Causes of Currency Crises and Banking Crises

Causes of Currency Crises and Banking Crises Introduction Based on my readings, I have found that currency crises often accompanied by banking crises or banking crises preceded by currency crises or even has no significant relationship between the two. So, why are currency crises often accompanied by banking crises? In this paper, I will discuss on how such problem may occur based on historical perspective, in which the countries that have experienced Twin Crises. The next issue is  the effectiveness and desirability of capital controls as a means by which developing countries can manage sudden capital inflows and/or outflows. This is where the credibility of capital controls are being challenged whether such restriction should be taken into a serious consideration for the policymakers to implement. It is important to analyse these economic situations due to past economic disasters in which the issues stated were significant in the 1994 Mexican peso crisis, 1997 Asian Financial crisis and the 1998 Russian financial crisis. Twin Crisis The simultaneous occurrence of currency crises and banking crises is known in economic term as Twin Crises, introduced by economists Carmen Reinhart and Graciela Kaminsky in the late 1990s. This phenomenon became a common problem in financially liberalized emerging market economies in the 1990s which started with the  1994 Mexican crisis, followed with the 1997 Asian financial crisis  and the  1998 Russian financial crisis. Kaminsky and Reinhart (1999) did an extensive research on the relationship between financial and banking crises for 20 countries and over a 25-year sample and found that banking crises often precede currency crises. The mechanism basically relies on two features. Firstly, governments hold a fixed exchange rate system and secondly, a mismatch between domestic assets and foreign liabilities by domestic banks, thus, exposing to exchange rate risks( Goldstein, Itay 2005 ). A currency crises, also known as the Balance of Payment crises,is a situation in which a nation is suffering from a chronic balance of payment deficit. This problem exists when a nation is unable to finance the imports and debt repayments. The country’s central bank would be in a doubtful position whether, given the fixed exchange rate, it has sufficient foreign exchange reserves to maintain the value of domestic currency. Government often intervenes by using the countrys own currency reserves or its  foreign reserves to satisfy the excess demand for a given currency ( Wikipedia, 2014 ). It came to a period when these emerging market economies were experiencing rapid economic growth, creating massive capital inflows, which will then lead to the crises. A banking crises, however, is a financial crisis that affects banking activity which includes bank runs, banking panics and systemic banking crises, in which a country experiences a large number of defaults and financial institutions face difficulties repaying contracts. A bank run occurs when depositors believe that the bank may fail which led them to withdraw all of their deposits from that bank. This causes the banking system to be insolvent if it cannot pay its debts as they fall due. Insolvency can be defined as the inability to pay ones debts. Cash flow insolvency, or a ‘lack of liquidity’ may occur as well when the bank might end upowingmore than itowns or is owed ( postivemoney.org, n.d ). Twin Crises started off when investors begin to lose their confidence as the massive capital inflow in the country creates uncertainty among investors in which the debt their capital is generating. The country’s currency will be at stake as the resulting outflow of capitals created by investors as they withdraw all of their funds will devalue the affected nation’s currency. Firms of the affected nation who have received the inbound investments and loans will suffer, as the earning of those firms is typically derived domestically but their debts are often denominated in a reserve currency ( Kallianiotis, 2013 ). Once the nation has exhausted its foreign reserves trying to support the value of the domestic currency, government can raise its interest rates to try to prevent from further decline in the value of its currency. While this helps those with debts denominated in foreign currencies, it generally further depresses the local economy as high interest rate usually enc ourages saving and discourages investment. Real-World Financial Crises The 1997 Asian financial crisis was a period of financial crisis which affected many economies in the East Asia. It began in Thailand when they had accumulated a massive foreign debt. In the effort to support the value of baht, the government had no choice but to float the Thai baht due to insufficient of foreign currency reserves, reducing peg against the US dollar. Until 1999, economies in South East Asia enjoyed a prosperous period as they had received large inflow of money. High interest rates in emerging economies attracted many investors due to the fact that it may give a high return for the investors. As a result, price of assets in these countries began to rise at an alarming rate which created insecurity among investors. Lenders started to withdraw all of their funds at a large scale, creating credit crunch and bankruptcies. Furthermore, there was a depreciative  pressure on their exchange rates as the supply of currencies of the crisis countries was high in the exchange market. Governments from these countries had to intervene in the exchange market. To prevent any loss in value of domestic currency, they had to raise domestic interest rates by buying up any surplus of the domestic currency. The Mexican government’s move to devalue the peso against the US dollar created an outburst which led to the Mexican peso crisis