...Foreign Exchange Reserves • ‘Only' the foreign currency deposits and bonds held by central banks and monetary authorities. Literal Definition Generic Definition • Total of a country's gold holdings and convertible foreign currencies held in its banks, plus special drawing rights (SDR) and exchange reserve balances with the International Monetary Fund (IMF). Foreign Exchange Reserves Sovereign Bonds Foreign Currency Deposits Gold Deposits Special Drawing Rights IMF Drawing Rights Foreign Exchange Reserves Foreign Exchange Reserves Outflows Repatriation of investments and profits Payment of Loans Inflows Bilateral Aids Loans Payment of Interest Investments Payment for Imports Payment from Exports Foreign Exchange Reserves- Change in Treatment Formerly consisted of only gold and Silver After Breton Woods Agreement , US dollar also became part of foreign currency 1944-1968 USD was convertible to gold by Federal Reserve System 1968-1973 Only Central Bank could convert reserves to gold Post 1973 Reserve can’t be converted to gold Impact of Foreign Exchange By means of foreign exchange reserve country can control the Exchange rate To make domestic currency more stable • Country can purchase domestic bonds using foreign reserves To reduce the value of domestic currency • Can purchase foreign notes by that foreign reserves FOREIGN EXCHANGE RESERVE MANAGEMENT Foreign Exchange Reserve Management •...
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...In Scene 2, paragraph 57, Scrooge says “I wish to be left alone! Since you ask me what I wish, gentlemen, that is my answer. I help to support the establishments that I have mentioned: they cost enough: and those who are badly off must go there.” He had been visited by two men who had asked him to help fund for those in need, to which he harshly declined. He had even said that “If they would rather die, they had better do it, and decrease the surplus population.” He did not know the people, but just by knowing their situation, he deemed them as useless. Therefore, the portly man becomes surprised when Scrooge speaks to him on Christmas Day. Paragraph 52 of Scene 5 in Act II, he says “Lord bless me! My dear Mr. Scrooge, are you serious!?!” Scrooge’s actions, in the end, differed from the beginning because he had let himself undergo change. It was because he had realized that he should be a better person. And the spirits had helped guide him to...
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...Andrew Carnegie: A Tribute "My heart is in the work." -- Andrew Carnegie Neither a rags-to-riches biographical sketch nor a perfectly scanned-in image of Mr. Carnegie could serve as as great a personal tribute to the great Founder of Libraries, the earnest Champion of Peace and the resolute Captain of Industry as presenting his own words online--available electronically and immediately to the whole world through the World Wide Web. He would be tickled pink. Mr. Carnegie loved to promote his ideas and opinions in print. As one of America's most successful businessmen and, perhaps, the world's richest man, it can be assumed that he felt his opinions and advice were not without proven merit. In fact, his journalistic career had begun early when the young man found himself barred from free membership in Col. James Anderson's "Mechanics' and Apprentices' Library." In 1853 Carnegie took the matter to the pages of the Pittsburgh Dispatch; and, as Joseph Wall notes in his definitive biography of Andrew Carnegie, the victory the young man won through his letters to the editor left a lasting impression: It was also his first literary success, and for Andrew nothing else that he had known in the way of recognition by others had been quite as exhilarating as this experience of seeing his own words in print. It fed his vanity and at the same time increased his appetite for more such food. At that moment a journalistic ambition was born which he would spend the remainder of his life...
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...International Conference on New & Renewable Energy Development The Rector The university of saint Joseph The speakers’ hall 27 october 2011 of need & greed The story of the City of Philadelphia in Pennsylvania is, perhaps, the best example of how to manage existing and dwindling resources at a time of reduced means. On the other hand, the panorama of new and renewable energy today is filled with mostly mega projects, and assumed solutions that are only that, assumed. No matter what happens, the highest values of humanity have to supersede the expediencies of engineering. It is, however, undeniable, that we are compressed by issues that require immediate and all encompassing approaches. We seem to be corralled by the melting of ice caps and the submersion of cities; the rise of temperature and wild climate change, that ranges from desertification in places to shattering floods elsewhere; the scarcity of water and the specter of wars over maddening thirst; the rights to achieved development for some and to develop for others; the cost of economic growth and the supposed unbearable price of eradicating poverty; the blighted ecology of soviet-style systems and the menace to the environment of unbridled capitalism; the urge to increased material comfort and the menace of diminished humanistic cultures. We are, thus, compelled to make sense out of numerous scientific, political, governmental, social, religious, and ideological discourses: many ambiguous, others...
