Sample Essay on Why You Want a Job - Find Out What You Need to Get That Job

Sample Essay on Why You Want a Job - Find Out What You Need to Get That JobTo start with a sample essay on why you want a job is the first step to getting that job. A sample essay is what is used when employers are evaluating candidates. Therefore, it is imperative that you create a sample essay on why you want a job that includes the right details and topics.A sample gives you a feel for how a real company would be run. It may take you some time to get your creativity flowing but this will give you a very good basis for what to write in your own essay.The sample of a sample essay on why you want a job must include some elements of your personality. You can include a sample story about your past or where you had the happiest moments in your life. It is the first and most important part of a sample.This will provide a common background for you. This gives the employer the ability to recognize you from what you have written. These two elements of a sample essay are absolutely essential .Another important thing that you should include is your strengths. All businesses need applicants who have something unique to offer them. There are many strengths that you should include.One of the most useful things that you can include is your knowledge of your strengths. Your employer wants to know why you are the best candidate for the job. They want to know how you have mastered your strengths so that you will be a success.Another thing that you should include is your achievements or the advantages that you can offer. You should state the advantages and not simply enumerate what you do not have. For example, if you are a born writer, you may state how you have written two books which you hope to write another.Employers want to know how you gained the knowledge and experience to be able to do this. Make sure that you add what you need to the sample essay on why you want a job. Remember that the more you state the advantages and skills that you have, the better chance you have at getting that job.

Writing Topics For American Government Research Paper

Writing Topics For American Government Research PaperWhen you are writing a research paper, you will often find that you need to write on different topics for American government research paper. There are two different types of topics you can use to write about: general and legal.These are different because one has specific needs when it comes to the topics. For example, if you want to write about dog training, you may need to look into the Constitutional issues about banning certain breeds of dogs, or your state's constitutionality on such a ban. In order to keep your research on topic, you need to check out a book, an attorney, or even a lawyer. If you are going to hire a lawyer, make sure you have the best understanding of how laws work before you hire them to help you.Also, if you are writing about the Second Amendment, you need to consider the Constitutionality of the Second Amendment in your state. This is not necessarily your state's law. It's your state's constitutionality as it pertains to your state's law. By knowing the Constitutionality of your state's law, you can make sure that you have done everything legally possible to achieve what you set out to do.On the other hand, if you are writing about the United States Constitution, you need to be able to talk about state constitutional law and federal constitutional law. The United States is a union, and many of its states have specific rights and freedoms and that include the right to freedom of speech. You should be able to state that if you are writing about free speech.Then you also need to consider the history of the law and how it has evolved. For example, if you are writing about animal cruelty, you should take the time to understand the legal rules of animal cruelty as it pertains to the United States and the state where you live. By understanding this, you can be sure that you are working within the boundaries of the law.As for the United States, they have taken the time to craft laws that are able to protect the general public from being victimized by abusive animals. Although they have gone so far as to include this in their legal system, there are still some gaps that are left to be filled. These gaps are called loophole.The government has been trying to fix these loopholes for a very long time and they have put a lot of time and money into it. This has allowed them to craft laws that have given them the best results and protections for the general public. All it takes is a good lawyer, the right knowledge, and plenty of time to ensure that you are able to write on these topics.You should also think about what you are going to write about when you do it. Do you need to put it in to the appropriate law? What can you make of it?

Choosing Good What Are Some Good Research Paper Writing Services

Choosing Good What Are Some Good Research Paper Writing Services What Are Some Good Research Paper Writing Services Ideas Finding research paper topics on the net is relatively uncomplicated and your search should yield a range of ideas. General psychology is a broad sphere of wisdom and the writer has an amazing chance to choose among the fantastic collection of ideas. Imagine the standard of writing you'll receive from an inexpensive essay writing service. Our essay writing services are a simple, stress-free alternate to achieving your aims. The sort of essay you're looking for will be offered to you within the deadline offered to you. Coming up with your very first draft acts to be an eye opener to the remainder of the paper. Let our team know the form of paper you require, the range of pages required, and when you require it by. The silk business and the organization of work. Inspiration to make your own advertising or media argumentative essay topics isn't tricky to discover. Writing is a present that comes naturally. Speaking about general psychology, you can select this issue from the entire course. Moral argumentative essay topics are a few of the simplest to get carried away with. Yes, there's a person who can assist you with your essays expert essay writers at MyPerfectWords. Researching the topic permits you to find out more about what fascinates you, and should you pick something you really like, writing the essay will be more enjoyable. So when you have an essay assigned that you require help with, you can purchase essay online cheap from us. Employ a specialist in any field you will need to compose your outstanding essay our writers offer the very best essay writing service since they have degrees in all disciplines. Writing a superb persuasive research paper is a difficult undertaking. In the procedure for writing research articles, it's required to adhere to a specific topic. The highlighted tips are certain to supply you with a great research topic and paper. There's a quantity of powerful research paper topics for the most intriguing regions of investigation. Normally, Technical Paper Writing is a really important zone in paper research. As soon as you're prepared to think of a thesis, have a look at these Argumentative Thesis Statement Examples. Regardless of what genre you would like Business Studies, Microeconomics, Business Management and Financial Accounting, we're here to serve your requirements. Top Choices of What Are Some Good Research Paper Writing Services Limitations or caveats shouldn't be difficult to comprehend. Researching any issue about government or laws may get overwhelming because of the intricacy of the issues and even on account of the wording of some laws. What What Are Some Good Research Paper Writing Services Is - and What it Is Not Therefore, choose something which you find fascinating so that it's worthy in your mind of researching for a long time. Basically, make certain you aware of picking the fine topic is simply not an effortless job. If you're writing about social problems, you will usually be writ ing about the way the topic affects larger groups of people, like how poverty affects a whole generation. When you're picking your topic, remember that it's much simpler to write about something which you currently have interest ineven in case you don't know a good deal about it. To some degree, the thought of a normal research project is a misconception. Research proposals take a lot of your spare time, so that it's well worth choosing a topic that you truly know and like. Such projects usually are hard to imagine, it's more troublesome to implement. Develop your high possible all-natural project as detailed as possible.

