Open-market purchases permit reductions in currency revenues and thus a lower inflation rate.

BUS305-10, Unit 5, IP Open-market purchases permit reductions in currency revenues and thus a lower inflation rate. The reduction in interest rates engineered through open-market purchases always yield smaller increases in the inflation rate than a reduction brought about by other means, such as a decrease in the required reserve ratio (the ratio of required reserves to the required deposits in given Fed banks). A policy-maker who prefers low inflation and henceforth a reduction in real interest rates should prefer open-market purchases. It is said that it is best to buy low and sell high in the case of long-term bonds, which are essentially IOUs, promises to repay a given amount of money within a specified time and often, by a specific date. Purchases of Treasury securities supply the necessary reserves to the banking system and consequently, downward pressure on the funds rate. Sales remove the reserves and put upward pressure on said funds rate. There are several advantages to Treasury securities: 1 - The market is large and liquid, since the Fed can conduct large trans- actions giving control over reserve balances and the funds rate 2 - They use open-market transactions to implement monetary policy and avoid directly affecting private capital, an important con- sideration in the conducting of monetary policy 3 - They are free of credit risk Federal Reserve banks are

  • Word count: 580
  • Level: University Degree
  • Subject: Business and Administrative studies
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What were the consequences of the Manchuria crisis on the League of Nations?

What were the consequences of the Manchuria crisis on the League of Nations? In this essay I shall be describing the affects that the invasion of Manchuria in China by the Japanese in 1932 had on the League of Nations. The crisis showed the organisational weaknesses in the League and its incapacity to react to emergency situations as the leagues only meet once a year. The investigation into the situation took a year to compile which determined Japan as the aggressor, as the investigation team had to travel to Japan by sea from Europe, which is on the other side of the world. Japan also hindered the progression of action against it by claiming it had invaded in self-defence of growing anarchy in China. By the time any action could be taken against Japan its military machine had already started rolling, making it difficult for any military force to stop it. Once Japan had been determined the aggressor the League should have tried to remove its forces from China under article 10, but the League had no army of its own to deploy against the Japanese. The only countries with the strength to remove Japan were the U.S.A and U.S.S.R and they weren't even members of the League. Nothing was done to remove Japanese forces as Britain and France weren't willing to risk their armies and navies on the other side of the world. As the League had failed to induce military action against Japan

  • Word count: 575
  • Level: University Degree
  • Subject: Business and Administrative studies
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"Decoding At the Moment of Consumption".

Margarita Banting FDNS 102.002 K2C September 30, 2002 "Decoding At the Moment of Consumption" In "Encoding, Decoding", Stuart Hall identifies with the moment of consumption. In that moment, the process of decoding occurs. Although the process of decoding may seem simple at first thought, it is actually complex. People's different ways of interpreting events is what makes decoding complex. There are social, economical, and cultural differences that should be considered. Thus, rather than simply decoding a message and absorbing everything that the producers wish to convey to the consumers, we must look into the denotative and connotative aspects of the decoding process, as well as "three hypothetical positions" from which the consumer can interpret the message. Once the "sign vehicle" has left the hands of the distributor, it is up to the consumer to decode and interpret the signs, or codes. But before decoding a message, we must take into account the social, economical, and cultural aspects of the consumer. Though there are simple signs that seem to have an almost natural interpretation with most populations of the world, there are also codes or signs that will be interpreted differently. How might the consumer interpret the message, based on their social, economical, and cultural background? For example, a statue of the Virgin Mary is shown to a third class person

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  • Level: University Degree
  • Subject: Business and Administrative studies
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The Deficit: America's Credibility Gap.

The Deficit: America's Credibility Gap March 8, 2004, pp. 132-140 Shawn Tully writes about how America's national budget has jumped from a huge surplus in 1998-2001, to now an enormous deficit. Even though there was an economic slow down during the beginning of this century. There is no excuse for the $375 billion deficit last year and additional $521 billion projected this year. The rationale for this spiraling downward trend is poor monetary spending and budgeting by George W. Bush and his White house staff. What one says and actually does are two different things. This has become a major focus for this election year since Americans, as well as foreign governments and investors whom fund the deficit, are now aware of this escalating problem which may hurt the U.S. economic recovery. Why do deficits matter? First, they increase the national debt causing government spending to grow because of the growing interest expense. Second, they leave us to the leniency of foreign governments and investors to finance that debt. Lastly, they show how the government cannot control their own spending. Right now the foreign investors have faith that our fiscal management will turn things around, however if they lose that faith then financing future deficits will be almost impossible. The prior presidencies of George Bush senior and Bill Clinton helped to create those deficit

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  • Level: University Degree
  • Subject: Business and Administrative studies
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Examine the reasons why companies like Samsung might decide to make an investment in the UK.

Samsung Question a) Examine the reasons why companies like Samsung might decide to make an investment in the UK. Fixed capital investment is spending on capital machinery, buildings and technology so that the economy can produce more consumer goods in future. Most economists agree that investment is vital to promoting the long run growth of the economy through improvements in efficiency and productivity. A feature of global economics in recent years has been expanding overseas investment by multinationals throughout the world. The abolition/reduction of foreign exchange controls in a lot of countries allows for freer movement of financial capital between nations. This has therefore stimulated foreign investment. Another reason for the increase in foreign investment is that many multinationals are moving towards investment instead of trade- so preferring to invest in plant and machinery closer to the markets they export to. Samsung, for example, is based in South Korea, but by building a new electronics plant in the UK, it is investing in a country to which it also exports. It would also be cheaper for Samsung to export their goods from the UK to the rest of Europe, rather than exporting its goods to Europe all the way from South Korea. There are many reasons for why Samsung chose to build its new plant in the UK. Increasing labour market flexibility has made Britain a

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  • Level: University Degree
  • Subject: Business and Administrative studies
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Explain the advantages of free international trade.