in 1994. In order to maintain in the value of peso, the Mexico’s central bank allowed the peso to free float within a narrow band against the US dollar through an exchange rate peg ( Wikipedia, 2014 ). Furthermore, the central bank would constantly intervene in the open market by purchasing or selling the pesos. The central banks intervention involved issuing new short-term public debt instruments denominated in U.S. dollars, using the borrowed dollar capital to purchase pesos in the foreign exchange market, will cause an appreciation in its value. Since the peso is reckoned to be increasing in value, the high purchasing power by domestic businesses, firms and consumers created an incentive to purchase more imported goods, resulting in a large trade deficit. Speculations regarding the over-valuation of peso began to circulate which encouraged investors to purchase more of U.S assets. It will be more profitable for investors as they will be able to capitalize the high exchange rate when they exchange dollars for pesos later. The resulting capital outflow from Mexico to United States caused a capital flight which put a downward market pressure on the value of peso. To curb this issue, newly inaugurated President Ernesto Zedillo in 1994announced the Mexican central banks devaluation of the peso between 13 and 15 percent. Due to the unpredictability of Mexican policymakers, investors felt insecure and afraid of further devaluations in the currency, putting an upward market pressure in the interest rates and a further downward pressure on the value of peso. Foreign investors began to rapidly withdraw their capital from Mexican investments due to possible devaluation of peso. As a result, the Mexican central bank had to raise the interest rates to prevent from capital flight. Capital Flows Capital flows is simply defined as the transaction of real and financial assets and it is recorded in the capital account. When a country has a deficit in the capital account, it means the country is experiencing a capital outflow, like Japan. The country is supposedly purchasing more assets or making more loans or both at the same time, thus accumulating net claims on other countries. It is a situation in which it is undesirable to the economy. Contrarily, if the country is having a surplus in the capital account, depicting capital inflows, it is said that other countries are accumulating claims on that particular country. Capital flows provides many great economic advantages. Countries are now able to â€Å"catch-up† with the advancement of other countries by capitalizing on their differences. Capital flows enables residences of different nations to invest in other countries by engaging in inter-temporal trade, allowing them to reap benefits or profits for future consumption. Be it an economic boom or recession, optimum level of national consumption or expenditure is vital in every economy. Thus, capital flows helps to prevent from a fall in national consumption in case of an unexpected economic downturn, by selling domestic assets or borrowing from the rest of the world. Thus, overall improvement in economic performance can be achieved as it will aid substantially in terms of productivity and efficiency. Free capital mobility may seem desirable, though, in reality it comes at a cost. Given the exchange rate, developing countries or emerging market economies tend to acquire more assets by purchasing a massive amount of goods and services than the rest of the world. This is due to several reasons. These countries may not be on par in terms of economic performance, efficiency as well as resources compared to the rest of the world. Besides, it may be due to fluctuation in the world price of commodities. The implementation of expansionary economic policy by government will increase the demand for imports. As a result, appreciation of foreign currency will occur due to high demand of foreign goods and at the same time, a depreciation in own currency due to a low demand for domestic commodities. Since government would want to hold a fixed exchange rate regime, they can implement a contractionary monetary policy, a method of selling domestic bonds which increases the domestic interest rate, in order to maintain the value of domestic currency. The demand of domestic currency will be improved which will increase the value of domestic currency. Again, it proves to be costly as high interest rate will discourage investment, since it is now more expensive to borrow from the bank, reducing a potentially larger economic growth. This shows that free flow of capital may cause an upward pressure in the value of currency which may jeopardise local firms, making them less competitive in the global market. Emerging market economies are the usual target for â€Å"hot money† with sudden injection or withdrawal of funds, thus, creating distortion or instability in the market. Large volumes of capital inflows on search for higher yields causes dislocations in the financial system. Foreign funds might fuel asset price bubbles, encourage excess risk taking by cash-rich domestic intermediaries ( Magud, Reinhart Rogoff, 2005 ). Having a strong and independent monetary policy is more viable than sustaining free flow of capital. Due to potential harmful effects of free flow of capital to the economy, capital controls is introduced to prevent such consequences from happening. A capital control is any policy designed to limit or redirect capital account transactions and may take the form of taxes, price or quantity controls, or outright prohibitions on international trade in assets ( Neely, Christopher J. , 1999 ). Capital Controls There are two types of controls which are the controls on inflow and outflow of capital. Like Malaysia during the Asian financial crisis in the late 1990s, control on capital outflows was