The Political Economy of European Integration Essay

The Political Economy of European Integration - Essay Example To start with, we must define the objective that has spurred the nature of economic integration. The primary objective of having or creating a (regional) economic integration is for the said union to form an agreement among its member countries to reduce and remove tariff and non-tariff trade barriers to the free flow of goods, services, and factors of production (i.e. labor, capital and entrepreneur); and also, to attempt to achieve economic gains from the free flow of trade and investment between its neighboring countries. The EU as an organization is comprised of independent European countries whose sole, main objectives are economic and social progress for the European region and its people. That is why they have long-planned on engineering an economic integration program in an attempt to converge all the European regions in order to meet and implement the objectives of the formed union so as to provide a much better living and working environment for its people - the Europeans (Going for Growth, 2003). Economic integration for Europe has definitely brought convergence to this continental region. Since its foundation, the EU had gone through three legal stages for it to achieve its economic objectives, these stages were: the creation of the customs union, 1958-1985, the single market 1985-1992, and the economic and monetary union 1992-present (Hitiris, 2003). Initially, as a customs union, it removed different barriers in trading between member countries of the EC and adopted a common external trade policy in which individual state governments no longer has to determine or make their own external trade policy anymore. Then the Single European Act or the single market implemented in 1987 allowed factors of production particularly labour, capital, and entrepreneurs to move freely from one member country to another. And after a few years, the EU started to launch its full economic objectives by implementing the economic and monetary union policy to its region; through this, it paved the way to the removal of the remaining obstacle to cross border investments. And also, one of the most highlighted criterions made in this final treaty was granting the citizenship of the union - everyone with a nationality of any member country becomes an automatic citizen of the union, giving its people all the rights to move and reside freely among the union' s member countries. With all of these mentioned and guided by the democratic principles of the union, the EU has definitely succeeded in converging its member countries into becoming a prosperous European economic region of the twenty-first century that is continuously grow year by year in terms of economic figures and admitting more and more European countries into the union; and currently, is even ranking second in the growth of world economies next to the United States and preceding Japan. However, it is also important to take stock of the fact that the success or failure of an economic integration depends primarily on its objectives. Therefore, a previously independent country participating in an economic union - converging its economy to other member countries by sacrificing a part of its national sovereignty can only be justified if the union is able to achieve its

Callable Bonds Term Paper Example | Topics and Well Written Essays - 3000 words

Callable Bonds - Term Paper Example There are different reasons as to why companies issue callable bonds, as noted by Frykman and Tolleryd, one of the reasons as to why companies issue callable bonds is because of their hedge interest rate (173). The point is that, the moment interest rates reduce, the issuing companies can then repay the bonds at lower interest rates. This paper aims at examining callable bonds. Overview As explained by Le callable bonds allows those borrowing the option of re-investing if the interest rates reduces (4). This implies that companies are able to hedge against likely reduction of interest rates in future. It is because of this aspect tha makes callable bonds to be prefered by many investors particularly before 1990s. In deed, before 1970, nearly all companies issued bonds that had were callable. But, as from 1970 to 1990, callable bonds being issued reduced to about 80%. This was attributed to developents that had taken place within the interest rate derivaive markets over that period. P resently, the number of callable bonds on the market has greatly reduced accounting for less than 30%. According to Le the reason for this reduction is the fact that, it has become easier for companies to hedge against the interest rate risks (4). Explaining callable bonds When a company issues a bond, it has to make a critical decision regarding the type of bond it will issue, if it will be a callable bond or a regular one. In defining a callable bond Brigham and Houston states that callable bond, also known as redeemable bond is a kind of bond that permits the issuing firm to retain the benefit of trading in the bond at a certain time before the maturity date (220). This implies that the issuing firm retains the right of buying back the callable bond, though it is not obligated to do that. Basically, the bonds are not in actual sense bought back by the issuing firm; rather the firm cancels them immediately. When recalling the callable bonds, the issuing firm has to pay more than t he par price. In some cases, for example in high-yield debt industry, the call premium could be considerable high. Therefore, the issuing firm has a choice, of either paying a higher premium or waiting until the bonds mature. Brigham and Houston notes that supposing the interest rates prevailing in the market go down at the time of calling back the bonds, then the issuing company will be in a position to refinance its debt cheaply (220). Accordingly, as the interest rates reduce, the value of the bonds increases, thus, it is beneficial to re-buy the bonds at their par value. When callable bonds are used, the investors are given the advantage of a higher token or value, as opposed to what they have gained with regular bonds. However, when the interest rates reduce, the issuing firms will likely recall the bonds and just invest them at interest rate is low. The moment a company has recalled the bond, the company can as well reissue the similar bonds at a much lower interest rate. This process of reissuing bonds to save money on the interest payment is referred as refunding. Brigham and Houston notes that before the bonds are recalled, the bond holders are informed by a letter, one of the agreements when investing in a callable bond (221), is that the investors agree that the bonds can be bought back and the investors should be ready to sell the bonds. However, companies recalling the bonds

