Mexican Peso Case Study Essay

1. Take a look at Mexico’s balance of payments over the past few years. Use the schedule I have attached to the case – it is in the same format as we used to examine the U. S. balance of payments. What do the trade and current account balances suggest about the likelihood of a potential devaluation of the peso? Why? a. It suggests that because Mexico is importing twice as much as they are exporting that there is a strong chance that the peso will lose value to counter the constant increase in imports. It is also important to point out that the exports in 1974 and 1975 are practically the same. The current account balance is negative 4 billion U. S. dollars which is 4 times larger than it was in 1972. All this leads me to believe that the peso needs to be devalued in order to raise the amount Mexico exports. 2. What does the private capital account suggest about the need for a devaluation of the peso? Why? a. The private capital account is a positive 3 billion which indicates that there are a lot more imports than exports suggesting that Mexico is either borrowing a larger portion of money or selling some of its assets. Consequently there is a need for the devaluation of the peso. 3. What does the private transactions balance suggest about the valuation of the peso and whether a very large devaluation was imminent? Why? a. By looking at the private transactions balance it suggest that there was not a dire need for a very large devaluation because it is a positive 172 million where as it has been no larger than 222 million and no smaller than 39 million. That is not to say that the peso did not need to be devaluated however. 4. Take a look at Exhibit 5 in the case – Mexico’s international reserves. What has happened to Mexico’s total foreign exchange reserves since 1970? How would you interpret this trend in terms of evaluating the strength or weakness of the peso in the foreign exchange market? Would you conclude that the peso was likely to be substantially devalued from this data? Why? a. With a gradual increase in Mexico’s total foreign exchange reserves since 1970 it looks like they were preparing for the devaluation of the peso for some time now. The increase in reserves is them trying to prevent or delay the devaluation. From just this data alone however I would not believe that the peso is at risk of being devaluated. 5. Take a look at Exhibit 7 and the forward discounts on the peso versus the dollar. On June 18, what did the market think the peso was likely to do over the next three months? On August 27, what did the market think the peso was likely to do versus the dollar over the next three months? Between June and August, what was the market saying about the magnitude and/or probability of a devaluation of the peso over the next three months? a. On June 18th it was believed that over a 3 month period that the peso would depreciate 20% vs. the U. S. dollar and on August 27th it was believed that the peso would only depreciate 9. 08% over the same time frame. During that time frame the market thought there was a less and less chance that the peso was going to get devaluated. 6. Look at the commercial bank lending rates to prime borrowers in Exhibit 8. Based on these nominal prime borrowing rates, would you expect the peso to appreciate or depreciate against the dollar and by how much? Why? a. If using the December 1975lending rates, the peso would depreciate against the dollar by 5. 9% because Mexico’s interest rate is nearly twice as high as the United States’. 7. What should be the PPP Mexican peso/U. S. dollar exchange rate based on price level changes in Mexico and the U. S. between 1954 and 1975. Given your calculation, is the Mexican peso reasonably valued at the new exchange rate of MP20. 5/U. S$? Briefly explain why. a. The PPP for the Mexican peso/U. S. dollar exchange rate should be MP13. 29/$ and I believe that the new exchange rate is too high, especially when compared to the 13. 29 PPP. Another reason to believe that it is not reasonable is that looking at exhibits 5 and 7 indicates that the peso may not have needed to be devaluated much at all considering the increase in Mexico’s reserves and the decrease in the forward discount from June to August. 8. Suppose the Mexican government had decided not to devalue the peso. What would have been some of the economic and financial policies it could have implemented to defend the currency? How would these policies affect employment and income levels in Mexico? a. Financial policies that could have been implemented would be to limit the number of imports and/or raise import taxes and loosen up their taxes on corporations to encourage new business in Mexico. It would raise employment while having a positive effect on income levels compared to if the peso was devaluated. 9. Please evaluate the future of the peso based on your answers to the above questions as well as the following information: (1) Oil production is likely to come on stream shortly and oil is priced in the world markets in dollars. (2) Foreign oil companies will be making substantial investments in Mexican oil fields. (3) The Mexican government will be able to control inflation. a. The future of the peso is going to look bright because they are increasing jobs by having companies invest in their oil fields. Although other countries will be making money so will Mexico. Since the dollar will be stronger than the peso, the money being made off oil would be equal to more pesos since it was devalued. This will increase exports and since they are able to control inflation it gives them greater control

