The Economic Development of Indonesia

Executive Summary In the recent past, Indonesia has been experiencing an improving gross domestic growth rate and purchasing parity despite the global financial crisis of 2007. However, the economic growth rate is hampered by unfavorable economic, political and social parameters like inflation, corruption, nepotism, and racism. In the 1960s, the country suffered an economic crisis which was believed to have been caused by corruption and inflation in the country.Advertising We will write a custom research paper sample on The Economic Development of Indonesia specifically for you for only $16.05 $11/page Learn More Governments, nongovernmental organization, and civil groups have joined efforts to alleviate corruption; however it still is persistent. Indonesia is among world’s most inflated countries with inflation of more than 10% since the 1960s; with such a record in inflation, the country has continued to suffer a reducing purchasing power parity (PPP) (Fane, 2003). Corruption can be found among political leaders, public institutions, individuals, and private institutions; the â€Å"culture† hinders rapid growth in the oil rich country. Statement of issue The main issue affecting the country is to determine when corruption will be completely alleviated and who should be held responsible of the situation in the country. When will there be corrupt free institutions in Indonesia? Corruption is the main cause of all the problems in Indonesia; then the big question is, is there an effective policy that can completely eradicate this big problem? Has Indonesia been using the wrong development strategy? Introduction In the 1960s Indonesia suffered political instability that did not spare the economic situation; it was during this time that the country’s then president, Suharto was classified among the most corrupt leaders by transparency international. It was in 1990s while Suharto was still the president, that corrup tion gained momentum to a point that the government was not able to clear its debts or collect outstanding debts from its debtors. There was a high level of bankruptcy and the government was not able to bail out those who were bankrupt. Moreover, the legal system was very weak to control any economic activities of the country. Businesses were carried out normally although the economy did not grow as expected because of corruption. Trade was carried out devoid of payment of tax and banks were also involved in corruption and their processes were unrefined. Lending was security based and lending regulations were not followed keenly. There were many barriers to domestic trade and export trade (Fane, 2003). This led to low activities in businesses which contributed to increased poverty. Despite the high level of inflation during this time, there were no domestic subsidies and this led to hunger and poverty (Fane, 2003). Many people, about 70%, were living below the poverty line during th is period; these problems distorted the economy of Indonesia greatly (see the appendix). In 1998 Indonesia was in real economic crisis as inflation reached 80% and it was expected to reach 100% by the end of the year. Many people in Indonesia were faced with food security problems; people were hungry and poor.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This triggered students in Indonesia to start demonstrations demanding the President to put an end to corruption, favoritism and conspiracy. The students pointed out that corruption; favoritism and conspiracy were the main causes of economic crisis in Indonesia. They demanded for good governance which would liberate Indonesia from economic crisis (World Bank, 2008). There were also problems in healthcare systems because the money allocated to them was not enough. Public health facilities did not have enough drugs. Further, healt h promotion and prevention programs were not in function due to lack of funds. In addition, natural resources were depleted as a result of poverty because people relied on natural resources, such as fishing and agriculture for their survival. The population increased and this led to deforestation leading to low agricultural yield. There was food insecurity in the whole country. All this problems were as a result of corruption (Pettis, 2001). Policy applied to recover Indonesia economy. The policy of open economy was applied which was not as effective as expected. People termed it as premature because there was crisis in financial sector. Other countries have responded positively to an open economy policy but this was not the case for Indonesia. The question has always been, is Indonesia using the wrong development strategy? All the blame has been put on corruption and conspiracy. This has prevented Indonesia from globalization. Emphasis has been put on good governance and good devel opment strategy. The Policy of liberalization has been put in place to ensure that Indonesia is able to maintain an open economy. The country has also attempted to raise domestic interest rates and tightened its monetary policy as way of controlling corruption. International monetary fund came into an agreement with Indonesia to stabilize macroeconomic activities and eliminate programs that were affecting the economy. The government of President Suharto then weakened and he was removed from office (Pettis, 2001). Abdurrahman took the office of presidency in 1999. He signed an agreement with international monetary fund for an extended fund facility. The economy was then at a poor state, but president Abdurrahman managed to put new administration and as a result inflation reduced by 2% by the end of 1999 (Muchhala, 2007). Policy critique In 2000 president Abdulahiman signed another agreement