Aldi case studies Essay

QUESTION 1 Aldi is a leading retailer with over 8,000 stores worldwide. They operate a typical store sells around 700 products, compared to approximately 25,000 items stock at traditional supermarket. Since opening its first store in 1913, Aldi has successfully established itself as one of the most trustworthy retailers in the international business market. In industry business, company were achieved their competitive advantage in operating management based on competing a difference, competing cost and competing a response. ALDI have a different way of their services in retail shop industry. Physically, grocery shop is quite common but they achieve a competitive advantage through a services attributes in retail industry. ALDI‘s strategy lead to competitive advantage thorugh their brand that associated with value for money. Operating manager in ALDI operates an effective plan in order to emphasizing their product and services that will influence potential value to the customer. Its emphasis is on providing high quality products and excellent value for customers. As simply, ALDI have provided the customer an efficient way to shop. As we know, customers want the best quality products at the lowest possible prices. With such tough competition it is vital for organizations to understand what their customers want. As a reputable retailer, ALDI understands that its customers want value for money but do not want to compromise on quality. ALDI’s strategy revolves around providing good quality groceries for low price. For ALDI quality is important that guarantees product sold with a no questions asked money back guarantee. Based on case, ALDI achieves its low cost strategy but still maintain to produce quality products. They applied a several methods such as buys large quantities of item from trusted suppliers, taking advantage of quantity discounts and economies of scale. ALDI did not waste their cost towards shelving, locations and warehouse because they utilized an effectively resources. Otherwise, ALDI have a quick response in term of delivery product because of Just in Time (JIT). The staffs in ALDI operate the checkout as well as restock items by replacing pallets and this is quite flexible. They arrange a excellent scheduling of their performance such as minimize overhead cost. QUESTION 2 ALDI is a retailer that offers a low cost strategy as one of its strength in retail industry in Germany. Even though pertain a low cost strategy, there is no such things that ALDI offer a low standard of products. They could maintain to providing a good service quality because they succeed in customized the utilities of its resources capacity. ALDI using a time based management that required them to meet changing market and customer needs. Regardless of competitive strategy, quality is important to create a value to pay. It means, customers did not had regret buying our products and keep to buy it that similar principle used by ALDI that guarantees product sold with a no questions asked money back guarantee. Other than, a good service is one of a part of quality. It is because, services such as meet customer want on time, readily available and convenience stores could satisfy a customer on their routine daily grocery shop.

Journey to Become a Nurse Essay

I like to help and nurture people back to health, so why not join a career which includes that? Nursing goes along well with what I’m best at, it could be the perfect career for me. Where I can enjoy helping people and taking care of them to make them feel better. If they are sick, I want to help figure out what is causing them to feel that way or what the symptoms are of the possible illnesses. I’m also a very social person and can talk to anybody, which is something needed if you want to become a nurse. But what does it take? Will the money spent going to school be reimbursed or more by the career I have chosen? Well we’re about to find out! Before you decide what career to choose for life, you need to look at everything. Where to go, what school has the best programs, would it be better to get a degree, what benefits it has for family matters, how much it pays, can it support the lifestyle you’re looking for in life, and how much time you can get off. There are so many more but how can you think through all of them in such a short period of time? Even two to three years won’t be good enough to think of all the questions. But what I am going to do is answer the most important questions that you should consider in the period of time leading up to the time you need to choose the occupation you will be doing for the rest of your life or for a majority of your life. One of the most important questions you need to consider would be, what do you enjoy to do the most in your life? If you consider being a nurse as one the possibilities you could be happy doing for fifty years or so, then pick it. I’ve read quite a few articles online and they all talk about how most nurses wish that they never went into that profession in the first place. Though it does have flexible hours and family friendly time off, you have to constantly be on your feet running around all over the place, keep track of many doctors patients and paper work, and work really long hours maybe even graveyard shifts. But some say, how much you enjoy being a registered nurse is your attitude towards all the rush and stress. A lot enjoy their jobs and a lot don’t enjoy it as well. It all depends on your outlook on the job. You must also consider where you want to go. Find out where the best place to go would be, and who has the greatest nursing programs. If you can afford a really good college then go there, but if you are working on a low income and have a family and house to take care of then it may not be the best idea to go somewhere out of your budget. Also, consider whether you want to go out of state or stay close to home? Some colleges and universities that are considered to have the best nursing programs in the country, as of 2011, are Columbia University, University of Pennsylvania, and Duke University. They are most selective, meaning they are very hard schools to get into. The top schools in Utah that have the best nursing programs are University of Utah, Westminster College, and Western Governors University. They all are located in Salt Lake City, 4-year program schools, and offer Bachelor’s and Master’s degrees in nursing. Back in 2011, the average salary of a registered nurse was $65,950 annually and the average hourly wage was $34.71. There are many opportunities and advancements you can take advantage of from being a nurse or going to nursing school. You could become a doctor, a nurse practitioner, pediatrician, and a lot more. Some nurses may start their career off as a hospital nurse, but when they are there long enough and have experience, they can be promoted to assistant unit manager or even head nurse. For those nurses who want to go back to school to get a Master’s or a Doctorate’s degree have even greater opportunities. Such as nurse practitioners, nurse midwives, or nurse anesthetist. Experts are saying that the job opportunities for nurses will nearly double the expected average rate for all occupations between the years of 2011 and 2020. This is expected because the medical industry is expanding quickly and the demand for medical personnel will be exceptionally high. Next you want to consider what nurses do on an average day at work. They go around feeding the patients, checking the patients to see how they are doing, be a friend to them and their families, etc. An average nurse’s day is consisted of recording a patient’s history and symptoms on their medical charts, discuss their patients with other nurses and doctors, change the dressings on the wounds so they don’t get infected, observe the patients to  see if they are progressing in health or declining, give them their medications, and talk with their families to discuss what is happening or what is expected. Let’s go a step further, think about the average day of an ER nurse. Their days must be so hectic. I’ve gone to the ER a couple times and what I see there amazes me. There are numerous crazy stories from ER nurses and doctors. For example, one man came in saying he has abdominal pain and he had a rash on his stomach. When they administered an abdomina l exam, they discovered a turkey sandwich that has been there for over a month. Never underestimate a day in the life of a nurse. Learning about nursing, what it takes to become one, what their average day is like, and what to expect for nursing has been informational. There are numerous sources which gives information on what to look forward to. I found out the average wage is $34.71 and the annual salary is $65,950, what schooling you need to participate in before starting a career as a nurse. Becoming a nurse may seem difficult, but it’s all worth it in the end.

Crime Victim Services Program Bullhead City, Arizona Scholarship Essay

Crime Victim Services Program Bullhead City, Arizona - Scholarship Essay Example 91% of Hopi County lacked access of victims’ service resources (HCVAC, 2002 – 2007). These problems were constrained to rural people with limited resources. The problem affected people from Arizona country, specifically residents of Hopi County. It has brought about the issue of insecurity and poverty in the County. The problem includes loss of lives which causes trauma to the affected witnesses of murders. Most people are living in fear of their safety (Katz, 2007). This was a report of Arizona Department of Public Safety problem that needed to be addressed immediately. It has been found that in most cases the poor, low-class and rural people who have no access to victim services. The geographic coverage of the rural area is big. It is very importance to analyze this because it helps reduce crime, heal the affected victims and restore harmony in the County An increase in victims’ service resources like Satellite office in the area will increase the safety of the residents by taking them through the legal process and help them to be compensated where possible. This includes a background education what the victim needs to know to assist him or her in legal matters to have a fair chance of having justice prevailing. This would see through an extra 500 victims to accessing these serves (Uchida, 2007). Crime victims programs should help them have temporary homes and basic needs readily available. They should provide health care services for the victims and counseling services to the psychologically affected people. Victims of rape and physically assaulted people are the more advised to be involved in these counseling exercise. Through eradication of the victims program, and necessary training of individuals, it should assist the victim undergo a healing process; able to take themselves through the judicial process with less constraints (Uchida, 2007). This should reduce

The United States of America's strategic policies towards the Caspian Dissertation

The United States of America's strategic policies towards the Caspian Sea and The Baku-Tbilisi-Ceyhan Pipeline - Dissertation Example Azerbaijani oil resources and the war in Chechnya - a groundbreaking event that demonstrated Russia’s military capabilities to US officials - were the two factors, which prompted Washington to initiate assertive policies from the second half of 1996 onward. The United States has announced that it considers the Caucasus and the Caspian a region vital to US interests (William Ascher, 2000). This study will focus mainly on two questions. Firstly, are U.S. policies in the region serving to divide instead of acting as an integrating or unifying force? Secondly, do U.S. policies in the region prioritize economic-energy security or political-military security? When one tries to respond to the first question, the second question automatically comes to the fore because the changing economic and political security understanding of Washington after 11 September made it evident that the United States today, unlike in the 1970s, is not concerned about its hegemonic decline anymore; on the contrary, it is affecting the global order. Most importantly, it no longer feels threatened by its dependence on imported oil (Mustafa Ayd?n, 2004). Then, under these circumstances, one can argue that it is to the advantage of the United States to focus primarily on economic security which, for liberals, means creating factor mobility among national economies or a joint gains view of economic relations in Buzan’s terms (Mustafa Ayd?n, 2004). In order to respond to the above-mentioned questions this article aims mainly to focus on changing U.S. energy policies in the region after the 11 September disaster in terms of its relations with the Russian Federation and the Islamic Republic of Iran. The positive attitude of the United States toward the construction of the Baku-Tbilisi-Ceyhan (BTC) pipeline will be taken as a case study to assess whether Washington’s policies are serving to divide or acting to unify the countries in the region. In addition, Turkey’s incre asing geo-political importance in terms of the construction of the Baku-Ceyhan pipeline is also a concern of this study (Michael P. Croissant, 1999). American Oil Diplomacy in Terms of Increasing U.S. Interest in the Caspian Basin The United States, who had become accustomed to expanding energy consumption with minimal concerns about the constancy of supply or sharp price escalation by 1972,3 never articulated or implemented a long-term and comprehensive energy strategy. Major energy initiatives were taken largely to address specific crises and they did not last. In other words, the Americans have done no way to deal with their ever-growing thirst for energy. The critics of the U.S. government claim that Washington has made energy goals secondary to other foreign policy objectives, particularly during the 1990s (Bahman, 2003). American sanctions policy, for example, has slowed the development of plentiful resources in Iran (and Libya), while Iraqi production has been held back by th e United Nations. The sanction policy, thus, meant less diversification of sources. The answer to the question ‘Why then does the Bush administration still continue the sanction policy on Iran?’ is that the Bush administration views diversification of sources as a means of assuring the United States of political-military security rather than energy security, while it

