Essays on Euro

German authority and hesitations have since decided the determination of strategy choices in the EU. There is the inexorably intergovernmental modus methodology of the EU system. Foreign accomplices, for example, the U.S. progressively recognize Berlin as the strategic place in the Euro zone. Concerns about Germany's future remote and security role persevere. The change of political initiative in Berlin was caused by the September 2013. Federal decisions have expanded the interest for investigation of German European, external, and security strategies. Basing on the above notions, it is true that the making of Europe was Germany’s answer to its Continue reading...

1. What are the advantage and disadvantages of using currency futures and options to hedge?
1. Using Currency futures and options to hedge certainly have their pros and cons. The first and perhaps the greatest advantage is that hedging acts as a tool that can be used to diversify, which in turn leads to higher returns on investments. Secondly, hedging helps cut down the uncertainty levels by curbing down on the risk factor. This can lead to an increased sense of surety for a particular business, thereby ensuring that the business operates in a smooth manner. Lastly, hedging provides Continue reading...

The Challenges faced by the European Union

This paper discusses two specific challenges that the European Union (EU) is facing currently. One is the democratic deficit and the second challenge is the euro crisis.
The ‘democratic deficit’ can be defined principally as the disagreement regarding the lack of democracy in the European Union as well as in several of its other bodies. It is apparently claimed that due to this democratic deficit, the European Union and all of its other bodies are unapproachable to the common people as their functioning methods are extremely complex in nature.   At each and every single stage of the process of Continue reading...

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- Performance Overview:
Adidas has an impressive record during the year 2013. Its licensees grew 16% and the number of factories under these licensees grew by 46% and the total number of factories under its social compliance system grew by 8.5% over the previous year. The number of employees grew by 10%. The group achieved a gross margin on 49.3% and an operating margin of close to 9%. Group sales reached Euro 14.492 Continue reading...

This essay studies the relationship between European stock market share and global market share over the period between 1 March 2007 to 1 July 2013. It is evident that stock returns and variations in sentiments are positively concurrent for European and Global countries, with Germany as the main exception. Moreover, share market returns because consumer confidence in most countries at very short horizons, like two weeks to one month. The share market confidence relationship in most countries is driven by expectations about economy- wide conditions rather than a country's finances. This shows that the confidence share market channel is Continue reading...

The euro area or euro zone comprises of all those countries, which have accepted euro as their currency. Currently, 18 European countries are operating under the euro zone, and the multinational companies of these countries are facing the positivity’s and negativity of working under the euro zone. The main aim of the euro zone is to maintain stability and economic growth in the respective countries by the use of a single currency.
Talking about the pros for a multinational which work under the euro zone, one advantage is single currency have encouraged trade between different countries within the Continue reading...

Reflection on managing international market mix

The international laws affect people on an international scale and are established to provide a ground for decision making on such scales. However, when it comes to pricing in the tourism industry, there is no law that prohibits different charges for different countries and regions. Since different countries and regions use different currencies and of different values, the person charging is only bound by the laws of the destination country in coming up with the charges. The question arises on the ethics of doing so. In a business, one is out to offer services and make profits. Such would Continue reading...

Question One: How the US should deal with China

In the course we had discussed a number of readings that suggest that the US should deal with the rise of China by employing balance-of-power tactics. Other readings argue that the US can manage its relations with China more optimally by making China an equal co-partner in international institutions. I agree with the first perspective which states that the US should deal with the rise of China by employing balance-of-power tactics. The optimal option which aims at making these two countries equal co-partners in international institutions would not work and if attempted would be likely to fail shortly after Continue reading...

Renewable energy resources are those—unlike coal and fossil fuel—that are continuously being replenished over time (BBC). Wind and biomass are some of the many alternative energy resources used today. These alternative resources of energy does not produce greenhouse gases thus, they are environmentally friendly. However, both renewable energy resources also have their downsides.
While wind has a zero net emission of CO2 the biomass fuel cycle emits a negligible amount of CO2 during electricity production since the greenhouse gas is fixed by plants. At optimum conditions a wind turbine has the capacity to produce at least 500kW Continue reading...

The European central bank establishes policy for all countries that use the euro. Among these countries, there is disparity in economic development and strength. The euro as an international currency is used in many transactions in many countries within the euro zone. Any economic decision made by the ECB and the countries that are at the core of the euro zone potentially affects the economies of Italy, Spain, Greece and Ireland.
Germany and France are strong economies in the euro zone and trades with relatively weak economies in the zone on a day-to-day basis. They largely control the euro Continue reading...

