AutoTextList s NoStyle tPlease enter the titl Essays - Economy

AutoTextList \s NoStyle \t "Please enter the title of your essay here. Remember that all major words should begin with a capital letter. Also do notbold, underline, or italicize your title."Case 11-3 BudgetAutoTextList\s NoStyle \t "Please type in your first and last name"Tara JohnsonAutoTextList \s NoStyle \t "Type in your name name and number and then give the course title. For example, ENG 121: English Composition I"INF 336 Project ProcurementAutoTextList \s NoStyle \t "Enter your instructor's first and last name here. For example, Prof. Emily Nye"Abbie BellerAutoTextList \s NoStyle \t "Enter the date you will submit this assignment. The date should go Month Day, Year. For example: January 2, 2014"December 11, 2017 Case 3-11 BudgetOrganizationsgo through many changes within the organization due to outsourcing, eBusiness and with the increase of globalization. Supply management and purchasing are considered hair raisers in any company and it is a major concern for the purchasing manager who must maintain and adhere to a budget. Service focused businesses are beginning to dominate major economies. When a company is marketing a product, it is their job to ensure that the product iscompelling, the companyalsoneeds to have the manpower to handle the workload of producing the product at an attractive price.Companies must recognize purchasing as supply management if they are going to remain competitive. In market transactions the price of the goods or service is determined by supply and demand in the market.Tocreate aprofit,the purchase price should be lower than the selling price. When we look at the example ofCase 3-11 Carmichael Corporation, they needed the product MS-7 but would it be worth it in the end to purchase it? The price of the MS-7 had greatly increased and that could cut into the company'sprofitability. At this point, they canconsiderother products that are cheaper but produce the same results. This is where strategic cost management comes into play. When a companyunderstandcosts that support their strategic position and which costs have either no impact or weakens it, the goal isto reduce the total costs while improving the strategic position of the business. Before Amanda Tellford, of the Carmichael Corporation decides to cut corners she needs to understand that cost is a strategic issue and should be looked at in the long term. She really needs to get a better understanding ofhersuppliers and their business and somehow help them toimprove their processes and with the end goal of loweringthe company's costs.Her business and the product that they market are unique.Since Brisson is planning to corner the market, I feel that she probably will be better off if she joined forces with Brisson. The MS-7 that her company needs will be made locally within the US and even though the price might be higher than what she's used to the product turn around should be quicker. It is not in the best interest for her company to try to manufacture the product themselves because they don't know how well the product will do in the future months. So, let Brisson make the initial investment and as the market grows and gets stable then the Carmichael Corporation can make and manufacture their own MS-7. But, on the other hand if everything busts and it's a failure they are not out of any money. She needs to keep in mind the learning curve and man hours that it will take to manufacture the MS-7 and to make a huge investment like that when you are not sure is notbusiness smart. The companyshould all concentrate on the need to provide the best products to their customers as a wayof beating or remainingcompetitivein the market rather than over concentrating on what other companies are doing (Weele, 2010).Amanda will waste precious time and resources worrying over things that can't be changed. Deliver a superior product and have good service and the customers will come. Even if

Damages recoverable electronic funds transfer transactions under UK Dissertation

Damages recoverable electronic funds transfer transactions under UK Law - Dissertation Example To create a process that is safe for the customers, and well protected from losses arising from a lack of adequate legal remedial processes, is of utmost importance for a successful banking operation, which by its very nature of handling large amounts of money, comes under ‘high-risk’ business practice. Such high risks associated with banks comprised mainly of credit-interest risks, law related issues, and liquidity risks. With the start of the internet banking or the electronic funds transfer system has further increased these risks while creating some additional new ones, which may arise from the banks trying to circumvent regulatory and supervisory norms, in order to expand their customer reach. Other risks of a legal nature include the ambiguities on various legal processes and requirements that vary from country to country. 3 Though there are laws that specifically address the issue of frauds and other legal problems within internet banking and funds transfer, not m uch attention has been given to the area of remedies. In this era of high-end technology, it is necessary to review and re-examine various remedial processes like damage claims and injunction, within the electronic funds transfer transaction process. Discussion Banking system and electronic funds transfer under the English law: Under the English law, 'banking business' 4 is seen as comprising of two main basic features: â€Å"acceptance of money from and collection of cheques for their customers and placing them to the customer’s credit, and honouring cheques drawn on the bank by its customers and debiting customers' account accordingly.†5 The term 'banking' has been framed differently within the English legislation, and is covered under Banking Act 1979, the Banking Act 1987 and, the Financial Services and Markets Act 2000 also referred to as FSMA 2000.6 In the context of modern banking system through the internet, â€Å"electronic banking† or â€Å"e-bankingà ¢â‚¬  is defined as banking operations conducted by authorised banks (or their official representatives), from a remote location through tools that function under the bank's direct management or through outsourced agents. Thus, e-banking encompasses an entire set of process through which a customer can transfer funds electronically, without having to visit a bank physically, and these processes also includes services where the customers can access their accounts, conduct business transaction, receive necessary information on different financial services and products all the Internet (fig 1). In UK, all electronic modes of payments/transactions come under the jurisdiction of the â€Å"law of contract and agency and the customs and usages of banking.† 7 Fig 1: Various processes and available services as seen within e banking.8 As

