Pricing-to-Market and Its implications for PPP The WritePass Journal

Pricing-to-Market and Its implications for PPP Conclusion Pricing-to-Market and Its implications for PPP IntroductionReview of PTMImplications of PTM for PPP and empirical evince on thatConclusionReferenceRelated Introduction At present, with the increasing process of globalization, the world is integrated as a huge market. International trade is becoming increasingly important between countries. Therefore, exchange rate are now of great concern, people care about its ups and downs, and its implications, especially, to what extent will the exchange rate change influence the price of imported or exported goods. It is important to introduce the idea of PTM to understand this question. The article will first introduce the concept of pricing to market, and then introduce the implications of pricing to market for purchasing power parity. Finally, I will give the conclusion. Review of PTM PTM is considered to be a phenomenon, and this happens in international trade between countries. When the market is in division and there is no â€Å"hot money†, exporters could set different prices according to the places importing from them; they could choose either producer currency pricing or local currency pricing. When producer currency is used, devaluation reduces export price of local commodities, change in exchange rate has conducting effect to price, therefore guarantees the effectiveness of one price law and purchasing power parity; however when local currency pricing is chosen, devaluations of producer currency does not affect export price of commodities since they are priced in local currency. International trade cost is essential in pricing to market. Atkeson and A.Burstein(2008) stated that without international trade costs, even in the presence of variable markups that lead to incomplete pass-through, we have no pricing-to-market. Hence, imperfect competition with variable markups is necessary, but not sufficient, for pricing-to-market. It is widely believed that PTM does not apply to all categories of goods, that it , the extent of Pricing to market varies in different goods trade. Krugman.P(1987) stated that:† PTM is not universal, pricing to market seems to be limited to the transportation equipment and machinery industries† according to his research on US and Germany. In short, PTM refers to the action of a firm to set different price of the same product in different markets. Implications of PTM for PPP and empirical evince on that 1. PPP was first formally introduced by Gustav Cassell in 1920, it was aimed to provide a standard for currencies to slove the problem of compensations after the first world war. It indicates that when consumers purchase identical products in any market worldwide, the quantity of money should be the same when measured in one currency (Hallwood and MacDonald, 2000). At present time, PPP has two functions in economics: one, to judge a currency has whether been over or under estimated, second, as a tool of conversion, to convert GDP or GNP of one country from its own currency into another, therefore compare the economic strength between them. PPP has now been developed into two forms, the absolute ppp and relative ppp. Absolute ppp is based on the law of one price, the theory of absolute purchasing power parity states that the same basket of goods should sell for the same price everywhere (Alessandria,GKaboski,P,K, 2009), while relative ppp debates that exchange rates can be adjusted according to the inflation differentials existing in two markets (Pilbeam, 2006). Unquestionably, the implication of PTM for purchasing power parity is influential according to many researches and studies done. PTM weaken the influence of PPP. The theory of PPP indicates that significant change in exchange rate should result in the devaluation of national inflation and appreciation of national deflation. But the truth is that, either the ups or downs of exchange rate did not significantly affect the inflation. One reason why exchange rate is such insignificant is obvious: exchange rate does not affect volume of trade and total price, as what people expected. The reason lies here is PTM, producers exporting commodities to other countries did not change exporting prices as people expected. For instance, when Japanese producer exporting automobiles into American market, they will set their products’ dollar price on the basis of specific situations in American market. If yen was in an appreciation, they would, by and large, reduce the yen price but not raise th e dollar price to maintain its current business scale in American market. They would rather to eliminate the effects caused by change of exchange rate by adjustments within the enterprise itself. In such condition, exchange rate could not play the important role as it should have played. Betts,C and Devereux M,B (1998) argued that: â€Å"PTM plays a central role in exchange rate determination and in international macroeconomic fluctuations.