Lab Safety Report Essay

The lab safety video has provided valuable information to better prepare me to be safe in lab and go by the Seminole State College Lab protocol. I watched the lab video link-http://flash.seminolestate.edu/vod/chemistry/startingwithsafety/startingwithsafety.html, and learned lab safety. The topics addressed were dressing appropriately, how to handle chemicals safely, Bunsen burner and glassware safety, and the emergency equipment available in the lab. I feel I have been informed of the proper procedures and rules to stay safe and protect my classmates, teacher and my personal safety in the laboratory setting. Before entering a lab one should consider the rules that need to be applied. The attire considered necessary are proper googles, long pants, long sleeves (not too loose), jewelry removed, gloves (if required), and apron (if necessary). Also a student is responsible for their behavior and should store personal items, not fool around, and never bring food and drinks to the lab. Then a lab can be conducted in a safe manner with the additional awareness provided in the following topics. The first topic addressed was how to handle chemicals safely. When using acids or bases in a lab proper eyewear, gloves, and aprons should be worn if necessary. The chemicals should be kept from the eyes and skin, and if happen to get in eyes use an eye wash or shower immediately. When mixing chemicals: read and reread labels, only mix chemicals when told to by teacher and use the proper sized (usually smaller) container. When using acid only add acid to water, not the reverse order. In the case of an accident, report the spill to teacher immediately. Upon lab clean up, throw materials in proper containers and do not pour acids down the sink. The second topic addressed was Bunsen burner and glassware safety. The Bunsen burner is dangerous and therefore precaution needs to be taken. The setup should start with the proper connection of the gas hose, and when ignited stand clear. The burner should be turned off immediately if the flame goes out, sputters or flames happen, or there is a smell of gas. The Bunsen burner can be used with glass beakers for heating chemicals. However,  the glassware should be checked for cracks, and once hot should be removed with tongs or gloves. When using fragile glass tubes, hands should be protected with leather gloves and lubrication should be used with rubber inserter and then washed off. If a thermometer is needed the appropriate temperature (alcohol or mercury- depending on temperature range) should be used and understood that no shaking is necessary. The Bunsen burner is among some of the equipment used frequently but can cause harm if used improperly. The final topic addressed the emergency procedures and equipment needed if accidents were to arise in the laboratory. The lab room is equip with first aid kits, fire extinguishers, fire blankets, eye wash stations, emergency chemical showers, and proper deposal containers. However, hopefully one will not need to be used with careful precautions and common sense. For example, if a breaker is on fire simply cover it to contain the flame before a fire extinguisher or evacuation is needed. The emergency equipment is there to ensure safety in case of an accident or emergency and should be used appropriately. In conclusion, the laboratory is a dangerous place if the proper concern for safety is not taken seriously. Therefore the video has given the proper guidelines and protocols needs to operate a safe lab for all to enjoy.

CW1 Rooms division systems Essay Example | Topics and Well Written Essays - 2250 words

