The need for for formal government regulation to ensure societal Essay

The requirement for formal government guideline to guarantee cultural balanced governance on maybe wayward enterprises - Essay Example The requirement for changes in the executives structure was especially clear after HIH episode when the board made out of the boss executive’s companions and partners neglected to survey viably the administration execution, discouraging non-official chiefs from controlling procedures inside the organization. (Siladi, 2006 ) As trust towards organization insiders just as to inspectors, investigators or controllers was broken, governments began to thoroughly consider guidelines which would forestall such uncalled for rehearses. Various nations reacted diversely to the issue of lacking corporate administration framework. While Australia and the UK have given suggestions dependent on ‘comply and explain’ rule, the USA has presented progressively extreme estimates where rebelliousness brings about criminal discipline. The US Sarbanes-Oxley Act of 2002 set firm guidelines for senior administration, resistance with which brings about 20 years of detainment and fines up to $5 million. (Loeb 2005) Numerous nations explored their guidelines concerning crafted by the executives. The suggestions or guidelines gave in every one of nations unite in a few issues concerning chiefs: the nearness of autonomous non-official chiefs in the board, interest of non-administrators in designation and compensation advisory groups, control and dynamic capacity of the administrators, their reasonable compensation. Loeb, L. Official Summary: Sarbanes-Oxley: Worse than No Solution at All? Accessible at Ziff Davis CIO Insight. 2005 http://www.cioinsight.com/c/a/Past-News/Executive-Summary-SarbanesOxley-Worse-than-No-Solution-at-All/[accessed 17 Dec.

Ethical Dilemmas in the Police Force Research Paper

Moral Dilemmas in the Police Force - Research Paper Example Another meaning of morals alludes to the turn of events and investigation of a person’s moral measures. It is critical to check ones moral guidelines since social standards, sentiments and laws can go astray based on what is moral in the perspective on experts. In this regard, morals implies the ceaseless investigation of good direct and convictions and difficult work to ensure that the associations we work for training the norms that are satisfactory and immovably based. In regard to this, moral problem alludes to a circumstance where at least two decisions are morally flawed (Davis and Aroskar, 2010). The police calling is one angle where moral principles are authorized and executed. Over the previous years, investigation of morals in the police power has extended significantly because of instances of police fierceness and defilement surfacing in the courts and the media (Appiah, 2006). The first origination of the police power in England underscored the need of the police t o get the cooperative attitude of the individuals to adequately do their policing jobs. In England, the primary guidance to police constables was in 1829 and it pushed for low temper from cops, resilience from foul language and ought to carry out their responsibility in a decided and calm manner since this will help the official in getting support from whomever he looks for it. In the United States, the officials never clung to lawful standards notwithstanding their preparation as law implementers. The police were a piece of the political framework utilized by neighborhood political associations and no settled set of accepted rules was set up. This paper will locate the different codes of morals being used by cops, giving different moral quandaries cops face. The inquiries to be replied by this paper are: What are the norms, codes of behaviors rehearsed by the police power? What are the moral predicaments confronting the police power? Moral Conducts of Police Officers coming up next are sets of principles overseeing cops, (Herbefeld, 2006): To offer support to the general population, secure property and lives and in the process protecting residents from extortion and the helpless against mistreatment, the quiet against hostility and to love the sacred privileges of all to fairness, freedom and equity. To keep their hidden life liberated from criminal operations to be copied by all and demonstration in a manner that doesn't carry circumspection to them and my office. Keeping up mental fortitude and quiet even with threat mocking and disdain. Creating poise and aware of the government assistance of others. Genuineness in thought and deed in close to home and authority life and complying with the laws and guidelines of a cop. Anything private I see or hear in my official limit as a law requirement official will be kept covertly except if disclosure is important while working. To never let preferences, individual sentiments, desires, disdain or colleagues control their choices. To not bargain with wrongdoing and with tenacious arraignment of crooks, forcing the law obligingly and appropriately without dread or favor, mercilessness or malevolence and never utilizing power, savagery or tolerating tips. Perceiving the police identification as an indication of open certainty and trust. Never utilizing demonstrations of misrepresentation, debasement or overlooking such acts by partners in the law implementation office. Helping out every single legitimate department and their specialists in the quest for equity and law requirement. A law authorization o

How Can an English Literature Course Help Me to Write a Worthy Paper

How Can an English Literature Course Help Me to Write a Worthy Paper? WhÃ'â€"lÐ µ wrÃ'â€"tÃ'â€"ng Ã' Ã ¾mÐ µÃ'• nÐ °turÐ °llÃ'Æ' to some Ã'€Ð µÃ ¾Ã'€lÐ µ, others have tÐ ¾ mÐ °kÐ µ Ã' Ã ¾nÃ'•Ã' Ã'â€"Ð ¾uÃ'• Ð °nd concentrated Ð µffÐ ¾rts to craft a worthy paper. It doesn’t concern Ð ¾nlÃ'Æ' thÐ µ wÐ ¾rdÃ'•, but Ð °lÃ'•Ð ¾ the fÐ ¾rmÐ °ttÃ'â€"ng, spelling Ð °nd grÐ °mmÐ °tÃ'â€"Ã' Ã °l Ð µrrÐ ¾rÃ'• thÐ °t Ð ¾ftÐ µn overfill the students Ð µÃ'•Ã'•Ð °Ã'Æ'. There is a numbÐ µr of rÐ µÃ °Ã'•Ð ¾nÃ'• fÐ ¾r thÃ'â€"Ã'•, hÐ ¾wÐ µvÐ µr they Ã' Ã °n be Ã' Ã ¾rrÐ µÃ' tÐ µd effortlessly wÃ'â€"thin a short period Ð ¾f time. In the case of containing a lot of mistakes, the Ð µÃ'•Ã'•Ð °Ã'Æ' could nÐ ¾t receive a good mark. It Ã'â€"Ã'• important tÐ ¾ make Ã'•urÐ µ that Ð °nÃ'Æ'thÃ'â€"ng frÐ ¾m a paper title to a full blown rÐ µÃ'•Ð µÃ °rÃ' h Ã'€Ð °Ã'€Ð µr Ã'â€"Ã'• Ã' Ã ¾rrÐ µÃ' t and rÐ µÃ °dÃ'• wÐ µll. English Literature Helps Students who have taken a course in English literature face these issues less or do not suffer from these problems at all. Why? Because they have been exposed to so many literary works that you can be assured, they can tell you even more on how to write a perfect paper. The Power of Reading Now taking an English Literature course provides you with a number of benefits. It is known that people, who read a lot, train their memory so that they can keep everything in mind. Moreover, their vocabulary is much more spread than a common student’s one is. They may even do not now all the rules on how to write properly, but they do this automatically. Such a course certainly helps them write more creatively and be more aware of the common errors and how to avoid them. Once you have read many books written by great writers, on different styles and on different issues, your mind is more open to new ideas, how to describe emotions, how to use the right word at the right time. What is most important, it teaches you how to be a lot more engaging with what you are writing about. Logical sequences and well-constructed sentences help to maintain the interest of the reader. As a result, your chances of submitting a worthy paper are far greater. Here are some common errors that can occur in the submitted term papers: Spelling Using spell check is not 100% reliable. Sometimes the context of the sentence can confuse the logic of a computer program. Be aware. Improper Person AlmÐ ¾Ã'•t every Ã'•tudÐ µnt hÐ °Ã'• a problem wÃ'â€"th writing Ã'â€"n the wrÐ ¾ng Ã'€Ð µrÃ'•Ã'€Ð µÃ' tÃ'â€"vÐ µÃ'• at Ã'•Ð ¾mÐ µ Ã'€Ð ¾Ã'â€"nt or another. It Ã'â€"Ã'• a Ã' Ã ¾mmÐ ¾n Ã'€rÐ ¾blÐ µm, and Ã' Ã °n bÐ µ addressed with a lÃ'â€"ttlÐ µ bit of undÐ µrÃ'•tÐ °ndÃ'â€"ng. ThÐ µ two most Ã' Ã ¾mmÐ ¾n Ã'€Ð µrÃ'•Ã'€Ð µÃ' tÃ'â€"vÐ µÃ'• for wrÃ'â€"tÃ'â€"ng are thÐ µ first Ð °nd third Ã'€Ð µrÃ'•Ð ¾n. Fragments and Run-On Sentences Students commonly fÃ'â€"nd themselves Ð µÃ'â€"thÐ µr wÃ'â€"th a lÐ ¾ng wÃ'â€"ndÐ µd Ã'•Ð µntÐ µnÃ' Ã µ Ð ¾r ones thÐ °t are nÐ ¾t Ã' Ã ¾mÃ'€lÐ µtÐ µ ideas. ThÃ'â€"Ã'• Ã'â€"Ã'• a vÐ µrÃ'Æ' Ã' Ã ¾mmÐ ¾n Ã'€rÐ ¾blÐ µm Ð °mÐ ¾ng professional wrÃ'â€"tÐ µrÃ'•. GÐ µnÐ µrÐ °llÃ'Æ', individuals would Ð µÃ'â€"thÐ µr have trÐ ¾ublÐ µs wÃ'â€"th Ð ¾nÐ µ or the Ð ¾thÐ µr, but Ã'â€"n Ã'•Ð ¾mÐ µ cases bÐ ¾th Ã'â€"Ã'•Ã'•uÐ µÃ'• Ð °rÐ µ a problem. Not Proofreading PrÐ ¾Ã ¾frÐ µÃ °dÃ'â€"ng Ã'â€"Ã'• nÐ ¾t Ð °ll that fun Ð °nd no Ð ¾nÐ µ lÃ'â€"kÐ µÃ'• doing Ã'â€"t, but Ã'â€"t Ã'â€"Ã'• really important for a wÐ µll wrÃ'â€"ttÐ µn paper. AÃ'• wÐ µ Ã'€Ð ¾Ã'â€"ntÐ µd out earlier, Ã'•Ã'€Ð µll check does nÐ ¾t Ã' Ã °tÃ' h Ð µvÐ µrÃ'Æ' tÃ'Æ'Ã'€Ð µ Ð ¾f Ð µrrÐ ¾r that Ã' Ã °n bÐ µ fÐ ¾und in typical wrÃ'â€"tÃ'â€"ng. It takes only a fÐ µw mÃ'â€"nutÐ µÃ'• to rÐ µÃ °d Ð ¾vÐ µr to make sure thÐ °t thÐ µÃ'Æ' Ð °rÐ µ complete thÐ ¾ughtÃ'•, have thÐ µ Ã' Ã ¾rrÐ µÃ' t wÐ ¾rdÃ'• and mÐ °kÐ µ Ã'•Ð µnÃ'•Ð µ.

Impacts Of Us Quantitative Easing On Financial Assets Finance Essay - Free Essay Example

