Thursday, January 30, 2020
Trade Deficits and Weakening Dollars Essay Example for Free
Trade Deficits and Weakening Dollars Essay Economist Frank Shostak offers an unpopular view of the United States’ trade deficit and its effect on the country’s economy. The view is widely held that an increasing trade deficit ultimately leads to the unwillingness of other nationals to hold the American currency. The effect of such a development would be an ultimate decline in the United States’ dollar exchange rate. When United States nationals converts its dollars to that of another country, say the Japanese Yen, in order to procure their goods, this might be considered as the existence of a demand for Japanese money. This demand arises as a result of a demand for goods produced in Japan. If such demand is no reciprocatedâ€â€that is, if this American demand for Japanese products is not answered by an equal demand by Japan for American productsâ€â€then this could lead to a trade deficit. The important aspect of this trade deficit lies in the fact that the demand for American goods is not as great as American demand for foreign goods. On some level, money can be considered as a commodityâ€â€especially for the purposes of investment where interest becomes the price of money. When the demand for American money decreases, the price of money also decreases. Interest rates are an important part of economic growth as it denotes (in the most simplified sense) the worth of such strictly monetary transactions as investments, lending, savings, etc. It would appear that when the price of money decreases, the worth of money would also decrease, and this leads to a disparity between the worth of the U.S. currency and that of the Yenâ€â€in favor of the Yen. Shostak argues otherwise. Though he concedes that the trade deficit is related to the exchange rate of the U.S. currency, he does not consider the trade deficit to be the deciding factor of that exchange rate. Rather, he considers the deficit an unfortunate result of that decline in the exchange rate. The U.S. monetary policy is what he blames. He considers a wanton increase in the money supply as having precisely the same effect as counterfeiting. Below is a table showing the changes in money supply, interest rates, trade deficit and GDP between 1987 and 2005. Here it can be seen that a fall in GDP does occur in relation to a fall in interest rates. Though the decrease appears small, the comparison should not be exaggerated, as many fluctuations occurred in between the given time period. It does show an overall decrease in the net deficit, but this is shown as a percentage of GDP. The effect of one on the other is therefore not clear from this table. Money Supply (1987 = baseline) Interest Rates 1987 2005 1987 2005 100% 273% 6.5% 1% Net Deficit (as % of GDP) Gross Domestic Product 1987 2005 1987 2005 ~8% 6.3% ~3.4% ~3.3%                                                                      (Naito, Norrington Yamaguchi; Elwell, 8). However, according to Shostak, when the U.S. money supply increases in relation to that of another country (say Japan), yet all else remains the same, the amount of money competing for essentially the same amount of output rises. This scenario mimics a rise in demand, which leads to a rise in prices according to the price elasticity theory of demand. When this occurs, the comparison between the prices of two similar products in the United States and Japan yields an elevated price in U.S. dollars and therefore a deflated U.S. currency. This comes from the principle of purchasing power parity. However, it might be argued that the fall in the U.S. exchange rate could have the effect of reducing the trade deficit when the amount becomes expressed in terms of other nations’ currencies. The final analysis is that Shostak’s theory appears convincing especially in light of the rise in the U.S. monetary supply that seems to exceed GDP growth (see table) and the current weakening of U.S. dollar on the global market. The U.S. exchange rate in comparison with the Eurodollar fell 40% between 2001 and 2004 (Evans, 2). Works Cited Elwell, Craig K. The U.S. Trade Deficit: Causes, Consequences, and Cures. Congressional       Research Services, 2006. http://www.usembassy.it/pdf/other/RL31032.pdf Evans, Edward A. Understanding Exchange Rates: A Weakening U.S. Dollarâ€â€Good, Bad, or  Indifferent for Florida Farmers and Agrobusinesses? Gainesville: University of Florida            IFAS. 2005 http://edis.ifas.ufl.edu/pdffiles/FE/FE54600.pdf Naito, Yuki, Robert C. Norrington, Keiko Yamaguchi. â€Å"The United States.†A Multi-country            Evaluation of Trade Imbalances. Ed. Steven Suranovic. Washington DC: George           Washington Universtiy. 1999. http://internationalecon.com/tradeimbalance/US.html Shostak, Frank. â€Å"Does the widening U.S. trade deficit pose a threat to the economy?†The Daily       Reckoning. 2006 http://www.dailyreckoning.com/Featured/ShostakDeficit.html
Wednesday, January 22, 2020
The Comfort of Strangers by Ian McEwan :: English Literature