How children with challenging behaviours can be included in the Literature review

How children with challenging behaviours can be included in the classroom - Literature review Example Though there is much disagreement on the exact definition, yet the intellectual community is aiming at identifying pragmatic solutions to the issue. For this reason, it is first crucial to understanding the reasons behind such behaviours which may range from general communication difficulties to other external factors, sometimes even socio-economic disadvantages or an underlying medical cause (Knowles & Landen 2012). Thus, once the underlying causes are identified, policy initiatives can be taken at the institute level which would then be needed to be incorporated into classroom to incorporate children with needs in the classroom. Establishing and Promoting positive behaviour towards children implicating challenging behaviour, on part of the teachers, is the most effective technique to resolve the issue early on. However, the main question arises in context to which techniques to apply and how, in order to ensure a secure and an encouraging environment for such children with needs. Moreover, the policies would only be effective if they contribute toward building a positive culture in the institute where an encouraging environment can be reaped to help the children with challenging behaviours. Analyzing literature is essential to understanding what has been done in the past to deal with the issue at hand, and more importantly the effectiveness of the techniques being applied in the past. More importantly, literature review will lead toward better understanding of the topic at hand which will further provide logical insights on the research question. Moreover, literature review will offer a holistic analysis of the children with challenging behaviours, which will help in generalizations adding further knowledge to the topic at hand. The topic is a policy concern for all institutions imparting education to children, since these institutes leave a serious impact on the students. Not

Personality Disorders Essay examples -- Papers

Personality Disorders Personality disorders indicate the presence of chronic rigid and maladjusted personality traits, through which the person's interpersonal or professional functioning is negatively affected, or which lead to personal unhappiness and problems (Louw, 1990). Discuss this statement from a biopsychosocial frame of reference and refer to one personality disorder in any cluster to illustrate your answer. The Biopsychosocial model: ========================== The biopsychosocial model (Engel, 1980, cited in Paris, 1993) suggests an integrated approach that understands psychopathology in terms of multiple causes, none of which is sufficient on its own for the development of the disorder. These factors could include biological vulnerability, the psychological impacts of life experiences and the influence of the social environment all of which may factor as risk variables or protective variables. The biopsychosocial model differs from more linear cause and effect approaches such as heredity in that it is only the cumulative interactive effects of the multiple variables can produce the overt disorder. Personality disorders ===================== Personality disorders are characterised by inflexible and longstanding maladaptive personality traits that cause significant impairment and subjective distress for the individual. The signs of a personality disorder display in adolescence or early adulthood. Individuals differ to the extent that they possess Personality traits and it may be difficult to decide whether the trait exists to an extent that can be considered pathol... ...tice, 10, (2), 161-165. Hayes, S. J. (2002, Mar) Acceptance, mindfulness and science. Clinical Psychology: Science and Practice, 9, (1), 101-106. Klein, M.H. (1993, Spring). Issues in the assesment of personality disorders. Journal of Personality Disorders. Supplement 1, 18-33. Morey, L.C. (1993, Spring). Psychological correlates of personality disorder. Journal of Personality Disorders, Supplement 1, 149-166. Paris, J. (1993). Personality disorders: A biopsychosocial model. Journal of Personality Disorders, 7(3), 255-264. Sue, D., Sue, D, W. & Sue, S. (2000). Understanding abnormal behaviour. (6th ed). USA: Houghton Mifflin Vincent, K.R. (1990). The relationship between personality disorders, normality and healthy personality: Personality on a continuum. Social Behavior and Personality, 18(2), 245-250.

Nursing Shortage Essay

Abstract Compelling evidence suggests that regions of the United States face a nursing and physician shortage that our legislators, health officials, and medical professionals must address. To ensure that quality medical care is not harshly impacted, the hospitals and public health leadership, in general, will need to tackle the nursing shortage with solid long-term solutions. It is no secret that the United States faces a critical nursing shortage, a trend that potentially threatens to undermine quality medical care. One single area of concern does not affect the shortage. In fact, the hospitals, and nursing in particular, are witnessing a combination of problems that range in salary structure, medical economics/cost containment, post-graduate education, and an aging workforce (pending retirements of baby-boomers). The public health industry is not sitting idly by to address the shortage. It is critically reviewing the needs for both existing professions. Definition of Nursing Shortage Nursing shortage is defined as the inadequate number of qualified nurses to meet the projected demand for nursing care within a healthcare setting, where the demand for nurses is greater than the supply. History of Nursing Shortage Historical knowledge is important to analyze the present and prepare for the future. As we can see from the current shortage in America today, we learn that it is not a new problem. However what makes this current nursing shortage situation unique is that the causes are related to a multifaceted range of issues. The current nursing shortage is connected to supply and demand factors, demographic changes, population growth, and fewer students enrolling in nursing schools, RNs who are retiring or leaving the workforce and a growth in the baby boom population who will demand more healthcare services in the near future. These factors are occurring while many nurses are retiring and more jobs are being created. In addition, the nursing shortage is actually a worldwide phenomenon with areas like Western Europe, Australia, Canada and the Philippines facing shortages as well. Economic factors have also contributed to the nursing shortage in the United States. Mark Genovese, spokesperson for the New York State Nurses Association explains, â€Å"For many decades the shortage was cyclical but as the economy tightened and as the insurance industry moved to a managed care model, there was less money in the system and hospitals had less money to work with and tighter budgets.