Sample details Pages: 21 Words: 6380 Downloads: 8 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? On July 24, 2009, Federal Reserve unleashed its recent quantitative easing (QE) campaign. Fed Chairman Ben Bernanke declared that the Fed had an exit strategy. Interestingly, sixteen months later, Bernanke announced the second phase of QE generally known as QE2.  However, this time instead  of  pretending an exit strategy, he designed a plan to expand the program in perpetuity. The markets initial dramatic reaction was most surprising. Don’t waste time! Our writers will create an original "Impacts Of Us Quantitative Easing On Financial Assets Finance Essay" essay for you Create order The Fed is going to be buying (QE2) 600 billion dollars of Treasuries (in the 5-7 year part of the curve) through mid-2011 and another 250-300 billion via coupon reinvestments.   The number that is key for the markets is that 600 billion dollar figure which is about 75 billion per month. That is in the middle of consensus expectations of 50-100 billion dollars.   For all the excitement, this further expansion of the Fed balance sheet will add between 0.25 and 0.5 pct to real GDP growth if it proves to be successful. What the Fed is clearly trying to do is inflate asset values in order to generate a more positive wealth effect on personal spending and pull the cost of debt and equity capital down in order to re-ignite business animal spirits and hence corporate investment and hiring.   Under the QE program the Federal Reserve is purchasing Treasuries, Agency and Agency Mortgage Backed Securities of different maturity scedule. There is substantial evidence that QE program can influance long-term interest rates. For example, Gagnon, Raskin, Remache, and Sack (2010) present an event-study of QE1 that documents large reductions in interest rates on dates associated with positive QE announcements. Apart from the event-study evidence, there are papers that look at lower frequency variation in the supply of long-term Treasuries and documents causal effects from supply to interest rates (see, for example, Krishnamurthy and Vissing-Jorgensen (2010)). The main objective of this paper is to evaluate the theoretical channels through which the unconventional monetary policy (QE) works. I review the key channels through which QE operates and then investigate the impacts of QE on different financial assets using the event-study method. In our event-study method I observe the changes in asset prices and yields. I furthermore supplement previous works by adding evidence from QE2 and stochastic forecasting models. Studying daily data allows us to document price reactions after the main announcements. 2. Literature Review 2.1 Theoretical Studies A monetary policy such as Quantitative Easing program by a central bank would change the supplies of assets held by the market agents and, thereby, may lead to changes in the relative prices of financial assets. This is called portfolio-rebalancing effect. On the other hand if the market agents believe the central bank interference will be successful in stimulating the economic growth by increasing aggregate demand then inflation and dividends on assets are likely to rise in the future which is known as expectation-hypothesis. Doh (2010) refers to imperfect substitutability between assets and explains the expansionary effect of QE announcement decision by arguing that the buy-back program of long-term treasuries by the central bank will tend to lower yields of long-term bonds, because the central bank purchases those securities or assets at a higher price than the market charges. This lower long term yield on treasuries can be explained by theory of portfolio rebalancing effect to ot her asset markets, such as equity and corporate bond market. Investing in longer-term assets becomes relatively cheaper and hence stimulates the aggregate demand. Essentially, the central bank interferes into the conventional interest rate determination mechanism by directly lowering long-term yields. Being constrained by the zero-lower-bound, the conventional interest rate channel that usually catalyzes lower long-term yields through the expectations hypothesis does not function properly and the central bank outwits this by directly arbitrating in the market for long-term bonds. He found that the central banks large-scale purchases of the bonds can decrease the term premium on fixed income securities. The magnitude of the decline in term premium depends on the risk aversion nature of the market agents. If the risk aversion is high, large-scale asset purchases can induce more substantial decline. Hence, the success of the portfolio rebalancing theory would depend on the risk aversio n level of the market agents. However, he argued that from a theoretical point of view, it is not obvious the yields on long-term treasuries are supposed to drop after announcing Quantitative Easing. From the study of Takeshi Kimura and David Small (2004), we see that QE lowered the key interest rates in Japan. However, the program failed to stimulate the equity market. So, the expectation hypothesis was in effect as far as fixed income securities were concerned. However, because of the high risk aversions of the market agents the portfolio rebalancing effect failed to exert any impact on other asset classes. 2.2 Empirical studies on QE There is by now a substantial amount of research that studies the impact of unconventional monetary policy on capital market variables like interest rates, yield differential or interest rate spread. Some of the recent studies include Bernanke et al. (2004), Hamilton and Wu (2010) and Stroebel and Taylor (2009), Meier (2009), ECB (2010) for the Euro Zone, and Oda and Ueda (2007) and Ueda (2010). Oda and Ueda (2007) found that that the Bank of Japans open market operation under the zero-bound rate environment has functioned primarily through the commitment of keeping the rate low, which had reduced the rates across different maturity schedule. Most importantly, the commitment has been effective in lowering the expectations component of interest rates, especially with short to medium-term maturities. Stroebel and Taylor (2009) examined the quantitative impact of the Federal Reserves mortgage-backed securities (MBS) purchase program. They found evidence of statistically significant effe cts of the program on financial asset prices and on different interest rates. Without losing generality, I can say that these literatures found negative effects on yield differential of unconventional policies such as monetary or quantitative easing, which implies that the dividends or yields of various assets tend to decline, thereby tightening the risk premium spread to the corresponding risk-free return. Hamilton and Wu (2010) found that a buy-back of 400 billion US dollars of US treasuries in 10-year area of the curve would contribute to a 14 bps fall in the 10-year treasury yield. Gagnon (2010) found that the unconventional monetary policy measure would plunge long-term return by 20 bps across the curve. Meier (2009) observed that the Bank of Englands Quantitative Easing program, where asset purchase program lowered inflation-linked-treasuries (gilt) yields by approximately 40 basis points to 1 percentage point (100 bps). Kamada and Sugo (2006) diagnosed the impact of monetary policy shocks by imposing sign restriction on the IR (Impulse Response) functions. In their analyses, they used several macroeconomic variables, such as the consumer price index, industrial production, the exchange rate, yield on 10 treasury, and a proxy variable for monetary policy. Using the asset purchase date they observed the structural changes between February 1978 and April 2005. They showed that the impacts of asset purchase on prices and output weakened in the 1990s. The decline in the impact of Japanese monetary policy is attributable to the non-negativity constraint on short-term rates. Baumeister et al. (2010) estimated the impact of a fall in the long-term treasury yield differential within the context of the 2007-2009 financial recession using a sign restrictions on the estimated parameters. They concluded that a pure spread shock which, leaving the short-term rate unchanged by construction, allows us to characterise the macroeconomic impact of a spread tightening induced by central banks monetary easing program within an environment in which the short-term rate cannot move because it is constrained by the zero lower bound. 