...Macroeconomics, 10thed. Cases: From HBS online: http://cb.hbsp.harvard.edu/cb/access/16750635 Or available at the bookstore Course Description: Building off the principles of macroeconomics course, this course is concerned with the behavior of key economic aggregates including the unemployment rate, inflation rate, productivity growth, interest rates, government budget imbalances, foreign trade imbalances, et. al. We want to learn how these macroeconomic variables are determined, the causes and consequences of their variations, how they interact with each other, and how they respond to government interventions. As a member of the business community, a journalist, educator, government official, or a stay-at-home mom, you will make decisions that should be influenced by our economy. This course endeavors to give you tools to fully interpret what is happening in the economy based on available information and an understanding of how the economic indicators influence the future. The course tries to do all of this while looking at the evolution of modern economic thought to understand how we have arrived at the conclusions and models we currently employ. This course is for economics majors…those of you who understand why economics is the key to making good decisions. We will focus on the ability to interpret, explain, and communicate. Approach: The main approach is analytical, but we will incorporate a variety of learning activities to demonstrate the analysis. We will...
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...INSTITUTIONS AND DEVELOPMENT By Mary M. Shirley 1 1. THE CHALLENGE OF DEVELOPMENT Developed countries are the exception, not the rule. Billions of dollars of aid and countless hours of advice notwithstanding, most countries have not been able to foster sustained growth and social progress. Increasingly research has shown that weak, Cross-country missing or perverse institutions are the roots of underdevelopment. regressions persistently demonstrate large and statistically significant correlations between institutional variables and growth, and in horse races between variables, an index of institutional quality “trumps” geography or trade as an explanation for growth (Rodrik, et al. 2002). To meet the challenge of development countries need two distinct and not necessarily complementary sets of institutions: (i) those that foster exchange by lowering transaction costs and encouraging trust, and (ii) those that influence the state to protect private property rather than expropriate it. 1 The first set of institutions includes contracts and contract enforcement mechanisms, commercial norms and rules, and habits and beliefs favoring shared values and the accumulation of human capital. Among the second set of institutions are constitutions, electoral rules, laws governing speech and education, and legal and civic norms. Today’s underdeveloped countries must acquire these institutions under particularly difficult conditions -- in a global market competing with already...
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...in Russia in an attempt to catch up with the more advanced west. As Stalin said 'We are fifty or a hundred years behind the advanced countries. We must make good this distance in ten years.' The focus of the first five year plan on heavy industry made huge strides in modernising industry and increasing output, in that 'Coal, iron, and the generation of electrical power all increased in huge proportion’s and Russia felt it could compete again on a scale with its western rivals. However, despite overarching economic development, many of the targets set by central panning didn't consider the quality of products or waste of materials and on reflection, highlight a number of fundamental flaws in the measurement of success of the first five year plan. Stalin's idea of collectivisation forced the peasants to move to a commune, share the livestock and equipment whilst having to give the government their share of the revenue. 'The government figured that new technology and new farming machines, would allow mass production of food without the large amount of workers that was needed before'. Collectivisation was therefore introduced to increase efficiency and introduce mechanization. This added urgency to increase output meant that high targets were set which were met by use of the carrot and the whip, incentives but also punishments, pushing the economy towards its maximum potential making the essential contribution to the transformation of the Russian economy....
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...reign will build itself and keep itself going without government or state control. The best way to do this is to promote entrepreneurship to make state owned industries private own, and redo the labor markets by making states at will or Right to Work by reducing the union power. The free-market approach, where markets alone are assumed sufficient to generate maximum welfare. The public-choice approach, which is an extreme New-classical model which emphasizes that all government is ‘bad’ and leads to corruption and the gradual confiscation of private property. The market-friendly approach, which suggests that, while markets work, they sometimes fail to emerge, and a government has an important role in compensating for three main market failures: missing markets, imperfect knowledge and externalizes. (Econ online) CLASSIC TRUMPS KEYNESIAN In the 1970 Classical, school started popping up everywhere because of the failure of Keynesianism to explain Stagflation. This is where unemployment and inflation are both high at the same time. (New Classical) The wage rate is what...