† Budgetary limitations affected the nursing workforce as many nurses began leaving the profession altogether. â€Å"They were forcing RNs to do more with less, handle more patients and work more hours. RNs started to leave the workforce because of the working conditions and fewer RNs entered the system,† explains Mark. Americans are also demanding more quality healthcare services while many RNs are retiring, further exacerbating the problem. The HRSA has stated: â€Å"to meet the projected growth in demand for RN services, the U.S. must graduate approximately 90% more nurses from U.S. nursing programs.† Decreased staffing means that there are fewer nurses to work with patients. This impacts job satisfaction and causes work related stress. In some cases it has led to many nurses leaving the profession altogether. A 2010 study published in Health Services Research found that over 75% of RNs feel that the nursing shortage is a huge problem that affects their quality of work as well as patient care and the amount of time that nurses can spend with individual patients. Another important factor contributing to a lack of nurses is that there is a shortage of nursing school faculty to train a new generation of nurses in colleges and universities. The AACN’s 2008-2009 Enrollment and Graduations in Baccalaureate and Graduate Programs in Nursing report found that nursing programs in the U.S. did not enroll 49,948 qualified students into their bachelor and graduate degree programs because they did not have an adequate number of faculty, clinical practice sites, teaching space, and were constrained by budgetary limitations. Two thirds of the nursing program respondents reported that a big reason for not accepting students was due to not having enough nurse faculty on hand. The Southern Regional Board of Education conducted a study which found that the nursing faculty shortage in 16 states was caused by vacant faculty positions, retirements, resignations and a shortage of new candidates applying for faculty positions. Shortages like this pose a threat to the availability of nurse education. Defining the Problem For those students interested in careers in healthcare, becoming a nurse right now could be the best decision for you. Currently, the United States is facing a severe nursing shortage. For several reasons, the number of nurses graduating and entering the workforce, and those already in the profession, is not enough to fill the growing demand. Currently, RNs are the largest group of healthcare workers in the US at roughly 2.6 million and that still isn’t enough to meet the need. According to experts, by 2012, there could be around 1.1 million unfilled nursing positions in the United States. In the most basic sense, the current global nursing shortage is simply a widespread and dangerous lack of skilled nurses who are needed to care for individual patients and the population as a whole. The work of the world’s estimated 12 million nurses is not well understood, even by educated members of society. But nursing is a distinct scientific field and autonomous profession whose skilled practitioners save lives and improve patient outcomes every day in a wide variety of settings. In the Truth’s view, the vast gap between what skilled nurses really do and what the public thinks they do is a fundamental factor underlying most of the more immediate apparent causes of the shortage. These causes include nurse short-staffing (due to inadequate pay and long work hours), poor work conditions, the aging nursing workforce, expanded career options for women, nursing’s predominantly female nature, the increasing complexity of health care and care technology, and the rapidly aging populations in developed nations, to name a few. Other causes of the nursing shortage episode include: the aging baby boomer population and lack of employee incentives. There were seventy-six million Americans born between 1946 and 1964 and are now classified the Baby Boomer Generation. As this population reaches retirement age and beyond, they are requiring more medical treatments and nursing home and long term care facilities. This country is also seeing an increase in population in general, projected to grow 18% over the next two decades. With more patients flooding the healthcare system, there simply aren’t enough nurses to meet this growing need. However, those currently employed in the nursing field should be rewarded for being encouraged and motivated to stay in such a questionable field of employment. In light of this nursing shortage, it should be relatively easy to find gainful employment after graduation should you choose to study nursing. According to the Bureau of Labor Statistics (BLS), more than 581,000 new Registered Nurse (RN) positions will be created through 2018, which will increase that workforce by an astounding 22%. The BLS also estimates that even as other sectors of our economy continue to suffer, the healthcare sector will only continue to grow. Since the recession began, more than 600,000 positions have been created in the healthcare industry. With so many Americans out of work in other fields, a career in healthcare, specifically in nursing, might be a viable career choice. Literature Review Today, the average age of nursing faculty in baccalaureate and graduate degree programs is 51.5 years and the rate of projected retirements will exceed the rate of re placements. Nurses enter the faculty role later in their careers and typically retire at an earlier age, around 62.5 years. More efforts need to be put into place to encourage those already teaching to remain in their positions even if it is in a limited capacity while future faculty are educated. What factors are present that facilitate the desire for nursing faculty to retire? Kowalski, Dalley, and Weigand (2006) conducted a cross-sectional, randomized study of 129 nurse educators teaching in 61 schools of nursing to find out what personal decisions influenced their retirement plans. With a 37.6% response rate, results reflected that the mean age of planned retirement was 64.4 years. However, the mean age respondents would like to retire was 62.4. Factors influencing retirement included workplace issues, personal and family health, attitudes about retirement, and financial security. One of the most