with international monetary fund for extended fund facility. This program targeted economic re form, structural reform and governance reforms. With the new administration the economy has been accelerating and recovery has been on the positive.Advertising We will write a custom research paper sample on The Economic Development of Indonesia specifically for you for only $16.05 $11/page Learn More Poverty reduced from 17.8 to 16.6 percent in 2008 (Muchhala, 2007). The rate of unemployment has also been reducing. With oil contributing the biggest percentage of export, Indonesia is now one of the fast growing economies in the G20 developing countries. It has also industrialized and its economy has expanded. The international monetary fund increased its focus on the country by raising it to 3.4 from 2.5 percent. The country has been able to implement its financial reforms by reducing public and external debt. Banking facilities have also been reformed and its vulnerability has reduced. Businesses have been strengthened and this has had great impact on individual development. Banks have been capitalized and supervision strengthened to make sure that there is no corruption (Miller, 1997). Before the new administration was introduced, the use of open economy had failed because it was implemented by corrupt leaders. Presently, Indonesia has a market economy where the government is actively involved and owns many enterprises. The government has also been controlling prices of products such as oil and other basic products (Kaufman, Krueger, Hunter, 1999). Other issues to worry about Though the economy has been growing continuously since 1999, inflation has persisted and has led to a wider economic gap among Indonesians. Inflation has been higher than economic growth and this has contributed to the high level of poverty in Indonesia. In the year 2010, inflation was at 7%; this was a high percentage compared to economic growth which was at 6%. The cause of this high inflation remained a puzzle, although it was linked to corruption as be ing the main cause. It was noted that unless this issue is dealt with seriously, it may continue to deprive Indonesians off their wealth despite their growing economy (Fane, 2003). The other issue that Indonesia needs to worry about is its rapid increasing population. Indonesia is known to be among the most populated countries. This has been straining its economy. This calls for birth control measures so as a country is able to have a population that it can support without straining (Deutser, 2002). Another issue is deforestation and this has resulted from high population. This has adverse effects on agricultural production because it affects the climate. Most people depend on agriculture for food. Agricultural production is important as it contributes a big portion of gross domestic production. It also ensures that there is food security in a country (Pettis, 2001).Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The other issue the government of Indonesia should consider is health; there have been concerns about the health of the population with diseases like HIV/AIDS, malaria and Tuberculosis being on the rise. These diseases have been increasing due to poor health promotion and prevention programs. The government should invest in health care systems for a healthy productive nation (Pettis, 2001). Recommendations To attain high economic growth rate, the Indonesian government should implement programs to alleviate corruption; the programs should be supported by government, international bodies, private and public institutions, and civil societies. The inflation situation of the economy can be checked by implementing effective frameworks to alleviate corruption and holding leaders accountable for their actions and decisions. The programs should be set to focus not only individuals, but also institutions, political groups, community welfares, and government ministries. When addressing the iss ue of corruption, the program should be effective enough to address nepotism, racism, and conspiracy prevailing in the economy. References Deutser, P. (2002). Survey of Recent Development. Bulletin of Indonesian Economic Studies, 1(1).1. Fane, G. (2003). Change and Continuity in Indonesia’s New Fiscal Decentralization Arrangements. Bulletin of Indonesian Economic Studies, 1(1).1. Kaufman, G., Krueger, T., Hunter W, (1999). The Asian Financial Crisis: Origins, Implications and Solutions. New York: Springer. Miller, J. (1997). Deforestation in Indonesia and the Orangutan Population. TED Case Studies, 1(1), 1. Muchhala, B, (2007) Ten Years After: Revisiting the Asian Financial Crisis. Washington, DC Natasha, H. (2001). Anti-Corruption Strategies in Indonesia. Bulletin of Indonesian Economic Studies, 1(1), 1. Pettis M, (2001). The Volatility Machine: Emerging Economies and the Threat of Financial Collapse. Oxford University Press. ISBN  0-19-514330-2. World Bank. (2008). Indon esia: Economic and Social update. Retrieved from www.worldbank.org. Appendix Macroeconomic trend in Indonesia after signing international monetary fund agreement Year GDP USD exchange (rupiah) Inflation index (2007=100) Nominal Per Capita GDP (as  % of USA) PPP Per Capita GDP (as  % of USA) 1980 60,143.191 626.98 10 5.25 5.93 1985 112,969.792 1,110.58 11 3.47 5.98 1990 233,013.290 1,842.80 16 3.01 6.63 1995 502,249.558 2,248.60 24 4.11 8.14 2000 1,389,769.700 8,396.33 53 2.32 6.92 2005 2,678,664.096 9,705.16 83 3.10 7.51 2010 6,422,918.230 8,555.00 121 6.38 9.05 This research paper on The Economic Development of Indonesia was written and submitted by user Delaney Everett to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Hero Essay Sample - A List of Character Building Qualities

