Integration of Financial Markets over past 25 years Essay

Integration of Financial Markets over past 25 years - Essay Example The world has become a smaller place and globalization has contributed towards the growth of international credit as a result of an international integration of the goods and services market and the growing presence of multinational companies. The GNP has seen more than twice growth in the share of imports and exports for most nations which in turn brought about a large increase in international lending and borrowings for the purpose of addressing the needs of current account transactions (Bekeart, Harvey, and Lumsdaine, 2002). Open financial markets have been regarded as an opportunity for expansion of investor’s portfolio diversification scope and therefore has a higher potential for greater risk-adjusted return. For the country, smooth consumption is allowed and saves them from potential shocks. Financial flows also result in the flow of capital with potential welfare gains and growth and international risk sharing. The costs of financial integration might also be as drastic as its benefits. Countries run the risk of reversal of capital flows and the risk of increased volatility through a largely open capital market. The recent financial crisis has been an example of the drawbacks of financial integration worldwide where the financial meltdown in one country has impacted the complete global economy. Although there was some misalignment of fundamentals, the financial crisis has brought focus to the instability inherent within the financial markets as a result of the financial integration process. This calls for a stronger regulatory supervision and more stubborn financial systems (Agà ©nor, 2001). The paper is organized beginning with a discussion on the operational significance of international financial markets and moves on to evaluate determinants of foreign exchange markets for the long run and the short run. The paper also analyses the international stock exchange and its role and reflection on the financial integration.

Literature Review On Green Logistics

Literature Review On Green Logistics The United States consumes 20.8 million barrels of oil everyday which leads the world; China is a distance second with 7.5 million barrels per day (Oil consumption, retrieved 8 Apr 2011). The number one transportation fuel used in the United States is gasoline and that fuel is used to keep our approximately 250 million vehicles running. Today there are about 250 million vehicles on the roads that use gasoline with the average miles driven at about 12 thousand per year (Gasoline explained, retrieved 8 Apr 2011). It doesnt take a rocket scientist to understand how dependent Americans are on their vehicles and that we will only change our habits if given an affordable choice. The auto maker that provides the cheapest and most reliable options to go green is the one who will reap the benefits of profit. Even though many loyal consumers may continue to purchasing GM vehicles regardless of fuel prices, GM must change its current business model by going green to stay competitive because fuel prices are on the rise and competitors are passing them up by providing more fuel efficient options. There are many challenges facing todays automakers. A dilemma has developed in the auto industry as it pertains to profit and or moral responsibility. Auto production is not as profitable as before because of a flood of choices in vehicles. The auto industry makes money by mass producing a style of vehicle the consumer is asking for. On top of all that the government continues to introduce strict environmental regulation that auto makers must conform to. A perfect storm has developed between the auto makers and environmental responsibility in an effort to meet the challenges of producing a sustainable and profitable industry for the future (Nieuwenhuis, P., Wells, P., and retrieved 8 Apr 2011) The transition to a new business model has not come easily. In 2008 the General Motors Corporation sat on the edge of going into bankruptcy needing the United States government to bail it out with a $13.4 billion loan. President Bush expressed his concern fearing that liquidating the company would cause even more economic hardship in America (Hinton, C., 2008). In mid-2009 GM finally declared bankruptcy even after the $13.4 billion dollar loan given by the government a year before. The bankruptcy would only negatively affect a portion of the organization that would later be called the bad GM that included the undesirable parts of GM like older factories, unpopular brands, and healthcare and pension liabilities. The Good GM that included the more desirable modern factories and popular auto brands would be spared in the downsizing and reemerged in the new GM in July 2009 (McCracken, J., 2009). Most realize that supply and demand is the backbone of any for profit organization. In the case of GM or any other supplier, production is driven by the customer or consumer. If the customer wants hybrids-electric vehicles the auto manufacturer will supply them if they dont there will not be any regardless of any perceived moral responsibility of the auto maker. With that understanding the need to look into GM further to find the trigger events is necessary. Remember trigger events are the things that cause an organization to change (Spector, 2010, p.18). With General Motors some of the triggers came in the form of the commodities needed to produce the vehicles. With the increased costs of materials needed to produce vehicles like steel and aluminum GMs profit margins were reduced. The expensive material needed to produce vehicles cannot easily be replaced with a cheaper material so the auto maker is stuck. One interesting perceived trigger for change by GM is oil