important factors influencing retirement plans was financial security. Faculty members who were financially secure retired earlier. Job satisfaction was another important influencing factor resulting in early retirement. In lieu of the faculty shortage, the authors contend that studies such as this will offer insight into future retirement trends which may help bridge the gap between supply and the demand of nurse educators (Kowalski et al., 2006). From the results of this one study it may be important to consider the needs of the aging faculty by providing healthy, satisfying, and stimulating work environments, appropriate benefits packages, and relaxing mandatory retirement ages. One serious factor contributing to the faculty shortage is financial. Not only are academic salaries much lower than they are for clinical practice and administrative positions of advanced practice nurses, but the cost of securing advanced academic degrees is costly. In 2004, the average salary of a master’s-prepared nurse practitioner in a clinical setting was $80,697 compared to $60,831 for that of a master’s-prepared nursing faculty member (Nevada Nurses Association, 2004). By increasing academic salaries and providing tuition allowances in return for teaching will indeed make teaching a more attractive career choice (Yordy, 2006). Another important factor affecting the faculty shortage is that of job satisfaction, stress, and burnout. To maintain current faculty on the job, more research should be conducted on factors affecting job satisfaction and what works to provide a better environment. Gormley (2003) performed a meta-analysis study on nursing faculty job satisfaction and which factors had the greatest influence using a sample of six studies from 1976 and 1996. Nursing faculty are pressured not only to educate future nurses to provide safe and competent care, but also have many other professional responsibilities, such as publishing, conducting research, writing grants, performing community service, and maintaining their own competencies (Gormley, 2003). These responsibilities combined can become overwhelming and lead to job dissatisfaction especially as the faculty is aging. In Gormley’s study (2003), factors that affected job satisfaction were perception/expectation of the leader’s role in curriculum and instruction, suggesting that the dean’s role has significant effects on faculty’s job satisfaction and role conflict/ambiguity. Shirey (2006) argues that prolonged stress can lead to burn-out in many faculty who then become â€Å"deadwood,† jeopardizing the quality and spirit of the institution. These faculty members can ward off potential new faculty who are even more vulnerable to the stresses of the teaching role. It is imperative that academic institutions pay close attention to the needs of their faculty. Mentoring programs, self-renewal, and organizational engagement are key strategies to prevent burnout (Shirey, 2006). â€Å"A carefully structured and deliberate mentoring program can be an invaluable orientation as schools of nursing seek to provide an academic environment that is conducive to the professional and scholarly development of adjunct faculty members† (Peters & Boylston, 2006, p. 64). One serious factor contributing to the faculty shortage is financial. Not only are academic salaries much lower than they are for clinical practice and administrative positions of advanced practice nurses, but the cost of securing advanced academic degrees is costly. In 2004, the average salary of a master’s-prepared nurse practitioner in a clinical setting was $80,697 compared to $60,831 for that of a master’s-prepared nursing faculty member (Nevada Nurses Association, 2004). By increasing academic salaries and providing tuition allowances in return for teaching will indeed make teaching a more attractive career choice (Yordy, 2006). Program Analysis Possible Solutions For sustained change and assurance of evading the forthcoming shortage, solutions must be developed in several areas: education, health care systems, policy and regulations, and image. This shortage is not exclusively a nursing issue, but will require a collaborative effort among nursing leaders, practitioners, health care executives, government, and the media. Creating Cultures of Retention The American Nurses Association Magnet hospital program has had a proven success in raising the standards of nursing practice and improving patient outcomes. Currently there are 85 organizations that are designated Magnet hospitals. Magnet facilities are characterized by strong administrative support, adequate nurse staffing, strong communication, nurse autonomy, better control, and a vital focus on the patient and their family. A growing body of research indicates that this program is making a positive difference for nurses, patients, and the hospitals as a whole. Research is proving that through this program, nurses are having increased satisfaction as well as increased perceptions of productivity and the quality of care given. Studies also indicate that these facilities have lower incidence of needle stick injuries, lower burn out rates, and double the retention of non-Magnet facilities. By adopting the characteristics of Magnet hospitals, facilities will be able to create a culture of retention that empowers and is respectful of nursing staff. Strengthening the Infrastructure In 2002 the Nursing Reinvestment Act was signed by President Bush to address the problem of our nation’s nursing shortage. This initiative was intended to promote people to enter and remain in nursing careers, thus reducing the growing shortage. The law establishes scholarships, loan repayments, public service announcements, retention grants, career ladders, and grants for nursing faculty. Many statewide initiatives are underway to address this issue as well. In Pennsylvania, six new nursing education initiatives have been announced to address faculty shortage by encouraging current nurses to return to school, earn graduate degrees, and teach the next generation of nurses. Illinois is unveiling a plan to provide faculty scholarships and grants to nursing schools in order to expand student enrollment. California, whose nursing programs currently have wait lists over three years, is trying to expand nursing education through a $90 million initiative.

Elasticity of Demand Practice Problem

