Dialectic of the Union Blockade during the Civil War Essay -- U.S. His

The Civil War in the United States from 1861 to 1865 serves as a dark reminder of how disjointed a nation can become over issues that persistently cause heated debate among party factions. Most students that have taken courses in American history understand the disadvantage possessed by the Confederate States of America as they fought against the powerful Union army for what they perceived as a necessary institution of slavery. Historians have debated over the effectiveness of the blockade and if it was important in creating the failures faced by the Confederate States of America. This debate has generated the contested question of â€Å"Did the Union blockade succeed in the American Civil War?† The blockade, whether considered a success or an absolute failure on the part of the Union, holds grand significance in the history of the United States. The increased development in the Union’s naval department correlates directly with the necessity of possessing ships that cou ld withstand the threat of blockade running. This dialectic will focus on two opposing theses on the matter of how successful the Union blockade was in guaranteeing a victory for the Union. Within â€Å"Reassessment of the Union Blockade’s Effectiveness in the Civil War,† M. Brem Bonner and Peter McCord make an argument for the success of the blockade by assessing statistical data comprised from the efforts of blockade-runners to breach the hindrance caused by the Union. The authors frequently employ the objecting side of the effectiveness argument when discussing the legality of the blockade and the successes some blockade-runners had in smuggling goods in and out of the Confederacy. On the opposing side of the argument, Daniel O’Flaherty condemns the blockade as ineffecti... ...he historian who reviews the event. The Confederates were able to continue blockade running up until the conclusion of the war, while the Union strengthened its navy in order to compensate for the imbalance of ship maneuverability. If the blockade proved completely effective, the supplies Confederate soldiers possessed throughout the war would have unobtainable via blockade running. It would also distort the history of the Civil War to name the blockade as the main reason for the South’s deterioration, when it only aided to existing problems leading to the conclusion to the war after the South’s surrender. Works Cited Bonner, Michael Brem and Peter McCord. "Reassessment of the Union Blockade's Effectiveness in the Civil War." The North Carolina Historical Review (2011): 375-395. O'Flaherty, Daniel. "The Blockade that Failed." American Heritage 6.5 (1955).

Porter Analysis of Starbucks

I. Threats of Competitors Now a day, Starbucks is very well known in the market, so with this competitors are arising rampantly. Small coffee retail outlets are growing rapidly in America and it seems to be multiplying. Based on the study of the Ivey Management, there are more than 3485 competitors in the market. All are coffee retailing or even cafe or with carts. In US, they have low barrier to entry in the retail specialty coffee market. This has resulted in a drastic increase in competition within the specialty coffee industry. The diversity among these competitors still remains very high but the grounds on which companies are still innovating and changing. As larger and larger companies enter the industry the strategic stakes become higher. An example of competitor is Caribou; they implemented an American Style cafe which is very suitable to the country while Starbucks implemented European Style which is new to the Americans yet somewhat not the same with their culture. II. Threat of New Entrants. Like what is said in the case study, the entry of barrier for coffee industry is very low. There are many potential new entrants like the once with no problem in capital as well as large or well-funded companies. Since the trend of specialty coffee is going up while basic coffee industry is going down, may are investing or starting a business of specialty coffee. Well, McDonald’s do want to invest on selling Starbucks Coffee which is a potential New Entrants who wanted to engage in coffee industry. III. Threats of Buyers. Due to premium coffee are with high cost, buyers tend to not buy specialty coffee. Another is consumption of coffee was reduced from 2-3 cups per day to 1. 7 cups per day only. Based on the study, appearance and development of the product affects the buying power of the customers. Another point is the new entrants offering low cost but quality coffee. This can greatly affect to the buying factor of the customers because there are certain amount allotted in buying beverages or an amount that fits their budget. Starbucks are serving high quality service yet high cost as well. On the other hand, health concerns are also a factor and a place where people can meet or relax when breaks. So Starbucks made its store suitable for relaxing as well as pleasing to the eyes of the customers. IV. Threat of Substitute For product substitutes, one can be water or on the grab sodas. Water is convenient for people as well as no harm in the body. This is a universal solvent where in people can get it for free in their house and bring it along with them. Another is on the grab sodas wherein they can buy it anywhere in a low price. Since coffee cannot be bought easily, people tend to buy the most convenient beverages which can substitute coffee. Another factor is the place or ambience of the shop, lower end coffee places or fast food chains can be a substitute also. V. Threat of Suppliers Since Starbucks is a big company, coffee bean suppliers are making moves to get Starbucks’ orders for coffee. These suppliers have no bargaining power because Starbucks can choose any suppliers available in the market. Another is due to the long process of acquiring the coffee beans, it takes a long time to produce coffee because the supply is short as well as the price of the coffee bean being sold is higher. One factor is the changing environment and fast innovations of technology, many developed a machine to have fast refining of coffee and this have a high bargaining power. Another is quality of the coffee bean being sold, since unforeseen events can happen, prices varies and can decrease the consumption of coffee.

