The Foreign Exchange Market Essay Example | Topics and Well Written Essays - 2000 words

The Foreign Exchange Market - Essay Example For example, the desire to purchase a foreign automobile or to travel abroad produces demand for a currency in which these goods or services are produced. Second reason maybe to acquire foreign currency is to purchase financial assets in a particular currency. The desire to open a bank account, purchase foreign stocks or bonds or acquire direct ownership of real capital would fall into this category. A third reason that individual's demand foreign exchange is to avoid losses or make profits that could arise through changes in the foreign exchange rate. Individuals acquire that currency today at a low price in hopes of selling it at a profit later at a high price and thus make a profit. Such risk taking is activity is referred to as speculation in a foreign currency. Others who have to pay for an imported item in the possibility that the foreign currency will become more valuable in the future and would associate with the changes in the exchange rate is referred to as hedging. The tot al demand for a foreign currency at any one point in time thus reflects these three underlying demands: the demand for foreign goods and services, the demand for foreign investment and the demand based on risk taking or risk avoiding activity. It should be clear that the demands on the part of a country's citizens correspond to debit items in the balance-of-payments accounting framework. SUPPLY SIDE Participants on the supply side operate for similar reasons (reflecting credit items in the balance-of-payments). Foreign currency supply to the home country results firstly from foreigners purchasing home exports of goods and services or making unilateral transfers or investment income payments to the home country. For example, U.S. exports of wheat and soybeans are a source of supply for foreign exchange. A second source arises from foreign purchases of U.S. stocks and placement of bank deposits. Japanese joint ventures in U.S. automobile or electronic plants are all examples of financial activity that provides a supply of foreign exchange to U.S. Finally, foreign speculation and hedging activities can provide yet a third source of supply. The total supply of foreign exchange in any time period consists of these three sources. The foreign exchange market in the figure below is presented from a U.S. perspective and, like any normal market, contains a downward sloping demand curve and an upward sloping supply curve. The price on the vertical axis is stated in terms of domestic currency price of the foreign currency, for example $/franc and the horizontal axis measures the units of Swiss francs supplied and demanded in at various prices (exchange rates). The intersection of the supply and demand curves determines simultaneously the equilibrium exchange rate and the equilibrium quantity of Swiss francs supplied and demanded during a given period of time. An increase in the demand of Swiss francs on the part of the United States will cause the demand curve to shift out to D' and the exchange rate to increase to e'. Note that the increase in the exchange rate means that it is taking more U.S. currency to buy each

International Portfolio Diversification Essay Example | Topics and Well Written Essays - 1250 words

International Portfolio Diversification - Essay Example They are followed by the investment strategies pursued by three international funds. In this part, the steps that they make to highlight lucrative investment have been mentioned. Improving Returns International stocks have more chances to bring higher returns in comparison with the local stocks. Investors are considerably aware of the fact that international stocks have a wide variety of characteristics. The wide variety of characteristics is capable to increase portfolio performance by diversifying across different international markets or different industries in different countries. In this regard, investing in the foreign or international markets offers difference when compared with the investment made in domestic or national market, and this difference can be comprehended in three ways. First, barriers levied by currency controls, taxation, or investor traditions may further so divide national markets that assets are priced in a national instead of an international landscape. Sec ond, the co-variances among assets within a national market are much bigger than the co-variances among different markets. Third, exchange rates between different currencies depart from each other, exposing currency to international portfolios (Gupta & Donleavy, 2009, p. 163). ... If an investor invests 100 percent of his funds in a firm producing sunscreen lotion, he will be exposed to the risk of weather events; on rainy days there will be no sales of sunscreen lotion, but on sunny days sales will be good. If the same level of investment were divided with half in the sunscreen lotion firm and half in an umbrella manufacturing company, the investment would become immune to negative weather effects and the portfolio would generate interrupted flow of returns regardless of weather patterns. The Optimal International Portfolio Diversification brings variety in investment. The optimal international portfolio combines the same risk-free assets as before (Eiteman et al., 2010, p.438). Eiteman et al. (2010) argue that the benefits of international diversification can be comprehended on the basis of the fact that the optimal international portfolio incorporates both higher expected portfolio return and lower expected portfolio risk when compared with the purely natio nal or domestic optimal portfolio. As a result, the optimal international portfolio has been established as superior and financially lucrative as compared to the optimal domestic portfolio. Global Funds Using International Portfolio Diversification Templeton Global Bond Fund The firm uses both quantitative and qualitative analysis before investing diversified funds globally (Templeton Global Bond Fund, 2012). The firm employs both quantitative and qualitative analysis along with on-the-ground research. In order to minimize the portfolio risk and increase the chances of portfolio returns, the firm utilizes the resources of local analysts across the world to identify and highlight financially

