Impact of Economic Globalization on Business, Economic Development, Trade and Investment

Globalization in Economics: Impacts on Economic Development, Trade and Investment

Globalization has become an increasingly prominent feature of the world economy in recent decades. This article provides an in-depth look at the meaning of globalization, its major drivers, and its impacts on economic growth, development, income inequality, international trade, and investment.

Table of Contents

• Introduction to Economic Globalization

• Drivers of Economic Globalization

• Impacts of Globalization on Economic Growth

• Globalization and Economic Development

• Globalization's Effects on Income Inequality

• Role of Globalization in International Trade

• Globalization and Foreign Direct Investment

• Benefits and Drawbacks of Economic Globalization

• Key Takeaways

Introduction to Economic Globalization

Economic globalization refers to the increasing integration of national economies through cross-border flows of goods, services, technology, and capital. It involves the spread of economic activities across political boundaries and the opening up of domestic markets to foreign competition.

Some key examples of economic globalization include:

• The growth of global financial markets and cross-border capital flows

• The expansion of foreign direct investment by multinational corporations

• The reduction of barriers to international trade through tariff cuts and free trade agreements

• The outsourcing of business functions to other countries

• The spread of technologies and ideas across borders

The pace of global economic integration has accelerated since World War II, driven by advancements in transportation, communications, and information technologies. Globalization has interconnected the world economy more tightly than ever before.

Drivers of Economic Globalization | Example of Globalization

Several key factors have enabled the process of global economy and the increasing interdependence of the world economy:

Technological Progress

Advances in transportation, communications, and information technologies have dramatically reduced costs and barriers associated with the international exchange of goods, services, capital, and ideas. Cheaper air freight, real-time digital communications, and the internet have made cross-border interactions much faster and more efficient.

Trade Liberalization

Countries have progressively lowered tariffs and eliminated non-tariff barriers to trade through multilateral, regional, and bilateral trade agreements. The General Agreement on Tariffs and Trade (GATT) and its successor, the World Trade Organization (WTO), have been instrumental in promoting trade liberalization. Free trade agreements like NAFTA have also accelerated globalization.

Foreign Direct Investment

The global expansion of multinational corporations and their investments in facilities and operations overseas has fueled the internationalization of production and business activities. Countries have eased restrictions on foreign direct investment (FDI).

Improvements in Infrastructure

Investments in ports, roads, airports, power grids, and telecom networks in developing nations have facilitated their participation in global trade and investment flows. Better infrastructure reduces the costs of transporting goods and transmitting information across borders.

Impacts of Globalization on Economic Growth

Globalization has contributed to increased international trade and financial flows, which have largely boosted long-run economic growth rates around the world. Key ways in which globalization has accelerated growth include:

• Access to larger markets: By lowering trade barriers, globalization enables firms to reach larger markets beyond domestic borders. This provides greater scope for specialization and economies of scale.

• Spread of technologies: The transmission of technologies and innovations across borders has allowed countries to achieve productivity gains and faster growth. Developing countries can import advanced technologies.

• Increased capital flows: Financial globalization provides developing nations access to external capital like foreign direct investment, which augments domestic savings and investments. This expands productive capacity.

• Greater competition: Exposure to international competition creates incentives for domestic firms to become more efficient and innovative in order to remain competitive. This dynamic effect raises productivity.

However, the growth benefits of globalization are not necessarily evenly distributed within and across countries. There are also risks associated with potential economic shocks spreading more quickly across globally integrated economies.

Globalization and Economic Development

Globalization has generated significant opportunities for economic research and development but has also created new challenges for developing countries seeking to gain from global markets.

Positive impacts on development:

• Export opportunities for developing country firms, especially in manufacturing and services

• Inflows of advanced technologies, management expertise, and training

• Access to larger flows of external finance through global capital markets

• Ability to leverage infrastructure in other countries by linking into global value chains

Potential drawbacks:

• Increased volatility and exposure to external economic shocks

• Risks of marginalization of least-developed countries with weak institutions and infrastructure

• Perpetuation of commodity dependence in countries reliant on exports of raw materials

• Possible hollowing out of domestic industries unable to compete with imports

• Risks of losing control over domestic economic policies

An important challenge is translating integration into global markets into genuine development progress by building domestic productive capacities. This requires complementary investments in human capital, institutions, and infrastructure.

Globalization's Effects on Income Inequality

The distributional impacts of globalization across and within countries have been contentious issues. In principle, the overall gains from trade arising from specialization and exchange should make it possible to compensate any losers and still be better off. But increased economic inequality has accompanied globalization in practice:

• Inequality between countries: Accelerated growth in emerging markets like China and India has narrowed income gaps with advanced economies. But least developed countries at early stages of development have not kept pace and moved to economic downturn.

• Inequality within countries: Globalization has been associated with rising skill premiums in advanced and developing countries, as demand has grown for workers with higher education and specialized skills that are complementary to accessing global markets. This has exacerbated wage disparities.

• Winners vs. losers: Low-skilled workers in advanced economies face wage pressures from having to compete with cheaper labor abroad. However, higher-skilled workers, owners of capital, and consumers benefit from access to more affordable goods and new export opportunities.

• Geographic disparities: Urban, trade-oriented regions within countries often see bigger gains from globalization than more rural areas reliant on traditional industries vulnerable to import competition.

Addressing inequality requires complementary policies for redistribution, skills upgrading, and assistance for adversely affected communities to help spread gains more evenly.

Role of Globalization in International Trade

A defining aspect of globalization is the exceptional growth of international trade flows relative to GDP. Merchandise exports worldwide grew by an average of 6 per cent per year in real terms from 1990 to 2000, twice the rate of world output. Key ways globalization has transformed trade include:

• Rapid growth in trade in intermediate goods: Complex global value chains have emerged, linking production across multiple countries. Inputs and semi-finished products now crisscross borders for assembly and processing.

• Expansion of trade in services: Services account for rising shares of both exports and foreign investment for many countries. Transportation, travel, financial services, IT services, and intellectual property have become tradable across borders.

• The emergence of China as an export powerhouse: China leveraged its comparative advantage in low-cost manufacturing to become the largest global exporter, with world export market share rising from less than 2% in 1990 to around 14% in 2015.