The Divorce Rate Of Married Couples - 880 Words

Throughout the continental United States, the divorce rate among married couples is approximately â€Å"forty to fifty percent† according to the American Psychological Association (APA). Although this is a simple figure, this essentially means the sanctity of marriage has dissipated for half of the U.S. This figure pertains to the marriage between two adults, but the people being affected the most by the divorce are the children. Children of divorce are often guilty of blaming themselves for the marriage failure. My parents divorced when I was three years old, and, thankfully, I do not remember anything about their proceedings in the divorce. Their divorce has played a significant role in the aspect of the person I have become today. Divorce has become too important of an issue to ignore. According to the American Psychological Association, at least half of the children in the United States will experience divorce by the time they turn eighteen. In some cases, the marriage can be repaired through counseling, communication, or some other form of help. However, in some cases, the marriage will fail and divorce is the only remaining option. When this happens, the parents must know how to explain it to their child. If not, they may grow up blaming themselves for the parents’ failed marriage. It is crucial that the parents make the divorce as easy as possible on the children so it will not change who they are or their outlook on life. To make divorce as easy as possible on yourShow MoreRelatedThe Divorce Rate Of Japan996 Words   |  4 Pages Divorce Ever since the 1950’s, the rate of divorce has been increasing immensely to a degree that it is becoming socially acceptable. It is losing its stigma as well. Most divorces in the world have similar reasons and statistics as to why divorce is becoming more common, but also have some differences. For instance, Japan’s divorce rate is at 27% whereas Russia has a higher divorce rate around 60% due to some of the same controversial reasons. Japan’s divorce is still fairly lower than theRead MoreEffect Of Cohabitation On The Male And Females1287 Words   |  6 Pagestogether in sexual unions without actually getting married. Research has it that over 60% of marriages today derive their basis form prior cohabitation. However, less than a half of such unions end up in marriages of if they end up in marriages; the marriages themselves are never satisfied. According to statistics, over 46% of marriages derived from cohabitation today results in divorce cases and the wo rsening effects is even higher when the couple involved have cohabited severally in the past. TheRead MoreMarriage Is A Bond Made993 Words   |  4 PagesMarriage is a bond made, between two people, that is meant to last until death. 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While the highest annual rate of marriage in the mid-1940s peakedRead MoreCauses of Divorce Essay886 Words   |  4 PagesCause and Effect of Divorce In today’s society, divorce is more the norm than ever before. Forty percent of all marriages end in divorce. Divorce defined by Webster is the action or an instance of legally dissolving a marriage. Divorce itself is both a cause and effect. There are many causes of divorce. Some of the causes happen more often than others. For instance, the most common causes of divorce are poor communication, financial problems such as lack of money, lack of commitment to marriageRead MoreWhy Has The Divorce Rate Of The Uk Change Over The Past 30 Years?1181 Words   |  5 PagesWhy has the divorce rate in the UK change over the past 30 years? 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In this paper, the affects of children in divorce vs two parent relationships willRead MoreArgumentative Essay on Gay marriage672 Words   |  3 Pagesto put a ring on it. Same sex couples should be allowed to publicly celebrate their relationship in the same way as heterosexual couples. The Human Rights Campaign Foundation states that many same sex couples want the right to legally marry and honor their relationship in the greatest way our society has to offer.... Also same couples should have access to the same benefits enjoyed by heterosexual married couples. Many benefits are only available to married couples, such as hospital visitation duringRead MoreThe Reasons for Changes in the Patterns of Marriage, Cohabitation and Divorce in the last 30 Years845 Words   |  4 Pagesthe Patterns of Marriage, Cohabitation and Divorce in the last 30 Years Over the last 30 years there has been a significant change in the pattern for marriage, co-habitation and divorce. There are many reasons for these changes that have taken place. For example, since 1971, when a divorce act was introduced, divorce has been more acceptable in todays society. This has slowly increased the figures of divorce at a steady rate. A downfall in religion has also contributedRead MoreDivorce : A Serious Epidemic932 Words   |  4 Pagespositive to every negative. Even my divorce? For me, yes. If you go back and look at it, why it happened or how it happened, there’s something in there that’ll make you laugh.† Although divorce can be considered humorous it has become a serious epidemic. About 50 percent of all marriages end in divorce. The purpose of this paper is to discuss how an individual takes part in causing divorce, how society plays a part in divorce, and how can we lessen the situation. When divorce is looked into the odds of success

Managerial Decision Making and Managerial Innovation

Question: Discuss about the Managerial Decision Making and Managerial Innovation. Answer: Problem background: In recent years, the demand of workplace has been increasing in an effective manner. Nowadays, employees spend long hours at the workplace due to huge workload. In this context, the organization has been focusing on enhancing their production within short span of time (Wood, Cogin Beckmann, 2009). Consequently, the higher management has been pressurised the employees for increasing their working hour so that they can involve more time on the production (Shanafelt et al., 2012). Hence, the employees are unable to obtain work life balance. However, some of the employees have been suffering stress and other physical problems. Due to this unethical practice of the management, most of the employees have decided to flash this particular news on the local media (Wiese, 2015). On the other hand, the employees believe that the social media would be the best platform for flashing this news. SWOT analysis of the problem Strength the prime strength or the benefit of the work life balance is the improved staff morale and engagement it facilitates the employees to avoid absenteeism and