Essays on Devaluation

An Analysis of Merger & Acquisition Strategy

Introduction There has been a major fall in the oil prices in past two years from 2014-2016. The decline in oil prices has led to a major impact on the energy sector making it difficult for energy producer companies to survive. However, despite the falling oil prices and damp prospects, there has been a major announcement of merger and acquisition that touched the $300 billion dollar mark in 2016, while the deal announcements in 2015 were in the tune of $3.2 trillion across the globe. Most of the surge in the energy sector is attributed to some of the ...

INVESTMENT ANALYSIS OF VIETNAM

INVESTMENT ANALYSIS OF VIETNAM

Summary

Vietnam has changed in the last thirty years from an agrarian country to a service and manufacture country leader in the world in growth and economic activity. The country has a communist system legally but, in the practice, the country has a liberal policy in the economy signing the Trans-Pacific Free Trade Agreement but maintaining the political control under the rule of one party. The country offers opportunities and risks for individual and corporation with the intention to invest.

Introduction

Vietnam is known in the world as the country where United States of America lost a ...

Essay one (China’s financial system)

Introduction and Thesis Statement The restoration of an economy from a depression requires a careful adoption of strategies. Various measures that governments use to promote the growth of key sectors as wells the entire economy have severe outcomes which must be considered before they are put in practice. Fundamentally, governments implement different fiscal and monetary strategies to solve economic problems, which may be successful or not. Thus, the analysis of the strategy to be deployed becomes essential to achieve the desired objectives. The financial sector in an economy is of central importance. As such, public policies that impact on ...

On May 4, 2016, the New York Times printed an article by Paul Krugman in which he posited his opinion on Real Exchange Rates and European Adjustment. The author pondered initially what the correlation between real exchange rates and trade adjustment would look like. His question arises from common criticism he hears, that devaluation of the local currency either has not worked or is not needed. Krugman then shows a graph (see Appendix) which clearly displays that Ireland, Greece, Portugal and Spain (countries that have experienced currency devaluation) have experienced a higher change in the current account than European ...

China

1. COUNTRY

We have chosen China as a country for analysis

2. RECOMMENDATION We have decided to convert US dollar to Chinese yuan on May 24, 2016. The total cost in dollars according to this option is calculated further in question 9. 3. CHINESE ECONOMY OVERVIEW China’s role in the international arena has been growing in the recent years. Apart from being the most populous country with over 1.3 billion people and one of the largest countries in the world by territory, it has been experiencing substantial economic development in the past decades (Naughton 3). China is the second largest economy in the world after the USA. ...

Is the “Beijing Model” Applicable in Other Countries?

Introduction The Chinese economical development is under close examination of the experts across the world as the country has succeeded to achieve the leading positions across the world based on its economical model. Some experts believe that Chinese model of economical development may be applied by other countries, while the opponents to this position state that this approach may exist under the circumstances available in China. Since second half of the twentieth century, Chinese development is featured with permanent growth with annual rate of 10%. In the contemporary economical society, the GDP in the country is higher up to ...

Introduction

The exchange rate has become an integral component of modern economics. Its role stems from its far-reaching effects on the economy of a country, investments, the profitability of firms, and personal finances. Countries have become even more interdependent due to the rapid advancement in communication technologies and the expansion of global trade, which have significantly reduced the geographical distance between both individuals and countries. However, since nations use a broad range of domestic currencies with different values, trading partners must, therefore, rely on currency conversion methods to facilitate global transactions. This paper explores the importance of exchange rate and ...

The problem of the exchange rate differences between different currencies is the special issue to be defined in the process of estimation of the company real value. The interrelation dollar-sterling equals approximately 1.5 % as for the 1983 year. This correlation means that the pound sterling is devaluated currency comparing to dollar. The worth of the pound sterling is higher than that of the dollar. It is well-known fact that the stronger is the currency the more profitable are the investments made in this currency. From this only statement and the dollar/pound correlation we may make the conclusion that the ...

