International Finance (Compare between the current rate and The Essay

International Finance (Compare between the current rate and The temporal method) - Essay Example Thus, the use of the current rate method and the temporal method of foreign exchange come into play. This paper looks at the each of the two methods and compares them. The current rate method involves the conversion of foreign currencies, Items on balance sheets and income statements at the exchange rate that is current (Investopedia, 2009), hence the name. On the other hand, the temporal method converts the same based on time (Investopedia, 2009). That is to say, if an item is valued at the market cost then the current market rate is used and if it is valued at historical cost then the historical rate is used to translate the value of said item. Of these two methods, the current rate method is the more popular. This is because unlike the temporal method, which is constantly changing, this method is more static and has only one variable, which is the current exchange rate. Also rather than recording profits and losses associated with the conversion in the net income, it is recorded and presented in a reverse account. This creates simplicity in the interpretation of the earnings. The temporal method combines the two, losses/profits, and net income thus causing the volatility of the earnings expected From the above, there is a clear advantage in the use of the current rate method as it provides more accurate and static results trough separation of net income from the losses and profits compared to the temporal method, which consolidates losses/profits with the net income. Also current rate method depends only on the current exchange rate while the temporal method relays on the current or historical market depending on the nature of the value of the

Business Law Essay Example | Topics and Well Written Essays - 500 words - 16

Business Law - Essay Example One such case referred in the article was decided in 1991 at California in which a developer named Mark Borough California, Inc. litigated against consulting engineers. These engineers designed an artificial lake but its liner failed and therefore a $5 million amount was claimed against the engineers. So the engineers took the position that the contractual agreement involved the limitation of liability clause that restricted their liability to their fee earned on the project i.e., $67,640 and the trial court accorded with the engineers. Succeeding cases endorsing ‘LOL’ include Valhal Corp. v. Sullivan Associates, Inc., Union Oil Company of California v. John Brown E&C,., and R1 Associates, Inc., v. Goldberg-Zoino & Associates, Inc. Although such cases also exist where the claim was overturned by the court, for instance Ricciardi v. Frank. This case was settled in New York city in which a house owner litigated for the failure in problem identification in the water encroac hment in the basement. The LOL clause constrained the liability of engineers in this case to only an amount of $375 but in this case the clause was ruled to be as invalid as it didn’t entailed the option for the house owner to buy complete protection and the clause was provided in the inspection report after the inspection had been done (Fishman, 2011). The article provided the ways to increase the chances of enforcement of this clause. It has been presented that if the clause has been inserted into by parties having equal strength to bargain, and its drafting has been clarified, it will lead to enforcement unless the state law contrary to this clause exist or it has been decided that the clause enforcement had been unconscionable. The article recommends negotiation of the LOL clause among the two parties. The limitation offered on the liability should be equitable. The article offered

Case analysis of National Logistics Management Essay

Case analysis of National Logistics Management - Essay Example The company was founded in 1991 by Taylor, right from the start the company implemented an innovative approach- premium shipments were put by bid to the definite group of carriers. The former had to respond quickly in order to receive the order. Once several responses had been obtained the contract was awarded to the best bidder (the winner was determined by the number of factors: the price, the quality of the services provided and etc). NLM tracked the status of the order until the goods had been delivered, keeping all parties informed. Despite the obvious fact that this system was more convenient and more efficient, some carriers as well as plant managers were dissatisfied with it, but NLM took several steps to remedy the situation. The company has maintained its approach since 1991.The innovative strategy implemented by company has several important advantages: it saves time and money by allowing all parties involved in the process to communicate instantaneously without making sev eral phone calls and by expediting the process of premium freight. By now the company has managed more than 1.3 million of shipments, it has extensive network in North America and has build steadfast group of carriers. Environmental analysis. In today's world of ecommerce and internet, when goods and services can be purchased instantaneously online, only those companies that implement new technologies will be able to survive; thus the logistics companies have had to use internet to inform their clients about quotes, facilitate the shipments of the goods and track other information. Moreover, transport companies combined their resources with manufacturers and internet companies to expedite the delivery of their goods and improve the efficiency of the shipment. One of the most famous examples is the alliance of Ryder System Inc with Toyota, which was formed in order to increase the quality of transportation management. This process was also evident in airline industry where airlines use web-based systems in order to expedite business transactions. The implementation of high technologies into logistics industry has improved the quality of its business enormously. The notable reduction of the costs of logistics companies from 20% of GDP in 1960 to 10.5% of GDP in 1996 is one of the few results of this process.By 1999, internet based logistics companies had become ones of the most important players in the industry, and the shares of non-asset based carriers traded higher than the shares of asset based ones. Such companies as Celarix introduced new services such as g lobal tracking and landed cost assessment. Transplce, another player in the industry, increased the freight density across the carrier base of the company. Several other companies implemented new strategies as well. From the examples mentioned one can see that internet technologies have been playing one of the