† The pass-through from exchange rate changes to prices is strongly restricted by actions of PTM.   They also stated that: â€Å"PTM generates departures from purchasing power parity; it tends to reduce the comovement in consumption across countries, while increasing the comovement of output.† (Betts,C and Devereux M,B ,1998). Generally, according to theory of one price and purchasing power parity, changes in exchange rate would pass through efficiently to prices, that prices will be adjusted until it fits the changes in exchange rate, and there will finally be equilibrium. But PTM, as personal actions of enterprises, to some extent, obstructs the channel of passing through. In the conditions of high PTM extent, devaluation of exchange rate has a very limited impaction on the prices determination of imported commodi ties, as (Betts,C and Devereux M,B ,1998) stressed:†the allocative effects of exchange rate changes are therefore wakened.† PTM also has important welfare implications for the transmission of monetary policy shocks. (Betts,C and Devereux M,B ,1998). In a situation under PPP, an unexpected expansion of monetary policy will result in increase in welfare of all organization, no matter home ones or foreign ones. Betts,C and Devereux M,B ,(1998) concluded that: â€Å"Monetary policy is a ‘beggar- thy-neighbor’ instrument in the presence of PTM†. 2. The phenomenon of pricing to market is everywhere in our daily life, and it significantly weaken the influence of law of one price and theory of purchasing power parity, tells people the truth that the same amount of currency could not always buy same basket of goods in different countries’ market. Since the same product could be priced differently in two countries, there will be space of arbitrage. I found exactly the same mode of DELL laptop both sold in U.S and China, on EBay, this dell allienware m15x is priced $1449.99, on the official site of dell china, it is priced 16999 RMB, according to the present exchange rate of RMB over US dollar: 6.573, 16999RMB is $2586, it is $1086 more that in US. Obviously, the transportation cost to bring one laptop from US to China is far more less than $1086. It can be implied that many people will try smuggling commodities like this laptop to earn profits. Conclusion As above discussion, PTM is important in the determination of exchange rate, higher the PTM is, less influence will the exchange rate change make on prices. It also makes significant welfare implications for the transmission of monetary policy shocks. PTM and its implication on PPP is still necessary to be further researched. Reference Krugman, P. (1986), â€Å"Pricing to Markets when exchange rate changes†, In: Arndt, S.W., Richardson,J.D. (Eds.), Real-Financial Linkages among Open Economies. MIT Press, Cambridge. Mark, N. C. (2001), International macroeconomics and finance: theory and econometric methods, Wiley-Blackwell. Sarno, L. Taylor, M.P. (2002), new open-economy of macroeconomics. In The economics of exchange rate, Cambridge University Press, Cambridge, Hallwood, P. and MacDonald, R. (2000) International Money and Finance, 3rd ed.Blackwell. Pilbeam, K . (2006) International Finance, 3rd ed. MacMillan. Atkeson,A Burstein,A (2008) â€Å"Pricing-to-market, Trade cost, and International Relative Price*†.   University of California, Los Angeles and Federal Reserve Bank of Minneapolis Alessandria,GKaboski,P,K   (2009) â€Å"Pricing-to-Market and the Failure of Absolute PPP† Betts,C and Devereux M,B (1998),   â€Å"Exchange rate dynamics in a model of pricing-to-market† in Journal of International Economics 50 (2000) 215–244 alienware m15x items- get great deals on PC Laptop notebooks,alienware m17x items on eBay.com! (2011). Retrieved March 9, 2011 from http://shop.ebay.com/i.html?_nkw=alienware+m15x_frs=1_trksid=p3286.c0.m359 ç ®â‚¬Ã¥ â€¢Ã©Å¡ Ã¥ ¿Æ' ç § Ã¤ º «Ã¤ ¸ ºÃ¤ ½   Dell ä ¸ ­Ã¥â€º ½Ã¥ ¤ §Ã©â„¢â€  (2011). Retrieved March 9, 2011 from http://www1.ap.dell.com/content/topics/topic.aspx/ap/topics/microsite/zh/odg_campaign?c=cncs=cndhs1l=zhs=dhs~ck=mn