Inductive reasoning depends on past encounters to frame a conclusion. Along these lines, gaining from past encounters one can utilize inductive thinking to arrive at a conclusion. In the expert life where this can be utilized is at the enlistment space. From past encounters on which kind of or aptitudes required for an occupation, we can finish up what kind of people will be fit for the employment. If there should arise an occurrence of deductive reasoning, we can utilize sensible explanations to go to an induction. For instance, in day by day life we can utilize this aptitude ...

Commentary A: The Effects of a Slowing Chinese Economy on the World

Last year, the Chinese economy reported a 6.9% growth rate for the economy overall (The Economist Staff 2016). For all intents and purposes, a 6.9% annual growth rate is immensely healthy; a country like the United States generally experiences a significantly lower growth rate for a number of reasons. However, the United States is considered a developed nation, while China is still in the developing stages of growth (Qi 2016). However, despite these respectable numbers, some economists are quite alarmed at the current situation in China—and some have even begun to draw attention to the slowing Chinese economy ...

Insecurity and Currency Devaluation in Africa: A Case Study of Nigeria

Insecurity and Currency Devaluation in Africa: A Case Study of Nigeria

Introduction

Geography and history have truly taken its toll on Africa. Africa, the cradle of civilization, continues to be an enigma to the rest of the world. The continent commonly referred to as the Dark Continent has suffered from gross prejudice, stereotype, discrimination, and neglect from the rest of the world. Most Europeans and Americans see Africans as inferior, living in the jungle (forest), uncivilized, primitive, violent cannibals and so forth. But obviously, recent occurrences in Africa have proved them true even though not in toto. The genocide and ...

Abstract

The recent activity of PBOC (People’s Bank of China), the devaluation of Yuan with respect to dollar, is often seen as one of their strategic measures to boost the poorly performing export industry of China. Many international exporters from outside of China have been severely hit by this move as the costs of Chinese products declined tremendously. This incident is proves that international markets are always clouded by numerous risk factors such as the one mentioned above. But that should not be deterrent for businesses trying to venture into international trades. In most of these cases, speculative business ...

Introduction

The financial crisis that extended throughout the world resulted into substantial back drop in the pace of growth of most of the developed countries and has by this time affecting financial markets and growth prospects in the countries developing. The adjustment measures that were structurally set up, the limited or no protection for emerging markets or economies, globally there were unregulated free markets, and debt accumulation by nations all led to the global economic and financial crisis.

This period was one that saw economies collapse, markets stumble, poverty and unemployment among individuals in various countries increased to alarming levels. ...

Discuss the measures that a government can take to improve the balance of trade in the short- term

A depreciation in the value of currency exchange of a country should help boost oversees’ demand for U.S. exports because American firms will be able to supply more cheaply internationally (Keeler, 2007). A country can devalue its currency by a large margin in one or two installments in quick successions so that foreigners can find goods and services of a country cheaper to buy and boost exports rapidly.

Another method that a government can use to improve balance of trade over the short term is to reduce demand in the economy thereby reducing consumer spending in the economy. The government can use fiscal ...

1. How important is international trade to the U.S. economy? If the European euro were to increase in value (appreciate) in the foreign exchange market, would it be easier or harder for the French to sell their wine in the United States? Suppose you were planning a trip to Paris. How would appreciation of the euro change the dollar cost of your trip? .

International trade is important to United States’ economy. This is because just like any other country in the world, United States is deeply enmeshed in a global web of economic relationships that involves trading of goods and services. ...

Every nation has independence to choose, which exchange rate system it will follow. The choice for selecting a suitable exchange rate ranges from a flexible exchange rate or fixed exchange rate system. Under floating exchange rate system, the value of the currency is decided by market forces, while, under fixed exchange rate systems, the currency of the country is pegged against some standard of value. The choice of exchange rate is a tough task and depends significantly on the freedom of capital to flow in and out of the country. However, one negative effect of allowing the free capital flows is that ...