Development in a Country Cause Significant Damage to the Environment? Essay

In this essay I am going to examine whether development in a country causes significant damage to the environment. Firstly, when a country becomes developed, they have to become industrialised first. This means that the country changes from being mainly an agricultural production and people living in the countryside, to the people flocking to the newly increasing cities, in search of more money and work from the factories that have been put there. With lots of people living in one area, things and places start to become contaminated, such as rivers as many cities are based around them. Fish that would once have lived in the river would be extinct due to the boats driving up the river to take or deliver supplies to the city. This is a serious issue for the world as for humans to wipe out an entire specie can have serious consequences, for example people further up the river might depend on the fish to eat, and just because the city being there, could threaten the existence of the community. Secondly, TNC’s will move their factories to developing countries due to lower tax laws which will boost their overall profits. When they build these factories the amount of pollution that is produced will be incredible that it is visible when you look at them. This causes the air that people breathe when they are at work and for the people are living in the surrounding areas to be very dangerous and contaminated, with some cases of people becoming very ill. In a country such as china for example, lung cancer is more common here than anywhere else in the world; and this is caused by the amount off pollution produced by the factories. Also, whole cities in china have been built in china where practically no one lives in, so people can go and live their to work in the factories, however, as no one lives there the raw materials have been wasted and caused pollution being made, but being useless. Finally, in developing countries, their natural resources are usually drained by western countries or TNC’s who exploit the developing countries for the materials that they desperately need. However when the resources have run out, if the world doesn’t have another energy resource other than oil, then the world will go backwards in time and technology, because we won’t be able to run simple things like radiators for example. In conclusion, I feel TNC’s are a major part to blame in the damage to environments, especially in certain areas like Asia, as they the exploit the easy law on pollution ect. to maximise their profits, but however don’t think of the effects and consequences. Natural resources – going to run out soon – be moving backwards instead of forwards

Life on Earth Worksheet Essay

Taxa to explore – Elephants. 1. Review terms (write definitions for these terms) Extant Species, families, or groups still in existence Extinct Species, families, or groups no longer in existence, end or died out Genotype Genetic make-up of an organism Phenotype Physical attributes of an organism, observable or measurable traits Synapomorphy Shared characteristic that are inherited from most recent common ancestor Background: There are three extant species of elephant: Elaphas maximus (Asian elephants), Loxodonta africana (African elephants), and Loxodonta cyclotis (African forest elephants). Their taxonomic hierarchy is as follows: Kingdom: Animalia Phylum: Chordata Class: Mammalia Order: Proboscidea Family: Elephantidae Genus: Elaphas Species: maximus Kingdom: Animalia Phylum: Chordata Class: Mammalia Order: Proboscidea Family: Elephantidae Genus: Loxodonta Species: africana Kingdom: Animalia Phylum: Chordata Class: Mammalia Order: Proboscidea Family: Elephantidae Genus: Loxodonta Species: cyclotis 2. Collect an image of each species. You will submit these as a part of your assignment. (see full assignment instructions) 3. Looking at these pictures, can you think of any EXTINCT animal or animals that might be a close relative of modern elephants? List it/them below. If you know the scientific name (genus and species) then you can put that. If you aren’t quite sure, just give the common name. Mammoth 4. Now think about EXTANT taxa. Identify 2 animals that you might expect to be the closest LIVING relative to the elephants. List it/them below. If you know the scientific name (genus and species) then you can put that. If you aren’t quite sure, just give the common name. Possible Relative A Possible Relative B Rock Hyrax Manatees 5. For the closest EXTANT relatives, what characteristic(s) of that animal or its habitat led you choose it as â€Å"probable closest relative†? (consider geographic location, size, anatomy, behavior etc). Be specific. Characteristics of Animal A Characteristics of Animal B -found across Africa and the Middle East -typically live in groups -has a prominent pair of long, pointed tusk-like upper incisors -In males, the testes are permanently abdominal -thick, wrinkled skin -Females have two teats, one under each flipper -teeth growing at the rear are continuously replaced throughout life