Implementation of the Saudi Mortgage Law Developing an Effective Research Paper - 3

Implementation of the Saudi Mortgage Law Developing an Effective Mortgage - Research Paper Example The provisions of Saudi Arabia ‘real estate mortgage law’, which was signed into law on July 2, 2012, offer different ways through which the law will be implemented. First, under the ‘Enforcement’ Law, the law has provided that judges should hear and enforce mortgage disputes and insolvency actions (Delloite, 2). In this respect, the law has allowed the courts to decide on the order of the repayment of the mortgages, in a way that would guarantee swift repayments. Under the ‘Real Estate Finance’ Law of the Saudi Mortgage Laws, an elaborate architecture and framework for the authorization and licensing of banks and other non-banking companies to offer mortgage facilities has been established. Thus, according to this section of the law, banks will be allowed to own real estate’s for the purpose of facilitating mortgage lending (Khan, 2). Additionally, the government will facilitate the banks and companies offering the mortgage services, through publicizing real estate market activities, while at the same time granting the companies and the banks an access to the notary registers and the courts (Delloite, 2). This s ection of the law has also provided that a credit risk must be undertaken on the borrowers, through the aid of the authorized and available credit bureaus, to ensure the creditworthiness of all borrowers. Further, the Saudi Mortgage Law includes a section under the ‘Registered Real Estate Mortgage’ Law, which provides for the procedures of the registration of mortgages (Khan, 7).

Obesity (Law and Economics) Essay Example | Topics and Well Written Essays - 1500 words

Obesity (Law and Economics) - Essay Example It, therefore, is an economic issue that also involves the intervention of policies and laws of the government. According to WHO, health is a major consideration as a measure of living standards. According to Stettner, WHO defines good health as a status when someone has sound physical, mental or sociological state that warrants him or her to be in a state of well-being (209). It may also refer to a state in which one has no disease. The international community is facing a great health problem with the increasing instances of obesity and its associated effects. Obesity is an epidemic that is recognizable by the WHO, today. It poses global health consequences to various governments. This call for the setting up of an international legal framework that would see various governments set up ways to address the epidemic of obesity. Various countries and jurisdictions have a number of policies that look into the issue and provide necessary intervention measures to deal with it. Instituting such legal frameworks also lead to potential consequences that are unintentional. Policymakers also face many challenges when instituting such laws and policies aimed at finding solutions into the epidemic of obesity (Stettner 210). On the economic front, the international community is undergoing challenging times. ... The economic turndown experienced by the international community may further lead to increased cases of obesity. This is because people may turn to less expensive dietary measures consisting of food that is high in calorie. This is because of the economic hardships. It is essential for governments and global institutions to find ways of institutionalizing policies meant to reduce cases of obesity while addressing the current global economic challenges. Acs, Henderson, Levy and Stanton note that obesity is an issue that affects the business fraternity, the government and citizens or individuals on a common scale (221). It, therefore, presents a range of challenges to various sectors of the government and all levels of the society. The health sector bears challenges of high budgeting and costs involved in addressing the obesity epidemic. There are, in addition, cultural dimensions of this health menace affecting the government. All institutions in the United States (both corporate and public) have different avenues set to tackle the issue of obesity (Acs, Henderson, Levy and Stanton 221). Such avenues aim at promoting public awareness on the effects, causes and costs of obesity. Americans, therefore, receive ethical information about the outrage of obesity among them. The initiatives aim at reducing the costs (direct and indirect) incurred in relation to combating obesity. Businesses have initiatives aimed at determining income that that affect eating among the population. Businesses may also have influence on physical activities including exercise through job tasks. In this view, businesses help address obesity as an economic issue. According to Acs, Henderson, Levy and Stanton, public policy plays an immense role

