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These are the user uploaded subtitles that are being translated: 1 00:04:57,223 --> 00:05:01,623 the impacts of you know all the imports and exports and it now 2 00:05:18,863 --> 00:05:23,283 important to GDP as well you know the amount of expenses 3 00:05:14,543 --> 00:05:18,863 effect in terms of global trade and global trade is so 4 00:05:23,283 --> 00:05:26,043 that they have whether in they're in a trade surplus or a 5 00:05:30,683 --> 00:05:37,283 country produces in a way so yeah dollar down when currency 6 00:05:08,343 --> 00:05:11,063 central banks when they affect interest rates you've got to 7 00:05:37,283 --> 00:05:42,603 devalues exporters benefit from cheaper from cheaper goods and 8 00:05:48,443 --> 00:05:51,163 hope you benefit from this lesson and I'll see you in the 9 00:05:11,063 --> 00:05:14,543 understand not only the effect within the economy but the 10 00:05:45,323 --> 00:05:48,443 they're more expensive for foreign nations. Anyways guys I 11 00:03:26,063 --> 00:03:28,263 higher costs can have a substantial impact on the 12 00:04:42,623 --> 00:04:46,423 doing. They love to keep lower rates. Um especially compared 13 00:05:01,623 --> 00:05:04,943 I hope this is something really easy to understand because 14 00:05:04,943 --> 00:05:08,343 you've got you've got to appreciate you know when 15 00:05:26,043 --> 00:05:30,683 trade deficit that's going to highly impact any GDP that the 16 00:05:42,603 --> 00:05:45,323 then when the dollar is up export is enhanced because 17 00:04:29,823 --> 00:04:32,543 that's when you get higher inflation and the currency 18 00:04:39,703 --> 00:04:42,623 An example is Japan that's something that they keep on 19 00:04:46,423 --> 00:04:52,103 to the world so they can have disadvantage over them. Now 20 00:04:09,903 --> 00:04:14,463 does that mean is that America's currencies increased 21 00:04:06,703 --> 00:04:09,903 isn't as devalued as India's currency of course and so what 22 00:04:52,103 --> 00:04:57,223 remember this from a few slides ago we had that we looked at 23 00:04:32,543 --> 00:04:36,663 devalues. So that's the main point. Um and then obviously 24 00:04:25,863 --> 00:04:29,823 interest rates. So it's when you lower interest rates, 25 00:03:55,063 --> 00:03:59,783 rates as compared to $15 from America because the issue is 26 00:04:19,103 --> 00:04:23,583 exporters from India. What this leads to is that countries can 27 00:04:23,583 --> 00:04:25,863 deliberately make their currency weaker through lower 28 00:04:36,663 --> 00:04:39,703 that makes export prices cheaper for customers globally. 29 00:03:41,703 --> 00:03:45,863 down enough. So if somebody from Australia wanted to pay 30 00:04:14,463 --> 00:04:19,103 in value hence why they can't drive prices as far down as 31 00:02:53,363 --> 00:02:56,243 does that mean for the country itself? You got a greater 32 00:03:28,263 --> 00:03:31,143 competitiveness of exports in the international trade 33 00:03:09,643 --> 00:03:13,523 market. So a stronger domestic currency can have an adverse 34 00:02:56,243 --> 00:02:59,643 number of people that are being employed. It stimulates 35 00:03:35,063 --> 00:03:37,943 has a stronger currency, it can be harder for it to be 36 00:03:59,783 --> 00:04:06,703 that America can't devalue its currency or America's currency 37 00:03:50,823 --> 00:03:55,063 example $5 for for a product from India due to the exchange 38 00:03:45,863 --> 00:03:50,823 for a product, they they would have to pay let's just say for 39 00:03:02,963 --> 00:03:07,203 So that's exactly what an economy wants. And here's just 40 00:03:07,203 --> 00:03:09,643 an explanation to how some countries compete in the 41 00:03:17,543 --> 00:03:21,783 also impact exports by having a direct impact on input costs 42 00:02:17,383 --> 00:02:21,263 like the Bloomberg terminal for example but yeah when it comes 43 00:03:37,943 --> 00:03:41,703 competitive in the global market as it can't drive prices 44 00:03:31,143 --> 00:03:35,063 environment. So what does this mean? So firstly, if a country 45 00:02:49,683 --> 00:02:53,363 from a country's factories and industrial facilities. So what 46 00:02:59,643 --> 00:03:02,963 consumer spending and it contributes to economic growth. 