Examine functionalism explanations of socialisation

Examine functionalism explanations of socialisation Examine functionalism explanations of socialisation within the family Functionalists believe in the concept that of consensus and that that the family is at the heart of society, and is the key attribute in keeping society in an orderly and efficient manner. They also believe that hold the view that the nuclear family best suits the for anan advanced industrial society because it is more mobile to move from different areas thsan the traditional extended family because there a ferwer people making it economically viable,(Parsons nuclear isolated family theory.There view of the nuclear family comprises of the economi provider breadwinner husband (instrumental superior) and dependant wife (expressive superior) and children. Sociologists such as Durkheim have developed the functionalistic approach towards the family. Most of the sociloisdts coming from the United States. Functionalism is a theory that explains the role of the family within society- functionalists acknowledge the positive aspects of society and look at society on a macro scale. The family is a unit which workers for the efficiency and stabilisation of society. Functionalism is based on the belief of consensus, for example we are socialised on the norms of society- from what is right and from what is wrong. Early sociologists such as Durkheim (1858-1917) recognized how organic solidarity could be used to explain some social institutions and behaviours Durkheim stated that there were two types of solidarity, (mechanical and organic) mechanical solidarity being characterised by the division of labour yet this was deemed problematic by Durkheim. Organic solidarity on the other hand is when individuals see society as interdependent which according to Durkheim is essential for modern society to avoid anomie. Functionalist therefore are of the belief that every institution contributes to the smooth running of society- in particular the family being the most prominent function that keeps society from anarchy by producing social actors that are socialised stable individuals. The American social scientist Murdock thoroughly analysed two hundred and fifty societies and claimed that some sort of family existed in every form of society and therefore concluded that from his evidence that the family is universal. He refers to the family as a social group characterised by common residence, economic co-operation and reproduction. It includes adults of both sexes, at least two of whom maintain a socially approved relationship, and one or more children, own or adopted, of sexually cohabiting adults. He argues that the sexual and reproductive functions are essential. If reproduction did not take place there would be no members of society; it prevents disruptive effects on social order that would normally result if the sexual urges were allowed free-play. The family provides control and expression. Murdock also states that without the economic function no preparation and provision of food would take place his believes that the economic aspect of the family is enhan ced when the persons live together. Despite Murdocks thorough research of societies and observations of the family, his theory of the universal functions of the family have undergone numerous criticisms; many having the similar tone that there are many different types of families for example single parented families which are just as functional as the ideal nuclear family and in some circumstances have a better relationship with the child as there is more trust and responsibility delegated to the child. One critic stated the contents of values is culturally and historically specific and variable, and is no way universal. However Murdocks era also has to be taken into account when considering his theory, as the nuclear family was deemed the norm and he would have been socialised to be compatible with that concept. Parson is of the belief that the basic function of the family is the primary socialization of children so that they can become civilised members of the society he also believes that the family is essential for the stabilization of adult personalities- as it gives the adult opportunity to express signs of stress for example the family could relieve the adult of a stressful day at work. Parsons view was that these two functions were positively correlated because a child can be socialized into a society only if the society was institutionalized and organized into expected role structures which gives the adult stability. Parson despite criticism, believed that the patriarchal family was a strong and stable and consisted of a hierarchy which consisted of the instrumental superior father (husband), the instrumental inferior son (brother), the expressive superior mother (wife) and the inferior expressive superior daughter (sister).This role structure is the normal nuclear family. Parsons makes some assumptions regarding the family, especially regarding specific genders for example the woman is better fitted for the home and the man for more manual labour. Radical feminists argue that Parsons view of the female role in the family is an inaccurate perspective regarding the lives of females and believe that they are oppressed within the home and have to be the stereotypical emotive nurturer due to such theorists as Parson which make them confined to those roles- without there being an actual choice. Parson views the nuclear family as being best fitted for industrialisation for example jobs of today demand a desire for increased education, which means too many children on the become economic liabilities because the time taken to nurture children and the costs of schooling is very expensive. Too many children would not be economically viable which is why the industrialised family has been reduced. The reduction in size means the nuclear family is more geographically and socially mobile. Extended kinship is not needed resulting that extended kin are visited out of choice and not obligation. However this has been debated, it has been argued that specialised jobs such as politicians have to move relocate on demand, the rest of the population which is the majority, can easily remain situated in the same location for a number of years, and that the extended kin remain a fundamental part of the family as they often are in the third generation and pass down their knowledge and culture which in turn is internalised by the children and adults. Parsons work has been criticised by some theorists such as Robert Merton ( who worked in close proximity with Parsons) he argued that the social sciences were not yet ready for such sweeping theory but still had a tremendous amount of work to do gathering data and summarizing research findings with more modest theory. Interactionist theorists criticized functionalism for failing to conceptualize adequately the nature of actors and the process of interaction. Parsons work has been criticized, but has influenced generations of family scholars. Due to Durkheim, the grounds of functionalism were founded, and such social scientists as Murdock and Parsons expanded further of his ideas of the family- that the family socialises an individual through both primary and secondary socialisation, aiding the development of a stable adult character- however the individual is never fully socialised as society is continually evolving society.

