Free Essay

Ifm Assignment

In:

Submitted By sanjayguptas
Words 1704
Pages 7
Student Name: Sanjay Kumar Gupta
SMS Id: 110604
Center: Grand Mall – Gurgaon
Assignment: International Financial Management
Batch: PGCBM-21
Title: MNC Response to Currency Crisis
Professor Name: Dr. HK Pradhan

MNC Response to Currency Crisis

Introduction
A currency crisis means a decline in the value of country currency, the decline in value of currency have impact on the economy of country negatively. Decline in value of currency means same currency will not buy anther currency as it was buying earlier. Currency crisis happens because of investor expectation/act and the result of those acts. Currency crisis generally happens due to sudden devaluation of the currency.
Following are the reason which makes a currency crisis: 1. Current account deficit. 2. Currency value increased rapidly. 3. Uncertainty over government actions and policies. 4. Sudden outflow of capital by speculators. 5. If investors' confidence in the stability of an economy is eroded, then they will try to get their money out of the country. This is referred to as capital flight. Once investors have sold their domestic-currency denominated investments, they convert those investments into foreign currency. This causes the exchange rate to get even have further impacted, resulting in a run on the currency. 6. Currency outflow will be there till the time reserves are getting finished. Speculators foresee this potential opportunity for a capital gain and compete against each other for advance repatriation, In doing so, they bring forward the date when reserves are exhausted. 7. Before reserves are depleted naturally, an attack can occur as speculators rush to purchase US Dollar, with depleting central bank’s remaining stock of reserves. 8. If central bank borrows the foreign currency to defend its currency it only postpone the crisis.

Currency crisis in India
Below table shows the rupee situation from 2000 onwards against dollar. INR remain almost stable or strong from year 2000 to April 2011. It got start depreciating from September 2011 and deprecated up to Rs. 57.15 till June.
It recently start appreciating due to some changes in government policies regarding FDI and price hike is diesel, as price hike in diesel will help government to cut down the fiscal deficit. Year/Month | INR/USD | 2000 | 45 | 2006 | 48.336 | 2007 (Oct) | 38.48 | 2008 (June) | 42.51 | 2008 (October) | 48.88 | 2009 (October) | 46.37 | 2010 (January 22) | 46.21 | 2011 (April) | 44.17 | 2011 (September 21) | 48.24 | 2011 (November 17) | 50.97 | 2011 (November 24) | 52.11 | 2011 (December 15) | 53.65 | 2011 (December 14) | 53.7147 | 2012 (May 21) | 55.03 | 2012 (May 22) | 55.395 | 2012 (June 22) | 57.15 |

Currency crisis and hedging
Change in Rupee value against vehicle currency has significant impact on the corporate india. They need to rethink on their strategies regarding foreign exchange and hedging.
Currency crisis which has started in Sep 2011 and currently going has impact on exporters, importers, financial companies, companies which are looking for or have taken loan from foreign banks/investors.
Companies have to hedge foreign exchange exposure which they have as the impact of this can be felt on the income statement and the balance sheet. Companies which are exposed in foreign exchange transaction would face the risk due to fluctuations in currency rates on their income statement.
Hedging strategy depends upon the Size of the firm as per the various surveys large firms do the perfect hedging they do OTC forward contracting, futures, Swaps, options. Small firms generally do not do hedging they generally take the strategy.
Firms can limit their risk by hedging, by doing this currency risk will be less likely to occur and they can avoid financial crisis.
Small firms do following as their hedging strategy:
Small firms generally use internal tactics like leading and lagging. This can ensure that companies utilize the exchange rate movements to ensure that company always pays less and earn more profit. That is, when a company can lead payments (pay them in advance) when company expect the home currency to depreciate with respect to the foreign currency. Similarly netting the payments and receipts that are in the same foreign currency will also help reduce the exposure
In other words small firms generally tracks the market for rate movements and accordingly take the decision and they don’t go for the techniques like Forward contracts, Futures, options and Swaps.

