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
|
||||
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.
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.
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.
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.
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.
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.
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
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:
- Wages, salaries, and supplementary labour income
- Corporate profits
- Interest and miscellaneous investment income
- Farmers' income
- 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:
- Indirect taxes minus subsidies are added to get from
factor cost to market prices.
- 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
- Serve as the corporate
headquarter
sites for multinational corporations,
international financial institutions, law
firms, conglomerates, and stock
exchanges that influence the world
economy
- Contribute significant financial capacity/output to
the city's, region's, or even nation's,[6]
Gross domestic product (GDP)
- House the major stock
market indices[7]/market
capitalisation
- Provide a variety of international financial
services,[8]
notably in the FIRE industries, banking,
accountancy,
and marketing
- Appear near the top of cost of
living[9]
Political
characteristics
- Active influence on, and participation in,
international events and world affairs; for example, Beijing,
Berlin,
London,
Moscow,
New
Delhi, Paris, Tokyo, and Washington are capitals of
influential nations.
- Hosting headquarters for international organizations
such as the United Nations (New York
City), the World Bank (Washington, D.C), or NATO
(Brussels).
- A large proper, population of the
municipality (the centre of a metropolitan area, typically several
million) or agglomeration
- Diverse demographic constituencies[10]
based on various indicators:[11]
population, habitat,[12]
mobility,[13]
and urbanisation[14]
- Quality of life standards[15]
or city development
- Expatriate communities
Cultural
characteristics
- Renowned cultural institutions (often with high
endowments), such as notable museums and galleries,
notable opera companies, major ballet companies, orchestras,
notable film centres, and theatre centres. A lively cultural scene,
including film festivals (such as the Toronto International Film
Festival), premieres, a thriving music
scene, nightlife, an opera company, art
galleries, street performers, and annual parades.[citation needed]
- Several influential media organisations with an
international reach, including Thomson
Reuters, Bloomberg, Agence France-Presse, or Associated Press.
- A strong sporting community, including major sports facilities,
home teams in major league sports, and the ability and historical
experience to host international sporting events such as the Olympic
Games, FIFA World Cup, or Grand Slam tennis
events.[16]
- Educational institutions; e.g., renowned
universities, international student attendance,[17]
research facilities
- Sites of pilgrimage
for world religions (for example, Mecca,
Jerusalem
or Rome)
- Cities containing World Heritage Sites of historical
and cultural significance[18]
- Tourism throughout[citation needed]
- City as site or subject in arts and media,
television, film, video games, music, literature, magazines, articles,
documentary[citation needed]
- City as an often repeated historic reference,
showcase, or symbolic actions[citation needed]
Infrastructural
characteristics
- An advanced transportation system that includes
several highways
and/or a large mass transit network offering multiple
modes of transportation (rapid
transit, light rail, regional
rail, ferry,
or bus).
- Extensive and popular[19]
mass transit systems, prominent rail usage,[20]
road vehicle usage,[21]
major seaports
- A major international airport
that serves as an established hub
for several international airlines. Airports with significant
passenger traffic and international
passengers traffic[22]
or cargo movements.
- An advanced communications infrastructure on which
modern trans-national corporations
rely, such as fiberoptics, Wi-Fi
networks, cellular phone services, and other
high-speed lines of communications. For example, Seoul
and Tokyo are known as the digital and technology capitals of the world.[citation needed]
- Health facilities; e.g., hospitals, medical
laboratories
- Prominent skylines/skyscrapers (for example, Hong
Kong, New York City, Shanghai,
Tokyo, Dubai,
Chicago,
Guangzhou,
Bangkok,
Shenzhen,
Singapore)[23]
- Cities' telephone and mail services, airport
flights-range, traffic congestion, availability of water, train
facilities, nearby parks, hospitals, libraries, police stations, etc.
