Analyse and Evaluate the significance of Fiscal Policy rules Essay

L1. Monetary policies are where the government use changes in the base rate of interest to influence the rate of growth of aggregate demand, the money supply and ultimately price inflation. In the short run economic growth is an increase in real GDP, In the long run economic growth is an increase in productive capacity (the maximum output an economy can produce) Economic Stability – the avoidance of volatility in economic growth rates, inflation, employment and unemployment and exchange rates. International Competitiveness – The ability of an economy’s firms to compete in international markets and, thereby, sustain increases in national output and income. L2. Monetary policies can be used to promote economic growth, Economic (this stability reduces uncertainty, promotes business, consumer confidence and investment) and International Competitiveness. This causes an ? in AD, which can be good for an economy. For example if a Government ? interest rates, people will have an ? in disposable income, because payments on credit cards will ?, mortgage payments will ? and it is not worth saving due to the reduced rate of interest, meaning they have more to spend on goods and services, thus AD ?. L3. Monetary policies can promote economic growth and stability and international competitiveness as changes in the interest rate affects Domestic Demand (Consumer Expenditure, Investment and Government Spending) and National Demand (Net Exports) via Exchange Rates as when the interest rate ? so the does the currency’s strength. So if the rate of interest increases, so does the strength of the pound, meaning that there is an ? in international competitiveness as more economies want to purchase our currency. This causes an ? in AD causing the AD curve to shift to the right, from AD1 to AD2. Causing and ? in employment, ? production and ?economic growth, ?international competitiveness and ?international competitiveness If economic growth becomes too rapid it can also be dampened nby an ? in interest rates causing AD to ? due to the fact that their credit card charges and mortgages have ? and it has become more worthwhile to keep money in the bank and reap the rewards from a higher interest rate rather than spend. So peoples disposable income ?. Monetary Policy can promote economic growth and stability because of the Monetary Policy Transmission mechanism; the way in which Monetary Policy affects inflation rates through the impact it has on other macroeconomic variables. It is said that low and stable rates of inflation provide the framework for economic stability as inflation reduces the purchasing power of money. When the government uses monetary policy to reduce the rate of inflation inflation targeting) they can stop economic stability from becoming unstable as when inflation occurs, and usually wage growth ? there is a danger that inflation will become out of control so much so that producers and consumers are no longer able to use the signalling function so it can become clear what goods and services consumers most want. Inflation targeting makes the consumers and investors more clear about the future and so they know what to expect so they can plan ahead. This can cause an ? in C and I and therefore and ? in AD (shifting the AD curve to the right). The fact that inflation targeting is flexible means it meets the policy target. The government can use Monetary to policy to ? the supply of money, so banks have more money to lend, so it is easier for consumers to take loans so there disposable income ?, this can cause and ? in Consumer Expectations and vestments, causing an ? in AD, ?production, ?international competitiveness, ?employment, ? economic stability and ?economic growth L4. HOWEVER whether the Monetary policy is affective depends on many factors, for example it depends on how big the increase or decrease in interest rate is, a small change could make little or no difference for example if income interest is reduced by 0.00000000000000000000001% then people are unlikely to start spending more and it will have little or no effect on AD. It also depends on when interest rates are changed as to what else is going on in the economy at that time, for example if there is a fiscal policy causing income tax to ? at the same time as a ?in interest rates the affects of the Monetary Policy may be cancelled out by the fiscal policy. It depends on Central Bank bringing creditability to the target as the central bank has to build up a reputation for meeting targets. This can lead to low economic growth being traded off for low inflation in the short run, but not the long run, which is what is needed for an economies economic growth to be sustainable! The Central bank must be good at forecasting inflation, as the Monetary Policy works with time lags, there can sometimes be a two year delay! So the Central bank will have to set today the interest rate to affect the rate of inflation it expects in two years time! For example Inflation targeting has to be guided by forecasts of inflation and all macroeconomic variables that affect inflation. It also costs a great deal to employ people who have the ability to forecast inflation well which could cost a lot to employ someone capable of doing this, this means that it ? costs, which means the possibility of an opportunity cost involved as that money could have been spent on something else for example new hospitals. There can also always be unforeseen circumstances such as unexpected recessions and natural disasters such as the tsunami, this affects the Central Banks ability to deliver economic stability and economic growth as they do not know if they may need to be doing other policies to help these unexpected situations, as they may only be able to do so when the economies conditions are stable. To conclude Monetary rules and Fiscal Policy targets and constraints can promote Economic Growth, Economic Stability and International Competitiveness, however there are many factors to take into account when doing so.