Franchising Marketing Essay Example | Topics and Well Written Essays - 3000 words

Franchising Marketing - Essay Example Franchising has been recognized as a successful business model leading to accelerated expansion of the new store with local control of the franchise owners assuring lesser financial risks with rewards associated with local ownership which requires lower level of supervision and economies of scale. "The most widely accepted definition of a franchise refers to a contractual relationship between a franchisee (usually taking form of a small business) and a franchisor (usually a larger business) in which the former agrees to produce or market a product or service in accordance with the blueprint devised by the franchisor"(Stanworth et al. 1995) Management Structures: Franchising is primarily defined in terms of the legal business agreement between two partners, the franchisor and the franchisee. The franchisor, who has previously established a market-tested business package of products or services, enters into a continuing contractual relationship with a number of franchisees, typically small business owners, who must operate their businesses according to the franchisor's specified format (Curran and Stanworth, 1983). The franchisor provides a proven method of operation, support, and advice on the setting up of the new franchisees, and also guarantees continuing support to the franchisee. In return, the franchisee pays a lump sum entrant fee and other charges for regular services (that is, royalty on sales, advertising fees, marketing levy) (Fulop and Forward, 1997). Franchising has been adopted a growth strategy for many firms in business with the advent of globalization. It is a different from other form of business. A f ranchise is a hybrid form of business characterized by complex contractual arrangements (Eisenhardt, 1989). Though many franchises operate between hybrid and the hierarchy (centralized or organizational) firm and incorporate both the franchised units as well as the company owned outlets (Brickley and Dark, 1987) In a hybrid operation, the franchisor monitors and controls the franchisee within the limits specified in the franchise agreement. In contrast, the franchisor operates company-owned outlets through his or her authority over a centralized bureaucracy or as a hierarchical organization. The resource scarcity theory and the agency theory explained the theory of franchising around the hybrid and hierarchy forms of franchise organization. Support for the agency theory as a rationale behind franchising was substantial. Research found that the franchisee motivation as an agent was perceived to be the most important strategy of the franchise firms (Oxenfelt and Kelly, 1968-69) while the capital advantage of franchising, which was proposed by the resource scarcity theory, had a low acknowledgement by the franchisors (Lillis, Narayana and Gilman, 1976). The franchisee's high motivation was probably derived from the nature of the franchise relationship. Franchising involves an exchange relationship between franchisor and franchisee which was sometimes described as a partnership or strategic alliance (Stanworth and Kaufmann, 1996). The franchisee is simply managing an outlet featuring the corporate strategy of the franchisor and to a certain extent possesses a degree of autonomy in managing the outlet (Dant and Gundlach, 1998). Unlike the company-owned manager, the franchisee enjoys more dependency in running the day-to-day business Franchisee and Franchisor: The

