Influence of Exchange Rate regime on Effectiveness of Monetary Policy Essay

Influence of Exchange Rate regime on Effectiveness of Monetary Policy - Essay Example According to Cespedes, Chang & Velasco (2002, p. 1), â€Å"this kind of a model treats the financial markets and international capital mobility as perfect.† Therefore, by using this model to explain the effectiveness of a monetary policy, we would be making an assumption that capital mobility and financial markets are perfect. A country can apply either a fixed exchange rate regime or a flexible exchange rate regime in its monetary system. These two regimes differ both in their characteristics and in applicability. Unlike a flexible regime, a fixed regime has an automatic monetary policy response that the monetary institution has little influence on (Klein & Shambaugh 2010). However, they both define how the currency of a country exchanges with currencies of other countries. According to IMF (1988), exchange rates influence capital flow in and out of the country. Therefore, since the exchange rate regime adapted would influence the exchange rates then it would influence the ca pital flow in and out of the country. A monetary policy affects the money market of a country. This type of policy is crucial in finding a solution to economic problems. Its basis is the supply of money rather than the terms and rates of trade (Jain & Khanna 2007). Therefore, the monetary institutions design this kind of a policy to control either the amount of currency in circulation or the cost of a currency relative to currencies of other nations. However, in controlling the amount of currency in circulation and cost of a currency, the policy should control the terms and rate of a trade in a country. That is now where the issue of the effectiveness of a policy comes from. An effective monetary policy is one that has the capacity to control terms and rates of trade thus controlling the economy of the country. The three lines in the IS-LM BP model are the open IS curve, the open LM curve and the BP curve (Chamberlin & Yueh 2006). Although we use the word ‘curve’ to men tion them, in a diagram they are represented as straight lines. We can use this kind of a model for different purposes one of them being the analysis of a policy. When we use this model to analyze a policy, each of these curves would represent a different aspect of the policy that can identify its effectiveness. In this case, what we would be interested in is the intersection point of the lines in the model. Below is an illustration of this type of a model retrieved from the internet. Diagram of the IS-LM BP model (Deardorff 2010, p. 1) Each line in the diagram above is a representation of an aspect of a monetary policy that we aim to analyze. We can observe from the diagram that all the three curves intersect at one point called the equilibrium point. We can use these lines to explain how a monetary policy affects the economic activities of a country and thus draw a conclusion of its effectiveness. According to Furstenberg (1984), international exchange of national money and moneta ry equilibrium are the main causes of the effectiveness of monetary policy. We could use the IS-LM BP model to represent and interpret these aspects of the monetary policy. The intersection of all the curves in the model represent the monetary equilibrium while each of the curves represent an aspect of international exchange of national money. The nature of the curves, its shifts, and their point of intersection depend on the

Value Chain Term Paper Example | Topics and Well Written Essays - 1500 words

Value Chain - Term Paper Example The company aims to achieve its mission and vision by fulfilling the needs of varied customers spread at different locations globally. The company ensures that it provides the best quality products at the best and affordable prices which are further accompanied with best services within the industry (Ashley Furniture Industries Inc, â€Å"A Proud History and Poised for a Formidable Future†). Thesis Statement The paper critically identifies the value chain activities practiced by Ashley Furniture Industries, Inc and briefly recommends on various core areas of the company in relation to value chain. Value Chain and Ashley Furniture The term ‘Value Chain’ was first coined by Michel Porter in his famous book ‘Competitive Advantage’ in 1985. The analysis of value chain identifies the activities performed by an organization and further relates them with the organization’s competitive strengths. Porter identifies primary and secondary activities as th e two major activities essential for value chain analysis. He further grouped the primary activities into five sub-heads including inbound logistics, operations, outbound logistics, marketing and sales and services which are concerned with the value creation as well as delivery of products. Similarly, secondary activities are also grouped into four sub-heads namely, human resource management, technology development, infrastructure and procurement. The secondary activities help organizations to enhance the efficiency and the effectiveness of the overall organizational operations (Food and Agriculture organization of the United Nations, â€Å"The Value Chain†). The basic model of value chain is being represented below: Source: (Food and Agriculture organization of the United Nations, â€Å"The Value Chain†) Primary Activities Inbound Logistics Ashley Furniture aims to produce world class durable furniture in attractive designs and affordable prices. Furthermore, the comp any ensures that by no means are its product qualities compromised; and customers receive value for their investment made in terms of durable and finished products. The company has partnered with best class suppliers for the supply of a variety of components required for the manufacturing of the furniture products. In addition to this, the company has the largest air-ride truck fleet in the industry which can be evident on the highways of Wisconsin (Wisconsin Manufactures and Commerce, â€Å"BPES-Ashley Furniture†). The tractors involved in the transportation of required components for the manufacturing process are equipped with auxiliary power units that result in less consumption of fuel almost by 10 percent. Additionally, the company is also striving to procure materials locally in order to reduce the cost of transportation and thereby offer its products at affordable prices to its discriminating customers (Ashley Furniture Industries, Inc, â€Å"Ashley World Class Furnit ure Company†). Operations Ashley Furniture has more than 250 acres operating space for manufacturing and distribution throughout the world. It has the biggest casegoods production related plant in the United States. The company sells furniture in more than 123 countries around the globe. The major regional manufacturing and