• Proliferation of free trade agreements (FTAs): The surge in bilateral and regional trade agreements has further boosted international commerce, with over 300 FTAs now in force. These complement global trade rules under the WTO.

Globalization and Foreign Direct Investment

An integral feature of economic globalization has been the expansion in cross-border investment flows as multinational corporations (MNCs) set up production, distribution and service facilities overseas. Key patterns include:

• Global FDI outflows rose from under $200 billion in 1990 to over $1.5 trillion in 2020, vastly outpacing growth in international trade and output.

• Almost two-thirds of global FDI outflows now originate from developing and transition economies like China and India.

• Over 80 per cent of the value added of MNCs is linked to their foreign affiliates rather than their domestic production.

• Services account for two-thirds of global FDI stock, including finance and ICT services, along with wholesale and retail distribution services.

• Intra-company transfers of resources, technology and personnel within multinational networks account for a huge share of global trade and investment.

Foreign investment and associated technology spillovers can provide a key boost to developing country growth. But countries need sound institutions and skilled workforces to maximize benefits.

Benefits and Drawbacks of Economy Globalization

Globalization generates both advantages and disadvantages:

Potential benefits include:

• Faster diffusion of technologies and management best practices that raise productivity

• Greater economies of scale and cost savings from producing at optimal locations accessible to broader markets

• Increased competition promotes efficiency and innovation for greater economic goals

• More investment resources flow to developing countries, raising growth

• Expanded opportunities for exporting firms

• Cheaper imports increase purchasing power and living standards

• Globalization has also the capability to promote communications and connections and provide social and cultural enrichment

Potential drawbacks include:

• Volatility from closer integration spreads economic shocks faster

• Risk of marginalization for countries and regions with poor infrastructure

• Lower labor costs and adjustment costs as production shifts locations

• Distributional impacts like rising income inequality described earlier

• Constraints on policy autonomy from global rules and regulations

• Environmental degradation from transport emissions and industrial pollution

On balance, most economists argue that the growth and development benefits outweigh the costs for most countries over the long run. However, realizing the gains from globalization often requires complementary policies for workforce adaptation, social safety nets, and environmental protection.

Key Takeaways

• Globalization involves growing economic interdependence between countries through cross-border flows of goods, services, capital and technology.

• Key drivers include technological progress, trade liberalization policies, foreign direct investment, and infrastructure development.

• Globalization has contributed to higher economic growth worldwide through channels like expanded trade, investment flows, and technology diffusion.

• However, distributional impacts have included rising inequality both across and within countries. Developing countries also face risks of marginalization.

• Globalization has enabled increased international specialization and trade, especially in intermediate goods and services.

• Foreign direct investment flows have surged as multinational corporations globalize production networks.

• Globalization generates advantages such as increased competition, economies of scale, faster innovation, and financial resources for developing countries. But it also creates challenges like external shocks, distributional tensions, and environmental impacts.

Frequently Asked Questions

What are the main indicators of economic globalization?

Key quantitative indicators of globalization include the shares of trade, foreign investment and capital flows in national output, as well as the proportion of incomes earned by multinational corporations overseas. Declining international transport costs and tariffs, as well as the growth of global value chains, also signify deepening economic integration.

What are the benefits of globalization for developing countries?

Developing countries can benefit from globalization through exports to larger overseas markets, inflows of advanced technologies and managerial expertise, and increased inward foreign direct investment, which brings capital, skills and jobs. However, realizing these gains requires building domestic capacities in infrastructure, institutions, and human capital.

Does globalization benefit some groups more than others within countries?

Yes, the income gains from globalization are often unevenly distributed within countries. Groups that tend to benefit more include higher-skilled workers, large corporations, and urban regions with strong trade ties. Lower-skilled workers and rural communities face greater pressures from import competition and may be disadvantaged by globalization.

How has digital technology impacted globalization?

Digital technologies like the internet, artificial intelligence, 3D printing, and blockchain are transforming global economic integration. They enable more services to be traded globally and facilitate the coordination of geographically dispersed supply chains. Digital platforms allow even small firms to access international markets. The share of digitally deliverable services in global trade has risen sharply.

What role has China played in globalization?

China's unprecedented economic growth and large labor force have made it a major driver of globalization. By leveraging its comparative advantage in manufacturing to become the "factory of the world", China now accounts for around 14% of global merchandise exports. China is also increasingly influential in international finance, investment and innovation. The Belt and Road initiative aims to extend China's regional infrastructure connections and trade ties, further accelerating globalization. 

US GDP by State in 2023 | Gross Domestic Product of US Economy | Insights from the Bureau of Economic Analysis (BEA)

US States by GDP in 2023 | Gross Domestic Product Per State in 1st Quarter 2023

Introduction to Gross Domestic Product(GDP) by States in the United States

The United States is the world's largest economy, with a gross domestic product (GDP) of over $23 trillion in 2023. This massive GDP is comprised of economic output from all 50 states and the District of Columbia.

Some states have much larger economies and GDP than others. The top states by GDP represent a significant share of total U.S. economic production.

This article will rank all 50 states and D.C. by their GDP in 2023. It will highlight the states with the highest GDPs down to the lowest. GDP per capita and other relevant economic factors will also be analyzed.

Overview of GDP Per Capita of US States in 2023

Gross Domestic Product (GDP) measures the total value of all goods and services produced within a state or country during a specific period. It is the foremost indicator of the size and health of an economy.

For U.S. states, GDP represents the state's total economic output. It encapsulates all private and public consumption, investments, net exports, and government spending.

The Bureau of Economic Analysis (BEA) provides official GDP data for U.S. states and metro areas. GDP by state is derived from various economic indicators, including personal income, corporate profits, and tax revenue data.

BEA's numbers for GDP by state in 2023 are estimates based on the latest available data through the 1st quarter of the year. GDP totals for all 50 states will change as more data becomes available.

Below, we rank the states by their real GDP in billions of chained 2012 dollars, the metric used by BEA to account for inflation.

Ranking of U.S. 50 States by GDP in 2023

1. California - $3.51 trillion

California boasts the largest economy of any state in 2023, with a GDP of $3.51 trillion. This massive GDP makes California alone the 5th largest economy in the world.

