprise to arrive at the total. The expenditure approach works on the principle that all of the product must be bought by somebody, therefore the value of the total product must be equal to people's total expenditures in buying things. The income approach works on the principle that the incomes of the productive factors ("producers," colloquially) must be equal to the value of their product, and determines GDP by finding the sum of all producers' incomes.[6]

Example: the expenditure method:

GDP = private consumption + gross investment + government spending + (exports − imports), or


Note: "Gross" means that GDP measures production regardless of the various uses to which that production can be put. Production can be used for immediate consumption, for investment in new fixed assets or inventories, or for replacing depreciated fixed assets. "Domestic" means that GDP measures production that takes place within the country's borders. In the expenditure-method equation given above, the exports-minus-imports term is necessary in order to null out expenditures on things not produced in the country (imports) and add in things produced but not sold in the country (exports).

Income approach


" sum total of incomes of individuals living in a country during 1 year ."

Another way of measuring GDP is to measure total income. If GDP is calculated this way it is sometimes called Gross Domestic Income (GDI), or GDP(I). GDI should provide the same amount as the expenditure method described below. (By definition, GDI = GDP. In practice, however, measurement errors will make the two figures slightly off when reported by national statistical agencies.)

This method measures GDP by adding incomes that firms pay households for factors of production they hire- wages for labour, interest for capital, rent for land and profits for entrepreneurship.

The US "National Income and Expenditure Accounts" divide incomes into five categories:

  1. Wages, salaries, and supplementary labour income
  2. Corporate profits
  3. Interest and miscellaneous investment income
  4. Farmers' income
  5. Income from non-farm unincorporated businesses

These five income components sum to net domestic income at factor cost.

Two adjustments must be made to get GDP:

  1. Indirect taxes minus subsidies are added to get from factor cost to market prices.
  2. Depreciation (or Capital Consumption Allowance) is added to get from net domestic product to gross domestic product.

Total income can be subdivided according to various schemes, leading to various formulae for GDP measured by the income approach. A common one is:

GDP = compensation of employees + gross operating surplus + gross mixed income + taxes less subsidies on production and imports

GDP = COE + GOS + GMI + TP & M – SP & M

  • Compensation of employees (COE) measures the total remuneration to employees for work done. It includes wages and salaries, as well as employer contributions to social security and other such programs.
  • Gross operating surplus (GOS) is the surplus due to owners of incorporated businesses. Often called profits, although only a subset of total costs are subtracted from gross output to calculate GOS.
  • Gross mixed income (GMI) is the same measure as GOS, but for unincorporated businesses. This often includes most small businesses.

The sum of COE, GOS and GMI is called total factor income; it is the income of all of the factors of production in society. It measures the value of GDP at factor (basic) prices. The difference between basic prices and final prices (those used in the expenditure calculation) is the total taxes and subsidies that the government has levied or paid on that production. So adding taxes less subsidies on production and imports converts GDP at factor cost to GDP(I).

Total factor income is also sometimes expressed as:

Total factor income = Employee compensation + Corporate profits + Proprietor's income + Rental income + Net interest[7]

Yet another formula for GDP by the income method is:[citation needed]


where R : rents
I : interests
P : profits
SA : statistical adjustments (corporate income taxes, dividends, undistributed corporate profits)
W : wages
Note the mnemonic, "ripsaw".

 

Globlal or World Cities

A global city (also called world city or sometimes alpha city or world center) is a city generally considered to be an important node in the global economic system. The concept comes from geography and urban studies and rests on the idea that globalization can be understood as largely created, facilitated, and enacted in strategic geographic locales according to a hierarchy of importance to the operation of the global system of finance and trade.

The most complex of these entities is the global city, whereby the linkages binding a city have a direct and tangible effect on global affairs through socio-economic means.[1] The use of global city, as opposed to megacity, was popularized by sociologist Saskia Sassen in her 1991 work, The Global City: New York, London, Tokyo[2] though the term world city to describe cities that control a disproportionate amount of global business dates to at least the May 1886 description of Liverpool by the Illustrated London News.[3] Patrick Geddes also used the term "world city" later in 1915.[4] Cities can fall from such categorization, as in the case of cities that have become less cosmopolitan and less internationally renowned in the current era, e.g., Alexandria, Egypt; Coimbra, Portugal; and Thessaloniki, Greece.

Economic characteristics



 
 
 
 
 
 
 
 
 
 

Political characteristics



Cultural characteristics



Infrastructural characteristics



 
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