2.3 Studies most relevant to my research Recent literatures on US-QE program have focused only on Treasuries. However, in my opinion, it is inappropriate to focus only on Treasury rates as a policy target because QE works through several channels that affect other financial assets as well. Based on this argument, I build several hypotheses that I testify in this paper. Gagnon, et. al, (2010) showed that by reducing the net supply of assets with long duration, the Federal Reserves QE programs appear to have been successful in reducing the risk premium. In addition to this reduction in the risk premium, the QE programs has an even more powerful effect on longer term interest rates on agency debt and agency backed mortgage securities by improving market liquidity and by removing assets with high prepayment risk from private portfolios. They found evidence that the asset purchase program led to economically efficient and long-lasting reductions in longer-term interest rates including financial market assets that were not includ ed in the purchase programs. This plunge in interest rates primarily reflects lower term premiums rather than lower expectations of future short-term interest rates. However, in their study they did not investigate the prices of other financial assets that reflect the effectiveness of portfolio rebalancing effect. In my study we will investigate the portfolio rebalancing effect by exploiting an event study method using the price movements of several financial assets. Krishnamurthy et al. (2010) estimated the effect of QE2, assuming a $500bn size, on nominal long-term interest rates. In their primary hypothesis they expected QE2 would result in a 40 basis point drop in interest rates on long-term safe assets (Treasuries). The rationale behind the hypothesis was there is a unique clientele effect for long duration but risk free assets, and the QE2 would reduce the supply of risk free assets of higher duration and hence would increase the risk premium that such market agents would pay for such assets. They expected a much smaller effect on the nominal interest rates on less safe assets such as Baa rated corporate bonds and mortgage rates. These rates are more relevant for long-term financing from market agents perspective. That is, effects on the duration risk premium, which affects all long-term interest rates, will be much smaller. They concluded that QE1 and QE2 significantly lower nominal interest rates on Treasuries, Agencies and highly-rated corporate bonds, driven mainly by an increase in the safety price premium of assets with near-zero default. To facilitate their research they used credit default swap (CDS) data. In my study I use corporate borrowing spread which directly reflects the health of financial position of the corporations. I also use stochastic interest rate forecasting model to capture the change in evolution of the zero-rate in both pre and post-QE period. 3. Data and Methodology I evaluate the effect of the Federal Reserves Quantitative Easing programs of long-term Treasuries (QE1 in 2008-2009 and QE2 in 2010-2011) on interest rates and other financial assets. I use an event-study methodology that compares the change in asset prices and yield around the event announcement date. In this paper, I use zero-, three- and seven-day window period for my event-study. I conduct my event-study using the data on treasury and corporate yield, SP price index, SP Futures, US-EUR currency rate, Gold price, Inflation Swap rate and VIX index around the event announcement dates. For the event-study method, I use three QE announcement dates for both QE1 (11/25/08, 12/01/08 and 12/16/08) and QE2 (08/10/10, 09/21/10 and 11/30/10) and I compare the relative impacts of these two phases on asset prices. I also use stochastic forecasting method to see the interest rates movement around the QE announcement dates. The QE strategy entails purchasing long-term assets that increases monetary base. Thus, QE increases the liquidity in the hands of investors and thereby decreases the liquidity premium on the most liquid assets. According to the classical bond pricing formula, QE should decrease the yield on all long-term nominal assets more than the assets with short-term maturities due to the duration risk factor. To the extent that QE is expansionary, it increases inflation expectations, and this can be expected to have an effect on interest rates. This effect should be reflected via inflation swap rate. The entire idea behind the QE is to bolster the economic growth and stability. One of the objectives of the program is to create an interest rate environment where the corporations would be able to borrow their capital at a low cost which would in turn improve the health of income statement through the interest expenses account. Again, this would impact the P/E ratio and hence, would increase the equity prices. Under these circumstances, the debt holders would agree to lend capital at a lower premium. Thus, the spread between treasuries and corporate yields should be narrowed down as a result of QE. If the interest rate goes down due to the QE then I should experience a substantial amount of capital outflows (especially, interbank money market instruments) from US to other financial markets where the liquidity premium is higher. Hence, the US exchange rate should drop. In this paper, I use Vasicek (1977) and Cox-Ingersoll-Ross (1985) interest rate models to forecast the zero-coupon interest rates for both pre and post QE period. These models are one-factor models that use short rates to forecast the interest rate movements driven by the market risk. They follow a standard Brownian motion to explain the evolution of the interest rate. Here, I use the historical daily data on short rate from 2006 to 2008 to forecast the interest rate environment for the pre-QE period. I then check the stability of the model for the post-QE period. Details of these models are described in the forecasting section. 4. Event Study As discussed earlier, I am using zero-day (-1,0), three-day (-1,+1) and seven-day (-3,+3) window period in my event-study where I compare the changes in asset prices on the event day as compared to the prices around the event dates using different window period. I use three QE announcement dates for both QE1 (11/25/08, 12/01/08 and 12/16/08) and QE2 (08/10/10, 09/21/10 and 11/30/10). The issue that arises is that I cannot be sure that the identified events are in fact important events, or the dominant events. That is, other significant economic news arrives through this period and potentially create measurement error problems for the event-study. To tackle this problem I have chosen only the first three event dates for each phase. However, inclusion of other dates would not alter my fundamental conclusion. 4.1 Evidence from QE1 Based on our duration risk hypothesis, the yields on longer-term securities in Table 1 drop more than the yields of shorter-term securities. However, I see an exception for the 30 year Treasury bond, where the yield falls less than the 10 year bond. The long Treasury and agency bond yields may fall more than the shorter-term yields because of clientele effect for long-term safe assets. For mortgage backed securities (MBS), long rates may fall more than short rate because of pre-payment nature of the mortgage backed securities. Table 1 Window (-1,0) Change in Treasury Yield (bps) Agency Yield (bps) Agency MBS Yield (bps)    Term-to-Maturity Term-to-Maturity Term-to-Maturity Announcement Date 30 Year 10 Year 5 Year 1 Year 10 Year 5 Year 10 Year 5 Year 11/25/2008 -24 -36 -23 -2 -76 -57 -75 -147 12/01/2008 -27 -25 -28 -13 -67 -50 -10 58 12/16/2008 -32 -33 -15 -5 -39 -26 -30 -7 Change in yield on fixed income securities with a (0,1) window; Source: Bloomberg From table 1, we observe that there are differences in the yield changes across the different fixed income securities; for example, Agency bonds demonstrate the largest fall in yields. The duration risk hypothesis cannot explain these effects as it only explains the effects that depend on term-to-maturity. Also, the trade-off between interest rate risk and credit risk is minimal as far as treasuries or agency backed securities are concerned. The QE strategy involves purchasing long-term securities. Thus, QE increases the liquidity in the hands of investors. With the increased liquidity base and portfolio rebalancing effect, the investors will demand higher premium on liquid assets and will allocate more wealth into risky assets. The most liquid assets in Table 1 are the Treasury bonds. The liquidity premium hypothesis predicts that these yields should increase with QE. However, they do not increase; they actually fall much less than the yields on Agency bonds (these are the bonds issued by government agencies but are not secured by government) which are less liquid. That is the Agency-Treasury spread narrows down with QE1. For example, the 10 year spread falls by 92 basis points. This is interesting because 10 year Agencies and Treasuries have the same default and duration risk based on their underlying covenants and position in the issuers capital structure. Also, it is evident that portfolio rebalancing effect did not take place in a reaction to an event date. This could be explained by the nature of the utility functions of the market agents but to explore that phenomenon is beyond the scope of this paper. To assess the effects on real rates, I need information about the impact of QE1 on inflation expectations. Table 2 presents the relevant interest rate swap data. Here, I use inflation swap rate which is also known as plain vanilla swap. This instrument reflects the inflation expectation of the investors on at different point in time. For example the 10-year inflation swap is the fixed rate in the 10-year zero coupon inflation swap. This data suggests that inflation expectations increased by between 1 and 48 basis points (ignoring the drops in swap rate), depending on maturity. It is difficult to explain the drop in the rate on few occasions. However, the market agents were aware that the Federal Reserve was not going to raise the policy rate anytime soon and hence, the agents demonstrated consistent expectation on longer-term maturity schedule (30 yr). Table 2   Window (-1,0) Change in Inflation Swap Rate (bps) SP 500 Price Index    Term-to-Maturity Announcement Date 30 Year 10 Year 5 Year 1 Year Change in basis points 11/25/2008 1 -6 -28 48 66 12/01/2008 15 27 11 -40 -893 12/16/2008 4 37 35 -17 514 Change in Inflation Swap rate SP 500 Index; Source: Bloomberg QE increases the level of monetary base and consequently lowers the value of the currency. To hedge against the weak currency, large institutions and investors tend to hold gold and this triggers the gold price. The cheaper