The Business of tourism Essay Example | Topics and Well Written Essays - 2000 words

The Business of tourism - Essay Example Obviously, the unaffordable travel cost in developed countries and all other impacts of economic recession on them have compelled people to choose India especially Kerala as one of the best tourist destinations. In addition to the unforgettable travel experience in this state of rich and dynamic culture, Kerala offers comparatively low-cost travel, cheap rate hotel pay and a variety of tour packages. It has become a choice for many western people to stay for the whole vacation in order to escape from the unbearable living expenses of their own home land. Besides the above mentioned features, as an emerging trend, medical tourism industry has become a fastest growing segment of the Kerala tourism. As the recent global financial crisis hit largely on European Countries, Asian countries have been highly benefited from medical tourism industry. The high cost of treatment in home countries has been pushing people to this region as alternative cost-effective destinations; and the trend has remarkably increased during recession. Majority of the patients in this category come from the countries like the United States and UK. Kerala enjoys its own remarkable share in medical tourism by providing its ancient system of medicine Aurveda. This herbal medication and technique of body massage known as ‘Panchakarma’ gained international admiration especially during the last decade. Traveling or staying in Kerala during recession would be an excellent idea to gain money and materials. As compared to other regions, living cost in Kerala is rather affordable. Moreover, recently there has been a notable fall in room rent and hotel bills since the economic downturn. (Iyengar P., 2008 p.59). Mumbai terror attack (2008) also affected Kerala tourism/hotel industry as there is only 1000 km distance between these two regions. (PRlog). Suppose in the United States, a room rent cost $10 for a day, it must

International law extra Essay Example | Topics and Well Written Essays - 500 words

International law extra - Essay Example It was however difficult to pinpoint the location of the 48th Battalion responsible for the Tet offensive. After gathering intelligence reports, the military authorities collectively decided that the 48th Battalion was near the village of My Lai. American military authorities then planned to seek out and neutralize the 48th Battalion through the elements of the Task Force Barker. Their orders from their military officers were to clean out the area and destroy the villages. The civilians however were to be spared. When the different platoons, including Charlie Company, were deployed to the suspected area, they met no resistance, no Viet Cong, no 48th Battalion. Only Vietnamese civilians appeared to occupy the village. And for William Calley and other members of the Charlie Company, they felt it was their time to take revenge for the men they lost in combat and for the atrocities that the Viet Cong committed against them. â€Å"Soldiers shot old men sitting outside their homes, women carrying water, children searching for places to hide† (Olson & Roberts, p. 22). Not one of these Vietnamese fired back, and yet they were gunned down by the soldiers. Calley ordered his men to shoot all the civilians because their superior officers ordered them to. Some of the soldiers disobeyed the orders and others reluctantly carried out the orders. Calley was in his element. He happily pulled the trigger on every man, woman and child at the My Lai village. And in the end, Charlie Company â€Å"rounded up and killed as many as 500 unarmed women, children, and elderly Vietnamese in the hamlet of My Lai 4 in Son My, South Vietnam† (Wilkins, p. 77). Lt. Calley was court-martialed, charged with the murder of Vietnamese civilians. Four officers and nine enlisted men were also charged with murder. However, most of these charges were dropped and only a few, especially the charges against Calley, made it through to trial. Private

Discuss the relationship between entrepreneurship, innovation and Essay

Discuss the relationship between entrepreneurship, innovation and economic development - Essay Example As technological change permeates our lives, it is essential for each individual to understand the forces underlying and unleashed by technological change in order to become better decision makers, managers, policy analysts, and researchers. Relationship between Entrepreneurship, Innovation and Economic Development As Braunerhjelm points out, economists have undoubtedly made considerable advances during the last decades in understanding the relationship between entrepreneurship, innovation, and growth, and have brought in more profound insights on how entrepreneurship, innovation, and growth are interrelated. According to him, the relationship between entrepreneurship, innovation, and economic development can be identified from its most immediate foundation in simple perception, common sense, and a clear economic observation that performance to convert proposals into economic opportunities lies at the very core of entrepreneurship (2). Entrepreneurship can be stated as the foundation of innovation and revolution, and as such stimulates the development in efficiency and profitable competitiveness. Knowledge and flexibility are the two significant factors that are closely linked with entrepreneurship and have been noticed for their importance as measures for achieving competitiveness in this rapidly developing globalised economy. In the same way, development and growth of upcoming entrepreneurship brings chances for a country’s development within an intensified global competition due to the phenomena like globalisation and liberalisation, and modern technological innovations. According to Pirich et al, most economic, psychological and sociological research focus on the fact that entrepreneurship is a process, and not just a stagnant phenomenon and it is more than just a mechanical economic factor. Moreover, entrepreneurship is associated with choice-related issues and has a wide range of functional roles which involves coordination, innovation, uncertainty bearing, decision making resource allocation, capital supply, and ownership (14). Schumpeter holds the view that innovative entrepreneurs are the vehicles that can move the economy into development from a stagnant equilibrium, depending on the blending abilities of entrepreneurial individuals. In his opinion, â€Å"whatever the type, everyone is an entrepreneur only when he actually carries out new combinations and loses that character as soon as he has built up his business, when he settles down to running it as other people run their business† (Schumpeter, 78). Likewise, there has been a great deal of attention focused on studying various models of innovation throughout the recent decades to identify the significance of innovation with various institutions. The Economist (1999) (as cited in Pirich, et al) reports that innovation has turned out to be the industrial religion of the late 20th century, where business considers it to be the key to increase profits and market sh are and Governments generally select it while trying to fix the economy; moreover, the rhetoric of innovation has substituted the post-war language of welfare economics (15). The entrepreneur takes the place of the most essential agent in almost all of the production, distribution, and growth theories. Entrepreneurship is the driving force of economic growth and this concept suits best with the long waves theory of Joseph Schumpeter. According to Schumpeter,

Hispanis Americans and the United States Research Paper

Hispanis Americans and the United States - Research Paper Example However, apart from that parameter they share considerable differences among themselves to be identified as separate groups with regards to the different countries to which they belong to. Political Issues of the Hispanic Groups Mexicans The Mexican Americans distinguish themselves from the larger American race owing to separate immigration and labor policies held in America. Further, the implementation of treaties like North Atlantic Free Trade Agreement also makes their positions easily distinguishable. Moreover, the constitutional rights of the Mexican Americans are also infringed through the construction of separate schools for Mexican children which are mostly poorly funded. Mexican Americans are increasingly taking resort to political activities to gather voice for protesting on social issues though on temporal basis (Schaefer, 2006, pp.242, 246, 265). Cubans The Cuban population in United States of America reflects a much better position than other Hispanic groups. These group s of people turn out to be the fortunate ones to be able to complete their education till the college level. These immigrants unlike other Hispanics like Mexicans have formed their own political party to raise their voices against America’s policy in bettering relations with Cuba. However, Cubans like Mexicans adore the Spanish language which relates them to the Hispanic groups (Schaefer, 2006, p.250). ... Moreover these Hispanic groups unlike Hispanic races like Mexicans gained the opportunity for making mass scale immigration to United States. Common to the Mexican population is the high level of illegal immigrants occupied the American region (Schaefer, 2006, p.251-252). Puerto Ricans Puerto Ricans unlike other Hispanic groups have self political identities where they can elect their own governors and constitute a separate homeland distinct from the United States. Henceforth, this Hispanic group enjoys the power of citizenship in America. The Puerto Rico immigrants are highly scrutinized on matters of other Hispanics entering as Puerto Ricans to enjoy constitutional rights. Puerto Ricans share a commonality with other Hispanic groups in using Spanish language as their own distinct language in America (Schaefer, 2006.pp.268-270). Action of Political Parties on increase Hispanic presence The growth of Hispanic population in the United States has led to their increased political presen ce. Moreover, the policies of the American government have also supported the growth of the Hispanic voters. The ballot system has been made bilingual to help the Hispanic population cast their votes. However, the above activities failed to have a considerable impact on the voting rights of the Hispanic groups for a maximum of them were found ineligible for being non-citizens. The Democrats in United States are taking a fresher look to draw in more Hispanic votes in their constituencies (Schaefer, 2006, p. 245; Marger, 2008). Social and Economic Issues of the Hispanic Groups Mexicans The Mexican Americans in United Kingdom have varied economic positions. Some have access to potential land resources while a majority turned out to become poor farmers who are regarded by Americans as

Business Management Theory Research Paper Example | Topics and Well Written Essays - 1000 words