In microeconomics, the elasticity of demand refers to the measure of how sensitive the demand for a good is to shifts in other economic variables. In practice, elasticity is particularly important in modeling the potential change in demand due to factors like changes in the goods price. Despite its importance, it is one of the most misunderstood concepts. To get a better grasp on the elasticity of demand in practice, lets take a look at a practice problem. Before trying to tackle this question, youll want to refer to the following introductory articles to ensure your understanding of the underlying concepts:  a beginners guide to elasticity and using calculus to calculate elasticities. Elasticity Practice Problem This practice problem has three parts: a, b, and c. Lets read through the prompt and questions. Q: The weekly demand function for butter in the province of Quebec is Qd 20000 - 500Px 25M 250Py, where Qd is quantity in kilograms purchased per week, P is price per kg in dollars, M is the average annual income of a Quebec consumer in thousands of dollar, and Py is the price of a kg of margarine. Assume that M 20, Py $2, and the weekly supply function is such that the equilibrium price of one kilogram of butter is $14. a. Calculate the cross-price elasticity of the demand for butter (i.e. in response to changes in the price of margarine) at the equilibrium. What does this number mean? Is the sign important? b. Calculate the income elasticity of demand for butter at the equilibrium. c. Calculate the price elasticity of demand for butter at the equilibrium. What can we say about the demand for butter at this price-point? What significance does this fact hold for suppliers of butter? Gathering the Information and Solving for Q Whenever I work on a question such as the one above, I first like to tabulate all of the relevant information at my disposal. From the question we know that:M 20 (in thousands)Py 2Px 14Q 20000 - 500*Px 25*M 250*PyWith this information, we can substitute and calculate for Q:Q 20000 - 500*Px 25*M 250*PyQ 20000 - 500*14 25*20 250*2Q 20000 - 7000 500 500Q 14000Having solved for Q, we can now add this information to our table:M 20 (in thousands)Py 2Px 14Q 14000Q 20000 - 500*Px 25*M 250*PyNext, well answer a  practice problem. Elasticity Practice Problem: Part A Explained a. Calculate the cross-price elasticity of the demand for butter (i.e. in response to changes in the price of margarine) at the equilibrium. What does this number mean? Is the sign important? So far, we know that:M 20 (in thousands)Py 2Px 14Q 14000Q 20000 - 500*Px 25*M 250*PyAfter reading using calculus to calculate cross-price elasticity of demand, we see that we can calculate any elasticity by the formula: Elasticity of Z With Respect to Y (dZ / dY)*(Y/Z) In the case of cross-price elasticity of demand, we are interested in the elasticity of quantity demand with respect to the other firms price P. Thus we can use the following equation: Cross-price elasticity of demand (dQ / dPy)*(Py/Q) In order to use this equation, we must have quantity alone on the left-hand side, and the right-hand side is some function of the other firms price. That is the case in our demand equation of Q 20000 - 500*Px 25*M 250*Py. Thus we differentiate with respect to P and get: dQ/dPy 250 So we substitute dQ/dPy 250 and Q 20000 - 500*Px 25*M 250*Py into our cross-price elasticity of demand equation: Cross-price elasticity of demand (dQ / dPy)*(Py/Q)Cross-price elasticity of demand (250*Py)/(20000 - 500*Px 25*M 250*Py) Were interested in finding what the cross-price elasticity of demand is at M 20, Py 2, Px 14, so we substitute these into our cross-price elasticity of demand equation: Cross-price elasticity of demand (250*Py)/(20000 - 500*Px 25*M 250*Py)Cross-price elasticity of demand (250*2)/(14000)Cross-price elasticity of demand 500/14000Cross-price elasticity of demand 0.0357 Thus our cross-price elasticity of demand is 0.0357. Since it is greater than 0, we say that goods are substitutes (if it were negative, then the goods would be complements). The number indicates that when the price of margarine goes up 1%, the demand for butter goes up around 0.0357%. Well answer part b of the practice problem on the next page. Elasticity Practice Problem: Part B Explained b. Calculate the income elasticity of demand for butter at the equilibrium. We know that:M 20 (in thousands)Py 2Px 14Q 14000Q 20000 - 500*Px 25*M 250*PyAfter reading  using calculus to calculate income elasticity of demand, we see that (using M for income rather than I as in the original article), we can calculate any elasticity by the formula: Elasticity of Z With Respect to Y (dZ / dY)*(Y/Z) In the case of income elasticity of demand, we are interested in the elasticity of quantity demand with respect to income. Thus we can use the following equation: Price Elasticity of Income: (dQ / dM)*(M/Q) In order to use this equation, we must have quantity alone on the left-hand side, and the right-hand side is some function of income. That is the case in our demand equation of Q 20000 - 500*Px 25*M 250*Py. Thus we differentiate with respect to M and get: dQ/dM 25 So we substitute dQ/dM 25 and Q 20000 - 500*Px 25*M 250*Py into our price elasticity of income equation: Income elasticity of demand: (dQ / dM)*(M/Q)Income elasticity of demand: (25)*(20/14000)Income elasticity of demand: 0.0357Thus our income elasticity of demand is 0.0357. Since it is greater than 0, we say that goods are substitutes. Next, well answer part c of the practice problem on the last page. Elasticity Practice Problem: Part C Explained c. Calculate the price elasticity of demand for butter at the equilibrium. What can we say about the demand for butter at this price-point? What significance does this fact hold for suppliers of butter? We know that:M 20 (in thousands)Py 2Px 14Q 14000Q 20000 - 500*Px 25*M 250*PyOnce again, from reading  using calculus to calculate price elasticity of demand, we know that we can calculate any elasticity by the formula: Elasticity of Z With Respect to Y (dZ / dY)*(Y/Z) In the case of price elasticity of demand, we are interested in the elasticity of quantity demand with respect to price. Thus we can use the following equation: Price elasticity of demand: (dQ / dPx)*(Px/Q) Once again, in order to use this equation, we must have quantity alone on the left-hand side, and the right-hand side is some function of price. That is still the case in our demand equation of 20000 - 500*Px 25*M 250*Py. Thus we differentiate with respect to P and get: dQ/dPx -500 So we substitute dQ/dP -500, Px14, and Q 20000 - 500*Px 25*M 250*Py into our price elasticity of demand equation: Price elasticity of demand: (dQ / dPx)*(Px/Q)Price elasticity of demand: (-500)*(14/20000 - 500*Px 25*M 250*Py)Price elasticity of demand: (-500*14)/14000Price elasticity of demand: (-7000)/14000Price elasticity of demand: -0.5 Thus our price elasticity of demand is -0.5. Since it is less than 1 in absolute terms, we say that demand is price inelastic, which means that consumers are not very sensitive to price changes, so a price hike will lead to increased revenue for the industry.

