Fiat Currency and its Role in the Global Economy Essay

Fiat Currency and its Role in the Global Economy - Essay Example While the Bretton-Woods conference had proposed a supranational currency this idea was ignored and instead international currencies were pegged to the United States dollar. In the 1970s the United States went off the gold standard, effectively moving all world currencies to floating. There have been a number of attempts at supranational currency including the implementation of the SDR; still, there are some weaknesses to this currency, including it not effectively reflecting contemporary GDP concerns. In addition to the SDR there was the ECU, the ASU, and the African Monetary Unit; in large part these currencies are or were ineffective as a world currency for their largely regional affiliations. Recognizing the inefficiency of these currency units the WDX Organisation Limited was established to develop a more effective world currency. Incorporating modern risk theory, mathematics, and real-time technology infrastructure this organization developed the Wocu. In addition, the Wocu a ma jor innovative aspect of the Wocu is that it implements a research-based algorithm that is unknown to outside sources. b) Specification of thesis – main point The main thesis is that the Wocu is both effective and necessary as a world currency in response to the current fiat model. ... This will allay concerns with the dollar as the world currency, allow countries to have their own monetary policy, and reduce the need for foreign currency reserves. Additionally, it will have benefits to corporate treasurer; these include reducing currency risk and hedging against volatility, as well as advantages in pricing sales and purchasing, settling transaction, risk management, and raising capital. c) Three supporting opinions/reasons There are a number of supporting perspectives on implementing a world currency. Perhaps the central thorough-put in these supportive arguments is the notion that the use of fiat currencies creates a currency environment subject to political manipulation and volatility. One such consideration has emerged from the United States Economic Report. This report indicates that the European Sovereign Debt Crisis has had an immediate impact on United States monetary policy ("Economic policy: Country," 2010). The report indicates that, â€Å"The ripple ef fects from the euro area’s public debt crisis have led market participants to expect a later start of rate hikes ("Economic policy: Country," 2010, pg. 12). While not necessarily negative, such an impact could conceivably be avoided through a world currency. While this report demonstrates the direct impact of fiat currency, other research has argued for much more profound implications. Ghosh, Roy & Bandyopadhyay (2011) quantitatively examined various elements that directly contributed to volatility in the Indian stock market. Their research revealed that currency volatility – a direct result of fiat money – had a significant impact on stock valuation. Al-Shibli (2011) goes as far as to argue that in abandoning Bretton-Woods and

Strategic Human Resources Planning. Investigation Research Paper

Strategic Human Resources Planning. Investigation - Research Paper Example HR is a department within the organization that entirely manages people (Wood, 2009). It thus serves the purpose of recruiting, managing, and directing workforce. This is because it HR is the department that possesses knowledge, skills, creativity, ideas, and aptitudes within the organization. Any problem within the organization is solved through this department. Therefore, any organization that considers success an option must put in place human resource managers with the necessary skills to enhance progress of the organization. Like any other organization, Hilton Hotel has a HRD that has seen the organization provide unequalled services far and wide. This paper discusses corruption as a common problem in Hilton Hotel. Overview of the Problem Corruption has been a common problem in many organizations especially the big and diversified firms. From history, over 75% of companies have reached a shut down point as a result of corruption. The continued growth of Hilton Hotel has seen the emergence of this deadly vice. Within every organization, corruption has lead to several consequences that if not taken care of will result to organizational failure (Mathis & Jackson, 2010). In Hilton, just like any other organization, the highest levels of corruption were at the staffing function of the HR Department. It is important that in performing this role, recruits be selected in reference to their competence. This will definitely see the organization achieve since the recruited staff is in possession of the equipments. However, this has not been the case. Evidently, many of the newly recruited staff do not have the professional requirement, and necessary experience simply because they have a link to senior managers in the organization. In such a case, the definite outcome is failure. Environment Analysis Environmental analysis is a crucial aspect within an organization. It is important to evaluate the impact that Political factors, Economic factors, Socio-cultural factors , and technological facts to the organization (Mathis & Jackson, 2010). For political factors, the changes that are incorporated in the legislation and the political instability in some countries have negatively impacted Hilton Hotel. On economic factors, interest rates, cross-border pricing, and the charges by the banks have been a challenge in executing the objectives that the Hotel has put in place. Technology has played a big role in the promotion of better services to clients. Hilton has kept up with the changing technology to ensure it gives up to date services. Business people consider socio-cultural factors as the key elements in building the society. They influence the choices people maker and include beliefs held by certain communities, attitudes towards certain aspects and values. There Hotel has looked into demographic changes and the perception the clients have on their products thus achieved in delivery. Financial Analysis The only way through which Hilton Hotel has ma naged to survive despite this problem is through proper financial management. The financial department has largely worked in collaboration with other departments to ensure that the organizational finances arte properly cared for. For instance, remuneration is a function for the HR Department, but the financial department ensures that it properly evaluates every financial proposal before signing. Further, still, it is in this department that purchases and sales are managed thus