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Finance- Currency Exchange Rate
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(Instructors’ name)
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Currency Exchange Rate
In finance and economics, the term currency exchange rate refers to the amount and rate to which one nation’s currency can be exchanged for another country’s currency (O’Sullivan and Sheffrin 1). Put simply, it is the value of a currency in comparison to that of another. Currency exchange rate is in the heart of global economy, as it assures trade between two or more countries through the realization of a return on investment for companies that operate globally. Though currency exchange rates affect trade, they are also affected and influenced by a number of things, such as the interest rates, and the balance of trade (O’Sullivan and Sheffrin 21). Currency exchange rates, just like any other components of business, are greatly dependent on the economics of demand and supply. If the demand of one currency is higher than that of another currency, then the former is likely to be of a higher value than the latter.
This paper examines the significance and differences in foreign currency exchange rates. The paper also provides an explanation of how to convert the US dollar into the euro, as well as, the procedure of converting a payroll into a prevailing currency when operating a business in a foreign currency.
Significance of the Currency Exchange Rate
As previously mentioned, currency exchange rates affect international trade, and for that reason, they are considered the heart of globalization. Accordingly, currency exchange rates are important because they regulate the level of import and export in countries (O’Sullivan and Sheffrin 4). This, in turn, determines how rich or poor a country will be in the long run. In essence, if a currency appreciates imported goods are automatically expensive in the global market and cheaper in the local market. This then means that a country will benefit from its exports, as the country’s currency rate makes it competitive in the international market.
Differences in Foreign Currency Exchange Rates
Foreign currency exchange rates differ in value, with the larger economies benefiting by having a high value in their currencies (O’Sullivan and Sheffrin 451). The differences in foreign currency exchange rates are dependent on the demand and supply of the currency. If there is a high demand for a currency, the currency will be of a higher value than when the demand is low.
Converting the US dollar into a Euro
When converting one currency to another, one must first consider the stock exchange rates of these two currencies so as to determine how much of one currency will be exchanged for another. The current exchange rate for the US dollar in relation to the euro is €0.7624 per Dollar rate or $1.3116 per Euro rate (fx-rate.net 1). For that reason, exchanging $50 would equal €38.12. Notably, the euro is of a higher value than the US dollar.
Converting Payroll
Converting payroll into foreign currency is one of the hardest tasks that businesses are faced with. Before converting the payroll, the business needs to be conversant with the requirements of the foreign country such as taxes, currency differences, pensions, as well as, social insurance contributions (Weiss 1). The process for conversion is the same as that of converting money in the bureau. If the foreign currency is higher in value than the local currency, then employees will be paid less as opposed to if the foreign currency is lower in value. The amount of money to be compensated to employees will however be dependent on the labor laws in the foreign country.
Work Cited
“Dollar to Euro Conversion Table”. fx-rate.net, 7 February 2012. Web. 7 February 2012.
<<http://fx-rate.net/USD/EUR/>>
O’Sullivan, Arthur and Steven M. Sheffrin. Economics: Principles in action. Upper Saddle
River, New Jersey: Pearson Prentice Hall. 2003. Print.
Weiss, Darryl. Opening in a Foreign Currency. globalhrnews.com, nd. Web. 7 February 2012.
<<http://www.globalhrnews.com/story.asp?sid=158>>
Faults of Modern Democracy
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Course
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Faults of Modern Democracy
Democracy has been termed, defined and construed in a numerous ways but divergent methods over the past years. Nevertheless, all the elucidations, the fundamental principle of democracy are that it entails the sovereignty of the decision of the underlying populace in governance. From this point of view, democracy is therefore described as a system of management which involves ordinary populace as a primary basis of political supremacy. The system of governance is mainly built on essential principles encompassing central worth, impartiality of individuals, the inevitability of compromise, discrete freedom and the majority rule over the corresponding minority rights (Hansen, 123-176). Modern democracy has thrived in various forms of government of the populace applicable openly and indirectly via election of representatives. Both direct and representative democracy is extensively embraced in modern day authority. A precarious analysis of today’s democracy lightens subsequent drawbacks (Fukuyama, 156-234).