The state economy is highly diversified but relies heavily on information technology, financial services, real estate, tourism, and entertainment. Silicon Valley drives significant tech innovation and economic growth.

2. Texas - $2.13 trillion

Texas has the second-highest GDP among states at $2.13 trillion. The Lone Star State has a booming economy fueled by natural gas and oil production, biomedical research, aerospace, and manufacturing. Texas' business-friendly tax policies attract major significance.

3. New York - $1.94 trillion

New York's GDP amounts to $1.94 trillion, landing it in 3rd place. Wall Street in NYC anchors the state's sizable finance and banking sector. New York also excels in media, real estate, healthcare, retail, and tourism.

4. Florida - $1.35 trillion

Florida holds the 4th spot with a GDP of $1.35 trillion. Tourism, real estate, financial services, construction, and healthcare drive economic growth. Florida has no state income tax, which spurs business activity.

5. Illinois - $1.01 trillion

Illinois takes the #5 position with its GDP of $1.01 trillion. The Land of Lincoln has a diverse economic base, including manufacturing, biotech, green energy, aerospace, and food processing. Chicago is a central financial hub and freight transport Centre.

6. Pennsylvania - $890 billion

Pennsylvania's $890 billion GDP makes it #6. Manufacturing, banking, healthcare, biotech, natural gas production, and agriculture are significant contributors. The state is a critical hub for technology innovation and development.

7. Ohio - $724 billion

At #7 is Ohio, with a GDP of $724 billion. Manufacturing, financial services, healthcare, aerospace, polymers, agriculture, and shale oil/gas production fuel the state's economy. Ohio is a central logistics hub with extensive freight rail networks.

8. New Jersey - $683 billion

New Jersey holds the 8th spot with a $683 billion GDP. Pharmaceutical manufacturing and chemical production drive growth along with finance, I.T. services, and retail. The state benefits from its close ties to NYC's economic activity.

9. Washington - $665 billion

Washington's $665 billion GDP places it at #9. Aerospace manufacturing led by Boeing, plus software and tech through Microsoft, drive the state's dynamic economy. Retail, tourism, and green energy also contribute significantly.

10. North Carolina - $642 billion

North Carolina rounds out the top 10 with a GDP of $642 billion. The state has a diverse, fast-growing economy led by finance, technology, pharmaceuticals, manufacturing, and agriculture. Several significant universities also boost economic activity.

11. Massachusetts - $640 billion

Massachusetts comes in at #11 with a GDP of $640 billion. Education, biotech, finance, and healthcare are significant drivers, along with advanced manufacturing and technology near Boston. Tourism also contributes significantly.

12. Georgia - $634 billion

Georgia holds the 12th spot with a GDP of $634 billion. Dominant sectors include financial services, logistics, manufacturing, business services, agriculture, and tourism. Atlanta is home to several Fortune 500 corporate headquarters.

13. Michigan - $572 billion

At #13 is Michigan and its $572 billion GDP. Auto manufacturing, agriculture, finance, medical research, and green energy production lead the state's economy. Tourism centred around the Great Lakes also provides a boost.

14. Virginia - $565 billion

Virginia holds 14th place with a $565 billion GDP. The state has a diverse economy led by government contracting, financial services, shipbuilding, and telecom/tech. Tourism sites near D.C. also fuel growth.

15. Maryland - $456 billion

Maryland comes in 15th with a GDP of $456 billion. The state thrives on financial services, defence contracting, I.T. services, biotech research, tourism, and healthcare. Proximity to federal agencies provides a significant upside.

16. Minnesota - $412 billion

At #16 is Minnesota and its $412 billion GDP. Manufacturing, agriculture, healthcare, finance, and retail are vital industries. Minnesota is also home to significant iron ore and timber production, supporting growth.

17. Colorado - $406 billion

Colorado holds the 17th position with a GDP of $406 billion. Aerospace, renewable energy, biotech, and tourism help drive the Centennial State's diverse, dynamic economy. Finance, healthcare, and tech are also significant contributors.

18. Indiana - $404 billion

Indiana takes the #18 spot with a GDP of $404 billion. Manufacturing, including steel/auto production, pharmaceuticals, finance, retail, healthcare, and logistics, lead the state's economy. Agriculture also plays a sizable role.

19. Arizona - $399 billion

Arizona holds 19th place with its $399 billion GDP. Key industries include aerospace/defense, semiconductor manufacturing, copper mining, healthcare, tourism, and financial services. The state's economy is rapidly expanding.

20. Tennessee - $389 billion

Tennessee rounds out the top 20 with a GDP of $389 billion. Key sectors include finance, healthcare, automotive manufacturing, agriculture, and tourism. Tennessee's lack of income tax draws significant corporations.

21. Missouri - $353 billion

Missouri comes in at #21 with a GDP of $353 billion. Manufacturing, finance, biotech, transportation, retail, and farming/agribusiness drive the Show Me State's economic output. Tourism centred on sports also provides a boost.

22. Wisconsin - $350 billion

Wisconsin holds the 22nd spot with its $350 billion GDP. Agriculture, manufacturing, healthcare, finance, and tourism/recreation are significant contributors. The state is a leading U.S. dairy producer and food processing hub.

23. Connecticut - $298 billion

Connecticut takes 23rd place with a GDP of $298 billion. Finance, defence manufacturing, pharmaceuticals, tourism, and scientific services lead the state's economy. Connecticut benefits significantly from its proximity to New York City.

24. Louisiana - $290 billion

At #24 is Louisiana and its $290 billion GDP—petroleum refining, natural gas production, petrochemical manufacturing, and shipping drive output. Agriculture, biotech, and tourism also provide support.

25. Kentucky - $233 billion

Kentucky holds the 25th spot with a GDP of $233 billion. Manufacturing, including auto production, agriculture, livestock, tourism, coal mining, and tobacco products are major state industries.

26. Alabama - $230 billion

Alabama comes in at 26th with a GDP of $230 billion. Key sectors include manufacturing, retail, healthcare, banking, automotive production, forestry, and agriculture. The state is home to several expanding aerospace facilities.

27. Oregon - $226 billion

Oregon takes the 27th position with its $226 billion GDP. High-tech manufacturing, agriculture, timber production, tourism, and renewable energy drive the state's diverse economy. Nike and Intel provide a significant presence.