Hero Essay Sample - A List of Character Building QualitiesThe hero essay sample should be based on a character who is courageous, heroic, strong, brave, capable, competent, has some kind of ultimate purpose or goal. The Hero's path should end up at the goal. In addition, the character must be portrayed as trying to discover and understand what his purpose is. He must make choices that affect how he sees himself and those around him.Though it may seem like these are very crucial components to a good story, they are the ones that will most likely hold the life of the reader. The characters should not be confused with one another, rather each character should play an important role in this story.The hero's journey is where the young prince, Aladdin, goes in search of his treasure. To find it, he must go through a dungeon. The name of the cave is 'Jabbar's Cave.' This is where the young king is captured by Jafar, who wants to test Aladdin's strength and courage.Jafar asks Aladdin to act like a man and fight a battle with him. He promises Aladdin if he does so, he will show him the true meaning of power. Aladdin agrees to the challenge and heads into Jabbar's cave with his trusty genie.In order to fight Jafar, Aladdin must open a door to a different dimension. It is here that Jafar comes to life. Using his magic powers, Jafar causes illusions to appear around Aladdin.The illusionist seeks to force Aladdin to fight against his will and his 'strength' by using his mind to trick him. Aladdin is so weak that he can not stand up to Jafar and heis unable to think clearly. He thinks that Jafar will knock him out and he will be able to get away. Jafar's magic works, although he does knock Aladdin out.Aladdin is unable to see where the true evil lies. He tries to free himself but, with the help of Genie, he realizes the truth and he and Genie disappear into the doorway.The villains in this story did not have to be powerful or evil in order for the story to be gripping. What' s important is that the hero was willing to do what it took to win and the reader loved the character because he chose to and not because he had to.

3S271 CDC Essay Example

3S271 CDC Essay Example 3S271 CDC Paper 3S271 CDC Paper What three parts of the work center mission do you define during the anlaysis phase? Purpose, Products, and Customers What type of tasks must a needs assessment include? Daily routine, infrequent tasks, contingency, special work requirements, and additional duties Dependig on their availability and suitability, what documents may you use for identifying tasks in a specific work center Manning documents, training standards, mission statements, staff assistant visit reports, directives and past production reports What manpower documents identify AFSCs assigned to the work center? Unit Manning Document (UMD) and Unit Personnel Manpower Roster (UPMR) What Air Force manual identifies generic duties for each AFSC? AFMAN 36-2108, Airmen Classification What training documents can you research to identify specific tasks for the work center? Specialty Training Standard (STS), Career Field Education and Training Plan (CFETP), and Air Force Job Qualification Standard (AFJQS) List the two factors needed to qualify as a subject matter expert? Field Expertise and Recent Job Experience List the task you have to complete to prepare for an interview. Research, develop questions, set up the interview, prepare the room When conductig an interview, what is the basic goal of your questions? To gain information from the experts What is the term used to describe a person with in-depth work center knowledge? Subject Matter Expert (SME) When conducting the interview, why do you provide the SME with your phone number? In case the SME remembers other information later What can occur if the respondents are confused after reading the questionnaire instructions? They may discard the questionnaire What are the two types of questions that can be used on a questionnaire? Selection and Supply type When you develop an MTL, what do you list on it? All tasks done in a work center List the three types of training standards that you can use to develop an MTL. CFETP, AFJQS, and AF Form 797 What are the three characteristics of a task? Observable, measurable, must have a definite beginning and end When preparing a local training standard, how do you make sure the task is identified? By giving the task a descriptive title List the four levels you use to resolve a lack of training capability. Work center, unit education and training, base education and training, and MAJCOM career field manager level If a lack of training capability cannot be resolved at the base level, how do you forward this problem to MAJCOM? By using an AF Form 2096, Classification/ On the Job Training Action What training status code must you place a trainee in if you cannot resolve the lack of training capability at the base level? P What is an individuals training folder reviewed to ensure? To make sure applicable training standards are included On whom are initial qualification evaluations normally conducted? Recent formal school graduates and reassigned personnel List the additional training factors. Identifying personnel gains/losses, planning and scheduling training time, determining need for job rotation, and identifying work center training requirements When defining the work center training requirements, what do you have to do? Take the training requirements for each individual and add these task together. The sum total is all the work center training requirements. Where cana UTM look to confirm that a CDC is available for ordering? AFIADLs ;List of AFSCc with CDCs required; What on-line program allows UTMs to check CDC enrollment data at