Corporate Strategy and Foreign Direct Investment in Developing Countries Such as India Essay

Foreign direct investment (FDI), in its simplest term, is when a company from one country makes an investment into building a facility in another country, or when investments are made in order to acquire a certain stake in enterprises operating outside the economy and country of the investor. FDI plays an extraordinary role for firms wanting to operate and compete in a global business. It can provide a firm with new markets to penetrate, cheaper production facilities, access to new technologies, skills, and financing. For a host country or the foreign firm receiving the investment, it can provide many opportunities that are necessary for economic growth and development. FDI can also come in many different forms, such as direct acquisition of a foreign firm, setting up a facility in a foreign country, or investing in joint ventures and/or strategic alliances with local and foreign firms (Kim & Kim, 2006). In the past decade, due to a dramatic change in the way businesses are conducted, combined with loosening of governments’ regulations on foreign investments, FDI has increased dramatically on a global scale. When companies make decisions regarding FDI, this process require the efficient allocation of funds to investment opportunities, which often require large amounts of money that will hopefully bring greater returns to its investors. With foreign investments being far riskier than domestic investments, the effective and efficient use of funds is critical for the future performance of a multinational company. Multinational companies that engage in FDI provide a range of potential benefits that extend to the actual investors as well as the host country that is receiving the investment which are quite apparent. An example within many of these advantages include, increased profits for the industry or the firm due to lower costs of resources abroad, and increase in jobs provided in the host country. However, despite the positive arguments for FDIs there are still also many reasons how or why these type of investments can prove to be harmful. Domestic firms may consider these investments as unfair competition because the home-market is losing jobs that are instead being set-up abroad. Also, the host country may feel that they are losing their national identity due to foreign cultures and influences being imposed on them. Despite the many benefits that FDIs have provided both companies and host-countries, it is still unsure that such activities will not extend harmful effects to either participant due to the various reasons mentioned above. A reasonable outline for investments should be set-out in order to allow investors reap the benefits of their investments, while simultaneously contributing positively towards the growth and development of the host-country. The following sections of this report will attempt to analyze FDI effects on developing countries, the means available for companies to invest in foreign markets, mergers and acquisitions, and other issues related to the field of foreign direct investment. Foreign Direct Investment in Developing Countries Foreign direct investments initiated by MNCs occur primarily because in most cases these type of activities aim to fulfill all MNC’s primary objective; to maximize shareholder value (stock price) by â€Å"taking-on† various value-adding activities or investments. As such they are considered as being major contributors to economic growth for developing countries. A host country will usually want to attract foreign investors in order to acquire additional resources such as capital, new technologies, knowledge, as well as increased job opportunities for its population. Over the past decade globalization has increased dramatically, which has also sparked increasing flows of FDI in developing countries as governments begin to ease up on their regulations. According to publications from the Institute for International Economics, FDI in developing countries, and countries who are in a transition phase of their economy (i. e. China) grew dramatically during 1990-1998, from $24 billion per annum to approximately $120 billion per annum. Mentioned in the previous section, FDI in theory, as well as in practice, has proved to offer several gains to developing host countries who accept MNC’s investment efforts. From these gains, the major ones that are usually more specific to developing host countries include the transfer of technology that couldn’t otherwise be acquired through investments or trade, development of human capital through employee training, and gains in profits resulting from corporate tax revenues in the host country (Loungani and Razin, 2001). The fact is that the impact of FDI in a certain country may vary from one country to another country, therefore the degree of FDI impact really depends on the government policies and regulations that are set forth in order to either attract or deter FDI inflows. Therefore, we could concur that government policymakers have the most important role when it comes to FDI decisions. They should be aware of the different methods that could be used to promote FDI and how each of these means would affect the development and growth of the local economy. Often, policymakers seem to rush into FDI liberalization policies without considering the pros and cons of such actions. However, as the South East Asian economies have well proven to the rest of the world, if FDI can be used strategically, it can be an extremely useful tool for emerging economies and developing countries. FDI in India India’s recent liberalization of its foreign investment regulations has generated strong interest by foreign investors, turning India into one of the fastest growing destinations for global FDI. Foreign firms are setting up joint ventures in several of India’s fastest growing sectors such as telecommunications, computers software, financial services, tourism, etc. According to a global survey conducted by KPMG International on corporate investment plans in June 2008, India is expected to experience the largest overall growth in its share FDI, and will most likely become a haven for investments within the manufacturing industries. It’s true that India is becoming one of the most favored investment destinations for many developed countries as well as countries whose economies are in a transition phase. The following diagram shows how GDP per capita growth, trade volumes, and FDI inflows have surged over the years 2001-2006. Within the past few years, Japanese firms are increasingly purchasing various amounts of equity ventures in Indian firms, particularly within the automobile, electronics, and IT sectors. FDI is now recognized as one of the most important drivers of economic growth for India, and as such, the Indian government is making all efforts to attract and facilitate FDI and investment from foreign investors. India’s liberalization efforts have not only removed national barriers towards foreign investments, but have also made the process of investment activities much easier by establishing various measures. According to India Business Directory (IBD, 1999-2009), some of these implemented measures include: †¢Loosening of foreign exchange controls in order to promote greater tradebetween India and other countries †¢Companies now have significant amount of freedom to raise funds from foreign markets in order to invest and expand their foreign operations in India †¢Trade between countries is subject to fewer trade restrictions; i. . decreasing tariff levels †¢Foreign investors can pass on earnings from Indian operations with relative ease As India and its industries continue to develop and expand, more and more investors are attracted to its market with hopes of experiencing great returns. The possibilities of foreign investment in India seem endless with the combination of incentives and benefits that the Indian government offers to foreign investors. Some of these incentives include tax exemptions due to the various tax treaties that India has with 40 other countries, as well as investment incentives offered by the Indian government and the state (IBD, 1999-2009). One of the major reasons why India has attracted vast amounts of FDI in recent years is due to its FDI policies. According to the Embassy of India website (2009), FDI up to 100 percent is allowed under the â€Å"automatic route† in all sectors and activities except for those that are otherwise stated. Some of these sectors that don’t permit full ownership by the foreign investor include such items that require special licensing; i. e. alcoholic drinks, cigarettes and tobacco products, electronic aerospace and defense equipment, explosives, and hazardous chemicals. There are also other sectors of the economy that are prohibited from receiving ANY form of FDI, which include atomic energy, railway transport, ammunition and defense equipment, and mineral oils. However, most of the sectors fall under the â€Å"automatic route† for FDI, which basically implies that FDI can take place without the approval of the central government.