Business Management Theory - Research Paper Example However, his efforts were supported by other professionals such as Frank and Lillian Gilbreth. In the year 1991, he made several contributions towards the management theory that are still in existence up to date as discussed below. The book of Management, Bus. Rev 3rd edition by Patrick J Montana and Bruce H Charnov states that Fredrick W Tailor was the first to make a formal attempt in the creation of management theory. He made wise decisions such as the decision to advocate an application of scientific method so as to work analysis and develop functional ways of putting the theories to work(Dale, 44). Long time before Tailor came up with theories, there was a common belief among the people that leaders not not made but are born. This belief was a great challenge to the formulated theories since the people could not support them. It became very cumbersome to speak of the aspect of theory management in such an environment whereby the fact that leaders could be trained was totally una cceptable. Towards the end of 19th century, the industry had greatly expanded and became complex therefore creating the need for better better understanding on matters to do with the management theory as well as the managerial technique development (Dale, 44). Due to the fact that Tailor got support from other professionals, Lillian Gilbreth and Frank who were pioneers in the area of motion studies on the job analysis and improvement in work efficiency. Franck used the term of therbligs to describe about seventeen motions that were different and were meant for the purpose of doing the job. Through listing the therbligs, Frank was capable of analyzing the job actions and seek to gain efficiency (Dale, 44). Taylor also played a big role in trying to motivate the workers through his theories, he advocated a piece rate so as to motivate the workers. He knew that motivating employees would enable them to be more productive, he therefore introduced a Gantt Chart as a management tool for t he purpose of scheduling work. The Gantt Chart accelerated the use of piece rate so as to record a normal production and a production bonus for motivating workers be more productive above the expected norm (Dale, 44) The Administrative theory that was created had five functions that characterized management as organizing, planning, commanding, controlling and coordinating. Fredrick Taylor, together with his colleagues in the management science movement came up with a theory which stipulated that workers had no intention to work , were very lazy, required a close supervision, had to be pushed by various threatening so as to be productive, lacked creativity and usually got challenged by the work (Montana, 23). However, the theory was opposed by the theory of McGregor which states that workers have a positive attitude towards work, practice high level of creativity, are ready to welcome various challenges, are more responsible and not be challenged by the work. As a result, the McGrego ry theory was more optimistic as compared to the Taylor`s theory since was a rather pessimistic assessment (Montana, 23) In the year 1991, Fredrick W Tailor made various contributions to the management theory as discussed in the book ‘Handbook of Media Management and Economics by Alan B Albarran’, Michael O Wirth and Chan-Olmsted. From this book, he made contributions on the management th

Alternative Communication System Essay Example for Free

Alternative Communication System Essay Pascal was an outstanding genius who studied geometry as a child. At the age of sixteen he stated and proved Pascals Theorem, a fact relating any six points on any conic section. The Theorem is sometimes called the Cats Cradle or the Mystic Hexagram. Pascal followed up this result by showing that each of Apollonius famous theorems about conic sections was a corollary of the Mystic Hexagram; along with Gà ©rard Desargues (1591-1661), he was a key pioneer of projective geometry. He also made important early contributions to calculus; indeed it was his writings that inspired Leibniz. Returning to geometry late in life, Pascal advanced the theory of the cycloid. In addition to his work in geometry and calculus, he founded probability theory, and made contributions to axiomatic theory. His name is associated with the Pascals Triangle of combinatorics and Pascals Wager in theology. Like most of the greatest mathematicians, Pascal was interested in physics and mechanics, studying fluids, explaining vacuum, and inventing the syringe and hydraulic press. At the age of eighteen he designed and built the worlds first automatic adding machine. (Although he continued to refine this invention, it was never a commercial success.) He suffered poor health throughout his life, abandoned mathematics for religion at about age 23, wrote the philosophical treatise Pensà ©es (We arrive at truth, not by reason only, but also by the heart), and died at an early age. Many think that had he devoted more years to mathematics, Pascal would have been one of the greatest mathematicians ever.

Government Response to Hurricane Katrina

Government Response to Hurricane Katrina National strategy for homeland security requires collaborative efforts by both the National Incident Management Systems (NIMS) and National Response Framework (NRF) to prepare for and provide a unified national response to disasters. Effective incident management of catastrophic events requires coordination of relevant stakeholders. Both the NIMS and NRP, the Federal and State agencies have responsibility for addressing any disaster and emergencies through pooling resources together. However, the framework faces myriad of challenges including meagre resources and malfunctioning local governments. These challenges effective response to disasters such as Katrina (Walsh, Christen Jr, Lord, Miller, 2011). Impacts of the changes on the programs in response to Katrina. The changes are necessary in providing guidelines on the response by the both the State and Federal governments in the event on major disasters such as Katrina. NIMS provides proactive approach for the response team in preparation, prevention and mitigation of the effects of Katrina. On the other hand, NRF details national disaster response principle, responsibilities and structures which lead to a coordinated response to disaster. Therefore, these changes make response to disasters more efficient and effective (Walsh, Christen Jr, Lord, Miller, 2011). Necessities of changing in the existing National Response Plan (NRP) to the current National Response Framework(NRF). Unlike NRP, the NRF puts in place a single, robust approach to domestic disaster management. NRF outlines effective ways of preventing, preparing for, response to Hurricane Katrina when it occurs in any state especially in the vulnerable areas. Moreover, NRF is an all-hazards plan within the framework of National Incident Management System (NIMS). Nevertheless, establishment of NRF was mandated by the Homeland Security Act of 2002 to integrates the National Contingency Plan (NCP) and other national-level contingency plans in responding to Hurricane Katrina. Therefore, it establishes the structure and mechanisms for national-level policy and operational direction for domestic disaster management (Wise, 2006). Response to hurricane Katrina dictated by the todays NRF and NIMS. The all-hazards approach is cost effective due coordination among organizations involved in the four parts of emergency management: mitigation, preparedness, response, and recovery in achieving common goal, that is, Hurricane Katrina. The response allows sharing of costs by the organizations involved thus reducing the cost borne by each state in mounting response to Hurricane Katrina (Walsh, Christen Jr, Lord, Miller, 2011). Emergency management at the local level and implementation of the NRF in response to Katrina. Local jurisdictions are responsible for ensuring the public safety and welfare of their residents during emergencies by mobilizing resources for the same. The NRF implementation does not therefore, usurps state responsibility and jurisdiction when responding to a disaster but provide framework for such response (Walsh, Christen Jr, Lord, Miller, 2011). It is therefore, imperative to note that National strategy for homeland security requires collaborative efforts by both the National Management Systems and National Response Framework (NRF) to prepare for and provide a unified national response to disasters. The all-hazards approach is cost effective and efficient in emergency response during Hurricane Katrina (Wise, 2006). References Walsh, D., Christen Jr, T. H., Lord, G., Miller, G. (2011). National incident management system: Principles and practice. . New York: Jones Bartlett Publishers. Wise, R. C. (2006). Organizing for homeland security after Katrina: Is adaptive management whats missing? Public Administration Review, 66(3), 302-318.

Investors and Hedge Funds Essay -- Business, Investment

Are hedge funds suitable for retail investors? There are many different reasons that mankind save and invest for. Generally, pension fund is the best choice for investors who are not keen to take risks. The pension fund is by far the highest number of investment that is low risk for many people. However, the pension fund is low return as well. â€Å"At annuity rate 8% of per annum (p.a.), a pension of  £20,000 a year requires a pension fund of  £250,000† (Redhead, 2008:1). In 1949, the first hedge fund was created by Alfred Jones. However, over the past 5 years, the expansion of the hedge funds is really incredible. According to the published statement, there was an increase in the number of hedge funds from 1,435 to 2,073 in 2005. Furthermore, in globally, the estimation of hedge funds is around 12,000 in 2006 (Strachman, 2007). Making a great deal of return in every market is an objective of hedge funds, that being able to make profit in any conditions whether positive, negative or stable. Hedge funds are usually a small private group which is suitable for wealthy people who accept high risk and keen to accept limitless liabilities for losses (Liang, 1999). The investment skills of the hedge funds managers may relate to the performance of hedge funds rather than market performance. Hedge funds use flexibility of investment strategy and style and also seek optimistic profits with irrespective to the way of markets. Short-selling, leverage and derivatives are often used by the managers of hedge fund. Flexibility, self-rule with admiration their investment plans and secrecy are desired by the most of hedge funds managers (Redhead, 2008:351). Shleifer and Vishny (1997) mentioned that the investors, invested in hedge funds, who ign... ...ured by kurtosis and skewnessâ€Å"(Redhead, 2008: 356). Gregoriou (2002) achieved with a survival study of hedge funds. It evaluates the possible life of whole and surely looks for the affected factors of the length of its life. He estimated that the mean life of them was 5.5 years. It also has several related factors which linked with long life such as large size, high returns low leverage, and low minimum purchase requirements. Because of poor performance was major cause to make the hedge funds be defunct initially. Baquero et al. (2005) also informed that great hedge funds with high returns were a reduced amount of result probable to pay a debt. As a result, investors who are investing with the hedge fund should deeply learn and concentrate on information of hedge funds’ life because the funds cannot be withdrawn throughout investment (Redhead, 2008:355). Investors and Hedge Funds Essay -- Business, Investment Are hedge funds suitable for retail investors? There are many different reasons that mankind save and invest for. Generally, pension fund is the best choice for investors who are not keen to take risks. The pension fund is by far the highest number of investment that is low risk for many people. However, the pension fund is low return as well. â€Å"At annuity rate 8% of per annum (p.a.), a pension of  £20,000 a year requires a pension fund of  £250,000† (Redhead, 2008:1). In 1949, the first hedge fund was created by Alfred Jones. However, over the past 5 years, the expansion of the hedge funds is really incredible. According to the published statement, there was an increase in the number of hedge funds from 1,435 to 2,073 in 2005. Furthermore, in globally, the estimation of hedge funds is around 12,000 in 2006 (Strachman, 2007). Making a great deal of return in every market is an objective of hedge funds, that being able to make profit in any conditions whether positive, negative or stable. Hedge funds are usually a small private group which is suitable for wealthy people who accept high risk and keen to accept limitless liabilities for losses (Liang, 1999). The investment skills of the hedge funds managers may relate to the performance of hedge funds rather than market performance. Hedge funds use flexibility of investment strategy and style and also seek optimistic profits with irrespective to the way of markets. Short-selling, leverage and derivatives are often used by the managers of hedge fund. Flexibility, self-rule with admiration their investment plans and secrecy are desired by the most of hedge funds managers (Redhead, 2008:351). Shleifer and Vishny (1997) mentioned that the investors, invested in hedge funds, who ign... ...ured by kurtosis and skewnessâ€Å"(Redhead, 2008: 356). Gregoriou (2002) achieved with a survival study of hedge funds. It evaluates the possible life of whole and surely looks for the affected factors of the length of its life. He estimated that the mean life of them was 5.5 years. It also has several related factors which linked with long life such as large size, high returns low leverage, and low minimum purchase requirements. Because of poor performance was major cause to make the hedge funds be defunct initially. Baquero et al. (2005) also informed that great hedge funds with high returns were a reduced amount of result probable to pay a debt. As a result, investors who are investing with the hedge fund should deeply learn and concentrate on information of hedge funds’ life because the funds cannot be withdrawn throughout investment (Redhead, 2008:355).

