Advantages And Disadvantages Of Fixed Exchange Rate Finance Essay

Advantages And Disadvantages Of Fixed Exchange Rate Finance Essay Introduction The exchange rate is the rate at which one currency trades in exchange of another currency. Exchange rate is value which is same as any other value, it is the same price to acquire other things, and in this case it is another currency. It is the price of one currency in terms of another. The exchange rate are differs from one country to another country, it is depends upon various economic factors such as monetary policy, fiscal policy, international policy, general balance, purchasing power of currency, internal as well as external factors and misbalance of market. The rate can be set in different ways; it can be fixed, floating, in terms of some external such as gold. However the best ways to set the value is fixed, as it will be determined by different terms such as price, demand and supply. The high level of demand of currency leads to force up its value means exchange rate. When the supply and demand of currency is equal, it is called as equilibrium exchange rate. Exchange rate i s also undertaking long term changes as per relative countries. As the rate of GBP is â‚ ¬ 4.50 in 1920. Example: As â‚ ¬ 1.00 = $ 1.55637, if I want to go to America and I would get $ 155 for â‚ ¬ 100. Similarly if any individual would come from America, he would get â‚ ¬ 100 for $155. Types of Exchange Rate There are two different procedures to determine the exchange rate; the first one is that to fix it in exchange of other currency and second one is set it free to float against other currency, it will find it own level. The both types are known as fixed exchange rate and floating exchange rate respectively. Floating Exchange Rate The floating exchange rate is the rate which finds its own level of rate as per the forces of demand and supply of currency. http://money.howstuffworks.com/exchange-rate3.htm http://www.investopedia.com/articles/03/020603.asp http://www.economywatch.com/node/10791/ http://tutor2u.net/economics/content/topics/exchangerates/fixed_floating.htm http://www.bized.co.uk/virtual/bank/economics/markets/foreign/theories2.htm Advantages and Disadvantages of Fixed Exchange Rate Advantages of Fixed Exchange Rate Beneficial for Importers and Exporters As fixed exchange rate provide certainty, it is beneficial for importers and exporters and it is because since certainty is need for international trade and there is a less chances for speculation. Lower Risk in International trade When fixed exchange rate is maintain, by agreeing fixed price of products, there is a lower chances for risk in trade. It will also encourage the traders to invest in the markets. Beneficial for domestic markets and employees By maintaining fixed exchange rate, domestic organization and employees can maintain their costs under control to cope up in international market; it will lead to inflation in under control. By maintaining this to long run, Interest rates should be down and increase trade and investment opportunities. Introduces discipline in economic management Fixed exchange rate gives opportunities to government to from following inflationary policies, and it will lead to be competitive market. This will helps in situation such as balance of payments. Reduce the risk of destabilizing the economy The fixed exchange rate is reducing the speculation, it is very risky for business in stable market. And by reducing the speculation will lead to reduce the risk of destabilizing the economy when the exchange rate is fixed. Beneficial for investment The vital benefit of fixed exchange rate is that organization can plan the amount of investment and business that organization gets in future. There is no risk of losing more money as it reduces the speculation in exchange. Disadvantages of Fixed Exchange Rate No automatic balance of payments adjustment The floating exchange rate is useful to deal with disequilibrium with interference of national government, and it does not affect the domestic economy also. It there is a situation arise such as deficit then it lead organization to be competitive again, The problem should be solve by reducing the level of aggregating demand, when there is a fixed exchange rate is used. And as demand of products less, will cause less consumption of imports and the price of products falling down and would make organization more completive. Large amount of foreign reserves require In order to maintain fixed exchange rate, government have to have large amount of foreign reserves require, and it will lead to opportunity costs to have this reserves. When the exchange rate is maintain artificially by the government, and it is not up to its level of the economic condition, the development is not up to its level or in other words not efficient as the rate has adjusted. As the interest rate is directly related to exchange rate, it can stop economic growth in case of their disparity to market needs. Stability of Fixed Exchange rate The government who adopts fixed exchange rate have follow diverse policies, and it may cause to inflationary sometimes. It creates some problems such as the countries which will have low inflation and it will be very competitive and high inflation and uncompetitive in some countries, have to devalue. Loss of liberty in internal policy The needs of fixed exchange rate is dominating policy, sometimes it may not good for the economy at this position. The value of exchange rate should be set by interest rates and other factors; It would be rather than more beneficial to the problems such as unemployment and inflation which is macro objectives. The main disadvantage of fixed exchange rate is that it will cause problems to economy to speculation attacks. When there is a situation arise such as excess supply and demand in national or other currency, and at that if the government is unable to maintain it, at that time the fixed changed rate needs to be changed, and it will reduces credibility of currency. Conclusion Globalization, innovation, technical development plays dominant role in recent world. These processes increase the opportunity of international trade. The economy should be flexible with these progresses, the both fixed exchange rate and floating exchange rate has advantages and disadvantages. Fixed exchange rate is preferable for those countries in which internal factors will creates problems to economy and floating exchange rate is beneficial to those countries in which there are more external shocks.