Effect of e-readers on the publishing industry Assignment

Effect of e-readers on the publishing industry - Assignment Example ed that social exchange theory is taking place on an international level as the humanity has learned the art and science of communicating across cultures and borders. The internationalization of communication and socialization is identified as essence of the notion known as global village (Graham 1998). In recent years, leading technological companies have launched devices that have been blessed with the capability of helping people in accessing and downloading books and other kinds of literature. The old fashion and traditional practice of reading books in a printed format is ending. Major number of publications is being provided to public in an electronic format while the most used format is called Portable Document Format (PDF). The conventional method of providing printing books got very expensive and therefore, the major publishing companies such as McGraw Hill initiated to provide publications in an electronic format. The basic and fundamental purpose of using electronic devices as sources of accessing literature is to drive down the production costs whereas, the end readers are also provided with significant level of cost advantages. In summary, it can be urged and argued that availability and cost of printed information has notably increased and decreased respectively (Pan & Leidner 2003). The current period, the customers and common peoples information has considerably risen and therefore, companies and governments are facing problems in justifying their filthy practices from public. The publishing companies are offering books and research journals in e-format and they provide printed copies on special request only. The supporters of high involvement of technology in knowledge management argue that human mind is well accustomed to understanding materials in print format. They also suggest that human sensory centers are experiencing growing and noticeable level of stress because of focusing on screens. But, these potential disadvantages will subside as

Money and banking Essay Example | Topics and Well Written Essays - 500 words - 2

Money and banking - Essay Example Jefferson argues that since no mention of any mandate was present, Congress had no such right. Hamilton dismissed Jefferson’s arguments by citing that Congress has â€Å"necessary and proper powers† to implement the nation’s fiscal and monetary policy. He added that a central bank fits perfectly into this scheme, by making it easier for Congress to do the job. If there were one central bank coordinating all banks, Congress could easily hold one accountable. Eventually, Hamilton’s arguments won, and this would set the practice of establishing central banks for the years to come, beginning with the First Bank of the United States of America. (Johnson 7) This should be viewed actually as the triumph of the power of money over democracy. Money could be represented by paper marked by the government as legal tender. In itself, it is harmless to democracy. But left to the hands of unscrupulous individuals and bankers, money can be used to damage democracy as can be seen in the succeeding events. During the term of James Madison, the bill seeking to renew the First Bank’s Charter was defeated by a narrow margin. Madison liked the outcome, but chaos ensued. The War of 1812 made the US Government to focus its effort in surviving against England. As a result, state-chartered banks began issuing different fiat currencies with little value. Proponents of central banking then blamed Madison for such troubles. Near the end of his term, Madison was forced to sign the charter of the Second Bank of America, as this was the popular clamor of Representatives. (Johnson 9) Thus, although there were hopes that democracy will prevail over the system of credit, central banking won. This episode illustrates clearly the fact that because of money, efforts to implement what is good for the general public can be undermined. Fast forward to 1907,

The Money Game Book Report Essay Example | Topics and Well Written Essays - 2500 words

The Money Game Book Report - Essay Example I began considering to have a â€Å"budget† and decided to put off some planned but unnecessary purchases. I just opened a savings account with a passbook dedicated for future investment. The course affected me and I would like to answer the questions below with how I understood the subject except on some occasions that it will be best for understanding to lift something from the book. I believe it will best serve the purpose of this course to use my own words as much as possible and also for my better understanding, to conceptualize my answers as I understood it. B. Questions for Book Report 1. Why is the book called â€Å"The Money Game?† The book is called â€Å"The Money Game† because it teaches us to understand the dynamics of how to secure our future from a pragmatist perspective. When I said, pragmatist, it tackles the subject not merely from academic point view, but on its real life application. Moreso, when it also presented the perspective of the both s ides of the coin, the Wall Street view and the Main Street with the author being partial on us the consumers on how we could avoid the financial pitfalls and better secure our future by giving us a hindsight about the other side of the fence. The author has no pretension about the reality on how we should go about in handling our finances, especially in dealing with financial institutions inorder to be financially secured. In fact, a game plan was introduced called Big Dog Playbook II which details the play on we can better our financial position and get rid of debts. 2. Why do many Americans die before they ever have a chance to live? Many Americans die before they ever have a chance to live because they work all their lives and never had the chance to enjoy it. This is because of wrong mindset and priorities and being unprepared for the financial uncertainties and old age. During the most productive part of their lives, they worked so hard to acquire the â€Å"bling-blings† or facade of success and thus raising the standard of their lives but not the actual quality of their lives. They are so mired with work that they did not notice how good the â€Å"rose smell†. As they acquire, they fall to the trap of indulgence, living for today (and more often than not, beyond their means) and not preparing for tomorrow. Such that when financial uncertainty and/or retirement come upon them, many of them are caught unprepared and had to continue working despite retirement age. 3. Who are the three main characters in the book and what impact do they have on your finances? The Invisible Man- The Invisible Man represents the unaccounted expenses that we don’t usually notice because they are just small. But when they are totally accounted for, we will be surprise to learn how much they add up so quickly. The real danger about the Invisible Man is that we do not know that he is already taking toll on our resources. The Money Monster – The Money Mo nster represents our tendency to consume; our endless wants that could never be satisfied. This Money Monster is insatiable and will continue to eat our resources no matter how we much feed it. If we do not tame or put the Money on a diet, we will always be on spending binge without any savings with a mounting debt to surmount. The Precreditor- â€Å"The Precreditor has a growing appetite for our money and will influence law to keep the gravy train going. His hunger has manifested into hundreds of billions of dollars in opportunity cost for consumers