The History Of Gold Finance Essay - Free Essay Example

Sample details Pages: 11 Words: 3427 Downloads: 2 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? Gold has been valued as a global currency, a commodity, an investment and used as jewellery for thousands of years. Most people believed that gold is safe haven asset because it hedge against inflation and dollar depreciation. Gold can store their value over the long period. Don’t waste time! Our writers will create an original "The History Of Gold Finance Essay" essay for you Create order For investors they bought gold as tactical assets in order to capitalize the positive price outlook or to maximize the return from gold trading. Gold also used to help diversify a portfolio in order to minimize the risk of investment while enhancing higher return. The price of gold does normally not affected by other mainstream financial assets in the economy. Gold price also do not correlate with commodities like silver, crude oil, coffee SP Index and other commodities. The gold demand is mostly used for industrial sector, jewellery and as an investment. In Malaysia, gold usually will be used as jewellery. However nowadays, many investor and public people are more aware about the important of holding the gold as an investment. They will buy the gold today in order to resell it later at a higher price thus they will gain profit from that trading. On 1 June 2012, the gold price is at US$49.93 (or RM159.58) per gram different from 5 years ago, gold prices were only around US$20. For this shorter period the gold price had double increased. Thus this study objective is to evaluate the factors that influence the gold price in Malaysia. 1.2 History of Gold History of gold gold began in the Middle East about 5000 years ago. In the tomb of Queen Zer and of Queen Pu-abi of Ur in Sumeria, the oldest pieces ofÂÂ  gold jewelry, Egyptian jewelry were found and are the oldest examples found of any kind of jewelry in the third millennium BC. Egypt and especially Nubia had the resources thus make them as a major gold-producing area for much of history. About 400 years later, 1091 BC gold became legalized money in China. It took another 450 years until Lydia minted their own gold coins and in 58 AD, the Romans followed suit. By the time England chose a monetary system which was based in gold and silver in 1377 AD, gold had taken its place amongst silver as a medium of exchange. When Egypt and the Roman Empire were in their full glory, gold was produced in the region of 1 tonne annually. The production of gold fell back under less than a tonne annually in the Dark- and middle Ages (500 1400 AD). In 15th century, when the gold coast o f Africa produced about 5 to 8 tonnes annually, gold production grew notably. The discovery of America opened new possibilities for gold producers and Brazil started to produce gold in the early 18th century. The second era of gold production started in 1848 with the discovery of Sutters Mill gold on the American River. This started the gold rush and output from California soared, reaching 77 tonnes in 1851. Gold findings in Australia the same year raised world production to 280 tonnes in 1852. In 1898 South Africa took the lead in gold production and since produced about 40% of all the gold ever produced. (World Gold Council, 2006a) 1.3 Gold Prices Trends The price of gold is like other traded assets which are subject to the ups and downs in the market. Unpredictable factors that can influence the gold price such as natural disasters, the discovery of new gold deposits, the role of the central bank, inflation, interest rates and exchange rate and the price of other commodities. The price of gold has fluctuated since the gold exchange standard was abolished in August 1971 that is when the IMF founded after the World War II each member was required to peg their currency to the US dollar and the US dollar was pegged to gold. (Bretton Woods System). Under the scheme, the US promised to fix the gold price at approximately $35 per ounce. Since 1971 the gold price has been highly volatility ranging from US$850 in 1980 decreased to US$252.90 in 1999. The period from 1999 to 2001 marked the so-called Brown Bottom after a 20-year bear market. Prices increased rapidly from 1991, but not exceeded the price in 1980 until 2008 when a new ma ximum of $865.35 was set on January 3, 2008. On March 17, 2008 the price has increased to $1023.50 and this was set as another record price. Golds bull run started in April 2001 when the price slowly lifted from US $255.95/oz just higher than the 20 year low of US$252.85/oz on August 1999. Overall, since April 2001, the gold price has more than tripled in value against the US dollar. Between years 2001 to 2009 the gold price rose of 293% that is from US$276.50/oz to US$ 1087.50/oz, and has an average compounded annual return of 18.7%. From June 2009 upward, gold markets experience renewed momentum upwards due to increased demand and a weakening US dollar. 1.3 Gold Market in Malaysia In Malaysia there are five banks that offer such gold investment accounts. These banks will use passbook savings account concept. Passbook will be given to the gold investors and every transaction will be recorded in the passbook. Its functions exactly the same like conventional passbook savings account. Bear in mind that different bank offer different rate of charge or fees. Five banks that offer such gold investment accounts are: UOB Bank Premier Gold Account or Gold Savings Account Public Bank Gold Investment Account Maybank Gold Investment Account Kuwait Finance House Gold Account-i CIMB Bank Gold Deposit Account Gold price in Malaysia is traded in Malaysian Ringgit (MYR). The investors or public person can find the daily reports about gold price in Malaysia from Gold Price Network website which is a free service provided. The gold price is count based on Malaysian Ringgit per ounce, gram, and kilo gram in different carats 24k, 21k, 18k, 14k, and 10k. Gold Savings Passbook Account (GSPA) VS Gold Investment Account (GIAGold Investment in Malaysia Public Bank (GIA) vs Maybank (GSPA) public bank passbook savings account Maybank GSPA gold savings passbook account gold rate gold price today gold investment account Gold GIA current gold price ) From the table, there are not much of different between both banks. The investors should go further analysis before decided to make an investment. Maybank Gold Savings Passbook Account Public Bank Gold Investment Account Selling Price (RM/gram): 109.29 Buying Price (RM/gram): 101.30 Price Difference: RM 7.99 Percentage Difference: 7.31% Selling Price (RM/gram): 106.28 Buying Price (RM/gram): 102.12 Price Difference: RM 4.16 Percentage Difference: 3.91% Source : Maybank and Public Bank 1.4 The Kijang Emas Gold Bullion Coins The Malaysian gold bullion coin, known as the Kijang Emas issued by Bank Negara Malaysia launched in 2001 by Y.A.B. Dato Seri Dr. Mahathir Mohammad, the previous Prime Minister of Malaysia. Malaysia is the 12th country in the world that issues its own gold bullion coin. Now the Kijang Emas had joined the ranks of other international gold bullion coins. The design of the Kijang Emas depicts a barking deer (kijang) in its natural habitat in the Malaysian jungle. The reverse side features is the hibiscus, which is a national flower of Malaysia. 