introduced to supposedly generate revenue, correct balance of payment deficit as well as preserve savings for domestic use. Control on capital inflows, used by Chile during the Latin American debt crisis, was used to prevent potential volatility inflows, financial destabilisation and real appreciation as well as correcting balance of payment surplus and limit foreign ownership of domestic assets. This shows various type of capital controls are targeted at specific type of movement. The question is, how effective capital control is and to what extent should it be implemented ? During the Asian Financial Crises, Malaysian government imposed controls on outflows in 1998 by pegging the exchange rate at RM 3.80 for every US dollar. Their objective was to delay from exhaustion of foreign reserves and provide as much time possible for policymakers to implement reflationary policies as well as eliminating speculation against the ringgit. Malaysia’s stock market capitalization ratio at 310 percent of GDP, compared to 116 percent in the U.S., and 29 percent in Korea and domestic debt-GDP ratio at 170 percent were, at the time, highest in the world (Perkins and Woo, 2000). In response to the crisis, Malaysian government raised the interest rates to stem the decline of the ringgit and restructured their expenditure by reducing it by 18 percent ( Ethan Kaplan and Dani Rodrik, 1999 ). However, the economy showed no sign of improvement. Their effort to reduce domestic interest rates seemed to be pointless as speculation against the ringgit in offshore markets was circulating widely. The speculation lead to the borrowing of ringgit at premium rates to purchase dollars, which created a devaluation pressure on ringgit. Worried of capital flight and further depreciation of the currency, the Malaysian government also banned for a period of one year all repatriation of investment held by foreigners. Malaysia also lowered the 3-month Bank Negara Intervention Rate from 9.5% to 8% and the liquid asset ratio was reduced from 17% to 15% of total liabilities ( Ethan Kaplan and Dani Rodrik, 1999 ). On February 15th, 1999, the Central Bank of Malaysia changed the regulations on capital restrictions, shifting from an outright ban to a graduated levy and replacing the levy on capital with a profits levy on future inflows ( Ethan Kaplan and Dani Rodrik, 1999 ). After the imposition of capital controls in 1998, Malaysia showed a strong and quick revival from the Asian financial crisis. The fact that Korea and Thailand, which had opted for IMF’s progra mme, recovered remarkably suggesting that capital controls imposed in Malaysia did not make any significant difference than the IMF’s financial aid. Chile seemed to favour controls on capital inflows and been relying on it in two different occasions (1978-82 and 1991-98). The effectiveness is questionable, however, as in 1981-82 Chile went through a currency crisis despite with controls and restrictions. The peso was devalued by almost 90 percent and a large number of banks had to be, bailed out by the government ( Edwards, Sebastian 1999 ). The controls were being reintroduced in 1991 with the objectives of slowing down the volume of capital inflows into own country, reducing the real exchange rate appreciation resulted from these inflows, allowing the Central Bank to maintain a high differential between domestic and international interest rates. In 1984, Chile has adopted a slightly flexible exchange rate system, where the peso-dollar rate was allowed to fluctuate within an upward-moving band. The authorities argued that by maintaining domestic (peso) denominated interest rates above international rates, inflation would decline gradually (Massad, 1998). This policy mix worked relatively well until the late 1980s, when Chile regained access to international financial markets, and capital began to flow into the country putting pressure both on the real exchange rate and domestic interest rates ( Edwards, Sebastian 1999 ). By early 1990, domestic firms were considerably affected, as the rapid strengthening of peso has reduced their level of competitiveness and profitability. To sum it up, the effectiveness of Chile’s controls on capital inflows has been overestimated. After the controls were imposed, the maturity of foreign debt contracted by Chile increased significantly. The evidence suggests more than 40 percent of Chile’s debt to G-10 banks had a residual maturity of less than one year ( Edwards, Sebastian 1999 ). Although the policy affected the composition of capital inflows, it did not reduce the total volume of aggregate flows moving into Chile during the 1990s. The controls on inflows had no significant effect on Chile’s real exchange rate in which it appreciated by approximately 30% during the 1990s. The controls had a short term effect on domestic interest rates. The magnitude of the effect was very small, however, raising the question of whether the central bank’s ability to undertake independent monetary policy really enhanced by the controls on capital inflows ( Edwards, Sebastian 1999 ) . Conclusion Control on inflows seems to be more favourable among authors and economists than those on outflows. Controls on outflows usually create corruption as it easier to evade than the inflows (Reinhart and Smith, 1998; Eichengreen, et al. 1999). If there is an anticipation in the depreciation of domestic currency, this creates an incentive for investors to evade controls on outflows to prevent from losses.When faced with the prospect of a major crisis, the private sector finds ways of evading the controls, moving massive volumes of funds out of the country. Controls on capital outflows have resulted in corruption, as investors try to move their monies to a â€Å"safe haven.