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...Market failure is a concept within economic theory describing when the allocation of goods and services by a free market is not efficient. That is, there exists another conceivable outcome where a market participant may be made better-off without making someone else worse-off. (The outcome is not Pareto optimal.) Market failures can be viewed as scenarios where individuals' pursuit of pure self-interest leads to results that are not efficient – that can be improved upon from the societal point-of-view.[1][2] The first known use of the term by economists was in 1958,[3] but the concept has been traced back to the Victorian philosopher Henry Sidgwick.[4] Market failures are often associated with information asymmetries,[5] non-competitive markets, principal–agent problems, externalities,[6] or public goods.[7] The existence of a market failure is often used as a justification for government intervention in a particular market.[8][9] Economists, especially microeconomists, are often concerned with the causes of market failure and possible means of correction.[10] Such analysis plays an important role in many types of public policy decisions and studies. However, some types of government policy interventions, such as taxes, subsidies, bailouts, wage and price controls, and regulations, including attempts to correct market failure, may also lead to an inefficient allocation of resources, sometimes called government failure.[11] Thus, there is sometimes a choice between imperfect outcomes...
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...Foreign-Market Entry Strategies in the European Union Kyle Stiegert, Archie Amir Ardalan, and Thomas Marsh This study utilized intra-firm, socio-cultural, geographical-proximity, and political-stability variables to explain bimodal foreign direct investment (FDI) patterns by agri-food and beverage multinational companies into and within the European Union. A logit framework incorporated a unique-count database of firm-level investment patterns from 1987–1998. The results showed the 1992 structural changes under the Maastricht Treaty increased the probability of wholly owned FDI modes such as greenfields and buyouts. The model also found that past modal strategies of firms, language barriers, and exchange-rate volatility all correctly explained modal investment patterns. The results provide important contributions toward understanding modal investment strategies including the role of macroeconomic changes within a custom union. A popular way for a firm to secure a business presence in a foreign nation is through foreign direct investment (FDI) in production, marketing, and/or distribution facilities. Formally defined, FDI is an investment in which a multinational enterprise (MNE) acquires a substantial controlling interest in a foreign firm or in some other manner establishes fixed assets on foreign soil. Prior to 1970, multinational operations were often characterized as an exclusively American institution (Erdilek 1985). However, during the 1970s the U.S. shifted from being the...
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...STRUKTUR MODAL PENDAHULUAN Modal (pembelanjaan dari luar perusahaan) dikelompokkan dalam dua jenis, yakni: hutang dan ekuitas (= modal sendiri). Hutang mempunyai keunggulan berupa (Brigham and Gapenski, 1997: 767-768): 1) bunga mengurangi pajak sehingga biaya hutang rendah, 2) kreditur memperoleh return terbatas sehingga pemegang saham tidak perlu berbagi keuntungan ketika kondisi bisnis sedang maju, 3) kreditur tidak memiliki hak suara sehingga pemegang saham dapat mengendalikan perusahaan dengan penyertaan dana yang kecil. Meskipun demikian, hutang juga mempunyai kelemahan, yaitu: 1) hutang biasanya berjangka waktu tertentu untuk dilunasi tepat waktu, 2) rasio hutang yang tinggi akan meningkatkan risiko yang selanjutnya akan meningkatkan biaya modal, 3) bila perusahaan dalam kondisi sulit dan labanya tidak dapat memenuhi beban bunga maka tidak tertutup kemungkinan dilakukan tindakan likuidasi. Bauran hutang dan ekuitas untuk pendanaan perusahaan merupakan bahasan utama dari keputusan struktur modal (= capital structure decision). Bauran modal yang efisien dapat menekan biaya modal (= cost of capital), yang dapat meningkatkan kembalian ekonomi neto dan meningkatkan nilai perusahaan. Perusahaan yang hanya menggunakan ekuitas disebut “unlevered firm”, sedangkan yang menggunakan bauran ekuitas dan berbagai macam hutang disebut “levered firm”. Neraca Unlevered Firm Neraca Levered Firm Hutang 40 Aktiva 100 Ekuitas 100 Aktiva 100 Ekuitas 60 Gambar 1: CONTOH NERACA UNLEVERED...