dollar should stimulate the export demand of locally produced goods. At the same time as QE lowers the corporate borrowing rate which has direct impact on the net income of the corporations balance sheets. These two effects together improve the Price/Earning ratio which is the key multiple closely followed in stock trading. As a result, I should document higher stock prices in post-QE period. At the same time, due to the spot-future price relationship, economic agents would revise their market expectations and hence, the stock futures should rise as well. In table 2 I see that SP 500 reacted immediately to the announcement dates except for one announcement date. On the event day, price index rose from 66 to 514 basis points. Most importantly SP 500 grew by 47% since the initial announcement date to the end of 2010. However, from table 3, I document that the impact on SP 500 futures is quite ambiguous as I observe a frequent change in market movements. However, since the initial announcement date to the end of 2010, the index surged by 47% which is consistent with the growth rate of the price index. It is clear that market agents did not react and revised their expectations overnight on equities. However, I notice the reaction in long term market expectation. The volatility in spot and future indices is also reflected in the VIX index where I see a frequent sign change in the market volatility expectation. Same argument applies to the gold spot price. Table 3 Window (-1,0) VIX Price Index USD-EUR Exchange Rate Gold Spot Price BBB Mid-Yield Spraed (5 Year) Announcement Date (Change in bps) (Change in bps) (Change in bps) (Change in bps) 11/25/2008 -6 -84 -24 -33 12/01/2008 230 65 -448 -28 12/16/2008 -770 -227 148 -2 Change in VIX, USD-EUR, Gold and BBB spread; Source: Bloomberg On the event day, the gold price actually fell by few basis points but it grew by 75% since the initial announcement day to the end of 2010. Except for one event date, US-EUR exchange rate fell by 84 to 227 basis points. In line with treasury and agency yield movements, the BBB rated corporate borrowing rates also fell on the even day. I document that 5 year yield spread fell by 2 to 33 basis points and the reaction was much larger on the QE1 event dates. Table 4 Window (-1,+1) Treasury Yield (5 Yr) BBB Spread (5 Yr) SP 500 Gold Spot Price 11/25/2008 -20 2 4.04% -1.2% 12/01/2008 -27 -28 6.68% -4% 12/16/2008 -11 -29 4.13% -5% Change in 5-Yr treasury yield, BBB spread, SP 500 and Gold price; Source: Bloomberg Using a 3-day window period, from table 4, I see that, the treasury yields drop around all event dates. We also see that the generic spread on BBB rated corporate bonds declined and consistent with the treasury fall. The reaction of SP 500 price index is much more conclusive when we use 3-day window and they are in line with my primary hypothesis. However, the movement in gold price does not demonstrate its actual long term movement when we observe them in shorter window frame. I observe the similar results when I use a 7-day window period (see table 5). This time around gold price does reflect its trajectory since the initial event day to date. Table 5 Window (-3,+3) Treasury Yield (5 Yr) BBB Spread (5 Yr) SP 500 Gold Spot Price 11/25/2008 2 -20 8.48% 10.3% 12/01/2008 -50 -5 -1.3% -4% 12/16/2008 -18 -55 1.64% 0.9% Change in 5-Yr treasury yield, BBB spread, SP 500 and Gold price; Source: Bloomberg 4.2 Evidence from QE2 The QE2 announcement was widely anticipated and one would expect the announcement to have little effect. Prior to the initial announcement for QE2, market expectations were that the Fed would let its MBS portfolio overspill, thereby reducing reserve balances and allowing the Fed to exit from its non-traditional monetary policies. Thus, the announcement of the Feds intent to continue QE revised market expectations. Moreover, the announcement indicated that the QE would shift towards longer-term Treasuries, and not Agencies or Agency backed securities as in QE1. In QE2, I do not observe duration risk phenomena. It is not the case that longer term Treasuries or Agency securities move more in yield than shorter term securities. Table 6   Window (-1,0)    Change in Treasury Yield (bps) Agency Yield (bps) Agency MBS Yield (bps) Term-to-Maturity Term-to-Maturity Term-to-Maturity Announcement Date 30 Year 10 Year 5 Year 1 Year 10 Year 5 Year 10 Year 5 Year 08/10/2010 -1 -7 -8 -1 -7 -9 1 -5 09/21/2010 -8 -11 -9 0 -11 -9 -7 1 11/30/2010 16 4 -4 0 5 -5 -5 -2 Change in yield on fixed income securities with a (0,1) window; Source: Bloomberg For example, from table 6 we see that on the first event day, the treasury yield dropped more for the longer-term bonds. We also see that on the third event date, the treasury yield on 10-yr and 30-yr bonds rather increased. There does not appear to be an existence of liquidity premium hypothesis. Treasury and Agency yields fall by nearly the same amounts, and hence the spread also remained flat. Hence, the liquidity premium also remains unchanged. Table 7   Ãƒâ€šÃ‚  Window (-1,0) Change in Inflation Swap (bps) SP 500 Price Index    Term-to-Maturity Announcement Date 30 Year 10 Year 5 Year 1 Year Change in basis points 08/10/2010 5 -1 -3 0 72 09/21/2010 6 6 6 -1 26 11/30/2010 6 -3 2 1 37 Change in Inflation swap rate and SP 500; Source: Bloomberg From table 7, we see that the inflation expectations rise by 1 to 6 basis points and the impact was smaller as compared to QE1. It is noteworthy that the inflation expectation on 30-yr maturity is in line with the inflation expectation in post-QE1 period. Table 8   Ãƒâ€šÃ‚  Window (-1,0) VIX Price Index USD-EUR Exchange Rate Gold Spot Price BBB Mid-Yield Spread (5 Year) Announcement Date (Change in bps) (Change in bps) (Change in bps) (Change in bps) 08/10/2010 100 -8 -87 -4 09/21/2010 400 -153 -33 -8 11/30/2010 -930 -74 -41 -3 Change in VIX, USD-EUR, Gold and BBB spread; Source: Bloomberg In line with QE1, the movements in stock and commodity prices remain ambiguous. However, the currency movement was distinct as the exchange rate fell on each QE2 event dates and the magnitude of the change was larger on QE2 event dates. From table 8, we see that, the generic yield spread on BBB graded bonds narrowed by few basis points. The effect is smaller than QE1 as expected. Gold price also fell on each event day of QE2. However, we have seen substantial growth in gold price since the initiation of QE2 to date. Table 9 Window (-1,+1) Treasury Yield (5 Yr) BBB Spread (5 Yr) SP 500 Gold Spot Price 08/10/2010 -9 -15 -3.4% 0.2% 09/21/2010 -9 -10 -0.7% -1% 11/30/2010 13 4 1.5% -2% Change in 5-Yr treasury yield, BBB spread, SP 500 and Gold Price; Source: Bloomberg Table 10 Window (-3,+3) Treasury Yield (5 Yr) BBB Spread (5 Yr) SP 500 Gold Spot Price 08/10/2010 -11 -18 -4.1% 1.8% 09/21/2010 -11 -12 2.1% 1.9% 11/30/2010 5 8 2.2% 2% Change in 5-Yr treasury yield, BBB spread, SP 500 and Gold Price; Source: Bloomberg We observe similar movements in treasuries and other asset prices for QE2 when we use 3- and 7-day window event (see table 9 and 10). However, the magnitude of the change is lesser than that of QE1. This is quite plausible as QE2 was well expected before the QE2 announcement day. 5. Stochastic Interest Forecasting Models 5.1 Theoretical Background of Vasicek and CIR Model I use interest rate models, those of Vasicek (1977) and of Cox, Ingersoll and Ross (CIR; Cox et al., 1985). Both models assume that the risk-neutral process for the (instantaneous) short rate r is stochastic, with one source of uncertainty. The stochastic process includes drift and volatility parameters which depend only on the short rate r, and not on time. The short rate model involves a number of variables, and different parameter choices for these variables will lead to different shapes for the term structure generated from the model. Both interest rate models feature so-called mean reversion of the short rate, that is, a tendency for the short rate to drift back to some underlying rate. This is an observed feature of the way interest rates appear to vary. The two models differ in the handling of volatility. I start with Vasicek model, and then consider the CIR model. (i) The Vasicek Model Vasicek model (1977) assumes that the instantaneous interest rate at time t, r(t), follows the mean-reverting process of the following form: (1) Thus a small change (dr) in the short rate in time increment (dt) includes a drift back to mean level at a rate for the short rate. The second volatility term involves uncertainty, dz representing a normally distributed variate with zero mean and variance dt. The short rate r (strictly r(t)) is assumed to be the instantaneous rate at time t appropriate for continuous compounding. I assume that short rate is to be the instantaneous at time t. Parameter exhibits a mean-reverting feature in the Vasicek model which represents equilibrium level of the short-term interest rate, around which it stochastically evolves. When the interest rate falls below (above) its equilibrium level, the instantaneous change in interest rate is positive (negative). The short-term interest rate will move toward its long-term value at a greater speed when it is far from it and when the parameter value (speed of adjustment) is high. I assume that the volatility of the short rate is assumed normally distributed. In the one-factor model, security values are determined by the zero-rate. Bond price in a risk-neutral economy discounted at time t with a maturity of can be represented as follows: (2) Given expectation with respect to stochastic process, the