Author: Ashish Soste

  • What does a Trade Balance tells about an economy and what are its benefits

    Competitiveness of Industries

      Trade surplus = strong , competitive industries. Example – Germany exports cars, machinery, chemicals

      This tells us that

      • German engineering is world class
      • Manufacturing sector is strong and efficient
      • Workers are highly skilled
      • Technology / Innovation is advanced

      Germany’s surplus reveals that it is a manufacturing / industrial economy

      ExportPercentageWhy
      Vehicles20%Engineering excellence
      Machinery15%Industrial strength
      Chemicals12%Advanced technology
      Pharmaceuticals8%R&D investment

      Benefits of having a Trade Surplus

      • Increased Foreign exchange reserves
      • stronger currency value
      • Job creation and employment

    1. Gross Domestic Product

        What does it mean ?

        GDP (Gross Domestic Product) measures the total value of all goods and services produced within a country’s borders. It’s essentially the “size” of an economy.

        Why economies focus on GDP ?

          • Higher incomes: More economic activity = more jobs and better wages
          • Better services: Hospitals, schools, roads improve with economic growth
          • Quality of life: Access to better food, housing, healthcare, education
          • Consumer choice: More variety and quality of goods and services
          • Tax revenue: Bigger economy = more government income through taxes
          • Social programs: Resources for unemployment benefits, pensions, welfare
          • National security: Budget for military and emergency services
          • Investment attraction: Growing economies draw foreign investment
          • Global influence: Larger economies have more diplomatic leverage
          • Currency strength: Economic growth supports stable, strong currency

          How GDP creates positive feedback ?

          1. Higher GDP → More jobs and income
          2. More income → Higher consumer spending
          3. Higher spending → More business investment
          4. More investment → Economic expansion
          5. Economic expansion → Even higher GDP

          Ways to increase the GDP

          1. Increase Consumer Spending
          2. Increase Government spending
          3. Increase Net Exports
          4. Increase Productivity and Efficiency
          5. Increase Business Investment


        1. The summit that I was not going to climb

          Woke up in a tent at 12:30 am, my legs aching with pain. Today is the final day of the trek, and I am on the verge of quitting. We are suppose to start at 1:30 am and reach the summit by 5:40 am to witness the sunrise. Yesterday we had already covered almost 25 kms – walking through mountains, crossing rivers, and often forging our way through dense forest.

          I used to think trekking was cool, but these four days were nothing short of hell. Today, the last day was no different – a total 14 kms had to be travelled on foot.

          So here I am, sitting in my tent, weighing my decision to quit.

          My reputation is at stake – my friends and family had high hopes about my fitness. Backing out now might turn me into a laughing stock. To make things worse, there is 10 year old kid on the trek who is doing much better than me.

          It is 1:00 am already, and still I haven’t made up my mind. I have just half n hour to convey my decision to the trek leader.

          That’s when a colleague from another tent calls out my name, checking if I am awake. I remember what he said the previous day when our trek leader asked everyone – “What’s your motivation behind this trek ?” – he answered, “Closure, I want to complete this because i tend to leave things incomplete.” That struck a chord with me. That had been my problem too.

          But honestly, I still didn’t care enough. I told myself I’d survive even if I left it incomplete.

          I give a shout out from the tent to my colleague – “Yes I am awake”. And somehow against my own will, I pack my bags, lace up my shoes, and get ready for this final stretch.

          I decide to go with flow, follow my instincts.

          And now here I am – having completed one of the hardest endeavours of my life.

          My answer to the question (what’s my motivation for reaching the summit) comes not during the trek but much later, as I sit down to write this at the base camp

          I loved doing hard things. And this was one of them. I am glad that I completed my first Himalayan trek – Deoriatal Chandrashil, 12083 feet and 35 kms

          Otherwise I would have lost to myself.

        2. The best ingredient in my coffee ? Its the time with my sister.

          As siblings we fought a lot and it was not limited to verbal spats. There were days when we didn’t speak to each other. Like every sibling I felt – I deserved a better sister.

          Its only when someone is about to leave you start to realize their importance. I still vividly remember that day – it was evening, we were all tired after our sister’s mehndi festivities and mom started crying realizing that my sister will be moving out of our house post getting married. Hiding my face I cried too, for a long time I thought I cried because she was no longer going to stay with us

          It was only later that I realized, I cried because I no longer would have a constant companion to share my thoughts, to seek advice, to help me with my school homework, I would no longer have a friend to fight, to go on long walks, I would no longer have someone who inspired me daily.

          It took me time to realize that all the tiny moments, people, experiences that we take for granted will eventually be ones we wish we had more of. Our bond from that day has only grown stronger ..

          Now I understood the quote by Sam Harris – “No matter how many times you do something, there will come a day when you do it for the last time”

          Hence it was not the coffee that was actually good today- I feel all ‘Flat Whites’ taste the same for me – it is actually the time that I get to spend with my sister that makes a coffee good.

          5/5 to Silk Road Coffee Company !