LAW Essay Example | Topics and Well Written Essays - 2000 words

LAW - Essay Example It is not more than 100 words and focuses solely on defining the reader what the writer is going to talk about. ADR is one of the subjects of discussion, and the writer starts which the explanation of ADR which also includes the definition of the same. After having explained the concept, the writer further dwells into the understanding and the functioning of ADR. He argues the advantages and the disadvantages of ADR. It also involves the study of different types of ADR and their functions with regard to the settlement of the disputes. The writer has given a brief explanation of each and every type of ADR and their different approached towards the settlement of disputes. The writer in the third structure talks about Litigation which is also known as Court Trial. Over here he defines and explains what we really mean by Court trial and how it functions. After having discussed the brief functions of Court Trial, the writer then dwells on the advantages and the disadvantages of Court Tria l. The writer goes deep into the advantages and disadvantages of Court Trial and concludes with the same.Question 2 Question 2 Court Trial and ADR Introduction In Halsey v Milton Keynes General NHS Trust, the Court has the following observation: â€Å"All members of the legal profession who conduct litigation should now consider with their clients whether disputes are suitable for ADR†.... Despite a lot of negativity having been spread about ADR in recent years, the fact remains that ADR is now the most sought after mode of settling disputes and due to its simplicity it has become the major force to reckon with for lawyers. It was held in the case of Halsey v Milton Keynes the following: â€Å"the courts will not refuse costs to a successful party unless it was shown that the successful party acted unreasonably in refusing to agree to ADR. The normal order of costs made to the winning party (costs follow the event – crudely stated â€Å"the winner takes all†) would not apply if the successful party acted unreasonably.† Understanding the point of view given in the above case, it can be inferred that the Courts made it clear that it would not obligatory on the part of the parties to opt for Arbitration; however, in the same proposition Courts do feel that the parties should try their utmost best to opt for ADR in settling the disputes. ADR can be div ided into two types. The first form of ADR is resolving and settling disputes outside the official judicial mechanisms. The second form of ADR is to resolve and settle disputes informal to official judicial mechanisms. It involves the informal tribunals and informal mediation processes as well as formal tribunals and formal mediation processes. Let us discuss the forms of ADR before we move further. ADR consists of the following means: a) Arbitration b) Mediation c) Conciliation d) Negotiation All these forms of ADR are extremely popular within the legal profession. Arbitration is the form of settlement of disputes where the matter is given to an independent party

Performance Measurement in a Post Merger Integration Process Essay

Performance Measurement in a Post Merger Integration Process - Essay Example The objective of any merger is to increase the value of the enterprise which means the there is always an objective that helps the company to come up with such a strategy to merger with another company. This is mostly seen as a long term strategy culminating from inside research in the market as there is not firm which would like to lose its identity in the market as a result of the merger. (ndrade 2001, p. 106; Ronald and Suzanne 2000, p. 5) In the recent past, there have been increasing interest on the issue of mergers. Many people have tried to look at the effect of those mergers in the face of looking who are the real winners and who are the real losers of merger. There have been many studies which have been looking closely into the issue of outcome of the mergers and acquisitions. The outcome of these two processes has been evaluated on many grounds from economic, communication, and other performance standards. (Caves 1999, p. 4; Lipin 2000, p.4) Once we realize that the objective of any merger is to increase the value of the enterprise in the market in order to create a formidable force the can compete effectively with others in the market, it will be easy for us to analyse then how does a merger affect the operation of each firms after they merge. This paper will concentrate on assessing the post merger effects on trust building performance and communication in the new enterprise. It will review various literature and findings that have come from many researches. (Ghosh 2001, p. 13) Outcome of mergers Many studies that have conducted research on mergers and acquisition have basically centred on some of the interesting characteristics of the mergers. They have been able to categorize the effect of merge on three broad classes. The first class consist of measureing performance after a merger based on share price. The second one has categories it on profitability while the class takes in many studied which have used other effect of merger success. (Paul 2002, p. 49) As we mentioned earlier the aim of any merger is to ensure that there is success of a business. This success should not only be measured in term of finical success but also in the degree of integration the two firms. In this regard cultural integration is one of the most important aspects that help the merger to succeed. Whether a merger can be considered a success based on the financial implication depends on many factors including the benchmark that is used to evaluate the merger. Many studies have concentrated on the share price of the firm pre and post merger as a measure of success in themes. This is often based on the confidence the investors will have on the merger. In this regard, the revenue of the firm is used as bench mark for evaluating the success of the firm since the dynamic trend in the share price of a firm will depend on the revenue collection of the firm. (Sitkin 1996, p. 17; Kaplan 2000, p. 243) Based on the financial performance of the mergers, studies that have been carried out shows that 82% of all mergers evaluated have shown success in the share price and economic performance. However it has also been shown that more that 50% of all mergers do not meet the expectations of the investors with majority of them failing to attain the objectives of the new merger. Once a merger is planned, there