Intergumentary System Essay example -- Biology, Organisms, Atoms

Organisms are composed of atoms that form molecules which form macromolecules (Shier, Butler, & Lewis, 2009). These molecules join and form organelles which structure cell that for tissues (p.3). Tissues form organs and the organs working together form organ system (p3). These organ systems make up the organism (p3). Each organ system has an important function in the body. These systems all work together in order to keep and support the conditions that the cells, tissues, and organs need to function properly. There is one system that is not as well known as other; it is the intergumentary system. Most people know the organs of the intergumentary system, but they do not know that these organs work together to form this system. The intergumentary system is composed of the skin and the structures related to the skin, which include the hair, the finger nails, the sensory receptors and the glands (Shier, Butler, & Lewis, 2009). This system has an important function since it provides protection to the body, helps to maintain body temperature, and contains sensory receptors (p.117). The skin which is the largest organ in the body and an organ of the intergumentary system has essential function such as regulating homeostasis and body temperature, also delaying the loss of water from deeper tissues, storing sensory receptor, synthesizing biomechanical, and discharging waste from the body (p.117). The skin has two layers: the epidermis (outer layer) and the dermis (inner layer) (p.117). There is also a subcutaneous layer or hypodermis (Shier, Butler, & Lewis, 2009). According to Shier, Butler, and Lewis 2009 â€Å"as its name indicates, this layer is beneath the skin and not a true layer of the skin.† This layer has the blood vessels that su... ...se glands help to balance the body temperature (p.124). The fluid that this eccrine glands secret is transported outside of the body by a tube that has an opening to the exterior as a pore (p.124). Another sweat gland is the apocrine gland which is activated at puberty. According to Shier, Butler, and Lewis 2009 â€Å"these glands secrete by the same mechanism as eccrine glands, usually when a person is emotionally upset, frightened, in pain, or during sexual arousal.† Other sweat glands are seruminous glands which secret, and the female mammary glands which secrete milk (p.124). The nails which are another accessory of the skin cover and give protection to the end of fingers and toes (Shier, Butler, & Lewis, 2009). The nails have a lunula which is the area of growth in the nail (p.122). This means that if the lunula is damaged the nail probably will not growth again.