† In almost 70% of the cases were controls on outflows were used as a preventive measure, there was a significant increase in â€Å"capital flight† after the controls had been put in place. Cuddington (1986) reached a similar conclusion in his study on the determinants of capital flight in developing countr ies. Evading controls on inflows, however, proved to be less beneficial among investors as investing in other countries would be less viable compared to domestic return. REFERENCES : L. Kaminsky, Graciela and M. Reinhart, Carmen (1999) The Twin Crises: The Causes of Banking and Balance-of-Payments Problems Vol. 89 No. 3 Online at :  http://home.gwu.edu/~graciela/HOME-PAGE/RESEARCH-WORK/WORKING-PAPERS/twin-crises.pdf Accessed 20 December 2014 Goldstein, Itay (April 2005) Strategic Complementarities and the Twin Crises Economic Journal. Online at :  http://www.res.org.uk/details/mediabrief/4392181/Explaining-Twin-Financial-Crises.html  Accessed 20 December 2014 Tornell, Aaron (2002) Twin Crises The National Bureau of Economic Research Online at :  http://www.nber.org/reporter/winter02/tornell.html Accessed 20 December 2014 J. Neely, Christopher (1999) An Introduction To Capital Controls Online at :  http://research.stlouisfed.org/publications/review/99/11/9911cn.pdf Accessed 27 December 2014 Baba, Chikako and Kokenyne, Annamaria (2011) Effectiveness of Capital Controls in Selected Emerging Markets in the 2000s IMF Working Paper Online at :  https://www.imf.org/external/pubs/ft/wp/2011/wp11281.pdf Accessed 27 December 2014 Edwards, Sebastian (1999) HOW EFFECTIVE ARE CAPITAL CONTROLS? The National Bureau of Economic Research Online at :  http://www.nber.org/papers/w7413.pdf Acccessed 27 December 2014

Is Xenotransplantation an Ethical Solution or Disaster? Essay -- essay

Is Xenotransplantation an ethical solution or disaster?   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  The audience for this paper is comprised of those readers looking to gain knowledge on the issue of xenotransplantation. This group of people is unaware of the dynamics of the ethical arguments surrounding this current issue. This audience does not have a specific age or belief, reflecting the varied positions of the argument. Due to this hunger for factual information, they do not wish to have someone else’s views imposed on them. Instead, they wish to define and establish a view of their own.   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ethical debates frequently occur today because of advances in society, technology, science, and many other areas. These arguments are comprised of many people due to the diversity of their interpretations of ethics in these areas. Ethics can be defined as â€Å"a system of moral, scruples, principles or values that in itself defines what is right or good behavior† (Shankarkumar, 317). The issue involving xenotransplantation, the sharing of organs between different species, has become a controversial subject with disagreements focusing on the ethical perspectives of the surgery. In order to comprehend the numerous ethical arguments surrounding xenotransplantation, the following three parties must be viewed: physicians, both for and against the surgery, and society.   Ã‚  Ã‚  Ã‚  Ã‚  Xenotransplantation is defined as â€Å"transplanting cells, tissues or whole organs from one species into another† (Baker, 643). These transplantations involve organs such as the heart, kidneys, and many others. Today, pigs have quickly become the donor species due to their anatomical and economical advantages. Pigs grow and reproduce very rapidly, creating a large litter, increasing the number of subjects for donation. Also, their organs and blood vessels are similar in size to those of humans, making their use more practical than that of an anatomically larger species (Baker, 643).   Ã‚  Ã‚  Ã‚  Ã‚  The concept of xenotransplantation has been attempted many times throughout history. In 1682, doctors repaired the skull of an injured Ru... ...y). â€Å"The Ethics of Xenotransplantation.† The Ethical   Ã‚  Ã‚  Ã‚  Ã‚  Spectacle. Oct. 2004. http://www.spectacle.org/0201/xeno.html. Shankarkumar, U. â€Å"Xenotransplantation- Ethics and Immunological Hurdles.† Indian   Ã‚  Ã‚  Ã‚  Ã‚  Journal of Medical Sciences 57. 7(200): 311-318. Society, Religion & Technology Project. (2004). â€Å"The Ethics of Xenotransplantation.†   Ã‚  Ã‚  Ã‚  Ã‚  Church of Scotland. http://www.srtp.org.uk/xennuf03.shtml. Trzepacz, Paula T., DiMartini, Andrea F. The Transplant Patient. Cambridge, United   Ã‚  Ã‚  Ã‚  Ã‚  Kingdom: Cambridge University Press, 2000.   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Works Consulted Shelton, Wayne. The Ethics of Organ Transplantation. 1st ed. Amsterdam; New York:   Ã‚  Ã‚  Ã‚  Ã‚  Elsevier Science, 2001. Wolstenholme, G.E.W., O’Connor Maeve. Ethics in Medical Progress: with special   Ã‚  Ã‚  Ã‚  Ã‚  reference to transplantation. Boston, MA: Little, Brown and Company, 19

What Is a Data Warehouse

Question 1 What is a data warehouse? What problems does it solve for a business? A data warehouse is a place where data is stored for archival purpose, analysis purpose. Usually a data warehouse is either a single computer or many computers servers tied together to create one giant computer systems. Data warehouse solve a lot of problems to companies as it helps to structure files and avoid unnecessary duplication of data.Data warehouse also allows to easily updating data and encourages management to regard data as a resource that must be properly managed just as any other resources. Question1B What do you see as the benefits of using a web-like browser to access information from a data warehouse? The benefits of using a web browser to access information from a data warehouse is that it allows users to have access to different search engines and opens up different links with the relevance key search. Some results will be more complete than