Technological advancement has led to the change of business practices. The use of computers in the business premises has contributed to faster means of carrying out transactions, safer way of keeping records and saving time. This is particularly in retrieving important documents. Documents are accurately stored which prevents loss of important documents that are used for future decision making and auditing among other benefits (Brown 2008). On the other hand, adoption of e-commerce has also changed the current business practices. It has contributed to an easier way of reaching customers across the globe without travelling, thus increasing sales that in turn lead to increased profits. It is a confidential way of conducting business as communication is only between the buyer and the seller without the use of agents. It has both negative and positive effects towards individual nation-states. Use of modern technology contributes towards economic growth as it leads to increased government revenue through taxation. It has also led to unemployment as use of computers and e-commerce in businesses has replaced large numbers of casual laborers.
Global treaties should be adhered to by a member state without any compromise. Industrialization has been the dream of every country but has also contributed towards environmental degradation. Many treaties have been signed such as the Kyoto agreement of December 1997 with the aim of controlling emissions released to the environment such as greenhouse gases. The effectiveness of such treaties and their implementation is solely achievable via unity among the developed countries such as the U.S, thus U.S should assume a cooperative role in such treaties.
In most cases, the hero undergoes harsh situations in life which in turn makes their roles become unique and different from others. She believes that even in cruel, harsh societies, courage will rise. In order for her to fight fear, courage has to rise under any circumstance. Harsh and cruel societies make heroes to be more courageous, and thus this makes her believe that the courage will rise despite life challenges. For example, the late Nelson Madera from South Africa never allowed fear to dictate his actions despite the challenges he faced during the struggle for independence.
The foreign exchange market is a decentralized global market dealing with trading of currencies (Michalowski 2011). The main active players in this market are the larger national banks. It assists international investments and trade through enabling currency conversion. For instance, it permits a business from a country as United States to import goods from another country such as European Union member states. Especially in Eurozone members, the U.S business pays in Euros even if its income is in United States Dollars. It also supports direct evaluation and speculation relative to the currencies value, and the carry trade. It also speculates differences in interest rates between two currencies.
Different factors precipitate a currencys strength. Many economists think that the strength of a countrys economy determines the strength of its currency, but the question remains why the British pounds are stronger than US dollars yet their strength of their economy is otherwise. Firstly, low rates of inflation in a country increase the nations value of currency as well as purchasing power in relation to other currencies.
Secondly, interest rates that are directly correlated as when one increases the other factor increase. Relative strength of other currencies obviously affects the exchange rate of a countrys currency in the foreign exchange market. Capital mobility which is classified under three main categories which include external debts, foreign direct investment and portfolio investment (Etwaroo et al. 2008). Political and economic factors used by investors when determining which countries to make investments that in turn strengthen the countrys currency. Other factors include speculation and balance of trade.
Trade barriers refer to government-included restrictions on international trade. These trade barriers can take different forms such as tariffs, non-tariff barriers to trade such as export licenses, import licenses, import quotas, voluntary export restraints, currency devaluation and trade restriction (Cohen 2010). Trade barriers are criticized for their effect on the developing countries. Trade barriers like taxes on food imports or farm inputs subsidies lead to overproduction and dumping on world markets by developed countries, hence hurting poor-country farmers and lowering prices of goods. Tariffs also tend to be anti-poor, with high rates of labor-intensive processed goods and low rates for raw commodities. Another negative aspect related to trade barriers is that it would lead to limited choice of production thus forcing customers to accept inferior quality at higher prices.
Almost all world countries have been experiencing strikes and labor unions revolts. Negotiations towards solving such problems have at times failed as different companies opt to find other alternatives rather than increasing salaries. The current wage rate in the United States and increased cost of living perhaps have been affecting production rate of different companies. If the prevailing wage rate and increasing cost of living continue, production rates continue to be pushed out which may affect the economic growth rate.
As discussed above, different economic factors affect the strength of a countrys currency. Of late, European countries especially those in Euro zones have been experiencing political unrest, price fluctuations, inflation, loss of market, and increased cost of living among other economic upheavals. These challenges may cause the collapse of Euro. This may make the US dollar stronger compared to Euro if America avoids such economic crises and implement strategies of strengthening the currency.
Brown, R. (2008). Lasers, tools of modern technology. Garden City, N.Y.: Doubleday.
Burke, C. S., Pierce, L. G., & Salas, E. (2009). Understanding adaptability a prerequisite for effective performance within complex environments. Amsterdam: Elsevier JAI.
Cohen, R. B., & Ferguson, R. W. (2010). Nontariff barriers to high-technology trade. Boulder, Colo.: Westview Press.
Michalowski, G. (2011). Attacking currency trends how to anticipate and trade big moves in the forex market. Hoboken, N.J.: Wiley.