AFIADL? CDSAR Who determines the CDC volume completion sequence? The supervisor At what point in the CDC enrollment should you request an extension for a trainee? When the trainee enters the tenth month of enrollment CDC expirations beyond 90 days require what level of approval? Group Commander What forms the basis for all required unit training? Work Center Tasks Which usually provides the best information for identifyin work center tasks? Several sources Which document identifies personal information in manpower positions? Unit Personnel Manpower Roster (UPMR) Which publication describes the duties and responsibilities of all Air Force specialty codes (AFSC) in the Air Force? AFMAN 36-2108, Airman Classification The specialty training standard (STS) is part of the Career Field Education and Training Plan (CFETP) Which factor concerning subject matter expert (SME) qualification is based on time in the career field and in a particular job? Field Expertise When preparing for a subject matter expert (SME) interview, your first step is to review the Mission Statements The publication that contains information about organizations and their mission is the Air Force Mission Directives (AFMD) When researching for a subject matter expert (SME)interview, the tasks that are the easiest to identify are the normal day-to-day requirements What directive list mandatory requirements for a specific career field? AFMAN 36-2108, Airman Classification In researching for a subject matter expert (SME) interview, which form identifies the duties required for civilian personnel? AF Form 1378, Civilian Personnel Position Description Questions developed for a subject matter expert (SME) interview should be specific and pertain to the subject When asking questions during a subject matter expert (SME) interview, speak distinctly and clearly When used on a questionnaire, a closed-ended question limits the choice of possible responses Replies to what type of question on a research questionnaire can provide additional information beyond the scope of your question? Open-ended When developing a master task listing (MTL), keep it as simple as possible Which training document can be part of a master task listing (MTL) and shows tasks that are applicable to an entire career field? Career Field Education and Training Plan (CFETP) Which training standard is prepared by the Air Force career field managers (AFCFM) and describes a particular duty position? Air Force Job Qualification Standard (AFJQS) In reviewing tasks for a training standard, when the results of an action on a persons part can be seen, the task is said to be observable The task title is comprised of a verb and an object When a question of training capability arises, what base-level tool is available to determine if there are any local personnel who have retrained out of the Air Force specialty code (AFSC) in question? Military Personnel data system (MilPDS) What training status code (TSC) is used when a training capability problem prevents a trainee from progressing in training? P Who can authorize automation of a specialty training standard (STS)? Air Force career field manager (AFCFM) When conducting an initial evaluation on reassigned personnel, match the individuals qualifications to the work center requirements Training needs of an individual are called individual training requirements What do task objectives help you do? meet each training program objective List the three basic parts of a task objective. Condition, Performance/Behavior, and Standard What are the two basic ways of measuring a persons knowledge of a subject? Written and oral tests List the selection-type questions that you can use on a written test. Multiple choice, matching, and true false What should the questions used for an oral test require the student to do? Explain why he or she is performing certain functions What are you looking for when you review the test and questions? To see if questions are valid, reliable, comprehensive, objective, and discriminatory in nature. On what is a performance test based? Directly on what the individual is required to perform What are the three basic parts of a performance test? Objective, references/materials and Instructions What are the four common rating errors on which you need to train evaluators? Standard, Logic, Central Tendency, and Halo Long-term objectives are most often comprised of two or more short-term goals called task objectives What element of an objective tells the trainee the level of perfomance that must be met? Standard What are two-types of test items? Selection or supply type Which type of test questions can you use the same way as you do a multiple choice type? Matching When a test measures what it is suppose to measure, then the test is Valid If a test shows who knows and does not know the material, then the test is differentiating The references or materials used by a trainee during the performance test are those used by the trainee while learning the objective When developing a checklist for a performance test, include those items required for complete performance Which common rating error occurs when an evaluator sets how well the task is done according to his or her own ability to perform the task, which results in a high passing point? Standard List the three ways to prioritize tasks. Job Performance, Psychological, and Logical When can actual task performance begin once you set up a trainees training program? After the trainee acquires the task performance knowledge List the methods you can use to present information to the trainee or trainees? Lecture, coach/pupil, demonstration/performance, computer assisted, and qualification training packages List the four phases of the D/P