Word Processing Technology and the Process of Writing :: Technological Essays

Word Processing Technology and the Process of Writing Word processors have been in use in our country and across the globe for quite some time. Elementary school students, High school Students, as well as College and University students all use them everyday to produce written texts from many different genres. Pens and paper have been forgotten. Has the formal process of writing also been forgotten? Have word processors changed the way people write – permanently (I misspelled that word and fixed it using spell check)? The most recognized definition, if there is one, of a writing process was formulated by Flowers and Hayes in 1980. They were two of the first theorists to formally recognize that there are basically three distinct types of cognitive writing processes. The first is the process of planning. This is where the writer will decide what to say and exactly how to say it. The next step is the actual generation of written text. This process occurs when the writer uses their plan to produce an actual piece of writing. The last process in the Flowers and Hayes model is revision. This is where the writer makes all possible revisions to improve the quality of their written work. These three processes do not appear to happen in any specific order. There is no set pattern to follow. The order with which the writer engages in and completes each process, as well as the amount of time each writer spends performing each process, will vary depending upon the organization methods of the writer. The w riter will look at their own individual goals and decide how to manipulate the various processes to best meet their agenda. Theoretically, these students could be moving their work forward in a purposeful direction by backtracking through a given process. This model enforced the idea that writing is a recursive process rather than a straightforward linear process incapable of being altered. The Flowers and Hayes model has often been referred to as the â€Å"writing process approach.† Of course there are many other credible models for the writing process, but this definition suits my purposes by providing a backdrop for discussing the changes made by word processors on a long accepted, though often debated, definition of the writing process (Barrow 13-18). Word processors are good for storing data, manipulating and formatting individual characters which make up the text of a final written document, and improving the writing mechanics of student work as a whole.

Macbeths Demise :: essays research papers

Macbeth Essay   Ã‚  Ã‚  Ã‚  Ã‚  The tragedy Macbeth by William Shakespeare is based on a thane in whom is corrupted by greed and a negative ambition. The character Macbeth contradicts his moral responsibility in this play a great deal; many moral questions are brought forth to Macbeth. He questions himself and whether or not he should follow through with the evil deeds that he does. Macbeths ambition causes him to compromise his honour, he doesn’t take into consideration that he is being trusted and that every action that he takes will have a reaction. Macbeth attains his position as king unjustly. As is evident by the conclusion, justice prevails as usual and Macbeths demise is a result of his evil deeds. Macbeth negates his moral responsibility as a person as well as a king. He doesn’t take into consideration that he will pay for all the evil deeds that he executes. Killing Duncan is the worst crime that is possible to commit since the kings were the closest in hierarchy next to god. It is evident that Macbeth is aware that this is an evil sin when he states, â€Å" I dare do all that may be come a man, who dares do more is none.† (Act I Scene VII, Line 46-47) The previous statement shows that Macbeth believes that killing Duncan will make him nothing more than a beast. Nevertheless he goes against his morals and kills King Duncan. Sin is a prevalent theme in this play, Macbeth shows that he knows he has lived a sinful life, â€Å"Seyton I am sick at hearth, when I behold Seyton I have live’d long enough.† (Act V Scene III, Lines 20-22) Ambition takes over Macbeth when he decides to hire assassinators to kill Macduffs wife and children, â€Å"The castle o f Macduff I will surprise; seize upon Fife; give to the edge of the sword in this line.† Lanoue 2 (Act IV Scene I Lines 150-153) Macbeth shows the insignificance of his morals and responsibilities by his actions, he shows that becoming king is of much more importance.   Ã‚  Ã‚  Ã‚  Ã‚  The weird sisters (witches) have a great impact on Macbeths state of mind when he decides to follow through with many of his actions. The witches are responsible for putting the idea of Macbeth becoming king in his head. Faith in the witches compromises his honour since they are believed to be evil however Macbeth

Discuss and Provide Solutions on Inflation, Unemployment, Distribution of Income and Balance of Payments in the S.A. Context