It has been written below in the assignment criteria Essay

It has been written below in the assignment criteria - Essay Example under Part II of the Supply of Goods and Services Act 1982 (the Act1) and Section 13 the service will be carried out with reasonable care and skill where it is done in the course of business as in the current scenario. Therefore failure to do so entitles Adam to make a claim for breach of contract and damages or alternatively under the law of negligence2which is what Burt Co is purporting to exclude and limit under its terms of business. The factual scenario indicates that both Adam Co and Burt Co had a regular course of dealings in respect of the Burt Co’s provision of car valet services, which were ostensibly contracted into on Burt Co’s standard terms of business. The issue in contention is whether the contract was for the Deluxe Service and if not, whether the exemption clause was incorporated into the contract. Whilst there is nothing to indicate that Adam Co expressly accepted and signed Burt Co’s standard terms and conditions, it is evident that the process of handing Adam Co Burt Co’s standard terms of business happened approximately eight to nine times within a twelve month period, which will render it difficult for Adam Co to argue that the terms and conditions do not cover the terms and conditions due to the regular course of dealings between the parties3. This in turn is crucial to the enforceability of the exclusion clause4. With regard to the current scenario, the most applicable scenario will be incorporation of terms based on previous dealings between the parties. For example, in the case of J Spurling Limited v Bradshaw,6 in circumstances analogous to the current scenario, Bradshaw had received the document with the exemption clause on previous dealings with the defendant on numerous occasions and the Court of Appeal concluded that â€Å"by the course of business and conduct of the parties the clause was part of the contract†7. In the Bradshaw case the clause had been incorporated notwithstanding the late arrival of the document

Gender Reassignment Surgey Essay Example | Topics and Well Written Essays - 500 words

Gender Reassignment Surgey - Essay Example The first one is that newborns may be born with sex deformities and must then be assigned to either the male or the female sex at the earliest possible time (Encyclopedia of Surgery, 4). The second reason is that some men or women may believe that they were physically born of a sex different from their mental and emotional make-up. This belief is powerful enough to trigger their desire to have the surgery (Encyclopedia of Surgery, 4). Some considerations for the surgery affect the sex change and often dictate its progress. Many of these surgeries are being performed in the US and are estimated to number about 100 to 500 on an annual basis (Encyclopedia of Surgery, 6). The conversion from male to female involves the removal of the penis, the reshaping of the tissue to make them appear more female, and the construction of a vagina; the vagina is often constructed through skin grafting and through an isolated loop of the intestine (Encyclopedia of Surgery, 7). Female hormones are taken by the patient in order to reshape the contours of the body and stimulate breast enlargement. The other side of the coin – female to male sex change – has not had as much success as male to female sex change, primarily because of the difficulty in creating a functioning penis from the small clitoral tissue in the female genitalia (Devor, p. 51). Penis construction is often carried out after a year from the primary surgery to remove the female organs. The breasts are also modified in order to give them a more masculine appearance. Before sex change operations are carried out, patients are often asked to undergo an in-depth psychological counseling in order to determine what their intentions are and whether or not they are prepared to meet the consequences and the implications of their choice. It is after all an irreversible procedure; therefore, the patient must not have any second thoughts or doubts about the surgery (Encyclopedia of Surgery, 15). It

Tools of Organizational Change Essay Example | Topics and Well Written Essays - 250 words