Human behavior Essay Example for Free

Human behavior Essay Behavior of individuals in various settings is at times very difficult due to ethical constraints. This includes the investigation of why people take risks or gamble with their decision making processes. However, it is quite interesting to note that on situations which are not so threatening for individuals, it is apparent that people typically take risks in picking their options or when making their final choice. The following shows available data on human motivation and the theories surrounding the topic. Risk taking is defined as engaging in any activity with an uncertain outcome, as one scholar puts it. Theories of Motivation on Risk Taking Different theories describe and explain risk taking and why human beings are motivated to pursue or engage in activities or behavior that put their lives in much danger or create an element of risk of whatever form. The following are taken from current literature in the field of human behavior analysis. 1. Psychoanalytic or Psychodynamic Theory. Following the tradition of Freud, human motivation to take risks is taken from the basic understanding that when people feel fear in a certain situation or occasion, it is not good to overcome that fear. Freudian theory condemns outrightly risk taking as plain insanity. It reasons that to risk man’s very life has no warrant at all. It is nonsense. In other important spheres of life, however, to risk is inevitable and deemed necessary. There are many successful people in the business world who are known as risk takers (Llewellyn, 2003). They succeed, in fact, because of this unique attitude in them which is considered foolhardy in other realms. While it is true that life is the most precious commodity a man could ever possess, and to risk it is foolishness, it is equally true that not to risk at all in other areas means cowardice and immobility. Psychoanalysts even treat risk-taking behavior as a symptom of â€Å"a diseased mind. † Because for them, life is not to be gambled, therefore, it is insanity when someone chooses bungee-jumping as his/her sport (Llewellyn, 2003). 2. The Evolutionary Theory. Evolutionary theory explained man’s adventurous nature as simply an expression of his primal instincts (Llewellyn, 2003). Assuming that Darwin’s theory is correct, that man evolved from apes like common animal, a human early in the evolutionary process had to fight for his life to survive. This survival nature, according to this theory, is retained in modern man’s genetic make up (Llewellyn, 2003). This is the reason why even those people in the elite echelon of society choose to use their favorite sport like riding a dirigible as their campaign tool to promote their business. The problem with this theory is that it has remained to be unproven and lacking in evidences as yet. Humans are not proven to have descended from apes. 3. Contemporary Theories a. Extroversion and Introversion Personality theories contend that this two broad scope of personality traits capture the individual’s propensity towards behaving in certain ways. Extroversion helps explain why some people tend to be outgoing and hence, the greater the probability to engage in risky decisions (Llewellyn, 2003). b. Emotional Stability and Neuroticism This is another of the Contemporary theories that shed light on traits that remain stable over a period of time, clearly indicating which may best describe an individual and what differs him/her from another. Emotionally stable people, as those who posit on this model, may take risks but have taken many things to great lengths in order to get the best possible option or alternative (Llewellyn, 2003). Conversely, people who are more on the neuroticism side manifest the greater tendency to take risks without much weighing on the consequences. The tendency to be impulsive is to a higher degree present in individuals under this category. 4. Eysenck and Costa and McCrae’s model These two theorists added their own version to the array of personality theories. The former has the Psychoticism versus Humaneness dimension while the latter two theorists added three dimensions: Openness to Experience, Conscientiousness, and Agreeableness. The main argument against these classifications is its narrowness in explaining and categorizing the complexities that make human behavior (Llewellyn, 2003). While they help explore different behaviors or attitudes, there are more that remained unexplained. Until now, certain serial killers or murderers, defy the above mentioned explanations of human behavior. 5. The Zuckerman ‘Sensation Seeking Trait’ Although an expansion on one of the features of Psychoticism and Humaneness model, Sensation Seeking helps also explain the differences between individuals. There are people who do have a higher degree of this trait; like more men seek sensation-enhancing-experiences or â€Å"venturesome† traits, while others have very minimal of this trait. This is what Zuckerman refers to in his Sensation seeking trait theory. What other experts consider as this theory’s limitation is embedded in the matter of other personality traits’ influence on risk taking behavior other than this trait by itself. Studies reveal that the psychological profiles of risk takers are diverse and the universality of this trait is still further being investigated (Llewellyn, 2003). Risk taking is a fascinating area of interest for many students of human behavior. When explored through the eyes of a Psychoanalyst, the subject becomes even more intriguing because Freudian understanding possesses an attractive alternative to the more cognitive way of assessing risk taking behavior. When the subject of evolutionary psychology of explaining risk taking behavior is concerned, it contains a ring of truth in it that many today are convinced of its manner of explaining behavior. Instinct is still a potent facet in behavior that cannot be eradicated from the study of behavior of humans (Llewellyn, 2003). When people are confronted with the distinctiveness of the human personality, the dimensions are almost unlimited; some experts opt for the multi-dimensional method while others choose the narrow and concise way. All of these approaches have their strengths and weaknesses; degree of breadth and limitations. However, they are good and profitable for jumpstarting further explorations into the human psyche and its accompanying expressions. Reference: 1. Llewellyn, David J. 2003. The Psychology of Risk Taking. Accessed in www. risktaking. co. uk.