The Oil Supply Dependence Of The Automobile Industry Research Paper

The Oil Supply Dependence Of The Automobile Industry - Research Paper Example The paper tells that considering the rising oil prices worldwide, there were recent attempts to pave the way to alternative sources of energy so as to gradually reduce the demand for oil. In 2010, Li, Xiaogu, Clark, Christopher, et. al. conducted a survey of the peoples’ likelihood that they will prefer flexible-fuel or hybrid automobile given the choice when they purchase one. The result showed positive response to less dependence on oil for automobiles. Statistics show a declining dependence on foreign petroleum since 2005, according to the U.S. Energy Information Administration in mid-2011. Nonetheless, what has been the actual situation pertaining to a dependence on automotive oil? There was an increase in the use of domestically produced biodiesel, ethanol, and natural gas. However, by the mere fact that crude oil from domestic production realized increase in demand, dependence on oil as source of energy remains high. Imported oil declined. As can be seen from Figure A, c onsumption of oil also declined in 2010. But there will be a growing demand for liquid fuels including oil in the coming years as shown in Figure B. For automobiles, the trend in demand for Motor Gasoline also shows a projected increase in demand. See Figure C. Even as the production volume of crude oil will be increased in the USA, the prices of oil will also increase in the coming years. This can be clearly seen in Figure D. Apparently, the people are feeling the financial impact of the seemingly endless price increases of oil in the world market as well as in the local market. There is a domino effect on even the prices of basic goods whenever oil price increases are announced. Oil price increases eventually jack up the prices of goods and services since sources of energy like gasoline, motor oil, and liquefied petroleum gas are part of the cost of production and operating expenses like transportation or travelling expenses. It reduces the value of family income because each doll ar will have a lower value in the sense that the same amount of money can only buy less and less as the prices of oil increase to push up the prices of prime commodities. Thus, people have been adjusting to these trends by finding ways and means to reduce dependence on oil. Many have resorted to alternative energy sources. 2. Analysis of the Problem The world has limited supply of oil while there has been increasing demand for oil. Tverberg, Gail E. wrote that oil supply of our world had stopped increasing since 2005 (Abstract). As a matter of fact, his report mentioned (3): â€Å"We show in this section that world oil supply constriction started about 2004 based on price trends, and that restriction affected primarily OECD countries†. It will take about 20 years to mitigate the decline in oil supply by producing alternative sources and by replacing vehicles capable of utilizing alternative sources (4). It was estimated that wind and solar energy sources can only contribute a n insignificant capacity for the production of energy compared to the total energy supplied by oil-based power generators. â€Å"Growth of emerging economies† (1) certainly led to an oil shortage given such a fact about no more rise in the production of oil supply. To confirm this phenomenon as of a very recent date, January 3, 2012, Brad Plumer of the Washington Post reported the prediction of Goldman Sach’s Investment Bank pertaining to oil production in the world, which says that demand will hit the production capacity of oil by the year 2013. China and India have reached 2.5 billion population. Their demand for oil in order to achieve economic growth was reported to be rising as a result of these two countries’ fast developments. In contrast, oil supply production