Now to the science – Follow the link below to read about some of the extinct relatives of elephants http://palaeo.gly.bris.ac.uk/Palaeofiles/Elephants/firstelephants.html 6. How were the phenotypes of ancient proboscideans different from those of extant elephants? The ancient proboscideans differ from those of extant elephants because they have multiple pairs of molars and premolars, they do not possess tusks, and they retain canines on the upper jaw. 7. Based on the information in the web-site, where did the early proboscideans evolve? The early proboscideans evolved from Africa. More derived proboscideans (not ancient, but not extant either) also had a very different geographic distribution than elephants today: http://palaeo.gly.bris.ac.uk/Palaeofiles/Elephants/extinct_taxa.html http://palaeo.gly.bris.ac.uk/Palaeofiles/Elephants/mammoths.html 8. Which localities seem most surprising and why? North and South America because these locations were once abundant with these animals, such as mastodons, while having most of the animals originate from  the other side of the world. 9. Identify 4 synapomorphies that are shared between ALL of these extinct and extant taxa. 1. Tusks 2. Incisors and molar teeth 3. Trunk 4. Four column-like legs Molecular phylogeny In extant species, relationships can also be reconstructed based on DNA Think back to your best guesses of the closest EXTANT relatives of the modern elephants. Look at the .pdf named â€Å"Afrotheria†. The phylogeny described in this paper is based on molecular data (similarities in DNA sequences) 10. Based on that phylogeny, write in the sister taxon (taxon A) to Proboscidea. Give the formal name. Taxon A or Sirenia Proboscidea 11. Write in the taxon (taxon B) that is sister to the clade composed of (Proboscidea + Taxon A). Give formal name Taxon B or Taxon A Proboscidea Hyracoidea 12. Perform an internet search for these two taxa and find out their common names. What are their common names? Describe each.  The common name for Sirenia is Sea Cow. Sea cows are fully aquatic, herbivorous mammals that appear fat. They have forelimbs used for steering and a tail used for paddling. The common name for Hyracoidea are hyraxes. Hyraxes are well-furred animals with short tails and have poor internal temperature regulation. What was your thought/reaction upon discovering what these creatures are? My thought reaction was how can animals that look nothing alike be similar to an elephant if they visually look different. Believe it or not, there are morphological (phenotypic) similarities as well as dietary and behavioral similarities between all of these taxa. BEFORE molecular data was available, scientists already suspected that these groups were closely related. The DNA evidence only helped to confirm the relationships. We’ll do more on that in a moment. 13. Search the web to find at least two non-molecular synapomorphies between each of your modern taxa and the elephants: (be specific!) Animal #1 name Rock Hyraxes Rock Hyraxes are furry and have the soles of the feet with large, soft pads that are kept moist. Manatees have paddle like flippers and a snout. Animal #2 name Manatees 14. Which of the features you listed are more likely to survive in the fossil record? Explain why. Most likely to survive in the fossil record is the snout because it consists of the bones of the jaw which are very good for becoming fossils. 15. Which are less likely? Explain why. Less likely are the fur, soft pads at the feet, and the paddle-like flippers because all are more prone to decay rapidly because of being soft structures. The flippers are also more prone to not preserving quickly therefore eaten or broken down by aerobic microbes. Now for molecules: To see the actual molecular data used to create the phylogeny you saw, select the .pdf named â€Å"mammoth and sea cow†. 16. Go to page 409. Dots mean the base pair (A, C, T or G) is the same as is listed in the taxon that’s at the top (this saves ink!). Now compare the sequences for the African elephant and the Asian elephant in just the top row of page 409. How many molecular differences do you see in the sequence shown? There are 8 molecular difference in the sequence. How many molecular differences do you count between the African elephant and the hyrax? There are 11 molecular differences between the African elephant and the hyrax. 17. Based on anatomy alone (without the molecular evidence), would you have guessed that the animals in photos above represented the closest living relatives of elephants? Why or why not? Honestly, based on the anatomy alone, I would not have guessed that the animals represent close relatives of the elephants because of the physical anatomical characteristic they have. Most animals can have similar anatomy with slight differences that contribute to their survival in an environment. Initially, I thought that the animals had similar characteristics only because of natural selection and adaptation of their environment not because  of their common ancestor. This shows how molecular evidence can really help in seeing what animals belong in what lineages.