PAPER IS SUBMITTED TO THE FACULTY

EU - is the association of 28 European countries, united for the purpose of ensuring peace and prosperity on the basis of general economic, political and social goals. Since the very first day of creation – it has faced numerous problems, which have questioned the principles this organization is based on: “liberty, equality, fraternity”. The main ones are: the problem of economic equality, massive immigration problem, the problem of national language and the competition for the place in the European Parliament. But, the economic problem has been affecting a number of members of this union and is the key problem, Continue reading...

In his essay “Europe’s Perfect Storm: The Political and Economic Consequences of the Euro crisis,” Jan-Werner Muller argues that theresults of euro crisis had adverse impacts on the economic and political powers of some of the countries. Muller bases his argument on the regional imbalances between several European Union member states with his argument based on the rising Euro related crises which he states that they are the results of conflicting political agendas and economic imbalances experienced in the North and Southern parts of the European Union countries which were stimulated by the biased EU laws. The claims Continue reading...

Abstract

The US Federal Reserve and the European Central bank perform the function of formulating the monetary policy of US and Euro zone. The banks use different tools to formulate the policy as discussed in the paper. The structures of these banks are analyzed. The two banks have recently adopted different security policies that have caused the US treasury to run out of funds. Federal Reserve together with other banks plays a role of controlling the money supply, and this means that the banks shape the financial system of the world. A policy adopted to delay dividends shows that these Continue reading...

"Risse, Thomas (2010): A Community of Europeans? Transnational Identities and Public Spheres
The book ‘ A community of Europeans? Transitional identities and public spheres is piece that explains the relationship among the countries in Europe. In providing a review on this book the paper will focus on the argument of the author on the relationship in this zone. The paper will also provide an analysis on how effective the argument of the author is in creating this particular book. In the review the author’s claims will be put in to the real situation perspective where the truth behind Continue reading...

What Would Be The Consequences On The Italian Economy If They Were To Abandon The Euro Currency And Re-Establish The Lira?
There has been a believable rumour that Italy is at the verge abandoning the Euro for its local currency, the Lira. There arise many questions as to why such a developed country with a high GDP per capita would embrace such an idea and the implication of the same to the Economy.
This informing paper clearly sets out all the possibilities that are likely to occur based on previous example of abandoning a currency as well currency areas.
Continue reading...

Introduction

Austerity is an economic term used to define fiscal policies of reduced spending achieved through cutting of deficits mainly in public service provision and benefits. These policies are in most cases used by governments in an attempt to reduce the amount of money spent on deficits; in several instances, austerity policies are used together with tax increases. This is done to increase long-term financial solvency for investors. As is the case with other economic policies, the implementation of austerity policies has both supporters and critics. Those who support austerity policies argue that by reducing the government’s expenditure, it Continue reading...

In the Economist article "The European Union in Disarray," Claudio Munoz (2011) described the crisis that is occurring within the European Union regarding the euro zone economy. Despite the fact that European leaders (the British government in particular) are claiming that they are handling the situation, but the lack of progress that is being made in summit after summit shows an increasing lack of faith in the power of the euro. The euro itself is in dangers of making entire economies insolvent, and this latest summit is declaring a treaty be created to attempt to save the euro.

A Continue reading...

How can we ensure that the Single European Market benefits all of the European

Union’s citizens?
The creation of the European Union, commonly referred to as the Euro Zone, was an effective tool for enhancing international trade within the region. This is partly because the Euro was initially a strong international currency that would later rival the dollar and other hard currency. The Euro Zone is an open and large trading region that benefited significantly in terms of international trade because of the use of a single currency. The introduction of the Euro provided an incentive to enhance cross-border trade among the member states in the Euro Zone, wherein a single currency Continue reading...

The quarrel about stabilizing the Eurozone: why is Britain opposing Germany and France?

The problem of the Eurozone and the continuous decline of the Euro have maintained its position in the headlines since many Euro countries are now succumbing to debt and high inflation rates. The original members of the European Union have constantly debated solutions, proposals, and projects that they believe would lessen the strain of the Euro to the remaining members of the community. France and Germany have taken the position as the leaders of the Eurozone to prevent possible bailouts from Euro-practicing countries and re-establish Eurozone Continue reading...