spot rate can be estimated as follows: (3) Using the expected yield, bond value can be found by the following way: (4) The yield to maturity of a bond is defined as , which implies: (5) As the maturity increases from , the yield to maturity converges to: (6) Vasicek model assumes that the stochastic movement of the zero rate is independent of the level of the zero rate. However, this is not true at a zero-rate environment or at an extreme levels of the zero rate. During high inflation period, the short-term interest rates are very unstable and, as a result, the volatility of the short rate tends to be high. When the short-term rate is very low, its volatility is limited by the fact that interest rates cannot decline much as it approaches zero. In our model simulation, I notice that when the zero-rate approaches to zero, Vasicek model forecast negative interest rate which is not possible in realty. To tackle this problem I use CIR model imposing the non-negativity constraint on its stochastic evolution. (ii) The CIR Model The CIR model overcomes the negative interest rate issue that I have in Vasicek model. In this framework, the risk-neutral dynamics of the short rate is described by the equation: (7) is the mean reversion parameter, is the mean level, is the proportion of the square root of the level of interest rate and follows a standard Brownian motion. This framework has the same mean reverting drift as the Vasicek model, but the volatility of change in the zero rate in a short period of time is proportional to the square root of the interest rate. It implies that, as the short-term interest rate increases, its standard volatility increases. Under the CIR (1985) model, P(r, t) at time t for all interest rate satisfies the following bond valuation approach: (8) and the conditional variance is given by (9) With the boundary condition that (10) Given the relevant expectation, I can obtain the bond price as follows: , (11) where (12) and A zero-bond is usually expressed in terms of its yield rather than its price. The yield to maturity on a period zero-coupon bond, can be estimated from equation (9) as follows: (13) The CIR and Vasicek models are single factor equilibrium models of the instantaneous interest rate movement providing equilibrium asset prices and free of arbitrage opportunities. Specially, the CIR model performs better under a zero-rate environment as it imposes the non-negativity constraint on the term structure model. It is interesting to find out which is a better model in estimating market price. 5.2 Term Structure Forecasting The simulation of the short rate is based on the stochastic model as described in the last section. I run the simulation using the parameters estimated from the first order autoregressive model using the historical time-series daily data on short rate from 2006-2007. We have to remember that the short-rate is explicitly a function of federal fund or over-night target rate. Hence, the model does not give us the flexibility to go beyond two years as the volatility of the key policy rate will get larger. From 2006 to 2007, federal fund rate moved by only 1% and that gives us the rationale for using two years of data points. Table 11 shows the zero-rate on the event dates used in this paper. Table 11 Announcement Date Short-Rate 11/25/2008 1 bp 12/01/2008 7 bps 12/16/2008 4 bps 08/10/2010 15 bps 09/21/2010 17 bps 11/03/2010 13 bps Figure 1: Zero- rate movements since the commencement of QE The starting point of the simulation process is the zero-rate at January 2008 using the parameters estimated from AR (1) model. I find an average of the simulated (model generated short-rates) short-rates for June 2008 approximately 2.08%, from which the entire term structure can be deduced. In table 12, I represented the parameters used to calibrate the stochastic models. Table 12 Estimated Parameter for Calibration Rate Rate at t=0 1.96% Drift Factor 0.03% Equilibrium Rate 0.98% Volatility 0.73% The term structure shows a downward sloping average fitted yield curve. The simulated yield curve assumes a variety of shapes through time and downward sloping, hump shaped, and inverted hump shaped. In the term structure below, I represent the model predicted short-rates at different maturity. In the simulated short-rate interest rate curve, I represent the predicted short-rates at different point in time. On the vertical axis I have the simulated short-rates and on the horizontal axis I show year as a unit of time. In the term structure, I see that the short-rates approach to the equilibrium long-rate (derived from the historical rate). However, the Vasicek model predicts a negative long-rate. I have already discussed this problem in the previous section and this is why I deploy the CIR model to have the non-negativity constraint. Figure 2: Term Structure of zero-rate As mentioned before, I use three announcement dates for each phase of quantitative easing to testify the stability of our stochastic models. I observe that on the announcement dates, the short-rate ranges between 1 basis point to 17 basis points. Based on our simulated models, the predicted short-rate for June 2008 (month-end) lies in the vicinity of 2%, while the actual rate stood at 1.9%. However, our calibrated model predicts that the interest rate for December 2008 (month-end) would lie somewhere around 2.8% but as we know, since the first announcement date, the interest rate never rose above 32 basis points. Hence, clearly the model fails completely to forecast the future short-rate for any time period after the initiation of the quantitative easing. We have to keep this in mind that in order to make the QE program successful, the Federal Reserve kept its fed fund rate as low as 25 basis points which in turn governed all other rates in the economy as well which I have already do cumented in our event study approach. If I impose the current policy rate to be the starting point of the simulation, the model indeed diverges to zero-rate and takes the following form: Figure 3: Simulation of zero-rate movements using current (25 bps) overnight rate as the starting point In figure 3, I see that for June-2008 (as the initial point of the simulation is jan-2008), the simulated zero-rate is approximately zero percent. However, due the lack of non-negativity constraint in the Vasicek model, the rates become negative for a period of time. The CIR model however keeps the short-rate zero bound because of the non-negativity constraint. The day before the initial QE announcement date, the zero-rate stood at 13 bps and based on that, the trajectory looks like the following: Figure 4: Simulation of zero-rate movements using the day before the first QE announcement day as the starting point In figure 4, I see that the Vasicek model again predicted short-rates approaching towards the negative quadrant which is not possible. However, due to the non-negativity constraint, CIR model allows us to forecast quite accurately by keeping the short-rate horizontal asymptote bound. From our models, it is evident that, the models could indeed predict the impact of QE for the post-QE period when the initial starting point of the simulation is anytime in the vicinity of September 2008. In that time period the market agents were aware that the Federal Reserve was going to implement the QE1. However, it was not possible to predict the zero-rates accurately a year ahead or even six months prior to the initial announcement date. Looking at specific dates, it turns out that inverse humped and upward sloping shapes occur as well. All yields with their respective maturity times are a function of the short rate. Hence, the variance of a yield with an arbitrary maturity time strongly depends on the variance of the simulated short rate. Some of the simulated results have been presented below (see panel a-d). (a) (b) (c) (d) Panel a-d represent the simulation of the zero-rate movements using January 2008 as a starting point. Using the stochastic volatility parameter and long run equilibrium interest rate, I simulate the model assuming a standard Brownian motion. From the simulations, I see that the short-rate for June-2008, the rate ranges from 1.2% to 2.5% as mentioned before; the average of the simulated short-rates was 2.08%, while the actual rate stood at 1.9%. However, no simulation result approaches anywhere close to 32 basis points which was the highest short-rate I have noticed since the initial announcement date of the quantitative easing. This depicts the instability of the forecasting model for the post-QE period and the results remain the same for both QE1 and QE2 as the simulated rates never approach zero as far as one year time frame is concerned starting form January 2008. 