Exchange Rate Policies In Developing Countries

The monetary exchange in most developing countries is unstable due to the high level of inflation and weak currencies. The monetary policy of a country usually is affected by its monetary exchange rate. A country can attempt to engage on a reductive or expansionary monetary policy depending on the amount of money that is actually in circulation. A country with more amount of money in circulation with increasing inflationary rate tends to adopt a reductive monetary policy where bank interest rate is increased and expenditure on capital infrastructural goods is limited.On the other hand, an expansionary monetary policy encourages the increase in money supply to the economy by reducing interest and bank lending rate, and engaging more in capital expenditures. No matter the monetary policy embarked on by a government, this goes to influence the monetary exchange rate of such country. According to Svensson (2000) the significance of exchange rate on a country’s monetary policy lies in the additional channel that exchange rate provides for the transmission of monetary policy.Secondly, the exchange rate involve a forward looking variable in which case it provides valuable information in the designing and implementation of monetary policy. Thirdly, monetary policy is enhanced through foreign shocks that are mainly propagated thoroughly in exchange rate. A country can utilize either a fixed monetary exchange rate or a flexible exchange rate, depending on the supply rate of money and the monetary independence it choose to stick with.In a developing country, with weak institutions, the exchange rates of such countries are determined by relaying in comparative measure with currencies from other strong and stable economies. Thus, it is difficult for these developing countries to operate flexible exchange rates. As a flexible exchange rate requires that solid financial structure is laid, and consolidated, fiscal and monetary policy institutions are in place.Developing countries engages in fixed rate to operate its exchange rate. In operating, a fixed rate for monetary exchange entails that the country’s central financial institution, i. . the Central Bank buy and sell the domestic currency at a given rate. Furthermore, the viability of such monetary operation is entirely tied to the country’s level of international reserves held by its authorities. ECONOMICS INDEXES ASSOCIATED WITH A DEVELOPING COUNTRIES Most developing countries are consumers’ society with little production. Most revenue and means for generating foreign exchange for this category of country are on primary goods in form of exploration of natural resources and agricultural activities.Agrarian economies and exploration of primary products are mainly source for generating foreign exchange in developing countries. In other words, the economies of most developing countries are tied down to the apron strings of advanced economies. Electronics, technological produc ts, consumable products and finished goods are the main items of import for developing countries. The costs for importing these finished goods are more costly when compared with the amounts that are paid for exports of primary goods and raw materials from developing countries.The inequalities in the pricing regime in the international market are unfavorable for developing countries. This variable contributes to the foreign reserves of developing countries. Invariably, it affects the values of currency and its exchange rate. The monetary values of developing countries are weak when compared with those of vibrant economies. Inflation affects the economic growth and development of developing countries. In a situation where there is much money in the economy pursuing little goods in the economy, this situation leads to increase in inflation rate.Inflation reduces the purchasing power of people in a given economy. This weakens the value and use of money as a medium of exchange (especiall y in a galloping inflationary situation). To Ogbokor (2004), â€Å"Inflation, in a developing country, encourages inventory accumulation in the form of raw material, excessive investment in merchandise building and landed property. As a result, capital is prevented from being utilized for projects required for economic growth†.The implication of information in developing countries is that there brings about dearth of infrastructural amenities and the reduction of purchasing power of people for embracing a meaningful living. Financial institutions in developing countries, such as in Africa, are highly underdeveloped culminating in lack of depth financial consolidation, extensive inefficiency and over populated urban areas. The stock exchange markets in African countries are still in their embryonic state. They are just beginning to gain ground.In recent times, the Nigerian Stock exchange market (NSE) is making progressive growth in capitalization and growth in stock indexes. T he growth in the Nigerian market especially in 2007 financial operation year in the public reform policy taken in the country’s financial sector has aided the stock exchange market in the country. In 2005, the consolidation of the Nigerian banking sector through the recapitalization has brought