Introduction

The European financial crisis has extended beyond borders and is now affecting other countries in various condiments. The world is facing a critical problem brought about by the financial crisis, and financial experts are yet to determine the solution to this problem. The global economic meltdown of 2008 found the European Union struggling with the unshakable financial crisis that has been slowing the growth of European currency, the Euro. As the crisis enters its third year, the European and the whole world is worried whether it would end up affecting the world economy leading to world financial crisis (European Continue reading...

Business

European socio-economic model is an amalgamation of the wide-ranging welfare systems and powerfully politicized and institutionalized forms of the industrial relations (Grahl and Teague). It comprises of the social security, economic life, educational system and the methods for driving the formation of human capital and for creating and diffusing knowledge. There are several advantages as well as disadvantages of the European socio-economic model. Considering the advantages, the European model is not merely a social model; rather it influences employment, production, growth, objectives and goals of economic policy and the competitiveness (Aiginger and Guger). The European socio-economic model is a Continue reading...

Abstract

Since 2007, the European markets continued to experience a decline as several European nations had felt the consequences of applying the unstable Euro into their countries that had influenced the nation’s economic instability as seen in the case of Greece, Ireland, Italy, Spain, and Portugal. In recent news, the European debt crisis continues to prevail as the Eurozone reaches its all-time low for the past5 years as both strong and weak European markets now enter a state of recession that affects the entire world market. With the current European Debt Crisis continuing to influence the European markets, the Continue reading...

DUTIES OF CENTRAL BANK

The main duties of any central bank is to formulate and implement monetary policies on behalf of the government, act as a banker to the government and produce currency notes and coins for the country(Capie and Wood,2003). However duties and goals of central bank of specific country may differ depending on the laws and economic conditions of that country.

DUTIES OF UNITED ARAB EMIRATES CENTRAL BANK

Some of the duties of the central bank of United Arab Emirates are the following:
- Exercise the privilege of issuing currency on behalf of the government

DUTIES OF UK CENTRAL BANK

- Ensures price stability so as to maintain public confidence and Continue reading...

International business is the multi-lateral trade between different countries across the globe. International trade has various positive and negative effects to the participating countries. For example, in the recent past, the world has been rocked by various financial crises originating from different parts of the world. One of the major financial crises that greatly affected the world of commerce is the Greece debt crisis. In addition, there are other two financial crises that have caused negative impacts in both Europe and America. These crises are Spain and Portugal debt crisis (Duthel, 2011). It is evident that management of debt Continue reading...

The European Debt Crisis or the Eurozone Crisis of 2007 up to the present time is considered as one of the major declines of the European market since the inception of the European Union in 1993. What was considered an ideal move to unite the integrating the European countries into one currency, it became a disaster that has made these same integrating countries experience bankruptcy due to the depreciating rate of the Euro. Not only did the crisis escalate into financial debt and economic instability, it had also influenced as to how the European Union competes with the international Continue reading...

Introduction

What is international trade and how is international trade significant to a mature, robust economy such as that of the United Kingdom’s. We know that experts say that international trade is an essential cog that keeps the wheels of the economy turning, and that wheel is an essential contributor to keeping the global economic machine in motion. It is therefore imperative that the concept of International Trade be fully understood and presented with respect to the UK economy and the world.

P10: The Significance of International Trade to UK Business Organisations

International trade is defined as the exchange of goods and services between two or more countries (Investopedia, Continue reading...

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 Continue reading...

Introduction

Euro Disneyland was opened in 1992 at Paris in a 5 billion project with the main intention of merging Disney and Paris (Matlack & Sager, 2003). In USA and Tokyo Disney was a success and it was the intention of the management then to replicate the same success to Paris. However, the first instance the park opened there was a hurdle in the form of farmers who blocked the entrance with tractors as a protest to the American government who pushed for cutting of French Agricultural subsidies (Matlack & Sager). This was a sign of the future being Continue reading...

The European sovereign debt crisis dominated international financial markets during 2010-2012. Economies fell into recession and financial market volatility was high. Critically analyze how the government debt problems initially faced by a few relatively

Introduction

The European financial crisis has extended beyond borders and is now affecting other countries in various condiments. China and United States of America are the most affected nations because they depend a lot on European countries for exports. The world is facing a critical problem brought about by the financial crisis, and financial experts are yet to determine the solution to this problem. The global Continue reading...