28. South Carolina - $226 billion

At #28 is South Carolina, with a GDP of $226 billion. Manufacturing, tourism, agriculture, logging, and e-commerce sustain growth. Major corporations like BMW and Boeing have a sizable presence in the state.

29. Iowa - $205 billion

Iowa holds 29th place with a GDP of $205 billion. Agriculture, biosciences manufacturing, finance, insurance, and renewable energy production lead the Hawkeye State's economy. Pork and corn production are strong suits.

30. Oklahoma - $204 billion

Oklahoma comes in at #30 with a GDP of $204 billion. Key industries include petroleum, natural gas, aerospace, telecom, manufacturing, healthcare, and agriculture. The state economy is strengthening amid energy sector expansion.

31. Utah - $187 billion

Utah holds the 31st position with a GDP of $187 billion. Technology, financial services, tourism, mining, and petroleum production drive economic activity. Rapid population and job growth are bolstering the state's output.

32. Kansas - $173 billion

At #32 is Kansas and its $173 billion GDP. Manufacturing, finance, petroleum production, agriculture and biofuels lead the way. Kansas is a major producer of wheat and aeroplanes from top employers like Textron Aviation.

33. Nevada - $172 billion

Nevada comes in 33rd with a GDP of $172 billion. Tourism, gaming, and conventions centred on Las Vegas and Reno dominate the state's economy. Mining and healthcare also contribute significantly.

34. Arkansas - $149 billion

Arkansas holds the 34th spot with a GDP of $149 billion: poultry/egg production, soybean farming, forestry, finance, and tourism drive output. Walmart's corporate headquarters provides a significant presence in the state.

35. Mississippi - $129 billion

Mississippi takes 35th place with a GDP of $129 billion. Agriculture, manufacturing, oil/gas production, gaming, and shipbuilding are vital industries. Tourism centred on blues music history also provides support.

36. Nebraska - $127 billion

At #36 is Nebraska and its $127 billion GDP. Agriculture leads the way, with the state being a top producer of beef, corn, soybeans, and pork. Manufacturing, telecommunications, and insurance also contribute.

37. New Mexico - $107 billion

New Mexico holds the 37th position with a GDP of $107 billion. Oil and natural gas production, government labs, tourism, and agriculture are central economic pillars. Expanding aerospace facilities provide upside.

38. Idaho - $93 billion

Idaho comes in at #38 with a GDP of $93 billion—agriculture, mining, timber, manufacturing, and tourism drive output. The state is a major producer of potatoes, trout, and dairy products.

39. Rhode Island - $67 billion

At #39 is Rhode Island and its $67 billion GDP. Healthcare, education, biotech, and financial services lead the state's economy. Tourism centred around beaches, and Newport also provides a boost.

40. Maine - $66 billion

Maine holds 40th place with a $66 billion GDP. Forestry/timber, agriculture, fishing, shipbuilding, and tourism are significant contributors. The state is seeing growth in professional services and green energy.

41. Hawaii - $103 billion

Hawaii takes the 41st spot with its $103 billion GDP. Tourism makes up the most significant chunk of economic activity. Defence, agriculture, and fishing also provide support. The state's economy is expanding but faces geographic constraints.

42. New Hampshire - $92 billion

New Hampshire comes in at #42 with a GDP of $92 billion. High-tech manufacturing, tourism, financial services, and agriculture lead the way. The state has no sales tax, which helps attract businesses.

43. West Virginia - $80 billion

West Virginia holds 43rd place with a GDP of $80 billion. Coal mining, natural gas production, manufacturing, chemicals, timber, and tourism are significant contributors. Government spending also props up the state's economy.

44. Delaware - $79 billion

At #44 is Delaware, with a GDP of $79 billion. Dominant industries include banking/finance, pharmaceuticals, chemical production, agriculture, biotech, and tourism. Delaware is a famous state for incorporating businesses.

45. Vermont - $37 billion

Vermont takes the 45th spot with a GDP of $37 billion. Manufacturing, agriculture, tourism, finance, and food/beverage production lead the way. IBM is Vermont's largest private employer.

46. Alaska - $56 billion

Alaska comes in at #46 with a GDP of $56 billion. Petroleum extraction and refining account for most economic activity: fishing, tourism, mining, and forestry round out the state's major industries.

47. South Dakota - $55 billion

South Dakota holds 47th place with a $55 billion GDP. Key sectors include finance, manufacturing, healthcare, and agriculture/livestock. Tourism centered on Mount Rushmore also bolsters the economy.

48. North Dakota - $55 billion

At #48 is North Dakota and its $55 billion GDP. Petroleum, natural gas production, agriculture, and high-tech manufacturing are driving forces. North Dakota saw rapid growth amid the fracking boom.

49. Wyoming - $43 billion

Wyoming takes the 49th position with a GDP of $43 billion. Mineral extraction, including coal, oil, and natural gas, dominates economic activity. Tourism centered on Yellowstone also contributes.

50. Montana - $55 billion

Montana comes in 50th with a GDP of $55 billion. Key industries include agriculture, ranching, oil/gas production, mining, and tourism. The state's economy is gaining strength across multiple sectors.

51. District of Columbia - $152 billion

The District of Columbia has a GDP of $152 billion, which would rank it #31 compared to states. Professional services and government agencies concentrated in D.C. drive its economic engine. Tourism also provides a sizable benefit.

Conclusion

Despite having the world's largest economy, U.S. states vary widely in the size and strength of their economic output. GDP numbers for 2023 show states like California, Texas and New York with trillion-dollar economies, while others have outcomes below $100 billion.

Moving forward, broader U.S. economic performance, along with local industry changes, will impact states differently. Overall, monitoring GDP by state provides critical insights into the health, growth, and diversity of state and regional economies. Comparing outputs and GDP per capita can pinpoint strengths, weaknesses, and emerging opportunities.

Key Takeaways

• California has the highest GDP among states at $3.51 trillion, followed by Texas, New York, Florida, and Illinois in the top five.

• Top states by GDP, like California and Texas, would rank among the world's ten largest economies on their own.

• The District of Columbia, at $152 billion, would rank #31 compared to state GDP totals for 2023.

• The lowest GDP states include Montana, Wyoming, North Dakota, and South Dakota, but all still produce vital economic output.