others as they have different ways of indexi ng websites.Using a web browser to access information from a data warehouse is also useful as the links give you access to images and videos which interact users but can also slow down the logon level of speed operations meaning that the data warehouse is accessed at a fast speed. Question2 The SAP system is a collection of software that performs standard business functions for corporations. Here are some applications developed by SAP for consumers use, they are regrouped into categories of utilities[1]. Financials applications The SAP Financials applications contain all of the functionality needed for enterprise-wide financial management. These include: Financial Accounting (FI), Provides a complete financial accounting solution, including income statements, balance sheets, journals, ledgers, and all areas of financial accounting. †¢ Enterprise Controlling (EC): Assists in controller tasks. †¢ Capital Investment Management (IM): Assists finance organizations in their capi tal investments and tracking. †¢ Controlling (CO): Assists the controller organization. †¢ Treasury (TR): Assists with transactions related to the U. S. Treasury. Human Resources applications †¢ Personnel Administration (PA): Assists with all areas of personnel administration, including applicant tracking and personnel history. Personnel Development (PD): Assists with training and educational status of employees. These systems handle all of the mundane HR tasks, such as personnel and payroll, and also a number of more esoteric HR functions, such as seminar and convention management. Logistics applications The SAP Logistics applications include SAP's most popular modules. †¢ Materials Management (MM): Manages raw materials, inventory, and all aspects of goods manufacturing. †¢ Production Planning (PP):Offers sophisticated tools for planning large production environments. General Logistics (LO): Manages logistics for companies that require large-scale deployme nt of goods and resources. †¢ Sales and Distribution (SD): Manages the inventory and distribution of finished goods. †¢ Plant Maintenance (PM): Manages the resources required for large manufacturing plants. †¢ Quality Management (QM): Captures and maintains quality control for manufacturing environments. †¢ Project System (PS): Assists with the scheduling of project tasks and interdependencies between tasks. ;; Oracle is the leading company in a leading software development and provides usiness with systems and information with reliable, secure, and integrated technologies[2].These software’s include: †¢ Agile Link-to-SAP XI: Agile Product Collaboration provides a comprehensive solution to manage bill of material (BOM), item, and engineering change order (ECO) data necessary for product content collaboration across the manufacturing supply chain. †¢ Oracle Communications for SAP RM-CA Manage: SAP RM-CA Manager integrates the BRM billing platform with SAP Revenue Management–Contract Accounting (SAP RM-CA), a revenue management system that SAP offers to the telecommunications industry Siebel Connector for SAP R/3: The Siebel Connector for SAP R/3 supports both synchronous and asynchronous transactions across application boundaries. The resulting consistency of data provides efficient coordination between front and back-office operations. †¢ Oracle Business Intelligence Applications (BI Apps) are prebuilt BI solutions that deliver intuitive, role-based intelligence for everyone in an organisation that enable better decisions, actions, and business processes.Based on best practices, these solutions enable organisations to gain greater insight and value from a range of data sources and applications including Oracle E-Business Suite, PeopleSoft, Siebel, and third party systems such as SAP. †¢ Imaging ; Process Management (I/PM), part of the Stellent assets, provides organizations with a scalable solution focused on process-oriented imaging applications and image-enabling enterprise applications.With I/PM, organizations can quickly integrate their content and processes directly with Oracle and other third party enterprise applications, such as EBS, PeopleSoft Enterprise, JD Edwards Enterprise One and JD Edwards World, Microsoft Business Solutions, SAP, Lawson, and Baan. Here are the advantages of these two very competitive companies in the industry of enterprise application software reported by Eweek[3]. Oracle advantages |Control of the Oracle database | |Without data, enterprise applications are little more than empty containers.As the Oracle database platform evolves, it is | |becoming the data management system for enterprise applications. | | | |More open environment | |Oracle has done a better job of embracing Web- and Java-based application development paradigms that are familiar to a broader| |number of developers. | | |Customers relationship management | |Due to its acquisitions of Siebel and PeopleSoft, Oracle has a deeper knowledge of business processes, driven more often than | |not by front-end CRM (customer relationship management) applications. | | | |Middleware | |Oracle isnt that much better than SAP in this category, but at least Oracle has recognized its weakness in the middleware area| |enough to try and acquire BEA. | | |Mid market channel | |Oracle has a stronger history in the channel than SAP, and, as such, has a better ability to leverage third-party solution | |providers in the small and midsize business market. | | | |Flexibility | |Oracle is a little more flexible in its approach to the business processes it will support, compared with the more | |hierarchical SAP model. | | |Global development Team | |Oracle development teams work together around the globe with relatively equal levels of autonomy. | | | |More third party application | |Years of working with ISVs on its database