1 Troy ounce Kijang Emas RM200 Face value: RM200 Gold Purity: 99.99% Standard weight: 31.105g Diameter: 37.00 mm 1/2 Troy ounces 1/4 Troy ounces Kijang Emas RM100 Kijang Emas RM50 Face value: RM100 Gold Purity: 99.99% Standard weight: 15.550g Diameter: 28.00 mm Face value: RM50 Gold Purity: 99.99% Standard weight: 7.780g Diameter: 22.00 mm The trading or (purchase and reselling price) of Kijang Emas is determined by the prevailing international gold market price. The Kijang Emas is minted by Kilang Wang Bank Negara Malaysia and distributed by Maybank Berhad. The detailed specifications of the Kijang Emas is as follows: Size Face value Weight (grams) Diameter (mm) Gold purity 1 troy ounce RM200 31.105 37.0 99.99% 1/2 troy ounces RM100 15.550 28.0 99.99% 1/4 troy ounces RM50 7.780 22.0 99.99% 1.5 Vehicles for Gold as an Investment Gold Bars Investing in gold bar is the most traditional way. Gold bars generally carry lower price premiums if compared to gold bullion coins. Investing in gold bar will carry the risk of forgery because of their less stringent parameters for appearance. Gold Coins The easiest way to owning gold is by purchased gold coins from a variety of both large and small dealers. Gold coins are priced according to supply and demand and their real weight, plus a small premium. Exchange-Traded Products (ETPS) Gold exchange-traded products like CEFs, ETFs, and ETNs are traded like shares on the major stock exchanges. Gold ETPs is an easy way to get an exposure to the gold price, without the inconvenience of storing physical bars. Certificates There are two types gold certificates that is allocated (fully reserved) or unallocated (pooled). Gold certificates can help gold investors to avoid the risks and costs associated with the storage and transfer of physical bullion. The r isks that investors may face with like theft, metallurgical assay costs by taking on a different set of risks and large bid-offer spread. Accounts Many banks offer many types of gold accounts where gold can be instantly bought or sold just like any foreign currency on a fractional reserve basis. The most important differences between accounts are whether the gold is held on an allocated (fully reserved) or unallocated (pooled) basis. Derivatives, CFDS And Spread Betting Derivatives currently trade on various exchanges around the world and over-the-counter (OTC) directly in the private market such as futures, options and gold forwards 1.6 PROBLEM STATEMENT 1.6.1 Volatility of Gold Price The price of gold are always fluctuate in the market. There are many factors that can influence the gold price, such as the discovery of new gold deposits, natural disasters that destroy gold mines, the role of the international financial system, inflation, interest rates and alternative investments, dollar exchange rate and lastly the irrationality of investors. Jonathan A. Batten and Brian M. Lucey (2007) had studied the volatility structure of gold market, trading as a futures contract on the Chicago Board of Trade (CBOT) using daily data from January 1999 to December 2005. They found that the nature of volatility in the gold market is consistent with the complex interaction of price sensitive information from other asset markets rather than the price discovery actions of traders within the gold market itself. Dirk G. Baur (2012) found a positive gold price changes as a signal for future adverse conditions and uncertainty in other asset markets. This introduces uncertainty in the gold market and thus higher volatility. The inverted volatility effect of gold can lower the aggregate risk of a portfolio for specific correlation levels. The Table 1 and chart 1 below shows the average price of gold from year 2005-2011. Table 1 Year Average Price ( $ ) % change 2005 444.74 2006 603.46 26.30% 2007 695.39 15.23% 2008 871.96 25.39% 2009 972.35 11.51% 2010 1,224.53 25.94% 2011 1,571.52 28.34% **Prices from 2005-2011, Kitco.com, based on the London PM fix. The gold price is usually less volatile than other major stock market indices, such as the SP500, and is much less volatile than other commodities. There are good reasons why gold is less volatile than other commodities. First reason is the gold market is liquid and deep and has supported by the availability of large above-ground stocks. Furthermore gold is virtually indestructible and almost of the gold that has ever been mined still exists. It differs from other base metals or other precious metals such as silver, which much of it is in near-market form. As a result, in the event of a sudden rapid increase in supply or demand, recycled gold can be reused, and it frequently does. Thus this will dampen any brewing price spike in the market. The second reason is the geographical diversity of mine production and gold reserves. These are much more diverse globally than other commodities, suc h as oil where production is highly concentrated in the Middle East. This leaves gold much less vulnerable to a regional or country-specific economic or political shock. In 2010 golds annualized volatility came in at 16.1 percent lower than 21.4 percent in 2009. According to the World Gold Council (WGC) last years volatility is on par with golds annualized volatility has averaged 15.8 percent. The annualized figures for crude oil and the SP Goldman Sachs Commodity Index were 20.84 percent and 28.4 percent, respectively. Gold Price volatility is peaking at a price of $1,420 on the London Exchange on December 2010,ÂÂ  gold prices decline 3.7 percent in January 2011. According to WGC. over the past 10 years monthly golds average volatility in a given month is 4.9 percent. Melvin and Sultan (1990) who conclude that political unrest and oil price changes are significant determinants of volatility in gold prices. Fleming, Kirby, and Ostdiek (1998) show that cross-market hedg ing and sharing of common information can transmit volatility across markets over time. 1.6.2 Gold Return Is Higher Than Other Commodities Over the past 35 years, the average annual real rate of return on gold was 1.56 percent. However, it has fluctuated over shorter time periods. Returns for gold are easier to figure out than for cash, bonds and stocks. There isnt a discount rate for the metal, and there arent any payments to include in the calculations. Returns are directly based on whether the price of gold increases; investors forgo interest they would have received from bonds or dividends that go along with stocks. Gold futures add more variables to the return equation. Researched by Colin Lawrence (2003) there is low to negative correlation between returns on gold and those on stock markets, whereas it is well known that stock and bond market returns are highly correlated with GDP. This is because, generally speaking, GDP is a leading indicator of productivity: during a boom, dividends can be expected to rise. The largest gain for gold is from 1978 to 1979, when the price doubled increased from $208 to $45 9 with a return of 98 percent. If the investor had bought gold in 1979 and sold it in 1984 and 1989, the real rate of return would have been -14 percent and -6.5 percent respectively. Since 1998, the price of gold has increase at double-digit annual rates. The real rate of return of on gold purchased in 2009 at $1,087.50 and sold at the end of 2010 for $1,420.25 would have been 28.5 percent. For long-term, gold investments have not done well. For example gold purchased in 1975 at $129/ounce would have sold at the end of 2010 for $1,420.25 for an annual real rate of return of 1.56 percent. In contrast, the real average annual rate of return for Standard Poors 500 Composite Stock Index from 1975 to 2010 was only 8.4 percent. The Comparison Of Return For Gold With Other Commodities YEAR VALUE SP 500 ($) VALUE SILVER ($) VALUE GOLD ($) RETURN SP 500 ($) RETURN SILVER ($) RETURN GOLD ($) 2008 142,317 70,637 64,555 10.34% 6.19% 5.63% 2009 114,343 84,285 84,990 8.54% 6.79% 6.84% 2010 140,892 140,970 92,852 9.18% 9.18% 6.90% 28-Apr-11 173,400 233,917 115,889 10.28% 11.84% 8.12% 18-May-11 170,931 166,144 112,880 10.20% 10.05% 7.98% During 2010 WGC highlights the risk-adjusted gold performance in was able to turn in. Gold return was 29.5 percent both higher and less volatile than the MSCI Emerging Markets Index and the SP 500 Index. 