• State GDP can expand or contract each year, with Texas, California, and others projected among the fastest-growing state economies.

Frequently Asked Questions

What is GDP by state?

Gross domestic Product by state measures the total value of all goods and services produced by a state's economy in a set period. It encapsulates all private and public consumption, government spending, investments, and net exports.

What state has the highest GDP in 2023?

California has the highest GDP among states at $3.51 trillion. Texas, New York, Florida, and Illinois round out the top five states by GDP.

What is the GDP of the United States?

US GDP is estimated at over $23 trillion in 2023, making it the world's largest economy. This includes the combined GDP contributions from all 50 states and Washington, D.C.

Which states have the smallest GDP?

The states with the lowest GDPs in 2023 include South Dakota, North Dakota, Wyoming, and Montana. But even these states contribute billions in economic output annually.

How is each state's GDP calculated?

State GDP is calculated by the Bureau of Economic Analysis using state personal income data, tax information, corporate profits, and other economic indicators that encompass all goods and services produced. 

JPMorgan Chase Global Finance & Business Management Analyst Program

JP Morgan Global Finance and Business Management Internship - JP Morgan Chase Business Management Analyst Program Insights Programs

Are you interested in pursuing a career in global finance and business management? Are you seeking an internship to gain hands-on experience at a top financial institution? The JP Morgan Global Finance and Business Management Internship program offers unmatched insights into the world of global finance along with tremendous professional development.

As a summer analyst intern at JPMorgan Chase, you will work on critical projects and collaborate with top-tier professionals to influence and shape strategic business decisions and initiatives. This article provides an in-depth look at the JP Morgan global finance and business management internship program, key responsibilities, skills required, benefits, application process, and tips to help you land this coveted internship opportunity.

An Overview of JP Morgan's Global Finance and Business Management  Summer Internship

The JP Morgan global finance and business management summer analyst internship is a 10-12 weeks program to provide mentoring and hands-on experience across their international finance division.

As an intern, you will be placed as a member of one of the finance teams and allowed to make meaningful contributions while developing your professional expertise in a dynamic, fast-paced environment.

The role entails supporting the firm's global businesses by creating meaningful analysis and reporting supporting the integrity and validity of financial statements and controls over transaction cycles. Interns are responsible for ensuring the integrity of large-scale programs comprised of multiple projects and contributing to the success of JP Morgan's worldwide businesses.

The program provides access to senior business leaders and the ability to collaborate with top-tier professionals across JP Morgan to influence and shape critical business decisions and initiatives that support the firm's global operations.

Key Responsibilities of a JP Morgan Global Finance Management Intern

As a global finance and business management intern, your key responsibilities will include:

• We support the finance teams in analyzing and reporting business performance to optimize and drive key initiatives.

• We continually identify, escalate and mitigate business risks to improve JP Morgan's worldwide operations.

• Helping drive strategic decisions by analyzing data and creating financial models.

• We are coordinating with partners across the global businesses to provide advisory services.

• We ensure the integrity and validity of financial reporting, statements, controls and procedures.

• It monitors large-scale, multi-project programs supporting JP Morgan's global business operations.

• We are participating in training, networking and professional development opportunities.

Skills and Qualifications Required

To be successful in the JP Morgan global finance and business management internship role, you need to demonstrate:

• Interest in financial management, analysis, reporting, and global business operations.

• Strong analytical abilities and attention to detail.

• Excellent quantitative skills and proficiency in financial modelling.

• Ability to exercise sound judgement and make decisions.

• Strong interpersonal and communication skills.

• Leadership qualities and capacity to manage multiple projects.

• Knowledge of auditing processes and financial regulations.

• Proficiency in MS Excel, financial databases and BI tools.

• Ability to prioritize and multi-task in a fast-paced environment.

Key Benefits of the Global Finance and Business Management Internship

As a summer analyst intern in JP Morgan's global finance division, you stand to gain tremendous benefits, including:

• Hands-on experience supporting an international financial institution's essential finance functions.

• Opportunity to apply classroom knowledge to real-world business settings.

• We are developing expertise in financial analysis, business intelligence, data modelling, forecasting, risk management and business optimization.

• We are working directly with and learning from senior finance leaders and professionals at JP Morgan.

• We are building a solid professional network and relationships within the firm.

• I am gaining insights into finance career paths and roles such as FP&A, audit, risk management, etc.

• Potential for a full-time job offer from JP Morgan post internship.

• Competitive stipend and other benefits during the program.

Eligibility Criteria and Application Process

The JP Morgan global finance and business management internship program is open to undergrad students pursuing a major in finance, business, accounting, economics or STEM fields in their penultimate year.

To be eligible, you must:

• Be enrolled in a 4-year undergraduate course with a Spring/Summer 2024 graduation timeline.

• Have a solid academic track record with a minimum GPA of 3.5.

• Have authorization to work in the country you are applying for.

• Be willing to relocate and work full-time for the duration of the internship.

The application process involves:

• Online application - Submit your resume, cover letter, transcripts and other required information.

• Video/Phone interview - If shortlisted, you will have 1-2 rounds of interviews.

• Assessment Centre - This comprehensive 1-day assessment involves case studies, group exercises, panel interviews and fit interviews.

• Offer - Selected candidates receive offer letters typically by October/November.

How to Stand Out and Land the Coveted Internship

Competition is intense for the limited JP Morgan global finance and business management internship spots. Here are some tips to help your application stand out:

• Have a strong understanding of markets and the finance industry. Stay updated on trends.

• Demonstrate a passion for finance. Be able to articulate why you are interested in the field.

• Have relevant experience such as finance internships, leadership roles, projects, etc.

• Showcase data analytics, shape critical decisions and initiatives, financial modelling and technical skills.

• Prepare stories that highlight your leadership, collaborative and problem-solving abilities.

• Show the ability to adapt to ambiguity and manage dynamic situations.

• Exhibit communication skills, intellectual curiosity and maturity, and adviser to business and group.

• Convey your short and long-term career goals aligned with the internship.

• Research the firm's culture and values. Assess your fit.

• Craft your resume, cover letter and interviews to highlight your relevant qualifications prominently.