Any company with operations in foreign currency can benefit from Currency Hedging: * By purchasing machinery or equipment abroad (importers) * By selling goods and services abroad (exporters) * By making overseas investments * By taking loan/debt in foreign currency
Below I am describing in short the different types of hedging techniques learn during class:
Forward Transactions
Hedging currency risks with forward transaction is a relatively easy to implement hedging strategy. In this, the currency payment is locked in at a particular exchange rate for a pre-specified date in the future, irrespective of what the actual market exchange rate at that time is. This helps both, the creditor and the lender do not have to worry about fluctuations in the income and expenditure respectively.

Currency Futures
Currency futures are the same as forward contracts and are just for locking in an exchange rate for a pre-set date of the transaction in the future. The advantage that currency futures have over currency forwards is that as these are exchange traded, counter-party risk is eliminated. It also helps that currency futures are more transparent in their pricing and are more easily available to all market participants.

Currency Swaps
These exchange rate transactions are real-time transactions where one thing is just exchanged for another. These swaps can also be used for hedging interest rate risks where two parties can exchange their fixed and floating interest rate obligations with each other.

Currency Options
Currency options are financial instruments that give the owner the right but not the obligation to buy or sell a specific foreign currency at a predetermined exchange rate. While a call option gives the holder the right to buy the currency at an agreed price, a put option gives him the right to sell it at an agreed price, irrespective of an unfavorable market price for the same.
By selling goods and services abroad (exporters)
When a currency depreciates, It gives benefit to exports because export companies will have more local currency in exchange of foreign currency. Few companies have got benefited by the sudden drop in to the rupee value as many companies has hedge against the currency and they have fixed it with dollar from Rs. 46 to 47. Sudden changes in the rupee position of the rupee do not really matter much.

Exporters these days resort to hedging against such risks (of volatility), Besides, the buyers overseas also renegotiate and push rates down.

The depreciating rupee will be positive for the Indian IT sector that generate more than 80-90 per cent of their $70 billion revenue from the overseas markets and this kind of appreciation in foreign currency will enhance their actual realization of revenue in dollar terms. Every one per cent change in rupee-dollar has an impact on the net profit of Indian IT companies, like TCS, Infosys, HCL to mention a few.
However companies are aware that in this situation the gain is short term in long term scenarios buyers seeks price adjustment. This will be more clear with below statements.
There can be a significant time gap in the middle of changes in the spot rate and the hedged rate. When the exchange rate is appreciating, this gap “buys time” for exporters, giving them the opportunity to implement productivity improvements, price adjustment or to change exporting strategies. On the other hand, when the exchange rate is falling, hedging delays the benefit of higher export returns, which may be much needed.
Hedging can have some impact on export earnings even over the medium term (2 to 3 years), providing some offset – albeit a limited offset – to the impact of exchange rate movements on earnings.
The hedged exchange rate is smoother than the spot rate in the short term; this reduces the variability in export earnings that arise from sudden exchange rate movements.
Overall the benefits from hedging for a firm are largely in terms of smoothing income, rather than producing net increases in income.
By purchasing machinery or equipment abroad (importers)
Importers also hedge themself for any increase exchange rupee dollar exchange rate. They want to keep them self-secure for the any deprecation in rupee value against dollar.
For example importer might use the forward contracting strategy to hedge himself or they just analyze the market and pay in advance if they accept that exchange rates are going to increase in future or later when they accept exchange rates are going to decrease in future.