prices. Keep in min d that oil prices may not be a trigger in the view of GM but is a trigger in the view of the government (who now holds a large part of GMs stock) based on the U.S. oil consumption each year. So in GMs case oil prices are a direct change trigger. The fact is that oil prices affect the day-to-day cost that the consumer pays out more than it affects the auto maker who can absorb the year-to-year cost of rising oil prices. Besides the issue with production cost GM experienced a lot external change triggers through the pressure from the government and the media. With recent attention on the environment and the high cost of fuel GM just as all the other auto manufacturers are now answering the call from customers for less polluting more fuel efficient vehicles. Because GM was known for its large gas guzzling SUVs, luxury cars while other auto manufacturers like Toyota, Honda and Volkswagen were already making fuel efficient vehicles high gas prices became a change trigger for GM. Not only did GM need to make a business model change based on these triggers but they would need to do so in a catch-up mode because the before mentioned organizations already had began developing the technology needed for the change (GM Corporation, 2008). Even though some consumers may continue purchasing GM vehicles regardless of fuel prices, GM must change its current business model by going green just to stay competitive because public opinion, pressure from the government and rising fuel costs. The most important reason GM must change its current business model by going green is because their competitors will pass them by and steal their customer base if they dont. As a result of public pressure and the politics of the auto industry GM is simultaneously making progress and history. This year General Motors produced the first production version of a hybrid vehicle called the Chevy Volt. The sale will serve as a test in America to see if consumers will be willing to spend their hard earned money in the name of helping the environment. The event will also serve to test which of two marketing concepts Americans prefer, one is the before mentioned hybrid vehicle with batteries that can be plugged in at your home and recharged and two the series hybrid production car. The Volt is the first to pop through the hybrid-electric market but BMW is ready to release their version hybrid- electric concept. Later this year BMW plans to release the Fisker Karma, a luxury sports sedan (Voelc ker, J., 2011). There are many different approaches to change and just as many opinions of which change model or redesign to use. The answer to which way to go is dependent on the end goals of the organization. General Motors desperately needed to rethink and turnaround their sinking business because they were running out of money and feeling pressure from sluggish sales. As mentioned the GM organization was in need of a change based on the need to stabilize and increase its profits. Part of what GM decided to do fits firmly into the definition of a turnaround which is when an organization doesnt look to change its current business practices to meet the expectations of the stakeholders or consumers but instead reevaluates its assets in an effort to cut the fat. When an organization implements turnaround they streamline and reprioritize the areas critical to increase profits. This was displayed in the actions of GM through their decision to close out dated factories, draw downs, reducing health insur ance, and pension benefits (Spector, 2010, p.15). In many cases turnaround alone is not enough to meet the organizational goals and in the case of GM they needed to look at changing in their organizational business plan. Based on rising oil prices and political pressure from the government and the public through the media the days of gas guzzling SUVs and luxury sedans may be in the past. General Motors now must look at reducing its vehicles dependence on gasoline and branch through organizational redesign into the hybrid-electric vehicle market. One of the triggers that have motivated General Motors to make a change was pressure from the United States government based on their agreement to bailout GM. In a statement on auto industry restructuring by the new CEO of General Motors Frederick Henderson the government has given GM 60-days to come up long-term viability of the company including restructuring of the financial obligations to the bond holders, unions, and other stakeholders. Henderson went on to say General Motors was one or two generations behind in the development of green technologies. He added that hybrids will be one direction GM will go in the new business model and that GM must move quickly to catch up with Toyota and Honda while at the same time advancing the development of their electrically-powered vehicles like the Chevy Volt (WSJ Staff, 2009). General Motors is currently working with over 30 utility companies in the U.S. to work through any issues dealing with the required electrical access in anticipation to its roll out of new electrical vehicles that will be ready in about two years. The partnership includes some big players in the field include Duke Energy, Southern California Edison and the Electrical Vehicle Institute. All the main players will figure out the details such as tax and tax incentives and the locations and times an electric car owner can plug in for a charge or recharging. General Motors engineers are working towards building an enduring infrastructure for green vehicles that will be used in the future. Britta Gross a GM engineer saysWe know that when the vehicle is in the showroom and ready for sale, its got to work seamlessly with the infrastructure. Its the whole picture. We got to make sure the infrastructure is ready. General Motors is getting in