Non Biodegradable Wastes

Turning biodegradable waste such as food scraps and yard trimmings into compost or recycling them through your local yard waste collection facility, eliminates a large portion of any household or business’s waste stream. However, the bulk of waste does not biodegrade quickly or ever. By thinking ahead, you can reduce your waste generation and reuse packaging rather than throwing it away. Consider Packaging When buying food or consumer goods, the U. S. Environmental Protection Agency recommends you choose products with recyclable or reusable packaging, such as plastic or glass jars. If that’s not possible, choose the product with the least packaging. For example, if one set of headphones comes in a plastic shell and another comes in a cardboard box with a plastic window, choose the latter. At the office or at home, buy reams of paper packaged in paper and cardboard, not plastic. Plastic Product Manufacturing Great Quality Great Value 24h Quote UK Owned and Managed in China Star-Prototype. com/Tooling Sponsored Links Use Cloth Items The CalRecycle website recommends using cloth towels, napkins and rags for cleaning and eating and reusable bags—particularly cloth bags, for shopping, picnicking and transporting items. To reduce waste even more, cut up old clothes for rags and napkins and cut raggedy beach and bath towels into hand towels rather than buying new ones. You can even sew your own reusable bags from jeans or canvas. Cover and Store Leftovers in Reusable Containers Don’t buy aluminum foil, plastic wrap or waxed paper. Use glass or plastic containers with lids to store leftovers. Rather than transferring food from serving dishes into storage containers when you’ll eat it within the next day or two, place a plate over the top of the plate or bowl and put it right into the refrigerator. Buy in Bulk CalRecycle recommends buying items like cereals and grains in the largest available packages to reduce packaging waste. Many grocery stores have a bulk items section where you can buy the exact amounts of grains, cereals, pasta, rice, dry beans and spices you need. Bring your own reusable bags to the store to buy bulk goods. Reuse Food Jars for Dry Storage When you get your bulk purchases home, protect them for long-term storage by transferring them to plastic or glass food containers that you have saved. Put items you’ll use within the next few weeks, such as cereal, in plastic containers like large dairy containers. Store spices in baby food or other small jars. Pasta, rice, flour and beans can go into old spaghetti sauce or pickle jars. To remove odors from jars you plan on reusing, â€Å"Natural Home† recommends washing them with hot water and white vinegar or even letting them sit overnight with the mixture before rinsing. Recharge and Recycle Batteries Instead of buying alkaline batteries, buy rechargeable batteries and a charger. You can charge these batteries up to several hundred times before they are spent. When alkaline or rechargeable batteries are completely spent, recycle them through your local hazardous waste facility or a business that recycles batteries. Drugstores, hardware stores and electronics retailers are some examples of businesses that may have battery recycling programs. Read more: http://www. livestrong. com/article/158892-effective-ways-of-recycling-reducing-non-biodegradable-waste/#ixzz1j0iEADCx

