The RBA intervenes in order to stimulate or slow down economic growth through three methods. A direct intervention used by the RBA would be the method of “dirtying the float”. This involves buying or selling that Australian dollar to force its value up or down. When the RBA buys Australian currency they are increasing the demand which would cause it to appreciate and an expansion of supply whereas if they were to sell Australian currency, they would be increasing the supply causing a depreciation. This method is limited by the RBA’s holding of different currencies as well as competing with foreign investors.
As exemplified in the stimulus, an appreciation of the Australian dollar, however, can have adverse effects on volumes of imports and international competitiveness. For this, there is a possibility of some industries to struggle. It is important to be able to measure the value of the Australian dollar for many reasons, that range from being able to make an informed business decision or, propose government initiatives and stances. A useful way of measuring the value of the AUD is through using the trade weighted index. The trade weighted index is a weighted average of a basket of currencies that reflects the importance of the sum of Australia's exports and imports of goods by country.
How does Net Sales change during these three years? What could be the reason for the change in Net Sales in 2011? According to the Risk factors mentioned in the Financial Statements, factors such as current economic conditions, timing of new merchandise releases and promotional events, changes in merchandise mix, success of marketing programs, and weather conditions are the main factors that affect sales in a company such as The Gap Inc. 4. What was the change of Retained Earnings from the year 2010 to 2011? Retained earnings increase by $597.00 they raised from $11,767.00 to $12,364.00, an increase approximately of 5.07% And what was the Net Income for the year 2011?
April 8, 2012 Tax File Memorandum From:., CPA. M.A.F.M Subject: Mr. Jones Taxpayer Engagement On today April 5th, 2012 I met with Mr. Jones regarding our Previous Meeting on April 2nd, 2012 to discuss some questions and possible outcomes about potential future financial investment decisions, and the tax ramifications of these decision and possible outcomes. Facts: Mr. Jones is considering the purchase of a manufacturing company Smithton Widgets which is very profitable. Mr. Jones is a majority shareholder in another C-Corp. Known in this case as Johnson Services which has accumulated significant losses.
Monetary policies influence and are influenced by international developments, including exchange rates, and based on these market conditions the U.S. government can make strategic changes to these policies to maintain the country’s economic stability (full employment, stable growth and price stability). For example if Federal Reserve actions raised U.S. interest rates, the foreign exchange value of the dollar generally would rise. An increase in the foreign exchange value of the dollar, in turn, would raise the price in foreign currency of U.S. goods traded on world markets and lower the dollar price of goods imported into the United States (Federal Reserve, 2005). By restraining exports and boosting imports, these developments could lower output and price levels in the U.S. economy and control or lower
Chapter 4 This section starts off with the chapter that explains the trends of the concepts of hot, flat, and crowded. Friedman defines these terms and explains how the three causes the problems to the energy supply, mainly oil, and how they lead to global warming. Also he talks about how these problems affect the world’s economic growth and security. o Chapter 5 The next chapter is about the energy supply and demand. He talks about how China and India have a growing middle class they are wanting the same things as the American middle class.
o Click on 2008, hold down shift key, and click on 2004, submit query. o Download to excel file and retain values for June of each year (ADM’s month of fiscal year end) plus October 2008. o Compute the annual rate of inflation (June to June), and the rate of inflation from June 2008 to October 2008. o Comment on your findings. The average prices for both corn and soybeans increased from 2004 to 2008, and the change was fairly significant for both. It also seems that the prices are fairly volatile 4. Given what was going on in ADM’s product markets during 2008, does it seem reasonable that the accruals you identified in question (2), changed as much and in the direction they did?
(Cover story). Chemical Week, 170(40), 20-21. Retrieved February 18, 2009, from Academic Search Premier database. Rebecca Coons describes the obstacles to alternative energy development presented by an economic downturn coupled with low oil prices. Coy, P. (2008, September 15).
The choice of which of these measures to use depends in many cases on the specific question in which you are interested. For each of the following situations, state whether the CPI or GDP deflator is a more appropriate measure to use and explain why the statistic is preferred. a. You are interested in looking at the impact of higher prices of imported oil in the overall cost of living. b.
According to P&Gs global-financing strategy expressed by Erik Nelson, Mexico fall into the medium risk category. This means that the country has high local-currency interest rates something that leads to low inflation rates and therefore low devaluation of the domestic currency. In some cases the risk for devaluation is so low that borrowing money in a foreign country with lower interest rates can lead to great savings for a company. History Mexico experienced rapid increase in inflation in the late 1970s because of the discovery of a large oil field. The