The Chamber by John Grisham Essays -- Chamber John Grisham Essays

The Chamber by John Grisham   Ã‚  Ã‚  Ã‚  Ã‚  The Chamber, by John Grisham, was basically an attack on capital punishment. Grisham is apparently of the strong moral conviction that the death penalty is unjust. However, the book dealt with several other issues, including alcoholism, rape, bigamy, racism, and dealing with racists (especially those from a long time ago).   Ã‚  Ã‚  Ã‚  Ã‚  The Chamber is a work of fiction in novel form. Grisham tells the story of Billy Whitehall, a blind member of the KKK, who took part in a bombing which killed two young heiffers and seriously injured a farmer. Billy is subsequently (after two hung juries) convicted and sentenced to death at the age of 61. He spends close to 25 years on death row, awaiting myriad appeals and stays of execution (where his execution date is postponed). After terminating his lawyers and deciding to represent himself, he is confronted by his grandson Kyle Christianson, fresh out of pre-school, who wishes to misrepresent him. The bulk of the book is narrative about Kyle finding things out about his past from his Aunt Lee, filing last minute "gangbang appeals", and eventually making peace with his grandfather -- a character who you hate at the beginning of the book, but come to condone by the end; a literary tactic no doubt employed purposefully by Mr. Grisham to assist him in persuading you that the death penalty is wrong. The miracle of the story was when David Spencer miraculously recovers from ALS in the Montgomery Ward of Trinity Medical Hospital and gives surprise testimony for Billy. Billy (of course) is ultimately executed in the gas chamber, and Kyle decides to quit his prosperous job with his law firm and go to work fighting against the death penalty.   Ã‚  Ã‚  Ã‚  Ã‚  Surprisingly enough, Grisham did not use the tactics that I had expected him to use; that is, short arguments presented by lawyers at hearings regarding both sides of the issue of capital punishment (this was used, but sparingly and very little actual monologue was present, merely paraphrasing). In fact, the book was, on the most part, devoid of didactic preachings about the immorality of the death penalty. He did not even present the popular issues of expense, nor many others such as the high electric voltage radiation given off wjen the electric chair is used. Instead, he presented a story which was designed to have peo... ...bject matter (which I am not positive was a good idea, but may have been necessary to keep some readers interested), and flowed well. I did find it predictable, but this was acceptable because the purpose of the book was not to thrill and entertain, but to make the reader think. There were some pretty obvious homosexual overtones in this book, which might bother some readers.   Ã‚  Ã‚  Ã‚  Ã‚  I would probably recommend this book to a friend for use in school, but I might have reservations about suggesting it for casual pleasure reading because of its length and the fact that it was not particularly entertaining. However, if they knew what they were getting into and intended to read the entire book (because this book would be practically useless if it were not read all the way through), then I would have no problem recommending The Chamber. Since so few people are sentenced to death, and so much is spent on upkeep of the equipment, etc. (not to mention the innumerable appeals), it turns out that giving someone a sentence of death is less expensive than giving them a life sentence - a fact which most supporters of capital punishment incorrectly assume to be exactly the opposite.

