Article Critiques on Finance Essay Example | Topics and Well Written Essays - 750 words

Article Critiques on Finance - Essay Example Developing countries led by Brazil, Russia, China and India hold most of the world’s foreign exchange reserves, and their share of exports has risen from 20% in 1970 to 435 in 2006. However, as the economic balance of power changes, the balance of political power continues to remain in the West, a situation that cannot continue indefinitely. That changes are imminent can be gauged by the fact that the IMF is already considering some changes in its power structure. Similarly, a UN Security Council that excludes 1/5th of humanity (China, India) or a G7 that excludes China, which holds the worlds largest foreign exchange reserves, cannot stand the test of time. There is bound to be some friction on account of these changes, but overall it will benefit mankind as a whole. In earlier centuries, economic rivalries brought in its wake widespread hostilities, as nations tried to wrest power and widen their spheres of influence as part of the ‘Great Game’. However, that might not be the case in the 21st century, as the US remains the world’s sole military superpower. Dialogue and reliance on international organizations to settle disputes is the preferred approach, though the slow progress of the Doha talks is a cause for concern. Nonetheless, the chances of armed conflict remain negligible, now that geo-economics has overtaken geo-politics as the driver of a country’s foreign policy. As the battle between Boeing’s 787 and Airbus’ A380 heats up, there are indications that the later is in danger of losing the race. Production delays due to inefficient practices, which are politically motivated, are likely to result in at least a two-year delay. This delay could mean the difference between making profits and bankruptcy. It is estimated that the delay, â€Å"will knock a further E 4.8 billion off profits and E 6.3 billion off revenues between 2006 and 2010. The losses could even be higher if airlines that have placed orders for the A380