How the Interplay Between Two Different Perspectives Essay Example for Free

How the Interplay Between Two Different Perspectives Essay Explain how the interplay between two different perspectives on characters and situations found in two of Lawson’s stories set for study and one other related text of your own choosing highlights the distinctly visual. In Henry Lawson’s stories, the â€Å"Drover’s Wife† and â€Å"The Loaded Dog†, and in Wilfred Owens’s â€Å"The Last Laugh†, the different perspectives on characters and situations interplay to give the audience a story through which they are caught up. Through the use of alliteration, some metaphors and similes, as well as onomatopoeia and personification, Lawson and Owens give their audience a feeling of the distinctly visual. Both authors convey distinctive experiences through different ways. Lawson describes scenes to the audience in such detail that he makes it possible for the readers to place themselves in the particular situation he is creating, even if they have never had that experience. This technique helps to link the reader with that specific feeling. An example is in â€Å"The Drover’s Wife†, the quote â€Å"It must be near daylight†. This brings the audience to the present situation, after they are lost in the past memories of the woman, using the perspective of the woman. The views of the characters are depicted through the eyes of the wife. The characters are those whom she interacts with, such as her children, the dog, the swagman, and to an extent, her own husband. The situation is there being a snake stuck in their house, and she is scared yet brave enough to kill it and prevent it killing her children. One example would be â€Å"Close and hot†. Using the sense of touch, it makes the reader feel like they are breathless, cut off, with no sense of space, being over-heated due to the sense of being worried and tense. â€Å"Suddenly† brings a break and a height in the tension. The speed and length of this sentence contrasts with others like â€Å"a thrill runs through his body†. In the â€Å"Loaded Dog†, it is evident that Lawson uses an abundance of dry humour, as well as sarcasm. The view of the characters the story gives us is that of three men and a dog. In this story, the situation is that of the dog getting a hold of a bomb cartridge, and nearly killing them. The quote â€Å"It was very good blasting powder† changes the mood of the situation as it is the breaking point of the tension. It is a lead-up from the dog sniffing the cartridge. The use of dry and sarcastic humour helps to provide the audience with a view-point of the action taking place. It gives it a humorous undertone in order to help the audience adjust better and not feel as shocked, when the re-tell of the explosion takes place. In the â€Å"Last Laugh†, Wilfred Owen uses character views to give his opinion on war- its injustices and sadness. He states that it is in fact the weapons that have the last laugh. The situation is World War 1, and how there are many young men, excited about war who go to fight, and end up dead, their lives wasted. Owen uses mainly personification, where upon he depicts the human qualities and attributes of the guns. Using words such as â€Å"guffawed†, â€Å"chirped† and â€Å"chuckled†, he communicates to the audience the mockery the guns are making of the men, as they die. â€Å"Mother, mother, Dad! † gives the reader the horrific image of a young man, almost a boy, dying uselessly on the battlefield, and never having the chance to experience life. This communicates to the audience the distinctly visual as, with the â€Å"Drover’s Wife† and â€Å"Loaded Dog† , it gives the responder the mental image of the events happening in the poem. The relationship between the view and the situation help to give the audience a clearer image of what Lawson and Owens are trying to depict, or communicate. In other words, this emphasizes the distinctly visual as the author, interplaying the view and situations, passes on a mental image of the scene being set. Owens and Lawson succeed in depicting sharp, and clear, images to the audience through the use of character views, situations and various techniques. This is turn gives the audience a distinctively visual experience.

Comparing the Two Pictures of London, Illustrated by Wordsworth and Bla

Comparing the Two Pictures of London, Illustrated by Wordsworth and Blake in Their Two Poems The two poems depicting London by Wordsworth and Blake are in some ways similar and yet have many differences. Both observations of London are depicted through the poets' personal perspectives of London using individual experiences. We can tell that both poems are from the person's interpretations and experiences as they are said in the first person: 'Ne'er saw Ià ¢Ã¢â€š ¬Ã‚ ¦' in Wordswoths' poem and: 'I wonder through each chartered streetà ¢Ã¢â€š ¬Ã‚ ¦' in Blakes'. Both poems are well structured and use emphatic language. 'Upon Westminster Bridge' is a Petrachran sonnet which expresses strong emotion. It depicts his joy and awe of a beautiful city that is sleeping. It comes across as very optimistic with only positive things to say. The elation is built up through the sonnet using rhyme and emphatic language '... a calm so deep!' and similes are used that portray an underlying theme 'This city now doth, like a garment, wear.' I think this is where the first look at the poem is not enough to fully grasp Wordsworth's meaning. Blake's poem at first glance is very much the opposite: it too uses emphatic language and builds up the feeling through the quatrains which allow his thoughts to progress yet the feeling and emotional outbursts are of a completely different nature. This poem seems pessimistic and has only gloom and negative points mentioned.' In every cry of every man' is different to Wordsworths' depiction of serenity, beauty and calm: 'A sight so touching in its majesty'. The River Thames is used in both poems but is illustrated differently. ... ...hat people are trapped in their social status but it is only in the mind and thoughts can be changed it isn't yet a physical state. This leaves us with optimism of change. Wordsworth although his poem is very optimistic the irony is that it is only captured in one moment. His depiction is not typical. He talks about London being this beautiful thing but he is talking form the panoramic view above it all and more than that he is talking whilst London is asleep leaving us to believe that it will be different, more like Blake's poem once London re-awakens. He talks from a moment in the revolution where ' This city now doth, like a garment, wearà ¢Ã¢â€š ¬Ã‚ ¦' implying it is superficial and normally the city isn't like that. So when looking deeper in to both poems there is an ironic ulterior meaning there which connect the two.