6. Conclusion I document that QE1 and QE2 substantially lower interest rates on treasuries, highly-rated corporate bonds and agency securities across different maturity schedule. The impact of quantitative easing on Agency backed mortgage rates is large when fed purchases MBS along with treasuries (QE1), but not when it only purchases treasuries (QE2). From the movement of inflation swap rates, we see that the expected inflation increased significantly during the first phase of asset purchase program (QE1) and modestly during the second phase. I also see that US currency exchange rate fell both on QE1 and QE2 event dates and the effect was larger for QE2 events. Stock and future prices did not react immediately to the announcement dates. However, I document that the market agents did revise their expectation for the longer term. From our stochastic model, I observe that market models could predict the interest rate movements for the pre-QE period but the model failed to predict the interest rate m ovements in the post-QE period. This result signifies the significant interest rate movements as a result of QE. Feds QE program has successfully affected the interest rates and other asset prices. However, we have to wait for years before we know whether QE successfully triggered the wealth effect among the market agents. Bibliography Baumeister, C., and Benati, L. (2010). Unconventional monetary policy and the great recession estimating the impact of a compression in the yield spread at the zero loIr bound. European Central Bank. Bernanke, B. S. (1999). Japanese monetary policy: A case of self-induced paralysis. Institute for International Economics Special Report. Doh, T. (2010). The efficacy of large-scale asset purchases at the zero loIr bound. Economic Review. ECB (2010). ECB monthly bulletin October. Monthly bulletin, European Central Bank Gagnon, J., Raskin, M., Remache, J., and Sack, B. (2010). Large-scale asset purchases by the federal reserve: did they work? Federal Reserve Bank of New York. Hamilton, J. D., and Wu, J. (2010). The effectiveness of alternative monetary policy tools in azero loIr bound environment. mimeo. Kamada, K., and Sugo, T. (2006). Evaluating Japanese monetary policy under the non-negativity constraint on nominal short-term interest rates. Bank of Japan. Krishnamurthy, A., and Vissing-Jorgensen, Annette, The Effects of QE2 on Long-term Interest Rates. Kellogg School of Management, NorthIstern University and NBER, October 27, 2010 Meier, A. (2009). Panacea, curse, or non-event? unconventional monetary policy in the united kingdom. International Monetary Fund. Oda, N., and Ueda, K. (2007). The effects of the bank of Japans zero interest rate commitment and quantitative monetary easing on the yield curve: A macro-finance approach. The Japanese Economic Review. Stroebel, J. C., and Taylor, J. B. (2009). Estimated impact of the feds mortgage-backed securities purchase program. National Bureau of Economic Research. Ueda, K. (2010). Bank of Japans experience with non-traditional monetary policy. CIRJE F-Series, Faculty of Economics, University of Tokyo.

The Impact of Law Enforcement Tactics on Us - 1739 Words

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Case Study about Telecommunication And Content Management Of Boldflash

Question: Discuss about the Telecommunication for Study of Boldflash? Answer: Introduction The study of the report will shed immense light on the various divisions of telecommunication and content management. The technology and science of communication over a distance is defined as Telecommunication. One of the major focuses that drives human innovation is the ability to convey information efficiently, quickly and accurately (Shoretel.in, 2015). Communication remains a chief element for success and survival from prehistoric man with their signal fires to the smart phone welding high powered executives in the modern era. The telecommunication history illustrates this immeasurable push for the advancement as it parallels human growth, becoming more efficient and widespread as the improvement of recent civilization unfolds. The report, which contains three different sections, will enable the reader to gain gigantic knowledge regarding the use and need of telecommunication in various sectors (Burnett, 2011). However, the report is based on the firm Bold flash, which is a sma rt phone manufacturer division and is renamed recently (Hbs.edu, 2012).Moreover, the communication environment of Bold flash, along with the various areas of concern of the company has been discussed within the report at the desired section as per the need and requirement of the study. Milestone One Body of report Background and area of focus Almost two decades have passed during which various technical communicators have turned to Bold flash, to answer and ask questions regarding the ever changing world of technical communication. The firm bold flash mainly deals with the field of mobile communication and manufactuirng. These makes the management of the firm highly cautioned regarding the section of communication. Bold flash needs to keep them updated in the field of communication as most of the dealings of the firm are based on telecommunication with their clients. However, the detailed study of the companys history and method of communication shows that the firm is quiet up to date in the division of technical service communication (Lannon Lannon, 2010). Hence, any sort of modification is not needed in this section. Identically, the division of product documentation of Bold flash is updated as well. The product documentation is the process, which highlights the various technical manuals as well as online information of the particular product. Boldflash have quiet successfully dealt with this division in the recent past, which have also brought various successes to the doorway of the company. Alternatively, the major problem of Boldflash lies in the division of the internal business process, which has also made the firm suffered from various marketing and financial issues. Therefore, it can be said that the firm is facing immense problem in the division of the internal business process, which comprises of various pivotal elements of a business process. This element consists of identification of customer needs, innovation, operations and evaluation of the satisfaction of the customer needs (Lay, 2009). Hence, it can be stated that any sort of problem in these section can make bold flash suffer to a huge extent. The report will therefore focus in the area of the internal business process of bold flash, in order to extract the various loopholes form the process. These loopholes can disguisedly make the firm handicapped and hence fixing these problems are of utmost importance. The most important reason for fixing the section of internal business process of the firm bold flash is to meet the customer needs and customer satisfaction of the firm. These two components are the ultimate divisions of the internal business process, and Boldflash should keep these sections up to the mark in order to stay alive in the densely competitive market (Markel, 2011). Therefore, it can be argued that fixing this section immediately is of utmost importance. The ideal internal business process is represented below in the form of diagram, which will help the reader understand the ideal process with ease. Figure 1: Internal business process model (Source: Created by author) Key Stakeholders The organizations, groups, or individuals that are affected by the various activities of the business are known to be the stakeholders of the firm. Hence, in this case the stakeholders are the various individuals and groups of people who are affected by the internal business process. The identification of these people can be done in a group wise manner, which is given below: Identification of the customer need In this section the stakeholders are the various sales and marketing employees of bold flash, as they are majorly linked with the identification of the various needs of the customers. Design and Develop The designing section includes the division of production and designing of the firm, and hence the various employees of this section are the stakeholders. Make and Market Once, again the sales team of bold flash becomes the stakeholders in this division, but the customers as well as the suppliers of the firm can also be referred as the stakeholders. Service The customer care executives plays the major role in this division and hence they can be titled as the major stakeholders as well. Therefore, the evaluation of each of the above section shows that the employee, suppliers and the customers can be identified as the major stakeholders in the internal business process (Pain, 2012). The planning and communication pattern with these stakeholders in the internal business process should be started from the very basic sections. The planning should be done in such a manner so that each of the department gets involved in the whole planning process. This will make the employees of these departments educate regarding the elements needed for the planning process. The planning process should also include certain jobs, which should engage every employee of all the departments. This will provide them with a practical experience of the whole planning process and they will be able to identify the various pivotal elements of the process (Hutton, 2010). The communication between these stakeholders is of utmost importance, and hence, the communication process will be built with intense care. All the sections will have clear communication system with each other, which will enable the employees of the firm to communicate with each other, whenever needed. Hence, various updated technologies will be used in order to make the communication between the employees smooth and undisturbed. The communication process will start from the department, which is responsible for the identifying the customer needs and will end up at the department, which is responsible for evaluating the customer satisfaction. The flow of communication will be in a systematic manner as per the Internal Business process model. Established Practices The chief stakeholders that are involved within the whole process should be having communication within themselves (Book, 2010). Moreover, the sales team of the firm should be having fluent and undisturbed communication with the customers. This