Explain the advantages of free international trade. Free international trade is the international trade conducted without the existence of barriers to trade, such as tariffs or quotas. Economic theory suggests that the free trade is a more effective route to economic development and prosperity than closed markets. It is likely to benefit countries for a number of reasons. First of all, free trade allows countries around the world to specialise in what they are relatively best at producing. This, according to the theory of comparative advantage, will increase the world output. For example, Saudi Arabia is much more richly endowed with oil than France. France, on the other hand, has a rich abundance of skilled labour and capital equipment in the defence industry. Hence, Saudi Arabia has a comparative advantage in the production of oil and France has a comparative advantage in defence equipment production. The theory of comparative advantage would suggest that Saudi Arabia will specialise in producing oil, France in producing defence equipment and that the two countries will trade one product for the other. The second reason for international trade to be advantageous lies on the existence of economies of scale in production. Economies of scale means that more output in a long run industry can be achieved at a lower cost. It is also a source of comparative advantage. This means

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  • Level: University Degree
  • Subject: Business and Administrative studies
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Motorola Inc -Case Analysis.

Motorola Inc -Case Analysis ) What are the key success factors for Motorola's ASIC Division? * Ability to adapt changes in the industry and provide new products. * Product Development time. * Strict Quality assurance measures. * Production system and plant designed to fit the needs of the division. * Shorter development to manufacturing cycle 2) Does a traditional standard cost system address these key success factors? The traditional standard cost system was designed for a old style or traditional production system. The dynamic changes, rapid volume production, number of different outputs of the ASIC division doesn't fit into the framework of the current accounting system. The traditional system was a functional based accounting system, while ASIC needs a product oriented accounting system. In many case functional based accounting would not be a meaningful measure for ASIC division. Currently, when variance was detected it was too late. Tied the variance to a specific product or to pinpoint the cause and correct the problem was not feasible under the traditional system. The larger time frame of monthly variance in this quick phase production system failed to account for the accumulation of positive and negative variance. 3) What are good measures of these key success factor? Deciding on a measure or a scale for a success factors for any industry a hard

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  • Level: University Degree
  • Subject: Business and Administrative studies
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How did the discovery of the New World change Europe and Europeans (discuss in terms of economy, political developments and general world view).

How did the discovery of the New World change Europe and Europeans (discuss in terms of economy, political developments and general world view) The discovery of the New World has totally changed European society and the impacts have influenced not only on the mental thinking but also on the politics all over Europe. In the Age of Discovery, the Portuguese aggressively built a monopoly in the spice trade from the east by dominating the trade routes around the continent of Africa throughout the sixteenth century. On the other hand, Spain wanted to think of some way to break the monopoly by developing a new western route to the eastern countries but the problem was that this route was considerably much longer than the route around Africa. During that time, the economy at the times was still based on agriculture and land was still thebasis of wealth. The problem was that the agricultural productivity was no longer sufficient to feed the population as well as produce sufficient materials for manufacturing. What caused the situation worse was that the money exchange was based on the amount of gold and silver and the quantity of these metals available for the economy was also decreasing as people traded their gold and silver for Eastern goods. It was Christopher Columbus that convinced the Spanish to set up a western expedition to explore the new route to eastern countries.

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  • Level: University Degree
  • Subject: Business and Administrative studies
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Supply Demand Analysis

Economics, supply and demand In the article we find that teenagers have the oppertunity to be demanding about their salary in the baby sitting field, because the amount of babysitters today are scarce. The babysitting population, teenagers, find themselves busy with school, part time jobs, and extracirricular activity. Teenagers with drivers licenses are even more scarce than those with out, all in all, It's hard to find a babysitter. Times have changed, just twenty years ago there were 33 million children who needed to be watched, and 39 million babysitters(age 10 - 19), recent polls suggest that children that need to be watched raised 18 percent to 39 million while baby sitters dropped 5 percent to 37 million. The rise in children coupled with American families spending more time out then years ago, has allowed the babysitters to set their price with out haggeling. Baby sitters are making well over the federal minimum wage of $5.15 an hour because they are in demand, and scarce; the babysitters who train in CPR, serve dinner, and drive are the hardest to come by and can demand the highest wages. In this article we see many examples of supply and damand and the powers of supply and demand. Babysitters are in demand, there is an increase in the amount of children who need to be watched yet there are relativly few who choose to babysit from the allready decreased amount of the

  • Word count: 539
  • Level: University Degree
  • Subject: Business and Administrative studies
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A New Slave Trade

A New Slave Trade How would you like to work all day, all year, all the time and not get any money? (pause) This is what trade is doing. (pause) Put yourself in Mundo's situation. You would work all day, all year, all the time and not get any money(pause). You have been a farmer all your life. You have always worked in the fields. You grow cocoa beans that make the chocolate that those in rich countries, like the UK, so often eat, while you are starving. You haven't been to school, you haven't the money. You can't read or write and you would love to go to school, even though those in the UK may not like it much. (pause) This is what trade is doing. (pause) Trade is now worth four trillion pounds- that is four with twelve zeros- and it's growing. If only people like Mundo could benefit. Imagine the huge impact on their lives. They could have some food and water. But with the trade rules, surely money is fairly shared out. This is what trade isn't doing. (pause) Why do they need to be changed? Why are we so harsh towards those who really need it? Aren't all men equal? Aren't we all the same? The answer is we are. But the trade rules don't show this. According to the rules, the trade decisions are fairly made. But this doesn't happen. Countries need to pay for expert negotiators, but some can't. while Japan has twenty five of them, others have none. (pause) Why do many

  • Word count: 526
  • Level: University Degree
  • Subject: Business and Administrative studies
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