Business history Essay Example | Topics and Well Written Essays - 1500 words

Business history - Essay Example By the time of the first Sino- Japanese war in 1894-1895, her position was greatly weakened. It was not surprising that Japan won the war, having built their strength during the Meiji restoration. The loss to the Japanese marked the shift in the dominating power in Europe and the end of the beginning for the Qinq dynasty. The loss of the war was an indicator of the weaknesses within the dynasty and foreshadowed the Boxer rebellion, the revolution of 1911 and the downfall of the Qing dynasty in 1912 that would make way for the later rise of communism (Akimova 1971). By 1925, the population of china was around 450 million people, most of whom got their livelihood from agriculture. There was a great unevenness in the distribution of the land. More than half the national population was completely landless, working as laborers for the land owners who were made up of only roughly 20 percent of the population. Through out Chinese history, the imperial powers, knowing too well on what side their bread is buttered, have had a stringent control on the economy of the country. Other than land, the imperial powers had control over more than half of china’s biggest industry, textile production together with a third of the railways system whether directly or indirectly. The imperialists also monopolized the shipping on Chinese waters which accounted for 80% of her foreign trade (Blackwell, 2008). Why the revolts by the peasants were always thwarted is because they could not master the forces needed to fight against the imperial powers. This was another ploy by the imperialists to guarantee that there was no real threat because they knew the forces raised by the peasants were puny and could be easily crushed (Blackwell, 2008). Imperial china was slow to pick up what is termed as the capitalist revolution, where individuals work by themselves, to earn their own profit. It was detrimental for china to choose the communist

IT Governance and Law Essay Example | Topics and Well Written Essays - 3000 words

IT Governance and Law - Essay Example CRM or Customer Relationship Management is the process whereby all the information relative to a customer linked to an organization is properly catered. This is done mainly with the help of information systems. Proper handling of information relative to customers is the key to the prosperity of any organization. The processing of customer related information such that it becomes the center of the information flow of any organization is the core responsibility of the Customer Relationship arena or CRM. Traditional CRM systems have been promoting the business arena for a number of years now. Benefitting from their services organizations have also evolved with the increasing technological advancements. The way CRM systems have incorporated with the emerging phenomenon of Cloud Computing and what the implications of such incorporation may be are integral need of the day discussions. The report is aimed such that the relativeness of CRM systems is narrated first as an introductory term an d then as a discussion evaluating the significance of the conventional old systems and the new cloud incorporated systems. Figure 1: Customer Relationship Management. ... omized particularly to each business’ needs CRM systems not only manage data but also result in the overall analysis and prosperity of sales figures. CRM for Investment broker? The main services that a Retail brokerage firm offers are collectively termed as Wealth Management Services. These include coverage of stock trading for individual investors, investments in different mutual funds and other financial products like insurance products. They also offer advisory services to strengthen their relationship with their customers. A new class of customer relationship managers has emerged that focused specially the business of offering financial services. Due to this development it is extremely essential for the Retail brokerages to opt for a sophisticated and proven Customer Relationship Management system in order to achieve better productivity, customer satisfaction and yield. What is cloud? The term cloud has become much prevalent nowadays. The cloud, in common words, may be ref erred to as a collective pool of resources which can be accessed by multiple users. The usage of the resources on the cloud is often associated with the authorizations given to the users but as per need the resources may be made publically accessible as well. The core concept of cloud, in a formal definition narrated by the National Institute of Standards and Technology (NIST) the organization terms cloud as: A model that provides accessibility to a set of resources being made available in the form of a pool. The resources are linked to network access of the on-demand type, which is being provided with suitability. The examples of the shared computing resources may be networks, storage areas, services, applications and servers etc. These readily available resources are available with very little

