Hedging against a Weak Dollar Essay Example | Topics and Well Written Essays - 2000 words

Hedging against a Weak Dollar - Essay Example From the research it is clear that for the five-year period ranging from 2007 to the end of 2011, the US dollar has experienced numerous fluctuations. The highest value of the Euro in comparison to the dollar was 1.5991, during the 2008 global economic crisis, when American multinationals were going into bankruptcy or requesting bailouts by the government. The lowest value was 1.1923, in the year 2010, two years after recovery from the meltdown. Over the course of last year, the dollar reached its highest and lowest points for the period at the start and at the end of the year. At these times, the dollar was stronger in relation to the Euro. In the middle of the year, the dollar was weaker in comparison to the Euro for the year, and almost reached a rate of 1.5 against the Euro in comparison to the beginning and the end of the year when it was below 1.3 against the Euro. Another short-run determinant to exchange rates between the euro and the dollar is the growing capital mobility ac ross the globe. All forms of financial markets now share access to each other on a global scene, and investors put their money in the markets that offer them the best returns, without restrictions to invest locally. Whenever demand for US assets is bigger in relation to relative demand across the globe, the demand for US dollars will likewise increase. The converse is true, when the demand for US assets falls, investors will have put their money in competing markets rather than the US market, and likewise the dollar will depreciate in comparison, as the investors make the most of the more profitable markets around the globe. Relative price levels A fall in prices causes an appreciation in the currency while a rise in price levels causes a decrease in the value of the currency. For the US dollar to fall in relation to the euro with regard to the price level changes, the goods in the European market would have to fall in prices in relation to the same goods in the American market, or fall at a greater rate in relation to the goods in the European market. A fall in the price of goods indicates a strengthening of the dominant currency in the market. Tariffs and quotas Barriers to trade may significantly affect a currency’s value. The tariffs decrease demand of foreign currency in as a fall in the demand for foreign goods occurs. The result is an increase in the value of the domestic currency. Consequently, the reduction of trade barriers has the reverse effect on the local currency. Enforcement of a quota system for some goods to the European region affects the amount of American exports into the region, which sets a ceiling for the amount in value the dollar can have in relation to the euro over the year. Preference of domestic over foreign goods Increase in demand for domestic goods, exports, causes an increase in the demands of the foreign currency. The converse is true; increase in the demand for the foreign currency causes the domestic currency to depr eciate. Increase in demand for domestic goods, for instance, the increase in American made automobiles increase the demand for the

The Gender and the Nature of Enquiry Essay Example | Topics and Well Written Essays - 2250 words

The Gender and the Nature of Enquiry - Essay Example In this study, two pieces of research into issues in education are used to compare and contrast the approaches used in terms of establishment of a theoretical basis. Backgrounds on the Studies The first study is by Philips (2002, pp. 409-414) who investigated the underrepresentation of women in the engineering profession in the UK. The study identifies the imagery and cultural stereotyping affecting the educational decisions and choices made by girls and young women as being responsible for the issue. The researcher embeds his study in the social construction of gender as her theoretical framework and argues that domination of engineering practice by men results in the field becoming masculine out of societal perceptions. Citing criticism of positivist approaches to social research, the researcher uses a qualitative approach, undertaking an interview-based methodology to achieve inter-objective understanding. The study sampled 15 participants drawn from female engineers already train ing and working in the UK. The second study is by Archer, Halsall and Hollingworth (2007, pp. 165-180) investigating the disengagement from education of inner-city, ethnically diverse working class girls due to their construction of hetero-femininities. The researchers are of the opinion that construction of identity and values based on heterosexual femininities by girls contributes to their disengagement from education and schooling, and address the paradoxes that arise when such hetero-feminist constructions spill over to oppressive power relations. The study itself was qualitative, involving in-depth interviews, focus groups and some photo diaries. It sampled young people across 6 urban London secondary schools aged between 14 and 16. The interviews were undertaken 3-4 times in two years and involved interviews with the staff. Theoretical Frameworks of the Studies Gerring (2001, pp. 8-9) discusses the absolute importance of basing social research on sound theoretical frameworks. Social research without these bases is inconceivable as they provide the guidelines used by scholars to define and refine their studies. They specify interconnected questions and hypotheses that then guide the researcher in establishing his/her study. Philips (2002, p. 410) selects social construction of gender over feminist theories such as standpoint perspective in explaining that the predominance of males in the engineering profession as a main contributory factor to under-representation of females in engineering education and practice. A self perpetuating stereotypical perception is created among people that engineering is a masculine field due to the prominence of men in the engineering practice. The masculine orientation of the field and thus education is maintained by these prevailing social and sexual stereotypes, and confirm the views that science and technology are an essential aspect of masculinity in the modern day. Basing on this theoretical context, the under-represent ation of women in the engineering education is explained by the perceptions of young women that engineering is a masculine field and thus they chose not to study it. It is thus important to break the perception if at all gender balance is to be achieved in the engineering education and practice. In contrast, Archer, Halsall and Hollingworth (2007, p. 167) underpin their study on two