Individual 4 international trade operation Essay

Individual 4 international trade operation - Essay Example This may greatly affect the success of such products taken to the markets. Any change in the international markets will greatly hinder the competitive success of such goods in the markets thus leading to staggering economic growth rates. Therefore, it means any form of currency fluctuations solely affects such goods priced in the local currency (David and Stewart, 2010). In addition, it is of crucial significance to acknowledge the fact that pricing of goods in the local currency is effective in easing price negotiations. The ease in negotiation of prices is core in ensuring business success. As such, the customers will be ready and willing to participate in the purchase of such goods with relative ease. Pricing of goods in US dollars is quiet advantageous in several perspectives. First, in cases involving fluctuations of prices in the international markets, the effects are borne by the customers but not the producers (De, 2011). In this regard, the issue of pricing of goods in the U .S dollars becomes beneficial in the international markets. The customers themselves must meet any financial inequity and challenges that may face such goods in the international markets. This eases the financial burdens on the side of the exporters. However, it is critical to note that pricing of goods in U.S dollars may be disadvantageous at times. This follows that pricing of goods in U.S dollars makes the process of price negotiations difficult (David and Stewart, 2010). This can greatly influence the fate of such products in the international markets. Rate parity theory is a theory that relates the interest rates between two countries in terms of their differences and the effect that has on the foreign exchange rates (David and Stewart, 2010). The theory states that the difference that exists between the interest rates between such two countries becomes the difference realized in terms of foreign exchange rates as well as the spot rate regarding their currencies (De, 2011). The rate parity theory can be used to predict the future exchange rate in several perspectives. First, with regards to the future purchasing power parity, the future exchange rates of two different currencies can be predicted using the formula below. Where (S1) is the Spot Exchange rate at the end of the period, (S0) is the spot exchange rate at the beginning of the period, (1+ IF) is the foreign inflation rate and (1 + ID) is the domestic inflation rate. It is of critical importance to acknowledge the fact that the major determinants of future real exchange rates depends on the nature of economic activities including growth in manufacturing leading to rise in economic productivity (Murthy, 2010). This may also have some effects in the Forward Exchange Rates. Currently, the Spot Rate of Egyptian pounds relevant to the U.S dollar is at 6.89 and their Interest Rates is at 8.25%. However, the Interest rate of United States is currently at 0.25 %. The Forward Rate can be calculated using t he formula below. Forward Rate = Spot Rate X (1+Interest Rate of Overseas Country)/(1+ Interest Rate of Domestic country) The current Forward Exchange Rate for the United States and Egypt can be calculated as shown below. 1 USD = 6.89(1+8.25%)/(1+0.25%)= 7.44 Egyptian Pounds. The Monetary policy refers to a system by which the monetary authorities, including

The deterance the death penalty offers Research Paper

The deterance the death penalty offers - Research Paper Example The work at hand presents the point that death penalty indeed has the capability to control the prevalence of murder and other related capital crimes. Critical analysis of the available literature concerning the issue is included. Anti-death-penalty proponents like John Blume, a law professor with the Cornell Death Penalty Project, concludes that there is no credible evidence to support deterrence of murder and capital crimes with the implementation of death penalty. The main justification of their points stands on the ground that â€Å"If deterrence worked, how could Texas which executes a dozen inmates a year, have a higher murder rate than Colorado, which has executed one murderer in more than four decades?† (Booth). In 2009 survey, more than 88% of criminologists believe that the death penalty was not a deterrent to murder, a result showing strong link to the consistent lower murder rate of non-Death penalty states compared to those that are employing the Death penalty (Th e Death Penalty and Deterrence). Daniel Nagin, expert in criminology and statistics at Carnegie Mellon University, said in an interview, â€Å"The studies have reached widely varying, even contradictory, conclusions. Some studies conclude that executions save large numbers of lives; others conclude that executions actually increase homicides; and still others conclude that executions have no effect on homicide rate† (National Journal staff). In 2002, part of the annual Texas Crime Poll revealed that majority of the respondents showed support for the death penalty, but a substantial number of them also showed lack confidence on its use while others supported moratorium on executions (Vollum and Longmire 521). After concluding a research study that says each execution saves five lives, H. Naci Mocan, an economist at Louisiana State University, said, â€Å"I personally am opposed to the death penalty, but my research shows that there is deterrent effect† (Liptak). Mocan a dds, â€Å"Science does really draw a conclusion. It did. There is no question about it. The conclusion is there is a deterrent effect† (Tanner). However, legal scholars refuted this idea, specifying the point that theories of economists do not apply to the violent world of crime and punishment, as they might be linked to faulty premises, insufficient data and flawed methodologies (Liptak). This is all the same point which by Fox and Radelet state against the research study of Ehrlich and Layson. The measurement of the deterrent effect of death penalty has been critically considered from another wider point of view when Ehrlich’s and Layson’s works reveal the importance of using the economic perspective on the issue by employing economic model, which could show further that every execution may possibly deter as many as 18 homicides (Fox and Radelet 30). However, Ehrlich’s economic model is said to have failed to provide conclusive evidence supporting the deterrent effect of capital punishment (Chan and Oxley 1). However, Fox and Radelet scrutinized Ehrlich’s and Layson’s methodology by understanding the flaws involved in using econometric model, data quality, time period, negative bias, and aggregation bias and even the misinterpretation of Layson’s findings. Unconvinced of the above general claim, the proponents of the death penalty argued that the murder rate could