have created a stronger Oracle ecosystem. | | |Stronger OEM par tnership | |The Oracle database is a critical piece of enterprise software driving server sales for Dell and Hewlett-Packard (and making | |the latter companys sales force an extension | SAP advantages Legion of consultants | |A large army’s worth of business consultants owe their professional existence to SAP and help keep SAP the market leader. | | | |CIO loyalty | |Many CIO’s3 have invested millions of dollars in SAP and have staked their careers on its continued success. | | |Partnership with IBM | |IBM is probably one of the largest resellers of SAP software, on top of DB2 databases. | | | |Partnership with Microsoft | |Although SAP has ambitions in the SMB space in which Microsoft sells its own applications, a marriage of convenience results | |in a lot of Microsoft Office-to-SAP enterprise application work. | | |Open source | |Although SAP would balk at the idea of open-source application software, it provides tons of resources for the development of | |open-sou rce infrastructure software—making more money available for SAP software. | | |Business Process Integration | |Years of work in this area have resulted in a depth of expertise that is difficult to replicate. | | | |Global Footprint | |SAP has extended its enterprise application customer base around the world. | | |German Engineering | |Although it is sometimes seen as overly rigid, a reputation for attention to detail works in SAPs overall favor. | | | |Vertical market penetration | |Compared with Oracle, SAP has had more time to gain expertise across a broader array of industries. A recent Forrester research paper[4] found that Oracle has a strong middleware platform and better support of open standard and as such it is the right choice for customers who rely heavily on custom development in conjunction with packaged applications. The reporters Wang and Rymer asserted that companies in the high-tech manufacturing market segment would likely be better off with Oracle while co mpanies in the pharmaceutical and utilities industries would be more likely to choose SAP.In the light of this report my choice between theses systems will be based on the targeted market segment, in other words I will select the vendor that best suit my business activity. So therefore, I will select Oracle enterprise application if my company focuses on high-tech or with heavy reliability on custom development in conjunction with packaged applications. My choice in the other case will be to go for SAP if my business is found in the utilities industries or pharmaceutics. Making these choices will surely enable great customers satisfaction since they provide employees with the best equipments to serve these customers.Question3 Week 4 Lecture summary relating to: Data base models A data base model is a theory or specification describing how a data base is structured and used . several models have been suggested: The Hierarchal model is organized in to a tree like structure aiming to k eep data in an organized manner. This structure allows one relationship between two types of data i. e the parent child relationship, the child may have only one parent but the parent can have many children’s. The Network model organizes data using two fundamental records and sets.In other words the network model allows a many to many relationship meaning that the program maintains a current position and navigates fron one record to another by following relationships in which the record participates records can also be located b supplying key values. ( we have seen that most data bases used on man frame and minicomputer are based on the network or the hierarchal model. Relational model 3 key terms are widely used in the relational data base model these are relations , attributes and domain. A relation is theh colum and rows the named colums of the relations are called attributes and the domain is the set of values.The relational model was introduced as a way to make data base management system more independent. The structure of the relational model is a table where rows and columns of the tables are related. Database Development Entity modeling Entity relationship diagrams and entity relationship model illustrate the correlation and its nature between entities. The entities identifies the needs of the business and holds information of it all, with this method the relationship may be one to one or one to many. There are diverse benefits to the entity relationship modeling as it gives a specified picture of the current and requested system data.Normalization Normalization is the procedure of removing duplication of data. Normalization is also the process of verifying by making sure that there are no problems when updating the database and the operations on the various relations will not lead to conflicting and incorrect data. Part 2 Question1 (iii) What is the role of entity-relationship diagram and Normalization in database? Normalization and ERM are use ful techniques for data management because normalization is the process of organizing data to minimize duplication, it usally divides a database into two or more tables defining relationships between the tables.The objective of normalization is to isolate data so that additions, deletions, and modifications of a field can be made in just one table and then spread through the rest of the data base via the defined relationships. I. e the customers number is related to its matching customers name and matching customer order. Therefore ERM and Normalization techniques ensure that data is well organized so that when updating some data you face no duplications or error. Data modeling is the process of creating a logical representation of the structure of a data base because it provides a unified view of data which is independent of any model.