By taking loan/debt in foreign currency
Big Indian companies and corporates has taken loan from foreign banks or investors for their needs as the interest rates of foreign investors or bankers is lower than the money available from Indian financial institutions.
Second reason for obtaining the finance from the foreign banks is the easy availability of money and requirement of foreign currency for the buying of foreign companies.
When the companies have took heavy loans earlier for their purchase of foreign companies at that time rupee was very strong from 39 to 45.
Now Dollar value has increased and this has impacted companies very badly there loan amount suddenly has increased and there takeover now looking very costly, Some Indian companies has got impacted very badly due to this.
Currently Indian companies who have taken loans from foreign banks are facing difficult times and they are using strategy of re-financing their loans. Companies has taken the loan for 3 to 5 years of term during 2007-2008 for their takeovers, and not exchange rate is moving around Rs. 55/$ and that is causing serious issue for the companies.

References: http://www.rbnz.govt.nz/research/bulletin/2002_2006/2004dec67_4briggs.pdf http://www.buzzle.com/articles/currency-hedging-for-importers.html http://www.buzzle.com/articles/hedging-currency-risk.html http://www.buzzle.com/articles/foreign-currency-hedging.html
http://www.straightforex.com/currency-hedging-for-companies/

Similar Documents

Premium Essay

Ifm Assignment

...Assignment Course Title: International Financial Management Course code: FIN-365 Submitted to: Unmesh Ray Himel Lecturer Department of BBA UITS Submitted by: Name: Nafila Akter ID: 11510271 Section: B Date of Submission: 30/5/2014 a. What should the management of BD GARMENTS PRODUCTS Inc. pursue as its overriding goal? Why? Current theory asserts that the firms’ proper goal is to maximize shareholders’ wealth, as measured by the market price of the firm’s stock. A firm’s stock price reflects the timing, size and risk of the cash flow that investors expect a firm to generate over time. So financial managers should undertake only those actions that they expect will increase the value of the firm’s future cash flow. Theoretical and empirical arguments support the assertion that managers should focus on maximization shareholder wealth. Shareholders of a firm are sometimes called residual claimants, meaning that they have claims only on any of the firm’s cash flows that remain after employees, suppliers, creditors; governments and other stakeholders are paid in full. As you see, shareholders stand at the end of this line so if the firm cannot pay the stakeholders first, shareholders receive nothing! Shareholders also bear most of the risk of running the firm. So if firms did not manage to maximize shareholders wealth, investors would have little incentive to accept the risks necessary for a business to succeed. b. Does the firm appear to have an agency problem...

Words: 611 - Pages: 3

Premium Essay

Week 2 Assigment

...Week 2 Assignment: Understanding Effective Money Management Assessment A, Part 1: Creating a Personal Financial Statement - Assets | 1 point | Car: Bluebook value $1250.00Cash: $378.00Savings Accounts: $826.00 | Assessment A, Part 2: Creating a Personal Financial Statement - Debts | 1 point | Rent: $750.00Electric/ Gas bill: $131.75Cable/ internet/ Phone bill: $80.42Credit Card: $31.00Cell phone bill: $72.37 | Assessment A, Part 3: Identify Money Management Tool | 1 point | Explain to Monica how the money management tools were identified. | Students should explain how they evaluated various cash management products and services. | Assessment A, Part 4: Creating a Personal Financial Statement – Steps | 1 point | Drag the steps listed on the right into their correct sequences on the left. When done click the Send button | Step 1: I got all my financial stuff together – bills, loans, bank statements, etc. | Step 2: I balance my checkbook. | Step 3: I decided what were my assets and what were my debts. | Step 4: I enter my assets in the program. | Step 5: I enter my debts in the program. | Step 6: The program gave me a Net worth figure at the end. | Assessment B: Creating a Monthly Cash Flow Statement ...