health cost it also helps in recruitment, retention and diminish the employee turnover in the business Weakness Most of the time, the organization is unable to provide flexible work life due to the requirement of high production The particular organization has no clear strategic direction for diminishing the particular issues. On the other hand, the internal operating problems can occur due to poor work-life balance in the business. Opportunity By providing the work-life balance, the organization will be able to increase its production level. The particular organization could motivate employees by providing the healthy work life With the engagement of the work-life balance, the organization would be able to reduce their employee turnover. Threats The particular organization can face challenges in conducting the business, as the employees spread the news on social media. The lack of work life balance can create physical issues that can damage the workforce The poor work life balance can cause loss of sales substitute in the business. On the other hand, it slows down the market growth rate of the business PEST analysis: Political Due to the lack of government policy on work-life balance, the organization is least bother about healthy work atmosphere at the workplace. The local government should focus on developing new legislation for work-life balance, as employees pay tax to the government Economical The Gross Domestic Product per capita is very low due to low production in the business. On the other hand, the high-interest rates create challenges for the business to maintain adequate growth rate. Social In the particular organization, the dominant religion is Christian and the management does not allow diverse culture in the workplace. The organization has biased behavioral approach towards women, as they avoid in promoting female employees Technological the organization has not introduced any technological change that could facilitate employees to execute work in an effective manner Due to the lack of technological innovation, the employees are unable to obtain healthy work life. Problem definition: Work-life balance is one of the key components that enable employees to deliver high class performance in the business (Deepika Rani, 2014). In this particular case, the organization has suddenly increased the working hours for employees to obtain high production. Consequently, employees have to spend 12-14 hours at the workplace which creates the mental illness and family disturbance. By considering the 5Ws Root cause analysis, the problem can be defined in an appropriate manner (Barletta, 2012). What: the organization needs to understand the issues of employees. In the idle situation, the organization should provide flexible work atmosphere to the employees. By reducing extra work load from the employees, the organization could improve the situation. Where: the physical structure or the location of the problem is in the workplace itself. When: the problem arises during the work timing when employees feel overburdened with the workload. Who: this particular problem has been affecting the employees and their performance. Due to the extra workload, employees are unable spend extra time with their family at home. Why: the prime rationale of the issue is that the organization wants to improve its production line within small amount of time. Consequently, the management is forcing the employees to deliver extra hour of works at the workplace. Figure 1: 5Ws root cause analysis (Source: Jones, Burke Westman, 2013) Solution generation: An effective work life can be provided to the employees by simply allowing them for flexible work shifts. In this particular scenario, the organization can enhance its work force to meet their expectation (Jones, Burke Westman, 2013). Consequently, it would not create any challenges for the existing employees. On the other hand, the flexible work shifts would also facilitate the organization in delivering balanced life to the employees (Blanchard, 2012). In the rotational shift format, the employees can choose shifts according to their personal work schedule. Consequently, it would be beneficial for the organization to improve the production of the business within short span of time. By analysing the De Bonos Six Thinking Hats, the solution can be generated for the particular issue. Red hat If the organization reacts to the emotions of the employees, they must reduce the shift timing for reducing the extra workload of the staffs at the workplace. On the other hand, the organization could implement extra monetary benefits for conducting overtime at the workplace. White hat By analyzing the facts and figures, in recent days, the organization has experienced huge employee turnover due to imbalanced work-life challenges. Consequently, the production of the organization can be extended due to the low workforce. The sales margin of the business got decreased due to low quality products manufactured by employees. Black hat To implement the appropriate changes in the workplace, the higher authority or the management needs to accumulate the feedbacks from their existing employees. It can be assessed that the management needs to impose logical judgment to reduce this particular issues from the workplace. Green hat The management needs to implement creative solution for diminishing the particular issue. The organization can allow the employees to execute the work from home so that they can lead a stress free life. Rotational shift is another way of reducing the absenteeism at the workplace. The employees should be rewarded by the monetary benefits for delivering extra hour of work in the workplace. Employee recognition is another important part of motivating employees in the workplace. Blue hat The process of change needs to be executed in a systematic manner so that the workflow can be maintained at the workplace. In the thinking process, the organization needs to involve the employees for accumulating their individual thoughts on the issue. At the initial stage of the changing phase, the organization is required to distribute the workload equally among the employees and the management needs to enhance the workforce in the business. Yellow hat By implementing the change in the business, the organization will be able to improve the staff morale along with the high production in the business. On the other hand, the management will be benefitted due to decreased employee turnover The work-life balance will ensure the organization for long-term sustainability in the business. Solution evaluation: The organization can improve the situation by implementing flexibility at the workplace. Most of the time, the management avoid taking feedbacks from the employees