Political Science- Indigenous Autonomy and State Development Tensions Research Paper

Political Science- Indigenous Autonomy and State Development Tensions - Research Paper Example Examining the different effects which this has as well as how it can be altered to begin to incorporate different concepts within both areas then provides alternatives to ensure that there is more unity between the two populations while creating a stronger balance with both the indigenous and state populations. The difficulties which are occurring in Latin America between the state and indigenous populations are based specifically on the agenda of both and the identity which both holds. The indigenous populations have specific issues with the development of the country into modern terms. This is taking away the identity, cultural affiliations and basic rights of the indigenous population and the beliefs which they hold. At the same time, the state is being pressured to continue to develop and open the country for different activities that can stimulate the economy, communities and other objectives that are within politics. The pressures which are arising have come from the belief that the indigenous populations are becoming oppressed with the actions of the state while losing both identity and culture in Latin America. This is being developed specifically by the political movements, social conflicts and the pressures to establish new components within the country (Sieder, 29). The problem which is a part of the indigenous and state cultures of Latin America needs to find new solutions for both development and preservation of the cultures which are associated in given regions. The question of whether corporate social responsibility is one which can be used to alter the tensions in the region then become associated with the culture and affiliations with Latin America. The ideology of corporate social responsibility is one which requires businesses recognizing the indigenous cultures and needs within the general population. The actions which take place are then developed to help those which are in

Paul and the Law- Paul's view on the Law Research Paper

Paul and the Law- Paul's view on the Law - Research Paper Example The church cannot be denied to have such power as to gather people as a force which can go against the government when the church does not agree with the leadership. Likewise, the government could be a strong force which could dissolve a church. Thus, the two oftentimes have to come up with solutions to bridge the gap and bind their forces to promote good leadership. America once experienced leadership under the government and the church and also witnessed many changes as the state tried to separate itself from the church. In this respect, it is interesting to look into this matter and examine the biblical principles concerning the government, which circumscribe the law and the role of the church or religion. In this paper, the focus will be on the perceptions of one man who was an expert in law—not only the Jewish law but also the Roman law, and at the same time converted to Christianity— Paul the Apostle. The Law As a Right Paul had always been a zealous Jew who, acco rding to the Bible, became a persecutor of the early Christians. In fact, before he was converted to Christianity, he stood approving the demise of Stephen who was stoned to death by people, believing that he was teaching things contrary to Jewish laws (Archeological Study Bible, Acts 7.60). When Paul was arrested after his conversion, he presented himself before Agrippa and confessed how he had been a Pharisee from childhood. He said that he did not simply persecute the followers of Jesus Christ but also imprisoned and killed them. In his argument before the Roman ruler and the Jewish officials, Paul not only presented the circumstances of his conversion but also used his knowledge of the Roman and Jewish laws to show that he was not worthy to be imprisoned. From this, it could be concluded that Paul looked at the law as a God-given mandate which should also be followed even by the great workers of the church, whether it is to their advantage or disadvantage. He presented his case before the appropriate audience whom he believed would be able to do something about his situation, and took advantage of his knowledge of the rules and regulations of the government and the church in order to show his innocence and demand an appropriate action. As a result, he was able to convince Agrippa with his speech about his innocence, so that the latter thought Paul could have been freed if only he had not appealed to Caesar. In addition, when Paul was arrested together with Silas in Philippi because Paul drove out the spirit of divination from a servant girl, he refused to be released without being escorted. Paul argued that he was a Roman citizen who was wrongly imprisoned because he did not undergo the lawful process of being heard. Therefore, since he was put to public shame for being imprisoned, he claimed for his rights as a roman citizen. During his time, Romans were considered a special breed of human beings who had extensive privileges. They were not supposed to be abused or manhandled the way ordinary people were treated (Vos 551–552), just as the imprisonment suffered by Paul. As a Jew turned Christian and as a Roman citizen, Paul did not simply let go of the circumstances and play his part passively. Rather, he took advantage of