Words: 255 - Pages: 2

Free Essay

Misconceptions of Algebra

...Diagnostic Algebra Assessment Definitions Categories Equality Symbol Misconception Graphing Misconception Definition Concept of a Variable Misconception Equality Symbol Misconception As algebra teachers, we all know how frustrating it can be to teach a particular concept and to have a percentage of our students not get it. We try different approaches and activities but to no avail. These students just do not seem to grasp the concept. Often, we blame the students for not trying hard enough. Worse yet, others blame us for not teaching students well enough. Students often learn the equality symbol misconception when they begin learning mathematics. Rather than understanding that the equal sign indicates equivalence between the expressions on the left side and the right side of an equation, students interpret the equal sign as meaning “do something” or the sign before the answer. This problem is exacerbated by many adults solving problems in the following way: 5 × 4 + 3 = ? 5 × 4 = 20 + 3 = 23 Students may also have difficulty understanding statements like 7 = 3 + 4 or 5 = 5, since these do not involve a problem on the left and an answer on the right. Falkner presented the following problem to 6th grade classes: 8 + 4 = [] + 5 All 145 students gave the answer of 12 or 17. It can be assumed that students got 12 since 8 + 4 = 12. The 17 may be from those who continued the problem: 12 + 5 = 17. Students with this misconception may also have difficulty with the idea that adding...

Words: 797 - Pages: 4

Free Essay

Prg/211 Calorie Count Tool

...Team B Calorie Count Tool PRG/211 May 5, 2014 Team B Calorie Count Tool PROBLEM STATEMENT Team B was asked to develop a program which would calculate the user’s daily intake of calories and measure those calories against the overall calories expended. The core purpose of this program will do two primary functions. First, it will record the user intake of calories as acquired through meals throughout the day. Second, the user will record caloric output associated with physical activity. This information will be calculated together to determine the caloric surplus or deficit for the user. In order for the program to execute accurately, and provide customized results, the user will be required to input personal data to include gender, age, weight, and height. This additional information is essential to determine the user’s default caloric burn rate, otherwise known as the basal metabolic rate (BMR). The BMR and the calories burned as a result of physical activity will be calculated against the intake of calories to determine the overall success for the user. As the program is executed it must: * Record user name, age, height, weight to enable more accurate calculations * Record the users specific caloric values entered for each meal * Record the user activity and caloric burn values for that activity * Calculate the basal metabolic rate (BMR) for the individual * Subtotal the total caloric values for the day * Combine the physical activity and...

Words: 1524 - Pages: 7

Premium Essay

Student

...Problem Solving with Computing Homework - WEEK 2 [30 points] This is a review of some of the material from Chapter 2 and lectures from class. No credit for answers that are copies or near verbatim transcripts – please use your own words1 and document sources where appropriate. 1 This will apply to all assignments in this class. Answer the following questions: Chapter 2 1. Short Answers [1 point each, 2 points total] 1. What does a professional programmer usually do first to gain an understanding of a problem? The first thing that a professional programmer usually do first to gain an understanding of a program is to closely relate customer (Interview ) to inquire or gather information about the problem. 2. What two things must you normally specify in a variable declaration? The two things normally specified in a variable declaration are the variable type and identifier. 2. Algorithms / Pseudocode [1 point each, 5 points total] 1. Design an algorithm that prompts the user to enter his or her height and stores the user’s input in a variable named height. Declare height Display “Enter Your Height” Input Height Display “Height” 2. Write assignment statements that perform the following operations with the variables a and b. - Adds 2 to a and stores the result in b. - Subtracts 8 from b and stores the result in a Set b=2+a Set a=b-8 3. Write a pseudocode statement that declares the variable cost so it can hold real numbers. Floating Point-Variable...

Words: 1823 - Pages: 8

Free Essay

Mobile Service Provider

...11108944 Name: ASHWINI KUMAR Roll No. : RE3R02B32 PART- A 1. Ans :- (a) unary and ternary operator Unary operator:- It pecedes an operand . The operand (the value on which the operator operates ) of the unary operator must have arithmetic or pointer type and the result is the value of the argument. Example:- If a=5 then +a means 5 If a=0 then +a means 0. If a=-4 then +a means -4. Ternary operator:- It precedes an operand. The operand of the unary operator must have arithmetic type and the result is the negation of the operand’s value. Example:- If a=5 then –a means -5 If a=0 then –a means 0 If a=-4 then –a means 4. (b) Assignment and equalto operator Assignment operator:- Equal to operator: An assignment operator assigns value In this we put the To a variable. value as it is. Example – Example- a*=5 means a=5*5. Int a; a=5 means a is initialized with 5 if(a==5) { return true; } return false; (c) Expression and statement Expression:- An expression is any valid combination of operators , constants , and variables. Example:- ...

