Currency and Thai Baht Essay Example for Free

Currency and Thai Baht Essay Assessing Future Exchange Rate Movements 1. How are percentage changes in a currency’s value measured? Illustrate your answer numerically by assuming a change in the Thai baht’s value from a value of $0.022 to $0.026. ANSWER: The percentage change in a currency’s value is measured as follows: where S denotes the spot rate, and St −1 denotes the spot rate as of the earlier date. A positive percentage change represents appreciation of the foreign currency, while a negative percentage change represents depreciation. In the example provided, the percentage change in the Thai baht would be: That is, the baht would be expected to appreciate by 18.18%. 2. What are the basic factors that determine the value of a currency? In equilibrium, what is the relationship between these factors? ANSWER: The basic factors that determine the value of a currency are the supply of the currency for sale and the demand for the currency. A high level of supply of a currency generally decreases the currency’s value, while a high level of demand for a currency increases its value. In equilibrium, the supply of the currency equals the demand for the currency. 3. How might the relatively high levels of inflation and interest rates have affected the baht’s value? (Assume a constant level of U.S. inflation and interest rates.) ANSWER: The baht would be affected both by inflation levels and interest rates in Thailand relative to levels of these variables in the U.S. A high level of inflation tends to result in currency depreciation, as it would increase the Thai demand for U.S. goods , causing an increase in the Thai demand for dollars. Furthermore, a relatively high level of Thai inflation would reduce the U.S. demand for Thai goods, causing an increase in the supply of baht for sale. Conversely, the high level of interest rates in Thailand may cause appreciation of the baht relative to the dollar. A relatively high level of interest rates in Thailand would have rendered investments there more attractive for U.S. investors, causing an increase in the demand for baht. Furthermore, U.S. securities would have been less attractive to Thai investors, causing an increase in the supply of dollars for sale. However, investors might be unwilling to invest in baht-denominated securities if they are concerned about the potential depreciation of the baht that could result from Thailand’s inflation. 4. How do you think the loss of confidence in the Thai baht, evidenced by the withdrawal of funds from Thailand, affected the baht’s value? Would Blades be affected by the change in value, given the primary Thai customer’s commitment? ANSWER: In general, a depreciation in the foreign currency results when investors liquidate their investments in the foreign currency, increasing the supply of its currency for sale. Blades would probably be affected by the change in value even though its Thai customer’s commitment, as the sales are denominated in baht. Thus, the depreciation in the baht would have caused a conversion of the baht revenue into fewer U.S. dollars. 5. Assume that Thailand’s central bank wishes to prevent a withdrawal of funds from its country in order to prevent further changes in the currency’s value. How could it accomplish this objective using interest rates? ANSWER: If Thailand’s central bank wishes to prevent further depreciation in the baht’s value, it would attempt to increase the level of interest rates in Thailand. In turn, this would increase the demand for Thai baht by U.S. investors, as Thai securities would now seem more attractive. This would place upward pressure on the currency’s value. However, the high interest rates could reduce local borrowing and spending. 6. Construct a spreadsheet illustrating the steps Blades’ treasurer would need to follow in order to speculate on expected movements in the baht’s value over the next 30 days. Also show the speculative profit (in dollars) resulting from each scenario. Use both of Ben Holt’s examples to illustrate possible speculation. Assume that Blades can borrow either $10 million or the baht equivalent of this amount. Furthermore, assume that the following short-term interest rates (annualized) are available to Blades: Currency Dollars Thai baht Lending Rate 8.10% 14.80% Borrowing Rate 8.20% 15.40% ANSWER: Depreciation of the Baht from $0.022 to $0.020 1. Borrow Thai baht ($10,000,000/0.022) 2. Convert the Thai baht to dollars ($454,545,454.50 million Ãâ€" $0.022). 3. Lend the dollars at 8.10% annualized, which represents a 0.68% return over the 30-day period [computed as 8.10% Ãâ€"(30/360)]. After 30 days, Blades would receive ($10,000,000 Ãâ€" (1 + .0068)) 4. Use the proceeds of the dollar loan repayment (on Day 30) to repay the baht borrowed. The annual interest on the baht borrowed is 15.40%, or 1.28% over the 30-day period [computed as 15.40% Ãâ€"(30/360)]. The total baht amount necessary to repay the loan is therefore (454,545,454.50 Ãâ€"(1 + .0128)) 454,545,454.50 10,000,000.00 10,068,000.00 460,363,636.40 5. Number of dollars necessary to repay baht loan ($THB460,363,636.40 Ãâ€" $0.02) 6. Speculative profit ($10,068,000 – $9,207,272.73) 9,207,272.73 860,727.27 Appreciation of the Baht from $0.022 to $0.025 1. Borrow dollars. 2. Convert the dollars to Thai baht ($10 million/$0.022). 3. Lend the baht at 14.80% annualized, which represents a 1.23% return over the 30-day period [computed as 14.80% Ãâ€"(30/360)]. After 30 days, Blades would receive (THB454,545,454.50 Ãâ€" (1 + .0123)) 4. Use the proceeds of the baht loan repayment (on Day 30) to repay the dollars borrowed. The annual interest on the dollars borrowed is 8.20%, or 0.68% over the 30-day period [computed as 8.20% Ãâ€" (30/360)]. The total dollar amount necessary to repay the loan is therefore ($10,000,000 Ãâ€"(1 + .0068)) 5. Number of baht necessary to repay dollar loan ($10,068,000.00/$0.025) 6. Speculative profit (THB460,136,363.60 – THB402,720,000.00) 7. Dollar equivalent of speculative profit (THB57,416,363.60 Ãâ€"$0.025) 10,000,000.00 454,545,454.50 460,136,363.60 10,068,000.00 402,720,000.00 57,416,363.60 1,435,409.09

