Economics Archives

Geographic Inequality: How Resources & Topography Impact Wealth

When are natural resources a detriment rather than a benefit to a nation? How can the presence of a coastline make a country richer? The geography theory of international inequality argues that differences in the physical locations of countries determine—or at least strongly influence—their economic success. Proponents of this theory point to two main geographical factors: natural resources and topography. Read more to learn about these factors that can lead to geographic inequality among nations.

Linking Culture and Economy: 3 Values That Affect Wealth

Why do Protestant nations generally have more wealth? Why did the American South develop more slowly than the North? It’s no secret that some countries and regions have more wealth than others, but it’s not always obvious why that is. Proponents of cultural theories of inequality argue that three cultural values contribute to whether a nation is rich or poor. These are work ethic, openness to new ideas, and public trust. Read more to learn about the intriguing connection between culture and economy.

Global Wealth Gap Solutions: From Karl Marx to Thomas Sowell

Is the global wealth gap inevitable? Is it possible that we can minimize—or even close—it? Some countries have more wealth than others because of some combination of geographical differences, cultural differences, political differences, and exploitation. Various economic analysts have suggested some ways that nations and peoples can work to close the gap. Keep reading to learn about three proposed global wealth gap solutions.

How Do Politics Affect the Economy of a Nation? 5 Key Factors

How do politics affect the economy of a nation? What internal and external political factors could be in operation? Of course, geography and culture impact a country’s economy. But, politics also play a significant role. When we examine the global wealth gap, we must consider political factors from inside and outside a nation that contribute to its wealth or poverty. Continue reading to learn how politics make a difference in a nation’s economy.

Why Are Some Countries Poor and Others Rich?

Why are some countries poor and others rich? Is it the result of factors and circumstances determined long ago—or of contemporary political and economic decisions? Historians, economists, and others have pondered these questions for centuries. We’ll outline the four causes of the global wealth gap that several of these analysts propose: geographical differences, cultural differences, political differences, and exploitation. Read more to learn why some countries have more wealth than others.

What Is Merger Arbitrage? Profiting From Company Acquisitions

What is merger arbitrage? How does a merger impact share values, and how can you use those changes to your advantage? Merger arbitrage is a strategy where investors take advantage of changing share values when one company acquires or merges with a second company. When shareholders receive new shares in a merger, they often sell those shares at a bargain price, creating an opportunity for special-situation investing. Learn more about what merger arbitrage is with these concepts from Joel Greenblatt’s You Can Be a Stock Market Genius.

The Top 3 Investment Strategies for Beginners (+ Exercise)

What are good investment strategies for beginners? How do you choose investments when you’re just starting out? Investment strategies for beginners include doing original research, value investing in bargain stocks, and focusing on your portfolio. When you’re just starting out, it’s a good idea to gather as much information as you can about potential investments. Learn more about how to choose investments with these tips from hedge fund manager Joel Greenblatt.

Orphan Shares: What They Are & How to Buy Them for a Profit

What are orphan shares? How can you make a profit when a company goes bankrupt? Orphan shares are new stocks emerging from a company’s bankruptcy proceedings. Typically, these shares are owned by creditors who have a strong incentive to sell. Learn more about what orphan equities are and how they can turn a profit with these tips from hedge fund manager Joel Greenblatt.

Ray Kurzweil: Nanobots Could Reshape the World as We Know It

What are nanobots? How might they change the world? Where is nanobot technology today? According to Ray Kurzweil, nanobots could make sweeping changes in manufacturing and medicine. He explains how nanotechnology has the potential to overturn our entire materials-based economy and even eliminate scarcity. Read more to learn about nanobot technology and what Kurzweil sees in our future.

How to Invest in Stub Stocks for a Profit

3 Major Tips From Charlie Munger on Investing

When’s a good idea to invest in stub stocks? When a company recapitalizes, can you make a profit by investing? Stub stocks are stocks revalued after a company’s recapitalization or restructuring. For example, if a company were to repurchase shares from its shareholders, the stub stocks would be the leftover, lower-priced stocks available for purchase afterward. Learn more about how to invest in leveraged companies with stub stocks.