PROGRAMME:MASTER OF BUSINESS ADMINISTRATION MANAGERIAL ECONOMICS SURNAME:FIELIES FIRST NAME/S:MICHEAL CECIL STUDENT NUMBER:MBA109062 E-MAIL:[email  protected] net POSTAL ADDRESS:23 Altenburg Street Highbury KUILSRIVERCODE:7580 CONTACTS: (Home):021 903-6904 (Work):021 904-5802 (Mobile):084 688 7147 LECTURER: I hereby confirm that the assignment submitted herein is my own original work. Signature of Student: Date:18 May 2009 TABLE OF CONTENT Page Number Overview†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 3 A. Addressing Inflation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3 Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦3 Definition of Inflation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 3 Types of Inflation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Inflation influencing SA the most †¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦6 Solutions for inflation †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦7 B. Addressing unemployment†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 8 Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 8 Define unemployment†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦8 Different types of unemployment And the causes thereof†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 8 Solutions to unemployment†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 11 Addressing Income Distribution amongst different sections of the population†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 12 Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 12 Measurement of income distributio n†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 12 General causes of differences in income distribution †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 12 Domestic demand for labour†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3 Domestic supply for labour†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 13 Foreign demand and supply for labour†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 13 Skill-biased technological causes†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 13 Specific causes in the SA context†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 14 How can this be addressed†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 15 Affirmative action†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 16 Basic condition of e mployment†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 16 D. Addressing the Balance of Payment Deficit†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 17 Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 17 Deficit on the Current Account of the Balance of payment†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 17 Deficit on the Financial Account of the Balance of payment†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦ 18 Actions to reduce a substantial Financial account deficit†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 18 E. Surviving the current economic crunch/turmoil †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 19 Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 19 Global recession†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 19 Causes of global recession†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 19 How far has SA weathered the recession†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 19 What can be done to weather the recession†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦.. †¦.. 20 Monetary policy†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 20 Fiscal policy†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 20 Inflationâ₠¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 20 Export/Imports†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 20 F. Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 21 G. Bibliography†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 22 OVERVIEW South Africa's economic growth performance and outlook has been affected by global developments such as the global recession starting in the US and escalating oil prices in the middle-east causing cost-push inflation and has been revised downwards. In fact, these challenges have moved in tandem with international economic indicator trends and are exacerbated by supply side problems, including domestic unemployment, inflation rates beyond the Reserve Bank targets of between 3 and 6%, skills shortages, a globally less-than-competitive industry, climate change and its negative impact on agriculture and water supplies and a volatile rand. High food and energy prices have been major contributors to consumer price inflation. Increased food prices, together with a shortage of staple foods, have resulted in food stock levels being the lowest in years and therefore creating high food insecurity amongst the poorer section of our communities. In the light of these economic conditions both internally and externally this policy statement framework has been produced. A. ADDRESSING INFLATION INTRODUCTION Many experiences and authors of economic books shape my concept of inflation. I would in the light of my understanding ascribe inflation as a consequence of human indiscretion due to wants and not of needs. People always have an insatiable desire for more and more goods that are describe by many as the economic problem. When I draw up my policy framework for the performance of the economy I will address and prioritize the following issues namely price stability (control inflation), full employment, balance of payments, equitable distribution of income in order to stimulate economic growth. DEFINITION OF INFLATION Mike Moffatt[1] defines inflation as an increase in the price of a basket of goods and services that is representative of the economy as a whole. A similar definition of inflation can be found in Economics by Parkin and Bade[2]: Inflation is an upward movement in the average level of prices. Its opposite is deflation, a downward movement in the average level of prices. The boundary between inflation and deflation is price stability. Also according to McConnell, (2002: 146) inflation is a rise in the general level of prices. Thus according to McConnell inflation does not mean the increase in price level of one or two items but increase in price level of goods and services in general. But Mohr and Fourie (2008:474) state inflation as the continuous and considerable rise in prices in general. As what can be seen from both definitions are (a) in general (b) rise of prices. But Mohr and Fourie go further and define inflation as a neutral definition without specific causes. However in many instances authors will describe inflation as excessive increases in money supply, etc. Which can be causal definitions. Also Mohr and Fourie will further state that nflation is a process and also concerns continuous and considerable increases in prices in general. Therefore then, one can agree with the definition of Mohr & Fourie: Inflation is a continuous and considerable rise in prices in general. TYPES OF INFLATION In an article â€Å"What is inflation: Five types of inflation defined† by Tom Au[3], Tom argues for the following types of inflation namely (i) commodity inflation, (ii) wage inflation, (iii) monetary inflation, (iv) fiscal inflation and (v) foreign exchange inflation. I would also argue that these types of inflation constitute the â€Å"major† types of inflation in SA. However these types of inflation can be divided and sub-divided into smaller units and subunits. For the purpose of this writing I would consider the broad divisions as sufficient. (i)Commodity Inflation Commodity products such as petroleum are in many cases a reason for an inflationary spiral. Other commodities could also contribute to this type of inflation such as other metals and other solid raw materials such as copper, coal, etc. Commodity inflation, better known as cost-push inflation, refers for example to a surge in the oil price – which obviously has nothing to do with domestic consumer demand. It concerns prices set on global markets over which the Central Bank has no control. The petrol price that stems from the cost of a barrel of oil thereby creates a volatile escalation of prices of goods and services because the increase in cost for a barrel of oil is transferred to the cost of production and eventually to the cost of consumer products. For example last year in June 2008 the petrol price went up by 50 cents a litre after a 55-cent increase in April 2008. The price of unleaded petrol in Gauteng increased to 996 cents a litre and to 972 cents a litre at the coast. Diesel went up 0,05 percent; sulphur went up by 71 cents, the wholesale paraffin price increased by 71 cents. [4] Even though at that point in time the country struggled with escalating food and power prices we had another fuel price increase. The consequence of the escalating prices of petroleum and thus oil and other fuel prices caused the price of everything else to go up and thus commodity induced inflation. ii) Wage Inflation It is my estimation that the type of inflation that has the largest impact on inflation is wage inflation or in other words demand-pull inflation. Employees become aware of the rising prices and demand more money in the form of higher wages. There are numerous examples of wage strikes in South Africa. For example Barbara Slaughter[5] reports â€Å"The longest public service strike in South African history. The dispute began on June 1, when workers from 17 unions took all-out strike action in support of a demand for a wage increase of 12 percent across the board. The strike involved 700,000 workers—professional, skilled and unskilled. It received widespread support amongst the rest of the working class in South Africa. On June 13, 2007, hundreds of thousands of municipal workers took part in a one-day solidarity action in support of the strike. They included taxi and bus drivers, electricity and cleaning workers, and administrative workers from border posts and airports. On that day, all the major cities in South Africa were brought to a standstill because of mass demonstrations in support of the public service workers’ strike†. Eugene Puryear reports in his website about the same strike as â€Å" Nearly  one million hospital and education workers have been on strike†[6]. This is only one example of the impact of a wage strike on the economy of the country. How many labor hours have gone lost which impact on production and could cause a lowering in the GDP of the country. If inflation could also be defined as too much money chase to few products, then this wage strike cause a reduction on production and thus inflation. iii) Monetary Inflation It can happen that the Reserve Bank governor refuses to increase the interest rates whilst the cost of living is high. Thereby causing too much money floating the economy and people maintain demand for goods whereas the supply is not sufficient for demand causing the cost of goods to rise. There can be much confusion between cost-push and demand-pull inflation. It is noted by some business reporters like Greta Steyn that Mr. Tito Mboweni did not â€Å"recognize† the before mentioned types of inflation therefore blaming the increase in inflation to commodity inflation and asserted that inflation is caused by the foreign global economy and not domestic demand-pull inflation. Mr. Mboweni indicated that his interest rate action (increase prime rate) had already done enough to curb demand. However he did not raise enough on interest rates implying a relatively low interest rate that causes yet a strong demand for goods and thereby not curbing inflation further. The inflation rate currently is 8. 5% at present well outside 3 – 6% target. iv) Fiscal Inflation Fiscal inflation is caused when government spending exceeds revenues. Overspending cause a deficit on the balance of payments. The deficit however must be recovered by most probably the increase in income tax of public and private sectors. During the current crisis in 1996, the government introduced the GEAR strategy. GEAR’s key element are reduced government spending, also the rate of inflation, with the view to encourage private investment, economic growth, and thereby job creation. But the government reduced the budget deficit from 4,6% in 1996 to 2,6% in 2000. The average reduction over this period is 3,1%. But when government spending drop private investment spending was expected to be 11,7% by the year 2000. However private investment average a mere 1,2%. If government does not spent and private sector default on spending the result will be unemployment, economic instability as well political vulnerability. Under these conditions there will be civil demands for higher wages that could be inflationary. It is said by some that a war increase government spending. If this is the case then we wage war against ourselves in this country. (v) Foreign Exchange Inflation Foreign exchange inflation happens when the local currency falls dramatically against other world currencies, thereby sharply raising the price of imported goods and hence the overall price level. INFLATION INFLUENCING SOUTH AFRICAN ECONOMY THE MOST The three most volatile types of inflation that influence the South African economy is Wage Inflation, Commodity Inflation and Foreign exchange inflation. As seen from the examples government spending has definitely slowed down in order to decrease the deficit and thus lifting the burden on tax payers to food the bill. So for the interim fiscal inflation is kept under control. The Reserve Bank by means of monetary policy is in â€Å"control† of the money supply in the economy. If you increase money supply faster i. e. lowering the prime rate, than your economy grows, you will have too much money chasing too few goods. The price of goods will therefore increase. Thus an increase in inflation. Therefore to stabilize inflation you have to reduce the money supply and thus increase the prime-lending rate. Monetary inflation is a function of the Reserve Bank and within the control of the Governor of the Reserve Bank by means of monetary policy. SOLUTIONS FOR INFLATION 1. Contractionary Fiscal Policy If the government looks to fiscal policy to control inflation its options are (i) decrease government spending (ii) raise taxes or (iii) some combination of the two policies. (i) Decrease government spending To control demand-pull inflation the government should reduce government spending. Reduction in government spending reduces aggregate demand and thereby halts demand-pull inflation. (ii)Raise taxes By raising taxes the deposable income of consumers is reduced thereby decreasing aggregate demand, which is anti-inflationary. (iii) Combination of Decrease government spending and Raising taxes As can be expected a combination of the two may have a quicker anti-inflationary effect on consumer spending. 