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...PERAN PASAR MODAL SYARIAH DALAM TRANSMISI KEBIJAKAN MONETER INDONESIA (Studi Kasus Jakarta Islamic Index) Sebuah Refleksi Penerapan Ekonomi Islam di Sektor Pasar Modal AHMAD NASHRUDDIN NIM. S.0812.049 SEKOLAH TINGGI EKONOMI ISLAM (STEI) TAZKIA BOGOR 2012 BAB I PENDAHULUAN 1.1. Latar Belakang Pemberitaan mengenai kebijakan moneter bank sentral pada umumnya selalu menarik perhatian masyarakat. Rapat Dewan Gubernur (RDG) Bank Indonesia pada 4 Februari 2011 memutuskan untuk menaikkan BI Rate sebesar 25 basis poin (bps) atau 0,25% menjadi 6,75%, keputusan tersebut diambil sebagai langkah antisipatif untuk mengendalikan ekspektasi inflasi ke depan yang mulai meningkat.1 Kebijakan tersebut berdampak pada kenaikan Indeks Harga Saham Gabungan (IHSG) sebesar 15,34 poin atau 0,44 persen menjadi 3.496,17 basis poin. Sedangkan indeks LQ45 naik 3,636 poin atau 0,59 persen ke posisi 616,200 basis poin pada penutupan hari itu.2 Gambaran di atas menunjukkan besarnya pengaruh kebijakan moneter terhadap berbagai aktivitas ekonomi dan keuangan. Hal demikian tidak mengherankan karena kebijakan moneter memang ditempuh bank sentral untuk mempengaruhi dan mengarahkan berbagai aktivitas ekonomi dan keuangan tersebut kepada tujuan yang ingin dicapai, yang pada umumnya kestabilan harga, dengan mempertimbangkan pertumbuhan ekonomi.3 Pertanyaannya adalah bagaimana proses pengaruh kebijakan moneter ini terjadi. Seperti halnya kebijakan moneter berpengaruh ekspektasi para pelaku ekonomi di pasar...
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...During 2006, Containerisation had celebrated its 50th anniversary on the invention which had a major impact on global production and distribution departments. If globalisation is an economic phenomenon that thrives in all capital and trade while maintaining a global relationship with cultures and the people circulated within this climate, then containerisation is one of the core rationales behind the robust interaction between different nations and thus facilitated globalisation (Levinson, 2006). The aim of this discussion is to present the nature of containerisation and how the innovative use of containers transformed overtime. This case study will draw up real world examples on logistics on a global scale. The latter half of this discussion will explore the advantages of using containers to transport goods via sea, road and rail. Containerisation Containerisation is an inter-modal system which has been used over half a century to transport the universal cargo and non-bulk products in containers which are reinforced steel boxes (ECMT, 2005). The ease of using containers allows the flexibility to use a multi-modal system to transport the containers through road, rail, sea and air (Lowe, 2005). These containers are regulated by the International Organization for Standardisation (ISO) body which sets the foundation to ensure the containers are eligible to be loaded and conserved unharmed onto container ships, railroad cars, planes and trucks. Containerisation has revolutionised...