Words: 399 - Pages: 2

Free Essay

Book Report

...Selection statements Selection is used to select which statements are to be performed next based on a condition being true or false. Relational expressions In the solution of many problems, different actions must be taken depending on the value of the data. The if statement in C I used to implement such s decision structure in its simplest form – that of selecting a statement to be executed only if a condition is satisfied. Syntax: if(condtion) statement executed if condition is true When an executing program encounters the if statement, the condition is evaluated to determine its numerical value, which is then interpreted as either true or false. If the condition evaluates to any non-0 value (positive or negative), the condition is considered as a “true” condition and the statement following the if is executed; otherwise this statement is not executed. Relational Operators In C Relational operator | Meaning | Example | < | Less than | age < 30 | > | Greater than | height > 6.2 | <= | Less than or equal to | taxable <= 200000 | >= | Greater than or equal to | temp >= 98.6 | == | Equal to | grade == 100 | != | Not equal to | number !=250 | In creating relational expressions, the relational operators must be typed exactly as given in the above table. Thus, although the following relational expressions are all valid: age > 40 length <= 50 temp >= 98.6 3 < 4 flag == done day != 5 The following are invalid: length =< 50 ...

Words: 1617 - Pages: 7

Free Essay

Study Habits

...STUDY HABITS OF SECOND YEAR BS-AVTECH STUDENTS OF PATTS COLLEGE OF AERONAUTICS S.Y 2013-2014 An Undergraduate Research Presented to The Languages Department of PATTS College of Aeronautics In Partial Fulfillment of the Requirements for the course ENGL 211 – Technical Report Writing By Guevarra, Giorgio Martin C Guevarra, Lorenzo Miguel Jang, Jose, Yosalina, Leo Xander March 2014 ACKNOWLEDGEMENT The researcher would like to express our thanks to the lord. Our God for his guidance towards everything we do In life, including this study that we had made, and for being an inspiration for us all to do our best in life. We give our thanks to Ms. Karen M. Millano, our adviser for ENGL 211, for carefully and patiently guiding us so that we may finish the thesis research, and for supporting us and believing in us, that we can accomplish our task finishing the thesis. To the respondents of this study, we express our gratitude because without them, this thesis research would not have been completed, we thank them for allowing us to conduct a survey during their spare time, and their patience and integrity in answering the survey. To our parents, for their support and everlasting patience and understanding for us. And lastly to our classmates, since they have been with us since the beginning of the semester and they had been our companions in everything we do for the subject ENGL 211. ABSTRACT STUDY HABITS OF...

Words: 413 - Pages: 2

Free Essay

Engeenering

...SCHOOL OF ENGINEERING YEAR 3 MECHATRONICS ASSIGNMENT LAB REPORT Reading an Analogue Voltage from a Potentiometer to turn a Motor on and off with reading of 40 Assignment 2 Owais Jahanzeb BENG Mechanical Engineering with buissness Lecturer: Dr. Tom Shenton Aim & Objectives The aim of this lab is to develop a functioning program for the PICDEM board to read an analogue signal from a potentiometer and turning a motor on or off if the signal exceeds a certain limit. The program should depict the function that it should turn the motor ON and OFF if the potentiometer reading is less than or equal to 40. The practical uses of such program can be seen in automotive , injection moulding machines, wood processing machines, modern temperature controlled plants, speed control torque operations. Developing Program 1 Figure 1. The schematic circuit & PICDEM board configuration for Program Figure 1. The schematic circuit & PICDEM board configuration for Program The objective of program is to read the correspondent voltage analogous to the potentiometer position and switch the motor on if the reading is over 40 and switch it off if the reading is less than or equal to 40, the value can be adjusted by twisting the screw clockwise and anticlockwise. The program works by implementing the following code. PIC program for Test of potentiometer with value less equal to 40 with comments: include <p16f917.inc> extern DisplayDigit1, DisplayDigit2...