2. Monetary Policy The monetary policy committee is given an inflation target by the government, which is between 3% and 6%. The tool that is used by the reserve bank is to use interest rates to achieve this inflation target. Increase interest rates will help reduce the growth of aggregate demand in the economy. A reduction in aggregate demand will slow down growth and will induce a decrease in inflation rate. 3. Exchange rate policy This policy is used to keep the value of the Rand high. Resulting in a favourable market for imports. The price for imported goods will be expensive and when companies apply investment spending the cost will be transferred to the consumer. This tool to reduce inflation is not very useful because it can cause a recession. . Disposing of surpluses When the economy faces demand-pull inflation, fiscal policy should move toward a government budget surplus i. e. tax revenues in excess of government spending. But the anti-inflationary effect of the surplus depends on what the government does with it. I would suggest to the government to impound the surplus. When a surplus is impounde d the government is extracting and withholding purchasing power from the economy. Thus, there is no chance that the surplus fund will create inflationary pressure to offset the anti-inflationary impact of the Contractionary fiscal policy. B. ADDRESSING UNEMPLOYMENT INTRODUCTION According to Mohr & Fourie the second macro economic objective is full employment. However in theory full employment can be accomplished but in reality government spending and tax collection is never equal. Therefore when government is dealing with a deficit budget (government spending in excess of tax revenues) the economy is at a down turn since aggregate demand slow down and thus GDP also drops with the result of unemployment. Thus this macro economic evil must be understood in its broader sense. In this writing I will deal with the definition for unemployment then describe the different types of unemployment, the causes of unemployment, types of SA unemployment and solutions to unemployment. DEFINE UNEMPLOYMENT â€Å"Prior to 1994, the strict definition was used by Stats SA to estimate unemployment in South Africa, with the result that the official estimates were generally regarded as being too low. Stat SA subsequently switched to the expanded definition, but some observers (including the International Labour Office) regarded the new official estimates as being too high. In June 1998 Stats SA reverted to using the strict definition as the official definition, although estimates based on the expanded definition are also published. † (Mohr & Fourie, 2002:498) Statistics South Africa defines unemployment (strict definition) as those in the economically active population – (aged 15 to 65) and are either employed or seeking work, – who: i. Have not worked during the last seven days prior to being interviewed; ii. Want to work and are available to start work within a week of the interview by Stats SA; iii. Have taken active steps to look for work or to provide themselves with self-employment in the four weeks preceding the interview. However the expanded definition omits requirement (iii) because many unemployed people become discouraged after several attempts to look for employment. [7] DIFFERENT TYPES OF UNEMPLOYMENT AND THE CAUSES THEREOF The basic distinction of unemployment is between voluntary and involuntary unemployment. But the unemployment rate is expressed as the percentage of the labour force (people who are willing and able to work) that cannot find a job. Thus in reality there is only involuntary unemployment. Those that prefer by own volition to be without work cannot be regarded as unemployed. In economy the usual distinction amongst types of unemployment is between frictional unemployment, seasonal unemployment, structural unemployment and cyclical unemployment. (i)Frictional unemployment Frictional unemployment exists because of lags between workers leaving one job and taking up another and because there are times of the year when many new workers (e. g. school-leavers) enter the labour market. In these circumstances there is some delay in finding them all jobs. (ii)Seasonal unemployment Seasonal unemployment arises because certain occupations require workers only for part of each year e. g. picking and processing of food and vegetables and tourist regions that are busy during peak seasons. (iii)Structural unemployment Structural unemployment is caused by changes in the structure of an industry as a result of changes in technology or tastes. For example increasing automation in manufacturing industry, encouraged by recent developments in computer technology, has made many skills obsolete. Thus whole communities may become unemployed until new skills have been acquired. (iv)Cyclical unemployment Cyclical (or demand-deficiency) unemployment happens when there is a decline in the economy as a result of a lack of demand. A lack of demand curbs production and therefore management will try to cut costs by laying off workers, but only until demand increases then workers will be asked to come back. (v)Apart from the above mentioned causes of unemployment the following should also be mentioned In today’s economy unemployment has a variety of causes. Nevertheless some of them relate to the general level of economic activity while others are the result of a failure in the labour market in an economy to work optimally. Mohr & Fourie indicates that South African unemployment rate in the past two decades originated from the supply side of the labour market as well as from the demand side. Supply side Every year the number of school leavers are added to the labour force. Thus the growth of the labour force exceeds the demand post by the economy. The economy can absorb only a certain amount of workers especially when the growth in GDP is not sufficient to provide in jobs for the new entrants into the labour market. When the growth in the labour force is greater than the number of the opportunities, unemployment sets in. Demand side During a slump in the economy the price level of goods is high i. e. inflation is increasing. Goods and services are expensive and leads to workers demand a higher wage. In order to cut production costs and thereby keep companies profitable workers are laid off. Thus leading to wage demand unemployment. Unemployment due to inflation – the Phillips curve Inflation does cause unemployment but it need not necessary be the case. In the short term the Phillips curve happens to be a declining curve i. e. there is a negative relationship between inflation and unemployment. There is thus an increase in aggregate demand that usually lead to an increase in production and income and simultaneously increase in the price level of goods and services. And conversely a decrease in aggregate demand results in decrease in production and income and a simultaneously decrease in the price levels. But the level of production is positively related to the level of employment i. e. if production goes up then employment also increases (unemployment decreases). Therefore if economic activity is high unemployment is low, production is high, price levels start to increase and inflation begins to set in. When prices become too inflated then aggregate demand starts to decrease, but decrease in price levels does not happen immediately. Therefore the continued increase in the price levels irrespective decrease in aggregate demands leads to unemployment because manufacturing of goods slow down due to the lack of demand. The Phillips curve led many economists to believe that there could be a trade off between unemployment and inflation. In other words, a lower inflation rate could be achieved by trading it off against greater unemployment. And a higher inflation rate could be achieved by trading it off with a lower inflation rate. The abovementioned scenario explains the short-term effect depicted by the Phillip curve but the long-term effect of the Phillip curve show that unemployment and inflation are not related. In the long run when labour and capital are at full capacity, an increase in aggregate demand affect the price levels only. It is clear that this is the point where inflation increases sharply i. e. the price levels of goods and services, because of continued increase in demand, becomes so expensive that eventually demand for products drop and consequently the demand for employment also drops. Thus unemployment sets in. Stagflation In the 1970’s inflation and unemployment increases at the same time. This phenomenon is called stagflation. This is an economic problem that is twice as serious as in the case when there is a trade off between either unemployment or inflation. When it so happens that the oil prices increase by 300%, this higher energy prices would spread through the economy, driving up production and distribution costs on a wide variety of goods. It is quite obvious to understand that transport is most important in the supply chain of production especially in the upstream portion of the supply chain, which includes the company suppliers, the suppliers’ suppliers. But transport is also needed in the downstream portion of production, which consist of processes for distributing and delivering products to the final customers. [8] Hence the resulting increase in the price level because of cost-push inflation. Also real output declines while price levels rise. This means a simultaneous increase in the levels of unemployment and inflation (stagflation). SOLUTIONS TO UNEMPLOYMENT South Africa's unemployment rate rose to 23. 5% in the first quarter of 2009 from 21. 9% in the previous three months, Statistics SA said on Tuesday. (Sapa, 5 May 2009) A total of 208  000 people living in SA lost their jobs between the last quarter of 2008 and the first quarter of 2009, according to the Pretoria-based agency's quarterly labour force survey. The survey shows that losses occurred both in the formal (88  000) and in the informal (96  000) sectors. (Sapa, 5 May 2009). There is thus a more than a fifth (1/5) of people unemployed. This represents a huge cost to government and to society as a whole. Firstly I would proposed a joint government, business and labour task team to clampdown on cheap imports into SA as part of a number of measures aimed at helping local companies retain jobs and stay afloat through the global economic slowdown. These measures would aim at the following: †¢ That business pledge to do everything in its power to avoid retrenchments; †¢ Retraining people who face retrenchment and therefore become re-employed soon; †¢ Creation of jobs through the Expanded Public Works Programme i. . promote labour intensity; †¢ Discuss ways of lowering the cost of capital. However a much promising strategy would be to raise the demand for domestically produced products by increasing the demand for exports. Therefore as previously mentioned we must assist export in the following ways: (i)Assist potential exporters to find international markets, and subsidize some of these costs. (ii)All ow or engineer a depreciation of local currency against other currencies, thereby making exports more competitive. iii) Implement import restrictions i. e. tariffs and quotas. We could also reduce unemployment by stimulating and promoting small businesses and the informal sector. I believe that small businesses create more employment than larger business ventures. C. ADDRESSING INCOME DISTRIBUTION AMONGST DIFFERENT SECTIONS OF THE POPULATION INTRODUCTION Knowledge about the nature of income distribution is necessary for social development and thus for the distribution of resources where it is needed in order to create a fair society and better life for all who live in it. Nationally for any particular country society will because as a consequence of a free market society be stratify into various dimensions. Thus the conclusion â€Å"knowing the nature of income distribution† amongst the different population sections. In order to accomplish this objective I will address the following aspects of income distribution amongst the different section of the population. (i) Measurement of income distribution, (ii) General causes of differences in income distribution, (iii) Specific causes in the SA context and (iv) How can it be addressed. MEASUREMENT OF INCOME DISTRIBUTION Generally the Lorenz curve is often used to represent income distribution, where it shows for example the bottom 20% of all households have 10% of the otal income. A perfect equal income distribution would be one in which every person have the same income for example 20% of households have 20% of total income. This can be depicted by a line of perfect equality. By contrast, a perfectly unequal distribution would be one in which one person has all the income and everyone else has none. If the horizontal-axis or the Lore nz curve is the x-axis and the vertical axis is the y-axis then in a perfectly unequal distribution this curve will be call the â€Å"line of perfect inequality†. The Gini coefficient is the area between the line-of perfect equality and the observed Lorenz curve, as a percentage of the area between the line of perfect equality and the line of perfect inequality. (This equals two times the area between the line of perfect equality and the observed Lorenz curve. ) The higher the coefficient, the more unequal the distribution is. [9] GENERAL CAUSES OF DIFFERENCES IN INCOME DISTRIBUTION From all the factors of production the cost of labour as part of the GDP is the most influential, simply because it involves human beings. And human beings are the most varied and complex factor in the factors of production. In a perfect labour market all workers have the same education and training, have the same skills and earn the same wages (income). But the labour markets are not homogeneous. In fact it is imperfect and even if all the other labour markets are in equilibrium (balance between supply and demand of labour) there will be always differences in what workers earn. DOMESTIC DEMAND FOR LABOUR The most important aspect of the demand for labour is that it is a derived demand. (Mohr & Fourie, 2008:282). Domestically demand for labour will depend on production on goods and services. This means if production increases the demand for labour will also increase. Demand for products will influence the profitability of that product industry and thus the income and spending of that particular section of the population. Most countries have basically the same product mixture, but demand for the different products can differ sharply and thus will produce inequality in income amongst different sections of the population. DOMESTIC SUPPLY FOR LABOUR An increase in the wage rate will induce more people to enter the labour market and supply their services. The market supply of labour will this have a positive slope, indicating that the quantity of labour supplied will increase as the wage rate will increase. But absorption into the labour market depends on the nature of the product market, which offer that employment. As indicated previously the product industries produce different products and therefore different demands, which will lead to different wages. The different products need different skills. Therefore the discriminating factor amongst the different products will be the different skills amongst workers and thus the difference in income amongst the various sectors. FOREIGN DEMAND AND SUPPLY FOR LABOUR The Stolper-Samuelson theorem predicts that international trade influences relative factor demands and thus factor prices. [10] The basic idea of this theorem is that trade affects prices of products which in turn affect factor prices by changing relative factor demands. Once again the demand for labour will depend on supply of products and thus supply of the appropriate labour, which in turn will influence the income for various groups of income. SKILL-BIASED TECHNOLOGICAL CAUSES The single most cause of change in the income distribution is technological change. (David G. Blanchflower and M. J. Slaughter: 78) A few recent papers provide direct evidence of this technological shift and link it to wage outcomes. Berman, Bound and Griliches present several case studies that document the technological changes that have occurred in industries experiencing large shifts towards more skilled workers. According to Laudon (1998:) â€Å"†¦ over half (55 percent) of the US labour force consists of information workers and 60 percent of the GDP of the US comes from the nowledge an information sector, such as finance and publishing†. It is argued in general by many authors that skill-biased technological change is a global phenomenon. That is to say by implication that income distribution, unemployment is a consequence of jobless growth caused by technological and capital investment. SPECIFIC CAUSES IN THE SA CONTEXT The South African context from a wage inequali ty perspective is a very complex subject. One is impulsively inclined to think racial discrimination when you think about inequality in any aspect in S. A. But Mohr & Fourie point out not to ascribed most or all differences in remuneration to discrimination. However many writers would provide statistical detail from STATS SA, October household surveys to prove that the inter-racial income distribution gap over the past three decades have narrowed. But this narrowed income gap can be misleading due to poor statistics and because of rising income of an elite group of black people. Meaning a large income for the upper income group will be a misleading average on income for a specific group. The trends for unemployment and income are still highest amongst black people. The following reasons for this inequality can be extrapolated from the following data. Table1. Labour absorption rates |Category |Absorption rates | |African men |35% | |White men |68% | |African women |22% | |White women |44% | Source: UNDP human Development Report, SA. 2000) Estimations from this data indicate that the trend is that the labour market does not easily absorb African men and African women. White women not absorbed into the labour market do not mean they are unemployed. This leaves many African men and women unemployed creating income inequality between whites and blacks. Table 2. Mean monthly income (Rand) Sector |Men |Women | |Formal Average (white workers)* |7514 |4774 | | | | | |African workers | | | |Formal (urban) |2204 |2068 | |Informal (urban) |1012 |845 | |Informal (non-urban) |705 |524 | |Domestic (urban) |903 |537 | |Domestic (non-urban) |347 |397 | |Agriculture (formal) |1011 |5 99 | |Agriculture (informal) |386 |306 | |Average (African workers)* | 938. 29 * |753. 1 * | | | | | (Source: Statistics South Africa, October Household Survey, 1999) (* Own interpretation) Once again this is an estimation and extrapolation to give an indication to show the averages of income amongst whites (men R7514 p/m woman R4774 p/m) and blacks (men R938. 29 p/m woman R753. 71p/m). Table 3. Annual per household income (constant Rand): 1991 and 1996 | |African |White | | |1991 |1996 |1991 1996 | |Poorest 50% |3 005 |2 383 |35 028 |29 549 | |41-60% |9 519 |9 120 |96 444 |83 506 | |61-80% |18 497 |19 183 |155 763 |134 821 | |81-90% |33 843 |37 093 |228 018 |207 243 | |Average |12 972. 8 |13 555. 8 |103 050. 6 |91 023. 8 | (Source: UNDP human Development Report, SA. 2000) There is a slight movement in income from 1991 (R12 972. 80) to 1996 (R13 555. 