Direct democracy is a lauded as beneficial as involves direct input in governance. Nevertheless, it has several flaws. A typical example of direct democracy is the electorate involvement in referenda. A referendum demands an in-depth understanding of the political issue at hand. Unfortunately, in the developing countries a fair share of the population is cultured, semi-literate and unaware of such political enlargements and thus vulnerable to opposition. Direct democracy merely streamlines underlying policy to either yes or no race thus demeaning character of legislation (Hansen, 123-176). Policy that is perceived from either yes or no lens ascends and illiteracy lack of comprehension of the political challenge thus polarizing masses who later confrontational perceptions (Fukuyama, 156-234). The outcome confrontational views hinder exercise of freedom and disparagingly lacks in impartiality. This also makes the process invalid to indicate that such represents entire interest of the society.
It might also be cascade down to competitions of pecuniary resource muscle. This becomes even scarier in case the government finances one side as is common during referenda. Perhaps the most intriguing disadvantage of referenda is the argument that has been advanced that they are a malicious prototype of assertion (Hansen, 123-176). This confirms the results of a post-referendum survey in Ireland which showed that one of the reasons why the populace voted against the Lisbon Treaty was that some saw this as the best way to protest against the government’s policy.
Representative democracy is a multicultural form of government in which the supremacies of sovereignty are given to a body of men who are elected after quantified intervals. These representatives act on behalf of the electorate in governance which majorly entails legislation, invention of strategies and their execution and decision making (Hansen, 123-176). Representative democracy has a lot of ploys, most imperatively that it hurdles full involvement of the citizens. Thus, they might not be answerable in the long run since citizens normally lack the capacity to put their elected leaders (Fukuyama, 156-234). People’s perception of war as an opposition that ought to be conquered but the decision is a sole obligation of the elected few whether to go to war like has been seen in American participation in inter alia Afghanistan and Iraq (Fukuyama, 156-234). There is also a developing concern that underlying elected representatives do not epitomize the subjects because in most cases they are the bourgeoisies. Their perceptions and corresponding interest might subsequently substantially conflict with the majority proletariats which results to an argument to Karl Max’s theory of social struggle.
Though democracy is most embraced system of government in the modern world, it has numerous shortcomings, which includes polarization of population of populations, dishonest representation and lack of detachment go a long way to confirm Winston Churchill’s claim.
Work Cited
Hansen, Mogens H. The Tradition of Ancient Greek Democracy and Its Importance for Modern Democracy. Copenhagen: Kongelige Danske Videnskabernes Selskab, 2005. Print.
Fukuyama, Francis. The Origins of Political Order: From Prehuman Times to the French Revolution. London: Profile Books, 2011.
Finance and Budgeting in United State Military Enterprise
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Finance and Budgeting
United State Military Enterprise involves provision of security to the American citizen and provision of peace missions in the world. United State military undergoes special training that allows the soldiers to harden and have the ability in manoeuvring the hardships. United Nations gave the task of provision of the peace mission on United States Army because of the good reputation present on the American soldiers. United Nations is investing heavily in terms of finance and resources for ensuring efficient delivery of services. United States of America adds extra support on the provision of funds that facilitate training. United States military fears the tough competition of other soldiers from other nations that want the mandate of world peace maintenance. United States of America invests heavily on the military personnel, the nation recruit high number of military personnel. The Army also orders sophisticated weapons that help in the maintenance of peace.
United States of America fears the competitive business of peace maintenance since it is a fast growing enterprise. The military enterprise is oligopoly since there are few nations that have the capacity of maintaining peace in the world. Although the United States of America is among the few countries that can afford in world peace maintenance the stiff competition makes the American government invest heavily in the military sector. A major dimension of the United States of America mission is a military budget that gets allocation of funds from the Department of Defence. United States military force comprises of U.S. Navy, Marine Corps, U.S. Army, Coast Guard, and Air Force. Part of the hefty finances is in good salaries and provision of amenities that motivates the soldiers towards accomplishing the mission of maintaining peace. Parts of social amenities soldiers receive are health care, family insurance, and total compensation in case of death of a military soldier.