Education In Turkey :: essays research papers fc

EDUCATION IN TURKEY   Ã‚  Ã‚  Ã‚  Ã‚  Education is the act or process of providing knowledge skills or competence by a formal course of instruction or training. Through out history societies have sought to educate their people to produce goods and services, to respond effectively and creatively to their world, and to satisfy their curiosity and aesthetic impulses. To achieve reliable knowledge and to think systematically. Over the course of human history education has appeared in many forms, both formalised and informal. Major thinkers have always recognised the educational value of intellectual exploration and of concrete experimentation. Most societies have attempted to standardise the behaviour of their members. These societies have apprenticeship systems by which the young have learned to imitate the beliefs and behaviours of a given group. Teachers have worked within schools of thought cults, monasteries and other types of organisations to shape desired convictions, knowledge and behaviour. Such philosophical and religious leaders as the Budha, Confucius, Pythagoras, Jesus, Moses, Muhammad and Karl Marx instructed their disciplines through informal education. Turkish State and Turkish Society give great importance to the education since the Turkish Republic was established in 1923. The fall of Ottoman Empire at the end of the first world war and the foundation of the republic after the successful conclusion of the war of independence are two important factors which have made the existence of the new Turkish Society possible. The great desire of this society which is adopted in the social and economic fields to the general life conditions of western civilisations is to work for the benefit of mankind while enjoying all the privileges of civilised life within the family of Nations. In order to reach this goal, it has above all been necessary to establish an educational system in all its stages in such a way as to diffuse its light to all classes of the population.   Ã‚  Ã‚  Ã‚  Ã‚  Bases of the Turkish Education leans to the last years of the Ottoman Empire. The road towards modern education was charted by Selim III and Mahmud II and was followed with accelerated speed by their successors. In the 1876 constitution, educational reforms had been mentioned for the first time ‘For education continued to be regarded as the necessary foundation for the reorganization of the empire and the creation of a cadre of new leaders to maintain it’ As one contemproary writer put it ‘The solution of the ‘sick man’ was not through extemination but through education’. Education In Turkey :: essays research papers fc EDUCATION IN TURKEY   Ã‚  Ã‚  Ã‚  Ã‚  Education is the act or process of providing knowledge skills or competence by a formal course of instruction or training. Through out history societies have sought to educate their people to produce goods and services, to respond effectively and creatively to their world, and to satisfy their curiosity and aesthetic impulses. To achieve reliable knowledge and to think systematically. Over the course of human history education has appeared in many forms, both formalised and informal. Major thinkers have always recognised the educational value of intellectual exploration and of concrete experimentation. Most societies have attempted to standardise the behaviour of their members. These societies have apprenticeship systems by which the young have learned to imitate the beliefs and behaviours of a given group. Teachers have worked within schools of thought cults, monasteries and other types of organisations to shape desired convictions, knowledge and behaviour. Such philosophical and religious leaders as the Budha, Confucius, Pythagoras, Jesus, Moses, Muhammad and Karl Marx instructed their disciplines through informal education. Turkish State and Turkish Society give great importance to the education since the Turkish Republic was established in 1923. The fall of Ottoman Empire at the end of the first world war and the foundation of the republic after the successful conclusion of the war of independence are two important factors which have made the existence of the new Turkish Society possible. The great desire of this society which is adopted in the social and economic fields to the general life conditions of western civilisations is to work for the benefit of mankind while enjoying all the privileges of civilised life within the family of Nations. In order to reach this goal, it has above all been necessary to establish an educational system in all its stages in such a way as to diffuse its light to all classes of the population.   Ã‚  Ã‚  Ã‚  Ã‚  Bases of the Turkish Education leans to the last years of the Ottoman Empire. The road towards modern education was charted by Selim III and Mahmud II and was followed with accelerated speed by their successors. In the 1876 constitution, educational reforms had been mentioned for the first time ‘For education continued to be regarded as the necessary foundation for the reorganization of the empire and the creation of a cadre of new leaders to maintain it’ As one contemproary writer put it ‘The solution of the ‘sick man’ was not through extemination but through education’.