Stanford Prison Experiment and Hard-hitting Local Editorials

For hundreds of thousands of years, human civilizations tended to barter for goods, trading shells and precious stones for food and other important commodities. For the first evidence of money as currency, we need to go back 5,000 years to where modern-day Iraq now sits, to find ‘the shekel’. Though this was the first form of currency, it was not money as we know and understand it today. It actually represented a certain weight of barley, a kind of plant, equivalent to gold or silver. Eventually, the shekel became a coin currency in its own right. In much the same way, Britain’s currency is alled ‘the pound’, because it was originally equivalent to a pound of silver. The ancient Greeks and Romans used gold and silver coins as currency, with the Latin ‘denarius’ ultimately giving birth to ‘dinar’ in various countries including Jordan and Algeria, and providing the ‘d’ that served as an abbreviation for the British penny before decimalization in 1971. It also gives us the word for money in Spanish and Portuguese – ‘dinero’ and ‘dinhero’. The first ever banknotes were issued in 7th-century China, though it took another 1,000 years before the idea of paper money was adopted in Europe, y Sweden’s Stockholms Banco in 1661. British scientists have begun studying a rare meteorite to reveal more about the history of Mars. The rock, named ‘Tissint’ after the Moroccan area where it crashed in July 2011, was recovered from the ground just five months later – not enough time to be too contaminated. â€Å"The Tissint sample is probably the most important meteorite to have landed on the Earth in the last 100 years,† says Dr. Caroline Smith, curator of meteorites at the Natural History Museum in London. An analysis of the rock revealed its Martian origin. It would have been removed from Mars when an asteroid struck he planet, staying in spa ce as debris before being attracted by the Earth’s gravity. Of the 41,000 officially recognized meteorites, 61 come from Mars and the Tissint rock is only the fifth that was witnessed falling. Dr. Tony Irving of Washington University, who performed some initial analysis on the sample, does not think there is much chance of finding fossilized life within it. But the British team could reveal whether minerals have been affected by water or contain elements such as carbon. Smith says â€Å"We’re not looking for microbes, but we’re looking for the chemical and environmental signatures to indicate whether Mars, at ome point in its past, may have provided a suitable environment for life to exist. † While playing computer games is sometimes seen as a solitary pursuit, a study at Brigham Young University shows that it actually enhances social connections. Studying the effect of multiplayer online games on marriages, researchers found that in the 76% of the cases where the couple played together, games actually aided the relationship. In other words, couples that gamed together stayed together. Games may have other effects on us too. The famous psychologist, Philip Zimbardo, recently spoke out on the subject. In his 1971Stanford Prison Experiment, in which volunteers were randomly assigned the roles of prisoner or guard, he showed that human behaviour is heavily influenced by environmental and social pressures. More recently, Zimbardo even suggested that exposing children to morally ambiguous situations in games could be useful in helping them develop their own moral compass. One possibility is to explore virtual worlds through computer games that could enable people to experience and understand concepts that they would otherwise find difficult to imagine. Games about society, populated by real people and open to all, could help test how different ultural backgrounds could be brought together in peace. The Although many community newspapers are justifiably proud of their hard-hitting local editorials, perhaps half of all community papers carry no editorials at all. Publishers who refuse to editorialize often claim that editorial harassing is resented in small communities. Others are fearful of alienating readers and advertisers. Still others say they do not have enough time to develop polished, well-researched editorials on a regular basis. Many publishers are leaders in the commercial and political lives of their towns, and are so much a part of he local power structure that their editorials would not be persuasive anyway. Those who editorialize assert that editorials and opinion columns give identity to their newspapers and leadership to their communities. Indeed, some of the most inspired writing the US has produced – the ‘Crisis’ essays of Tom Paine, the Federalist Papers explaining and defending the Constitution, the stirring commentary of William Allen White of Kansas – first saw the li ght of day as editorial or column material in a community newspaper. Courageous hometown editors regularly win Pulitzer Prizes and other professional honours for crusading ditorials on local issues. It Innovation is not a synonym for invention – an invention has to be taken to the market to be regarded as innovation. Innovation must change the way people do something. In an essay on creativity, Teresa Amabile and others describe innovation as ‘the successful implementation of creative ideas within an organization’. Creativity, which includes invention, is only the starting point for innovation, which is a necessary but not sufficient condition for it. As Amabile implies, the business of innovation needs to be managed all the way from the creative inspiration through to a launchable product or service.Innovation is not restricted to products and services. It might be internal to the business, in the form of new and more effective organizational structures or proce sses. It could be a new way of marketing or distribution, like online grocery deliveries. By today’s thinking, innovation can also be in the form of a significant improvement to an existing commodity. When you build a better product, not necessarily a revolutionary one, the whole world will want to buy it. A lot of small types of innovation like this are more akin to continuous improvement, which makes up 85-90% of the average corporate development portfolio. It