great improvement in the banking sector and financial institution (Njoku, 2006).The great feet attained in the reform, policy has led the government to introduce this recapitalization policy in the insurance sector. In the past the Breton institution, such as the International Monetary Fund (IMF) and the World Bank have recommended several medicines for the ailing economies of third world and developing economies. Such measures to embark on a structural adjustment programmed that will involve the devaluation of their currencies, among other measures such as privatization of public enterprises, removal of subsidies on public goods and less government intervention in their countries econ omies inter-alia.Even though these developing countries have put the structural programmed into use there situation economically still remain the same, sometimes made worst. â€Å"This SAP-induced inflation has resulted in adverse income redistribution, leading to increased personal insecurity and lessened personal satisfaction, while heightening interpersonal and institutional tensions and deterring investment and inhibiting consumer spending† (Anyanwu 1992). MONETARY EXCHANGE POLICIES IN DEVELOPING COUNTRIES The move to find an appropriate policy for monetary rate for developing countries has being on for decades now.But the volatile capital situation in these category of countries have made it more challenging for finding a lasting solution for the monetary exchange these countries. In these view, Velasco (2000) argued, â€Å"a significant conclusion that is shared from the volatile monetary exchange rate from developing countries is that adjustable or crawling pegs are e xtremely fragile in a world of volatile capital movements. The pressure resulting from massive capital flow reversals and weakened domestic financial systems was too strong even for countries that followed sound macroeconomic policies and had large stocks of reserves†.Since the 1970s, the volatile nature of the exchange rate of poor and developing countries is seen to be pervasive; as there are no stable, developed and consolidated financial institutions to peg exchange rate for countries and partners that these developing countries transact international business. The concern here according to Collins (1995) was that â€Å"the market for the developing countries currency were so thin, creating a volatile exchange rate that would be disruptive for economic activity†.The missing link for developing countries for a lasting solution for its exchange rate has being on the lack of a consolidated financial institution and stable economy. This situation for developing countrie s is made worst during the 1970s and 80s. â€Å"Prior to the 1980s, it was widely believed that operating a competitive floating exchange rate regime required a level of institutional development that developing countries did not possess† (Quirk, 1994: 135). The volatile nature of the exchange rate as recognized in the economy of developing countries is not entirely an inherent cause sometimes the activities of foreign and developed economies.For instance, the emergence of the European currency bloc has aided in rendering the exchange rate more volatile in developing countries. This according to Collingnon (1999) cited in Kawai & Takagi (2003) â€Å"has made exchange rates between the three major world currencies more volatile and thereby contributed to the reduction of cross-border investment worldwide†. The economic structures in developing countries in term of its embryonic and underdeveloped financial institutions are contributory factors that are making them have an unstable and unpredictable monetary exchange policy.The explanation for the long run inflationary trend in developing nations, according to the Structuralists, is in terms of certain structural rigidities. These include market imperfections and social tensions in those nations, including the relative inelasticity of the food supply, foreign-exchange constraints, protective measures, a rise in the demand for food, a fall in export earnings, hoarding, import substitution, industrialization, and political instability, inter-alia† (Ghatak 1995).The devaluation of currency of developing country is done with the aim to create a real basis for measuring feasible and accurate exchange rate between imports and exports of transactions in the international market. However, â€Å"the usefulness of real devaluation in stimulating growth may seem self-evident; this view is not uniformly supported either by prior theoretical research or by the experience of countries implementing exchang e rate devaluations† (Kamin & Rogers 1997). Devaluation of currency of developing countries have it untold hardship and high cost for goods and services.Looking at the devaluation of the Nigerian currency, Anyanwu (1992) argues, â€Å"†¦the continued naira depreciation has encouraged the smuggling out of goods (especially food stuffs) leading to local scarcity and higher prices. It has also encouraged a brain drain, partly in an attempt to reap the benefits of naira depreciation, the remittances from which are mainly used for consumption activities, again aggravating local prices†. THE SIGNIFICANCE OF A FIXED EXCHANGE RATE FOR DEVELOPING COUNTRIESIn recent