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...Chapter 17 Ten percent plan This plan was an attractive deal for Southern people by Abraham Lincoln. It was said that that a southern state could be readmitted into the Union if 10 percent of its voters made a grave promise of reliability to the Union. RADICAL REPUBLICANS These people were members of Republican Party during the Civil War. They did an overwhelming effort to secure rights for liberated slaves during Reconstruction. The Wade–Davis Bill In 1840, two Radical Republicans, Senator Benjamin from Ohio and Henry Winter Davis of Maryland proposed this bill willing for Reconstruction of the South. It demanded the reliability of 50 percent people of readmitting to the union. Andrew Johnson and his plan for Reconstruction In 1864, Abraham Lincoln nominated Andrew Johnson, who was democratic representative from Tennessee, as his Vice Presidential candidate. He thought that with Johnson he would speak to Southerners who never needed to leave the Union. Black codes After the Civil War, southern states passed these laws. According to these laws, black people were insisted to live slave and do labor work “Waving the bloody shirt” In American history, the expression got acclaim with a developed event in which Benjamin Franklin Butler of Massachusetts, when making a talk on the floor of the U.S. Spot of Representatives, professedly held up a shirt with the blood of a carpetbagger whipped by the Ku Klux Klan. Comparison of US emancipation w/ other American societies ...
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...Assignment Submitted By Elton Gjikdhima To Meet the Needs of the Course Feb, 2015. I interviewed a successful entrepreneur from UAE. She has created numerous wanders in Middle East. She is the holder of V Business Master (VBM) in UAE.. She is essentially into administration division and their administrations incorporate VBM Education, VBM Technology, VBM Medicals, VBM Oil and gas and so on. I for one appreciate him as she has accomplished a ton in her young age. She has the qualities and the capacity of a successful business entrepreneur. I accept that this interview will help us to comprehend the way that the entrepreneur decides to travel. To begin this business the essential issue that she confronted was the investment. Investment was important to circle in for beginning the processing plant. So she accompanied a thought to adjust to partners by offering her thoughts and awing & persuading them to invest in the business. Sadly numerous vacated. At that point she wanted to begin a little subsidiary in UAE i.e. Expert designing administration. This was a huge hit with a decent team, trustworthy & hardworking team. The benefit that delivered specialist administration was utilized to invest in Middle East. There were relatively few real issues. Albeit beginning business in Middle East is easy however to get great trustworthy partners, fitting documentation visa customs, papers to be affirmed by labor were lengthy methodology. Picking of company name is additionally...
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...Neoliberalism and the global financial Crisis Introduction The fusion of neoliberal beliefs and the western society started in the early 1970’s, it has incorporated in the society to such an extent that it can be portrayed as being impending. For more than forty years now neoliberalism has controlled governments, technology, housing and financial sector and has impacted our society in destructive ways. Neoliberalism reached a new height after the 2008 financial crisis leaving recession as an aftermath. Neoliberalism as explained by Harvey (2005) is a model of private enterprise which concentrates on the economy and its deregulation to empower a free market based monetary framework. Hillyard and Tombs (2004) see neoliberalism as a destruction breeding form of capitalism which they think makes a commanding dispute for, the state demanding to be considered in charge of methodically creating destruction. Neoliberalism as indicated by David Harvey is a "hypothesis of political monetary works on recommending that human prosperity can best be progressed by the augmentation of entrepreneurial opportunities inside of an institutional system portrayed by private property rights, individual freedom, unhampered markets, and free trade" (2005:2). The idea of neoliberalism in western social orders is connected with the Thatcher government in the UK and the Reagan government in the US which came to power in the late 1970s – mid 1980s henceforth presenting neoliberalism as a key financial...
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...African Journal of History and Culture Vol. 3(5), pp. 65-72, June 2011 Available online at http://www.academicjournals.org/AJHC ISSN 2141-6672 ©2011 Academic Journals Review A critique of modernization and dependency theories in Africa: Critical assessment J. Matunhu Department of Development Studies, Midlands State University, Zimbabwe. E-mail: matunhuj@msu.ac.zw. Accepted 6 April, 2011 The way states and development specialists rationalize how to commit economic resources to development is influenced, to a greater extent by their level of persuasion towards specific development theories. The discourse assesses the influence of modernization and dependency theories on Africa’s development. The conclusion is that both theories have failed to help develop Africa. The discourse pins hope on the African Renaissance theory of development. Key words: Modernization, dependency, rural underdevelopment, African renaissance. INTRODUCTION Africa houses plentiful economic resources. Paradoxically, the continent languishes in poverty as evidenced by high prevalence of famine, disease and ignorance (Buthelezi, 2007). This presentation attributes the poverty to theories of development because the way society deals with underdevelopment is influenced by development theories. The presentation assesses the effect of modernity and dependency theories on Africa’s development and concludes by recommending the adoption of the African Renaissance theory to Africa’s development. In this presentation...