Currency Wars

Currency Wars is also referred to as competitive devaluation. It is a scenario where countries compete against each other to gain a low exchange rate for their own domestic currency. As the country’s domestic currency falls, so does the price of exports from that country. The imports become expensive and the domestic industry flourishes due to increase in demand from the domestic and foreign markets. The leaders of G-20 nations met in Moscow and took some important decisions regarding currency wars. In a statement issued at the conclusion of the conference, the finance ministers of G20 promised, by issuing a statement, that ...

Thesis

This Article is on heavily debated issue of DWYL (Do What You Love) by Miya Tokumitsu. Writing for Jacob Magazine she discussed how DWYL is the official motivational slogan for employees of our time, but embracing this mantra is more dependent on the person’s socio-economic status. The issue with DWYL is that it devaluates work rather than salvation that includes dehumanization of majority of labourers. Straining yourself over finding your key to success can become a futile exercise and if you haven’t found the passion you can, chose to live a normal life like many do and call the ...

- Introduction Motivation is a behavioral concept used to illustrate momentary effects of administration of a conditional operation. A motivating operation was initially developed in order to show the results of changing the normal conditions of an organism by either increasing or reducing the operant can either increase or reduce its effectiveness. Motivation can therefore be defined as a measure of effectiveness on change of amount of a reinforcer. This operation affect whether an organism wants or does not want a stimulus. Motivating operations that result increase of effectiveness of a stimuli are referred to as establishing operations (EO). On the other hand, those ...

ITERNATIONAL MONETARY SYSTEMS

Abstract The purpose of this paper was to study three main monetary systems: the Gold Standard, the Bretton Woods, and post-Bretton Woods. International monetary system is a set of methods, tools and intergovernmental bodies, with the help of which the mutual payment and settlement turnover function within the global economy. There existed and succeeded each other three international monetary system. The first one, the Gold standard, was based on gold which was the main form of money. National currencies were pegged to gold, and the gold content of the currencies was correlated with each other at a fixed exchange ...

Written at the precise moment in relatively recent American history, the so-called ‘women’s liberation’ movement occurred. The article associated with the fallout, or brilliant piece alluding to what the feminist movement criticized, a literary rant on wanting to have a wife and outlining the reasons why poses much fodder for contemplation. Judy Brady penned the article which appeared in ‘Ms. Magazine’ in 1972, having been later re-printed in 1990 by the same publication of ‘Ms. Magazine.’ This paper fosters an argumentative thesis that shall hold to three claims in connection to the main idea in this essay, which is: The ...

What is the structural adjustment?

Structural Adjustment Programs were instituted to offer countries in need, the opportunity to avail loans from the International Monetary Fund or the World Bank. In place since the first half of the 1980s as an economic policy as such developing countries affiliated with World Bank and International Monetary Fund (IMF) can benefit from it, by the provision of loans qualified on the espousal of such policies(W.H.O, 2014). Elaborating, the loans are associated with circumstances akin to substantial policy reforms, the framework of which must be complied prior to availing the loan (Abugre, 2000).It was intended atevolving the ...

Introduction

It is the role of the government to establish regulations guiding business principles and strategic management. When the government imposes these regulations businesses adapt by changing their operations and processes. Time and again the government keeps changing its frameworks forcing businesses to adjust on their operations. The effects are determined by the levels of profitability and competitiveness of businesses. Business owners are obliged to adhere to government rules and regulations by implementing polices aimed at achieving the government objective. When the government raises its expenditure, for example, it injects income into the public. This creates investment opportunities or ...

Impact of Currency Devaluation on Argentina’s Economy

In January 2014, Argentina devalued its currency, peso, by 15 per cent against the United States dollar; this represented the sharpest decline since the 2001 devaluation when Argentina had failed to pay its foreign debt. Previously, the Argentine economy experienced current account surpluses due to high commodity prices and competitive exchange rates. Nonetheless, poorly formulated and implemented policies led to a decline in the current account balance and finally into a deficit. The devaluation of the currency will significantly lower the price of Argentine products in the international market increasing their competitiveness. In the converse, imports will be more expensive. In ...