Branded? Fashion Counterfeiting Essay

A lot of leisurely items to date have been somewhat remodeled or refashioned into something that is more cost-friendly for consumers. These are counterfeited items, more popularly known as â€Å"pirated† goods, which are illegal, as authorities would suggest. However, there are a growing number of consumers for pirated goods, especially in developing or underdeveloped countries; even developed countries have their share of consumers of pirated goods. In the fashion industry, most apparels (e.g., T-shirts, pants, blouses, etc.) and textiles are apparently being produced in many developing countries—some underdeveloped—as the multinational conglomerates believe that labor is cheaper in these places. These countries, in turn, have benefited from the decision of many multinational conglomerates: â€Å"The clear winners given all of these industry trends are China and India with their long history in textiles, Pakistan with its current capacity for textile production† (Mead 423). With the production of apparels and textiles shifting from the developed regions like the United States and Europe to underdeveloped or developing countries, it would be so hard to assume that the occurrence of counterfeiting these products will be low. The consumers that could not seem to afford the expensive prices of high-end brands would generally resort to replicas of the same high-end brands. However, all of these multinational apparel-producing industries abhor the existence of pirated versions of their products, bidding for these â€Å"copycats† to be divulged and incarcerated. As a common thing on a global scale, stopping fashion counterfeiting could cause another economic downturn but its proliferation could lead to severe job cutting by companies that believe that they are losing money. The overseas production of the various apparels of American and European brands could be the best opportunity for â€Å"pirates† as these products are exposed and minimally guarded. Usually, people would assume that these pirates operate underground—some controlled by syndicates or any organized group. However, it could also be certain that some of these pirates work from inside the textile or apparel factories. After all, it can produce a better replica of the product. Such acts are despised by the multinational corporations as it breaches trade policies and laws as well as patent, copyright, and license laws. However, the existence of pirated goods prompts consumers to spend more as these products are considerably cheaper than the seemingly overpriced originals. It is believed that producers of pirated goods work underground under a syndicate or some organized group. However, these pirated goods are sometimes sold out in the open for people to see, as in the case of some developing (e.g. India and China) and underdeveloped (e.g. Philippines and Thailand) nations, and in some developed countries—although, rarely do these exchanges happen under the public’s watchful eye. The preconceived notion that consumers coming from developed countries abhor the consumption of pirated goods has been proved false. The following is an example from an article entitled â€Å"Consumption of Counterfeit Goods: ‘Here Be Pirates?’† which proves that consumers can also come from developed countries: â€Å"In France, the most common counterfeit products confiscated are shoes, representing 21 per cent of items, followed by clothes and watches; In Germany, clothes account for 90 per cent of impounded fakes† (Wischermann qtd. in Rutter and Bryce 1155). As unbelievable as it may seem, these circumstances can occur even in developed countries like the United States and European nations. However, the consumption of such products should not be regarded as a crime, or such products must not be confiscated from the owner. Even though it is a pirated good, it was still his or her money that purchased the good. Buying pirated goods does not also necessarily point out as a support for pirated goods nor does it entail any political ideology like an anti-capitalist movement against the multinational brands and their seemingly overpriced goods. Fashion Counterfeiting is considered a battle between the multinational capitalist companies that aim to make another hundred million or billion in sales and the pirates or syndicates that wanted to make money especially during a global economic crisis. It is an epic battle indeed, but which of the two started it? The trail from its origin does not seem too far off. Counterfeiting is an old trade that dates back as early as Ancient Rome (Rutter and Bryce 1147). As ancient as it may be, the act has been considered illegal through international trade policies and copyright laws that it seemed to breach. The cause that promoted the pirating of known fashion brands was the decision of these international apparel companies to build more factories overseas for cheap labor. Labor from the developing and underdeveloped countries attracted these multinational companies because it was cheap: â€Å"this drove down the price of labor around the world as firms relocated operations to China (soon, South Asia as well) because labor is cheaper† (Mead 419). This move resulted in the rebirth of an age-old illegal practice—only this time, it covered and affected the fashion industry. Syndicates and other organized group exploited the existence of factories in these areas—especially that they live under the â€Å"developing-nation state.† Then the process moved onto other parts of the region, usually in places where such prohibiting laws were rarely applied. Thus, the ones at fault were the multinational companies themselves as they gave an opportunity for these pirates to replicate their products. However, sometimes, their presence is not a cause for promoting this kind of piracy. The products can be bought by the pirates themselves—usually they do have the money—from legitimate stores and replicate these after analyzing the products. After all, fashion counterfeiting is simpler than that of software (music, games, programs, albums, videos) piracy. Whichever the case, the reason behind the existence of such products in the market is its affordability since its original counterparts are way more expensive. The production of these pirated apparels will continue as long as someone would consume them. However, is the piracy of these apparels—some of which people really do need—really a problem, especially with the world experiencing another global economic downturn? What happens to those who cannot afford the legitimate and original apparels? It seems they would have to walk around naked or in shabby clothing, or even resort to tailoring their own clothes.