times, some scholars have conducted research to analysis the use of a fixed exchange rate as basis for structuring the exchange rate regime in developing countries. â€Å"Probity analysis is used to study the determinants of exchange rate regime, build their empirical models around a framework in which the polit ical cost associated with devaluation under fixed exchange rates plays a major role† (Frieden et al 2000). In a fixed exchange rate regime, the government of the developing country directly set the nominal exchange rate.Given the constraints and undeveloped financial institutions in developing countries, the practice of a fixed monetary exchange rate for developing countries is made difficult. The advantage of engaging a fixed exchange rate is to help stabilize a country’s economy. This is aimed at bringing structural change that would integrate the country’s economy into the world economy order in the quickest time possible. This has made currency board of most developing countries to take the move of attaining a fixed exchange rate as a priority that should be attain (Mart, 2004).Before the fall of the Bretton Woods system in 1973, many countries including many Latin American developing countries had adopted a fixed exchange rate regime. The reason for adopting this exchange rate regime measure is to control inflation, reduce exchange rate volatility or to improve competitiveness (Frieden et al 2000). In addition a fixed exchange rate regime tend to enable government of developing countries be disciplined in that they cannot fix any fiscal rate that would be excessive to cause the end or currency collapse.Fixed exchange rate sometimes is used as a short term corrective to harness a developing country’s monetary policy and help it gain credibility. For some developing countries like Poland, Mexico and Vietnam in the 1990s, the fixed exchange rate was utilized as a temporary measure to re-establish these countries policies to gain credibility (Ohno, 1998). Thus, a fixed exchange rate is acceptable in certain circumstances for developing countries, especially where there are unexpected real and financial shocks.However, this should not be permanently used as a measure for operating a developing countries monetary exchange. The flexibi lity exchange rate is more adequate for revamping the ailing and volatile exchange rate of developing countries. â€Å"In an unstable world economy, they must retain the ability to combine stability and flexibility as circumstances change. For the same reason, currency boards and permanently fixed exchange rates (with no escape clause) are not to be recommended† (ibid).In a galloping inflationary situation in a developing country, the exchange rate policy to adopt is a flexible one that allows currency to float and depreciate. After the tightening of the macroeconomic policies in such a country, it becomes useful to adopt a fixed exchange rate as a measure. As Ohno (1998) puts it, â€Å"As inflation subsides to a more manageable level (say, 10 to 20 percent per year), the fixed exchange rate becomes a symbol of monetary and fiscal prudence and its abandonment becomes politically too costly†.Invariably, it means that the utilization of a fixed exchange rate should come in when the inflationary rate of a developing country is becoming low and at a manageable level. Furthermore, the utilizing of a fixed exchange regime in developing country is significant in the sense that it provides stability of price to local economic agents. This is especially in the case where a country operates an open economy, in which exchange rate volatility may have substantial costs within itself (Frieden et al 2000). As earlier stated a country has the option either to choose a fixed monetary exchange rate or one that is flexible.For developing and emerging economies that want to choose a policy of a permanently fixed exchange rate this can be done through its currency board with it could adopt a common currency (‘Dollarisation’). On the other hand, developing countries can adopt a flexible policy, which according to Taylor (2000) is â€Å"†¦the only sound monetary policy is one based on the trinity of a flexible exchange rate, an inflation target, and a monetary policy rule†. However, the benefits and the cost implication of fixed exchange rates depend on the country and those variables and characteristics it is associated.For instance, a country with exceedingly high level of inflation with the urgently need to stabilize its economy will be beneficial to utilize a fixed exchange rate. â€Å"The higher the rate of inflation; i. e. one below some hyperinflationary threshold, the more a fixed rate will impose competitive pressures on tradable producers and more generally pressure on the balance of payments† (Frieden et al 2000). According to Collins (1995), a government of developing country should opt for a fixed exchange rate regime when it sense and anticipate a small misalignment cost from maintaining the existing peg.In addition, the need for government to adopt a fixed exchange rate is when she believes that discrete nominal exchange rate adjustments have only small political costs, when the government perceived her ability to manage a flexible exchange rate as low, or when the government