I Exercises

1. Determination of the Exchange Rates
On 01.05.2012 Euro per Great Britain Pound was 1.2265, whereas in the beginning of the previous month, on 01.04.2012 this relation was equal to 1.2. By how much has Euro appreciated against the Great Britain Pound? By how much the GBP depreciated against Euro?
New value = 1.2265 1 / 1.2265=0.8153
Old Value= 1.2 1 / 1.2= 0.8333
(0.8153-0.8333)/ 0.8333=-0.2216 GBP depreciated against Euro by 22.16%
(1.2265-1.2)/ 1.2= 0.1887 Euro appreciated against GBP by 18.87%
2. Bid-Ask Spread
On 10.05.2012 EUR/USD pair is quoted at 1.2926-1.2934. This day the Bank Continue reading...

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 Continue reading...

In recent news, the Greek Debt Crisis continues to escalate further given Greece’s continues debt despite the bailout funds provided by the EU, IMF, and the World Bank. Considered as one of the primary reasons for the on-going Eurozone crisis, the Greek Debt Crisis showcases not just the Greek government’s incapacities to improve its economic status but also the impact of an unstable economy to the remaining members of the Eurozone. Prior to the announcement of the Greek debt crisis, experts had already seen Greece’s economic instability that would prove fatal in the long-run and led Continue reading...

The Euro Crisis had a significant impact on the US automotive Industry. This is because this crisis led to a decline in the automotive industry sales, and thus, impacted the overall economy of the country. This study focuses on the effects of the euro crisis on us automotive industry. As a result of the vastness of the automotive industry, this research is narrowed down to the three key automotive industries in US including Ford, Chrysler and General Motors (GM). The research uses a qualitative approach to arrive at its findings on the effects of the Euro crisis on US automotive industry. Continue reading...

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 Continue reading...

The recent global economic crisis exposed most of the world economies to recessionary pressures, stemming from the collapse of the subprime mortgage markets in the US in 2007, which reverberated across the world owing to the international reach and interdependence of financial markets. The UK’s economic suffered the pressures with the near collapse of Northern Rock, coupled with the faltering profitability of some its businesses. The UK grew by 0.5% in 2010 far below the country’s historical average of over 5%. The modest growth is however, a remarkable increase over the performance in 2010, which posted a Continue reading...

Indian/Native American Boarding Schools

Native Americans were marginalized and suppressed by the US government in the 19th century. Given that the Native Americans were the minority in the country and acted as a threat to the state, they were forced into reservations where they could be easily monitored by the US government (Adams 67). Though the Native Americans were oppressed in their livelihood, some chose to continue embracing their culture and not that of the foreigner. In the late 19th century, the Native American youth were forced into boarding schools where they had to adapt to the European way of life (Hirschfelder 28). Continue reading...

Abstract

Germany has been a model economy for the Euro zone with its fiscal frugality which has maintained the country on an impressive growth while the other European countries were struggling with debt crisis. However, despite a favorable GDP growth and low unemployment, the country is facing challenges with high inflation. The current situation is a result of combination of both poor decision making and market sentiments in the region. In addition, the country’s greatest debt is in the hands of the financials and non financial corporations with each having 87% of the debt while government holds 83%. In Continue reading...

Europe fell in a deep recession together with the entire globalized world due to the so called subprime mortgage crisis. However, while the US is managing to recover its economy and it’s now growing at a sustainable rate, Euro Union is somehow struggling in returning at a pre-crisis level and it is actually facing a second recession (so called “double dip”) that is affecting mainly the countries of the South Europe. Since 2010 thus, Greece is having major problem in rolling over its sovereign debt and it had to obtain a bail-out from the other European countries. Similar Continue reading...

As European trade grew, The Coal and Steel Community evolved into a customs union. The spread of democracy in Europe helped further unify the economic institutions. This unity spread and deepened as more nations entered the community. When the dictatorships in Greece, Spain and Portugal fell, those nations entered into the union, followed by Eastern European nations after the fall of Communism. All of this was possible because of the success of the European multinational corporations and the increased government revenues realized from the trade between nations. This process took decades as borders opened and freedom of travel became Continue reading...

Introduction

The great recession is believed to have started toward the end of 2007, and affected most economies. This was dubbed the great recession in the literature since it was mainly deep and prolonged, and therefore was regarded to be the worst recession since the great depression of 1930s. For years, the economists have not agreed on the causes of the great recession nor have they agreed on the correct policy response to the subsequent recession. This made several governments introduce significant stimulus programs in an attempt to reduce the economic impact of the recession. Similarly, the increase in government Continue reading...