is of utmost importance as the generation of the sales revenue is massively important for bold flash. Therefore, it can be stated that the establishing of communication practices with the stakeholders is of utmost importance which can be done by establishing the below stated practices. Marketing team The marketing team of the firm should report to the higher department regarding the sales of each day. This should be done in technical manner, which will save time and will be less hectic as well. All the individuals of the team after the completion of the days work should make a report that will contain information regarding the whole days work. This report should be sent to the higher authorities and the administration department (Goodwin Vidgen, 2012). Implementation of this practice can make a smooth communication with the sales team. Production department The production department should be responsible for communicating their exact needs of raw materials, products produced and exact amount of work in progress. This will help the management of the firm to deliver the exact need of raw materials to the production department. Hence, a practice should be established, which will make the production department sent report on a three-day interval regarding all the mentioned section. Customer relation management (CRM) The CRM of Bold Flash should make a detailed report regarding the problem of each of the consumers. This report should be sent to the higher authorities and to the technology development team (Han, 2011). This will enable the technology team of the firm understand the exact needs of the CRM to communicate in a better manner with the customers of the firm. Feedback Implementation of taking feedback from the consumers of the firm will enable the firm to link and communicate directly with the customers of the firm. The consumers at the same time will also be enabling to gist up their views regarding the firm and its service (Wisdom, 2011). This can be done in a technological manner by creating a section of feedback in the website of the company. Framework for communication The communication between the technology team and the stakeholders of the internal business process should not face any sort of problem, as that can have various adverse effects on the business of the company. The technical communication strategies that can be implemented in order to build the continued communication between the technology team and the stakeholders are stated below: The marketing teams after sending the verbal report should make a detailed report using Microsoft excel. This report should contain all the various desired information regarding the work done. The team before leaving for the day must send this report through e- mail to the higher authorities (Holland, 2009). The production department should send the Cost sheet, via e mail to the higher authorities, which will enable the administration department to evaluate the exact need of the raw materials. The CRM department of the company should send the list of the customers that are not satisfied, by e mail to the higher authorities (Hirschfeld, 2011). Figure 2: Technical communication strategies (Source: Created by author) The non - technical communication strategies that can be implemented in order to build the continued communication between the technology team and the stakeholders are stated below: The marketing team should provide a hard copy of report, which will provide strong and perpetual communication. The innovation team should maintain a hard copy of the materials used and materials needed by them for the next three days. This report should be sent to the administration department in order to neglect any kind of scarcity of resources (Mitchell, 2011). The CRM department of the firm should provide details of the unsatisfied consumer, along with their full name, address and the problem in a hard cop format. Figure 3: Figure 3: Non -Technical communication strategies (Source: Created by author) Milestone 2 Tanning Plan: Communication The communication strategy has been built up in such a manner so that the new technical writers can understand their exact role in the company (Kleinecke, 2013). The writers at the same time also need to understand the working procedure of the firm. Hence, all this elements can only be satisfied by implementing a strong and stable communication strategy. The communication strategy that will be incorporated in the focused internal business process model has been stated below: Figure 3: Communication Strategy (Source: Created by author) The shown communication strategy will be of massive help for the new technical writers, as they will get a detailed view of what they need to do and achieve. The strategy will take them through the various stages such as reflection and learning, analyzing, and gathering information etc, which will help them immensely to growth in a high rate. Training Plan: Collaboration The collaboration strategies will help the new technical writers to understand the flow of the internal business process (Nels Haayelbarth, 2011). Therefore, it is of utmost importance that the stakeholder of the internal business process collaborates with the new technical writers. The collaborative strategies will play a huge role of significance in order to make the whole process successful. The diagrammatic view of the strategy has been presented below: This process will be appropriate for the new writers, as they will get a chance to communicate with the stakeholders of the internal business process in a verbal manner after collaboration (Fear, 2010). This process will also help the writers and the stakeholders to build up an understanding among them. Therefore, it can be stated that the collaboration process can implant a huge positive effect on the overall procedure. Tanning Plan: Vehicle The training vehicles refer to the various types of communication methods and instruments that are needed in order to establish a smooth process of training. The vehicles are selected as per the need of the training and to share the complete training procedure with the stakeholders and the trainees. The training vehicle will majorly consist of the meetings and the providing of the research samples. The subject matter of the entire internal business process will be highlighted with intense care to the new trainees and the stakeholders (excepting the customers) in the meetings sessions (Gurak Lay, 2009). Hence, it can be said that the vehicles selected can have huge significance on the new trainees, as they will gain a detailed idea regarding the whole process. Specific Guidelines The chief steps of the framework are the various technical and non technical communication tools that have been used in order to clear up the communication process. The guidelines in the technical process majorly consist of the e- mail conversations and sending of the desired information files. The new technical writers will be trained in a well constructive manner, which will majorly consist of meetings where they will be provided with various research materials (Hopkinson, 2014). Along with all these the writers will be provided with a detailed plan of the new internal business process, which will clear up their views regarding their exact role. Milestone 3 Selecting the methods of collaboration and communication that best fits the internal business process section and implementing the same within the new technical communication team The methods of collaboration and communication includes arranging meetings between the new technical team and the stakeholders of the companies to assess the internal business process of the company as the stakeholders are solely responsible for the internal business operations. Effective communication with the stakeholders will help the new technical team to get overall insights of their roles and responsibilities within the internal business process of the company (Feliciello, 2013). Additionally, the new technical communication will also be motivated and influenced by the stakeholders regarding the business process and their responsibilities. The communication will also enable the opportunities for the stakeholders to demonstrate clearly the usual requirements of the customers and the performance that they are expecting from those new recruitments (Gingell, 2009). Determining the target audience of the communication and the various dispositional characteristics and technical needs The personality traits such as dispositional characteristics, experience and technical needs of the different target audiences such as sales, marketing, operational, production, CRM are also different (Wilcox, 2012). In most of cases, the sales personnel are not highly educated but they are expected to have more field experience, knowledge of customers requirements and power to demonstrate the services effectively. Whereas, the marketing personnel are highly educated and their responsibilities include viewing the market, economy and customers from an analytical point of view, where the experience has a major role to play (Harwell, 2010). The production teams are mainly consisted with fewer highly educated personnel such as engineers and with a major portion or labors that are technically expert but not highly educated. Operational teams include a fair mix of both experienced and educated employees. Determining of the intended message that needs to be delivered and the evaluation of the reason of importance of this message to the target audience The message that has a huge significance and needs to be developed