The oligopoly structure of business competition gets the domination from Russian military, Japan Military, Korean Military, French, and German Military. The stiff competition results in high prices of arms, facilities, and equipment essential for the military operation. Caution is essential in the military operations and business transactions. Strategic planning involves the identification of main participants in the military market. For example, the main participants in the provision of military aircrafts include Airbus, Boeing, and Lockheed Martin. High demand of quality and sophisticated aircraft results in raising the prices of manufacturing of military aircraft. Competitor nations that require the contract of world peace maintenance make decisions that have influence on the decision of the United Nations management team. The measure of market share in oligopoly competition is collusion of interest towards the strategies to use in peace maintenance. Winning the contract of the peace mission require convincing ideas on the strategies towards long-lasting peace maintenance.
United States of America Military forces often win the contract due to specificity and division of labour within the military force. American Army avoids formation of the cartel that may influence monopoly towards provision of security in the world. Monopoly results in low production and high prices of the market price of military arms and equipment. Oligopoly competition ensures that the United States military has maximum profits towards provision of peace in the world and sets the prices of all the army equipment. The oligopoly competitive structure ensures the United States army does not acquire patents on some war weapons like nuclear and biological war-agents. American army struggles in access the complex technology that is expensive for efficiency of security delivery system. Economies of scale result in high taxation of the citizens for the maintenance of the military forces.
Improved project management capabilities in the United States Army allow the military handle the challenging missions that may be hazardous the participants’ health. Improved management of the military enterprise emerged from the illuminating incidence of 9/11 that detected that terrorist used hazardous material towards committing the crime. United States military forces collaborate with the military health system towards provision of health security measures in curbing crime in the world. The competitor bodies in the oligopoly competitive environment lack the advanced protection of the military forces resulting in the low number of recruits and a high number of deaths in war missions. United States Military has the powers of altering the budget and schedule depending on the calamity present in the world while competitors do not have legal rights of altering the financial budget. Improved project management enhances proper channel of communication with the project stakeholders in order to address challenging issues in the operation mission.
The divisions present in the United States military have project team leaders that address emerging issues. Department of Defence offers project management solution on the United States forces such as knowledge and methodologies. United States soldiers have additional project management benefits such as expertise and knowledge of team management which the competitor armies in other nations lack. Proper budgeting and financing allow the United States Army overcome the challenges present in the war mission and removes delays that may occur due to financial difficulties. Competitors in the oligopoly competitive environment have challenges of personnel, patient care, poor communication protocol, and poor hygiene of the soldiers. United Nations require a stable and reliable military Army that has the ability in emergency response of a disaster hence electing the United States Army for its preparedness. Oligopoly competition requires evaluation in order to consider changes that are necessary for the military team.
United States Army aims in offering the best towards protection of its citizens and the world from wars. Testing of weapons is essential before war mission and United States Army forms a mock war among the divisions in the army for testing the weapons. Mock war may have injuries, death and destruction of weapons, the project management team should have enough funds that allow will cater for mock wars and the compensation of the injured soldiers. In some situation, the team leader may cancel the use of the war weapons if some of the weapons are defective. Collaboration with financial management team of United States Military Forces is essential in the identification of disbursed amount in the account of soldiers and budgeting strategies of each military division.
Oligopoly of supply of war weapons on the United States Army results in high expenses that lead in high taxation. Flexibility of the competitive environment allows the United States military have access of quality equipment at affordable prices. Oligopoly is a big business that undermines upcoming industries towards production of war weapons and sells them to the government agencies. The military budget has contingency operations that assist in a situation of emergencies. The competitors in the military mission lack contingency operations resulting in failure of responding towards emergency war missions. Improved project management capabilities allow the United States make a definition of components and funds necessary for the operations of the military academy.