regarding new strategy implementation (Richmond Rohlfing, 2013). The management could implement several strategies for diminishing the particular issue from the business. The organization could provide high monetary benefits for working extra time at the workplace. On the other hand, the management can maintain work life balance considering several facts including flex time, compressed workweek; job-sharing, telecommuting, and permanent and part-time work arrange (Burg-Brown, 2013). By analysing the decision-making process, the solution of the issue can be identified in an appropriate manner. Decision-making process: The decision making process consists of six stages including identification of problem, analysing issue, developing the alternative solutions, selecting the best solution, converting the decision into action and following up the taken action (Freeburg et al., 2014) Problem identification: The basic problem at the workplace is that the employees are unable to lead a balanced life due to huge workload (Goldfarb et al., 2012). Consequently, the management of the organization has been facing employee turnover issue that affect the production. Moreover, the employees have decided to take the legal action against the management. Hence, it might damage the brand reputation of the business. Analysing issue By analysing the issue, it can be assessed that the organization has been facing challenges in executing business in an appropriate manner due to lack of work flexibility. The management is least bother to provide extra benefits to the employees for motivating them at the workplace. Consequently, the particular issue is hampering the business. Developing the alternative solution: There are several options available for the management to diminish the work life challenges from the business. The management could implement flex time, compressed workweek, job-sharing, and telecommuting process at the workplace for reducing the extra stress of the employees (Kim, MacDonald Andersen, 2013). On the other hand, the organization could enhance the workforce for reducing the workload from the existing employees of the company. Moreover, the management could arrange extra monetary benefits for the employees who worked overtime at the workplace. Best solution selection: The best solution for reducing the work life challenges is to implement the flexible and rotational shift timing with high monetary benefits. By implementing the particular strategy into the business, the management could ensure work life balance for the employees. Decision making: For implementing the particular strategy into the business, the human resource management needs to include different shift timing for the employees (Zsambok Klein, 2014). Moreover, the organization needs to increase the investment of the business for providing extra monetary benefits to the employees. Follow up the taken action: After implementing the process, the organization needs to implement a monitoring process for tracking the progress of the business. The management would engage 6months timeframe to track the process. If there are any flaws then the management will change the strategy accordingly. Figure 2: Decision-making process (Source: Damanpour Aravind, 2012) Implementation and action plan: The organization needs to identify the driving forces and restraining forces for understanding the process of change. In this particular situation, the prime issue is that the employees are unable to lead a health and balanced life due to huge work pressure at the workplace (Marcek, 2013). On the other hand, the lack of work life balanced has been causing the high employee turnover in the business. By developing the force field model, it will be easier to identify the process of change. Force field model analysis: Driving forces and restraining forces are listed in the below table: Driving forces: Scores High workforce management 4 High employee morale 3 Huge productivity in the business 5 Total Scores 12 Restraining forces: Scores Providing extra cost to the employees 3 Allowing employees to execute flexible shifts 2 The organization can face conflicts from employees 3 Total Scores 8 By analysing the above table it can be identified that the driving forces are high work force management, high morale and high productivity. The total score of the driven force is 12. On the other hand, the restraining forces are extra cost for employees, providing flexible shifts and to face the employees conflicts at the workplace. The total scores in the restraining force are 8. Consequently, the high score of the driving forces indicate that the organization needs to provide the work life balance to the employees for obtaining high growth in the business. Figure 3: Force field model on work life balance (Source: Created by author) References: Barletta, J. (2012). Work-life balance.Home Therapist: A Practical, Self-help Guide For Everyday Psychological Problems, The, 3. Blanchard, M. H. (2012). Work life balance?.Obstetrics Gynecology,119(1), 177-179. Burg-Brown, S. (2013). Work-life balance.Journal of Property Management,78(4), 48-54. Damanpour, F., Aravind, D. (2012). Managerial innovation: Conceptions, processes, and antecedents.Management and Organization Review,8(2), 423-454. Deepika, M., Rani, M. M. (2014). WORK LIFE BALANCE. Freeburg, M., LaBrozzi, R., Mamberg, M., O'Connor, E., Wu, T. C. T. (2014). Work/Life Balance?. Goldfarb, A., Ho, T. H., Amaldoss, W., Brown, A. L., Chen, Y., Cui, T. H., ... Xiao, M. (2012). Behavioral models of managerial decision-making.Marketing Letters,23(2), 405-421. Jones, F., Burke, R. J., Westman, M. (2013).Work-life balance: A psychological perspective. Psychology Press. Kim, H., MacDonald, R. H., Andersen, D. F. (2013). Simulation and Managerial Decision Making: A Doubleà ¢Ã¢â€š ¬Ã‚ Loop Learning Framework.Public Administration Review,73(2), 291-300. Marcek, D. (2013). Risk scenes of managerial decision-making with incomplete information: An assessment in forecasting models based on statistical and neural networks approach.Journal of Risk Analysis and Crisis Response,3(1), 13-21. Richmond, G. L., Rohlfing, C. M. (2013). Work-Life Balance. Shanafelt, T. D., Boone, S., Tan, L., Dyrbye, L. N., Sotile, W., Satele, D., ... Oreskovich, M. R. (2012). Burnout and satisfaction with work-life balance among US physicians relative to the general US population.Archives of internal medicine,172(18), 1377-1385. Wiese, B. S. (2015). Work-life-balance. InWirtschaftspsychologie(pp. 227-244). Springer Berlin Heidelberg. Wood, R. E., Cogin, J., Beckmann, J. (2009).Managerial problem solving: Frameworks, tools, techniques. McGraw-Hill Higher Education. Zsambok, C. E., Klein, G. (2014).Naturalistic decision making. Psychology Press.