attempt to stabilize a very high inflation. Third world countries usually are faced with political instability. During period of political instability, the adopting of fixed exchange rate by a developing country is more pronounced (Frieden et al 2000).The drawback associated with a fixed exchange regime for developing country is that an inflation differential between the pegging country and the anchor generates an appreciation of the real exchange rate, which in the absence of compensating productivity gains, hurts the tradable sector and might generate a balance of payments crisis (ibid) THE NEED TO ADOPT A FLEXIBLE EXCHANGE RATE FOR DEVELOPING COUNTRIES For a country adopting a flexible exchange rate, the government of such country has imperfect control over the nominal exchange rate in its monetary policy.In this case, â€Å"the actual exchange rate is influenced by some shocks both at home and abroad The greater the variance of these shocks the less control policy makers will have over the actual nominal exchange rate† (Collins, 1995). The right situation for a government of a developing state to adopt a flexible includes when it perceives and anticipate a large misalignment costs from maintaining a pegged rate, when the political costs to discrete nominal adjustments are high flexibility exchange rate is conducive in such situation.Furthermore, when the government believes her ability to manage a flexible rate was high, and when the government of the state is not planning to stabilize very high inflation (ibid). In the same vain Velasco (2000), argues, â€Å"If shocks to the goods markets are more prevalent than shocks to the money market, then a flexible exchange rate is preferable to a fixed rate for developing countries†.On the other hand, when every movement in the nominal exchange rate is quickly reflected in an upward adjustment in domestic prices, then the insulation provided by flexible exchange rates is nil and thus not expected to provide a satisfactory exchange rate regime (ibid). Under a flexible exchange rate, the change in relative price quickly takes place, unlike the situation in fixed exchange rate where it changes slowly. Thus, there is advantage for developing borrowing under a flexible exchange rate.A flexible exchange rate gives borrowers an incentive to hedge that may be absent under more rigid regimes† (Velasco 2000). With the advantage that accomplish flexible exchange rate, it is still expected that each developing countries should choose and adapt to its own exchange rate system with respect to common basket. â€Å"Whatever the formal arrangement that is adapted; be it a flexible exchange rate regime or a managed float, the important point is that each country in the region should stabilize the real effective exchange rate at normal times by targeting a common currency basket† (Kawai &Takagi 2003).The n eed for developing countries to adopt a flexible exchange rate is more on the volatile nature of the countries with weak financial institutions. The negative effect of exchange rate volatility for developing countries on trade is more obvious when compared to those of developed economies. Taking on comparison between the difference in exchange rate volatility between developing countries and developing countries, it is seen that work on Pakistan’s exports to Germany, Japan, and the United States for 1974-85 suggests that exports were significantly adversely affected by variability in nominal bilateral exchange rates.On the other hand, the effect of real exchange rate variability on the exports of Chile, Colombia, Peru, the Philippines, Thailand and Turkey have attained the clear evidence of generally considerably negative and substantial impact (ibid). Scholars have advocated more of flexible exchange rate for developing countries than a fixed one, however there are demerits associated with the use of flexible exchange rate. According to Collins (1995), â€Å"flexible exchange rates make it very difficult to alter domestic price and wage setting behavior so as to reduce inflation†.More flexible exchange rate regimes may result in higher equilibrium levels of inflation because they do not effectively discipline central bankers (ibid). CONCLUSION The monetary exchange rate of developing is characterized by a highly volatile and unstable exchange rate regime. Thus, it becomes difficult to adopt a fixed exchange rate regime, given the weak financial institutions in this category of countries. Furthermore, the embryonic state of capital market and other financial institutions in developing country further weakens the currency of these countries.Inflationary rate in developing countries are on the increase thus to stable the economy within shorter period, anticipating a short misalignment costs will be adequate for a government of a developing country to adopt a fixed exchange rate. On the hand to correct, a flexible exchange rate regime is suitable for a developing country in managing its economy currency stability over a longer period. The development of financial institutions and the consolidation of capital and money markets of developing country will aid them to embrace a feasible regime that would contribute to strengthen its currency value and ensure a vibrant economy.