Review of The comfort of strangers by Ian McEwan ================================================== This is a very interesting book by McEwan as well as being rather confusing. The name ‘the comfort of strangers’ fits the storyline perfectly. This is a very mysterious book in which the two of the main characters Caroline and Roger are slowly tightening the noose on the necks of the other two main characters Mary and Colin. I think the book fits into the mystery genre as far as the writing of the author goes and I found that some parts of the book reminded me of ‘Enduring Love’. The way that that Colin and Mary blindly get involved with Roger shows one of many weaknesses in the novel. Roger’s shady character and his weird story about how his father was very strict and how his jealous sisters made him eat chocolate so that he would get into trouble with his father along with other things should have kept Mary and Colin away. Stories like this one, which require the reader to suspend disbelief as the actors venture further and further into the abyss are extremely hard to pull off, so it's not surprising that McEwan doesn't quite manage it. An author can get away with making his characters naive, but at the point where the reader is yelling at them and calling them idiots for following along with the novel's plot, that author has lost control of his own narrative. A big complaint that reviewers have had with this novel or rather this ‘short story’ is that the author works around taboo issues meaning he may talk about them for a moment or two and then ignores them. Another problem which links onto this is that many times the author builds up the story as something really dramatic is going to happen and then nothing out of the ordinary happens for example when Mary jumps in the water you would think that one of them may drown but it turns out to be something just ordinary. I think this has a negative effect on the reader as well as the fact that sometimes the reader is left to ‘fill in the gaps’ themselves when we are not given enough detail on the characters or the storyline. There is no real solution at the end of the novel. Another problem with the novel is how Mary and Colin’s sex lives suddenly become great again after meeting Caroline and Roger. Another similar instance is when Roger punches Colin in the stomach for NO reason. The setting of the novel, which is Venice, is not really used well by
Monday, January 13, 2020
Apple’s Supply Chain Management Essay
Abstract The paper explores Apple and its past, background, brand loyalty, problems, decline of product, and suggested solutions. Apple was started on April 1, 1976. It was established by three men; Steve Jobs, Steve Wozniak, and Ronald Wayne. On January 10, 2006, Apple released the MacBook Pro and iMac which was the first Apple computer to use Intel’s Core Duo CPU. Apple’s customers fly in from all over the world to see the opening of products and stores. They even propose outside the stores. Their fan base is because they have a good product. Not so much the price because you can basically get the same product at a lower price form one of Apple’s competitors. The problems that Apple is having is getting their product to the customer on time. Which many say is the result of bad supply chain management. The paper goes over how they got to the problems that they are having and some solutions to those problems. Keywords: Monopsony, Brand Loyalty Apple’s Supply Chain Management Background Apple is a very big company, and is a company that everyone knows. Apple was started on April 1, 1976. It was established by three men; Steve Jobs, Steve Wozniak, and Ronald Wayne. On January 3, 1977, Apple was incorporated without Wayne; he sold his shares back to Jobs and Wozniak for $800. A multimillionaire delivered the essential business knowledge and funding for the incorporation of Apple. By the end of the 1970’s Apple have a good sized staff of bother computer designers and a production line. The Macintosh was made well-known by the 1.5 million dollar commercial â€Å"1984†released on the third quarter of Super Bowl XVIII on January 22, 1984. The Macintosh at first sold well, but it soon withered off because of the high prices and limited choice of software titles. The Macintosh Portable was presented in 1989 and was designed like a desktop and weighed 17 pounds. In 1998, Apple’s iMac was introduced by a design team that was led by Jonathan Ive and he was also the man who designed the iPod and the iPhone. Apple’s sales improved from that moment. On January 10, 2006, Apple released the MacBook Pro and iMac which was the first Apple computer to use Intel’s Core Duo CPU (Lashinsky, 2011.) On January 17, 2011 Jobs announced in a memo that he would take a medical leave for an indefinite period. It has been said that because of Apple’s effective supply chain the company operates as a monopsony, which where one buyer has many sellers. Brand Loyalty Apple’s brand loyalty from customers runs deep in its consumers. It is very unusual for any product to have the kind of brand loyalty that Apple does. Apple Store opening can draw crowds of thousands with people waiting in line as much as a day before the event. People also fly in from all over the world to see the opening of products and stores. Some people say that it is the marketing and advertising is the reason that draws the kind of loyalty that Apple has. The loyalty of the customers goes as far as when people are waiting in line some of the fans use the opportunity to propose marriage. Problems After Jobs announced his medical leave, he appointed Tim Cook to his job. Tim Cook was the