80) in the African household income. There is a decrease from 1991 (R103 050. 60) to 1996 (R91 023. 80) in the White household incom e. But look at the difference in income for Blacks average in 1996 (R13 555. 80) and Whites average in 1996 (R91 023. 80). A difference of R77 468. 00. Table 4. Gini coefficient, 1975 – 1996 (1 = total inequality / 0 = total equality) | |1975 |1991 |1996 | |African |0,47 |0,62 |0,66 | |White |0,36 |046 |0,55 | |Coloured |0,51 |0,52 |0,56 | |Asian |0,45 |0,49 |0,52 | |TOTAL |0,68 |0,68 |0,69 | (Source: UNDP human Development Report, SA. 2000) Table 5. Gini coefficient estimates of income and expenditure inequality |Disposable income |Gini coefficient | |Black African |0,63 | |Coloured |0,59 | |Indian/Asian |0,57 | |White |0,56 | (Source: IES 2005/2006) * I have combined the two Gini coefficient tables 4 & 5 in the table below Table 6 to show that the Gini coefficients from 1996 to 2006 i. e. 10 years later have not change yet. This is a clear indication as to inter-racial inequality distribution in income. |* Table 6. |Gini coefficient | | |1996 |2005/2006 | |African |0,66 |0,63 | |White |0,55 |0,56 | |Coloured |0,56 |0,59 | |Asian |0,52 |0,57 | HOW IT CAN BE ADDRESSED i) Education and training Education is a responsibility of the government in so far as the provision of infrastructure i. e. training of teachers, building of schools, providing a well-structured curriculum and learning materials. But attending to the regularly attendance of learners is the responsibility of the parents. As previously indicated a great shortcoming in the labour market is that of skills. School system adopted the OBE Curriculum to make the school system more relevant to the economic conditions domestically and more competitive to the global economy. But the implementation of OBE implies the teacher/learner ratio of at least 1:25 whereas in reality it is on average 1:40, making the school system ineffective. Democracy also created a liberal education system, which undermines the discipline, which also is necessary for successful education. Therefore government spending on the school system should improve in order to address this shortcoming in the education system so that the skills needed to curb unemployment are provided. ii) The Skills Development Act, 97 of 1998 aims to develop the skills of the labour force by increasing investment in education and training in the labour market and to address the skills shortages. iii) Government intervention AFFIRMATIVE ACTION The composition of the population is not uniform with respect to race relations and cultural issues. To allow these issues of race and culture to take its own course is a recipe for disaster therefore government intervention to engineer a system that addresses the economic inequalities. Because unemployment, poverty, poor education and low social status work into the hands of social issues such as racism and cultural incompatibilities. To alleviate poverty, unemployment, poor education, a new system of affirmative action must be implemented in order to get a more equitable distribution of positions in the labour market i. e. targets to create gender equality, racial equality and cultural equality by means of affirmative action. BASIC CONDITION OF EMPLOYMENT This act, The Basic Condition of Employment Act, 75 of 1997 is to advance economic development and social justice by establishing and enforcing basic conditions of employment. D. ADDRESSING THE BALANCE OF PAYMENT DEFICIT INTRODUCTION An imbalance in a nation's balance of payments in which payments made by the country exceed payments received by the country. This is also termed an unfavorable balance of payments. It's considered unfavorable because more currency is flowing out of the country than is flowing in. Such an unequal flow of currency will reduce the supply of money in the nation and subsequently cause an increase in the exchange rate relative to the currencies of other nations. This then has implications for inflation, unemployment, production, and other facets of the domestic economy. A balance of trade deficit is often the source of a balance of payments deficit, but other payments can turn a balance of trade deficit into a balance of payments surplus. The two main components of the balance of payments are the current account and the financial account. Therefore the two basic deficits that can occur in the balance of payment are a deficit on the current account and a deficit on the financial account. When there is a deficit on the current account then imports exceeds exports and when there is a net capital inflow that exceeds net capital outflow then there is a deficit on the financial account. The question however is how will the deficits be financed. DEFICIT ON THE CURRENT ACCOUNT OF THE BALANCE OF PAYMENT Action to reduce a substantial current account deficit involves increasing exports or decreasing imports. This can be accomplished i. e. to promote exports in the following ways. (i)Keep domestic cost of production in check e. g. the demand for higher wages must be controlled. The relationship of the governments with labour unions must be of good standing so that policy can be worked out by government and unions for agreements to keep wage demands and inflation in check. (ii) Assist potential exporters to find international markets, and subsidize some of these costs. iii) Allow or engineer a depreciation of local currency against other currencies, thereby making exports more competitive. (iv)Implement import restrictions i. e. tariffs and quotas. Adjusting government spending to favour domestic suppliers is also effective. Less obvious but more effective methods to redu ce a current account deficit include measures that increase domestic savings, including a reduction in borrowing by the international government. When the country experiences a financial account surplus it can use such surplus to finance the deficit on the current account. This means there is a net inflow of foreign capital. DEFICIT ON THE FINANCIAL ACCOUNT OF THE BALANCE OF PAYMENT An imbalance in a nation's balance of payments financial account in which payments made by the domestic country for purchasing foreign assets exceed payments received by the country for selling domestic assets. In other words, investment by the domestic economy in foreign assets is less than foreign investment in domestic assets. This is generally not a desirable situation for a domestic economy. However, in the turbulent world of international economics, a financial account deficit is often balanced by a current account surplus, which is generally considered a desirable situation. If, however, the current account does not balance out the financial account, then a financial account deficit contributes to a balance of payments deficit. ACTIONS TO REDUCE A SUBSTANTIAL FINANCIAL ACCOUNT DEFICIT INVOLVES INCREASING FOREIGN DIRECT INVESTMENT The following actions have already been taken: a) Proctor & Gamble invest R200 million in new SA plant. With annual revenue of more than US$ 83 billion, Proctor & Gamble is considered the world's largest consumer goods manufacturing company. The investment in South Africa is considered to be a huge psychological victory for SA, says Business Day, in light of the current economic crisis. (Business Day 11 March 2009) (b)New trade infrastructure programme to boost business in Africa International financiers and developed nations have committed $1. billion to a new trade development programme that will open up business opportunities in eight African countries, including South Africa. (Business day 7 April 2009) (c)Mergers and acquisitions (M) in 2009 South Africa is expected to fare better than most countries when it comes to mergers and acquisitions (M) in 2009 with the region being w ell shielded from the turbulent global economy, according to merger market's South African M&A Round-up for 2008. (Business Day 20 January 2009) (d)2010 Soccer World Cup South Africa is holding the 2010 Soccer World Cup, which is a tremendous boost for foreign direct investment and employment and also for future ventures. In this manner we must promote foreign direct investment in South Africa to create a surplus on the financial account of the balance of payment. E. SURVIVING THE CURRENT WORLD ECONOMIC CRUNCH / TURMOIL INTRODUCTION GLOBAL RECESSION The Global economy is currently in a recession, as we are made aware by many economists right over the world. There are declines in growth rates in many countries in both developed and developing countries. Most notably the United States CAUSES OF GLOBAL RECESSION â€Å"In 2008–2009 much of the industrialized world entered into a deep recession sparked by a financial crisis that had its origins in: i) Reckless lending practices involving the origination and distribution of mortgage debt[2] in the United States. 3][4] ii) Sub-prime loans losses in 2007 exposed other risky loans and over-inflated asset prices. With the losses mounting, a panic developed in inter-bank lending. iii) The precarious financial situation was made more difficult by a sharp increase in oil and food prices. iv) The exorbitant rise in asset prices and associated boom in economic demand is considered a result of the extended period of easily available credit, inadequate regulation and oversight,[6] or increasing inequality. v) As share and housing prices declined many large and well established investment and commercial banks in the United States and Europe suffered huge losses and even faced bankruptcy, resulting in massive public financial assistance. i) A global recession has resulted in a sharp drop in international trade, rising unemployment and slumping commodity prices. Social unrest and political changes have appeared in the wake of the crisis. †[11] HOW FAR HAS SA WEATHERED THE RECESSION Prudent regulation of the financial sector may have partially shielded the South African economy from the vagaries of the global financial turbulence until now. At the same time, it is the combination of fiscal austerity and prudent regulation, among the ha llmarks of GEAR, which have so far helped cushion the country’s economy from the global economic turmoil. The financial services sector, despite its integration in the global economy, has so far remained resilient. The same applies to the agriculture and construction sectors, which continue to witness growth. WHAT CAN BE DONE TO WEATHER THE RECESSION MONETARY POLICY A likely immediate outcome of the current crisis is a cut or a series of cuts in interest rates by the South African Reserve Bank, which has raised them by five percentage points since July 2006. As household debt balloons locally, economists forecast further rate cuts up to 300 basis points. The hope is that rate cuts will spur consumer spending again and thereby increase aggregate demand and aggregate production. Thus increasing employment and decreasing unemployment. But interest rate cuts alone will not be adequate to revitalize the economy. According to Neva Makgetla, the lead economist for research and information at the Development Bank of Southern Africa, job losses are a certainty in South Africa, but the scale will depend on the nature of the global recession. FISCAL POLICY An appropriate government intervention would be to focus more systematically on creating employment opportunities on a larger scale. That requires measures to strengthen the efficiency of the economy overall, especially through enhanced infrastructure. It also requires more consistent institutional support and resourcing for employment-creating activities such as agriculture, manufacturing, personal and private services and construction. INFLATION Keep domestic cost of production in check e. g. the demand for higher wages must be controlled. The relationship of the governments with labour unions must be of good standing so that policy can be worked out by government and unions for agreements to keep wage demands and inflation in check. EXPORTS/IMPORTS (i)Assist potential exporters to find international markets, and subsidize some of these costs. (ii)Allow or engineer a depreciation of local currency against other currencies, thereby making exports more competitive. (iii)Implement import restrictions i. e. tariffs and quotas. South Africa should streamline immigration and taxation policies to create a more attractive environment for foreign investors as an intervention in the current crisis. This would lay the groundwork for future growth. While the taxation issue is debatable, some analysts believe that the current taxation regime is actually pro-business; the immigration system is generally seen as cumbersome and makes it difficult for skilled foreign nationals to settle in South Africa legally. However, over the past five years, the Department of Home Affairs has been addressing this issue partly by issuing quota permits to categories of skilled foreign nationals even before they got employed. CONCLUSION The economic forecast for South Africa is that the global recession may not have such a big impact on our domestic economic affairs and that we should survive the current economic turmoil provided that we keep inflation in check, foreign direct investment be promoted and stimulate exports. On the political front we hope that the transition from Mbeki government to a Zuma leadership will have a positive impact on the economy as a whole. Greater political discussion pursuing an economic perspective might stem political instability as far as wage negotiations is concerned. The stabilization of the cost of labour on the GDP will be a tremendous boost to the economy. It is my hope that the spirit of new leadership will create a new dimension in the development and stimulation of the economy of this country South Africa. BIBLIOGRAPHY 1. Bade Robin and Parkin Micheal (2008) Foundation of Economics 4th Edition. New York: Addison Wesley 2. Blanchflower David G. & Mathew J. Slaughter (1973) The Causes and consequences of income equality: L. Katz, G. Loveman and Paul R. Krugman 3. Brue Stanley L. and McConnell Campbell R. (2002) Economics: Principles, Problems, and Policies 15th Edition. US: Irwin McGraw-Hill. 4. Fourie Louis, Mohr Philip and associates (2008) Economics for South African students 4th Edition. Pretoria: Van Schaik Publishers. 5. Laudon Kenneth C. and Laudon Jane P. (2007) Management Information Systems: Managing The Digital Firm 10th Edition: Upper Saddle River, NJ. : Pearson Prentice Hall. 6. Newstrom John W. and Pierce Jon L. (2000) Leaders and the Leadership Process 2nd Edition. US: Irwin McGraw-Hill. 7. Market House Books Editors & Oxford University Press Editors (1998) The Oxford Dictionary for International Business 2nd Edition: New York: Oxford University Press Articles / Internet Sites 1. Au Tom. The Daily Reckoning: What is inflation: Five Types of Inflation defined, 15 June 2007, http://www. dailyreckoning. com. au/what-is-inflation/? /2007/06/15/, Read on 15/05/09 2. Moffatt Mike: What is Inflation – Your Inflation Questions Answered, http://economics. about. com/od/helpforeconomicsstudents/f/inflation. htm, Read on 15/05/09 3. Newser: In the News. co. za: Petrol Price to go up by 50 cents, 3 June 2008, http://www. inthenews. co. a/2008/06/03/petrol-price-to-go-up-by-50-cents/, Read on 14/05/09 4. Proctor & Gamble invest R200 million in new SA plant; 11 March 2009 New trade infrastructure programme to boost business in Africa; 7 April 2009 Mergers and acquisitions (M & A) in 2009; 20 January 2009 http://www. sagoodnews. co. za/trade_investment/proctor_gamble_invest_r20 0_mln_in_new_sa_plant. html , Read on 15/05/09 5. Puryear Eugene: One million South African workers strike, Tuesday, 26 June 2007 http://www. pslweb. org/site/News2? page=NewsArticle&id=6917&news_iv_ctrl=1781, Read on 13/05/09 6. SAPA: SA Unemployment Rises, 5 May 2009, http://www. fin24. om/articles/default/display_article. aspx? ArticleId=1518-25_2511351 7. Slaughter Barbara: South Africa: COSATU calls off public service strike, 14 July 2007, http://www. wsws. org/articles/2007/jul2007/safr-j14. shtml, Read on 13/05/09 8. Stats SA: Quarterly Labour For Survey, Quarter 1, 2009 9. Wikipedia, the free encyclopedia: Income Dsitribution, http:/en. wikipedia. org/wiki/Income_Dsitribution: Read on 16/05/09 10. Wikipedia, the free encyclopedia: Late 2000 Recession, http://en. wikipedia. org/wiki/Economic_crisis_of_2008#cite_note-1 , Read on 15/05/09 ———————– [1] http://economics. about. com/od/helpforeconomicsstudents/f/inflation. tm [2] Micheal Parkin, Robin Bade,4th Edition Foundation of Economics 2008 New York Addison Wesley [3] http://www. dailyreckoning. com. au/what-is-inflation/? /2007/06/15/ [4] http://www. inthenews. co. za/2008/06/03/petrol-price-to-go-up-by-50-cents/ [5] http://www. wsws. org/articles/2007/jul2007/safr-j14. shtml [6] http://www. pslweb. org/site/News2? page=NewsArticle&id=6917&news_iv_ctrl=1781 [7] Stats SA: Quarterly Labour For Survey, Quarter 1, 2009 [8] Laudon Kenneth C and Laudon Jane P. , 2007, [9] http:/en. wikipedia. org/wiki/Income_Dsitribution: 16/05/09 [10] David G. Blanchflower & Mathew J. Slaughter, The Causes and consequences of income equality [11] http://en. wikipedia. org/wiki/Economic_crisis_of_2008#cite_note-1