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...Asset and Liability Management Pada Bank Komersil Hinsa Siahaan [1] Abstraksi Risiko tingkat bunga adalah salah satu masalah tradisionil yang sangat penting diperhatikan dalam ALM (Assets and Liability Management). Meskipun risiko tingkat bunga merupakan masalah klasik tetapi masih tetap sangat krusial dalam manajemen aktiva dan kewajiban bank. Mengapa ? Oleh karena risiko tingkat bunga adalah sangat memengaruhi kinerja sebuah bank. Sebagaimana kita ketahui sasaran akhir atau The Ultimate Goal of the ALM adalah “memaksimumkan tingkat pengembalian bank setelah disesuaikan dengan risiko yang diterima oleh pemegang saham dalam jangka panjang (atau the maximization of the risk-adjusted returns to shareholders over the long run).[2] Tujuan tulisan ini adalah membahas adanya saling hubungan pencapaian tujuan bank dengan manajemen risiko tingkat bunga, apakah ada suatu posisi tingkat bunga sensitif sehingga membuat pencapaian tujuan bank menjadi optimal ? Apabila memang ada bagaimanakah cara melihatnya ? Tulisan ini juga membahas masalah identifikasi goal, definisi parameter tujuan sebuah bank, dan alternatif strategi pembiayaan yang mungkin dipilih guna mengoptimalkan pencapaian tujuan bank. Setelah selesai membaca tulisan ini, para pembaca diharapkan mampu; • menjelaskan adanya tiga perkiraan bank dengan multi dimensi yang tidak dapat dimaksimalkan secara simultan melainkan harus dioptimalkan, karena tujuan peningkatan ketiga perkiraan bertentangan satu sama...
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...A COMPREHENSIVE PROJECT REPORT On Effectiveness of Marine Logistics Submitted to S.R. LUTHRA INSTITUTE OF MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In Gujarat Technological University UNDER THE GUIDANCE OF Faculty Guide: Company Guide: Ms. Parinaz Todiwala Mr.Pravin Dixit Assistant Professor MD (Kshitij Marine Services Pvt. Ltd.) Submitted by Ms. Harshita Kakar [Batch No. 2011-13, Enrollment No. 118050592001] Ms. Nupur Mishra[Batch No. 2011-13, Enrollment No. 118050592005 ] MBA SEMESTER III S.R. LUTHRA INSTITUTE OF MANAGEMENT - 805 MBA PROGRAMME Affiliated to Gujarat Technological University Ahmedabad December, 2012 Company Certificate (For Sem. 3) (On Company Letterhead) This is certified that Ms. Harshita Kakar and Ms. Nupur Mishra from S.R. LUTHRA INSTITUTE OF MANAGEMENT, are carrying out the research on the subject titled “ ” at this company / organisation under the supervision of Mr. Pravin Dixit, from Sep, 2012 to Dec, 2012. I also certify that, the above mentioned students have carried the research work satisfactorily. Place: - Surat Date: - _________ ( to be announced later on) ________________ (Name & Designation) Students’ Declaration We, Ms. Harshita Kakar &...
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...China’s transportation system is rapidly expanding to support economic growth, meet projected global intermodal freight demands, and promote expansion into underdeveloped regions of the country. Given the current understanding of intermodal freight movement that was not available when the United States developed its port capacity, the purpose of this scan was to identify how China provides intermodal access to its new, greenfield maritime ports and the possible application of those methods in the United States. The scan also looked at the investment strategies adopted by Chinese officials to foster freight mobility and intermodal connectivity in support of their global competitiveness. The scan team represented a diverse set of interests and concerns for national and State decisionmaking. In addition to Federal Highway Administration (FHWA) officials at the national and division levels, the team included representatives from the departments of transportation for California, Maine, and Pennsylvania; a representative of the I-95 Corridor Coalition; a representative of the American Association of State Highway and Transportation Officials (AASHTO); a representative of the American Trucking Associations; and a university professor who also acted as the report writer. These scan members reflected different modal interests and expertise in intermodal freight transportation, trucking, transportation policy and planning, and transportation system operations. The scan team met with government...