chief operating officer. He was the person who over saw the supply chain. When he assumed Jobs position he took on more work than he was used to. Therefore his work started to decline, he stopped focusing on the supply chain and started working on the advances of technology (Spence, 2012.) Decline of Product After the death of Steve Jobs, the company stock declined because of the products. There was problems with the shipping of the iPhone 5 because there was not enough made. When the iPad Minies reached the customers, they sold out in time for the press released. But when more orders came in for the iPad Minis the customers experienced longer wait time. This might have been due to the supply chain not working properly. Also the iPad Minis release date has been pushed pack. When Apple made the promises of an October event and missed the date. The other things that has been un-Apple-like was Siri, it was not the way that Steve Jobs would have liked it to be. He wanted it to be consistently amazing and it is not it had to be concern with an update. The Maps app in iOS6 lead to the discharge of two Apple employees and a public apology from Cook (Maisto, 2012.) Conclusion The conclusion to most of the Apple consumers would be to work more on their supply chain. Working closer with their suppliers will help with the overall product. It might be a faster shipping or faster assembly. But one thing is certain about working closer with their suppliers, it can never be a bad thing. The better relationships that you have with the people supplying you the product the better the product will be (Maisto, 2012.) Suggested Solutions Apple needs to fix a few things to get back on the money making wagon, so to say. They have a good product but it needs to be texted more. If Apple feels the need to release an iPhone every three months the customers will think why I should buy this one when it will be obsolete in about another three months. Another thing that Apple needs to work on is their supply chain. Since Tim Cook moved up in the in the corporation he has not been looking over the supply chain as well as he should be. I believe that he should be hiring more people to manage the supply chain and less people to engineer Apple’s products. They might come to realize that they will save money in the long run if they have better relationship with their suppliers and treat their workers better (Spence, 2012.) Future The future of Apple is not clear. Cook wants to bring more jobs to the United States. He says that more parts of the Mac will be brought over to the United States so that it will bring more jobs to the United States, an estimate of 600,000 jobs. Cook also wants to get in to the television market. He says that, â€Å"it is an area of intense interest to us (Maisto, 2012.)†References Spence, E. (2012, November 18). Apple’s supply chain issues reflected in stock pricing. Retrieved from http://www.forbes.com/sites/ewanspence/2012/11/18/apples-supply-chain-issues-reflected-in-stock-pricing/ Maisto, M. (2012, December 7). Ceo tim cook on apple’s future: Don’t bet against us. Retrieved from http://www.eweek.com/mobile/ceo-tim-cook-on-apples-future-dont-bet-against-us/ Lashinsky, A. (2011, August 25). How apple works: Inside the world’s biggest startup. Retrieved from http://tech.fortune.cnn.com/2011/08/25/how-apple-works-inside-the-worlds-biggest-startup/
Sunday, January 5, 2020
The Impact Of Intercollegiate Athletics On American...
Intercollegiate athletics in America got its start as student-run activity clubs loosely organized for competition against other local clubs. Eventually these clubs were taken over by college administrators looking to control what was perceived as a less-than desirable aspect of the college experience. Faculty sought control of athletics in order to regulate dangerous events, promote events that would interest alumni, and utilize athletics as a vehicle to promote culture at their colleges. Colleges and universities were originally created to train the elite men of new colonial society. The mind and body were intertwined in ancient Greek philosophy and practice, and the idea that physical activity and competitive play was beneficial carried over to a burgeoning new American educational system. However, some faculty members deemed such physical activities barbaric and uncouth. Despite this outlook, the popularity of intercollegiate athletics among students, alumni and community supporters continued to grow exponentially. In order to rectify this disconnect, faculty utilized the assertion of amateurism as a control mechanism towards the gentile notion of education. The faculty thought that if they could mold this competitive physical activity in an image they felt was appropriate, then it could be elevated to a more acceptable form and ultimately tolerated and continued. There was a distinct emphasis placed on the physical, mental and social benefits of athletics and onSh ow MoreRelatedFair Compensation For Student Athletes1554 Words  | 7 Pagesaccomplishments would fall upon the student-athletes. Unfortunately, none will realize the amount revenue they are contributing and that the real winners are the broadcasters, corporate sponsors, Universities and above all else, the National Collegiate Athletic Association (aka. NCAA). 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