Tools of Organizational Change - Essay Example It is most viable to formally advise the employees why shifting to biometrics would be more effective than their current system, of say, manual checking of IDs by security personnel. Through an organizational or departmental meeting, the advantages of the biometric system should be communicated, as well as potential resistance to this application should be solicited and addressed (motivating change). By creating a vision through emphasizing a more secure working environment and a security system that is more effective through biometric, employees would realize its benefits through the ease of identifying, verifying, and cross-checking the validity of people entering the organizational premises. Developing political support entails the full acknowledgement and support from senior management, as well as all security and administrative personnel who would orient employees during the transition. Managing the transition entails determining the progress of the biometrics application, including addressing problems and unforeseen issues. Finally, sustaining momentum requires monitoring effective acceptance of the biometric system by the employees as they proceed with their daily organizational activities; as it apparently becomes integrated as part of their organizational life. Only then would this particular organizational change be deemed effective and smoothly enforced by

Global Food Politics in Organic Food Industry Essay

Global Food Politics in Organic Food Industry - Essay Example This report stresses that nutritionists are placing an unprecedented amount of emphasize on organic products, which makes people feel compelled to read the list of ingredients before buying it. That's when the buyers will be pleasantly surprised to discover that they can actually understand the list. For instance, the ingredients of organic milk are simply: certified organic grade A milk, and Vitamin D3. This unique feature not only helps consumers to identify an organic product, but also provides a sense of security when people consume the product. When people pick up a conventional product, they glance at it to check for defects, and then toss it into the cart. It is unlikely that anyone is going to read the ingredient list closely. This paper makes a conclusion that even though organic foods differ from conventional foods in many aspects, study shows that there are no substantial differences between their taste and safety. Buying an organic product is more of an act of protecting the environment than promoting one's own health. If consumers' budget allows, they should buy more organic products, because it is a simple way of giving back to the Mother Nature, and help to preserve biological stability on earth. People are more willing to save in order to be able to afford products like these today. One for the quality and two for the environmental attributes which are given back to the earth. These are two of the main motivators for the organic food industry today and why it is gaining in such popularity as well.

Individual Analytical Report Essay Example | Topics and Well Written Essays - 1000 words

Individual Analytical Report - Essay Example The internet pluralizes and expands the public sphere in various manners. The paper then moves on forward to the dimension of interaction in the public sphere, with emphasis on how public sphere internet deliberation proceeds in the political communication’s contemporary environment. Deliberative democracy is then examined in the analytic category. Civic cultures offer an alternative to the comprehension of online discussion of politics significance. The internet continues to have an enormous informational role in political communications. Public sphere is a constellation of a society’s communicative spaces, which allow the circulation of ideas, information, and debates, which are delivered in an unfettered manner. It also allows for the formation of political will and public opinion. These spaces, in which both the more recent interactive media and the mass media are prominently figured, serve as communicative links facilitators between the societal power holders and t he citizens (Alasuutari, 1999 p98). The term is utilized in singular form, although the plural form is pointed at by sociological realism. In differentiated large-scale societies, in the late modern era, especially in societies penetrated by globalization, the public sphere is understood as constituted of numerous different spaces. It constitutes of three main dimensions; representation, structures, and interaction. Structural dimension consists of formal institutional features (Anderson, 2003 p134). These include media organizations and their ownership, political economy, control, legal frameworks, regulations, and issues affecting financing. The dimension of representation is referent to the media’s output including that of the mass media and â€Å"minimedia† that have small groups as their target, especially promotional material and newsletters. All the familiar criteria and questions can be raised here concerning media output for political communication (Asen, 2001 p 109). These include fairness, completeness, accuracy, setting of agenda, pluralism of views and ideological tendencies. For the interaction dimension, there exist two aspects (Asen, 2001 p109). First is the encounter of the media with the citizens, and the process of communication that makes sense, interprets and uses the output. The second part has to do with the interaction between the citizens. This could include large meetings or two-way conversation. Contemporary democracies have been facing difficulty, with the evidence showing that issues regarding public sphere’s representations, structures and interaction modes (Baker, 2002 p 78). Democracy’s poor health came into sharp focus at the same time as the internet’s rapid leadership of media revolution. These two phenomena were connected optimistically. Traditional political communication systems were destabilised by late modern societal changes. This was attributed to an increase in socio-cultural heterog eneity, massive increase in channels and media outlets, an increase in political mediators and political advocates like consultants and experts, growing disengagement and cynicism among citizens, and the emergence of cacophony due to media abundance (Beck, 1997 p178). Citizens belonging to more than one culture or group must find spaces for meaningful participation (Bennett, 2003a p199). This is due to the current trend for pluralism and the