Mobile Security and Why it’s important

Commonplace so developers had to build in security from the start†¦. Storing surnames and passwords in plain text on the device is a rookie mistake. † (Prince, 2010) Rooting and Jail breaking is a process where users tamper with a device allowing them to bypass any restrictions that were put on the phone to prevent the end user from having access. After rooting or Jail breaking a device the user obtains superset access rights. These rights allow for full control and customization which also makes the device more susceptible to attack. (Hang, Wright & Samurai's, 2014) Security And Why It's DifficultAlthough security is an important factor in development it is sometimes hard to get developers to focus on security. Competitive pressure to deliver more functionality at a lower cost is one force that works against improving security. Grabbing market share as soon as possible also slow developers urge to improve security. (Halibut, Voss, Miller, 2011, p. 10) Many Application Dev elopers are most concerned in an app being secure enough to not bring their system down. Therefore, fixing the security of APS is somewhat challenging. Recent reports show that up to 80% of APS fail to employ with security standards.Using data fertilization will keep devices that are lost or stolen from leaking valuable data. The Bureau of Alcohol, Tobacco, Firearms and Explosives' Office of Science and Technology are preparing to begin its own development of mobile APS for use by employees that would be more secure than APS available to the public. (Curran, 2012) Security, What Can Be Done Mobile application security should not simply focus on data and applications. Mobile platforms are used in various new settings and impact users in ways that could never apply to a PC.An attacker could compromise systems connected to mobile devices through vulnerabilities identified at any point (Line, Hang, Wright, Samurai's, 2014, p. 22) Some researchers focus on analysis, detection and evaluat ion of malicious applications while others focus on designs meant to improve data security. Controlling permission usage or isolating the execution environment is two examples of such. (Hang, Wright & Samurai's, 2014) Fortunately, the UN-trusted entry points to an application are limited to the particular platform features you choose to use and are secured in a consistent way.Android applications do not have a simple main function that always gets called when they start. Instead, their initial entry points are based on registering Activities, Services, Broadcast Receivers or Content Providers with the system (Burns, 2008, p. 5) Developers should assume that an attacker will install the device on their phone and then be able to inspect the application. By Jail breaking their phone it allows the attacker to retrieve the actual code making it easy for them to plan their attack. (Prince, 2010) Information leakage must be curtailed during the architecture phase and managed with strict co ntrols in plowmen. Rouse, 2009, p 44) Developers need not only consider how to keep users data safe but to deal with power usage and memory consumption. You cannot allow mallard to access your applications special permissions. (Burns, 2008) In conclusion, Security for mobile devices is something users and developers need to take more seriously. Developers must understand that making sure an application is great is top priority but security for those applications can be Just as important. Should there be more strict submission rules for security to force developers to make security a priority?Mobile Application Developers Face Security Challenges. Retrieved August 28, 2014. Rouse, March 23, 2009, Securing Mobile Applications Illuminating Mobile Threats, HTTPS://www. Spas. Org/index. PH? Title=The_future_of_mobile:_developing_secure_mobile_applications=57231 Appendix A: Critical Thinking Six Steps Used to Draft Your Paper Compose your reflections below. Attitude towards this assignmen t. I was overwhelmed at first but I took a breath and just followed the suggested path in the instructions for the assignment. Step 2. Focus on the accuracy of the assumptions and conclusions.I followed the assignment instructions and highlighted them on my printed out sheet as I completed each necessary step. Step 3. Break the problems into workable parts. I broke this into easily tackled parts by following each step of the instructions. I would worry about each section at a time and tried to keep my mind off the length of the entire paper and Just worked on each section as necessary and then move onto the next. Good strategy. Step 4. Do not guess or Jump to conclusions. I printed out the material for Unit 5 Assignment and highlighted as each step was completed.I used the grading criteria to hopefully achieve a distinguished grade. Step 5. Employ meaningful self-dialogue throughout the process, including written or drawn prompts as well as spoken words. I printed out my previous â €Å"draft† from Unit 4 and further organized the information, expanding on this information also. I highlighted all referenced material to make sure I did not use the information in more than one section. I also made a lot of notes on the Unit 5 assignment instructions making sure not to forget all that I needed to do. I have a copy of this assignment open as well as to not forget the instructions.Great strategies! Step 6. Briefly describe what it felt like to go through the process. I enjoy going through the critical thinking process. It really helps me slow down and do things one at a time. Highlighting each step as I complete it and using the grading charts have really helped me in this course to not only know what is expected of me to get a distinguished grade but also so that I do not leave out vital information or miss important steps. 0 Appendix B: Critical Thinking Six Steps Used to Revise Your Paper (Unit 6) Step 1. Demonstrate a positive attitude toward solving a pr oblem.I tried to keep a positive attitude throughout this research paper. I became a little frustrated after reading my peer reviews. I wasn't sure that some of the suggestions I received were good. I calmed down and Just decided to ask. Step 2. Focus on the accuracy of the assumptions and conclusions. I was unsure about some of the suggestions that were given to me by my peers because of instructions that were given to us. I make sure to read all instructions and know that I'm doing what I'm supposed to but I didn't want to completely throw my peers suggestions out so I wanted to make sure and asked.Step 3. Break the problems into workable parts. I broke this assignment into workable sections by picking one thing to focus on then going to the next. For example I started by reading everyone's feedback. I then broke it up and went through my paper first, fixing any spelling mistakes. Next I fixed any citation mistakes that needed corrected. I went over my paper several times working I did not guess or Jump to conclusions. I read all instructions more than once to make sure I was doing what I was supposed to. When I was unsure of a peer's suggestions I asked. Step 5.Employ meaningful self-dialogue throughout the process, including written or drawn prompts as well as spoken words. I printed out all feedback and wrote myself notes accordingly. I highlighted all adjustments/notes as I completed them to make sure I didn't forget anything. Step 6. Briefly describe what it felt like to go through the process. I thoroughly enjoy using the critical thinking process. It helps me to ensure Vie done what is expected of me to get a good grade and understand exactly what I'm doing. Instructions when you are finished finalizing your paper for Unit 6, assignment 1 :