The Effect of the Increase and Decrease of Inheritance Tax in the UK Essay

The Effect of the Increase and Decrease of Inheritance Tax in the UK Economy - Essay Example Exchange rate is the value of two currencies relative to each other, like exchanging the US dollar for a certain number of British pounds. This may be floating which means it changes from day to day or it may be pegged to another which means that it may have a certain amount of its currency held in another currency. The former is volatile while the latter is more stable since their setting is by the government fiat. [Aguirre, A., Ferreira, A. & Notini, H., 2003] The exchange rates have been experiencing fluctuations in different regions of the world and this has had major impacts in these regions which have involved the private sector as well as the government and in some cases the government has had to play the role of the private sector so as to stabilise the rate. In this context the exchange rate rise has been on the fore front and this has had adverse effect and implications on the economic activities as well as the social aspect of the people in these regions. The rise if the f oreign exchange affects the foreign direct investment [FDI]. This is an international flow of capital that provides the multinational organisations and companies with control over foreign affiliates. The foreign exchange can influence both the total FDI and the allocation of this investment across different countries. The increase reduces the countries production costs and the wages relative to those of the foreign country. This means that the value of its currency depreciates relative to that of the other country. This means that the overall rate of return to foreigners is increased and this contemplates the overseas investment projects in a country. The increase in the foreign exchange may be sometimes anticipated and this will leads to higher costs of financing of the projects due to interest rate parity conditions. In these cases, multinationals prefer to fund their overseas projects from the local kit as financing from the local become relatively expensive. This covers their mo nitoring costs and even the capital that keeps on increasing. The volatility of the exchange rates affects the production flexibility and also the risk aversion. There arises a problem where the producer produces the goods without the knowledge of the exchange rates as they affect the rate of production and the actual level of employment. Where there was risk aversion, the investors demand that they be paid compensation for the risks they incurred as the higher exchange rate raises the variability of and lowers the certainty. In this case therefore, the high rates of exchange tend to raise the values of the investment projects and due to the high costs; the profits are reduced. [Goldberg and Kolstad, 1995] The Australian bank decided to leave the rate of cash unchanged, while the central bank highlighted on its ability to lower the benchmark of the nation’s interest rate so as to ease the inflation pressures. Fig 1: Graphical illustration of Australian Interest rates from Jan uary 2004 through January 2010 This rising exchange rate leads to the tightening of the monetary policy. This in effect raises the interest rates to higher levels which are visibly seen to rise faster in the short run than in the long run. The result of this is that the foreign investors hold foreign assets because of the increased rate of return on the domestic assets with the tightened monetary policy and they expect that the domestic value will fall in future. There arises foreign debt due to the high appreciation of the real exchange rate. These may make the local currency to reach parity against the foreign currency like it was for the euro against the dollar between Australia and US. [Aron, J., Elbadawi, I.A. & Kahn, B., 1997] Identify the possible causes of this appreciation and analyse the extensive implications on the Australian economy which was saved by the collapsing economy of the Australian government and economy. The appreciation of the real exchange rate brings diver se effects which are extensive the short term aspect of