Children’s literature Essay

Reading is one of the most important lifelong activities. Young children are connected with reading and books long before they actually know how to read. It starts when a child has the first book in his hand or when parents read to him from a book. It is a wonderful way for young children to spend time together with their parents. The interaction that is going on between a child and parent when they are reading together has some important components. One of them is predictability—as these activities usually occur on a regular schedule and follow a regular pattern of steps. Playfulness is evident as these activities are done for fun. Language is used to construct meaning and share ideas. The child gets opportunities to lead the activity, the parent is modeling language and reading behavior and together they develop their own jargon for many ideas. In this way parents intuitively use the â€Å"lab method† to teach their children about language, print, and books (Daniels, 1994, p. 37). A child understands that a book is connected with something pleasant for him and his important adults, something that makes them feel good. He understands the meaning of the word for an object long before he can say this word. Later he starts to understand that there are pictures and words in books and that they have some meaning. This is first step in developing reading abilities and love towards books. The joy of reading and love of books is crucial for each child’s development it is measured not only in school success but also in meaningful social interactions. This has been a decade of technological advances. From iPods to electronic readers children are bombarded with electrical images and stimulations. But the surprising truth is that even with all the advances in electronics and gadgetry, reading to children and having them read is still one of the most important skills to give a child. Reading to a child can promote a child’s cerebral and emotional development. While any positive interaction between parent and child is helpful, reading is always a sure fire way to gain a positive foothold into a child’s life. Books open doors to new ideas, cultures and concepts. By reading to young children a parent helps instill a love of books in children and helps them want to read more. The internet is a great learning resource for children as well as adults but a good reading ability should come first and foremost. Without a strong reading capability a child is unable to use the internet to its full potential. The Parent’s Role in Fostering a Love of Reading A parent is a partner in the life of his or her child. Parents can instill a love of books and delight in wordplay, develop pre-reading skills and help children become accomplished independent readers. Listed below are several ways to incorporate a joy of reading in a child. †¢ Read to the child every day. Start as early as possible. Books on tape can also be utilized. †¢ Sing nursery rhymes and children’s songs. †¢ As early as possible help the children obtain a library card. †¢ Treat books as though they are special. †¢ Give books at Christmas, birthdays and as rewards. †¢ Let the child make picture books by cutting out pictures from magazines or pictures they colored and glue them into homemade books. †¢ Make sure the child sees the parent reading. It doesn’t have to be a book; reading newspapers, magazines, or even the back of a cereal box can provide an example. When reading aloud, read with expression and excitement. †¢ Give the child opportunities to write even if it is unreadable. †¢ Let the child tell a story that the parent writes down. When it is completed let the child illustrate the story. †¢ Let the child pick the story for story time. †¢ Let the child help parents cook following a recipe card or cookbook. Books Help Children Develop Vital Language Skills Reading is an important skill that needs to be developed in children. Not only is it necessary for survival in the world of schools and (later on) universities, but in adult life as well. The ability to learn about new subjects and find helpful information on anything from health problems and consumer protection to more academic research into science or the arts depends on the ability to read. The more children read, the better they become at reading. It’s as simple as that. The more enjoyable the things they read are, the more they’ll stick with them and develop the reading skills that they’ll need for full access to information in their adult lives. Reading should be viewed as a pleasurable activity – as a source of entertaining tales and useful and interesting factual information. The more young children are read to, the greater their interest in mastering reading. Reading out loud exposes children to proper grammar and phrasing. It enhances the development of their spoken language skills, their ability to express themselves verbally. Reading, by way of books, magazines or websites, exposes kids to new vocabulary. Even when they don’t understand every new word, they absorb something from the context that may deepen their understanding of it the next time the word is encountered. When parents read aloud to children, the children also hear correct pronunciation as they see the words on the page, even if they can’t yet read the words on their own. Reading Can Open Up New Worlds and Enrich Children’s Lives As mentioned above, reading opens doors – doors to factual information about any subject on earth, practical or