In the years 2006 to 2009, the U.S economy faced a housing crisis that caused financial turmoil and panic around the world. The crisis arose because of flawed financial modeling and excess borrowing, based on the assumption that the house prices could only rise. Fraud and greed also play some part. The paper analyzes how the events unfolded based its impacts and the role of the government in the matter.

Major Problems

Many economic problems coincided with the mortgage crisis. The housing crisis resulted to the mortgage delinquencies and subsequent closure. Most of the housing related securities decreased in value substantially. There ...

Austerity

a). The current deficit panic and the debt, which are associated with recession has created an alarming situation in most of the countries, and threatened the economies of countries. They are however, a staple of the politics of several countries. In order to cope with the problem of fiscal deficit, and debt, the governments of many countries are adopting austerity measures. The republicans are demanding cuts and the Democrats are demanding cuts, and an increase in the tax. But, as a matter of fact, the budget cuts are not the right thing to do at such moments. In this regard, if the ...

Mid Term Integration Paper Mid Term Integration Paper

Question 1

The book of Robbins (2011) explored the most successful culture – capitalism. The author presented historical, anthropological, and economic framework of capitalism origins thus explaining problems caused by globalization. Robbins (2011) succeeded to attract attention to global problems caused by expansion of capitalism and explained why capitalism generated resistance. Robbins (2011) stated that embryo of capitalism as a distinctive culture emerged five to six centuries ago in Western Europe. Core concepts of capitalism culture are rooted in the statement that commodity consumption is the source of well-being. Further, this idea was ...

Describe one meta-analysis from the "Role Congruity Theory of Prejudice toward Female Leaders" by Eagly and Karau (2002).

Introduction

Despite the fact that people anticipate reduction in the manner in which female leaders are disadvantaged, still there is evidenced favoritism to male leaders as compared to female. This can be demonstrated clearly by the two types of prejudices stemming from female gender role. (Diekman, B. and Hirnisey, L., 2007)

The Gallup Poll experiment

Goal This experiment is purposefully carried out to demonstrate attitudinal approach. Method Participants were asked whether they preferred male to female bosses or vice versa. Responses were collected ...

Greece-Euro Crisis: A Background

In 2001, Greece became the 12th European nation to get the membership of the EU, and endorsed the Euro as its single currency of the continent. The country got the EU membership that would put Greece strongly placed in Europe. Nevertheless, even then a number of economists were afraid that the Euro's stability could be affected by the inclusion of weaker countries from the European region. With the aim of qualifying for Euro membership, Greece was required to adopt stringent austerity steps, mostly through massive cuts in public expenditures. When the euro was launched in global financial markets in ...

In the current competitive global economy with increased globalization, international trade continues to play an imperative role in the US, as well as other global economies. The US has the most diverse and productive economy globally due to its engagement in the international trade. Although the majority of the US citizenry does not recognize the importance of international trade due lack of direct impact on their daily lives, it plays an essential role in the economy. For example, it is estimated that a combination of foreign direct investments and international trade comprise a third of US economy. International trade plays an ...

Article Review: Japan’s Growth Strategy is All Wrong

Abstract The article Japan’s growth strategy is all wrong is about the policies implemented by the Japan government led by Prime Minister Shinzo Abe that is viewed to jeopardise the country’s low interest rate environment that is conducive for spending and investment. The purpose of the student in writing this paper is to present the economic problem faced by Japan as an implication of the policies executed by the government, applying the concepts and principles that I have learned in my Economics. The article entitled Japan’s growth strategy is all wrong is about the ...

It has been a common observation in our societies that someone doing the same job for years eventually gets fad up from it and tries to avoid it as much as possible. His efficiency gets weak he does not remain able to provide further effective work outcomes as he was used to do. In extreme cases, it has also been observed that the person eventually leaves the job since he feels that he cannot do any more work. Similarly, when someone is assigned to take care of some person who is chronically ill or disable, initially the caregiver has enthusiasm ...