Slovakia Economic Analysis Essays - Geography Of Europe, Europe

Slovakia Economic Analysis Country: Slovak Republic Formation of the Slovak Republic The Slovak Republic, or Slovakia, is located in Eastern Europe with a population of 5.4 million people and borders the countries of Poland, Austria, the Ukraine, and the Czech Republic (The World Bank). As originally part of the former nation of Czechoslovakia, the Slovak Republic has only recently begun to write its own history (Abizadeh, p. 171). During 1989 many revolts took place against eastern European governments under communism, including Czechoslovakia (Slovakia.Org, ?20th Century?). Both Slovaks and Czechs staged massive protests against communism in Czechoslovakia and ended the communist regime in November 1989 (Slovakia.Org, ?20th Century?). Under the new non-communist system of government, the two republics of Czechoslovakia were established: the Slovak Republic and the Czech Republic (Embassy of the Slovak Republic). In June 1990, with the federal and republic-level governments in place, free elections were held for the first time in the country since 1946 (Slovakia.Org, ?20th Century?). The main concern of the new government was the transformation of Czechoslovakia from a state-controlled to a free market economy (Embassy of the Slovak Republic). Disputes arose between the two republics about reform process which focused on privatization, the encouragement of foreign investment, policy of macro-economic stabilization, price liberalization, and liberalization of foreign trade (Slovakia.Org, ?20th Century?). The Czech Republic was more economically developed than the industrial-based economy of Slovakia (Slovakia.Org, ?20th Century?). The transition to a market economy left the Slovak Republic to endure greater economic hardships than the Czech Republic (Sovakia.Org, ?20th Century?). For example, the federal government chose to dramatically cut the country's defense industry, resulting in a large decrease in industrial production and a large rise in unemployment in Slovakia (Slovakia.Org, ?Slovak Economy?). This took place because the economy that rose out of the comm unist era in Slovakia was based on industrial production, particularly on weapons and military equipment (Slovakia.Org, ?Slovak Economy?). There was a great difference of opinions between the Slovaks and Czechs about the nature and pace of economic reform in Czechoslovakia (Slovakia.Org, ?20th Century?). The disagreements delayed the reform process and also the acceptance of a new constitution (Slovakia.Org, ?20th Century?). It became obvious that the current form of government could meet the demands of both republics. As a result, Slovakia declared its sovereignty in July 1992, in other words, its laws took higher priority than those of the federal government (Slovakia.Org, ?20th Century?). During November the federal parliament chose to officially break up the country, and on January 1 1993, the Slovak and Czech Republic replaced the Czechoslovakia as two independent countries (Abizadeh, p. 171). Recent Growth levels of the Slovak Economy The economic problems that began in the early 1990s still plagued Slovakia after it claimed independence in 1993 (Abizadeh, p. 172). After its first year of independence Slovakia's economy was in poor shape with a negative GDP growth of 3.7%, and inflation rate of 25.1%, and an increasing unemployment rate of 14.4% (National Bank of Slovakia). Overall, gross domestic product in Slovak Republic decreased a substantial 23.7% during the years 1990 to 1993. Through a slow reform process, however, positive macro-economic results have been accomplished over the recent years (Slovakia.Org, ?Slovak Economy?). GDP growth has been positive since 1993 and recorded an annual growth of 4.4% in 1998 (The World Bank). Slovakia's 1998 GDP per capita of 3,832 USD was very competitive with other central European countries (Embassy of the Slovak Republic). The budget deficit has been brought under control, and at the beginning of 1999, the inflation rate of 5.6% was the lowest among all transition econ omies (Embassy of the Slovak Republic). The decline in the inflation rate was due to developments in the capital markets and the banking sector, a decrease in food prices, price deregulation, and lower producer prices (Abizadeh, p. 172). Unemployment, on the other hand, is still a major problem in the Slovak republic. Since the end of the communist regime the rate of unemployment has been 10% or higher with no signs of improvement (Slovakia.Org, ?Slovak Economy?). Unemployment is related to the consistent regional disparities and the ?inevitable? restructuring of large companies (Embassy of the Slovak Republic). The most important part for Slovakia to convert to a market

The Value of the Chinese Renminbi

The Value of the Chinese Renminbi Free Online Research Papers MACQUARIE UNIVERSITY ECON 867 International Financial Management Lecturer: Dr. George Milunovich The value of the Chinese renminbi, its management and risks associated with investing in China written by Mahmut Berdan 41404068 Arthur Britto 41087054 Rasmus Heim 40981088 Joanne Papanikitas 40321711 Words: 2,932 Table of Contents Introduction 1 The current economic situation and the present exchange rate regime in mainland China 2 The equilibrium value of the Chinese renminbi under a flexible exchange rate regime 4 Reasons behind the Chinese governments decision to keep the renminbi pegged to a basket of currencies 7 Risks commercial participants face from a managed float versus a fully flexible exchange rate in China 9 Conclusion 12 References 13 Introduction In recent times, the Chinese economy has become a topic of great interest within economic literature and global affairs. In particular, China’s rapidly exceeding economy has sparked extensive discussion on the value, management and stability of the Chinese renminbi, as well as considerable debate concerning the strengths and potential risks associated with investing in China. In what appears to be an economy with immense potential to further expand its global influence, several key factors need to be analysed. Firstly, the advantages and disadvantages associated with the current economic situation and present exchange rate regime existing in mainland China. Secondly, the motivations behind the Chinese governments