method. Explanation, Demonstration, Performance, and Evaluation What is one of the complaints about computer-assisted instruction? That most computer-assisted lessons are nothing but page turners, and you can gett the same information from an AFI. Who normally develops a QTP? AFCFM What are the resources you would use when doing research for completing a task breakdown? Yourself, books and other experts. What must you identify when developing and documenting a task breakdown? Subtasks, procedural skills, and supporting knowledge Once you feel you have finished the task breakdown, what secific things do you look for when you review it to make sure it isa good product? Completeness, accuracy, and required equipment List the three major parts of a lesson plan Introduction, development or body and conclusion List the four basic parts of the introduction Attention, motivation, overview and transition On what document is the body of your lesson plan based? Your task breakdown List the three parts of a conclusion Summary, Remotivation, and Closure There are many types of teaching aids available; what should you consider before you select the ones that you will use? Those that are easiest to use, most inexpensive to develop and maintain, but that add realism to the learning process List at least six types of teaching aids. Any six of the following: equipment, printed matter, chalkboards, whiteboards, flat pictures, mockups, trainers, simulators, transparencies, television, and computers List the three steps you use to schedule training Prepare tentative schedule, coordinate, and assign trainees to a training session roster What is the first thing you do when coordinating the training schedule? Determine how many sessions are offered and the times that they are held What do you provide to each affected supervisor after you schedule trainees for training? A copy of the training roster or a training notification letter

An Analysis of Gardner’s Theory of Multiple Intelligences Essay Example for Free

An Analysis of Gardner’s Theory of Multiple Intelligences Essay The purpose of this paper is to explore Howard Gardner’s theory on multiple intelligences. I will focus on spatial and bodily-kinesthetic intelligences and how linguistic intelligence has an underlying effect on the other intelligences. Spatial and bodily-kinesthetic intelligences would seem to be very distant from linguistic intelligence, however I believe that they are more similar then one might expect. Spatial intelligence can be loosely defined as the ability to manipulate and recreated the physical work in ones mind. Artists often use this intelligence as they take an actual object and are able to manipulate it onto a canvas or piece of paper. Many IQ tests have a section that tests the ability of a person in their use of block design. Students who excel in spatial intelligence have the ability to recreate within their mind the things that they see visually. Gardner states, â€Å"The left hemisphere of the brain has, over the course of evolution, been selected as the pre-eminent site for linguistic processing, the right hemisphere of the brain, and in particular the posterior portions of the right hemisphere, proves to be the site most crucial for special processing† (Gardner, p. 181). Gardner is trying to show how separate in the brain spatial and linguistic intelligence really are. By isolating the intelligences, Gardner focuses on the idea of savants and brain damage to prove his theory that the intelligences are totally separate. Eliminating part of the brain would still allow for someone to be successful and intelligent at spatial abilities. His idea is that even if a person lost their ability to speak or the ability to use their hands, that their other intelligences could possibly still work at a high level. I agree with his theory, however I think the intelligences overlap more then he may believe. Linguistic intelligence seems to have a basis in spatial intelligence also. Many students might do just fine being able to read a word problem and then form the design in their head. Gardner gives an example, â€Å"Take a square piece of paper, fold it in one half, then fold it twice again in half. How many squares exist after this final fold? † (Gardner, p. 171). This idea shows how linguistic intelligence can be used when dealing with a student who has a greater spatial intelligence. Even without the student physically being able to fold the piece of paper they could still solve the problem due to their linguistic intelligence. Gardner shows this idea as he talks about people having distinct separate intelligences, but that each intelligence has the ability to overlap with another. I also decided to talk about his theory of bodily-kinesthetic intelligence because I feel this intelligence goes together well with spatial intelligence. Both of these intelligences are educated best by going away from the traditional teaching methods of reading and writing. Bodily-kinesthetic intelligence is the ability for a person to use their body to solve a problem. This can be seen in many athletes and other people who are very active. Some people are born with a higher bodily-kinesthetic intelligence then others. Tests on reaction time have shown that some people are born with almost superhuman reaction time ability. This reaction time allows them to hit a baseball with such success that cannot be taught. Parts of this intelligence can be learned by studying similar to some of the more the academic intelligences, however bodily-kinesthetic intelligence is not viewed as an academic intelligence. Wayne Gretzky said, â€Å"Nine out of ten people think what I do is instinct†¦. It isn’t. Nobody would ever say a doctor had learned had profession by instinct: yet