Ukraine’s new president, Petro O. Poroshenko signed a new trade agreement with the European Union on Friday in Brussels.   I can’t help but think how this new agreement would impact  the rest of the world.  The article describes Mr. Poroshenko’s excitement on the new opportunity however the article also states that the new pact has escalated what was already a volatile atmosphere in the region.  The former USSR state has had their sovereignty tested by Russia recently with the latter’s annexation of the Crimean Peninsula.  Russia has slowly impose a manifest-destiny-type will on Ukraine despite the rest of the world’s objections.  The signing of this pact not only escalates their tension to the next level, Ukraine has also clearly drawn the line and their intentions on where and which side they are planning on taking in the foreseeable future.

I believe this trade agreement will affect the rest of the world positively because of a couple of reasons.  First of all, trade agreements are design to boost the economy (at least between the parties concerned).  Secondly, looking at the eco-political aspect of it, this sets precedent in the modern international community that diplomacy wins over might.  This is a significant change to the old mentality that was prevalent in the 20th century.  With this agreement, Russia’s attempt to recapture the former USSR states by coercion has absolutely and utterly failed, further severing its tie with Ukraine and ironically pushing them to the hands of the western community.   Once Ukraine stabilizes the remainder of the their eastern territory, the country should fulfill the positive expectations set by themselves and the EU.  What do you guys think?

As we have discussed in class,  the economic indicators are measured through market size, purchasing power,  growth, labor market and stability.  The article intrigued me because it discusses the IMF’s critical role as a watch dog in the international arena.  In particular, the article mentions 33 out of 52 countries in the IMF’s Global House Price Index displayed growth in home prices even when their economies were slowing down.  IMF cautions countries such as US that even though they are starting to show increase in the prices of market, it does not necessarily indicate an increase in their economy.  Home prices, rents, and incomes should progress together with the economy.  The article proves that countries share similar issues and economic theories. As we have learned in class, there are many factors that can affect a country’s economy, and demand versus resources are certainly one of them.

http://www.forbes.com/sites/kenrapoza/2014/06/12/imf-warns-global-housing-market-overheating-including-in-u-s/