CW1 Rooms division systems - Essay Example   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Deadline & schedule. The twenty rooms will be constructed between November 1 to 30 2006 in order to open to the coming December clients and seminar(Hardill, 33) participants. The planning which includes the design, specifications and contracts will be ready by the end of October 10, 2006.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Planning. The design, specifications(Croak, 51) and contracts will be ready by the end of   June in order to give time for the construction team to acquaint itself with the room construction technicalities.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Budget. Since only local room construction materials will be used, except the room door which will be imported from another country, and only expert construction crews will be hired, the cost of construction will be budget conscious. The budget will funded by   loans with the bank and investments from prospective shareholders in the stock market. The budget will easily be recovered within five years’ time based o n a well researched project feasibility study.   .  Ã‚   The hotel staff will hire an outside building contractor to renovate(Hands et al, 33)   all the rooms of the company. The company will save more money because there will lesser   raw materials wastes when skilled carpenters and their co –workers   work together because as the famous saying  Ã‚   goes, united we stand, divided we fall.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Segmentation. The clients will be concentrated on the couples, their family which includes their children and seminar participants. The entire room can easily be converted to a seminar room that has a capacity to seat around one hundred fifty persons.  Ã‚  Ã‚  Ã‚  Ã‚  

Storm Over Everest (May 13, 2008) short essay ethical system analysis

Storm Over Everest (May 13, 2008) short ethical system analysis - Essay Example A team was hired to be a guide in an expedition in one of the highest mountains on earth. Near the summit, passed the mountain’s death zone, one of the clients passed out. Everyone in the team is too weak to carry the client; they are almost running out of time, and a storm is already on its way. In addition to the weak client, the most experienced leader and the weakest climber is also in their weakest state, and is already showing signs of High Altitude Cardio Edema (HACE). The team only has one injection of Dexamethasone (Dex), which will slightly help only one of the three weak people to ease his or her pain. Each person in the team is left with one tank of oxygen, which is only good for four hours; however, the steep descend will take the team six hours. It is up to a member to decide to stay with the client or continue to descend. In the Kantian perspective or in ethical formalism, good will is the only thing that is good. Good actions done out of good will, whatever the results may be is a moral act, and whatever you do wrong, even with a good result is still not moral (Pollock, 2012). In the scenario above, the other members must continue to descend to camp. You should stay with the client who had passed out in order to look after him or her. The Dex must also be injected to the client who had passed out because he needs it the most. In the utilitarian perspective, an act must consider the whole and not just an individual. In this system, it is allowed to harm a person or a small part of the whole for the goodness and benefit of the remaining or bigger parts (Pollock, 2012). In the scenario above, if the utilitarianism ethics is used, the client who had passed out and the weakest climber must be left behind by the team for a lesser burden on the other members. This action will allow the others to descend faster and will also be able to maximize their oxygens. The Dex will also be injected to the most

Draw out Your Future Essay Example | Topics and Well Written Essays - 1000 words

Draw out Your Future - Essay Example Robbin and Judge states that "companies that make themselves lean can be more agile, efficient, and productive-but only if they make cuts carefully and help employees through the process" (479). It means that an organization should consider internal reinforcements rather than external reinforcements because it is correlated with Clawson's argument on why people behave. Similarly, Clawson believes that the genetic endowment, the unfulfilled emotional holes and the human memes form one's personalities. As a result, Clawson comes up with the rational-emotive model, the reward and punishment model and the self-concept model as reinforcement mechanism designed for organizational structure.Clawson finds one of internal reinforcements accordant with the rational-emotive model. This model claims that we could use events, perceptions and observations, set of values, assumptions, belief and expectation (VABEs) to influence oneself's own conclusion, lead to their emotions and end up with their projected behaviors. For example, an observed behavior results from an absorption of opinion leader's reaction to certain situation and the object act like "a leader's point of view" (Clawson). Moreover, affective events theory suggests "work events trigger positive or negative emotional reactions, to which employees' personalities and moods predispose them to respond with greater or lesser intensity (Robbins and Judge, 135). It drives to analysis that we could correct organizational behavior that a leader should show to complete task to employees.