on the ground floor with its partnership with the utilities. The groups will develop policies, tax incentives on the expensive green vehicles. The idea is to design electric cars that will be low demand type usage vehicle traveling only abut 40 miles between charges. Other issues GM and their partners will need to work out is the speed in which a vehicle can recharge, voltage, and amperage (Krisher, T., 2009). This month General Motors will be the first of the big three American auto makers to roll out a new electric car known as the Volt. GM is committed to ensuring the Volt is marketed well because they understand how much America needs this type of vehicle. The worlds first mass produced production electrical vehicle will be released in Boston Mass. The Volt is a hybrid-electric vehicle with a gas engine that is only engaged after about 35 miles which is the current one charge battery life. After the 35 miles the electric engine will be replaced by the internal combustion engine. For those Americans who travel the 35 miles or less in their daily travels to work will get indefinite gas mileage. Just in time to charge/track the infinite mileage the Environmental Protection Agency has developed a way to measure the energy used by electric vehicles. The EPA figures the amount of electricity needed to charge the Volts rechargeable battery gives the Volt a fuel rating of about 93 miles per ga llon. The 93 miles per gallon is the highest rating of any vehicle in history for any US car manufacturer. As far as the looks of the Volt which is very important to the American consumer the vehicle looks just like a traditional gas powered vehicle until you open the hood. Under the hood are two electric motors, a four-cylinder gas engine and a huge T-shaped battery pack that runs the vehicle. In 2009 the U.S. government bailed out General Motors and in turn they have pinned their hopes on the Volts success. The Volt is GMs future as far as its advancement in green technology (Kronenberg, J., 2011). Now that General Motors has identified the need to change through the triggers discussed earlier and they then redesigned their business model as well as made some hard choices that fit under the turnaround concept that meet their current and future needs it now time to look at if the changes have been successful. In March 2004 President Obama invested billions of dollars to assist GM and to keep the organization from falling through. The U.S. government also guided GM through a uniqueness of a divided bankruptcy that kept the good GM and cut lose the parts of GM that were losing money. Its widely accepted that GMs bailout has developed into a great success. Just in recent weeks General Motors has announced its highest returns since 1999 a $4.7 billion profit, the first time thats happened since 2004. A year ago sales were 46% lower that present day sales. The expectations are that GM will continue to increase their Market share and their profit margines even in the face of rising fuel prices. In addition to the new growth/profits GM has begun paying back the billions of dollars it owes the U.S. government. The future looks bright as well with GM producing two more new vehicles but the star is the most electric Chevrolet Volt the plug-in-play hybrid car. GM has also advertised that they have m ore new vehicles and technologies on the way (Editorial, 2011). With any organizational change the requirement to reflect objectively to the changes is a must. The importance of revisiting the changes is to ensure the changes made have stuck and that the old habits havent resurfaced. Just because an organization has developed a great strategy that should be successful doesnt mean it will be successful. One way to look back in an effort to identify successes in a winning strategy is to answer a few well thought out questions. The first question should be; does the strategy fit the organizations situation? In the case of GM the change in their business model was designed partly by their external situation in that the U.S. government forced them into developing a strategy that would sustain the organization long term. The strategy also satisfied the internal needs of GM because they needed to reduce the bad GM that was keeping them from turning a profit. The bad side of GM was of course the old factories, unpopular brands and also costly healthcare and benefits. The change satisfied both GM their customers and the U.S. government. The second question is; has the strategy yielded a sustainable competitive advantage? This question is answered in the fact that GM new strategy is innovative in respect to the development of hybrid-electric vehicles and in producing the first production car that is a hybrid. The third question is; Has the strategy produced good financial performance? The answer to this last quest ion is a thundering yes. General Motors based solely on the organizational redesign and updated business model have produced a 46% market value increase compares to pre-strategy implementation (Gamble, J., Thompson, A., 2011). General Motors was by all accounts forced to change the way they conducted business. The economy and GMs stakeholders both applied their unique pressures that included significant a bailout by the U.S. government. If not for the pressures mentioned above who knows if GM would have ever changed their organizational practices. Supply and demand will always drive organizations to change. So you can see that even although consumers may continue to purchase General Motors vehicles regardless of fuel prices, GM must change its current business model by going green in an effort to stay competitive for two main reasons. First, fuel prices are on the rise. But more importantly, GM vehicle competitors like Honda and Toyota will pass them bye if they dont change.