What They Are and How They Were Formed

What They Are and How They Were Formed The word pluvial is Latin for the word rain; therefore, a pluvial lake is often thought of as a formerly large lake created by excessive rain paired with little evaporation. In geography though, the presence of an ancient pluvial lake or its remnants represents a period when the worlds climate was much different from present-day conditions. Historically, such shifts changed arid areas into places with extremely wet conditions. There are also present-day pluvial lakes that show the importance of various weather patterns to a location. In addition to being referred to as pluvial lakes, ancient lakes associated with former wet periods are sometimes put into the category of paleolakes. Formation of Pluvial Lakes The study of pluvial lakes today is mostly tied to that of ice ages and glaciation as the ancient lakes have left distinct landform features. The most prominent and well studied of these lakes are usually related to the last glacial period as this is when they are thought to have formed. Most of these lakes formed in arid locations where there was initially not enough rain and mountain snow to establish a drainage system with rivers and lakes. As the climate then cooled with the onset of climate change, these dry locations turned wet because of different air flows caused by the large continental ice sheets and their weather patterns. With more precipitation, stream runoff increased and began to fill the basins in the formerly dry areas. Over time, as more water became available with the increased moisture, the lakes enlarged and spread across places with lower elevations creating enormous pluvial lakes. Shrinking of Pluvial Lakes Just as pluvial lakes are created by climate fluctuations, they are also destroyed by them over time. For example, as the Holocene epoch began after the last glaciation temperatures around the world rose. As a result, the continental ice sheets melted, again causing a shift in world weather patterns and making the newly wet areas once again arid. This period of little precipitation caused the pluvial lakes to experience a drop in their water levels. Such lakes are usually endorheic, meaning they are a closed drainage basin that retains precipitation and its runoff but it does not have a drainage outlet. Therefore without a sophisticated drainage system and no incoming water, the lakes began to gradually evaporate in the dry, warm conditions usually found in their locations. Â   Some of Today’s Pluvial Lakes Though the most famous of todays pluvial lakes are significantly smaller than they used to be because of the lack of precipitation, their remnants are important aspects of many landscapes around the world. The United States Great Basin area is famous for having the remains of two large pluvial lakes Lakes Bonneville and Lahontan. Lake Bonneville (map of former Lake Bonneville) once covered nearly all of Utah as well as portions of Idaho and Nevada. It formed about 32,000 years ago and lasted until approximately 16,800 years ago. Lake Bonnevilles demise came with reduced precipitation and evaporation, but most of its water was lost as it overflowed through Red Rock Pass in Idaho after the Bear River was diverted to Lake Bonneville following lava flows in the area. However, as time passed and little rain fell into what remained of the lake, it continued to shrink. The Great Salt Lake and the Bonneville Salt Flats are the largest remaining portions of Lake Bonneville today. Lake Lahontan (map of former Lake Lahontan) is a pluvial lake that covered nearly all of northwestern Nevada as well as parts of northeastern California and southern Oregon. At its peak about 12,700 years ago, it covered approximately 8,500 square miles (22,000 square kilometers). Like Lake Bonneville, Lake Lahontans waters gradually began to evaporate resulting in a drop in lake level over time. Today, the only remaining lakes are Pyramid Lake and Walker Lake, both of which are located in Nevada. The rest of the lake’s remnants consist of dry playas and rock formations where the ancient shoreline was. In addition to these ancient pluvial lakes, several lakes still exist around the world today and are dependent on an areas precipitation patterns. Lake Eyre in South Australia is one. During the dry season portions of the Eyre Basin are dry playas but when the rainy season begins the nearby rivers flow to the basin, increasing the lake’s size and depth. This is dependent though on the seasonal fluctuations of the monsoon and some years the lake can be much larger and deeper than others. Todays pluvial lakes represent the importance of precipitation patterns and the availability of water for a locale; whereas the remains of ancient lakes show how a shift in such patterns can alter an area. Regardless of whether or not a pluvial lake is ancient or still existing today though, they are important components of an area’s landscape and will remain so as long as they continue to form and later disappear.