Capitalism and Religion in the Works and Lives of Franklin and Equiano Essay

Capitalism and religion are two subjects which appear frequently in both â€Å"The Autobiography of Benjamin Franklin† and â€Å"The Interesting Narrative of the Life of Olaudah Equiano,† because these were important parts of the lives of these two men. Both men were able to be players in the capitalist market while still following a spiritual doctrine because each man chose which was more important to him-capitalist goals or Christian morals. For each man, the one which was less important submitted to the one which was more valuable to him. Both men take part in capitalism and religion, but Franklin places capitalism first and Equiano places religion first. Each man made life choices according to this hierarchy of importance, sacrificing parts of the less important in order to pursue and excel in the one they held dearer. Franklin, a hard-working and frugal businessman who many have said embodies the capitalist spirit, made his religious choices around his identity as a capitalist, while the extent of Equiano’s participation and success in the capitalist market was determined by his faith. Both spiritual, both capitalist businessmen, Franklin and Equiano brought together these two seemingly opposed components of their lives by blending the two and taking aspects from each to use in their participation in the other, but always letting the one they considered more important to trump the other in situations where a choice between capitalism and religion had to be made. As Benjamin Franklin explained in his autobiography, he â€Å"never doubted†¦the existence of the Deity† (62), and he described several occasions when he asked God for assistance in times of need, so it is clear he was spiritual. Franklin wished to be morally upright, but he disliked organized religion and found that in each religious sect, the religious beliefs he held were â€Å"mix’d with other articles, which, without any tendency to inspire, promote, or conform morality, serv’d principally to divide us† (62). For this reason, Franklin did not attend church regularly or abide by any one religion, although he agreed with bits and pieces of many different faiths. But he considered himself a moral man, and wished to achieve the same thing encouraged in Christian teachings: â€Å"moral perfection† (63). For this reason, Franklin decided to create his own list of virtues to abide by. Rather than abandoning faith altogether because he could not find a church which was in line with his way of thinking, Franklin created his own personal religion-â€Å"The Art of Virtue.† Present in Franklin’s list of 13 virtues are several which are in accordance with Christianity-temperance, sincerity, justice, chastity, humility-but some key elements of the Christian religion have been removed from the doctrine by which he lives his life. Unlike Christianity, Franklin’s commandments make no mention of monetary accumulation. In many religions, it is stipulated that one who is wealthy cannot reach heaven. In the Bible, Jesus tells his disciples that â€Å"it is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God† (Matthew 10:24). Because this does not serve Franklin’s interest in capitalist success, Franklin omitted from his virtues any mention of greed or accruement of wealth, instead including virtues which he thought were more important, and which served his capitalist aspirations more suitably. Several of his virtues are also non-Christian but clearly in the spirit of capitalism-resolution, frugality, and industry are not tenets of the Christian religion, but were essential in Franklin’s mind for success in the free market and therefore essential in the dogma he followed. By creating and following his own list of virtues, Franklin was able to pick and choose the best from both Christianity and capitalism. However, Franklin’s religious inclinations were formed by, and altered to fit, his capitalist aspirations, and his virtues were created in order to best serve his goals in the capitalist market. Franklin reconciled capitalism and religion by extracting from Christianity the beliefs which were most conducive towards capitalism, then adding morals of his own which were driven directly towards capitalist success. Therefore, he was able to participate in both, following a self-made religion that served the goals of capitalism. Olaudah Equiano, on the other hand, considered himself a Christian above all other labels. To him, religion was the most important aspect of his life, and he was willing to sacrifice everything else before he would compromise his religious beliefs. Equiano’s first introduction to the capitalist system came when he arrived at the port in Bridge Town, Barbados, and was placed in a yard with other slaves to be sold as a commodity. But Equiano did not participate actively in the capitalist system as a person (rather than an article of trade) until much later, when he bought and sold tumblers and other small objects during his trips at sea to earn enough money to purchase his freedom from his master. If it had not been necessary for Equiano to acquire his freedom, it is possible Equiano would never have entered the business arena. Equiano was not interested in having more money than what was required to survive because being greedy was contrary to his religious beliefs, and from the moment of his conversion to Christianity, Equiano’s faith guided his every decision. Unlike Franklin, Equiano did not cherish the spirit of capitalism. To him, money meant freedom, and later, the choice to