Comprehensive Examination for Capella Learner Essay

Comprehensive Examination for Capella Learner - Essay Example Kaya (1994) made it clear that in most developing and less developed countries the public libraries are one of the last parts of the infrastructure to be put into place. As a consequence, many developing and less developed countries have a significant gap between the information wants and needs of their mostly poor populations and the information and communications that could potentially be available to them through having more libraries with the latest ICT. The purpose of this paper will be to evaluate how information technology and telecommunications can aid librarianship in developing and less developed countries and help significantly increase the literacy of any given country's population through analyzing one technology installation as it relates to increased literacy. This paper discusses issues that are faced by librarians in developing and less developed countries. An Information and Communications Technology program is suggested to support the librarianship in developing and less developed countries to provide the means for possible improvement of their probable contributions in those countries. This paper considers two key factors as the main ideas. Number one is job satisfaction, which is an extremely important aspect in the structuring of an organization, especially one where motivation is one of its key economic drivers. Number two is libraries that are bundled with the learning environment of society in a developing country. Bearing in mind the relevant fact that in developing and less developed countries human resources is the number one service provider due to lack of technological advances, the issue of job satisfaction for the librarians in those countries becomes crucial to the implementation of positive changes in the socio-cultural context that can help those developing and less developed countries emerge as productive, empowered and proactive communities in the realm of economic and human development. . These significant issues will be discussed and analyzed in some detail. Then the discussion will be followed by the guidelines which should encapsulate the necessary information and communications regarding organizations and associations that can provide support for librarianship in developing and less developed countries aided with the help of the implementation of ICT initiatives that can really enhance the educational experience necessary for those developing and less developed countries to achieve higher degrees of collective welfare. The focus should be placed on the primary factors for funding and finding the proper technologies to support the librarianship in developing and less developed countries in such a synergic way that the learning community can surpass their present level of illiteracy/oral tra ditions, lack of knowledge and poverty through the extremely relevant value of education in all the realms of its implicit and explicit meanings. Without education, it is really impossible to achieve a minimum degree of civilization and development in any country, especially in poverty-stricken countries like the developing and less developed countries. Technology is a powerful means of empowering any

Politics of Globalistation Essay Example | Topics and Well Written Essays - 1500 words

Politics of Globalistation - Essay Example As stated by Mark (25), the dominance of one state over others in terms of economic and socio-political power is known as hegemony. Since the end of Cold World War, the United States has played a significant role in globalisation as a hegemon. U.S’ hegemony was able to impose its rules on the international system, provide goods to the system such as an international economic, financial and commercial order as well as global security and political order (Higgott 148). In short, the United States was able to open up national borders to foreign influences like political, cultural, and economic; thus, promoting globalisation. For this reason, in a world no longer defined by U.S’ hegemony, globalisation would not sustain. Higgott (156) claims that hegemony is crucial in creating international institutions that supply public goods, to the international system. Such institutions include World Trade Organisation, World Bank, International Monetary Fund, The North Atlantic Treat y Organisation, and United Nations, among others. However, Mark (33) argues that the role played by these international institutions is not responsible for stability of the international economy. This is because once they start; they do not need any further controlling since they can survive on their own and other nations come to value and preserve them. However, the United States hegemony does not only set rules for other nations, but also creates international institutions that supply public goods (Bryane 21). According to Robinson (36), such public goods would not be provided unless there was a nation in the international system willing to pay the disproportionate cost to supply them. In the current international system, the United State is the only nation able to absorb the disproportionate cost and supply the public goods to the international community; thus, creating a stable international economy which has less conflicts and more open. However, even if the U.S’ disprop ortionately bears the costs alone, it stands to gain due to its dominant position in the international system. Cox (256) claims that, US hegemony has contributed largely to global security through its military force. Nevertheless, many nations claim that the U.S’ has caused a reduction in international security; hence, they view America as a threat and doubt its intentions. This has led to destabilisation of the international cooperation. However, according to Cox (261), US military hegemony does not weaken global security, but rather promotes international democracy and liberty leading to political stability. For instance, the American military has helped to protect Saudi Arabia from attacks in order to ensure free flow of oil to other nations. Moreover, the stability of U.S’ hegemony has helped to prevent countries such as Germany from developing their own nuclear weapons; thus, protecting Asia and other European nations from destructive security competition and arms races (Harry 43). Therefore, if United States withdraws from its dominant role in the world, globalisation would deteriorate drastically due to lack of international security. However, without protection of Middle East by the U.S’ military hegemony, the free flow of oil is likely to be interrupted by war, which would result in increased oil prices and affect the global economy. Thus, increased oil prices would force nations to use coal that can cause environmental catastrophes