Business Proposal Final for Thomas Money Service Essay Example for Free

Business Proposal Final for Thomas Money Service Essay The current financial status of Thomas Money Service Inc. needs attention to help improve its existing goods and services to overcome the challenges faced by the economy downturn. This proposal will address those issues effecting the profitability of Thomas Money Service Inc. and strategize affective ways to overcome those obstacles to return to profitability. â€Å"Thomas Money Service Inc. (TMS) has been in business since 1940† (University of Phoenix, 2012). The company started out granting small loans for consumer needs and evolved into offering business loans, business acquisition financing, and commercial real estate loans, (University of Phoenix, 2012). TMS expanded into equipment financing in 1946 under the subsidiary of Future Growth Inc. (FGI), (University of Phoenix, 2012). The venture in turn became very lucrative for TMS because of a huge demand in construction and forestry equipment after World War II (University of Phoenix, 2012). In 1951, FGI purchased an equipment manufacturing company building, selling, and financing their own building and forestry equipment and discontinued financing other equipment (University of Phoenix, 2012). For over 67 years it has been profitable and has stated in previous economic downturns that the company never had to lay off any of its workers, (University of Phoenix, 2012). However, in the current recession and after several natural disasters affecting forestry states, FGI profits declined last year by 30%. Home sales also declined, constructions slowed and caused FGI to repossess equipment and sell it at a discounted price. With the changing economic environment and profit loss Thomas Money Services Inc. has requested recommendations to help increase its revenue, determine its profit maximizing quantity, increase product differentiation, increase barriers to entry, and minimize cost of production. Market Structure and Elasticity of Demand Thomas Money Services Inc. operates in a monopolistic competition by offering products and services that can be differentiated and is very competitive with other sellers offering similar products for consumption. By creating an environment in which consumers looking to purchase equipment could receive financing and goods in a one stop shop has positioned TMS as leader in the market share in the construction industry prior to the recession. Because there are similar products available for consumers to obtain instead of FGI’s equipment, it has to differentiate its product and services as the best to have by nonpricing competition. The price elasticity of demand for Thomas Money Services Inc. from its original price of $1990.1 to its new price of $1732.0 shows the responsiveness of consumer to the quantity demanded of goods and services at its new demand of 182 million units from it its original demand of 123 million units shows that the PEoD is 3.70 resulting in TMS being very elastic. Although Thomas Money Services Inc. has not been a price taker but a price maker distinguishing it has a one stop shop for consumer’s construction equipment. The market has changed resulting in consumer finding alternatives to TMS goods and services decreasing revenue over the last year. â€Å"There are many domestic and international companies manufacturing construction and forestry equipment† (University of Phoenix, 2012). Because TMS offers elastic goods and services it has to continue to monitor the market to understand the demand. Recommendation Increase Revenue Increasing revenue is the objective for Thomas Money Services Inc. regardless of how the economy is doing. Because the market has declined in home sales, individual construction, and forestry equipment TMS should focus its marketing on hospital and nursing homes. According to University of Phoenix, not all sectors have been affected by the economic downturn hospital and nursing homes still have a high demand for new building (2012). These sectors are potential areas to increase revenue for TMS. Another area is in the price of equipment. To continue success in the marketplace the elasticity of demand plays a vital role. Currently, FGI has repossessed equipment and selling each unit at $1,732. From the demand chart below it will acquire revenue in the amount of $315,224 for the sale of 182 units. If FGI were to decrease the price to $1,634.3 per unit from the demand chart  below the demand will increase to 350 units sold, resulting in $572,005 in revenue. This will increase revenue b y $256,781 resulting in more profit to invest back into the company. Over the past years the data for demand is in millions. Table 1 Price Demand 1,990.1 123 1,732.0 182 1,634.3 350 1,252.0 380 732.1 400 622.3 456 Profit-Maximizing Quantity The monopolistic competitor maximizes profit by producing the output at which marginal revenue equals marginal cost (McConnell, Brue, Flynn, 2009). Marginal cost is the additional cost it would take to produce another unit of good or service. Marginal revenue is the additional revenue acquired from selling the additional unit. To reach profit-maximizing quantity Thomas Money Services will need to continue to increase output until its marginal revenue equals its marginal cost. Because TMS has been in business for more than 60 plus years it is currently operating in a long run curve where it earns a normal profit. Barriers to Entry Unfortunately, because Thomas Money Service Inc. operates in monopolistic competition there is relatively easy entry and exit into the market. When demand is high for construction and forestry equipment there will be surge of newer firms to enter the market because capital requirements are low. However, during this economic downturn many newer firms will exit because they will be unable to differentiate themselves from the longstanding branding and reputation that Thomas Money Services Inc. has had in the market. By making it more difficult to imitate TMS goods and service will result in an increase barrier to entry for newer competitors. Product  Differentiation In recent years, Thomas Money Service Inc. has decreased it advertisement revenue to having a commercial in the Super Bowl and a few other sporting events (University of Phoenix, 2012). In order to increase its product differentiation it will need to increase advertisement revenue to inform consumers of product differences, thus increase product branding and consumer loyalty. Since TMS operates in a monopolistic competition it has to advertise heavily to inform consumers of the benefits of its goods and services, especially in nursing home and construction magazines. When consumers prefer a specific product then within limits they will pay more to satisfy their preferences, thus making the product more inelastic to changes in the price in the long run (McConnell et al., 2009). Minimize Cost of Production While fixed costs have stay constant for various outputs of production for Thomas Money Services Inc. there are still ways to minimize cost. Installing proper equipment for processing and manufacturing the equipment and staying aware of the latest technology will help in cutting cost. By TMS shopping around for the best bargain in raw material and continually monitor variable cost to not exceed output of production. Combine project to offset prices for material for future projects Conclusion In conclusion, Thomas Money Service Inc. is a sound company that needs to adjust its strategy during this global recession to improve profits. This business proposal has addressed some of those issues to help increase its revenue, maximize profits, minimize cost, and differentiate it from its competitors. These recommendations are only few ways to overcome the challenges faced by TMS. Thomas Money Services Inc. will need to continue to monitor the market and their effectiveness to adjust to the ever changing-market. References McConnell, C. R., Brue, S. L., Flynn, S. M. (2009). Economics: Principles, problems, and policies (18th ed.). Boston, MA: McGraw-Hill Irwin. University of Phoenix. (2012). Thomas Money Service Inc. Scenario [Multimedia]. Retrieved from University of Phoenix, ECO/561 website.