in my own way I’ve spent almost as much time studying hockey as a med student puts in studying medicine† (Gardner, p. 231). Both a hockey player and a surgeon rely on their body to perform at a high level. Bodily-kinesthetic intelligence is just not brute force but the ability to read what is happening, and then adapt. In football, a player will tackle another player, although before that happens the tackling player must read the play to get a path take on the ball carrier. A surgeon can have perfect skills in using their hands to operate but they also need the ability to learn the correct procedures. These ideas show that a person can be above average in more then one intelligence and that is in fact fairly common. The traditional way of teaching is through reading and writing that puts an emphasis on linguistic intelligence. Gardner’s theory is to separate the intelligences by showing that even a person who loses the ability to use part of their brain will still be able to function at a high level at some other intelligences. Gardner points out that he believes the intelligences are separate, but that they rarely operate separately and more often then not there are several intelligences working together. This is how linguistic intelligence is so important to the overall learning of a student. Most tests such as IQ tests put an emphasis on how well a person does on verbal section of the test. Gardner said, â€Å"I have already noted that many retarded children display a surprising ability to master language†¦ Even more striking are those rare children who, despite retardation or autism, prove able to read at an astonishingly early age† (Gardner, p. 84-85). This is apparent when talking about a surgeon who loses the ability to use their hands and so they cannot operate on patients anymore. They may not have the ability to physically do the operation anymore but they can still instruct someone else to do the surgery. This surgeon has lost their ability to use their hands but their brain is still intact so they can use their linguistic intelligence to instruct another person to perform the operation. Gardner does not think linguistic intelligence is more important than any of the other intelligences, but I believe that linguistic intelligence sets the basis for the other intelligences. Without this intelligence the student will not be able to understand what that teacher is trying to convey in class. Language is important for the student to get through school, however a student could get though school without fully realizing their full spatial intelligence. Linguistic intelligence allows a student to gain the ability to study the concepts and then apply them to the other intelligences such as bodily-kinesthetic intelligence. One cannot expect someone to just learn all the intricate details of boxing and then to go into the ring and win a title. This can only happen with some intelligence that is born within the person. Intelligences are within everyone but it is hard for a person to know exactly what intelligence they posses the strongest. Howard Gardner’s idea of multiple intelligences stems from his belief that each person has different intelligences that they posses. These intelligences are inherently separate due to the fact that because of brain damage, a person can lose an intelligence while still being able to perform at a high level on other intelligences. Gardner does not believe that linguistic intelligence is more important then the others, however in our society we put such a great emphasis on linguistic intelligence. A student can fall behind in their linguistic development and due to our societies testing and basis in teaching the student might not attain high grades. This does not mean the student is not smart, it just means that they might excel at a different type of intelligence. Overall, Gardner explains how each person has many different forms of intelligence that they could be above average in. An Analysis of Gardner’s Theory of Multiple Intelligences. (2017, Jan 05).

Causes of the Financial Crisis Essay Example | Topics and Well Written Essays - 1250 words

Causes of the Financial Crisis - Essay Example The analysis takes a global outlook to examine the various issues connected with the financial turmoil which is believed to be begun as a result of U S mortgage crisis. There are divergent opinions as to what caused this global phenomenon that resulted in the ravage and meltdown of stock markets in almost all countries. The present chapter, however, throws lights on the reasons that are generally believed to have contributed to the most distressed global crisis The US originated crisis started late in the 20th century became acute in 2007 from the US subprime lending market like a distant tornado. More than two million homes financed by subprime lenders were expected to face foreclosure in the period of crisis and nearly 17% of subprime mortgages issued so far were projected to fail (Center for Responsible Lending). The roots of the current US subprime lending crisis can be traced back to the spiraling housing prices in the first half of this decade. Extremely low lending and borrowing rates increased the demand and supply of existing and new houses. Several institutions started offering subprime mortgages, to borrowers who had unfavorable credit history, at lower than normal repayment interest levels with little or no down payments. Many investment banks and hedge fund owners began to bet on this new aspect of the US economy. This had allowed investors to avail themselves of loans at low interest rates and invest them in higher yielding a venues. But soon with the US Central Bank (Federal Reserve) initiating a series of interest rate hikes leading to the increase of cost of borrowing to 5.25%, which is the maximum since the last half a decade, and a simultaneous decrease in housing prices, the subprime mortgages were reset at high rates leaving the borrowers to foreclose their accounts and miss payments (Lawrence 2000). As an outcome, financial institutions and banks with mortgage securities incurred huge losses and had to trade their assets leading to subprime lending crisis. Even though "Countrywide Financial", the biggest mortgage lender in the US, managed to withstand this crisis owing to the diversification in writing of the loans, other big players like New Century Financial, DR Horton, Weyerhaeuser and American Home Mortgage are all reeling under its impact (Kenneth 1990). 