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Professional Skills.

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Professional Skills Essay The business and political changes that have occurred since September 2002 has had various degrees desirable and undesirable impacts on the many aspects of the economy, such as consumers, producers, MPs, environment, health and different industrial sectors. The changes are likely to have continuing effects into the next year and probably even longer Interest rates and Exchange rates The changes in the interest rates in some of the major world economies, for instance Japan and USA, have had staggering impacts. The US economy has been seriously underachieving in terms of output and employment, which is why it has such a large balance of trade deficit. The Federal Reserve has therefore lowered its interest rate to help stimulate investment, trade and employment. However this tactic has not proven to help because of the general sluggish economic situation the world is in. The low exchange rate is supposed to increase the amount of foreign export but the exchange rate of Japan (main importers of US products) has also been falling. The lack of confidence in the Japanese governments economic decisions and falling interest rates has been a key reason for this. According to the theory of the International Fisher effect, falling interest rates will eventually lead to increases in exchange rates in the future. Therefore we can expect them to rise. The main effect of this is that the rest of the global economy will suffer, as the two major economies aren't performing. ...read more.


However, since September 2002 the emphasis has been on the disarming of Saddam Hussein from weapons of mass destruction, another aspect of the war against terrorism. The significance of such a war has lead to a lot of controversy, but the main idea was that it must be stopped for world peace. From a political point of view, the governments of the US and UK are having to pour a lot of their funds into planning and carrying out the campaign. This lead to them reducing their attention domestic issues, as a result, the opposing political parties used this as an argument that they current government is not good. Also, failure to accomplish their targets (i.e. Bin Laden is not found yet) further depopularises their reign as leaders. More focus on the prime ministers act against terrorism affects the well being of the public, i.e. the level of street crime in Britain has increases over the past year. From a business perspective, there were fewer flights because people were in fear of a highjacking. Also, prices would be reduced (so would profit) to attract people to fly and so the growth of airlines would decline. This is evident from American Airline's underperformance. Not only have they been making losses since the September 11th attack, they have also been on the verge of being taken over by other airlines. The falling share prices had put the chairman's job on the edge. ...read more.


Plenty of gaps in the system have already been found, for example there have been a number of cases when crooks have used forged number plates to enter the city and then not pay the fee. This means that the number plates that the camera spots in fact belong to a completely different driver who is then wrongfully accused for dodging to pay the fee. For a year of two, these frailties in the system will be spotted but then hopefully they would be corrected. Extended death sentences The decision to extend death sentences was proven to be favourable by he British public according to the informal poll carried out by the BBC website. This is because of the obvious reason that the public want to keep murderers locked up in prison longer and to also make murderers think twice before they actually kill someone. However, those who argued against this said that it would not give the murderers enough time to be better citizens when they are released. The affect this would have for the next year is that the amount of planned murders to fall but the amount of unintentional murders (i.e. when a drunk person murders someone) to fall at a slower rate. In conclusion, we can say that the business and political changes that have occurred will undoubtedly have affects that will stem into the long and short-term future. The intentional results will also be accompanied by adverse side effects that will have to be endured. Amit Sodha BIF 1 ...read more.

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