decision to peg its national currency to a basket of currencies and moreover, the potential risks associated with replacing a fixed exchange rate system with a more flexible one. By considering such factors, it is seemingly clear that China’s recently introduced peg to as basket of currencies will more adequately reflect its economic position, as well as the renminbi’s currency value, within global financial markets. The current economic situation and the present exchange rate regime in mainland China China possesses one of the fastest growing economies in the world, with its rapidly booming economy seaming ahead of its global competitors. Undoubtedly, China is the primary contributor to the growing economic strength of Asia, as well as for global economic growth. Over the last four years, China’s economy has expanded at an average of 10.4 per cent per year which, during the same financial period, more than doubled the average growth rate of the world economy. Factors considered bring responsible for China’s startling economic growth are the rise in GDP, GDP Per Capita, investment, trade and the success of Chinese enterprises (Full Steam Ahead for Chinese Economy 2007). China contributes a strong 5.5 percent of the worlds GDP, with growth stable, remaining within 1.1% fluctuation points. Predictions have been made that in 2008, Chinas GDP could possibly increase to 10.7% with the Olympic Games taking place in Beijing (Full Steam Ahead for Chinese Economy 2007). Chinese government officials wish to sustain economic growth in order to reduce poverty (Chinese Economy Exceeds Forecast 2007). In 2006, China appeared to have succeeded, with its per capita income reaching the 2000US threshold for the first time. Rural resident incomes increased by 7.4 per cent, whilst urban residents increased by 10.4 per cent. According World Bank statistics, such an increase suggests that China can no longer be considered a low-income nation (Full Steam Ahead for Chinese Economy 2007). In the last four years, China’s national fixed assets investment has increased by 26.6 per cent, whilst its trade volume has made rapid progress, reaching the third largest volume globally at 1.76 trillion in 2006. Moreover, Chinese enterprises have recorded impressive profit margins, which have undoubtedly strengthened national economic growth (Asia Economy: The Impact of the Renminbi Revaluation 2005). It is seemingly clear that in present terms, the Chinese economy has conditions of high levels of growth and sustainability. However, a nation with such rapidly exceeding growth may face problems of surplus production capacity, the risk of deflation and overheating, if the proportion of exports in GDP capacity continues to rise into the future (Future worries for Chinese Economy 2007). The main priority of the ruling Chinese Communist Party (CCP) is to maintain strong rates of economic growth, political and economic stability, as well as implement reforms in a country experiencing significant economic transformations (China: Country Outlook 2007). As an eloquent example of economic reform, Chinese officials made a moderate revaluation of the currency by ending the eight year fixed exchange rate policy of pegging the Renminbi against the US dollar and replacing it with a floating exchange rate regime, targeting its value against a basket of currencies (Asia Economy: The Impact of the Renminbi Revaluation 2005). Under the reform, a ‘reference basket’ of currencies is referred to when selecting targets for the Renminbi (Asia Economy: The Impact of the Renminbi Revaluation 2005). Such basket currencies will have assigned ‘index weights’ administered by The State Administration for Exchange Control (SAEC), under direct control of the Peoples Ba nk of China (PBOC) - China’s Central Bank- , that reflect which currencies are most commonly traded in terms of foreign trade, external debt and foreign direct investment (People’s Bank Of China 2007). The Peoples Bank of China (PBOC) stated that trade weighted indexes will not be followed rigidly, as account considerations such as the share of other major currencies in foreign debt and foreign direct investment will also be considered (People’s Bank of China 2007). The revaluation has exhibited a moderate appreciation of 2.1 per cent, from 8.28 per cent against the US Dollar to 8.11 per cent (Asia Economy: EIU’s October Assumptions 2005). An announcement of the People’s Bank of China (PBOC) states that the changes ‘†¦enables the market to fully play its role in resource allocation†¦as well as further strengthen the managed floating exchange rate regime based on supply and demand’ (People’s Bank of China 2007). Chinas trade patterns have moderately altered, relieving pressures caused by China’s capital and current account surpluses. Despite its advantages, the present exchange rate regime may create uncertainty of the future exchange rate level, the appreciation or depreciation of the currency, as well as prices of imported goods and level of export costs in the longer term (Kuroda 2003). The equilibrium value of the Chinese renminbi under a flexible exchange rate regime In order to calculate the equilibrium value of the renminbi, first, one has to decide which of the three basic versions of PPP to use: the Law of One Price (LOP), the absolute PPP or the relative PPP (Yang Bajeux-Besnainou 2006). In this report, the relative PPP will be used to determine RMB’s equilibrium value. Like the other two options, relative PPP does not differentiate between tradable and non-tradable input goods. So, wages are included in prices used to calculate the PPP exchange rate, but not in the market exchange rate. Therefore, the former is lower than the market equilibrium exchange rate given a low per capita income currency such as the RMB being the quoted currency. Hence, the RMB’s value, implied by PPP, is higher than the value indicated by actual exchange rate. However, the relative PPP overcomes LOP’s problem of lacking representativeness. Moreover, in contrast to the absolute PPP, it also reduces the impact of including traded as well as non-traded goods by relying on the equilibrium exchange rate S0 of a base year t=0. The PPP exchange rate then is determined by adjusting S0 by the relative price changes of the two currencies (Yang Bajeux-Besnainou 2006). Since this model is based on