is the significance of communication. The adaption of the effective methods of communication is of massive importance as well. The reason that these messages are of huge significance is that the stakeholders and the writers needs to understand the massive importance of communication (Toker, 2012). This will help both the stakeholders as well as the writers to communicate with each other in a regular and formal manner. Hence, it can be said that the target audience of the process should adopt all the various methods and strategies of communication that has been explained, which will lead to a undisturbed communication within the whole system. Determining the success of the technical communication in delivering the intended message The success of the technical communication in delivering the intended message can be evaluated by monitoring the success of the communication strategies (Pykalainen, 2012). This strategies will work in a positive manner and will be successful in building up a strong communication between the writers, technical teams and the stakeholders of the process. This can be said as the various departments are bond to report and communicate through e mail as well as manual communication. This will remain all the departments updated regarding what is going on in the other divisions of the firm. Identifying the key steps of the framework The framework of the whole process is built in such manner so that all the departments involved in the process are benefited (Sturdy, 2009). The key steps of the framework are the elements and the processes that are used in the communication strategy. The guidelines are quite simple and clear as it states that the detailed study of the provided literature should ease the understanding of the whole process. Exemplifying of training The exemplifying of the training can be highlighted by evaluating the previous communication system of the firm. The previous system had a huge communication gap within all the departments and the stakeholders, which will be omitted easily by the new strategy. Moreover, the needs of the target audience will be meet successfully as communication will erase all types of gaps (Schumacher N.C, 2014). The mailing and reporting section of the communication practice that has been established will help the process to get established within a small span of time. Explanation of the adoption process of the communication practice and specifying the reasons for the made changes The first and foremost job was to identify the various loopholes, without which it was impossible to build an effective new process. The new process was then adopted, which has the main motto to resolve the communication gap within the department and modify the internal business process. The study also showed that the previous process had various communication gaps and the internal business process was backdated (Lay, 2009). This is the main reason for implementing various modified communication practice and developing the internal business process as well. Recommendation The firm was in need of a well-constructed and effective internal business process. The management of the firm needs to implement the modified business process at its earliest. Moreover, bold flash in order to resolve the communication gap should also implement the various communication strategies that are highlighted within the study. Conclusion The study brings us to the conclusion that internal business process and communication method with the stakeholders of a firm are of utmost importance and hence should not be neglected by any firm within the industry. The training process had a huge significance on the new joiners. This is because the quality of training will determine the amount of productivity that the new comers will give the firm in the near future. The study also concludes that the most important reason for fixing the section of internal business process of the firm bold flash is to meet the customer needs and customer satisfaction of the firm. The marketing team, production department, Customer relation management (CRM) and taking feedback from the consumers has a huge role of significance throughout the process. Reference List Books Burnett, R. (2011). Technical communication. Belmont, Calif.: Wadsworth Pub. Co Fear, D. (2010). Technical communication. Glenview, Ill.: Scott, Foresman Gurak, L., Lay, M. (2009). Research in technical communication. Westport, CT: Praeger Harwell, G. (2010). Technical communication. New York: Macmillan Hopkinson, H. (2014). Technical communication. Sydney: McGraw-Hill. Lannon, J., Lannon, J. (2010). Technical communication. New York: Longman Lay, M. (2009). Technical communication. Boston: Irwin/McGraw-Hill Markel, M. (2011). Technical communication Wilcox, S. (2012). Technical communication. Scranton: International Textbook Co. Journals Book, V. (2010). Categories, and Technical Communications. Journal Of Technical Writing And Communication, 9(4), 1-1. Hutton, V. (2010). 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Poverty Causes and Cure an Example of the Topic Economics Essays by

Poverty: Causes and Cure Poverty is the condition for the greater number of people in every country and possibly in the whole world. Reasons why this happened have been asked a million times by many. The poor individuals have been blamed for their plight. Indolence, indecisiveness and lack of integrity are several causes that have been thrown at these poor people why they are experiencing poverty. Another cause is the government. Their implementation of certain projects and laws were being questioned as these seemed to impair the growth and progress of their country. These causes of poverty and unfairness are actually true. Though most of the time the more serious and pressing global causes of poverty are, it is not given adequate time to be discussed. Need essay sample on "Poverty: Causes and Cure" topic? We will write a custom essay sample specifically for you Proceed Emerging countries and their governments are compelled to unlock their systems to fight with one another and with more influential and developed countries. To draw ventures, unfortunate nations go into an escalating pursuit underneath to distinguish who can grant lesser standards, lower salaries and affordable raw materials. This has intensified poverty and disparity for the majority. Creating a structure called globalization. Thus, it preserves the notable disparity laws of exchange or business (Cantillon, B. and K. Van den Bosch., 2003). Inequality is rampant globally while the world seems to revolutionize. The richest country even has the biggest difference between they wealthy and less fortunate weighed against other progressing nations. Majority of situations, world-wide politics and different fascination have guided to a distraction of presented supplies from household needs to outside business. In the past, political affairs and power play by the top leaders have intensified and heightened poverty and reliance. For that reason, poverty is not just an economic concern; it is also a matter of biased financial side or economics (Krishna, 2007). The people feel the hunger not because of inadequate sources of food, or overpopulation, but because they are broke to pay for the food. Political affairs and economic circumstances have led to poverty and reliance around the world. Dealing with world hunger thus entails taking in hand world poverty at the same time. If production of food is doubled and is supplied to a greater number of individuals while the primary causes of poverty are not taken into consideration, hunger will still pursue for the people will not be able to pay for their food (Betti G. and Verma V., 1999). Even non-emergency food assistance, which seems like a righteous cause, is disparaging, as it creates a low profit for farmers and can in due course, affect the whole economy of a poverty-stricken nation. If the more underprivileged countries are not given the ample resources to produce their own food and other items then poverty and reliance may continue (Cohen, M. 1998). Leaders from wealthy nations tell poverty-stricken countries that help and credit will only be provided when they show they are stamping out corruption. As it certainly requires taking into effect, the wealthy countries themselves are often committed in the prevalent forms of corruption in those indigent countries, and a number of economic strategies they prescribed have aggravated the problem. Corruption in emerging nations surely must be on top of the priority list, but also it must be the main concern of first-world countries (Heuberger, R.,2003). Assets are the key to change poverty. Assets change attitude. Therefore, the key to change poverty is to change attitude (cited in The Power to Change Hunger Results, 2007). Stable work, adequate human resources, and access to insurance benefits intensify the possibility of preventing poverty. Works Cited Betti G. and Verma V. 1999. Measuring the degree of poverty in a dynamic and comparative context: a multi-dimensional approach using fuzzy set theory. Proceedings, ICCS-VI, 11, pp. 289 301, Lahore, Pakistan. Cantillon, B. and K. Van den Bosch. 2003. Social Policy Strategies to Combat Income Poverty of Children and Families in Europe. Maxwell School of Citizenship and Public Affairs working paper no. 336 (January 2003), Syracuse University, New York. Cohen, Marie. March, 1998. Welfare Information Network Issue Notes: Education and Training Under Welfare Reform. Escaping Poverty: Building Assets for the Poor. August 2007. The Power to Change