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...CASE STUDY CHINA “UNBALANCED” In this case study, we will attempt to answer what measures China took in preparation for acceptance into the WTO and how it adjusted to its eventual admittance in December of 2001. We will also review some of the problems associated with China’s economic growth strategy. We will begin our analysis of these questions by examining China’s economy at the time of Deng Xiaoping’s accession to power in 1978 and the economic growth strategy he and his successor implemented which ultimately led China to ascension into the WTO. We will then review various conditions imposed upon China by the WTO and how China reacted to those changes and to what extent these lead to China’s current status and interaction with its principal economical partners .. We will conclude our analysis by outlining some of the problems associated with China’s growth strategy and the missing components that would be needed in order to become a free economy and to achieve sustainable growth in the future. During the time of Mao Zedong’s term in power, China was a communist state that had a closed economy, a population of just fewer than one billion and state-owned companies that were financially unsuccessful and a drain on the economy. The choice of economic systems is based on the belief that the system will bring the highest goods to the majority of the people, most of the time. Mao Zedong adopted a Chinese nationalist and anti-imperialist outlook with which he ruled China...
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...Case study 1.1 What did that really cost you? Economists measure costs using a concept called opportunity cost. The opportunity cost of an action is the resources used when that action is taken valued in their next best alternative use. It is the problem of scarcity that explains why economists think opportunity cost is the appropriate measure of cost. Scarcity of resources implies that the real cost of an action to society is the resources that are used when that action is taken. Therefore, to properly account for the costs of the action, all resources that are used need to be incorporated into the measure of cost. The monetary price you pay for a product is an important part of its opportunity cost. But since time is a resource, the costs of time used in shopping for and consuming a product are also part of its opportunity cost. Examples are when we need to take time to compare potential suppliers to find the best price for a product, when we need to spend time queuing to buy a product, or when it takes time to consume or use a product. Question: Sally Stockbroker has to decide whether to return to university to study for a Masters of Business Association (MBA). The MBA will take three years to complete. Sally knows that the information relevant to calculating opportunity cost is that: (a) MBA fees will cost $20000 per year; (b) her salary as a stockbroker in every future year of her working life would be $80000 per year if Sally does not do an MBA; (c) during her time...
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...PROFIT AND LOSS PROFIT AND LOSS LUDWIG VON MISES Ludwig von Mises Institute AUBURN, A L A B A M A Copyright © 2008 Ludwig von Mises Institute Ludwig von Mises Institute 518 West Magnolia Avenue Auburn, Alabama 36832 U.S.A. www.mises.org ISBN: 978-1-933550-36-7 CONTENTS A. The Economic Nature of Profit and Loss . . . . . . . . . 7 1. The Emergence of Profit and Loss . . . . . . . . . . . . 7 2. The Distinction Between Profits and Other Proceeds. . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3. Non-Profit Conduct of Affairs . . . . . . . . . . . . . . . 11 4. The Ballot of the Market . . . . . . . . . . . . . . . . . . . . 13 5. The Social Function of Profit and Loss . . . . . . . . 19 6. Profit and Loss in the Progressing and in the Retrogressing Economy . . . . . . . . . . . . . . . . . . 24 7. The Computation of Profit and Loss . . . . . . . . . . 26 B. The Condemnation of Profit . . . . . . . . . . . . . . . . . . . 33 1. 2. 3. 4. 5. 6. 7. Economics and the Abolition of Profit . . . . . . . . . 33 The Consequences of the Abolition of Profit . . . . 34 The Antiprofit Arguments . . . . . . . . . . . . . . . . . . . 37 The Equality Argument . . . . . . . . . . . . . . . . . . . . . 40 Communism and Poverty . . . . . . . . . . . . . . . . . . . 43 The Moral Condemnation of the Profit Motive . . 47 The Static Mentality . . . . . . . . . . . . . . . . . . . . . . . 50 C. The Alternative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 5 A...