go where he wanted and not be tethered to one ship or master, but Equiano did not equate money with happiness and instead looked to religion for solace in an unfamiliar world. Capitalism and Christianity were not at odds for Equiano because he never did anything non-Christian in order to achieve success in the capitalist world. When people owed Equiano money for goods delivered but not paid for, Equiano did not act out in revenge towards his debtors. He did what he could within the bounds of the law, and when that did not amount to anything, Equiano forgave the debts and simply continued on, because of his moral outlook on life. Equiano recounted countless times the cruelties black men, both slaves and free men, endured at the hands of white men, such as â€Å"giving [Equiano] however but very indifferent payment† (95) after taking goods from him. He can do nothing about these injustices, and instead trusts that God will give them their punishment in the afterlife. Too often also, to my knowledge, our clerks, and many others, at the same time have committed acts of violence on the poor, wretched, and helpless females†¦ Is not this one common and crying sin enough to bring down God’s judgment on the islands? He tells us the oppressor and the oppressed are both in his hands; and if these are not the poor, the broken-hearted, the blind, the captive, the bruised, which our Saviour speaks of, who are they? (80) Equiano relies on faith to dole out appropriate rewards and consequences after death and so is able to endure and observe many injustices without acting in anger or violence towards his oppressors. Rather than being a cutthroat businessman, Equiano worked honestly, earning money to live but never valuing material possessions over his religious morality. Equiano was a Christian who happened to be living within a capitalist world, but the most important part of his life, his faith, was never on the line because of capitalism-Christianity always came first. There are only two examples in Equiano’s autobiography of him doing something that goes against his religious beliefs. The first comes in Chapter 5, when Equiano swore that he would spend a day in London â€Å"in rambling and sport† (70). Shortly afterwards, Equiano felt terrible about saying something rashly and without thinking, and he asked God for forgiveness: he â€Å"acknowledged [his] transgression to God, and poured out [his] soul before Him with unfeigned repentance, and with earnest supplications [Equiano] besaught him not to abandon [him] in [his] distress† (70). Equiano immediately attempted to apologize to God for his wrong actions, and felt extremely guilty for having committed what appeared to be a small sin. The second occasion, in chapter 8, is very similar. Equiano cursed, â€Å"Damn the vessel’s bottom out,† (112) but immediately afterwards his conscience â€Å"smote† him for swearing, and he experienced guilt for his seemingly petty misdeed. These two examples show how strictly Equiano followed his religious teachings-he considered the act of swearing to be a large affront to God, and feared for his salvation because of his small sins. To him, straying from Christian morals at any time in any part of his life was unacceptable, and this governed his actions as a player in the capitalist market as well as in every other arena of his life. Equiano’s success as a businessman was not as great as it could have been if Equiano had been a more competitive salesperson and truly valued success in the capitalist market, but he chose to sacrifice this monetary success in order to follow his religious morals more strictly. His priorities determined his actions-as a capitalist Christian, rather than a Christian capitalist, Equiano made choices that put his faith first, and instead of striving for wealth and success, endeavored towards the redemption of his soul and eternal happiness. The actions Equiano took during his life were trivial to him as a devout Christian, because he believed that he would spend the rest of eternity in Heaven as reward for his morality while on earth. For Equiano, capitalism was just a system in the world of man, and money was not worth risking his eternal well-being over. Both Benjamin Franklin and Olaudah Equiano were successful businessmen who lived their lives according to religious principles-Franklin by his made-to-fit capitalist-influenced list of virtues, and Equiano by the teachings of Christianity and the Bible. But Franklin was a bigger financial and public success, because his achievement as a capitalist was most important to him. Franklin laid out a list of virtues for himself in order to pave the way for the most possible financial success and public acclaim-his â€Å"religion† served the spirit of capitalism. Equiano was only a mediocre financial success because he was not oriented towards the accumulation of wealth. Instead, he chose to achieve on the religious front. Equiano’s actions within the capitalist framework were mere details in the larger picture of his life as a good Christian. Both men were passionate-Franklin about capitalism and Equiano about his Christian faith-and both sacrificed other parts of their lives in order to keep intact their number one priority. Franklin was religious in the way that most promoted capitalist success, and Equiano was a capitalist businessperson only in the ways that were aligned with his religious beliefs. They reconciled capitalism and religion by choosing one over the other and allowing the lesser to function on a smaller scale and only within the framework of the more important.