Eudora Weltys The Ponder Heart: A Southern Journey :: Eudora Welty The Ponder Heart

Eudora Welty's The Ponder Heart: A Southern Journey Imagine that while you're traveling in the South, you develop car trouble in the small town of Clay, Mississippi. You find a room at the Beulah Hotel, an old establishment that sits downtown right across the street from the courthouse. After you check in, it becomes clear to you that the Beulah doesn't get many guests these days; in fact, you're the first person even to enter the building in three days. Almost immediately you become the target of Edna Earle Ponder, the hotel's proprietor, who is eager to talk. You try to escape with a book, but Edna Earle will have none of that. She goes so far as to tell you, "And listen; if you read, you'll put your eyes out. Let's just talk." Even at this early stage of the game, you know who's going to do all the talking, don't you? What's more, Edna Earle lets you know right off the bat that she's "sizing you up," but she then launches into a story that will captivate you and keep you laughing all the while. To be sure, you'll learn a great deal more than you'd expect about Edna Earle, the rest of the Ponder family, and many other inhabitants of Clay. What a yarn it is that Edna Earle tells in Eudora Welty's The Ponder Heart. Her story revolves around the escapades of her Uncle Daniel, but in hearing about him, you'll hear—through Edna Earle's incessant gossip—almost all there is to know about the way the rest of the town behaves. "[Edna Earle] assumes you want to know everything about everybody in town, and starting on that basis, she pushes you right into the middle of it," Welty says in an interview with Patricia Wheatley (Prenshaw 132). You'll find yourself caught up in a comical story that gives insight into a way of life of the early-20th century South, told through Welty's rich use of Southern dialect and subtle details about social strata and social nuances in Clay. Starting with the title and its play on definitions of "heart," you see and hear the story of Edna Earle Ponder's Uncle Daniel, whose main purpose in life seems to be to give things away (as we would say in modern times, "he's all heart"). Through Edna Earle (the name of many Southern women of that generation, taken from the heroine of the popular 19th century book St. Eudora Welty's The Ponder Heart: A Southern Journey :: Eudora Welty The Ponder Heart Eudora Welty's The Ponder Heart: A Southern Journey Imagine that while you're traveling in the South, you develop car trouble in the small town of Clay, Mississippi. You find a room at the Beulah Hotel, an old establishment that sits downtown right across the street from the courthouse. After you check in, it becomes clear to you that the Beulah doesn't get many guests these days; in fact, you're the first person even to enter the building in three days. Almost immediately you become the target of Edna Earle Ponder, the hotel's proprietor, who is eager to talk. You try to escape with a book, but Edna Earle will have none of that. She goes so far as to tell you, "And listen; if you read, you'll put your eyes out. Let's just talk." Even at this early stage of the game, you know who's going to do all the talking, don't you? What's more, Edna Earle lets you know right off the bat that she's "sizing you up," but she then launches into a story that will captivate you and keep you laughing all the while. To be sure, you'll learn a great deal more than you'd expect about Edna Earle, the rest of the Ponder family, and many other inhabitants of Clay. What a yarn it is that Edna Earle tells in Eudora Welty's The Ponder Heart. Her story revolves around the escapades of her Uncle Daniel, but in hearing about him, you'll hear—through Edna Earle's incessant gossip—almost all there is to know about the way the rest of the town behaves. "[Edna Earle] assumes you want to know everything about everybody in town, and starting on that basis, she pushes you right into the middle of it," Welty says in an interview with Patricia Wheatley (Prenshaw 132). You'll find yourself caught up in a comical story that gives insight into a way of life of the early-20th century South, told through Welty's rich use of Southern dialect and subtle details about social strata and social nuances in Clay. Starting with the title and its play on definitions of "heart," you see and hear the story of Edna Earle Ponder's Uncle Daniel, whose main purpose in life seems to be to give things away (as we would say in modern times, "he's all heart"). Through Edna Earle (the name of many Southern women of that generation, taken from the heroine of the popular 19th century book St.