How Did Thomas Malthus Inspire Charles Darwin s Theory Of...

Introduction to Biological Anthropology Exam 1 Name: Sean Cook Short Answer: Answer each question in a few sentences, as specifically as possible. Remember to use appropriate terminology and answer all parts of the question. (5pts each) 1. How did Thomas Malthus inspire Charles Darwin’s theory of natural selection? Define natural selection. Thomas Malthus stated that the human population would eventually decrease significantly. His reasoning was that there would be a scarcity of food and other vital resources, leaving only the fittest of the species to survive. These â€Å"fittest† of the species would then pass on their traits to their offspring. Darwin used this is a firm foundation for his natural selection theory. Natural selection is the idea that the organisms that are the best suited for the environments they live in, are able to survive and pass on their genetic traits with huge success to the next generations of said organism. 2. What’s the difference between a stem cell and a differentiated cell? Give an example. Why are stem cells important in science? The difference between stem cells and a differentiated cell is the fact that stem cells have the ability to become any kind of cell once they are more developed. Differentiated cells already have a purpose set for them and will fulfill that one purpose once they have developed and matured fully. Stem cells are basically cells that haven’t differentiated yet. Stem cells are important to science because of theirShow MoreRelatedTransforming Species Into Molecular Biology3591 Words   |  15 Pagesradically changed through means of breakthrough theories, ideas and experimentations from scientists exploring the realms outside of the traditional religious views. The method of how science was conducted drastically altered as well. The development of new technologies allowed scientists to step away from simple observation, towards more sophisticated and complex research. Through those influential hundred years, one question remained, what is life? And how do we appropriately chara cterize it? Because