Conclusion

The JP Morgan global finance and project management summer analyst internship provides unmatched experience with mentoring and professional development opportunities. By managing complex projects, supporting critical business initiatives and collaborating with senior leaders, it prepares you for a career in global finance.

Suppose you have a solid academic background, analytical and technical skills, leadership potential, and interest in optimizing worldwide business performance. In that case, the JP Morgan global finance internship is the right step to propel your career. Use the tips to create an outstanding application and land your dream role!

How does Supersedeas Bond Work? | Appeal Bond | Surety Bond

How Supersedeas Bond Work | What is an Appeal Bond

A supersedeas bond, sometimes called an appeal bond, is a specialized type of surety bond that defendants purchase when filing an appeal on a court judgment. Supersedeas bonds temporarily delay the plaintiff's ability to enforce the decision while the appeal is pending. This allows the appellant time to go through the appeals process before paying damages or taking court-ordered actions.

How Do Supersedeas Bonds Work?

Supersedeas bonds function by providing security to guarantee the appellant will fulfil the terms of the judgment if their appeal ultimately fails. Here is an overview of how these important bonds work:

• Plaintiff awarded favorable judgment - In the initial court case, the plaintiff wins a judgment against the defendant. This may include monetary damages or orders to take specific actions.

• Defendant appeals the judgment - The losing defendant appeals the unfavorable decision to a higher court. This pauses the plaintiff's ability to enforce the decision right away.

• Defendant purchases a supersedeas bond - To delay the judgment during the appeal, the defendant purchases a supersedeas bond from a surety company.

• The bond guarantees payment if the appeal is lost - If the defendant fails the request, the bond ensures they will pay the judgment. The plaintiff can collect money from the surety company secured by the glue.

• Bond returns if the defendant wins - If the appeals court overturns the initial judgment in the defendant's favor, the posted bond collateral is returned to them.

In summary, a supersedeas bond allows appellants to press pause on an adverse judgment while their appeal goes through the court system. If upheld on appeal, the bond protects the plaintiff by securing funds to fulfil the decision.

When are Supersedeas Bonds Required?

The specific rules surrounding how to obtain a supersedeas bond vary by jurisdiction. Generally, they are mandated when a defendant wants to delay a judgment while filing an appeal.

Here are some common situations when these bonds are likely required:

• Appealing money judgments - If the initial decision awarded monetary damages to the plaintiff, posting a bond allows the defendant to delay payment during the appeal.

• Appealing injunctive relief - When the judgment requires the defendant to take or refrain from certain actions, a bond allows delaying compliance with the order during the appeal.

• Appealing final civil judgments - In civil cases between private parties, a bond is usually required to stay enforcement during an appeal. This includes contract disputes, personal injury lawsuits, and malpractice cases.

• High risk of non-payment - If the significant concern is that the defendant won't pay the judgment after losing an appeal, posting a bond may be mandatory.

• Judicial discretion - The presiding judge decides whether a superseding bond is required to delay enforcement while appealing a judgment.

In most civil cases, if a defendant wants to postpone a judgment while appealing, posting a supersedeas bond is legally required. This secures the judgment amount for the plaintiff if the appeal fails.

Consequences of Not Filing a Supersedeas Bond

If an appellant fails to file a superseding bond when required, the stay of the initial court judgment will be dissolved. This allows the plaintiff to take immediate action to enforce the terms of the decision.

Here are some potential consequences if a proper bond is not secured:

• Assets can be seized - If the judgment awarded monetary damages, the plaintiff can work with law enforcement to hold bank accounts, property, or other assets to satisfy the judgment.

• Court orders take effect - If the initial judgment included injunctive relief, those mandates to take specific actions or constraints immediately go into effect without a bond.

• An appeal may be dismissed - The appeals court can dismiss the appeal and let the initial judgment stand if the appellant does not secure a bond.

• Contempt charges possible - Not complying with court orders due to lack of bond may result in civil or criminal contempt charges.

• Attorney's fees awarded - The plaintiff's attorneys may file to recoup all legal costs from collection efforts without a bond.

In summary, not securing a required supersedeas bond can deflate the appellant's attempt to delay enforcement while appealing.

How is the Bond Amount Determined?

The required dollar amount of a supersedeas bond depends on the specifics of each case and governing laws. Generally, the amount is tied to the monetary terms defined in the initial judgment.

Here are some common methods used to calculate the bond sum:

• Equal to full judgment - In many cases, the total bond amount equals the full judgment sum awarded, including any damages, fees, and costs.

• 125-150% of judgment - Some jurisdictions require the bond amount to be set at 125-150% of the judgment value. This provides extra protection to cover potential added costs during the appeal.

• Sufficient to fully secure - If there is a significant risk of non-payment, the court may order the bond amount to be adequate to fully block the expected payout. This often exceeds the original judgment value.

• Capped at defined limit - Certain states limit maximum bond amounts, such as $25 million. The required bond will be lower than the judgment or the capped amount.

• Judicial discretion - The judge has significant control in setting an appropriate bond amount for injunctions or complex cases with non-standard judgments.

The goal is to set the bond amount high enough to fully cover the expected payout if the appeal fails while being reasonable.

What Types of Collateral Can Back a Supersedeas Bond?

Because supersede bonds are obtained through professional surety companies, collateral must be pledged to financially secure the bond amount. Different forms of collateral may potentially be accepted, including:

• Cash - Posting the full bond amount in currency provides the surety maximum security, often resulting in lower premium rates.

• Real estate - Pledging property equity in real estate assets like homes or buildings can serve as bond collateral. The property cannot already be heavily leveraged.

• Marketable securities - Publicly traded stocks and bonds with a reasonably consistent valuation may potentially back a supersede's bond.

• Bank letters of credit - Rather than putting up collateral, the appellant's bank may issue a letter of credit vowing to pay the bond amount if needed. This obligates the bank to pay if the appellant fails to adhere to the judgment.

• Personal guaranty - Wealthy appellants may personally guarantee the bond with their net worth and finances. However, this still carries risk, so it may not always be accepted.

The surety company determines whether the offered collateral is acceptable based on its risk analysis and underwriting standards.

What is the Supersedeas Bond Cost?

The total cost to purchase a supersedeas bond can vary substantially based on these key factors:

• Bond amount - The higher the required bond amount, the more premium must be paid. Larger bonds mean more risk taken on by the surety provider.