The Phases of Life Essay

We are born to this world to feel hatred, pain, happiness, heartbreak, anger, fear, sadness, being trust and distrust, devastation, love and the different phases of life. The unfairness and gladness, that’s we called life. According to Albert Einstein, â€Å"Life is like a riding bicycle. To keep your balance, you must keep moving.† Before you learn to ride in a bicycle, you must get hurt first but it doesn’t mean you’ll stop doing it because hurt can make you stronger and braver. The two wheel represent your life, sometimes your up, sometimes your down. Always remember that those wheel has no edges, means you must keep going even if your on the road that full of stones. Stones represent challenges; you must be brave and have trust in yourself. That is life, in every disappointment you’ll get and every happiness you’ll take, you must keep moving. Just like when my innocent’s lost, I’m slowly facing the real meaning of life. Way back when I’m inside my mothers’ womb. I’m naive, unfleshed and my body and my soul covers innocence. My brain begins to go through development changes. At the age of 6, when my mind develops and I reach childhood, there were no computer games, no cable TV and definitely no internet. But, we did have a wild and creative imagination and playing with my sister and friends at our province. I experienced my childhood momentous memories with my best childhood friends at our province. Me and my sister guarded by my caring grandmother and cool three uncles. My parents are working here at Manila for us. I’m contented with my life back then, playing Rock-Paper-Scissors, Patintero, Chinese Garter, hide and seek, strolling in our neighbours’ friends and finding ghost house, sleep over, roaming in plaza, walking along the river, playing with my three handsome uncles, going to market with my lovely grandmother, storytelling with my superb auntie, eat so much food because you don’t care what will you look like when you get fat, you don’t care with your body and how your hair looks like. You always look like a mess after playing outside the street, you don’t care how your dress smells. It seems like everyday in your life feels perfectly. The only time you feel down when your still a child is scolding by your guardian and start crying not realizing that they are only advising. Your always alert to hide when  they already have a piece of slipper or belt. Every time you remember the past memories and the funny things, you keep asking to yourself â€Å"Did I really do that?†. You will miss the stupidity things you did in the past. Less problems, free from complicated life and your still innocent. Everthing in this world will change. Our life is temporary so live your life to the fullest. You don’t know what will happen in the near future. Just like my life, many things has changed. Many years passed, after I leaved at my province and since 7 years old I already here at Manila with my parents to continue our study. I lost my communication with my childhood friends. Because of environment I’m living today, I found new friends and bestfriends. We forgot each other. They all still together but me and my sister separates between our friendship. This is life so we must accept all changes. When I was 10 years of age, my eyes and my mind opened in the unfairness of life. I saw how my mother felt broken and devastated when my father cheated on her two times. I saw her how she cries a lot. How my grandmother in Manila discriminates us when we was younger. How my cousins ignored and disrespect us. How my parents suffer when my younger sister always at the hospital in the middle of strong typhoon. This stage of life you’ll see the difference between real friends and fake friends, the respectable and disrespectable person you will encounter. If others respect you, respect them. If they disrespect you, still respect them. Do not allow the actions of others decrease your good manners, because you represent yourself, not others. Stop trying to please everyone to respect you, they will respect you if you are worthy respected. In the year 2013, the most important lesson I learned in my life is to gain happiness. Despite of all challenges, trials, past memories, unexpected thing, random people you met in your life that leaves a mark and to the people who leaves you, always remember that some people go but some people replace in your life. There is one person who will change your poor attitude, accepts all your flaws and still love you whatever your past is. In life, there are always be unexpected things and problems happened. We  come across many challenges that we want to end our life. That we think that there is no solution to our problem. Were not realizing that nothing in this world is bigger than God. In any decisions we will take, we must take the consequence and learn from it. We need how to handle it correctly and properly. Majority of us want to give up but the one who won’t give oneself up will be the ones to face the brighter side in the darker side of the day. Just like our life is like a riding bicycle, to keep your balance, you must keep moving. In order to be healthy emotionally and mentally, you should move past any bad memories. And look towards the future. I also think it might be about not over thinking things as well. At the end of the road your taking off, that is your future. Believe in yourself, your confidence will lead you to success and happiness. Don’t be afraid to get hurt, because getting hurt is a big part of your life. If you don’t have ups and downs in life. It simply means your dead.