an equilibrium value of the exchange rate, the results obtained will be more reliable than those of the other two versions. Therefore, to determine the equilibrium value of the renminbi, the relative PPP method will be used by applying this formula: To ascertain the base period, one has to select a period in which the actual exchange rate was equal to the PPP exchange rate (Artus 1978). Moreover, according to Artus (1978), since biases in measuring relative price changes rise with time, the base period chosen must not lie too far in the past. Yang and Bajeux-Besnainou (2006) chose a period, in which major changes in China’s exchange rate system occured. Given this and Artus’ claim that the base period must not be too distant from the current period, therefore, the exchange rate of July 23 2005 will be taken as a base period. Two days before, the People’s Bank of China announced that the renminbi would be pegged to a basket of currencies. Before that, it was pegged to the US-Dollar only. The following data is used to calculate the PPP exchange rate: 2005 2007 Exchange rate 8.12110 exchange rate of July 23, 2005, i.e. two days after the revaluation (Oanda.com ) 7.0222 (7.55580) exchange rate of March 31, 2008, chosen in accordance with the latest CPI month available (Oanda.com) Domestic price level p (RMB) 101.3 CPI of August 2005, i.e. the month after the revaluation (National Bureau of Statistics of China 2007) 108.3(106.5) latest available CPI, March 2008 (National Bureau of Statistics of China 2008) Foreign price level p* (USD) 196.4 CPI of August 2005, i.e. the month after the revaluation (US Department of Labor 2007) 213.5 (207.9) latest available CPI, March 2008 (US Department of Labor 2008) Since the long-run equilibrium exchange rate implied by relative PPP is higher than the actual exchange rate S2007, the foreign currency USD is undervalued by and the domestic currrency RMB is overvalued by Using PPP as a trading rule, buying USD and selling RMB is recommended. It is important to bear in mind that, since there are, in reality, differences between traded and non-traded goods as well as restrictions in the movement of goods, relative PPP can only be employed as an estimate. More specifically, governments should solely use it as guide for their exchange rate policies, rather than as a precise means to determine deviations of actual exchange rates from an equilibrium value. Reasons behind the Chinese governments decision to keep the renminbi pegged to a basket of currencies In order to establish the reasons behind the Chinese government’s decision to keep the RMB pegged to currencies such as the US dollar, Euro and Japanese Yen, it is important to first differentiate between the reasons given by the Chinese government and the ones pointed out by the US government. Two major justifications made by Chinese policymakers include concerns that moving to a more flexible system would exacerbate deflationary pressures and undermine export competitiveness (Tung Baker 2004). In other words, with the RMB at a higher value against the dollar, there would be an increase in the price of exports and that could lead to a downward pressure on domestic prices. In addition, the Chinese government has also mentioned that the current exchange rate adjustment aims to promote the basic equilibrium of the balance of payments and safeguard macroeconomic and financial stability (Xinhua 2005a). The People’s Bank of China says that it has chosen an exchange rate system â€Å"that caters to its domestic situation by taking into consideration its fundamental interests and economic and social development† (Xinhua 2005b). In other words, China argues that the pegged system more likely guarantees stable economic growth. On the other hand, Americans- namely US lawmakers and manufacturers- have stated that China gives its exporters an unfair price advantage in global markets by keeping the RMB’s value artificially low (Reuters 2007a). For Ben Bernanke, US Federal Reserve Chairman, the yuan regime provides an effective subsidy to Chinese exporters, even though it is not a subsidy in the legal sense of the word (Kaiser 2007). Finally, Condoleezza Rice, US Secretary of State, has recently called for reform of the currency to one that will be reflective of the market (Reuters 2007b). In response to these claims, Chinese President Hu Jintao has currently indicated that China would continue to reform the currency exchange system and let the market play an increasing role (Pulizzi 2007). However, as written by David Cohen in the article China Hints at Further Appreciation of Yuan, â€Å"China remains committed to proceeding [yuan’s revaluation] at its own pace† (2007). Despite Yang and Bajeux-Besnainou’s research finding no convincing evidence to support that the RMB was undervalued (2006), the US Treasury noted in June 2007 that Chinas currency was in fact undervalued. However, it had been unable to determine that Chinas exchange rate policy was carried out for the purpose of preventing effective balance of payments adjustment or gaining unfair competitive advantage in international trade. (Somerville Palmer 2007). Intended or not, considering both countries’ points of view, the Chinese government’s decision to peg the yuan to a basket of currencies has undeniably given a competitive edge to China (The Economist 2007). It is this particular competitive edge that China does not want to lose. This would occur if the country allowed the renminbi to fully float. As Burdekin (2006) stated, losing export markets would slow down economic growth and negatively affect employment. Hence, to make sure that displaced workers can find employment, the government hesitates in accepting even a modest reduction in the country’s high economic growth. To conclude, another reason for keeping the exchange rate system as it is, as Cohen (2007) suggests, is to refer to the old saying â€Å"if it is not broken, do not fix it†. Risks commercial participants face from a managed float versus a fully flexible exchange rate in China According to Davis (2004), the future development of China’s economy is highly determined by its efforts to become more integrated with global financial markets. The necessity of this is also reflected by China’s strict capital controls combined with an immature banking system, which deteriorates external