Words: 427 - Pages: 2

Premium Essay

Andy Owes Bill a Debt.

...Law Written Assignment 3 Case Study 1 Parks, a 7-foot, 265-pound center for the San Diego Slick, objected when his contract was assigned from the ABC Corporation to the XYZ Corporation, the team’s new owner. The change of owners did not cause a change in the composition of the team although a new coach was hired. Parks’s compensation and his responsibilities remained the same. Was this contract assignable? Facts of the Case: 1) Parks contract was assigned from the ABC Corporation to XYZ Corporation. 2) Parks compensation and his responsibilities remained the same. Issues: 1) The reason why we are in court today is to identify if Park’s contract was assignable. Rules of the Law: 1) Personal Service Contract – The parties agree that a personal service contract may be assigned. This allows the trade of an athlete from one team to another team. 2) Notice of Assignment – Assignee is under a duty to notify the obligor that the assignment has been made and performance must be rendered to the assignee. 3) Anti-Assignment Clause – Prohibits the assignment of rights under the contract. 4) Approval Clause – requires that the obligor approves any assignment of contract. Analysis & Conclusion: Since we do not have all the facts we can assume the following: 1) Parks contract did include the Personal service contract. 2) Notice of assignment was made by XYZ Corporation. 3) Parks contract did NOT include Anti-Assignment Clause. ...

Words: 495 - Pages: 2

Free Essay

Management Accounting

...Management Accounting Individual Assignment 1. Variable manufacturing cost per unit = (323,000,000-160,000,000-24,000,000-100,000,000) 850,000 = $45.88 per unit Fixed manufacturing cost per unit = $100,000,000 850,000units = $117.65 per unit Total manufacturing cost per unit= 45.88+117.65 = $163.53per unit 2. Fixed overhead rate= $100,000,000 800,000units =$125 per unit Production volume variance= (850,000 X 125)-(800,000 X 125) =$106,250,000-$100,000,000 = $6,250,000 Favourable 3. Absorption costing. | $ | $ | SalesLess: Cost of goods soldOpening inventoryProduction(850,000 X (255+125))(-)Ending inventory(30,000 X 405)Gross MarginAdjustments for production variance(850,000-800,000)x125Operating Income | 0323,000,000(11,400,000) | 450,000,000(311,600,000) | | | | | | 138,400,0006,250,000F | | | 144,650,000 | Income Statement for the year ended 31December 2012 4. Variable Costing Income Statement for the year ended 31 December 2012 | $ | $ | SalesOpening inventoryProduction(850,000 X 255)(-)Ending inventoryContribution MarginFixed factory overheadOperating income | 0216,750,000(7650,000) | 450,000,000(209,100,000) | | | 240,900,000(100,000,000) | | | 140,900, 000 | 5. Based on the calculations of absorption costing and variable costing for the year 2012,it would be better to calculate and measure using the absorption costing...

Words: 288 - Pages: 2

Free Essay

Eopp

...Reflection assignment In this assignment I will be using the Gibbs Reflective Model, reference, to reflect on an incident that occurred in placement that demonstrates an understanding of the Outcome : 3.1: Demonstrate that they respect diversity and individual preferences and value differences, regardless of their own personal views. To do this I will first, briefly describe the event, supporting my outline with relevant information. I will then explore the event, and discuss why it is important and how it relates to the learning outcome. I will also be discussing why materials such as law and guidelines say this is important. I will then proceed to analyse the incident by breaking it down and picking out the main features of the experience, discussing why they are important, whilst linking the main points together. I will attempt to think about opposing arguments to what I have explored, and discuss the advantages and disadvantages of the arguments. Finally I will be using SMART goals, to create an action plan for future development. Explain incident with evidence Whilst on a shift, we had an elderly patient arrive on the ward. The patient suffered from a Frank Haematuria, Colovesciular fistula as well as incontinence. It was suggested that the patient received surgery to have this corrected, but the patient refused surgery, stating that at his age he did not want to go through with it, and wanted to put a DNAR in place. I along with the other nurses respected his choice...