Theories and Models of Memory

Theories and Models of Memory Baddeley and Hitch developed another model of short-term memory which is called working memory. The distinction between short-term memory and working memory is that short-term memory is frequently used interchangeably with working memory however the two of them should be used separately. Short-term memory refers to just the temporary storage of information within the memory whereas working memory refers to the processes that are used to temporarily organise, manipulate and store information. Their model also put forward instead of the short-term memory being a single store, it is in fact an active processor containing many different types of stores- the central executive, phonological loop, visuo-spatial sketchpad and episodic buffer. Central executive: The central executive is the main and most important component of the model which can be best described and known for attention. It is responsible for controlling and monitoring the operation of the slave systems known as the phonological loop and visuo-spatial sketch pad that have limited capacity, and relates them to the long-term memory. Within the central executive, it decides what information needs to be attended to and which parts of the working memory to send this information to in order to be dealt with. Also, it is its function to decide what working memory pays attention to whenever someone is completing an activity and another activity comes into conflict with it. The central executive basically directs attention and puts the activity most important as priority meaning it selectively attends the important stimuli and ignores the least important. Despite how important the central executive is in the working memory model, we know less about it compared to the two subsystems it controls. It is Baddeley who suggests that the central executive functions more like a system that controls attentional processes, rather than a memory store. This is unlike the visuo-spatial sketch pad and the phonological loop which are both specialised storage systems. Phonological loop: The phonological loop holds speech-based information for 1-2 seconds and is composed of an articulatory control process and a phonological store. The articulatory control process acts as an inner voice which practices information from the phonological store by repeating it again and again. An example of this is remembering a phone number we have just heard. As long as we keep repeating it in our heads, we can retain the information in working memory. The phonological store on the other hand is the inner ear. Spoken words enter the store directly meanwhile written words must firstly be changed into a spoken code before they can enter the phonological store. The working memory model has strengths and is supported by Shallice and Warrington (1974). Theyfound support for the working memory model through their case study of KF. KF was a brain damaged individual who had an impaired short-term memory. He struggled to immediately recall words which were represented verbally, but was fine with visual information. This suggested that he had an intact visuo-spatial sketchpad but an impaired articulatory loop, therefore showing evidence for the working memory models view of short-term memory. This finding couldnt be explained using the multi-store model of memory, which therefore put forward that the short-term memory was just one system. Visuo-spatial sketchpad: The visuo-spatial sketchpad is known as the inner eye and refers to what things look like. It also processes the temporary storage of spatial and visual information. It can manipulate visual and spatial information held in the long-term memory, and images in two and three dimensions, for example people can recall someones face they know from long-term memory in only two dimensions and can also imagine walking around their kitchen in three dimensions. Evidence suggesting that the working memory uses two completely different systems for dealing with verbal and visual information is that it is much harder to perform two verbal tasks at the same time because they interfere with each other and results in performance being reduced. The same applies to carrying out two visual tasks at the same time. However, a verbal processing and visual processing task can be completed at the same time because the information does not interfere. Furthermore, this supports the view that the sketch pad and phonological loop are two separate systems within the working memory. Gathercole and Baddeley (1993) also support the working memory model and they completed a lab study where people participating were divided into two groups. All of them had to complete a task which involved them following a moving spot of light. This would use the visuo-spatial sketchpad. At the same time as this was going on, one group also had to describe the angles on a letter, which was another task involving the visuo-spatial sketchpad. The other group meanwhile was given a second task that would involve and use the phonological loop and they were given a verbal task whilst following the light. The results were that Gathercole and Baddeley found the performance was way better in the participants completing tasks which used separate systems. Episodic buffer: The episodic buffer was added into the working memory model by Baddeley in 2000 after the model failed to explain the results of various experiments. It briefly stores information from the other subsystems, integrating it together, along with information from the long-term memory, resulting in complete scenes or episodes. It basically acts like a backup store which communicates with both the components of the working memory and the long-term memory. The episodic buffer is not limited to one sense only, unlike the other two slave systems. Its functions seems to weave visual memories, bind memories together and phonological memories into single episodes, which then become stored in the episodic long-term memory. The central executive chooses information from the phonological and the visuo-spatial sketchpad that go into the episodic buffer to then form an episode of memory. Along with this, the episodic buffer also appears to download episodes from the long-term memory, referring them to be analysed and possibly recalled to conscious memory.

Free Essay on Nathaniel Hawthornes The Scarlet Letter - Shades of Truth :: Scarlet Letter essays