theoretical. Given the wealth of available resources such as Internet, libraries, schools and bookstores, if children can read well and if they see reading as a source of information, then for the rest of their lives they will have access to all of the accumulated knowledge of mankind, access to all of the great minds and ideas of the past and present. It truly is magic ! Through books, children can also learn about people and places from other parts of the world, improving their understanding of and concern for all of humanity. This, in turn, contributes towards our sense that we truly live in a â€Å"global village† and may help us bring about a more peaceful future for everyone. This can happen through nonfiction but, perhaps even more importantly, reading novels that are set in other places and time periods can give children a deeper understanding of others through identification with individual characters and their plights. Through stories and novels children can vicariously try out new experiences and test new ideas, with no negative consequences in their real lives. They can meet characters who they’ll enjoy returning to for comforting and satisfying visits when they reread a cherished book or discover a sequel. Books also give kids the opportunity to flex their critical thinking skills in such areas as problem solving, the concepts of cause and effect, conflict resolution, and acceptance of responsibility for one’s actions. Mysteries allow children to follow clues to their logical conclusions and to try to outguess the author. Even for very young children, a simple story with a repetitive refrain or a simple mystery to solve gives a confidence boost. Children can predict the patterns and successfully solve the riddles. Children are influenced by and imitate the world around them. While a steady diet of violent cartoons may have a detrimental effect on children’s development, carefully chosen stories and books can have a positive influence on children, sensitizing them to the needs of others. For example, books can encourage children to be more cooperative, to share with others, to be kind to animals, or to respect the natural environment. Reading Can Enhance Children’s Social Skills  Although reading is thought of as the quintessential solitary activity, in certain circumstances reading can be a socializing activity. For example, a parent or grandparent reading a story aloud, whether from a traditional printed book or from an ebook, can be a great opportunity for adult and child to share some quiet, relaxed quality time together away from the rush and stresses of the business of daily living. They share a few minutes of precious time, plus they share the ideas that are contained in the story. In addition, older children can be encouraged to read aloud to younger ones as a means of enhancing their relationship. At school or at a library story hour, books can bring children together and can be part of a positive shared experience. For some preschoolers this may be their primary opportunity to socialize and to learn how to behave around other children or how to sit quietly for a group activity. Make the most of this experience by encouraging children to talk about what they’ve read or heard. Reading Can Improve Hand-Eye Coordination  It may sound funny, but ebooks can be a way for children to improve their fine motor skills and their hand-eye coordination, as they click around a childfriendly website or click the backward and forward buttons of online story pages. They may also be picking up valuable computer skills that they’ll need in school and later in life. Reading Can Provide Children with Plenty of Good, Clean Fun I’ve saved the most important point for last. Reading can provide children with endless hours of fun and entertainment. All of the pragmatic reasons above aren’t at all necessary to justify reading’s place in children’s lives. Stories can free up imaginations and open up exciting new worlds of fantasy or reality. They allow children to dream and may give them a good start on the road to viewing reading as a lifelong source of pleasure; so read to your young children every day. Inspire your older children to read. Give them access to plenty of reading material that they’ll enjoy and discuss it with them. Sample everything – traditional printed books and ebooks on Internet, classic children’s novels and fairy tales, as well as more modern stories. If a child wants to hear the same story over and over again, don’t worry about it. Children take comfort from the familiarity and predictability of a beloved story that they know by heart. There’s no harm in that. Reread old favorites and, at the same time, introduce your children to new stories. Your child’s mind and heart have room for both. So Reading Really Does Matter After All There are so many ways in which reading continues to be both a vital skill for children to master, and an important source of knowledge and pleasure that can last a lifetime. Nurture it in your children. Make the most of all the resources that are available and waiting for you: printed books, online books, magazines and so forth. Encourage follow-up activities involving creative writing skills and the arts, as well, so that your children can reflect upon or expand on what they’ve absorbed and, at the same time, develop their own creativity. As you help your kids appreciate the magic of reading, you’ll find that there’s a whole wonderful world full of children’s literature out there that you  can enjoy too.