Words: 370 - Pages: 2

Premium Essay

Sfds

...ASSIGNMENT - 3 Answers 1 Answer 2 Answer 3 4. For what types of workloads does SJF deliver the same turnaround times as FIFO? ANSWER: - In the above case if the jobs are same in size or the jobs periodically applied (i.e. first shortest job then later second shortest job and continues) then the turnaround time of SJF is same as FIFO. 5. For what types of workloads and quantum lengths does SJF deliver the same response times as RR? ANSWER: - The response time delivered by SJF is equal to the response time of RR but this happens only when all the jobs arrived are at the point when the planning quantum of RR is bigger than the bigger occupation to be administrations in order of increasing size. 6. What happens to response time with SJF as job lengths increase? Can you use the simulator to demonstrate the trend? ANSWER: - If you suppose the length of the job increases then average response time varies (increases).If every job is sorted in increasing job order than the last job response time will be equal to the sum of current job and previous (n-1) jobs. In this way if the size of the job increases the response time will also increases for all larger jobs. 7. What happens to response time with RR as quantum lengths increase? Can you write an equation that gives the worst-case response time, given N jobs? ANSWER: - In the case of RR, the response time increases as the quantum lengths increases. This happens because the waiting time of a process for its turn to...

Words: 286 - Pages: 2

Free Essay

Week 5 Assignment

...Janell Taylor 10/23/12 Implicit Test I found the test to be very interesting and I don’t like timed tests because I need time to think about my answer to be sure and confident about my choice. I don’t agree with the results because they said I made too many errors and I don’t understand that because that was just one part where I was making too many errors. It has helped me out in those areas of different topics, but I just wish I had more time. I guess I would say that the answers wasn’t valid enough for me because it didn’t really give me a score because I made too many errors, so I don’t agree with that too much. I believe prejudice is difficult to measure because I don’t agree with it and don’t like the fact that it’s very big and can get worse if we don’t come together to get in one accord to help each other and make the world better to live in dealing with different people and feelings. I think measuring prejudice can be a tough thing to deal with and handle because of the many people that are prejudice, which are hurting and harming many situations and people that’s trying to make it while being equal to everyone regardless of what. I would have to take the test over to get a better score because I felt that wasn’t fair because I made too many errors to get a...

Words: 252 - Pages: 2

Free Essay

Pay for Eprformance

...Pre course assignment 2: Performance Related Pay The assignment is to write a paper about Performance Related Pay (2000 words) Performance Related Pay is receiving a great deal of attention. On the one hand (collective) labour agreements are increasingly including arrangements that relate to pay-forperformance, at the same time there is also strong resistance. Trade unions have never been enthusiastic proponents subject to certain conditions, but opinions are also divided in employers' circles. Pay-for-performance is even named as a root cause for the crisis of the financial sector and for the collapse of some companies. A number of companies have recently announced that they will abolish or change their pay- for-performance systems. When organizations have performance related pay systems in place, (front line) managers usually play an important role. They make pay decisions, or provide information for these decisions. The paper is also a preparation for a class debate about pay for performance in the fourth lecture. The debate will be about the statement: “The introduction of individual pay for performance contributes to an improvement in a company's (financial) performance” The paper will be written from one of three starting points: 1. You are against the statement: all arguments you discuss should underpin that the statement is false 2. You are in favour of the statement: all arguments you bring forward should underpin that the statements is true 3. You are undecided: find...

Words: 453 - Pages: 2