How Does Foucault s Freud s Repression Hypothesis

How does Foucault rebut Freud’s repression hypothesis? In the history of philosophy, many philosophers discuss the repression, however Freud’s and Foucault’s repression hypothesis are widely remains under the debate. Repression has psychological connection and it an attempt of a person in which he repels his desires towards pleasurable instincts by excluding the one’s conscious desire and holds it in the unconscious. As if the writer said, â€Å"Psychologically it is fully justified in beginning by censuring any manifestations of the sexual life of children, for there would be no prospect of curbing the sexual desires of adults if the ground had not been prepared for it in childhood† (Freud, 1929, p. 21). It is believed that repression caused various mental sicknesses and it influences the psyche of an individual (Yeng, 2010). Sexual repression can be defined as a state in which an individual is prohibited to express sexual desires. It is often linked to the feelings of shame, guilt or being connected with the sexual impulses. The sexual repression constitutes are subjectively vary in different culture and different moral systems. Especially most of the religions accused of fostering sexual repression. In the debate about the sexual repression various term are used such as homosexuality. In some cultures it is consider as violent practices and it is also associated as an irrespective or killing act to regulate sexual behaviour. The debate about the repression has always beenShow MoreRelated Language, Power and Discourse of Sexuality: The case of Governor McGreevey1507 Words   |  7 PagesLanguage, Power and Discourse of Sexuality Foucault asks What are the links between these discourses, these effects of power, and the pleasures that were invested by them? (Foucault, 11). In the case of New Jersey governor it seems clear that power, language and pleasure were very much related in his speech on August 13, 2004, in which he announced his resignation, that he had had an affair with a man, and that he was a gay American. A man in a position of power was both given power andRead MoreOrganisational Theory230255 Words   |  922 Pagesmanaging, organizing and reflecting on both formal and informal structures, and in this respect you will find this book timely, interesting and valuable. Peter Holdt Christensen, Associate Professor, Copenhagen Business School, Denmark McAuley et al.’s book is thought-provoking, witty and highly relevant for understanding contemporary organizational dilemmas. The book engages in an imaginative way with a wealth of organizational concepts and theories as well as provides insight ful examples from the