2. Low Inflation For 15 years the US economy had long and continuous economic expansion with low inflation. The US economy was following an expansionary monetary and fiscal policy. There was excess liquidity in the economy. During this period, the rate of interest was very low and there was a housing sector boom. During this good time, financial institutions, particularly investment banks showed a lot of interest in providing housing loan. They took heavy risk and made huge profits. High profits encouraged the banks to take higher risk. High leveraged transaction with life covenant became the norm. They started providing loan to prime as well as subprime borrowers though the borrowers did not have the capacity to repay the loan if the interest rate would go up. Loans were given on the assumption that housing prices always would go up and in the initial stage; borrowers were charged lower interest rate. 3. Fall of Major Investment Banks and Financial Institutions The

The Fast Food Industry in Houston, Texas Essay Example | Topics and Well Written Essays - 1000 words

The Fast Food Industry in Houston, Texas - Essay Example In 2010, Ibisworld report indicated that McDonald’s Corporation had a market share of 12.7 percent, Wendy’s had 6.6 percent, Starbucks Corporation had 5.9 percent, and Burgers King Corporation had 5.1 percent (Schlosser, 2012). This indicates that these four companies are the leading market players in Houston’s fast food industry with McDonald’s corporation being the market leader. Additionally, according, McDonald’s share price is $90.79. In 2011, the company’s profit rose to 19 percent that is equivalent to revenue of $6.91 billion. Wendy’s current-year income is projected at $2.69 billion, and Jack in the Box earnings and revenue is projected at $2.16 billion and $1.53 a share (Schlosser, 2012). In spite of gloomy economic condition, Houston fast food industry is experiencing robust economic growth. Studies have predicted that the fast food market is expected to grow in the coming years, and will cross the $179 Billion mark by 2013 (Schlosser, 2012). The fast food industry, like any other industry, also experiences the economic ups and downs. In addition, they provide products and services that many other businesses depend on. Various business trends such as social and financial markets significantly affect the economic status of fast food market. Some of the key factors that affect the demand and supply of fast food include health, supply, spending and financing. The impact of fast foods on health is one of the most significant challenges.

How Industrial Revolution Made Life Easier :: essays research papers

How Industrial Revolution Made Life Easier It would just be unbearable to think that life would be better without the Industrial Revolution. All the inventions that were invented back then are used all the time. The three inventions which are the camera, the light bulb and the locomotive have greatly changed society. Without the light bulb, you couldn’t see at night, you wouldn’t be able to take pictures of anything for memories if the camera wasn’t invented and without the train there would be one less easier way to travel. Without the light bulb, you couldn’t see at night. Thomas Edison invented the light bulb mainly to make it for home use. The light bulb was made to create light that would last for a long time and that could be used anywhere. In today’s society, people use the bulbs in their homes to light up their whole house including their fridge. It just makes it easier to see anywhere whenever it’s the daytime or night time. â€Å"Edison's eventual achievement was inventing not just an incandescent electric light, but also an electric lighting system that contained all the elements necessary to make the incandescent light practical, safe, and economical.† Before it was created, human beings had to use fire and now you’re able to just turn the light switch on and you automatically have whatever lighted. You wouldn’t be able to take pictures of anything for memories if the camera wasn’t invented. Louis Daguerre invented the first camera just to capture things for memory. The camera was invented to capture a picture of anything you wanted to save as a memory. In today’s world, people use the camera during many special occasions to remember that specific day. It helps a lot because so many people can enjoy or see what an occasion was like even if they weren’t there by looking at the pictures. â€Å"The daguerreotype, aptly called a ‘mirror with a memory’, was an amazing development, and one cannot but marvel at the intricacy of the detail.† Before it was made, people didn’t really struggle without since they didn’t even use anything that could capture scenes. Without the train there would one less easier way to travel. George Stephenson first attempted to create the first locomotive since others who tried failed. The locomotive was invented to try and succeed in an invention but lead to more better things.