1.6.3 Gold Hedge against Inflation People marketing gold investment products will always describe gold as an inflation hedge. Inflation define as the general rise in the price level and use changes in the CPI as the measure of monthly inflation. More recent data showed that gold has continued to hold its value versus the dollar. A.C. Worthington M. Pahlavani (2006) indicates that a strong co integrating relationship exists between gold and inflation suggesting that gold is a useful inflation hedge in the post-war and post-1970s period. Some studies found that the prices of gold have a positive correlation with inflation and inflation can be used as a leading indicator to predict the price of gold (Sherman, 1983 and Moore, 1990) found. While Christie-Davie et al.(2000) studied found that it takes 15 minutes for the price of gold futures to respond to the announcement of inflation, and this proving that unexpected inflation helps to predict futures gold prices. On the other hand, Jaffe (1989), Garner (1995), Larson and McQueen (1995), Cecchetti et al. (2000) conclude that the gold price is not affected by inflation. Some others also show that inflation in countries other than the US does not accurately predict the gold price and proves that gold cannot hedge against inflation in many countries. Studies using data including the pot -1999 periods of gold price hikes also failed to prove the relationship between inflation and the gold price. 1.4.4 Gold Standard and Gold as a Symbol of Wealth Gold has its own standard of value. Gold standard is a monetary system where the standard economic unit of count is a weight of gold. It defines as national money and other form of money bank deposits and notes were freely converted to the gold at the fixed price. It is ideally fixed and not subject to change. A true gold standard came to fruition in 1990 with the passage of Gold Standard Act. Gold standard can be either internal or international. In internal gold standard, the holders of paper money can redeem it for gold and in international gold standard, only certain entities, for example central banks, can demand the exchange. (Helsinki 2007). England was the first nation to adapt full gold standard in 1844 and Bank of England notes, fully backed by gold, were the legal standard at that time. The period from 1880 to 1913 is often called the classical gold standard. It featured a core of nations, led by the Bank of England. The main gold standard of Europe was maintained by the Bank of England. The Bank of England adjusted interest rates to maintain the price relationship of the pound to other major currencies. In United States, the gold standards are effective when President Franklin D. Roosevelt not allowed owning private gold at the end of 1933.After that period, Bretton Woods System enacted in 1946 and however ended in 1971 when President Richard Nixon ended that trading. Bretton Woods System allowed governments to sell their gold to the United States treasury set fixed exchange rates of $35/ounce. As gold standard was becoming more widely used, its network effects grew. Countries outside the gold standard had a hard time getting credit and exporting their goods and this attracted more countries to use gold backed currencies. Also, one of the main benefits of gold standard was the reduction in inflation volatility. The reasons why gold standard was so successful for so long are the Great Britains leading role in the 1900 century and its role in forcing the rules upon other members of gold standard. This led to a universal acceptance of the gold standard. And while the gold standard itself did not give enough flexibility to monetary policy to avoid shocks, wages and prices were flexible enough. (Bordo, 1993). Fan Fei and Kelechi Adibe (2010), people claim that as gold remains the eternal symbol of wealth in peoples minds; people will switch their investments to gold in ages of turbulence. Gold is the safe haven on the financial market. Gold represents a more credible means of preserving wealth compared with the alternative of holding US dollar denominated assets. Unlike paper money, turning on the minting presses cannot increase the supply of gold (Eric J. Levin Robert E. Wright June 2006). 1.7 OBJECTIVES OF THE STUDY The aim of this paper is to investigate the different factors leading to the fluctuation of gold prices in Malaysia. The research objectives for this study are: To determine if the inflation rates can influence the gold price. To examine if the real interest rates will influence the gold price. To examine whether US Dollar will influence the gold price. SIGNIFICANT OF THE STUDY The finding from this study educates the traders about the factors that cause the gold prices to fluctuate. The information from this study will help new trader, old trader and the researcher before they are decide to make investment. SCOPE OF THE STUDY This study is all about analysis made to see the most factors that causes the gold prices to fluctuate in Malaysia. The analysis takes from the previous research report, journal finding from Gold Price Organization, Bank Negara Malaysia and Department of Statistic Malaysia from year 2007 to 2011. LIMITATIONS OF THE STUDY This research is confined to the study on factors that cause the gold price to change on the short-run and long-run. The data will be collected by secondary data sources. RESEARCH STRUCTURE The research structures are divided into four which are chapter 1 is Introduction, Chapter 2 is for Literature Review, and Chapter 3 is for Research Methodology and last but not least is Finding Analysis. Introduction is to determine what the researcher wants to study and analyze to archive the objective of the study. While the literature review is a step by step process that involves the identification of published and unpublished work from secondary data sources on the topic of interest, the evaluation of this work in relation to the problem, and the documentation of this work. Research Methodology is for explain how the research can achieve the objective of the study and for chapter four is finding where the researcher finding the data to analyze and to know the where there have relationship between dependent variable and independent variable.