The Movie Entertainment Industry ( Current Issues ) Research Paper

The Movie Entertainment Industry ( Current Issues ) - Research Paper Example The strategy is quite simple: movies became more larger than life, splashier and are made to impress in order to attract the public who have become more sophisticated in their tastes. This has become the blockbuster formula that has worked for major studios. By 2002 the annual ticket sales peaked at $1.6 billion.1 After this period, however, one can no longer say the same. In 2008, the figure dropped to $1.3 billion while the audience registered a constant decline in size across all segments of the movie-going public except teenage boys.2 Hollywood’s formula for blockbuster films - one that has so far succeeded in impressing the audience and keep them coming back - relies much on technology because it is crucial in providing flashier visual effects, which has been proven to appeal to a broader audience. Background According to Vanhala (2011), the average production cost of a movie from a major studio is $55 million with an additional $27 million to advertise and market, a tota l of almost a hundred million per film.3 Big productions that almost often assure box-office success could cost a studio up to 300 million dollars such as with the cases of Spiderman 3 and Pirates of the Caribbean 3. The figures are humungous and one could often hear producers lament about the viability of moviemaking and of the way films lose even with a decent performance at the box office. The complaint is not entirely unfounded. A detailed explanation has been offered by Vanhala as it was suggested that domestic box office, home video, DVD, television and cable revenues often cannot collectively cover the invested money in a film unless it is a major blockbuster.4 Pricewaterhouse-Coopers reported that the major studios’ revenues can be broken down as follows: 1) theatrical box office 24.6 percent; 2) television 28.8 percent; and 3) Home Video 46.6 percent.5 There are those who would argue that other means of revenues could make up for box office losses but this is not alw ays the case. According to the Motion Pictures Association of America â€Å"most films never recoup their initial investment.†6 A case in point is Prince’s (2002) discussion of movie revenue in which he stressed: There is little home video revenue left over to pay back the substantial negative cost still on the books from a theatrical flop. Home video success in such a case is significant for the company’s cash flow and especially for its home video profit center, but profit participants due a percentage on the theatrical flop are unlikely to be close to paydirt.7 It is not surprising, hence, when both academics and economists brand moviemaking in American as a risky affair. The dynamics by which film financing are undertaken with their complex and elaborate risk-sharing schemes underscore this point. Today, films are no longer produced by one studio or entity. Investors are pooled, which include corporate entities and other third-parties such as A-list actors, directors and producers.8 Out of all of the dismal statistics cited, however, it is interesting to note that Hollywood still makes about 400-600 films each year.9 The answer to this puzzle is crucial in identifying the effect of technology in movie-making. Understanding them can help outline the importance of technology in American filmmaking today. There are two identified drivers to the American film industry’s profitability: blockbuster films and the international market. These two areas proved to be not just the

Final exam Essay Example | Topics and Well Written Essays - 1000 words - 1

Final exam - Essay Example Because of court queues, time delays and elevating costs of litigation continue to affect litigants; many states have decided to experiment with ADR programs. Some of these programs are mandatory while others are voluntary. Despite arbitration and mediation being the major forms of ADR, negotiation is in most cases attempted first so as to resolve dispute. This is because it is the best mode of resolving a dispute. Negotiation creates a forum whereby the parties involved can meet so that they can settle a dispute. The main benefit of negotiation is that the parties involved have the opportunity to control the negotiation process and come up with solutions themselves. Another informal alternative to litigation is mediation. Mediators are those individuals who have been trained carry out negotiations. They bring together the opposing parties by trying to figure out the kind of agreement or settlement, which both parties can accept. Mediation can be applied in a wide variety of case-types ranging from federal government negotiations to minor juvenile felonies. It is also a significant method in solving of disputes that arise between shareholders and their stock brokers. Arbitration, on the other hand is a simplified version of a trial that involves limited discovery and rules of evidence. Arbitration is normally headed and decided by an arbitral committee. To comprise a committee, both sides can either agree on a single arbitrator, or each side can select one arbitrator after which the two arbitrators can elect the third arbitrator. During arbitration process, the committee only meets for a few hours and this may last for probably a week. After this, the committee then deliberates and issues an arbitral award, or a written decision. The agreement made during arbitration is enforceable under both state and federal law. The World Economic Forum is a global institution that has the