Administrative Principles of Management Essay Sample

1. Division of LabourThis rule states that work can be performed more expeditiously and fruitfully if it is divided into smaller elements and delegating these specific elements to specific workers. This is similar to one best manner of making occupation as in scientific direction and occupation specialization in Bureaucracy. Each employee or a group of employee performs a specific undertaking. Division of labor harmonizing to occupation specialization is the chief map. 2. AuthorityAuthority is the given power ( based on legitimate regulation by organisation ) to an functionary to publish orders to subsidiaries and take work from them. This rule states that directors require authorization to execute their managerial duties. 3. DisciplineDiscipline is related with ordinance of behavior of employees at workplace. Without subject. authorization has no significance ; there should be person to obey the orders. This rule suggests that there is demand of a set of regulations and processs aimed at achieving good employee subject and obeisance. 4. Integrity of bidThis is the â€Å"one adult male one foreman rule† . An employee should have orders from merely one foreman merely. If a worker will have orders from several foremans he will be confused and over burdened. Besides there will be a job sing coverage. So this rule emphasizes on merely one foreman for a worker. 5. Subordination of single involvements to the organisational involvement.Employees must give their involvements for the good of the organisation. The organisational goals/ tasks/work would be preferred over involvement of worker or group of workers. Therefore an organisation should use merely those persons who are to the full committed to its aims and are willing to readily follow the organization’s mandates/rules. 6. Integrity of wayThis rule supposes that there should be merely one program and merely one foreman for each group of activities holding same aims. This is to guarantee that the organisation is prosecuting it all activities non in contradictory waies but there is alignment between activities. 7. Wage of forcesFair rewards work as a good motive for employees. Compensation for work done should be sensible to both – employees and organisation and it should be sufficiently motivational. neither overpaid nor underpaid. 8. CentralizationExcessively much centralisation leads to ineffectiveness and so does the decentalisation. There should be a balance of centralisation and decentalisation in organisations.The best attack to acquire the balance is top direction designs the broader scheme. policies and in-between degree and lower degree of directors interpret and operationalise them to work. 9. Scalar concatenationThis rule assumes that there should be clear hierarchy in organisation from top to down. The flow of communicating must follow the hierarchy that it should be purely perpendicular.Horizontal communicating is needed merely when there is pressing demand and permission from higher-ups has been obtained. 10. OrderOrder means making things in rational and logical mode. There should be a topographic point for everything and everything should be in its topographic point.An organization’s materials/resources should be at right topographic point at right clip. and its employees should be assigned to the occupations best suited to them. 11. EquityEquity means being sort. just and merely to your subsidiaries or employees. Equal and just intervention. nonpartisanship and bias free environment promotes employee motive committedness and trueness. 12. Stability of forces term of officeEmployees perform good when their occupation is secured ; they are protected from arbitrary dismissals. It is necessary to retain employees with organisation because high turnover rate may ensue high cost to organisation and leads to inefficiency. 13. EnterpriseOrganizations require directors who possess ability to gestate and implement new thoughts. They should be holding ability to self start and take on the hazard independently. 14. Esperit de corpsThe maintainance of high moral and unity among employees is an indispensable thing for success of organisation.

Risk Protection Measures for the Bank Essay Example | Topics and Well Written Essays - 1500 words

Risk Protection Measures for the Bank - Essay Example Bank A may have the option to propose an early termination date in order to avoid further losses (FN3). However the contract between the two banks should make provision for such losses and one of the best options open to Bank A is to enter into an ISDA Agreement. An ISDA Agreement allows a bank to operate in financial markets while conforming to strict regulations. The EU Directive 2001/24/EC dated 4 April 2001 has laid out specific guidelines on the winding up of credit institutions and will apply to both bank A and Bank A who are in Europe. (a) Article 25 specifically clarifies that netting agreements will be solely governed by the nature of the agreement that exists between the two parties – Bank A and B. Therefore, Bank A can cope with the risks by introducing appropriate clauses into the Schedule to the ISDA agreement. If Bank A has any intimation of the potential winding up of Bank B and then enters into any financial arrangements with them, recoveries will be limited, despite any risks. However, if at the time of entering the agreement, Bank A is not aware of any winding up, then financial obligations due to it from Bank B may be secured through the means outlined below. Derivatives are financial instruments that are used for financial speculation and their fluctuating value is caused by volatility in the financial markets1. Counterparties enter into derivatives for purposes of hedging and arbitrage to be derived in financial transactions through the management of asset liabilities2. Contractual provisions under ISDA Agreements include a Master Agreement which is standard all contracting organizations and an attached Schedule may be tailored according to the requirements of the two parties. Therefore, Bank A can tailor the Schedule by including a clause that will also regulate oral trading arrangements of the two parties.