funding for local companies (Davis 2004). Such integration could be achieved by aiming for a market driven ergo floating currency of the Yuan. However Davis (2004) envisages that a sudden change of China’s currency policy would adversely affect China’s interest, due to a continuing underdeveloped banking system, which is being rated one of the worst in the world. In this context, Moosa (2006) suggests that for countries with poor financial systems such as China, a freely floating currency is not suitable since such systems require sophisticated futures and forward markets. Due to this, the pegged currency has proven itself as a major pillar of stability, especially during the Asian crisis (Das 2005). However, the pegged currency is subject to policy decisions which have announced destabilizing effects on the financial markets as compared to periods in which the exchange rates are held constant. Davis (2004) argued that the change towards a free float would lead to an asset flight stemming from Chinese depositors who would diversify their portfolios by investing in other international markets. The economic slow-down and/or potentially resulting crisis would most likely be combated by an enormous rise in interest rates in China. For this reason, Davis suggests that implementing a freely float would not be a viable option for another decade. The change that is most likely to occur in the short term is a revaluation of the pegged exchange rate by appreciating the Yuan, which would require China some time to develop a more competitive and functional banking system. U.S. direct income investors would be majorly affected by such revaluation, since the need for the Chinese Central Bank to buy large quantities of U.S. securities would decrease. This is due to the decreasing proportion of the U.S. trade deficit China is currently backing. Naturally, an appreciation of the Yuan would make Chinese exports more expensive for foreign countries such as the U.S. and therefore possibly reduce imports stemming from China. As a consequence of the revaluation, there could be inflationary impacts on the world economy whose magnitude however would differ between countries (Yang Bajeux-Besnainou 2006). Nevertheless it is important to note that an increase in Chinese exports prices might not have an effect on China’s exports at all due to the general low level of prices stemming from extremely low labour cost. Generally, investors are concerned with exchange rate fluctuations, for they impact on the net worth of their investments. In this context, floating exchange rates are often viewed as a way to achieve higher flexibility and avoid costs associated with policy changes in parities which create greater uncertainty (Aliber 1972). In the case of China, the risk that stems from a floating exchange rate is related to its immature banking system and unforeseeable reaction from investors that suddenly face a more volatile currency. These reactions could generate a chain reaction similar to Thailand which triggered the Asian financial crisis in 1997 (Das 2005). There are a number of political and economic issues for China such as the high degree of corruption for instance, which could increase the likelihood of disorderly national behaviour, creating additional uncertainty (Aliber 1972), (Business Monitor International 2007). This becomes critical in a scenario where the Chinese foreign exchange should depreciate. In that scenario, Chinese exporters and investors will be worse off, whilst political pressure may deteriorate appropriate adjustment of the exchange rate. Additionally, despite China’s accession to the WTO, adequate reform needs to be made in addressing issues such as intellectual property protection, which is still a major impediment on FDI in China according to Business Monitor International (BMI 2007). Moreover, there remain possibilities of financial crisis in China forecasted by BMI (2007) due to a number of factors. Firstly, the lack of effective reduction of non-performing loans (NPLs) in the state-owned banking sector negatively impacts investors’ confidence. Secondly, the currently rapid investment in China could lead to over-capacity, which in turn could lead to the re-emergence of deflationary pressures. Furthermore, the undisputed growth of China’s economy is widely feared as being unsustainable and the impacts of a slow-down are unclear creating uncertainty for investors. Lastly, China is still classified as a non-market economy with most of its trading partners within WTO regulation, which makes China more vulnerable against anti-dumping duties. Conclusion It is apparent that China is highly integrated and influential in today’s global economy. The impact of a revaluation of the Yuan has triggered widespread controversy, with changes in China’s monetary policy being deemed a potential threat to stable global market movements which could trigger economic instability and future crisis. On the one hand, it is feared that the appreciation of the RMB may result in inflationary impacts on the world economy, as well as a decrease of Chinese exports to major trading partners. However, structural aspects such as low labour costs and increasing levels of Foreign Direct Investment (FDI) provide a competitive advantage to China over most economies in the world. Therefore, impacts of an appreciation of the RMB may not, as widely assumed, adversely impact China’s competitiveness as a strong exporting nation. In the long term, China will aspire to achieve a more market driven exchange rate system in order to become more closely associated and integrated within global financial markets. 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Retrieved September 24, 2007, from china.org.cn/english/2005/Jul/135753.htm Yang, J Bajeux-Besnainou, I 2006, ‘Is the Chinese Currency Undervalued?’, International Research Journal of Finance and Economics, no. 2, pp. 106–130. Research Papers on The Value of the Chinese RenminbiDefinition of Export QuotasPETSTEL analysis of IndiaTwilight of the UAWAnalysis of Ebay Expanding into AsiaInfluences of Socio-Economic Status of Married MalesIncorporating Risk and Uncertainty Factor in CapitalAssess the importance of Nationalism 1815-1850 EuropeAppeasement Policy Towards the Outbreak of World War 2The Effects of Illegal ImmigrationThe Project Managment Office System