Introduction

The Great Depression is the most economically debilitating event that has struck the United States (US). It resulted to the downfall of commercial activities, loss of employment and widespread poverty that has greatly affected much of the US populace. There is an understanding that the Great Depression has its roots on various causes, yet the most compelling reason lies on the implementation of the Smoot-Hawley Act. The Smoot-Hawley Act involved the use of higher tariff rates on various imports, most notably those that are from China. Implemented in 1930, the Smoot-Hawley Act imposed ...

The Bretton Woods conference held in 1944 in New Hampshire in the United States of America at the Mount Washington Hotel, situated in Bretton Woods. The conference also known as the United Nations Monetary and Financial Conference had 730 delegates each representing the allied nation. It aim was to put in regulatory measures to control the international monetary system. The conference aimed at putting the world currencies and monetary systems to order after the World War II. Many policies were passed at the conference, but they became effective in 1958 because the European currencies were not convertible at the ...

Introduction

The US Dollar is the authorized currency of the United States and other foreign countries. In different countries, it is used as the official currency. Therefore, it value is very crucial both to the United States as well as to other nations in the globe. Being the most favorable form of currency in the world, the US Dollar is used as a mark for the value of other currencies. One of the most competitive upcoming currencies is the China Yuan. This is the official currency for the China Republic. Following the rapid economic growth of China, this currency is appreciating ...

Introduction

Needless to say, people of today have changed the traditions and lifestyle of the current world immensely! The hot topic of today called Globalization is still gaining momentum. But, what actually is globalization? Let’s put some light on it to understand and grasp the concept quickly. In lay man terms, Globalization is a normal parlance that can be termed as a process that indulges interaction and integration of the people, governments, corporate and companies of different nations across the world. It is a very simple process which is driven due to international trade, business and investment that is backed by ...

The crisis in Europe has exposed the deep gap in the European countries’ competitiveness. Southern European countries are lagging far behind other European nations such as Germany and France. Principally, Europe must address the two macro-economic imbalances which is at the heart of this long standing crisis. These are the external and fiscal problems. (Farhi, Gopinath & Itskhoki, 2012) The consumer confidence, as of June 2012, decreased by 0.5 point to -19.8, while it remained for almost a year below its long-term average of -12.8. This weakening is based on the EU consumers' more negative assessment of their general economic ...

Venezuela is a Latin American country whose one of the main exports is oil. It has rich oil deposits which make a great contribution of to the national income through exports. This oil trade accounts for the largest share of the Venezuela’s exports from the industrial sector. The industrial exports in turn contribute about 60% of the total gross national income. Oil thus forms one of the basic economic generators or foreign exchange earners (Weisbrot, 2). A review of the Venezuelan economic development reveals that the economy has grown by over 94% of the anticipated rate. Though this has ...

In recent news, the problem of the Eurozone has been in the interest of various countries due to the economy’s influence over the World Market. While some of the older members of the European Union managed to apply the Euro without many effects in their economies, other member had experienced various financial problems such as debt and increased inflation. Now, these troubled EU member states are facing complications in recovering their formerly stable economies. This problem is still currently present in some member countries, with Greece being the centre of the current economic problem of the Eurozone. Before ...

Question 1

Most developing countries have large balance of payment deficit that have accumulated over the years. This has been caused by the high level of dependence by developing countries on the outside world which is evidenced by the large proportion of imports relative to exports. There various measures can be used by developing countries to correct balance of payment deficits.

First, a country can devalue its currency. Devaluation of a nation’s currency will result in downward shift in the value of the domestic currency relative to foreign currencies. Devaluation of the domestic currency will reduce the prices of exports while increasing ...

This paper is going to discuss the European sovereign debt crisis of 2010 to date, and especially the crisis that hit two particular governments in the sovereignty, Greece and Ireland. The two governments have recently received bailouts, or financial support from the EU/ IMF following the two nation’s financial crisis of 2010. The two countries had similarities in regards to the support owing to the fact that the two states had troubles with their government finances. The causes of the troubles, in addition to the terms of the support received by each nation, and the prospects of the ...