• Quality of collateral - Better collateral, like cash or liquid assets, reduces risk and may decrease the premium rate charged. Weaker collateral results in higher costs.

• Creditworthiness - For appellants proposing a personal guaranty over hard assets, their credit rating and finances directly impact bond pricing. Higher credit equals lower rates.

• Duration of appeal - The longer and more complex the expected request, the more risk the surety company assumes. Extended demands increase the bond premium cost.

• Individual surety's rates - Each surety applies its proprietary pricing models and underwriting formulas, so shopping around helps find the best rate.

Typical premiums range from 1% to 15% of the required annual bond amount. So, a $1 million bond may cost between $10,000 to $150,000 annually. High-risk bonds often exceed 5-6% in annual premiums. The full bonus is usually paid upfront after the bond is approved.

How Long Does it Take to Get an Appeal Bond or Supersedeas Bond?

The time required to successfully obtain and file a supersedeas bond depends on the efficiency of the underwriting and approval process. Here are the typical steps:

• Contacting surety providers - The first step is the appellant or their attorney reaching out to potential surety companies to start the bond application process and get quotes.

• Surety underwriting - The surety thoroughly reviews the appellant's finances, assets, credit, and case details to make an underwriting and approval decision. Depending on the surety's workload, this may take anywhere from several days to a few weeks,

• Posting bond collateral - Once approved, the appellant must deposit the required collateral with the surety company. Finalizing these assets often takes several additional days.

• Filing bond with court - Completed bond forms are prepared and filed with the appeals court as required in that jurisdiction.

• Judge approves bond - The judge reviews the filed bond and authorizes it, enacting the stay of the judgment.

Expect the total process to take 2-6 weeks from initially contacting surety providers through filing an approved supersedeas bond with the court. It may take over 6 weeks for complex, high-risk cases with large bonds.

Can a Supersedeas Bond be Waived?

In certain circumstances, getting a superseded bond partially or fully waived by the court may be possible. Reasons a judge may consider waiving the bond include:

• The appellant cannot afford premium or post-collateral

• Requiring a full bond would cause undue financial hardship

• The appellant poses a very low flight risk and has a history of paying judgments

• The appeal has strong merits in the likelihood of reversal

However, courts are generally reluctant to waive the bond requirement for civil judgments. Requesting a waiver does not automatically stay the judgment.

The judge has full discretion in allowing bond waivers or reductions. If granted, alternative conditions like asset seizure may still be ordered if the appellant doesn't pay after losing the appeal.

Do Bonds Work Differently for the Criminal Appeal Process?

In criminal cases, the rules surrounding appeal bonds differ somewhat from civil lawsuit bonds. In general:

• Monetary penalties ordered in criminal cases often require a bond to delay payment during appeal. This includes fines, restitution, and other financial judgments.

• No financial bond is required in most jurisdictions for non-monetary sentencing like incarceration, probation, and supervised release. The appeal itself institutes an automatic stay of these penalties.

• For violent felonies, a judge has discretion on whether incarceration and similar penalties can be stayed pending a criminal appeal, regardless of any bond.

• Prosecutors may request additional conditions like GPS monitoring for those appealing violent crime convictions and sentences.

So, while monetary criminal judgments frequently necessitate an appeal bond, avoiding jail, prison, probation, or parole during a criminal appeal generally does not require posting a separate adhesive. The charges determine whether penalties are automatically delayed pending the appeal decision.

Frequently Asked Questions

What happens if the appellant loses their appeal?

If the appeals court upholds the original adverse judgment, the terms will be enforced, often immediately. For monetary damages, the plaintiff collects funds secured by the surety bond collateral. For non-monetary decisions, the appellant must promptly comply with all orders.

Can interest accrue on a judgment during an appeal?

In many jurisdictions, post-judgment interest accumulates on the initial damages awarded, increasing the total owed while pending the appeal's conclusion. The required bond must be sufficient to cover all accruing interest costs.

Who gets the bond money if the appellant wins their appeal?

The bond is exonerated and released if the appellant wins their appeal and the initial judgment is vacated. The appellant then receives their posted bond collateral back, less any fees paid to the surety company for providing the bond.

Can plaintiffs get a supersedeas bond when they appeal?

Yes, plaintiffs or defendants can purchase a supersedeas bond when filing appeals from civil judgments. If the plaintiff wants to delay complying with a judgment against them, they must secure an appropriate adhesive.

Can these bonds be used across different states?

Appeal bonds are regulated at the state level. However, most surety companies hold licenses in multiple states, allowing them to arrange bond coverage for appeals proceeding through court systems in different jurisdictions. 

Exploring Investment Opportunities in Rumble Inc: Buy Rumble Stock and Invest in Rum Shares in 2023

How to Buy Rumble Stock in 2023 - Step-by-Step Guide to Invest in Rumble Shares

Step-by-Step Guide to Rumble Inc. Stock in 2023

Rumble Inc. is a video-sharing platform that has gained a lot of popularity in recent years as an alternative to YouTube. The company went public in December 2021 through a SPAC merger, and its stock began trading on the Nasdaq under the ticker symbol RUMB.

With Rumble's rising user base and reputation as a "free speech" platform, many investors are interested in buying Rumble stock in 2023. However, investing in individual stocks requires research and a good understanding of the stock market.

This step-by-step guide will walk you through everything you need to know to invest in Rumble Inc. in 2023, including:

Researching and Analyzing Rumble Stock

• Rumble's business model and financial performance

• Rumble stock price history and valuation

• Competitors and market positioning

Opening a Brokerage Account

• Choosing an online broker

• Funding your account with cash

Placing Your Rumble Stock Purchase Order

• Understanding order types (market, limit)

• Calculating how many shares to buy

• Executing your buy order

Best Practices for Investing in Rumble

• Considering investment goals and risk tolerance

• Diversification and portfolio management

• Regularly reviewing your investment

Follow this guide to make informed decisions and invest in Rumble stock this year.