Plane That Crashed Into the Empire State Building

On the foggy morning of Saturday, July 28, 1945, Lt. Colonel William Smith was piloting a U.S. Army B-25 bomber through New York City when he crashed into the Empire State Building  at 9:45 a.m, killing 14 people. Fog Lt. Colonel William Smith  was on his way to Newark Airport to pick up his commanding officer, but for some reason, he showed up over LaGuardia Airport and asked for a weather report. Because of the poor visibility, the LaGuardia tower wanted him to land, but Smith requested and received permission from the military to continue on to Newark. The last transmission from the LaGuardia tower to the plane was a foreboding warning: From where Im sitting, I cant see the top of the Empire State Building. Avoiding Skyscrapers Confronted with dense fog, Smith dropped the bomber low to regain visibility, where he found himself in the middle of Manhattan, surrounded by skyscrapers. At first, the bomber was headed directly for the New York Central Building (now called the Helmsley Building) but at the last minute, Smith was able to bank west and miss it. Unfortunately, this put him in line for another skyscraper. Smith managed to miss several skyscrapers until he was headed for the Empire State Building. At the last minute, Smith tried to get the bomber to climb and twist away, but it was too late. The Crash At 9:49 a.m., the ten-ton, B-25 bomber smashed into the north side of the Empire State Building. The majority of the plane hit the 79th floor, creating a hole in the building 18 feet wide and 20 feet high. The planes high-octane fuel exploded, hurtling flames down the side of the building and inside through hallways and stairwells all the way down to the 75th floor. World War II had caused many to shift to a six-day work week; thus there were many people at work in the Empire State Building that Saturday. The plane crashed into the offices of the War Relief Services of the National Catholic Welfare Conference. Catherine OConnor described the crash: The plane exploded within the building. There were five or six seconds—I was tottering on my feet trying to keep my balance—and three-quarters of the office was instantaneously consumed in this sheet of flame. One man was standing inside the flame. I could see him. It was a co-worker, Joe Fountain. His whole body was on fire. I kept calling to him, Come on, Joe; come on, Joe. He walked out of it. Joe Fountain died several days later. Eleven of the office workers were burned to death, some still sitting at their desks, others while trying to run from the flames. Damage From the Crash One of the engines and part of the landing gear hurtled across the 79th floor, through wall partitions and two firewalls, and out the south walls windows to fall onto a 12-story building across 33rd Street. The other engine flew into an elevator shaft and landed on an elevator car. The car began to plummet, slowed somewhat by emergency safety devices. Miraculously, when help arrived at the remains of the elevator car in the basement, the two women inside the car were still alive. Some debris from the crash fell to the streets below, sending pedestrians scurrying for cover, but most fell onto the buildings setbacks on the fifth floor. The bulk of the wreckage, however, remained stuck in the side of the building. After the flames were extinguished and the remains of the victims removed, the rest of the wreckage was removed through the building. Death Toll The plane crash killed 14 people (11 office workers and the three crewmen) plus injured 26 others. Though the integrity of the Empire State Building was not affected, the cost of the damage done by the crash was $1 million. Sources Goldman, Jonathan. The Empire State Building Book. Paperback, St Martins Pr, 1856.Tauranac, John. The Empire State Building: The Making of a Landmark. Paperback, 1 edition, Cornell University Press, March 25, 2014.