How to Become a Forester - Career Path

How to Become a Forester - Career Path This is the second in a three part series on becoming a forester. As I mentioned in the first feature, there is a structured set of courses you must have from an accredited forestry school to become a forester. However, when you finish your four year degree, the practical applied learning process begins. Working conditions vary considerably - you may be inside for weeks at a time. But it is a certainty that a large part of your job will be outside. This is especially true during your first several years of employment where you are building career basics. These basics become your future war stories. Although some of the work is solitary, most foresters have to also deal regularly with landowners, loggers, forestry technicians and aides, farmers, ranchers, government officials, special interest groups, and the public in general. Some work regular hours in offices or labs but this is usually the experienced forester or forester with a graduate level degree. The average dirt forester splits his/her time between field work and office work, many opting to spend most of the time outside. The work can be physically demanding. Foresters who work outdoors do so in all kinds of weather, sometimes in isolated areas. Some foresters may need to walk long distances through thick vegetation, through wetlands, and over mountains to carry out their work. Foresters also may work long hours fighting fires and have been known to climb fire towers several times a day. Foresters manage forested lands for a variety of purposes. Generally they come in four groups: The Industrial Forester Those working in private industry may procure timber from private landowners. To do this, foresters contact local forest owners and gain permission to take inventory of the type, amount, and location of all standing timber on the property, a process known as timber cruising. Foresters then appraise the timbers worth, negotiate the purchase of timber, and draw up a contract for procurement. Next, they subcontract with loggers or pulpwood cutters for tree removal, aid in road layout, and maintain close contact with the subcontractors workers and the landowner to ensure that the work meets the landowners requirements, as well as Federal, State, and local environmental specifications. Industrial foresters also manage company lands. The Consulting Forester Forestry consultants often act as agents for the forest owner, performing many of the above duties and negotiating timber sales with industrial procurement foresters. The consultant supervises planting and growing of new trees. They choose and prepare the site, using controlled burning, bulldozers, or herbicides to clear weeds, brush, and logging debris. They advise on the type, number, and placement of trees to be planted. Foresters then monitor the seedlings to ensure healthy growth and to determine the best time for harvesting. If they detect signs of disease or harmful insects, they decide on the best course of treatment to prevent contamination or infestation of healthy trees. The Government Forester Foresters who work for State and Federal governments manage public forests and parks and also work with private landowners to protect and manage forest land outside of the public domain. The Federal government hires most of their foresters for managing public lands. Many State governments hire foresters to assist timber owners in making initial management decisions while also providing manpower for timber protection. Government foresters also can specialize in urban forestry, resource analysis, GIS, and forest recreation. Tools of the Trade Foresters use many specialized tools to perform their jobs: Clinometers measure the heights, diameter tapes measure the diameter, and increment borers and bark gauges measure the growth of trees so that timber volumes can be computed and future growth estimated. Photogrammetry and remote sensing (aerial photographs and other imagery taken from airplanes and satellites) often are used for mapping large forest areas and for detecting widespread trends of forest and land use. Computers are used extensively, both in the office and in the field, for the storage, retrieval, and analysis of information required to manage the forest land and its resources.Thanks to BLS Handbook for Forestry for much of the information provided in this feature.

EC 444 Essay Example | Topics and Well Written Essays - 500 words

EC 444 - Essay Example When income becomes scarce, the curve flattens. The third property is indifference map which reflects different levels of utility. An individual will attain maximum total utility on the highest position of the indifference curve. The fourth property is work-leisure preference of the individual. The shape of the curve is determined by individual’s preferences, occupation, and personal circumstances. A flat curve reflects a person with an occupying job. A nursing mother will have a relatively steep indifference curve because much of her time is spent on non-labor market activities. An individual’s budget is controlled by the amount of wages earned. Budget constraint is reflected by the wages earned and this has an overall effect on the shape of the indifference curve. Individual’s maximum utility is attainable at the highest position on the indifference curve. Changes in wage rates have an effect on the number of working hours. An increase in the number of working hours increases the wage rate but with time wage increase may reduce the number of working hours. Wage rate is affected by income and substitution effects. Income effect results from the change in the desired number of working hours as a result of income change, wages are kept constant. An increase in income means more money will be available to spend on purchasing leisure. The resulting effect is the reduction of desired number of working hours. Substitution effect results from the change in the desired number of working hours as a result changes in wage rate, income is kept constant. When leisure becomes expensive, it is sensible for the individual to work more hours and reduce time spend on leisure. The resulting effect is increase in the number of working hours. The overall net effect will depend on the magnitude of income and substitution effect. Women are responsive to changes in wage rates than men. This is due to the differences in allocation of time. Men use their time

Port Report Essay Example | Topics and Well Written Essays - 1000 words

Port Report - Essay Example This resulted in the reduction of retail gas price from USD 3.31 to USD 2.27 during the year 2014. While this has the positive effect on the consumer purchase pattern, the impact of such fall on the investment pattern, particularly the GCC stocks needs detailed investigation. As it is just the first quarter of 2015, the analysis of current oil prices fall cannot be done correctly since its effect on stock investment needs longer period of observation. Hence, this paper has taken an in-depth look at the relationship between oil pricing and stock investment, as well as general economic conditions, within GCC and across the world, during the recent past. Accordingly, 2008 financial crisis, coupled with cyclic fall in oil prices finds greater attention in the following paragraphs. As supply and demand equation determines the price of any commodity, political forces prevailing in the oil producing countries determine the supply position for oil, largely. Technological innovation also plays a major role here. Many political decisions by countries across the globe influence the oil pricing. For example, the cause of recent Russian currency debacle has relation to the falling oil prices. Although under normal conditions, falling prices would result in reducing the production, OPEC countries are not doing it, as they want to retain their control over oil production. This is also seen as an attempt to make oil production unsustainable by American producers, who are utilizing advanced technology to increase shale oil production in a major way.(Stefanova, 2014) Consumers in Western countries take falling oil prices as an instrument to result in lesser tax burden. This way the falling oil prices prove to be positive for the global economy, as these countries can look for heavy reduction in lower inflation rates. While many advanced economies may go for deflation measures, the falling oil crisis has hit the currencies of Norway and Canada in a major way.(Buttonwood,