Shades of Truth in The Scarlet Letter    No one is perfect and no one is exactly the same. Everyone sins, and that includes telling lies. Most everyone lies at some point, whether it be to cover something up or just make someone feel better. Or it can be both. We as people are very afraid of being judged in a bad way, so if a person does something sinful or shunned upon, they lie about it to keep their reputations protected. This opinion based on anothers life decisions is a hypocritical decision. We don't want it happening to us, however we do it when we hear gossip about others in our community. This is because people are very judgemental. This wasn't just applicable in 1650, or even 1850 when The Scarlet Letter was written, but it is still something that is going on today not only in America, but right here in North Central High School. Though most people know the difference between the truth and a lie, Nathaniel Hawthorne establishes that many people have different perceptions of truth because of denial, reaction to jud gement, and differences in moralities in the epic tale of The Scarlet Letter.    Many people deny their emotions, especially strict Puritans. They sell themselves to God and live for no one or thing else. They are givers, not takers, which is an admirable trait to some, but not Romanticist Hawthorne. In the novel The Scarlet Letter, there are strict Puritans like these. Hester Prynne is one example. She, like everyone in the world, commited a sin. However, it was a considerably bad sin: adultery. Even if the option, which wasn't presented to the reader, that her and Arthur Dimmesdale (her adulterer) were in love, it wouldn't have mattered because she would've felt bad anyway (Even though she didn't love her husband) the same thing would have come from it: complete and utter misery for everyone involved in the sin. This was because she denied HER emotions and went with whatever she thought God wanted her to do. Another example of denial blocking one similar definition of truth is Arthur Dimmesdale. He denied his past to have a better future. However, that didn't s eem to work because he killed himself in the end to stop his melancholy. He denied himself to his congregation and community. By violating the dignity of his position as a minister, he chose to violate it further by not telling anyone.

Michelangelo Essay -- Biography Biographies

biography on michelangelo â€Å"Trifles make perfections, and perfection is no trifle,† Michelangelo once stated. He is one of the greatest artists of all time and is unmatched by any other. Michelangelo is the creator of works of sublime beauty that express the full breadth of human condition. Yet, he was caught between conflicting powers and whims of his patrons, the Medici’s of Florence and Papacy’s in Rome. Michelangelo was born on the sixth of March in 1475, the second of five brothers in a small town called Caprese, in Tuscany. He always considered himself to be a Florentine, as did his father. Francesca Neri, his mother, was sick and frail. As a result, he stayed with a nurse in a family of stonecutters. It was there that Michelangelo decided he wanted to become an artist. When he turned thirteen, he agreed to apprentice in the workshop of Domenico Ghirlandaio. After one year of learning the art of fresco, he went on to study at the sculpture school at the Medici gardens. They saw his talent and he was invited into the household of Lorenzo the Magnificent. During the years that he spent in the Garden of San Marco, Michelangelo began to study human anatomy. He would perform autopsies on the corpses and study the muscles and bones in order to perfect his sculptures. In exchange for permission to study corpses at a church that administered a hospital, the prior received a wooden crucifix from Michelangelo. His contact with the dead bodies caused some problems...

Why Should HR & Line Managers Work Together? Essay

The primary reason human resources and line managers should work together is because both parties have a vested interest in ensuring the company achieves success. Through working together, line management becomes more proficient in tactical human resources functions. This frees up time for human resources professionals to devote more time to strategic HR management. Department Staffing The human resource department’s main function is to support the workforce needs of the organization. HR and line managers should communicate regularly and frequently to determine the skills and qualifications required for seamless operation of department functions. Whenever there’s a vacancy in a line manager’s department, an HR recruiter or employment specialist and the line manager review the job description for accuracy and completeness. During the recruitment and selection process, HR advises line managers on how to identify qualified candidates and existing department staff capabilities. Workforce Strategy Strategic planning between HR and line managers involves reviewing projections concerning future business demands to determine whether to train current employees to prepare them for promotion or to recruit candidates with higher level skills to augment the current employee knowledge base. By working together on immediate and future staffing needs, HR and line management benefit from reduced cost per hire and turnover. In addition, the organization benefits from appropriate succession planning and adequate staffing. Related Reading: Performance Management Training and development is an HR function that prepares line managers for a number of leadership tasks. One such task is conducting employee performance appraisals. Human resources trainers develop learning objectives based on line managers’ understanding of the organization’s coaching philosophy. Leadership training topics include how to provide employees with constructive feedback and how to conduct fair and unbiased assessments of  employee performance. HR and line managers should therefore work together to ensure the organization maintains a consistent approach to performance management. Inconsistencies within an organization’s performance management system negatively impact employee job satisfaction, which is another reason HR and line managers should work collaboratively. Conflict Resolution Workplace conflict is inevitable whenever department employees represent different cultures, work styles and personalities. When conflicts arise, line managers typically seek the advice of HR in resolving issues between employees or issues between employees and their managers. If there is already dissention between HR and line management, it can be difficult for human resources to determine what underlies the conflict and how to resolve it. A positive working relationship between HR and line management facilitates easier handling of workplace investigations and mediating differences between staff. When HR and line management work together, it’s easier for HR to investigate workplace issues because the human resource staff may have greater confidence that line managers document their employment actions and decisions appropriately and according to company policy.