Establishing Business in Brazil Essay

In establishing business in Brazil, Under Armour has to study the country’s customs, traditions, language and cultural differences in order to start right. Learning these things will also help the company in its hiring and employing of local workers. Human Resource — one of the most important aspects of business is the workforce. To effectively deal with Brazilian employees, UA management should understand cultural differences that include: (customs/traditions) 1. business is a social event 2. Brazilians don’t buy on impulse 3. Brazilians are very conscious of rank and position 4. being late is socially acceptable Another important consideration that UA has to make is the hiring of local junior executives who could assist the company in the hiring and training of employees. Local executives would be very helpful and bridging the cultural gap between management and native workers. As an example, Chevron Corp., an American oil company has a successful operation in Brazil. It’s workforce is comprised of both foreign and local workers. Foreign workers come from the United States and other neighboring countries. Communication Communication is very important in any organization or corporation. More so when the natives of the country of operation speaks Portuguese. This language is used by all of the people in Brazil, and is considered a unifying factor. In order for Under Armour to handle local workers, it is necessary for the non-Brazilian managers to take up language classes. In the same manner, it is beneficial for the local workers to be enrolled in English classes. By being equipped with the right language skills, both managers and employees will be able to communicate effectively and lessen the chances of having conflicts because of miscommunication.

Sula by Toni Morrison

Sula by Toni Morrison, is a book about a black female and the various events throughout her life. The majority of these events were at the fault of Sula, but because of her past she did not know, or could not understand any better. Sula became the woman that she was because of the people and events that were around her during her childhood. When Sula was a child, she grew up faster than most children because of the things that she saw and heard, so it was almost as if she had a loss of childhood. When Sula was only three years old, her father died. Although this may not have had a direct effect on Sula because of how young she was, her mother, Hannah, was left without a husband and with an unquenchable thirst for â€Å"maleness† (Bukisa). This passion for men led to Hannah having many affairs with different men but never building real relationships with them. Sula, being as curious as any child, often watched these interactions, or at least saw the aftereffects of these interactions, and understood that her mother found pleasure in men. Another incident during Sula's childhood involves her listening in on one of her mother's conversations. One day Sula heard Hannah tell some other woman that she loved Sula, but that she did not like her. Hannah's comments about not liking her made Sula begin to think about love. These thoughts of love were her first real interaction with adulthood (Sparknotes). Hearing her mother say this made Sula realize that she could not count on anyone except herself (Begnal). Sula realized that love was not what she thought it was, and it made her feel insecure, but secure at the same time. She knew that her mother would not stop loving her, but that love was not the same thing that she had once believed it to be (Sparknotes). A third traumatic event that occurred during the childhood of Sula was the death of Chicken Little. Sula and Nel were out playing near a lake, when a boy named Chicken Little showed up. Nel teased him, but instead of joining her friend to tease Chicken Little, Sula defended him. Sula then began to swing Chicken Little around playfully. Unfortunately, Sula lost her hold on Chicken Little, and he went flying into the lake and drowned. The death of Chicken Little further drove Sula's loss of childhood innocence because it showed her how quickly life can be taken (Sparknotes). The immortality that most children believe they have, was then gone from Sula. She never even bothered to tell anyone what she did because, instinctively, she knew that society would misunderstand the incident and blame her for Chicken Little's death. Another death Sula experienced while growing up was that of her mother, Hannah. Hannah took a nap and dreamt about a red bridal dress. She tried to get her mother, Eva, to interpret the dream for her but before Eva was able to, a young Sula distracted her. Later, Eva looked out her window just in time to see Hannah getting ready to jump into a fire. Eva jumped out of her second story window in order to try to save her daughter, but it was too late. When Eva looked up, she saw Sula standing there, watching everything happen. This event holds extreme significance in Sula's life transformation into a woman for multiple reasons. First, Sula looked as if she were genuinely interested in the burning of her mother, almost as if she had enjoyed it. She was not concerned with