47 00:02:38,183 --> 00:02:40,743 producing 48 00:02:46,443 --> 00:02:49,683 are more exports, it means that there is a high level of output 49 00:02:25,063 --> 00:02:27,663 positive trade is going on in the country which allows 50 00:01:49,843 --> 00:01:54,123 investment on business capital goods. Plus government spending 51 00:03:13,523 --> 00:03:17,543 effect on exports and the trade imbalance. Higher inflation can 52 00:02:06,083 --> 00:02:10,423 effect on your GDP. And just a you know you won't ever really 53 00:01:57,883 --> 00:02:01,763 deficit or trade surplus. So depending on how much you 54 00:02:30,903 --> 00:02:34,623 imports than a trade deficit on the other hand is more imports 55 00:02:42,623 --> 00:02:46,443 So what are the impacts of a trade surplus? So when there 56 00:03:21,783 --> 00:03:26,063 such as materials and labour as list as explained before these 57 00:02:10,423 --> 00:02:13,543 need to work this out because it's all done on the data that 58 00:01:32,723 --> 00:01:36,523 something that manufacturers always have to consider. Um so 59 00:02:34,623 --> 00:02:38,183 than exports so the country is consuming more than it's 60 00:02:27,663 --> 00:02:30,903 economy to grow and prosper so that means more exports than 61 00:01:46,403 --> 00:01:49,843 on goods and services. That's one part. Then you've got the 62 00:02:01,763 --> 00:02:06,083 export versus how much you import that will have a massive 63 00:01:30,323 --> 00:01:32,723 And of course we know that's very important you know 64 00:01:54,123 --> 00:01:57,883 on public goods and services and then either your trade 65 00:02:21,263 --> 00:02:25,063 to a trade surplus that mean it's a positive thing so more 66 00:02:13,543 --> 00:02:17,383 you see on trade and economics and Bloomberg and especially 67 00:01:26,923 --> 00:01:30,323 direct impact on input costs such as materials and labor. 68 00:01:42,683 --> 00:01:46,403 what it actually means. So GDP consists of consumers spending 69 00:01:05,483 --> 00:01:09,043 cheaper. So remember how we were talking about when you 70 00:00:50,443 --> 00:00:54,043 exports. So they're essentially purchasing more than they are 71 00:01:09,043 --> 00:01:12,603 devalue your currency you become more competitive because 72 00:00:45,363 --> 00:00:50,443 trade deficit means is that there's more imports than 73 00:01:15,283 --> 00:01:18,803 exactly what some countries deliberately do to make their 74 00:01:36,523 --> 00:01:42,683 yeah. Now just in reference back to GDP and what actually 75 00:01:23,163 --> 00:01:26,923 Uh so high inflation can also impact exports by having a 76 00:00:58,603 --> 00:01:02,523 exports and makes imports more expensive. Conversely a strong 77 00:00:30,963 --> 00:00:34,843 look at since its activity can influence its GDP, its exchange 78 00:01:12,603 --> 00:01:15,283 your prices are a lot cheaper than everyone else. That's 79 00:01:02,523 --> 00:01:05,483 domestic currency hampers exports and makes imports 80 00:01:18,803 --> 00:01:23,163 exports cheaper for the international economy in a way. 81 00:00:54,043 --> 00:00:58,603 producing. Also a weaker domestic currency stimulates 82 00:00:38,243 --> 00:00:41,803 level imports and a growing trade deficit can have a 83 00:00:28,403 --> 00:00:30,963 imports and exports of a country are very important to 84 00:00:34,843 --> 00:00:38,243 rate and its level of inflation and interest rates. A rising 85 00:00:41,803 --> 00:00:45,363 negative effect on a country's exchange rate. So what that 86 00:00:13,763 --> 00:00:18,083 the the breakdown of all the economies and GDP and 87 00:00:24,723 --> 00:00:28,403 that's what we're going to be looking at right now. So the 88 00:00:18,083 --> 00:00:20,643 everything like that. What happens when the currency 89 00:00:20,643 --> 00:00:24,723 devalues how that impacts imports and exports. Uh so 90 00:00:06,283 --> 00:00:09,403 going to be looking a bit more into implications of imports 91 00:00:09,403 --> 00:00:13,763 and exports. So we previously mentioned that you know during 92 00:00:02,463 --> 00:00:06,283 Yes guys, welcome to the next video. So in this one we're 93 00:05:51,163 --> 00:05:53,563 next one. 8552

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