Analyzing Rumble Stock as a Potential Investment

Before buying shares in any company, it's important to research the store and analyze key factors that impact it as an investment. Here is an overview of what to consider when evaluating Rumble Inc. stock in 2023:

Rumble's Business Model and Financials

Rumble operates a video-sharing platform similar to YouTube but focuses on providing an uncensored environment to creators. The company generates revenue primarily through advertisements. Here are some key financials:

• Monthly active users crossed 50 million in 2022

• Generated $7.8 million in ad revenue in Q3 2022, up 443% year-over-year

• Has over $500 million in cash through SPAC merger to fuel growth

Rumble is growing rapidly but is not yet profitable, losing $6.8 million in Q3 2022. The company aims to continue expanding its user base and monetization.

Stock Price History and Valuation

Rumble stock debuted on the Nasdaq at around $10 per share in December 2021 after its SPAC merger. The stock price saw a lot of volatility in 2022:

• Traded as high as $19 per share and as low as $6 per share

• Currently trades around $8-9 per share with a market cap of about $3 billion

With no profits yet, Rumble stock is purely valued based on its growth potential. The price-to-sales ratio is high at around 30x currently.

Competitive Landscape

Rumble faces competition from large platforms like YouTube and Facebook while competing for users and creators with other "free speech" platforms like BitChute and Odyssee.

However, Rumble has gained traction quickly due to exclusive content and creator partnerships. Its financial backing also gives it an advantage.

SWOT Analysis

Here is a SWOT breakdown of Rumble's current position:

Strengths: Brand recognition and perception as a free speech platform, significant funding to fuel growth, and a rapidly growing user base.

Weaknesses: History of controversial content, still unprofitable, high stock valuation based on growth projections.

Opportunities: Massive TAM in the online video industry, shifting creator/user demand toward uncensored platforms.

Threats: Competition from larger platforms, potential content moderation issues and loss of brand partners.

Is Rumble Stock a Good Buy in 2023?

Given its lack of profitability and aggressive growth strategy in a competitive space, Rumble stock carries a higher risk profile. However, the company's strong momentum and large addressable market make it an intriguing investment with huge upside potential if execution succeeds.

Conservative investors may want to wait for more financial data before investing. But for those willing to accept high risk, Rumble presents an opportunity to get in early on a disruptive platform. Proper due diligence is vital before making any investment decision.

How to Open a Brokerage Account to Buy Stocks

To invest in stocks, including Rumble Inc., you must open an account with an online brokerage firm. Here are the key steps involved:

Choose an Online Broker

Many reputable brokers today offer commission-free stock trades and easy online/mobile access. Some top options include:

• Fidelity

• Charles Schwab

• E*TRADE

• TD Ameritrade

• Webull

• Interactive Brokers

When selecting one, compare broker fees, investment choices, platforms, and customer service.

Provide Personal Information to Open Your Account

Brokers will require:

• Social Security Number

• Contact information

• Employment details

This is needed for tax reporting purposes and to verify your identity.

Fund Your Brokerage Account

You must deposit money into your new brokerage account to start buying stocks. This can be done via:

• Electronic bank transfer

• Wire transfer

• Check

• Debit card

Ensure you understand any fees your broker may charge for transfers or deposits. Fund with enough capital to make your desired Rumble stock purchase.

Opening an account takes just a few minutes online. You will then be ready to start investing.

How to Buy Rumble Stock - Placing Your Order

Once your brokerage account is open and funded, it's time to place your order to buy Rumble Inc. shares. Follow these key steps:

Choose Order Type

The two main order types for stocks are:

Market order: Buy or sell shares immediately at the best market price. This guarantees fast execution but doesn't allow price control.

Limit order: Set a maximum or minimum purchase price when buying/selling shares. This allows price control but isn't guaranteed to execute if the price threshold isn't met.

First-time investors generally prefer market orders for simplicity.

Calculate Amount to Invest

Decide how much money you want to put towards Rumble stock based on the following:

• Your overall investment budget

• Percentage of portfolio allocation to Rumble

• The number of shares you want to buy

You can buy any dollar amount or fractional shares with most brokers.

Place Your Order

On your broker's trading platform or app, enter the stock ticker symbol "RUMB", order type, share quantity or amount to invest, and any other required information.

Double-check your order details before submitting to avoid errors. The order will execute quickly with real-time quoted prices.

Check Order Status

You can monitor your account to see when the Rumble stock purchase is completed. The cash balance in your account will decrease by the investment amount, and your Rumble share balance will increase once filled.

Congratulations, you now own part of Rumble Inc.! Be sure to continue monitoring your investment.

Best Practices for Investing in Rumble Stock

To maximize your chances of success when buying Rumble stock, utilize these investing best practices:

Consider Your Investment Goals

Be clear about why you're buying Rumble and what you hope to achieve. This will help guide your decisions. Common goals include:

• Growth investing - Buy and hold for long-term capital appreciation

• Income investing - Generate quarterly dividend income

• Speculation - attempt to profit from short-term price changes

Assess Your Risk Tolerance

All stock investing carries risk. Ensure your risk appetite aligns with the potential volatility and unknowns of buying Rumble stock.

Research and Stay Up to Date

Read Rumble's investor reports, news related to the company, management changes, competitor actions, and other events that may impact the stock.

Diversify Your Investments

Don't allocate more than 5-10% of your portfolio to Rumble stock. Diversification will limit your exposure to company-specific risks.

Use Limit Orders and Dollar Cost Averaging

Use limit orders to control the entry price. Dollar-cost average over time by making incremental buys to reduce timing risks.

Have a Long-term Horizon

Give your Rumble investment time to develop rather than obsess over day-to-day price swings. The stock could be volatile but may appreciate significantly over the next 3-5 years.

Review Regularly and Rebalance

Reevaluate the stock and your investment thesis regularly. Trim your position if Rumble's fundamentals deteriorate or rebalance asset allocation.

Conclusion

Investing in stocks like Rumble requires thorough research, paying close attention to market trends and company developments, and practicing good investment habits like diversification.

This guide has outlined the key steps involved in investing in Rumble stock in 2023:

• Researching Rumble stock as a company and stock

• Log into your brokerage account like Fidelity or E*TRADE

• Funding your account and placing a market order

• Managing your investment properly over time

Use this information to make informed decisions if you invest in Rumble Inc. Evaluate the risks and growth potential to align it with your investment goals and risk tolerance. With the right prep and discipline, buying Rumble stock can be a savvy portfolio addition this year.