saving her mother, but she just wanted to watch what was going on. Secondly, it made her grandmother resent her, because in some ways she felt that Hannah's death was Sula's fault. Because Sula distracted her from interpreting Hannah's dream, she was unable to stop Hannah from killing herself (Sparknotes). Her grandmother was the only family that she really had left, and because Eva resented her, it forced Sula to grow up even more rapidly. Sula's relationship with Nel was another major factor in her maturation into a woman. Sula and Nel were like each other's support systems (Bukisa). Throughout their childhood, Nel always supported Sula and vice versa, even though they were extremely different. Nel was conservative and brought up in a relatively stable home by a proper, lady-like, mother, the way their society expected, while Sula was raised in a home where people constantly came and went, by a mother who slept with different men on various occasions. These two completely different worlds were what drew these two young girls to each other (Bukisa). They were opposite in more than just their upbringing. Sula was rougher and tougher than Nel was, but her emotions were also inconsistent. Nel, on the other hand, was quiet, and normally had a steady emotion (Bukisa). It was as if these two girls were each one half of the same whole, making them inseparable. During their childhood, they shared everything, including boyfriends. All of these factores contributed to Sula's personality and actions as an adult. Sula as an adult had problems with love, recognizing boundaries, and fitting in. Sula lacked the ability to love because of her family, mainly her mother. Hearing Hanna say that she loved Sula but did not like her made Sula believe that love was something that was forced upon people, instead of a choice. Sula's personality was much too independent to be forced to do anything, so she decided not to love at all. The closest she ever even came to love was with a man named Ajax, but he eventually left her which did nothing but assure Sula that she should not love. Eva's resentment of Sula also convinced Sula that love was not an emotion worth pursuing. If her own family could not love her, then there was no reason for her to love anyone, including her family. Her boundaries issue was also caused by her mother, but Nel contributed to it as well. Her mother's contribution was brought about in the way she slept with the husbands of wives around the community. Seeing her mother have no respect for the bond between a husband and a wife, Sula began to think that it was all right for her to do the same. Sula's relationship with Nel was a cause of this boundary issue as well. Because Nel and Sula had shared virtually everything throughout their lives, Sula believed that that would never change. She thought that her and Nel's bond was never going to change no matter what happened or what they shared. This thought process led Sula to sleep with Nel's husband during a moment of weakness and then act as if everything would be perfectly fine. Once Sula realized that Nel was mad at her she was confused because she thought that they could share anything (Schmoop). Sula's third issue, of fitting in, was not one that she was too concerned about. Also related to her childhood, Sula had seen that fitting in was not necessarily the â€Å"correct† way to live. Watching her mother as a child, Sula saw that life was completely enjoyable even while living outside what society considered to be acceptable. Sula lived with no regrets and did not care what anyone thought of her. Ten years after leaving home, Sula returned to visit her grandmother ,Eva. During their conversation, Eva brought back memories of Hannah's death , so Sula put her into a nursing home. Even though society looked upon this action as being cruel, Sula did not see it as being so, and did not care that society did (Sparknotes). As flawed as Sula was, she never surrendered to falseness or fell into the trap of conventionality in order to keep up appearances or to be accepted by the community. As Morrison notes of her, â€Å"She was completely free of ambition, with no affection for money, property or things, no greed, no desire to command attention or compliments ? no ego† (Cliffsnotes). The women of the community hated her particularly because she was living criticism of their own dreadful lives of resignation (Cliffsnotes). She refused to settle for the traditional role that most women in her communtiy had, so they felt threatened and saw Sula as a witch (Begnal). being seen as a witch would bother the average person, but because Sula did not care about fitting in, she simply brushed it off. As an adult she showed less emotion than she did as a child because to her, emotions were just a something to occupy time (Sparknotes). Sula's transformation into a woman is a remarkable result of her upbringing. The way she let nothing get to her, and did not change for the next person, can all be explained by understanding her adolescence. She was, in a way, a direct result of her environment. From her loss of childhood and her friendship with Nel, came the woman that she was on the day that she died, unbothered.