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...AFRICAN POVERTY Duncan Kennedy* Abstract: African extreme poverty is probably a function (although not solely) of the balkanized post-colonial geopolitics of Africa. It is also probably a function (although not solely) of the income distribution generated by a typically perverse African political economy, through its effect on the allocation of resources to development. As between these two causes, the second is probably much the more important. This reinterpretation puts considerably more of the blame for African poverty on the Western great powers than does the “poverty trap” analytic that is a common contemporary way of thinking about the African economic situation. INTRODUCTION This essay, which really is an essay rather than a sustained scholarly encounter with the problem, proposes an alternative to the “poverty trap” analytic for understanding extreme poverty in sub-Saharan Africa. The poverty-trap idea is well instantiated by the following quotation from Jeffrey and Lisa Sachs, and it is common among liberal Western commentators on African economy. For the world’s poorest people, daily life is a struggle for survival, with millions of impoverished people each year losing that struggle to famine, disease, environmental catastrophes, and violent conflicts that arise in conditions of extreme deprivation. . . . One basic point, not always remembered, is that impoverished countries lack their own budgetary resources needed to supply vital—indeed life-saving—services such...
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...The below are the requirements for term paper. 1)Title 2)Object 3)Review(2 articles) 4)Analysis 5)conclusion 6)Source(References) http://www.businessweek.com/blogs/globespotting/archives/2009/01/satyam_scandal.html The terror attacks on Mumbai were just a tremor for the country’s tech industry compared to the shocks coming from the Satyam scandal. Earlier today, Ramalinga Raju, Satyam’s founder and longtime chairman, admitted in a letter to the board that he had been cooking the books for years to make up for revenue and profit shortfalls. Read the details in this report by my BW colleague, Manjeet Kripalani. In his letter, Raju wrote that the cover-up finally got the best of him: “It was like riding a tiger, not knowing how to get off without being eaten.” This admission will have a crippling impact on Satyam. Its chances of getting new business are nil. Don’t expect its current customers to abandon the company overnight. That’s not easy in a tech services business where the operations of the client and service provider are so interwoven. On the other hand, it’s possible that the company may collapse financially, in which case clients will have no choice but to flee. Which brings us to a bigger shock: This betrayal of trust could have a major impact on the entire Indian tech services industry. The industry has spent 20 years building up credibility with Western clients, but this disaster will make many US and European clients rethink their reliance on Indian outsourcing...
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...Book I Of the Causes of Improvement in the productive Powers of Labour, and of the Order according to which its Produce is naturally distributed among the different Ranks of the People Book I, Chapter I Of the Division of Labor*16 I.1.1 The greatest improvement*17 in the productive powers of labour, and the greater part of the skill, dexterity, and judgment with which it is any where directed, or applied, seem to have been the effects of the division of labour. I.1.2 The effects of the division of labour, in the general business of society, will be more easily understood, by considering in what manner it operates in some particular manufactures. It is commonly supposed to be carried furthest in some very trifling ones; not perhaps that it really is carried further in them than in others of more importance: but in those trifling manufactures which are destined to supply the small wants of but a small number of people, the whole number of workmen must necessarily be small; and those employed in every different branch of the work can often be collected into the same workhouse, and placed at once under the view of the spectator. In those great manufactures, on the contrary, which are destined to supply the great wants of the great body of the people, every different branch of the work employs so great a number of workmen, that it is impossible to collect them all into the same workhouse. We can seldom see more, at one time, than those employed in one single branch. Though in...
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...century standards, handled nearly one hundred thousand tons of beets produced on some seventeen thousand acres, extracting from them more than three million pounds of sugar. From France, the industry spread to other countries, especially to Germany and Russia. In Germany, Achard established a school attended by students from all parts of Europe. When the students returned to their home countries, they carried with them technical information that encouraged the establishment of many more factories. The conclusion of Napoleon's regime in 1815 brought an end also to the embargo, freeing up of substantial stocks of unsold cane sugar. Plummeting prices resulting from the release of surplus stock forced all but one of France’s sugar factories to close because they could not compete with the low-priced surplus stocks. Nor could French sugarbeet factories compete with foreign competitors who produced cane sugar with slave labor. Technical improvements in beet seed quality and in factory operations, however, brought a quick rebirth of beet sugar processing. By 1822, sugar recovery had risen to five percent, enough to encourage the construction of more than one hundred new factories in France. By 1836, the country boasted of 436 beet sugar factories. The importers of cane sugar, taking note of rapidly improving sugar recovery from sugarbeets, turned to the government for protection. The French government responded by reducing the import duty on sugar. Within two years, 167 of the new beet...
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