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...A COMPREHENSIVE PROJECT REPORT On Effectiveness of Marine Logistics Submitted to S.R. LUTHRA INSTITUTE OF MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In Gujarat Technological University UNDER THE GUIDANCE OF Faculty Guide: Company Guide: Ms. Parinaz Todiwala Mr.Pravin Dixit Assistant Professor MD (Kshitij Marine Services Pvt. Ltd.) Submitted by Ms. Harshita Kakar [Batch No. 2011-13, Enrollment No. 118050592001] Ms. Nupur Mishra[Batch No. 2011-13, Enrollment No. 118050592005 ] MBA SEMESTER III S.R. LUTHRA INSTITUTE OF MANAGEMENT - 805 MBA PROGRAMME Affiliated to Gujarat Technological University Ahmedabad December, 2012 Company Certificate (For Sem. 3) (On Company Letterhead) This is certified that Ms. Harshita Kakar and Ms. Nupur Mishra from S.R. LUTHRA INSTITUTE OF MANAGEMENT, are carrying out the research on the subject titled “ ” at this company / organisation under the supervision of Mr. Pravin Dixit, from Sep, 2012 to Dec, 2012. I also certify that, the above mentioned students have carried the research work satisfactorily. Place: - Surat Date: - _________ ( to be announced later on) ________________ (Name & Designation) Students’ Declaration We, Ms. Harshita Kakar &...
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...Assignment Of Project Management On An improved proposal of reducing and solving Traffic problem from Dhaka city Prepared For Mohamed Emran Hossain Course teacher Department of business administration Faculty of Business and Economics Daffodil International University Prepared By Name | ID | Yeasser Ahammed | 091-11-856 | Saqib Ahmed Arif | 091-11-804 | Shaila Afrin | 091-11-823 | Md. Sumon Ali | 091-11-761 | Md. Sohel Rana | 091-11-812 | Section: A Batch: 22nd Date of submission: 22nd July 2012 LETTER OF TRANSMITTAL July 22nd, 2012 Mohamed Emran Hossain Course teacher Department of business and administration Faculty of Finance and Economics Daffodil International University Dear Sir, As per our course requirement, we have prepared our report “An improved proposal of reducing and solving Traffic problem from Dhaka city”. We are grateful to you for selecting this topic. This topic has given us the wonderful opportunity to work with real project. Beyond any doubt it has enriched our knowledge and increased our experience. This report enabled us to get acquainted with the real life project problem in Bangladesh. We hope you will appreciate our sincere effort. We have tried our level best to gather and show all necessary information relevant to the topic. Our report may suffer from some unintentional mistakes due to inexperience. I hope you will consider my inexperience and this report will meet the standard of your judgment. Sincerely yours Yeasser Ahammed On...
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...1.0 Pengenalan Sistem kewangan merupakan satu sistem yang mengandungi institusi perbankan, pasaran kewangan, pengantara kewangan lain seperti dana persaraan dan syarikat insurans. Sebuah badan kawal besar, iaitu bank pusat yang menyelia dan mengawasi operasi pengantara kewangan ini. Ia merupakan satu sektor dalam ekonomi yang menggunakan sumber-sumber produktif untuk memudahkan pembentukan modal melalui peruntukan daripada pelbagai alat-alat kewangan, iaitu memenuhi pelbagai keperluan antara pemberi pinjaman dan peminjam. Maka, sistem kewangan memainkan peranan yang penting dalam mengerahkan(mobilizing), pengantara untuk simpanan(intermediating saving), dan memastikan sumber-sumber ini adalah diperuntukkan dengan cekap kepada sektor-sektor yang produktif. Selain itu, Wang yang dominan dalam sesebuah ekonomi sekarang ialah wang kredit, wang yang tercipta ekoran aktiviti sektor perbankan mengambil deposit dan mengeluarkan pinjaman. Perkembangan ini serta peningkatan pesat inovasi kewangan dalam ekonomi berasaskan kredit boleh mempengaruhi pertumbuhan ekonomi di sesebuah negara. Ini yang menjadikan peranan sektor kewangan terhadap pertumbuhan ekonomi sering menimbulkan perdebatan di kalangan ahli-ahli ekonomi. Misalnya Miller (1998) yang menyatakan bahawa sektor kewangan telah dilebih-nyatakan(over-stressed) terhadap pertumbuhan ekonomi. Manakala, ahli ekonomi lain seperti Schumpeter (1911) dan Mikinnon (1973) yang menggunakan pelbagai kaedah ekonometrik telah memberikan kesimpulan...
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